A letter report issued by the Government Accountability Office with an abstract that begins "The Federal Aviation Administration (FAA) is pursuing key operational improvements to implement the Next Generation Air Transportation System (NextGen) in the "midterm," which is 2013 through 2018. These improvements focus on establishing Performance Based Navigation (PBN) procedures at key airports, but benefits could be limited in the midterm. PBN uses satellite-based guidance to improve air-traffic control routes (known as "procedures"). These procedures can deliver benefits to airlines, such as fuel savings and increased efficiency, particularly in congested airspace. To deliver benefits more quickly, FAA made trade-offs in selecting sites and in the scope of proposed improvements. For example, FAA is not implementing procedures that will trigger lengthy environmental reviews. These trade-offs, with which airlines and other stakeholders generally agree, will likely limit benefits from these PBN initiatives early in the midterm. FAA has also made some progress in other key operational improvement areas, such as upgrading traffic management systems and revising standards to improve aircraft flow in congested airspace. However, FAA has not fully integrated implementation of all of its operational improvement efforts at airports. Because of the interdependency of improvements, their limited integration could also …

Testimony issued by the Government Accountability Office with an abstract that begins "The Social Security Administration's (SSA) procedures for handling and verifying death reports may allow for erroneous death information in the Death Master File (DMF) because SSA does not verify certain death reports or record others. SSA officials said, in keeping with its mission, the agency is primarily focused on ensuring that it does not make benefit payments to deceased Social Security program beneficiaries. As a result, it only verifies death reports received for individuals who are current program beneficiaries, and even then, only for those reports received from sources it considers to be less accurate. For example, SSA officials consider death reports from states that have pre-verified decedents' name and SSN to be highly accurate, so SSA does not verify that the subjects of these reports are actually deceased. It would, however, verify a report received from a source such as a post office. SSA verifies no death reports for individuals who are not beneficiaries, regardless of source. Because there are a number of death reports that SSA does not verify, the agency risks including incorrect death information in the DMF, such as including living individuals in the …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the preliminary observations of our ongoing investigation into the availability of counterfeit military-grade electronic parts on Internet purchasing platforms. Counterfeit parts--generally those whose sources knowingly misrepresent the parts' identity or pedigree--have the potential to seriously disrupt the Department of Defense (DOD) supply chain, delay missions, affect the integrity of weapon systems, and ultimately endanger the lives of our troops. Almost anything is at risk of being counterfeited, from fasteners used on aircraft to electronics used on missile guidance systems. There can be many sources of counterfeit parts as DOD draws from a large network of global suppliers. We recently reported that the increase in counterfeit electronic parts is one of several potential barriers DOD faces in addressing parts quality problems. This testimony summarizes preliminary observations from our ongoing investigation into the purchase and authenticity testing of selected, military-grade electronic parts that may enter the DOD supply chain."

A letter report issued by the Government Accountability Office with an abstract that begins "The Air Force did not evaluate its pilot program that moved funding for Space and Missile Systems Center (SMC) acquisition civilian personnel from its 1-year Operation and Maintenance (O&M) appropriation to its 2-year Research, Development, Test, and Evaluation (RDT&E) appropriation. In addition, the Air Force is considering using this pilot program to inform funding changes for other sections of its civilian workforce. GAO's prior work has identified the following practices for implementing and evaluating pilot programs: (1) develop objectives that link to the goals of the pilot; (2) develop processes for monitoring the pilot; (3) develop and implement a data collection and analysis plan for evaluating the pilot; and (4) communicate evaluation results to stakeholders. When implementing the pilot program, the Air Force did not follow these practices, and primarily focused on ensuring that administrative changes were made accurately such as ensuring employees received pay on time. For example, while a variety of potential goals were identified for the pilot program by the Air Force in various documents; they were not clear or consistent. As a result, anecdotal opinions on the advantages or disadvantages of the …

Correspondence issued by the Government Accountability Office with an abstract that begins "OMB developed the June 2010 memorandum in consultation with the CFO Council and created FSAB to assist in its oversight and review of agency financial system projects as announced in the June 2010 memorandum. In November 2010, OMB reported an overall budget savings of $1.6 billion as a result of decisions to postpone, cancel, or revise the scope of projects initially reviewed. In response to our survey, most agencies reported no change or that they did not know how the long-term project cost or completion time would change as a result of the actions, decisions, and recommendations related to the June 2010 memorandum and oversight process. However, several agencies reported that they narrowed the scope of their current project plans to focus on implementing more critical business needs first as a result of the June 2010 memorandum. They noted that this rescoping had the effect of delaying their efforts to improve accounting and reporting functions. Agencies also reported other challenges related to their financial system projects, including standardization of internal processes or data and funding delays. According to OMB staff, their plans for oversight of financial systems include …

A letter report issued by the Government Accountability Office with an abstract that begins "Interest has re-emerged in developing oil and gas in the nation's offshore areas, such as the North Aleutian Basin. Located on the outer continental shelf (OCS) where the Aleutian Islands meet the Alaskan mainland around Bristol Bay, the basin may contain sizable oil and gas deposits, although the area's environmental and cultural sensitivity has made oil and gas development in the area controversial. The Alaska OCS Region within the Department of the Interior's Minerals Management Service (MMS) oversees oil and gas development in this offshore area. GAO was asked to examine issues related to oil and gas development in the North Aleutian Basin. This report (1) describes the basin's estimated quantities of oil and gas and needed infrastructure; (2) identifies steps MMS is to take to meet federal requirements for oil and gas development; and (3) identifies challenges, if any, MMS faces in meeting these requirements in its Alaska OCS Region. GAO analyzed laws and documents and interviewed representatives from MMS, other federal agencies, state agencies, industry, and other stakeholders."

A letter report issued by the Government Accountability Office with an abstract that begins "All-terrain vehicles (ATV), which are off-road motorized vehicles, usually with four tires, a straddle seat for the operator, and handlebars for steering control, have become increasingly popular. However, ATV fatalities and injuries have increased over the last decade and are a matter of concern to the Consumer Product Safety Commission (Commission), which oversees ATV safety, and to others. Many ATV crashes involving children occur when they are riding adult-sized ATVs. Manufacturers and distributors have agreed to use their best efforts to prevent their dealers from selling adult-sized ATVs for use by children under the age of 16. The Consumer Product Safety Improvement Act requires GAO to report on (1) how ATVs are used and the advantages of their use and (2) the nature, extent, and costs of ATV crashes. GAO addressed these topics by reviewing ATV use and crash data and by discussing these issues with Commission staff, industry officials, user groups, and safety stakeholders."

A letter report issued by the Government Accountability Office with an abstract that begins "Designed to safeguard client assets, the Securities and Exchange Commission's(SEC) rule governing advisers' custody of client assets (custody rule) imposes various requirements and, in turn, costs on investment advisers. To protect investors, the rule requires advisers that have custody to (1) use qualified custodians (e.g., banks or broker-dealers) to hold client assets and (2) have a reasonable basis for believing that the custodian sends account statements directly to clients."

A letter report issued by the Government Accountability Office with an abstract that begins "While repayments, dividends, and interest from institutions participating in the Capital Purchase Program (CPP) have exceeded the program’s original investment disbursements, the number of missed payments has increased over the life of the program. As of January 31, 2012, the Department of the Treasury (Treasury) had received $211.5 billion from its CPP investments, exceeding the $204.9 billion it had disbursed. Of that amount, $16.7 billion remains outstanding, and most of these investments were concentrated in a relatively small number of institutions. In particular, as of January 31, 2012, 25 institutions accounted for $11.2 billion, or 67 percent, of outstanding investments. As of November 30, 2011, Treasury estimated that CPP would have a lifetime income of $13.5 billion after all institutions exited the program. As of January 31, 2012, 341 institutions had exited CPP, almost half by repaying CPP with funds from other federal programs. Institutions continue to exit CPP, but the number of institutions missing scheduled dividend or interest payments has increased. For example, as of November 30, 2011, the number of institutions that had missed their quarterly payments rose to 158, a marked increase from …

A letter report issued by the Government Accountability Office with an abstract that begins "Corrosion costs DOD over $23 billion annually, affects both equipment and facilities, and threatens personnel safety. DOD has taken steps to improve its corrosion prevention and control (CPC) efforts. These efforts include reorganizing the DOD-wide Corrosion Office and instituting Corrosion Executive positions in each of the military departments. In response to the Senate Appropriations Committee Report accompanying the fiscal year 2010 DOD appropriations bill, GAO evaluated to what extent (1) the Corrosion Executives are involved in preparing CPC project proposals for submission, (2) the Corrosion Office has created a process to review and select projects for funding, and (3) the military departments have validated the return on investment (ROI) for funded projects. GAO also reviewed the process the Corrosion Office uses to determine the CPC activities that it will fund. To carry out this study, GAO observed project selection panel meetings, interviewed corrosion officials, and reviewed documents and project proposals."

A letter report issued by the Government Accountability Office with an abstract that begins "The U.S. Department of the Treasury (Treasury) has increasingly used auctions to sell its Capital Purchase Program (CPP) investments. Initially, Treasury relied primarily on financial institutions redeeming their shares to wind down the program. However, in March 2012 Treasury began using auctions to exit CPP, and more institutions have exited the program through auctions than through any other method since then. As of May 2013, Treasury has held 16 auctions, selling 128 investments for total proceeds of about $2.4 billion. Each auction has involved the sale of an institution's outstanding investment, also known as the par amount. In most cases, the final sales price was below the par amount, and in total Treasury received 84 percent of par in the first 16 auctions. Through these auctions, repurchases, and other mechanisms, 556 institutions had exited CPP as of May 31, 2013, accounting for almost $223 billion in repayments and income and exceeding the original investment amount by about $18 billion."

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

Testimony issued by the Government Accountability Office with an abstract that begins "GAO found that from 2007 through 2009, the federal government's actions to stabilize the financial system provided significant funding support and other benefits to bank holding companies and their subsidiaries. The Board of Governors of the Federal Reserve System (Federal Reserve Board), the Department of the Treasury (Treasury), and FDIC introduced new programs with broad-based eligibility that provided funding support to eligible institutions, which included entities that were part of a bank holding company and others. Programs that provided the most significant support directly to bank holding companies or their subsidiaries included Treasury's capital investment programs, the Federal Reserve System's lending programs, and FDIC's guarantee programs. Some large institutions benefited from special assistance specific to their institution."

A letter report issued by the Government Accountability Office with an abstract that begins "Nonfederal government entities have varying roles and responsibilities under three TSA transportation worker credentialing programs we reviewed--the Transportation Worker Identification Credential program (TWIC) for maritime workers; the Hazardous Materials Endorsement program (HME) for truckers seeking a commercial drivers license endorsement to carry hazardous materials; and the Aviation Workers program for airport workers. TSA administers the TWIC credentialing process, with no role for maritime port facility operators outside of verifying issued credentials. Under HME, state licensing agencies issue endorsements based on whether TSA reports favorable background checking results. In contrast, under the Aviation Workers program, TSA and airports share responsibility for the vetting process for airport workers, with airports responsible for enrolling applicants, adjudicating criminal history results TSA provides, and issuing, and if necessary, revoking airport badges. Eleven of 17 selected maritime ports--including 4 of the top 10 largest ports--reported implementing additional credentialing requirements to those under TSA regulations, which generally included requirements for applicants to obtain and present local port identification--in addition to a TWIC--to gain unescorted access. At three of these ports, local agencies conducted additional criminal history checks. In addition, 4 of 6 selected …

Testimony issued by the Government Accountability Office with an abstract that begins "For more than a decade, GAO has reported on the challenges the Department of Energy's (DOE) National Nuclear Security Administration (NNSA) and the Office of Environmental Management (EM) have faced in meeting their projects' cost performance targets as developed in estimates and for ensuring that these cost estimates are based on sound assumptions. NNSA and EM are included on GAO's High-Risk List in recognition of the potential for vulnerabilities to fraud, waste, abuse, and mismanagement in contract administration and management of major projects. In January 2010, GAO reported on DOE's project cost-estimating practices and found that DOE did not have a cost-estimating policy and that cost-estimating guidance it had developed in the 1990s remained in effect but was out-of-date. GAO also found that DOE was taking steps to improve its cost-estimating practices, such as establishing the Office of Cost Analysis (OCA) in 2008 to improve cost-estimating capabilities and better ensure that project cost estimates are reliable by providing a new independent cost-estimating function. Both DOE's NNSA, a separately organized agency within the department, and EM adopted policies and practices to support cost estimating. GAO is conducting an ongoing …

A letter report issued by the Government Accountability Office with an abstract that begins "Aerospace medical experts GAO interviewed generally agreed that the Federal Aviation Administration's (FAA) medical standards are appropriate and supported FAA's recent data-driven efforts to improve its pilot medical-certification process. Each year, about 400,000 candidates apply for a pilot's medical certificate and complete a medical exam to determine whether they meet FAA's medical standards. From 2008 through 2012, on average, about 90 percent of applicants have been medically certified by an FAA-designated aviation medical examiner (AME) at the time of their medical exam or by a Regional Flight Surgeon. Of the remaining applicants, about 8.5 percent have received a special issuance medical certificate (special issuance) after providing additional medical information to FAA. Approximately 1.2 percent were not medically certified to fly. According to an industry association, the special issuance process adds time and costs to the application process, in part, because applicants might not understand what additional medical information they need to provide to FAA. Officials from FAA's medical certification division have said that technological problems with the aging computer systems that support the medical certification process have contributed to delays in the special issuance process. FAA's …

A letter report issued by the Government Accountability Office with an abstract that begins "The Federal Highway Administration (FHWA), within the U.S. Department of Transportation (DOT), administers the Emergency Relief Program to provide funds to states to repair roads damaged by natural disasters and catastrophic failures. In 2007, GAO reported that in recent years states' annual demand for emergency relief funds often exceeded the program's $100 million annual authorization from the Highway Trust Fund and required supplemental appropriations from general revenues to address a backlog of funding requests from states. GAO recommended that FHWA tighten eligibility standards and coordinate with states to withdraw unneeded emergency relief funds, among other actions. For this report, GAO reviewed (1) Emergency Relief Program funding trends since 2007, (2) key program changes made in response to GAO's 2007 report, and (3) the extent to which selected emergency relief projects were approved in compliance with program eligibility requirements. GAO reviewed projects in New York, Texas, and Washington state, states selected based on the amount and frequency of funding allocations since 2007, among other factors."

A letter report issued by the Government Accountability Office with an abstract that begins "Wildland fires can result from both natural and human causes. Human-caused wildland fires are of particular concern in Arizona--especially within 100 miles of the U.S.-Mexico border because this is a primary area of entry for illegal border crossers and GAO has previously reported that illegal border crossers have been suspected of igniting wildland fires. Over half of the land in the Arizona border region is managed by the federal government--primarily by the Department of Agriculture's Forest Service and four agencies within the Department of the Interior. These agencies collaborate with state, tribal, and local entities to respond to wildland fires. GAO was asked to examine, for the region, the (1) number, cause, size, and location of wildland fires from 2006 through 2010; (2) economic and environmental effects of human-caused wildland fires burning 10 or more acres; (3) extent to which illegal border crossers were the ignition source of wildland fires on federal lands; and (4) ways in which the presence of illegal border crossers has affected fire suppression activities. GAO reviewed interagency policies and procedures; analyzed wildland fire data; and interviewed federal, tribal, state, and local …

A letter report issued by the Government Accountability Office with an abstract that begins "In February 2009, the American Recovery and Reinvestment Act of 2009 (Recovery Act) initially provided states and the District of Columbia (the District) with an estimated $87 billion in increased Medicaid funds through December 2010, provided they met certain requirements. Funds were made available to states and the District through an increase in the Federal Medical Assistance Percentage (FMAP), the rate at which the federal government matches state expenditures for most Medicaid services. In March 2010, Congress passed the Patient Protection and Affordable Care Act (PPACA), which prohibits states from adopting certain changes to program eligibility in order to receive federal reimbursement, and in August 2010, extended increased FMAP rates through June 2011. GAO was asked to examine issues related to Medicaid funds under the Recovery Act. GAO examined (1) states' and the District's access to and use of increased FMAP funds, and (2) states' and the District's plans to sustain their Medicaid programs once these funds are no longer available. To do this work, GAO surveyed state Medicaid officials in the 50 states and the District in August 2009 and March 2010 about their program …

Correspondence issued by the Government Accountability Office with an abstract that begins "In summary, we found that (1) According to Education officials, most amendments consisted of minor adjustments to grant budgets, activities, and timelines, and some amendments involved significant changes to the grant award. Grantees have cited a variety of reasons for these amendments, such as timeline delays and difficulty finding qualified staff. (2) Education established a review process in which Education officials consider amendment requests on a case-by-case basis. In addition, the department distinguishes significant amendment requests from minor requests based on how the amendment would change project timelines, budgets, performance measures, and the implementation of other related projects. Education reportedly applied greater scrutiny to requests that involved significant changes to grantees' planned activities, often by requiring that grantees provide additional information or seek consultation from issuearea experts within the department. Rather than reject amendment requests, Education officials explained that they generally asked grantees to resubmit requests with more information."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Navy's Littoral Combat Ship (LCS) is envisioned as a vessel able to be reconfigured to meet three different mission areas: mine countermeasures, surface warfare, and antisubmarine warfare. Its design concept consists of two distinct parts--the ship itself (seaframe) and the mission package it carries and deploys. The Navy is procuring the first four ships in two different designs from shipbuilding teams led by Lockheed Martin and General Dynamics, which currently build their designs at Marinette Marine and Austal USA shipyards, respectively. Prior to September 2009, the Navy planned to continue building the class using both ship designs. This strategy changed following unsuccessful contract negotiations that same year for fiscal year 2010 funded seaframes--an outcome attributable to industry proposals priced significantly above Navy expectations. In September 2009, the Navy announced that in an effort to improve affordability, it was revising the LCS program's acquisition strategy and would select one seaframe design before awarding contracts for any additional ships. Following approval of this strategy in January 2010, the Navy issued a new solicitation--intended to lead to a downselect--for fiscal year 2010 seaframes. In support of this strategy, Congress authorized …

A letter report issued by the Government Accountability Office with an abstract that begins "The James Webb Space Telescope (JWST) project is generally executing to its September 2011 revised cost and schedule baseline; however, several challenges remain that could affect continued progress. The National Aeronautics and Space Administration (NASA) has requested funding that is in line with the rebaseline and the project is maintaining 14 months of schedule reserve prior to its launch date. Performance data from the prime contractor indicate that generally work is being accomplished on schedule and at the cost expected; however, monthly performance declined in fiscal year 2013. Project officials have maintained and enhanced project oversight by, for example, continuing quarterly NASA and contractor management meetings and instituting a tool to update cost estimates for internal efforts. Program officials, however, are not planning to perform an updated integrated cost/schedule risk analysis, as GAO recommended in 2012, stating that the project performs monthly integrated risk analyses they believe are adequate. Updating the more comprehensive analysis with a more refined schedule and current risks, however, would provide management and stakeholders with better information to gauge progress."

A letter report issued by the Government Accountability Office with an abstract that begins "The Internal Revenue Service (IRS) continued to make progress in addressing information security control weaknesses and improving its internal control over financial reporting; however, weaknesses remain that could affect the confidentiality, integrity, and availability of financial and sensitive taxpayer data. During fiscal year 2013, IRS management devoted attention and resources to addressing information security controls, and resolved a number of the information security control deficiencies that were previously reported by GAO. However, significant risks remained. Specifically, the agency had not always (1) installed appropriate patches on all databases and servers to protect against known vulnerabilities, (2) sufficiently monitored database and mainframe controls, or (3) appropriately restricted access to its mainframe environment. In addition, IRS had allowed individuals to make changes to mainframe data processing without requiring them to follow established change control procedures to ensure changes were authorized, and did not configure all applications to use strong encryption for authentication, increasing the potential for unauthorized access."

A letter report issued by the Government Accountability Office with an abstract that begins "Vibrio vulnificus (V. vulnificus) is a bacterium that occurs naturally in the Gulf of Mexico. On average, since 2000, about 32 individuals a year in the United States have become ill from eating raw or undercooked oysters containing V. vulnificus, and about half have died. The Food and Drug Administration (FDA) is responsible for ensuring oyster safety and works with the Interstate Shellfish Sanitation Conference (ISSC), which includes representatives from FDA, states, and the shellfish industry to establish guidelines for sanitary control of the shellfish industry. GAO was asked to determine the extent to which FDA and the ISSC agree on the V. vulnificus illness reduction goal, use a credible approach to measure progress toward the illness rate reduction goal, have evaluated the effectiveness of their actions in reducing V. vulnificus illnesses, and whether the Gulf Coast oyster industry has adequate capacity to postharvest process oysters harvested April through October. GAO reviewed data and documents and interviewed officials in FDA, the ISSC, Florida, Louisiana, and Texas."