Testimony issued by the General Accounting Office with an abstract that begins "This testimony reviews the Department of Defense's (DOD) handling of appropriated funds from expired appropriation accounts. In 1990, Congress changed the law governing the use of appropriation accounts because it concluded that controls over them were not working. Without adequate controls, Congress was concerned that agencies could disburse money in amounts and for purposes that it had not approved. GAO found that DOD improperly charged appropriation accounts after they were closed. GAO also found that DOD did not establish the requisite systems, controls, and managerial attention required to properly account for its disbursements consistent with the 1990 account closing law, and as a result, DOD made at least $615 million of illegal or otherwise improper adjustments during fiscal year 2000 alone. DOD was aware of the limitations the account closing law placed on the availability of canceled appropriations and that the law was enacted because of previous abuses by DOD's use of old appropriations. DOD also knew that a major system used to control its use of appropriations allowed for disbursements to be charged in a way that was inconsistent with the law. However, DOD did nothing to …

Testimony issued by the General Accounting Office with an abstract that begins "Although the short-term outlook of Medicare's hospital insurance trust fund improved in the last year, Medicare's long-term prospects have worsened. The Medicare Trustee's latest projections, released in March, use more realistic assumptions about health care spending in the years ahead. These latest projections call into question the program's long-term financial health. The Congressional Budget Office also increased its long-term estimates of Medicare spending. The slowdown in Medicare spending growth in recent years appears to have ended. In the first eight months of fiscal year 2001, Medicare spending was 7.5 percent higher than a year earlier. This testimony discusses several fundamental challenges to Medicare reform. Without meaningful entitlement reform, GAO's long-term budget simulations show that an aging population and rising health care spending will eventually drive the country back into deficit and debt. The addition of a prescription drug benefits would boost spending projections even further. Properly structured reform to promote competition among health plans could make Medicare beneficiaries more cost conscious. The continued importance of traditional Medicare underscores the need to base adjustments to provider payments on hard evidence rather than on anecdotal information. Similarly, reforms in the …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses how federal agencies conduct fire management under the National Fire Plan. Effective fire management requires coordination, consistency, and agreement among five federal land management agencies in two departments--the National Park Service, the Fish and Wildlife Service, the Bureau of Land Management, and the Bureau of Indian Affairs in the Department of the Interior and the Forest Service in the Department of Agriculture. Human activities, especially the federal government's decades-old policy of suppressing all wild fires, have led to dangerous accumulations of felled trees and other dead vegetation on federal lands. As a result, conditions on 211 million acres continue to deteriorate. The National Fire Plan represents the latest effort to address wildland fire on federal lands. Two conditions set this effort apart from earlier efforts. First, Congress has to recognize the need to sustain increased funding for wildland fire management in future fiscal years. Second, Congress has issued direction to reduce the risk of wildland fire in the wildland-urban interface. However, many of the policy's guiding principles and recommendations have not been implemented. The failure of the five federal land management agencies to incorporate into …

A letter report issued by the General Accounting Office with an abstract that begins "GAO reviewed the National Aeronautics and Space Administration's (NASA) fiscal year 2000 performance report to assess the agency's progress in achieving selected key outcomes important to NASA's mission. The selected key outcomes are to (1) expand scientific knowledge of the Earth system, (2) expand the commercial development of space, and (3) deploy and operate the International Space Station safely and cost effectively. NASA reported mixed progress in achieving these key outcomes. In general, NASA's strategies for achieving unmet performance targets for theses outcomes are clear and reasonable. NASA achieved most targets related to expanding knowledge of the Earth system. However, its progress in other areas was more limited. NASA has made improvements in its fiscal year 2000 performance report in comparison to its fiscal year 1999 performance report. Specifically, NASA describes its verification and validation efforts and discloses its data sources for each performance target. NASA's report partially addressed the governmentwide high-risk area of strategic human capital management but not the area of information security. GAO has previously found that NASA lacks an effective agencywide security program. NASA's report only addressed two of the three critical …

A letter report issued by the General Accounting Office with an abstract that begins "Fines are one way for regulators to sanction those who violate securities and futures industry rules. However, for fines to be effective, regulators must collect them. This report reviews fine collection by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and nine exchanges and industry associations that act as self-regulatory organizations (SRO) in the securities and futures industries. GAO (1) compares how the securities and futures regulators' current collection rates have changed since GAO's November 1998 report 1998 and assesses the changes they made in their fine imposition practices; (2) discusses the steps taken by SEC and CFTC to oversee the SROs' fine imposition activities, including the actions they have recently taken to improve this oversight; and (3) assesses the effectiveness of actions taken by SEC and CFTC to refer unpaid fines to the Financial Management Services (FMS). GAO found that collection rates at SEC, CFTC, and the SROs were generally comparable to, or higher than, their rates at the time of GAO's earlier report. Among the SROs, the National Association of Securities Dealers (NASD) and the National Futures Association (NFA) had …

A letter report issued by the General Accounting Office with an abstract that begins "This report discusses the Federal Emergency Management Agency's (FEMA) fiscal year 2000 performance report and fiscal year 2002 performance plan required by the Government Performance and Results Act of 1993. Although FEMA did not attain all of its goals for selected key outcomes in its fiscal year 2000 annual performance report, FEMA did make progress toward achieving the outcomes. FEMA's progress varied for each outcome, and the information presented in the performance report did not always provide enough information to allow an independent assessment of FEMA's progress in achieving the outcome. In general, FEMA's strategies for achieving these key outcomes appeared to be clear and reasonable. Although FEMA has more work to do on the outcomes GAO reviewed, its fiscal year 2000 performance report and fiscal year 2002 performance plan reflect continued improvement compared with the prior year's report and plan. FEMA has refined its performance goals and made them more outcome oriented. FEMA's fiscal year 2000 performance report and fiscal year 2002 performance plan generally addressed the management challenges GAO cited in earlier reports. The report and plan indicate that FEMA has taken some actions …

Other written product issued by the General Accounting Office with an abstract that begins "This journal of the International Organization of Supreme Audit Institutions (INTOSAI) includes articles regarding (1) the symposium of INTOSAI Development Initiative Training Specialists in Oslo, Norway from June 3-9, 2001; (2) the Arab Organization of Supreme Audit Institutions' (ARABOSAI) 8th Triennial General Assembly in Rabat, Morocco from April 24-27, 2001; (3) an audit profile of the Board of Audit and the Inspection of the Republic of Korea; and (4) activities within INTOSAI."

A letter report issued by the General Accounting Office with an abstract that begins "To protect themselves against large out-of-pocket expenses and help fill gaps in Medicare coverage, most beneficiaries buy supplemental insurance, known as Medigap; contribute to employer-sponsored health benefits to supplement Medicare coverage; or enroll in private Medicare+Choice plans rather than traditional fee-for-service Medicare. Because Medicare+Choice plans are not available everywhere and many employers do not offer retiree health benefits, Medigap is sometimes the only supplemental insurance option available to seniors. Medicare beneficiaries who buy Medigap plans have coverage for essentially all major Medicare cost-sharing requirements, including coinsurance and deductibles. But this "first-dollar" coverage may undermine incentives for prudent use of Medicare services, which could ultimately boost costs for the Medicare program. Although various proposals have been made to add a prescription drug benefit to Medicare, relatively few beneficiaries buy standardized Medigap plans with this benefit. Low enrollment in these plans may be due to the fact that fewer plans are being marketed with these benefits; their relatively high cost; and the limited nature of their prescription drug benefit, which still requires beneficiaries to pay more than half of their prescription drug costs. Most plans have a $3,000 …

A chapter report issued by the General Accounting Office with an abstract that begins "The Federal Aviation Administration (FAA) issues regulations to strengthen aviation safety and security and to promote the efficient use of airspace. FAA's rulemaking is a complicated process intended to ensure that all aspects of any regulatory change are fully analyzed before any change goes into effect. During the last 40 years, many reports have documented problems in FAA's rulemaking efforts that have delayed the formulation and finalization of its rules. This report reviews FAA's rulemaking process. GAO reviewed 76 significant rules and found that FAA's rulemaking process varied widely. These rules constituted the majority of FAA's workload of significant rules from fiscal year 1995 through fiscal year 2000. GAO found that FAA had begun about 60 percent of the rulemaking projects by Congress and about a third of the rulemaking projects recommended by the National Transportation Safety Board within six months. For one-fourth of the mandates and one-third of the recommendations however, at least five years passed before FAA began the process. Once the rule was formally initiated, FAA took a median time of two and a half years to proceed from formal initiation of the …

A letter report issued by the General Accounting Office with an abstract that begins "A sound public infrastructure plays a vital role in encouraging a more productive and competitive national economy and meeting public demands for safety, health, and improved quality of life. The federal government has spent an average of $149 billion (in constant 1998 dollars) annually since the late 1980s on the nation's infrastructure. Little is known, however, about the comparability and reasonableness of individual agencies' estimates for infrastructure needs. This report discusses infrastructure investment or "needs" estimates compiled by seven agencies--the U.S. Army Corps of Engineers, the Environmental Protection Agency (EPA), the Federal Aviation Administration (FAA), the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), the General Services Administration (GSA), and the Appalachian Regional Commission (ARC). GAO focuses on the following infrastructure areas: water resources (inland and deep draft navigation, flood control, and shore protection), hydropower, water supply, wastewater treatment, airports, highways, mass transit, and public buildings. GAO found that the agencies' estimates for infrastructure investments ranged from GSA's calculation of $4.58 billion (in current dollars) over one to five years to repair public buildings to FHWA's estimate of $83.4 billion (in constant 1997 dollars) per …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Veterans Affairs (VA) spent about $1.9 billion--or about 10 percent of its health care budget--to provide nursing home care to veterans in fiscal year 2000. VA will likely see increasing demand for nursing home care during the next decade. The number of veterans age 85 and older is expected to triple--from 422,000 veterans in 2000 to nearly 1.3 million in 2010. Among the very old, the prevalence of chronic health conditions and disabilities increases markedly. In addition, VA is required to provide long-term care to some veterans, which may further increase veterans' demand for nursing home care. Almost 73 percent of VA's nursing home care in fiscal year 2000 went to VA's 134 nursing homes; the rest went to state-owned and operated veterans' nursing homes (15 percent) or to community nursing homes under local or national contract to VA (12 percent). VA generally requires its medical center staff to conduct annual inspections of state veterans' homes and community nursing homes; it also requires monthly staff visits to veterans in community nursing homes. However, VA plans to change its oversight of community nursing homes, …

A letter report issued by the General Accounting Office with an abstract that begins "This report examines selected logistics, funding, and readiness issues pertaining to the AH-64 Apache helicopter program. GAO found that the Apache's identified sustainment systems technical support requirements have not been fully met in fiscal years 2000 and 2001. In fiscal year 2000, funding fell short of the $28.6 million needed for Apache sustainment support. The military projects that it will be able to meet only 56 percent of the Apache's sustainment support requirements for fiscal years 2001-2003. Furthermore, because the Apache sustainment support projects must compete with other weapon systems for limited funding, some Apache projects have been delayed or limited in scope. GAO also found that the procurement of parts for the Apache is hampered by an outdated inventory system. The technical manuals used by field and depot personnel lack critical technical drawings and specifications, and the Army must resort to other methods, such as reverse engineering, to compensate for the lack of data. Finally, the Army has several unfunded requirements for Apache component upgrades for fiscal years 2001 and 2002. GAO found, however, that these issues have not prevented the Apache fleet from meeting …

A chapter report issued by the General Accounting Office with an abstract that begins "The collection of outstanding criminal debt has been a long-standing problem for the federal government. Since October 1985, as reported in the U.S. Attorney's statistical reports, the balance of outstanding criminal debt has grown from $260 million to more than $13 billion. Currently, the receipting of collections and recordkeeping for criminal debt is primarily the responsibility of the U.S. Courts, while the Department of Justice is responsible for collecting criminal debt. This report reviews (1) the key reasons for the growth in reported uncollected criminal debt; (2) whether adequate processes exist to collect criminal debt; and (3) what role, if any, the Office of Management and Budget (OMB) and the Department of the Treasury play in monitoring the government's collection of criminal debt. GAO found that four key factors have contributed to the significant growth of uncollected criminal debt. These factors are (1) the nature of the debt, in that it involves criminals who may be incarcerated or deported or who have minimal earning capacity; (2) the assessment of mandatory restitution regardless of the criminal's ability to pay, as required by the Mandatory Victims Restitution Act …

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews information system general controls over the financial systems maintained by the Department of the Interior at its National Business Center (NBC) in Denver, Colorado. GAO found that although the Denver center has made progress in correcting previously cited computer security weaknesses, additional weaknesses affect the Denver center's information system control environment. These weaknesses affect the center's ability to prevent and detect unauthorized changes to financial information, control electronic access to sensitive personnel information, and restrict physical access to sensitive computing areas. The Denver center did not adequately limit access granted to authorized users, control all aspects of the system software controls, or secure access to its network. Also, the Denver center had not fully established a comprehensive program to routinely monitor access to its computer facilities and data and to identify and investigate unusual or suspicious access patterns that could indicate unauthorized access. The primary reason for these weaknesses was that the Denver center had not yet fully developed and implemented a comprehensive entitywide program to manage computer security."

A letter report issued by the General Accounting Office with an abstract that begins "While the federal government has accepted responsibility for the Cerro Grande fire and enacted the Cerro Grande Fire Assistance Act (CGFAA) to expeditiously compensate those injured by the fire, it is incumbent on the Federal Emergency Management Agency (FEMA) as the administering agency to establish an effective system of internal control to safeguard the funds appropriated for the Cerro Grande program. The act lays a framework to establish such accountability by requiring FEMA to determine that victims' injuries and losses occurred as result of the fire and to determine the amount of allowed compensation. FEMA has established a process to review all claims submitted. However, this process as currently implemented does not provide adequate assurance that only valid claims were paid or that the amounts paid were reasonable because there is insufficient documentation of the steps taken to determine the validity and reasonableness of the claim amounts. In addition, policies and procedures for paying claims have either not yet been developed or have not been formally and centrally documented."

A letter report issued by the General Accounting Office with an abstract that begins "On-line trading continues to be an important part of the securities trading market. The industry reports investing greater resources to improve the performance of their systems, and regulators have made substantial progress in ensuring that investors receive better information in key investor protection areas. However, investors trading on-line continue to file many complaints about failures and delays in processing orders. GAO believes that providing complete information on the websites of on-line broker-dealers would allow investors to make more informed investment decisions."

A letter report issued by the General Accounting Office with an abstract that begins "Congress authorized the Pilot Mentor Protege Program to boost the participation of small disadvantaged businesses as subcontractors and suppliers under Department of Defense (DOD) contracts. The program provides incentives for major defense contractors (mentors) to assist small disadvantaged businesses (proteges) in strengthening their ability to compete for work. However, DOD has been criticized for not establishing compelling evidence about the program's overall effectiveness. This report reviews (1) the relationship between the results of the Mentor-Protege Program and the statutory goal of awarding five percent of the total dollar amount contracted by DOD and subcontracted by DOD prime contractors to small disadvantaged businesses; (2) whether the Mentor-Protege Program enhanced the business competitiveness, financial independence, and business development of protege firms; and (3) whether program funds had been used as an effective incentive for mentor firms to participate in the program. GAO found that DOD lacks data integral to assessing the success of the Mentor-Protege Program. DOD lacks enough information to determine the relationship between the program and the goal of awarding five percent of the total dollar amount contracted to small disadvantaged businesses. Although DOD has consistently …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), insures billions of dollars in home mortgage loans made by private lenders. HUD's 2020 Management Reform Plan, issued in 1997, sought to downsize and reform the agency, including its single-family mortgage insurance program. As part of its 2020 plan, HUD consolidated the single-family program's field activities at four new regional homeownership centers and specified resources for the centers. Although HUD has substantially streamlined FHA's single-family mortgage insurance programs, human capital issues remain a concern. This report reviews HUD's implementation of the homeownership center concept under the 2020 plan, focusing on (1) the deployment of center staff, (2) the training provided to the center staff, and (3) the centers' monitoring of contractors. GAO found that nearly half of the centers' staff remain in 71 field offices across the country, even though HUD envisioned that only a third of the staff would stay in the field offices. The deployment of staff across the centers is not consistent with their workload, and, as a result, the centers are having trouble supervising and making effective use …

A letter report issued by the General Accounting Office with an abstract that begins "The U.S. government is one of the world's largest property owners, with a real estate portfolio of more than 400,000 defense and civilian buildings and more than one-half billion acres of land. Each year, the federal government spends billions of dollars to maintain its buildings. Even so, the General Services Administration (GSA) contends that it needs $4 billion, over and above these expenditures, to maintain its existing inventory. This report identifies the potential benefits to the federal government of entering into public-private partnerships on real property--an arrangement in which the federal government contributes real property and a private entity contributes financial capital and borrowing ability to redevelop or renovate the real property. GAO found that public-private partnership authority could be an important management tool to address problems in deteriorating federal buildings, but further study of how the tool would actually work and its benefits compared to other options is needed. Potential net benefits to the federal government of entering into these public-private partnerships include better space, lower operating costs, and increased revenue without up-front federal capital expenditures if further analysis shows that they would not be …

A letter report issued by the General Accounting Office with an abstract that begins "Through four rounds of base closures and realignments between 1988 and 1995, the Department of Defense (DOD) expected to reduce its domestic infrastructure and provide needed dollars for high priority programs, such as weapons modernization. Although DOD projects it will realize significant recurring savings from the closures and realignments, Congress continues to raise questions about how much, if any, money has been saved through the base closure process. Two GAO reports issued in late 1998 concluded that net savings from the four closure rounds were substantial but that the cost and savings estimates used to calculate the net savings were imprecise. This report reviews (1) the basis for DOD's recent increase in net savings projected to be realized from the closure process and (2) GAO's previous observations on the basis for savings from base closure and realignment actions and the precision of the cost and savings estimates. DOD's fiscal year 2001 budget request and documentation show that it now expects net savings of about $15.5 billion through fiscal year 2001 and about $6.1 billion in annual recurring savings thereafter, an increase from the $14.2 billion and …

A letter report issued by the General Accounting Office with an abstract that begins "After the collapse of the former Soviet Union and the Warsaw Pact in 1991, North Atlantic Treaty Organization (NATO) allies and the United States sought new ways to cooperate with the political and military leadership of their former adversaries. In January 1994, NATO established the Partnership for Peace to increase defense cooperation with former Warsaw Pact members and other former communist states in Central and Eastern Europe. Supported by the United States through the Warsaw Initiative, the Partnership plays a key role in developing the capabilities of those states and reforming their defense establishments. Given the key role the Partnership for Peace has played in the transformation of NATO's relationship with these states, the significant U.S. involvement and investment in this program through the Warsaw Initiative, and the impending debate on potential NATO members drawn from the Partnership, this report (1) provides an historic overview of previous NATO accessions, (2) describes the cost and content of the Warsaw Initiative, and (3) describes the results and benefits of Warsaw Initiative programs."

A letter report issued by the General Accounting Office with an abstract that begins "The U.S. Army Corps of Engineers estimates that it will spend as much as $20 billion to clean up contamination at thousands of properties that were once owned, leased, or operated by the Defense Department (DOD). These properties contain hazardous, toxic, and radioactive wastes in the soil and water or in containers, such as underground storage tanks. The Corps is responsible for cleaning up the hazards, including removing underground storage tanks. DOD's annual report on its environmental restoration activities can provide a misleading picture of the Corps' accomplishments. DOD's accounts of completed projects include projects that were ineligible or that did not involve any actual cleanup effort. As a result, the impression is that--after 15 years and expenditures of $2.6 billion--more than half of the projects at formerly used defense sites have been completed. In reality, only about 32 percent of those projects that required actual cleanup actions have been completed, and those are the cheapest and least technologically challenging. The Corps estimates that the remaining projects will cost more than $13 billion and take upwards of 70 years to complete. The Corps' reporting of completed …

A letter report issued by the General Accounting Office with an abstract that begins "Passengers on the same commercial airline flight may pay very different fares. This situation has led to dissatisfaction among some passengers who believe that airline ticketing practices are unfair. To reduce their cost of flying, some passengers have tried to use "hidden-city" and "back-to-back" ticketing. Hidden-city ticketing occurs when a passenger books a flight to one city but purposely deplanes at an intermediate city. Though never intending to make the last leg of the flight, the passenger buys the ticket because it is cheaper than a ticket to the intermediate city. Back-to-back ticketing occurs when a passenger buys two round-trip tickets that include a Saturday night stay but either uses only half the ticket coupons or uses all the coupons out of sequence. This practice results in a lower price than would be possible by purchasing round-trip tickets that did not include a Saturday night stay. Most airlines expressly forbid the use of hidden-city and back-to-back ticketing. This report reviews (1) the factors that airlines consider when setting fares; (2) the factors that create hidden-city ticketing and the pricing practices that foster back-to-back ticketing practices; (3) …

A letter report issued by the General Accounting Office with an abstract that begins "The United Nations (U.N.) and its affiliated entities face the dual challenge of attracting and retaining staff who meet the highest standards of efficiency, competence, and integrity while maintaining the international character of the organizations by ensuring equitable geographic balance in the workforce. Nevertheless, U.N. organizations have made slow progress in addressing U.S. concerns about underrepresentation, and, except for the U.N. secretariat in New York, the organizations with representation targets that GAO studied have not achieved equitable employment of Americans since 1992. Although the U.N. organizations are ultimately responsible for achieving fair geographic balance among its member countries, the State Department, in coordination with other U.S. agencies, plays a role in ensuring that the United States is fairly represented. U.N. organizations have not fully developed long-range workforce planning strategies, and neither State nor the U.N. agencies have formal recruiting and hiring action plans to improve U.S. representation in the U.N. system. Without these measures, the United States' ability to even maintain the number of Americans employed in the United Nations could be hampered."