Other written product issued by the General Accounting Office with an abstract that begins "The Federal Accounting Standards Advisory Board published an exposure draft of a proposed statement of federal accounting standards. This standard amends the Statement of Federal Financial Accounting Standards 7 by deleting a requirement regarding an element of reconciling budgetary and financial accounting information."

Other written product issued by the General Accounting Office with an abstract that begins "This annual performance and accountability report assesses what GAO was able to accomplish in fiscal year 2000 and describes the agency's plans for continued progress through fiscal year 2002. In the last year, GAO's work resulted in a number of significant improvements to government that will benefit all Americans. By acting on GAO's recommendations, the government improved public health and safety, strengthened national security, better protected consumers, and improved its financial management and information systems. GAO also provided information critical to the public debates on Social Security and Medicare reform and called attention to looming problems, such as the security of government computer systems and the human capital crisis facing the federal workforce. Taxpayers benefited from the near-record $23 billion in savings identified through GAO's work--a $61 return on every dollar invested in GAO. GAO realigned its organization to better meet its goals and objectives, and it began to institute new ways of doing business. GAO also gained new legislative authorities that will help it to address its human capital requirements and help ensure that GAO remains prepared to meet Congress' future needs. The nation's leaders …

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 role of integral auditing in promoting a new approach to governmental auditing processes, (2) adjusting external audits to facilitate results-oriented governance, (3) Nigeria's governmental auditing systems, and (4) activities within INTOSAI."

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 role of integral auditing in promoting a new approach to governmental auditing processes, (2) adjusting external audits to facilitate results-oriented governance, (3) Nigeria's governmental auditing systems, and (4) activities within INTOSAI."

Other written product issued by the General Accounting Office with an abstract that begins "GAO provided information on the Joint Financial Management Improvement Program's current financial management initiatives, activities, and practices."

Other written product issued by the General Accounting Office with an abstract that begins "GAO published a document on establishing core competencies for project managers. This document identifies competencies in three areas (1) financial management, (2) human resources, and (3) technical skills."

Other written product issued by the General Accounting Office with an abstract that begins "This study focuses on privacy issues related to record-linkage--a computer-based process that combines multiple sources of existing data. Federally sponsored linkage projects conducted for research and statistical purposes have many potential benefits, such as informing policy debates; tracking program outcomes; helping local government or business planning; or contributing knowledge that, in some cases, might help millions of people. Despite these benefits, concerns about personal privacy are relevant because linkages often involve data on identifiable persons. GAO describes (1) how record linkage can create new research and statistical information, (2) why linkage heightens certain privacy issues, and (3) how data stewardship might be enhanced."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the management challenges that continue to face the Internal Revenue Service (IRS). These challenges include (1) computer security, (2) financial management, (3) organizational modernization and performance management, and (4) business systems modernization management. IRS must make progress in all four areas to improve the agency's efficiency and to significantly improve service to taxpayers. IRS has taken important steps in all of these areas, but significant obstacles remain. In the area of computer security, IRS corrected many previously reported weaknesses and is launching a computer security management program that should help it manage its risks in this area. However, serious weaknesses persist that could impair IRS' ability to perform vital functions. In financial management, IRS was able to prepare financial statements this year that received an unqualified opinion. However, this achievement came through the use of substantial, costly, and time-consuming processes to work around IRS' system deficiencies. IRS has reorganized into four taxpayer-focused divisions and has developed a performance management approach consistent with management principles contained in the IRS Restructuring and Reform Act and the Government Performance and Results Act. However, much work remains to be …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses internal control weaknesses in the Department of Education's payment process. GAO identified internal control weaknesses that sharply increase Education's vulnerability to improper payments. GAO classified the weaknesses into the following four broad categories: (1) poor segregation of duties, (2) lack of supervisory review, (3) inadequate audit trails, and (4) inadequate computer systems' application controls. GAO found that some individuals at Education can control the entire payment process for some transactions. As a result, individuals could be using agency funds for personal expenses. GAO also found that Education has serious deficiencies in its process for reviewing and approving purchases made with government credit cards. During fiscal year 2000, Education employees made more than $8 million in purchases using their government purchase cards. Without proper review and approval of these expenditures, improper use of the government charge cards may go undetected. Regarding audit trails, Education lacks adequate control over changes made to sensitive information for certain types of payments, including contracting and third party drafts. Finally, weaknesses in Education's information systems controls increases the risk of unauthorized access or disruption in services and make Education's sensitive grant …

Testimony issued by the General Accounting Office with an abstract that begins "The rapid pace of technological change and innovation has offered unprecedented opportunities for both the government and commercial sectors to use information technology (IT) to improve performance, reduce costs, and enhance service. A range of issues have emerged about how to best manage and integrate complex information technologies and management processes so that they are aligned with mission goals, strategies, and objectives. Although IT can help the government provide services more efficiently and at lower costs, many challenges must be overcome to increase the government's ability to use the information resources at its disposal effectively, securely, and with the best service to the American people. A central focal point such as a federal Chief Information Officer (CIO) can help ensure that attention to IT issues is sustained and increase the likelihood that progress is charted and achieved. Although GAO's research has found that there is no one right way to establish a CIO position, critical success factors GAO found in leading organizations, such as aligning the position for value creation, are extremely important considerations. Finally, the experiences of statewide CIOs offer a rich set of experiences to draw …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) the status of the 2001 tax filing season, (2) the status of the Internal Revenue Service's (IRS) business systems modernization effort, and (3) the security of IRS' electronic filing system. GAO found that although the 2001 filing season appears to be running smoothly, some matters require further attention. For example, IRS has had problems with the personal identification number assigned to electronic filers. Although data indicate that taxpayers are having an easier time reaching IRS to ask questions, concerns persist about the productivity of its telephone assistors. With respect to business systems modernization, GAO has long held that IRS needs to establish fundamental modernization management controls before it begins to build and implement modernized systems. IRS has made some progress in this area, but it is still not where it needs to be. GAO is concerned that IRS is allowing its system acquisition projects to get ahead of its capabilities for managing them. Lastly, GAO's review of IRS' electronic filing systems last year showed that IRS had ineffective controls to ensure the security of those systems and electronically-transmitted taxpayer data. IRS moved promptly to …

Testimony issued by the General Accounting Office with an abstract that begins "GAO discusses the progress the National Nuclear Security Administration (NNSA) has made in implementing title 32 of the National Defense Authorization Act for Fiscal Year 2000. Title 32 established NNSA as a semiautonomous agency within the Department of Energy (DOE) with responsibility for the nation's nuclear weapons, nonproliferation, and naval reactors programs. GAO found that the agency is making progress in implementing changes to its organization; planning, programming, and budgeting functions; and use of personnel authority. However, it will be several months before real, tangible evidence of these changes will be seen. And it may be several years before these changes are fully implemented and can be definitively assessed. Important work remains to be done in (1) establishing an organization that clearly defines the roles and responsibilities of headquarters and field staff, moves program management officials as close to the action as possible, and establishes clear lines of authority between NNSA and its contractors; (2) implementing an integrated planning, programming, and budgeting system that can deliver information to decision makers and Congress in time for the 2003 budget deliberations; and (3) overcoming obstacles to using NNSA's Expected Service …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the challenges facing the U.S. Postal Service. Overall the Service faces major challenges that collectively call for a structural transformation if it is to remain viable in the 21st century. The Service's financial outlook has worsened, and it is not clear how the Service will address its mounting financial difficulties and other challenges. These challenges include (1) reduced net income, (2) increased debt, (3) increased competition, (3) management-labor relations problems, and (4) statutory restrictions. Because of the Service's rapidly deteriorating financial situation, GAO is placing the Service on its high-risk list. GAO believes that several actions need to be taken to address the Service's continued problems. Such actions include (1) developing a comprehensive plan to address the financial, operational, and human capital challenges; (2) providing quarterly financial reports to Congress and the public; and (3) identifying, in conjunction with GAO and other stakeholders, improvement options that will cut costs and improve productivity."

Testimony issued by the General Accounting Office with an abstract that begins "Although the Department of Veterans' Affairs (VA) has taken actions to improve many of its information technology (IT) management processes, it continues to face substantive challenges that, if left incomplete, could disrupt existing progress and threaten the viability of its existing and future IT spending. VA has yet to fill its full-time department chief information officer vacancy since the position's creation three years ago. In addition, sustained leadership and commitment are necessary to improve VA's departmentwide computer security program, especially as VA begins to move some of its information and services to veterans onto the Internet. And although VA has done a good job of posting privacy and security notices on its websites, it should focus more attention on complying with Office of Management and Budget policies prohibiting the use of persistent cookies. Furthermore, until VA defines and begins to implement a departmentwide, enterprise architecture, it will continue to encounter costly difficulties in achieving its "One VA" vision. Finally, VA faces important decisions on making greater use of the Decision Support System and on the continued development and wide-scale implementation of the compensation and pension replacement project. Continued …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses GAO's analysis of security audits at federal agencies. The widespread interconnectivity of computers poses significant risks to federal computer systems and the operations and the infrastructures they support. GAO's evaluations show that federal computer systems are riddled with weaknesses that continue to put critical operations and assets at risk. GAO found weaknesses in following six areas: (1) security program management, (2) access controls, (3) software development and change controls, (4) segregation of duties, (5) operating systems controls, and (6) service continuity. Weaknesses in these areas place a broad range of critical operations and assets at risk for fraud, misuse, and disruption. Federal agencies have tried to address these problems, and many have good remedial efforts underway. However, these efforts will not be fully effective and lasting unless they are supported by a strong agencywide security management framework. Establishing such a management framework requires that agencies take a comprehensive approach that involves both (1) senior agency program managers who understand which aspects of their missions are the most critical and sensitive and (2) technical experts who know the agencies' systems and can suggest appropriate technical security …

A letter report issued by the General Accounting Office with an abstract that begins "To determine the number and type of munitions needed, the military annually evaluates its munition requirements using a multiphase analytical process. The Department of Defense (DOD) is working to ensure that the requirements determination process yields accurate numbers and the types of munitions needed to defeat threats specified in the Defense Planning Guidance. Although DOD has made progress and has identified specific areas still requiring attention, there is no clear plan with time frames for resolving key issues. Some of these issues have only been partially completed and others are in the early stages of evolution. Specifically, target templates have not been completed and munitions effectiveness data has not been updated, nor have decisions been made on more detailed warfighting scenarios and the ranking of scenarios. Consequently, the reliability of the services' munitions requirements remain uncertain and could affect munitions planning, programming, budgeting, and industrial production base decisions. Until these issues are resolved and a revised Capabilities-Based Management Requirements instruction is issued, the accuracy of the munitions requirements will remain uncertain."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) the relationship between Internal Revenue Service (IRS) audits of taxpayers and other programs IRS uses to ensure that taxpayers' returns are accurate and (2) how IRS is managing the increased workload in two of its programs--offers-in-compromise and innocent spouse claims. IRS audited more than 600,000 taxpayers in fiscal year 2000, either face-to-face or through the mail. IRS has several programs that use computerized screening procedures to review all tax returns to detect certain types of errors. These programs result in millions of contacts with taxpayers to inform them of adjustments IRS made to their liabilities, seek explanations for errors IRS believes were made, or ask taxpayers to check whether they erred on their returns. The programs vary in their similarity to audits; some of the programs are most similar to audits that IRS conducts through the mail. The programs that IRS uses to detect errors on tax returns rely completely on information that taxpayers report on the tax returns and that IRS receives from third parties. Therefore, audits remain an important tax enforcement tool. Several factors suggest that IRS may be gaining better management …

A letter report issued by the General Accounting Office with an abstract that begins "The Environmental Protection Agency (EPA) performs limited oversight of states' processes for verifying the accuracy of large industrial facilities' emissions reports. EPA's data show that most emissions determinations from large sources are based on generic emissions factors. Although EPA allows facilities to estimate their emissions in this manner, EPA officials generally consider direct methods to be more reliable. The accuracy of these reports is important because they influence (1) the financing of states' regulatory programs through fees and (2) the development of emissions inventories, which, in turn, help regulators to develop control strategies and establish permit limits. Furthermore, steps taken to assess the accuracy of these reports, such as more thoroughly reviewing the supporting information, could improve compliance with Clean Air Act requirements. For example, a more thorough review of the information underlying a facility's emission reports, or a more systematic comparison of these reports over time, could identify increased emissions. Such indications could, in turn, trigger a review of compliance with new source review requirements, an area in which EPA found widespread noncompliance in four industries. In the four states that GAO reviewed, the states …

A letter report issued by the General Accounting Office with an abstract that begins "Available information indicates that the Defense Department lacks an accurate inventory of historic properties. The inventory of historic military properties should include all properties that are listed on or eligible for the National Register of Historic Places. A complete inventory would ensure that the services are properly recording real property transactions, ensure the accuracy of reporting on real property required to be included in annual financial statements, and provide an improved basis for long-term planning for facility maintenance and repair. At the same time, composite data on the costs of maintaining historic structures are not readily available."

A letter report issued by the General Accounting Office with an abstract that begins "The Environmental Protection Agency (EPA) provides millions of dollars to grantees to conduct research, demonstrate pollution control techniques, and perform other activities. Oversight of this large pool of grantees has proven to be difficult. EPA's post-award grant management policy provides few guarantees that unallowable costs for nonprofit grantees will be identified. Identifying such costs is important for effective oversight of EPA's nonprofit grantees. EPA's on-site grantee visits could provide agency officials with a valuable opportunity to test for unallowable costs while they are testing the adequacy of the grantees' financial and administrative systems. Although more time may be required to test for unallowable costs and additional training may be required for regional personnel, the tests would provide greater assurance that grant funds are spent in accordance with Office of Management and Budget (OMB) requirements. The single audit is an important tool for ensuring that federal funds are properly spent. EPA has taken several steps to identify grantees that need a single audit, but it is difficult to identify them definitively because information on total federal expenditures by each grantee is unavailable. As a result, EPA is …

Correspondence issued by the General Accounting Office with an abstract that begins "The National Commission on Restructuring the Internal Revenue Service (IRS) recommended in 1997 that IRS simplify the tax law. The Commission reported a connection between the complexity of the Internal Revenue Code and the difficulty of administering it and taxpayer frustration with the tax system. It reported that such complexity can lead to inadvertent noncompliance, increase costs to taxpayers, and complicate tax collection. The IRS Restructuring and Reform Act of 1998 requires the Joint Committee on Taxation to report to Congress on the overall state of the federal tax system and on proposals to simplify it. This report provides information to help the Joint Committee with its study. Specifically, GAO provides information on (1) the scope and size of the code, the number of Congressionally-mandated studies of the tax system, and the amount of tax guidance and regulations issued by IRS; (2) the number and scope of IRS forms, schedules, publications, and worksheets; (3) the number of tax returns filed and people claimed on these returns, by various characteristics for selected years; and (4) the number of assistance provided to taxpayers by IRS, return preparers, and computerized software …

A letter report issued by the General Accounting Office with an abstract that begins "The Internal Revenue Service (IRS) must significantly improve telephone assistance if it is to meet its long-term goal of providing world-class customer service to the tens of millions of taxpayers who call. Although IRS has tried to analyze its performance and identify ways to improve, these efforts have been incomplete. IRS' analyses did not cover all of the key management decisions and other key factors that affect telephone performance. Designing and conducting a comprehensive analysis of the key management decisions and other key factors that affect telephone performance in each filing season will be difficult because the factors that affect performance are multiple and interrelated. However, without a more comprehensive analysis of the factors that affect performance, IRS lacks the information it needs to make decisions to improve performance."

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of Justice's Antitrust Division's overall policies and procedures for carrying out its statutory responsibilities, particularly as they apply to the agriculture industry. GAO describes (1) the Division's interaction with the Federal Trade Commission (FTC) and the Department of Agriculture (USDA) with regard to antitrust matters in the agriculture industry, (2) the number of complaints and leads in the agriculture industry received by the Division for fiscal years 1997 through 1999, and (3) the number and types of closed matters in the agriculture industry for fiscal years 1997 through 1999. GAO also describes the Division's policies for and procedures for investigating potential anti-trust violations. GAO found that the Division (1) maintains a cooperative working relationship with regard to anticompetitive matters in the agriculture industry with FTC and USDA, (2) received an estimated 165 complaints and leads related to the agriculture industry in fiscal years 1997 through 1999, (3) closed 1,050 matters during that period."

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Health and Human Services issued a final regulation in December 2000 that established rights for patients with respect to the use of their medical records. The regulation requires that most providers obtain patient consent to use or disclose health information before engaging in treatment, payment, or health care operations. The privacy regulation's consent requirement will be more of a departure from current practice for some providers than for others. Most health care providers, with the exception of pharmacists, obtain some type of consent from patients to release information to insurers for payment purposes. The new requirement obligates most providers to obtain consent before they can use and disclose patient information. It also broadens the scope of consent to include treatment and a range of health care management activities. Supporters of the requirement believe that the process of signing a consent form provides an opportunity to inform and focus patients on their privacy rights. Others, however, are skeptical and assert that most patients will simply sign the form with little thought. In addition, provider and other organizations interviewed are concerned that the new consent …