Correspondence issued by the Government Accountability Office with an abstract that begins "The Defense Manpower Data Center (DMDC) conducts a series of Web-based surveys called Status of Forces surveys, which help enable decision makers within the Department of Defense (DOD) to (1) evaluate existing programs and policies, (2) establish baselines before implementing new programs and policies, and (3) monitor the progress of programs and policies and their effects on the total force. In recent years, we have discussed the results of these surveys in several of our reports. While we have generally found the survey results to be sufficiently reliable for the purposes of our reporting, several of our reports have discussed low response rates and the potential for bias in the survey results. Nonresponse analysis is an established practice in survey research that helps determine whether nonresponse bias (i.e., survey results that do not accurately reflect the population) might occur due to under- or overrepresentation of some respondents' views on survey questions. When nonresponse analysis is performed, survey researchers can use the results to select and adjust the statistical weighting techniques they use that help ensure that survey results accurately reflect the survey population. Because we have noted, in …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the summary of a briefing we gave in June 2010 in response to a mandate in the Department of Homeland Security Appropriations Act, 2010, and subsequent agency comments. This mandate required the Department of Homeland Security (DHS) to complete an expenditure plan that satisfied 11 specified conditions, and for the plan to be submitted to and approved by the House and Senate Appropriations Committees before the agency could obligate $75 million of the $800 million appropriated for U.S. Customs and Border Protection (CBP) border security fencing, infrastructure and technology. Also, the Act required us to review this expenditure plan. In addition, Conference, Senate, and House committee reports accompanying the act directed that the plan address 7 items (referred to as "committee reports' directions" in this letter). In response to these requirements, the Department of Homeland Security submitted a plan to Congress on May 20, 2010, titled "Border Security Fencing, Infrastructure and Technology (BSFIT) Fiscal Year 2010 Expenditure Plan." As required by the act, we reviewed the plan and on June 17 and 18, 2010, briefed the offices of the Senate and House Appropriations Subcommittees, …

Testimony issued by the Government Accountability Office with an abstract that begins "The overall goal of the U.S. National Drug Control Strategy, prepared by the White House Office of National Drug Control Policy (ONDCP), is to reduce illicit drug use in the United States. GAO has issued more than 20 products since 2000 examining U.S.-funded international programs aimed at reducing the supply of drugs. These programs have been implemented primarily in drug source countries, such as Colombia and Afghanistan as well drug transit countries, such as Mexico, Guatemala, and Venezuela. They have included interdiction of maritime drug shipments on the high seas, support for foreign military and civilian institutions engaged in drug eradication, detection, and interdiction; and rule of law assistance aimed at helping foreign legal institutions investigate and prosecute drug trafficking, money laundering, and other drug-related crimes."

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the briefing in response to the Conference Report accompanying the Fiscal Year 2010 Consolidated Appropriations Act (H.R. Rep. No. 111-366, at 673-74 (2009) (Conf. Rep)), which directed us to evaluate BOP's strategic approach to budgeting for its inmate re-entry programs, including activities related to the Second Chance Act (SCA). To conduct this work, we analyzed the Federal Bureau of Prison's (BOP) programs, activities, and management initiatives that play a key role in implementing SCA requirements, such as the Inmate Skills Development Initiative (ISDI). Through ISDI, BOP intends to measure skills inmates acquired through effective reentry programs with the goal of reducing rates of recidivism. We also evaluated BOP's processes and initiatives that play a key role in implementing SCA, such as ISDI, to determine the extent to which BOP followed leading practices for planning, implementing, and identifying resources needed for projects."

Correspondence issued by the Government Accountability Office with an abstract that begins "The American Recovery and Reinvestment Act of 2009 (Recovery Act) mandates GAO to review states' and localities' use of funds made available under the act. Since April 2009, GAO has published bimonthly reports on our findings related to federal, state, and local implementation of the Recovery Act. Currently, we are examining the efforts of selected states and local educational agencies (LEA) to ensure appropriate uses of Recovery Act funds. In North Carolina, we have been reviewing efforts undertaken by the North Carolina Department of Public Instruction (DPI) and selected LEAs to administer and oversee the use of Recovery Act funds under the State Fiscal Stabilization Fund (SFSF) education stabilization funds; Title I of the Elementary and Secondary Education Act of 1965 (ESEA Title I), as amended; and Part B of the Individuals with Disabilities Education Act (IDEA); as amended. As part of this effort, we met with various DPI staff and, from February 1 through 3, 2010, we visited Avery County Schools (ACS) to review and test the adequacy of controls and procedures in place pertaining to Recovery Act funds for these three federal programs. During our visit, …

Testimony issued by the Government Accountability Office with an abstract that begins "Crime and violence related to drug trafficking in Mexico and Central America have increased in recent years and pose a threat not only to those areas but to the United States as well, particularly along the Southwest border. The Merida Initiative, announced in 2007, provides about $1.6 billion in law enforcement support to Mexico and Central American countries. The Department of State (State) manages the Initiative while other U.S. agencies play key roles in implementation. This testimony addresses (1) the status of Merida program implementation; (2) State's strategy for implementation; and (3) coordination mechanisms in place for Merida. This testimony is based on a new GAO report being released at today's hearing (GAO-10-837)."

Testimony issued by the Government Accountability Office with an abstract that begins "Cloud computing, an emerging form of computing where users have access to scalable, on-demand capabilities that are provided through Internet-based technologies, reportedly has the potential to provide information technology services more quickly and at a lower cost, but also to introduce information security risks. Accordingly, GAO was asked to testify on the benefits and risks of moving federal information technology into the cloud. This testimony summarizes the contents of a separate report that is being released today which describes (1) the models of cloud computing, (2) the information security implications of using cloud computing services in the federal government, and (3) federal guidance and efforts to address information security when using cloud computing. In preparing that report, GAO collected and analyzed information from industry groups, private-sector organizations, and 24 major federal agencies."

Other written product issued by the Government Accountability Office with an abstract that begins "This document supersedes GAO-07-1SP, GAO Strategic Plan, 2007-2012, March 2007. This document presents GAO's strategic plan for serving the Congress for fiscal years 2010 through 2015. In keeping with our commitment to update our plan every 3 years, it describes our proposed goals and strategies for supporting the Congress and the nation as the United States undergoes a period of change, daunting challenges, and promising opportunities. We have identified eight trends that provide context for our plan: (1) evolving security threats; (2) urgent fiscal sustainability and debt challenges; (3) economic recovery and restored job growth; (4) changing dynamics of global interdependence and shifts in power; (5) advances in science, technology, engineering, and mathematics; (6) increasing impact of networks and virtualization; (7) shifting roles in government and governance; and (8) demographic and societal changes confronting the young and old. Since we issued our last plan, significant changes have affected our nation's commitments and fiscal outlook. Our nation has multiple wartime-related commitments as it winds down one war in Iraq, increases its presence in another in Afghanistan, and re-examines commitments in Pakistan. The global financial crisis emerged as …

Testimony issued by the Government Accountability Office with an abstract that begins "In 2006, GAO investigated companies selling direct-to-consumer (DTC) genetic tests and testified that these companies made medically unproven disease predictions. Although new companies have since been touted as being more reputable--Time named one company's test 2008's "invention of the year"--experts remain concerned that the test results mislead consumers. GAO was asked to investigate DTC genetic tests currently on the market and the advertising methods used to sell these tests. GAO purchased 10 tests each from four companies, for $299 to $999 per test. GAO then selected five donors and sent two DNA samples from each donor to each company: one using factual information about the donor and one using fictitious information, such as incorrect age and race or ethnicity. After comparing risk predictions that the donors received for 15 diseases, GAO made undercover calls to the companies seeking health advice. GAO did not conduct a scientific study but instead documented observations that could be made by any consumer. To assess whether the tests provided any medically useful information, GAO consulted with genetics experts. GAO also interviewed representatives from each company. To investigate advertising methods, GAO made undercover contact …

Correspondence issued by the Government Accountability Office with an abstract that begins "On March 1, 2010, we issued our report expressing our opinion on the American Battle Monuments Commission's (the Commission) fiscal years 2009 and 2008 financial statements and our opinion on the Commission's internal control as of September 30, 2009. We also reported on the results of our tests of the Commission's compliance with selected provisions of laws and regulations during fiscal year 2009. We reported that although certain internal controls should be improved, the Commission maintained, in all material respects, effective internal control over financial reporting as of September 30, 2009. However, we also reported on a significant deficiency in the Commission's governance structure related to vacant Commissioner positions and one instance of noncompliance with the Antideficiency Act related to a Commission contract with a commercial employment services firm to provide temporary employees. During our fiscal year 2009 audit, we also identified other internal control deficiencies that, while not material, individually or in the aggregate, to the Commission's financial statements, nevertheless warrant management's attention. The purpose of this report is to present these deficiencies, provide additional detailed information on the significant deficiency and compliance issue identified in our …

Correspondence issued by the Government Accountability Office with an abstract that begins "The 2005 Base Realignment and Closure (BRAC) round is the fifth such round undertaken by DOD since 1988 and is the biggest, most complex, and costliest BRAC round ever. With this BRAC round, the Department of Defense (DOD) plans to execute hundreds of BRAC actions affecting over 800 defense locations, relocate over 123,000 personnel, and spend over $35 billion--an unprecedented amount, given that DOD has spent nearly $26 billion to implement the four previous BRAC rounds combined when all relevant BRAC actions have been completed. As with prior BRAC rounds, DOD is required to implement the BRAC Commission's 2005 recommendations within 6 years of their approval by the President and transmittal to Congress. Unlike with prior BRAC rounds, DOD is implementing the BRAC 2005 round during a time of conflict and significant increases to the defense budget to support ongoing contingency operations. Compounding this challenge, DOD is also implementing other extensive worldwide transformation initiatives such as the permanent relocation of about 70,000 military personnel to the United States from overseas; transformation of the Army's force structure from an organization based on divisions to more rapidly deployable, combat brigade-based …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally transmits the briefing in response to a congressional request on May 4, 2009, that we review the EFV program. We provided congressional staff a draft copy of this briefing in meeting with them on June 9, 2010. We provided the same draft to the Department of Defense (DOD) for comments. A summary of DOD's comments with our evaluation are also attached, as well as a reprinted copy of DOD's written comments."

Correspondence issued by the Government Accountability Office with an abstract that begins "When potential borrowers apply for a mortgage loan, lenders typically use borrowers' credit scores--which are based on their credit payment histories, debt, length of credit history, new credit accounts or requests, and types of credit used--to help determine their creditworthiness. However, some borrowers have limited or no credit histories, and lenders are unable to determine their creditworthiness using this traditional method. For these nontraditional borrowers, lenders may assess creditworthiness through alternative means, including the compilation of performance on rental payments; utility, phone, and cable television bills; and insurance or tuition payments. While some lenders have developed statistical scoring methods to determine borrowers' creditworthiness based on these data, others rely on the judgment of their staff to make determinations on a case-by-case basis, according to Department of Housing and Urban Development (HUD) officials. HUD permits lenders that originate mortgages insured by HUD's Federal Housing Administration (FHA) to establish a borrower's credit history through alternative means and has provided guidance to FHA lenders for evaluating these nontraditional credit histories. According to HUD officials, 7,319 nontraditional borrowers were approved for FHA-insured mortgages in fiscal year 2009. Section 2124 of the Housing …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Millennium Challenge Corporation (MCC), now in its seventh year of operations, is to provide aid to developing countries that have demonstrated a commitment to ruling justly, encouraging economic freedom, and investing in people. MCC provides assistance to eligible countries through multiyear compact agreements to fund specific programs targeted at reducing poverty and stimulating economic growth. MCC has received appropriations for fiscal years 2004 through 2010 totaling about $9.5 billion and has set aside about $8.1 billion of this amount for compact assistance. As of June 2010, MCC had signed compacts with 20 countries totaling approximately $7.1 billion; of the 20 compacts, 18 compacts had entered into force, obligating a total of approximately $6.3 billion. The President has requested approximately $1.3 billion in additional funds for MCC for fiscal year 2011, of which MCC plans to use about $1.1 billion for compact assistance to countries currently eligible for compacts."

Correspondence issued by the Government Accountability Office with an abstract that begins "To increase access to primary and preventive care services for individuals living in medically underserved communities, Congress authorized federally qualified health centers (FQHC) as a health care facility type and established requirements for Medicare coverage and payment as FQHCs under the Omnibus Budget Reconciliation Act (OBRA) of 1990. FQHCs are typically rural and urban safety net providers that provide primary and preventive care services to individuals regardless of their ability to pay. In general, a health center may qualify as a FQHC if it receives a federal grant under Section 330 of the Public Health Service Act; meets the requirements to receive such a grant; or is an outpatient health program/facility operated by certain tribal or urban Indian organizations. Currently, Medicare reimburses FQHCs for these services with an all-inclusive payment rate--resulting costs exceeding the maximum Medicare reimbursement under the upper payment limits every year from 1997 to 2004. The Medicare Improvements for Patients and Providers Act of 2008 required GAO to examine the payment structure that Medicare used to pay FQHCs for services provided to Medicare beneficiaries and to take into consideration the prospective payment methodology used by …

Correspondence issued by the Government Accountability Office with an abstract that begins "Since the September 11, 2001, terrorist attacks, the Department of Defense (DOD) has been engaged in domestic and overseas military operations in support of overseas contingency operations (OCO). These operations include Operation Iraqi Freedom, which focuses principally on Iraq, and Operation Enduring Freedom, which focuses principally on Afghanistan, but also include operations in the Horn of Africa, the Philippines, and elsewhere. Obtaining an accurate picture of OCO costs is of critical importance given the need to evaluate trade-offs and make more effective use of defense dollars in light of the nation's long-term fiscal challenges. In the past, the GAO has reported on the need for DOD to become more disciplined in its approach to developing plans and budgets, including building more OCO costs into the base defense budget. In February 2009, the Office of Management and Budget (OMB), in coordination with the Office of the Secretary of Defense (OSD), developed new guidance for use when constructing the initial fiscal year 2010 OCO funding request that more narrowly defined what should be considered an OCO funding need. The guidance remained in effect for building the fiscal year 2010 OCO …

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. Department of Agriculture's (USDA) Supplemental Nutrition Assistance Program (SNAP) is intended to help low-income individuals and families obtain a better diet by supplementing their income with benefits to purchase food. USDA's Food and Nutrition Service (FNS) and the states jointly implement SNAP. Participation in the program has risen steadily over the last decade to an all time high of more than 33 million in fiscal year 2009, providing critical assistance to families in need. This testimony discusses GAO's past work on three issues related to ensuring integrity of the program: (1) improper payments to SNAP participants, (2) trafficking of SNAP benefits, and (3) categorical eligibility for certain individuals or households. This testimony is based on prior GAO reports on categorical eligibility (GAO-07-465), payment errors (GAO-05-245), and food stamp trafficking (GAO-07-53), developed through data analyses, case file reviews, site visits, interviews with officials, and a 50- state survey. GAO also updated data where available and collected information on recent USDA actions and policy changes."

Testimony issued by the Government Accountability Office with an abstract that begins "A U.S. passport is one of the most sought after travel documents in the world, allowing its holder entrance into the United States and many other countries. People attempting to obtain a U.S. passport illegally often seek to use the guise of a U.S. citizen to conceal their involvement with more serious crimes, such as terrorism, drug trafficking, money laundering, or murder. In March 2009, GAO reported on weaknesses in State's passport issuance process that could allow a terrorist or criminal to fraudulently acquire a genuine U.S. passport. Specifically, GAO easily obtained four genuine passports from State using counterfeit documents. In April 2009, GAO suggested that State take 5 corrective actions based on these undercover tests and State acknowledged those corrective actions. GAO was asked to perform additional proactive testing of State's passport issuance process to determine if it continues to be vulnerable to fraud. To do this work, GAO applied for seven U.S. passports using counterfeit or fraudulently obtained documents, such as driver's licenses and birth certificates, to simulate scenarios based on identity theft. GAO created documents for seven fictitious or deceased individuals using off-the-shelf, commercially available …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses our work on the Troubled Asset Relief Program (TARP), which Congress established on October 3, 2008 in response to the financial crisis that threatened the stability of the U.S. financial system and the solvency of many financial institutions. Under the original TARP legislation, the Department of the Treasury (Treasury) had the authority to purchase or insure $700 billion in troubled assets held by financial institutions. As we have seen, since TARP's inception Treasury has chosen to use those funds for a variety of activities, including injecting capital into key financial institutions, implementing programs to address problems in the securitization markets, providing assistance to the automobile industry and American International Group, Inc. (AIG), and working to help homeowners struggling to keep their homes. Today, some of these programs have been discontinued and others are winding down, but others--such as homeownership preservation programs--may continue for some time. Treasury has also seen some participating institutions repay their TARP funds as they recover their financial health. The prospect for repayment from some other institutions, both large and small, remains unclear. The Emergency Economic Stabilization Act (the act) that authorized …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses various issues affecting airline passengers, including airline-imposed fees, mishandled baggage, and the refundability of various government-imposed taxes and fees to passengers. The U.S. passenger airline industry has been under tremendous financial pressure over the last decade, first from security threats that inhibited air travel, then from volatile fuel costs, and more recently from falling demand due to an economic recession. Only recently has air traffic begun to recover. In response to these pressures, passenger airlines have adapted their business models. In 2008, for example, many airlines introduced fees for a variety of passenger services, most notably for a first or second checked bag, for which separate charges did not previously exist. Fees represent an important source of revenues to U.S. passenger airlines, which collectively posted operating losses of $4.4 billion during calendar years 2008 and 2009. During that same period, airlines reported approximately $7.9 billion in revenues from baggage fees and reservation change and cancellation fees--the two largest sources of fee revenues. The revenues from baggage and many other fees are not subject to the 7.5 percent excise tax on amounts paid for domestic air …

Other written product issued by the Government Accountability Office with an abstract that begins "This document is an E-supplement to GAO-10-368. This e-supplement provides additional information on regional and provincial poverty and major crops produced in Afghanistan."

Testimony issued by the Government Accountability Office with an abstract that begins "Ports, waterways, and vessels handle more than $700 billion in merchandise annually, and an attack on this system could have a widespread impact on global trade and the economy. Within the Department of Homeland Security (DHS), component agencies have responsibility for securing the maritime environment. The U.S. Coast Guard is responsible for protecting, among other things, U.S. economic and security interests in any maritime region. U.S. Customs and Border Protection (CBP) is responsible for keeping terrorists and their weapons out of the United States, securing and facilitating trade, and cargo container security. This testimony discusses DHS and its component agencies' progress, and challenges remaining, regarding (1) strengthening risk management (a strategy to help policymakers make decisions about assessing risks, allocating resources, and acting under conditions of uncertainty), (2) reducing the risk of small-vessel (watercraft less than 300 gross tons used for recreational or commercial purposes) threats, (3) implementing foreign port assessments, and (4) enhancing supply chain security. This statement is based on GAO products issued from December 2005 through June 2010, including selected updates conducted in July 2010."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the results of our investigation of the Small Business Administration's (SBA) Historically Underutilized Business Zone (HUBZone) program. In fiscal year 2009, federal agencies obligated nearly $3 billion in sole source or set-aside contracts to firms participating in the HUBZone program. Created in 1997, the program provides federal contracting assistance to small businesses located in HUBZones--economically distressed areas with low income levels or high unemployment rates. Qualified businesses in these areas are eligible to bid on federal prime contracts and subcontracts available exclusively to program participants, in addition to benefiting from other contracting preferences. The SBA must certify that a small business meets the following criteria to qualify for the program: the firm must be owned and controlled by one or more U.S. citizens; at least 35 percent of full-time employees must live in a HUBZone; and the principal office, where most qualifying employees work, must be in a HUBZone. According to the SBA's Dynamic Small Business Web site, as of July 2010, 9,300 firms were participating in the program. Over the last 2 years, we have reported on fraud and abuse and other concerns with …

Testimony issued by the Government Accountability Office with an abstract that begins "U.S. insular areas face serious economic and fiscal challenges and rely on federal funding to support their governments and deliver critical services. The Department of the Interior, through its Office of Insular Affairs (OIA), provides about $70 million in grants annually, including technical assistance grants, to increase insular area self-sufficiency. In the past, GAO and others have raised concerns regarding insular areas' internal control weaknesses, which increase the risk of grant fund mismanagement, fraud, and abuse. In March 2010, GAO reported on insular area grants (GAO-10-347); this testimony summarizes that report and focuses on (1) whether previously reported internal control weaknesses have been addressed and, if not, to what extent they are prevalent among OIA grant projects, including technical assistance grant projects, as of March 2010; and (2) the extent to which OIA has taken action to improve the implementation and management grant projects, as of March 2010. For the March 2010 report, GAO reviewed a random sample of 173 OIA grant project files and interviewed OIA and insular area officials. For this testimony, GAO conducted additional analysis for the 49 technical assistance grant projects included in the …