Correspondence issued by the General Accounting Office with an abstract that begins "In October 2002, we reported the results of our audit of selected internal control activities at three military treatment facilities: Eisenhower Army Medical Center, Augusta, Georgia; Naval Medical Center-Portsmouth, Portsmouth, Virginia; and Wilford Hall Air Force Medical Center, San Antonio, Texas. As part of our work for that report, we requested data files of all patients who had been admitted, treated as outpatients, or received pharmaceutical benefits during fiscal year 2001. Despite considerable effort by the three facilities, only Wilford Hall Air Force Medical Center was able to provide a file of beneficiaries who received pharmaceuticals during the year. We compared this file to data in the Social Security Administration's (SSA) Death Master File as a technique to identify instances of potential fraud or abuse. For Wilford Hall, we identified 41 cases in which a prescription was ordered for an individual after the date of his or her death as recorded in the SSA Death Master File. Congress requested that we determine whether individuals fraudulently obtained pharmaceuticals or other health benefits by assuming the identity of a dead person, and, if so, to identify the specific breakdowns in …

Correspondence issued by the General Accounting Office with an abstract that begins "Medicare spending growth remains one of the most pressing and complex issues facing the Congress and the nation. During calendar year 2001, the most recent year for which complete data were available at the time of our review, over 40 million Medicare enrollees received $240.9 billion in benefits from the trust funds maintained for Hospital Insurance and Supplementary Medical Insurance, Medicare's two components. The Boards of Trustees of the trust funds are required to report annually on the current and projected financial status of the Medicare program to the Congress and the American people. The Centers for Medicare and Medicaid Services' (CMS) Office of the Actuary (OACT) provides estimates to the boards to assist them in setting certain assumptions about HI and SMI future performance that are needed to prepare long-range and short-range projections of the financial status of the trust funds for the Trustees' reports. Based on the boards' assumptions, OACT then prepares the projections and the Trustees' reports for the boards. In its 2002 annual report, the Board of Trustees estimated that, under current rules, HI expenditures would begin to exceed tax revenue in calendar year …

Correspondence issued by the General Accounting Office with an abstract that begins "In a multibillion-dollar effort, the Department of Defense (DOD) plans to build a space-based communications system that leverages technologies never before used in space. Such a system would enable DOD to transform how information is collected on potential U.S. adversaries and how military forces are warned of hostile action. The backbone of this system will be the Transformational Satellite (TSAT), which is expected to play a pivotal role in connecting communications networks on the ground, in the air, on ships, and in space. TSAT represents a potential leap forward in communications speed, security, and availability. The Air Force, which heads up DOD's space programs, intends for TSAT to be interoperable with similar systems being acquired for the National Aeronautics and Space Administration (NASA) and the intelligence agencies. The initial TSAT program is expected to cost about $12 billion from 2003 to 2015 for development and production. Several billions more are to be spent acquiring and supporting the associated ground infrastructure, including thousands of user terminals. The Air Force intends to start the acquisition program in December 2003 and expects to launch the first TSAT in 2011. To help …

Testimony issued by the General Accounting Office with an abstract that begins "In recent years, funding for the Department of State has increased dramatically, particularly for security upgrades at overseas facilities and a major hiring program. The U.S. Agency for International Development (USAID) has also received more funds, especially for programs in Afghanistan and Iraq and HIV/AIDS relief. Both State and USAID face significant management challenges in carrying out their respective missions, particularly in areas such as human capital management, performance measurement, and information technology management. Despite increased funding, resources are not unlimited. Thus, State, USAID, and all government agencies have an obligation to ensure that taxpayer resources are managed wisely. Long-lasting improvements in performance will require continual vigilance and the identification of widespread opportunities to improve the economy, efficiency, and effectiveness of State's and USAID's existing goals and programs. GAO was asked to summarize its findings from reports on State's and USAID's management of resources, actions taken in response to our reports, and recommendations to promote cost savings and more efficient and effective operations at the department and agency."

Testimony issued by the General Accounting Office with an abstract that begins "People are at the heart of an organization's ability to perform its mission. Yet a key challenge for the Department of Defense (DOD), as for many federal agencies, is to strategically manage its human capital. DOD's proposed National Security Personnel System would provide for wide-ranging changes in DOD's civilian personnel pay and performance management and other human capital areas. Given the massive size of DOD, the proposal has important precedent-setting implications for federal human capital management. This testimony provides GAO's observations on DOD human capital reform proposals and the need for governmentwide reform."

Testimony issued by the General Accounting Office with an abstract that begins "More than 34 million participants in 30,000 single-employer defined benefit pension plans rely on a federal insurance program managed by the Pension Benefit Guaranty Corporation (PBGC) to protect their pension benefits, and the program's long-term financial viability is in doubt. Over the last decade, the program swung from a $3.6 billion accumulated deficit (liabilities exceeded assets), to a $10.1 billion accumulated surplus, and back to a $3.6 billion accumulated deficit, in 2002 dollars. Furthermore, despite a record $9 billion in estimated losses to the program in 2002, additional severe losses may be on the horizon. PBGC estimates that financially weak companies sponsor plans with $35 billion in unfunded benefits, which ultimately might become losses to the program. This testimony provides GAO's observations on the factors that contributed to recent changes in the single-employer pension insurance program's financial condition, risks to the program's long-term financial viability, and options to address the challenges facing the single-employer program."

Testimony issued by the General Accounting Office with an abstract that begins "At 543 aircraft, the KC-135 is the mainstay of U.S. aerial refueling capability. Recapitalizing this fleet is crucial to maintaining this capability and, ultimately, maintaining the mobility of U.S. forces. In the fiscal year 2002 defense appropriations act, the Congress authorized the Air Force to lease up to 100 aerial refueling aircraft after the Air Force reported its plans to the Senate and House Armed Services Committees and Defense Appropriations Subcommittees. The Air Force sent Congress on July 10 its report containing a business case analysis of its proposed lease. The Air Force plans to lease 100 KC-767A aircraft for 6 years each from a special purpose entity (SPE) that will order the aircraft from the Boeing Company. GAO was asked to (1) summarize the Air Force's report for leasing KC-767A aircraft, (2) present its observations on the report and justification for the lease, and (3) identify related issues and costs to assist the Congress as it considers the Air Force's proposal."

Testimony issued by the General Accounting Office with an abstract that begins "The Bonneville Power Administration produces a large portion of the Pacific Northwest's electric power, largely from hydroelectric projects in the Federal Columbia River Power System. Bonneville also has obligations to protect, mitigate, and enhance fish and wildlife populations affected by these hydroelectric projects. In the past several years, Bonneville has experienced financial difficulties, in part because of rising costs of providing power, lower-than-projected revenue from selling surplus power, and drought conditions. Bonneville's financial situation may adversely affect fish and wildlife. Stakeholders have expressed concern that Bonneville has effectively reduced spending on fish and wildlife programs. This testimony addresses (1) Bonneville's statutory and other obligations to support fish and wildlife programs, (2) Bonneville's historical spending and other efforts in support of fish and wildlife, (3) Bonneville's current financial condition, (4) Bonneville's recent actions that affect fish and wildlife programs, and (5) challenges Bonneville faces in supplying electricity to the region while simultaneously protecting, mitigating and enhancing fish and wildlife."

Testimony issued by the General Accounting Office with an abstract that begins "After the breakup of the Soviet Union in 1991, Russia inherited the world's largest arsenal of nuclear, chemical, and biological weapons. The Soviets' extensive military resources and autocratic rule allowed it to maintain and secure this vast arsenal. As Russia adopted economic reforms and moved toward an open society, its economy and central controls deteriorated, making it difficult to maintain security at these weapons sites. Recognizing these difficulties, the Congress authorized funds for programs to help destroy Russian weapons and improve WMD security. The events of September 11th have increased U.S. concerns that terrorists might obtain nuclear materials or weapons at poorly secured sites. GAO has reviewed U.S. threat reduction and nonproliferation efforts in Russia since 1993."

Correspondence issued by the General Accounting Office with an abstract that begins "The combined Federal Old-Age, Survivors and Disability Insurance (OASDI) programs, commonly referred to as Social Security, provide protection against loss of earnings due to retirement, death, or disability. During calendar year 2001, the most recent year for which complete data were available at the time of our review, about 46 million people, including 91 percent of Americans age 65 or older, received $432 billion in benefits from the trust funds maintained for these programs. The Board of Trustees of the trust funds is required to report annually on the current and projected financial status of the Social Security programs to the Congress and the American people. The Social Security Administration's (SSA) Office of the Chief Actuary (OACT) provides estimates to the board to assist them in setting demographic, economic, and programmatic assumptions about OASDI's future performance that are needed to prepare long-range and short-range projections of the financial status of the trust funds for the trustees' reports. Based on the board's assumptions, OACT then prepares the projections and the trustees' report for the board. In its 2002 annual report, the Board of Trustees estimated that, under current rules, …

Testimony issued by the General Accounting Office with an abstract that begins "The location of an organization's facilities has far reaching and long-lasting impacts on its operational costs and ability to attract and retain workers. The Rural Development Act of 1972 has required federal agencies to give first priority to locating new offices and other facilities in rural areas. Rural areas generally have lower real estate and labor costs, but agency missions often require locations in urban areas. Telework, also called telecommunicating or flexiplace, is a tool that allows employees to work at home or another work location other than a traditional office. Benefits of telework include reducing traffic congestion, improving the recruitment and retention of workers, and reducing the need for office space. Telework could allow federal workers who live in rural areas to work in or near their homes, at least some of the time. This testimony summarizes and updates work GAO has previously done on the progress in and barriers to the federal government's efforts to locate its operations and workers, when possible, in rural areas."