Testimony issued by the General Accounting Office with an abstract that begins "A safe and secure civil aviation system is a critical component of the nation's overall security, physical infrastructure, and economic foundation. Billions of dollars and a myriad of programs and policies have been devoted to achieving such a system. Although it is not fully known at this time what actually occurred or what all the weaknesses in the nation's aviation security apparatus are that contributed to the horrendous terrorist acts of Semptember 11, 2001, it is clear that serious weaknesses exist in the nation's aviation security system and that their impact can be far more devastating than previously imagined. There are security concerns with (1) airport access controls, (2) passenger and carry-on baggage screening, and (3) alternatives to current screening practices, including practices in selected other countries. Controls for limiting access to secure areas, including aircraft, have not always worked as intended. In May of 2000, special agents used counterfeit law enforcement badges and credentials to gain access to secure areas at two airports, bypassing security checkpoints and walking unescorted to aircraft departure gates. In June 2000, testing of screeners showed that significant, long-standing weaknesses--measured by the screeners' …

Testimony issued by the General Accounting Office with an abstract that begins "In recent years, the Washington Metropolitan Area Transit Authority's (WMATA) public transit system has experienced safety and reliability problems, including equipment breakdowns, delays in scheduled service, unprecedented crowding on trains, and accidents and tunnel fires. WMATA is examining ways to ease crowding on the systems rail cars and determining whether and how to expand Metrorail maintenance and repair shop capacity as WMATA acquires nearly 200 new rail cars. WMATA has also undertaken a comprehensive program for infrastructure renewal, and it is now studying improvements or modifications to accommodate the goal of doubling ridership by the year 2025. WMATA's safety program has evolved since the mid-1990s, when a series of accidents and incidents led to several independent reviews citing the need for program improvements. WMATA monitors safety and crime statistics and has several ongoing targeted efforts to reduce safety incidents and deter crime on its transit systems. WMATA has adopted several of the best capital investment practices used by leading public and private sector organizations, but it could benefit by establishing a more formal, disciplined framework for its capital decision-making process. WMATA has used a wide variety of innovative …

Testimony issued by the General Accounting Office with an abstract that begins "E-government refers to operations that enhance delivery of government information and services. Enterprise architectures provides for successful delivery of e-government applications, which in turn promise improved government performance and accountability. Under the Office of Management and Budget's (OMB) leadership, the president's fiscal year 2003 budget proposes 24 e-government initiatives, most involving multiple agencies. These initiatives have laudable goals, including the elimination of redundant, nonintegrated business operations and systems which could save billions of dollars. The success of these initiatives depends in large part on whether they are pursued within the context of enterprise architectures. Approved architectures for most of these initiatives do not currently exist. OMB has been a proponent of enterprise architectures and has recently devoted increased attention to them. However, it can and should play a larger role. The maturity framework and benchmark data about 116 departments, component agencies, and independent agencies GAO reviews in this testimony provide important baseline information against which targeted improvement across the government can be defined and measured."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Department of Veterans Affairs' (VA) information technology (IT) program, focusing on VA's efforts to: (1) improve its process for selecting, controlling, and evaluating IT investments; (2) fill the chief information officer (CIO) position; (3) develop an overall strategy for reengineering its business processes; (4) complete a departmentwide integrated systems architecture; (5) track its IT expenditures; (6) implement the Veterans Health Administration's (VHA) Decision Support System and the Veterans Benefits Administration's (VBA) compensation and pension replacement project; and (7) improve the department's computer security."

Testimony issued by the General Accounting Office with an abstract that begins "The Government Paperwork Elimination Act (GPEA) requires that by 2003 federal agencies provide the public the option of submitting, maintaining, and disclosing required information--such as employment records, tax forms, and loan applications--electronically, instead of on paper. In October 2000, federal agencies submitted GPEA implementation plans to the Office of Management and Budget (OMB), which is responsible for executive branch oversight of GPEA. The plans submitted by the the Department of the Treasury and the Environmental Protection Agency (EPA) generally provide the kind of information that was specified in OMB's July 2000 guidance. However, the Department of Defense's (DOD) plan did not describe the department's overall GPEA strategy and, in some cases, the data provided for specific information collections may be inaccurate, incomplete or duplicative. Officials at all three agencies said that they faced challenges in complying with GPEA, particularly with regard to implementing adequate security assurances for sensitive electronic transactions and in planning for and implementing computer network infrastructures. Furthermore, OMB will be challenged in providing oversight of agency GPEA activities because the plans submitted by the agencies go not document key strategic actions, nor do they specify …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO investigated alleged contracting irregularities at the Pension Benefit Guaranty Corporation (PBGC), focusing on allegations that PBGC's Director of Insurance Operations, Bennie Hogan, improperly influenced the award of two contracts to Myrna Cooks."

Testimony issued by the General Accounting Office with an abstract that begins "To help limit air pollution, about a third of the states use gasoline that contains methyl tertiary butyl ether (MTBE), which burns cleaner. However, MTBE has migrated into wells and groundwater from leaking underground tanks used to store gasoline. The Environmental Protection Agency (EPA) has the responsibility through the Underground Storage Tank Program and works through the states to ensure that tanks do not leak and, if they do, that the contamination is cleaned up. To help states cover the program costs, Congress annually provides grants from a trust fund it created in 1986. Most of the 50 states have reported finding MTBE when they discover gasoline contamination in their tank sites and increasingly, in their groundwater, surface water, and drinking water. States have made progress in addressing the releases they have discovered, including MTBE contamination, but face a continuing and substantial cleanup workload. States typically depend on tank owners or operators to pay some of the cleanup costs and cover the remainder with their own funding programs and depend on relatively small federal trust fund grants to pay staff to oversee cleanups and administer their programs."

Testimony issued by the General Accounting Office with an abstract that begins "The pricing of Medicare's part B-covered prescription drugs--largely drugs that cannot be administered by patients themselves--has been under scrutiny for years. Most of the part B drugs with the highest Medicare payments and billing volume fall into three categories: those that are billed for by physicians and typically provided in a physician office setting, those that are billed for by pharmacy suppliers and administered through a durable medical equipment (DME) item, and those that are also billed by pharmacy suppliers but are patient-administered and covered explicitly by statute. Studies show that Medicare sometimes pays physicians and other providers significantly more than their actual costs for the drugs. In September 2000, the Health Care Financing Administration's (HCFA)--now the Centers for Medicare and Medicaid Services--took steps to reduce Medicare's payment for part B-covered drugs by authorizing Medicare carriers, the contractors that pay part B claims, to use prices obtained in the Justice Department investigations of providers' drug acquisition costs. HFCA retracted this authority in November 2000 after providers raised concerns. GAO found that Medicare's method for establishing drug payments is flawed. Medicare pays 95 percent of the average wholesale price …

Testimony issued by the General Accounting Office with an abstract that begins "The United States now faces increasingly diverse threats that put great destructive power into the hands of small states, groups, and individuals. These threats range from cyber attacks on critical infrastructure to terrorist incidents involving weapons of mass destruction or infectious diseases. Efforts to combat this threat will involve federal agencies as well as state and local governments, the private sector, and private citizens. GAO believes that the federal government must address three fundamental needs. First, the government needs clearly defined and effective leadership with a clear vision carry out and implement a homeland security strategy and the ability to marshal the necessary resources to get the job done. Second, a national homeland security strategy should be based on a comprehensive assessment of national threats and risks. Third, the many organizations that will be involved in homeland security must have clearly articulated roles, responsibilities, and accountability mechanisms. Any strategy for homeland security must reduce risk where possible, assess the nation's vulnerabilities, and identify the critical infrastructure most in need of protection. To be comprehensive, the strategy should include steps to use intelligence assets or other means to identify …

Testimony issued by the General Accounting Office with an abstract that begins "As more and more of the baby boomers enter retirement age, spending for Medicare, Medicaid, and Social Security is expected to absorb correspondingly larger shares of federal revenue and crowd out other spending. The aging of the baby boomers will also increase the demand for long-term care and contribute to federal and state budget burdens. The number of disabled elderly who cannot perform daily living activities without assistance is expected to double in the future. Long-term care spending from public and private sources--about $137 billion for persons of all ages in 2000--will rise dramatically as the baby boomers age. Without fundamental financing changes, Medicaid--which pays more than one-third of long-term care expenditures for the elderly--can be expected to remain one of the largest funding sources, straining both federal and state governments."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony comments on legislation that would elevate the Environmental Protection Agency (EPA) to Cabinet status. Today, EPA's mission, size, and scope of responsibilities place it on a par with many Cabinet departments. The United States is the only major industrial power without a Cabinet-level environmental organization. It is important to consider that (1) environmental policy be given appropriate weight as it cuts across the domestic and foreign policies that other Cabinet departments implement and enforce and (2) the head of the agency is able to deal as an equal with his or her counterparts within the federal government as well as the international community. Conferring Cabinet status on EPA would not in itself change the federal environmental role or policies, but it would clearly have an important symbolic effect. Regardless of its status, however, EPA must respond more effectively to its fundamental management challenges. These challenges include (1) placing the right people with the appropriate skills where they are needed and (2) gaining access to high-quality environmental, natural, and social data on which to base environmental decisions. EPA must have the flexibility to use innovative approaches to …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Pension Benefit Guaranty Corporation's (PBGC) management of its contracting responsibilities, focusing on: (1) the basis for PBGC's decisions regarding the use of contractors versus government personnel to address its workloads; (2) PBGC's processes and procedures for selecting contractors; and (3) how effective PBGC has been in monitoring the performance of its contractors."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the benefits of increased federal funding for the National Railroad Passenger Corporation (Amtrak) and high-speed passenger rail systems. Amtrak made minimal progress in 2000 toward achieving operational self-sufficiency. Although Amtrak is required by law to achieve operational self-sufficiency by the end of 2002, the outlook is not bright. Amtrak reduced its "budget gap" by only $5 million and must achieve an additional $281 million in savings by the end of next year. In addition to the uncertainty over Amtrak's future, this is an opportunity to examine the future of intercity passenger rail. Federal costs are expected to be large. For example, the ultimate cost to build high-speed rail corridors is unknown, but it will certainly be in the many tens of billions of dollars. Much of the funding could be expected to come from the federal government. In deciding the future of intercity passenger rail, it is important for Congress to have realistic assessments of the benefits to the public from this mode of transportation. These assessments would help establish the role, if any, of intercity passenger rail service in the nation's transportation system and …

Testimony issued by the General Accounting Office with an abstract that begins "Research and Development (R&D) is vital to the long-term health of industry and the national economy. To join the ideas and resources of the research institutions--universities and colleges, federal laboratories, and nonprofit research centers--with the commercialization experience of small businesses, Congress authorized the Small Business Technology Transfer (STTR) Pilot Program in 1992 and reauthorized it in 1997. The STTR program is closely modeled on the Small Business Innovation Research (SBIR) Program. In preparation for the review and potential reauthorization of the STTR program, GAO obtained information from companies participating in the program. The companies reported that both they and the research institutions made considerable contributions to the R&D, such as knowledge or expertise essential to the project. They also created new partnerships that helped achieve technical objectives. However, the companies reported that they played a substantially greater role than the research institutions in originating the key ideas for the R&D. The companies further reported various results from the R&D, including the sales of products, processes, or services; the receipt of additional developmental funding beyond the original STTR funding; and patents granted. Finally, when asked for their view of …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the U.S. government's disaster recovery and reconstruction program for countries that have been devastated by hurricanes. GAO found that the Agency for International Development (AID) and other U.S. agencies are using the disaster recovery assistance to bring about economic recovery, improve public health and access to education, provide permanent housing for displaced families, and improve disaster mitigation and preparedness. To achieve these broad objectives, AID is funding infrastructure construction and repair, technical assistance and training, loans for farmers and small businesses, and some commodities. After initial start-up problems, the U.S. disaster recovery and reconstruction program is proceeding, and most activities are scheduled for completion on or before December 31, 2001, as AID and congressional staff had informally agreed. To help ensure that funds are spent as intended, AID has channeled much of the disaster recovery assistance funding through cooperating partners with proven track records, contracted with management and financial services firms to handle disbursement to vulnerable partners, and hired contractors to monitor project quality. Although some activities have not gone as smoothly as planned, the missions have responded to concerns as they arose. The bottom …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Federal Bureau of Investigation's (FBI) proposed reorganization and realignment plans. The FBI's plans are part of a broader effort to fundamentally transform the federal government in light of recent trends and long-range fiscal challenges. As it moves into the 21st century, the country faces several key trends, including global interdependence; diverse, diffuse, and asymmetrical security threats; rapidly evolving science and technologies; dramatic shifts in the age and composition of the population; important quality of life issues; and evolving government structures and concepts. The second phase of the reorganization focuses on major aspects of FBI's realignment efforts, including realigning staff, building analytical capacity, the National Infrastructure Protection Center, and recruiting. Other issues include (1) major communications and information technology improvements, (2) development of an internal control system that will ensure protection of civil liberties as investigative constraints are loosened, and (3) management of the ripple effect that changes at the FBI will have on other aspects of the law enforcement community. As the FBI moves to effectively meet the realities and challenges since September 11, it should reconsider employing the major elements of successful transformation …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the financial management issues facing the Department of Agriculture (USDA), focusing on problems in the areas of: (1) implementing the Federal Credit Reform Act (FCRA) of 1990 and related accounting standards; (2) reconciling its Fund Balance with Treasury accounts; (3) addressing weaknesses in the Forest Service's financial accounting and reporting; (4) correcting certain other material internal control weaknesses; and (5) complying with some key laws and regulations."

Testimony issued by the General Accounting Office with an abstract that begins "The five Great Lakes, which comprise the largest system of freshwater in the world, are threatened on many environmental fronts. To address the extent of progress made in restoring the Great Lakes Basin, which includes the lakes and surrounding area, GAO (1) identified the federal and state environmental programs operating in the basin and funding devoted to them, (2) evaluated the restoration strategies used and how they are coordinated, and (3) assessed overall environmental progress made in the basin restoration effort."

A letter report issued by the General Accounting Office with an abstract that begins "The National Aeronautics and Space Administration (NASA) spends 90 percent--$13 billion--of its budget on contractors. Yet since 1990, GAO has designated NASA's contract management as a high-risk area--in part because the agency failed to implement a financial management system to provide information needed to make key program decisions. In April 2000, NASA initiated its most recent effort to implement an effective financial management system--the Integrated Financial Management Program (IFMP). Three years into the program, GAO found NASA risks building a system that will cost more and do less than planned. As a result, the Congress requested reviews of NASA's IFMP enterprise architecture and financial reporting and program cost and schedule controls."

Testimony issued by the Government Accountability Office with an abstract that begins "Federal agencies rely extensively on information technology (IT) to effectively implement major government programs. To help agencies manage their substantial IT investments, the Congress has established a statutory framework of requirements, roles, and responsibilities relating to IT management. GAO was asked to summarize its report, being issued today, on federal chief information officers' (CIO) responsibilities, reporting relationships, and tenure and on the challenges that CIOs face ( Federal Chief Information Officers: Responsibilities, Reporting Relationships, Tenure, and Challenges, GAO-04-823, July 21, 2004) and to offer suggestions for actions that both the Congress and the agencies can take in response to these findings."

A letter report issued by the General Accounting Office with an abstract that begins "Following major failures in corporate financial reporting, the Sarbanes-Oxley Act of 2002 was enacted to protect investors through requirements intended to improve the accuracy and reliability of corporate disclosures and to restore investor confidence. The act included reforms intended to strengthen auditor independence and to improve audit quality. Mandatory audit firm rotation (setting a limit on the period of years a public accounting firm may audit a particular company's financial statements) was considered as a reform to enhance auditor independence and audit quality during the congressional hearings that preceded the act, but it was not included in the act. The Congress decided that mandatory audit firm rotation needed further study and required GAO to study the potential effects of requiring rotation of the public accounting firms that audit public companies registered with the Securities and Exchange Commission."

A letter report issued by the General Accounting Office with an abstract that begins "The U.S. military assistance programs provided $74 billion in military equipment, services, and training to countries in the Middle East from fiscal years 1991 through 2000. The Foreign Military Sales and Foreign Military Financing programs account for about 96 percent of the value of military items in the U.S. delivered to the region. The U.S. weapon systems delivered include F-16 and F/A-18 fighter aircraft; Apache and Cobra helicopters; M1A1 Tanks; and AMRAAM, ATACMS, and Stinger missiles. Conditions on the use of U.S. military equipment, services, and training delivered to countries in the Middle East, with few exceptions, are limited to standard conditions that the U.S. government places on all transfers of U.S. military items. By law, the U.S. may provide military items to foreign governments only for internal security, legitimate self-defense, participation in collective agreements that are consistent with the United Nations' charter, or civic action."

A letter report issued by the General Accounting Office with an abstract that begins "Management of the U.S. Postal Service's (USPS) e-commerce program has been fragmented, and implementation of e-commerce initiatives has varied at different business units. Overall, USPS' performance in this area has fallen short of expectations. Last year, the Postmaster General announced a sweeping management restructuring that changed both the reporting structure and program managers. USPS also revised its procedures for approving and implementing new Internet initiatives, including e-commerce. However, concerns persist about whether USPS' e-commerce initiatives are being cross-subsidized by other postal products and services. USPS managers contend that e-commerce products and services must cover their incremental costs. GAO found that this goal has not been met and it is unclear when it might be achieved. Without accurate, complete, and consistent financial information, USPS cannot assess its progress toward its financial performance goals for e-commerce. USPS also lacks clear and comprehensive policies and procedures for reporting direct and indirect revenues and costs for e-commerce and other new products and services. As a result, reporting inconsistencies are likely to continue. In contrast, USPS has reportedly developed privacy policies and practices for its e-commerce customers that exceed those required …

A letter report issued by the General Accounting Office with an abstract that begins "Pursuant to a legislative requirement, GAO reviewed the Department of Agriculture's (USDA) efforts to implement the Packers and Stockyards Act, focusing on: (1) the number and status of investigations conducted by the Grain Inspection, Packers and Stockyards Administration (GIPSA) in response to complaints and concerns about anticompetitive activity involving the marketing of cattle and hogs; and (2) factors that affect GIPSA's ability to investigate concerns about anticompetitive practices."