A letter report issued by the General Accounting Office with an abstract that begins "The Balanced Budget Act of 1997 significantly changed Medicare's home health care payments to home health agencies (HHAs). Under a prospective payment system (PPS), HHAs are paid a fixed amount, adjusted for beneficiary care needs, for providing up to 60 days of care---termed a "home health episode." The act also imposed new interim payment limits to moderate spending until the PPS could be implemented. Although PPS was designed to lower Medicare spending below what it was under the interim system, GAO found that Medicare's payments for full home health care episodes were 35 percent higher than estimated in the first six months of 2001. These disparities indicate that Medicare's PPS overpays for services actually provided, although some HHAs facing extraordinary costs not accounted for by the payment system may be financially disadvantaged."

A letter report issued by the General Accounting Office with an abstract that begins "The financial collapse of large firms and the effects on workers and retirees has raised questions about retirement funds being invested in employer securities and the laws governing such investments. Pensions are important source of income of many retirees, and the federal government has encouraged employers to sponsor and maintain pension and savings plans for their employees. The continued growth in these plans and their vulnerabilities has caused Congress to focus on issues related to participants investing in employer securities through employer-sponsored retirement plans. GAO's analysis of the 1998 plan data for the Fortune 1,000 firms showed that 550 of those companies held employer securities in their defined benefit plans or defined contribution plans, covering 13 million participants. Investment in employer securities through employer-sponsored retirement plans can present significant risks for employees. If the employees' retirement savings is largely in employer securities in these plans, employees risk losing not only their jobs should the company go out of business, but also a significant portion of their savings. Even if employers do not declare bankruptcy, employees are still subject to the dual risk of loss of job …

A letter report issued by the General Accounting Office with an abstract that begins "To expand the capabilities of the nation's active duty forces, the Department of Defense (DOD) relies on the 1.2 million men and women of the Reserve and National Guard. Currently, reserve components constitute nearly half of the total armed forces. Although DOD requires reservists to use TRICARE DOD's health care system for their own health care, using TRICARE is an option for their dependents. Nearly 80 percent of reservists had health care coverage when they were not on active duty, according to a GAO survey. The most frequently cited sources of coverage were civilian employer health plans and spouses' employer health plans. Few dependents of mobilized reservists experience disruptions in their health coverage--primarily because most maintained civilian health coverage while reservists were mobilized. Ninety percent of the reservists with civilian health coverage maintained that coverage. The 5-year cost of the coverage options delineated in the 2002 National Defense Authorization Act range from $89 million, for expanding the transition benefit allowing mobilizations, to $19.7 billion, for continuous coverage under the Federal Employees Health Benefits Program, as estimated by the Congressional Budget Office."

A letter report issued by the General Accounting Office with an abstract that begins "The demand for child care has increased dramatically in the past several decades as the number of mothers who work outside the home has grown. Welfare reform has further increased this demand. To support low-income parents moving into the workforce, welfare reform established the Child Care and Development Fund (CCDF). In fiscal year 2000, states spent $5.3 billion in CCDF funds to subsidize child care for low-income families. Out of concern for the quality of care that the CCDF funds, welfare reform legislation also required states to set aside at least 4 percent of the total grant to improve the quality and availability of child care. Department of Health and Human Services (HHS) regulations provide examples of allowable activities, such as providing child care providers with financial incentives for meeting state and local standards, improving the compensation of child care staff, and offering resource and referral services. However, the regulations do not limit states' use of funds to these activities; rather, the fund's block grant structure allows states considerable flexibility in choosing appropriate quality and availability improvements to pursue. Using primarily the four percent quality set-aside, …

Correspondence issued by the General Accounting Office with an abstract that begins "The National Interagency Canada Lynx Survey (Protocol) was designed to determine the presence of Canada lynx through deoxyribonucleic acid (DNA) analysis of hair samples recovered from scratch pads in forests in the northern United States. Beginning in January 2002, GAO investigated the submission of unauthorized samples to the University of Montana's laboratory as part of the National Survey and investigated whether the biologists involved had communications about their submissions. GAO found were four instances in which unauthorized hair samples, not obtained from the Wenatchee and Gifford Pinchot National Forests, were submitted for DNA testing as part of the National Survey for those forests. These included one submission on bobcat hair in 1999, and three submissions of lynx hair in September and October 2000. The biologists maintain that they submitted these samples to test the accuracy of the work done by the laboratory, although they knew that the Protocol for the National Survey did not provide for such action. They also said that they did not have the authority to make these submissions and that they were aware that they had alternatives for testing the laboratory other than submitting …

Correspondence issued by the General Accounting Office with an abstract that begins "The District of Columbia appropriations acts for fiscal years 1999, 2000, and 2001 limited the amount of appropriated funds that could be paid to an attorney representing a prevailing party in an action brought against the District of Columbia Public Schools (DCPS) under the Individuals with Disabilities Education Act. The appropriations act for fiscal year 2002 lifted the caps on attorneys' fees and directed DCPS and GAO to report on judgments awarding attorneys' fees in excess of the limitations imposed in fiscal years 1999, 2000, and 2001. In May 2002, GAO reported that, for fiscal years 1999, 2000, and 2001, the appropriations acts' limitations had little if any impact on the total amount of attorneys' fees awarded to prevailing parties in judgments entered by the courts in judicial proceedings brought against DCPS and the act. The District's March 29, 2002 report showed that of the $12.7 million paid for attorneys' fees from its appropriations for 1999 through 2001, $10 million was related to administrative proceedings and $2.7 million was related to judicial proceedings. DCPS reported that the estimated total amount of fees that might have been paid as …

Correspondence issued by the General Accounting Office with an abstract that begins "This report describes the status of our work toward developing a methodology for evaluating the New Markets Tax Credit (NMTC) Program. Our objectives are to provide information about (1) the NMTC Program, including its goals, its design, and progress in implementing the program, and (2)our mandated review of the program, including the potential scope of the review and how the program may be evaluated for effectiveness and compliance."

Testimony issued by the General Accounting Office with an abstract that begins "Financial management problems at the Department of Defense (DOD) are complex, long-standing, and deeply rooted throughout its business operations. DOD's financial management deficiencies represent the single largest obstacle to achieving an unqualified opinion on the U.S. government's consolidated financial statements. So far, none of the military services or major DOD components have passed the test of an independent financial audit because of pervasive weaknesses in financial management systems, operations, and controls. These problems go back decades, and earlier attempts at reform have been unsuccessful. DOD continues to rely on a far-flung, complex network of finance, logistics, personnel, acquisition, and other management information systems for financial data to support day-to-day management and decision-making. This network has evolved into an overly complex and error-prone operation with (1) little standardization across DOD components, (2) multiple systems performing the same tasks, (3) the same data stored in multiple systems, (4) manual data entry into multiple systems, and (5) a large number of data translations and interfaces, which combine to exacerbate problems with data integrity. Many of the elements that are crucial to financial management reform and business process transformation--particularly those that rely …

Testimony issued by the General Accounting Office with an abstract that begins "The Federal Financial Management Improvement Act (FFMIA) of 1996 ensures that agency financial management systems routinely provide reliable and timely financial information on the investment of resources, reduced costs and programs oversight. Although many agencies are receiving unqualified opinions on their financial statements, auditor determinations of FFMIA compliance are lagging. To achieve the financial management improvements envisioned by the Chief Financial Officers Act, FFMIA, and more recently, the President's Management Agenda, agencies need to modernize their financial systems to generate reliable, useful, and timely financial information throughout the year and at year-end."

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) has been at the forefront of federal agencies in using the OMB Circular A-76 process. In 1995, DOD made it a priority to reduce operating costs and free funds for other needs. DOD has also augmented the A-76 program with what it terms strategic sourcing--a broader array of reinvention and reengineering options that may not necessarily involve A-76 competitions. The number of positions--at one point 229,000--that DOD planned to study and the time frames for the studies have varied. Current plans are to study about 183,000 positions between fiscal years 1997 and 2007. Changes in the inventory of commercial activities and the current administration's sourcing initiatives could change the number of positions studied in the future. However, GAO has not evaluated the extent to which these changes might occur. DOD's A-76 program has faced several challenges that may provide valuable lessons learned for other federal agencies. These lessons include the following: (1) studies took longer than initially projected, (2) costs and resources required for the studies were underestimated, (3) selecting and grouping functions to compete can be difficult, and (4) determining and maintaining …

Testimony issued by the General Accounting Office with an abstract that begins "The federal government has spent billions of dollars attempting to reduce the consumption of petroleum in the transportation sector for over 25 years. Throughout the period, the government has tried tax incentives, mandates to use vehicles that run on alternative fuels, and laws designed to enhance fuel efficiency. More recently, the federal government conducted a $1.2 billion partnership between industry and government, the Partnership for a New Generation of Vehicle, to develop a highly fuel-efficient car. The administration has proposed a new initiative, known as FreedomCAR, focused on developing hydrogen fuel cells that will provide the technology necessary to create cars and trucks that do not require petroleum and have no polluting emissions--without sacrificing safety or convenience. FreedomCAR will operate as a cooperative research effort between the Department of Energy and General Motors, Daimler-Chrysler, and the Ford Motor Company. The FreedomCAR initiative should make sure that it (1) performs research that private industry would not do on its own, (2) specifies a clear and measurable goal, (3) devises a strategy to directly address that goal, and (4) considers whether consumers will buy the products resulting from the research …

Testimony issued by the General Accounting Office with an abstract that begins "Many people are homeless for only a short time and get back on their feet with minimal assistance, but others are chronically homeless and need intensive and ongoing assistance. Fifty federal programs exist to help the homeless with housing. Sixteen of these are targeted exclusively to the homeless, and the others are mainstream programs. Targeted programs were funded at $1.7 billion in fiscal year 2001. GAO found that the Department of Housing and Urban Development (HUD) has been unable to ensure that adequate coordination occurs among the programs without creating undue administrative burdens for the states and communities. Steps have been taken to improve the coordination of homeless assistance programs within communities and to reduce some of the administrative burdens caused by separate programs. Although low-income populations face barriers to obtaining services provided by mainstream programs, these barriers are compounded by homelessness. In addition, the underlying structure and operations of federal mainstream programs do not ensure that the special needs of homeless people are met. Consolidating HUD's McKinney-Vento programs could help reduce the administrative burden. However, to end chronic homelessness in 10 years, federal agencies must strive to …

Testimony issued by the General Accounting Office with an abstract that begins "Provisions in the National Defense Authorization Act for Fiscal Year 2001 seek to minimize pervasive information security weaknesses that place federal operations at significant risk of disruption, tampering, fraud, and inappropriate disclosure of sensitive information. Increases in computer interconnectivity, especially in the use of the Internet, pose significant risks to computer systems and to the critical operations and infrastructures they support, such as telecommunications, power distribution, public health, national defense, law enforcement, and emergency services. Although federal agencies have taken steps to redesign and strengthen their information security programs, federal systems are not being adequately protected from computer-based threats, even though these systems process, store, and transmit enormous amounts of sensitive data and are indispensable to many federal agency operations."

A letter report issued by the General Accounting Office with an abstract that begins "The B-1B began operations in 1986 as a long-range heavy bomber designed primarily to carry nuclear munitions. Although the B-1B's nuclear mission was withdrawn in October 1997, the Air Force continues to rely on the B-1B to support conventional wartime missions. The B-1B has the largest payload of the Air Force's three bombers, and recent modifications have provided the capability to deliver near precision munitions. Future upgrades to the B-1B are expected to provide greater flexibility by enabling it to carry three different types of bombs simultaneously and eliminate some of its long-term survivability and maintainability problems by improving its radar warning systems, jamming ability, and other electronic countermeasures. In May 2001, the Office of the Secretary of Defense suggested retiring the entire B-1B fleet by October 2001. In June 2001, the Air Force proposed an alternative that reduced the B-1B fleet from 93 to 60 aircraft and consolidated them at two active duty locations instead of the three active duty and two National Guard locations that housed the aircraft. Congress delayed implementation of the fleet reduction until the Air Force completed a review of bomber …

A letter report issued by the General Accounting Office with an abstract that begins "To protect its national security and foreign policy interests, the United States controls exports of civilian technologies that have military uses. U.S. firms may be required to obtain a license from the Department of Commerce before exporting these "dual-use" technologies from the United States to many other countries, including countries of concern. Since Commerce regulations also deem domestic transfers of controlled dual-use technologies to citizens of these countries to be exports, Commerce may require firms that employ foreign nationals working with these technologies in this country to obtain "deemed" export licenses. The firms should, in many cases, hold a deemed export license, and the foreign nationals should have an appropriate visa classification, such as an H-1B specialized employment classification. Commerce issues deemed export licenses to firms that employ or sponsor foreign nationals after consulting the Departments of Defense, State, and Energy. Deemed export licenses are generally valid for 2 years and comprise almost 10 percent of all export licenses approved by Commerce. In fiscal year 2001, Commerce approved 822 deemed export license applications and rejected 3. Most of the approved licenses allowed foreign nationals from countries …

A letter report issued by the General Accounting Office with an abstract that begins "Efforts to combat terrorism have become an increasingly important part of government activities. These efforts have also become important in the United States' relations with other countries and with international organizations, such as the United Nations (U.N.). The Department of State is charged with coordinating these international efforts and protecting Americans abroad. State has helped direct the U.S. efforts to combat terrorism abroad by building the global coalition against terrorism, including providing diplomatic support for military operations in Afghanistan and other countries. State has also supported international law enforcement efforts to identify, arrest, and bring terrorists to justice, as well as performing other activities intended to reduce the number of terrorist attacks. The State Department conducts multifaceted activities in its effort to prevent terrorist attacks on Americans abroad. For Americans traveling and living abroad, State issues public travel warnings and operates warning systems to convey terrorism-related information. For American businesses and universities operating overseas, State uses the Overseas Security Advisory Councils--voluntary partnerships between the State Department and the private sector--to exchange threat information. To disrupt and destroy terrorist organizations abroad, State has numerous programs and activities …

A letter report issued by the General Accounting Office with an abstract that begins "During World War I, the U.S. Army operated a large research facility to develop and test chemical weapons and explosives in the area that became the Spring Valley neighborhood in Washington, D.C. Buried ordnance, discovered there in 1993, led to the designation by the Department of Defense (DOD) of 61 acres as a formerly used defense site. Through fiscal year 2001, DOD had spent over $50 million to identify and remove hazards at the site. The government entities involved have identified and removed a large number of hazards, but the number remaining is unknown. The health risks influencing cleanup activities at Spring Valley are the possibility of injury or death from exploding or leaking ordnance and containers of chemical warfare agents and potential long-term health problems from exposure to arsenic-contaminated soil. As of April 2002, the U.S. Army estimated that the remaining cleanup activities would cost $7.1 million and take 5 years. But these estimates are unreliable. GAO summarized this report in congressional testimony (See GAO-02-836T)."

A letter report issued by the General Accounting Office with an abstract that begins "An essential element to acquiring, developing, and retaining high-quality federal employees is agencies' effective use of human capital flexibilities. These flexibilities represent the policies and practices that an agency has the authority to implement in managing its workforce. Congressional requesters asked GAO to provide information on agency and union officials' views about the most effective human capital flexibilities, additional flexibilities needed, and whether additional flexibilities could be implemented while also protecting employees' rights. GAO was also asked to identify key practices for effective use of flexibilities. GAO interviewed the human resources directors of the federal government's 24 largest departments and agencies, and representatives of 4 national organizations representing federal employees and managers. GAO further focused its efforts on 7 federal agencies--Department of Air Force, General Services Administration, Internal Revenue Service, International Trade Administration, U.S. Mint, State Department, and Veterans Benefits Administration--interviewing more than 200 managers, supervisors, human resources officials, and union representatives in headquarters and field locations."

A letter report issued by the General Accounting Office with an abstract that begins "Debates surrounding the reauthorization of welfare reform legislation have involved some discussion regarding outcomes for TANF recipients with physical or mental impairments. To inform this discussion, GAO was asked to report on (1) whether recipients with impairments were as likely to exit TANF as their counterparts without impairments and (2) the sources of income reported by leavers with and without impairments. To obtain this information, GAO analyzed self- reported data for the most recent years available from the Census Bureau's Survey of Income and Program Participation (SIPP)--a national survey of households that includes questions about TANF status and functional impairments."

A letter report issued by the General Accounting Office with an abstract that begins "The military services face significant challenges in addressing facility sustainment, restoration, and modernization needs with limited funds. These challenges are magnified by the 20 to 25 percent of the Department of Defense's (DOD) real property that it views as not being needed to meet current mission requirements, but that adds to costs. To reduce these costs and acquire additional resources to maintain its facilities, DOD has developed a multi-part strategy involving base realignment and closure, housing and utility privatization, competitive sourcing of non-inherently governmental functions, and demolition of facilities that are no longer needed. Although the services continue to use the leasing authority provided for traditional type of leases, they have made limited efforts to use the expanded leasing authority enacted by Congress in fiscal year 2001. The services have identified a number of impediments that have limited the use of the expanded leasing authority and that could adversely affect the program in the future."

A letter report issued by the General Accounting Office with an abstract that begins "In 1997, Congress established the mark-to-market program to help preserve the availability and affordability of low-income rental housing while also reducing the cost to the federal government of rental assistance provided to low-income households. The mark-to-market program was developed for multifamily properties that are both insured by the Federal Housing Administration (FHA) in the Department of Housing and Urban Development (HUD) and aided through the project-based Section 8 program. Under the mark-to-market program, at the time of the assisted properties' section 8 contract renewal, HUD resets rents to prevailing market levels and restructures a property's mortgage debt, if necessary, to permit a positive cash flow. This process is designed to ensure that properties whose rents are reduced to market level still have sufficient income to meet the mortgage payments and operating expenses on the property. The Office of Multifamily Housing Assistance Restructuring (OMHAR) was established within HUD to administer the mark-to-market program. OMHAR places federally assisted, FHA-insured properties on the watch list when their rents have been reduced to market level under the mark-to-market program but their mortgages have not been restructured. Two-hundred and eleven properties …

A letter report issued by the General Accounting Office with an abstract that begins "The District of Columbia Family Court Act of 2001 was enacted to (1) redesignate the Family Division of the Superior Court as the Family Court of the Superior Court, (2) recruit trained and experienced judges to serve in the Family Court, and (3) promote consistency and efficiency in the assignment of judges and the courts actions and proceedings. The act requires the chief judge of the Superior Court to submit a transition plan outlining the proposed operation of the Family Court. The plan shows that the Superior Court has made progress transitioning its Family Division to a Family Court, but challenges remain. The transition plan addresses most, but not all, of the act's required elements. For example, the plan identifies the number of judges and magistrate judges needed and outlines an approach for closing or transferring cases from other divisions to the Family Court. However, the plan does not include (1) a request that the Judicial Nomination Commission recruit and the president nominate the additional judges the court believes are necessary, (2) the number of nonjudicial staff needed for the Family Court, (3) information on the …

A letter report issued by the General Accounting Office with an abstract that begins "Pursuant to Transportation Equity Act for the 21st Century (TEA-21), GAO periodically reports on the implementation of the Job Access and Reverse Commute (Job Access) program. The program is designed to assist low-income people in accessing employment opportunities. This report examines the Department of Transportation's (DOT) efforts to evaluate the program and report the results to the Congress. GAO also examined (1) transportation and related services provided by the program; (2) whether the program fosters collaboration between Job Access grantees and others in the design, financing, and delivery of those services; and (3) whether Job Access services would be financially sustainable after the end of Job Access funding."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony describes China's development of rule of law practices related to the commitments China made to the World Trade Organization (WTO), which it joined in November 2001. When China joined the WTO, it agreed that its legal measures would be consistent with its WTO obligations. GAO found 60 commitments that specifically obligate China to enact, repeal, or modify trade-related laws or regulations. In addition, China has made a substantial number of other WTO commitments related to the rule of law in transparency, judicial review, uniform enforcement of laws, and nondiscriminatory treatment. Chinese government officials described how their efforts for reform go beyond China's WTO commitments and include broad reforms of laws and regulations at the national and provincial levels, as well as reforms of judicial and administrative procedures. However, Chinese officials acknowledged the challenges they face in completing the necessary reforms and identified the need for outside training assistance. According to GAO's survey, U.S. businesses in China consider rule of law-related WTO commitments to be important, especially the consistent application of laws, regulations, and practices in China, and enforcement of intellectual property rights. However, a majority of …