Testimony issued by the Government Accountability Office with an abstract that begins "In 2004, the Forest Service reported to the Congress that it had a backlog of nearly 900,000 acres of land needing reforestation--the planting and natural regeneration of trees. Reforestation and subsequent timber stand improvement treatments, such as thinning trees and removing competing vegetation, are critical to restoring and improving the health of our national forests after timber harvests or natural disturbances such as wildland fires. GAO was asked to (1) examine the reported trends in federal lands needing reforestation and timber stand improvement, (2) identify the factors that have contributed to these trends, and (3) describe any potential effects of these trends that Forest Service officials have identified. This testimony is based on GAO's report Forest Service: Better Data Are Needed to Identify and Prioritize Reforestation and Timber Stand Improvement Needs (GAO-05-374), being released today."

Testimony issued by the Government Accountability Office with an abstract that begins "Congress's formation of the Air Traffic Organization (ATO) and the Joint Planning and Development Office (JPDO), both within the Federal Aviation Administration (FAA), represent the latest efforts to address the monumental challenges of modernizing the national airspace system (NAS) during the first quarter of the twenty-first century. For more than two decades, FAA has been working to modernize the air traffic control (ATC) system, but projects have repeatedly missed cost, schedule, and performance targets. Consequently, ATC modernization has been on GAO's list of high-risk federal programs since 1995. The ATO's focus is on a rolling 10- year outlook to operate and modernize the NAS. By contrast, the JPDO's vision is longer term, focused on coordinating the research efforts of diverse federal agencies to achieve a common goal of meeting potential air traffic demands in 2025. This statement discusses (1) GAO's assessment of the ATO's efforts to date in addressing some of the key challenges for the ATC modernization program and (2) challenges that lie ahead for the ATO and options that it could consider in addressing the needs of the NAS over the next decade, as well as …

Testimony issued by the Government Accountability Office with an abstract that begins "Serious concerns exist regarding the risk management practices and the federal oversight of the housing government-sponsored enterprises (GSE)--Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System (FHLBank System), which had combined obligations of $4.6 trillion as of year-end 2003. In 2003, Freddie Mac disclosed significant accounting irregularities. In 2004, the Office of Federal Housing Enterprise Oversight (OFHEO) cited Fannie Mae for accounting irregularities and earnings manipulation. Fannie Mae has to restate its financial statements for 2001-2004 and OFHEO has required the GSE to develop a capital restoration plan. Also in 2004, the FHLBanks of Chicago and Seattle entered into written agreements with their regulator, the Federal Housing Finance Board (FHFB), to implement changes to enhance their risk management. To assist Congress in its housing GSE oversight, this testimony provides information on GSEs' missions and risks, the current regulatory structure, and proposed regulatory reforms."

Testimony issued by the Government Accountability Office with an abstract that begins "Wildland fires are increasingly threatening communities and ecosystems. In recent years, they have become more intense due to excess vegetation that has accumulated, partly as a result of past suppression efforts. The cost to suppress these fires is increasing and, as more people move into fire-prone areas near wildlands, the number of homes at risk is growing. During these wildland fires, effective communications among the public safety agencies responding from various areas is critical, but can be hampered by incompatible radio equipment. This testimony discusses (1) progress made and future challenges to managing wildland fire, (2) measures to help protect structures, and (3) the role of technology in improving responder communications during fires. It is based on two GAO reports: Wildland Fire Management: Important Progress Has Been Made, but Challenges Remain to Completing a Cohesive Strategy (GAO-05-147, Jan. 14, 2005) and Technology Assessment: Protecting Structures and Improving Communications during Wildland Fires (GAO-05-380, Apr. 26, 2005)."

Testimony issued by the Government Accountability Office with an abstract that begins "Brownfields are properties whose re-use may be hindered by the threat of contamination. Cleaning up and redeveloping these properties can protect human health and the environment, and provide economic benefits. The Environmental Protection Agency (EPA) provides grants to state and local governments and others for site assessments, job training, revolving loans, cleanups, and for assisting state efforts. This testimony is based on GAO's report, Brownfield Redevelopment: Stakeholders Report That EPA's Program Helps to Redevelop Sites, but Additional Measures Could Complement Agency Efforts (GAO- 05-94, December 2, 2004). GAO (1) obtained stakeholders' views on EPA's contribution to brownfield cleanup and redevelopment, (2) determined the extent to which EPA measures program accomplishments, and (3) obtained views on options to improve or complement EPA's program. Stakeholders GAO surveyed included grant recipients, state program officials, interest groups, real estate developers, and others."

Testimony issued by the Government Accountability Office with an abstract that begins "For many years, GAO has reported that poor information security is a widespread problem that has potentially devastating consequences. Accordingly, since 1997, GAO has identified information security as a governmentwide high-risk issue in reports to Congress--most recently in January 2005. Concerned with accounts of attacks on commercial systems via the Internet and reports of significant weaknesses in federal computer systems that made them vulnerable to attack, Congress passed the Federal Information Security Management Act of 2002 (FISMA), which permanently authorized and strengthened the federal information security program, evaluation, and reporting requirements established for federal agencies. FISMA requires that agencies report annually to OMB who issues guidance for that reporting process. The Department of Homeland Security (DHS), the third largest agency in the federal government, uses a variety of major applications and general systems in support of operational and administrative requirements. This testimony discusses DHS's progress and challenges in implementing FISMA as reported by the agency and its Inspector General (IG)."

Testimony issued by the Government Accountability Office with an abstract that begins "Federal spending on information technology (IT) is over $60 billion this year and is expected to continue to rise. Accordingly, it is essential that federal IT investments are managed efficiently. Of the 1,200 major IT projects in the President's Budget for Fiscal Year 2005, OMB stated that it had placed about half--621 projects, representing about $22 billion--on a Management Watch List to focus attention on mission-critical IT investments that need management improvements. GAO was asked to testify on the findings and recommendations made in a report that it recently completed (GAO-05-276), which describes and assesses OMB's processes for (1) placing projects on its Management Watch List and (2) following up on corrective actions established for projects on the list."

Testimony issued by the Government Accountability Office with an abstract that begins "In September and October 2001, letters laced with Bacillus anthracis (anthrax) spores were sent through the mail to two U.S. senators and to members of the media. These letters led to the first U.S. cases of anthrax disease related to bioterrorism. In all, 22 individuals, in four states and Washington, D.C., contracted anthrax disease; 5 died. These cases prompted the Subcommittee to ask GAO to describe and assess federal agencies' activities to detect anthrax in postal facilities, assess the results of agencies' testing, and assess whether agencies' detection activities were validated."

Testimony issued by the Government Accountability Office with an abstract that begins "In January 2005, GAO released its 2005 high-risk series update report for the 109th Congress. GAO's high-risk series has increasingly focused on major government programs and operations that need urgent attention and transformation to ensure that the U.S. government functions in the most economical, efficient, and effective manner possible. GAO also emphasizes those federal programs and operations that are at high risk because of their greater vulnerabilities to fraud, waste, abuse, and mismanagement. Of the 25 areas on GAO's 2005 high-risk list, 8 are Department of Defense (DOD) programs or operations and 6 are governmentwide high-risk areas for which DOD shares some responsibility. These high-risk areas touch on all of DOD's major business operations. DOD's failure to effectively address these many high-risk areas results in billions of dollars of waste each year and inadequate accountability to Congress and the American people. Congress asked GAO to provide its views on (1) DOD's high-risk areas, including those it shares responsibility for with other federal agencies; (2) an emerging challenge for DOD that merits close attention, involving DOD's approach to risk management; and (3) key elements, such as a chief management …

Testimony issued by the Government Accountability Office with an abstract that begins "Since fiscal year 1995, the John F. Kennedy Center for the Performing Arts (Kennedy Center) has received nearly $203 million in federal funds to complete capital projects and intends to request an additional $43 million in appropriations through fiscal year 2008. The Kennedy Center's Comprehensive Building Plan identifies these capital projects as necessary to renovate the Center and to meet or exceed relevant life safety and disabled access regulations. GAO was asked to examine (1) the progress the Center has made in completing key capital projects within estimated costs and the information it has communicated about this progress to key stakeholders; and (2) the status of the Center's plans to address fire life safety and disabled access requirements."

Testimony issued by the Government Accountability Office with an abstract that begins "The tax-exempt sector under section 501(c) of the Internal Revenue Code covers over a million-and-a-half entities of varying sizes and purposes. Its diversity allows it to address the needs of many citizens. To help it do so, Congress and some in the tax-exempt sector itself encourage good governance practices by exempt entities. Transparency over exempt entities' activities is aided by public access to their annual tax returns. As the nation's tax administrator, the Internal Revenue Service (IRS) has a key role in overseeing this sector. Oversight can help ensure adherence to exempt purposes, protect against abuses, and sustain public support for the sector. The Chairman of the House Committee on Ways and Means asked GAO to address (1) the growth of the section 501(c) tax-exempt sector; (2) the role of governance and transparency in ensuring that tax-exempt entities function effectively and with integrity; (3) IRS's capacity for overseeing the exempt sector, including its results and efforts to address critical compliance problems; and (4) states' oversight and their relationship with IRS in overseeing the tax-exempt sector."

Testimony issued by the Government Accountability Office with an abstract that begins "In fiscal years 2002 through 2005, the Office for Domestic Preparedness (ODP) within the Department of Homeland Security managed first responder grants totaling approximately $10.5 billion. The bulk of this funding has been for statewide grants through the State Homeland Security Grant Program and urban area grants through the Urban Areas Security Initiative. This testimony provides information on the history and evolution of these two grant programs, particularly with respect to ODP grant award procedures; timelines for awarding and transferring grant funds; and accountability for effective use of grant funds."

Testimony issued by the Government Accountability Office with an abstract that begins "In the past, governments worldwide owned, operated, and regulated air navigation services, viewing air traffic control as a governmental function. But as nations faced increasing financial strains, many governments decided to shift the responsibility to an independent air navigation service provider (ANSP) that operates along commercial lines. As of March 2005, 38 nations worldwide had commercialized their air navigation services, fundamentally shifting the operational and financial responsibility for providing these services from the national government to an independent commercial authority. GAO selected five ANSPs--in Australia, Canada, Germany, New Zealand, and the United Kingdom--to examine characteristics and experiences of commercialized air navigation services. These ANSPs used different ownership structures and varied in terms of their size, amount of air traffic handled, and complexity of their airspace. This testimony, which is based on ongoing work, addresses the following questions: (1) What are common characteristics of commercialized ANSPs? (2) What do available data show about how the safety, cost, and efficiency of air navigation services have changed since commercialization? (3) What are some initial observations that can be made about the commercialization of air navigation services?"

Testimony issued by the Government Accountability Office with an abstract that begins "In the 21st century our nation faces a growing fiscal imbalance. A demographic shift will begin to affect the federal budget in 2008 as the first baby boomers become eligible for Social Security benefits. This shift will increase as spending for federal health and retirement programs swells. Long-term commitments for these and other federal programs will drive a massive imbalance between spending and revenues that cannot be eliminated without tough choices and significant policy changes. Continued economic growth is critical and will help to ease the burden, but the projected fiscal gap is so great that it is unrealistic to expect that we will grow our way out of the problem. Early action to change existing programs and policies would yield the highest fiscal dividends and provide a longer period for prospective beneficiaries to make adjustments in their own planning. One of the potential policy changes is assisting older workers who want to stay in the workforce past retirement age. The Chairman and Ranking Member of the Senate Special Committee on Aging asked GAO to discuss demographic and labor force trends and the economic and fiscal need to …

Testimony issued by the Government Accountability Office with an abstract that begins "To ensure that essential government services are available in emergencies, federal agencies are required to develop continuity of operations plans. According to guidance from the Federal Emergency Management Agency (FEMA), which is responsible for providing guidance for and assessing agency continuity plans, a key element of a viable capability is the proper identification of essential functions. GAO previously reported on agency continuity plan compliance, and determined that a number of agencies and their components did not have continuity plans in place on October 1, 2002, and those that were in place did not generally comply with FEMA's guidance. GAO was asked to testify on its most recent work in continuity planning, which is discussed in a separate report, being released today (GAO-05-577). In this report, GAO reviewed to what extent (1) major federal agencies used sound practices to identify and validate their essential functions, (2) agencies had made progress since 2002 in improving compliance with FEMA guidance, and (3) agency continuity of operations plans addressed the use of telework arrangements (in which work is performed at an employee's home or at a work location other than a traditional …

Testimony issued by the Government Accountability Office with an abstract that begins "The Internal Revenue Service's (IRS) recent estimate of the difference between what taxpayers timely and accurately paid in taxes and what they owed ranged from $312 billion to $353 billion for tax year 2001. IRS estimates it will eventually recover some of this tax gap, resulting in a net tax gap from $257 billion to $298 billion. The tax gap arises when taxpayers fail to comply with the tax laws by underreporting tax liabilities on tax returns; underpaying taxes due from filed returns; or "nonfiling," which refers to the failure to file a required tax return altogether or in a timely manner. The Chairman and Ranking Minority Member of the Senate Committee on Finance asked GAO to review a number of issues related to the tax gap. This testimony will address GAO's longstanding concerns regarding tax compliance; IRS's efforts to ensure compliance; and the significance of reducing the tax gap, including some steps that may assist with this challenging task. For context, this testimony will also address GAO's most recent simulations of the long-term fiscal outlook and the need for a fundamental reexamination of major spending and tax …

Testimony issued by the Government Accountability Office with an abstract that begins "According to the National Flood Insurance Program (NFIP), 90 percent of all natural disasters in the United States involve flooding. Because of the catastrophic and unpredictable nature of floods, private insurance companies do not typically cover flood losses. Congress established the NFIP in 1968 to provide an insurance alternative to disaster assistance in response to the escalating costs of repairing flood damage. During congressional hearings on provisions of the Flood Insurance Reform Act of 2004, several legislators testified on NFIP shortcomings, as reported by constituents whose properties had been flooded by Hurricane Isabel in September 2003. The act required GAO to study coverage provided under the NFIP. It also required the Federal Emergency Management Agency (FEMA), the administrator of the NFIP, to take steps to address concerns about coverage and claims procedures. Today's testimony is based on work in progress to address this mandate. It provides preliminary information on (1) the types of coverage limits, restrictions, and exclusions under the NFIP; (2) how FEMA, in partnership with private insurers, manages and oversees the NFIP and the views of selected private sector program managers on how the program is …

Testimony issued by the Government Accountability Office with an abstract that begins "Both the Presidential Commission on the U.S. Postal Service and GAO's past work have reported that universal postal service is at risk and that comprehensive postal reform legislation is needed to minimize the risk of a significant taxpayer bailout or dramatic postal rate increases. In April 2001, GAO added the Postal Service's (the Service) transformation efforts and long-term outlook to its High-Risk List. GAO has testified that comprehensive postal reform legislation is needed to clarify the Service's mission and role; enhance governance, transparency, and accountability; improve regulation of postal rates and oversight; help to ensure the rationalization of the Service's infrastructure and workforce; and make certain human capital reforms. The Service has made significant progress on some of its key challenges but postal reform legislation continues to be needed in order to facilitate a broader transformation effort. To help Congress and other stakeholders understand Service progress and the need for postal reform, GAO will focus on (1) Service progress since GAO put Service transformation efforts and long-term outlook on GAO's High-Risk List, (2) why comprehensive postal reform legislation is needed, and (3) key areas for comprehensive postal reform. …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony is in support of the fiscal year 2006 budget request for the U.S. Government Accountability Office (GAO). This request is necessary to help us continue to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the benefit of the American people. We are grateful to the Congress for providing us with the support and resources that have helped us in our quest to be a world-class professional services organization. We believe that investing in GAO produces a sound return and results in substantial benefits to the Congress and the American people. In the years ahead, our support to the Congress will likely prove even more critical because of the pressures created by our nation's current and projected budget deficit and long-term fiscal imbalance. These fiscal pressures will require the Congress to make tough choices regarding what the government should do, how it will do its work, who will help carry out its work in the future, and how government will be financed in the future. We summarized the larger challenges facing the …

Testimony issued by the Government Accountability Office with an abstract that begins "As part of its work to improve the management and performance of the federal government, GAO monitors progress and continuing challenges related to the President's Management Agenda (PMA). The Administration has looked to GAO's high-risk program to help shape various governmentwide initiatives, including the PMA. GAO remains committed to working with the Congress and the Administration to help address these important and complex issues."

Testimony issued by the Government Accountability Office with an abstract that begins "Terrorist attacks on chemical facilities could severely damage the U.S. economy and public health. About 15,000 facilities produce, use, or store large amounts of chemicals that pose the greatest risk to human health and the environment. While the Environmental Protection Agency (EPA) formerly had the lead role in federal efforts to ensure chemical facility security, the Department of Homeland Security (DHS) is now the lead federal agency responsible for coordinating government and private efforts to protect these facilities from terrorist attacks. This testimony is based on GAO's past work on chemical facility security and focuses on (1) the attractiveness of chemical facilities as terrorist targets, (2) their diversity and risks, (3) federal security requirements for these facilities, and (4) federal and industry efforts to improve facility security."

Other written product issued by the Government Accountability Office with an abstract that begins "In 1981, the Federal Aviation Administration (FAA) began a program to modernize the national airspace system and a primary component, the air traffic control (ATC) system. The ATC component of this program, which is designed to replace aging equipment and accommodate predicted growth in air traffic, has had difficulty for more than two decades in meeting cost, schedule, and performance targets. The performance-based Air Traffic Organization (ATO) was created in February 2004 to improve the management of the modernization effort. On October 7, 2004, GAO hosted a panel to discuss attempts to address the ATC modernization program's persistent problems. Participants discussed the factors that they believed have affected FAA's ability to acquire new ATC systems. Participants also identified steps that FAA's ATO could take in the short term to address these factors, as well as longer term steps that could be taken to improve the modernization program's chances of success and help the ATO achieve its mission. The participants included domestic and foreign aviation experts from industry, government, private think tanks, and academia. They are recognized for their expertise in aviation safety, economics, and engineering; transportation …

Testimony issued by the Government Accountability Office with an abstract that begins "In January 2004, Congress established the Millennium Challenge Corporation (MCC) to administer the Millennium Challenge Account. MCC's mission is to promote economic growth and reduce extreme poverty in developing countries. The act requires MCC to rely to the maximum extent possible on quantitative criteria in determining countries' eligibility for assistance. MCC will provide assistance primarily through compacts--agreements with country governments. MCC aims to be one of the top donors in countries with which it signs compacts. For fiscal years 2004 and 2005, Congress appropriated nearly $2.5 billion for the Millennium Challenge Corporation; for fiscal year 2006, the President is requesting $3 billion. GAO was asked to monitor MCC's (1) process for determining country eligibility, (2) progress in developing compacts, (3) coordination with key stakeholders, and (4) establishment of management structures and accountability mechanisms."

Testimony issued by the Government Accountability Office with an abstract that begins "In fiscal year 2004, the Congress appropriated $6.8 billion to serve 919,000 poor children through 1,680 Head Start grantees nationwide. Recent reports of financial improprieties at a number of Head Start programs around the country raised questions about the effectiveness of the oversight provided by the Department of Health and Human Services' (HHS) Administration for Children and Families (ACF) in identifying and resolving financial management weaknesses in Head Start grantees. This testimony discusses (1) the processes ACF uses to assess the programs' risks, (2) whether those processes could be improved to ensure the accuracy and reliability of the information ACF collects on its Head Start grantees, and (3) whether ACF ensures that grantees with financial management weaknesses correct those problems in a timely manner."