Guidance issued by the General Accounting Office with an abstract that begins "The U.S. General Accounting Office (GAO) and the President's Council on Integrity and Efficiency (PCIE) maintain the GAO/PCIE Financial Audit Manual (FAM). The FAM provides guidance for performing financial statement audits of federal entities. The FAM is a key tool for enhancing accountability over taxpayer-provided resources."

Correspondence issued by the General Accounting Office with an abstract that begins "On February 25, 2004, Congress heard testimony at a hearing entitled "The Key to Homeland Security: The New Human Resources System." This report responds to additional questions posed by Senator Akaka and Senator Lautenberg."

Testimony issued by the General Accounting Office with an abstract that begins "The Heavily Indebted Poor Countries (HIPC) Initiative, established in 1996, is a bilateral and multilateral effort to provide debt relief to poor countries to help them achieve economic growth and debt sustainability. Multilateral creditors are having difficulty financing their share of the initiative, even with assistance from donors. Under the existing initiative, many countries are unlikely to achieve their debt relief targets, primarily because their export earnings are likely to be significantly less than projected by the World Bank and International Monetary Fund (IMF). In a recently issued report, GAO assessed (1) the projected multilateral development banks' funding shortfall for the existing initiative and (2) the amount of funding, including development assistance, needed to help countries achieve economic growth and debt relief targets. The Treasury, World Bank, and African Development Bank commented that historical export growth rates are not good predictors of the future because significant structural changes are under way in many countries that could lead to greater growth. We consider these historical rates to be a more realistic gauge of future growth because of these countries' reliance on highly volatile primary commodities and other vulnerabilities such …

Testimony issued by the General Accounting Office with an abstract that begins "The terrorist attacks of September 11, 2001, were a dramatic reminder of the importance of cultivating a better understanding of the United States and its policies with overseas audiences. U.S. public diplomacy activities include the efforts of the Broadcasting Board of Governors, which oversees all nonmilitary U.S. international broadcasting by the Voice of America (VOA) and several other broadcast entities. Such broadcasting helps promote a better understanding of the United States and serves U.S. interests by providing overseas audiences with accurate and objective news about the United States and the world. GAO has issued three reports over the past 4 years examining the organizational, marketing, resource, and performance reporting challenges faced by the Board. Our recommendations to the Board have included the need to address the long-standing issue of overlapping language services (i.e., where two services broadcast in the same language to the same audience) and to strengthen the Board's strategic planning and performance by placing a greater emphasis on results. The Board has taken significant steps to respond to these and other recommendations."

Correspondence issued by the General Accounting Office with an abstract that begins "The Federal Emergency Management Agency (FEMA) provides federal disaster assistance to help those in need respond to, prepare for, and recover from disasters. As the costs for disaster assistance have risen, FEMA has made disaster mitigation a primary goal in its efforts to reduce the long-term cost of disasters and minimize risk to property and individuals from natural or man-made hazards. Previous FEMA mitigation grant programs were formula-based and provided funds both prior to and after a disaster occurred. Fiscal Year 2003, marks the first-time FEMA has implemented a grant program that awards funds for mitigation activities on a competitive basis. This report presents information on (1) FEMA's processes and criteria for awarding planning and competitive pre-disaster mitigation grants to states and localities, and (2) the status of FEMA's efforts to implement the Fiscal Year 2003 Pre-Disaster Mitigation Program."

Correspondence issued by the General Accounting Office with an abstract that begins "In testimony in October 2002 and in a report issued in April 2003 we raised concerns about the Department of Housing and Urban Development's (HUD) accountability for computers and computer-related equipment bought with government purchase cards. Our review identified a large volume of computers and computer-related purchases for which HUD did not have adequate supporting documentation. In addition, HUD acknowledged that items bought with purchase cards were not being consistently entered in its asset management system thereby increasing its vulnerability to loss or theft. Given these findings, and the approximately $59 million HUD reported it has spent on computers and computer-related equipment and services over the last 3 fiscal years, Congress asked of us to further assess HUD's accountability for these vulnerable assets. Specifically, it was requested that we determine whether HUD had established an effective system of internal control for maintaining accountability over its computer equipment. Our review covered HUD's systems and controls in place during fiscal years 2001, 2002, and 2003."

Correspondence issued by the General Accounting Office with an abstract that begins "On March 4, 2004, GAO testified before the Subcommittee on Oversight and Investigations, House Committee on Financial Services, at a hearing on oversight of the Federal Deposit Insurance Corporation (FDIC) and discussed the results of our 2003 and 2002 audits of FDIC's financial statements. This letter responds to subsequent questions that the Chairwoman asked GAO to answer for the record."

Correspondence issued by the General Accounting Office with an abstract that begins "On March 3, 2004, the Subcommittee on Government Efficiency and Financial Management, House Committee on Government Reform, heard testimony on the U.S. government's consolidated financial statements for fiscal year 2003. This letter responds to questions related to the testimony and to subsequent questions from the Vice Chairman."

Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Health and Human Service's (HHS) Office of Inspector General (OIG) plays a vital role in auditing and investigating allegations of fraud and abuse in federal health and welfare programs. Because it independently evaluates various programs, activities, and functions, the OIG must act with integrity at all times. In the fall of 2003, anonymous allegations charged that certain officials in the HHS OIG's Office of Evaluation and Inspections (OEI) sponsored training and management meetings for nonwork purposes and improperly renovated a regional office. The allegations primarily focused on the actions of the Acting OEI Deputy Inspector General in relation to specific events that took place from July through September 2003. The allegations charged that she (1) sponsored training at a Florida resort to facilitate vacation time for staff, (2) scheduled several follow-up training meetings as a way of providing staff with leisure time, and (3) held a managers' meeting in New York as a pretext for participants to attend a retirement celebration for one of OEI's managers. A fourth allegation charged that the Acting OEI Deputy Inspector General, along with an Acting OEI Regional Inspector General, …

Correspondence issued by the General Accounting Office with an abstract that begins "This letter responds to a request that we provide information on selected personnel practices at the Justice Department. On March 1, 2004, we briefed Congress on the results of our review. This letter transmits information provided during that briefing. Specifically, the slides enclosed in this letter describe (1) Justice's hiring processes for entry-level and lateral (i.e., experienced) career attorneys, (2) the types of monetary awards Justice grants to political appointees and the number of awards granted from 1993 through 2002, and (3) Justice's selection process for the position of the Assistant Attorney General for Administration."

Correspondence issued by the General Accounting Office with an abstract that begins "In April 2001, we reported that the Army Materiel Command's guidance required that 50 percent of the excess conventional ammunition demilitarization budget--a figure for which we did not find any analytical basis--be set aside for commercial firms that use environmentally friendly demilitarization processes. This resulted in the retention and underutilization of environmentally friendly demilitarization capabilities at government facilities and in additional program costs. We thus recommended that the Department of Defense (DOD) develop a plan in consultation with Congress that included procedures for assessing the appropriate mix of government and commercial sector capacity needed to demilitarize excess ammunition. Our intent was to have DOD reexamine the cost-effectiveness of using commercial versus government facilities to demilitarize excess ammunition. Over the past several months we have conducted work to determine the specific actions taken to implement our recommendation. We made extensive use of our prior work as a baseline to compare the changes in demilitarization capacity and utilization at government-owned facilities since our prior report. We conducted our analysis of DOD's demilitarization program in accordance with generally accepted government auditing standards. The purpose of this letter is to note that …

Correspondence issued by the General Accounting Office with an abstract that begins "Section 202 of the National Aeronautics and Space Administration (NASA) Authorization Act of 2000 (P.L. 106-391) requires that GAO verify NASA's accounting for amounts obligated against established limits for the space station and related space shuttle support. Under the act, obligations are limited to $25 billion for the space station and $17.7 billion for shuttle support."

Correspondence issued by the General Accounting Office with an abstract that begins "The enactment of the Homeland Security Act of 2002 led to the most substantial reorganization of the federal government since the 1940s by creating the Department of Homeland Security (DHS). Established in January 2003, DHS combined 29 program functions that were transferred from 10 agencies, referred to as the legacy agencies. In addition, legacy agencies transferred resources for support functions, such as offices of inspectors general and management and support. According to the President's proposal to create DHS, the reorganization was also designed to, among other things, achieve future savings through the elimination of redundancies among the transferred programs. Given the breadth and magnitude of the reorganization, questions have been raised among members of Congress and in the media about whether the creation of DHS would prompt increases in the size of the workforces at the agencies affected by the reorganization. This report responds to a request by the Chairman, House Committee on Transportation and Infrastructure, that we examine how the transfer of full-time equivalent (FTE) positions to DHS was conducted at the agencies involved in the transfer. Specifically, in this report, we (1) identify the budgetary resources …

Testimony issued by the General Accounting Office with an abstract that begins "The Oil for Food program was established by the United Nations and Iraq in 1996 to address concerns about the humanitarian situation after international sanctions were imposed in 1990. The program allowed the Iraqi government to use the proceeds of its oil sales to pay for food, medicine, and infrastructure maintenance. The program appears to have helped the Iraqi people. From 1996 through 2001, the average daily food intake increased from 1,300 to 2,300 calories. From 1997 to 2002, Iraq sold more than $67 billion of oil through the program and issued $38 billion in letters of credit to purchase commodities. However, over the years numerous allegations have surfaced concerning potential fraud and program mismanagement. GAO (1) reports on its estimates of the illegal revenue acquired by the former Iraqi regime in violation of U.N. sanctions, (2) provides observations on program administration; (3) describes the challenges facing the CPA and the Iraqi government in administering remaining contracts, and (4) discusses potential issues for further investigation."

Testimony issued by the General Accounting Office with an abstract that begins "As a result of the September 11, 2001, terrorist attacks and launch of the Global War on Terrorism, the National Guard has experienced the largest activation of its forces since World War II. The Guard consists of 350,000 Army Guard soldiers and 107,000 Air Guard members. With its unique dual status, it performs state missions under the governor and federal missions at home and overseas under the President. Since September 11, the Guard's missions have expanded, raising concerns about its ability to simultaneously perform all of these functions. The Department of Defense (DOD) funds the Army Guard for partial readiness to accomplish mission requirements assuming that there will be time to supply additional personnel and equipment in an extended conflict. In contrast, the Air Guard is funded to be an operational reserve ready on short notice. Today's testimony addresses GAO's observations on (1) the extent and purpose of the National Guard's use since September 11, (2) the effects of that use on Guard forces' readiness for future missions, and (3) the challenges that DOD, the states, and Congress face in organizing and equipping the Guard to support both …

Testimony issued by the General Accounting Office with an abstract that begins "Having grown to over $7.5 trillion in assets, mutual funds have become vital components of the financial security of more than 95 million American investors. However, in 2003, various allegations of misconduct and abusive practices involving mutual funds came to light. Therefore, ensuring that the Securities and Exchange Commission (SEC), which has primary oversight of the mutual fund industry, has the necessary resources and strategic focus to adequately oversee fund practices has never been more important. To assess how SEC is positioned to oversee mutual funds, GAO reviewed (1) how the abusive mutual fund practices were identified and SEC's subsequent responses, (2) SEC's plans for increasing its staffing in the divisions and offices responsible for overseeing mutual funds and its progress in developing a new strategic plan to guide staff deployment, and (3) the challenges SEC faces in overseeing the mutual fund industry."

Testimony issued by the General Accounting Office with an abstract that begins "As the lead federal agency for maritime homeland security within the Department of Homeland Security, the Coast Guard is facing extraordinary, heightened responsibilities to protect America's ports, waterways, and waterside facilities from terrorist attacks. At the same time, the Coast Guard remains responsible for many other programs important to the nation's interests, such as conducting search and rescue and protecting important fishing grounds. Its expanded responsibilities come at a time when budget resources are increasingly constrained, making prioritization among competing agencies and programs an even more critical factor in congressional decision-making. This testimony specifically addresses (1) the most recent trends in both resource usage and performance results for the Coast Guard's homeland security and non-homeland security programs; (2) challenges the agency faces as it proceeds with its Deepwater acquisition program to replace or modernize its key legacy cutters and aircraft; and (3) an overview of the President's fiscal year 2005 budget request for the Coast Guard, focusing on several areas of particular congressional interest."

Testimony issued by the General Accounting Office with an abstract that begins "After the terrorist attacks of September 11, 2001, insurance coverage for terrorism largely disappeared. Congress passed the Terrorism Risk Insurance Act (TRIA) in 2002 to help commercial property-casualty policyholders obtain terrorism insurance and give the insurance industry time to develop mechanisms to provide such insurance after the act expires on December 31, 2005. Under TRIA, the Department of Treasury (Treasury) caps insurer liability and would process claims and reimburse insurers for a large share of losses from terrorist acts that Treasury certified as meeting certain criteria. As Treasury and industry participants have operated under TRIA for more than a year, GAO was asked to describe how TRIA affected the terrorism insurance market."

Testimony issued by the General Accounting Office with an abstract that begins "Since its inception in 1985, the Chemical Demilitarization (Chem-Demil) Program has been charged with destroying the nation's large chemical weapons stockpile of over 31,000 tons of agent. The program started destroying the stockpile in 1990. As of March 2004, the program had destroyed over 27 percent of the stockpile. The program has recently reorganized into the Chemical Materials Agency (CMA) to manage seven of the nine sites. There are five sites using incineration to destroy the agent and two bulk agent only sites using neutralization. The Assembled Chemical Weapons Alternatives (ACWA) Program, in the Department of Defense (DOD), manages two sites using neutralization to destroy agent in weapons. This testimony updates GAO's September 2003 report and October 2003 testimony. As requested, it focuses on the following issues: (1) changes in the status of schedule milestones and costs at the sites, (2) recent developments that impact the Chemical Weapons Convention (CWC) deadlines, (3) the challenges associated with managing the program, and (4) an update on the status of the Chemical Stockpile Emergency Preparedness Program (CSEPP)."

Testimony issued by the General Accounting Office with an abstract that begins "From 1994 to 2003, the use of government purchase cards increased from $1 billion to $16 billion. During this time, agencies primarily focused on ways to increase the use of purchase cards. Beginning in 2001, GAO testified and reported that significant weaknesses in internal controls made agencies vulnerable to fraud, waste, and abuse, and inefficient purchasing actions. In response to increased use of purchase cards and serious control weaknesses in the purchase card program, GAO was asked to summarize the growth of the purchase card program, the control weaknesses that led to fraud and misuse of the cards, actions taken to tighten controls and discipline cardholders, and agency actions to leverage the government's buying power when using the purchase card."

Testimony issued by the General Accounting Office with an abstract that begins "The terrorist attacks of September 11, 2001, were a dramatic reminder of the importance of cultivating a better understanding of the United States and our policies with overseas audiences. U.S. public diplomacy activities include the efforts of the Broadcasting Board of Governors, which oversees all nonmilitary U.S. international broadcasting by the Voice of America (VOA) and several other broadcast entities. Such broadcasting helps promote a better understanding of the United States and serves U.S. interests by providing overseas audiences with accurate and objective news about the United States and the world. GAO has issued three reports over the past 4 years examining the organizational, marketing, resource, and performance reporting challenges faced by the Board. Our recommendations to the Board have included the need to address the long-standing issue of overlapping language services (that is, where two services broadcast in the same language to the same audience) and to strengthen the Board's strategic planning and performance by placing a greater emphasis on results. The Board has taken significant steps to respond to these and other recommendations."

Testimony issued by the General Accounting Office with an abstract that begins "The Improper Payments Information Act of 2002 requires that agencies annually review all their programs and activities and identify those that may be susceptible to significant improper payments. It further requires those agencies with improper payments exceeding $10 million to provide a report on the actions being taken to reduce those payments. This testimony updates agency progress in implementing the act based on our review of agency fiscal year 2003 Performance and Accountability Reports for the 15 agencies and 46 programs previously cited in Office of Management and Budget Circular A-11, Section 57. It required those agencies and programs to report improper payment information to the Office of Management and Budget beginning with their fiscal year 2003 budget proposals. The areas we addressed were (1) agencies that reported improper payments information and the programs and activities on which that information was based, (2) amounts of improper payments reported, (3) initiatives agencies reported taking to reduce those payments and the results of those initiatives, and (4) impediments to the prevention or reduction of improper payments reported."

Testimony issued by the General Accounting Office with an abstract that begins "Critical infrastructure protection (CIP) activities that are called for in federal policy and law are intended to enhance the security of the cyber and physical public and private infrastructures that are essential to our nation's security, economic security, and public health and safety. As our reliance on these infrastructures increases, so do the potential threats and attacks that could disrupt critical systems and operations. Effective information-sharing partnerships between industry sectors and government can contribute to CIP efforts. Federal policy has encouraged the voluntary creation of Information Sharing and Analysis Centers (ISACs) to facilitate the private sector's participation in CIP by serving as mechanisms for gathering and analyzing information and sharing it among the infrastructure sectors and between the private sector and government. This testimony discusses the management and operational structures used by ISACs, federal efforts to interact with and support the ISACs, and challenges to and successful practices for ISACs' establishment, operation, and partnerships with the federal government."

Testimony issued by the General Accounting Office with an abstract that begins "Medicare spending for power wheelchairs, one of the program's most expensive items of durable medical equipment (DME), rose 450 percent from 1999 through 2003, while overall Medicare spending rose by about 11 percent for the same period, according to the Centers for Medicare & Medicaid Services (CMS). This spending growth has raised concerns that Medicare made improper payments and has payment rates that are out of line with market prices. In May 2003, the Department of Justice indicted power wheelchair suppliers in Texas alleged to have fraudulently billed Medicare. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) contains provisions regarding DME, such as changing payment setting methods. GAO was asked to examine (1) steps taken by CMS and its contractors to identify and respond to improper payments for power wheelchairs and (2) how MMA will affect CMS's ability to set payment rates for DME. To examine these issues, GAO analyzed claims data reports for CMS's four DME regions, reviewed applicable legislation, regulations, and CMS and contractor documents, and interviewed CMS and contractor officials, DME suppliers and manufacturers, DME industry representatives, and beneficiary advocacy groups. GAO …