Correspondence issued by the Government Accountability Office with an abstract that begins "Under the American Recovery and Reinvestment Act of 2009 (ARRA), Congress required the Small Business Administration (SBA) to implement a total of eight administrative provisions to help facilitate small business lending and enhance liquidity in the secondary markets. These administrative provisions include (1) temporarily requiring SBA to reduce or eliminate certain fees on 7(a) and 504 loans; (2) temporarily increasing the maximum 7(a) guarantee from 85 percent to 90 percent; and (3) implementing provisions designed specifically to facilitate secondary markets, such as extending existing guarantees in the 504 program and making loans to systemically important brokerdealers that operate in the 7(a) secondary market. Further, ARRA established deadlines for SBA to issue regulations that implement certain administrative provisions, such as those pertaining to facilitating secondary market activities. Specifically, ARRA required SBA to issue regulations extending the guarantee related to the 504 program within 15 days after enactment (March 4, 2009) and for making loans to systemically important broker-dealers within 30 days after enactment (March 19, 2009). ARRA also mandates that we report within 60 days after the date of enactment, April 17, 2009, on SBA's initial efforts to comply …

Correspondence issued by the Government Accountability Office with an abstract that begins "On November 14, 2008, we issued our opinion on the U.S. Securities and Exchange Commission's (SEC) fiscal years 2008 and 2007 financial statements. We also issued our opinion on the effectiveness of SEC's internal control over financial reporting (including safeguarding of assets) and over compliance as of September 30, 2008, and our evaluation of SEC's compliance with selected provisions of laws and regulations during fiscal year 2008. The purpose of this report is to present issues identified during our fiscal year 2008 audit of SEC's internal controls and accounting procedures and to recommend actions to address these issues. Accordingly, in this report we are making 19 recommendations to SEC to strengthen internal controls and accounting procedures. These recommendations are in addition to 24 remaining recommendations included in prior year audits of SEC's financial statements that still need to be fully addressed."

Testimony issued by the Government Accountability Office with an abstract that begins "GAO's work over the past several years has demonstrated that improper payments are a long-standing, widespread, and significant problem in the federal government. The Improper Payments Information Act of 2002 (IPIA) has increased visibility over improper payments by requiring executive branch agency heads, using guidance from the Office of Management and Budget, to identify programs and activities susceptible to significant improper payments, estimate amounts improperly paid, and report on the amounts of improper payments and their actions to reduce them. This testimony addresses (1) progress made in agencies' implementation of IPIA for fiscal year 2008, and (2) several major challenges that continue to hinder full reporting of IPIA information. GAO was also asked to provide an overview of Medicare and Medicaid programs' implementation of IPIA. This testimony is based primarily on GAO products, Office of Inspector General (OIG) audit reports, and agencies' fiscal year 2008 reported improper payment information, including information reported by the Department of Health and Human Service's (HHS) Centers for Medicare and Medicaid Services (CMS). GAO also analyzed fiscal year 2008 governmentwide improper payment information to identify trends and reviewed Medicare and Medicaid programs' reported …

Testimony issued by the Government Accountability Office with an abstract that begins "The National Defense Authorization Act for Fiscal Year 2008 (NDAA 2008) requires the Departments of Defense (DOD) and Veterans Affairs (VA) to jointly develop and implement comprehensive policies on the care, management, and transition of recovering servicemembers. The Senior Oversight Committee (SOC)--jointly chaired by DOD and VA leadership--has assumed responsibility for these policies. The NDAA 2008 also requires GAO to report on the progress DOD and VA make in developing and implementing the policies. This statement provides preliminary information on (1) the progress DOD and VA have made in jointly developing the comprehensive policies required in the NDAA 2008 and (2) the challenges DOD and VA are encountering in the joint development and initial implementation of these policies. GAO determined the current status of policy development by assessing the status reported by SOC officials and analyzing supporting documentation. To identify challenges, GAO interviewed the Acting Under Secretary of Defense for Personnel and Readiness, the Executive Director and Chief of Staff of the SOC, the departmental co-leads for most of the SOC work groups, the Acting Director of DOD's Office of Transition Policy and Care Coordination, and other knowledgeable …

Other written product issued by the Government Accountability Office with an abstract that begins "This report presents the Government Accountability Office's (GAO) Performance Plan for Fiscal Year 2010. In the spirit of the Government Performance and Results Act, this annual plan informs the Congress and the American people about what we expect to accomplish on their behalf in the coming fiscal year. It sets forth our plan to make progress toward achieving our strategic goals for serving the Congress and the American people. This framework not only shows the relationship between our strategic goals and strategic objectives, but also show major themes that could potentially affect our work."

Correspondence issued by the Government Accountability Office with an abstract that begins "Recent increases in prescription drug costs have been fueled in part by the high and rising cost of specialty prescription drugs. Specialty prescription drugs are typically used to treat chronic or life-threatening conditions, such as multiple sclerosis and cancer, for which few other treatment options exist. The drugs typically have few competitors or generic alternatives and may require frequent dosage adjustment, special storage, patient education, or special methods of administration, such as by injection. Costs for specialty prescription drugs are usually high, typically ranging from $1,200 to $40,000 for a 30-day supply. Health plans--including those participating in the Federal Employees Health Benefits Program (FEHBP), which covers nearly 8 million federal employees, dependents, and retirees-- provide coverage for many specialty drugs. Enrollees may be required to pay a portion of specialty drug costs through a copayment--a flat dollar amount--or coinsurance--a percentage share of the drug's actual costs. To manage the high and rising costs of these drugs, some health plans have begun to require enrollees to contribute a greater share of their costs, such as by increasing the use of coinsurance. Congress asked us to examine the costs that …

Correspondence issued by the Government Accountability Office with an abstract that begins "In connection with fulfilling our requirement to audit the financial statements of the U.S. government, we audited and reported on the Schedules of Federal Debt Managed by the Bureau of the Public Debt (BPD) for the fiscal years ended September 30, 2008 and 2007. As part of these audits, we performed a review of the general and application information security controls over key BPD financial systems. As we reported in connection with our audit of the Schedules of Federal Debt for the fiscal years ended September 30, 2008 and 2007, we concluded that BPD maintained, in all material respects, effective internal control relevant to the Schedule of Federal Debt related to financial reporting and compliance with applicable laws and regulations as of September 30, 2008, that provided reasonable assurance that misstatements, losses, or noncompliance material in relation to the Schedule of Federal Debt would be prevented or detected on a timely basis. However, we found deficiencies involving information security controls that we do not consider to be significant deficiencies. With regard to financial reporting and compliance with applicable laws and regulations, BPD mitigated the potential effect of such …

Correspondence issued by the Government Accountability Office with an abstract that begins "In an effort to improve the U.S. military's flexibility to address conventional and terrorist threats worldwide, the Department of Defense (DOD) plans to relocate more than 8,000 Marines and an estimated 9,000 dependents from Okinawa, Japan, to Guam as well as expand other U.S. force capabilities on the island at an estimated cost of more than $13 billion. Guam is an integral part of DOD's logistical support system and serves as an important forward operational hub for a mix of military mission requirements. According to DOD, Guam provides strategic flexibility, freedom of action, and prompt global action for the Global War on Terrorism, peace and wartime engagement, and crisis response. DOD plans to begin construction on Guam during fiscal year 2010 in order to meet the desired buildup deadline of fiscal year 2014 indicated in the agreement reached by the U.S.-Japan Security Consultative Committee on October 29, 2005. As a result of the military buildup, Guam's current population of 171,000 will increase by an estimated 25,000 active duty military personnel and dependents (or 14.6 percent), to 196,000. In addition, the realignment will require additional workers to move to …

Correspondence issued by the Government Accountability Office with an abstract that begins "A genuine U.S. passport is a vital document, permitting its owner to travel freely into and out of the United States, prove U.S. citizenship, obtain further identification documents, and set up bank accounts, among other things. Since May 2005, we have issued several reports identifying significant fraud vulnerabilities in the passport issuance process. This report (1) describes our recent work on passport fraud and (2) summarizes actions the Department of State (State) has indicated it is taking to address the fraud vulnerabilities we identified."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Veterans Affairs (VA) estimates it will provide health care to 5.8 million patients with appropriations of about $41 billion in fiscal year 2009. It provides a range of services, including primary care, outpatient and inpatient services, long-term care, and prescription drugs. VA formulates its health care budget by developing annual estimates of its likely spending for all its health care programs and services, and includes these estimates in its annual congressional budget justification. GAO was asked to discuss budgeting for VA health care. As agreed, this statement addresses (1) challenges VA faces in formulating its health care budget and (2) issues surrounding the possibility of providing advance appropriations for VA health care. This testimony is based on prior GAO work, including VA Health Care: Budget Formulation and Reporting on Budget Execution Need Improvement (GAO-06-958) (Sept. 2006); VA Health Care: Long-Term Care Strategic Planning and Budgeting Need Improvement (GAO-09-145) (Jan. 2009); and VA Health Care: Challenges in Budget Formulation and Execution (GAO-09-459T) (Mar. 2009); and on GAO reviews of budgets, budget resolutions, and related legislative documents. We discussed the contents of this statement with VA officials."

Correspondence issued by the Government Accountability Office with an abstract that begins "In November 2005, the President issued an executive order establishing the Office of the Federal Coordinator for Gulf Coast Rebuilding (OFC) with the broad mission of supporting recovery efforts following Hurricanes Katrina and Rita. Given their vast size and impact, these storms presented unprecedented rebuilding challenges to federal, state, and local officials which, combined with concerns about the lack of coordination in government's initial response to the disaster, precipitated the creation of the Office of the Federal Coordinator. To assist in Congress' ongoing oversight responsibilities of the recovery of the Gulf Coast, Congress asked us to: (1) describe the functions the Coordinator has performed, (2) obtain stakeholder perspectives regarding the office's operation, and (3) provide observations on issues to be considered for moving forward. We provided Congressional staff with summaries of our findings this past February to answer these questions as well as our observations, including extending the term of OFC. We have since updated some of the information in our briefing, using information that has subsequently become available including the President's decision to extend the operations of OFC through September 30, 2009."

Correspondence issued by the Government Accountability Office with an abstract that begins "In 2008, the Consumer Product Safety Commission (CPSC) announced that it had obtained the voluntary recall of 563 unsafe or potentially unsafe products by the companies that manufactured, imported, distributed, or sold the products--the largest number for the agency in the past 10 years. In the prior year, CPSC announced 472 recalls--which was also an increase from the previous year and included some high-profile recalls of lead-tainted toys--leading some consumer groups to call 2007 the "year of the recall." Consumer products can be recalled for a variety of reasons, including violations of safety standards, incidents of injuries that can occur from the design or manufacture of a product, or other conditions that present an imminent or substantial hazard to consumers. Since 1979 there have been few instances in which CPSC could not obtain cooperation from manufacturers or importers to conduct recalls, either because these companies did not have the financial resources to conduct a recall or because the companies refused to assume responsibility for a recall. This included troubled recalls involving more than 1.5 million imported cribs associated with multiple deaths of children. Another recall of imported tires, …

Correspondence issued by the Government Accountability Office with an abstract that begins "Grants.gov is the central grant identification and application portal for the more than 1,000 federal grants programs offered by 26 federal grant-making agencies and organizations. The Office of Management and Budget (OMB) created Grants.gov, to streamline administrative grant application requirements and reduce the burden on applicants, among other things. On March 6, 2009, Grants.gov began posting specific grant opportunities provided in the American Recovery and Reinvestment Act of 2009 (Recovery Act). As a result, submissions have escalated to an unprecedented level. During the first week in April, Grants.gov processed almost 11,500 applications, or about three times the weekly average number of submissions in fiscal year 2008. One day that week Grants.gov accepted 3,555 applications--the largest 1-day total to date. On March 9, 2009, OMB notified federal agencies that over the past several months Grants.gov had experienced increased activity beyond what was originally anticipated by the system, which had at times resulted in noticeably degraded performance. OMB further noted that given the expected increase in application volume because of the Recovery Act, the system was at significant risk of failure, thus potentially hampering Recovery Act implementation. To reduce demand …

Correspondence issued by the Government Accountability Office with an abstract that begins "This correspondence formally transmits the briefing we prepared in response to Senate Report 110-335 accompanying the National Defense Authorization Act for Fiscal Year 2009. The Senate Report required the Comptroller General to conduct an assessment of medical and dental personnel requirements of the Departments of the Army, Navy, and Air Force, including their reserve components. To satisfy this requirement, we previously provided to Congress on April 1, 2009 a copy of the draft briefing we sent to DOD for comment."

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the summary of an oral briefing we gave in response to a mandate in the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, and subsequent agency comments. This mandate required the Department of Homeland Security (DHS) to prepare an expenditure plan that satisfied 12 specified conditions, and for the plan to be submitted to and approved by the House and Senate Appropriations Committees before the agency could obligate $400 million of the approximately $775 million appropriated for U.S. Customs and Border Protection (CBP) fencing, infrastructure, and technology. In response to this requirement, DHS submitted a plan on March 4, 2009, titled "U.S. Customs and Border Protection: Secure Border Initiative Border Security, Fencing, Infrastructure and Technology (BSFIT) Fiscal Year 2009 Expenditure Plan." As required by the act, we reviewed the plan and on March 12 and March 13, 2009, briefed staff of the Senate and House Appropriations Subcommittees, respectively, on the analysis of whether the plan satisfied the 12 specified legislative conditions."

Testimony issued by the Government Accountability Office with an abstract that begins "Since 1990, GAO has designated the Department of Defense's (DOD) management of its major weapon acquisitions as a high-risk area; however DOD's problems delivering weapon systems on time, at the estimated cost, in the planned amounts, and with the promised performance go back decades. Congress and DOD have continually explored ways to improve acquisition outcomes, yet problems persist. The committee asked GAO to testify on measures needed to reform the acquisition of major weapon systems and related legislative proposals. Specifically, this statement will describe the poor outcomes on weapon system investments that make reform imperative; attributes of the requirements, funding, and acquisition processes that will need to change for reform to be effective; and positive steps that Congress and DOD have taken to improve weapon program outcomes. The statement will also examine other factors that should be considered as the committee moves forward with its reform efforts. The testimony is drawn from GAO's body of work on DOD's requirements, funding, and acquisition processes. GAO has made numerous recommendations aimed at improving DOD's management of its major weapon acquisitions, but it is not making any new recommendations in this …

Testimony issued by the Government Accountability Office with an abstract that begins "The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides resources to the Social Security Administration (SSA) to help replace its National Computer Center. This data center, which is 30 years old, houses the backbone of the agency's automated operations, which are critical to providing benefits to nearly 55 million people, issuing Social Security cards, and maintaining earnings records. The act makes $500 million available to SSA for the replacement of its National Computer Center and associated information technology (IT) costs. In this testimony, GAO was asked to comment on key IT management capabilities that will be important to the success of SSA's data center initiative. To do so, GAO relied on previously published products, including frameworks that it has developed for analyzing IT management areas. GAO has not performed a detailed examination of SSA's plans for this initiative, so it is not commenting on the agency's progress or making recommendations."

Testimony issued by the Government Accountability Office with an abstract that begins "The American Recovery and Reinvestment Act of 2009 (Recovery Act) provided $48.1 billion in additional spending at the Department of Transportation (DOT) for investments in transportation infrastructure, including highways, passenger rail, and transit. This statement provides a general overview of (1) selected states' use of Recovery Act funds for highway programs, (2) the approaches taken by these states to ensure accountability for these funds, and (3) the selected states' plans to evaluate the impact of the Recovery Act funds that they receive for highway programs. This statement is based on work in which GAO examined the use of Recovery Act funds by a core group of 16 states and the District of Columbia, representing about 65 percent of the U.S. population and two-thirds of the intergovernmental federal assistance available through the Act. GAO issued its first bimonthly report on April 23, 2009."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the potential viability of high speed rail in the United States. Federal and other decision makers have had a renewed interest in how high speed rail might fit into the national transportation system and address increasing mobility constraints on highways and at airports due to congestion. This testimony is based on our report issued March 19, 2009, entitled High Speed Passenger Rail: Future Development Will Depend on Addressing Financial and Other Challenges and Establishing a Clear Federal Role. In preparing the report, we reviewed federal legislation; interviewed federal, state, local, and private sector officials, as well as U.S. project sponsors; and reviewed high speed rail development in France, Japan, and Spain. More detailed information on our scope and methodology appears in the March 19, 2009, report. We conducted our work in accordance with generally accepted government auditing standards. This statement focuses on (1) the factors affecting the economic viability of high speed rail projects, including difficulties in determining the economic viability of proposed projects; (2) the challenges in developing and financing high speed rail systems; and (3) the federal role in the potential development of …

Testimony issued by the Government Accountability Office with an abstract that begins "Our nation's wildland fire problems have worsened in the past decade. The Forest Service within the Department of Agriculture and four agencies within the Department of the Interior (Interior) are responsible for managing fires on federal lands. Federal appropriations to these agencies for wildland fire management have more than doubled since the late 1990s, averaging $2.9 billion annually in recent years. Rising wildland fire costs have challenged the agencies to meet their land management responsibilities. This testimony, based on previous GAO reports, discusses (1) the budgetary and programmatic effects of the increasing cost of fire management activities and (2) steps the agencies could take to help contain wildland fire expenditures and steps they could take, and Congress could consider, to reduce the need to transfer funds from other programs."

Other written product issued by the Government Accountability Office with an abstract that begins "The new President, the new Congress, and the American people have been understandably focused on addressing problems with financial markets and responding to the economic downturn. However, the nation will need to apply the same level of intensity to the nation's long-term fiscal challenge. As shown in the figure below and the attached charts, GAO's updated simulations continue to show escalating and persistent debt that illustrates the long-term fiscal outlook is unsustainable. By 2025, debt held by the public under the Alternative simulation exceeds the historical high reached in the aftermath of World War II."

Testimony issued by the Government Accountability Office with an abstract that begins "n 2008, the cumulative cost growth in the Department of Defense's portfolio of 96 major defense acquisition programs was $296 billion and the average delay in delivering promised capabilities to the warfighter was 22 months. These poor outcomes mean that other critical defense and national priorities may go unfunded and that warfighters may go without the equipment they need to counter the changing threats that they face. GAO has examined extensively the issues in DOD's weapon system programs from the perspective of best practices in product development, and believes that significant improvements are possible. Because the ability to measure knowledge, processes, and outcomes is critical to achieving these improvements, GAO has used metrics to review the management and health of these programs from within the framework of best practices. This testimony discusses: 1) "knowledge metrics," used to determine how well programs manage technology, design, and manufacturing risks; 2) outcome metrics--concerning cost, schedule, and capability--that serve as "health indicators" of how well programs are being executed in terms of predicted outcomes; and 3) the prerequisites that GAO believes must be met in order for a program's plans and goals …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) is in the process of implementing its new human capital system for managing civilian personnel--the National Security Personnel System (NSPS). Key components of NSPS include compensation, classification, and performance management. Implementation of NSPS could have far-reaching implications, not just for DOD, but for civil service reform across the federal government. As of February 2009, about 205,000 civilian employees were under NSPS. Based on GAO's prior work reviewing performance management in the public sector, GAO developed an initial list of safeguards that NSPS should include to ensure it is fair, effective, and credible. In 2008, Congress directed GAO to evaluate, among other things, the extent DOD implemented accountability mechanisms, including those in 5 U.S.C. section 9902(b)(7) and other internal safeguards in NSPS. This statement is based on GAO's September 2008 report, which determined (1) the extent to which DOD has implemented internal safeguards to ensure NSPS was fair, effective, and credible; and (2) how DOD civilians perceive NSPS and what actions DOD has taken to address these perceptions. For that report, GAO analyzed relevant documents and employee survey results; interviewed appropriate officials; and conducted …

Testimony issued by the Government Accountability Office with an abstract that begins "The Deepwater Program is intended to recapitalize the Coast Guard's fleet and includes efforts to build or modernize five classes each of ships and aircraft, and procure other key capabilities. In 2002, the Coast Guard contracted with Integrated Coast Guard Systems (ICGS) to manage the acquisition as systems integrator. After the program experienced a series of failures, the Coast Guard announced in April 2007 that it would take over the lead role, with future work on individual assets to be potentially bid competitively outside of the existing contract. A program baseline of $24.2 billion was set as well. In June 2008, GAO reported on the new approach and concluded that while these steps were beneficial, continued oversight and improvement was necessary. The Coast Guard has taken actions to address the recommendations in that report. This testimony updates key issues from prior work: (1) Coast Guard program management at the overall Deepwater Program and asset levels; (2) how cost, schedules, and capabilities have changed from the 2007 baseline and how well costs are communicated to Congress; and (3) Coast Guard efforts to manage and build its acquisition workforce. GAO …