A letter report issued by the General Accounting Office with an abstract that begins "This report examines the working capital fund activities for the Department of Defense (DOD). GAO (1) identifies potential changes in current management processes or policies that, if made, would result in a more efficient operation and (2) evaluates various aspects of the DOD policy that allow Defense Working Capital Fund activities to carry over a 3-month level of work from one fiscal year to the next. GAO found that DOD lacks a sound analytical basis for its current 3-month carryover standard. DOD established a 3-month carryover standard for most working capital fund activity groups, although it has not done the analysis necessary to support the 3-month standard. Without a validation process, neither DOD nor congressional decisionmakers can be sure that the 3-month standard is providing activity groups with reasonable amounts of carryover to ensure a smooth transition from one fiscal year to the next or whether the carryover is excessive. In addition, carryover information currently reported under the 3-month standard is not comparable between services and is misleading to DOD and congressional decisionmakers. Specifically, results can differ markedly because the military services use different methods to …

Testimony issued by the General Accounting Office with an abstract that begins "Until the 2001 flu season, the production and distribution of influenza vaccine generally went smoothly. Last year, however, several people reported that they wanted but could not get flu shots. In addition, physicians and public health departments could not provide shots to high-risk patients in their medical offices and clinics because they had not received vaccine they ordered many months in advance, or because they were being asked to pay much higher prices for vaccine in order to get it right away. At the same time, there were reports that providers in other locations, even grocery stores and restaurants, were offering flu shots to everyone--including younger, healthier people who were not at high risk. This testimony discusses the delays in production, distribution, and pricing of the 2000-2001 flu vaccine. GAO found that manufacturing difficulties during the 2000-2001 flu season resulted in an overall delay of about six to eight weeks in shipping vaccine to most customers. This delay created an initial shortage and temporary price spikes. There is no system in place to ensure that high-risk people have priority for receiving flu shots when supply is short. Because …

Correspondence issued by the General Accounting Office with an abstract that begins "The Federal Acquisition Streamlining Act of 1994 allows the use of performance-based payment (PBP) as an alternative to other forms of contract financing. According to the Department of Defense (DOD), the paying office processed about one million invoices for 363,000 major contracts. In fiscal year 1999, only 195 of these contracts contained performance-based provisions. These contracts are so few in number because they are a relatively new form of contracting within DOD. In November 2000, however, DOD indicated that performance-based financing will be military's preferred contract financing method for future fixed-price contracts. This report reviews the C-17 aircraft production program as a case study of the business processes used to make investment expenditures during the production phase of a major weapons system. GAO chose this contract because it is mature, stable, and is performance-based rather than cost-based. GAO found internal control weaknesses in the C-17 program affecting compliance with regulations, policies, and procedures over (1) establishing withhold amounts by the Air Force contracting officer for conditionally accepted items, (2) processing by the Administrative Contracting Officer for performance-based payment requests, (3) processing by the Administrative Contracting Officer of invoices …

A letter report issued by the General Accounting Office with an abstract that begins "Since GAO reported on Department of Defense (DOD) contractor overpayments in 1994, additional reports have been issued highlighting billions of dollars of overpayments to Defense contractors. In December 2001, Congress amended Title 31 of the United States Code to require a federal agency with contracts totaling over $500 million in a fiscal year to have a cost-effective program for identifying payment errors and for recovering amounts erroneously paid to contractors. DOD contractors' responses to GAO's survey indicate that they have millions of dollars of overpayments on their records and that they are continuing to refund overpayments-- about $488 million in fiscal year 2001. DOD has taken actions to address problems with contractor overpayments. In addition to its contract audit functions and as part of a broad based program to assist the Defense Contract Management Agency (DCMA) and the Defense Finance and Accounting Service (DFAS), the Defense Contract Audit Agency (DCAA) is auditing at least 190 large DOD contractors to identify overpayments and ensure that contractors have adequate internal controls for prompt identification and reporting of overpayments. Although DOD has several initiatives to reduce overpayments, it still …

A letter report issued by the General Accounting Office with an abstract that begins "GAO reviewed purchasing controls and activities within the Airway Facilities Division of the Federal Aviation Administration (FAA) in Alaska. This unit, referred to as AFA, is responsible for maintaining airway navigation and communication equipment throughout the state. AFA implemented a pilot program in March 1997 called the Corporate Maintenance Philosophy (CMP) that reduced periodic maintenance and certification requirements for equipment, thus allowing AFA to work with fewer staff. Under this program, AFA's funds originally intended for payroll compensation and benefits were freed for use on capital improvements and an employee recognition system. However, AFA did not have good internal controls. GAO reviewed 150 purchases made in fiscal years 1999 through 2001. Of these, 118 did not comply with one or more FAA purchasing requirements. AFA's highly decentralized operating environment made it susceptible to internal controls weaknesses and improper or wasteful purchases. FAA headquarters in Washington, DC, provides little oversight of spending practices, and regional officials in Alaska have no oversight authority over AFA's practices. AFA personnel work in various locations, with more than half having agency credit cards. GAO found that most cardholders received no training …

A letter report issued by the General Accounting Office with an abstract that begins "The Tennessee Valley Authority (TVA) declared its intent to become competitive by reducing its cost of power and becoming more financially flexible by reducing debt from $27.4 billion to $13.2 billion by 2007. Since the 1980s, TVA has used benchmarking to assess staffing levels for its nuclear program and it began to use benchmarking studies for its non-nuclear business units in 1998. Recent studies indicate that TVA's nuclear and transmission power supply units are close to the industry's best in terms of staffing efficiency. TVA has taken several actions to improve performance and efficiency, including reorganizing its human resources and business services organizations and automating its hydropower production facilities to reduce future staffing. TVA continues to utilize benchmarking to assist in identifying opportunities for improvement. TVA's current electricity rates are low when compared to 12 likely competitors and to national averages. Although TVA's electricity rates are relatively low, it is legislatively protected from most competition, and it has the statutory authority to raise rates. If TVA were to choose to raise electricity rates selectively and use the additional cash generated to repay debt, it could accelerate …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Energy (DOE) spends between $6 billion and $7 billion annually to store, clean up, and monitor nuclear and hazardous waste at its sites. Various federal and state agencies with jurisdiction over environmental and health issues related to the cleanup are therefore involved in regulating and overseeing DOE's activities. Much of the cleanup activity has been implemented under compliance agreements between the DOE and these agencies. There are three types of compliance agreements governing DOE's sites: (1) legal requirements that address the cleanup of federal sites on the National Priorities List of the nation's most serious hazardous waste sites or that address treatment and storage of mixed hazardous and radioactive waste at DOE facilities; (2) court-ordered agreements resulting from lawsuits initiated primarily by states; and (3) other agreements, such as state administrative orders enforcing state hazardous waste management laws, that do not fall into the first two categories. Through the end of fiscal year 2001, DOE had completed 4,500 milestones, although for several reasons, the number of milestones is not a good indication of cleanup progress. Many of the milestones are administrative in nature, …

A letter report issued by the General Accounting Office with an abstract that begins "The October 2001 anthrax attacks, the recent outbreak of the virulent Severe Acute Respiratory Syndrome (SARS), and increased awareness that terrorist groups may be capable of releasing life-threatening biological agents have prompted efforts to improve our nation's preparedness for, and response to, public health emergencies--including bioterrorism. GAO was asked, among other things, to identify federal agencies information technology (IT) initiatives to support our nation's readiness to deal with bioterrorism. Specifically, we compiled an inventory of such activities, determined the range of these coordination activities with other agencies, and identified the use of health care standards in these efforts."

A letter report issued by the General Accounting Office with an abstract that begins "Export sales of defense-related products often include "offsets"-- industrial and commercial benefits, such as technology transfer, which U.S. companies provide to foreign governments as incentives or conditions for purchasing military goods and services. Over the past decade, offsets have increased and in 1998, they totaled about $3 billion per year. In December 2000, GAO reported that countries are becoming increasingly sophisticated in their use of offsets to achieve regional industrial and employment goals. In 1999, Congress established a National Commission to report on the extent and nature of offsets in international defense trade by October 2001. The Director of the Office of Management and Budget (OMB) was designated chair of the Commission. Congress also required the President to report, within 90 days after the Commission's final report, on the feasibility and desirability of seeking a multilateral treaty with international trading partners on standards for use of defense offsets. GAO's report responds to the congressional mandate for GAO to monitor and periodically report on the President's progress in reaching a multilateral treaty."

A letter report issued by the General Accounting Office with an abstract that begins "According to the Department of Housing and Urban Development (HUD), the most widespread and urgent housing problem facing elderly households is affordability. About 3.3 million elderly renter households in the United States have very low incomes (50 percent or less of median area income). The Section 202 Supportive Housing for the Elderly Program provides capital advances (grants) to nonprofit organizations to develop affordable rental housing exclusively for these households. GAO was asked to determine the role of the Section 202 program in addressing the need for affordable elderly housing and the factors affecting the timeliness of approving and constructing new projects."

Correspondence issued by the General Accounting Office with an abstract that begins "Biennially, the Judicial Conference, the federal judiciary's principal policymaking body, assesses the judiciary's needs for additional judgeships. If the Conference determines that additional judgeships are needed, it transmits a request to Congress identifying the number, type (courts of appeals, district, or bankruptcy), and location of the judgeships it is requesting. In 2003, the Judicial Conference sent to Congress requests for 93 new judgeships--11 for the courts of appeals, 46 for the district courts, and 36 for the bankruptcy courts. In assessing the need for additional judgeships, the Judicial Conference considers a variety of information, including responses to its biennial survey of individual courts, temporary increases or decreases in case filings, and other factors specific to an individual court. However, the Judicial Conference's analysis begins with the courts of appeals--weighted case filings and adjusted case filings, respectively. These two measures recognize, to different degrees, that the time demands on judges are largely a function of both the number and complexity of the cases on their dockets. Some types of cases may demand relatively little time and others may require many hours of work. Generally, each case filed in a …

A letter report issued by the General Accounting Office with an abstract that begins "Improving the federal hiring process is critical, as the number of new hires is expected to increase substantially. Federal agencies are responsible for their hiring processes, but must generally comply with applicable Office of Personnel Management (OPM) rules and regulations. Congressional requesters asked GAO to identify federal hiring obstacles, provide examples of innovative hiring practices, and identify opportunities for improvement. To address these issues, GAO interviewed the human resources directors in 24 largest departments and agencies, analyzed the hiring practices of five federal executive branch agencies, and reviewed OPM's role in the hiring process."

A letter report issued by the General Accounting Office with an abstract that begins "As part of its annual audits of IRS's financial statements, GAO assessed the effectiveness of information security controls at certain IRS facilities and over certain specific applications--controls meant to protect IRS's information systems and taxpayer data. Because the detailed reports that followed these reviews contained sensitive information and could be detrimental to the government if released to the public, they were issued only to IRS and congressional requesters. This public report is based on 18 such reports issued during the 3-year period ending July 31, 2002. Although it does not identify specific IRS facilities or applications, the report does provide GAO's assessment of the overall effectiveness of IRS's information security."

A letter report issued by the General Accounting Office with an abstract that begins "The first step of the U.S. Army's ongoing transformation was to form two of six planned Interim, or Stryker, Brigade Combat teams and equip the brigades with a new interim armored vehicle--the Stryker. The fiscal year 2001 National Defense Authorization Act required the Secretary of the Army to develop a plan to compare the operational effectiveness and cost of an infantry carrier variant of the Stryker and a medium Army armored vehicle, the Department of Defense's (DOD) director of testing and evaluation approve the plan, and the Army to conduct the operational effectiveness and cost comparison. The Secretary of Defense was also to certify to Congress that Stryker Brigades did not diminish the Army's combat power. As part of a series of ongoing reviews of Army transformation, GAO monitored the Army's 2002 efforts to (1) assess whether the Army's plan for the comparison met the legislative requirements and (2) determine whether the evaluation's resulting data were sufficient to measure the two vehicles' relative effectiveness."

A letter report issued by the General Accounting Office with an abstract that begins "To accelerate the modernization and improve the performance of the air traffic control system, the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) created the Air Traffic Services Subcommittee (subcommittee) to over see the air traffic control system and help the Federal Aviation Administration (FAA) address long-standing weaknesses in its modernization program. The subcommittee is part of an aviation advisory council and consists of five private sector members with business expertise. AIR-21 gave the subcommittee the authority to approve strategic plans, budgets, and procurements over $100 million. In addition, AIR-21 required the FAA to hire a chief operating officer to manage the day-to-day operations. AIR-21 mandated that GAO report on the success of the subcommittee in improving the performance of the air traffic control system. Accordingly, as we agreed with the congressional committees' offices, GAO reviewed the (1) actions taken by the subcommittee to carry out its oversight responsibilities and the obstacles that it encountered in doing so and (2) changes to the subcommittees' organization and oversight responsibilities that have been proposed to improve the performance of the air traffic control …

A letter report issued by the General Accounting Office with an abstract that begins "The attacks of September 11, 2001, intensified long-standing concerns about the adequacy of safeguards and security at four nuclear weapons production sites and three national laboratories that design nuclear weapons--most of these facilities store plutonium and uranium in a variety of forms. These facilities can become targets for such actions as sabotage or theft. The Department of Energy (DOE) and the National Nuclear Security Administration (NNSA)--a separately organized agency within DOE--are responsible for these facilities. NNSA plays a crucial role in managing the contractors operating many of these facilities to ensure that security activities are effective and in line with departmental policy. GAO reviewed how effectively NNSA manages its safeguards and security program, including how it oversees contractor security operations."

A letter report issued by the General Accounting Office with an abstract that begins "Congress established the HOPE VI program to revitalize severely distressed public housing. In fiscal years 1993 to 2001, the Department of Housing and Urban Development (HUD) awarded approximately $4.5 billion in HOPE VI revitalization grants. The Ranking Minority Member, Subcommittee on Housing and Transportation, Senate Committee on Banking, Housing, and Urban\ Affairs, asked GAO to examine HUD's process for assessing grant applications, the status of work at sites for which grants have been awarded, and HUD's oversight of HOPE VI grants."

A letter report issued by the General Accounting Office with an abstract that begins "About $1 trillion in income was distributed in 2001 by flow-through entities such as partnerships and trusts. These entities do not pay taxes on flow-through income. They report it to the Internal Revenue Service (IRS) on a Schedule K-1 and their partners or beneficiaries pay any tax. Concerned about underreporting, IRS began matching the flow-through income reported on Schedule K-1s with that reported on individuals' returns. In 2002, IRS began sending notices to taxpayers about suspected noncompliance. After complaints that many notices were going to compliant taxpayers, IRS stopped sending notices. Concerned about the burden, Congress asked GAO to, among other things, (1) describe the burden caused by the notices and IRS's rationale for stopping them, (2) assess IRS's management of the program, and (3) describe the steps IRS will take to address any problems."

A letter report issued by the General Accounting Office with an abstract that begins "Strategic workforce planning helps ensure that agencies have the right people with the right skills in the right positions to carry out the agency mission both in the present and future. The Internal Revenue Service's (IRS) Taxpayer Education and Communication (TEC) unit within its Small Business and Self- Employed Division assists some 45 million small business and self-employed taxpayers. Given the number of taxpayers it is to assist and changes in its priorities and strategies, GAO was asked to determine whether TEC has a workforce plan that conforms to critical elements for what should be in a plan and how it should be developed and implemented."

A letter report issued by the General Accounting Office with an abstract that begins "Since 1994, the Agriculture Appropriations Act has prohibited the funding of tobacco export programs and restricted the U.S. Department of Agriculture's (USDA) tobacco-related activities. Since 1998, the Commerce, Justice, and State Appropriations Act has placed similar restrictions on the Departments of Commerce and State and the Office of the U.S. Trade Representative (USTR), although it has not prohibited them from addressing foreign discriminatory trade practices. Congressional requesters asked GAO to (1) assess the agencies' guidance on the restrictions to their overseas personnel, (2) describe how the agencies' activities changed in response to the restrictions, and (3) identify the mechanisms that the agencies use to monitor compliance."

A letter report issued by the General Accounting Office with an abstract that begins "From 1992 through 2001, more than 50,000 people were killed in crashes involving large commercial trucks. Although more than 6,800 of these fatalities were truck occupants, approximately 40,000 were passengers in other vehicles and more than 4,000 were nonmotorists. The Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) conducts a number of truck safety programs, including the Share the Road Safely program, whose goal is to educate the public about driving safely around large trucks. GAO examined (1) whether the program's initiatives are linked to this goal and (2) how FMCSA evaluates its Share the Road Safely program. GAO recommends that the Department of Transportation (DOT) ensure that the Share the Road Safely program initiatives are directly linked to the program's goal and establish a systematic"

A letter report issued by the General Accounting Office with an abstract that begins "The United Nations (U.N.) estimates that its planned renovation of the seven buildings on the Headquarters complex could cost almost $1.2 billion. As the host country and the largest contributor to the United Nations, the United States has a significant interest in this project. This report (1) assesses the reasonableness of the U.N. process to develop the renovation plans, (2) analyzes the potential cost to the United States, (3) identifies critical milestones before construction can begin, and (4) discusses efforts to monitor and oversee the project."

A letter report issued by the Government Accountability Office with an abstract that begins "In accordance with Public Law 108-324, GAO is required to audit the reimbursement of up to $70 million of appropriated funds to the American Red Cross (Red Cross) for disaster relief associated with 2004 hurricanes Charley, Frances, Ivan, and Jeanne. The audit was performed to determine if (1) the Federal Emergency Management Agency (FEMA) established criteria and defined allowable expenditures to ensure that reimbursement claims paid to the Red Cross met the purposes of the law, (2) reimbursement funds paid to the Red Cross did not duplicate funding by other federal sources, (3) reimbursed funds assisted only eligible states and territories for disaster relief, and (4) reimbursement claims were supported by adequate documentation. The 2004 hurricane season was one of the most destructive in U.S. history. Fifteen named storms resulted in 21 federal disaster declarations. Four hurricanes affecting 19 states and 2 U.S. territories from August 13 through September 26, 2004, triggered the nation's biggest natural-disaster response up to that time. Over 150 deaths and $45 billion of estimated property damage are attributed to hurricanes Charley, Frances, Ivan, and Jeanne in the United States alone. Through …

A letter report issued by the Government Accountability Office with an abstract that begins "As part of its Disability Compensation program, the Department of Veterans Affairs (VA) provides Individual Unemployability (IU) benefits to veterans of any age who are unemployable because of service-connected disabilities. Over the last decade, the number of IU beneficiaries and benefit costs have more than tripled. In 2005, about 220,000 veterans received an estimated $3.1 billion in IU benefits. In response to a congressional request, GAO assessed VA's management of IU benefits. This report (1) examines the added value of IU benefits for veterans of selected ages and disability ratings, (2) assesses the criteria, guidance, and procedures used for initial decision making, (3) assesses VA's ongoing eligibility enforcement procedures, and (4) compares VA's decision-making and enforcement procedures with those used by other disability programs."