Testimony issued by the Government Accountability Office with an abstract that begins "While federal grant funding has been increasing, long-standing concerns remain about the federal government's grants management and the lack of effective oversight tools to reasonably assure that grants are used for their intended purposes and that risks of fraud, waste, and abuse are minimized. GAO has issued a range of reports raising concerns about the risks and vulnerabilities related to grants management and oversight. The Administration recognizes these concerns. It included improving grants management as a part of its initiative to eliminate waste in the U.S. government and has various efforts underway to improve grants oversight and accountability. This testimony addresses the (1) significance of federal grant funding, (2) risks and vulnerabilities in key controls in the federal grant life cycle, and (3) improvements needed to make the single audit process an effective accountability mechanism. This testimony is primarily based on prior GAO work that reviewed grant accountability and the single audit process."

Testimony issued by the Government Accountability Office with an abstract that begins "The Centers for Medicare & Medicaid Services (CMS) is responsible for protecting the Medicare program's fiscal integrity and ensuring that it pays only for those services that are its responsibility. Medicare Secondary Payer (MSP) provisions make Medicare a secondary payer to certain group health plans (GHP) and non-group health plans (NGHP), which include auto or other liability insurance, no-fault insurance, and workers' compensation plans. CMS has the right to recover Medicare payments made that should have been the responsibility of another payer, but CMS has not always been aware of these MSP situations. In 2007, Congress added mandatory reporting requirements for GHPs and NGHPs that should enable CMS to be aware of MSP situations. CMS reports that mandatory reporting was pushed back from 2009 to 2011 for some NGHPs and from 2009 to 2012 for others, in part due to concerns raised by the industry. GAO was asked to present background information about the MSP process as it pertains to NGHPs. To do this work, GAO reviewed relevant CMS documentation, including MSP regulations, manuals, and user guides, and conducted an interview with CMS related to mandatory reporting and …

Testimony issued by the Government Accountability Office with an abstract that begins "Federal entities--agencies, corporations, and others--are growing users of credit and debit cards, as both "merchants" (receiving payments) and purchasers. Federal entities, like other merchants that accept cards, incur fees--called merchant discount fees--to process card transactions. For Visa and MasterCard transactions, a large portion of these fees-- referred to as interchange fees--goes to the card-issuing banks. This statement addresses (1) the amounts of revenue that federal entities have collected using credit and debit cards and the costs of such acceptance, (2) these entities' efforts to reduce their interchange fee costs, including negotiations, and (3) the extent to which card network rules affect these entities and other card accepters' ability to reduce interchange fee costs. The information for this statement was drawn from Credit and Debit Cards: Federal Entities Are Taking Actions to Limit Their Interchange Fees, but Additional Revenue Collection Cost Savings May Exist (GAO-08-558) and Credit Cards: Rising Interchange Fees Have Increased Costs for Merchants, but Options for Reducing Fees Pose Challenges (GAO-10-45). GAO analyzed data on accepting and using cards from the Department of the Treasury (Treasury), Amtrak, the Postal Service, and General Services Administration (GSA); and …

Testimony issued by the Government Accountability Office with an abstract that begins "Recent terrorist events such as the attempted bomb attacks in New York's Times Square and aboard an airliner on Christmas Day 2009 are reminders that national security challenges have expanded beyond the traditional threats of the Cold War Era to include unconventional threats from nonstate actors. Today's threats are diffuse and ambiguous, making it difficult--if not impossible--for any single federal agency to address them alone. Effective collaboration among multiple agencies and across federal, state, and local governments is critical. This testimony highlights opportunities to strengthen interagency collaboration by focusing on four key areas: (1) developing overarching strategies, (2) creating collaborative organizations, (3) developing a well-trained workforce, and (4) improving information sharing. It is based on GAO's body of work on interagency collaboration."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the training efforts of the U.S. Department of State's (State) Bureau of Diplomatic Security (Diplomatic Security). The testimony is based on our report, which is being released today. Diplomatic Security is responsible for the protection of people, information, and property at over 400 embassies, consulates, and domestic locations and, as we reported in previous testimony, experienced a large growth in its budget and personnel over the last decade. Diplomatic Security trains its workforce and others to address a variety of threats, including crime, espionage, visa and passport fraud, technological intrusions, political violence, and terrorism. To meet its training needs, Diplomatic Security relies primarily on its Diplomatic Security Training Center (DSTC), which is an office of Diplomatic Security's Training Directorate and is the primary provider of Diplomatic Security training. Diplomatic Security's training budget grew steadily from fiscal years 2006 to 2010--increasing from approximately $24 million in fiscal year 2006 to nearly $70 million in fiscal year 2010. In fiscal year 2010, DSTC conducted 342 sessions of its 61 courses and trained 4,739 students. Our prior work identified the challenges that Diplomatic Security experienced as a result …

Testimony issued by the Government Accountability Office with an abstract that begins "The Departments of Defense (DOD) and State (State) and the United States Agency for International Development (USAID) have collectively obligated billions of dollars for contracts and assistance to support U.S. efforts in Afghanistan. The work of GAO and others has documented shortcomings in DOD's contract management and oversight, and its training of the non-acquisition workforce. Addressing these challenges can help DOD meet warfighter needs in a timely and costconscious manner; mitigate the risks of fraud, waste, and abuse; and minimize the operational risks associated with contractors. This testimony addresses the extent to which (1) DOD's Contracting Officer's Representatives (COR) are prepared for their roles and responsibilities and provide adequate contract oversight in Afghanistan; (2) DOD, State, and USAID vet non-U.S. firms for links to terrorist and insurgent groups in Afghanistan; and (3) DOD has implemented GAO's past recommendations. The testimony is based on GAO's recently published reports and testimonies on operational contract support, including a June 2011 report on vetting of non-U.S. vendors in Afghanistan, as well as providing preliminary observations as a result of ongoing audit work in Afghanistan. GAO's work included analyses of a wide range …

Testimony issued by the Government Accountability Office with an abstract that begins "The National Museum of the American Indian Act of 1989 (NMAI Act), as amended in 1996, generally requires the Smithsonian Institution to inventory and identify the origins of its Indian and Native Hawaiian human remains and objects placed with them (funerary objects) and repatriate them to culturally affiliated Indian tribes upon request. According to the Smithsonian, two of its museums--the American Indian and the Natural History Museums--have items that are subject to the NMAI Act. The Native American Graves Protection and Repatriation Act (NAGPRA), enacted in 1990, includes similar requirements for federal agencies and museums. The National NAGPRA office, within the Department of the Interior's National Park Service, facilitates the governmentwide implementation of NAGPRA. Each act requires the establishment of a committee to monitor and review repatriation activities. GAO's testimony is based on its July 2010 report on NAGPRA implementation (GAO-10-768) and its May 2011 report on Smithsonian repatriation (GAO-11-515). The testimony focuses on the extent to which key federal agencies have complied with NAGPRA's requirements and the extent to which the Smithsonian has fulfilled its repatriation requirements."

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. Postal Service (USPS) recently reported that its financial results for the first half of this fiscal year--a net loss of $2.6 billion--are worse than projected. USPS expects continued financial challenges as mail volume continues to decline. Most notable is the decline of First-Class Mail (its most profitable mail) by over 25 billion pieces, or about 25 percent, over the past decade. GAO has reported on proposals to revise USPS pension and retiree health obligations, but such actions alone will not be sufficient to address the accelerating volume decline and changing use of the mail. This statement discusses (1) why it is important to restructure USPS's networks and (2) what actions are needed to facilitate additional progress. This statement is based primarily on past and ongoing GAO work."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of the Interior oversees oil and gas activities on leased federal lands and waters. Revenue generated from federal oil and gas production is one of the largest nontax sources of federal government funds, accounting for about $9 billion in fiscal year 2009. Since the April 2010 explosion on board the Deepwater Horizon, Interior has been in the midst of restructuring the bureaus that oversee oil and gas development. Specifically, Interior's Bureau of Land Management (BLM) oversees onshore federal oil and gas activities; the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE)--created in May 2010--oversees offshore oil and gas activities; and the newly established Office of Natural Resources Revenue (ONRR) is responsible for collecting royalties on oil and gas produced from both onshore and offshore federal leases. Prior to BOEMRE, the Minerals Management Service's (MMS) Offshore Energy and Minerals Management Office oversaw offshore oil and gas activities and revenue collection. In 2011, GAO identified Interior's management of oil and gas resources as a high risk issue. GAO's work in this area identified challenges in five areas: (1) reorganization, (2) balancing responsibilities, (3) human capital, (4) revenue …

Testimony issued by the Government Accountability Office with an abstract that begins ""

Testimony issued by the Government Accountability Office with an abstract that begins "The National Flood Insurance Program (NFIP) has been on GAO's high-risk list since 2006, when the program had to borrow from the U.S. Treasury to cover losses from the 2005 hurricanes. The outstanding debt is $17.8 billion as of June 2011. This sizeable debt, plus operational and management challenges that GAO has identified at the Federal Emergency Management Agency (FEMA), which administers NFIP, have combined to keep the program on the high-risk list. NFIP's need to borrow to cover claims in years of catastrophic flooding has raised concerns about the program's long-term financial solvency. This testimony (1) discusses ways to place NFIP on a sounder financial footing in light of public policy goals for federal involvement in natural catastrophe insurance and (2) highlights operational and management challenges at FEMA that affect the program. In preparing this statement, GAO relied on its past work on NFIP, including a June 2011 report on FEMA's management of NFIP, which focused on its planning, policies, processes, and systems. The management review included areas such as strategic and human capital planning, acquisition management, and intra-agency collaboration."

Other written product issued by the Government Accountability Office with an abstract that begins "This document is an E-supplement to GAO-10-428R. The recording and broadcast radio industries combined generated over $25 billion for the U.S. economy in 2008. These industries provide jobs for a range of skilled workers, including songwriters, producers, engineers and technicians, and radio announcers, among others. At the same time, recording studios and radio stations allow musicians, vocalists, and performers to share their talents with listeners across the nation. Through their work, the recording and broadcast radio industries contribute to the everyday American experience by creating and delivering music to people in their homes, cars, and workplaces. Beyond providing a popular form of entertainment, the recording and broadcast radio industries have helped music become a prominent feature of American culture. Music, like other forms of creative art, is protected by copyright law. Congress is considering legislation that would expand copyright protection for sound recordings. In particular, the proposed Performance Rights Act would eliminate an exemption that currently allows analog, nonsubscription AM and FM radio (broadcast radio stations) to broadcast a sound recording without acquiring permission from and paying a royalty to the copyright holder, performers, and musicians. …

Testimony issued by the Government Accountability Office with an abstract that begins "Economic development programs-- administered efficiently and effectively--can contribute to the well-being of the economy at the least cost to taxpayers. Such programs can encompass small business development and contracting. To encourage such contracting, Congress created programs--such as the Historically Underutilized Business Zone (HUBZone), service-disabled veteran-owned small business, and 8(a) Business Development programs--that give contracting preferences to some types of small businesses: in economically distressed communities; to those owned by service-disabled veterans; and to those with eligible socially and economically disadvantaged owners. This testimony addresses (1) potential duplication in economic development programs and (2) internal controls weaknesses in three small business programs. This testimony is based on related GAO work from 2008 to the present and updates it as noted. GAO examined programs at the Departments of Commerce, Housing and Urban Development, and Agriculture and the Small Business Administration (SBA) to assess program overlap, collaboration, and measures of effectiveness (GAO-11-477R). GAO also reviewed data from SBA and the Department of Veterans Affairs (VA) and conducted site visits. The reports identified opportunities to increase program efficiencies and made recommendations to improve internal controls and develop outcome-oriented measures."

Testimony issued by the Government Accountability Office with an abstract that begins "The Social Security Administration's (SSA) Disability Insurance (DI) program paid almost $123 billion in benefits in fiscal year 2010 to more than 10 million workers and dependents. The program has grown rapidly in recent years and is poised to grow further as the baby boom generation ages. GAO examined (1) what is known about the extent SSA makes work-related overpayments to, and recovers overpayments from, DI beneficiaries, and (2) SSA's policies and procedures for work continuing disability reviews (work CDRs) and potential DI program vulnerabilities that may contribute to overpayments to beneficiaries who have returned to work. To answer these questions, GAO reviewed work CDR policies and procedures, interviewed SSA headquarters and processing center officials, and visited 4 of 8 processing centers. We reviewed a random nongeneralizable sample of 60 CDR case files across those 4 centers to ensure we had a wide range of cases for our review (15 cases from each). These 4 centers received almost 80 percent of all work CDRs from SSA's Internal Revenue Service enforcement data match in fiscal year 2009."

Testimony issued by the Government Accountability Office with an abstract that begins "During GAO's recent work on services available for women veterans (GAO-10-287), several clinicians expressed concern about the physical safety of women housed in mental health programs at a Department of Veterans Affairs (VA) medical facility. GAO examined (1) the volume of sexual assault incidents reported in recent years and the extent to which these incidents are fully reported, (2) what factors may contribute to any observed underreporting, and (3) precautions VA facilities take to prevent sexual assaults and other safety incidents. This testimony is based on recent GAO work, "VA Health Care: Actions Needed To Prevent Sexual Assaults and Other Safety Incidents," (GAO-11-530) (June 2011). For that report, GAO reviewed relevant laws, VA policies, and sexual assault incident documentation from January 2007 through July 2010. In addition, GAO visited five judgmentally selected VA medical facilities that varied in size and complexity and spoke with the four Veterans Integrated Service Networks (VISN) that oversee them."

Testimony issued by the Government Accountability Office with an abstract that begins "Pervasive and sustained cyber attacks continue to pose a potentially devastating threat to the systems and operations of the federal government. In recent testimony, the Director of National Intelligence highlighted that many nation states, terrorist networks, and organized criminal groups have the capability to target elements of the United States information infrastructure for intelligence collection, intellectual property theft, or disruption. In July 2009, press accounts reported attacks on Web sites operated by major government agencies. The ever-increasing dependence of federal agencies on information systems to carry out essential, everyday operations can make them vulnerable to an array of cyber-based risks. Thus it is increasingly important that the federal government carry out a concerted effort to safeguard its systems and the information they contain. GAO is providing a statement describing (1) cyber threats to federal information systems and cyber-based critical infrastructures, (2) control deficiencies that make federal systems vulnerable to those threats, and (3) opportunities that exist for improving federal cybersecurity. In preparing this statement, GAO relied on its previously published work in this area."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses GAO's campus recruitment program. As an organization committed to having a high-performing, diverse workforce, GAO places great importance on attracting, hiring, training, and retaining employees with the skills needed to support GAO's mission to serve Congress and the American public. GAO has a multi-disciplinary workforce, with most staff having backgrounds in public policy, public administration, law, business, computer science, accounting, social sciences, or economics. While our current and future hiring will be shaped by today's constrained budget environment, over the past 5 years, on average, GAO has hired about 300 employees each year. The majority of these hires were for analyst and analyst-related positions at the entry level. GAO also has a robust paid student intern program each year. Many of these interns return as entry-level analysts. Having a strong campus recruitment program has played a key role in attracting highly qualified candidates for our permanent and intern positions and building our workforce. In response to congressional request, the remarks will focus on (1) the strong partnerships developed through our campus recruitment program, (2) recent actions GAO has taken to enhance the program and the …

Testimony issued by the Government Accountability Office with an abstract that begins "Taxes are necessary because they fund the services provided by government. Several years ago, the Internal Revenue Service (IRS) estimated that the gross tax gap--the difference between taxes owed and taxes paid on time--was $345 billion for 2001. In the face of large and growing deficits, it is important to seek out potential causes and solutions to the tax gap. Achieving high levels of voluntary compliance is made more challenging as the tax code expands. Tax expenditures--preferential provisions in the code such as exemptions, exclusions, deductions, credits, and deferral of tax liability--have expanded the tax code, more than doubling in number since 1974. GAO's statement focuses on four key areas: (1) how complexity adds to taxpayer burden and economic efficiency costs; (2) how complexities in reporting income contribute to the tax gap; (3) how tax expenditures add complexity and contribute to the tax gap; and (4) possible strategies for addressing the tax gap. The statement is based largely on GAO's previous work conducted on tax compliance issues affecting individual taxpayers from 2005 through 2011."

Testimony issued by the Government Accountability Office with an abstract that begins "Alleged terrorist plots against rail systems in major U.S. cities have increased focus on these systems. The Transportation Security Administration (TSA), within the Department of Homeland Security (DHS), is the primary federal agency responsible for rail security. This testimony addresses the following: (1) the extent that DHS has conducted comprehensive risk assessments for the transportation sector, including for rail, (2) technologies available to enhance rail security, (3) TSA's efforts regarding rail security training, and (4) rail stakeholders' satisfaction with security-related information TSA is providing. GAO's testimony is based on GAO reports issued from March 2009 through September 2010, selected updates conducted in May through June 2011, and preliminary results from ongoing work on information sharing. As part of the ongoing work, GAO surveyed the seven largest freight rail carriers (based on revenue) and interviewed security officials from three of these rail carriers selected for location, as well as TSA officials."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the challenges the Department of Defense (DOD) faces in institutionalizing operational contract support throughout the department. The institutionalization of operational contract support includes planning for the use of contractors, training of military personnel on the use of contractor support, accurately tracking contractor use, and establishing measures to ensure that contractors are accountable. For decades, DOD has relied on contractors to support contingency operations and has long considered them a part of the total force. For example, in its 2006 Quadrennial Defense Review the department reiterated that contractors were part of a total force that includes active and reserve military components, civilians and contractors. Additionally, in 2008 the Deputy Under Secretary of Defense for Logistics and Materiel Readiness testified that the structure of the U.S. military had been adapted to an environment in which contractors were an important part of the force. Further, an Army commission chaired by Dr. Jacques Gansler acknowledged that contractors were a significant part of the military's total force. While DOD joint guidance recognizes contractors as part of its total workforce, we have previously reported that DOD has not yet developed a …

Testimony issued by the Government Accountability Office with an abstract that begins "Agencies can use several different types of contracts to leverage the government's buying power for goods and services. These include interagency contracts--where one agency uses another's contract for its own needs--such as the General Services Administration (GSA) and the Department of Veterans Affairs multiple award schedule (MAS) contracts, multiagency contracts (MAC) for a wide range of goods and services, and governmentwide acquisition contracts (GWAC) for information technology. Agencies spent at least $60 billion in fiscal year 2008 through these contracts and similar single-agency enterprisewide contracts. GAO was asked to testify on the management and oversight of interagency contracts, and how the government can ensure that interagency contracting is efficient and transparent. GAO's testimony is based on its recent report, Contracting Strategies: Data and Oversight Problems Hamper Opportunities to Leverage Value of Interagency and Enterprisewide Contracts (GAO-10-367, April 2010). In that report, GAO made recommendations to the Office of Management and Budget (OMB) to strengthen policy, improve data, and better coordinate agencies' awards of MACs and enterprisewide contracts, and to GSA to improve MAS program pricing and management. Both agencies concurred with GAO's recommendations."

Testimony issued by the Government Accountability Office with an abstract that begins "Environmental satellites provide data used for weather forecasting, measuring variations in climate over time, and predicting space weather. Due to the continuing cost, schedule, and tri-agency management challenges of the National Polar-orbiting Operational Environmental Satellite System (NPOESS)--a key satellite acquisition managed by the National Oceanic and Atmospheric Association (NOAA), the Department of Defense (DOD), and the National Aeronautics and Space Administration (NASA)--the White House's Office of Science and Technology Policy (OSTP) decided in February 2010 to disband NPOESS and, instead, to have NOAA and DOD undertake separate acquisitions. GAO was asked to summarize its report being released today on plans for NOAA's and DOD's separate acquisitions and the key risks of the transition, as well as its recent work on federal efforts to establish long-term strategies for satellite-provided climate and space weather data."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses H.R. 1495, the Gold Reserve Transparency Act of 2011. This proposed legislation, which was recently referred to the Subcommittee on Domestic Monetary Policy and Technology, House Committee on Financial Services, provides for an audit of the gold reserves of the United States. Specifically, the bill calls for the Secretary of the Treasury to conduct and complete, not later than 6 months after passage of the act, a full assay, inventory, and audit of gold reserves of the United States at the place or places where such reserves are kept, together with an analysis of the sufficiency of the measures taken for the security of such reserves. The bill also calls for the Government Accountability Office (GAO) to review the results of such assay, inventory, audit, and analysis and, not later than 9 months after passage of the act, prepare and transmit to the Congress a report of GAO's findings together with the results of the work performed by the Secretary of the Treasury. This testimony focuses on (1) the reported holdings of gold reserves of the United States as of September 30, 2010; (2) past …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses air cargo screening. In 2008, about 7.3 billion pounds of cargo was transported on U.S. passenger flights--approximately 58 percent of which was transported domestically (domestic cargo) and 42 percent of which was transported on flights arriving in the United States from a foreign location (inbound cargo). The 2009 Christmas Day plot to detonate an explosive device during an international flight bound for Detroit provided a vivid reminder that terrorists continue to view passenger aircraft as attractive targets. According to the Transportation Security Administration (TSA), the security threat posed by terrorists introducing explosive devices in air cargo shipments is significant, and the risk and likelihood of such an attack directed at passenger aircraft is high. To help enhance the security of air cargo, the Implementing Recommendations of the 9/11 Commission Act of 2007 (9/11 Commission Act) mandated the Department of Homeland Security (DHS) to establish a system to physically screen 50 percent of cargo on passenger aircraft--including the domestic and inbound flights of foreign and U.S. passenger operations--by February 2009, and 100 percent of such cargo by August 2010. The 9/11 Commission Act defines screening for …