Testimony issued by the General Accounting Office with an abstract that begins "The events of September 11 imposed new demands on the federal budget, while pent-up demands from years of fighting deficits remain. In the past, GAO has suggested four broad principles for a budget process. That process should (1) provide information on the long-term impact of decisions, both macro--linking fiscal policy to the long-term economic outlook--and micro--providing recognition of the long-term spending implications of government commitments; (2) provide information and focus on important macro trade-offs--e.g., between investment and consumption; (3) provide information to make informed trade-offs between missions and between the different policy tools of government; and (4) be enforceable, provide for control and accountability, and be transparent, using clear, consistent definitions. New rules and goals will be necessary to ensure fiscal discipline and to focus on long term implications of decisions. The federal government still needs a decision-making framework to evaluate choices between today's and future needs. Amending the current Budget Enforcement Act without setting realistic caps and addressing mandatory programs is unlikely to be successful because the original act used limited actions to achieve a balanced budget. A budget process appropriate for the early 21st century needs …

Testimony issued by the General Accounting Office with an abstract that begins "In the wake of the Enron collapse and the proliferation of earnings restatements and pro forma earnings assertions by other companies, questions are being raised about the soundness of private sector financial reporting, auditor independence, and corporate governance. In addressing these issues, the government's role could range from direct intervention to encouraging non-governmental and private-sector entities to adopt practices that would strengthen public confidence. GAO believes that Congress should consider a holistic approach that takes into account the many players and interrelated issues that brought about the Enron situation."

Testimony issued by the General Accounting Office with an abstract that begins "Welfare reform significantly changed federal policy for low-income families with children and established a five-year lifetime limit on cash assistance. Welfare reform also extended transitional Medicaid assistance through 2001. States have implemented various initiatives to help families move from cash assistance to the workforce, including some enhancements to transitional Medicaid. These initiatives likely helped to cut cash assistance caseloads by more than half from 1996 through mid-2001. Low-wage or part-time jobs--which are common for newly working individuals--often do not come with affordable health insurance, thus making transitional Medicaid coverage an important option. The implementation of transitional Medicaid assistance varied across the 21 states that GAO reviewed. State practices enhanced beneficiaries' ability to retain Medicaid coverage. However, many families did not receive their full transitional Medicaid assistance benefits because they failed to report their income three times during the 12-month period of coverage. Amending the Medicaid statute to provide states with greater flexibility to ease income-reporting requirements, as has been done for other aspects of the Medicaid program, could facilitate uninterrupted health insurance coverage for families moving from cash assistance to the workforce."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony is based on a GAO report (GAO-02-156) that analyzed key characteristics of women and men in management positions, identified the representation of women in management positions in specific industries, and identified salary differences between men and women in full-time management jobs. Female managers in the 10 industries GAO examined were younger, less educated, were more likely to work part-time, and were less likely to be married than were male managers. In five of these industries, GAO found no statistically significant differences between the percent of industry positions filled by women and the percent of management positions filled by women. In four of the industries, women were less represented in management positions. In one of these industries, women were represented in management positions to a greater degree than they were in all positions in the industry. Full-time female managers earned less than full-time male managers in all 10 industries, after controlling for education, age, marital status, and race. GAO was unable to take years of experience into account."

Testimony issued by the General Accounting Office with an abstract that begins "Because of Amtrak's worsening financial condition, there is growing agreement that the current mission, funding, and structure for providing intercity passenger rail needs to be changed. Intercity passenger rail has the potential to complement other more heavily used modes of transportation in markets where rail transport can be competitive. The potential benefits include reduced air and highway congestion, reduced pollution caused by automobiles, reduced fuel consumption and energy dependency, and greater safety. Intercity passenger rail systems, like other intercity transportation systems, are expensive. Amtrak has called for $30 billion in federal capital support over 20 years to upgrade its operations and to invest in high-speed rail corridors. Amtrak also estimates that the cost to fully develop the 10 federally designated high-speed rail corridors and Amtrak's Northeast Corridor could exceed $50 billion over 20 years. Congress must determine if and how intercity passenger rail fits into the nation's transportation system. and what level of federal investment should be made in light of other competing national priorities. Key initial steps in this framework could include (1) establishing clear, non-conflicting goals for federal support of intercity passenger rail systems; (2) establishing …

Testimony issued by the General Accounting Office with an abstract that begins "The District of Columbia Family Act of 2001 was enacted to (1) redesignate the Family Division of the Superior Court of the District of Columbia as the Family Court of the Superior Court, (2) recruit trained and experienced judges to serve in the Family Court, and (3) promote consistency and efficiency in the assignment of judges to the Family Court and in its consideration of actions and proceedings. GAO found the Superior Court made progress in planning the transition of its Family Division to a Family Court, but some challenges remain. The transition requires the timely completion of a series of interdependent plans to obtain and renovate physical space for the court and its functions. Adequate space may not be available to support the additional judges the Family Court needs. Furthermore, the development of the Integrated Justice Information System will be critical for the Family Court's operational effectiveness, its ability to evaluate its performance, and to meet the judicial goals mandated by the Family Court Act."

Testimony issued by the General Accounting Office with an abstract that begins "Federal, state, and local governments share responsibility for terrorist attacks. However, local government, including police and fire departments, emergency medical personnel, and public health agencies, is typically the first responder to an incident. The federal government historically has provided leadership, training, and funding assistance. In the aftermath of September 11, for instance, one-quarter of the $40 billion Emergency Response Fund was earmarked for homeland security, including enhancing state and local government preparedness. Because the national security threat is diffuse and the challenge is highly intergovernmental, national policymakers must formulate strategies with a firm understanding of the interests, capacity, and challenges facing those governments. The development of a national strategy will improve national preparedness and enhance partnerships between federal, state, and local governments. The creation of the Office of Homeland Security is an important and potentially significant first step. The Office of Homeland Security's strategic plan should (1) define and clarify the appropriate roles and responsibilities of federal, state, and local entities; (2) establish goals and performance measures to guide the nation's preparedness efforts; and (3) carefully choose the most appropriate tools of government to implement the national strategy …

Testimony issued by the General Accounting Office with an abstract that begins "The Violence Against Women Office (VAWO) was created in to lead the national effort to end violence against women, including domestic violence, sexual assault, and stalking. Since its inception, VAWO has grown both in the number of discretionary grants awarded and dollars awarded for those grants. Unfortunately, monitoring activities and impact evaluation data provide little basis to assess program results. Both VAWO and the Office of Justice Programs made a commitment to improve, citing reorganization plans that anticipate management information system as the foundation for improved grants management. However, reorganization and management information tools and are only as good as the management that wields them. Commitment to improvement and oversight are needed to ensure progress."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses GAO's fiscal year 2001 performance and results, current challenges and future plans, and GAO's budget request for fiscal year 2003."

Testimony issued by the General Accounting Office with an abstract that begins "The Veterans Equitable Resource Allocation (VERA) system allocated $17.8 billion of its $20.3 billion health care budget to 22 regional health care networks in fiscal year 2001. Before Vera resources were allocated to facilities on the basis of their historical expenditures. By aligning resources with workloads VERA shifted about$921 million among VA's networks in fiscal year 2001. VERA's design is reasonable for equitably allocating resources, but improvements could better allocate comparable resources for comparable workloads. VERA's allocations are based primarily on network workload, with adjustments made for factors beyond the control of network management. These include the health care needs of veterans and some local cost differences. VERA's design also protects patients from the effects of network budget shortfalls. However, GAO found that $200 million annually that could be reallocated to better align network resources with workloads. First, VERA's measurement of network workload is not accurate enough to determine each network's allocation because VERA excludes most veterans with higher incomes who do not have service-connected disabilities--about one-fifth of VA's workload. Second, VERA does not accurately adjust for cost differences among networks for differences in patients' health care needs …

Testimony issued by the General Accounting Office with an abstract that begins "In addition to protecting investors and the integrity of the securities market, the Securities and Exchange Commission (SEC), along with the Department of Commerce, the Office of the U.S. Trade Representative (USTR), and the Department of Agriculture, monitors and enforces the nation's trade agreements. Markets have become more complex, global, and technology-driven. At the same time SEC's workload is growing at a rate much faster than staffing. Workload and staffing imbalances have affected most aspects of SEC's regulatory and supervisory activities, from its inhouse technological capabilities to its enforcement actions against market participants. Other agencies that monitor U.S. trade agreements also face human capital challenges. Since the early 1980s, the United States has entered into several hundred trade agreements that have dramatically increased monitoring and enforcement workloads at USTR, Commerce, and Agriculture. This workload has continued to grow during the past two years as a result of major multilateral, regional, and bilateral trade negotiations. These agencies' efforts to monitor and enforce trade agreements are hampered by a lack of sufficient staff with appropriate expertise. Furthermore, they did not receive adequate support from other agencies and had difficulty obtaining …

Testimony issued by the General Accounting Office with an abstract that begins "The District of Columbia school system, with help from the U.S. Army Corps of Engineers (Corps), has made considerable progress in fixing roofs, replacing windows, repairing bathrooms, and completing other maintenance work that has been neglected for years. The D.C. school system is now addressing the more complex task of modernizing--either through renovation or through new construction--virtually every public school in the city. In April 1998, the school system entered into an agreement with the Corps for engineering, procurement, and technical assistance. In December 2000, the D.C. Board of Education approved a facility master plan that would modernize 10 schools annually over 10 to 15 years at a cost of $1.3 billion. Historically significant buildings cannot be razed, however, and are costly to redesign. So far, construction costs are running significantly higher than estimated by the facility master plan. The scope of the work has been expanded to recognize community needs for some special facilities. In examining the Washington Gas Light Company's records of quality inspections for the work it managed for the school system, GAO found that 77 percent of all projects lacked evidence of quality inspections. …

Testimony issued by the General Accounting Office with an abstract that begins "Noninstitutional long-term care services are delivered by the Department of Veterans Affairs (VA) to veterans in their own homes and other community locations. The Veterans Millennium Health Care and Benefits Act requires VA to offer long-term care services to eligible veterans, including services provided in noninstitutional settings. More than two years after the act's passage, VA has yet to offer eligible veterans adult day health care, geriatric evaluation, or respite care. Although VA published proposed regulations that would make these services available in noninstitutional settings to eligible veterans, the regulations had not been finalized as of April 17, 2002. To be responsive before its draft regulations were made final, VA issued a policy directive requiring that these three services be available in noninstitutional settings. GAO found, however, that both the services required by the act and VA's other noninstitutional services were unevenly available across the VA system."

Testimony issued by the General Accounting Office with an abstract that begins "The terrorist attacks of September 11 have heightened concerns about the physical security of federal buildings and the need to protect those who work in and visit these facilities. These concerns have been underscored by reports of long-standing vulnerabilities, including weak controls over building access. There are several commercially available security technologies that can be deployed, ranging from turnstiles, to smart cards, to biometric systems. Although many of these technologies can provide highly effective technical controls, the overall security of a federal building will depend on robust risk management processes and implementing the three integral concepts of a holistic security process: protection, detection, and reaction."

Testimony issued by the General Accounting Office with an abstract that begins "In the aftermath of the September 11 terrorist attacks, the Administration took several steps to strengthen homeland security, including the creation of an Office of Homeland Security (OHS). The success of a homeland security strategy requires all levels of government and the private sector to communicate and cooperate with one another. The federal government must formulate realistic budget and resource plans to support the implementation of an efficient and effective homeland security program. A fundamental review of existing programs and operations can create the necessary fiscal flexibility by weeding out out-dated, poorly targeted, or inefficient programs. Although Congress called upon GAO to evaluate the effectiveness of OHS programs, GAO has experienced difficulty in gaining access to this information."

Testimony issued by the General Accounting Office with an abstract that begins "The Housing Affordability for America Act of 2002 establishes risk-based capital requirements for the Mutual Mortgage Insurance Fund of the Federal Housing Administration (FHA). Through the fund, FHA operates a single-family insurance program that helps millions of Americans buy homes. The Fund's estimated value rose dramatically in 1999, prompting proposals to spend current resources or reduce net cash flows into the Fund. The value of the Fund at the end of fiscal year 1999 was $15.8 billion. This capital ratio of 3.20 percent of the unamortized insurance-in-force exceeded the minimum required capital ratio of two percent. A two-percent capital ratio appears sufficient to withstand moderately severe economic downturns that could lead to worse-than-expected loan performance. Determining an appropriate capital ratio depends on the level of risk Congress wishes the Fund to withstand. FHA faces the failure of borrowers to perform, or credit risk, and the risk of managerial shortcomings, or operational risk. By defining the risk that the Fund must withstand, the act will define actuarial soundness and help FHA manage the Fund."

Testimony issued by the General Accounting Office with an abstract that begins "As required by law, the Department of Energy (DOE) has been investigating a site at Yucca Mountain, Nevada, to determine its suitability for disposing of highly radioactive wastes in a mined geologic repository. If the site is approved, DOE must apply to the Nuclear Regulatory Commission (NRC) for authorization to construct a repository. If the site is not approved for a license application, or if NRC denies a license to construct a repository, the administration and Congress will have to consider other options for the long-term management of existing and future nuclear wastes. DOE is not prepared to submit an acceptable license application to the NRC within the statutory limits that would take effect if the site is approved. DOE is unlikely to achieve its goal of opening a repository at Yucca Mountain by 2010. Sufficient time would not be available for DOE to obtain a license from NRC and construct enough of the repository to open it in 2010. Another key factor is whether DOE will be able to obtain the increases in annual funding that would be required to open the repository by 2010. DOE currently …

Testimony issued by the General Accounting Office with an abstract that begins "The Temporary Assistance for Needy Families (TANF) block grant makes $16.5 billion available to states each year, regardless of changes in the number of people receiving benefits. To qualify for their full TANF allotments, states must spend a certain amount of state money, referred to as maintenance-of-effort funds. As states implemented work-focused reforms during the strong economy of the 1990s, welfare caseloads dropped by more than 50 percent. GAO found that most former welfare recipients were employed at some point after leaving welfare, typically with earnings that did not raise them above the poverty level. Under welfare reform, spending shifted from monthly cash payments to services, such as child care and transportation. This shift reflects two key features of reform. First, many states have increased spending to engage more welfare families in work-related activities and to provide more intensive services. Second, many states have increased their efforts to provide services to low-income families not receiving welfare. Services for these families include child care, case management, and job retention and advancement services for families who have recently left welfare for employment as well as other low-income working families. Although …

Testimony issued by the General Accounting Office with an abstract that begins "The Social Security numbers (SSN), originally created in 1936 to track workers' earnings and eligibility for Social Security benefits is now used for many other purposes by both government and private sectors. The growth in electronic record keeping and the availability of information over the Internet, combined with the rise in identity theft, have heightened public concern about how their SSNs are being used. Federal agencies use SSNs to manage records, verify the eligibility of benefit applicants, collect outstanding debts, and do research and program evaluation. GAO found that federal laws designed to protect SSNs are not being followed consistently, Moreover, courts at all levels of government and offices at the state and county level maintain records that contain SSNs for the purpose of making these records available to the public. Recognizing that these SSNs may be misused, some government entities have taken steps to protect the SSNs from public display. At the same time, however, some government entities are considering making more public records available on the Intranet. Ease of access to electronically available files could encourage more information gathering from public records on a broader scale …

Testimony issued by the General Accounting Office with an abstract that begins "The General Services Administration's (GSA) Federal Supply Service (FSS) and Federal Technology Service (FTS) help agencies to purchase telephone and computer systems, motor vehicles, travel, and everyday supplies valued at more than $30 billion annually. FSS and FTS take different approaches to filling agency customers' requirements but, in the information technology area, they provide similar goods and services and deal with many of the same vendors. Although overlapping programs with similar services would appear to create the potential for inefficiencies, GSA has little hard data with which to assess the situation. GSA has begun to provide more useful information on the performance of FSS and FTS and to identify more efficient operations. If successful, these initiatives also may provide a road map for assessing the performance of other interagency purchasing programs."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Internal Revenue Service (IRS) fiscal year 2003 budget request for the 2002 tax filing season. GAO found that IRS's plans for hiring and redirecting staff may be optimistic because budgets are prepared so far in advance of the fiscal year involved. IRS assumed (1) labor and nonlabor savings of 2,287 staff years and $157.5 million and (2) additional savings of $38.5 million from better business practices. IRS's justification does not always adequately link the resources being requested and the agency's performance goals. Although IRS provided adequate support to justify the $450 million request for its multiyear capital account for business systems modernization, it did not adequately support $1.63 billion of the $1.68 billion requested for its information systems. In the area of agency performance, GAO found that IRS has generally processed returns smoothly and seen continued growth in electronic filing. The one exception to smooth processing has been the large number of errors related to the rate reduction credit. IRS has had to correct millions of returns due to the credit, and taxpayers' call about the credit have greatly increased the demand on IRS's …

Testimony issued by the General Accounting Office with an abstract that begins "The national school lunch and breakfast programs provide inexpensive or free meals to more than 27 million children each day. During the 1990s, nearly 300 outbreaks of foodborne illness at the nation's schools sickened 16,000 students. The rise in the number of school outbreaks mirrors a rise in the number of outbreaks in the overall population, according to the Centers for Disease Control and Prevention (CDC). Because the CDC data include outbreaks attributable to food brought from home or other sources, GAO could not determine the extent to which food served in the school meal programs caused reported outbreaks. Data from 1998 and 1999 do show, however, that most of the outbreaks during those years were caused by foods served through the school meal program. Foods contaminated with salmonella and Norwalk-like viruses were the most common causes of outbreaks. GAO found that the Department of Agriculture has not developed security measures to protect foods served at schools from deliberate contamination. The existing food safety system is a patchwork of protections that fall short in addressing existing and emerging food safety threats."

Testimony issued by the General Accounting Office with an abstract that begins "The Federal Property Asset Management Reform Act of 2002, will enhance federal real and personal property management and bring the policies and business practices of federal agencies into the 21st century. Available data show that the federal government owns hundreds of thousands of properties worldwide, including military installations, office buildings, laboratories, courthouses, embassies, postal facilities, national parks, forests, and other public lands, estimated to be worth billions of dollars. Most of this government-owned real property is under the custody and control of eight agencies--the Department of Agriculture, Defense, Energy, the Interior, and Veterans Affairs; General Services Administration; the Tennessee Valley Authority; and the U.S. Postal Service. Federal property managers have a large deferred maintenance backlog, obsolete and underutilized properties, and changing facility needs due to rapid advances in technology. It is important that real property-holding agencies link their real property strategic plans to their missions and related capital management and performance plans; ensure that senior real property officers have the knowledge, skills, and expertise needed to effectively perform their duties; are accountable for the reliability, usefulness, and timeliness of their data; and adopt an effective process to monitor …

Testimony issued by the General Accounting Office with an abstract that begins "Since the advent of the all-volunteer Army in 1973, the number of servicemembers with spouses and children has grown significantly. Although the Department of Defense (DOD) has responded positively to this change, GAO believes that some current family benefits could be strengthened. For example, despite improvements to the quality of military child care centers, DOD needs to further expand child care capacity. Moreover, DOD faces challenges in increasing awareness and use of these benefits. GAO compared the military's benefits with those of the private sector, including retirement pay, health care, life insurance, and paid time-off, and found no significant gaps in the benefits offered to active duty servicemen and women. In fact, some military benefits exceed those offered by the private sector."