Correspondence issued by the General Accounting Office with an abstract that begins "GAO worked with the Department of Defense (DOD) to develop and report a reliable estimate for the postemployment health care benefits due to military retirees, their dependents, and survivors. To accomplish this, the DOD Office of Actuary has contracted with a private sector firm of actuaries and consultants, Milliman & Robertson. This report provides a non-technical summary of the contractor's findings and includes GAO's recommendation that the changes discussed in the reports be implemented. GAO found that although the analysis prepared by the Office of Actuary does a good job of identifying the factors that affect the military postretirement health care benefits liability and of evaluating the possible impact of those factors, issues still need to be addressed. An additional break out of information is needed in some areas in order for the Office of Actuary to properly analyze their impact on liability. The methodology used was generally reasonable, but some deficiencies still remained."

Correspondence issued by the General Accounting Office with an abstract that begins "This report compares the drug prices paid by the Department of Defense (DOD) and the Department of Veterans Affairs (VA) with the prices paid by the Health Care Financing Administration (HCFA). On average, for the sample of drug prices analyzed by GAO, HCFA's prices were higher than those of either DOD or VA."

A letter report issued by the General Accounting Office with an abstract that begins "GAO audited the financial statements of the District of Columbia's Highway Trust Fund for fiscal years 1999 and 1998. GAO found that the District did not maintain effective internal control over financial reporting related to its Highway Trust Fund as of September 30, 1999. Material weaknesses affected accounting for expenditures and computer system general controls."

Correspondence issued by the General Accounting Office with an abstract that begins "Concerns have been raised about the Health Care Financing Administration's (HCFA) decision to extend a contract with an accounting firm that has been implicated in major fraud. KPMG's contract with HCFA included annual options to extend performance that could be exercised at HCFA's will. Although information on the fraud investigation was available to HCFA staff at various levels, the information was not used to make reasoned contracting decisions. If HCFA had considered the information and documented its decision to extend KPMG's contract, it could have minimized concerns over the appropriateness of its decision."

Correspondence issued by the General Accounting Office with an abstract that begins "In a fiscal year 1999 accountability report to Congress, the Health Care Financing Administration (HCFA) made several clerical errors in the accounting of Medicare trust funds, which caused the Hospital Insurance (HI) Trust Fund to be overinvested by about $14 billion and the Supplementary Medical Insurance (SMI) Trust Fund to be underinvested by about $18 billion. Because of these errors, the HI Trust Fund earned excess interest and the SMI Trust Fund lost interest. GAO found that these errors went undetected for a year because of internal control weaknesses. Inadequate training and supervision and ineffective reconciliations were key factors that allowed the errors to go undetected. HCFA took corrective action, however, as soon as the errors were discovered."

A letter report issued by the General Accounting Office with an abstract that begins "The number of Tuberculosis (TB) and multidrug-resistant TB cases in the United States has declined steadily since 1992. However, continued vigilance is needed to further reduce TB rates. A resurgence of the disease in the late 1980s and early 1990s was linked to a relaxation of TB control efforts. Data from the Centers for Disease Control and Prevention and the World Health Organization suggest that the presence of TB as a major public health problem in other countries has likely been a key contributor to the number of new cases in the United States. As a result, the United States has undertaken several initiatives to control global TB, including providing funding and technical assistance for TB control programs."

A letter report issued by the General Accounting Office with an abstract that begins "This report discusses possible money laundering by U.S. corporations formed by Russian entities. It is easy for foreign entities to hide their identities while forming shell corporations that can be used for money laundering. GAO investigated the following two Delaware corporations that are suspected of money laundering: Euro-American Corporate Services, Inc. and International Business Creations. Suspicious banking activity involved correspondent bank accounts and wire transfers of funds from Eastern European banks through U.S. banks to other Eastern European banks. Two U.S. banks, Citibank of New York and Commercial Bank of San Francisco, violated their customer policies by failing to close the accounts of clients who did not comply with the bank's requirement to appear at the bank in person within 30 days of opening an account. These banks facilitated the transfer of about $1 billion from Eastern Europe, through U.S. banks, and back to Eastern Europe by corporations formed for Russian brokers. It is possible that these transfers were used to launder money. GAO referred the matter to appropriate law enforcement authorities."

A letter report issued by the General Accounting Office with an abstract that begins "The failure by the District of Columbia's Commission on Mental Health Services to provide community-based mental health services, as required by a 1974 court ruling, prompted a judge to appoint a receiver to carry out the court's order. Control of mental health services is scheduled to be returned to the Commission in April 2001. Although the transitional receiver is developing a plan to enhance the Commission's ability to comply with the court ruling, many challenges must be overcome. For example, the District must change its hospital-based system of care to one that considers the needs of the individual within a framework of a community-based provider responsible for all aspects of mental health and supportive services needs. Many interested mental health providers and patient care advocacy groups believe that a solid foundation is being laid for community-based mental health services. However, success will depend on the Commission's ability to improve management processes and coordinate with other agencies that provide care to the mentally ill."

A letter report issued by the General Accounting Office with an abstract that begins "The Veterans Health Administration, the Department of Transportation, and the Office of Student Financial Assistance have begun to use results- oriented performance agreements to align agency expectations with organizational goals. Each agency developed and implemented agreements that reflected their specific organizational priorities, structures, and cultures. GAO identified the following five common emerging benefits: (1) better alignment of results-oriented goals with daily operations, (2) collaboration across organizational boundaries, (3) opportunities to use performance information to improve federal programs, (4) results-oriented basis for individual accountability, and (5) continuity of program goals during leadership transitions. The three agencies' experiences show that effective implementation of performance agreements can encourage communication about progress towards agency goals. Their experiences also indicate that performance information should be provided to executives and managers in a timely fashion and in a useful format."

A letter report issued by the General Accounting Office with an abstract that begins "Members of Congress periodically have expressed interest in converting the federal budget process from an annual to a biennial cycle. Congress believes that the time spent on these activities has come at the expense of congressional oversight and authorization responsibilities. To better understand states' experiences with the biennial budget cycle, GAO studied three states: Arizona, Ohio, and Connecticut. GAO found that the states' reasons for changing their budget cycles varied. For example, Arizona adopted a biennial cycle to increase legislative oversight and reduce time spent on the budget. Connecticut adopted it as part of a fiscal reform effort. To execute a biennial budget successfully, the states' experiences suggest that the legislative and executive branches must agree on how the off-year budget process will work. Different approaches to managing the off-year budget have been developed by states, including establishing formal guidelines for off-year budget changes and relying on leadership control. Efforts to increase legislative oversight in the off-year by converting to a biennial budget process may be difficult. Ohio and Connecticut officials said they that have not increased legislative oversight in the off-year, and Arizona officials said …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the financial statement audit reports for the Disabled American Veterans' for 1999. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the National Safety Council for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the National Ski Patrol System for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the National Tropical Botanical Garden's for 1998 and 1997. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Naval Sea Cadet Corps for 1998 and 1997. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Navy Club of the United States of America for fiscal year 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Paralyzed Veterans of America's for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Reserve Officers Association's for fiscal year 1999. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Women's Army Corps Veterans' Association for fiscal year 1999. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Jewish War Veterans of the United States of America, Incorporated, for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the National Federation of Music Clubs for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included 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 reviewed the financial statement audit reports for the Daughters of the American Revolution for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance with the requirements of the law, and the audit report included the auditor's opinion that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

A letter report issued by the General Accounting Office with an abstract that begins "As the steward of taxpayer dollars, the federal government is accountable for how its agencies and grantees spend funds. It is also responsible for safeguardingagainst improper payments, which include payments that should not have been madeor were made for incorrect amounts irrespective of whether the agency had effective controls in place. Reported estimates of improper payments total billions ofdollars annually. With billions of dollars at risk, agencies need to vigilantly safeguard those resources entrusted to them and assign a high priority to reducing fraud, waste, and abuse. In their fiscal year 1999 financial statement, 12federal agencies reported improper payments totalling $20.7 billion. A first step for some agencies will be to assess programs at risk and develope ways to identify, estimate, and report the nature and extent of improper payments annually. Without this fundamental knowledge, agencies will not be fully informed about the magnitude, trends, and types of payment errors occurring within their programs. Furthermore, most agencies will not be able to make informed cost-benefit decisions about strengthening their internal controls to minimize future improper payments or effectively develop goals and strategies to reduce them. In …

Correspondence issued by the General Accounting Office with an abstract that begins "The Navy improved the reporting of its general fund inventory on its fiscal year 1999 financial statement. The Navy properly accounted for equipment and supplies that were not reported in the prior year's statement, which included inventories held by contractors and the Coast Guard. Improvements in the Navy's financial reporting, however, are still needed. GAO found many errors and omissions that continue to affect the accuracy of the Navy's financial reporting. This report summarizes the issues that the Navy needs to address as it compiles its fiscal year 2000 financial information."