A letter report issued by the General Accounting Office with an abstract that begins "The informal and formal networks used by the Federal Aviation Administration (FAA) and the military services to exchange critical aviation safety information have proven useful. However, because recent and expected retirements threaten to erode informal networks, additional formal channels of communication are needed to ensure that common safety risks are identified and addressed in a systematic and timely manner. This includes the exchange of information on how FAA and the military services have addressed particular aviation safety concerns. Existing gaps in the formal processes used by FAA and the military services to exchange information could allow for communication lapses and delays in getting critical safety information to the right parties in a timely manner, potentially resulting in the loss of lives and aircraft."

Correspondence issued by the General Accounting Office with an abstract that begins "The Earned Income Tax Credit (EIC), which is expected to provide more than $20 billion in refundable tax credits in fiscal year 2002, is intended to offset the burden of the Social Security payroll tax on low-income workers and encourage low-income individuals to work. About 75 percent of the 17.2 million eligible households have claimed the credit. GAO found that the participation rate varied by the number of qualifying children in the household. Participation rates for households with one or two qualifying children were 96 percent and 93 percent respectively. In contrast, the participation rate for households with three or more qualifying children was 62.5 percent. The participation rate for households with no qualifying children was 44.7 percent. Although qualifying households were eligible to claim $22.3 billion in EICs in 1999, the Internal Revenue Service estimates that participating households actually claimed $20.9 billion."

A letter report issued by the General Accounting Office with an abstract that begins "GAO examined the environmental cleanup costs of ongoing operations of the Department of Defense (DOD). These include general property, plant, and equipment facilities or other assets that are being operated or are in use at DOD installations. GAO found that DOD has not developed policies, procedures, and methodologies to ensure that cleanup costs required for all of its ongoing and inactive or closed operations are identified, consistently estimated, and appropriately reported. As a result, DOD's financial statements and environmental reports continue to underreport environmental liabilities and related long-term budgetary needs. The military installations GAO visited had a total of 221 sites with estimated cleanup costs of $259 million. Of these, only 45 sites with estimated cleanup costs of $61 million were being reported for the Defense Environmental Restoration Program Annual Report to Congress, and only that amount was likely included in DOD's financial statements. GAO found DOD was not reporting 149 sites related to ongoing operations with estimated cleanup costs of $91 million and 27 inactive and closed operations with estimated cleanup costs of $107 million. The environmental offices at the six installations GAO visited had …

A letter report issued by the General Accounting Office with an abstract that begins "Initiatives to address flight delays include adding new runways to accommodate more aircraft and better coordinating efforts to adjust to spring and summer storms. Although most of these efforts were developed separately, the Federal Aviation Administration (FAA) has incorporated many of them into an Operational Evolution Plan (OEP), which is designed to give more focus to these initiatives. FAA acknowledges that the plan is not intended as a final solution to congestion and delay problems. The plan focuses on initiatives that can be implemented within 10 years and generally excludes approaches lacking widespread support across stakeholder groups. The current initiatives, if successful, will add substantial capacity to the nation's air transport system. Even so, these efforts are unlikely to prevent delays from becoming worse unless the reduced traffic levels resulting from the events of September 11 persist. One key reason is that most delay-prone airports have limited ability to increase their capacity, especially by adding new runways--the main capacity-building element of OEP. The air transport system has long-term needs beyond the initiatives now under way. One initiative would add new capacity--not by adding runways to existing …

A letter report issued by the General Accounting Office with an abstract that begins "Multilateral Development Banks (MDBs) provide financial support to promote social and economic progress in developing countries and the countries of central and eastern Europe and the former Soviet Union. Under the Foreign Operations, Export Financing, and Related Programs Appropriations Act of 2001, the United States is providing $1.3 billion to support the MDBs, with $460 million going to the regional development banks and $840 million going to the World Bank Group. All of the MDBs GAO reviewed have received unqualified or "clean" opinions on their external audits. However, none of the MDBs GAO reviewed are required to report on their internal controls over financial reporting, lending operations, or compliance with their governing charters or policies. In addition, the regional MDBs' external financial statement audits are not intended to, and do not, provide assurances about internal controls over the MDBs' lending operations and whether funds are spent as intended. Most of the regional MDBs that GAO reviewed have developed anti-corruption strategies that recognize the importance of strong internal control systems. Each of the regional MDBs GAO studied has established internal audit functions as part of their controls."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO surveyed 26 agencies not subject to the Chief Financial Officers Act of 1990. Overall, the surveyed agencies reported that they either achieved significant benefits or would anticipate achieving such benefits from having audited financial statements. The level of effort to prepare financial statements and prepare for an audit varied significantly with the size and other characteristics of the agencies. In determining whether agencies should prepare financial statements and have them audited, respondents identified a combination of factors to consider, including budget authority, key financial statement amounts, and the type of agency operations. Irrespective of the importance of such factors, 21 of the 26 agencies reported that federal agencies should have their financial statements audited."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO assessed agencies' validation of data submitted by prime contractors on their subcontracting achievements. Of $77 billion in subcontracting reported in fiscal year 2000, $31 billion went to small businesses, such as women-owned, and small disadvantaged businesses, as well as those located in historically underutilized business zones. Both civilian and defense agencies follow a similar process to validate subcontracting data--one that involves visiting contractors, assessing compliance with subcontracting plans, and evaluating accounting systems as well as management support of the subcontracting program. Most contractors GAO reviewed are making good faith efforts to comply with their subcontracting plans. However, these reviews could be improved to enhance the validation and use of subcontracting data."

A letter report issued by the General Accounting Office with an abstract that begins "The Economic Growth and Tax Relief Reconciliation Act of 2001 directed the Treasury to issue advance 2001 tax refunds to individual taxpayers who filed a tax year 2000 return. As a result, the Internal Revenue Service (IRS) had to identify eligible taxpayers so that checks could be sent to these taxpayers by December 31, 2001. The Department of the Treasury's Financial Management Service was to issue the checks on behalf of IRS, with the first checks to be received during the week of July 23, 2001. As of September 30, 2001, 84 million taxpayers were to have received $36 billion in advance tax funds. IRS offset about $2.1 billion from these advance tax refunds to recover delinquent federal taxes. IRS spent $104 million to run the program through September 2001, which included IRS staffing costs as well as the costs associated with contracts, postage, and printing. The Treasury Inspector General for Tax Administration identified two initial problems that affected either the accuracy or timeliness of the advance refund notices. One involved computer programming errors that resulted in 523,000 taxpayers receiving notices indicating that they would receive …

Correspondence issued by the General Accounting Office with an abstract that begins "The United States Capitol Preservation Commission receives commemorative coin surcharge funds authorized by the United States Capitol Visitor Center Commemorative Coin Act of 1999. Under the Omnibus Consolidated Appropriations Act of 1997 and the U.S. Mint's Compliance Procedures for Surcharge Eligibility, the commission must meet certain requirements before receiving available coin surcharge funds. The commission must provide the U.S. Mint with eligibility-related assertions associated with the commission's receipt and use of private matching funds, and an independent auditor must examine the assertions. GAO found that the assertion about the commission's receipt and use of private matching funds pursuant to the law and the U.S. Mint's Compliance Procedures for Surcharge Eligibility are fairly stated in all respects."

A letter report issued by the General Accounting Office with an abstract that begins "This report discusses the management of the air transportation network used to move checks from one Federal Reserve office to another. GAO studied the propriety of practices for bidding, awarding, and monitoring contracts and the adequacy of controls to monitor fuel and other payments to vendors. The network was moved to the Federal Reserve Bank of Atlanta (FRB Atlanta) in September 1998 and renamed Check Relay. Check Relay's internal controls are designed to ensure that each step of the contract evaluation and approval process conforms to FRB Atlanta and Federal Reserve System policies and that appropriate senior officials review and approve contract terms. Check Relay also ensures that all payments to vendors conform to contract terms. Another set of controls verifies that the amount of fuel used by Check Relay's vendors is consistent with expected levels and that fuel is provided only to the appropriate recipients. Check Relay is managed as a unit of the Retail Payments Office, which is managed out of FRB Atlanta. The Board's Division of Reserve Bank Operations and Payment Systems also has oversight responsibility over Check Relay. GAO found no evidence …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the National Nuclear Security Administration's (NNSA) progress in implementing key components of Title 32 of the National Defense Authorization Act for Fiscal Year 2000 including NNSA's reorganization efforts; integrated planning, programming, and budgeting improvements; use of its excepted service personnel authority; and efforts to improve its procurement practices. GAO found that although NNSA announced a new headquarters organization in May 2001, the reorganization did not clearly define the roles and responsibilities of the headquarters organizational units and did not address NNSA's field organization at all. More importantly, NNSA still lacks an overall organizational structure that clearly addresses long-standing issues such as the division of roles and responsibilities among headquarters offices and between headquarters and field staff. NNSA lost some momentum during the summer of 2001 as it reevaluated its efforts to develop a new planning, programming, budgeting, and evaluation process. NNSA now has established a conceptual process and begun to develop the necessary implementation plans and procedures. However, because of the broad scope of the work needed to develop these plans and procedures, it will be difficult to fully implement NNSA's process in time for the …

A letter report issued by the General Accounting Office with an abstract that begins "Last year, the U.N. Security Council passed a resolution expressing concern that the conflicts and instability associated with peacekeeping operations produce condition that could increase the spread of the human immunodeficiency virus (HIV). The resolution encouraged member states to educate peacekeeping personnel--including those who are HIV positive--on peacekeeping missions. The policies and guidance of the U.N. Department of Peacekeeping Operations discourage, but do not preclude, countries from sending individuals who are HIV positive on peacekeeping missions. This is consistent with the U.N. peacekeeper's code of conduct to do no harm. This is also consistent with the U.N.'s stated opposition to discrimination against those who are HIV positive. The number of HIV-positive peacekeepers is unknown because (1) the U.N. opposes mandatory HIV testing and collects no information on infection rates and (2) countries that contribute peacekeepers either do not test or do not share test results with the U.N. The U.N. has tried to reduce the spread of HIV during peacekeeping operations, but it faces immediate and long-term challenges. U.N. officials said that the U.N. has not given this effort enough priority and that it has been …

A letter report issued by the General Accounting Office with an abstract that begins "The estimated $6.5 billion full-cycle cost of the 2000 decennial census is nearly double that of the 1990 census. When the full-cycle cost is divided by the number of American households, the cost per housing unit of the 2000 census was $56 compared to $32 per housing unit for the 1990 census. The primary reasons for the cost increases include the following: (1) in the 1990 census, field data collection cost was $16 per housing unit, while in the 2000 census it was $32 per housing unit; (2) in the 1990 census, technology costs were $5 per housing unit compared to $8 per housing unit for the 2000 census; and (3) the data content and products activity cost $3 per housing unit in 1990 and $5 per housing unit in 2000."

A letter report issued by the General Accounting Office with an abstract that begins "The Army announced in October 2000 that personnel would begin wearing berets eight months later. To meet the tight deadline for the production of 5 million berets at a cost of about $30 million, the Defense Logistics Agency (DLA) shortcut normal contracting procedures and waived restrictions that limit military purchases of some items, including clothing, to those produced in the United States or its possessions. Despite these efforts, DLA was unable to meet the Army's deadline, and it terminated three contracts because the contractors did not meet delivery requirements. So far, the Defense Department (DOD) has received about 2.1 million berets--less than 1 million of which were distributed to Army personnel. DOD still expects another 1.6 million berets to be delivered by September 2002. DOD has taken steps to ensure that proposed waivers are considered at an appropriate management level. DOD no longer allows the Under Secretary of Defense or the service secretaries to delegate their authority to approve waivers. Requests for waivers must also be supported by analyses of why alternatives that would not require a waiver were unacceptable."

Correspondence issued by the General Accounting Office with an abstract that begins "As part of its audit of the U.S. government's fiscal year 2000 financial statements, GAO reviewed computer controls over key financial systems maintained and operated by the Federal Reserve Banks (FRB) on behalf of the Department of the Treasury's Financial Management Service (FMS) and the Bureau of the Public Debt (BPD). GAO identified opportunities to improve general controls related to access at two data centers; access, system software, and service continuity at a third data center; and access and system software at a fourth data center. GAO also identified opportunities to improve authorization controls over four key applications and accuracy controls over one of these key applications. FRB had corrected or mitigated the risks associated with all vulnerabilities discussed in earlier GAO reports. Although the general and application controls identified do not pose significant risks to the FMS and BPD financial systems, they warrant action to decrease the risk of inappropriate disclosure and modification of sensitive data and programs, misuse of or damage to computer resources, and disruption of critical operations."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the long-term viability of the Social Security program. Social Security's Trust Funds will not be exhausted until 2038, but the trustees now project that the program's cash demands on the rest of the federal government will begin much sooner. Aiming for sustainable solvency would increase the chance that future policymakers would not have to face these difficult questions on a recurring basis. GAO has developed the following criteria for evaluating Social Security reform proposals: financing sustainable solvency, balancing adequacy and equity, and implementing and administering reforms. These criteria seek to balance financial and economic considerations with benefit adequacy and equity issues and the administrative challenges associated with various proposals. GAO's recent report on Social Security and income adequacy (GAO-02-62) makes three key points. First, no single measure of adequacy provides a complete picture; each measure reflects a different outlook on what adequacy means. Second, given the projected long-term financial shortfall of the program, it is important to compare proposals to both benefits at currently promised levels and benefits funded at current tax levels. Third, various approaches to benefit reductions would have differing effects on adequacy."

A letter report issued by the General Accounting Office with an abstract that begins "GAO reviewed the Department of State's fiscal year 2000 performance report and its fiscal year 2002 performance plan. Weaknesses in State's fiscal year 2000 performance report made it difficult to determine the department's progress toward achieving such key outcomes as eliminating the threat from weapons of mass destruction and expanding foreign markets for U.S. products and services. These weaknesses are rooted in performance goals and indicators established in State's performance plan for 2000, which GAO criticized in an earlier report. State has taken a major step toward implementing Government Performance and Results Act of 1993 requirements by producing a fiscal year 2002 plan that is superior to earlier efforts. State will need to focus on reporting on all indicators in the plan and, if targets are not achieved, clearly explain why and what actions it plans to achieve the targets in the future."

A letter report issued by the General Accounting Office with an abstract that begins "Congress has long been concerned about the quality of service that taxpayers receive when calling the Internal Revenue Service (IRS) for help in understanding and meeting their tax obligations. IRS has taken steps to improve its responsiveness to the tens of millions of telephone calls it receives each year, from expanding the hours of service to increasing the use of automation. In the 2000 tax filing season, the quality of telephone assistance was mixed and below IRS' long-term goal of providing world-class service. Overall, IRS made limited progress toward its goal of providing world-class telephone service. When compared with the 2000 tax filing season, access and accuracy in 2001 improved in two of six comparable measures, declined in one, and changed two percentage points or less in the others. IRS fell considerably short of its target to reduce the time that taxpayers spend waiting to speak with an assistor. Although assistors exceeded quality-of-service targets when responding to taxpayer questions, they did not meet higher targets for providing correct answers and account adjustments. IRS officials missed opportunities to analyze data to better understand the factors affecting telephone …

Correspondence issued by the General Accounting Office with an abstract that begins "In the late 1980's, the Department of Energy's (DOE) Office of Defense Programs altered its mission. Instead of designing, testing, and building new nuclear weapons, the Office began to focus on maintaining the safety and reliability of the nation's nuclear weapons stockpile indefinitely without nuclear testing. This mission is performed by the National Nuclear Security Administration (NNSA), a semiautonomous agency within DOD. GAO found that NNSA's Office of Defense Programs is not developing a comprehensive stockpile life extension program plan as called for in the National Defense Authorization Act for Fiscal Year 2000. The Office believes their fiscal year 2002 budget submittal fulfills the spirit of the legislative requirement, and they have no plans to complete a comprehensive plan for the stockpile life extension program, other than to again include certain high-level refurbishment-related information in the fiscal year 2003 budget request. The Office is trying to improve the planning processes for some individual weapon life extension programs as well as their overall planning processes; however, they have no plans to integrate the individual life extension plans into an overall program."

A letter report issued by the General Accounting Office with an abstract that begins "In 1998, three-fourths of welfare recipients lived in central cities or rural areas, but two-thirds of new, entry-level jobs were in the suburbs. Public transportation, such as buses or subways, often offer little or no access to these jobs, and many welfare recipients do not have cars. To address this mismatch, the Transportation Equity Act for the 21st Century authorized up to $750 million through fiscal year 2003 for the Job Access and Reverse Commute (Job Access) program. Under the program, the Department of Transportation (DOT) can provide grants to improve transportation to employment sites. DOT must conduct a nationwide solicitation for grant applications and select grantees on a competitive basis. DOT adopted a two-track process for the selection of grantees. A noncompetitive process set aside funds for entities identified in conference reports, or applicants selected by those entities, and they were chosen without scoring or ranking their applications. The previously established competitive process for other applicants was continued. This two-track process for selecting Job Access grantees decreased opportunities to fund projects identified as "meritorious" through the competitive selection process. Although grantees must be chosen on …

Testimony issued by the General Accounting Office with an abstract that begins "The Compact of Free Association between the United States and the Federated States of Micronesia and the Republic of the Marshall Islands provides direct U.S. economic assistance and extends U.S. domestic programs and federal services to these two Pacific Island nations. The Compact also allows for migration from Micronesia and the Marshall Islands to the United States and establishes U.S. defense rights and obligations in the region. The Compact's economic assistance provisions were scheduled to expire in late 2001. However, the provisions will remain in effect for two more months while the United States and the two Pacific Island nations renegotiate them. Congress must renegotiate and reauthorize the expiring provisions by late 2003 for economic assistance to continue uninterrupted. The $1.6 billion provided under the Compact through 1998 has had little impact on economic development in Micronesia and the Marshall Islands and was subject to limited accountability. U.S. oversight was limited by interagency disagreements between the Departments of Interior and State, a lack of resources devoted to Compact oversight, and Interior's belief that Compact provisions restricted its ability to require accountability and withhold funds. Because of the lack …

A letter report issued by the General Accounting Office with an abstract that begins "This report analyzes the Department of Defense's (DOD) 1999 survey of active duty personnel. GAO found that among first-term and mid-career personnel, satisfaction with military life and retention intent, which tend to increase with an individual's seniority, were important reasons for joining the armed forces. Among first-term enlisted personnel, education benefits and training for civilian employment were among the top reasons for joining. Mid-career personnel cited a desire to serve their country as one of the main reasons for joining, and these individuals said that they were likely to serve 20 years. Mid-career enlisted personnel and officers who joined for education benefits or for training for a specific occupation--skills that can be transferred to civilian jobs--said that they were more likely to leave the military. Base pay, the amount of personal/family leave time, and leadership quality were the main reasons cited by servicemembers for leaving the military. Servicemembers did, however, view some aspects of military life more favorable compared with civilian life, including vacation time, sense of accomplishment and pride, and education and training opportunities."

Testimony issued by the General Accounting Office with an abstract that begins "The testimony discusses debt collection efforts by two major components at the Department of Agriculture--the Rural Housing Service (RHS) and the Farm Service Agency (FSA). The Debt Collection Improvement Act of 1996 requires agencies to (1) notify the Department of the Treasury of debts more than 180 days delinquent for the purposes of administrative offset against any amounts that might otherwise be due and (2) refer such debts to Treasury for centralized collection. To facilitate collection, agencies can administratively garnish the wages of delinquent debtors throughout government. GAO found that agencies are excluding most reported debt more than 180 days delinquent from referral requirements. To more fully realize the benefits of debt collection, agencies need to improve their implementation of the act. The Financial Management Service is making steady progress in collecting delinquent federal non-tax debt through the Treasury Offset Program--a mandatory governmentwide debt collection program that compares delinquent debtor debt to federal payment data. Agriculture and other agencies still have not used administrative wage garnishment to collect delinquent non-tax debt even though experts have testified that it can be an extremely powerful tool for debt collection. If …

Correspondence issued by the General Accounting Office with an abstract that begins "This report compares prices for prescription drugs purchased using drug discount cards with prices available at local pharmacies or over the Internet. Using a list of 17 widely prescribed drugs, GAO documents prices from (1) five companies that administer large drug discount card programs, (2) five Internet pharmacies, and (3) several retail pharmacies in four different areas."