Guidance issued by the General Accounting Office with an abstract that begins "This draft Executive Guide describes fundamental practices and procedures used in the private sector to achieve consistent and accurate physical counts of inventory and related property. It summarizes the principles that have been successfully implemented by companies recognized for their outstanding record of inventory management. It also explains and describes leading practices from which the federal government may be able to draw lessons and ideas. This guide applies to most forms of federal inventory, but some of the discussed practices may not be applicable to various types of bulk, natural resource, and nonturning inventories, such as the Department of Energy's strategic petroleum reserve."

Correspondence issued by the General Accounting Office with an abstract that begins "Efforts by the National Association of Insurance Commissioners (NAIC) to promote sound and uniform regulatory processes across the states are being put to the test as pressure builds from both the 1999 Gramm-Leach-Bliley Act and competitive forces for more efficient and streamlined insurance regulatory processes. One factor affecting the ultimate success of these efforts is the level of confidence state regulators will have in their counterparts' willingness and ability to adequately obtain, assess, and validate information provided by industry applicants in making regulatory decisions. Each state will be required to rely on the actions of regulators in other states to a greater degree than ever before. Whether regulators ultimately achieve uniformity in some areas or even attain reciprocity, continuing weaknesses in some states' regulatory framework can undermine the system. NAIC and state regulators believe that the development of more uniform and streamlined methods for obtaining licensing approval on individuals, products, and insurance companies in multiple states can enhance the ability of insurers to compete with other financial service entities while at the same time maintaining or improving the quality of insurance regulation. Both the timely completion and degree …

Correspondence issued by the General Accounting Office with an abstract that begins "This report provides information on hourly fees paid by the federal government to private attorneys for legal services in fiscal years 1999, 2000, and 2001. Relevant legal services include federal employee defense, litigative consultation, intellectual property consultation, and asset forfeiture-related services. For these types of services, GAO obtained information on hourly fees paid to private attorneys by the Department of Justice, the Administrative Office of the United States Courts, the National Aeronautics and Space Administration, and the Department of Veterans Affairs. GAO found that the hourly fees paid to private attorneys ranged from $125 to $357, depending on the agency and the type of legal service."

Other written product issued by the General Accounting Office with an abstract that begins "This journal of the International Organization of Supreme Audit Institutions (INTOSAI) includes articles regarding (1) the symposium of INTOSAI Development Initiative Training Specialists in Oslo, Norway from June 3-9, 2001; (2) the Arab Organization of Supreme Audit Institutions' (ARABOSAI) 8th Triennial General Assembly in Rabat, Morocco from April 24-27, 2001; (3) an audit profile of the Board of Audit and the Inspection of the Republic of Korea; and (4) activities within INTOSAI."

Correspondence issued by the General Accounting Office with an abstract that begins "Walter J. Poirier, a Peace Corps volunteer, was reportedly last seen in La Paz, Bolivia in February 2001. This report reviews (1) whether the Peace Corps failed to properly supervise Mr. Poirier's activities and (2) the actions taken by the Peace Corps and the U.S. Embassy in Bolivia when they learned that Mr. Poirier was missing. GAO found that Mr. Poirier failed to follow Peace Corps location and notification procedures. Although the Peace Corps Associate Director responsible for Mr. Poirier while he was in Bolivia knew that Mr. Poirier was not following these procedures, he took no steps to correct the situation and, as a result, lost track of Mr. Poirier. Furthermore, the Associate Director's failure to adequately monitor Mr. Poirier contributed to the U.S. Embassy's difficulties in locating him. Once it was determined that Mr. Poirier was missing, the U.S. Embassy, the Peace Corps, the Bolivian National Police, and fire and rescue teams in La Paz and throughout Bolivia conducted an extensive search. So far, Mr. Poirier has not been found."

Correspondence issued by the General Accounting Office with an abstract that begins "Congress created the State Children's Health Insurance Program (SCHIP) in 1997 to reduce the number of uninsured poor children whose families incomes are too high to qualify for Medicaid. Congress appropriated $40 billion over 10 years (fiscal years 1998 through 2007) for SCHIP. Each state's SCHIP allotment is available as a federal match based on state expenditures. Although the SCHIP statute generally targets children in families with incomes up to 200 percent of the federal poverty level, 13 states' programs cover children in families above 200 percent of the federal poverty level. This report provides information on (1) enrollment and federal expenditures for SCHIP and estimates of the number of and costs to enroll eligible unenrolled children and income-eligible pregnant women and (2) factors that may influence states' future expenditures for SCHIP and the availability of funding for any program expansion."

Correspondence issued by the General Accounting Office with an abstract that begins "The General Services Administration (GSA) awarded FTS2001 contracts to Sprint and MCI Worldcom to provide long distance telecommunications services to federal agencies. The federal government began the sizable and complex effort of switching from the existing FTS 2000 contracts to FTS2001 in June 1999. Several implementation issues have delayed this transition. One of these issues concerns the billing problems experienced by GSA and its contractors. GAO found that the billing problems often arose from changes in contracts and services. According GSA, these issues also arose from the differences between contractors' commercial billing practices and the government's practices. Because these billing problems were not promptly resolved, they had an adverse effect on the transition progress. GSA is taking steps to resolve current billing problems. It is tracking issues as they arise, and it is now trying to resolve 12 issues still outstanding with Sprint and MCI WorldCom, including the problem of commercial billing. In addition, GSA's Office of Inspector General recently began a review of the FTS2001 billing area, which might also identify ways to prevent future billing problems. Another issue that affected the transition progress concerns the databases …

Correspondence issued by the General Accounting Office with an abstract that begins "In March 2001, GAO issued a report (GAO-01-394) on the results of its audit of the Internal Revenue Service's (IRS) financial statements and on the effectiveness of its internal controls for fiscal year 2000. This report reviews additional matters identified during GAO's fiscal year 2000 audit regarding accounting procedures and internal controls that could be improved. GAO found that IRS had immaterial internal control issues that affected reporting. IRS (1) was unable to determine if its costs for reimbursable activities were accurate and whether it was recouping the costs of the goods or services it provided, (2) lacked procedures to properly record its working capital fund prepaid expenses, (3) accepted information from its contractors for inclusion in its year-end financial reporting without sufficient oversight or review, and (4) did not always follow standard procedures with respect to the transfer of funds between appropriations."

Correspondence issued by the General Accounting Office with an abstract that begins "The National Association of Counties contends that rural roads do not receive the level of funding needed to make these roads safer. Rural local roads, which account for more than half of the 8.2 million miles of roadways in the United States, had the highest rate of fatalities per vehicle mile traveled of all types of roadways--over six times that of urban interstates. This report reviews federal highway funding on a state-by-state basis for fiscal years 1992 through 2000 by individual federal highway program and type of roadway. GAO found that about 59 percent of all federal highway funds available to states during fiscal years 1992 through 2000 were spent on urban roads; the rest went to rural roads. Although only about 40 percent of all vehicle miles were traveled on rural roads, about 60 percent of the traffic accident fatalities in 1999 took place on rural roads. The four largest federal highway aid programs that provided funding were the Surface Transportation, National Highway System, Interstate Maintenance, and Bridge Replacement Programs."

Correspondence issued by the General Accounting Office with an abstract that begins "Congress, the Department of Defense, and GAO have expressed concerns about the readiness of U.S. forces to carry out combat missions. To ensure that Army units can fulfill their missions, the Army decided to staff all active units at 100 percent with personnel at authorized grades and skills over fiscal years 2000-2003. The initiative has had mixed results. On the positive side, some combat divisions that have been routinely staffed at less than authorized levels are now staffed in the aggregate at 100 percent. On the negative side, because of the effort to staff the combat divisions and armored regiments at 100 percent, the staffing levels of some nondivisional units, including early deploying combat support units, have decreased. According to Army officials, some management decisions are affecting the Army's ability to achieve the goals for the manning initiative. The Army's ability to fully achieve and sustain its manning initiative goals will depend on its future management decisions on funding, recruiting, and retention."

Correspondence issued by the General Accounting Office with an abstract that begins "The General Services Administration (GSA) began its Metropolitan Area Acquisition (MAA) program in 1997 to achieve immediate, substantial, and sustained price reductions for local voice and selected data communications services in selected metropolitan areas. As of June 2001, GSA has awarded 37 MAA contracts for 20 metropolitan areas. The transition from existing GSA contracts to the MAA contracts is still underway. This correspondence answers congressional questions about GAO's June 2001 testimony on MAA implementation issues."

A statement of record issued by the General Accounting Office with an abstract that begins "Advances in the use of information technology (IT) and the Internet continue to change the way that federal agencies communicate, use and disseminate information, deliver services, and do business. Electronic government (e-government) refers to the use of technology, particularly web-based Internet applications, to enhance the access to and delivery of government information and service to citizens, business partners, employees, other agencies, and entities. This testimony discusses the status of federal e-government initiatives, the key challenges facing the government in implementing these initiatives, and the chief information officer (CIO) approach proposed by the E-Government Act of 2001. GAO found that federal agencies have launched an array of e-government applications, including using the Internet to collect and disseminate information and forms; buy goods and services; submit bids and proposals; and apply for licenses, grants, and benefits. Many of these initiatives have the potential to increase the speed and efficiency with which citizens and businesses interact with the government. However, the government faces several challenges in transitioning to an electronic environment. Among other issues, the government must minimize the risks associated with the dissemination of personal information and …

Correspondence issued by the General Accounting Office with an abstract that begins "In fiscal year 1999, the federal government provided housing assistance to about 5.2 million renter households at a cost of about $28.7 billion in outlays and tax credits. Of this amount, more than $15 billion supported housing units developed under production programs that no longer receive appropriations to produce new or rehabilitated units. This report focuses on six programs that continue to increase the number of households assisted by the federal government: the housing voucher program, which is the largest source of federal funds for housing assistance, and five production programs, that now receive federal funds to produce new or rehabilitate units. GAO found that production programs are more expensive than housing vouchers. GAO estimates that the total per-unit costs for housing production programs are from 32 to 59 percent greater than for housing vouchers in the first year and from 12 to 27 percent greater over 30 years. If costs were the only consideration, the production programs reviewed in this report should have been replaced with vouchers. However, in many markets, production programs are the only sources of new affordable rental units, and use restrictions will keep …

Testimony issued by the General Accounting Office with an abstract that begins "GAO and the Department of Education's Office of Inspector General have issued many reports in recent years on the Department's financial management problems, including internal control weaknesses that put the Department at risk for waste, fraud, abuse, and mismanagement. In an April 2001 assessment of the internal control over Education's payment processes and the associated risks for improper payments, GAO identified four broad categories of internal control weaknesses: poor segregation of duties, lack of supervisory review, inadequate audit trails, and inadequate computer systems' applications controls. This testimony discusses how these weaknesses make Education vulnerable to improper payments in grant and loan payments, third party drafts, and government purchase card purchases. GAO found that Education's student aid application processing system for grants and loans lacks an automated edit check that would identify potentially improper payments from students who were much older than expected, a single social security number associated with two or more dates of birth, grants to recipients in excess of statutory limits, and searches for invalid social security numbers. GAO also found problems with Education's third party draft system. Specifically, Education (1) circumvented a system's application control …

Testimony issued by the General Accounting Office with an abstract that begins "The Indian Self-Determination and Education Assistance Act of 1975 encourages tribes to participate in and manage programs that for years had been administered on their behalf by the Department of Health and Human Services (HHS) and the Department of the Interior. The act authorizes tribes to take over the administration of such programs through contractual arrangements with the agencies that previously ran them: HHS' Indian Health Service and Interior's Bureau of Indian Affairs. For the Indian Health Service, the programs include mental health, dental care, hospitals and clinics. For the Bureau of Indian Affairs, the programs that can be contracted by tribes include law enforcement, education, and social services. Under the first 15 years of the Self-Determination Act, tribal contractors generally assumed liability for accidents or torts (civil wrongdoings) caused by their employees. However, in 1990, the federal government permanently assumed this liability when Congress extended the Federal Tort Claims Act (FTCA) coverage to tribal contractors under the Self-Determination Act. Originally enacted in 1946, FTCA established a process by which individuals injured by federal employees could seek compensation from the federal government. As a result of extending this …

Testimony issued by the General Accounting Office with an abstract that begins "The Trade Adjustment Assistance (TAA) Program and the North American Free Trade Agreement Transitional Adjustment Assistance (NAFTA-TAA) Program are designed to help dislocated workers, communities, and firms adjust to the rapid economic changes that characterize the globalization of national economies. Although globalization has increased the importance of technology and service sector jobs, it has also resulted in the loss of many manufacturing jobs as companies that cannot compete with lower-priced imports go out of business or relocate abroad. The federal government recognizes that although the benefits of increased trade are widely dispersed across the economy, the costs of worker dislocation effects are more localized. This has heightened concerns about the efficacy of federal trade adjustment assistance efforts. This testimony discusses (1) the nature of trade impacts on communities and the use of benefits and services under TAA and the NAFTA-TAA programs, (2) the structural problems that impede effective delivery of those services and benefits, and (3) the longer-term challenges facing trade-impacted communities."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses internal controls weaknesses that left two Navy units in San Diego, California, vulnerable to purchase card fraud and abuse. GAO found a proliferation of purchase cards at the two units in San Diego--the Space and Naval Warfare Systems Command and the Navy Public Works. In the end, more than 1,700 cardholders essentially had the authority to make their own purchase decisions. A serious breakdown in internal controls over the receipt of government property and the certification of monthly statements, coupled with flawed or nonexistent policies and procedures and the failure of Navy employees to adhere to valid policies and procedures, led to (1) the loss, theft, and misuse of government property; (2) the potential abuse of purchase cards; and (3) payments of potentially fraudulent charges. Five fraud cases have already been identified, and the government remains extremely vulnerable to fraud, waste, and abuse arising from the purchase card program at the two Navy units. This testimony summarized the November report, GAO-02-32."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses GAO's three-stage approach for addressing the federal government's human capital challenges. First, agencies must take all administrative steps available to them under current laws and regulations to manage their people for results. While much of what agencies need to accomplish these steps is already available to them, they will need the sustained commitment from top management and the support from both the Office of Management and Budget and the Office of Personnel Management to do so. Second, the Administration and Congress should pursue selected legislative opportunities to put new tools and flexibilities in place that will help agencies attract, motivate, and retain employees--both overall and, especially, in connection with critical occupations. Third, all interested parties should work together to determine the nature and extent of more comprehensive human capital (or civil service) reforms that should be enacted over time. These reforms should include placing greater emphasis on skills, knowledge, and performance in connection with federal employment and compensation decisions, rather than the passage of time and rate of inflation, as is often the case today."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the budget process established by the Budget Enforcement Act, which will expire in fiscal year 2002. Because the goal of achieving zero deficits has been achieved, the focus of the budget process has shifted to to the allocation of surpluses among debt reduction, spending increases, and tax cuts. The budget process should be designed to avoid what has been described as the year-end "train wreck." A year-end "train wreck" results from a failure to reach agreement--or at least a compromise acceptable to all parties--earlier in the year. Although it is possible that early agreement on some broad parameters could facilitate a smoother process, it is not clear that such an agreement will always prevent gridlock--it may just come earlier. Two ideas that have been proposed to avert the year-end disruption caused by an inability to reach agreement on funding the government include joint budget resolutions and biennial budgeting. In discussing alternatives for improving the budget process, there is a broad consensus among observers and budget analysts that the spending constraints established by the act are necessary even with the advent of actual and projected surpluses. …

Testimony issued by the General Accounting Office with an abstract that begins "Although the Department of Veterans Affairs (VA) has made significant progress establishing a national formulary that has generally met with acceptance by prescribers and patients, VA oversight has not fully ensured standardization of its drug benefit nationwide. The three medical centers GAO visited did not comply with the national formulary. Specifically, two of the three medical centers omitted more than 140 required national formulary drugs, and all three facilities inappropriately modified the national formulary list of required drugs for certain drug classes by adding or omitting some drugs. In addition, as VA policy allows, Veterans Integrated Service Networks (VISN) added drugs to supplement the national formulary ranging from five drugs at one VISN to 63 drugs at another. However, VA lacked criteria for determining the appropriateness of the actions networks took to add these drugs. In addition to problems standardizing the national formulary, GAO identified weaknesses in the nonformulary approval process. Although the national formulary directive requires certain criteria for approving nonformulary drugs, it does not prescribe a specific nonformulary approval process. As a result, the processes health care providers must follow to obtain nonformulary drugs differ among …

Testimony issued by the General Accounting Office with an abstract that begins "Management of Medicare has come under increasing scrutiny. The Health Care Financing Administration (HCFA) has had mixed success running the program. The agency has developed payment methods that have contained cost growth, and HCFA has paid fee-for-service claims quickly and at low administrative cost. However, HCFA has had difficulty ensuring that it paid claims appropriately. In addition, Medicare claims administration contractors have done a poor job of communicating with Medicare providers. HCFA has taken important steps to address some of these shortcomings, including strengthening payment safeguards, but several factors have hampered its efforts. Despite its growing responsibilities, HCFA suffers from staffing shortages. The agency also continues to rely on archaic computer systems. At the same time, HCFA has faltered in its attempts to adopt a results-based approach to agency management. Constraints on the agency's contracting authority have limited its use of full and open competition to select claims administration contractors and assign administrative tasks. Rising expectations among Medicare beneficiaries and providers are putting pressure on the Centers for Medicare and Medicaid Services to modernize and improve agency operations. Such improvements will require HCFA to begin a performance-based management …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the federal government's strategic human capital management challenges, particularly in the information technology (IT) area. No management issue facing federal agencies could be more critical to the nation than their approach to attracting, retaining, and motivating people. Having enough people with the right mix of knowledge and skills will make the difference between success and failure. This is especially true in the information technology area, where widespread shortfalls in human capital have undermined agency and program performance. The federal government today faces pervasive human capital challenges that are eroding the ability of many agencies--and threatening the ability of others--to economically, efficiently, and effectively carry out their missions. How successfully the federal government acquires and uses information technology will depend on its ability to build, prepare, and manage its information technology workforce. To address the federal government's human capital challenges as a whole, GAO believes that (1) agencies must take all administrative steps available to them under current laws and regulations to manage their people for results; (2) the Administration and Congress should pursue opportunities to put new tools and flexibilities in place that will help …

Testimony issued by the General Accounting Office with an abstract that begins "The transportation sector accounts for roughly two thirds of the nation's petroleum consumption and one quarter of the total U.S. energy use. Several steps have been taken during the last 25 years either to reduce petroleum consumption or to increase fuel diversity in the transportation sector, including tax incentives, mandates for alternative fuel vehicles, and laws to promote automobile fuel efficiency. This testimony discusses the extent of alternative fuel vehicle acquisition and fuel use, some of the barriers inhibiting greater use of alternative fuels and vehicles, and the federal tax incentives used to promote the use of alternative motor fuels and vehicles. So far, alternative fuels and vehicles have not made much of a dent in the conventional fuel and vehicle dominance of the U.S. vehicle fleet, primarily because of fundamental economic obstacles, such as the relatively low price of oil, insufficient availability of alternative fuel refueling infrastructure, and the relatively high cost of some alternative fuel vehicles. As GAO reported in February 2000 (RCED-00-59), any significant increase in the use of alternative motor fuels and vehicles by the general public will depend on the following two factors: …

Testimony issued by the General Accounting Office with an abstract that begins "Congress faces critical decisions about the future of the National Railroad Passenger Corporation (Amtrak) and intercity passenger rail. In GAO's view, the goal of a national system, much like Amtrak's current system, and the goal of operational self-sufficiency appear to be incompatible. In fact, Amtrak was created because other railroads were unable to profitably provide passenger service. In addition, Amtrak needs more capital funding than has been historically provided in order to operate a safe, reliable system that can attract and retain customers. Developing a high-speed rail system is also costly, requiring additional tens of billions of dollars. If intercity passenger rail is to have a future in the nation's transportation system, Congress needs realistic assessments of the expected public benefits and the resulting costs of these investments as compared with investments in other modes of transportation. Such analyses would provide sound bases for congressional action in defining the national goals that will be pursued, the extent that Amtrak and other intercity passenger rail systems can contribute to meeting these goals, and whether federal and state money would be available to sustain such systems over the long term."