Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of The American Society of International Law for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report contains the auditor's opinion that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO examined the underlying records for the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for fiscal year 2001. GAO (1) did a detailed test of transactions that represent the underlying basis of amounts distributed to AATF, (2) reviewed the Internal Revenue Service's (IRS) quarterly AATF certifications, (3) reviewed the Department of the Treasury Financial Management Service adjustments to AATF for fiscal year 2001, (4) reviewed procedures in the Office of Tax Analysis' process for estimating amounts to be distributed to AATF for the fourth quarter of fiscal year 2001, (5) compared net excise tax distributions to AATF during fiscal year 2001 and amounts reported in the financial statements prepared by the Bureau of the Public Debt for AATF and the Federal Aviation Administration's consolidated financial statements, and (6) reviewed key reconciliations of IRS records to Treasury records."

Correspondence issued by the General Accounting Office with an abstract that begins "Citing the desire to "ensure that the President's appointees have the opportunity to review any new or pending regulations," the White House Chief of Staff Andrew H. Card, Jr. sent a memorandum to the heads of all executive agencies on January 20, 2001, directing them to (1) not send proposed or final regulations to the Office of the Federal Register, (2) withdraw regulations that had been sent to the Office but not yet published in the Federal Register, and (3) postpone for 60 days the effective date of regulations that had been published in the Federal Register but had not yet taken effect. GAO found that federal agencies delayed the effective dates for 90 of the 371 final rules that were subject to the memorandum. The effective dates for the remaining 281 rules were either not delayed or GAO could find no indication in the Federal Register of a delay."

A letter report issued by the General Accounting Office with an abstract that begins "Political appointees in the federal government sometimes seek appointments to career positions, which do not end with an administration. Although merit system principles require that selections be determined solely on the basis of merit after fair and open competition, questions have been raised about whether some individuals have received political favoritism or an unfair advantage, even the appearance of which could adversely compromise the integrity of the system. The 45 agencies GAO surveyed reported that 100 employees converted from political appointments and 11 converted from congressional staff positions from October 1998 through April 2001. All the conversions took place at 21 agencies. Ninety-five of the 111 conversions were to positions at the GS-12 level and above. GAO found that the 21 agencies used appropriate appointment authorities, such as civil service certificates from the competitive selection process, and generally followed merit system procedures. In 17 instances, however, the appointments could give the appearance that individuals had received political favoritism or preferences."

Correspondence issued by the General Accounting Office with an abstract that begins "Because the activities of the Congressional side of the Census Monitoring Board (CMBC) ceased to exist on September 30, 2001, CMBC entered into an interagency agreement with the Government Printing Office (GPO) to pay CMBC bills and to provide administrative support services. GAO examined CMBC documents to determine financial cutoff procedures and conducted other audits as necessary. GAO found four CMBC personnel were present at CMBC's former office on October 1, 2001, but performed no substantive government action. More than $14,000 was obligated and paid for telephone, cable, Internet, computer, copier, and water services to be provided after CMBC's statutory termination date. These prepayments were improper and should not have been certified and paid. GPO was requesting reimbursement from vendors for services that were not properly provided. GPO acquired CMBC property and supplies after September 30, 2001. A November 2001 GPO inventory found that some CMBC property had not been returned, was reported stolen, or was missing. The use of government owned property after CMBC termination was not proper, and GPO is seeking the return of some property. GPO was arranging for CMBC records disposal. CMBC internal controls …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the American Council of Learned Societies for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

A statement of record issued by the General Accounting Office with an abstract that begins "The Transportation Equity Act for the 21st Century changes the budgetary treatment of programs financed by the Highway Trust Fund. In particular, the act guaranteed annual funding levels for most highway and transit programs and linked highway user tax receipts, such as those from motor fuel and truck tire taxes, to the annual funding levels for highway programs. Revenue aligned budget authority adjustments are made to the annual guaranteed funding level provided in the act as highway account receipt levels change. For the first time, the adjustment for fiscal year 2003 is negative--decreasing the guaranteed level of highway funding by $4.369 billion. GAO found that the amounts distributed to the Highway Trust Fund for the first nine months of fiscal year 2001, as adjusted based on the Internal Revenue Service's certifications, were reasonable and adequately supported based on available information."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO helped the Department of Transportation to determine whether the net excise tax revenue distributed to the Highway Trust Fund for fiscal year 2001 was supported by the underlying records. In performing the agreed-upon procedures, GAO did its work in accordance with U.S. generally accepted government auditing standards, which incorporate financial audit and attestation standards established by the American Institute of Certified Public Accountants."

A letter report issued by the General Accounting Office with an abstract that begins "The Army wants an artillery system with greater firepower, range, and mobility than its current self-propelled howitzer. In 1994, the Army began to develop the Crusader, an advanced artillery system consisting of a self-propelled 155-millimeter howitzer and a resupply vehicle. The Department of Defense (DOD) will decide next year whether the Crusader program should enter its system development and demonstration stage, which will require the commitment of major resources. GAO found that the Crusader program has made considerable progress in developing key technologies and reducing its size and weight. However, more progress and knowledge is needed to minimize the risk of cost overruns, schedule delays, and performance shortfalls. The Crusader program will likely enter product development with most of its critical technologies less mature than best practices recommend. Most of the Crusader's critical technologies have been demonstrated in a relevant environment but not in the more demanding operational environment. Although the Army is reducing the Crusader's weight so that two vehicles can be deployed on a C-17 aircraft, the deployability advantage gained does not appear significant. The reduction in the Crusader system's weight would only decrease …

A letter report issued by the General Accounting Office with an abstract that begins "The armed services have significantly reduced their procurement of new weapons systems and are keeping their existing systems longer than originally anticipated. The Department of Defense (DOD) estimates that it is spending $59 billion a year on logistics support to operate and sustain weapons systems, but DOD believes that better logistics support practices could reduce these costs by as much as 20 percent. To cut costs and improve efficiency, the military services have begun implementing logistics support strategies that rely on the private sector. DOD Regulation 5000.2-R expresses a preference for using long-term contractor logistics support but requires that an analysis be done first to determine how logistics support work is to be allocated to public or private entities. It is impossible to determine whether initial cost-effectiveness estimates for proposed contractor-logistics-support approaches are being achieved because the Army and Navy lack the required data. Consequently, the services may be adopting support approaches without knowing whether expected readiness improvements and cost-reduction goals are being met, where adjustments are needed, or the conditions under which the various support approaches are likely to achieve the most cost-effective results. Comparisons …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) awarded contracts to three companies in 1990 to develop and test exoatmospheric kill vehicles. One of the contractors--Boeing North American--subcontracted with TRW to develop software for the kill vehicle. In 1998, Boeing became the Lead System Integrator for the National Missile Defense Program and chose Raytheon as the primary kill vehicle developer. Boeing and TRW reported that the June 1997 flight test achieved its primary objectives but detected some sensor abnormalities. The project office relied on Boeing to oversee the performance of TRW. Boeing and TRW reported that deployed target objects displayed distinguishable features when being observed by an infrared sensor. After considerable debate, the program manager reduced the number of decoys planned for intercept flight tests in response to a recommendation by an independent panel. The Phase One Engineering Team, which was responsible for completing an assessment of TRW's software performance within two months using available data, found that although the software had weaknesses, it was well designed and worked properly, with only some changes needed to increase the robustness of the discrimination function. On the basis of that analysis, …

Correspondence issued by the General Accounting Office with an abstract that begins "Fugitive felons are ineligible for Supplemental Security Income (SSI) benefits. The Social Security Administration (SSA) will, upon request, provide law enforcement agencies with the current addresses and Social Security numbers of fugitive felons who are SSI recipients. The Privacy Act of 1974 generally prohibits federal agencies from disclosing to anyone, including other government agencies, information they have on file on individuals. When the head of a law enforcement agency asks SSA for information on an individual as part of civil or criminal investigations, SSA has the authority under the Privacy Act to disclose this information but is not required to do so. The Social Security Act does not give SSA the authority to determine if individuals are ineligible for Old Age and Survivors Insurance and Disability Insurance benefits because they are fugitive felons."

Correspondence issued by the General Accounting Office with an abstract that begins "This report reviews the Farm Credit Administration's (FCA) oversight of the safety and soundness of the Farm Credit System (FCS). GAO found that FCA's oversight and supervision appeared to be timely, comprehensive, and effective. FCA required FCS institutions to take appropriate and timely corrective actions to address any identified weaknesses and closely monitored the institutions' compliance. FCA had special supervisory and enforcement procedures in place and used them when it found more serious weaknesses at FCS institutions. In addition, off-site monitoring efforts included timely analyses of relevant qualitative and quantitative information that allowed FCA to identify, monitor, evaluate, and proactively address risks faced by FCS institutions. FCA follows processes designed to ensure the quality and reliability of its safety and soundness examination process through periodic quality assurance reviews and the Inspector General's audits and inspection reports."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Agricultural Hall of Fame for fiscal years 2000, and 1999. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

A statement of record issued by the General Accounting Office with an abstract that begins "GAO studied several leading companies in the private sector that have made dramatic changes to their process for acquiring services. GAO found that these changes generally began with a corporate decision to pursue a more strategic approach to acquiring services--from developing a better picture of what the company was actually spending on services to developing new ways of doing business. The Defense Department (DOD), the government's largest purchaser of services, already has some elements in place that are essential to such a strategic approach, such as a commitment by top management to adopting best practices. However, DOD has yet to conduct a comprehensive analysis of its spending on services or thoroughly assess it's current structure, processes, and roles. DOD's size, the range and complexity of the services that it acquires, the capacity of its information and financial systems, and the unique requirements of the federal government are among the factors that DOD will need to consider as it tailors a strategic approach to its diverse needs."

A letter report issued by the General Accounting Office with an abstract that begins "The Debt Collection Improvement Act (DCIA) of 1996 requires that agencies refer eligible debts delinquent more than 180 days that they have been unable to collect to the Department of the Treasury for payment and offset and to Treasury or a Treasury-designated debt collection center for cross-servicing. The Centers for Medicare and Medicaid Services (CMS) made progress in referring eligible delinquent debts for collection during fiscal year 2001. Much of the referral volume was late in the year, however, and substantial unreferred balances remained at the end of the fiscal year. Inadequate procedures and controls hampered prompt identification and referral of both eligible non-Medicare Secondary Payer (MSP) and MSP debts. The delayed referral of non-MSP debts resulted from problems with the CMS debt-referral system and insufficient CMS monitoring of contractor referrals. The low level of MSP debt referrals resulted primarily from limited contractor efforts and insufficient CMS monitoring of contractor performance. Although GAO did not test whether selected CMS debts had been reasonably excluded from referral and reached no overall conclusion about the appropriateness of CMS exclusions, GAO found that CMS did not report reliable Medicare …

Correspondence issued by the General Accounting Office with an abstract that begins "To help build and rehabilitate multifamily rental housing, the Federal Housing Administration (FHA) provides lenders with mortgage insurance, or guarantees, for multifamily loans. In fiscal year 2001, FHA provided guarantees for all multifamily projects--regardless of program--on a first-come, first-served basis until the total budget authority for the multifamily programs was exhausted. FHA had obligated $81 million of the $101 million of its credit subsidy budget authority for the fiscal year by April 2001 and suspended issuing commitments for additional loans. FHA obligated most of its fiscal year 2001 subsidy budget authority by April 2001 because of unexpectedly high demand--five times FHA's estimate--for mortgage insurance under the Section 221(d)(3) Program, which is limited to nonprofit developers and cooperatives and has a higher subsidy rate than do other programs. FHA has taken steps to avoid this situation in the future. When most of the fiscal year 2001 credit subsidy budget authority was obligated, FHA placed several multifamily projects on a waiting list until funding became available. Most of these projects were funded using the remaining budget authority and credit subsidy from projects approved earlier that were later terminated or required …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statement of the Disabled American Veterans for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the 82nd Airborne Division Association, Inc. for fiscal years 2000 and 1999. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Congressional Medal of Honor Society of the United States of America for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion that the financial statements of the corporation were presented fairly on a modified cash basis of accounting."

A letter report issued by the General Accounting Office with an abstract that begins "Unlike other federal programs that make expenditures under the direct control of the government, Medicare constitutes a promise to pay for covered medical services provided to its beneficiaries by about one million providers. Given this open-ended entitlement, it is essential that appropriate and effective rules and policies be specified so that only necessary services are provided and reimbursed. Congress and the Centers for Medicare and Medicaid Services (CMS) have promulgated an extensive body of statutes, regulations, policies, and procedures on what shall be paid for and under what circumstances. Information that carriers give to physicians is often difficult to use, out of date, inaccurate, and incomplete. Medicare bulletins that carriers use to communicate with physicians are often poorly organized and contain dense legal language. Similarly, other means of communicating with physicians, such as toll-free provider assistance lines and websites, have problems with accuracy and completeness. Although all carriers issue bulletins, operate call centers, and maintain websites, each carrier develops its own communications policies and strategies. This approach results in a duplication of effort as well as variations in the quality of carrier communications. CMS provides little …

A letter report issued by the General Accounting Office with an abstract that begins "The United Nations (U.N.) Security Council authorized or maintained 33 peacekeeping operations in 28 countries between fiscal years 1996 and 2001. Fifteen operations were ongoing as of January 2002. Although U.N. member countries are directly assessed for the cost of these operations, some countries, including the United States, implement programs or activities that provide indirect support to peacekeeping operations. The United States directly contributed an estimated $3.45 billion to support U.N. peacekeeping from fiscal years 1996 through 2001. U.S. contributions that indirectly benefited U.N. peacekeeping are estimated at $24.2 billion during this period. GAO defined indirect contributions as U.S. programs and activities that are located in the same area as an ongoing U.N. peacekeeping operation, have objectives that help the peacekeeping operation achieve its mandated objectives, and are not an official part of the U.N. operation."

A letter report issued by the General Accounting Office with an abstract that begins "The National Center for Education Statistics (NCES) reports that the national status dropout rate--the percentage of 16- through 24-year olds who are not enrolled in school and who lack a high school diploma or a high school equivalency certificate--fluctuated between 10.9 and 12.5 percent between 1990 and 2000. However, dropout rates have varied considerably between regions of the country and among ethnic groups. Research has shown that dropping out it is a long-term process of disengagement that begins in the earliest grades. NCES and private research organizations have identified two factors--an individual's family and his or her experience in school--that are related to dropping out. Various state, local, and private programs are available to assist youth at risk of dropping out of school. These programs range in scope from small-scale supplementary services that target a small group of students, such as mentoring or counseling services, to comprehensive school-wide restructuring efforts that involve changing the entire school to improve educational opportunities for all students. One federal program, the Dropout Prevention Demonstration Program, is specifically targeted to dropouts, but the program is new and the Department of Education …

A letter report issued by the General Accounting Office with an abstract that begins "This report presents the results of GAO's audits of the financial statements of the Internal Revenue Service (IRS) for fiscal years 2001 and 2000. GAO was able to provide unqualified opinions on IRS's fiscal years 2001 and 2000 financial statements because IRS senior management and staff made extraordinary efforts to compensate for serious internal control and systems deficiencies. Despite these efforts, IRS found it extremely difficult to meet the February 27 reporting deadline set by the Office of Management and Budget (OMB). OMB intends to significantly accelerate this deadline in the future. Beginning with fiscal year 2004, IRS will be required to issue its financial statements by November 15--only 6 weeks after the end of the fiscal year. Moreover, the Department of Treasury has established a goal of completing its fiscal year 2002 audit, including those of its component entities, and issuing its department wide accountability report by November 15, 2002. To meet this goal and sustain an unqualified opinion on its financial statements, IRS will need to make systemic changes in how it processes transactions, maintains its financial records, and reports its financial results. At …