Testimony issued by the General Accounting Office with an abstract that begins "This testimony focuses on the Alternative Minimum Tax (AMT), its interaction with the regular tax system, and its projected growth in coverage. GAO found that (1) AMT was designed to ensure that high-income individuals do not avoid significant income tax liabilities--for tax year 1997, about 14,000 taxpayers would not have paid any income taxes absent AMT, (2) AMT operates as a separate tax system that parallels the regular individual income tax system but with different rules for determining taxable income, different tax rates for computing tax liability, and different rules for allowing the use of tax credits, (3) AMT affected about one percent of taxpayers in 2000 and accounted for about $5.8 billion in additional tax revenue; by 2010, it is expected to increase the tax liabilities of about one out of six taxpayers and account for about $189 billion in tax revenues over the period, (4) the projected increase in AMT coverage is, for the most part, attributable to inflation and to the scheduled expiration of legislation temporarily excluding some tax credits from AMT rules, and (5) AMT's impacts include increased taxpayer compliance burden; increased Internal Revenue …

Testimony issued by the General Accounting Office with an abstract that begins "The results of the Defense Department (DOD) financial audit for fiscal year 2000 highlight long-standing financial management weaknesses that continue to plague the military. These weaknesses not only hamper the department's ability to produce timely and accurate financial management information but also unnecessarily increase the cost of carrying out its missions. Although DOD has made incremental improvement, it has a long way to go to overcome its long-standing, serious financial management weaknesses as part of a comprehensive, integrated reform of the department's business support operations. Such an overhaul must include not only DOD's financial management and other management challenges but also its high-risk areas of information technology and human capital management. Personnel throughout the department must share the common goal of reforming the department's business support structure. Without reengineering, DOD will have little chance of radically improving its cumbersome and bureaucratic processes."

Testimony issued by the General Accounting Office with an abstract that begins "The Homeland Security Act of 2002, which created the Department of Homeland Security, brought together 22 diverse organizations to help prevent terrorist attacks in the United States, reduce the vulnerability of the United States to terrorist attacks, and minimize damage and assist in recovery from attacks that do occur. To accomplish this mission, the act established specific homeland security responsibilities for the department, which included sharing information among its own entities and with other federal agencies, state and local governments, the private sector, and others. GAO was asked to discuss DHS's information sharing efforts, including (1) the significance of information sharing in fulfilling DHS's responsibilities; (2) GAO's related prior analyses and recommendations for improving the federal government's information sharing efforts; and (3) key management issues DHS should consider in developing and implementing effective information sharing processes and systems."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) how well the Internal Revenue Service (IRS) is providing service to taxpayers and ensuring compliance with tax laws, and (2) IRS' progress in its long-term effort to modernize. GAO found that IRS posted mixed results in 2001 in collecting revenues, providing taxpayer service, and enforcing tax laws. On the plus side, IRS processed millions of tax returns and issued refunds without significant problems, taxpayers had an easier time getting through to telephone assistors, and IRS said that it made progress in correcting weaknesses that threatened the security of electronically filed tax information. On the down side, the quality of service provided to taxpayers who visited taxpayer assistance centers, trends in audit rates and enforcement programs, and productivity all experienced troubling declines. With respect to modernization, IRS is making incremental progress in overhauling its organization, performance management system, business processes, and information technology. IRS is also making important progress in implementing its new organizational structure, developing a blueprint for modernizing its business processes and information systems, and more fully defining its strategic direction. However, IRS progress has fallen short of expectations. For example, IRS is …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed efforts to reform the administration, structure, and financing of the Medicare Program."

Testimony issued by the General Accounting Office with an abstract that begins "In response to concerns that some children were languishing in temporary foster care, Congress enacted the Adoption and Safe Families Act of 1997 (ASFA) to help states move children in foster care more quickly to safe and permanent homes. ASFA contained two key provisions: (1) the "fast track" provision allows states to bypass efforts to reunify families in certain egregious situations and (2) the "15 of 22" provision requires states, with a few exceptions, to file a petition to terminate parental rights (TPR) when a child has been in foster care for 15 of the most recent 22 months. Representative Wally Herger, Chairman of the House Ways and Means Subcommittee on Human Resources asked GAO to review (1) changes in outcomes for children in foster care since ASFA was enacted, (2) states' implementation of ASFA's fast track and 15 of 22 provisions, (3) states' use of two new adoption related funds provided by ASFA, and (4) states' initiatives to address barriers to achieving permanency"

Testimony issued by the General Accounting Office with an abstract that begins "Children fall ill with many of the same diseases as adults and are often treated with the same drugs. However, only about 25 percent of drugs used today have been labeled for pediatric patients. The lack of pediatric testing and labeling can place children at risk of under- or overdosing, and the lack of age-appropriate formulations, such as liquids or chewable tablets, can result in improper administration of drugs. The pediatric exclusivity provision of the Food and Drug Administration Modernization Act of 1997 has successfully encouraged drug sponsors to generate needed information on how drugs work in children. A wide range of drugs are being studied in many therapeutic areas. The infrastructure for conducting pediatric trials has also been greatly strengthened, which should help to support continued progress. Although several drug labels have been changed to incorporate findings from research done under the pediatric exclusivity provision, label changes typically occur long after the Food and Drug Administration has granted the extension of market exclusivity. In addition, there continues to be little incentive to conduct pediatric research on off-patent drugs."

Testimony issued by the General Accounting Office with an abstract that begins "For a number of years, the Department of Defense (DOD) has been promoting departmentwide use of purchase cards, and their use has dramatically increased. DOD reported that in fiscal year 2001, more than 230,000 civilian and military cardholders made 10.7 million purchase card transactions valued at more than $6.1 billion. The Navy has the second largest purchase card program in DOD. As was previously reported, there were significant breakdowns in internal control at two Navy sites that left those units vulnerable to fraud, waste, and abuse. These weaknesses are representative of systematic Navy-wide purchase card control weaknesses that have left Navy vulnerable to fraudulent, wasteful, and abusive use of purchase cards. Since the original report, the Navy has been taking actions to improve the purchase card control environment and improve cardholder adherence to key purchase card control procedures. The Navy has also taken more aggressive actions to identify fraudulent, improper, and abusive or questionable purchase card acquisitions."

Testimony issued by the General Accounting Office with an abstract that begins "Hazardous substances that leak from underground storage tanks can contaminate the soil and water and pose continuing health risks. Leaks of methyl tertiary butyl ether--a fuel additive--have forced several communities to close their wells. GAO surveyed all 50 states and the District of Columbia to determine whether tanks are compliant with the Environmental Protection Agency's (EPA) underground storage tank (UST) requirements. About 1.5 million tanks have been closed since the program was created, leaving about 693,000 tanks subject to UST requirements. Eighty-nine percent of these tanks had the required protective equipment installed, but nearly 30 percent of them were not properly operated and maintained. EPA estimates that the rest were inactive and empty. More than half of the states do not meet the minimum rate recommended by EPA for inspections. State officials said that they lacked the money, staff, and authority to conduct more inspections or more strongly enforce tank compliance. States reported that even tanks with the required leak prevention and detection equipment continue to leak, although the full extent of the problem is unknown. EPA is seeking better data on leaks from upgraded tanks and is …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed its reviews of agency compliance with a number of procedural and analytical requirements in federal rulemaking."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the challenges facing the Nuclear Regulatory Commission (NRC) as it moves from its traditional regulatory approach to a risk-informed, performance-based approach. GAO found that NRC's implementation of a risk-informed approach for commercial nuclear power plants is a complex, multiyear undertaking that requires basic changes to the regulations and processes NRC uses to ensure the safe operation of these plants. NRC needs to overcome several inherent difficulties as it seeks to apply a risk-informed regulatory approach to the nuclear material licensees, particularly in light of the large number of licensees and the diversity of activities they conduct. NRC will have to demonstrate that it is meeting its mandate (under the Government Performance and Results Act) of increasing public confidence in NRC as an effective regulator. NRC also faces challenges in human capital management, such as replacing a large percentage of its technical staff and senior managers who are eligible to retire. NRC has developed a five-year plan to identify and maintain the core competencies it needs and has identified legislative options to help resolve its aging staff problem."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Department of State's fiscal year (FY) 2001 budget, focusing on the management challenges that State faces in improving its operations in four areas."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the challenges the Federal Transit Administration (FTA) faces in evaluating and overseeing proposed mass transit construction projects, focusing on: (1) FTA's process for evaluating proposed transit projects; (2) FTA's oversight of transit projects under construction; (3) the ever-increasing competition for federal transit construction dollars; and (4) the costs, schedules, and financing of six ongoing transit projects."

Testimony issued by the General Accounting Office with an abstract that begins "GAO is required by law to audit the consolidated financial statements of the U.S. government. Timely, accurate, and useful financial information is essential for making informed operating decisions day to day, managing the federal government's operations more efficiently and effectively, meeting the goals of federal financial management reform legislation, supporting results-oriented management approaches, and ensuring accountability on an ongoing basis. The importance of such information is heightened by the unprecedented demographic challenge of an aging population. Federal spending on the elderly, health care, and new homeland security and defense commitments increases the need to look at competing claims on the budget and at new priorities. Over the past year, the Principals of the Joint Financial Management Improvement Program continued efforts to accelerate progress in financial management reform. Also, President Bush has implemented the President's Management Agenda to provide direction to, and closely monitor, management reform across government, which encompasses improved financial management performance. To effectively implement federal financial management reform, sustained leadership and oversight are essential."

Testimony issued by the General Accounting Office with an abstract that begins "Federal employees represent the government's knowledge base, drive its capacity to perform, and define its character, and as such, are its greatest asset. The early years of the 21st century are proving to be a period of profound transition for our world, our country, and our government. In response, the federal government needs to engage in a comprehensive review, reassessment, reprioritization, and as appropriate, reengineering of what the government does, how it does business, and in some cases, who does the government's business. Leading public organizations here and abroad have found that strategic human capital management must be the centerpiece of any serious change management initiative and effort to transform the cultures of government agencies. In response to a Congressional request, GAO discussed the status of the federal government's efforts to address high-risk human capital weaknesses, possible short- and longer-term legislative solutions to those weaknesses, and other human capital actions that need to be taken to ensure that federal agencies are successfully transformed to meet current and emerging challenges."

Testimony issued by the General Accounting Office with an abstract that begins "Improving the oversight and controlling the costs of major highway and bridge projects is important for the federal government, which often pays 80 percent of these projects' costs. Widespread consensus exists on the need to fund such projects, given the doubling of freight traffic and worsening congestion projected over the next 20 years, yet growing competition for limited federal and state funding dictates that major projects be managed efficiently and cost effectively. The Federal Highway Administration (FHWA) provides funding to the states for highway and bridge projects through the federal-aid highway program. This funding is apportioned to the states, and state departments of transportation choose eligible projects for funding. FHWA provides oversight to varying degrees, and, under the Transportation Equity Act for the 21st Century (TEA-21), FHWA and each state enter into an agreement documenting the types of projects the state will oversee. This statement for the record summarizes cost and oversight issues raised in reports and testimonies GAO has issued since 1995 on major highway and bridge projects and describes options that GAO has identified to enhance federal oversight of these projects, should Congress determine that such …

Testimony issued by the General Accounting Office with an abstract that begins "Although the District of Columbia, the Financial Responsibility and Management Assistance Authority, and Congress have achieved an enormous accomplishment in restoring the District to financial viability, many of the challenges the District faced in the past continue. The District and Congress need current, reliable information about the District's financial condition and developing trends in order to promptly respond to any pressures or warning signs that could indicate that future difficulties lie ahead. Toward that end, the District must ensure that its new financial management system is effectively implemented and provides decision makers with reliable and timely data. In addition, since 1995, Congress has put in place a number of reporting requirements to help provide the financial, planning, and performance information that it needs to conduct effective oversight and make decisions. Congress may wish to consider additional mechanisms to ensure that it and the District have the information needed to help the District maintain its financial viability and address its current and emerging challenges. Such mechanisms must be considered and implemented within a context that seeks to balance two sets of values: the overriding importance of Home Rule and …

Testimony issued by the General Accounting Office with an abstract that begins "The Internal Revenue Service (IRS) is responsible for collecting virtually all of the funds that pay for the federal government. For 2003, IRS expects to process 130 million individual income tax returns, issue 99 million refunds, receive 100 million telephone calls, and assist 4 million taxpayers face-to-face at IRS and volunteer offices. Most of these interactions with taxpayers occur during the January through April tax filing season. GAO was asked by the Subcommittee on Oversight, House Committee on Ways and Means, to assess the likelihood of IRS allocating more resources to a key priority, compliance; whether proposed spending on computer systems is justified; and filing season performance."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony addresses GAO's fiscal year 2001 performance and results, current challenges and future plans, and GAO's budget request for fiscal year 2003."

Testimony issued by the General Accounting Office with an abstract that begins "Protecting the computer systems that support federal agencies' operations and our nation's critical infrastructures--such as power distribution, telecommunications, water supply, and national defense--is a continuing concern. These concerns are well-founded for a number of reasons, including the dramatic increases in reported computer security incidents, the ease of obtaining and using hacking tools, the steady advance in the sophistication and effectiveness of attack technology, and the dire warnings of new and more destructive attacks. GAO first designated computer security as high risk in 1997, and in 2003 expanded this high-risk area to include protecting the systems that support our nation's critical infrastructures, referred to as cyber critical infrastructure protection or cyber CIP. GAO has made previous recommendations and periodically testified on federal information security weaknesses--including agencies' progress in implementing key legislative provisions on information security--and the challenges that the nation faces in protecting our nation's critical infrastructures. GAO was asked to provide an update on the status of federal information security and CIP."

Testimony issued by the General Accounting Office with an abstract that begins "Congress, law enforcement, and others have expressed concern about the misuse of Social Security numbers (SSNs). Death information collected by the Social Security Administration (SSA), including the SSN, generally reaches financial institutions and other entities within one to two months of a person's death. SSA and the National Technical Information Service could improve the timeliness of the distribution of the Death Master File. Improving the timeliness of death information to the financial services industry would help to narrow the window of time that a criminal has to open new accounts using a deceased individual's identity. Additional education for the financial services industry about the availability and contents of the Death Master File would also be helpful. Providing timely death information and making financial institutions more aware of a reliable source of such information could deter criminals from using deceased individuals' social security numbers to obtain false identities for fraudulent activities."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the World Trade Organization's (WTO) 1999 ministerial conference, focusing on the: (1) outcome of the ministerial conference; (2) factors contributing to the outcome; and (3) the lessons learned from the meeting."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Department of the Navy's internal controls over the government travel card program. The Navy's average delinquency rate of 12 percent over the last 2 years is nearly identical to the Army's, which has the highest delinquency rate in the Department of Defense, and 6 percentage points higher than that of federal civilian agencies. The Navy's overall delinquency and charge-off problems, which have cost the Navy millions in lost rebates and higher fees, are primarily associated with lower-paid, enlisted military personnel. In addition, lack of management emphasis and oversight has resulted in management failure to promptly detect and address instances of potentially fraudulent and abusive activities related to the travel card program. During fiscal year 2001 and the first 6 months of fiscal year 2002, over 250 Navy personnel might have committed bank fraud by writing three or more nonsufficient fund checks to Bank of America, while many others abused the travel card program by failing to pay Bank of America charges or using the card for inappropriate transactions such as for prostitution and gambling. However, because Navy management was often not aware of these …

Testimony issued by the General Accounting Office with an abstract that begins "The Free Trade of the Americas Agreement (FTAA) would eliminate tariffs and create common trade and investment rules within the 34 democratic nations of the Western Hemisphere. The trade ministers for FTAA faced an ambitious agenda at the April 2001 meetings. Accommodations reached by the ministers on controversial issues, such as labor and the environment, antidumping, and nations with small economies, allowed countries to set forth basic principles while keeping topics on the table for future resolution. As a result of the movement on these controversial issues, the trade ministers were able to set out clear objectives and deadlines to promote progress during the next 18 months of the negotiations. The trade ministers told negotiating groups to (1) eliminate material that is in dispute to the maximum extent possible; (2) develop recommendations by April 1, 2002, on the methods and ground rules for negotiation; and (3) develop, where appropriate, inventories of tariffs, nontariff barriers, subsidies, and other practices that distort trade. To build public support for the FTAA process, and to promote transparency in the negotiating process, the trade ministers agreed to publicly release the draft text of …