Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Military Chaplains Association of the United States of America for 1999 and 1998. 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 Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Woman's Relief Corps, Auxiliary to the Grand Army of the Republic, Inc., for fiscal years ended August 31, 2005 and 2004. GAO found no reportable instances of noncompliance. The audit reports included the auditor's opinion that the financial statements of the corporation were presented fairly on a modified cash basis of accounting."

Correspondence issued by the Government Accountability Office with an abstract that begins "On January 17, 2007, GAO testified before Congress on the Department of Defense's (DOD) management of its acquisition of services. GAO made several key points during the hearing. First, DOD's long-standing problems with contract management have become more prominent as DOD's reliance on contractors to provide services continues to grow. Second, DOD lacks sound contracting practices when acquiring services. Third, DOD's acquisition workforce has been downsized without sufficient attention to requisite skills and competencies. Fourth, DOD's acquisitions have resulted in outcomes that have cost the department valuable resources. And, finally, while DOD is taking some steps to address these problems, it does not know how well its services acquisition processes are working, which part of its mission can best be met through buying services, and whether it is obtaining the services it needs while protecting DOD's and the taxpayer's interests. Within this context, members of Congress requested that GAO provide additional comments on DOD's efforts regarding the following topics: interagency contracting, acquisition of services, acquisition reform, and the acquisition workforce."

Correspondence issued by the Government Accountability Office with an abstract that begins "Rapid spending growth for Medicare Part B--which covers physician and other outpatient services--has heightened concerns about the long-range fiscal sustainability of Medicare. Medicare Part B expenditures are expected to increase over the next decade at an average annual rate of about 8 percent, which is faster than the projected 4.8 percent annual growth rate in the national economy over this time period. As we noted in our June 2008 report, spending on physician imaging services has been one of the fastest-growing sets of services paid for under the Medicare Part B physician fee schedule (PFS), the payment system used to determine fees for Medicare physician-billed services. From 2000 through 2006, Medicare spending for physician imaging services doubled from about $7 billion to about $14 billion--an average annual increase of 13 percent, compared to an 8 percent increase in spending for all Medicare physician-billed services over the same time period. We also found that by 2006 about two-thirds of spending on physician imaging services occurred in physician office settings--an indicator of a shift toward providing imaging services in physicians' offices as opposed to providing such services in hospital or …

Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Energy's (DOE) complex of research and nuclear facilities is not inspected or licensed by an independent external regulator, such as the Nuclear Regulatory Commission (NRC). Instead, DOE and its predecessors have, since 1946, been granted legislative authority to self-regulate nuclear and worker safety in the department's facilities. DOE officials told GAO that (1) the department's current position on external regulation is "neutral" because the Secretary has insufficient information on which to make a decision; (2) another study is needed to develop data on the costs and benefits of making the transition to, and operating under, external regulation, and (3) a realistic implementation plan cannot be developed for the six to nine months DOE estimates the study will take. On the other hand, NRC and the Occupational Safety and Health Administration (OSHA) report that they are prepared to begin regulating the department's 10 science laboratories. The cost of upgrading DOE facilities to regulator standards may not be significant for a variety of reasons. First, NRC concluded from its simulations that few changes to DOE facilities are needed to meet it's licensing requirements. Second, NRC stated that …

Correspondence issued by the Government Accountability Office with an abstract that begins "The White House Commission on the National Moment of Remembrance (Commission) was created on December 28, 2000, by the National Moment of Remembrance Act. The Commission's purpose is to sustain the American spirit through acts of remembrance, not only on Memorial Day but also throughout the year, for those who died serving our country. Congress appropriated $1.25 million to the Commission to fund its operations for fiscal years 2002 through 2005. In fiscal year 2005, the Commission received net appropriations of approximately $248,000, along with cash and in-kind donations of approximately $103,000 from individuals and businesses. In addition, it had approximately $244,000 in unexpended appropriations from prior fiscal years. The Commission expended approximately $239,000 of appropriated funds and funded costs of approximately $103,000 with cash and in-kind donations received during the fiscal year. The National Moment of Remembrance Act requires GAO to annually audit the financial transactions of the Commission. However, as reflected in an Office of Management and Budget (OMB) memorandum, the Commission is subject to the Accountability of Tax Dollars Act of 2002 which was enacted on November 7, 2002. This act requires the Commission to …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Future Farmers of America for fiscal years 2001 and 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."

Correspondence issued by the General Accounting Office with an abstract that begins "Established in March 2002, the Homeland Security Advisory System was designed to disseminate information regarding the risk of terrorist acts to federal, state, and local government agencies and the public. However, this system generated concern among federal, state, and local government agencies regarding whether they are receiving the necessary information to respond appropriately to heightened alerts and about the amount of additional costs protective measures entail. Congress requested that we review (1) the operations of the Homeland Security Advisory System, including the decision making process for changing the national threat level, notifications to federal, state, and local government agencies of changes in the threat level, and ongoing revisions to the system; (2) guidance and information that federal, state, and local government agencies reportedly used to determine any protective measures to implement when the threat level is raised to high--or code-orange--alert; (3) any protective measures these agencies implemented during code-orange alert periods; (4) any additional costs these agencies reported incurring to implement such measures; and (5) any threat advisory systems that federal, state, or local government agencies had in place before the creation of the Homeland Security Advisory System."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the American Council of Learned Societies for fiscal years ended September 30, 2005, 2004, and 2003. GAO found no reportable instances of noncompliance. The audit reports included the auditor's opinions that the financial statements of the corporation were presented fairly in accordance with U.S. generally accepted accounting principles."

Correspondence issued by the Government Accountability Office with an abstract that begins "Since combat operations began in Iraq and Afghanistan, U.S. forces have been subjected to frequent and deadly attacks from insurgents using various weapons such as improvised explosive devices (IED), mortars, rocket launchers, and increasingly lethal ballistic threats. Since 2003, to provide protection from ballistic threats, U.S. Central Command (CENTCOM), which is responsible for operations in Iraq and Afghanistan and other areas, has required service members and Department of Defense (DOD) civilians in its area of operations to be issued the Interceptor Body Armor (IBA) system. Used by all U.S. military service members and DOD civilians in the area of operations, the IBA consists of an outer tactical vest with ballistic inserts or plates that cover the front, back, and sides. As the ballistic threat has evolved, ballistic requirements have also changed. The vest currently provides protection from 9mm rounds, while the inserts provide protection against 7.62mm armor-piercing rounds. Additional protection can also be provided for the shoulder, throat, and groin areas. Concerns also regarding the level of protection and amount of IBA needed to protect U.S. forces have occurred in recent years, prompted by a number of reports, …

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Pearl Harbor Survivors Association for fiscal year ended September 30, 2005. GAO found no reportable instances of noncompliance. The audit report included the auditor's opinion that, with one exception, the financial statements of the corporation were presented fairly on a modified cash basis of accounting. The exception relates to the fact that the auditor was not present to observe the physical inventory count at September 30, 2005, and the corporation's records do not permit adequate retroactive tests of inventory balances."

Correspondence issued by the General Accounting Office with an abstract that begins "During GAO's fiscal year 2001 audit on accounting procedures and internal controls at the Congressional Award Foundation it found several internal control weaknesses related to processing transactions, maintaining supporting documents, and required reporting. Specifically, GAO found lack of approval for payments to vendors, inaccurate classification of transactions in the general ledger, lack of supporting documents for adjusting journal entries made by the foundation's accounting firm, incomplete personnel files, and lack of congressional reports for fiscal year 2000. The leadership of the Congressional Award Foundation changed near the end of the fiscal year 2001, and this transition may have contributed to the weaknesses found during GAO's audit. Since this transition, the foundation has established the executive position of the Director of Finance and Administration to oversee daily financial and administrative operations."

Correspondence issued by the Government Accountability Office with an abstract that begins "An effective clearance and settlement process is vital to the functioning of equities markets. When investors agree to trade an equity security, the purchaser promises to deliver cash to the seller and the seller promises to deliver the security to the purchaser. The process by which the seller receives payment and the buyer, the securities, is known as clearance and settlement. In the United States equities market, a centralized clearance and settlement system was established to reduce risks and increase efficiency in the market. As part of this system, trades in equities and other securities are typically cleared and settled through clearing agencies--self-regulatory organizations (SRO) that are required to register with and are subject to oversight by the Securities and Exchange Commission (SEC). Virtually all equities securities trades in the United States are cleared and settled through the National Securities Clearing Corporation (NSCC) and the Depository Trust Company (DTC), clearing agency subsidiaries of the Depository Trust and Clearing Corporation (DTCC). According to DTCC, 99.9 percent of daily transactions by dollar value clear and settle within the standard 3-day settlement period. In the remaining transactions, the seller failed to …

Correspondence issued by the General Accounting Office with an abstract that begins "This report responds to congressional questions about GAO's hearing on the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2001. This report discusses the (1) importance of disciplining managers and employees who engage in discriminatory practices, (2) settlement process, and (3) U.S. Postal Service's antidiscrimination programs."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO testified before Congress at the hearing A System Rued: Inspecting Food. This report responds to Congress's request that GAO provide answers to follow-up questions from the hearing."

Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a legislative requirement, GAO reviewed PricewaterhouseCoopers' (PwC) assessment of the performance, efficiency, and effectiveness of the Office of National Drug Control Policy's (ONDCP) operations, focusing on whether: (1) ONDCP performs its statutory and regulatory responsibilities in an efficient, effective, and results-oriented manner; (2) ONDCP optimizes human resources in fulfilling its primary objectives of policy, anti-drug program coordination, and compliance; and (3) ONDCP's internal control systems are strategically deployed to enhance business processes throughout the organization."

Correspondence issued by the General Accounting Office with an abstract that begins "The current federal peanut program, administered by the U.S. Department of Agriculture, is designed to support producers' incomes while ensuring an ample supply of domestically produced peanuts. To achieve these goals, the program controls the domestic supply of peanuts and guarantees producers a minimum price for their crops. This price substantially exceeds the price for peanuts in world markets. The program uses two mechanisms to control the domestic supply of peanuts--a national quota on the number of pounds that can be sold for edible consumption domestically and import restrictions. Only producers holding quota, either through ownership or rental of farmland, may sell their peanuts domestically as "quota" peanuts. Generally, all other production, referred to as "additional" peanuts, must be exported or crushed for oil or meal. The program protects producers' incomes through a two-tiered system that sets minimum support prices for quota and for additional peanuts. GAO and others have criticized the program because it provides substantial benefits to a relatively small number of producers who hold most of the quota, generally restricts nonquota holders from producing peanuts for the U.S. domestic market, and increases consumers' cost. In …

Correspondence issued by the General Accounting Office with an abstract that begins "On June 25, 2002, WorldCom, Inc., announced its intention to restate its financial statements for 2001 and the first quarter of 2002, reducing previously reported earnings by nearly $4 billion. WorldCom's announcement sparked a series of investigations by the Securities and Exchange Commission (SEC), the Department of Justice, and WorldCom's Board of Directors, among others, and eventually resulted in criminal charges against six of its corporate officials. WorldCom filed for bankruptcy protection in July 2002, and, over the next several months, announced restatements for additional periods. On July 31, 2003--over a year after WorldCom first announced its intention to restate its earnings--the General Services Administration (GSA) formally proposed the company for debarment, making the company ineligible for future government contracts. When WorldCom consented to a 3-year administrative agreement allowing GSA to continue monitoring the company's conduct, GSA terminated the debarment proceedings on January 7, 2004. House Report 108-243, which accompanied the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004, required us to review the actions GSA took between WorldCom's June 2002 announcement and GSA's July 2003 decision to propose the company for debarment. We agreed to (1) identify …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Office of Management and Budget (OMB) establishes for the Department of Defense (DOD) the price DOD will use for pricing crude oil when constructing its budget for upcoming fiscal years. DOD in turn uses OMB's price in establishing the standard price to be used for a barrel of fuel for budgeting purposes by DOD fuel customers such as the military services. Because of the volatility of world petroleum prices, the standard price for a barrel of fuel included in the President's annual budget request for DOD may be lower or higher than the actual price established by the world market at any point in time after DOD's budget request is submitted to the Congress. During the fiscal year, DOD pays for fuel at the actual market rate, which typically varies from the budgeted rate. As a result, if the actual price of crude oil increases above the price DOD charges its customers, more dollars are needed to pay for fuel than originally budgeted. If the actual price is lower than what DOD charges its customers, DOD has more dollars than needed. Additionally, if DOD responds to increases …

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Navy Club of the United States of America for fiscal year 2005. 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."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO assisted the Department of Transportation determine whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year 2000 was supported by the underlying records. GAO agreed to (1) perform detailed tests of transactions that represent the underlying basis of amounts distributed to HTF, (2) review the Internal Revenue Service's (IRS) quarterly HTF certifications, (3) review the Financial Management Service adjustments to HTF for FY 2000, (4) review the Office of Tax Analysis process for estimating amounts to be distributed to HTF for the fourth quarter of FY 2000, (5) compare net excise tax distributions to the HTF during FY 2000 and amounts reported in the financial statements prepared by the Bureau of Public Debt for HTF and HTF's financial statements, and (6) review key reconciliations of IRS records to Treasury records."

Correspondence issued by the General Accounting Office with an abstract that begins "Since 1998, the Internal Revenue Service (IRS) has been undergoing a major effort to modernize its overall structure. This report examines the status of the IRS' efforts to improve its research operations. GAO discusses the (1) steps IRS has taken to modernize its research operations since October 1, 2000, (2) areas of concern raised in past reports and studies of IRS research operations, and (3) status of IRS' efforts to address these concerns within the new research operations. GAO found that IRS has completed the creation of research units within each of its operational divisions to work together collaboratively and has continuously placed staff in key leadership positions. IRS is just beginning its efforts to address past areas of concern. Challenges involving research leadership, human capital, organizational infrastructure, systems and data management, customer focus, and performance measures must still be addressed."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Legion of Valor of the United States of America, Incorporated, for fiscal year 2000. GAO notes that the statement for the Legion of Valor Museum was not audited. The Legion of Valor Museum represents a significant portion of the financial activity for the Legion of Valor--more than half of the reported revenues and expenses. GAO's review disclosed no other reported instances of noncompliance."

Correspondence issued by the General Accounting Office with an abstract that begins "The Federal Civil Penalties Inflation Adjustment Act of 1990 required each federal agency to issue a regulation adjusting its covered maximum civil monetary penalties for inflation by October 23, 1996, and to make necessary adjustments at least once every 4 years thereafter. During its review, GAO determined that the National Science Foundation (NSF) had adjusted its maximum civil penalties more than the act permits. First, the NSF adjusted the civil penalties by 10 percent, which increased the penalty for an unintentional violation of the statue from $5,000 to $5,500 and increased the penalty for an intentional violation from $10,000 to $11,000. Second, the rule noted that for violations occurring after December 31, 1997, the maximum civil penalty would be $12,000 for unintentional violations and $23,000 for intentional violations. This second adjustment accounted for all of the changes in the Consumer Price Index between June 1978 and June 1995 that had not been accounted for by the initial 10 percent increase. NSF's second adjustment is inconsistent with the act's requirements."