Correspondence issued by the Government Accountability Office with an abstract that begins "In recent years, several Hawaii-based conservation advocacy organizations and others have raised a variety of concerns about the conduct of members and staff of the Western Pacific Fishery Management Council (Western Pacific Council) related to lobbying and conflicts of interest, among other things. The Western Pacific Council is one of eight regional fishery management councils established by the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). The council is responsible for developing management plans for fisheries in federal waters off Hawaii, American Samoa, Guam, the Northern Mariana Islands, and other U.S. Pacific islands. The council has 13 voting members--including 5 designated state and federal fishery managers and 8 members of the public with expertise in commercial and recreational fishing and marine conservation who are appointed by the Secretary of Commerce. The council employs an executive director with a staff of 13 to assist in the performance of its functions. An attorney from the National Oceanic and Atmospheric Administration (NOAA), an agency within the Department of Commerce, advises the council on regulatory and procedural matters and attends all council meetings. The Western Pacific Council currently finances all of its …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter provides information Congress requested at the March 25, 2009, hearing entitled The Roles and Responsibilities of Inspectors General within Financial Regulatory Agencies. During the hearing, the former Inspector General (IG) of the Department of Homeland Security (DHS) testified that provisions of the Inspector General Act of 1978, as amended (IG Act), allow the Secretary of the Department of the Treasury to prevent the IG from pursuing an investigation or audit, including the issuance of subpoenas, under certain conditions. Due to concerns about the possible inappropriate use of such authorities, Congress asked GAO to identify federal agencies that possess the authority under the IG Act to prohibit audits and investigations by their offices of inspectors general (IG offices) and to determine the extent to which such provisions have been used to limit the IGs' activities."

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 financial systems maintained and operated by the Federal Reserve Banks (FRB) on behalf of the Department of the Treasury's (Treasury) BPD relevant to the Schedule of Federal Debt. 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 …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Energy's (DOE) Hanford Site in Washington State stores 56 million gallons of untreated radioactive and hazardous wastes resulting from decades of nuclear weapons production. DOE is constructing facilities at the site to treat these wastes before permanent disposal. As part of meeting health, safety, and other standards, work at the site has sometimes been suspended to address safety or construction quality issues. This report discusses (1) work stoppages from January 2000 through December 2008 and what is known about them, (2) the types of costs associated with work stoppages and who paid for them, and (3) whether more effective regulation or oversight could have prevented the work stoppages. GAO interviewed knowledgeable DOE and contractor officials about these events. When documentation was available, GAO obtained DOE and contractor accident and safety incident reports, internal DOE and independent external evaluations, and costs."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses GAO's efforts to coordinate with the accountability community--the Recovery Accountability and Transparency Board (the Board), the Inspectors General (IGs), and state and local government auditors--to help ensure effective and efficient oversight of American Recovery and Reinvestment Act (Recovery Act) funds. The Recovery Act assigns GAO a range of responsibilities including bimonthly reviews of the use of funds by selected states and localities. Because funding streams will flow from federal agencies to the states and localities, it is important for us to coordinate with the accountability community. Also, on March 19, 2009, GAO testified before this Subcommittee about the more than $21 billion in Recovery Act funds estimated to be spent for research and development (R&D) activities at four federal agencies. This statement discusses (1) GAO's efforts to fulfill its responsibilities under the Recovery Act; (2) GAO's coordination with others in the accountability community; (3) GAO's authorities to assist whistleblowers and elicit public concerns; and (4) updated information on the status of Recovery Act funds for R&D. It is based in part on GAO's first bimonthly Recovery Act report, Recovery Act: As Initial Implementation Unfolds in …

Correspondence issued by the Government Accountability Office with an abstract that begins "The federal government invests significantly in medical education through various programs to help ensure that the anticipated supply of new physicians meets the nation's health care needs. Medicare, the federal health care program for elderly and certain disabled people, subsidizes training for medical school graduates in hospitals and other teaching institutions by helping to support the increased costs associated with postgraduate medical training. These subsidy payments provided hospitals and other teaching institutions with an additional $8.76 billion for postgraduate medical training in fiscal year 2008. In addition, Medicaid, a joint federal and state program that finances health care for certain low-income individuals, provides funding for graduate medical education. In order to pay for medical school tuition and related fees, students often rely on loans to finance their education. The Department of Education (Education) administers loan programs that are available to medical school students. These loans may be made by private lenders and guaranteed by the federal government or made directly by the federal government through a student's school. The Health Resources and Services Administration (HRSA) administers various scholarships, loans, and loan repayment programs for disadvantaged students and those …

Correspondence issued by the Government Accountability Office with an abstract that begins "From fiscal year 2005 through fiscal year 2008, the military services received about $295 million in monetary and nonmonetary gifts from individuals and organizations wishing to donate gifts to the Department of Defense (DOD). Section 2601(a) of Title 10, U.S. Code is a long-standing authority under which the secretaries overseeing DOD, the military services, and the Coast Guard may accept a gift on the condition that the gift be used for the benefit of or in connection with the establishment, operation, or maintenance of schools, hospitals, libraries, museums, cemeteries, or other institutions or organizations under the jurisdiction of the secretary concerned. In 2008, gifts to benefit such institutions or organizations included a monetary gift to construct an education center and nonmonetary gifts of a bronze statue and granite benches. In 2006, Congress enacted additional authority, under 10 U.S.C. 2601(b) to allow the acceptance of gifts and services to benefit certain members of the armed forces and civilian employees of DOD who incurred a wound, injury, or illness in the line of duty and to benefit the dependents and survivors of those who are killed or wounded. For example, …

Testimony issued by the Government Accountability Office with an abstract that begins "The Pension Benefit Guaranty Corporation (PBGC) insures the retirement future of nearly 44 million people in over 29,000 private-sector defined benefit pension plans. In July 2003, GAO designated PBGC's single-employer pension insurance program--its largest insurance program--as "high risk," including it on GAO's list of major programs that need urgent Congressional attention and agency action. The program remains on the list today with a financial deficit of just over $11 billion, as of September 2008. The committee asked GAO to discuss our recent work on PBGC. Specifically, this testimony addresses two issues: (1) PBGC's financial vulnerabilities, and (2) the governance, oversight, and management challenges PBGC faces. To address these objectives, we are relying on our prior work assessing PBGC's long-term financial challenges, and several reports that we have published over the last two years on PBGC governance and management. GAO has made a number of recommendations and identified matters for Congressional consideration in these reports, and PBGC is implementing some of these recommendations. No new recommendations are being made as part of this testimony."

Correspondence issued by the Government Accountability Office with an abstract that begins "Millions of federal taxpayers receive billions of dollars in income tax refunds every year. Many of these refunds are paid to taxpayers who owe money to the federal government or to their state or local government. The law allows certain types of debts to be collected through offsets of federal income tax refunds before payments are issued to taxpayers--in calendar year 2008, over $5 billion was deducted from income tax refunds and used instead to pay other federal agency nontax debt, state income tax debt, and overdue child support payments. Due in part to the current economic downturn and the financial problems of state and local governments, interest has grown in potential expansion of the refund offset program Congressional request, this letter's objectives are to describe (1) recent proposals to expand the refund offset program, and (2) challenges and design issues that would need to be addressed by policymakers and program administrators in the event of program expansion, including the implications of eliminating the current requirement that tax refund offsets for state income tax debts are allowed only when the affected taxpayer lives in the state seeking the …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report formally transmits a briefing in response to a Congressional request. Specifically, Congress requested that GAO update our January 2005 report entitled, Gun Control and Terrorism: FBI Could Better Manage Firearm-Related Background Checks Involving Terrorist Watch List Records, GAO-05-127 (Washington, D.C.: Jan. 19, 2005). Under the Brady Handgun Violence Prevention Act and implementing regulations, the Federal Bureau of Investigation (FBI) and designated state and local criminal justice agencies use the FBI's National Instant Criminal Background Check System (NICS) to conduct checks on individuals before federal firearms licensees (gun dealers) may transfer any firearm to an unlicensed individual. Also, to assist the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI conducts NICS background checks on individuals seeking to obtain a federal explosives license or permit. Under current law, there is no basis to automatically prohibit a person from possessing firearms or explosives because they appear on the terrorist watch list. Rather, there must be a disqualifying factor (i.e., prohibiting information) pursuant to federal or state law, such as a felony conviction or illegal immigration status. In response to the request, this report addresses (1) the number …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report formally transmits briefing in response to section 1041 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009. The act requires the Comptroller General to review the Department of Defense's report on options for improving corrosion prevention and control, including the methodology used to assess the potential options, and provide the results to the House and Senate Armed Services Committees within 60 days after submission of the Department of Defense report. On April 29, 2009, we provided the briefing to staff of Congressional committees to satisfy the mandate and 60-day reporting requirement."

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter responds to a congressional request that we address questions submitted for the record related to the March 18, 2009, hearing entitled ATC Modernization: Near-Term Achievable Goals. Our attached responses to these questions are based on a review of literature on avionics and equipage incentives, interviews with Federal Aviation Administration officials, interviews with stakeholders and developers of avionics with knowledge of the maturity and costs of avionics equipment, and our knowledge of the areas addressed by the questions. We conducted this work from April 2009 to May 2009 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives."

Testimony issued by the Government Accountability Office with an abstract that begins "The Cannon House Office Building (Cannon Building)--completed in 1908--and the East and West House Underground Garages (East and West Garages)--built in 1968--have deteriorated over time and will need to be repaired, according to assessments conducted for the Architect of the Capitol (AOC). AOC plans to renovate these three facilities over approximately the next 8 years as part of a long-term effort to reduce maintenance backlogs and execute major renewal projects to sustain all Capitol Complex facilities."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony highlights the results of our March 2009 report on undercover investigative tests, which confirmed the continued existence of significant fraud vulnerabilities in this process. We also provided a letter to you in April 2009, describing our recent work on passport fraud and summarizing actions the Department of State (State) has taken to address the prior weaknesses related to fraud vulnerabilities we identified. We have found that these vulnerabilities stem from people, process, and technology. For example, the lack of training and resources provided to people contributes to vulnerabilities in the detection of fraudulent applications and counterfeit documents. The limitations in the access to inter-agency information contribute to vulnerabilities related to processes. Finally, the lack of databases and information-sharing technologies contribute to vulnerabilities in the verification of passport applicants' records. A U.S. passport not only allows an individual to travel freely in and out of the United States, but also can be used to obtain further identification documents, prove U.S. citizenship, and set up bank accounts, among other things. Because passports issued under a false identity help enable individuals to conceal their movements and activities, there is …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses our work on factors that will affect the potential economic impact of implementing the legislation applying U.S. immigration law to the Commonwealth of the Northern Mariana Islands (CNMI). Although subject to most U.S. laws, the CNMI has administered its own immigration system since 1978, under the terms of its 1976 Covenant with the United States. The CNMI has applied this flexibility to admit substantial numbers of foreign workers through a permit program for non-U.S. citizens (noncitizens) entering the CNMI. In 2005, these workers represented a majority of the CNMI labor force and outnumbered U.S. citizens in most industries, including garment manufacturing and tourism, which have been central to the CNMI's economy. The CNMI also has admitted tourists under its own entry permit and entry permit waiver programs and has provided various types of admission to foreign investors. As we have reported previously, the CNMI faces serious economic challenges, including the decline of garment manufacturing and fluctuations in tourism. The recent immigration legislation amends the U.S.-CNMI Covenant to establish federal control of CNMI immigration and includes several provisions affecting foreign workers and investors in the CNMI …

Testimony issued by the Government Accountability Office with an abstract that begins "The recession accelerated declines in mail volume in fiscal year 2008 and flattened revenues despite postal rate increases. That year, mail volume fell by 9.5 billion pieces, or 4.5 percent, and resulted in a net loss of $2.8 billion as the U.S. Postal Service's (USPS) cost-cutting did not close the gap between revenues and expenses. We testified this March before this subcommittee that USPS's financial condition has continued to deteriorate in the first 5 months of fiscal year 2009, with accelerating declines in mail volume and financial losses. USPS projected its financial condition to continue deteriorating for the rest of the fiscal year and to result in an unprecedented cash shortfall of $1.5 billion, assuming that ambitious cost-cutting targets are achieved. This testimony updates that information and focuses on (1) how USPS's financial viability is challenged given current economic conditions and whether USPS can cover its expenses and financial obligations, (2) USPS's opportunities to rightsize its retail and mail processing networks, and (3) what options and trade-offs need to be considered to address mail volume and revenue declines. It is based on GAO's past work and updated information …

Testimony issued by the Government Accountability Office with an abstract that begins "In 2008, GAO issued two reports on hedge funds--pooled investment vehicles that are privately managed and often engage in active trading of various types of securities and commodity futures and options contracts--highlighting the need for continued regulatory attention and for guidance to better inform pension plans on the risks and challenges of hedge fund investments. Hedge funds generally qualified for exemption from certain securities laws and regulations, including the requirement to register as an investment company. Hedge funds have been deeply affected by the recent financial turmoil. But an industry survey of institutional investors suggests that these investors are still committed to investing in hedge funds in the long term. For the first time hedge funds are allowed to borrow from the Federal Reserve under the Term-Asset Backed Loan Facility. As such, the regulatory oversight issues and investment challenges raised by the 2008 reports still remain relevant. This testimony discusses: (1) federal regulators' oversight of hedge fund-related activities; (2) potential benefits, risks, and challenges pension plans face in investing in hedge funds; (3) the measures investors, creditors, and counterparties have taken to impose market discipline on hedge funds; …

Testimony issued by the Government Accountability Office with an abstract that begins "Without proper safeguards, federal agencies' computer systems are vulnerable to intrusions by individuals and groups who have malicious intentions and can obtain sensitive information, commit fraud, disrupt operations, or launch attacks against other computer systems and networks. Concerned by reports of significant weaknesses in federal systems, Congress passed the Federal Information Security Management Act (FISMA), which permanently authorized and strengthened information security program, evaluation, and annual reporting requirements for federal agencies. GAO was asked to testify on its draft report on (1) the adequacy and effectiveness of federal agencies' information security policies and practices and (2) their implementation of FISMA requirements. To prepare for this testimony, GAO summarized its draft report where it analyzed agency, inspectors general, Office of Management and Budget (OMB), congressional, and GAO reports on information security."

Testimony issued by the Government Accountability Office with an abstract that begins "In recent years, questions have been raised about the capacity of the Securities and Exchange Commission's (SEC) Division of Enforcement (Enforcement) to manage its resources and fulfill its law enforcement and investor protection responsibilities. This testimony focuses on (1) the extent to which Enforcement has an appropriate mix of resources; (2) considerations affecting penalty determinations, and recent trends in penalties and disgorgements ordered; and (3) the adoption, implementation, and effects of recent penalty policies. The testimony is based on the GAO report, Securities and Exchange Commission: Greater Attention Needed to Enhance Communication and Utilization of Resources in the Division of Enforcement (GAO-09-358, March 31, 2009). For this work, GAO analyzed information on resources, enforcement actions, and penalties; and interviewed current and former SEC officials and staff, and others."

Testimony issued by the Government Accountability Office with an abstract that begins "Information security is a critical consideration for any organization that depends on information systems and computer networks to carry out its mission or business. It is especially important for government agencies, where maintaining the public's trust is essential. The need for a vigilant approach to information security has been demonstrated by the pervasive and sustained computerbased (cyber) attacks against the United States and others that continue to pose a potentially devastating impact to systems and the operations and critical infrastructures that they support. GAO was asked to describe (1) cyber threats to federal information systems and cyberbased critical infrastructures and (2) control deficiencies that make these systems and infrastructures vulnerable to those threats. To do so, GAO relied on its previous reports and reviewed agency and inspectors general reports on information security."

Testimony issued by the Government Accountability Office with an abstract that begins "The F-35 Joint Strike Fighter (JSF) program is the Department of Defense's (DOD's) most costly acquisition, seeking to simultaneously develop, produce, and field three aircraft variants for the Air Force, Navy, Marine Corps, and eight international partners. The total expected U.S. investment is now more than $300 billion to develop and procure 2,456 aircraft over the next 25 years. GAO's most recent report in March of this year discussed increased development costs and schedule estimates, plans to accelerate procurement, manufacturing performance and delays, and development test strategy. A recurring theme in GAO's work has been concern about what GAO believes is undue concurrency of development, test, and production activities and the heightened risks it poses to achieving good cost, schedule, and performance outcomes. This testimony discusses: (1) current JSF cost and schedule estimates; (2) engine development; (3) manufacturing performance; (4) contracting issues for procurement of aircraft; (5) and test plans. This statement draws from GAO's March 2009 report, updated to the extent possible with new budget data and a recently revised procurement profile directed by the Secretary of Defense."

Testimony issued by the Government Accountability Office with an abstract that begins "The possibility of storing refined petroleum products as part of the Strategic Petroleum Reserve (SPR) has been contemplated since the SPR was created in 1975. The SPR, which currently holds about 700 million barrels of crude oil, was created to help insulate the U.S. economy from oil supply disruptions. However, the SPR does not contain refined products such as gasoline, diesel fuel, or jet fuel. The Energy Policy Act of 2005 directed the Department of Energy (DOE) to increase the SPR's capacity from 727 million barrels to 1 billion barrels, which it plans to do by 2018. With the possibility of including refined products as part of the expansion of the SPR, this testimony discusses (1) some of the arguments for and against including refined products in the SPR and (2) lessons learned from the management of the existing crude oil SPR that may be applicable to refined products. To address these issues, GAO relied on its 2006 report on the SPR (GAO-06-872), 2007 report on the globalization of petroleum products (GAO-08-14), and two 2008 testimonies on the cost-effectiveness of filling the SPR (GAO-08-512T and GAO-08-726T). GAO also …

Testimony issued by the Government Accountability Office with an abstract that begins "Despite a growing investment in space, the majority of large-scale acquisition programs in the Department of Defense's (DOD) space portfolio have experienced problems during the past two decades that have driven up cost and schedules and increased technical risks. The cost resulting from acquisition problems along with the ambitious nature of space programs has resulted in cancellations of programs that were expected to require investments of tens of billions of dollars. Along with the cost increases, many programs are experiencing significant schedule delays--at least 7 years--resulting in potential capability gaps in areas such as positioning, navigation, and timing; missile warning; and weather monitoring. This testimony focuses on (1) the condition of space acquisitions, (2) causal factors, and (3) recommendations for better positioning programs and industry for success. In preparing this testimony, GAO relied on its body of work in space and other programs, including previously issued GAO reports on assessments of individual space programs, common problems affecting space system acquisitions, and DOD's acquisition policies."

Testimony issued by the Government Accountability Office with an abstract that begins "GAO recently testified before the Committee regarding allegations of death and abuse at residential programs for troubled teens. Recent reports indicate that vulnerable children are being abused in other settings. For example, one report on the use of restraints and seclusions in schools documented cases where students were pinned to the floor for hours at a time, handcuffed, locked in closets, and subjected to other acts of violence. In some of these cases, this type of abuse resulted in death. Given these reports, the Committee asked GAO to (1) provide an overview of seclusions and restraint laws applicable to children in public and private schools, (2) verify whether allegations of student death and abuse from the use of these methods are widespread, and (3) examine the facts and circumstances surrounding cases where a student died or suffered abuse as a result of being secluded or restrained. GAO reviewed federal and state laws and abuse allegations from advocacy groups, parents, and the media from the past two decades. GAO did not evaluate whether using restraints and seclusions can be beneficial. GAO examined documents related to closed cases, including police …