Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Aviation Hall of Fame for 1999 and 1998. GAO found no reportable instances of noncompliance with applicable law, and the audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the American War Mothers, for fiscal year 2000, to determine whether the report complied with the financial reporting requirements of the law. GAO found no reportable instances of noncompliance with applicable law, and the audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "Since May 2000, California's restructured electricity market has experienced rapidly rising prices and uncertain reliability. In response to disruptions in service, or blackouts, the state has taken steps to increase electricity supplies and to reduce demand through conservation. The California Independent System Operator, the agency in charge of balancing electricity supply with demand, expects high prices and disruptions to persist, and perhaps even worsen, in the summer of 2001. This report reviews (1) the condition of California's electricity market, including changes in demand, supply, and prices; (2) the extent to which the Department of Defense (DOD) can help enhance western electricity supplies during the summer of 2001; and (3) available private backup generation resources and any benefits and problems associated with their deployment. GAO found that electricity demand has risen sharply in recent years while supply has not kept up with the demand, causing higher prices. DOD could help augment western electricity supplies by generating an estimated 90 megawatts of electricity and implementing conservation initiatives. The use of private generation is limited because of business and environmental risks."

Correspondence issued by the General Accounting Office with an abstract that begins "Medicare is highly vulnerable to fraud, waste, and abuse. The enforcement of program payment rules, however, has raised concerns that these safeguards may have imposed too great a burden on health care providers. The proposed Medicare Education and Regulatory Fairness Act would seek to address some of these concerns by providing expedited procedures for provider appeals, new options for providers to use in repaying Medicare overpayments, protections for providers who voluntarily return overpayments or ask for a review of their claims, and new requirements for provider education. This report reviews how this proposed legislation would affect Medicare policies and procedures in (1) provider education and participation, (2) medical reviews, audits, and appeals, (3) recovery of overpayments, and (4) related legal issues."

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the challenges facing U.S. agricultural biotechnology products in international trade. GAO found that new regulations and guidelines that may restrict U.S. exports of crops with a large biotech component are being enacted or considered by some U.S. trading partners and are also under discussion in various international organizations. These actions address approval, labeling, and traceability of agricultural biotech products. U.S. corn and soybean exports are most threatened by new foreign regulatory measures because of their biotech content. Although U.S. soybean exports have not yet experienced disruptions, U.S. corn exports have been largely shut out of the European Union (EU) market because U.S. farmers are producing some biotech varieties that have not been approved for marketing in the EU. U.S. agricultural biotech exports face several significant challenges in international markets. First, as the single major producer of biotech products, the United States has been relatively isolated in its efforts to maintain access to markets for these products. Second, in many parts of the world, consumer concerns are growing about the safety of biotech foods, which have led key market countries to implement or consider …

A letter report issued by the General Accounting Office with an abstract that begins "The Defense Logistics Agency (DLA) plays a critical role in supporting America's military forces worldwide. DLA employs about 28,000 civilian and military workers at about 500 sites in all 50 states and 28 countries; in round numbers, it manages 4 million supply items and processes 30 million annual supply distribution actions. This report reviews DLA's efficiency and effectiveness in managing it is Business Systems Modernization (BSM) acquisition program. Specifically GAO determines (1) whether DLA is using an enterprise architecture to guide and constrain its investment in (BSM) and (2) whether DLA is investing in BSM in an incremental manner. GAO found that DLA does not have an enterprise architecture to guide its investment in BSM. DLA plans call for creating an architecture as a byproduct of BSM's implementation. In addition, GAO found that DLA has not been managing its investment in this program in an incremental manner; that is, DLA has not treated the first of its four planned incremental releases of BSM as a separate investment decision. Instead, DLA has thus far treated the entire BSM program as a single investment decision, according to BSM …

Correspondence issued by the General Accounting Office with an abstract that begins "This report discusses (1) whether the goals of the Internal Revenue Service (IRS) Restructuring Act's goals are realistic and (2) disagreements between the IRS Oversight Board, the Treasury Inspector General for Tax Administration (TIGTA), and GAO on the act's funding issues. GAO found that the act's goals of meeting taxpayers' needs while ensuring compliance with the tax laws require a massive modernization of IRS. These changes involve major management challenges and will require considerable time to implement. Although IRS officials believe that they have complied with the act's requirements, they are still learning how to effectively manage in the new environment. GAO believes that it is premature to consider significant changes to the act. Differences exist among the Oversight Board, TIGTA, and GAO with respect to specific IRS funding issues."

A letter report issued by the General Accounting Office with an abstract that begins "Since 1992, Congress has authorized more than $3 billion for the Cooperative Threat Reduction (CTR) program to help Russia, Belarus, Ukraine, Kazakhstan, Uzbekistan, Moldova, and Georgia secure and eliminate weapons of mass destruction. Concerned about proper oversight of equipment and services provided by the program, Congress required the Department of Defense (DOD) to report annually on whether the assistance was being used as intended. This report reviews (1) whether DOD's oversight procedures produce the necessary information to determine if the threat reduction assistance, including equipment provided and services furnished, is being used as intended and (2) whether DOD can improve its oversight. GAO found that DOD has procedures in place that reasonably ensure that at least 95 percent of the assistance is being used as intended and is adequately accounted for. Because of access restrictions imposed by the Russian government, a limited amount of equipment--less than five percent of the total value of assistance provided--is in locations where access by U.S. personnel is not permitted. DOD can enhance the quality of its program oversight by better targeting and expanding the scope of its formal audit and …

Correspondence issued by the General Accounting Office with an abstract that begins "Research and development are major factors in the growth and progress of industry and the national economy. However, basic research done by the nation's research institutions--universities and colleges, federal laboratories, and nonprofit research centers--may not translate into marketable technologies. To link the ideas and resources of the research institutions with the commercialization experience of small businesses, Congress authorized the Small Business Technology Transfer (STTR) Pilot Program in 1992 and reauthorized it in fiscal year 1997. The STTR program is scheduled to expire in September 2001. Each of the five participating federal agencies manages its own program, while the Small Business Administration plays a central administrative role, issuing policy directives and annual reports for the program. The program, which requires that small businesses partner with a nonprofit research institution, is closely modeled to the Small Business Innovation Research (SBIR) Program. In preparation for the review and potential reauthorization of the STTR program, this correspondence identifies participating companies' views on (1) the contributions that the companies and the research institutions made to research and development, (2) the results of research and development, and (3) options for the future relationship between …

Correspondence issued by the General Accounting Office with an abstract that begins "This report evaluates how the Small Business Administration (SBA) has managed its Women's Business Center Program. GAO found that the two offices that run the program--the Office of WOmen's Business Ownership (program office) and the Office of Procurement and Grants (grants office)--have addressed the weaknesses cited in GAO's 1999 report. For example, files from the program office that GAO reviewed were generally complete, and the few documents that GAO could not locate were provided promptly. The program office was also able to provide various historical documents for 1999 and 2000, and the program office and grants office had tried to improve coordination with each other, such as through better recordkeeping."

Correspondence issued by the General Accounting Office with an abstract that begins "Some Lyme disease patients and Lyme disease organizations are concerned that federal agencies and advisors have financial interests that may affect their decisions on the funding of Lyme disease research and the approval of Lyme disease products. These agencies include the Centers for Disease Control (CDC), the National Institutes of Health (NIH), and the Food and Drug Administration (FDA). This report reviews (1) the financial interests that CDC, NIH, and FDA employees and members of advisory committees working on Lyme disease have reported and (2) how these agencies addressed any potential conflicts of interest identified in those reports. GAO found that CDC, NIH, and FDA have generally met the requirements for disclosure and review of financial interests related to Lyme disease. Employees and special government employees (SGE's) working on Lyme disease-related activities have reported financial holdings in, and arrangements with, health sector firms, travel paid for by health sector firms, and patents related to Lyme disease. Program officials and agency officials reviewed the interests of the employees and determined that they did not present conflicts."

A briefing report issued by the General Accounting Office with an abstract that begins "The High-Speed Rail Investment Act of 2001 would allow the National Railroad Passenger Corporation (Amtrak) to issue up to $12 billion in "tax credit bonds" over 10 years, primarily for capital improvement projects designated high-speed rail corridors and on Amtrak's Northeast Corridor. This report reviews the (1) cost of the bond-financing mechanism and alternatives to the U.S. Treasury, (2) degree to which bond proceeds would meet the capital needs of federally designated high-speed rail corridors, and (3) extent of the federal oversight role. GAO found that the estimated tax credit for Amtrak bonds would cost the U.S. Treasury between $16.6 billion and $19.1 billion (in nominal dollars) over 30 years. The overall capital needs of fully developed federally designed high-speed rail corridors are unknown because these initiatives are in various stages of planning, but preliminary estimates by Amtrak puts the capital costs for fully developed high-speed rail corridors and its Northeast Corridor at between $50 billion and $70 billion over 20 years.The proposed legislation would require the Secretary of the Treasury to report annually on whether the amount of money in the trust account is sufficient …

Correspondence issued by the General Accounting Office with an abstract that begins "This report reviews the Environmental Protection Agency's (EPA) administration of grants for environmental programs and projects. GAO focuses on the (1) total dollar amounts by type of grants awarded, (2) type of entities receiving these grants, (3) EPA offices awarding grants, and (4) congressional and other concerns raised by EPA grant activities. GAO found that EPA awarded about $16.7 billion in grants for fiscal years 1996 through 2000. States were the major recipients of continuing environmental program funds, while nonprofit organizations were the major recipients of project grants. EPA's Office of Water awarded half of all continuing environmental program grants, while the Offices of Solid Waste and Emergency Response, Research and Development, and Water awarded most project grants. Congressional committees and EPA's Inspector General conducted several inquiries into EPA's management of grants."

Correspondence issued by the General Accounting Office with an abstract that begins "As the electricity industry restructures, California and the west have witnessed extraordinarily high wholesale prices and sharp limitations on the availability of electricity. In California, high prices have led to financial problems for the state's utilities, power outages, and rate increases. In other Western states, the high prices have also led to rate increases for consumers. This report assesses the outlook for California's electricity supplies this summer. Because of a lack of timely direct access to key information and limitation in other data, GAO was unable to assess likely conditions in California. To make an independent, reliable assessment, GAO would need access to data underlying key supply and demand factors, such as power plant outages and electricity supplies that could be imported into California. Furthermore, forecasts of California's electricity market show stark differences in the expected conditions this summer."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Marine Corps League for fiscal years 2000 and 1999. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "The Lawrence Livermore National Laboratory, run by the University of California, is building the National Ignition Facility (NIF) to simulate, in a laboratory setting, the thermonuclear conditions created in nuclear explosion. The facility will allow scientists to evaluate the behavior of nuclear weapons without explosive testing. This report reviews (1) the role of NIF in the Stockpile Stewardship Program; (2) the relationship of NIF to other Stockpile Stewardship Program elements; (3) the impact of delays in constructing NIF on the Stockpile Stewardship Program; (4) funds spent to date on the project so far; and (5) whether the new baseline has clear goals, adequate and sustainable funding, and achievable milestones. GAO found that NIF is expected to contribute to DOE's Stockpile Stewardship by attracting new scientists, supporting the stockpile's refurbishment, and supporting research to improve the understanding of weapons science. DOE has yet to certify that the completion of NIF will not harm the balance of the Stockpile Stewardship Program. Future delays in constructing NIF may adversely affect DOE's ability to conduct weapons science research. DOE has spent $1.3 billion on the NIF project through fiscal year 2000, plus …

Correspondence issued by the General Accounting Office with an abstract that begins "In May 2001, GAO issued its opinions on the calendar year 2000 financial statements of the Bank Insurance Fund, Savings Association Insurance Fund, and FSLIC Resolution Fund. GAO also issued its opinion on the effectiveness of the Federal Deposit Insurance Corporation's (FDIC) internal control as of December 31, 2000, and its evaluation of FDIC's compliance with selected provisions of laws and regulations for the three funds for the year ended December 31, 2000. This report reviews the internal control weaknesses identified during GAO's audits of the 2000 financial statements, and recommends improvements to address those weaknesses. GAO found that FDIC has several internal control weaknesses related to financial reporting, including the execution of transactions. The weaknesses concern its asset valuation process and its allocation and recovery expenses. Specifically, GAO found that (1) errors in valuing receivership assets caused both overstatements and understatements in determining the allowance for loss related to receivables; (2) a calculation error in valuing equity partnership assets caused an overstatement in the allowance for loss related to other assets; and (3) incorrect operating expense amounts were allocated and recovered, which resulted in the incorrect distribution …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Military Chaplains Association of the United States of America for 1999 and 1998. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "This report discusses information that the Federal Bureau of Investigation (FBI) provided to Congress on its investigation of Wen Ho Lee, a scientist formerly employed at the Los Alamos National Laboratory. GAO focuses on whether the congressional testimony of Neil J. Gallagher, Assistant Director of the FBI's National Security Committee, was false or purposely misleading. GAO found that part of Mr. Gallagher's testimony before the Senate Committee on Governmental Affairs, in which he expressed full confidence in an administrative inquiry by the Department of Energy, was inaccurate and misleading. Mr. Gallagher had ample opportunity to know and should have known that the FBI's Albuquerque Field Office had concerns about the administrative inquiry. Although GAO concluded that Mr. Gallagher's testimony was inaccurate, GAO was unable to determine whether he intentionally misled the Committee."

A letter report issued by the General Accounting Office with an abstract that begins "The number of federal and state inmates released to communities increased more than threefold from 1980 to 1998. Since 1980, recidivism rates have been about 40 percent. Within the group of recidivists, the number of offenders reincarcerated for violating parole or other release conditions rose more than sevenfold from 1980 to 1998. Furthermore, such reincarcerations represent an increasing proportion of all prison admissions. The Bureau of Justice Statistics' (BJS) 1997 survey found that most federal offenders (62 percent) were imprisoned for drug offense convictions, and almost half (47 percent) of all state offenders were incarcerated for violent offense convictions. Also, the majority of inmates in both correctional systems--federal inmates (73 percent) and state inmates (83 percent)--had some history of illegal drug use. BJS' survey also showed that 27 percent of both federal and state exit cohort inmates participated in vocational training programs, and 11 percent of federal and 2 percent of state exit cohort inmates worked in prison industry jobs. In addition, 33 percent of the federal inmates and 36 percent of the state inmates participated in residential in-patient treatment programs for alcohol and drug abuse. …

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of the Interior's fiscal year 2000 performance report and fiscal year 2002 performance report plan required by the Government Performance and Results Act. Specifically, GAO discusses Interior's progress in achieving the following four outcomes: (1) maintaining the health of federally managed land, water, and renewable resources; (2) ensuring visitors' satisfaction with the availability, accessibility, diversity, and quality of national parks; (3) meeting the federal government's responsibility to preserve and protect Indian trust lands and resources; and (4) ensuring the safe and environmentally sound development of mineral resources. GAO could not judge the agency's progress in promoting the health of federally managed land, water, and renewable resources because the goals Interior has reported do not foster a broad or departmentwide approach to measuring progress. Although the Park Service's strategies for continuing to meet and exceed its visitor satisfaction and visitor education goals appear clear and reasonable, the agency's fiscal year 2002 performance plan lacks information on the strategic human capital management strategies to achieve this outcome. GAO cannot judge the Bureau of Indian Affairs' progress in protecting Indian trust lands and resources …

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of Health and Human Service's (HHS) fiscal year 2000 performance report and fiscal year 2002 performance plan required by the Government Performance and Results Act of 1993 to assess HHS' progress in achieving selected key outcomes that are important to its mission. It is difficult to fully assess the HHS' progress in fiscal year 2000 toward achieving the outcomes GAO reviewed because lags in reporting performance data are common for many of its components such as the Administration for Children and Families (ACF), Centers for Disease Control and Prevention (CDC), the Substance Abuse and Mental Health Services Administration, and the Food and Drug Administration. In some cases, the delays are associated with the need to obtain performance data from states and local organizations. Some HHS components are working to improve the timeliness of data submitted by others and, in some instances, have reported trend data to show that progress is being made. For example, both ACF and CDC supplied fiscal year 1999 performance data in their current performance reports--data that were not available until this year. It is likely that ACF's …

Correspondence issued by the General Accounting Office with an abstract that begins "This report reviews the data, assumptions, and conclusions reached by the General Services Administration (GSA) and the Patent and Trademark Office (PTO) on the acquisition of about two million square feet of leased space for the consolidation of PTO activities. This build-to-suit lease, valued at approximately $1.2 billion over its 20-year term, was signed in June 2000. this report responds to allegations and questions from two public interest groups about the PTO lease acquisition. One public interest group alleged that during the procurement process for the lease (1) GSA improperly awarded the lease to an offeror who had not complied with the solicitation's stated requirements, (2) GSA failed to compete the construction of the interior finishes phase of the project as required by law, and (3) GSA used an illegal cost-plus-a-percentage-of-cost contract. The second public interest group asked (1) whether the requirements in GSA's Solicitation for Offers for the PTO lease transformed the lease from an operating lease to a capital lease under Office of Management and Budget (OMB) Circular A-11; (2) whether the new facility will be able to house all PTO employees and contractors throughout the …

Correspondence issued by the General Accounting Office with an abstract that begins "This report responds to congressional questions about GAO's hearing on the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2001. This report discusses the (1) importance of disciplining managers and employees who engage in discriminatory practices, (2) settlement process, and (3) U.S. Postal Service's antidiscrimination programs."