Correspondence issued by the Government Accountability Office with an abstract that begins "In February 2007, we issued our opinions on the calendar year 2006 financial statements of the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FRF). We also issued our opinion on the effectiveness of the Federal Deposit Insurance Corporation's (FDIC) internal control over financial reporting (including safeguarding assets) and compliance as of December 31, 2006, and our evaluation of FDIC's compliance with significant provisions of selected laws and regulations for the two funds for the year ended December 31, 2006. The purpose of this report is to present issues identified during our audits of the 2006 financial statements regarding internal controls and accounting procedures and to recommend actions to address these issues. Although these issues were not material in relation to the financial statements, we believe they warrant management's attention."

Correspondence issued by the Government Accountability Office with an abstract that begins "Members of the military have long been required to receive immunizations. The Department of Defense (DOD) estimates that over 2.2 million servicemembers receive at least one mandatory immunization annually. Immunizations are provided through the administration of vaccines, which contain "antigens" or parts of a specific virus or bacterium that are used to trigger an immune response to protect the body from disease. DOD's immunization requirements vary depending on several factors, such as a servicemember's branch of military service, location, age, and type of personnel, such as newly enlisted recruits, those conducting high-risk travel, and reserve forces. No immunization is completely safe. Like all individuals, servicemembers may experience side-effects as a result of their immunizations, known as adverse events. Most adverse events consist of relatively mild reactions, such as swelling near the site of the immunization. However, a small number of individuals may experience more severe reactions, such as some servicemembers who received the anthrax and smallpox vaccines. Some servicemembers who received these vaccines experienced severe reactions such as migraines, heart problems, and the onset of diseases including diabetes and multiple sclerosis. Since then, the adverse events associated with …

Correspondence issued by the Government Accountability Office with an abstract that begins "The mission of the Department of the Interior's (DOI) Fish and Wildlife Service (FWS) includes administering a national network of refuges for the conservation, management, and, where appropriate, restoration of fish, wildlife, and plant resources and their habitats within the United States for the benefit of present and future generations. The refuges are unique in that they are the only federal lands managed primarily for the benefit of wildlife. The refuge system's 95 million acres, which represent more than 14 percent of all federal lands and are found in every state, include land that has always been federally owned and land that has been acquired from others. While the federal government owns almost all of the surface lands in the system, in many cases it does not own the subsurface mineral rights. Subject to some restrictions, owners of subsurface mineral rights have the legal authority to explore for mineral resources such as oil and gas and to extract resources that are found. In August 2003, we reported that oil and gas activities were occurring on many wildlife refuges and that little was known about the effects of those …

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. Dept. of Agriculture's (USDA) Risk Management Agency (RMA) administers the federal crop insurance program in partnership with private insurers. In 2006, the program cost $3.5 billion, including millions in losses from fraud, waste, and abuse, according to USDA. The Agricultural Risk Protection Act of 2000 granted RMA authority to renegotiate the terms of RMA's standard reinsurance agreement with companies once over 5 years. This testimony is based on GAO's 2005 report, Crop Insurance: Actions Needed to Reduce Program's Vulnerability to Fraud, Waste, and Abuse, and May 2007 testimony, Crop Insurance: Continuing Efforts Are Needed to Improve Program Integrity and Ensure Program Costs Are Reasonable. GAO discusses (1) USDA's processes to address fraud, waste, and abuse; (2) extent the program's design makes it vulnerable to abuse; and (3) reasonableness of underwriting gains and other expenses. USDA agreed with most of GAO's 2005 recommendations to improve program integrity."

Guidance issued by the Government Accountability Office with an abstract that begins "This publication has been superseded by GAO-07-1173G, Financial Audit Manual: Volume Three, August 2007. The U.S. Government Accountability Office (GAO) and the President's Council on Integrity and Efficiency (PCIE) maintain the GAO/PCIE Financial Audit Manual (FAM). The FAM provides guidance for performing financial statement audits of federal entities. The FAM is a key tool for enhancing accountability over taxpayer-provided resources."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Homeland Security (DHS) has spent and continues to invest hundreds of millions of dollars each year in its U.S. Visitor and Immigrant Status Indicator Technology (US-VISIT) program to collect, maintain, and share information on selected foreign nationals who enter and exit the United States at over 300 air, sea, and land ports of entry (POEs). The program uses biometric identifiers (digital finger scans and photographs) to screen people against watch lists and to verify that a visitor is the person who was issued a visa or other travel document. GAO's testimony addresses the status of US-VISIT entry and exit capabilities and DHS's management of past and future exit efforts. In developing its testimony, GAO drew from eight prior reports on US-VISIT as well as ongoing work for the committee."

Testimony issued by the Government Accountability Office with an abstract that begins "The September 11, 2001, terrorist attack on the World Trade Center (WTC) turned Lower Manhattan into a disaster site. As the towers collapsed, Lower Manhattan was blanketed with building debris and combustible materials. This complex mixture created a major concern: that thousands of residents and workers in the area would now be exposed to known hazards in the air and in the dust, such as asbestos, lead, glass fibers, and pulverized concrete. In May 2002, New York City formally requested federal assistance to address indoor contamination. The Environmental Protection Agency (EPA) conducted an indoor clean and test program from 2002 to 2003. Several years later, after obtaining the views of advisory groups, including its Inspector General and an expert panel, EPA announced a second test and clean program in December 2006. Program implementation is to begin later in 2007, more than 5 years after the disaster. GAO's testimony, based on preliminary work evaluating EPA's development of its second program, addresses (1) EPA's actions to implement recommendations from the expert panel and its Inspector General, (2) the completeness of information EPA provided to the public in its second plan, …

Correspondence issued by the Government Accountability Office with an abstract that begins "Referred to as our "third border," the Caribbean Basin has significant maritime links with the United States. Given these links and the region's proximity, the United States is particularly interested in ensuring that the ports in the Caribbean Basin--through which goods bound for this country's ports and cruise ships carrying its citizens must travel--are secure. Section 233 (c) of the Security and Accountability for Every Port Act of 2006 (SAFE Port Act) requires GAO to report on various security-related aspects of Caribbean Basin ports. Our specific objectives were to identify and describe the (1) threats and security concerns in the Caribbean Basin related to port security, (2) actions that foreign governments and local stakeholders have taken in the Caribbean Basin to implement international port security requirements and the challenges that remain, (3) activities reported to be under way by U.S. government agencies to enhance port security in the Caribbean Basin, and (4) potential economic impacts of port security and terrorist attacks in the Caribbean Basin. Between March 29 and April 13, 2007, we briefed Congress on the results of our work to address these objectives. This report summarizes …

Correspondence issued by the Government Accountability Office with an abstract that begins "The National Library Service for the Blind and Physically Handicapped (NLS), a part of the Library of Congress, operates a free national talking (audio) book program for qualified blind, visually impaired, or physically disabled residents of the United States and its territories, as well as qualified U.S. citizens residing abroad. NLS produces and distributes analog cassette players and talking books and periodicals recorded on audio cassettes to approximately 434,000 individual subscribers and 33,000 institutions through a network of 132 participating libraries and the U.S. Postal Service (USPS). In the 1990s, NLS recognized that analog audio cassette technology was becoming outdated and nearing the end of its useful life and initiated efforts to plan for a new, digitally based talking book system. NLS analyzed three alternatives for the system--CD, hard drive, and flash based media--and chose to award a contract for the development of a digital talking book system based on flash memory media. The development phase is now nearing completion, and NLS is planning to award the manufacturing contract for the digital talking book system in August 2007. Under U.S. copyright law, NLS is authorized to reproduce and …

Correspondence issued by the Government Accountability Office with an abstract that begins "The size and scope of the devastation caused by the 2005 Gulf Coast hurricanes presents the nation with unprecedented rebuilding challenges. These storms destroyed wide swaths of housing, infrastructure, and businesses and displaced hundreds of thousands of people from their homes. Today, nearly two years since these hurricanes made landfall, rebuilding efforts are at a critical turning point. The Gulf Coast and the nation are facing the daunting challenges of rebuilding. Our recent work in southern Louisiana and New Orleans confirms that some communities are still without basic needs, such as schools, hospitals, and other infrastructure, while the doors of many businesses remain closed. Over the coming years, perhaps decades, many neighborhoods and communities will need to be rebuilt--some from the ground up. At the same time, major decisions will need to be made regarding a wide range of issues including coastal restoration, levee protection, infrastructure, land use, and economic recovery. Agreeing on what rebuilding will be done, where, how, and--particularly important--who will bear the costs will be key to moving forward with the rebuilding process. To assist Congress in its oversight responsibilities, GAO briefed Congress on several …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Food and Drug Administration (FDA) is the agency responsible for ensuring the safety and effectiveness of medical devices--such as catheters and artificial hearts--marketed in the United States. As part of its regulatory responsibilities, FDA reviews applications submitted by medical device companies for devices they wish to market, including devices that are new or those that include modifications to already approved devices. The Medical Device User Fee and Modernization Act of 2002 (MDUFMA) authorized FDA, beginning in fiscal year 2003, to charge user fees for various types of device applications. User fees were intended to provide resources to FDA, to increase staffing for medical device reviews and speed the timeliness of reviews, in addition to resources otherwise provided through the annual appropriations process. Under MDUFMA, FDA is required to report to the congressional committees of jurisdiction annually on the implementation of the user fee program. FDA submitted financial reports that include information such as amounts collected from user fees, the costs of reviewing device applications, and staffing levels FDA dedicated to the review of medical device applications for each fiscal year from 2003 through 2005. In response to …

Correspondence issued by the Government Accountability Office with an abstract that begins "The National Transportation Safety Board (NTSB) opened a training center in 2003 to train its investigators and others from the transportation community on accident investigation techniques. As GAO reported last year, NTSB's training center is not cost-effective, as its revenues, when combined with the external training costs NTSB staff avoid by using the center, do not cover its costs. In fact, in fiscal year 2006, costs exceeded revenues by $2.7 million. We concluded that potential strategies to increase revenues or decrease costs could increase the cost-effectiveness of the training center; however, vacating the space may be the strategy that reduces costs the most. On December 21, 2006, Congress passed Public Law 109-443, requiring NTSB to prepare a utilization plan for the training center that would, among other things, consider other revenue-generating measures, such as subleasing the training center to another entity; include a detailed financial statement covering current training center expenses and revenues and an analysis of the projected expenses and revenues; and submit the plan to us for review and comment within 90 days of passage of the act. NTSB prepared a draft business plan for the …

Correspondence issued by the Government Accountability Office with an abstract that begins "The evacuation of nearly 15,000 American citizens from Lebanon during July and August 2006 was one of the largest overseas evacuations of American citizens in recent history. The Department of State (State) has the lead responsibility for evacuating American citizens from overseas locations in times of crisis. However, the size and unforeseen nature of the Lebanon evacuation required the assistance of the Defense Department (DOD). Specifically, State needed DOD's ability to secure safe passage for American citizens in a war zone, as well as DOD's expertise and resources in providing sea and air transportation for large numbers of people. At your request, we have been conducting an ongoing review of State's efforts to plan for, execute, and recover from the evacuation of U.S. government personnel and American citizens from overseas posts. As part of this review, we collected information on State and DOD's efforts to evacuate U.S. citizens from Lebanon in July and August 2006. To address your questions about the Lebanon evacuation, we briefed members of your staff on April 30, 2007, on (1) how State and DOD prepare for evacuations; (2) how State and DOD carried …

Correspondence issued by the Government Accountability Office with an abstract that begins "Affordable housing organizations and Federal Home Loan Bank (FHLBank) members have raised concerns that a Federal Housing Finance Board (FHFB) rule limiting excess stock could adversely impact FHLBank earnings. In particular, concerns have been raised regarding the FHLBanks' Affordable Housing Program (AHP), which subsidizes the cost of affordable housing with funds from the 12 FHLBanks, all of whom are required to contribute a minimum of 10 percent of their prior year's net earnings to the program, subject to a minimum annual combined contribution of $100 million. Congress asked us to examine the impact of FHFB's rule making on AHP. Specifically, this report describes (1) the results of FHFB's rule making and the provisions of the final rule on excess stock, and (2) the potential impact of the final rule on AHP."

Correspondence issued by the Government Accountability Office with an abstract that begins "Anticipating the expiration of the Federal Aviation Administration's (FAA) current authorization at the end of fiscal year 2007, the administration submitted a proposal on February 14, 2007, for reauthorizing FAA and the excise taxes that fund most of its budget. This proposal would introduce cost-based charges for commercial users of air traffic control services, eliminate many current taxes, substantially raise fuel taxes for general aviation users to pay for their use of air traffic control services, and charge commercial and general aviation users a fuel tax to pay primarily for airport capital improvements. In January 2007, FAA released the results of a recently completed cost allocation study in support of the administration's proposal for transitioning to user fees. FAA and the administration used this study to determine the factors that drive the costs of providing air traffic control services, allocate these costs to various users of air traffic control services, and support the development of alternative methods to recover those costs. On March 21, 2007, we testified before the House Subcommittee on Aviation, providing our observations on selected changes to FAA's funding and budget structure contained in the …

Testimony issued by the Government Accountability Office with an abstract that begins "Since the Workforce Investment Act's (WIA) enactment in 1998, GAO has issued numerous reports that included recommendations regarding many aspects of WIA, including performance measures and accountability, funding formulas and spending, one-stop centers, and training, as well as services provided to specific populations, such as dislocated workers, youth, and employers. Collectively, these studies employed an array of data collection techniques, including surveys to state and local workforce officials and private sector employers; site visits; interviews with local, state, and Labor officials; and analysis of Labor data and documents. This testimony draws upon the results of these reports, issued between 2000 and 2007, as well as GAO's ongoing work on one-stop infrastructure, and discusses issues raised and recommendations made. Specifically, the testimony addresses (1) progress made by federal, state, and local officials in implementing key provisions of WIA; and (2) challenges that remain in implementing an integrated employment and training system."

Testimony issued by the Government Accountability Office with an abstract that begins "In the early 1980s, volatile organic compounds (VOC) were discovered in some of the water systems serving housing areas on Marine Corps Base Camp Lejeune. Exposure to certain VOCs may cause adverse health effects, including cancer. Since 1991, the Department of Health and Human Services' Agency for Toxic Substances and Disease Registry (ATSDR) has been examining whether individuals who were exposed to the contaminated drinking water are likely to have adverse health effects. ATSDR's current study is examining whether individuals who were exposed in utero are more likely to have developed certain childhood cancers or birth defects. GAO was asked to testify on its May 11, 2007 report: Defense Health Care: Activities Related to Past Drinking Water Contamination at Marine Corps Base Camp Lejeune (GAO-07-276). This testimony summarizes findings from the report about (1) efforts to identify and address the past drinking water contamination, (2) the provision of funding and information from the Department of Defense (DOD) to ATSDR, and (3) an assessment of the design of the current ATSDR study. GAO reviewed documents, interviewed officials and former residents, and contracted with the National Academy of Sciences to …

Testimony issued by the Government Accountability Office with an abstract that begins "Telework continues to receive attention within Congress and federal agencies as a human capital strategy that offers various flexibilities to both employers and employees, including the capacity to continue operations during emergency events, as well as benefits to society, such as decreased energy use and pollution. This statement highlights some of GAO's prior work on federal telework programs, including key practices for successful implementation of telework initiatives, identified in a 2003 GAO report and a 2005 GAO analysis of telework program definitions and methods in five federal agencies. In addition, the statement discusses GAO observations on the Telework Enhancement Act of 2007, S. 1000."

Testimony issued by the Government Accountability Office with an abstract that begins "In May 2006, the President called for comprehensive immigration reform that included strengthening control of the country's borders by, among other things, adding 6,000 new agents to the U.S. Border Patrol by the end of December 2008. This unprecedented 48 percent increase over 2 years raises concerns about the ability of the Border Patrol's basic training program to train these new agents. This testimony is based on a recent report for the ranking member of this subcommittee on the content, quality, and cost of the Border Patrol's basic training program for new agents and addresses (1) the extent to which the Border Patrol's basic training program exhibits the attributes of an effective training program and the changes to the program since September 11, 2001; (2) the cost to train a new agent and how this compares to the costs of other similar law enforcement basic training programs; and (3) any plans the Border Patrol has developed or considered to improve the efficiency of its basic training program. To address these issues, GAO reviewed relevant documents; observed classroom training and exercises at the Border Patrol Academy in Artesia, New …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Commerce's U.S. Census Bureau (Bureau) seeks updated information on the addresses and maps of housing units from state, local, and tribal governments through the Local Update of Census Addresses (LUCA) program. This testimony discusses (1) the status of the LUCA program, and (2) the Bureau's response to prior issues raised by GAO as well as new challenges related to the program. The testimony is based on a GAO report issued on June 14, 2007. GAO reviewed LUCA program documents, met with and surveyed participants in the LUCA Dress Rehearsal, and interviewed Bureau officials and local officials."

Testimony issued by the Government Accountability Office with an abstract that begins "Key practices of effective performance management for the Senior Executive Service (SES) include the linkage or "line of sight" between individual performance and organizational success, the importance of linking pay to individual and organizational performance, and the need to make meaningful distinctions in performance. GAO identified certain principles for executive pay plans that should be considered to attract and retain the quality and quantity of executive leadership necessary to address 21st century challenges, including that they be sensitive to hiring and retention trends; reflect knowledge, skills, and contributions; and be competitive. This testimony focuses on the Department of Veterans Affairs' (VA) process for awarding bonuses to SES members, the amount and percentage of bonuses awarded for fiscal years 2004 through 2006 based on data reported by VA, and the Office of Personnel Management's (OPM) and the Office of Management and Budget's (OMB) roles in certifying federal agencies SES performance appraisal systems. GAO analyzed VA's policies and procedures for awarding bonuses and data provided by VA on the amount and percentages of bonuses and interviewed knowledgeable VA officials. Information on OPM's and OMB's certification process was based on our …

Testimony issued by the Government Accountability Office with an abstract that begins "Increasing retirements and declining fertility rates, among other factors, could affect the labor force growth in many developed countries. To maintain the size and productivity of the labor force, many governments and employers have introduced strategies to keep workers who face greater challenges in maintaining jobs and incomes, such as women and low-skilled workers, in the workforce. This testimony discusses our work on (1) describing the policies and practices implemented in other developed countries that may help women and low-wage/low-skilled workers enter and remain in the labor force, (2) examining the change in the targeted groups' employment following the implementation of the policies and practices, and (3) identifying the factors that affect employees' use of workplace benefits and the resulting workplace implications. The testimony is based on a report we are issuing today (GAO-07-817). For that report, we conducted an extensive review of workforce flexibility and training strategies in a range of developed countries and site visits to selected countries. Our reviews were limited to materials available in English. We identified relevant national policies in the U.S., but did not determine whether other countries' strategies could be implemented …

Testimony issued by the Government Accountability Office with an abstract that begins "The Forest Service manages over 192 million acres of land, often conducting a variety of vegetation management projects such as thinning trees. Before approving projects that may significantly affect the environment, the National Environmental Policy Act (NEPA) generally requires the Forest Service to prepare an environmental assessment (EA) or an environmental impact statement (EIS). However, the Forest Service can decide not to prepare an EA or EIS if the project involves categories of activities that it previously found to have no significant environmental effect (categorical exclusions). As of 2003, the Forest Service had established one such exclusion affecting vegetation management projects and has since added four new ones. This testimony is based on GAO's report, Forest Service: Use of Categorical Exclusions for Vegetation Management Projects, Calendar Years 2003 through 2005 (GAO-07-99). For vegetation management during these years, GAO determined (1) how many projects the Forest Service approved, including those approved using categorical exclusions; (2) which categorical exclusions it used to approve projects; and (3) if categorical exclusions are not being used in any field offices, why. To answer these questions, GAO surveyed Forest Service officials at all 155 …

Testimony issued by the Government Accountability Office with an abstract that begins "The Trade Adjustment Assistance (TAA) program, administered by the Department of Labor (Labor), is the nation's primary program providing income support, job training, and other benefits to manufacturing workers who lose their jobs as a result of international trade. In fiscal year 2006, Congress appropriated about $900 million for TAA, including about $220 million for training. GAO has conducted a number of studies on the TAA program since the program was last reauthorized in 2002. This testimony draws upon the results of two of those reports, issued in 2006 and 2007, as well as ongoing work, and addresses issues raised and recommendations made regarding (1) Labor's administration of the TAA program, (2) the challenges states face in providing services to trade affected workers, (3) the factors that affect workers' use of the wage insurance and health coverage benefits, and (4) the impact of using industrywide certification approaches on the number of workers potentially eligible for TAA."