Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Office of National Drug Control Policy's (ONDCP) advertising contract for Phase III of the National Youth Anti-Drug Media Campaign. GAO found that the contractor, Ogilvy & Mather, improperly charged the government for some of its labor costs incurred under this contract. Ogivley & Mather submitted time sheets claiming hours that some employees said they did not work on the anti-drug media campaign. In addition, the company made little progress toward restructuring its accounting system to meet government requirements until nearly two years after the contract was awarded. The government poorly managed aspects of the award and administration of the contract. The Department of Health and Human Services (HHS) should not have awarded this cost-reimbursement contract without determining whether the contractor had an adequate cost accounting system. In addition, HHS should have reviewed the appropriateness of the large amount of money that the technical representative recommended be disallowed from the contractor's invoices, or arranged for an audit of the contract. The technical representative appropriately brought allegations of improper billing to the attention of ONDCP management, but ONDCP management did not take prompt action to investigate …

Other written product issued by the General Accounting Office with an abstract that begins "GAO provided information on the Federal Accounting Standards Advisory Board's recent actions, meetings, and practices."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) the shortage of healthcare workers and (2) the lessons learned by the National Health Service Corps (NHSC) in addressing these shortages. GAO found that problems in recruiting and retaining health care professionals could worsen as demand for these workers increases. High levels of job dissatisfaction among nurses and nurses aides may also play a crucial role in current and future nursing shortages. Efforts to improve the workplace environment may both reduce the likelihood of nurses and nurse aides leaving the field and encourage more young people to enter the nursing profession. Nonetheless, demographic forces will continue to widen the gap between the number of people needing care and the nursing staff available. As a result, the nation will face a caregiver shortage very different from shortages of the past. More detailed data are needed, however, to delineate the extent and nature of nurse and nurse aide shortages to assist in planning and targeting corrective efforts. Better coordination of NHSC placements, with waivers for foreign U.S.-educated physicians, could help more needy areas. In addition, addressing shortfalls in the Department of Health and Human Services (HHS) …

Guidance issued by the General Accounting Office with an abstract that begins "This publication superseded GAO-01-131G, Internal Control Management and Evaluation Tool: Exposure Draft, February 2001. This guide is intended to assist agencies maintain or implement effective internal controls and, when needed, to help determine what, where, and how improvements can be implemented."

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."

A letter report issued by the General Accounting Office with an abstract that begins "GAO analyzed federal government budget practices in order to produce a framework for agency budget practices that can guide an agency toward incorporating performance information into the budget process. GAO also reviewed challenges to implementing results-oriented budget practices that were identified by a panel of agency budget officials."

A letter report issued by the General Accounting Office with an abstract that begins "The Small Business Reauthorization Act of 1997 directed the President to set a goal of awarding not less than 23 percent of the federal government's prime contracting dollars to small business for each fiscal year. The Small Business Administration (SBA) is charged with working with federal agencies to ensure that agency goals, in the aggregate, meet or exceed the overall goal. To help SBA determine if agency goals are being met, the Federal Procurement Data Center (FPDC)--part of the General Services Administration--collects data on all federal contract actions and calculates the government's annual small business achievements on the basis of procurement information received from the agencies. This report reviews (1) SBA's process for establishing annual small business prime contract goals and the reasons for recent changes to the process; (2) the types of contracts that are excluded when achievements are calculated, as well as SBA's rationale for excluding them; and (3) the dollar value of the excluded contracts. GAO found that in fiscal year 2000, SBA began assigning goals directly to individual agencies because the goals that agencies proposed did not in the aggregate reach the …

Correspondence issued by the General Accounting Office with an abstract that begins "This report provides information on a highly publicized insurance investment scam exposed in May 1999. Martin Frankel, with the assistance of others, allegedly obtained secret control of entities in both the insurance and securities industries. Instead of managing the assets of these companies in a prudent manner, he allegedly diverted them to other accounts he controlled and used them to support the ongoing scam and his lifestyle. The scam was finally exposed after insurance regulators in Mississippi placed three of the Frankel-connected insurers under regulatory supervision. Weaknesses in key insurance regulatory oversight activities, extending over several years, delayed detecting the investment scam. GAO found inadequate tools and measures for assessing the appropriateness of insurance company purchasers, analyzing securities investments, evaluating the appropriateness of asset custodians, verifying insurers' assets, and sharing information within and outside of the insurance industry. In addition, GAO found weaknesses in the support services provided by the National Association of Insurance Commissioners, a voluntary association of state insurance regulators."

Testimony issued by the General Accounting Office with an abstract that begins "The importance of the role of the Federal Energy Regulatory Commission (FERC) is illustrated by the situation in California. Wholesale electricity prices in California rose sharply in May 2000 and have remained high. California also saw disruptions in service this winter and spring. GAO reviewed FERC's outage study and two other studies that examined possible exercise of market power in California's electricity industry. GAO found that FERC's study was not thorough enough to support its conclusion that audited generators were not physically withholding electricity to influence prices. FERC's study largely focused on determining whether or not the outages were caused by actual physical problems, such as leaks in cooling tubes that required maintenance or repairs. Two other studies GAO examined found evidence that electricity generators exercised market power to boost electricity prices in California. These studies sought broader evidence of the exercise of market power in the entire market by comparing wholesale electricity prices to the estimated costs of producing electricity. In doing so, they found that prices were higher than would be expected if the generators were acting competitively. None of the studies was thorough enough to …

A letter report issued by the General Accounting Office with an abstract that begins "The Farm Credit Administration (FCA) regulates the farm credit system. Administrative expenses, which accounted for about 97 percent of FCA's total operating expenses of $34.5 million in fiscal year 2000, are funded primarily by assessments on the institutions that make up the system, including the Federal Agricultural Mortgage Corporation (Farmer Mac). This report (1) analyses trends in administrative expenses for fiscal years 1996 through 2000 and (2) compares ways that FCA and other federal financial regulators calculate the assessments they need to fund their operations. GAO found that although FCA's administrative expenditures varied each year between 1996 and 2000, they remained below 1996 levels and stayed within congressionally imposed annual spending limits for each year during 1997 through 2000. Between 1996 and 2000, the agency experienced a decline in administrative spending of around $2 million, or 5.8 percent. Personnel costs were the largest single expense, consistently accounting for more than 80 percent of administrative spending; thus, a 15 percent staff reduction also provided the greatest overall savings. Unlike many government agencies whose operations are funded by taxpayers' money, the federal financial regulators are self-funded agencies that …

A letter report issued by the General Accounting Office with an abstract that begins "To deter illegal entry between the nation's ports of entry, the Immigration and Naturalization Service (INS) developed its Southwest Border Strategy. INS has spent seven years implementing the border strategy, but it may take INS up to a decade longer to fully implement the strategy. This assumes that INS obtains the level of staff, technology, equipment, and fencing it believes it needs to control the Southwest border. Although illegal alien apprehensions have shifted, there is no clear indication that overall illegal entry into the United States along the Southwestern border has declined. INS' current efforts to measure the effectiveness of its border control efforts could be enhanced by analyzing the data in its automated biometric identification system (IDENT). These data offer INS an opportunity to develop additional performance indicators that could be incorporated into its Annual Performance Plan review process and could help INS assess whether its border control efforts are associated with an overall reduction in the flow of illegal aliens across the border. Borderwide analysis of the IDENT data could be used to address several important questions related to illegal entry. The strategy's impact …

A letter report issued by the General Accounting Office with an abstract that begins "With the end of the Cold War, national security strategies changed to meet new global challenges. The Navy developed a new strategic direction in the early 1990s, shifting its primary focus from open ocean "blue water" operations to littoral, or shallow water, operations closer to shore. GAO found that although the Navy has recently placed more emphasis on transformation, it does not have a well-defined and overarching strategy for transformation. It has not clearly identified the scope and direction of its transformation; the overall goals, objectives, and milestones; or the specific strategies and resources to be used in achieving these goals. It also has not clearly identified organizational roles and responsibilities, priorities, resources, or ways to measure progress. Without a well-defined strategic plan to guide the Navy's efforts, senior leaders and Congress will not have the tools they need to ensure that the transformation is successful."

Testimony issued by the General Accounting Office with an abstract that begins "The Air Force started developing the F-22 aircraft in 1991, and plans to complete development in September 2003. The Air Force plans to procure 333 production aircraft at a cost now capped at $37.6 billion. The law does not specify the total number of aircraft to be procured. This testimony discusses (1) potential cost reduction plans, (2) production cost estimates by the Air Force and the Office of the Secretary of Defense, and (3) the Department of Defense's (DOD) efforts to implement GAO's earlier recommendations (see GAO/NSIAD-00-178, August 2000). GAO found that the F-22 contractors' estimated amount of cost reduction plans total about $26.5 billion. Both the Air Force and the Office of the Secretary of Defense cost estimators projected in late 2000 that F-22 production costs would still exceed the $37.6 billion congressional cost limitation if the Air Force were to procure 333 F-22s. DOD plans to reconcile the number of F-22s needed with the amount of the congressional cost limitation on F-22 production as part of the next Quadrennial Defense Review."

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the General Services Administration's (GSA) performance report for fiscal year 2000 and its performance plan for fiscal year 2002 to assess GSA's progress in achieving key outcomes important to its mission. GAO found that some goals were met or exceeded and others were not met. For fiscal year 2002, GSA set up a strategy to better meet these goals. Overall, GSA's fiscal year 2000 performance report and fiscal year 2002 plan were more informative and useful than its report and plan from last year."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses information security controls over computer systems at the Department of Commerce. Dramatic increases in computer interconnectivity, especially in the use of the Internet, are revolutionizing the way the government, the nation, and much of the world communicate and conduct business. However, this widespread interconnectivity also poses significant risks to the nation's computer systems and to the critical operations and infrastructures they support. This testimony provides information on the effectiveness of Commerce's (1) logical access controls and other information system controls over its computerized data, (2) incident detection and response capabilities, and (3) information security management program and related procedures."

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of Defense's (DOD) family housing program. GAO discusses (1) whether DOD has implemented a standard process for determining the required military housing based on housing available in the private sector and (2) how an increase in the housing allowance is likely to affect the need for housing on military installations over the long term. Despite calls from Congress, GAO, and DOD's Inspector General, DOD has not introduced a standard process for determining military housing requirements. DOD and the services have worked to develop the framework for the process, but technical concerns, such as standards for affordable housing and commuting distance, have stalled its adoption. Increasing the housing allowance underscores the urgent need for a consistent process to determine military housing requirements because it is expected to increase demand for civilian housing and lessen the demand for military housing. From a policy standpoint, increasing the allowance better positions DOD to rely on the private sector first for housing because it removes the financial disincentive to living in civilian housing. From a management standpoint, considerable evidence suggests that it is less expensive to …

A briefing report issued by the General Accounting Office with an abstract that begins "About one-third of all military service members make permanent change of station (PCS) moves each year. These moves, which may involve the members' dependents and household goods, are a considerable cost to both the government and individual service members. Not all relocation and moving costs are covered by the government. Reimbursements are based on what property a member was authorized to move and weight allowances that vary by grade and dependents. GAO found that the average duration time between PCS moves was about two years. Personnel who were unmarried and without dependents had the least time between PCS moves. Among the services, the Marine Corps had the shortest average time between PCS moves. Among enlisted personnel, those in the combat occupations had the shortest time between moves; for officers, those who were in the intelligence and tactical operations areas had the shortest average tours. GAO found that the duration of PCS tours was related to satisfaction. Those with shorter time spent between moves were less likely to be satisfied and were more likely to have a spouse who favored the member leaving the military. The most …

A letter report issued by the General Accounting Office with an abstract that begins "To prevent the curtailment of employment opportunities for disabled persons, the Fair Labor Standards Act allows employers to pay individuals less than the minimum wage if they have a physical or mental disability that impairs their earning or productive capacity. The Department of Labor's Wage and Hour Division (WHD) administers the special minimum wage program. More than 5,600 employers nationwide pay special wages to workers with disabilities; about 84 percent are work centers established to provide employment opportunities and support services to individuals with disabilities. Businesses comprise about 9 percent of these employers; the remaining 7 percent are hospitals or other residential care facilities and schools. Seventy-four percent of the workers paid special minimum wages by work centers have mental retardation or another developmental disability as their primary impairment, and 46 percent have multiple disabilities. From the data received by employers on the productivity of their disabled workers, it is estimated that 70 percent of the workers are less than half as productive as workers without disabilities performing the same jobs. Labor has not effectively managed the special minimum wage program to ensure that disabled workers …

A letter report issued by the General Accounting Office with an abstract that begins "As used in public health and environmental regulations, risk assessment is the systematic, scientific description of potential harmful effects of exposures to hazardous substances or situations. It is a complex but valuable set of tools for federal regulatory agencies to identify issues of potential concern, select regulatory options, and estimate the range of a forthcoming regulation's benefits. However, given the significant yet controversial nature of risk assessments, it is important that policymakers understand how they are conducted, the extent to which risk estimates produced by different agencies and programs are comparable, and the reasons for differences in agencies' risk assessment approaches and results. GAO studied the human health and safety risk assessment procedures of the Environmental Protection Agency, the Food and Drug Administration, the Occupational Safety and Health Administration, and the Department of Transportation's Research and Special Programs Administration. This report describes (1) the agencies' chemical risk assessment activities, (2) the agencies primary procedures for conducting risk assessments, (3) major assumptions or methodological choices in their risk assessment procedures, and (4) the agencies' procedures or policies for characterizing the results of risk assessments."

A letter report issued by the General Accounting Office with an abstract that begins "During its review of the Navy's Space and Naval Warfare (SPAWAR) Systems Command's fiscal year 2001 budget request, GAO found that many information technology systems were being procured and fielded in relatively large quantities--sometimes exceeding 50 percent of the total--during low-rate initial production and before completion of operational testing. The primary purpose of low-rate initial production is to produce enough units for operational testing and evaluation and to establish production capabilities to prepare for full-rate production. Commercial and Department of Defense (DOD) best practices have shown that completing a system's testing before producing significant quantities substantially lowers the risk of costly fixes and retrofits. For major weapons systems, statutory provisions limit the quantities of systems produced during low-rate initial production to the minimum quantity necessary. These statutory provisions also require justification for quantities exceeding 10 percent of total production. Although these provisions do not apply to non-major systems, DOD and Navy acquisition regulations encourage these programs to make use of the low-rate initial production concept. This report reviews (1) information systems being procured and fielded for SPAWAR in large numbers before operational testing, (2) what effects …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) budgets billions of dollars each year to purchase and repair the spare parts needed to maintain its weapons systems and support equipment. The quality of the spare parts can greatly determine if the Department's investment of funds is effective, efficient, and economical. This report examines the Navy's Product Quality Deficiency Reporting Program and the extent to which the program has gathered the data needed for the analysis, correction, and prevention of deficiencies in spare parts. GAO found that data on parts defects identified at the time of installation were underreported. Data on parts that failed after some operation but before their expected design life were not collected as part of this program. In the quality reports GAO reviewed, some key information was omitted on the cause of the parts' failures and some reports did not identify who was responsible for the defects. To a large extent, the program's ineffectiveness can be attributed to lack of management, limited training and incentives to report deficiencies, and competing priorities for the staff resources needed to carry out the program."

A letter report issued by the General Accounting Office with an abstract that begins "The Federal Transit Administration's (FTA) New Starts program has provided state and local agencies with more than $6 billion in the last eight years to help design and construct transit projects. Although the funding for this program is higher than it has ever been, the demand for these resources is also extremely high. FTA was directed to prioritize projects for funding by evaluating, rating, and recommending potential projects on the basis of specific financial and project justification criteria. This report discusses (1) the refinements made to FTA's evaluation and rating process since last year, (2) how New Starts projects were selected for FTA's New Starts report and budget request for fiscal year 2002, and (3) FTA's remaining New Starts commitment authority. GAO found that FTA made several refinements to its rating process. For instance, potential grantees were more strictly assessed on their ability to build and operate proposed projects than in the past. FTA also made several technical changes and established new performance measures to evaluate the program. New Starts projects were selected by evaluating 40 new projects for 2002 and developing ratings for 26 of …

A letter report issued by the General Accounting Office with an abstract that begins "The reauthorization of the Temporary Assistance for Needy Families (TANF) block grant represents an opportunity to re-examine the fiscal balance between the federal government and the states in providing services to needy families. Since the enactment of federal welfare reform, there has been much discussion of the fiscal implications of these sweeping changes in national welfare policy. A particularly contentious issue has been the extent to which states have replaced, rather than supplemented, their own spending with federal TANF dollars, thereby freeing up state funds for other budget priorities. This report reviews (1) the degree to which states have used the flexibility afforded in the federal TANF grant to supplant, rather than supplement, state spending for low-income families; (2) the changes that have occurred in the states' use of different funding sources (including their TANF funds) on programs that help the poor; (3) the effects of state funding choices on the amounts of TANF funds the states have left unspent at the U.S. Treasury; and (4) the measures states are taking to save a portion of the TANF grant or set aside their funds for a …

A letter report issued by the General Accounting Office with an abstract that begins "Millions of people who live and work near eight Army storage facilities containing 30,000 tons of chemical agents are at risk of exposure from a chemical accident. In 1988, the Army established the Chemical Stockpile Emergency Preparedness Program (CSEPP) to assist 10 states with communities near these eight storage facilities. The Army and the Federal Emergency Management Agency (FEMA) share the federal government's responsibility for the program's funding and execution. Since its inception, the program has received more than $761 million in funding. One third of this amount has been spent to procure critical items. Because each community has its own site-specific requirements, funding has varied greatly. For example, since the states first received program funding in 1989, Illinois received as little as $6 million, and Alabama received as much as $108 million. GAO found that many of the states have made considerable progress in preparing to respond to chemical emergencies. Three of the 10 states in the CSEPP are fully prepared to respond to an emergency and four others are making progress and are close to being fully prepared. This is a considerable improvement since …