A letter report issued by the General Accounting Office with an abstract that begins "The Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 requires GAO to review various aspects of the Department of Defense (DOD) policy that allows Defense Working Capital Fund activities to carry over a 3-month level of work from one fiscal year to the next. The DOD 3-month carryover standard applies to all DOD activity groups except for the contract portion of the Air Force depot maintenance activity group, for which DOD established a 4.5-month carryover standard because of the additional administrative functions associated with awarding contracts. Reported carryover balances for fiscal years 2000 and 2001 were inaccurate and, therefore, the balances were not reliable for decision-making or budget review purposes. The reported carryover balances were not accurate due to (1) faulty assumptions used in calculating work-in-process and (2) records not accurately reflecting work that was actually completed by year-end. As a result, the amount of carryover reported by the Air Force was understated by tens of millions of dollars and customers' funds were idle that could have been used for other purposes during the fiscal year. Even though the carryover was understated, Air …

A letter report issued by the General Accounting Office with an abstract that begins "Although fossil fuels--coal, natural gas, and oil--account for more than two thirds of the nation's electricity, generating units that burn these fuels are major sources of airborne emissions that pose health and environmental risks. To limit emissions and protect air quality, the Environmental Protection Agency regulates emissions of sulfur dioxide and nitrogen oxides from a variety of sources including electricity generating units that burn fossil fuels, other industrial sources, and automobiles. Older electricity generating units--those that began operating before 1972--emit 59 percent of the sulfur dioxide, 47 percent of the nitrogen oxides, and 42 percent of all electricity produced by fossil-fuel units. Units that began operating in or after 1972 are responsible for the remainder of the emissions and electricity production. For equal quantities of electricity generated, older units, in the aggregate, emitted twice as much sulfur dioxide and 25 percent more nitrogen oxides than newer units which must meet the new source standards for these substances. Older and newer units emitted about the same amount of carbon dioxide for equal quantities of electricity generated. Of the older units, those in the Mid-Atlantic, Midwest, and Southeast …

A chapter report issued by the General Accounting Office with an abstract that begins "Thousands of the Federal Aviation Administration (FAA) controllers will soon be eligible to retire because of extensive hiring in the 1980's to replace striking air traffic controllers. Although the exact number and timing of the controllers' departures has not been determined, attrition scenarios developed by both FAA and GAO indicate that the total attrition will grow substantially in both the short and long term. As a result, FAA will likely need to hire thousands of air traffic controllers in the next decade to met increasing traffic demands and to address the anticipated attrition of experienced controllers, predominately because of retirement. FAA has yet to developed a comprehensive human capital workforce strategy to address its impending controller needs. Rather, FAA's strategy for replacing controllers is generally to hire new controllers only when current, experienced controllers leave. This does not take into account the potential increases in future hiring and the time necessary to train replacements. In addition, there is uncertainty about the ability of FAA's new aptitude test to identify the best controller candidates. Further, FAA has not addressed the resources that may be needed at its …

A chapter report issued by the General Accounting Office with an abstract that begins "This report discusses the nature and extent of dismantlement, removal, and restoration requirements for oil industry activities that are occurring on both federal and state lands located on the North Slope of the state of Alaska. The state of Alaska, which owns the lands where most of the North Slope's current oil production occurs, has adopted general dismantlement, removal, and restoration requirements that contain no specific stipulations on what infrastructure must be removed or to what condition the lands used for oil industry activities must be restored once production ceases. Alaska's requirements are similar to those of some states but less explicit than those of other states, which create a fixed obligation to fully restore the land according to specific requirements. Until the state of Alaska defines the condition in which it would like its lands returned, there is no way to accurately estimate the cost of dismantling and removing the infrastructure and restoring the disturbed land on Alaska's North Slope. Existing financial assurances, such as bonding requirements, ensure the availability of only a small portion of the funds that are likely to be needed to …

A letter report issued by the General Accounting Office with an abstract that begins "The Balanced Budget and Emergency Deficit Control Act of 1985 requires that the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) issue sequestration reports annually to Congress. Overall, GAO found that OMB and CBO substantially complied with the act in fiscal year 2002. However, as in previous years, some of the required OMB and CBO reports were issued late. Further, GAO identified a total of 19 items where differences of over $500 million existed between CBO's and OMB's scoring of discretionary budget authority and/or outlays for enacted laws."

Testimony issued by the General Accounting Office with an abstract that begins "The District of Columbia Superior Court has made progress in planning the transition of its Family Division to a Family Court, but some challenges remain. The Superior Court's transition plan addresses most, but not all, of the required elements outlined in the District of Columbia Family Court Act of 2001. Significantly, the completion of the transition hinges on timely completion of a complex series of interdependent plans intended to obtain and renovate physical space to house the court and its functions. All required space may not be available, as currently planned, to support the additional judges the Family Court needs to perform its work in accordance with the act, making it uncertain as to when the court can fully complete its transition. Although not required as part of its transition plan efforts, the Superior Court has begun to coordinate its activities with social services agencies in the District. However, the court and agencies face challenges in achieving coordinated services in the longer term. Finally, the development and application of the District of Columbia Courts' Integrated Justice Information System will be critical for the Family Court to be able …

A letter report issued by the General Accounting Office with an abstract that begins "According to United Nations data, Cambodia has received more than $3 billion in assistance since 1993. Although Cambodia has achieved relative peace and stability, continued widespread corruption and a weak judicial system undermine efforts to reduce poverty and foster economic growth. Since 1993, the United States has provided Cambodia with over $200 million to reduce poverty and foster economic growth. This assistance has included programs to strengthen democracy, improve education and health care, and address problems posed by land mines. To address weaknesses in Cambodia's economic, social, and legal foundations, the Cambodian government and international donors of financial and technical assistance have established goals for strengthening governance in seven areas: increasing government revenue and strengthening budget management; creating a smaller, more professional military; providing Cambodian citizens with legal titles to land; developing Cambodia's weak legal framework and establishing an independent and competent judiciary; reducing risks in corrupt activities in the public sector and making public officials more accountable for their behavior; restructuring the civil service so that it can effectively provide services such as health care, primary education, and licenses to begin businesses; and preserving Cambodia's …

Testimony issued by the General Accounting Office with an abstract that begins "The Commercial Activities Panel is a congressionally mandated panel to study, and make recommendations for improving, the policies and procedures governing the transfer of commercial activities from government to contractor personnel. The growing controversy surrounding competitions under the Office of Management and Budget's Circular A-76 to determine whether the government should obtain commercially available goods and services from the public or private sectors led to the establishment of this Panel. In establishing the Panel, several steps were taken to ensure representation from all major stakeholders as well as to ensure a fair and balanced process. To ensure a broad range of views on the Panel, a Federal Register notice was used to seek suggestions for the Panel's composition. As the Panel began its work, it recognized the need for a set of principles for sourcing decisions. These principles provide for an assessment of what does or does not work in the current A-76 process and provide a framework for identifying needed changes. Many of the Panel's recommendations can be accomplished administratively under existing law, and the Panel recommends that they be implemented as soon as practical. The Panel …

Correspondence issued by the General Accounting Office with an abstract that begins "Under the Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) program, entitlement communities--also called grantees--receive funds that they can spend to support specific community development activities, such as rehabilitating housing, improving public facilities, and providing public services. Most grantees are prohibited by statute from spending more than 15 percent of their CDBG funding on public service activities, such as child care, health care, and crime prevention. However, in the aftermath of the 1992 Los Angeles civil unrest, Congress gave an exemption from this statutory cap to two grantees--the City of Los Angeles and the County of Los Angeles--allowing them to spend up to 25 percent of their funds on public services. In December 2001, the exemption was extended through 2003. Between 1993 and 2001, the City of Los Angeles spent between 20 and 25 percent of its CDBG funding to support public service activities, while the County of Los Angeles spent between 9 and 20 percent. According to HUD data for 1999 through 2001, the city and county used a majority of their public service funding to support general public services and either youth …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the roles and responsibilities of the General Services Administration's (GSA) Federal Supply Service (FSS) and Federal Technology Service (FTS). Specifically, (1) the possible impact of the current FSS/FTS overlap on the prices paid for and quality of the services provided customer agencies by FSS and FTS, (2) whether the use of streamlined practices and procedures could result in savings and increases in service effectiveness, and (3) whether the statement of work that governs the study of the FSS and FTS that GSA has under contract will likely result in the kind of information needed to assess whether the current organization needs to be restructured."

A letter report issued by the General Accounting Office with an abstract that begins "For decades, the Navy has been striving to improve its ability to detect potential enemy submarines before they can get within effective weapons range of U.S. forces. In 1985, the Navy established the Surveillance Towed Array Sensor System (SURTASS) Low Frequency Active (LFA) sonar program to develop a long-range capability for detecting a new generation of quieter Soviet nuclear and diesel submarines operating principally in the open ocean. However, as the Navy conducted testing of the system in the mid-1990s, some public interest groups and scientists raised concerns that SURTASS/LFA may cause harm to marine mammals. The Navy discontinued operational testing of the system and initiated an environmental impact statement process. The Navy will not begin testing or operating the system until it receives a Letter of Authorization from the National Marine Fisheries Service. A decision on the authorization is expected later in 2002. SURTASS/LFA will increase the Navy's capability to detect submarines in the open ocean, where the system was originally intended to operate. The Navy has considered a number of existing alternatives to SURTASS/LFA and found that the system provides long-range detection capabilities not …

A letter report issued by the General Accounting Office with an abstract that begins "The military services face significant challenges in addressing facility sustainment, restoration, and modernization needs with limited funds. These challenges are magnified by the 20 to 25 percent of the Department of Defense's (DOD) real property that it views as not being needed to meet current mission requirements, but that adds to costs. To reduce these costs and acquire additional resources to maintain its facilities, DOD has developed a multi-part strategy involving base realignment and closure, housing and utility privatization, competitive sourcing of non-inherently governmental functions, and demolition of facilities that are no longer needed. Although the services continue to use the leasing authority provided for traditional type of leases, they have made limited efforts to use the expanded leasing authority enacted by Congress in fiscal year 2001. The services have identified a number of impediments that have limited the use of the expanded leasing authority and that could adversely affect the program in the future."

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense reports that is has been faced with difficulties adequately maintaining its facilities to meet mission requirements. Facilities have been aging and deteriorating as funds needed to sustain and recapitalize the facilities have fallen short of requirements. GAO's review of the services' condition assessments in conjunction with visits to the basic training locations showed that most barracks were in need of significant repair, although some barracks were in better condition than others. GAO found that the exteriors of each service's barracks were generally in good condition and presented an acceptable appearance, but the barracks' infrastructure often had persistent repair problems because of inadequate maintenance. The services' approaches to recapitalize their recruit barracks vary and are influenced by their overall priorities to improve all facilities. Although the Navy, Air Force, and Marine Corps are addressing many of their recapitalization needs in the near-term, most of the Army's plans are longer term."

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) Defense Working Capital Fund was used to buy $70 billion in commodities in fiscal year 2001. This amount is estimated to grow to $75 billion for fiscal year 2003. The department's financial management regulation states that fund activities will operate in a business-like fashion and incorporate full costs in determining the pricing of their products. The National Defense Authorization Act for Fiscal year 2001 requires that GAO review the working capital fund activities to identify any potential changes in current management processes or policies that would result in a more efficient and economical operation. The act also requires that GAO review the Defense Logistics Agency's (DLA) efficiency, effectiveness, and flexibility of operational practices and identify ways to improve services. One such DLA activity, the Defense Energy Support Center, sold $4.7 billion of various petroleum-related products to the military services in fiscal year 2001. DOD's fuel prices have not reflected the full cost of fuel as envisioned in the working capital fund concept because cash movements to the fund balance and surcharge inaccuracies have affected the stabilized annual fuel prices. Over $4 …

Correspondence issued by the General Accounting Office with an abstract that begins "To meet long-standing concerns about the Department of Defense's (DOD) organization and management of national security space activities, Congress chartered the Commission to Assess United States National Security Space Management and Organization to study the organization and management of space activities that support U.S. national security interests and make recommendations for improvements. DOD has decided to take actions related to 10 of the commission's 13 recommendations. These include recommendations for organizational changes aimed at consolidating some activities, changing chains of command, opening lines of communications, and modifying policies to achieve greater responsibility and accountability. Many changes have been implemented within the last few months, and thus related processes and procedures have not been completed. As a result, it is too early to determine whether these changes will enable DOD to promote and protect U.S. interests in space more effectively. Moreover, DOD has not yet completed plans for achieving some long-range goals, such as developing a cadre of space professionals and integrating military and intelligence space activities. The Secretary of Defense chose not to implement three of the commission's recommendations and is instead (1) opting to establish a focal …

A letter report issued by the General Accounting Office with an abstract that begins "The U.S. Army Corps of Engineers' February 1992 Final Interim Feasibility Study and Environmental Impact Statement reported that deepening the Delaware River ship channel from 40 to 45 feet was economically justified and environmentally feasible. However, GAO found that it does not provide a reliable basis for deciding whether to proceed with the project. GAO identified several miscalculations, invalid assumptions, and the use of significantly outdated information on the Corps' benefits estimate. In addition, several unresolved issues and uncertainties were not factored into the Corps' economic analysis, the outcome of which could either increase or decrease the benefits and costs of the project. Because of these shortcomings, the actual economic merits of the project will be unclear until the Corps reanalyzes it. The Corps of Engineers has largely addressed the environmental concerns of federal and state environmental agencies. However, several unresolved issues remain, including the issuance of a permit from the state of Delaware governing construction projects that affect state waters."

Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Energy's (DOE) complex of research and nuclear facilities is not inspected or licensed by an independent external regulator, such as the Nuclear Regulatory Commission (NRC). Instead, DOE and its predecessors have, since 1946, been granted legislative authority to self-regulate nuclear and worker safety in the department's facilities. DOE officials told GAO that (1) the department's current position on external regulation is "neutral" because the Secretary has insufficient information on which to make a decision; (2) another study is needed to develop data on the costs and benefits of making the transition to, and operating under, external regulation, and (3) a realistic implementation plan cannot be developed for the six to nine months DOE estimates the study will take. On the other hand, NRC and the Occupational Safety and Health Administration (OSHA) report that they are prepared to begin regulating the department's 10 science laboratories. The cost of upgrading DOE facilities to regulator standards may not be significant for a variety of reasons. First, NRC concluded from its simulations that few changes to DOE facilities are needed to meet it's licensing requirements. Second, NRC stated that …

Correspondence issued by the General Accounting Office with an abstract that begins "The Secretary of Transportation, in consultation with the Comptroller General, is required by the Department of Transportation and Related Agencies Appropriations Act for FY 2002 to study the transportation of hazardous and radioactive materials and its effects on public health and safety, the environment, and the economy. GAO has had no substantive consultation with the Department of Transportation on the study and only received a draft report one week prior to its scheduled delivery date to Congress. Consequently, GAO has not had the opportunity to perform a comprehensive review of the report's contents or to make timely suggestions for modifications."

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) faces complex financial and management problems that are deeply rooted in DOD's business operations and management culture. During the past 12 years, DOD has begun several broad-based departmentwide reform efforts to overhaul its financial operations and other key business areas. These efforts have been unsuccessful. GAO identified several key elements that are essential to the success of any DOD financial management reform effort. These include (1) addressing the department's financial management challenges as part of a comprehensive, integrated, DOD-wide business reform; (2) providing for sustained leadership and resource control to implement needed reforms; (3) establishing clear lines of responsibility, authority, and accountability for such reform; (4) incorporating results-oriented performance measures and monitoring tied to the reforms; (5) providing appropriate incentives or consequences for action or inaction; (6) establishing and implementing an enterprise architecture to guide and direct financial management and modernization investments, and (7) ensuring effective oversight and monitoring."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony reviews two case studies that clearly demonstrate the need for the Department of Defense (DOD) to reform its business operations. These two case studies are microcosms of the broad management challenges facing DOD that were highlighted in GAO's June 2002 testimony (See GAO-02-784T). GAO provided views on the underlying or root causes of DOD's long-standing inability to successfully reform its business operations, including a lack of sustained top-level leadership, cultural resistance to change, and military service parochialism. In addition, GAO found seven key elements necessary for successful reform, including approaching DOD's broad array of management challenges using an integrated, enterprisewide approach."

A letter report issued by the General Accounting Office with an abstract that begins "The Endangered Species Act of 1973 was enacted to conserve plant and animal species facing extinction as well as their habitats. The act requires that at-risk species that may be candidates for listing and conservation efforts be identified and listed as threatened or endangered, critical habitat that requires special management be identified, proposed projects that could harm the listed species be mitigated, and plans to improve the status of listed species until they no longer need protection be developed and implemented. The U.S. Fish and Wildlife Service (Service) established an endangered species program within its ecological services program to implement the requirements of the act. The Service budgets separately allocates its endangered species program funds by distinct subcategories corresponding to the program areas of recovery, consultation, candidate conservation, listing, and landowner incentives. The Service maintains these allocations by program area as it distributes funds from headquarters to its regional offices and again as the regional offices distribute funds to their field offices. GAO's survey results showed that in fiscal year 2001, of the total time field staff spent on specific endangered species program activities, consultation accounted …

A chapter report issued by the General Accounting Office with an abstract that begins "The Federal Energy Regulatory Commission (FERC) has not yet adequately revised its regulatory and oversight approach to respond to the transition to competitive energy markets. FERC recognizes that the transition from highly regulated monopolies to competitive markets requires a fundamental change in how it does business. However, it has struggled through various strategic planning and other efforts to define the specific strategies, processes, and activities to regulate and oversee these markets. GAO found that FERC (1) has had difficulty recruiting staff because it has trouble competing with private sector salaries; (2) faces the retirement of more than one-quarter of its employees by 2005; (3) has used recruitment bonuses, retention allowances, tuition reimbursement, and flexible work schedules to attract new staff and to retain current employees but has not taken advantage of the full range of personnel flexibilities and tools available to federal agencies, such as special salary rates; and (4) has not developed a strategic human capital management plan to assess its workforce needs and to develop strategies to address them."

A letter report issued by the General Accounting Office with an abstract that begins "During World War I, the U.S. Army operated a large research facility to develop and test chemical weapons and explosives in the area that became the Spring Valley neighborhood in Washington, D.C. Buried ordnance, discovered there in 1993, led to the designation by the Department of Defense (DOD) of 61 acres as a formerly used defense site. Through fiscal year 2001, DOD had spent over $50 million to identify and remove hazards at the site. The government entities involved have identified and removed a large number of hazards, but the number remaining is unknown. The health risks influencing cleanup activities at Spring Valley are the possibility of injury or death from exploding or leaking ordnance and containers of chemical warfare agents and potential long-term health problems from exposure to arsenic-contaminated soil. As of April 2002, the U.S. Army estimated that the remaining cleanup activities would cost $7.1 million and take 5 years. But these estimates are unreliable. GAO summarized this report in congressional testimony (See GAO-02-836T)."

Testimony issued by the General Accounting Office with an abstract that begins "During World War I, the U.S. Army operated a large research facility to develop and test chemical weapons and explosives in the area that became the Spring Valley neighborhood in Washington, D.C. Buried ordnance, discovered there in 1993, led to the designation by the Department of Defense (DOD) of 61 acres as a formerly used defense site. Through fiscal year 2001, DOD had spent over $50 million to identify and remove hazards at the site. The government entities involved have identified and removed a large number of hazards, but the number remaining is unknown. The health risks influencing cleanup activities at Spring Valley are the possibility of injury or death from exploding or leaking ordnance and containers of chemical warfare agents and potential long-term health problems from exposure to arsenic-contaminated soil. As of April 2002, the U.S. Army estimated that the remaining cleanup activities would cost $7.1 million and take 5 years, but these estimates are unreliable. This testimony summarized a June report (See GAO-02-556)."