Correspondence issued by the Government Accountability Office with an abstract that begins "This report is in response to section 1899L of the American Recovery and Reinvestment Act of 2009. The statute required the Comptroller General to examine issues related to participation in and administrative costs associated with the Health Coverage Tax Credit program administered by the Internal Revenue Service (IRS) in the Department of the Treasury, and to provide the results to Congress by March 1, 2010."

Correspondence issued by the Government Accountability Office with an abstract that begins "The United States faces challenges to ensuring food safety. First, imported food makes up a substantial and growing portion of the U.S. food supply, with 60 percent of fresh fruits and vegetables and 80 percent of seafood coming from across our borders. In recent years, there has been an increase in reported outbreaks of foodborne illness associated with both domestic and imported produce. Second, we are increasingly eating foods that are consumed raw and that have often been associated with foodborne illness outbreaks, including leafy greens such as spinach. Finally, shifting demographics means that more of the U.S. population is, and increasingly will be, susceptible to foodborne illnesses. The risk of severe and life-threatening conditions caused by foodborne illnesses is higher for older adults, young children, pregnant women, and immune-compromised individuals. In January 2007 GAO designated federal oversight of food safety as a high-risk area needing urgent attention and transformation because of the federal government's fragmented oversight of food safety. The Food and Drug Administration (FDA) is responsible for ensuring the safety of roughly 80 percent of the U.S. food supply--virtually all domestic and imported foods except for …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the briefing in response to the National Defense Authorization Act for Fiscal Year 2010 (Pub. L. No. 111-84), which required GAO to submit a report on rare earth materials in the defense supply chain to the Committees on Armed Services of the Senate and House of Representatives by April 1, 2010."

Correspondence issued by the Government Accountability Office with an abstract that begins "In connection with fulfilling our requirement to audit the financial statements of the U.S. government, we audited and reported on the Schedules of Federal Debt Managed by the Bureau of the Public Debt (BPD) for the fiscal years ended September 30, 2009 and 2008. As part of these audits, we performed a review of the general and application information security controls over key financial systems maintained and operated by the Federal Reserve Banks (FRB) on behalf of the Department of the Treasury's (Treasury) BPD relevant to the Schedule of Federal Debt. As we reported in connection with our audit of the Schedules of Federal Debt for the fiscal years ended September 30, 2009 and 2008, we concluded that BPD maintained, in all material respects, effective internal control relevant to the Schedule of Federal Debt related to financial reporting and compliance with applicable laws and regulations as of September 30, 2009, that provided reasonable assurance that misstatements, losses, or noncompliance material in relation to the Schedule of Federal Debt would be prevented or detected on a timely basis. However, we found deficiencies involving information security controls that we do …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the U.S. Government Accountability Office's (GAO) budget request for fiscal year 2011. In fiscal year 2009, GAO supported congressional decision making and oversight on a range of critical issues, including the government's efforts to help stabilize financial markets and address the most severe recession since World War II. In addition to providing oversight for the 2008 Economic Stabilization Act and the American Recovery and Reinvestment Act of 2009 (Recovery Act), we continued to provide the Congress updates on programs that are at high risk for waste, fraud, abuse, and mismanagement or are in need of broad reform, and delivered advice and analyses on a broad array of pressing domestic and international issues that demand urgent attention and continuing oversight. These include modernizing the regulatory structure for financial institutions and markets to meet 21st century demands; controlling escalating health care costs and providing more effective oversight of medical products; restructuring the U.S. Postal Service to ensure its financial stability; and improving the Department of Defense's management approaches to issues ranging from weapons system acquisitions to accounting for weapons provided to Afghan security forces. Overall, we responded …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Securities and Exchange Commission's (SEC) primary mission is to protect investors and maintain the integrity of securities markets. As a part of its responsibility to protect investors, SEC seeks to ensure that individuals who violate federal securities laws and regulations take responsibility for their misdeeds. Specifically, when individuals or firms are found to have violated securities laws, SEC may order civil monetary penalties and seek ill-gotten financial gains, or disgorgement, from the violators. For its enforcement actions to be successful, SEC must have a collection and distribution program for both civil monetary penalties and disgorgement that functions effectively. In 2002, Congress passed the Sarbanes-Oxley Act to address corporate malfeasance and restore investor confidence in the U.S. securities markets. This legislation established numerous reforms to increase investor protection, including Section 308(a), the Federal Account for Investor Restitution provision, commonly known as the Fair Fund provision. This provision allows SEC to combine civil monetary penalties and other donations to disgorgement funds for the benefit of investors who suffer losses resulting from fraud or other securities violations. Fair Funds may be created through either SEC administrative proceedings or litigation in …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense's (DOD) military compensation package, which is a myriad of pays and benefits, is an important tool to attract and retain the number and quality of active duty servicemembers it needs to fulfill its mission. Compensation can be appropriate and adequate to attract and retain servicemembers when it is competitive with civilian compensation. However, comparisons between military and civilian compensation present both limitations and challenges. As we noted in 1986, exact compensation comparisons are not possible because no data exist which would allow an exact comparison of military and civilian personnel with the same levels of work experience. Also, nonmonetary considerations complicate military and civilian pay comparisons because their value cannot be quantified. Specifically, military service is unique in that the working conditions for active duty service carry the risk of death and injury during wartime and the potential for frequent, long deployments unlike most civilian jobs. The National Defense Authorization Act for Fiscal Year 2010 required that we conduct a study comparing pay and benefits provided by law to members of the Armed Forces with that of comparably situated private-sector employees to assess how …

Correspondence issued by the Government Accountability Office with an abstract that begins "As the life expectancy of Americans continues to increase, the risk that retirees will outlive their assets is a growing challenge. Today, couples both aged 62 have a 47 percent chance that at least one of them will live to their 90th birthday. In addition to the risk of outliving ones' assets, the sharp declines in financial markets and home equity during the last few years and the continued increase in health care costs have intensified workers' concerns about having enough savings and how to best manage those savings in retirement. Congress asked us to examine (1) options retirees have for drawing on financial assets to replace preretirement income and options retirees choose, and (2) how pensions, annuities and other retirement savings vehicles are regulated."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) is facing the complex challenge of simultaneously supporting continuing operations in Iraq and Afghanistan and preparing its military forces to meet emerging threats of the new security environment. Congress appropriated $626 billion for DOD's fiscal year 2010 budget and to support current operations. As we have emphasized in previous reports, the federal government is facing serious long-term fiscal challenges, and DOD may confront increased competition over the next decade for federal discretionary funds. The 2010 Quadrennial Defense Review (QDR), the fourth since 1997 and the second since the start of operations in Afghanistan and Iraq, articulates DOD's strategic plan to rebalance capabilities in order to prevail in current operations and develop capabilities to meet future threats. The QDR acknowledged that the country faces fiscal challenges and that DOD must make difficult trade-offs where warranted. Also, the QDR results are intended to guide the services in making resource allocation decisions when developing future budgets. This letter provides our assessment of the degree to which DOD addressed each of these items in its 2010 report on the QDR and the supplemental information provided to the …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) leads detection and monitoring of aerial and maritime transit of illegal drugs into the United States in support of law enforcement agencies. Additionally, DOD's counternarcotics activities include sharing information with U.S. and foreign agencies, as well as helping foreign countries build their counternarcotics capacity. In support of these activities, Congress provided just over $6.1 billion to DOD's Counternarcotics Central Transfer Account from fiscal year 2005 through 2010. In November 2005, GAO recommended that DOD, in conjunction with other agencies performing counternarcotics activities, develop and coordinate counternarcotics performance measures. GAO has found that measuring performance allows organizations to track the progress they are making toward their goals and provides managers a basis for making key decisions to improve programs and results. In May 2007, the Office of National Drug Control Policy (ONDCP) released a circular that required agencies, including DOD, to submit a report on their performance-related information for counternarcotics activities, including how the agency's performance measures are used in the management of the program. The National Defense Authorization Act for Fiscal Year 2010 (Pub. L. No. 111-84, 1016) mandated that GAO report on …

Correspondence issued by the Government Accountability Office with an abstract that begins "National estimates indicate that approximately 1.5 million women and 835,000 men are physically assaulted or raped by intimate partners in the United States annually. Congress, in the National Defense Authorization Act for Fiscal Year 2000, required the Department of Defense (DOD) to (1) establish a central database of information on domestic violence incidents involving members of the armed forces and (2) establish the Department of Defense Task Force on Domestic Violence. The law charged the task force with establishing a strategic plan that would allow DOD to more effectively address domestic violence matters within the military. In fiscal years 2001, 2002, and 2003, the task force issued three reports containing almost 200 recommendations to improve the safety of victims, accountability of offenders, coordination among support-service providers, and recording of data on cases of domestic violence. To coordinate implementation of these recommendations, in January 2003, DOD established a Family Violence Policy Office to ensure that DOD and the services took appropriate actions in this area. This office was located in the Military Community and Family Policy Office, which is in the Office of the Under Secretary of Defense for …

Correspondence issued by the Government Accountability Office with an abstract that begins "The matching of airline passenger information against terrorist watchlist records (watchlist matching) is a frontline defense against acts of terrorism that target the nation's civil aviation system. In general, passengers identified as matches to the No-Fly list are prohibited from boarding commercial flights, while those matched to the Selectee list are required to undergo additional screening. Historically, airline passenger prescreening against watchlist records has been performed by commercial air carriers. As required by the Intelligence Reform and Terrorism Prevention Act of 2004, the Department of Homeland Security's (DHS) Transportation Security Administration (TSA) has developed an advanced passenger prescreening program--known as Secure Flight--to assume from air carriers the function of matching passenger information against terrorist watchlist records. Since fiscal year 2004, TSA has received $358 million in appropriated funds for the development and implementation of Secure Flight, according to program officials. Also, since fiscal year 2004, GAO has been mandated to assess the development and implementation of the Secure Flight program. We have reported on numerous challenges the program has faced, including those related to protecting passenger privacy, completing performance testing, fully defining and testing security requirements, and establishing …

Testimony issued by the Government Accountability Office with an abstract that begins "To assist law enforcement agencies in their efforts to combat money laundering, terrorist financing, and other financial crimes, the Bank Secrecy Act (BSA) requires financial institutions to file suspicious activity reports (SAR) to inform the federal government of transactions related to possible violations of law or regulation. Depository institutions have been concerned about the resources required to file SARs and the extent to which SARs are used. The Subcommittee asked GAO to discuss our February 2009 report on suspicious activity reporting. Specifically, this testimony discusses (1) factors affecting the number of SARs filed, (2) actions agencies have taken to improve the usefulness of SARs, (3) federal agencies' use of SARs, and (4) the effectiveness of the process used to revise SAR forms. To respond to the request, GAO relied primarily on the February 2009 report titled Bank Secrecy Act: Suspicious Activity Report Use Is Increasing, but FinCEN Needs to Further Develop and Document Its Form Revision Process (GAO-09-226), and updated it with additional information provided by FinCEN. In that report, GAO recommended that FinCEN work to further develop a strategy that fully incorporates certain GAO-identified practices to enhance …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report formally transmits the attached briefing in response to section 343(a) of The National Defense Authorization Act for Fiscal Year 2010 (Pub. L. No. 111-84). The Act requires the Comptroller General to provide a report on the sustainment strategy for the AV-8B Harrier aircraft and provide the results to the congressional defense committees no later than 180 days after the enactment of the Act. On April 26, 2010, we provided the briefing to your offices to satisfy the mandate."

Correspondence issued by the Government Accountability Office with an abstract that begins "This report formally transmits the briefing in response to the Senate Appropriations Committee Report accompanying the Department of Defense Appropriations Bill for fiscal year 2010 (S. Rep. No. 111-74, pp. 155-156). The Committee Report requires the Government Accountability Office to provide information on the differences between Department of Defense and Military Service requirements for corrosion prevention and control projects for fiscal year 2011 and provide the results to the Senate Appropriations Committee within 60 days after submission of the Department of Defense budget."

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal and state governments share responsibility for ensuring that nursing homes provide quality care in a safe environment for vulnerable elderly or disabled individuals who can no longer care for themselves. States survey nursing homes annually under contract with the Centers for Medicare & Medicaid Services (CMS), the federal agency responsible for ensuring the effectiveness of state surveys. To evaluate state surveyors' performance, CMS conducts federal comparative surveys in which federal surveyors independently resurvey a home recently inspected by state surveyors and compare and contrast the deficiencies identified during the two surveys. Federal comparative surveys can find two types of understatement: (1) missed deficiencies, which can occur when a state surveyor fails to cite a deficiency altogether, or (2) cases where state surveyors cite deficiencies at too low a level. In May 2008, we reported that a substantial proportion of federal comparative surveys conducted from fiscal years 2002 through 2007 identified missed deficiencies that either had the potential to or did result in harm, death, or serious injury to nursing home residents."

Correspondence issued by the Government Accountability Office with an abstract that begins "The President acknowledged that many federal contracting arrangements do not serve the needs of the federal government or the interests of the American taxpayer in a March 2009 memorandum. Among many of the issues discussed, the memorandum states that the government needs to ensure that it has the workforce needed to carry out robust and thorough management and oversight of contracts to achieve programmatic goals, avoid significant overcharges, and curb wasteful spending. However, the capacity and the capability of the federal government's acquisition workforce to oversee and manage contracts have not kept pace with increased spending for increasingly complex purchases. For example, federal civilian agencies' acquisition spending increased in real terms from $80 billion to $138 billion between fiscal year 2000 and fiscal year 2008, while their acquisition workforce grew at a considerably lower rate. Furthermore, 55 percent of the current acquisition workforce will be eligible to retire in 2018--more than twice the number eligible in 2008-- which creates potential future skill shortages. To help address the challenges faced in the federal contracting environment, the President's fiscal year 2011 budget identifies the development of the federal acquisition workforce …

Correspondence issued by the Government Accountability Office with an abstract that begins "The John Warner National Defense Authorization Act for Fiscal Year 2007, Pub. L. No. 109-364, 323 directed the Comptroller General to assess (1) the Army's progress completing its modular transformation initiative; (2) the status of Army efforts to reconstitute its prepositioned material stock; and (3) the Army's progress in its efforts to repair, recapitalize, and replace equipment used in current overseas operations. This is the final briefing on these issues."

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the briefing in response to section 2846 of the National Defense Authorization Act for Fiscal Year 2010. The act required the Comptroller General to report on the Department of Defense's renewable energy initiatives, including projects involving the installation of solar panels."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) and other executive agencies increasingly deploy civilians in support of contingency operations in Iraq and Afghanistan. Prior GAO reports show that the use of deployed civilians has raised questions about the potential for differences in policies on compensation and medical benefits. When these civilians are deployed and serve side by side, differences in compensation or medical benefits may become more apparent and could adversely impact morale. This statement is based on GAO's 2009 congressionally requested report, which compared agency policies and identified any issues in policy or implementation regarding (1) compensation, (2) medical benefits, and (3) identification and tracking of deployed civilians. GAO reviewed laws, policies, and guidance; interviewed responsible officials at the Office of Personnel Management (OPM); and conducted a survey of civilians deployed from the six agencies between January 1, 2006 and April 30, 2008. GAO made ten recommendations for agencies to take actions such as reviewing compensation laws and policies, establishing medical screening requirements, and creating mechanisms to assist and track deployed civilians. Seven of the agencies--including DOD-- generally agreed with these recommendations; U.S. Agency for International Development did not. …

Testimony issued by the Government Accountability Office with an abstract that begins "In November 2007, GAO reported significant deficiencies in internal control over certain contracts the Centers for Medicare and Medicaid Services (CMS) awarded under the Federal Acquisition Regulation (FAR). This Subcommittee and others in Congress asked GAO to perform an in-depth review of CMS's contract management practices. This testimony is based on GAO's October 2009 report on these issues and summarizes GAO's findings on the extent to which CMS (1) implemented effective control procedures over contract actions, (2) established a strong contract management control environment, and (3) implemented GAO's 2007 recommendations. GAO used a statistical random sample of 2008 CMS contract actions to assess CMS internal control procedures. The results were projected to the population of 2008 CMS contract actions. GAO reviewed contract file documentation and interviewed senior acquisition management officials."

Testimony issued by the Government Accountability Office with an abstract that begins "To prepare for future air traffic growth, the Federal Aviation Administration (FAA), including its Joint Planning and Development Office (JPDO) and Air Traffic Organization, is planning and implementing the Next Generation Air Transportation System (NextGen) in partnership with other federal agencies, such as the Departments of Commerce, Defense, and Homeland Security, and the aviation industry. NextGen will transform the current radar-based air traffic control system into a satellite-based system. As FAA begins implementing near-and midterm NextGen capabilities, a key challenge will be the extent to which FAA is able to integrate near and midterm improvements (those between 2012 and 2018) with long-term plans (beyond 2018). Furthermore, coordination among federal partner agencies and among various lines of business within FAA is important to ensure that NextGen implementation efforts are aligned. GAO's testimony focuses on (1) current mechanisms for and challenges to coordination among FAA and its partner agencies in implementing NextGen, (2) challenges and ongoing efforts to improve coordination across offices within FAA, and (3) issues related to integrating near- and midterm implementation plans with long-term NextGen plans. This statement is based on past and ongoing GAO work, and …

Testimony issued by the Government Accountability Office with an abstract that begins "The National Flood Insurance Program (NFIP), established in 1968, provides policyholders with insurance coverage for flood damage. The Federal Emergency Management Agency (FEMA) within the Department of Homeland Security is responsible for managing NFIP. Unprecedented losses from the 2005 hurricane season and NFIP's periodic need to borrow from the U.S. Treasury to pay flood insurance claims have raised concerns about the program's long-term financial solvency. Because of these concerns and NFIP's operational issues, NFIP has been on GAO's high-risk list since March 2006. As of April 2010, NFIP's debt to Treasury stood at $18.8 billion. The Subcommittee asked GAO to discuss (1) NFIP's financial challenges, (2) FEMA's operational and management challenges, and (3) actions needed to address these challenges. In preparing this statement, GAO relied on its past work on NFIP and GAO's ongoing review of FEMA's management of NFIP focused on information technology and contractor oversight issues."

Testimony issued by the Government Accountability Office with an abstract that begins "GAO annually audits the consolidated financial statements of the U.S. government (CFS). Congress and the President need reliable, useful, and timely financial and performance information to make sound decisions and conduct effective oversight of federal government programs and policies. The federal government began preparing the CFS 13 years ago. Over the years, certain material weaknesses in internal control over financial reporting have prevented GAO from expressing an opinion on the accrual-based consolidated financial statements. Unless these weaknesses are adequately addressed, they will, among other things, continue to (1) hamper the federal government's ability to reliably report a significant portion of its assets, liabilities, costs, and other related information; and (2) affect the federal government's ability to reliably measure the full cost as well as the financial and nonfinancial performance of certain programs and activities. This testimony presents the results of GAO's audit of the CFS for fiscal year 2009 and discusses certain of the federal government's significant near- and long-term fiscal challenges."