Correspondence issued by the Government Accountability Office with an abstract that begins "Since 2001, the Department of Defense (DOD) has relied on more than 600,000 members of the National Guard and Reserve components to support various operations abroad and at home. In particular, from September 2001 to July 2007, the department deployed more than 434,000 reservists to support operations in DOD's Central Command area of responsibility that includes Afghanistan and Iraq. Furthermore, DOD has modified its mobilization policy, which had previously limited the cumulative amount of time that reservists could be involuntarily called to active duty for the Global War on Terrorism. Under DOD's new policy, which went into effect in January 2007, involuntary mobilizations for reserve component service members are generally limited to no more than 12 months, and there are no cumulative limits on these involuntary mobilizations. While on active duty, reservists may be unable to take the required professional development courses or periodic tests needed to retain their professional currency in fields such as accounting or software engineering. The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects rights of qualifying National Guard members, reservists, and certain other members of the uniformed services returning to their civilian …

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, 2007 and 2006. As part of these audits, we performed a review of the general and application information security controls over key BPD financial systems. In our audit report on the Schedules of Federal Debt for the fiscal years ended September 30, 2007 and 2006, 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, 2007, 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 matters involving information security controls that we do not consider to be significant deficiencies. As it relates to controls over financial reporting and compliance with applicable laws and regulations, BPD mitigated the potential effect of such control …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of the Interior's (Interior) U.S. Fish and Wildlife Service (Service) is generally required to use the best available scientific information when making key decisions under the Endangered Species Act (ESA). Controversy has surrounded whether former Deputy Assistant Secretary Julie MacDonald may have inappropriately influenced ESA decisions by basing decisions on political factors rather than scientific data. Interior directed the Service to review ESA decisions to determine which decisions may have been unduly influenced. ESA actions include, among others, 90-day petition findings, 12-month listing or delisting findings, and recovery planning. The Service distributed informal guidance in May 2005 on the processing of 90-day petitions. Recovery plans generally must include recovery criteria that, when met, would result in the species being delisted. GAO examined three separate issues: (1) what types of decisions, if any, were excluded from the Service's review of decisions that may have been inappropriately influenced; (2) to what extent the Service's May 2005 informal guidance affected 90-day petition findings; and (3) to what extent the Service has, before delisting species, met recovery criteria. GAO interviewed Service staff, surveyed Service biologists, and reviewed delisting rules and …

Correspondence issued by the Government Accountability Office with an abstract that begins "According to U.S. embassy officials in Islamabad and unclassified U.S. intelligence documents, since 2002, al Qaeda and the Taliban have used Pakistan's Federally Administered Tribal Areas (FATA) and the border region to attack Pakistani, Afghan, U.S. and coalition troops; plan and train for attacks against U.S. interests; destabilize Pakistan; and spread radical Islamist ideologies that threaten U.S. interests. Since October 2001, the United States has provided Pakistan with over $10 billion for military, economic, and development activities in support of the critical U.S. national security goals of destroying terrorist threats and closing terrorist safe havens. A major component of this effort has been U.S. Coalition Support Funds (CSF) reimbursed to Pakistan. The purpose of CSF is to reimburse coalition countries for logistical and military support provided to United States military operations in the global war on terror. In Pakistan, reimbursements through CSF are intended to enable the government of Pakistan to attack terrorist networks in the FATA and stabilize the border areas. It is structured as a reimbursement mechanism in which the U.S. Department of Defense (Defense) policy is to validate that support was provided, costs were incurred, …

Correspondence issued by the Government Accountability Office with an abstract that begins "The President's budget request for the Department of Defense's (DOD) Defense Health Program has increased steadily in recent years. For example, from fiscal year 2005 to fiscal year 2009, the budget request for the program increased from about $17.6 billion to about $23.6 billion, an increase of about 34 percent. DOD has attributed a majority of this increase to growth in medical care, dental care, and pharmaceuticals provided in the private sector to active duty personnel and other eligible beneficiaries. These private sector expenses are funded through the Defense Health Program's Private Sector Care Budget Activity Group (BAG). From fiscal year 2005 to fiscal year 2009, the budget request for this BAG increased by about 36 percent--from about $9.0 billion to almost $12.2 billion. The Conference Report accompanying the Fiscal Year 2008 Department of Defense Appropriations bill directed us to review the President's fiscal year 2009 budget request for the Defense Health Program's Private Sector Care BAG. To do this, we reviewed (1) DOD's justification for the request for the Private Sector Care BAG, including the underlying estimates and the extent to which DOD considered historical information; and …

Correspondence issued by the Government Accountability Office with an abstract that begins "Since 1992, GAO has published long-term fiscal simulations of what might happen to federal deficits and debt levels under varying policy assumptions. We developed our long-term model in response to a bipartisan request from Members of Congress who were concerned about the long-term effects of fiscal policy. Our simulations were updated with the Trustees 2008 intermediate projections and continue to indicate that the long-term federal fiscal outlook remains unsustainable. This update combined with our analysis of the fiscal outlook of state and local governments demonstrates that the fiscal challenges facing all levels of government are linked and should be considered in a strategic and integrated manner. We update our simulations three times a year as new estimates become available from the Congressional Budget Office's (CBO) Budget and Economic Outlook (January), Social Security and Medicare Trustees Reports (spring), and CBO's Budget and Economic Outlook: An Update (late summer). This product responds to congressional interest in receiving updated simulation results. Additional information about the GAO model, its assumptions, data, and charts can be found at http://www.gao.gov/special.pubs/longterm/. For more information, contact Susan J. Irving at (202) 512-9142 or irvings@gao.gov."

Correspondence issued by the Government Accountability Office with an abstract that begins "Elevated concentrations of greenhouse gases--carbon dioxide, methane, nitrous oxide, and several synthetic chemicals--in the atmosphere resulting from the combustion of fossil fuels and other sources have the potential to cause significant changes in the earth's climate. These potential impacts include shifts in sea level and weather patterns and could pose threats to coastal and other infrastructure. Concerns about the potential impacts of climate change have led the Congress to consider legislation that would place binding, nationwide limits on greenhouse gas emissions, and the House of Representatives' leadership has initiated efforts to decrease emissions attributable to its operations. Nearly all of the greenhouse gas emissions from House operations consist of carbon dioxide and are associated with electricity purchased from utilities and the combustion of fossil fuels in the Capitol Power Plant (CPP), which provides steam and chilled water for heating and cooling the Capitol building and 23 surrounding facilities. The Architect of the Capitol (AOC) operates CPP. In June 2007, the Chief Administrative Officer (CAO) of the House of Representatives released the Green the Capitol initiative (the initiative) at the direction of the Speaker and the Majority Leader. Among …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report formally transmits the briefing in response to the Senate Report on the National Defense Authorization Act for Fiscal Year 2008. The report required GAO to review and make recommendations regarding the reports, assessments, analyses, and documents used for determining the compliance of the Department of Defense and military departments with the percentage limitation in 10 U.S.C. 2466--frequently referred to as the 50/50 requirement. On April 23 and 24, 2008, we provided the briefing to staff of Congressional committees to satisfy the mandate requirement."

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal agencies are required to use the procedures contained in OMB Circular A-76 in determining whether commercial services should be performed by government personnel or through contracts with private-sector entities. In general, the circular instructs agencies to base these decisions on competitions among public and private-sector entities conducted in accordance with the Federal Acquisition Regulation (FAR). Under the FAR, agencies have broad discretion in establishing the criteria they will use to select the winners of these competitions. An agency may decide, for example, that selection of the lowest priced, acceptable offer would best meet its needs. The FAR advises that this may be appropriate when requirements are clearly defined and the risk of unsuccessful performance is minimal. On the other hand, the FAR says that it may be in the best interest of an agency to provide for selecting other than the low offer when requirements are less definite, development work is required, or the risk of unsuccessful performance is high. An evaluation scheme that allows for considering the relative importance of both price and technical factors (such as an offeror's management capability, experience, or ability to apply …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Government Accountability Office (GAO) is required by the Government Management Reform Act of 1994 to audit the Consolidated Financial Statements of the U.S. Government (CFS). Certain material weaknesses in financial reporting and other limitations on the scope of our work have continued to result in conditions that have prevented us from expressing an opinion on the federal government's accrual basis consolidated financial statements. To assist us in planning future audits, when we anticipate being able to eventually issue an opinion on the accrual basis consolidated financial statements, we have performed and plan to continue performing selected procedures on certain line items and other areas of interest. The purpose of these procedures is to obtain an understanding of selected federal agencies' accounting and reporting and the audit work being performed in these areas. This letter relates to the fiscal year 2006 accounts payable (A/P) line item. The federal government reported about $58 billion of A/P as of September 30, 2006. Certain federal agencies' auditors reported internal control deficiencies related to A/P. These weaknesses contributed to the CFS material weakness for "Liabilities and Commitments and Contingencies" reported in our …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Homeland Security (DHS) has relied on service acquisitions to meet its expansive mission. In fiscal year 2006, DHS spent $12.7 billion to procure services. To improve service acquisition outcomes, federal procurement policy establishes a preference for a performance-based approach, which focuses on developing measurable outcomes rather than prescribing how contractors should perform services. This testimony focuses on how contract outcomes are influenced by how well DHS components have defined and developed contract requirements and performance standards, as well as the need for improved assessment and oversight to ensure better acquisition outcomes. GAO's statement is based on its report being released today, which reviewed judgmentally selected contracts for eight major investments at three DHS components--the Coast Guard, Customs and Border Protection (CBP), and the Transportation Security Administration (TSA)-- totaling $1.53 billion in fiscal years 2005 and 2006; prior GAO and DHS Inspector General reviews; management documents and plans; and related data, including 138 additional contracts, primarily for basic services from the Coast Guard, CBP, TSA, and Immigration and Customs Enforcement."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Homeland Security (DHS) was created from a disparate group of agencies with multiple missions, values, and cultures into a cabinet department whose goals are to, among other things, protect U.S. borders and infrastructure, improve intelligence and information sharing, and prevent and respond to potential terrorist attacks. GAO designated the implementation and transformation of DHS as a high-risk area in 2003, and it remains so. While DHS has made progress, it continues to face challenges in transforming into an effective, integrated organization. In response to a request to provide information on diversity in DHS and steps DHS is taking to create and manage a diverse workforce, GAO is providing demographic data related to the federal government as a whole and DHS's workforce. GAO obtained these data from the Office of Personnel Management's (OPM) Central Personnel Data File (CPDF). GAO used its past work on leading diversity management practices (GAO-05-90) and reviewed data from DHS on its diversity management practices."

Testimony issued by the Government Accountability Office with an abstract that begins "The United States Capitol Police (USCP) is responsible for securing the 276-acre Capitol Complex, including protecting Members of Congress, visitors, and congressional facilities. In response to heightened security concerns, various requests, and legislative mandates over the years, GAO has reported on management control problems in five key areas: (1) establishing an accountability framework for monitoring recommendations, (2) establishing a risk management framework, (3) ensuring financial management, (4) ensuring strategic and human capital planning, and (5) managing information technology (IT). From January 2004 through March 2007, GAO made 46 recommendations aimed at improving USCP administrative and management operations and achieving strategic goals. This testimony reports on the status of USCP's efforts to address GAO's recommendations. To conduct its work, GAO analyzed USCP documentation, such as risk matrices, budget documents, and strategic plans. GAO also conducted interviews with USCP officials and contractors on their efforts related to its recommendations. GAO performed this work from October 2007 through April 2008. USCP generally agreed with GAO's 46 prior recommendations and GAO's assessment of the status of USCP's efforts to implement those recommendations. Along these lines, USCP needs to complete those actions in …

Testimony issued by the Government Accountability Office with an abstract that begins "With health care spending increasing, Congress enacted legislation effective in 2004 establishing Health Savings Accounts (HSA) to be coupled with eligible high-deductible health plans. The novel structure of eligible health plans coupled with HSAs has raised questions about who selects them and how they are used. Proponents contend that the lower premiums of the health plans and the tax-free savings potential of HSAs appeal to consumers, while the health plans' high deductibles encourage enrollees to be more astute health care consumers. However, critics are concerned that HSA-eligible plans may attract enrollees who seek lower premiums but lack the resources to contribute to an HSA, and wealthy enrollees who may use the HSA primarily to accumulate tax-advantaged savings. This statement focuses on (1) participation in HSA-eligible high-deductible health plans and HSAs, (2) the income characteristics of HSA account holders, and (3) the funding and use of HSAs. This statement is based primarily on findings from GAO's April 2008 report entitled Health Savings Accounts: Participation Increased and Was More Common among Individuals with Higher Incomes (GAO-08-474R). For that report GAO reviewed industry data on the participation in HSA-eligible plans and …

Testimony issued by the Government Accountability Office with an abstract that begins "As part of the Food and Drug Administration's (FDA) oversight of the safety and effectiveness of medical devices marketed in the United States, it inspects certain foreign and domestic establishments where these devices are manufactured. To help FDA address shortcomings in its inspection program, the Medical Device User Fee and Modernization Act of 2002 required FDA to accredit third parties to inspect certain establishments. In response, FDA has implemented two voluntary programs for that purpose. This statement is based primarily on GAO testimonies from January 2008 (GAO-08-428T) and April 2008 (GAO-08-701T). In this statement, GAO assesses (1) FDA's program for inspecting foreign establishments that manufacture medical devices for the U.S. market and (2) FDA's programs for third-party inspections of those establishments. For GAO's January and April 2008 testimonies, GAO interviewed FDA officials, analyzed information from FDA, and updated GAO's previous work on FDA's programs for inspections by accredited third parties. GAO updated selected information for this statement in early May 2008."

Testimony issued by the Government Accountability Office with an abstract that begins "DHS is proposing to move foot-and mouth disease (FMD) research from its current location at the Plum Island Animal Disease Center--located on a federally owned island off the northern tip of Long Island, New York--and potentially onto the United States mainland. FMD is the most highly infectious animal disease that is known. Nearly 100 percent of exposed animals become infected. A single outbreak of FMD on the U.S. mainland could have significant economic consequences. Concerns have been raised about moving FMD research off its island location and onto the U.S. mainland--where it would be in closer proximity to susceptible animal populations--as opposed to building a new facility on the island. GAO was asked to evaluate the evidence DHS used to support its decision that FMD work can be done safely on the U.S. mainland, whether an island location provides any additional protection over and above that provided by modern high containment laboratories on the mainland, and the economic consequences of an FMD outbreak on the U.S. mainland. In preparing this testimony, GAO interviewed officials from DHS and USDA, talked with experts in FMD and high-containment laboratories worldwide, and …

Testimony issued by the Government Accountability Office with an abstract that begins "To address the challenges that the nation faces, it will be important for federal agencies to change their cultures and create the institutional capacity to become high-performing organizations. This includes recruiting and retaining a federal workforce able to create, sustain, and thrive in organizations that are flatter, results-oriented, and externally focused. In 2001, GAO identified strategic human capital management as a governmentwide high-risk area because federal agencies lacked a strategic approach to human capital management that integrated human capital efforts with their missions and program goals. Although progress has been made since that time, strategic human capital management still remains a high-risk area. This testimony, based on a large body of completed work issued from January 2001 through April 2008, focuses on (1) challenges that federal agencies have faced in recruiting and hiring talented employees, (2) progress in addressing these challenges, and (3) additional actions that are needed to strengthen recruiting and hiring efforts. In its prior reports, GAO has made a range of recommendations to the Office of Personnel Management (OPM)--the government's personnel agency--and to agencies in such areas as hiring, workforce planning, and diversity management; a …

Testimony issued by the Government Accountability Office with an abstract that begins "Physical infrastructure is critical to the nation's economy and affects the daily life of virtually all Americans--from facilitating the movement of goods and people within and beyond U.S. borders to providing clean drinking water. However, this infrastructure--including aviation, highway, transit, rail, water, and dam infrastructure--is under strain. Estimates to repair, replace, or upgrade aging infrastructure as well as expand capacity to meet increased demand top hundreds of billions of dollars. Calls for increased investment in infrastructure come at a time when traditional funding for infrastructure projects is increasingly strained, and the federal government's fiscal outlook is worse than many may understand. This testimony discusses (1) challenges associated with the nation's surface transportation, aviation, water, and dam infrastructure, and the principles GAO has identified to help guide efforts to address these challenges and (2) existing and proposed options to fund investments in the nation's infrastructure. This statement is primarily based on a body of work GAO has completed for the Congress over the last several years. To supplement this existing work, GAO also interviewed Department of Transportation officials to obtain up-to-date information on the status of the Highway Trust …

Testimony issued by the Government Accountability Office with an abstract that begins "Federal assistance helps students and families pay for postsecondary education through several policy tools--grant and loan programs authorized by Title IV of the Higher Education Act of 1965 and more recently enacted tax preferences. This testimony summarizes our 2005 report and provides updates on (1) how Title IV assistance compares to that provided through the tax code (2) the extent to which tax filers effectively use education tax preferences, (3) potential benefits and costs of simplifying federal student aid, and (4) what is known about the effectiveness of federal assistance. This hearing is an opportunity to consider whether changes should be made in the government's overall strategy for providing such assistance or to the individual programs and tax provisions that provide the assistance. This statement is based on updates to previously published GAO work and reviews of relevant literature."

Other written product issued by the Government Accountability Office with an abstract that begins "The federal government will need to make the most of its resources to meet the emerging challenges of the 21st century. As new priorities emerge, policymakers have demonstrated interest in user fees as a means of financing new and existing services. User fees can be designed to reduce the burden on taxpayers to finance the portions of activities that provide benefits to identifiable users above and beyond what is normally provided to the public. By charging the costs of those programs or activities to beneficiaries, user fees can also promote economic efficiency and equity. However, to achieve these goals, user fees must be well designed. GAO was asked to study how user fee design characteristics may influence the effectiveness of user fees. Specifically, GAO examined how the four key design and implementation characteristics of user fees--how fees are set, collected, used, and reviewed--may affect the economic efficiency, equity, revenue adequacy, and administrative burden of cost-based fees. GAO reviewed economic and policy literature on federal and nonfederal user fees, including prior GAO work, and used relevant case examples to illustrate different types of design elements and the …

Testimony issued by the Government Accountability Office with an abstract that begins "Millions of people rely on the services of Social Security Administration (SSA) field offices. In fiscal year 2007, SSA's approximately 1,300 field offices provided service to about 42 million customers. People use these offices to apply for Social Security cards, apply for retirement and disability benefits, establish direct deposit, and a host of other services. While customers may conduct their business using SSA's online, telephone, or other service options, many prefer the personalized contact provided in field offices. Over the last several years, staffing reductions have challenged field offices' ability to manage work, while continuing to deliver quality customer service. To assess how field offices are managing these challenges, GAO was asked to determine (1) the effect that reduced staffing levels may be having on field office operations and (2) the challenges that SSA faces in meeting future service delivery needs. This statement is drawn from GAO's ongoing study on field offices for the committee, which is expected to be issued later this year. To conduct this work, GAO interviewed SSA officials in headquarters, and other components, and analyzed various data on SSA's workloads and other data. In …

Testimony issued by the Government Accountability Office with an abstract that begins "The control systems that regulate the nation's critical infrastructures face risks of cyber threats, system vulnerabilities, and potential attacks. Securing these systems is therefore vital to ensuring national security, economic well-being, and public health and safety. While most critical infrastructures are privately owned, the Tennessee Valley Authority (TVA), a federal corporation and the nation's largest public power company, provides power and other services to a large swath of the American Southeast. GAO was asked to testify on its public report being released today on the security controls in place over TVA's critical infrastructure control systems. In doing this work, GAO examined the security practices in place at TVA facilities; analyzed the agency's information security policies, plans, and procedures in light of federal law and guidance; and interviewed agency officials responsible for overseeing TVA's control systems and their security."

Testimony issued by the Government Accountability Office with an abstract that begins "In 1996, the former U.S. Immigration and Naturalization Service, now within the Department of Homeland Security (DHS), and the Social Security Administration (SSA) began operating a voluntary pilot program, recently named the E-Verify program, to provide participating employers with a means for electronically verifying employees' work eligibility. Legislation has been introduced in Congress to require all employers to electronically verify the work authorization status of their employees. In this testimony GAO provides observations on the E-Verify system's capacity and costs, options for reducing delays and improving efficiency in the verification process, ability to detect fraudulent documents and identity theft, and vulnerability to employer fraud and misuse. This testimony is based on GAO's products issued from August 2005 through June 2007 and updated information obtained from DHS and SSA in April 2008. We analyzed data on employer use, E-Verify guidance, and other reports on the employment verification process, as well as legislative proposals and regulations."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony is based on our review of schedules and financial reports for the CVC project and related records maintained by AOC and its construction management contractor, Gilbane Building Company; our observations on the progress of work at the CVC construction site; and our discussions with the CVC team (AOC and its major CVC contractors) and AOC's Chief Fire Marshal. We also reviewed AOC's construction management contractor's periodic schedule assessments, proposed change order log, and weekly reports on construction progress."