Abstracts of Reports and Testimony: Fiscal Year 2000 (01-MAR-01, 
GAO-01-558SP).							 
								 
GAO published a list of its reports and testimonies issued in	 
fiscal year 2000.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-01-558SP					        
    ACCNO:   A00724						        
    TITLE:   Abstracts of Reports and Testimony: Fiscal Year 2000     
     DATE:   03/01/2001 
  SUBJECT:   Government publications				 
	     Bibliographies					 

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GAO-01-558SP

A

Information Systems and Technology Services

March 2001 Abstracts of Reports and Testimony: Fiscal Year 2000

Introduction The U. S. General Accounting Office (GAO) is an independent,
nonpartisan agency in the legislative branch. GAO provides Congress with the
best information available to help members make informed oversight, policy,
and funding decisions. GAO meets Congress' information needs by (1)

evaluating how government programs and policies are working, (2) auditing
agency operations to determine whether federal funds are being spent
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improper activities, and (4) issuing legal decisions and opinions. Most GAO
work is done at the request of committees or members, but some reports are
self- initiated or done in response to congressional mandates included in
public laws or committee reports.

GAO's annual index is a two- volume set. The first volume- Abstracts of
Reports and Testimony: Fiscal Year 2000- contains summaries of 878 publicly
released reports and testimony listed alphabetically by division or staff
office. Classified reports, correspondence, and legal publications are not
included. The second volume- Indexes for Reports and Testimony: Fiscal Year
2000- contains several indexes to help you locate reports and testimony by
issue category, subject matter, title, or GAO witness. Instructions on how
to use the two volumes are found below. The annual

index is also available in electronic format on GAO's website (www. gao.
gov).

Information About GAO Report Numbers The numbers on GAO reports issued in
fiscal year 2000 contain the following information: the division or staff
office acronym, the last two digits of the fiscal year, and the sequentially
assigned report number, e. g., GAO/ GGD- 00- 1. Testimony numbers include a
“T” in front of the division or staff office acronym, e. g.,
GAO/ T- GGD- 00- 1.

Instructions on how to The abstract volume contains summaries of reports and
testimony issued Use the Annual Index

between Oct. 1, 1999, and Sept. 30, 2000. These summaries, which originally
appeared in the Month in Review, are arranged sequentially by report number
for each GAO division and staff office. Each summary is accompanied by the
document title, date, and length (number of pages).

In fiscal year 2000, five program and technical divisions and several
offices issued reports. Some reports were issued jointly by two or more
divisions; in those cases, the report number includes the acronym for each
division, e. g., GAO/ GGD/ AIMD- 00- 1.

The following is a list of division and office acronyms and names:

Acronym Division/ Office Name

AIMD Accounting and Information Management Division GGD General Government
Division HEHS Health, Education and Human Services Division NSIAD National
Security and International Affairs Division OCE Office of Chief Economist
OCG Office of the Comptroller General OGC Office of the General Counsel OIMC
Office of Information Management and Communications OPA Office of Public
Affairs OSI Office of Special Investigations RCED Resources, Community and
Economic Development Division

The index volume contains four indexes to lead you to the report or
testimony abstract you are looking for.

(1) The category index groups items by the broad subject headings used in
the Month in Review. On the basis of subject matter, reports and testimony
are grouped under one of the following 26 categories:

? Agriculture and Food

? Budget and Spending

? Business, Industry, and Consumers

? Civil Rights

? Economic Development

? Education

? Employment

? Energy

? Environmental Protection

? Financial Institutions

? Financial Management

? Government Operations

? Health

? Housing

? Income Security

? nformation Management

? International Affairs

? Justice and Law Enforcement

? National Defense

? Natural Resources

? Science, Space, and Technology

? Social Services

? Special Publications

? Tax Policy and Administration

? Transportation

? Veterans Affairs Although there may be instances in which reports or
testimony could fit under two or more categories, GAO has tried to place
them under the most obvious category.

The subject index uses generic subject headings, including terms from GAO's
thesaurus, as well as geographical listings, the names of weapon systems,
and funds. Reports and testimony are listed alphabetically by title,
followed by the document number. The title index list all reports and
testimony alphabetically in natural word order, along with the date of the
publication and the document number. The witness index consists of an
alphabetical list of GAO officials who have testified before congressional
committees and the document number.

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Subject Index

AIMD that overcoming computer- based (3) the agencies' plans to ensure that
threats to the country's critical their systems comply with the act's

AIMD- 00- 1, Oct. 1, 1999 (51 pages). infrastructures requires new approach
requirements. Critical Infrastructure Protection:

involving coordination and Comprehensive Strategy Can Draw on cooperation
across federal agencies

AIMD- 00- 4, Oct. 4, 1999 (20 pages). Year 2000 Experiences.

and among public and private sector Financial Management Service: groups and
other nations. Significant Weaknesses in Computer The nation's computer-
based critical Controls.

infrastructures are at increasing risk of AIMD- 00- 3, Oct. 1, 1999 (29
pages). severe disruption. Interconnectivity Financial Management: Federal
The pervasive weaknesses GAO increases the risk that problems Financial
Management Improvement identified in computer controls at the

affecting one system will also affect Act Results for Fiscal Year 1998.
Treasury Department's Financial

other interconnected systems. Management Service (FMS) during its

Although these problems could be The historic inability of many federal
fiscal year 1998 audit undermine FMS' caused by natural disasters, such as
agencies to accurately record and ability to identify, deter, and respond to
earthquakes, and system- inducted report financial management data on
computer control weaknesses in a

problems, such as the Year 2000 both a year- end and an ongoing basis

timely manner. GAO found that FMS conversion problem, government for
decision- making and oversight has corrected the risks associated with
officials are increasingly concerned purposes continues to be a serious

only 24 of 72 computer control about attacks from individuals and problem.
To improve the

shortcomings cited in a GAO report groups with malicious intentions, such
accountability and credibility of the issued in July 1998. During the fiscal
as terrorists and nations engaged in federal government and to restore year
1998 audit, GAO found new information warfare. Critical systems public
confidence, Congress passed

general computer control weaknesses could be disrupted, sensitive data the
Federal Financial Management in entitywide security planning and could be
read or copied, and data or

Improvement Act of 1996, which management, access controls, systems
processes could be tampered with. A

requires auditors for each of the 24 software, and application software
significant concern is that terrorists or major federal agencies named in
the development and change controls. hostile foreign states could target
Chief Financial Officers Act (CFO) to Because of the weaknesses GAO critical
systems, such as those

indicate in their annual financial identified, including the lack of an
supporting energy distribution, statements whether the agencies' effective
entitywide security planning telecommunications, and financial financial
management systems comply and management program, billions of services, in
order to harm the public substantially with the following three

dollars of payments and collections welfare. The need to strengthen
requirements: federal financial are at significant risk of loss or fraud,
computer security in both government management systems requirements,

vast amounts of sensitive data are and the private sector has been
applicable federal accounting vulnerable to inappropriate disclosure,
recognized over the past several years standards, and the U. S. Government
and critical computer operations could by many groups, including GAO, and

Standard General Ledger at the suffer disruptions.

several steps have been taken to transaction level. GAO is required to
address the problem. During 1996 and report annually on the act's

AIMD- 00- 5, Oct. 4, 1999 (29 pages). 1997, federal information security was

implementation. This report discusses Information Systems: The Status of
addressed by the President's

(1) the compliance of CFO agencies' Computer Security at the Department
Commission on Critical Infrastructure financial systems with the act's of
Veterans Affairs. Protection, which had been created to requirements, (2)
whether CFO investigate the country's vulnerability agencies' financial
statements have GAO reported last year that computer to both
“cyber” and physical threats. A

been prepared in accordance with controls at the Department of Veterans 1998
Presidential directive recognizes

applicable accounting standards, and Affairs (VA) placed critical
operations,

such as financial management, health planning guide and it has made about
the magnitude, trends, and types care delivery, and benefit payments, at
progress toward completing Year 2000

of payment errors being made within risk of misuse and disruption. (See
business continuity plans. DEA had their programs. GAO/ AIMD- 98- 175, Sept.
1998.) Since planned to complete development of then, VA has tried to
correct some of its business continuity plans by early

AIMD- 00- 11, Oct. 22, 1999 (65 pages). the weaknesses GAO cited and has
September 1999 and to test them by Year 2000 Computing Challenge: FBI
independently begun to improve its the end of November 1999. DEA's

Needs to Complete Business computer security management development of its
plans is about four Continuity Plans. programs. However, progress in

months behind GAO's recommended correcting the shortcomings GAO date, and
its testing milestone is about As of August 1999, the FBI had identified has
been inconsistent across two months behind GAO's

renovated, tested, and certified as Year VA organizations, and efforts to
recommended date. Despite the 2000 compliant all but one of its 43
strengthen local computer security progress so far, DEA is running late
mission- critical systems. The FBI had management programs were not part and
still has many important tasks to

developed system- level contingency of a coordinated, departmentwide
complete. Its plans for completing plans for all but two of them. Also, the
effort. In connection with VA's fiscal these tasks leave little time to
address

FBI had made some progress in its year 1998 consolidated financial any
schedule slippage. Year 2000 business continuity statement audit, GAO and
VA's Office planning, but this important effort is of Inspector General
continued to find

AIMD- 00- 10, Oct. 29, 1999 (69 pages). running late. Moreover, the FBI
lacks serious problems with the agency's

Financial Management: Increased many of the management controls and control
and oversight of access to its

Attention Needed to Prevent Billions processes needed to effectively guide

information systems. In September in Improper Payments.

its continuity planning effort in the 1998, GAO also reported that the short
time remaining before the Year primary reason for VA's continuing The
federal government spends 2000 deadline. By not using the

information system control problems billions of dollars each year on grants,

management rigor and discipline was that VA lacked a comprehensive transfer
payments, and the specified in GAO's Year 2000 business computer security
planning and

procurement of goods and services. In continuity planning guide, the FBI
will management program. A VA working their fiscal year 1998 financial be
unable to ensure that it (1) properly group has developed a plan to improve
statements, nine federal agencies focuses its planning effort on the
information system security

reported improper payments totaling agency's most critical operations; (2)
throughout the agency and establish a

$19. 1 billion. GAO found that agencies chooses the best strategies to
protect departmentwide computer security are not performing comprehensive
these operations; (3) has enough planning and management program. quality
control reviews for certain resources and staff to implement Because this
multiyear plan is at an programs to determine the propriety of continuity
plans; and (4) can efficiently early stage of development, it is too

program spending. As a result, the full and effectively invoke its
continuity

soon to assess its effectiveness. As VA extent of the problem-- and possible
plans, if necessary. GAO recommends implements its computer security
solutions to it-- is unknown. GAO that the Justice Department clarify its
management program, establishing believes that inadequate internal
expectations for Year 2000 business

detailed guidance can help ensure that control and program design issues are
continuity planning for all of its

the program's requirements are the primary causes of improper bureaus and
that the FBI establish and implemented fully and consistently payments for
many federal programs. implement (1) a plan for developing throughout the
agency. Economic and demographic

and testing business continuity plans projections suggest that federal and
(2) effective controls and

AIMD- 00- 8, Oct. 14, 1999 (59 pages). outlays in certain programs will rise
structure for managing Year 2000

Year 2000 Computing Challenge: DEA significantly. With billions of dollars
at business continuity planning.

Has Developed Plans and Established risk, agencies will need to continually
Controls for Business Continuity and closely safeguard those resources

AIMD- 00- 12, Oct. 18, 1999 (53 pages). Planning. entrusted to them and make
it a Defense Computers: DOD Y2K priority to reduce fraud, waste, and
Functional End- to- End Testing The Drug Enforcement Administration abuse. A
first step for some agencies

Progress and Test Event Management. (DEA) has managed its business

will be to develop ways to identify, continuity planning efforts in

estimate, and report the nature and the Complete and thorough Year 2000
accordance with the structure and

extent of improper payments annually. testing is essential to ensure that
new process recommended by GAO's

Without this basic knowledge, or modified systems process dates business
continuity and contingency agencies cannot be fully informed correctly and
will not jeopardize an

organization's core business agencies and DOD and questioned

Agency (DEA) reported that its agents operations after the millennium. This

DOD about how it budgets for seized more than 275,000 kilograms of

is especially true for the Defense inflation. illegal drugs. Each of the
four DEA Department (DOD), which relies on a laboratories and division
offices GAO complex and broad array of AIMD- 00- 15, Oct. 29, 1999 (18
pages). visited had physical safeguards in

interconnected computer systems- Internal Controls: Oversight of place that,
if used effectively, could including weapons, command and

Longshore Special Fund Needs help control access to and use of drug control,
satellite, inventory Improvement.

and weapon evidence. However, GAO management, transportation found instances
of inadequate management, health, financial, The Special Fund established by
packaging of drug and weapon personnel, and payment systems-- to Longshore
and Harbor Workers' evidence and overcrowded drug vaults carry out its core
business functions Compensation encourages employers

that could increase the risk of theft, and military operations. This report
to hire disabled maritime workers by misuse, and loss. Moreover, GAO reviews
the effectiveness of DOD's

limiting an employer's liability should a found that some requirements, such
as efforts to perform Year 2000 end- toend disabled worker sustain a second

chemists' returning drug evidence to a tests for its major business

injury. The Fund, which is financed vault within five working days after
functions, including health, primarily by annual assessments levied analysis
and laboratories destroying communications, personnel, and by the Labor
Department on selfinsured drugs within 90 days of receiving logistics. For
each functional area, employers and insurance authorization, were not always
met. GAO analyzes reported information on carriers, is audited annually.
However, GAO also found weaknesses in DEA's the status and progress of all
test

the audited annual financial accountability over drug and weapon events. GAO
also reviews a critical test

statements do not address the evidence, including (1) incomplete and event
in each functional area to potential unfunded liability faced by missing
documentation, such as chain determine whether it was planned and this
program, which has been of custody documentation; (2) managed in accordance
with GAO's estimated to be as high as $2.5 billion. inaccurate recordkeeping
of drug and Year 2000 testing guide. This report addresses (1) the weapon
evidence; and (3) improper feasibility of actuarially calculating the
accounting for drug weights, including

AIMD- 00- 14, Oct. 1, 1999 (11 pages). unfunded liability of the Special
Fund, unverified and unexplained weight Budget Issues: Budgeting for
Inflation (2) whether controls exist to prevent differences in drug
exhibits. DEA's

in Civilian Agencies. inappropriate claims from being internal inspection
teams also referred to the Special Fund, (3) reported instances of missing

In recent years, the Defense whether recipient data are matched

documentation and improper Department (DOD) has seen increases against other
agencies' databases to recordkeeping in their reports in purchasing power--
called inflation reduce the risk of payments being

covering inspections done from 1996 dividends-- that occur when inflation is
made to ineligible recipients, (4)

through 1998. In commenting on this lower than had been projected at the

whether there are equitable report, DEA officials said that the time funds
were requested. DOD has distributions of assessments among problems GAO
cited do not appear to used those savings to fund a larger the insurance
carriers/ self- insured

be systemic in nature and affected program without requesting or employers
as compared to their claim areas in which redundant controls are receiving
additional resources. In light levels, and (5) the status of changes to in
place to ensure the integrity of of the military's experience, the

the Longshore computer systems. evidence at all times. GAO disagrees

question of whether civilian agencies with DEA and identifies several even
should also identify the effect of lower

AIMD- 00- 17, Nov. 30, 1999 (44 pages). more severe issues plaguing all, or
inflation on their funding requirements

Seized Drugs and Weapons: DEA almost all, of the locations GAO visited has
been raised. This report describes

Needs to Improve Certain Physical and for which redundant controls did how
inflation is now treated in Safeguards and Strengthen not exist to
compensate for the budgeting for DOD and civilian

Accountability. deficiencies. discretionary nonpay activities. GAO developed
case studies for three As part of its asset forfeiture AIMD- 00- 18, Dec.
16, 1999 (54 pages). civilian agencies: the Bureau of Land

operations, the Justice Department Seized Drugs and Firearms: FBI Needs
Management, the Office of often seizes and stores evidence- to Improve
Certain Physical Environmental Management in the

including drugs and weapons-- that is Safeguards and Strengthen Department
of Energy, and NASA. later used by federal prosecutors. In Accountability.
GAO also reviewed its earlier work on fiscal year 1998, the Justice

inflation changes in both civilian Department's Drug Enforcement

During the last decade, GAO has weight of the item, including official
accounting records differed periodically reported on government packaging.

from MOCAS disbursing system operations at “high risk” for
waste, records; (2) the types of differences fraud, abuse, and
mismanagement.

AIMD- 00- 19, Dec. 17, 1999 (16 pages). between the disbursing and One of
these operations is the asset District of Columbia: The District Has

accounting systems and the causes for forfeiture program run by the Justice

Not Adequately Planned for and the differences; and (3) the potential
Department. Seized items typically Managed Its New Personnel and effect any
identified deficiencies may remain in an agency's custody until

Payroll System. have on the Defense Department's

used as evidence by federal planned improvements to the contract
prosecutors. This report focuses on

The District of Columbia is acquiring payment system. the FBI's controls
over seized drugs

an automated personnel and payroll and firearms. Each of the four FBI field

system, which is based on commercial, AIMD- 00- 21, Nov. 15, 1999 (59
pages). offices GAO reviewed had established off- the- shelf software, to
improve the

Defense Computers: U. S. physical safeguards in accordance quality of its
personnel and payroll Transportation Command's with key FBI policy
directives. systems, modernize its personnel and

Management of Y2K Operational However, overcrowding and

payroll business processes, and Testi ng. inadequate packaging of drug
evidence

replace an aging legacy system. In and improper maintenance of the night
earlier testimony before Congress, Complete and thorough Year 2000 endto-
depository in the drug vault at one of GAO noted that information on the end
testing is essential to ensuring the FBI field offices GAO visited
District's 40, 000 employees has long that new or modified systems used to
increased the risk of theft, misuse, and been error- prone and inconsistent.

collectively support a core business loss of evidence. Also, inadequate (See
GAO/ T- AIMD- 95- 170, June 1995.) function or mission operation will not
ventilation in the drug vault at one

The Comprehensive Automated jeopardize an organization's ability to field
office could potentially harm the Personnel and Payroll System which is
deliver products and services on or health and safety of evidence control
estimated to cost about $13 million to after January 1, 2000. This is
especially workers. The FBI's ability to account develop, was expected to be
up and true for the Defense Department,

for drug and firearms evidence was running by the end of 1999. This report
which relies on a complex array of hampered at the field offices GAO
assesses whether the District has interconnected computer systems --
reviewed by incomplete and missing effectively planned and managed the
including weapons, command and information on chain of custody system.

control, satellite, inventory documents, the failure to promptly management,
transportation issue and reconcile reports that are

AIMD- 00- 20, Mar. 7, 2000 (29 pages). management, health care, financial,
used to verify the location of evidence, Financial Management: Differences
in personnel, and payments systems -- to and poor documentation of bulk drug
Army and Air Force Disbursing and

carry out its operations. This report (1) seizures. Notwithstanding these

Accounting Records. assesses the U. S. Transportation problems, FBI
personnel were able to Command's management of its end- toend

locate each item that GAO chose for The reliability of contract disbursing
test of its ability to plan and testing at the field offices; for those data
is critical to the ability of the execute joint major theater war items not
in storage, they provided Army and the Air Force to effectively

deployment operations and (2) documentation supporting the current account
and control for billions of determines what the results of this test
location or status of the item. GAO dollars in budget authority and prepare
show with respect to operational risks identified several instances in which
reliable financial information on the and readiness. evidence control
personnel or FBI results of its operations. The Defense agents entered
evidence into the FBI's

Finance and Accounting Service in

AIMD- 00- 21.2.3, Oct. 1, 1999 (56 Automated Case Support System late
Columbus, Ohio, makes tens of billions

pages). Human Resources and Payroll without the required explanatory of
dollars in contract payments each Systems Requirements: Checklist for
memoranda. While reviewing selected year for the Army, the Air Force, and
Reviewing Systems Under the Federal drug items in storage at the four field

other military organizations. The Financial Management Improvement offices,
GAO noted many Center relies on the Mechanization of Act of 1996.
discrepancies between the actual Contract Administration Services weight of
drug items observed during (MOCAS) to process military contract This
checklist reflects the Joint GAO's testing and the weight of these payment
transactions. This report Financial Management Improvement items recorded on
attached evidence discusses (1) if, and to what extent, Program's revised
“Human Resources labels, which should reflect the current contract
payment transactions and Payroll Systems Requirements” recorded in the
Army and Air Force (Apr. 1999) to help (1) agencies in

implementing their human resources travel system requirements to help (1)
The Treasury Department's Financial and payroll systems and (2) agencies
implement and monitor their Management Service (FMS) has management and
auditors in reviewing travel systems and (2) management established
effective Year 2000 test

their human resources and payroll auditors review their travel systems to
management controls for its six most systems to determine if they determine
if they are complying with mission- critical systems. Together,

substantially comply with the Federal JFMIP's guidelines. these controls
provide the Financial Management Improvement

infrastructure needed for planning, Act. This checklist is not required to
be AIMD- 00- 23, Nov. 2, 1999 (207 pages). executing, and reporting Year
2000 test used in assessing the human resources Budget Surpluses:
Experiences of activities, including systems and payroll systems. It is
provided as a

Other Nations and Implications for the acceptance and end- to- end testing.
In tool for use by experienced staff. United States. line with GAO's Year
2000 test guide, FMS hired an independent contractor AIMD- 00- 21. 2.6, Nov.
1, 1999 (65 In fiscal year 1998, the United States

to certify that testing was complete pages). Direct Loan System had a budget
surplus for the first time and thorough. FMS has also Requirements:
Checklist for Reviewing in nearly 30 years. Although balancing

established effective management Systems Under the Federal Financial

the federal budget has been the clear controls in performing its portion of
Management Improvement Act of and generally accepted fiscal goal for
selected Year 2000 end- to- end tests. As

1996. many years, there is no consensus yet

of October 1, 1999, FMS reported that on the appropriate fiscal policy
during it had implemented two of the four The Federal Financial Management a
period of budget surpluses. Should

systems that did not meet the March 31 Improvement Act of 1996 required that
the surpluses be maintained? How

deadline set by the Office of agencies implement and maintain should they be
used? This report Management and Budget for financial management systems
that examines the experiences of six implementation. For the remaining
substantially comply with federal countries that have recently two, FMS
reported that it has (1) financial management systems experienced budget
surpluses- Australia, renovated and tested both, (2)

requirements. These requirements are Canada, New Zealand,

implemented both at two of five sites, spelled out by the Joint Financial

Norway, Sweden, and the United and (3) plans to complete Management
Improvement Program Kingdom. GAO discusses (1) how they

implementation in early November (JFMIP) and the Office of Management
achieved budget surpluses and what 1999. Also, FMS has prepared and and
Budget. GAO's checklist, which their fiscal policies were during plans to
test contingency plans for reflects JFMIP's revised requirements

periods of surplus, (2) how they these late systems as well as its other for
direct loan systems, is designed to addressed long- term budgetary mission-
critical systems. assist (1) agencies in implementing

pressures, and (3) how they adapted and monitoring their direct loan their
budget process during a period of AIMD- 00- 30, Nov. 15, 1999 (68 pages).
systems and (2) management and

surplus. GAO also identifies the Defense Computers: U. S. Space auditors in
reviewing their direct loan lessons that these nations learned that
Command's Management of Its Year systems to determine if they are might be
useful for the United States.

2000 Operational Testing. complying with the act. GAO concludes that
sustaining a

surplus over time to address the As part of GAO's review of the

AIMD- 00- 21. 2.8, Dec. 1, 1999 (60 United States' own long- term needs

military's management of various Year pages). Travel System Requirements:
will require a framework that provides 2000 end- to- end testing efforts,
this Checklist for Reviewing Systems transparency through the articulation
report (1) assesses the U. S. Space Under the Federal Financial and defense
of fiscal policy goals;

Command's management of its end- toend Management Improvement Act of
provides accountability for making testing of space control systems 1996.

progress toward those goals; and that are essential to major theater war

balances the need to meet selected and (2) discusses the test results with
Federal agencies must implement and

pent- up demands with the need to respect to operational risks and maintain
financial management address long- term budget pressures. readiness. systems
that substantially comply with the federal financial management AIMD- 00-
24, Oct. 29, 1999 (65 pages). AIMD- 00- 33, Nov. 1, 1999 (48 pages). systems
requirements that are spelled Year 2000 Computing Challenge:

Information Security Risk Assessment: out by the Joint Financial Management
Financial Management Service Has Practices of Leading Organizations.
Improvement Program (JFMIP) and

Established Effective Year 2000 the Office of Management and Budget. Testing
Controls.

Managing the risks stemming from the This checklist reflects JFMIP's revised
government's growing reliance on

information technology is a continuing Chinese nationals, while the other
The 2000 decennial census-- the largest challenge. This guide is intended to
employed one Canadian national. FAA peacetime mobilization in the nation's
help federal managers implement an did not perform background searches-
history-- will significantly influence the ongoing information security risk
investigations or checks-- on all of its

lives of every U. S. resident. In assessment. GAO provides examples,
contractor employees, as required by preparation, the Census Bureau will be
or case studies, of practical risk its policy. This situation increased the
staffing 1. 35 million temporary field

assessment procedures that have been risk that inappropriate persons may
positions to capture 1. 5 billion pages of successfully adopted by four have
gained access to FAA's facilities, data from about 119 million organizations
-- a multinational oil information, or resources. As a result,

households. To meet this massive company, a financial services firm, a the
air traffic control system may be challenge, the Bureau plans to rely
regulatory organization, and a more vulnerable to intrusion and heavily on
information technology, computer hardware and software malicious attacks.
GAO recommends including its new Data Capture System company -- known for
implementing that FAA improve its security controls, 2000. The system will
operate at four good risk assessment practices. More identify the risk of
malicious attacks data capture centers to check in, importantly, GAO
identifies, on the on its critical systems, and mitigate digitally image,
and optically read the basis of these case studies, factors that

that risk. FAA agrees with GAO's data handwritten onto census forms are
important to the success of any

recommendations and is moving to and covert these data into files that risk
assessment program, regardless of implement them.

will be sent to Bureau headquarters for the specific methodology used. The
tabulation and analysis. This report information in this guide supplements

AIMD- 00- 57, Feb. 18, 2000 (217 discusses the state and quality of the an
earlier GAO document (GAO/ AIMD98- pages). Accrual Budgeting: system as well
as the risks that the

68, May 1999) that outlined five Experiences of Other Nations and

Bureau faces in successfully major elements of risk management Implications
for the United States.

completing the system. and 16 related information security practices that
GAO identified during a Accrual and cash- based costs are

AIMD- 00- 66, Mar. 15, 2000 (53 pages). study of organizations with superior
similar for many government activities.

Medicare Financial Management: information security programs.

However, accrual measurement would Further Improvements Needed to move
budget recognition forward for Establish Adequate Financial Control

AIMD- 00- 55, Dec. 23, 1999 (38 pages). the costs of some programs, such as

and Accountability. Computer Security: FAA Needs to insurance and pensions,
which involve Improve Controls Over Use of Foreign

future cash flows. The opposite would Although the Health Care Financing
Nationals to Remediate and Review

be true for the purchase of capital Administration (HCFA) is supposed to
Software. assets: accrual measurement would ensure that the billions of
dollars spent provide a later recognition of those on Medicare each year are
managed in The nationwide demand for skilled costs. Other nations have moved

a fiscally responsible way, it has yet to programmers to cope with the Year
toward greater use of accrual concepts establish adequate accountability and
2000 computing problem has raised in budget reporting. This report control
over the program's financial questions about whether key discusses what
lessons the early

operations. HCFA's financial organizations, such as the Federal experiences
of six countries-- Australia,

management activities-- from Aviation Administration (FAA), have Canada,
Iceland, the Netherlands, New evaluation and follow- ups on audit resorted
to using foreign nationals for Zealand, and the United Kingdom- might
findings to contractor monitoring and Y2K remediation. Of 153 mission offer
the United States. Despite

financial reporting-- fall short in critical FAA systems that were obvious
political, cultural, and addressing weaknesses repeatedly remediated, 15 had
foreign

economic differences between the cited in audits and other reviews.
involvement, including Chinese,

United States and these countries, Unless these weaknesses are resolved,
Ukranian, and Pakistani nationals. FAA

their early experiences offer insights the government is at risk of
substantial was unable to provide any information as the United States
considers ways to losses. Financial statement audits have on the individuals
who did code improve budget recognition of longterm long criticized claims
contractors for remediation for four of its 153 commitments and continues to
internal control and financial reporting computer systems. With regard to
code seek improvements in government weaknesses, including failure to
review, 20 key mission- critical systems

performance and accountability. safeguard checks received from have been, or
are in the process of providers for overpayments and being, reviewed by two
contractors

AIMD- 00- 61, Feb. 4, 2000 (101 pages). incorrectly recording billions of
who use foreign nationals. One code 2000 Census: New Data Capture

dollars owed to Medicare for such contractor employed 36 mainland System
Progress and Risks. overpayments. However, HCFA's

procedures for following up on audit year that a major component of the
resulting in both taxpayer burden and findings and evaluating corrective
ALMRS/ Modernization failed to meet potentially billions of dollars in lost
actions remain insufficient. Poor BLM's business needs and was not revenue
for the government; (2) poor monitoring of contractors' financial
deployable. (See GAO/ T- AIMD- 99- 102, controls over tax refunds,
potentially activities is another problem. Audit Mar. 1999.) GAO cited many
problems allowing the disbursement of billions reports have also cited HCFA
for and risks that threatened the of dollars in improper refunds; (3)
inefficiencies in its internal control successful development and

vulnerabilities in controls over financial reporting practices, including
deployment of the

hardcopy tax receipts and taxpayer a lack of documented policies and ALMRS/
Modernization and data that increase the risk of procedures. These
deficiencies call recommended measures to help BLM inappropriate disclosure
or loss of into question the reliability of the data strengthen its
information technology

taxpayer data; (4) vulnerabilities in that Congress and HCFA use to track
management practices and reduce the computer security that may allow
Medicare program costs and make risk of future failures. This report

unauthorized people to access, alter, decisions about future funding. HCFA
determines whether BLM has (1) or abuse sensitive IRS programs and officials
have launched several adequately assessed the usability of data; (5) the
failure to reconcile IRS' initiatives to strengthen the agency's

the ALMRS Initial Operating Capability fund balance with Treasury records
control and accountability, such as and alternatives to meet its business

throughout fiscal year 1999; (6) hiring outside consultants to evaluate
needs, (2) adequately assessed and

inadequate systems and controls that the contractors' internal controls.
strengthened its investment resulted in the inability to properly However,
the agency still lacks a management processes and practices, account for
IRS' property and comprehensive strategy to ensure (3) obtained an
independent equipment and related costs; (7) successful implementation of
these assessment of its systems acquisitions

inadequate budgetary controls; and (8) initiatives, direct financial
capabilities and strengthened its

an inadequate financial reporting management activities, and sustain systems
acquisition processes, and (4) process. Many of these problems have
improvements in the long term.

made or is making sizable investments plagued IRS since GAO first began
Without such a strategy, billions of before strengthening its investment
auditing the agency's financial

dollars will remain vulnerable to fraud management and systems acquisition
statements in the early 1990s. These and abuse and HCFA's financial

processes. weaknesses prevented GAO from management problems will likely

rendering an unqualified opinion on persist. GAO summarized this report in
AIMD- 00- 76, Feb. 29, 2000 (104 five of IRS' six financial statements.
testimony before Congress; see:

pages). Financial Audit: IRS' Fiscal GAO summarized this report in Medicare
Financial Management:

Year 1999 Financial Statements. testimony before Congress; see: Further
Improvements Needed to Internal Revenue Service: Results of Establish
Adequate Financial Control The Internal Revenue Service (IRS) Fiscal Year
1999 Financial Statement

and Accountability, by Gloria Jarmon, has the daunting responsibility of
Audit, by Gregory D. Kutz, Associate

Director of Accounting and Financial collecting the nation's taxes, Director
for Governmentwide Management Issues, before the processing tax returns, and
enforcing Accounting and Financial Management Subcommittee on Government the
tax laws. The size and complexity Issues, before the Subcommittee on
Management, Information, and of the agency's operations-- IRS has

Government Management, Information Technology, House Committee on about
100,000 employees in locations and Technology, House Committee on Government
Reform. GAO/ T- AIMD- 00-

across the country-- present additional Government Reform. GAO/ T- AIMD-
00104, 118, Mar. 15 (22 pages). challenges for IRS management.

Feb. 29 (21 pages). Despite these challenges, IRS AIMD- 00- 67, Feb. 24,
2000 (21 pages). successfully collected about $1. 9 AIMD- 00- 79, Mar. 1,
2000 (21 pages). Land Management Systems: Status of trillion in taxes in
fiscal year 1999,

Financial Audit: Bureau of the Public BLM's Actions to Improve Information
processed hundreds of millions of tax Debt's Fiscal Years 1999 and 1998
Technology Management. returns, and paid about $185 billion in Schedules of
Federal Debt. refunds. IRS has responded to some of The Bureau of Land
Management

the management concerns that GAO Because of the significance of the (BLM) is
developing the Automated has raised in the past. However, this federal debt
for the government's Land and Mineral Record System audit of IRS' financial
statements for financial statements, GAO audited the (ALMRS)/ Modernization
to improve its

fiscal year 1999 found that serious federal debt managed by the Bureau of
ability to record, maintain, and retrieve problems persist. These problems
the Public Debt. This report presents information on land descriptions,
include (1) deficiencies in controls to the results of GAO's audit of the
ownership, and use. GAO reported last properly manage unpaid assessments,
Schedule of Federal Debt Managed by

the Bureau for fiscal years 1999 and chief information officer

noncompliance with laws and 1998. GAO found that (1) the organizations.
regulations. Schedules of Federal Debt were presented fairly in conformity
with AIMD- 00- 85, Mar. 1, 2000 (42 pages). AIMD- 00- 98, Apr. 12, 2000 (19
pages). generally accepted accounting

Financial Audit: American Battle Financial Audit: Senate Restaurants
principles, (2) the Bureau had effective

Monuments Commission's Financial Revolving Fund for Fiscal Years 1999
control over financing reporting and

Statements for Fiscal Years 1999 and and 1998. compliance with laws and
regulations 1998. related to the Schedule of Federal

GAO contracted with the independent Debt, and (3) there was no reportable
GAO audited the American Battle public accounting firm of KPMG Peat
noncompliance in fiscal year 1999 with Monument Commission's financial

Marwick LLP to audit the financial a selected provision of a law GAO

statements for fiscal years 1999 and statements of the Senate Restaurants

tested. 1998. The Commission is a small, Revolving Fund for fiscal years
1999 independent agency created in 1923 to and 1998. The Fund, which
operates

AIMD- 00- 83, Mar. 1, 2000 (65 pages). commemorate the sacrifices and dining
facilities used by Senators,

Executive Guide: Maximizing the achievements of the U. S. armed forces.
Senate staff, and the public, depends

Success of Chief Information Officers The Commission maintains 25 on
financial support provided by the (Exposure Draft). American cemeteries
overseas and 27 Architect of the Capitol and the U. S. monuments and
memorials, many of Senate. KPMG found that the financial

Information technology is now which are in foreign countries. GAO statements
were fairly presented in essential to the delivery of government found that
the financial statements conformity with generally accepted services. As the
federal government were presented fairly in conformity accounting
principles; internal fully embraces e- commerce and other with generally
accepted accounting controls effectively safeguarded assets leading edge
applications of principles. The Commission had against unauthorized
acquisition or information technology, the successful effective internal
control over financial use, ensured material compliance with management of
the government's reporting (including safeguarding laws and regulations, and
ensured that information resources becomes assets) and complied with laws
and

there were no material misstatements crucial. Congress, recognizing the
regulations. GAO did note one in the financial statements; and there need
for greater leadership in reportable condition concerning was no reportable
noncompliance with information management passed the internal controls over
information

provisions of the laws and regulations Clinger- Cohen Act of 1996. This

technology systems. GAO did not it tested. legislation mandates the hiring
of chief consider this condition to be a material information officers at
federal weakness. GAO found no reportable AIMD- 00- 101, May 3, 2000 (16
pages).

agencies. Today, virtually all the major instances of noncompliance with the
Foreign Military Sales: Air Force executive branch agencies have laws and
regulations GAO tested.

Controls Over the FMS Program Need appointed chief information officers,
Improvement. and many of these individuals have AIMD- 00- 95, Mar. 14, 2000
(21 pages). taken positive steps toward Financial Audit: Capitol
Preservation

The Air Force lacked adequate implementing important information Fund's
Fiscal Years 1999 and 1998 management controls over its foreign management
processes. For federal

Financial Statements. military sales (FMS) program to agencies to reap the
full benefits of ensure that foreign customers' information management
reform, GAO audited the Capital Preservation accounts were properly charged
for however, chief information officers

Fund's financial statements for fiscal goods and services. GAO's analysis of
must assume their roles as information

years 1999 and 1998. The Fund was data maintained by the Defense

management leaders and become established to improve and preserve Finance
and Accounting Service active participants in developing the United States
Capitol as well as indicates that the Air Force may not agency strategic
plans and policies. acquire works of art and other items

have charged foreign military sales This guide is intended to help federal

for display. GAO found that the customers for as much as $540 million
agencies maximize the success of their

financial statements were fairly worth of delivered goods and services.
chief information officers. Principles presented in conformity with
generally The Air Force recognizes that it must and practices gleaned from
case accepted accounting principles, there

improve its controls over the program studies presented in GAO's guide offer
were no material weaknesses in the and develop the data needed to concrete
suggestions on how agencies internal controls GAO tested, and identify
instances in which foreign can ensure the effectiveness of their there was
no reportable

customers' accounts have not been charged for goods and services

received. However, according to Air reportable instances of noncompliance
indicated that SBA has made Force officials, the data are going to be with
laws and regulations. substantial progress in completing the made available
only on an ad hoc eight planning actions mandated by basis, meaning that
they will not be AIMD- 00- 123, Apr. 14, 2000 (38

law but still has to complete work on routinely available to the appropriate
pages). Telecommunications: GSA's

some actions and implement key personnel for review, including Estimates of
FTS2001 Revenues Are

functions to effectively manage the managers, with the requirement that
Reasonable. development of the loan monitoring they use the information to
ensure that

system. This report contains a list of customers' accounts are being The
General Services Administration's recommendations to help SBA properly
charged. (GSA) Federal Technology Services complete the eight planning
actions provides its customers with a broad and strengthen its information

AIMD- 00- 114, Mar. 30, 2000 (63 range of end- to- end technology management
practices. pages). Power Marketing telecommunications services,
Administrations: Their Ratesetting

including global voice, data, and video

AIMD- 00- 125, Apr. 19, 2000 (16 Practices Compared With Those of services,
supporting both local and

pages). Social Security Administration: Nonfederal Utilities.

long- distance government Year 2000 Readiness Efforts Helped
telecommunications users. Its FTS2000 Ensure Century Rollover and Leap This
report reviews the ratesetting long- distance services reached more Year
Success.

practices of the Department of than 1. 7 million users through two Energy's
(DOE) power marketing multibillion dollar 10- year contracts

Overall, the Social Security administrations (PMA) and compares that were
awarded to AT& T and Sprint Administration (SSA) showed a strong them with
those of other utilities. GAO in December 1988. Two contracts have

and consistent commitment to focuses on PMA's ratesetting practices since
been awarded for the successor addressing concerns about its Year and
assesses their impact on the PMA's FTS2001 program-- one to Sprint and

2000 program. The agency completed future competitiveness. GAO one to MCI
WorldCom. The federal all of the critical tasks needed to determines (1) how
the PMAs set their government is now switching from the

ensure its readiness before the date rates to recover costs, (2) how the

FTS2000 to the FTS2001 long- distance change at the turn of the century and

PMA's ratesetting practices compare to telecommunications program. This
experienced only minor problems those of investor- owned and publicly report
answers the following during the rollover weekend. SSA also owned utilities,
and (3) the impact of questions: What percentage are the reported that its
systems processed the PMA's ability to defer repayment of minimum revenue
guarantees of the

data without incident during the portions of their debt on their future
FTS2001 contracts? When are the

February 29 leap year date, another competitiveness. minimum revenue
guarantees likely to

potential source of disruptions. Like be satisfied? What sensitivities are
other organizations, however, SSA

AIMD- 00- 120, Mar. 31, 2000 (35 there in each of these estimates? What must
still consider the possibility that pages). Financial Audit: Independent
factors could significantly alter them?

additional challenges arising from the Counsel Expenditures for the Six If
additional competitors were allowed Year 2000 issue could arise. Months
Ended September 30, 1999. to compete for the FTS2001 business,

how might that competition affect the

AIMD- 00- 127, May 31, 2000 (34 This report presents GAO's audit of
estimates provided? Would lower pages). Bureau of Reclamation: expenditures
reported by eight offices

prices and transition costs resulting Information on Operations and

of independent counsel for the six from such competition offset the
Maintenance Activities and Costs at months ended September 30, 1999.

impact on estimates? Multipurpose Water Projects. GAO found that the
statements of expenditures for the offices of AIMD- 00- 124, Apr. 25, 2000
(35

This report reviews the Bureau of independent counsel Arlin M. pages). SBA
Loan Monitoring System: Reclamation's operation and Adams/ Larry D.
Thompson, David M.

Substantial Progress Yet Key Risks and maintenance (O& M) of federal water

Barrett, Carol Elder Bruce, Ralph I. Challenges Remain. projects. GAO
answers the following Lancaster, Daniel S. Pearson, Donald questions: How
does the Bureau define C. Smalz, Kenneth W. Starr, and Curtis GAO recently
testified before O& M activities? What latitude does the

E. von Kann were fairly presented in Congress on the Small Business Bureau
have in deciding which O& M all material respects. GAO's Administration's
(SBA) progress in

costs to charge to customers? How consideration of internal controls
carrying out planning actions for its does the Bureau account for O& M found
no material weaknesses. loan monitoring system. (See GAO/ TAIMD- costs? How
does the Bureau define Furthermore, GAO found no 00- 113, Feb. 2000.) GAO
overhead? How does the Bureau

calculate the O& M costs that it charges of these nine organizations can
help 2001, but also budgetary totals enacted to customers? What concerns
have federal agencies as they continue to by Congress for the current fiscal
year been raised by customers about improve their management and

and reported actual totals for the excessive O& M costs and to what
financial accountability. This guide previous year. In effect, the
President's extent do customers have an discusses the goals, success
factors, submission analyzes and compiles opportunity to review cost origins
and and practices associated with building

separate presentations for hundreds of recommend reductions? How do the a
world- class finance organization. budget accounts spanning the Bureau's
cost recovery practices

activities of the entire federal compare to those of other entities?

AIMD- 00- 140, June 9, 2000 (38 government, including such
“offbudget”

pages). Information Security: programs as Social Security AIMD- 00- 131,
Mar. 31, 2000 (109 Vulnerabilities in DOE's Systems for and the Postal
Service. The President's pages). Financial Audit: 1999 Financial

Unclassified Civilian Research. budget contains a wealth of Report of the
United States information in a daunting assemblage Government.

Unclassified information systems for of schedules, tables, graphs, and
scientific research are not consistently narrative summaries. The An
important element of federal protected at all Department of Energy
comprehensiveness of the President's financial management reform is the

(DOE) laboratories. Although some budget-- its sheer size and complexity-
requirement that the government laboratories are taking significant

is both its principal strength and its prepare an annual financial
statement, steps to strengthen access controls, most obvious inconvenience.
This which GAO is required to audit. This many systems remain vulnerable. In
budget compendium was compiled to report contains the government's fiscal

four recent cases, Internet attacks help GAO staff and others cope with year
1999 financial report, which was

forced DOE laboratories to disconnect the breadth of the federal budget. It
issued by the Treasury Department, as their networks from the Internet,
gives readers a convenient way to sort well as GAO's conclusions about the
interrupting scientific research for as

through the fiscal structure of the report. In summary, GAO found that long
as a week on at least two federal government and to understand significant
financial systems

occasions. A major contributing factor the level of budgetary resources--
used,

weaknesses; problems with basic to the continuing security shortfalls at
estimated, or requested by fiscal year- for

recordkeeping and financial reporting; these laboratories is that DOE lacks
an individual accounts. incomplete documentation; and weak effective program
for consistently internal controls, including computer managing information
technology AIMD- 00- 153, May 15, 2000 (41

controls, continue to prevent the security throughout the agency.

pages). United States Capitol Police: government from accurately reporting
Moreover, line management within 1999 Financial Audit Highlights Need a
large part of its assets, liabilities, and DOE has not effectively overseen
to Address Internal Control costs. Some of these shortcomings are
implementation of computer security Weaknesses. found primarily at specific
agencies, at the laboratories. DOE is aware that while others are
governmentwide. its unclassified security program has

In its audit of the U. S. Capitol Police, been inadequate and has taken
steps to PricewaterhouseCoopers found that AIMD- 00- 134, Apr. 1, 2000 (57
pages). improve it, including issuing an the Police's internal control fell
short Executive Guide: Creating Value updated, unclassified information in
ensuring that (1) its assets were Through World- class Financial technology
security policy and safeguarded against loss or Management. developing a
five- year action plan.

misappropriation, (2) transactions However, further action will be needed
were executed in accordance with To help promote the effective to reform the
Department's line management's authority and with laws implementation of
financial management oversight structure for and regulations, and (3) there
were no management reform across the federal information technology
security. material misstatements in the financial government, GAO studied
the financial reports. On three occasions involving management practices and

AIMD- 00- 143, Apr. 1, 2000 (176 its appropriations for salaries, the
improvement efforts of nine leading pages). Compendium of Budget Police
violated the Anti- Deficiency public and private sector Accounts: Fiscal
Year 2001.

Act, which prohibits an officer or organizations-- Boeing; Chase

employee of the United States from Manhattan Bank; General Electric; The
President is required by law to making an expenditure from an Hewlett-
Packard; Owens Corning; submit a budget to Congress each year.

appropriation that exceeds the amount Pfizer; and the state governments in
This budget not only presents the available in the appropriation. The
Massachusetts, Texas, and Virginia.

President's policy proposals for the Police's combining statement of Lessons
learned from the experiences

“budget year,” in this case fiscal year receipts and
disbursements for fiscal

year 1999 presents fairly the receipts Deposit Insurance Corporation's 1999
risk level of the tasks to be performed,

and disbursements of appropriated and 1998 Financial Statements. (2) whether
FAA's “five layers of funds on a modified cash basis, which

system protection” concept is a is another comprehensive basis of GAO
audited the Federal Deposit generally accepted security framework
accounting.

Insurance Corporation's financial reflective of its security policies and
statements for 1999 and 1998. In its procedures, and (3) the extent of FAA's

AIMD- 00- 155, May 1, 2000 (6 pages). audits of the Bank Insurance Fund, the
compliance with the requirements of Information Technology Investment
Savings Association Insurance Fund,

its personnel security program Management: An Overview of GAO's

and the FSLIC Resolution Fund, GAO concerning background searches for
Assessment Framework (Exposure found that the financial statements of FAA
and contractor employees at all Draft). each fund were presented fairly, in
agency facilities. conformity with generally accepted GAO developed guidance
in 1997, accounting principles; although some AIMD- 00- 170, May 31, 2000
(94

based primarily on the Clinger- Cohen internal controls should be improved,

pages). Information Technology Act, that provides a way to evaluate

FDIC has effective internal control Management: SBA Needs to Establish and
assess how well a federal agency over financial reporting (including
Policies and Procedures for Key IT is selecting and managing its

safeguarding of assets) and Processes.

information technology resources and compliance with laws and regulations;

identifies areas in which improvement and there was no reportable As the
Small Business Administration

is needed. This framework for noncompliance with laws and

(SBA) tries to transform itself into a information technology investment
regulations. GAO also presents

21st century leading edge financial management enhances this guidance
information on (1) the scope of its institution, it needs to identify and by
identifying critical processes for

audits, (2) a reportable condition address operational problems that
successful information technology related to information systems control

have agencywide implications. investment and by organizing these noted
during GAO's 1999 audits, (3) the

Although SBA plans to improve its key processes into a framework of current
status of the goodwill litigation information technology process, many
increasingly mature stages. cases, (4) the current status of the of the
agency's policies and FSLIC Resolution Fund's liquidation procedures for
managing this critical

AIMD- 00- 156, May 15, 2000 (20 activities, and (5) its evaluation of the
area are now in draft form or not yet pages). Financial Audit: Congressional
Corporation's comments on a draft of developed. SBA intends to pursue best
Award Foundation's 1999 and 1998 this report. practices for information
technology Financial Statements. planning, monitoring, and evaluation,

AIMD- 00- 169, May 31, 2000 (15 but its current practices do not GAO audited
the Congressional Award

pages). Computer Security: FAA Is generally adhere to defined processes.

Foundation's financial statements for Addressing Personnel Weaknesses, In
particular, investment management 1999 and 1998. The Foundation was

But Further Action Is Required. efforts are limited largely to reviewing
established in 1979 to promote

information technology proposals, excellence among youth in public The
Federal Aviation Administration's

architecture related activities are service, personal development, and

(FAA) personnel security policy carried out without a defined process,
physical fitness. GAO found that the

requires that background checks be and software development and financial
statements are presented done for all FAA employees and acquisition
practices are often ad- hoc. fairly in conformity with generally contractor
employees who have some In the information security area, SBA

accepted accounting principles; the level of risk association with their
jobs.

lacks centralized oversight of the Foundation had effective internal GAO
reported last year that the agency activities of its field and program
control over financial reporting had failed to perform risk assessments

offices. Also, periodic risk (including safeguarding of assets) and

as required and had not done assessments have not been done on all
compliance with laws and regulations background searches on all contractor
mission- critical systems and security as of September 30, 1999; and there
employees. (See GAO/ AIMD- 00- 55.)

training has not been given to was no reportable noncompliance in This
report determines (1) the factors employees and contractor staff. fiscal
year 1999 with the laws and the that contributed to FAA's failure to Human
capital management efforts are regulations GAO tested. adhere to the
requirements of its

limited to a non- information personnel security program that technology
training needs survey, and AIMD- 00- 157, May 26, 2000 (73 requires
background searches- investigations a human capital assessment has not
pages). Financial Audit: Federal

or checks-- of contractor been done to identify short- and longterm
employees commensurate with the

information technology

knowledge skills and requirements. deficient.” However, IRS' tax
systems help (1) agencies in implementing and

GAO summarized this report in modernization efforts have been monitoring
their core systems and (2) testimony before Congress; see:

plagued by management and technical management and auditors in reviewing
Information Technology Management:

weaknesses. To address these core systems to determine if they Small
Business Administration Needs problems, IRS requested, and

substantially comply with the act. This Policies and Procedures to Control
Congress established, a $506 million

checklist is not required to be used in Key IT Processes, by Joel C.
information technology investments

assessing a core system. It is provided Willemssen, Director of Civil
Agencies account. IRS cannot spend the money as a tool for use by
experienced staff. Information Systems Issues, before the

until it submits an expenditure plan to Senate Committee on Small Business.
Congress. This report presents the AIMD- 00- 21.3.1, Nov. 1, 1999 (21 GAO/
T- AIMD- 00- 260, July 20.

results of GAO's review of IRS' second pages). Standards for Internal
Control expenditure plan, which reports on in the Federal Government.

AIMD- 00- 174, May 31, 2000 (41 IRS' progress against commitments pages).
Budget Issues: Budget made in its first expenditure plan The Federal
Managers' Financial Enforcement Compliance Report. submitted last year. GAO
discusses (1) Integrity Act of 1982 requires GAO to IRS' progress in meeting
the issue standards for internal control in This report assesses compliance
by the

commitments in its first expenditure government. Rapid advances in Office of
Management and Budget plan, (2) whether the plan satisfies the information
technology have (OMB) and the Congressional Budget conditions spelled out in
Treasury's underscored the need for updated Office (CBO) with the
requirements of fiscal years 1998 and 1999 guidance on internal controls
over the Balanced Budget and Emergency appropriations acts, (3) whether the

modern computer systems. At the Deficit Control Act of 1985. GAO's

plan is consistent with GAO's open same time, the management of human
assessment covers reports issued by

recommendations on IRS' systems capital is increasingly recognized as an OMB
and CBO for legislation enacted modernization, and (4) whether GAO

important part of internal control. during the first session of the 106th

has any other observations on IRS' Moreover, the private sector has
Congress, which ended in November modernization efforts. updated its
guidance on internal 1999. According to CBO's final controls. This update,
which sequestration report issued in AIMD- 00- 21. 2.2, Feb. 1, 2000 (65

supersedes GAO's earlier “Standards

December 1999, discretionary outlays pages). Core Financial System for
Internal Controls in the Federal for all spending categories combined
Requirements: Checklist for Reviewing Government,” recognizes these
three are estimated to exceed the spending Systems Under the Federal
Financial developments. The standards are limits by $16. 6 billion for
fiscal year Management Improvement Act. effective beginning with fiscal year
2000. CBO estimates that a four 2000. percent sequestration would be The
Federal Financial Management required for the overall discretionary
Improvement Act of 1996 requires

AIMD- 00- 210, July 21, 2000 (27 category. In contrast, OMB's Final
government agencies to implement pages). Financial Management: Sequestration
Report, issued in and maintain financial management

Improvements Needed in NIH's January 2000, estimates that no

systems that substantially comply with Controls Over Royalty Income.

sequestration of discretionary federal management systems

spending will be required for fiscal requirements. These requirements Poor
internal controls have affected year 2000. There will be no sequester

have been spelled out by the Joint the monitoring of licensees and the in
fiscal year 2000 because, by law, Financial Management Improvement
completeness and accuracy of royalty OMB's estimates are controlling.
Program (JFMIP) and the Office of income received by the National Management
and Budget. JFMIP Institutes of Health (NIH). In fiscal AIMD- 00- 175, May
24, 2000 (25 intends for the requirements to year 1999, NIH's Office of
Technology

pages). Tax Systems Modernization: promote understanding of key Transfer
(OTT) did not follow up-- with Results of Review of IRS' March 7, financial
management systems one exception-- on the biennial audits 2000, Expenditure
Plan.

concepts and requirements, to provide of licensees' sales to ensure that a
framework for establishing licensees with sales that exceed $2 For more than
a decade, the Internal integrated financial management million had been
properly audited. In Revenue Service (IRS) has tried to systems to support
program and the audited exception, GAO found that improve service to
taxpayers by financial managers, and to describe the there were $9. 4
million in uncollected modernizing its antiquated taxprocessing specific
requirements of individual royalty payments, with another $1. 2 systems,
which the agency types of financial management million projected. OTT also
did not acknowledges to be “fundamentally systems. This checklist is
intended to exercise its right to designate auditors

to conduct reviews and verifications of breakdown of the work and associated
dollars in programs to its customers; semiannual royalty reports and royalty
schedules, resource needs, and

process and communicate sensitive payments that could provide OTT
performance measures are included. payroll, financial, and market data; and
assurance that royalty income maintain personal customer received from its
licensees is based on AIMD- 00- 215, July 6, 2000 (39 pages).

information. This report discusses accurate sales amounts. Additionally,

Information Security: Fundamental steps that USDA has taken to improve OTT
did not enforce its collection Weaknesses Place EPA Data and information
security and implement its policies and procedures to ensure Operations at
Risk. August 1999 departmentwide timely payment of royalty fees. NIH's
information security plan. GAO found Office of Financial Management Serious
and pervasive problems have that USDA has developed

system to track royalty payments is rendered the Environmental
recommendations to strengthen not integrated with OTT, making Protection
Agency's (EPA) agencywide departmentwide information security monthly
reconciliation labor- intensive. information security program

and has hired a new Associate Chief Delays in recording royalty income in
ineffective. GAO reported many of Information Officer for Cyber- Security.
its own general ledger increase the risk these weaknesses to EPA in 1997.
The

Since the plan was issued, however, that financial and budgetary reports to
computer network that supports most little progress has been made to
Treasury may be inaccurate and delay

of EPA's mission- related and financial implement the plan's other

distribution of funds. operations is riddled with security recommendations
for strengthening weaknesses, and the agency has had

the department's information security.

AIMD- 00- 212, Aug. 1, 2000 (19 pages). several serious computer security
Moreover, GAO found that USDA has

Information Technology: INS Needs to incidents since early 1998 that have
not developed and documented a Better Manage the Development of Its

damaged and disrupted agency strategy to implement the action plan
Enterprise Architecture. operations. Deficiencies in incident
recommendations with established

detection and handling capabilities priorities and the detailed steps, time
An enterprise architecture serves as an have limited EPA's ability to fully
frames, milestones, and total institutional systems blueprint that
understand or assess the nature of or resources needed to fully carry them
defines the terms of the organization's

the damage due to intrusions into and out. GAO concludes that until USDA
current and target operating misuse of its computer systems. EPA's

fully implements these important environments and provides a road map

computer systems and the operations information security improvements, its

for moving between the two. Although that rely on them have been highly
critical assets will remain vulnerable the Immigration and Naturalization
vulnerable to tampering, disruption, to cyber attacks and other threats.
Service (INS) invests hundreds of and misuse from both internal and

GAO recommends that USDA develop millions of dollars each year in external
sources. Moreover, EPA has

a detailed strategy to implement the information technology (IT), it has
been unable to protect sensitive action plan and take steps that would only
recently begun to develop an business and financial data maintained
demonstrate that information security enterprise architecture. A current on
its larger computer systems. Since

is a departmentwide priority. architecture description is not the close of
GAO's audit in midFebruary, complete, and a definition of a target EPA has
moved aggressively AIMD- 00- 218, July 7, 2000 (13 pages). architecture has
not begun. So far, INS to reduce the vulnerability of its Federal Reserve
Banks: Areas for

has focused on the technology layers systems and data and to correct the
Improvement in Computer Controls.

of the architecture (hardware and weaknesses identified. Sustaining system
software computing platforms,

these improvements in today's As part of its audit of the U. S. data
structures and schemas, software dynamic computing environment will

government's fiscal year 1999 financial applications). A top- down process,
require continuing vigilance and

statements, GAO reviewed the general which begins with the institution's
management attention. and application computer controls mission and a
business concept of over key financial systems maintained operations and
continues with the

AIMD- 00- 217, Aug. 10, 2000 (38 and operated by the Federal Reserve
definition of supporting business

pages). Information Security: USDA Banks on behalf of the Department of
functions, processes, and information

Needs to Implement Its the Treasury's Financial Management needs and flows,
is advocated by both

Departmentwide Information Security Service (FMS) and the Bureau of the
federal and private sector architecture Plan.

Public Debt (BPD). Overall, GAO guidance. Moreover, INS' architecture

found that the Federal Reserve Banks development efforts are not managed The
Department of Agriculture had implemented effective general and as a formal
program. No meaningful (USDA) relies on automated systems

application controls. Vulnerabilities plans that provide a detailed and
networks to deliver billions of identified involved general and

application computer controls that

AIMD- 00- 228, Aug. 18, 2000 (69 health care systems have corrected were not
considered as having a pages). Financial Management: Review most of the
computer security significant adverse impact on key FMS

of Education's Grant back Account. weaknesses identified in 1998, serious
and BPD systems, but nonetheless computer security problems persist warrant
action. These vulnerabilities Financial management system throughout the
Veterans Health relate to the entitywide security deficiencies, inadequate
systems of Administration (VHA) and the management program; access controls;
funds control, and manual internal Department. These problems persist system
software; application software control weaknesses increase the risk

because VA had not yet fully development and change controls; of waste,
fraud, and abuse in the grant implemented an integrated security and, in one
data center, segregation of back program. Using the pooling management
program and VHA had

duties. Although these vulnerabilities method, grant recipients with
multiple not devoted adequate resources to do not pose significant risks,
awards were not required to match

effectively manage computer security corrective action would decrease the
drawdowns to specific awards;

at its medical facilities. Consequently, risk of inappropriate disclosure
and consequently, drawdown allocations financial transaction data and
personal modification of sensitive data, misuse between Education and the
recipients information continue to face increased of computer resources, or
disruption did not match. Education used the risk of inadvertent or
deliberate of critical operations. The Federal grant back account to clear

misuse, fraudulent use, improper Reserve Banks agreed with 17 of
unreconciled differences in various disclosure, or destruction. GAO GAO's 22
findings, have corrected or grant appropriation fund balances and recommends
that VA: (1) ensure that are in the process of correcting those to adjust
appropriation fund balances remaining computer security findings, and are
studying the

to ensure that they did not become weaknesses at each health care system
remaining five findings before negative. Since 1995, independent are
corrected in accordance with undertaking corrective measures. financial
statement auditors have

action plans developed by each of the reported weaknesses in Education's

medical facilities; and (2) provide AIMD- 00- 226, Aug. 16, 2000 (33
information systems controls; this security oversight resources as pages).
Information Technology: VA increases the risk of unauthorized

prescribed in VHA policy to effectively Actions Needed to Implement Critical
access and makes Education's

implement and oversee VA's computer Reforms. sensitive grant and loan data
security management program through vulnerable to inadvertent or deliberate

assessing risk, implementing policies To improve information technology
misuse. Although the grant back and controls, promoting awareness, (IT)
investment decision- making at the

account was established for grant back and evaluating the effectiveness of
Department of Veterans Affairs (VA), activity, Education also used it as a
information system controls at VHA GAO recommends that the agency (1)

suspense account for activity related facilities. establish and monitor
deadlines for to grant reconciliation efforts. The completing formal in-
process reviews portion of the grant back account AIMD- 00- 234, Aug. 4,
2000 (57 pages). at key milestones in a project's life related to actual
grant back activity Debt Collection: Treasury Faces cycle, (2) provide
decisionmakers with averaged less than five percent of the Challenges in
Implementing Its CrossServicing information on lessons learned from IT total
account balance in every year Initiative. post- implementation reviews, and
(3)

starting in fiscal year 1993. Education develop and implement guidance to
did not maintain adequate detailed According to Treasury's Financial better
manage IT projects. To fully records for certain grant back account
Management Service (FMS), about 89 addresses these provisions, VA needs

activity by applicable fiscal year and percent of the $59. 2 billion of
debts to fill the position of assistant

appropriation. more than 180 days delinquent were secretary for information
and excluded from cross- servicing for technology as quickly as possible,

AIMD- 00- 232, Sept. 8, 2000 (42 fiscal year 1999. The accuracy and the

reassess its decision to delegate pages). VA Information Systems:
completeness of amounts reported by business process reengineering to the

Computer Security Weaknesses Persist agencies (including exclusions) were
individual administrations, and direct at the Veterans Health
Administration.

not independently verified. As of April the department's Chief Information
2000, about $3. 7 billion of the $6. 4 Officer or designee to lead the
effort to In September 1998, GAO reported that billion of eligible debt had
been work with VA business owners to computer security weaknesses at the

referred for cross- servicing. Many develop a logical architecture as a step
Department of Veterans Affairs (VA) eligible debts were not promptly toward
an integrated IT architecture.

placed critical operations, including referred by the agencies, not referred
health care delivery, at risk of misuse

at all, or not always eligible for crossservicing. and disruption. Although
two VA FMS had requested written

debt referral plans from 22 of the 24 Orchestra (NSO) on the Capitol fund
and related systems are chief financial officers, but the plans

grounds. The concerts, which are paid interoperable and are cost- effective.

were of limited use because they were for with federal and private money,
However, GAO concluded that several incomprehensive, inaccurate, or have
grown significantly in terms of significant business and technical
incomplete. The FMS staff and some their size, scope, popularity, and cost.
challenges still put the TAAMS effort at private collection agency
contractors The Park Service provided NSO with considerable risk. For
example, did not always follow established federal funding to support three

Interior still must revamp policies and written standard operating concerts
in 1999. The funding was

procedures for the entire trust procedures. Collection industry transferred
to the Park Service from an management cycle and address longstanding
statistics as well as FMS' collection appropriation to the Army. NSO
internal control weaknesses. experience so far have shown that contracted
with Capital Concerts, Inc. Interior needs to ensure that its new collection
rates are generally higher on

on a reimbursable basis to handle the contractor is following disciplined
debts with smaller dollar balances and production and television broadcasts
processes for developing and testing debts that are less delinquent.
Crossservicing of the Memorial Day and July 4th

TAAMS. fees FMS charged to concerts. Of the $3. 9 million in agencies
referring delinquent debts funding, $2. 5 million came from AIMD- 00- 262,
Aug. 30, 2000 (22 have not covered FMS' estimated federal sources and $1. 4
million came pages). District of Columbia: Status of cross- servicing costs
and are not likely

from public broadcasting fees and the New Convention Center Project.

to in the near future. grants and private donations. The Park Service, NSO,
and Capitol Concerts

Estimated project costs for the new

AIMD- 00- 252, Aug. 16, 2000 (14 received and retained most of the

D. C. Convention Center rose 2. 8 pages). FAA Computer Security: concert-
related funding to support the percent ($ 22. 9 million) from June 1999
Concerns Remain Due to Personnel

concerts. to April 2000, according to the and Other Continuing Weaknesses.

Washington Convention Center AIMD- 00- 259, Sept. 15, 2000 (24 Authority
(WCCA). Net changes This report is part of a continuing pages). Indian Trust
Funds: included $17. 4 million in estimated assessment of FAA's overall
computer Improvements Made in Acquisition of construction costs, $25. 1
million in security program. FAA has a history of New Asset and Accounting
System But other estimated costs, $. 3 million in computer security
weaknesses, Significant Risks Remain. addition to the WCCA project budget,

including physical security and a $19. 9 million cost savings in management
at facilities that house air This report addresses steps that the financing
costs. With the $22. 9 million traffic control systems, systems

Department of the Interior has taken in increase, excess of total estimated
security for both operational and response to earlier GAO reports on the
funding sources have been reduced to future systems, implementation of
agency's efforts to acquire and develop $8.3 million. The increase in WCCA's

security policies, and personnel its Trust Asset and Accounting financing
plan included more than $6

security. Although FAA is addressing Management System (TAAMS). This million
of additional committed

these weaknesses, its progress has report also reviews the business and
federal grants and $4. 9 million of been slow in key areas. Specifically,

technical risks and challenges still administrative costs funded by WCCA's

the agency has not yet completed confronting Interior as it deploys

operating budget. However, WCCA's accrediting its facilities and systems as
TAAMS. GAO found that Interior has

contingency (reserve funds) may be secure and has not yet completed taken
some positive steps to address reduced if vendor contracts do not background
checks on thousands of concerns raised in GAO's 1999 report. fund the $10
million cost of certain

contractors actively working on FAA These actions include: (1) adopting a
equipment and the $10 million

contracts. Until it does so, the agency generally accepted methodology for
included in the District of Columbia's

will remain vulnerable to intrusions developing plans for mitigating risks,
capital budget request is not approved.

and malicious attacks on its facilities, transitioning to the new system,
and

Nonetheless, WCCA's contingency can information, and resources.

validating and maintaining the absorb the $20 million. WCCA's integrity of
the system throughout its

records indicated that $40.5 million of AIMD- 00- 258, Sept. 25, 2000 (15
useful life; (2) strengthening its testing

dedicated taxes were collected for the pages). Capitol Concerts: Audit of
the

processes by expanding tests to assess first nine months of fiscal year
2000. Receipt and Use of 1999 Funding. how the system responds to unexpected
conditions; and (3) AIMD- 00- 263, Aug. 29, 2000 (54

Since 1981, the National Park Service developing an information systems

pages). Financial Management: Status has sponsored an annual series of
architecture for Indian trust of Financial Management Issues at the concerts
by the National Symphony management to ensure that the trust Small Business
Administration.

This report focuses on the status of (GSA), and the Department of Labor- use
major challenges. For example, financial management issues at the commercial
off- the- shelf software agencies will need to: (1) use Small Business
Administration (SBA). (COTS) systems/ applications to disciplined investment
management GAO found that until SBA improves its

improve their human resource practices to ensure that the full costs
financial reporting and information functions and the agencies' estimated

of providing electronic filing, controls, it will be unable to provide costs
and expected benefits from using recordkeeping, and transactions reliable,
timely information on a dayto- COTS systems. Quantifiable benefits prompted
by the act are identified and

day basis, which is the ultimate goal expected include requiring fewer
examined within the context of of financial management initiatives in

employees to perform human resource expected benefits; (2) adequately plan
the federal government. functions, reducing manager time for

for and implement computer network transactions and data analysis,

and telecommunications AIMD- 00- 269, Aug. 9, 2000 (17 pages). eliminating
duplicative or multiple infrastructures and technical Bureau of the Public
Debt: Areas for systems, and implementing self- service

architectures to provide the capacity Improvement in Computer Controls.
functions, such as employee changes and connectivity needed to support the

to health and life insurance benefits. electronic traffic generated by new
or Although various management and Nonquantifiable benefits expected
enhanced electronic offerings; (3) reconciliation controls help the include
a more user- friendly provide a secure computing

Bureau of the Public Debt detect environment, easier environment to support
the broad potential irregularities or manager/ employee access, better

array of e- government services improprieties in its financial data or
decision- making and data analysis, envisioned by the act; (4) develop
transactions, such controls do not

improved data accuracy, and better adequate capabilities for creating,
prevent threats to its computer information sharing. Despite these storing,
retrieving, and, when resources or operating environment expectations, four
of the five agencies' appropriate, disposing of electronic from
unintentional errors or systems efforts have encountered

records; and (5) overcome two basic omissions, or intentional modification,

delays, while three of the four agencies challenges facing information
disclosure, or destruction of data and have increased cost estimates. Three

technology related businesses today-- a programs by disgruntled employees,
of the five agencies-- DOD, Labor, and

shortage of skilled workers and the intruders, or hackers. These VA-- have
reportedly achieved necessary training and development of vulnerabilities
increase the risk of quantifiable benefits, such as full- time these
workers. inappropriate disclosure and

equivalent reductions from their modification of sensitive data and

human resource COTS systems or AIMD- 00- 288, Sept. 29, 2000 (36 programs,
misuse or damage of related efforts.

pages). Financial Management: Impact computer resources, or disruption of of
RUS' Electricity Loan critical operations. In its fiscal year AIMD- 00- 282,
Sept. 15, 2000 (34 Restructurings. 1999 audit, GAO identified general
pages). Electronic Government: control vulnerabilities in the Bureau's

Government Paperwork Elimination The Rural Utilities Services (RUS) has

entity- wide security management Act Presents Challenges for Agencies.
exercised broad authority in program, access controls, application

restructuring the loans of two software development and change Advances in
the use of information generation and transmission (G& T) controls, and
service continuity. The

technology and the Internet are borrowers, including acquisition of Bureau
told GAO that it had corrected transforming the way in which federal third-
party non- RUS guaranteed debt, or was correcting these vulnerabilities.

agencies communicate, use and providing significant concessions

information, deliver services, and do to the borrows, such as noninterest

AIMD- 00- 270, July 31, 2000 (51 business. If used effectively, these
bearing notes, contingent payments,

pages). Information Technology: advances can help reshape and forgiveness of
federal

Selected Agencies' Use of Commercial government, making it more government's
losses. Although RUS

Off- the- Shelf Software for Human innovative, efficient, and responsive to
generally followed its policies and Resources Functions. the pubic. This
report reviews efforts

procedures for restructuring loans of by the Office of Management and two
financially troubled borrowers, This report examines how five Budget (OMB)
to develop guidance for

GAO found one instance in which RUS' agencies-- the Centers for Disease
implementing the Government policies were not fully used and other Control
and Prevention (CDC), the

Paperwork Elimination Act. Although instances in which procedures could
Department of Veterans Affairs (VA), the guidance being developed will help
be improved. RUS' procedures lack the Department of Defense (DOD), the
agencies implement the act, GAO detailed written criteria for

General Services Administration concludes that agencies face several
determining when a borrower should

be added or removed from RUS' list of initiatives that helped ensure that
the objective of the seventh financially troubled borrowers. RUS

necessary staff and financial resources amendment-- authorizing pilot
projects estimated that it could lose would be available to agencies.

to further streamline the audit process approximately $185 million on loans

Specific management practices that and make it more useful. restructured for
the first borrower and contributed to Y2K success included between $110 and
$120 million for the top- level management attention, risk

AIMD- 00- 295, Sept. 6, 2000 (31 second borrower. The Rural analysis,
project management,

pages). Information Security: Serious Development Service (RD) did not
development of complete information and Widespread Weaknesses Persist at
include in the fiscal year 1999 financial systems inventories and
strengthened Federal Agencies. reports the estimated loss of $185

configuration management, million it anticipates will occur as a independent
reviews by internal Evaluations of computer security result of restructuring
loans for one auditors and independent contractors,

published since July 1999 continue to borrower, and included only $30
improved testing methods and show that federal computer security is million
of the estimated $110 to $120 procedures, and business continuity plagued by
weaknesses that put million anticipated loss on the and contingency
planning. The priority critical operations and assets at risk.

restructured loan for the other both the legislative and executive
Significant weaknesses were identified borrower. These errors occurred

branches gave to the Y2K challenge in each of the 24 agencies covered by
because the accounting department and the persistence they both showed this
review. These weaknesses place a lacked documented procedures to were
crucial to its successful outcome.

broad array of federal operations and ensure that debt forgiveness and
assets at risk of fraud, misuse, and losses resulting from restructuring

AIMD- 00- 293, Sept. 29, 2000 (26 disruption. For example, weaknesses loans
were properly reported in the pages). Single Audit: Update on the

at the Department of the Treasury financial statements. Implementation of
the Single Audit Act

increase the risk of fraud associated Amendments of 1996. with billions of
dollars of federal

AIMD- 00- 290, Sept. 12, 2000 (71 payments and collections. Weaknesses

pages). Year 2000 Computing The Single Audit Act of 1996, as at the
Department of Defense increase Challenge: Lessons Learned Can Be amended,
established the concept of the vulnerability of various military Applied to
Other Management replacing multiple grant audits with a operations that
support its war- fighting Challenges. single audit of a recipient as a
whole. It capability. Information security focuses on the recipient's
internal weaknesses place confidential data at Although the Year 2000 (Y2K)
crisis is controls and its compliance with laws risk of inappropriate
disclosure, such over, it led to the development of and regulations
governing federal as the case of a Social Security initiatives, processes,
methodologies,

awards. The first two amendments- extending Administration employee who pled
and experiences that can help resolve

the law to cover all guilty to unauthorized access of the ongoing management
challenges. First, recipients of federal financial administration's systems.
The related Y2K underscored the value of assistance and ensuring a more
costbeneficial investigation determined that the sustained and effective
bipartisan threshold for requiring

employee had made unauthorized oversight by the Senate and the House single
audits-- have largely been queries, including obtaining earnings of
Representatives. Second,

accomplished. Actions by single audit information for members of the local
leadership, commitment, and stakeholders have laid the foundation business
community. Weaknesses coordination by the federal

for effective implementation of the cover the full range of computer
government, including periodic

next four amendments: focusing audit security controls. They include
reporting and oversight of agency work on programs that present the

inadequate security program planning efforts, were major reasons for the
greatest financial risk to the federal and management, ineffective physical
government's Y2K success. Third, the government, providing for summary

and logical access controls, ineffective President's Council on Year 2000

reporting of audit results, promoting software change controls, inadequate

Conversion and individual agencies better analyses of audit results through

segregation of staff duties to reduce formed working partnerships with
establishment of a federal

the risk of unauthorized transactions other agencies, states, other
countries, clearinghouse and an automated data or software changes, and
inadequate and the private sector. Fourth, base, and providing for timely
control over sensitive operating communication within agencies, with
reporting of audit results-- have laid the

system software and insufficient partners, and with the public was vital
foundation for effective planning to ensure continuity of to coordinating
efforts and ensuring an implementation of the next four computerized
operations. Although appropriate public response. Finally, amendments. It is
still too soon to most agencies have taken at least

the federal government implemented evaluate the prospects for achieving some
corrective actions based on

recommendations by GAO and agency federal agencies. The Federal
appropriation for funding independent inspectors general, more needs to be
Financial Management Improvement counsel activities. The statements of done,
especially in the area of security Act of 1996 requires the 24 major
expenditures were fairly presented in program planning and management.
departments and agencies to adhere to all material respects, and a limited
certain management and accounting consideration of internal controls

AIMD- 00- 305, Sept. 26, 2000 (22 standards. The act also requires

disclosed no material weaknesses. The pages). Financial Management Service:

auditors to indicate in their audit audits included limited tests of
Significant Weaknesses in Computer reports whether their financial
compliance with laws and regulations,

Controls. management systems comply with the

which disclosed no reportable act's requirements. GAO is required to
instances of noncompliance with the This report provides an overall report
annually on the implementation laws and regulations tested. assessment and
summary of the of the act. This, GAO's fourth annual Department of the
Treasury's Financial

report, discusses: (1) whether the AIMD- 00- 317, Sept. 29, 2000 (55
Management Service (FMS) general financial systems of the 24 major pages).
Financial Management: Census and application computer controls

agencies substantially comply with the Monitoring Board Disbursements, over
key financial systems it maintains

act's requirements; (2) agencies' plans Internal Control Weaknesses, and and
operates. It points out computer to bring their systems into compliance;

Other Matters. control weaknesses that, in GAO's

and (3) other efforts to improve the view, place FMS' financial systems at
government's financial management The Census Monitoring Board (CMB)
significant risk of fraud, unauthorized

systems. For fiscal year 1999, auditors began operations in June 1998 to
disclosure and modifications of for 21 of the 24 major agencies monitor the
2000 Census carried out sensitive data and programs, misuse or reported that
the agencies' financial by the Census Bureau. The CMB board

damage to computer resources, or systems did not comply substantially
consists of four members appointed by disruption of critical operations. GAO

with the act's requirements. However, the Speaker of the House and the
concludes that pervasive weaknesses

the number of agencies receiving Senate Majority Leader, referred to as in
computer controls render FMS' “clean,” or unqualified, audit
opinions

the congressional CMB, and four overall security control environment on
their financial statements is

members appointed by the President, ineffective in identifying, deterring,
increasing. Fifteen of the 24 CFO Act

referred to as the presidential CMB. and responding to computer control
agencies received unqualified audit The combined CMB disbursed about
weaknesses promptly. Consequently, opinions in fiscal year 1999, up from 12

$7. 4 million from June 1998 through GAO believes that billions of dollars
of in fiscal year 1998 and 11 in fiscal year March 31, 2000, and another $0.
5 payments and collections are at 1997. Agencies are slowly making million
from the congressional printing significant risk of loss or fraud, progress
in addressing the problems and binding appropriation. GAO found

sensitive data are at risk of caused by financial management little
documentation to substantiate inappropriate disclosure, and critical
weaknesses. However, the continued possible improprieties that Members
computer- based operations are

widespread noncompliance with the of Congress had raised concerns vulnerable
to serious disruptions. As of act shows that there is still a long way
about. Among other fundings, no September 1999, FMS had corrected or to go
to achieve systems, processes,

presidential CMB funds were used to mitigated the risks associated with 52
and controls that routinely generate print reports for the 1998 World of the
94 computer control

reliable, useful, and timely information Exposition and no evidence existed
weaknesses cited by GAO in its fiscal for managers and other

that former congressional CMB year 1998 report.

decisionmakers. employees accessed protected census data. However, GAO did
find a pattern AIMD- 00- 307, Sept. 29, 2000 (53

AIMD- 00- 310, Sept. 29, 2000 (36 of significant CMB internal control
pages). Financial Management: pages). Financial Audit: Independent
weaknesses related to travel, Federal Financial Management and Special
Counsel Expenditures for

personnel, and the procurement of Improvement Act Results for Fiscal the Six
Months Ended March 31, 2000. services, which sometimes resulted in Year
1999. inappropriate and wasteful practices.

The report presents the results of GAO The inability to produce the data
audits of expenditures reported by AIMD- 00- 318R, Sept. 15, 2000 (15 needed
to efficiently and effectively

seven offices of independent counsel, pages). District of Columbia: Source
of manage the day- to- day operations of as required by law, and one office
of Funding for Needle Exchange

the federal government and provide special counsel that is authorized to
Programs. accountability to taxpayers has been a fund operations from the
Department long- standing weakness at many of Justice's permanent,
indefinite

This correspondence focuses on the Social Security Administration, IBM, the
seized property and forfeited

source of funds used for the needle and the Legislative Branch Y2K Group.
assets systems. It is provided as a tool exchange program in the District of
for use by experienced staff. Columbia. GAO's work did not identify AIMD-
10.1.23, May 1, 2000 (163 any noncompliance with the legislative pages).
Information Technology AIMD- 21.2.6, Apr. 1, 2000 (67 pages). prohibition
against using appropriated

Investment Management: A Direct Loan System Requirements:

funds for a needle exchange program Framework for Assessing and Checklist
for Reviewing Systems

in the District during fiscal year 2000. Improving Process Maturity
(Exposure Under the Federal Financial

All of funds used for the program were Draft). Management Improvement Act.
from private contributions. GAO developed guidance in 1997,

The Federal Financial Management AIMD- 00- 324R, Sept. 29, 2000 (8 based
primarily on the Clinger- Cohen Improvement Act of 1996 requires pages).
2000 Census: Update on Data Act, that provides a way to evaluate

agencies to implement and maintain Capture Operations and System. and assess
how well a federal agency

financial management systems that is selecting and managing its
substantially comply with federal This report focuses on the year 2000

information technology resources and financial management systems

Census Data Capture System (DCS). identifies areas in which improvement

requirements. These requirements are GAO noted that the Bureau of the is
needed. This framework for spelled out in guidance issued by the Census has
made significant progress information technology investment Joint Financial
Management toward completing its first- pass data

management enhances this guidance Improvement Program (JFMIP) and

capture operations as planned, and by identifying critical processes for

the Office of Management and Budget. during these operations the DCS has
successful information technology

This checklist reflects JFMIP's revised performed as intended. It has also

investment and by organizing these

“Direct Loan System Requirements” to made progress toward
modifying DCS processes into a framework of help (1) agencies implement and
2000 to support second- pass data increasingly mature stages. monitor their
direct loan systems and capture operations and has taken

(2) managers and auditors review their effective testing and risk management
AIMD- 21.2.5, Apr. 1, 2000 (30 pages). direct loan systems to determine if
steps to ensure that the modified Seized Property and Forfeited Assets they
substantially comply with the act. version of DCS 2000 is effectively System
Requirements: Checklist for

This checklist is not required to be implemented and performs as Reviewing
Systems Under the Federal used to assess direct loan systems. It is
intended.

Financial Management Improvement provided as a tool for use by Act (Exposure
Draft). experienced staff. AIMD- 10.1.22, Oct. 1, 1999 (16

pages). Y2K Computing Challenge: Day The Federal Financial Management

AIMD- 21.2.7, Aug. 1, 2000 (90 pages). One Planning and Operations Guide.

Improvement Act of 1996 requires Guaranteed Loan System agencies to
implement and maintain Requirements: Checklist for Reviewing The objectives
of a Day One strategy financial management systems that Systems Under the
Federal Financial are to (1) position an organization to substantially
comply with federal

Management Improvement Act readily identify problems caused by financial
management systems (Exposure Draft). the Year 2000 date change, take needed
requirements. These requirements are corrective action, and minimize any
spelled out in guidance issued by the

The Federal Financial Management adverse impact on agency operations Joint
Financial Management Improvement Act of 1996 requires that and key business
processes and (2) Improvement Program (JFMIP) and agencies maintain
financial provide information about an the Office of Management and Budget.

management systems that organization's Year 2000 condition to This draft
checklist reflects JFMIP's substantially comply with federal executive
management, business revised “Seized Property and Forfeited

financial systems requirements, which partners, and the public. This guide

Assets Systems Requirements” to help are spelled out in guidance
issued by provides a conceptual framework to (1) agencies implement and
monitor the Joint Financial Management help government agencies develop a
their seized property and forfeited

Improvement Program (JFMIP) and Day One strategy and reduce the risk asset
systems and (2) managers and the Office of Management and Budget. of Year
2000 problems for agency auditors review agency seized GAO is issuing this
checklist, which operations. It builds upon GAO's

property and forfeited assets systems reflects JFMIP's revised Guaranteed
earlier Year 2000 business continuity to determine if they substantially
Loan System Requirements, to help (1) and contingency planning guide, and

comply with the act. This checklist is agencies implement and monitor their
draws on other sources, including the not required to be used in assessing
guaranteed loan systems and (2)

managers and auditors in reviewing

AIMD/ HEHS- 00- 29, Nov. 4, 1999 (67 government contributions; and the
agency guaranteed loan systems to pages). Social Security: Evaluating
transition period would be financed by determine if they substantially
comply Reform Proposals.

a loan from the general fund to the with the Act. OASDI trust funds. The
President's This report analyzes the potential Social Security Transfer
Proposal AIMD- 21.2.8, May 1, 2000 (62 pages). budgetary and economic
effects of five would keep benefits at current levels Travel System
Requirements: Checklist

Social Security reform proposals. and general revenues would provide

for Reviewing Systems Under the Under the proposed Social Security addition
financing. Under his USA Federal Financial Management Guarantee Act, current
retirement Proposal, workers would receive a flat Improvement Act. income
would not be reduced and

general tax credit and a government could be higher; individual mutual match
on individual voluntary The Federal Financial Management fund accounts
financed by refundable

investment accounts financed from Improvement Act of 1996 requires that tax
credits would be mandatory; and general revenues by means of income agencies
maintain financial

benefit payouts would remain the tax credits. management systems that

same as under current law or would be substantially comply with federal
based on the annuitized account AIMD/ HEHS- 00- 56, Jan. 19, 2000 (30
financial systems requirements, which balance, which would be gradually
pages). Social Security Reform: are spelled out in guidance issued by
returned to Old Age and Survivors

Information on the Archer- Shaw the Joint Financial Management Insurance and
Disability (OASDI) trust Proposal. Improvement Program (JFMIP) and

funds and left to the heirs of workers the Office of Management and Budget.

who die before receiving benefits. This report applies GAO's criteria for
GAO is issuing this checklist, which Under the proposed 21st Century

assessing Social Security reform reflects JFMIP's revised Travel System
Retirement Security Act, benefits proposals to the plan outlined by
Requirements, to help (1) agencies would be generally lower than under

Congressman Archer. GAO's report is implement and monitor their travel
current law but a minimum benefit based on an analytical framework that
systems and (2) managers and auditors would be higher and formula changes

the agency provided to Congress last review their travel systems to would
increase the benefit structure's

March. That framework consists of the determine if they substantially comply
progressivity; mandatory individual following three criteria: the extent to
with the act. This checklist is not investment accounts would be which the
proposal achieves required to be used in assessing the

modeled after the Federal Thrift sustainable solvency and how it would
travel system. It is provided as a tool Savings Plan; additional revenue
affect the U. S. economy and the for use by experienced staff. would be
available from changes in the federal budget; the balance struck cost- of-
living adjustment and Social between the twin goals of income AIMD/ GGD- 00-
49, Dec. 16, 1999 (42 Security benefit taxation currently adequacy (level
and certainty of pages). Year 2000 Computing financing Medicare; and
retiring benefits) and individual equity (rates Challenge: Readiness of
FBI's National workers could buy annuities or take a

of return on individual contributions); Instant Criminal Background Check

monthly pay- out with the balance after and how readily such changes could
be System Can Be Improved. death left as a lump sum or rolled over.

implemented, administered, and Under S. 1383, benefits, mandatory explained
to the public. The FBI's National Instant Criminal individual accounts,
additional Background Check System is a revenues, and account distributions
on AIMD/ HEHS- 00- 102R, Feb. 29, 2000 computer system that, in concert with
retirement and after death would have (24 pages). Social Security Reform:

other FBI and state- run systems, is features similar to the previous
Evaluation of the Nick Smith Proposal.

used to do presale background checks proposal. Also, children would have on
persons seeking to buy firearms.

�KidSave� accounts from birth to age Recent proposals regarding Social This
report, which summarizes the

five and retiring workers would take a Security Disability Insurance range
information presented by GAO at a benefit reduction to reflect from
increasing the substantial gainful congressional briefing, evaluates the
government contributions to the activity level established for the FBI's
efforts to make the system Year individual accounts. Under

program's blind beneficiaries to 2000 compliant. GAO also makes Congressman
Kasich's plan, initial

eliminating it completely. These recommendations designed to benefits would
be lower because they proposals, if enacted, would likely strengthen the
Year 2000 readiness of would be indexed to prices rather than increase
beneficiaries' work effort but the nation's firearm presale to wages;
benefits from voluntary would raise program costs and could background check
program.

individual investment accounts would widen the differences in the program's

be reduced at retirement to offset treatment of blind and nonblind

beneficiaries. Raising the level for be achieved through productivity to
comprehensively measure improper

blind persons could result in calls to improvements and other reform
Medicare payments and the frequency

increase it for nonblind persons, initiatives. These difficulties have of
kickbacks, false claims, and other

leading to significantly higher program harmed financial operations,
resulting inappropriate provider practices. A

costs and adverse effects on the in hundreds of millions of dollars in
recent study by the Inspector General solvency of the Social Security trust
operating losses and limited delivery at the Department of Health and

fund. Eliminating the level would of timely support to customers. This Human
Services concluded that eight

fundamentally alter the purpose of the report describes problems with
percent of the $169.5 billion Medicare program. Other changes to work
inaccurate pricing, decline in worker fee- for- service claim payments in
fiscal incentives being implemented or productivity, and unrealized
projected year 1999 was paid improperly. tested are likely to increase
savings. GAO recommends ways for Because of the breadth of health care
beneficiaries' work without changing the Air Force to improve budget fraud
and abuse, HCFA uses various the nature of the program. estimates and
management of material detection methods and techniques, costs and usage.

such as contacting beneficiaries and

AIMD/ NSIAD- 00- 38, Dec. 10, 1999 providers and performing medical (24
pages). Air Force Depot

AIMD/ OGC- 00- 6, Oct. 29, 1999 (23 record reviews, data analyses, and
Maintenance: Analysis of Its Financial

pages). DC Courts: Improvements third- party verification procedures.

Operations. Needed in Accounting for Escrow and

HCFA has begun three projects to Other Funds. measure the extent of Medicare
feefor- The Air Force depot maintenance service improper payments-- two to
activity group provides the repair The District of Columbia Courts did

improve the precision of future services needed to keep air force units not
properly account for the funds in improper payment estimates and help up and
running around the world. The half of its 18 bank accounts during develop
corrective actions to reduce

group repairs and overhauls a wide fiscal year 1998, as shown by its losses
and the other to test the viability

range of items, from aircraft engines to problems in determining its cash of
using various of investigative

missiles to software. For example, the balances and reconciling its

techniques to develop a potential fraud Air Force reported that in 1998 the

accounting records to supporting and abuse rate. GAO believes that depot
maintenance activity group did

documentation. In addition, DC Courts HCFA's efforts to measure Medicare
major overhauls on 670 aircraft, lacked adequate controls and fee- for-
service improper payments can overhauled 980 engines, and repaired
procedures during fiscal year 1998 to be further enhanced with the use of
more than 800,000 inventory items. help ensure that the fines and the fees

additional fraud detection techniques The report discusses (1) the Air Force
that were collected were accurately

and makes several recommendations activity group's price increase between

recorded. Although DC Courts was to that effect.

fiscal years 1994 and 1999 and the authorized to deposit fines, fees, and

primary reasons for it, (2) the activity penalties specified in District Law
into GAGAS- PV- 1, Apr. 14, 2000 (16

group's financial losses during that the Crime Victims Fund to provide
pages). Government Auditing period and the primary reasons for financial
assistance to crime victims, Standards: Independence (Preliminary them, and
(3) the Air Force's methods in fiscal years 1998 and 1999 DC Views). for
recovering these losses.

Courts also deposited other fines, fees, and penalties into the Fund that
should This publication invites comment on AIMD/ NSIAD- 00- 185, Aug. 15,
2000 have been deposited in the U. S. possible revisions to the
“Yellow Book” (40 pages). Air Force Depot Treasury. involving
auditor independence issues. Maintenance: Budgeting Difficulties

The changes being considered would and Operational Inefficiencies. AIMD/
OSI- 00- 281, Sept. 15, 2000 (50 clarify issues concerning the pages).
Medicare Improper Payments: organizational independence of The Air Force's
depot maintenance While Enhancements Hold Promise for government auditors.
Some audit activity group, operating as a working Measuring Potential Fraud
and Abuse,

organizations have misinterpreted the capital fund that charges fees for

Challenges Remain. current standards. The revised services based on
anticipated actual standards would more explicitly state costs, provides
depot repair services

This report provides information on the criteria for organizational needed
to keep Air Force units proposals by the Health Care independence and
provide guidance operating worldwide. For years, this

Financing Administration (HCFA) to for organizations that do not meet this
activity has had difficulty accurately measure Medicare improper payments
criteria. budgeting for material costs,

and how these proposals and workforce productivity, and savings to
initiatives will enhance HCFA's ability

GGD/ AIMD- 00- 64, Feb. 29, 2000 (95 owned by the financial institution that
system was also unable to incorporate

pages). Gun Control: Implementation issued the card. Although technically
trading volatility. To oversee NASD's

of the National Instant Criminal feasible, real- time foreign ATM fee
development and implementation of Background Check System. disclosure would
require extensive

the new system, SEC relied on industry restructuring by all major
participants reports of their progress and examined The FBI approved most
gun purchases in the ATM industry. Hardware and

the readiness of market participants (72 percent) within 30 seconds after
software would have to be revised and

for decimal trading. However, SEC did buyer information had been entered
upgraded, and functions, such as

not determine in advance that NASD's into the National Instant Criminal
message processing and calculation of systems would be unable to handle the
Background Check System (NCIS)-- a ATM fees, would have to be modified.

increased trading activity. computer system designed to provide Most
industry representatives could presale background screening for all not
offer precise estimates of the costs

HEHS/ AIMD- 00- 36, Oct. 29, 1999 (37 types of firearms bought from federal
or the time frames associated with pages). Combating Terrorism: firearms
licensees. The remaining 28 such changes, but estimates for Chemical and
Biological Medical percent of the background checks had

software and hardware changes alone Supplies Are Poorly Managed. delayed
responses. From a sample of ranged from $5 million for a large delayed
responses handled by an ad third- party processor to tens of The ability of
the United States to hoc selection of examiners, the FBI millions of dollars
for large banks, with effectively respond to terrorist attacks concluded
that most of these estimates from two to three years for

involving chemical or biological responses (80 percent) were resolved
implementation. The potential weapons is compromised by poor within two
hours or less and that the consequences for foreign fee management controls
and the lack of rest (20 percent) required several disclosure may offset
consumer items on a list of required inventory. hours or days to resolve.
This report benefits. Few consumer complaints For example, GAO's review of
(1) provides statistics on background

have been made about fee disclosure, stockpiles maintained by the checks,
denials, and appeals; (2) consumer groups' concerns are more Department of
Veterans Affairs found

describes enforcement actions taken focused on the fairness of surcharges,

discrepancies of more than 12 percent against persons who allegedly falsify
and surveys suggest that only a with this list. Although most of these their
status on firearm- purchase minority of ATM cardholders pay

discrepancies were overages, GAO applications; (3) discusses the NCIS'
foreign fees. A requirement for realtime also found shortages. The
underlying computer system architecture, foreign fee disclosure could cause
of these problems is that federal capacity management system produce
unintended consequences,

agencies have lagged in implementing availability, transaction response
time, which GAO believes could offset any

basic internal controls to help ensure retention of records, monitoring
potential benefits of disclosure. that all medical supplies and activities,
system security

pharmaceuticals are current, authorization, exemptions from the

GGD/ AIMD- 00- 319, Sept. 20, 2000 (47 accounted for, and ready for use. The
Privacy Act of 1974, and the prospect pages). Securities Pricing: Trading
stakes will be even higher in the future of making NCIS a fingerprint- base
Volumes and NASD System Limitations as the Centers for Disease Control and
system rather than a name- based Led to Decimal- Trading Delay. Prevention
(CDC) establishes the system; and (4) discusses pawnshop National
Pharmaceutical Stockpile issues.

In response to a Securities and Program, which will set aside large Exchange
Commission (SEC) order, quantities of antidotes and other GGD/ AIMD- 00-
224, July 11, 2000 (39 the National Association of Securities medical
supplies to be used in the pages). Automated Teller Machines: Dealers (NASD)
developed a decimal event of domestic chemical and Issues Related to Real-
time Fee

pricing system for U. S. stocks. biological attacks. Although CDC is

Disclosure. However, NASD was unable to meet to still in the early stages of
developing the original implementation deadline

this program, its current plan lacks The Gramm- Leach- Bliley Act of 1999

of July 2000 because the new system comprehensive internal controls that
required GAO to explore the feasibility lacked the capacity to process the
would prevent the types of problems of providing real- time disclosure of
increased trading volume that the that GAO found at other agencies. fees
charged to automated teller market experienced during that time. machine
(ATM) cardholders during The main reason for this problem was

HEHS/ AIMD- 00- 132, Apr. 28, 2000 electronic fund transfers conducted at
that the system was unable to use (27 pages). Medicare Home Health ATMs.
Cardholders may be charged

multiple computers to process the Agencies: Overpayments Are Hard to both a
surcharge and a “foreign” ATM message traffic arising from the

Identify and Even Harder to Collect. fee when they use an ATM that is not
increased trading activity. The new

The Health Care Financing Improvements Needed in Monitoring HEHS/ AIMD- 00-
304, Sept. 7, 2000 Administration (HCFA) has been slow Extramural Grants.

(43 pages). Medicare: HCFA Could Do to identify amounts that closed home
More to Identify and Collect health agencies (HHA) owe Medicare, The
National Institutes of Health (NIH)

Overpayments. and it collects little of the has developed policies and
procedures overpayments due from them after

for assessing scientific progress and In fiscal year 1999, contractors they
close. HCFA plans to implement ensuring the effective financial collected
$8.7 billion, or about 70 the home health prospective payment

management of its extramural grant percent of the $12. 6 billion in Medicare
system mandated by the Balanced programs, but its system of internal
overpayments. HCFA and its Budget Act of 1997, which will involve

controls could be strengthened. The contractors used identification

predetermined payments for home flexibility that NIH's institutes and
techniques, such as medical reviews,

health services. This system should grantees have in implementing its

to ensure service appropriateness, reduce the potential for overpayments

policies and procedures for interim payments review and audits of to HHAs
because payment amounts administering grants tends toward a cost reports for
providers that are paid would not be adjusted retrospectively

lack of important information on on the basis of their costs, and reviews to
reflect allowable agency costs.

scientific progress and inventions to determine if another entity has GAO's
estimate of the overpayments

developed in a grant's last year as well primary payment responsibility. due
from the 15 closed HHAs differs as on unobligated funds that could be
However, HCFA lacks information to significantly from an estimate HCFA
recovered for rebudgeting within the

measure the effectiveness of reported. Using the same definitions of federal
government. GAO identified contractors' overpayment overpayment, GAO
estimated that areas where controls over financial identification
activities. Recovery these agencies could owe $68 million,

management in the oversight and the auditors use identification techniques

one- third of HCFA's initial $209 million monitoring of grantees could be
similar to those already in use. GAO estimate. HCFA's inability to
accurately strengthened. For example, NIH does

suggests that Congress consider record and track overpayments has not always
receive and use the single increasing HCFA's funding to bolster been a
consistent weakness,

audit reports the Office of its postpayment review program.

documented in its financial statement Management and Budget requires, a
Contractors transfer overpayments audits from fiscal year 1996 through

key tool for financial management they cannot collect to HCFA, which fiscal
year 1999. The fiscal year 1998

oversight. Other areas in internal has had limited collection success.
audit, for example, found that HCFA controls that could be strengthened HCFA
officials said that they do not lacked an integrated financial include the
discrepancies GAO found have the resources needed to pursue management
system to track between grant award amounts collection on the large volume
of overpayments and their collection and reported in key NIH systems, which

eligible debt. GAO recommends that that its procedures to help ensure that
increase the risk of inaccuracies and HCFA immediately refer overpayments
overpayments were valid and improper authorization of grant funds.

as they become more than 180 days supported were inadequate. HCFA's In its
fiscal year 1999 audit report on delinquent to a designated debt contractors
record and track internal controls, the independent collection center or to
the Treasury overpayment activity for HHAs and

public accountant responsible for the Department for collection. HCFA has

other providers using fragmented and financial audit of NIH identified a
already recognized that specialized overlapping computer systems but do
material weakness in the analysis and contractors improve overpayment not
always reconcile the data from the development of financial identification;
it now has 12 firms to these various systems. For example, statements that
included a weakness

assist in its program safeguard efforts. contractor staff incorrectly keyed
data related to the financial management of HCFA is resolving complex
challenges from one of the contractor's systems

grants. Regarding NIH's use of fiscal about how to compensate the firms,
into a HCFA system, erroneously year 1999 appropriations, NIH handle
coordination and privacy reporting $77 million in overpayments allocated
about the same percentage issues, and oversee the firms' for one Texas HHA
in 1998. HCFA of funds to extramural research as it activities.

implemented several interim measures did in fiscal year 1998. Appropriations
in 1999 to improve the reliability of its allocated for extramural research
NSIAD/ AIMD- 00- 329, Sept. 29, 2000 overpayment information and is grants
accounted for about $1.4 billion (62 pages). Foreign Assistance: U. S.
planning additional improvements, but of the nearly $2 billion increase in
Food Aid Program to Russia Had Weak they could take years to implement.
NIH's appropriations, or about 70 Internal Controls. percent. HEHS/ AIMD-
00- 139, May 31, 2000 In December 1998, the United States

(42 pages). NIH Research: responded to a Russian request for

food aid. To ensure that the objectives A sound public infrastructure plays
a challenge for agencies and Congress.

of the food aid program were met, the vital role in encouraging a more
Finally, the federal budget structure Foreign Agricultural Service

productive and competitive national does not prompt explicit debate about
implemented internal controls to track economy. Public facilities are also
vital infrastructure spending that is the distribution and use of the food.

to immediate as well as long- term intended to have long- term benefits. To
GAO found that the Foreign public demands for health, safety, and better
coordinate infrastructure Agricultural Service internal controls improved
quality of life. For example, investments to meet national, regional,

were inadequate and, as a result, the transportation systems and water and
local goals and make them Service was unable to ensure that the supplies
directly support the nation's

mutually supportive, agencies food aid was delivered in the agreed economy
by facilitating the movement throughout the government need to upon amounts
to designated regions.

and manufacture of goods. Public reduce inefficiencies in their current
Several factors contributed to the

schools, housing, parks, and other investments and analyze potential weak
monitoring system, including the

facilities enhance the quality of life of investments to identify those that
yield Russian government's untimely all Americans. The United States has

the greatest benefits in the most costeffective reporting of commodity
distribution

historically made an extraordinary way. and the Service's ineffective

investment in its infrastructure. For commodity tracking systems.

instance, the federal government has RCED/ AIMD- 00- 78, Feb. 29, 2000 (70
Furthermore, the Service could not spent an average of $149 billion each
pages). Intercity Passenger Rail: guarantee that funds derived from the year
since the late 1980s on the Amtrak Needs to Improve Its sale of U. S. food
aid were properly nation's infrastructure. The amount of Accountability for
Taxpayer Relief Act collected and deposited in the Russian federal spending
on infrastructure has

Funds. Pension Fund.

been on the decline since 1987, however. This trend is driven, in part,

This report reviews Amtrak's use of RCED/ AIMD- 00- 2, Oct. 13, 1999 (63 by
lower defense spending for the Taxpayer Relief Act (TRA) funds. pages).
Forest Service: A Framework

infrastructure and by limits imposed Specifically, GAO discusses (1) how for
Improving Accountability.

by deficit reduction agreements on the much Amtrak has spent in TRA funds
government's discretionary spending- and what types of activities it has

The Forest Service must account to the part of the budget that finances
funded, (2) whether Amtrak has used the public for its use of the tax
dollars most federal spending on

TRA funds in accordance with the act, appropriated to it to carry out its
infrastructure. In contrast, federal (3) what the roles of the Amtrak
mission. To do this, the Service needs spending on nondefense infrastructure
Reform Council and the Internal to provide accurate and timely has risen
slightly, and spending by Revenue Service have been in information on how
much it was state and local governments continues monitoring Amtrak's use of
the funds, authorized to spend on specific on an upward trend. Spending on
and (4) whether Amtrak fully reports programs and activities, how it spent
infrastructure is often intended to its use of the funds. Among other the
funds, and what it accomplished

benefit the nation's economy, but things, GAO found that through June with
the money. This report discusses studies on whether it has spurred 1999,
Amtrak reported that it had spent the status of the Forest Service's

economic growth have shown mixed about $1. 3 billion of the $2. 2 billion

efforts to (1) achieve financial results. Federal agencies can improve
provided under TRA. GAO summarized accountability, (2) become more their
acquisition and management of this report in testimony before accountable
for its performance, and

infrastructure by following the best Congress; see: Intercity Passenger (3)
better align its budget with its practices of leading government and Rail:
Increasing Amtrak's strategic goals and objectives. GAO private- sector
organizations. Federal Accountability for Its Taxpayer Relief found that the
Forest Service cannot agencies and Congress face several Act Funds, by
Phyllis F. Scheinberg,

accurately report its expenditures and challenges in determining the

Associate Director for Transportation accomplishments, and its budgetary,
appropriate levels of and effective

Issues, before the Subcommittee on financial, and performance data
approaches to infrastructure Transportation and Related Agencies, systems
are not linked. investment. There is a general lack of House Committee on
Appropriations.

accurate, consistent information on GAO/ T- RCED- 00- 116, Mar. 15 (13

RCED/ AIMD- 00- 35, Feb. 7, 2000 (73 the existing infrastructure and its

pages). pages). U. S. Infrastructure: Funding future needs. Moreover, until
recently, Trends and Opportunities to Improve agencies have not been
required to RCED/ AIMD- 00- 130, June 12, 2000 Investment Decisions.

relate their planned infrastructure (38 pages). National Airspace System:
spending to their missions and goals,

Persistent Problems in FAA's New so evaluating these plans has been a

Navigation System Highlight Need for information developed by the Treasury
Government Management, Information Periodic Reevaluation.

Department and FHWA is more critical and Technology Subcommittee, House than
ever before in determining Committee on Government Reform, The Federal
Aviation Administration accurate funding amounts to be and Technology
Subcommittee, House (FAA) relies on a ground- based distributed to the
states each year. Committee on Science. navigation system that uses various
types of equipment to assist pilots in Testi mony Programs run by the states
provide a navigating their assigned routes and to host of critical social
services, from provide them with guidance for T- AIMD- 00- 7, Oct. 6, 1999
(11 pages). Food Stamps to Medicaid. GAO

landing their aircraft safely in different Critical Infrastructure
Protection: reported last year that many state

types of weather. But this system is Fundamental Improvements Needed systems
that support federal human

aging and limited in its geographic to Assure Security of Federal services
programs were threatened by coverage. FAA is planning to transition

Operations, by Jack L. Brock, Director, the Year 2000 computer problem. (See
from its ground- based system to a Governmentwide and Defense GAO/ AIMD- 99-
28, Nov. 1998.) More satellite- based system using radio Information
Systems, before the recently, GAO testified before signals generated by the
Global Terrorism, Technology, and Congress that although federal Positioning
System (GPS). In Government Information agencies were working with their
state conducting its review, GAO examined

Subcommittee, Senate Committee on partners to obtain readiness studies and
spoke with experts in the Judiciary. information and provide assistance,
aviation navigation and related

much work remained at the state level technologies to obtain their views on
Since the early 1990s, an explosion in to help ensure that major services
the capability of FAA's new navigation

computer interconnectivity, were not disrupted. (See GAO/ T- AIMD99- system
and alternatives to that system.

particularly the growth in Internet use, 241, July 1999.) This testimony (1)
From the studies it reviewed and has revolutionized the way that the

highlights the reported Year 2000 experts it talked with, GAO found that
government and the world readiness of 10 key state- run federal the current
GPS does not meet all of communicate and do business. The human services
programs and (2) FAA's civilian aviation navigation

benefits have been enormous. Without discusses federal efforts to assess
requirements for accuracy, integrity, proper safeguards, however, this
states' readiness for these 10 and availability.

widespread interconnectivity poses programs. enormous risks to critical
operations

RCED/ AIMD- 00- 148, June 29, 2000 and infrastructures in such areas as

T- AIMD- 00- 25, Oct. 21, 1999 (14 (62 pages). Highway Funding:
telecommunications, power pages). Year 2000 Computing Problems With Highway
Trust Fund

distribution, law enforcement, national Challenge: State and USAID Need to
Information Can Affect State Highway

defense, and other government Strengthen Business Continuity Funds.
services. This testimony discusses Planning, by Linda D. Koontz, efforts by
federal agencies to deal with Associate Director, Governmentwide The
Transportation Equity Act for the computer security issues. Recent

and Defense Information Systems, 21st Century (TEA- 21) authorized audits by
GAO and agency inspectors

before the House Committee on $217. 9 billion for highway, mass general show
that the government is International Relations. transit, and other surface
not adequately protecting critical transportation programs for fiscal
federal operations and assets from The Year 2000 computer problem years 1998
through 2003. This report computer attacks. This testimony poses a unique
challenge for the State

discusses (1) the Treasury provides greater detail on these Department and
the United States Department's process for allocating problems and discusses
broader issues Agency for International Development highway user tax
receipts to the that need to be considered as a (USAID). Like all
organizations, these Highway Account of the Fund, (2) the national strategy
for critical agencies must remediate internal Federal Highway
Administration's infrastructure protection is being computer systems and
plan for (FHWA) process for estimating motor considered.

unexpected disruptions within the fuel usage, and (3) the contributions to
United States. However, they must also the account that are attributable to
T- AIMD- 00- 9, Oct. 6, 1999 (16 pages). assess the Year 2000 status of
virtually highway users in each state and the

Year 2000 Computing Challenge: every country where the United States

impact of these processes on the Readiness of Key State- Administered has a
diplomatic presence and help to amount of highway program funds Federal
Programs, by Joel C. ensure the continuity of vital distributed to each
state. GAO Willemssen, Director, Civil Agencies operations, such as
protecting the determined that the quality of Information Systems, before
the welfare of millions of U. S. citizens

traveling and living abroad, promoting providers' biomedical equipment; and

Technology Subcommittee, House economic development, providing (5)
compliance testing of equipment. Committee on Government Reform.
humanitarian assistance, and achieving diplomatic agreements. This T- AIMD-
00- 27, Oct. 26, 1999 (16

Critical public services provided by the testimony discusses efforts by
State pages). Y2K Computing Challenge: government and private industry could
and USAID to increase worldwide

Nuclear Power Industry Reported be disrupted by the Year 2000 awareness of
the Year 2000 problem, Nearly Ready; More Risk Reduction

computing problem: from delayed assess international preparedness, and
Measures Can Be Taken, by Joel C. financial transactions to grounded inform
American citizens of risks. GAO Willemssen, Director, Civil Agencies flights
to power outages. GAO found

also discusses the agencies' progress Information Systems, and Keith that
although much progress has been in remediating their internal computer
Rhodes, Director, Accounting and

made to minimize these risks, more systems and their efforts to prepare
Information Management Division, work remains at the national, federal,
business continuity and contingency

before the Technology Subcommittee, state, and local levels to avoid major
plans to help ensure that they can House Committee on Science, and service
disruptions. Specifically,

continue to provide critical services. Government Management, Information
remediation must be completed, endto-

and Technology Subcommittee, House end testing done, and business

T- AIMD- 00- 26, Oct. 21, 1999 (33 Committee on Government Reform.
continuity and contingency plans and pages). Year 2000 Computing Day One
strategies developed and Challenge: Compliance Status Although progress has
been made in validated. Similar actions remain that Information on
Biomedical Equipment, readying the nation's nuclear power must still be
completed by the nation's by Joel C. Willemssen, Director, Civil

plants and fuel processing facilities for key sectors, such as energy,
Agencies Information Systems, before the Year 2000 computer problem, risks
transportation, and health care. the Oversight and Investigations remain. In
particular, the nonsafety Whether the United States successfully
Subcommittee, House Committee on

systems at two plants are still not confronts the Year 2000 challenge will
Commerce, and Health and ready. This is especially troubling for

largely depend on the efforts of Environment Subcommittee, House the one
with a completion date federal, state, and local governments Committee on
Commerce. scheduled for more than 30 days from as well as the private sector
to work now-- ever closer to the turn of the

together to complete these actions. Can medical devices, such as magnetic
century. In addition, four nuclear fuel resonance imaging systems, x- ray
facilities were not Y2K ready by T- AIMD- 00- 39, Oct. 28, 1999 (37
machines, and pacemakers, be September 1, 1999, and there little pages).
Year 2000 Computing counted on to work reliably on and

information on the Y2K status of all 14 Challenge: Update on the Readiness
of after January 1, 2000? To the extent decommissioned plants with spent the
Department of Veterans Affairs, by that biomedical equipment uses fuel.
Finally, the lack of information on Joel C. Willemssen, Director, Civil
computer chips, it is vulnerable to the

two key issues-- independent review of Agencies Information Systems, before
Year 2000 computer problem. The Y2K testing and emergency Y2K

the Oversight and Investigations Food and Drug Administration (FDA)
exercises-- and the lack of Subcommittee, House Committee on is responsible
for overseeing and requirements for Day One planning Veterans' Affairs.
regulating medical devices. Since the increases the Y2K risk to the nuclear
fall of 1998, FDA has been providing

power industry. To further reduce the The Department of Veterans Affairs
information collected from risks, the Nuclear Regulatory (VA) continues to
make progress in manufacturers of medical devices and

Commission and the nuclear power addressing the Year 2000 computer
scientific and research instruments

industry can still take specific steps to problem. It has established a
through its Federal Y2K Biomedical help ensure Y2K safety at plants.
moratorium on software changes and Equipment Clearinghouse. This has
developed a Day One plan to testimony discusses (1) the status of T- AIMD-
00- 37, Nov. 4, 1999 (51

minimize the risks associated with the FDA's clearinghouse; (2) compliance
pages). Year 2000 Computing

rollover period. However, some critical status information on manufacturers'
Challenge: Noteworthy Improvements tasks remain. For example, web sites
referred to in FDA's in Readiness But Vulnerabilities

inaccuracies in monthly reports from clearinghouse; (3) FDA's efforts to
Remain, by Joel C. Willemssen,

the Veterans Health Administration's review the Year 2000 activities of
Director, Civil Agencies Information

(VHA) medical facilities make it manufacturers of computer- controlled,
Systems, before the Technology difficult to determine their progress in
potentially high- risk devices; (4) the Subcommittee, House Committee on
renovating facility systems,

compliance status of health care Science, and Government telecommunications
systems, Management, Information and

commercial off- the- shelf software,

computer platforms, and medical T- AIMD- 00- 50, Dec. 6, 1999 (13 public.
Although the Year 2000 devices. Moreover, VHA has not pages). Financial
Management: challenge is still not over because implemented GAO's earlier
Financial Management Weaknesses at some key business processes have yet

recommendation that it review the test the Department of Education, by to be
fully executed and other risky results for biomedical equipment used Gloria
L. Jarmon, Director, Health, dates remain, the nation's success so in
critical care and life- support Education, and Human Services, far is a very
positive indicator that settings. The Food and Drug Accounting and Financial
Management these hurdles will also be overcome. Administration (FDA), for
its part, has Issues, before the Oversight and The leadership shown by the
made progress in making compliance Investigations Subcommittee, House
legislative and executive branches and information on biomedical equipment
Committee on Education and the the partnerships formed by myriad available
to users through its Federal Workforce.

organizations were crucial to this Y2K Biomedical Equipment success. The
federal government now Clearinghouse. It is also conducting The Department
of Education is the faces the challenge of applying the surveys to determine
the Y2K

lead agency overseeing the more than lessons learned from the Year 2000
readiness of manufacturers of $73 billion that the federal government
challenge to improve information pharmaceutical, biological, and

spends each year on education technology management. This

consumable medical products. FDA programs. The Department also tracks
testimony discusses (1) the reporting also recently addressed GAO's concern

about 93 million student loans and 15 structure established by the

about the lack of independent million grants. It also collects more
government to gather information on verification of critical care/ life-
support than $150 billion owed by students. Year 2000 failures reported
during the biomedical equipment that

Consequently, the Department's rollover period, (2) examples of Year
manufacturers have certified as financial statements are an important 2000
errors and their resolution, and

compliant. source of information for (3) the lessons from the Year 2000
policymakers and the public. This effort that can be useful to strengthen T-
AIMD- 00- 40, Oct. 29, 1999 (14 testimony discusses GAO's review of

the management of information pages). Year 2000 Computing the independent
auditors' reports of technology activities. Challenge: Federal Business

the Department's financial statement Continuity and Contingency Plans and

for fiscal year 1998. T- AIMD- 00- 72, Feb. 1, 2000 (13 Day One Strategies,
by Joel C.

pages). Critical Infrastructure Willemssen, Director, Civil Agencies T-
AIMD- 00- 70, Jan. 27, 2000 (33 Protection: Comments on the National
Information Systems, before the pages). Year 2000 Computing

Plan for Information Systems Government Management, Information

Challenge: Leadership and Protection, by Jack L. Brock, Director, and
Technology Subcommittee, House Partnerships Result in Limited

Governmentwide and Defense Committee on Government Reform, Rollover
Disruptions, by Joel C.

Information Systems, before the and Technology Subcommittee, House
Willemssen, Director, Civil Agencies Terrorism, Technology, and Committee on
Science. Information Systems, before the Government Information Government
Management, Information Subcommittee, Senate Committee on The risk to
government operations and Technology Subcommittee, House

the Judiciary. posed by the Year 2000 computer Committee on Government
Reform, problem can be reduced by effective and Technology Subcommittee,
House

Government officials are increasingly business continuity and contingency
Committee on Science. concerned about computer attacks plans. Day One
strategies can also help from individuals and groups with agencies manage
the risks of the

Following the date change on January malicious intentions, including
rollover period during late December 1, 2000, federal, state, and local
terrorists and nations engaging in 1999 and early January 2000. GAO
governments as well as key sectors

information warfare. The dramatic rise found that the government has made
reported that they successfully met the

in the interconnectivity of computer noteworthy progress since early 1998
Year 2000 challenge. Although Year

systems has compounded this threat. in business continuity and contingency

2000 failures occurred-- most of them Today, massive computer networks
planning, but more work remains. With minor-- these groups reported that
provide pathways among systems that, respect to Day One strategies, almost
all of these failure were if not properly secured, can be used to although
40 percent of agencies mitigated, either through the

gain unauthorized access to data and addressed all of the Office of
correction of systems or by the operations from remote locations. The
Management and Budget's elements in implementation of contingency National
Plan for Information Systems their submissions, it is clear that much
actions. The upshot is that few Year Protection calls for strengthening the
more work remains. 2000 failures adversely affected the defenses against
threats to critical

public and private- sector computer policy choices and remarkable
implemented key provisions of the systems-- particularly those supporting
economic growth has led to a budget Clinger- Cohen Act and related

public utilities, telecommunications, surplus. The Congressional Budget
information technology reforms. This

finance, emergency services, and Office projects both unified and onbudget

testimony discusses (1) VA's efforts to government operations. The Plan is
surpluses throughout the next address GAO's 1998 recommendations, intended
to begin a dialogue and help 10 years. Continuing budget surpluses,

(2) VA's efforts to develop and develop plans to protect other

however, will neither eliminate the implement a Master Veteran Record,
elements of the nation's infrastructure,

need for prudent stewardship of the (3) the Veterans Benefits including the
physical infrastructure national economy nor absolve the Administration's
actions to modernize

and the roles and responsibilities of government of its responsibility to
its information systems, and (4) the state and local governments and make
good use of taxpayer dollars.

Veterans Health Administration's private industry. In GAO's view, the

The Comptroller General's testimony actions to implement its Decision

Plan is an important and positive step discusses selected performance
Support System. GAO also discusses toward building the cyber defenses
challenges within federal agencies and

the steps that VA has taken to improve necessary to protect critical

programs and possible changes to computer security throughout the
information and infrastructures. It (1) congressional oversight to help
agency. identifies the risks arising from the address such problems. Drawing
on nation's dependence on computer the breadth of GAO's work, the

T- AIMD- 00- 86, Mar. 29, 2000 (11 networks for critical services, (2)
Comptroller General provides pages). National Oceanic and recognizes the
need for the federal examples that respond to the following Atmospheric
Administration: National government to take the lead in five thematic
questions: What federal Weather Service Modernization and addressing
critical infrastructure risks

services could be better provided by Weather Satellite Program, by Joel C.
and to serve as a model for

the private sector? What federal Willemssen, Director, Civil Agencies
information security, and (3) outlines subsidies to individuals, businesses,
or Information Services, before the key concepts and general initiatives to
state and local governments are no Energy and Environment

help achieve these goals. longer needed or poorly targeted?

Subcommittee, House Committee on Opportunities exist, however, to What
overlapping or fragmented Science. improve the plan and address programs
could be consolidated or significant challenges to building the better
coordinated? What federal Although the National Weather Service public-
private partnership necessary facilities or locations are outmoded,

(NWS) has nearly completed its for comprehensive infrastructure ineffective,
or in excess to systems modernization effort, it still protections. GAO
believes that, rather requirements? In which areas could faces important
challenges. During the than emphasizing intrusion detection

major federal capital investments be coming year, NWS plans to finish
capabilities, the plan should strive to more cost effective? In related
commissioning the Advanced Weather provide agencies with the incentives
correspondence, GAO provides a list Interactive Processing System and the
tools to implement the of federal programs, projects, (AWIPS), the final
system of the

management controls essential to activities, and facilities that Congress
modernization effort. NWS is also

comprehensive computer security could consider for possible developing
additional AWIPS system programs. Also, the plan relies heavily termination,
reduction, deferral, or capabilities to be implemented in the on legislation
and requirements reform. (See GAO/ OCG- 00- 3R, Nov. 1.) future. These
additional capabilities already in place that, as a whole, are are needed to
improve radar and outmoded and inadequate as well as

T- AIMD- 00- 74, May 11, 2000 (22 satellite processing and provide poorly
implemented by the agencies. pages). Information Technology: weather
forecasters with a full range Update on VA Actions to Implement of
interactive forecasting techniques,

T- AIMD- 00- 73, Feb. 1, 2000 (24 Critical Reforms, by Joel C. according to
NWS. The agency is also pages). Budget Issues: Effective

Willemssen, Director, Civil Agencies developing a systems architecture to
Oversight and Budget Discipline Are Information Systems, before the provide
a blueprint for future systems Essential-- Even in a Time of Surplus,

Oversight and Investigations acquisitions. Regarding the by David M. Walker,
Comptroller

Subcommittee, House Committee on Geostationary Operational General of the
United States, before Veterans' Affairs.

Environmental Satellite Program, the the Senate Committee on Budget.
National Oceanic and Atmospheric The Department of Veterans Affairs
Administration (NOAA) continues to The United States stands at a (VA) has
proposed a $1. 4 billion deploy weather satellites to ensure crossroads.
After nearly 30 years of information technology program. GAO adequate
satellite coverage. Because federal deficits, a combination of hard reported
in 1998 that VA had not fully of unexpected problems, however,

satellite coverage is now at risk and remain relevant may need to be network
that support most of EPA's

will remain so until a new satellite is updated and modernized-- through

mission- related and financial successfully launched. NOAA plans to
redesigned formulas, enhanced cost operations are riddled with security
launch the new satellite in May 2000.

sharing by beneficiaries, and weaknesses. Of particular concern is
consolidation of facilities-- to improve that many of the most serious

T- AIMD- 00- 96, Feb. 17, 2000 (46 their targeting and efficiency. The

weaknesses GAO identified-- those pages). Congressional Oversight:
Comptroller General's testimony

related to inadequate protection from Opportunities to Address Risks, draws
on the full breath of GAO work intrusions via the Internet and poor Reduce
Costs, and Improve

to highlight many examples of security planning-- had been reported
Performance, by David M. Walker,

significant performance problems in to EPA management in 1997 by the
Comptroller General of the United federal agencies and programs. These

agency's Inspector General. The States, before the House Committee on
examples are organized around the

repercussions of such weaknesses are Budget. following four broad themes:
(1)

illustrated by EPA's own records, attacking waste, fraud, abuse, and which
show several serious computer No matter how large the projected
mismanagement in order to reduce the

security incidents in the last two years budget surpluses may turn out to
be, risks and costs associated with that have damaged and disrupted the
government still has a delivering major federal programs; (2)

agency operations. GAO has also responsibility to make the most improving
the economy and the identified shortcomings in EPA's prudent use of taxpayer
dollars. The

efficiency of federal operations by incident detection and handling question
of what to do with the surplus taking advantage of opportunities to
capabilities that call into questions the has largely focused on such
options as

restructure and streamline; (3) agency's ability to fully understand and

new spending, tax cuts, and retiring reassessing what the federal assess the
nature of or damage due to the debt. But the surplus also affords

government does and considering the its computer security breaches. The
policymakers a crucial opportunity to termination or revision of outdated
result is that EPA's computer systems

restore the public's trust and programs and services; and (4) are highly
vulnerable to tampering,

confidence in government by redefining the beneficiaries of federal
disruption, and misuse, and EPA addressing known performance

programs, including who is eligible for, cannot guarantee the protection of
problems in federal agencies and pays for, and benefits from a particular
sensitive business and financial data programs. Resolving these problems
program. kept on its larger computer systems or could save taxpayers
billions of dollars

supported by its agencywide network. and dramatically improve the delivery
T- AIMD- 00- 97, Feb. 17, 2000 (15 of services to the American people.
pages). Information Security: T- AIMD- 00- 104, Feb. 29, 2000 (21 For
example, nine federal agencies Fundamental Weaknesses Place EPA

pages). Internal Revenue Service: estimate that they made improper Data and
Operations at Risk, by David

Results of Fiscal Year 1999 Financial payments of more than $19 billion in
L. McClure, Associate Director, Statement Audit, by Gregory D. Kutz, fiscal
year 1998 alone. And GAO Governmentwide and Defense Associate Director,
Governmentwide continues to include 26 federal

Information System, before the Accounting and Financial Management agencies
and programs on its list of Oversight and Investigations Issues, before the
Government government areas at high risk for

Subcommittee, House Committee on Management, Information and waste, fraud,
abuse, and Commerce.

Technology Subcommittee, House mismanagement. At the same time,

Committee on Government Reform. many government programs were GAO found
serious and pervasive designed long ago. It seems

problems that essentially render the The Internal Revenue Service (IRS)
appropriate at the start of a new Environmental Protection Agency's

has the daunting responsibility of century to question the relevance or
(EPA) agencywide information collecting the nation's taxes,

“fit” of any government program in security program ineffective.
Current processing tax returns, and enforcing

today's world. Weeding out wasteful security program planning and the tax
laws. The size and complexity and inefficient programs that have management
is largely a paper of the agency's operations-- IRS has outlived their
usefulness can provide exercise that has done little to identify,

about 100, 000 employees in locations the budgetary flexibility needed to
evaluate, and mitigate risks to the

across the country-- present additional address looming cost pressures and
agency's data and computer systems.

challenges for IRS management. emerging needs, such as the impact of
Moreover, on the basis of its tests of

Despite these challenges, IRS baby boomer retirements on the computer- based
controls, GAO successfully collected about $1.9 growth of Social Security
and health concludes that the computer operating trillion in taxes in fiscal
year 1999, care outlays. Also, those activities that systems and the
agencywide computer processed hundreds of millions of tax

returns, and paid about $185 billion in The Department of Education
independent audits of security refunds. IRS has responded to some of
oversees the more than $75 billion that controls. It also would approach the
management concerns that GAO the federal government spends each security
from a governmentwide has raised in the past. However, this year to support
education programs. perspective, taking steps to audit of IRS' financial
statements for The Department is also responsible for accommodate the
varying information fiscal year 1999 found that serious collecting about
$175 billion owed by needs of both national security and problems persist.
These problems students. Persistent financial civilian agency operations.
This include (1) deficiencies in controls to management problems have called
testimony discusses how this proposal properly manage unpaid assessments,

into question the Department's could substantially improve the federal

resulting in both taxpayer burden and stewardship of these assets. Beginning

government's efforts to address its potentially billions of dollars in lost
with the Department's first agencywide computer security problems. GAO also
revenue for the government; (2) poor

audit effort in fiscal year 1995, auditors raises two additional issues--
the need controls over tax refunds, potentially have reported the same
serious for better- defined control standards allowing the disbursement of
billions internal control weaknesses year after and centralized leadership--
that, if of dollars in improper refunds; (3)

year. This testimony discusses (1) the addressed, could further strengthen
vulnerabilities in controls over Department's fiscal year 1999 financial
security practices and oversight. hardcopy tax receipts and taxpayer audit
results; (2) the relationship data that increase the risk of between the
audit findings and the

T- AIMD- 00- 113, Feb. 29, 2000 (27 inappropriate disclosure or loss of
potential for waste, fraud, and abuse; pages). SBA Loan Monitoring System:
taxpayer data; (4) vulnerabilities in and (3) the status of GAO's ongoing

Substantial Progress Yet Key Risks and computer security that may allow
study of the Department's grant back Challenges Remain, by Joel C.
unauthorized people to access, alter, account. Willemssen, Director, Civil
Agencies or abuse sensitive IRS programs and

Information Systems, before the data; (5) the failure to reconcile IRS' T-
AIMD- 00- 107, Mar. 2, 2000 (15 Government Programs and Oversight fund
balance with Treasury records pages). Information Security: Subcommittee,
House Committee on throughout fiscal year 1999; (6) Comments on Proposed
Government

Small Business. inadequate systems and controls that Information Act of
1999, by Jack L. resulted in the inability to properly Brock, Director,
Governmentwide and

The Small Business Administration account for IRS' property and

Defense Information Systems, before (SBA) increasingly needs to monitor
equipment and related costs; (7)

the Senate Committee on the activities of lenders that help inadequate
budgetary controls; and (8) Governmental Affairs. deliver its programs.
Annual loan an inadequate financial reporting approvals for the 7( a)
General

process. Many of these problems have The proposed Government Business Loan
Guarantee Program and plagued IRS since GAO first began

Information Security Act of 1999-- S. the section 504 Certified Development
auditing the agency's financial

1993-- seeks to strengthen information Company Debenture Program have
statements in the early 1990s. These security practices throughout the
nearly doubled since 1992, and the

weaknesses prevented GAO from federal government. GAO's work has

loan portfolio for all its programs now rendering an unqualified opinion on
shown that almost all government exceeds $40 billion. During that same five
of IRS' six financial statements. agencies are plagued by poor period, SBA
cut its staff by 20 percent This testimony summarizes the computer security.
The dramatic rise

and shifted to lenders the February 2000 report, GAO/ AIMD- 00- in computer
interconnectivity has

responsibility for key loan origination, 76. increased the risk of severe
servicing, and liquidation functions.

disruptions to government operations. Lenders now originate about 75 T-
AIMD- 00- 106, Mar. 1, 2000 (16

Government officials are increasingly percent of new loans with little or no
pages). Financial Management: worried about attacks from individuals

SBA involvement in the eligibility and Education Faces Challenges in and
groups with malicious intentions,

credit approval processes. To improve Achieving Financial Management such as
terrorists and nations engaging its ability to monitor loans and lenders,
Reform, by Gloria L. Jarmon, Director,

in information warfare. S. 1993 would SBA has proposed a loan monitoring
Health, Education, and Human update the legal framework that

system to help manage its loan Services Accounting and Financial supports
federal information security portfolios, identify and mitigate the
Management Issues, before the requirements and would address

risks incurred through loans Oversight and Investigations widespread federal
information

guaranteed by SBA, implement Subcommittee, House Committee on

security weaknesses. In particular, the oversight of internal and external
Education and the Workforce. bill would prescribe a risk- based operations,
and calculate subsidy approach to information security and rates. GAO
reported in June 1997 that

SBA had not undertaken the essential Service's electric loan program
policies

that Congress and HCFA use to track planning needed to develop the and
procedures and the government's Medicare program costs and make proposed
system. (See GAO/ AIMD- 97- vulnerability to losses from direct decisions
about future funding. HCFA 94.) Congress later required SBA to loans or
guarantees that the Service officials have launched several perform eight
planning actions that made to electric cooperatives. initiatives to
strengthen the agency's

would serve as the basis for funding control and accountability, such as the
system's development and

T- AIMD- 00- 118, Mar. 15, 2000 (22 hiring outside consultants to evaluate
implementation. This testimony (1) pages). Medicare Financial the
contractors' internal controls. examines SBA's progress in completing

Management: Further Improvements However, the agency still lacks a the
mandated actions, (2) evaluates

Needed to Establish Adequate comprehensive strategy to ensure SBA's products
completed so far, (3) Financial Control and Accountability, successful
implementation of these

discusses the processes used to by Gloria L. Jarmon, Director, Health,
initiatives, direct financial

develop these products and manage Education, and Human Services management
activities, and sustain key activities, and (4) outlines steps

Accounting and Financial Management improvements in the long term. that the
agency needs to take to Issues, before the Government Without such a
strategy, billions of manage risks.

Management, Information and dollars will remain vulnerable to fraud
Technology Subcommittee, House and abuse and HCFA's financial

T- AIMD- 00- 115, Mar. 21, 2000 (18 Committee on Government Reform.
management problems will likely pages). Financial Management: USDA persist.
This testimony summarizes the Faces Major Financial Management Although the
Health Care Financing

March 2000 GAO report, GAO/ AIMD00- Challenges, by Linda Calbom, Director,

Administration (HCFA) is supposed to 66. Resources, Community, and Economic
ensure that the billions of dollars spent Development, Accounting and

on Medicare each year are managed in T- AIMD- 00- 121, Mar. 10, 2000 (15
Financial Management Issues, before a fiscally responsible way, it has yet
to

pages). Budget Process: Biennial the Government Management, establish
adequate accountability and Budgeting for the Federal Information and
Technology control over the program's financial Government, by Susan J.
Irving, Subcommittee, House Committee on

operations. HCFA's financial Associate Director, Federal Budget Government
Reform. management activities-- from

Issues, before the House Committee evaluation and follow- ups on audit on
Rules. As shown by the Inspector General's findings to contractor monitoring
and sixth disclaimer in a row on the financial reporting-- fall short in
Proposals have been made to move the Department of Agriculture's (USDA)
addressing weaknesses repeatedly

federal budget process from an annual consolidated financial statements,
cited in audits and other reviews. to a biennial cycle. The goal would be
USDA continues to have serious Unless these weaknesses are resolved,

(1) to streamline the congressional problems in accounting for hundreds the
government is at risk of substantial budget and reduce the time that of
billions of dollars in assets and losses. Financial statement audits have
Members of Congress must spend budgetary resources. Before the

long criticized claims contractors for casting seemingly repetitive votes,
(2) agency can achieve financial internal control and financial reporting to
allow agency officials to spend more accountability, it must overcome a
weaknesses, including failure to time on financial management and host of
serious financial management safeguard checks received from analyses of
program effectiveness deficiencies cited by GAO and USDA's

providers for overpayments and rather than on budget preparations Office of
Inspector General. This incorrectly recording billions of and
justifications, and (3) to help testimony focuses on problems USDA dollars
owed to Medicare for such agencies better manage their has experienced in
the following five

overpayments. However, HCFA's operations by providing funding

areas: (1) implementing the Federal procedures for following up on audit
certainty over a two- year period. This Credit Reform Act of 1990 and
related findings and evaluating corrective testimony discusses state
experiences accounting standards, (2) reconciling actions remain
insufficient. Poor with biennial budgeting, the questions its fund balance
with Treasury monitoring of contractors' financial

of periodicity and availability of funds, accounts, (3) addressing
weaknesses

activities is another problem. Audit and technical and implementation in the
Forest Service's financial reports have also cited HCFA for issues that must
be considered if the accounting and reporting, (4)

inefficiencies in its internal control federal budget is switched to a
biennial correcting other material internal financial reporting practices,
including cycle. control weaknesses, and (5) complying a lack of documented
policies and with key laws and regulations. GAO

procedures. These deficiencies call T- AIMD- 00- 126, Mar. 27, 2000 (23 also
assesses the Rural Utilities into question the reliability of the data
pages). Medicare Reform: Issues

Associated With General Revenue federal agencies have appointed chief needed
to support and encourage Financing, by Paul L. Posner, Director, information
officers. Spurred by the agency progress and congressional Budget Issues,
before the Senate Year 2000 computing problem, many oversight of this
progress. Special Committee on Aging. have also begun implementing essential
information management T- AIMD- 00- 137, Mar. 31, 2000 (21

Recent GAO testimony before processes, such as information

pages). Auditing the Nation's Finances: Congress has raised concerns about
technology investment management Fiscal Year 1999 Results Continue to the
expanded use of general revenues

controls, cost estimation processes, Highlight Major Issues Needing

to pay for the Medicare program and and information technology

Resolution, by David M. Walker, has urged comprehensive reforms to
architecture. This testimony discusses

Comptroller General of the United help ensure the program's long- term the
progress that has been made in States, before the Government sustainability.
(See GAO/ THEHS/ establishing federal chief information

Management, Information and AIMD- 00- 77, Feb. 2000, GAO/ THEHS/ officers
and the challenges that remain Technology Subcommittee, House

AIMD- 00- 103, Feb. 2000, and to realizing these positions' long- term
Committee on Government Reform.

GAO/ T- AIMD/ HEHS- 99- 236, July 1999.) benefits. Along with this
testimony, Leading Medicare reform proposals GAO issued a report on ways to
ensure Since fiscal year 1996, the 24 major that include comprehensive
reforms, that chief information officer functions

agencies and departments have had to such as those of the President and are
effectively integrated into overall prepare annual audited financial Breaux-
Frist, would use general funds performance- based and accountability
statements-- a requirement that is as part of their financing mechanisms.
management approaches. (See

critical to the success of financial Although precedent exists for using
GAO/ AIMD- 00- 83, Mar. 2000, page 63.) management reform in the federal
general funds in federal trust funds,

government. The number of agencies the challenge today is how to structure

T- AIMD- 00- 135, Mar. 29, 2000 (12 that have received unqualified general
fund infusions so they pages). Federal Information Security: opinions on
their financial statements advance, rather than impede, needed Actions
Needed to Address has risen steadily. The agencies' reform and fiscal
discipline. The

Widespread Weaknesses, by Jack L. timeliness in issuing their financial

testimony discusses the specifics of Brock, Director, Governmentwide and

statements has also improved. So far, Medicare's financial health and issues
Defense Information Systems, before 13 of the 24 major agencies have raised
by growing reliance on general the Government Management, received
unqualified opinions on their revenue financing. Information and Technology
fiscal year 1999 financial statements; Subcommittee, House Committee on only
six agencies achieved that goal in T- AIMD- 00- 128, Mar. 24, 2000 (16

Government Reform. fiscal year 1996. Several agencies,

pages). Chief Information Officers: most notably the Social Security
Implementing Effective CIO GAO's recent audit findings present a

Administration, have made good Organizations, by David L. McClure,

disturbing picture of the state of progress toward achieving financial
Associate Director, Governmentwide computer security at government
management reform goals, and others and Defense Information Systems,

agencies. GAO's work-- and the work of have solved previously reported
before the Government Management, other audit entities-- has revealed that
deficiencies in their financial Information and Technology many agencies'
critical operations and

statements. But several major agencies Subcommittee, House Committee on

processes are at serious risk of are still unable to produce auditable
Government Reform. disruption because of weak security financial statements
on a consistent practices. GAO has included computer basis-- most notably
the Defense The rapid pace of technological security on its list of
government areas

Department, which accounts for a change and innovation has offered

at high risk for waste, fraud, abuse, large share of the government's
assets, unprecedented opportunities for the

and mismanagement. The President's liabilities, and net costs. Although

government to improve performance, plan for protecting critical clean audit
opinions are essential to cut costs, and improve service to the
infrastructure reinforces this providing an annual public scorecard, public.
It is increasingly critical that designation. This testimony discusses

they do not guarantee that agencies federal agencies have effective steps
that agencies can take have the financial systems needed to leadership and
focused management immediately to strengthen their dependably produce
reliable financial control over the government's $38

security programs as well as other information. Agency financial systems
billion annual investment in actions needed to make more overall are in poor
shape and cannot information management and fundamental and long- term

provide sound financial information technology. Since the passage of the

improvements. This testimony also for managing government operations

Clinger- Cohen Act in 1996, all 24 major discusses governmentwide actions
and holding managers accountable.

Over the long term, agencies will need increasingly sophisticated and
responsible for collecting about $175 to apply the information technology
damaging and harder to detect. billion owed by students. More than
management framework outlined in 8. 1 million students received more the
Clinger- Cohen Act. Continuing T- AIMD- 00- 178, June 6, 2000 (24 than $53
billion in federal student serious and widespread computer pages). Financial
Management:

financial aid through programs run by security weaknesses put vast federal
Agencies Face Many Challenges in Education. Education's stewardship of
assets at risk of misuse, financial

Meeting the Goals of the Federal these assets, however, has been under
information at risk of unauthorized

Financial Management Improvement question because of the agency's
modification or destruction, sensitive Act, by Jeffrey C. Steinhoff,
Assistant persistent financial management information at risk of
inappropriate

Comptroller General, before the problems. Beginning with its first
disclosure, and critical operations at

Government Management, Information agencywide financial audit effort in risk
of disruption. Another critical and Technology Subcommittee, House fiscal
year 1995, Education's auditors aspect to financial management Committee on
Government Reform. have reported the same serious

reform is the revamping of human internal control weaknesses each year,
capital practices to build greater The Federal Financial Management

which have undermined the agency's capacity and implementing change
Improvement Act of 1996 requires the

ability to provide reliable financial management to achieve the discipline
24 major federal departments and

information to decisionmakers both needed to follow sound management
agencies to maintain financial inside and outside the agency. This and
reporting practices.

management systems that will yield testimony discusses (1) Education's

reliable, useful, and timely information fiscal year 1999 financial audit
results; T- AIMD- 00- 171, May 10, 2000 (14 needed to effectively manage the
dayto- (2) the relationship between the audit

pages). Information Security: day operations of government and findings and
the potential for waste, “ILOVEYOU” Computer Virus provide
accountability to taxpayers. fraud, and abuse; and (3) the results of
Emphasizes Critical Need for Agency This testimony discusses (1) problems
GAO's review of Education's grant

and Governmentwide Improvements, with agencies' systems that prevent back
account. by Keith Rhodes, Director, Office of them from meeting the act's
Computer and Information Technology expectations; (2) how the agencies are
T- AIMD- 00- 181, May 18, 2000 (15 Assessment, before the Technology

able to receive a “clean” or unqualified pages). Critical
Infrastructure Subcommittee, House Committee on

audit opinion on their financial Protection: “ILOVEYOU” Computer
Science. statements even though their financial Virus Highlights Need for
Improved systems do not comply with the act's

Alert and Coordination Capabilities, by The “ILOVEYOU” computer
virus is requirements; and (3) key elements in Jack L. Brock, Director, the
latest in a series of events on the addressing these systems problems,
Governmentwide and Defense Internet that have seriously disrupted including
the importance of sound

Information Systems, before the computer operations in both information
technology investment Financial Institutions Subcommittee, government and
private industry. and control processes. Senate Committee on Banking,
Although the federal government is

Housing and Urban Affairs. working to implement mechanisms to T- AIMD- 00-
180, May 24, 2000 (19 help agencies ward off such an attack, pages).
Financial Management:

The “ILOVEYOU” computer virus is it was not effective at
detecting the Education's Financial Management the latest in a series of
events on the virus early on and warning agencies

Problems Persist, by Gloria L. Jarmon, Internet that have seriously
disrupted

about the threat. Consequently, most Director, Health, Education, and
computer operations in both

agencies were affected. Some incurred Human Services Accounting and
government and private industry.

damage to systems and files, and many Financial Management Issues, and
Although the federal government is others spent countless staff hours

Gary T. Engel, Associate Director, working to implement mechanisms to
fending off the attack and Governmentwide Accounting and

help agencies ward off such an attack, reestablishing e- mail service.
Overall,

Financial Management Issues, before it was not effective at detecting the
however, once they learned of the the Education Task Force, House virus
early on and warning agencies virus, agencies responded promptly Committee
on Budget. about the threat. Consequently, most and appropriately. In
addition to agencies were affected. Some incurred discussing the virus, this
testimony

The Department of Education is the damage to systems and files, and many

addresses its impact on federal lead agency responsible for overseeing
others spent countless staff hours agencies as well as measures that can the
$75 billion annual federal

fending off the attack and be taken to mitigate the effects of investment in
support of education

reestablishing e- mail service. Overall, future attacks, which promise to be
programs. The Department is also however, once they learned of the

virus, agencies responded promptly on the collection of nontax delinquent
federal government may not yet have and appropriately. In addition to debt.
Among the options available for the right tools for identifying, discussing
the virus, this testimony

recovering these debts are Treasury's analyzing, coordinating, and addresses
its impact on federal

consolidated federal payment offset disseminating the type of information

agencies as well as measures that can program; wage garnishment; and the
that H. R. 4246 envisions collecting be taken to mitigate the effects of
transfer of nontax debt over 180 days from the private sector. future
attacks, which promise to be delinquent to Treasury for collection,
increasingly sophisticated and known as “cross- servicing.” GAO

T- AIMD- 00- 237, June 30, 2000 (15 damaging and harder to detect. discusses
(1) the status of nontax pages). District of Columbia

delinquent debts that agencies have Government: Management Reform T- AIMD-
00- 211, June 6, 2000 (4 transferred to Treasury for crossservicing Projects
Not Effectively Monitored, by pages). Financial Audits: American and
Treasury's efforts to Gloria L. Jarmon, Director, Health, Battle Monuments
Commission, by encourage these referrals, (2) Education and Human Services

David L. Clark, Jr., Director, Audit Treasury's cross- servicing process for
Accounting and Financial Management Oversight and Liaison, before the

collecting referred debts, (3) Issues, before the District of Columbia
National Security, Veterans Affairs, and Treasury's method for allocating
debts Subcommittee, House Committee on International Relations Subcommittee,
to private collection agencies, and (4) Appropriations.

House Committee on Government Treasury's estimated cross- servicing Reform.
costs and related fees earned on During the last three fiscal years, the
collections. D. C. government has proposed This testimony discusses GAO's

hundreds of management reform financial audits of the American Battle

T- AIMD- 00- 229, June 22, 2000 (18 initiatives that were estimated to save

Monuments Commission. GAO (1) pages). Critical Infrastructure millions of
dollars as well as improve describes the legislative initiatives

Protection: Comments on the government services. As of June 2000, during the
last several years to Proposed Cyber Security Information however, the
District had reported improve financial management across Act of 2000, by
Joel C. Willemssen, savings of only about $1. 5 million and

government and how GAO's audits of Director, Civil Agencies Information had
not consistently tracked the status

the commission fit into that larger Systems, before the Government of these
projects. Neither the D. C.

context, (2) discusses the history of Management, Information and

Financial Responsibility and the Commission's financial Technology
Subcommittee, House Assistance Authority nor the District accountability--
particularly the World Committee on Government Reform. could provide
adequate details on the War II memorial fund-- and (3)

goals achieved for all the projects that discusses the results of GAO's most

H. R. 4246, the proposed Cyber Security had been reported as completed or in
recent financial audits.

Information Act of 2000, would remove various stages of completion. The
barriers to information sharing District lacks a systematic process to T-
AIMD- 00- 213, June 8, 2000 (32 between government and private monitor these
management reform pages). Debt Collection: Treasury industry. In GAO's view,
the legislation projects and determine where savings Faces Challenges in
Implementing Its

would help build the meaningful or customer service improvements

Cross- Servicing Initiative, by Gary T. private- public partnerships that
are have been realized. Consequently, the

Engel, Associate Director, essential to protecting critical District cannot
say for certain how Governmentwide Accounting and

infrastructure assets. To successfully money earmarked for management
Financial Management Issues, before engage the private sector, however, the
reform has been spent or whether the the Government Management, federal
government itself must be a key goals of these initiatives have been
Information and Technology model of good information security.

realized. Subcommittee, House Committee on

Today, it is not. Significant computer Government Reform. security
weaknesses-- from poor

T- AIMD- 00- 240, July 11, 2000 (17 controls over sensitive systems and
pages). Federal Health Care: This testimony discusses the data to weak or
nonexistent continuity Comments on H. R. 4401, the Health Department of the
Treasury's progress

of service plans-- plague nearly every Care Infrastructure Investment Act of
in implementing the cross- servicing major agency. And, as seen in the 2000,
by Joel C. Willemssen, Director, provision of the Debt Collection recent
“ILOVEYOU” computer virus, Civil Agencies Information Systems,
Improvement Act of 1996. The act mechanisms already in place to ease and
Gloria L. Jarmon, Director, Health, includes several tools to facilitate
information sharing among federal Education, and Human Services collection
of defaulted obligations to agencies about impending threats have Accounting
and Financial Management the federal government. GAO focuses not been
working well. Moreover, the Issues, before the Government

Management, Information and Management: Small Business

Governmentwide and Defense Technology Subcommittee, House Administration
Needs Policies and Information Systems, before the Committee on Government
Reform. Procedures to Control Key IT Government Management, Information
Processes, by Joel C. Willemssen,

and Technology Subcommittee, House H. R. 4401 would establish a Health
Director, Civil Agencies Information

Committee on Government Reform. Care Infrastructure Commission

Systems, before the Senate Committee within the Department of Health and on
Small Business.

The unprecedented growth in use of Human Services (HHS) to design, the
Internet has revolutionized the way construct, and implement an As the Small
Business Administration much of the world communicates and immediate claim,
administration, (SBA) tries to transform itself into a

conducts business. Without proper payment resolution, and data 21st century
leading edge financial safeguards, this widespread collection system that
would initially institution, it needs to identify and

interconnectivity poses enormous be used by the Medicare part B address
operational problems that risks to America's computer systems program.
However, most Medicare have agencywide implications. and to the critical
operations and claims could be paid more quickly Although SBA plans to
improve its key

infrastructures they support. For using current processes by simply
information technology process, many example, hostile nations or terrorists
eliminating the mandatory delay in of the agency's policies and could use
cyber- based tools and

paying claims. One drawback to procedures for managing this critical
techniques to disrupt military eliminating this delay is that the area are
now in draft form or not yet operations and communications Supplementary
Medical Insurance

developed. SBA intends to pursue best networks. According to the National
Trust Fund, which funds part B, would practices for information technology
Security Agency, potential adversaries lose some of the interest it earns on
its

planning, monitoring, and evaluation, are developing a body of knowledge
balance. A drop in interest earnings but its current practices do not about
U. S. systems and about methods

could require additional generally adhere to defined processes.

to attack these systems. Information appropriations or an increase in In
particular, investment management sharing and coordination among
beneficiaries' premiums. Because a

efforts are limited largely to reviewing organizations are central to
producing

real- time claims processing system information technology proposals,
comprehensive and practical could open the process to a possible

architecture related activities are approaches and solutions to these risk
of improper payments,

carried out without a defined process, threats. The “ILOVEYOU”
virus is a appropriate internal controls are and software development and
case in point Because information needed. Current program safeguards,
acquisition practices are often ad- hoc.

sharing mechanisms were unable to such as the edit process, must not be In
the information security area, SBA

provide timely warnings, many entities compromised. Because a real- time
lacks centralized oversight of the

were caught off guard and forced to claims processing system is vulnerable
activities of its field and program take their networks off- line for hours.
to code manipulation, problem

offices. Also, periodic risk Data on possible threats-- viruses, providers
should be excluded from assessments have not been done on all hoaxes, random
threats, news events, participating, and adequate

mission- critical systems and security and computer intrusions-- must be
documentation controls must ensure training has not been given to
continually collected and analyzed. that the electronic trail is not lost or
employees and contractor staff. Appropriate warnings and response tampered
with. The project's return on Human capital management efforts are actions
must be effectively investment, links to a strategic plan,

limited to a non- information coordinated by strong partnerships to and
evidence of compliance with the technology training needs survey, and ensure
that the right data are in the organization's overall systems

a human capital assessment has not right place at the right time. Jointly
architecture must also be considered

been done to identify short- and longterm designed, built, and staffed

as well as the possibility of computer information technology mechanisms
among involved parties is viruses and computer attacks. Further, knowledge
skills and requirements. most likely to obtain critical buy- in and
developing a single real- time claims This testimony summarizes the May
acceptance. After determining what processing system for both Medicare

2000 report, GAO/ AIMD- 00- 170. information to collect and report, part B
and the Federal Employees guidelines and procedures must be Health Benefits
program would be T- AIMD- 00- 268, July 26, 2000 (21 established. At
present, there is a challenging because the systems are so pages). Critical
Infrastructure shortage of persons with the different.

Protection: Challenges to Building a knowledge, skills, and abilities to
Comprehensive Strategy for undertake these efforts.

T- AIMD- 00- 260, July 20, 2000 (11 Information Sharing and Coordination,
pages). Information Technology

by Jack L. Brock, Director,

T- AIMD- 00- 314, Sept. 11, 2000 (17 Policy Act of 2000, address the need

acquire and use information systems pages). Computer Security: Critical

for sustained and focused central across VA. No uniform mechanism is in
Federal Operations and Assets Remain leadership to improve the federal IT
place throughout VA that tracks IT at Risk, by Joel C. Willemssen,
performance track record. This spending; instead, VA's different offices
Director, Civil Agencies Information testimony describes the background of
use various mechanisms for tracking Systems, before the Government the
federal government's current

IT expenditures. VHA's Decision Management, Information and

information resources and technology Support System and VBA's Technology
Subcommittee, House management framework, explains

compensation and pension Committee on Government Reform.

existing state and foreign replacement project continue to face
governmentwide CIO models, challenges. Although VA has begun to This
testimony describes how the discusses the federal CIO approaches

address computer security dramatic increases in computer each legislative
proposal takes, and weaknesses, it will have few interconnectivity,
especially in use of discusses the type of leadership

guarantees that financial information the Internet, although beneficial,
pose responsibilities GAO believes a federal and sensitive medical records
are significant risks to computer systems CIO should posses.

adequately protected until it develops and to the critical operations and

and implements a comprehensive, infrastructure they support. It focuses

T- AIMD- 00- 321, Sept. 21, 2000 (31 coordinated security management on
weaknesses at 24 major federal pages). VA Information Technology: program.
agencies and links those weaknesses Progress Continues Although to the risks
they present to federal Vulnerabilities Remain, by Joel C. T- AIMD- 00- 323,
Sept. 19, 2000 (19 operations and assets. GAO reports Willemssen, Director,
Civil Agencies pages). Financial Management: that although the nature of
risk varies, Information Systems, before the

Financial Management Challenges control weaknesses across agencies Oversight
and Investigations Remain at the Department of are strikingly similar. GAO
describes Subcommittee, House Committee on Education, by Gloria L. Jarmon,
six areas of general controls-- security Veterans' Affairs.

Director, Health, Education, and program management, access controls, Human
Services Accounting and application software development and

This testimony focuses on the status of Financial Management Issues, before
change controls, segregation of duties, the Department of Veterans Affairs'
the Oversight and Investigations operating system controls, service (VA)
efforts in seven areas of its Subcommittee, House Committee on continuity--
and the specific information technology (IT) program: Education and the
Workforce. weaknesses that were most improving its process for selecting,
widespread. controlling and evaluating IT

Since 1995, auditors at the Department investments; filling the chief of
Education have reported the same T- AIMD- 00- 316, Sept. 12, 2000 (22
information officer position;

serious internal control weaknesses pages). Federal Chief Information
developing a strategy for reengineering each year. These problems have
Officer: Leadership Needed to its business processes; completing a

undermined the agency's ability to Confront Serious Challenges and
departmentwide integrated systems

provide reliable financial information Emerging Issues, by David L. McClure,
architecture; tracking its IT to decision makers inside and outside
Associate Director, Governmentwide expenditures; implementing the the
agency. Because of its financial and Defense Information Systems, Veterans
Health Administration (VHA) management weaknesses, Education's before the
Government Management, Decision Support System and the

accounting system was unable to Information and Technology Veterans Benefits
Administration's perform a year- end closing process or Subcommittee, House
Committee on (VBA) compensation and pension produce automated consolidated
Government Reform. replacement project; and improving financial statements.
Staff turnover the department's computer security. also contributed to this
weakness.

Although the government has Progress has been made in some of Furthermore,
the agency was unable to improved its information technology these areas,
such as IT investment provide adequate support for about (IT) management and
agencies have decision- making and selecting a chief

$800 million in its net position balance, taken steps to address critical IT
information officer. In other areas, and it processed many transactions
management shortcomings, agencies plans have changed-- the Department from
prior fiscal years as fiscal year continue to be plagued by weaknesses no
longer plans to develop an overall 1999 transactions. In addition, auditors
in various areas. Two legislative

strategy for reengineering its business were unable to determine whether
proposals, the Chief Information processes to function as “One
VA,” nor beginning balances for accounts

Officer (CIO) of the United States Act has it defined the integrated IT

payable and related accruals were of 2000 and the Federal Information
architecture needed to efficiently

accurate. Independent auditors for

1999 cited weaknesses in the financial T- AIMD- 00- 334, Sept. 27, 2000 (15
2005, according to the Gartner Group. reporting process, inadequate pages).
Financial Management: USDA This testimony focuses on key aspects
reconciliations of financial accounting

Continues to Face Major Financial of the evolving e- government records, and
inadequate controls over Management Challenges, by Linda environment,
including the statutory

information systems. The auditors also Calbom, Director, Accounting and and
policy framework, key efforts to reported that Education did not fully
Information Management Division, implement electronic government comply with
three laws. The internal before the Research, Nutrition and programs, and
the major challenges

control weaknesses must also be General Legislation Subcommittee,
confronting both government and the addressed to reduce the potential for

Senate Committee on Agriculture, private sector in making the transition
fraud, waste, and abuse. Areas of Nutrition, and Forestry. to on- line
business and service concern include student financial environments.
assistance programs and computer During the last two years, financial
security.

managers at the Department of

T- AIMD/ NSIAD- 00- 163, May 9, 2000 Agriculture (USDA) have made a (52
pages). Department of Defense: T- AIMD- 00- 330, Sept. 27, 2000 (25
commitment not only to resolve Progress in Financial Management pages). FAA
Computer Security: financial management weaknesses that Reform, by Jeffrey
C. Steinhoff, Acting Actions Needed to Address Critical have prevented the
agency from Assistant Comptroller General, before Weaknesses That Jeopardize
Aviation receiving an unqualified opinion on its

the Government Management, Operations, by Joel C. Willemssen,

financial statements but also to Information and Technology Director, Civil
Agencies Information achieve its long- term goal of financial Subcommittee,
House Committee on Systems, before the House Committee accountability. The
one notable Government Reform. on Science. exception involves Rural
Development, one of USDA's Financial management problems at the In the area
of personnel security, the component agencies. Rural Defense Department
(DOD)-- which Federal Aviation Administration (FAA) Development has made
slow progress

oversees an estimated $1 trillion in appears to perform appropriate in
improving credit program costs and assets, has nearly $1_ trillion in
background searches for federal has missed several deadlines because

reported liabilities, and had a net cost employees, but many top secret of a
shortage in both staff and funding of operations of $378 billion in fiscal
reinvestigations of senior personnel resources. As a result, USDA is likely
year 1999-- represent the single largest are past due-- some by more than
five several years away from achieving

obstacle that must be overcome before years. FAA also has yet to complete
financial accountability. an unqualified opinion can be rendered background
searches on thousands of on the U. S. government's consolidated contractor
employees. As to facilities' T- AIMD/ GGD- 00- 179, May 22, 2000 financial
statements. So far, no major physical security, FAA has identified (19
pages). Electronic Government: part of DOD has been able to pass the
significant weaknesses, and air traffic Federal Initiatives Are Evolving
test of an independent audit. Pervasive

control (ATC) facilities have yet to be Rapidly But They Face Significant
weaknesses in DOD's financial assessed and accredited as secure.

Challenges, by David L. McClure, management systems, operations, and FAA
does not know how vulnerable Associate Director, Governmentwide controls led
GAO to put DOD's the majority of its operational ATC

and Defense Information Systems, financial management on its 1995 list
systems is and cannot adequately before the Government Management, of
government areas at high risk for

protect them until it performs the Information and Technology

waste, fraud, abuse, and appropriate risk assessments and

Subcommittee, House Committee on mismanagement. DOD has made addresses
identified weaknesses. Government Reform.

genuine progress in many areas. GAO Although FAA has established an has seen
a strong commitment by the information systems security

Electronic commerce and business DOD Comptroller and his counterparts

management structure, it still lacks a strategies made possible by the

in the military services to address comprehensive security program.
widespread Internet access and deeply rooted problems. This FAA'S efforts to
ensure service interconnected systems are

testimony outlines DOD's most continuity are limited and it has not yet
transforming how organizations, both

difficult financial management fully implemented an intrusion public and
private, will operate in the challenges and describes the initiatives
detection capability that will allow it to coming decade. Spending by
federal,

that are in place or planned to deal quickly detect and respond to state,
and local governments on with them. malicious intrusions.

electronic government is expected to quadruple during the next five years,
T- AIMD/ NSIAD- 00- 214, June 22, from $1. 5 billion today to $6. 2 billion
in 2000 (18 pages). Foreign Affairs: Effort

to Upgrade Information Technology ability to produce timely and accurate

T- GGD/ AIMD- 00- 91, Feb. 15, 2000 (15 Overseas Faces Formidable financial
information but also impairs

pages). 2000 Census: Status of Key Challenges, by Jack L. Brock, Director,

efforts to improve the economy and Operations, by J. Christopher Mihm,
Governmentwide and Defense efficiency of its operations. DOD has

Associate Director, Federal Information Systems, before the House made
genuine progress in many areas, Management and Workforce Issues, Committee
on International Relations. and the DOD Comptroller and his before the
Census Subcommittee, counterparts have shown a strong House Committee on
Government The Overseas Presence Advisory Panel commitment to addressing the
Reform.

found that many U. S. embassies and department's serious financial

missions are equipped with obsolete management problems. However, In a
little more than six weeks-- on information technology systems, major
problems remain that are Census Day (April 1, 2000)-- the which prevent
efficient pervasive, long- standing, deeply decade- long process of
researching, communication and effective

rooted, and complex in nature. planning, testing, and evaluating information
sharing and storage. In procedures for conducting the nation's

particular, many systems within U. S. T- AIMD/ OSI- 00- 251, July 12, 2000
(32 largest peace- time mobilization will embassies are incapable of simple
pages). Medicare Improper Payments:

come to a close. At this critical electronic communications across
Challenges for Measuring Potential juncture, it is important to examine the
department lines and most are Fraud and Abuse Remain Despite state of the
census, the progress made disparate and not interconnected. In Planned
Enhancements, by Gloria L. to ensure a complete and accurate

the Panel's judgment, these problems, Jarmon, Director, Health, Education,

enumeration, and the level of risk that coupled with such other problems as
and Human Services Accounting and

remains. Two recent GAO reports poor facilities and outmoded Financial
Management Issues, before discussed operational uncertainties administrative
and human resource the Task Force on Health Care, House

that threaten a successful population management practices, seriously
Committee on the Budget.

count. (See GAO/ GGD- 00- 6, Dec. 1999, undermine the effective
representation and GAO/ AIMD- 00- 61, Feb. 2000.) This of U. S. interests
abroad. This Results from a recent Department of testimony elaborates on the
following testimony focuses on (1) the State Health and Human Services (HHS)
three operational uncertainties Department's efforts to implement the

Office of the Inspector General (OIG) highlighted in these reports: (1)
Panel's recommendations and (2) the study indicate that, of the $164 billion

achieving the Census Bureau's mail challenges and risks the Department in
fiscal year 1999 Medicare fee- forservice response rate objective, (2)
collecting will face as it proceeds.

claim payments, a projected accurate and timely data from $13. 5 billion was
paid improperly for nonrespondents, and (3) conducting

T- AIMD/ NSIAD- 00- 264, July 20, 2000 reasons ranging from inadvertent data
capture options. (24 pages). Department of Defense: errors to outright fraud
and abuse. Implications of Financial Management Because the OIG's
methodology was

T- GGD/ AIMD- 00- 119, Mar. 14, 2000 Issues, by Jeffrey C. Steinhoff, not
designed to identify all types of (16 pages). 2000 Census: Update on
Assistant Comptroller General, before potentially fraudulent or abusive
Essential Operations, by J. Christopher the Defense and International
Affairs

activity, it does not estimate the full Mihm, Associate Director, Federal
Task Force, House Committee on extent of improper Medicare fee- forservice

Management and Workforce Issues, Budget. payments. However, the Health
before the Census Subcommittee, Care Financing Administration (HCFA) House
Committee on Government Material financial management has begun three
projects that could

Reform. weaknesses at the Defense

enhance HCFA's ability to uncover Department (DOD) continue to potential
fraud and abuse and to This report updates the status of key represent the
single largest obstacle to determine the extent of the payments census-
taking operations. GAO achieving an unqualified opinion on attributable to
potential fraud and

discusses developments in such the U. S. government's consolidated abuse. In
addition, the use of carefully essential areas as (1) outreach and financial
statements. So far, no major selected detection techniques to promotion, (2)
field follow- up part of DOD has been able to pass the identify potential
fraud could help

operations, and (3) data capture. GAO test of an independent audit because
HCFA arrive at a more comprehensive

also discusses steps that the Bureau of pervasive weaknesses in the

measurement of improper payments has taken to help ensure that the

military's financial management and develop cost- effective internal census
questionnaires do not contain

systems, operations, and controls. The controls to combat them.

the same misprint in mailing addresses lack of such key controls and

found in the 120 million advance information not only hampers DOD's
notification letters sent out recently.

T- GGD/ AIMD- 00- 133, Mar. 28, 2000

T- GGD/ AIMD- 00- 136, Apr. 5, 2000 (17 Business Practice, Performance (45
pages). Tax Administration: IRS' pages). 2000 Census: Progress Report
Management, and Information

2000 Tax Filing Season and Fiscal Year on the Mail Response Rate and Key
Technology Challenges, by Margaret T. 2001 Budget Request, by James R.
Operations, by J. Christopher Mihm, Wrightson, Associate Director, Tax
White, Director, Tax Policy and

Associate Director, Federal Policy and Administration Issues, Administration
Issues, before the Management and Workforce Issues,

before the Government Management, Oversight Subcommittee, House before the
Census Subcommittee,

Information and Technology Committee on Ways and Means. House Committee on
Government Subcommittee, House Committee on Reform. Government Reform. GAO
makes several points about the 2000 tax filing season. The Internal This
testimony focuses on the mail

The Internal Revenue Service (IRS), Revenue Service (IRS) made several
response rate and its implications for acknowledging its serious,
longstanding important changes to its taxprocessing the timely and accurate
completion of management problems and

systems before the 2000 the Bureau's nonresponse follow- up its history of
ineffective attempts to filing season, and those systems have

workload. GAO also discusses the deal with them, has revised its mission not
experienced significant problems. status of specific enumeration efforts

statement to more fully embrace The use of electronic filing continues

that have taken place during the last customer service and fairness to to
grow, and telephone service has month, including (1) update/ leave, a

taxpayers as core organizational improved, although it has yet to reach
procedure used to count people in values. IRS has also launched a the level
of service achieved in 1998. small towns and rural areas; (2)

modernization strategy that IRS has requested $8. 9 billion for fiscal
Service Based Enumeration, used to encompasses major changes in the year
2001, a nine- percent increase over count persons with no usual residence;
agency's organizational structure, the agency's operating level for fiscal
and (3) Questionnaire Assistance business practices, human capital and year
2000. IRS has also requested a

Centers, which are designed to help performance management systems,
supplemental appropriation of $39. 8

people, especially those who speak and information systems. The million to
increase staffing levels in little English, complete their census magnitude
of this modernization effort several of the agency's programs. forms. GAO
also discusses how well

makes it a high- risk venture that will Although many aspects of the
initiative the Bureau's data capture centers are

take years to fully implement. seem appropriate, GAO is concerned

handling production- level workloads. Although IRS has taken important (1)
about IRS' ability to implement the steps during the last year, some of its

initiative given its past history of being T- GGD/ AIMD- 00- 141, Apr. 7,
2000 (27 most important and difficult work lies

unable to fill enforcement positions pages). Office of Management and ahead.
This testimony discusses the

funded by Congress and (2) that the Budget: Future Challenges to business
practice, performance initiative would increase staffing for Management, by
David M. Walker,

management, and information IRS' toll- free telephone assistance Comptroller
General of the United technology challenges facing IRS. program. Congress
should consider States, before the Government withholding approval of the
requested Management, Information and

T- GGD/ AIMD- 00- 150, Apr. 20, 2000 increase for telephone service until
Technology Subcommittee, House (11 pages). U. S. Customs Service: IRS
provides a more realistic level of Committee on Government Reform.
Observations on Selected Operations the service that it expects to provide
in

and Program Issues, by Laurie fiscal year 2001. IRS' request included

In earlier testimony before Congress Ekstrand, Director, Administration of
$1. 58 billion for its information (GAO/ T- GGD/ AIMD- 99- 65, Feb. 1999),

Justice Issues, and Randolph C. Hite, systems appropriation and $494 GAO
discussed in detail the Office of Associate Director, Governmentwide million
for its multiyear capital

Management and Budget's (OMB) and Defense Information Systems account. The
$494 million request is

effectiveness in a range of specific Issues, before the Government not
adequately justified, and Congress management areas. The Comptroller
Management, Information and should consider denying the request General's
statement builds on this by Technology Subcommittee, House and directing IRS
to develop a credible emphasizing the broader challenges

Committee on Government Reform. and verifiable budget request for the facing
the nation and the federal capital account. Finally, GAO is

government and their implications for This testimony provides GAO's

concerned that IRS' budget request central leadership approaches, in
observations on (1) the Customs does not provide clear links between
general, and for OMB, in particular. Service's development of a Resource the
resources being requested and Allocation Model, (2) an Automated expected
results. T- GGD/ AIMD- 00- 144, Apr. 10, 2000

Commercial Environment, and (3) a (14 pages). IRS Modernization:

recently issued GAO report on

Customs' personal searches of airline

T- GGD/ AIMD- 00- 164, May 11, 2000 agencies. The bill would also generally

passengers. (See GAO/ GGD- 00- 38, Mar. (19 pages). 2000 Census: Status of
preclude delinquent taxpayers from 2000.) These three issues are all
Nonresponse Follow- up and Key obtaining federal loans (other than extremely
important to optimizing the

Operations, by J. Christopher Mihm, disaster loans) or loan insurance or
quality and efficiency of Customs' Associate Director, Federal guarantees.
GAO supports the idea of operations. Management and Workforce Issues,

barring delinquent taxpayers from before the Census Subcommittee, receiving
federal contracts, loans, loan T- GGD/ AIMD- 00- 154, May 3, 2000 (11 House
Committee on Government guarantees, and insurance. In fact, as pages). IRS
Modernization: Long- term Reform. far back as 1992, GAO urged Congress
Effort Under Way, but Significant to consider whether tax compliance
Challenges Remain, by James R. White, This testimony updates the status of
should be a prerequisite for receiving a Director, Tax Policy and the 2000
census. Overall, initial Census federal contract. However, GAO
Administration Issues; Randolph C. Bureau data on the conduct of the

cautions that there are significant Hite, Associate Director,

decennial count is encouraging, with implementation issues with H. R. 4181,
Governmentwide and Defense major operations reportedly

particularly with respect to the federal Information Systems Issues; and
proceeding on schedule and generally acquisition process, and GAO Gregory D.
Kutz, Associate Director,

performing as planned. Particularly recommends a phased- in Governmentwide
Accounting and

noteworthy is the 65 percent initial implementation of the provisions and

Financial Management Issues, before response rate, which surpassed
additional standards for when the Government Management, expectations. The
Bureau is now delinquent taxpayers should be barred. Information and
Technology working on nonresponse follow- up- Subcommittee, House Committee
on

the largest, most complex, and costly T- GGD/ AIMD- 00- 256, July 20, 2000
Government Reform; part of the entire census. This (21 pages). Small
Business

testimony focuses on the progress of Administration: Steps Taken to Better
Congress passed the IRS Restructuring

the nonresponse follow- up, paying Manage Its Human Capital, but More and
Reform Act of 1998 to signal its particular attention to the response Needs
to Be Done, by Michael Brostek, concern that the Internal Revenue rate, its
impact on the nonresponse Associate Director, Federal Service (IRS) had been
follow- up workload, and the Bureau's Management and Workforce Issues,
overemphasizing revenue production

inability to complete nonresponse before the Senate Committee on Small at
the expense of fairness and follow- up on schedule while Business.
consideration of taxpayer interests.

maintaining data quality. GAO also The act mandated certain taxpayer

discusses the Bureau's efforts to The Small Business Administration

protections as well as more redeliver questionnaires initially found (SBA)
has developed a shared vision, fundamental changes to the agency's to be
undeliverable and the status of which includes transitioning its mission and
organizational structure.

the Bureau's data capture operations. employees from making and servicing

GAO testified that IRS is as challenged loans to primarily reaching out to
new today as it was two years ago, when T- GGD/ AIMD- 00- 167, May 9, 2000
(15 markets and overseeing its privatesector the legislation was passed. IRS

pages). Debt Collection: Barring partners. SBA has also begun to continues
to face serious operational Delinquent Taxpayers From Receiving take steps
to better manage its human problems in two key areas:

Federal Contracts and Loan capital activities, including workforce
enforcement and customer service. Assistance, by Cornelia M. Ashby, planning
efforts. More needs to be For example, shortcomings in the

Associate Director, Tax Policy and done, however, including (1) management
of billions of dollars of Administration Issues, and Gregory D. completing
its efforts to identify the unpaid tax assessments have placed a Kutz,
Associate Director, knowledge, skills, abilities, and other burden on
taxpayers and caused the Governmentwide Accounting and

characteristics its employees will need government to lose potentially
billions Financial Management Issues, before to perform successfully in
SBA's new of dollars in revenue. Also, taxpayers

the Government Management, business environment; (2) estimating remain
frustrated by their inability to Information and Technology

the number of employees with those reach IRS by telephone. IRS has
Subcommittee, House Committee on skills who will be needed; (3) developed a
massive modernization Government Reform.

developing a succession plan for effort to address its long- standing senior
leaders and reinstating problems, but significant challenges

H. R. 4181 is proposed legislation that candidate development programs for
remain in the areas of performance

would ban delinquent federal debtors, these leaders; and (4) ensuring that
management and information systems

including delinquent taxpayers, from employees receive adequate training to
modernization. obtaining contracts with government perform their jobs well.
Although SBA

plans to develop a workforce found with the management of the more promise,
although many transformation plan by October 2000,

stockpiles, discusses the results of its initiatives are still in the early
stages it could take years to fully implement

actual count of stockpiled supplies, and much work remains. SSA needs to it.
and provides information on the

fully assess the skills that its progress made since GAO's last report
workforce will need to serve its

T- HEHS/ AIMD- 00- 43, Nov. 9, 1999 was issued.

customers in the future. SSA also (20 pages). Social Security: The needs to
ensure continuity in President's Proposal, by David M.

T- HEHS/ AIMD- 00- 75, Feb. 10, 2000 leadership through ongoing succession
Walker, Comptroller General of the (29 pages). SSA Customer Service:
planning efforts. Without a vision for United States, before the House Broad
Service Delivery Plan Needed to future service followed by a more Committee
on Ways and Means.

Address Future Challenges, by Cynthia detailed service delivery plan, SSA M.
Fagnoni, Director, Education,

cannot be sure that its investments in The President's Social Security
Workforce and Income Security Issues, technology and human capital-- that
is, transfer proposal, embodied in S. 1831 before the Human Resources its
workforce-- are consistent with and and H. R. 3165, would not in any way

Subcommittee, House Committee on fully support its future approach to reform
the basic Social Security Ways and Means, and Social Security delivering
services. program, although the administration

Subcommittee, House Committee on is committed to long- term reform. The Ways
and Means.

T- HEHS/ AIMD- 00- 77, Feb. 8, 2000 proposal seeks to increase the (20
pages). Medicare: Program Reform likelihood that projected unified The
Social Security Administration and Modernization Are Needed But surpluses
would be preserved for (SSA) will be challenged to maintain a Entail
Considerable Challenges, by Social Security and debt reduction. It high
level of service to the public in the David M. Walker, Comptroller General

would provide additional program next decade and beyond. Demand for of the
United States, before the Senate funding by transferring general funds
services is expected to grow Special Committee on Aging. to the Old Age and
Survivors Insurance

significantly. At the same time, the and Disability Insurance trust funds.

expectations and needs of SSA's The Comptroller General's statement

This shift in program financing would customers are changing. Some want
discusses the competing concerns at reduce publicly held debt but would

faster, more convenient service, while the heart of the Medicare reform not
modify the program's underlying others, such as non- English speakers debate
and provides a conceptual commitments for the future. The and the many
beneficiaries with framework for evaluating the possible proposed transfer,
by extending trust

mental impairments, may require combinations of reform options. To fund
solvency, could create additional help from SSA staff. SSA's

qualify as meaningful reform, a complacency about the program's

ability to respond to these challenges proposal should make a significant
financing, making it more difficult to will be difficult because the number
of down payment toward ensuring engage in substantive program reform. SSA
employees who retire is expected Medicare's long- range financial to peak at
the same time that large

integrity and sustainability-- the most T- HEHS/ AIMD- 00- 59, Mar. 8, 2000
(4 increases will occur in applications for critical issues facing the
program. pages). Combating Terrorism: benefits. Although GAO has Fundamental
reforms are vital to Chemical and Biological Medical recommended since 1993
that SSA reducing the program's growth, which

Supplies Are Poorly Managed, by prepare a service delivery plan, the
threatens to absorb ever- increasing Cynthia Bascetta, Associate Director,
agency is only now beginning to shares of the nation's budgetary and
Veterans' Affairs and Military Health develop a broad vision for customer
fiscal resources. At the same time, Care Issues, before the National service
for 2010. In the meantime, SSA

Medicare is outmoded from a Security, Veterans Affairs, and is counting on
efficiencies from programmatic perspective. To address International
Relations Subcommittee, technology to help it cope with its

to need for an updated benefit package House Committee on Government rising
workload. SSA has had mixed and adequate tools to moderate Reform. success
with its information program spending, proposals have technology
initiatives, however, and been advanced that would expand This testimony
draws on a recent GAO the benefits from its technology benefits while
introducing changes to report on the management of federal investments have
largely been unclear.

make beneficiaries more costconscious medical stockpiles that would be used
On the other hand, SSA's efforts to and incentives to make to treat
civilians in a chemical or prepare for the rising number of health care
providers efficient. Ideally,

biological terrorist attack. (See retirements among its among its own the
unfunded promises associated GAO/ HEHS/ AIMD- 00- 36, Oct. 1999.)

workforce and changing customer with today's program should be GAO
highlights the problems that it needs and expectations have shown addressed
before or concurrent with

proposals to add new ones, such as programs. Congress faces the difficult
economic prosperity and projected prescription drug coverage. To so decision
of how best to guarantee the federal surpluses provide an otherwise might be
politically Medicare program's sustainability opportunity to address the
structural attractive but not fiscally prudent. If while being mindful of
the plight of imbalances in Medicare, Social benefits are added,
policymakers need

many seniors who cannot afford the Security, and other entitlement to
consider targeting strategies to fully latest pharmaceutical breakthroughs.
programs. Congress faces the difficult offset their costs. Because of the
size Congress and the President may decision of how best to guarantee the

of Medicare's unfunded liability, it is ultimately decide to include some
form Medicare program's sustainability realistic to expect that reforms

of prescription drug coverage as part while being mindful of the plight of
intended to bring down future costs of Medicare reform. Care must be

many seniors who cannot afford the will have to proceed incrementally. As
taken, however, to ensure that any

latest pharmaceutical breakthroughs. reform options come under greater
expansion of the program is Congress and the President may scrutiny, the
importance of design accompanied by other programmatic ultimately decide to
include some form details should not be overlooked.

reforms that will sustain Medicare's of prescription drug coverage as part
GAO's work on efforts to implement long- term financial integrity. This

of Medicare reform. Care must be recent reforms suggests that those
testimony discusses (1) the factors

taken, however, to ensure that any details will determine whether reform
contributing to the growth in expansion of the program is options will be
both effective and prescription drug spending and efforts accompanied by
other programmatic acceptable.

to control that growth and (2) the reforms that will sustain Medicare's
design and implementation issues long- term financial integrity. This T-
HEHS/ AIMD- 00- 99, Feb. 15, 2000 associated with proposals to improve
testimony discusses (1) the factors (20 pages). Prescription Drugs:

seniors' access to affordable contributing to the growth in Increasing
Medicare Beneficiary prescription drugs. prescription drug spending and
efforts Access and Related Implications, by to control that growth and (2)
the David M. Walker, Comptroller General

T- HEHS/ AIMD- 00- 100, Feb. 16, 2000 design and implementation issues of
the United States, before the Health (20 pages). Prescription Drugs:
associated with proposals to improve Subcommittee, House Committee on

Increasing Medicare Beneficiary seniors' access to affordable Ways and
Means.

Access and Related Implications, by prescription drugs. William J. Scanlon,
Director, Health Concerns are growing about gaps in Financing and Public
Health Issues,

T- HEHS/ AIMD- 00- 103, Feb. 24, 2000 the Medicare program, most notably
before the Health and Environment

(23 pages). Medicare Reform: Leading the lack of outpatient prescription
Subcommittee, House Committee on Proposals Lay Groundwork, While drug
coverage, which may leave the Commerce.

Design Decisions Lie Ahead, by David most vulnerable program beneficiaries
M. Walker, Comptroller General of the with high out- of- pocket costs that
they Concerns are growing about gaps in United States, before the Senate can
ill afford. Nearly one- third of the Medicare program, most notably
Committee on Finance. Medicare beneficiaries lacked the lack of outpatient
prescription prescription drug coverage in 1996. At

drug coverage, which may leave the The Comptroller General's statement

the same time, however, the long- term most vulnerable program beneficiaries
focuses on two leading Medicare cost pressures confronting the

with high out- of- pocket costs that they reform proposals: the President's
Plan Medicare program are considerable. A

can ill afford. Nearly one- third of to Modernize and Strengthen Medicare
consensus appears to be emerging that Medicare beneficiaries lacked for the
21st Century and S. 1895, substantive financing and

prescription drug coverage in 1996. At commonly known as the Breaux- Frist
programmatic reforms are needed to the same time, however, the long- term
proposal. Both proposals recognize the put Medicare on a sound footing in
the cost pressures confronting the need for more comprehensive reform-
future. These reforms are vital to Medicare program are considerable. A a
position consistent with GAO's belief reducing the program's growth, which

consensus appears to be emerging that that the unfunded promises associated
threatens to consume ever- larger substantive financing and with today's
program should be shares of the nation's budgetary and

programmatic reforms are needed to addressed before adding new benefits,
economic resources. Continuing put Medicare on a sound footing in the such
as prescription drug coverage. economic prosperity and projected

future. These reforms are vital to Such additions must be considered in
federal surpluses provide an reducing the program's growth, which

the context of broader efforts to opportunity to address the structural
threatens to consume ever- larger correct Medicare's current fiscal
imbalances in Medicare, Social shares of the nation's budgetary and
imbalance and sustain the long- term Security, and other entitlement
economic resources. Continuing

viability of this popular program. Also,

any reform package should include a processing problems and better target
attorneys would shortchange mechanism to monitor aggregate

its corrective actions. Furthermore, beneficiaries. SSA indicated that it
program costs over time and establish because some issues affecting VBA's

might need to make significant funding thresholds that would trigger a
performance are a function of program modifications to its information call
for fiscal action. In the case of design, more fundamental changes systems
to issue joint checks or pay both proposals, the details will need to may
have to be considered to realize

attorneys who represent SSI be worked out. And those details will
significant improvements. recipients. determine whether the reforms will be
effective and acceptable. T- HEHS/ AIMD- 00- 166, June 14, 2000

T- NSIAD/ AIMD- 00- 116, Mar. 8, 2000 (15 pages). Social Security (15
pages). Defense Acquisitions:

T- HEHS/ AIMD- 00- 146, May 18, 2000 Administration: Paying Attorneys Who
Observations on the Procurement of (20 pages). Veterans Benefits Represent
Disability Applicants, by the Navy/ Marine Corps Intranet, by
Administration: Problems and Barbara Bovbjerg, Associate Director, Allen Li,
Associate Director, Defense Challenges Facing Disability Claims Education,
Workforce, and Income Acquisitions Issues, and Jack L. Brock,

Processing, by Cynthia Bascetta, Security Issues, before the Social
Director, Governmentwide and Associate Director, Veterans' Affairs Security
Subcommittee, House Defense Information Systems, before and Military Health
Care Issues, before Committee on Ways and Means.

the Military Readiness Subcommittee, the Oversight and Investigations House
Committee on Armed Services, Subcommittee, House Committee on

Often when applicants are found and Military Research and

Veterans' Affairs. eligible for Disability Insurance (DI) Development
Subcommittee, House benefits, the Social Security Committee on Armed
Services. Claims processing in the disability Administration (SSA) pays
attorneys

compensation program is done by the representing them directly from the The
Navy's strategy for acquiring and Veterans Benefits Administration
beneficiaries' past- due benefits. implementing a Navy/ Marine Corps (VBA).
Congress, the Department of Complaints about the time it takes SSA Intranet
has several weaknesses that Veterans Affairs, and veterans' service to pay
the attorneys and recent put this effort at unnecessary risk. The
organizations have been concerned legislative changes to the attorney

Navy/ Marine Corps Intranet is about the program for years. The payment
process that include intended to serve about 360,000 users concerns have
focused on the collecting a user fee for paying the

in the United States, Guantanamo Bay, backlogs of claims, long waits for
attorneys have raised questions about Puerto Rico, and Iceland. The Navy
disability decisions, and the poor whether additional changes are

plans to acquire intranet capabilities quality of these decisions, all of
which

needed. A recent legislative proposal from commercial vendors, which will
have undermined the quality of service calls for eliminating this user fee
if SSA own and maintain all required desktop provided to veterans. VBA's
problems

does not pay attorneys within 30 days, and network hardware and software
with large backlogs and long waits for but it may sometimes be difficult for
and provide all required information

decisions have not improved, despite SSA to meet this deadline. Three
technology services. The Navy has years of studying these problems.

possible changes to the attorney fee been working to award a contract in
Moreover, VBA's new quality payment process include whether (1)

June 2000-- an aggressive deadline set measurement system shows that joint
checks for past- due benefits by the military services in order to nearly
one- third of its decisions are

should be issued to the beneficiary and have initial intranet capabilities

incorrect or have technical or the attorney, (2) the dollar limit on
available by December 2001. However, procedural errors. Many performance
certain attorney fees should be raised,

the Navy's request for proposals was problems stem from the process's

and (3) SSA's attorney fee payment issued without (1) developing a formal
complexity, which is growing as the process should be expanded to the

analysis of program alternatives and number of service- connected
Supplemental Security Income (SSI) completing a business case analysis to
disabilities per veteran increases and program. These changes would have
determine an appropriate acquisition judicial review requires more policy
and administrative implications strategy for the proposed Intranet; (2)

procedures and documentation. that need to be considered. Some of resolving
key program issues, such as

Although VBA has begun several the changes could increase attorney how the
intranet is to be managed efforts to streamline its claimsprocessing

representation for disability applicants within the Navy, how it will be
funded, performance, it is unclear and they have some drawbacks. For and how
its information technology how much improvement will result. example,
issuing joint checks to the

and other personnel may be affected Also, VBA may need to collect and
beneficiary and the attorney might

by the Intranet; and (3) taking risk analyze additional case- specific data
to delay payments to the beneficiary and mitigation steps, such as testing
the better understand its claims might increase the chance that proposed
approach on a smaller scale.

GAO also cites several shortcomings in U. S. airspace carries by far the
largest Aviation Security System, by Gerald

the Office of the Secretary of Defense's volume of air traffic in the
world-- a Dillingham, Associate Director,

oversight of the Navy Intranet effort. volume that is expected to rise
Transportation Issues, before the

significantly within the decade. If not Aviation Subcommittee, Senate T-
NSIAD/ AIMD- 00- 254, July 19, 2000 managed effectively, this projected
Committee on Commerce, Science and (14 pages). State Department: Progress

growth could affect safety and cause Transportation.

and Challenges in Managing for aviation gridlock. The limited window
Results, by Benjamin F. Nelson, of opportunity to address this situation

This testimony discusses the Federal Director, International Relations and

has prompted the Federal Aviation Aviation Administration's efforts to

Trade Issues, before the National Administration (FAA) to undertake
implement and improve security in the Security, Veterans Affairs, and
efforts to improve its performance and

air traffic control computer systems International Relations Subcommittee,
Congress to provide the agency with and airport passenger screening House
Committee on Government greater flexibility in procurement and

checkpoint areas. GAO's testimony is Reform. personnel matters. Continuing
based on earlier reports on computer dissatisfaction with FAA's efforts,

security and on ongoing work in this The State Department recognizes

however, has led to proposals to area. GAO identifies security problems many
of its critical management

overhaul the agency's organizational in both the air traffic control
computer challenges and has devoted substantial

structure. This testimony (1) highlights systems and in the performance of

resources to overcoming them. State the key areas that have hampered
checkpoint screeners. has made considerable progress in FAA's ability to
achieve desired many difficult areas but still faces

outcomes, (2) discusses various

GGD

significant obstacles. Specifically, proposals for restructuring the agency,
State needs to improve the security of and (3) describes the steps that FAA
AIMD/ GGD- 00- 49, Dec. 16, 1999 (42 U. S. personnel and facilities at and
Congress can take to help the

pages). Year 2000 Computing overseas locations in a cost- effective

agency address its challenges more Challenge: Readiness of FBI's National
and timely manner. It also needs to effectively and efficiently. Instant
Criminal Background Check determine the right size and location of System
Can Be Improved. the U. S. overseas presence to both

T- RCED/ AIMD- 00- 93, Feb. 16, 2000 improve the efficiency of operations

(11 pages). Forest Service: Status of The FBI's National Instant Criminal
and reduce the security burden. In Efforts to Improve Accountability, by
Background Check System is a addition, State should better utilize the

Barry T. Hill, Associate Director, computer system that, in concert with
Government Performance and Results

Energy, Resources, and Science Issues, other FBI and state- run systems, is

Act by demonstrating its level of before the Interior and Related used to do
presale background checks success in achieving desired outcomes

Agencies Subcommittee, House on persons seeking to buy firearms.

or the way in which its actions actually Committee on Appropriations. This
report, which summarizes the led to achieving desired goals. State

information presented by GAO at a had made many improvements in its

This testimony, which draws on two congressional briefing, evaluates the

information and financial management recent reports (GAO/ RCED/ AIMD- 002,
FBI's efforts to make the system Year systems but faces continuing

Oct. 1999, and GAO/ RCED- 99- 2, Dec. 2000 compliant. GAO also makes
challenges in working with U. S.

1998) and ongoing GAO work, recommendations designed to agencies operating
overseas to discusses the status of efforts by the

strengthen the Year 2000 readiness of standardize information capabilities
Forest Service to achieve the nation's firearm presale and to correct
weaknesses in its accountability for the tax dollars background check
program. information security and financial appropriated to it to carry out
its management systems.

mission. GAO summarizes the (1) GGD- 00- 1, Oct. 14, 1999 (51 pages).
actions that the agency has taken to IRS Employee Evaluations: T- RCED/
AIMD- 00- 87, Feb. 3, 2000 improve its financial and performance
Opportunities to Better Balance

(20 pages). Federal Aviation accountability, (2) remaining hurdles Customer
Service and Compliance Administration: Challenges in to those improvements,
and (3) Objectives.

Modernizing the Agency, by Gerald strategies that the agency is Dillingham,
Associate Director, developing to overcome these hurdles.

The Internal Revenue Service (IRS) is Transportation Issues, before the
seeking to transform its organizational Transportation Subcommittee, Senate
T- RCED/ AIMD- 00- 142, Apr. 6, 2000 culture to one that more fully
Committee on Appropriations, and (16 pages). Aviation Security:

embraces customer service as a core Senate Committee on Budget.
Vulnerabilities Still Exist in the value. IRS has replaced its old mission

statement, which stressed collecting recapitalization to prevent LTCM's
contributed little to resolving the the proper tax at the least cost, with a

collapse. The circumstances taxpayers' delinquencies. In reviewing

new one that emphasizes providing surrounding LTCM's near collapse and
seizure cases, GAO found examples in world- class customer service by
recapitalization raised questions that which IRS revenue officers' use of
helping taxpayers understand and

go beyond the activities of LTCM and discretion in deciding whether and meet
their tax responsibilities and by hedge funds to how federal financial how
to conduct a seizure was applying the tax law with integrity and

regulators fulfill their supervisory questionable. For example, in one
fairness. IRS has undertaken several responsibilities and whether all

case, IRS seized two assets from a long- range initiatives to turn the new
regulators have the necessary tools to taxpayer, both of which were mission
statement into reality. GAO identify and address potential threats

disproportionately greater in value reviewed the extent to which IRS' to the
financial system. This report than the amount needed to satisfy the current
employee evaluation system discusses (1) how LTCM's positions

taxes owed. IRS' use of seizure can support the new mission became large and
leveraged enough to authority is in transition while the statement during
the period IRS will be deemed a potential systemic threat, agency adapts to
the requirements of need to revamp its performance

(2) what federal regulators know the IRS Restructuring and Reform Act,
management system. To fulfill its new about LTCM and when they found out
which is designed to better protect mission statement, IRS will need to
about its problems, (3) what the extent taxpayers from unwarranted depart
from the past supervisory of coordination among regulators was,

collections if other collection practice of emphasizing revenue and and (4)
whether regulatory authority

alternatives are available. GAO's efficiency in employee evaluations to
limits regulators' ability to identify and review of IRS' processes for
protecting one that balances these goals with mitigate potential systemic
risk.

the rights of taxpayers in planning and good customer service. IRS
recognizes conducting seizures found that making changes to its employee

GGD- 00- 4, Nov. 29, 1999 (111 pages). implementation breakdowns and, in
evaluation process will be important in

IRS Seizures: Needed for Compliance some instances, inadequate process
bringing about cultural change and

but Processes for Protecting Taxpayer requirements. Because the impact of
establishing customer service as an Rights Have Some Weaknesses. seizures on
taxpayers can be severe agency priority. However, because of and the number
of seizures are likely the magnitude of the changes that IRS

To collect unpaid taxes in 1997, the to rise in the future, GAO makes

is undertaking, it is unclear when such Internal Revenue Service (IRS)
seized recommendations to deal with the a system will become fully
operational property from 8, 300 delinquent weaknesses that persist in IRS'
and a new employee evaluation taxpayers who owed the federal

collection process. process will be put in place. In the government about
$1. 1 billion. GAO meantime, IRS could take better

found that IRS' use of its seizure

GGD- 00- 5, Nov. 29, 1999 (19 pages). advantage of opportunities within the
authority produced mixed results in IRS Seizures: Limited Progress in
current evaluation process to reinforce terms of targeting the most

Eliminating Asset Management the important of customer service noncompliant
taxpayers and then Control Weaknesses. among its frontline enforcement
bringing them into compliance. employees. Seizures target the more
noncompliant GAO testified before Congress in 1992 taxpayers statistically,
the greater the

that the Internal Revenue Service's

GGD- 00- 3, Oct. 29, 1999 (55 pages). amount of unpaid taxes or the number
(IRS) controls over seized property fell

Long- Term Capital Management: of outstanding tax delinquencies, the short
in protecting against theft, waste, Regulators Need to Focus Greater greater
the likelihood of seizure. The and misuse and that controls over Attention
on Systemic Risk.

likelihood of seizure varied by sales practices did not necessarily
location. Seizures were as much as 17 guarantee the highest sales price at
the In 1998, Long- Term Capital

times more likely for delinquent lowest cost. (See GAO/ T- GGD- 92- 65,
Management (LTCM)-- one of the

taxpayers in some IRS district offices Sept. 1992.) GAO also indicated that
largest U. S. hedge funds-- lost more than in others. Many seizures asset
management and sales could

than 90 percent of its capital. The improved compliance with the tax best be
done by specialists rather than Federal Reserve concluded that rapid

laws (42 percent of taxpayers had their by revenue officers, whose primary
liquidation of LTCM's trading positions full tax liability resolved after
IRS responsibility is to collect unpaid and related positions of other
market seized their assets), although some taxes. Since then, Congress has
passed participants might pose a significant

seizures produced little for the legislation requiring IRS to remove

threat to already unsettled global government. For 22 percent of affected
revenue officers from participating in financial markets. As a result, the
Fed taxpayers, the seizures generated little

asset sales by July 2000. The legislation arranged a private sector revenue
for the government and also encouraged IRS to contract out

this job. GAO found that, as of October plans will be most useful if they
focus

outside of the organization to boost 1999, IRS had not finalized plans for
on the critical challenges and tradeoffs performance; (3) refining
performance removing revenue officers from its

that the Bureau will fascistic as goals, measures, and targets to better
process for selling seized assets. A the need to balance schedule translate
activities into results; (4) GAO review of a nationwide sample of pressures
with the need to protect data

strengthening analytical capabilities seizure cases found that basic
internal qualities its response rate goals are not and techniques to better
meet control weaknesses cited in 1992 met. Also, even though the Bureau has

performance management information persist. Regardless of whether seized
already taken steps to expand the needs; and (5) assessing performancebased
assets are done “in- house” by an IRS

census applicant pool, additional management efforts on a

specialist or by a private contractor, statutory measures could be needed,

continuous basis to identify areas for IRS must have controls to provide

given the Bureau's history of staffing improvement. GAO believes that the
accountability over seized assets, problems and the magnitude of the

practices would be readily transferable security for those assets, sales
Bureau's staffing challenge for 2000. to the federal financial institution
practices that protect the interests of regulatory agencies or other the
government and taxpayers, and GGD- 00- 7, Mar. 16, 2000 (31 pages).

government agencies seeking to information to assist management Tax
Administration: IRS' Use of

improve their implementation of the oversight. Without these controls, the
Nonaudit Contacts. Government Performance and Results interests of taxpayers
who have their

Act. assets seized may suffer-- for example, More than 123 million taxpayers
filed from asset sales that fail to maximize

income tax returns in 1998. For most,

GGD- 00- 11, May 22, 2000 (27 pages). net proceeds this was the end of their
interaction Tax Administration: IRS Is Working to with the Internal Revenue
Service

Improve Its Estimates of Compliance GGD- 00- 6, Dec. 14, 1999 (39 pages).
(IRS) for the year. However, IRS audits

Burden. 2000 Census: Contingency Planning about one percent of taxpayers
with Needed to Address Risks That Pose a

respect to the tax liability reported on Taxpayers spend considerable time
Threat to a Successful Census. their returns. IRS also uses several

and money complying with federal types of nonaudit contacts to notify income
tax rules. Although much of With less than four months remaining millions of
additional taxpayers about this compliance burden is associated until Census
Day (Apr. 1, 2000), potential errors in their reported tax

with the tax code, some of it is also significant uncertainties continue to
liability. IRS has provided little linked to the actions of the Internal
surround the Census Bureau's efforts

information publicly on these nonaudit Revenue Service (IRS). Reliable to
boost participation in the census

contacts. This report discusses the estimates of the burdens imposed by and
to collect timely and accurate field major types of nonaudit contacts with
such compliance could help Congress data from nonrespondents. Obtaining

taxpayers: the math error program, reduce those burdens and help IRS
adequate public participation is a huge underreport program, and notices
sent develop measures of its own challenge, one with implications for to
taxpayers about duplicate social performance, making better informed the
size of the nonresponse follow- up security numbers and potential errors

resource allocation decisions within workload. Data quality and scheduling

on self- employment taxes. the agency and meeting reporting could be
affected if the nonresponse requirements under the Paperwork

follow- up workload is greater than GGD- 00- 10, Oct. 28, 1999 (63 pages).
Reduction Act. This report (1) expected or the Bureau has difficulty
Managing for Results: Strengthening describes IRS' overall strategy to in
filling the number of enumerator Regulatory Agencies' Performance

improve its methodology for positions that it estimates will be Management
Practices. estimating compliance burden, (2) needed for this job. These
describes what IRS has done to uncertainties raise concerns that the

GAO gathered information from 23 implement its overall strategy and how 2000
Census may be less accurate than federal and state organizations that are

IRS expects to improve its the 1990 Census. As a result, the known for using
or planning to use methodology, and (3) determines Bureau needs to have
contingency various useful practices to improve whether IRS expects that its
new

plans in place to mitigate the impact of their performance management and
methodology will be able to measure a lower- than- expected response rate.

measurement processes. These the burden associated with the Because so
little time remains and practices fall into the following five complex tax
rules identified in IRS' senior Bureau managers will be categories: (1)
restructuring the

forthcoming first annual report on tax devoting most of their attention to
organization's management approach complexity. carrying out the census plans
that are

to become more performanceoriented; already in place, such contingency

(2) establishing relationships

GGD- 00- 12, Oct. 12, 1999 (27 pages). The fair lending laws prohibit
floodplain have been met, and (3) the General Services Administration:
discrimination on the basis of an planned placement of computers in the
STAR- PBS' New Program for Tracking applicant's race, color, religion,
gender, basement of the new building. On this

and Managing Real Property. national origin, or other last point, GAO
discusses whether characteristics. In recent years, steps have been taken to
reduce the The Public Buildings Service's System

mergers between several of the risk of damage from water seeping into for
Tracking and Administering Real nation's largest banks have prompted the
basement and whether the staff of Property (STAR) is a real estate consumer
and community groups to the Center participated in the decision inventory
management software raise fair lending concerns. This report to place the
computer operations in application that maintains data on

(1) describes the fair- lending issues the basement. projects, leases,
buildings, and space

raised by consumer and community assessments in an integrated database.
groups during the application process

GGD- 00- 22, Dec. 28, 1999 (87 pages). The data in STAR are used to generate
for six larger bank holding company

Women In Prison: Issues and bills for clients for their assigned

mergers and (2) assesses the Federal Challenges Confronting U. S. space,
develop budget plans, track and Reserve Board's consideration of those

Correctional Systems. manage leases, and evaluate issues. GAO provides
information on performance. This report discusses (1)

actions that regulators have taken in Nearly 20 years ago, GAO reported that
the functions that STAR performs; (2)

response to earlier GAO U. S. prison systems had not been whether users were
having problems recommendations on fair lending. GAO

aggressive in providing programs and using STAR; (3) the steps that the also
provides information on emerging services to female inmates because of
Public Buildings Service has taken to fair- lending issues related to credit
their relatively small numbers and address any user problems; and (4) the
scoring, automated loan underwriting, because many officials thought that
actions that the Public Buildings

and mortgage brokers. In each of the female inmates did not need the same
Service has taken to help ensure that six mergers GAO reviewed, consumer
types of training and vocational skills STAR data are accurate, reliable,
and and community groups raised the issue

as did male inmates. (See GAO/ GGD81- consistent. of perceived high loan
denial and low 6, Dec. 1980.) Since then, the

lending rates to minorities by the number of women in prison has soared GGD-
00- 14, Oct. 12, 1999 (27 pages). mergers. The Fed considered these more
than 500 percent-- to nearly Crime Technology: Department of fair- lending
issues in the six merger 85,000 by the end of 1998. With the rise Defense
Assistance to State and Local cases by collecting, reviewing, and in the
number of female inmates, there Law Enforcement Agencies.

analyzing information from various has been an increasing awareness that
sources, including the bank holding

the needs of female inmates differ This report provides information on
companies involved in the mergers and from those of male inmates, such as
crime technology assistance provided other federal and state agencies. The

child- related responsibilities and by the Defense Department (DOD) to Fed
did not routinely contact the gender- specific health care. Although state
and local law enforcement Federal Trade Commission or the progress has been
made, GAO and

agencies during fiscal years 1996 Department of Housing and Urban

others have found that U. S. prison through 1998. GAO categories the
Development about the six mergers

systems still face challenges in assistance into the following three despite
their fair lending enforcement

meeting the unique needs of female areas: (1) grants of other types of
responsibilities. inmates. direct federal funding; (2) access to support
services and systems, such as

GGD- 00- 17, Dec. 15, 1999 (19 pages).

GGD- 00- 23, Dec. 15, 1999 (59 pages). counterdrug or other intelligence
Food and Drug Administration Customs Service Modernization: centers; and (3)
in- kind transfers of Facility: Requirements for Building on Impact of New
Trade Compliance equipment or other assets. GAO also a Floodplain Met.
Strategy Needs to Be Assessed. identifies several DOD research and
development efforts that may have The Food and Drug Administration

The Customs Modernization and indirectly benefited state and local law plans
to build a facility in College Park,

Informed Compliance Act enforcement agencies. Maryland, to house its Center
for Food fundamentally changed the Safety and Applied Nutrition. This
relationship between importers and

GGD- 00- 16, Nov. 3, 1999 (51 pages). report provides information on (1) the

the Customs Service by making the Large Bank Mergers: Fair Lending authority
of the General Services importers legally responsible for Review Could be
Enhanced With Administration to build this new declaring the value,
classification, and

Better Coordination. facility in College Park, (2) whether

rate of duty applicable to merchandise the requirements for building on a
being imported into the United States.

Customs is responsible for This staff study discusses an In carrying out
their oversight

determining the final classification and innovative technique that GAO has
responsibilities, congressional value of imported merchandise. The devised
for collecting data on sensitive

committees need a variety of act also gave Customs and importers a policy-
relevant topics. The “three card information on federal programs and
shared responsibility for ensuring method” is designed to collect
their performance. The Government compliance with trade laws. To carry
sensitive information in large- scale

Performance and Results Act of 1993 out these new responsibilities, surveys.
It is intended to allow requires federal agencies to set Customs has
developed an informed

estimation of the needed statistics strategic goals and report annually on
compliance strategy. This report (1) while maximizing response privacy their
results in achieving them. assesses the status of Customs' and reducing
“question threat.” If Congress has raised concerns that the
implementation of the informed successful, this technique might

performance measures chosen by compliance strategy and (2) eventually fill
in key data gaps and some agencies do not meet Congress' determines whether
trade compliance improve statistics that would be needs for oversight
information and under the new program has improved. helpful in making public
policy that it had too little input into some decisions. GAO's main goal is
to spur agencies' performance plans. This GGD- 00- 28, Jan. 31, 2000 (31
pages). interest in-- and, where appropriate, report explores, through three
case Human Capital: Key Principles From encourage more development and

studies, how agencies might better Nine Private Sector Organizations.
testing of -- this promising, albeit not meet congressional needs for yet
fully validated, technique. information on program and agency Effective
implementation of performance. The three agencies GAO performance- based
management, as GGD- 00- 31, Nov. 9, 1999 (19 pages). studied are the Centers
for Disease

envisioned in the Government U. S. Postal Service: Changes Made to Control
and Prevention, the Office of Performance and Results Act of 1993, Improve
Acceptance Controls for Student Financial Assistance, and the hinges on
agencies' ability to Business Mail. Pension and Welfare Benefits
strategically manage all of their Administration. GAO interviewed

resources-- financial, information, The Postal Service discounts postage
congressional staff about their

technology, and people-- to achieve rates to customers who barcode and
information needs and whether those their missions and goals. However,

presort their business mail before needs were met. GAO also interviewed
discussions about how agencies plan submitting it in bulk quantities to the
agency officials about how that to strategically manage their most Service
for processing. GAO reported information might be obtained. important
asset-- their people or in 1996 that the Service lacked “human
capital”-- has been notably

adequate controls to ensure that GGD- 00- 37, Dec. 15, 1999 (79 pages).
absent from many federal agencies' customers had properly prepared their Tax
Administration: IRS' 1999 Tax annual performance plans. This report business
mail and were, in fact, eligible Filing Season. identifies common principles
that to receive the discounted postal rates. underlie the human capital
strategies (See GAO/ GGD- 96- 126.) This follow- up

During the 1999 tax filing season, the and practices of private sector
report found that the Service made Internal Revenue Service (IRS) met or
organizations regularly cited as leaders

changes to its controls over the exceeded several of its performance in the
area of human capital acceptance of business mail. These measure goals.
However, IRS fell short management. GAO provides case changes are generally
along the lines

in two key areas: the ability of illustrations that offer practical that GAO
recommended in 1996, and taxpayers to access IRS' toll- free examples for
federal agencies to its controls overall appear to have telephone service
and the quality of consider as they try to improve their improved. However,
the Service lacks IRS' answers to taxpayers who called own human capital
strategies. The nine information on how well its controls with tax law
questions. Also, IRS' private sector organizations are are working
Servicewide and cannot accomplishment in a third wreathe Federal Express;
IBM; Marriott; guarantee that it is collecting all the

timeliness of refunds for paper Merck; Motorola; Sears, Roebuck, and

revenue due from its business mail retransmitted questions about the

Company; Southwest Airlines; operations.

agency's timeliness that IRS could not Weyerhaeuser; and Xerox. answer.
Other significant findings from GGD- 00- 35, Jan. 26, 2000 (35 pages). the
1999 tax filing season included the

GGD- 00- 30, Nov. 1, 1999 (87 pages). Managing for Results: Views on
following: IRS enhanced the

Survey Methodology: An Innovative Ensuring the Usefulness of Agency

availability of its walk- in service by Technique for Estimating Sensitive
Performance Information to Congress. increasing Saturday hours and making
Survey Items. services more convenient for taxpayers who did not have easy

access to a walk- in office. Use of IRS' were U. S. citizens to be x- rayed
in State's Implementation of Its

World Wide Web site rose significantly fiscal year 1998. But the results of
the

International Postal Responsibilities. during the 1999 tax filing season.
IRS

x- rays showed that these AfricanAmerican stopped millions of dollars in
women were less than half The State Department assumed erroneous claims for
the earned as likely as white women to be primary responsibility for U. S.
policy income credit in 1999 by validating

carrying contraband. on Universal Postal Union (UPU) social security numbers
and

matters in 1998. State has made scrutinizing some claims. Of the nearly GGD-
00- 39, Dec. 17, 1999 (43 pages). progress in implementing its new 126
million tax returns filed in 1999, Border Patrol Hiring: Despite Recent
responsibilities by consulting with the 29. 3 million, or 23 percent, were
filed

Initiatives, Fiscal Year 1999 Hiring Postal Service, other federal agencies,
electronically. IRS launched several

Goal Was Not Met. postal users, private providers of initiatives directed at
making international postal services, and the electronic filing paperless
and thus Although the Immigration and public. Also, State clearly signaled
more appealing to potential users. Naturalization Service (INS) met its

changes in U. S. policy on UPU reform. Twenty percent of the returns filed
in goal of increasing the strength of the Despite this progress,
opportunities 1999 included the new child tax credit.

Border Patrol by 1, 000 agents in both exist for State to improve its
process Many of these taxpayers, however,

1997 and 1998, it saw an increase of for developing U. S. policy on these
miscalculated the credit amount, and only 369 agents in 1999 because it was

matters and the institutional continuity many other taxpayers who were
unable to recruit enough qualified and expertise of its staff. For example,
eligible for the credit failed to claim it. applicants and retain them
through the

GAO found shortcomings in the timing IRS made significant changes to the
hiring process. Although INS attracts and notifications for public meetings
computer systems that it uses to large numbers of applicants, few who and
the distribution of documents

process returns and remittances apply to the Border Patrol successfully
discussed at those meeting that may

without any discernable processing complete the application process. have
limited opportunities for disruptions.

Some fail to pass the rigorous entry stakeholders to provide meaningful
examination, medical examination, or input. GAO recommends that State GGD-
00- 38, Mar. 17, 2000 (87 pages). background check, while others establish a
more structured, timely, U. S. Customs Service: Better Targeting

withdraw from the process. INS and open process for developing U. S. of
Airline Passengers for Personal assigns all new Border Patrol agents to
policy on UPU matters. Also, State Searches Could Produce Better the
southwest border, where 92 should provide sufficient staff Results.

percent of all agents are stationed. As continuity and expertise to handle
its

hiring has increased, the experience UPU responsibilities. It is unclear,
Concerns have been raised about the

level of Border Patrol agents has however, how State plans to address

U. S. Customs Service's selection or declined agencywide, as well as along
GAO's recommendations. GAO “targeting” of airline passengers the
southwest border. The percentage summarized this report in testimony
suspected of carrying contraband,

of agents along the southwest border before Congress; see: Postal Issues:
such as illegal drugs, into the country. with two years of experience or
less

The Department of State's GAO found that inspectors chose

tripled from 14 percent to 39 percent International Postal Responsibilities,

passengers for further examination on between 1994 and 1998. Also, most of
by Bernard L. Ungar, Director of the basis of Customs' policies and the
southwest border sectors saw an Government Business Operations procedures
and their professional increase in the average number of Issues, before the
Subcommittee on judgment and experience. Of those

nonsupervisory agents assigned to the Postal Service, House Committee
selected for additional examination, each GS- 12 supervisory agent. By on
Government Reform. GAO/ T- GGD00- about 102,000 passengers were relying on a
temporary training facility 63, Mar. 9 (eight pages). subjected to some form
of personal in Charleston, South Carolina, the search, which ranged from
frisking to Border Patrol Academy has been able GGD- 00- 41, Mar. 13, 2000
(59 pages).

x- ray exams to strip searches. to provide newly hired agents with the

Racial Profiling: Limited Data Passengers of some races and gender required
training and, according to a Available on Motorist Stops. were more likely
than others to be Border Patrol official, is prepared the subjected to more
intrusive forms of meet the training needs associated Available analyses of
racial profiling of personal searches after they had been with future
growth.

motorists by law enforcement-- that is, frisked. Most strikingly,
AfricanAmerican using race as a key factor in deciding women who were U. S.
GGD- 00- 40, Jan. 31, 2000 (35 pages). whether to make a traffic stop-- are
citizens were more than nine times

Postal Issues: The Department of limited to five quantitative analyses more
likely than white women who that contain methodological

limitations. These analyses provide no preparations for the Year 2000 date
an estimated 8 million additional online conclusive empirical data to
determine

change and (2) discusses the status of trading accounts could be opened the
extent to which racial profiling the industry's Year 2000 readiness. by the
year 2001. may occur. However, the cumulative results of the analyses
indicate that, in GGD- 00- 43, May 9, 2000 (43 pages). GGD- 00- 44, Dec. 21,
1999 (15 pages). relation to the populations to which

On- Line Trading: Better Investor Olympic Games: Preliminary they were
compared, African Protection Information Needed on

Information on Federal Funding and American motorists, and minority Brokers'
Web Sites.

Support. motorists in general, were more likely than whites to be stopped on
the

On- line trading is transforming the At least 24 federal organizations
roadways studied. Because of relationships that investors have with provided
or planned to provide about methodological weaknesses in the broker-
dealers. Nearly 6 million

$2. 1 billion in 1999 dollars for Olympic existing analyses, GAO cannot
investors buy and sell stocks through projects and activities for the Los
determine whether the rate at which

the Internet, and while the services Angeles and Atlanta Summer Olympic

African Americans or other minorities provided by online brokers differ from
Games and the upcoming Salt Lake are stopped is disproportionate to the
those provided by their full- service

City Winter Olympic Games. About rate at which they commit violations
counterparts, those differences are $530 million was reported to have been
that put them at risk of being stopped. shrinking and both are subject to
the

provided or planned for projects and GAO believes that more and better same
rules and regulations. The activities solely related to the planning
research should be done on the racial growth in on- line trading has been
and staging of the Olympics, including

characteristics of persons who commit accompanied by a series of delays and
safety and security as well as

the types of violations that may result outages in broker- dealers'
automated transportation services. The remaining in stops. So far, little
empirical trading systems that have caused some $1. 6 billion was spent or
planned for information exists at the federal, state, investors to suffer
losses or miss

projects, such as highway or local levels to provide a clear investment
opportunities. According construction, transit system picture of the
existence or prevalence to the on- line broker- dealers GAO development, and
other capital of racial profiling. Data collection contacted, delays and
outages will projects, that the host cities of Atlanta

efforts that are planned or under way continue because they must constantly

and Salt Lake City wanted to have should provide more data in the next
upgrade their systems and capacity to completed in time for the Olympic
several years to help shed light on this remain competitive. Industry Games.
Federal and state officials said issue.

regulators, including the Securities and that they identified these projects
as Exchange Commission and security Olympic- related because their GGD- 00-
42, Dec. 20, 1999 (43 pages). self- regulatory organizations, have
completion was generally accelerated Year 2000: Insurance Regulators Have
issued some guidance on maintaining to improve transportation services and
Accelerated Oversight, but Some Gaps adequate capacity or notifying their

avoid construction during the Olympic Remain. customers about the potential
for

Games. These officials said that most service disruptions, but final rules

of the federal funding for these Under a long- standing division of have yet
to be issued. Requiring that projects would have been eventually
responsibilities between federal and investors be informed of the potential
provided to the host city regardless of state regulators, state insurance
for delays and outages could help the Olympic Games. Concerning the
regulators have the primary investors better understand the 1984 Olympic
Games in Los Angeles, responsibility for overseeing the limitations of on-
line trading federal funding and support totaled insurance industry. In
March 1999,

technology and prepare for delays and about $75 million and involved 11 GAO
reported that state insurance outages. Industry regulators require federal
organizations. Unlike the regulators were generally not as that broker-
dealers provide certain federal support for later Olympics, the

aggressive in their oversight of the investor protections, such as federal
organizations reported little

industry's Year 2000 readiness as were information on margin trading and
funding and support for capital the banking and securities regulators.
proposed rules on information privacy, projects to prepare Los Angeles for
the

(See GAO/ T- GGD- 99- 56.) Of particular and also recommend that
brokerdealers 1984 Summer Olympic Games. Most of concern was the limited
attention furnish information about

the federal funding and support that given to validating the status of Year
trading risks and best execution of agencies reported providing to the 2000
preparedness among insurance trades. The broker- dealers contacted 1996
Summer Olympic Games in companies. This report (1) updates by GAO did not
always provide their Atlanta and planned for the 2002 GAO's assessment of
state regulatory customers all such information,

Winter Olympic Games is reported to oversight of the insurance industry's
especially important considering than be for infrastructure projects to

prepare the host city for the Olympics The Role and Functioning of the
enumerate population groups, the Be projects that will also benefit the host
President's Working Group.

Counted program is to make its forms city and state after the Games have

available in various public locations, ended. Following the highly
publicized losses

such as community centers, churches, experienced by a large leveraged

and businesses. Questionnaire GGD- 00- 45, Feb. 16, 2000 (19 pages). hedge
fund in 1988 and the potential Assistance Centers are to help people-
especially Structured Settlements: The

implications for worldwide financial those who speak little or no

Department of Justice's Selection and markets, questions began to be raised
English-- complete their census Use of Annuity Brokers. about the role and
functioning of the questionnaires by providing assistance President's
Working Group on in several languages on a walk- in basis.

The federal government solicits the Financial Markets. The Working Group The
centers are also to distribute Be services of private brokers to help

was created by an executive order in Counted forms. This report provides
structured settlements with claimants

response to the 1987 stock market information on the status of these two in
lawsuits against federal agencies. crash, although since 1994 the Working

programs, focusing on the steps that Because private brokers can earn Group
has served as a mechanism to the Bureau has taken to address lucrative
commissions from insurance coordinate regulatory responses to shortcomings
that it encountered companies, the Justice Department various market events
that have arisen.

during the dress rehearsal. has issued policy and guidance to This group is
composed of the promote fairness and avoid the Secretary of the Treasury and
the

GGD- 00- 48, Jan. 24, 2000 (59 pages). appearance of favoritism in choosing
chairs of the Board of Governors of the Risk- Focused Bank Examinations:
these brokers. Justice officials told

Federal Reserve System, the Securities Regulators of Large Banking

GAO that the agency's policies and and Exchange Commission, and the
Organizations Face Challenges.

guidelines permit some discretion and Commodity Futures Trading that, when
selecting a broker, they

Commission. This report discusses (1) Examinations by federal banking
generally relied on such factors as whether the issues listed for regulators
are intended to assess the reputation, past experience,

consideration by the Working Group safety and the soundness of banks and
knowledge, and location. However,

by the executive order have been identify conditions that may require
Justice officials were unable to explain considered, (2) what additional
issues prompt action to remedy unsafe and why attorneys selected particular
have been considered by the Working unsound banking practices. In recent
brokers to settle specific cases Group and how they were identified,

years, banking regulators have begun because Justice did not require and (3)
the nature of coordination and

emphasizing an institution's internal documentation of these decisions.
cooperation within the Working Group control systems and the way it Overall,
the six federal agencies GAO and the views of Members of Congress

manages and controls its risks, rather surveyed described policies and and
Working Group participants about than determining whether a bank was
guidance in selecting structured whether it needs to be formalized in

operating in a safe and sound manner settlement brokers that were similar to
statute. at a specific point in time. This those of Justice. Like Justice,
however, evolution to a risk- focused approach none of the agencies required
their GGD- 00- 47, Feb. 25, 2000 (15 pages). responds to rapid changes in
the attorneys to document their reasons 2000 Census: Actions Taken to
banking industry and the speed with for picking a specific broker. GAO's
Improve the Be Counted and which an institution's risk profile can review of
the list of the structured Questionnaire Assistance Center change. This
approach is particularly settlement brokerage companies used Programs.

important because, in recent years, by Justice and the number of major
consolidations have produced settlements assigned to each company

The Census Bureau has added several several large, complex banking showed
that Justice chose a handful of initiatives to improve the accuracy and
organizations with diverse risks and companies to handle most of its

completeness of the population count sophisticated risk- management
structured settlement business. in the 2000 Census. These initiatives
systems. This trend can be expected to Between May 1997 and May 1999, 70
include the “Be Counted” program as continue as the result of
recent

percent of 242 claims totaling $236 well as walk- in Questionnaire landmark
legislation that allows banks,

million were awarded to four Assistance Centers. The Be Counted securities
firms, and insurance brokerage companies. program is designed to count
people companies to acquire one another. who believe that they did not
receive a

This report studies the risk- focused GGD- 00- 46, Jan. 21, 2000 (23 pages).
census questionnaire, or who were approaches used by the Federal Financial
Regulatory Coordination:

otherwise omitted from the census. Reserve and the Office of the

Aimed at traditionally hard- to Comptroller of the Currency (OCC).

GAO (1) describes the general

GGD- 00- 52, Feb. 4, 2000 (19 pages). year 1998. Members of Congress have
characteristics of the regulators' riskbased Managing for Results:
Challenges raised concerns about the burden approach to examinations of
Agencies Face in Producing Credible imposed on taxpayers and questioned
large, complex banks, explaining how Performance Information.

whether information obtained during they differ from past examination
taxpayer telephone calls could be practices; (2) compares the In the past,
congressional useful in understanding the causes of implementation of the
risk- focused policymaking, spending decisions, and various problems, such
as confusing

approaches of the Fed and OCC; and oversight as well as agencies'
instructions or incorrect information.

(3) identifies the challenges faced by decisionmaking have all been
seriously This report discusses (1) whether IRS both agencies as they
continue to handicapped by the lack of clear goals

tracks information about notices from implement their examination and sound
performance information at taxpayers who call IRS and (2) if not, programs
for large, complex banks. federal agencies. To remedy that whether such a
tracking could be situation, the Government useful and feasible. GGD- 00-
50, Feb. 1, 2000 (47 pages).

Performance and Results Act of 1993 Consumer Price Index: Update of requires
agencies to set multiyear GGD- 00- 55, Apr. 14, 2000 (15 pages). Boskin
Commission's Estimate of Bias.

strategic goals, measure progress Tax Administration: Multiple toward
achieving those goals, and

Collection Notices Sent to Individual Between December 1996, when the report
on their progress. Agencies' Taxpayers. Boskin Commission issued its final

annual performance reports are report estimating that the Consumer intended
to provide important The Internal Revenue Service (IRS) Price Index (CPI)
overestimates the

information to agency managers, has sent millions of collection notices
cost- of- living by 1. 1 percentage points policymakers, and the public on
what to taxpayers each year requesting annually, and June 1999, when GAO
each agency accomplished with the

payment of tax assessments and began this review, the Bureau of Labor
resources it was given. This report related penalties and interest. Some
Statistics (BLS) made seven

identifies some of the challenges that taxpayers have complained that IRS
methodological changes that affected agencies face in producing credible
sent collection notices for the same the calculation of the CPI. BLS also
performance information and how tax assessment after the payment has
announced three methodological those challenges may affect been made-- a
practice that incurs changes that it planned to implement. performance
reporting- the next phase unnecessary costs for the agency and Four former
members of the Boskin in implementing the Results Act. GAO imposes burdens
on taxpayers. GAO

Commission said that the seven (1) discusses whether the weaknesses

found that 39 percent of the nearly 15 methodological changes have reduced
it has identified in agencies' million taxpayers who were sent some of the
bias in the CPI, although performance plans imply challenges

collection notices from January they had different views on the extent for
the performance reports, (2)

through November 1999 received of the remaining bias. Their estimates
illustrates some of the challenges multiple collection notices for the of
the remaining bias ranged from 0.73 agencies face in producing credible same
assessment. IRS sent almost all to 0.9 percentage points annually. The
performance data, and (3) describes

of these multiple notices because, former Boskin Commission members

how performance reports can be used according to IRS records, it had not
believe that most of the remaining bias to address data credibility issues.
received payment of the tax is due to “new products/ quality change
assessments in full. Yet, in the case of bias.” According to the
Commission, GGD- 00- 54, Mar. 28, 2000 (23 pages). five percent of these
taxpayers this type of bias occurs when new Tax Administration: Tracking
Taxpayer (270,000 individuals), IRS sent at least products are not included
in the CPI or Information About IRS Notices Could

one notice after the agency had when they are included after a long Reduce
Burden. received payment in full of the delay, which results in the CPI not
assessment. IRS provided several capturing price decreases that often

In fiscal year 1998, the Internal explanations for why it sent notices occur
after a product's introduction in

Revenue Service (IRS) sent more than after full payments. Some taxpayers the
marketplace. New products/ quality 80 million notices to taxpayers about
paid too late to stop a subsequent change bias also occurs when the CPI
various enforcement actions, such as notice. Others paid on time, but IRS
does not adequately measure the audits or demands for payment of past did
not record the payment soon

portion of a price increase that is due due tax debts. Taxpayers who

enough to stop a subsequent notice. In to an improvement in the quality of a
disagreed with or did not understand other cases, an error by IRS or the
product or service instead of to a rise how to respond to a notice could
call taxpayer, such as recording a payment in the cost of living. IRS toll-
free. IRS received upwards of in the wrong account or using the 20 million
calls about notices in fiscal wrong social security number, caused

IRS to send a notice after a full collections as of September 1998 and make
market prices more volatile.

payment. gauges the credibility of those Federal regulators, such as the
estimates, and (3) describes EPA's

Securities and Exchange Commission GGD- 00- 56, Apr. 12, 2000 (71 pages).
largest paperwork burden- hour (SEC) and the National Association of Gun
Control: Options For Improving reductions between September 1995 Securities
Dealers (NASD), have taken the National Instant Criminal and September 1998
and gauges the

steps to address the risks of day Background Check System. credibility of
those reductions. GAO trading. They are concerned that firms also provides
information on EPA's

have been advertising day trading as a This report provides information on
Reinventing Environmental profitable strategy without fairly the
effectiveness of the Brady Act's

Information Initiatives and the disclosing its risks. The rule violations

phase I (interim Brady) and phase II agency's new Office of Environmental
found most frequently at day trading (permanent Brady) provisions in
Information. firms involve supervisory procedures, preventing the sale of
firearms to net computations, and advertising. prohibited persons, such as
criminals

GGD- 00- 61, Feb. 24, 2000 (39 pages). Regulators have also found violations
or illegal aliens. Under interim Brady, Securities Operations: Day Trading
involving margin and lending issues. which went into effect in 1994 and
Requires Continued Oversight. Some of the day trading firms GAO applied only
to handguns, background

visited recognize these regulatory checks were generally to be done by Day
trading among less experienced concerns and said that they have taken the
chief law enforcement officer in investors is an evolving segment in the
steps to provide better disclosure; the purchaser's residence community.
securities industry. Day traders

screen prospective traders; and During phase I, handguns were not to
represent less than 1/ 10th of one restrict some activities, such as be
transferred for five business days (a percent of all persons who bought or
customer- to- customer lending. GAO waiting period) unless the dealer sold
securities. They are, however, a

recommends that SEC and NASD received approval from the applicable growing
part of trading on the Nasdaq, evaluate the implications of day state or
local chief law enforcement accounting for as much as 15 percent trading for
the integrity of the market officer before that time. Under

of total Nasdaq volume. These after decimal trading is introduced.

permanent Brady, background checks individuals all traded at specialized GAO
also recommends that SEC do at generally are to be done using a

day trading firms. Some firms least one more cycle of targeted computerized
system. encourage anyone who wants to be a examinations of day trading firms
to day trader, and has the necessary ensure that the firms take the

GGD- 00- 59, Mar. 16, 2000 (55 pages). capital, to use the firm's systems
and corrective actions they have proposed

EPA Paperwork: Burden Estimate facilities to trade. These traders risk in
response to earlier examination Increasing Despite Reduction Claims.

losing their own money. Other firms findings.

stress that they are only interested in The Environmental Protection Agency
qualified, professional traders. These GGD- 00- 65, Apr. 7, 2000 (47 pages).
(EPA), like other federal agencies, traders risk the firms' capital, not
their

Tax Administration: IRS' Levy of collects information from the public. own,
and can be fired if they lose Federal Payments Could Generate EPA uses this
information to help significant sums. Some firms use a Millions of Dollars.
ensure compliance with the agency's

combination or variation of these regulations, to evaluate the strategies.
The effects of day trading

Many taxpayers who are delinquent in effectiveness of its programs, and to
on both individual traders and the paying their federal taxes are receiving
determine eligibility for program

markets as a whole are unclear. Day billions of dollars in federal payments
benefits. However, EPA's information trading is risky, and state regulators
each year, from Social Security to collection efforts impose a substantial
have reported that most day traders

payments for goods and services burden on the public, and small

they investigated lost money. However, provided to government agencies. To
businesses contend that they are officials at day trading centers GAO help
the Internal Revenue Service particularly affected by government

visited said that although most people (IRS) collect these delinquent tax
paperwork. This report (1) describes lose money at first, most of their
debts, in 1997 Congress gave IRS the the general dimensions of EPA's

experienced traders made money. authority to continuously levy up to 15
paperwork requirements and the From a market standpoint, day traders'
percent of some federal payments agency's progress toward reducing the

access to the markets provides direct made to delinquent taxpayers. GAO's

burden that those requirements competition for market makers and analysis of
records from the Internal impose, (2) describes EPA's process

institutional traders that may benefit Revenue Service (IRS) and Treasury's
for developing paperwork burden- hour

all individual investors, but day Financial Management Service (FMS)
estimates for its largest information traders' frequent trading could also
found that more than 264,000

taxpayers with delinquent tax were taking steps to comply with the expected
start, and most participant

liabilities of $2. 8 billion received funding requirements of the
ClingerCohen slots remained unfilled. As of federal payments totaling $2. 1
billion

Act. September 1999, about 43 percent of that could have been subject to a
the 1,007 positions funded for fiscal continuous levy if the levy program

GGD- 00- 68, Apr. 14, 2000 (31 pages). years 1996 through 1998 had been had
been in place at that time. GAO

Competitive Contracting: The filled. This situation was due to various
estimates that IRS could have Understandability of FAIR Act causes, from the
failure of the

generated nearly $500 million in Inventories Was Limited. Community Oriented
Policing Services annual revenues from these levies at a

Office to provide federal cost of about $35 million each year.

The Federal Activities Inventory administrative funds and adequate

Although the continuous levy program Reform (FAIR) Act of 1998 requires
staffing for the program to the fact that has the potential to raise
significant government agencies to submit each

the Police Corps statute did not revenues, the program will not reach year
to the Office of Management and

provide funding for states' its full potential when it is initially Budget
inventories of activities that, in administrative and recruiting costs.
implemented. According to officials at the judgment of the agency head, are
The Community Oriented Policing IRS and the Financial Management not
inherently governmental functions. Services Office transferred the Office
Service, both agencies plan to adopt This report describes the initial

of the Police Corps to the Office of controls for the program that are
implementation of the FAIR Act and Justice Programs in December 1998.
intended to prevent inappropriate examine inventories of inherently Although
the Office of Justice levies. However, IRS has not planned

governmental activities at the Programs has made significant any new
procedures to ensure that following agencies: the Departments of progress in
obligating funds and taxpayers receive timely refunds in Commerce and
Transportation, the establishing interagency agreements

any instances in which these controls General Services Administration, and
with the participating states, it is too

fails. Several changes to the the Environmental Protection and soon to tell
whether the Office of continuous refund levy could yield

Federal Emergency Management Justice Programs will succeed in filling
millions of dollars in additional tax

Agencies. GAO (1) describes the act's more participant slots and continue to
revenue. initial implementation, (2) analyzes the

provide guidance. clarity and understandability of FAIR GGD- 00- 66, Feb.
18, 2000 (35 pages). act inventories at the five agencies, (3)

GGD- 00- 70, Apr. 14, 2000 (51 pages). Acquisition Reform: GSA and VA
examines the extent to which these Whistleblower Protection: VA Did Efforts
to Improve Training of Their

agencies exempted commercial Little Until Recently to Inform Acquisition
Workforces. activities from competition, and (4) Employees About Their
Rights. identifies supplemental information Members of Congress have raised
that enhances the understandability of There is a consensus among experts in
concern that the acquisition workforce the agencies' inventories.

organizational culture that an in federal agencies-- personnel
organization's beliefs and values affect responsible for billions of dollars
of GGD- 00- 69, Feb. 22, 2000 (14 pages). the behavior of its members. If
government procurement Police Corps: Some Problems employees believe that an
expenditures each year-- may lack the Resolved, But Most Positions Remain
organization's culture may not protect training needed to do their jobs.
This Unfilled. them from reprisal or may even report discusses whether (1)
the support reprisal, they may hesitate to General Services Administration
The Police Corps program was

come forward to report misconduct. (GSA) and the Department of Veterans

established to help local and state law This report provides information on
Affairs (VA) have assurances that their enforcement agencies increase the

the awareness and level of confidence acquisition workforces met federal
number of officers with advanced that employees at the Department of
training requirements and whether education and training assigned to
Veterans Affairs (VA), particularly contracting officers at one GSA and

community patrol. The program offers medical employees, have about one VA
field location met each competitive scholarships of up to whistleblower
protection. GAO (1) agency's training requirements; (2) the

$7,500 a year with a lifetime maximum reviews steps that VA has taken since
Office of Federal Procurement Policy of $30, 000 to college students who

the passage of the 1994 Whistleblower had sought to ensure that civilian

agree to earn a Bachelor's Degree and Protection Act amendments to inform
agencies collected and maintained then agree to serve as police officers its
employees about their rights to standardized acquisition workforce on a beat
for a least four years. GAO protection against reprisal when information, as
required by the 1996

found that the Police Corps program reporting misconduct, (2) evaluates

Clinger- Cohen Act; and (3) GSA and VA has gotten off to a slower- than the
extent to which VA employees are

aware of their rights to such With respect to selections for Postal to
print, sell, and distribute the stamp.

protection, and (3) evaluates the Service executive positions in fiscal GAO
found that it is unclear how much extent to which VA employees are year
1999, women and minorities

it cost to develop and sell the stamp willing to report misconduct in VA
represented about 33 percent of Postal because the Postal Service did not
operations should they become aware Service executives before the track
these expenses. Postal officials of it. GAO also provides information
selections, and they were chosen for said that these costs were on the
number and the disposition of 25, or about 42 percent, of the 59
inconsequential or immaterial and it whistleblower reprisal complaints
selections for executive jobs. The

would have been too expensive to filed by VA workers with agencies Postal
Service has several efforts track them. In March, the Postal responsible for
providing planned or under way to increase Service reported that the bulk of
its whistleblower protection. diversity among its Postal Career costs to
develop and sell the stamp

Executive Service. through the end of 1999 was $5. 9 GGD- 00- 75BR, Apr. 12,
2000 (67 million. About $5. 4 million of these pages). D. C. Courts:
Implementation of GGD- 00- 78, Apr. 27, 2000 (67 pages). costs were
recovered through the 33cent Personnel Policies Requires Further Impact of
Gambling: Economic Effects

first- class portion of the stamp, Attention From the Courts' More
Measurable Than Social Effects. and the remaining $482,000 had been
Leadership. recouped from the surcharge Forty- eight states had some form of
revenues. GAO was concerned that the This report examines the personnel
legalized gambling as of 1999. The

Postal Service had not formalized its management policies and practices of
estimated revenue from legalized criteria for determining what costs the
District of Columbia Courts. Some

gambling totaled more than $54 billion would be recouped from the surcharge
Court employees have criticized those

in 1998. This report (1) examines the revenue and was not consistently
practices, alleging that they are unfair June 1999 findings of the National
applying its informal criteria, which

and at odds with the Courts' policies Gambling Impact Study Commission
changed over time. In response to on personnel management. An earlier on the
economic and social effects on GAO's recommendation, the Postal GAO report
discussed how the Courts communities and families and (2) Service indicated
that it would determine the adequacy of nonjudicial explores issues raised
by a case study formalize and consistently apply its

staff levels. (See GAO/ GGD- 99- 162, involving Atlantic City, New Jersey, a
cost recovery criteria. The Postal Aug. 1999.) This report examines gambling
destination since the 1970s.

Service plans to recoup costs from the whether (1) the Court's applicable
GAO discusses the economic impacts

surcharge revenue that were over and policies for six basic personnel of
gambling, particularly on above the costs normally incurred with functions--
performance evaluations, employment, bankruptcy, tax

a "blockbuster" commemorative stamp promotions, disciplinary measures,

revenues, and community investment; issue or a new postal product. The U. S.
training, job classifications, and equal the social effects of gambling; the

Mint's experiences offer lessons that employment opportunity-- were
prevalence of pathological gambling; may be applicable to semipostals,
consistent with commonly accepted

and whether communities offer because there are many similarities

personnel management principles and incentives to attract gambling

between the two. In the mid- 1990s, (2) the Courts generally adhered to
establishments.

GAO reviewed the commemorative their policies when implementing coin program
and found that some these functions.

GGD- 00- 80, Apr. 28, 2000 (51 pages). coins were unpopular and did not sell

Breast Cancer Research Stamp: well. GAO also found that as the GGD- 00- 76,
Mar. 30, 2000 (35 pages). Millions Raised for Research, but number of
commemorative coins U. S. Postal Service: Diversity in the

Better Cost Recovery Criteria Needed. proliferated, the market became Postal
Career Executive Service. saturated and sales fell. As sales fell,

The breast cancer research stamp was the U. S. Mint was unable to cover its

Women and minorities made about 35 the first stamp ever issued by the costs
on some commemorative coin percent of the Postal Service's

Postal Service to raise money for a programs. GAO summarized this

executive ranks at the end of fiscal nonpostal purpose-- in this case report
in testimony before Congress; year 1999. In comparison, women and medical
research on breast cancer. The see: Breast Cancer Research Stamp: minorities
made up about 58 percent stamp is a "blockbuster" Millions Raised for
Research, but of the Postal Service's overall commemorative stamp that costs
40 Better Cost Recovery Criteria Needed,

workforce. During the last five years, cents, or seven cents above the cost
of by Bernard L. Ungar, Director of women and minority representation in

a regular first- class postage stamp. The Government Business Operations the
Postal Career Executive Service Postal Service is authorized to deduct
Issues, before the Subcommittee on rose by about four percentage points.
from the seven- cent surcharge its costs International Security,
Proliferation,

and Federal Services, Senate federal government knows about the the IRS
Internal Revenue Manual. Committee on Governmental Affairs. extent of
contract bundling and its

These notices, which inform taxpayers GAO/ T- GGD- 00- 137, May 25 (11
pages). effect on small businesses, and (3) the

of any changes to their account, are Small Business Administration's sent
regardless of the dollar amounts

GGD- 00- 81, Apr. 28, 2000 (23 pages). efforts to oversee contract bundling
by involved. IRS is aware of the potential Tax Administration: IRS' federal
agencies. burden imposed on taxpayers in Implementation of the Restructuring
dealing with low- dollar notices and has Act's Personnel Flexibility
Provisions. GGD- 00- 83, Mar. 24, 2000 (23 pages). formed an internal task
team to study

Tax Administration: IRS' Low- Income the issue and identify possible The IRS
Restructuring and Reform Act

Taxpayer Clinic Program. improvements. of 1998 granted IRS greater
flexibility for handling personnel issues. Among

Under the Low- Income Taxpayer GGD- 00- 85, Apr. 21, 2000 (23 pages). other
things, the act requires IRS to Clinic Program, the Internal Revenue

Tax Administration: IRS' create a new performance Service (IRS) is
authorized to award Implementation of the Restructuring management system;
terminate matching grants to organizations that Act's Taxpayer Protection
and Rights employees for specific types of

(1) provide legal assistance to lowincome Provisions.

misconduct, such as lying under oath taxpayers in controversies in a
taxpayer matter; eliminate the use

with IRS or (2) inform persons for Passage of the Internal Revenue of
enforcement statistics in employee whom English is a second language of
Service (IRS) Restructuring and evaluations; and develop a new their tax
rights and responsibilities. Reform Act of 1998 signaled Congress' training
plan that emphasizes This report discusses (1) the steps that

strong concerns that the agency was customer services. Other provisions

IRS has taken to implement the not affording taxpayers the protection give
the agency greater discretionary program, (2) the key tax problems

and the rights they deserve. This report authority in hiring, paying, and
facing low- income taxpayers served by describes the status of IRS'
recruiting staff. This report discusses the clinics and the reasons for
these implementation of the taxpayer the status of IRS' implementation of
problems, (3) the role that the program

protection and rights provisions in the these provisions. GAO also discusses
plays in addressing these taxpayers' act. GAO (1) describes the status of
tax administration concerns that have problems, and (4) other steps that IRS
IRS' implementation of the act's

arisen in connection with the or Congress could take to address the
provisions and (2) determines what, if implementation. types of tax problems
that the clinics

any, tax administration and other now face.

concerns IRS has identified in GGD- 00- 82, Mar. 31, 2000 (31 pages).
implementing the provisions. Small Businesses: Limited Information

GGD- 00- 84, Apr. 14, 2000 (11 pages). Available on Contract Bundling's

Tax Administration: IRS' Low- Dollar GGD- 00- 86, Apr. 7, 2000 (31 pages).
Extent and Effects. Notices Sent to Individual Taxpayers.

District of Columbia: Issues Related to the Youngstown Prison Report and
Federal agencies have been combining

Of the more than 31 million computergenerated Lorton Closure Process.

existing government contracts into notices that the Internal fewer contracts
in order to streamline Revenue Service (IRS) sent to In response to
disturbances at a the procurement process and cut taxpayers in 1999, about
1. 5 million

contract prison facility in Youngstown, costs. This process is known as were
for small amounts of money- amounts Ohio, the Office of the Corrections
contract consolidation. Congress and due of less than $5 or refunds

Trustee for the District of Columbia small business advocates have been of
less than $1. The agency spends made several recommendations in a concerned
that contract consolidation about $0. 42 to prepare and mail out 1988
report. Also, the Lorton facility may harm small businesses' ability to
these low- dollar notices. The cost rises

that houses prisoners from the District compete for contracts. Contracts
that an additional $1. 30 if IRS needs to of Columbia is closing, and those
are consolidated to such an extent that process a payment received from a

inmates are being transferred to the they present a barrier to small
taxpayer because of the original federal Bureau of Prisons. In addition
businesses' ability to compete for them notice, and by another $14. 32 if it
to requiring the closing of the Lorton are considered to be "bundled needs
to respond to a taxpayer inquiry facility, the National Capital contracts."
This report discusses (1) about the notice. IRS sends low- dollar
Revitalization and Self- Government whether the government has met the

notices to taxpayers because of Improvement Act of 1997 required the
governmentwide goal of awarding 23 statutory requirements, such as to Bureau
of Prisons to house at least percent of its federal prime contracts correct
a math error or issue a notice 2,000 D. C. inmates in private contract to
small businesses, (2) what the of deficiency, or in accordance with
facilities by the end of 1999. This

report discusses (1) the D. C. offerors, and (2) assesses the effect of GGD-
00- 97, May 26, 2000 (62 pages). Department of Corrections' response

solicitation practices on competition. Northern Mariana Islands: Procedures
to the Trustee's recommendations; (2)

for Processing Aliens and the Bureau of Prisons' efforts to GGD- 00- 89,
Apr. 6, 2000 (47 pages). Merchandise. comply with the privatization

CFTC and SEC: Issues Related to the requirements of the Revitalization Act;
Shad- Johnson Jurisdictional Accord.

The Northern Mariana Islands are a and (3) any challenges associated with U.
S. territory with commonwealth closing Lorton by the December 31,

In 1981, the Commodities Futures status in the western Pacific. Since 2001,
deadline set by law. Trading Commission (CFTC) and the

1984, Members of Congress and Securities and Exchange Commission successive
administrations have raised GGD- 00- 87, May 2, 2000 (23 pages). (SEC)
entered into an agreement, concerns about the Islands' ability to District
of Columbia: Management known as the Shad- Johnson effectively implement
their Issues Concerning Two District Leases.

Jurisdictional Accord, that prohibits immigration laws and control the

futures trading on single stocks and on export and import of goods. This
Members of Congress have raised

some stock indexes. The prohibitions report provides data on the Islands'
concern about alleged waste and

reflect concerns that such futures procedures for controlling the flow of
mismanagement in the District of could be used as substitutes for single
aliens and goods into and out of their

Columbia's leasing practices. This stocks to circumvent securities laws
territory. GAO provides data on the report focuses on two leases-- one for
and regulations. This report analyzes aliens' use of public health care and
two buildings to be used as homeless (1) the extent to which U. S.
securities,

education and their involvement in shelters that have stood vacant since
foreign futures, and over- the- counter crime in the Islands. 1992 and the
other a reportedly markets trade stock- based derivatives underused facility
initially used as a that are economically similar to the

GGD- 00- 98, Mar. 30, 2000 (27 pages). drug treatment clinic. GAO determines
futures prohibited from trading by the Federal Buildings: Billions Are
Needed (1) whether the person or persons who

accord; (2) the potential effect of the for Repairs and Alterations.
approved the leases were authorized accord's trading prohibitions on to do
so; (2) the current status of the derivatives market participants; (3)
Billions of dollars are needed for properties, leases, costs, and

concerns about calls to repeal the repairs and alterations at federal
utilization; and (3) the steps the accord's trading prohibitions; and (4)
buildings. This situation is not new. District has taken or is taking to
help

jurisdictional and other approaches to Nearly a decade ago, GAO reported
ensure that leased properties, in addressing these concerns. that federal
buildings had suffered general, are effectively managed and from years of
neglect and, as a result, used.

GGD- 00- 92, Apr. 7, 2000 (19 pages). about $4 billion was needed to bring
New Dollar Coin: Public Perception of these structures up to standard. (See

GGD- 00- 88, Apr. 14, 2000 (15 pages). Advertising. GAO/ GGD- 91- 57, May
1991.) GAO

General Services Administration: recommended that the General Leasing
Practices in Selected Regions. Members of Congress have raised Services
Administration (GSA) adopt a

concerns that the U. S. Mint's more strategic approach to managing This
report reviews the process used

promotion of its new dollar coin as a repairs and alternations, improve by
the General Services

"golden dollar" might mislead the program data, and explore financing
Administration's (GSA) Public public into thinking that the coin

opportunities for repair and alteration Buildings Service to procure leased
actually contains gold. GAO needs. GSA has yet to fully implement space for
federal agencies. Members of contracted with a national market those
suggestions. GSA officials Congress have raised concerns about research firm
to survey a sample of recognize that more needs to be done possible
limitations on competition

more than 1,000 U. S. adults on to effectively respond to growing during the
lease solicitation process. whether they had seen any advertising

demands for repairs and alterations. GAO (1) identifies the approaches that
on the new dollar coin and, if so, GSA has several initiatives under way
three of GSA's 11 offices-- Philadelphia, whether they believed that the
coin that, if fully developed and effectively Pennsylvania; Atlanta,
Georgia; and

contained any gold. The survey found implemented, could satisfy GAO's
Washington, D. C.-- used to lease space, that 57 percent of the adults had
seen earlier recommendations, lead to including how each region determines
or heard advertising on the new dollar better program oversight, and promote
an agency's space requirements,

coin as of March 2000. Thirteen a more strategic approach to meeting
identifies and assesses potential space, percent of respondents believed
that repair and alterations needs. GAO and communicates with actual the new
coin contained gold. summarized this report in testimony

before Congress; see: Federal

Buildings: Billions Are Needed for unpredictable plan use/ excessive risk,
have spent $31. 2 million on the Task

Repairs and Alterations, by Bernard L. and noncompetitive premium rates. An
Force. Ungar, Director of Government

adequate enrollment base is perhaps Business Operations Issues, before the
one of the most important GGD- 00- 103, May 1, 2000 (35 pages). Subcommittee
on Economic requirements for a plan to sustain its Alien Smuggling:
Management and Development, Public Buildings,

operations. Plan enrollment Operational Improvements Needed to Hazardous
Materials, and Pipeline information showed that 46 of the 62 Address Growing
Problem. Transportation, House Committee on

HMOs that withdrew from the program Transportation and Infrastructure.

in 2000 actually increased enrollments Immigration and Naturalization

GAO/ T- GGD- 00- 73, Apr. 11 (11 pages). between 1998 and 1999, 12 plans
lost

Service (INS) data show that during enrollment those years, and four plans
the last two fiscal years, alien

GGD- 00- 99, May 5, 2000 (47 pages). only had enrollment data for one year.

smuggling has increased, and INS Commodity Exchange Act: Issues Of the 46
HMOs that increased predicts that the smuggling will Related to the
Regulation of Electronic

enrollments, these increases continue to grow. INS issued an antismuggling
Trading Systems. numbered less than 100 enrollees for

strategy in 1997 that 26 of them. In addition, of the 62 plans

contains domestic and international New technology has resulted in the

that withdrew in 2000, 26 had fewer components. The domestic component
development and the use of electronic than 300 enrollees-- a level at which
the

calls for (1) INS to focus its systems that are changing the way that Office
of Personnel Management has

investigations on major smuggling derivatives are traded. Although these
authority to terminate a plan's

operations and (2) INS' anti- smuggling systems have benefitted the
participation in the program. investigative field units to coordinate
derivatives markets and their

their activities and share antismuggling participants, they have also raised
GGD- 00- 101BR, May 31, 2000 (59 intelligence with each other. regulatory
concerns, including pages). Campaign Finance Task Force:

INS' initial efforts will be directed at questions about the appropriate
Problems and Disagreements Initially South/ Central Texas, which is one of
regulation of electronic trading Hampered Justice's Investigation.

the three major alien smuggling systems for exchange- traded futures
corridors in the United States. The and over- the- counter derivatives. This
The Campaign Finance Task Force was international component calls for INS
report answers the following established by Attorney General Janet to
cooperate with foreign governments questions: How is technology being Reno
to investigate allegations of to disrupt alien smuggling in countries used
in the exchange- trade futures

illegal fundraising during the 1996 that are either major sources of illegal
market, and what concerns does this presidential election. Following its
immigration or transit routes for aliens raise under the Commodity Exchange
creation, the Task Force faced several seeking to enter the United States.

Act? How is technology being used in management challenges and Several
factors may have impeded INS' the over- the- counter derivatives

operational problems. Notably, the ability to implement and evaluate the
market, and what concerns does this working relationship between the
effectiveness of the domestic raise under the Act? What alternatives

Justice Department and the FBI was component of its strategy. These have
been suggested to address the strained and hampered by mutual factors
include a lack of program concerns raised under the Act by the

concerns of trust, with DOJ attorneys coordination, the absence of an use of
technology in the exchangetraded

and FBI investigators disagreeing over automated case- tracking and futures
and over- the- counter which investigative approach to take.

management system, and limited derivatives markets? To get the investigation
on track, in the performance measures. INS' fall of 1997, DOJ and the FBI
changed intelligence program has been GGD- 00- 100, May 2, 2000 (23 pages).
the Task Force's leadership, impeded by a lack of understanding Federal
Employees' Health Program: streamlined the Task Force's oversight among
field staff on how to report Reasons Why HMOs Withdrew in 1999 structure,
and committed additional intelligence information, a lack of staff and 2000.
staff and information management

to carry out intelligence work at most resources. The Task Force has INS
district offices, and a cumbersome In plan years 1999 and 2000, 136 health
launched 121 investigations as of the process of organizing data that does
maintenance organizations (HMO) end of 1999. It has begun 24 not allow for
rapid retrieval and withdrew from the Federal Employees' prosecutions, and
15 persons and one analysis. As a result, INS is limited in Health Benefits
Program. The factors

corporation have been convicted as of its ability to identify targets for
most often cited for HMO withdrawals

March 2000. Through fiscal year 1999, enforcement and to focus its resources

from the program in those two years DOJ and the FBI estimated that they on
efforts that would have the greatest

were insufficient enrollments, impact. In the international area, INS

may not be having more than a issue a performance accountability Needed to
Address Problem of Unpaid temporary impact on alien smuggling

report on the performance achieved Awards. overseas. Impediments in this
area during the previous fiscal year include corruption among some compared
to the planned performance

The securities industry uses foreign officials and the lack of laws in that
year's plan. GAO must evaluate arbitration to resolve disputes against alien
smuggling in some each of the annual performance

between industry members and countries. Without improvements in its reports
and provide comments to individual investors that involve programs, INS'
ability to disrupt and Congress no later than April 15. This hundreds of
millions of dollars each deter increasingly sophisticated and

report presents GAO's comments on year. A 1992 GAO report found no organized
alien smugglers and the Mayor's performance report for indication of a
proindustry bias in the dismantle their operations will fiscal year 1999,
which was due on arbitration process but concluded that

continue to be hampered. March 1, 2000, but was issued on the forums
sponsored by the securities

March 7, 2000. self- regulatory organizations lacked GGD- 00- 106, Mar. 29,
2000 (23 pages). internal controls to provide investors Managing for
Results: Barriers to GGD- 00- 113BR, May 12, 2000 (55 with reasonable
assurances that Interagency Coordination.

pages). Senior Executive Service: arbitrators were independent and
Retirement Trends Underscore the competent. (See GAO/ GGD- 92- 74, May
Virtually all the results that the federal

Importance of Succession Planning. 1992.) GAO recommended ways for
government hopes to achieve require

the industry to improve arbitrator the coordinated effort of two or more The
federal government, as a whole, selection, qualifications, and training.
agencies. This shared responsibility is may need to replace a substantial
Eight years later, GAO found that the the result of several factors,
including

number of career members of the securities industry self- regulatory the
piecemeal evolution of federal Senior Executive Service (SES) who

organizations-- the National programs and the complexity of public will
become eligible to retire between Association of Securities Dealers and
needs. GAO's work has shown September 1999 and September 2005.

the New York Stock Exchange-- have repeatedly that mission fragmentation
GAO's analysis of a group of nearly implemented GAO's earlier and overlap
are widespread in the

6,000 career SES members showed recommendations by giving arbitration
government and that crosscutting that 71 percent will reach regular
participants a larger role in selecting program efforts are poorly
retirement eligibility as of the end of arbitrators, periodically surveying
coordinated. Without such fiscal year 2005. The proportion of arbitrators to
verify background

coordination, scarce funds are wasted, career SES members employed in
information, and improving arbitrator

program customers are confused and selected agencies and job series who
training. GAO could not reach

frustrated, and the overall will be eligible to retire by the end of
conclusions about the fairness of the effectiveness of federal programs is
fiscal year 2005 varies and differs from arbitration process from case
outcome undermined. This report (1) provides the governmentwide rate of 71
statistics. More importantly, GAO an overview of programs in which

percent. For instance, the Department found that a number of broker- dealers
GAO identified mission fragmentation of Veterans Affairs will have the that
had left the securities industry and overlap in 1998 and 1999; (2) highest
SES regular retirement often did not pay the arbitration discusses barriers
to interagency

eligibility rate-- 82 percent-- while the awards rendered against them.
coordination cited in GAO reports

eligibility rates at the Environmental Ultimately, recovering losses caused
issued during the past decade; and (3)

Protection Agency and the Nuclear by undercapitalized, financially
summarizes potential strategies for Regulatory Commission will be among
irresponsible, or unscrupulous brokerdealers

improving the effectiveness and the lowest. These projected retirement is
difficult-- if not impossible- for efficiency of crosscutting programs.
trends show that the government's

investors. senior executive ranks are aging.

GGD- 00- 107, Apr. 14, 2000 (31 pages). These trends underscore the

GGD- 00- 117, May 24, 2000 (91 pages). District of Columbia Government:
importance of SES succession State and Federal Prisoners: Profiles of
Performance Report's Adherence to planning because the SES retirements

Inmate Characteristics in 1991 and Statutory Requirements. will result in a
loss of leadership

1997. continuity, institutional knowledge, The Mayor of the District of
Columbia and expertise throughout government.

According to the Bureau of Justice is required to issue no later than March
Statistics, between 1990 and 1998 the 1 of each year a performance GGD- 00-
115, June 15, 2000 (79 rate of incarceration in American accountability plan
with goals for the pages). Securities Arbitration: Actions

prisons rose from 292 to 461 sentenced next fiscal year. The District must
also inmates for every 100,000 residents.

During that same period, the number required to review JSAS' costs every

come at the expense of the of prisoners rose from about 774, 000 to three
years and determine whether the shareholders. about 1, 302, 00-- an average
annual participants' contributions covered increase of 6.7 percent. This
report one- half of the costs. If the GGD- 00- 142, June 30, 2000 (47
analyzes survey data collected from contributions are less than one- half of
pages). U. S. Postal Service: Diversity prisoners by the Bureau on personal

these costs, GAO is to determine what in District Management- Level
demographics, family background, adjustments would be needed to Positions.
criminal record, drug history, and

achieve the 50- percent figure. GAO participation in treatment by state and
issued its first report on this subject in This report supplements an
earlier federal inmates in 1998 to determine

1997. (See GAO/ GGD- 97- 87.) GAO report (GAO/ GGD- 00- 76, Mar. any
differences between state and

2000) on the representation of women federal inmates or by current offense
GGD- 00- 126, June 7, 2000 (127

and minorities in management- level type, race, or gender. GAO also

pages). Mutual Fund Fees: Additional jobs at the U. S. Postal Service. GAO
compared 1991 and 1997 data to Disclosure Could Encourage Price

provides statistical information on the determine any changes in inmate
Competition. representation of women and profiles of state and federal
prisoners

minorities in Executive and or by offense type, race, or gender. In GAO was
unable to determine the Administrative Schedule (EAS) levels 1997, most
state and federal prisoners

extent to which the growth in mutual 16 through 26 in the Service were male,
minority, and unmarried fund assets during the 1990s provided nationwide for
fiscal year 1999. GAO and employed in the month before the opportunity for
mutual fund also describes for the Chicago, Illinois, arrest. Comparing 1991
and 1997, the advisers to reduce fees on the funds and Akron, Ohio, postal
districts the primary change in personal they operated because most fund

(1) representation of women and demographics for state prisoners was

advisers' costs are not collected or minorities in EAS levels 16 through 26,
their age 32 percent were more than 35 disclosed. Using data provided by the
(2) initiatives undertaken to promote in 1991, compared with 42 percent in
mutual fund industry association, GAO diversity, and (3) lessons identified
by 1997. For federal prisoners, the most found that the 480 percent growth
in district officials that seek to increase significant change was racial
total revenues for advisers and other diversity. GAO also provides
composition: in 1991, whites service providers for stock and bond
information on alleged equal

comprised 38 percent and blacks 30 funds was commensurate with the

employment opportunity concerns at percent of inmates, compared with 30
total 490 percent asset growth in those the Youngstown, Ohio, postal site.
percent whites and 38 percent blacks funds between 1990 and 1998. Studies in
1997. In comparing state prisoners

have also found a mixed trend in fees GGD- 00- 145, Sept. 21, 2000 (80 with
federal prisoners, one of the across the industry. Although the pages).
Reinventing Government: biggest differences was in the type of largest
mutual funds generally grew

Status of NPR Recommendations at 10 crime for which they were imprisoned.
faster than the industry average, their

Federal Agencies. For example, drug offenders average expense ratios
declined for accounted for more than 60 percent of stock funds but not for
bond funds.

As it seeks to "reinvent itself," the federal inmates in 1997 but only 20
Asset growth usually resulted in lower federal government confronts the
percent of state inmates, while violent expense ratios, but not all funds
made challenge of effectively addressing offenders accounted for 47 percent
of reductions. Moreover, the mutual fund several emerging issues, including
the state inmates compared with 15

industry generally does not try to impact of globalization, technological
percent of federal inmates in 1997. compete on the basis of fees. Although
innovations, demographic shifts, and mutual funds disclose most charges

changing security threats in a postCold

GGD- 00- 125, May 25, 2000 (19 pages). for financial services in dollars,
they War world. This report discusses:

Federal Pensions: Judicial Survivors' do not provide amounts paid by (1) the
factors influencing the reform Annuities System Costs. individual investors
in dollars. efforts of the National Partnership for Furthermore, mutual fund
fees are not

Reinventing Government (NPR), (2) The Judicial Survivors' Annuities

a primary consideration for investors. the status of efforts by 10 agencies
to System (JSAS) is one of several

Mutual fund directors are required to implement the NPR's survivor benefit
plans applicable to review fees but mutual funds' recommendations, and (3)
the results specific groups of federal workers.

organizational structure embodies that the 10 agencies achieved by JSAS
provides annuities to the

conflict of interest over fees. This implementing those recommendations.

surviving spouse and dependent conflict arises because the adviser has GAO
found that the effects of NPR

children of deceased federal judges the incentive to maximize its own cannot
be isolated from those of other

and other judicial officials. GAO is revenues; however, such action could
reform efforts to improve government

performance. The 10 agencies believed assessment, congressional committees
basis. Although a deviation from the that almost 90 percent of the 72 could
benefit from the annual financial

original plan, it is similar to other recommendations GAO reviewed were and
operational reports that organizations GAO looked at. either fully or
partially implemented. Commerce is required to submit to Congress but has
not submitted since

GGD- 00- 158, June 30, 2000 (35 GGD- 00- 146, June 16, 2000 (15 1995. GAO
also found that NTIS' World pages). Department of Veterans pages). IRS' 2000
Tax Filing Season: News Connection, which provides for Affairs: Credit Costs
and Risks of

IRS Measures Show Tax Processing a fee an online foreign news service,
Proposed VA Small Business Loan Systems Performed Slightly Better does fall
within the agency's mission to

Guarantee Program. Than in 1999. disseminate technical information, but that
it may have a detrimental effect on This report analyzes the costs and the
The Internal Revenue Service's (IRS)

private sector firms offering similar risks to the federal government of a
tax processing systems worked

service because NTIS does not pay to proposed program to guarantee small
slightly better in the 2000 filing season obtain or translate foreign news
or pay business loans to veterans for the than in the 1999 filing season,
taxes as private firms do. acquisition of fixed assets used in a according
to IRS' performance data business. GAO analyzes (1) the federal and comments
from agency officials GGD- 00- 151, June 23, 2000 (27

credit costs and the risks of the and representatives of large tax pages).
Customs Service: Information proposed program, (2) the cost impact
practitioners. As of April 2000, for on the Design of the Self- Inspection

of alternative borrower requirements example, IRS reported that it had
Program. in the implementation of the proposed experienced fewer work
stoppages program, and (3) the administrative caused by critical system-
related The Customs' Self- inspection Program issues resulting from VA's
problems and had fewer such (SIP) provides a mechanism for

implementation of the proposed problems that remained unresolved for
management oversight of programs program. more than 24 hours. Also, IRS
reported and processes and is intended to build that it processed paper
returns faster accountability and foster integrity

GGD- 00- 159, June 23, 2000 (67 than in the 1999 filing season. throughout
the Customs Service. pages). Banking Taxation: However, IRS reported that as
of May Features of the program include Implications of Proposed Revisions
2000 it had experienced four minor

ownership of the program at all levels, Governing S- Corporations on
problems with its systems that scope that covers operational and

Community Banks. affected a small number of taxpayers. administrative areas,
use of an In some cases, IRS sent some refunds independent body to validate
selfassessments, Banks represent a small percentage of to the wrong people.
use of uniform all S- corporations (so called because worksheets that
contain questions they meet the requirements of GGD- 00- 147, June 30, 2000
(27

about essential control points for subchapter S of the Internal Revenue
pages). Information Policy: NTIS' managers, funneling of results up the

Code-- including the businesses that Financial Position Provides an chain of
command, and performance must be a domestic corporation with Opportunity to
Reassess Its Mission. of self- inspections according to a set only one class
of stock and no more schedule. On the basis of the first SIP than 75
shareholders, all of whom The National Technical Information

cycle, Customs revised the worksheets must be individuals who agree to the S

Service (NTIS), part of the Commerce to include (1) specific directions
about status). S- corporations pass through Department, has been for more
than 55

who should complete them, (2) corporate income and losses to their years a
principal collector and detailed sampling methodology and

shareholders for federal tax purposes. disseminator of federal research,
instructions, (3) citations to references As of the end of 1999, there were
about scientific, and technical reports to the for most questions, and (4)
reworded 1,300 S- corporation banks-- about 13

public. But during the last several questions designed to be more specific
percent of all banks and thrifts in the years, many federal agencies have

and less confusing. Two other United States (holding about two begun to make
their reports publicly program design issues have emerged: percent of total
bank assets), mostly available at no charge by using the (1) Customs lacks
automated systems

located in Minnesota, Texas, Iowa, Internet. Revenues from NTIS sales of to
analyze SIP results and (2) the Illinois, and Kansas. This report reports
have declined, and its solvency Assistant Commissioner for the Office
responds to a congressional mandate beyond the year 2003 is in doubt. of
Field Operations decided to requiring GAO to analyze possible

Policymakers may want to address the exercise the discretion to complete
revisions to the rules governing Scorporations

question of whether the government worksheets every six months; instead and
the potential impact still needs NTIS. To help in this worksheets are
completed on a yearly of those changes primarily on

community banks' decisions to elect Scorporation will focus on the needs of
small

processing unilateral APAs and the status.

business. According to IRS, small first phase of bilateral APAs. Of the 211

businesses are more likely than other annual reports reviewed between GGD-
00- 161, Aug. 22, 2000 (39 pages). taxpayers to have compliance

October 1995 and September 1999, Customer Service: Human Capital problems.
They may not always have only 15 reports involving 11 taxpayers Management
at Selected Public and

the resources needed to deal with caused IRS to adjust or consider Private
Call Centers. filing, reporting, and deposit adjusting tax returns.
requirements placed on them or Most Americans use the telephone to complex
tax issues such as GGD- 00- 169, Aug. 14, 2000 (31 pages). contact federal
agencies. As a result,

employment taxes and depreciation. Pension Plans: IRS Programs for call
centers and the people who work

Many small businesses are unaware of Resolving Deviations From TaxExemption

in them play an important role in IRS services developed specifically for
Requirements.

shaping public perceptions about the small businesses or are reluctant to go
quality of government customer to the IRS for help. Structured along By
extending tax- exempt status to service. A basic measure of successful
functional and geographic lines, IRS qualified pension plans, the nation's

customer service is whether phones has not operated in a way that best

tax laws have been used both to are being answered promptly, enables it to
serve small businesses. Its

promote the establishment of accurately, and courteously. This focus on
back- end correction of employer- sponsored pension plans and report
discusses telephone customer problems versus up- front prevention is to
regulate those plans. Internal service operations at organizations

problematic for small businesses that Revenue Service (IRS) records for the
that have noteworthy or innovative need assistance up front and that, most
recent available year (1997) strategies and practices and that absent that
help, are at a high risk of indicated that there were about handle calls
dealing with complex going out of business if problems arise. 965, 000
private, employer- sponsored, subjects comparable to those of the

tax- qualified pension plans for about Internal Revenue Service (IRS). GAO's

GGD- 00- 168, Aug. 14, 2000 (35 pages). 127 million participants that
amassed objectives were to identify human Tax Administration: IRS' Advance

assets totaling about $3. 6 trillion. For capital needs as part of
developing Pricing Agreement Program. plans that might be at risk of losing
management strategies and practices

their tax- exempt status because of to meet missions and goals; implement
Under an advance pricing agreement

deviations from tax code human capital strategies and practices (APA)
program, the Internal Revenue requirements, the IRS has developed and to
evaluate human capital Service (IRS) and taxpayers agree on two programs to
encourage plan strategies and practices to the methods to determine the
prices

sponsors to: (1) detect and correct continuously improve their operations.
that related companies charge each

deviations; (2) report those Of the 11 organizations GAO studied, other when
transferring goods and corrections to IRS for approval; and the following
three themes emerged: services over a specific period.

(3) pay a compliance fee. For IRS (1) human capital needs were based on
Unilateral APAs are between IRS and qualification failure case closings in
clearly articulated service- level goals; specific taxpayers; bilateral APAs
fiscal year 1999, 42 percent of 1,802 (2) the goals of the call centers were
concern negotiations with tax pension plans had plan document supported by
top leadership who authorities in foreign countries that failures, 66
percent had one understood telephone customer have income tax treaties with
the

operational failure, less than two service, and (3) managers reassessed
United States. Taxpayers agree to percent had demographic failures, and
human capital needs. submit annual reports that nine percent had both
operational and

demonstrate compliance with terms of document failures. Pension plan GGD-
00- 166, Aug. 10, 2000 (47 pages). the agreement. According to an IRS
sponsors were assessed monetary Tax Administration: IRS Faces Several
official, most taxpayers in the program sanctions that GAO estimated were 10
Challenges as It Attempts to Better were large corporations spread across
times greater than the compliance fee Serve Small Businesses. many
industries. As of September that could have been assessed had the 1999, 10
percent of the 1, 245 large plan sponsors reported the As part of its plan
to fully embrace corporate taxpayers with international qualification
failures to IRS for

customer service as a core related parties had an approved supervised
correction. IRS and organizational value, the IRS is agreement or one
pending. This 10

pension experts thought that existing restructuring operations around
percent accounted for 42 percent of IRS programs could be enhanced. specific
groups of taxpayers. One new the dollar value of the intercompany
organizational unit, the Small Business transactions. IRS did not
consistently and Self- Employed Operating Division, meet its timeliness
targets for

GGD- 00- 171, July 24, 2000 (31 pages). decisionmaking, financial expected
to affect about 1. 3 million

U. S. Attorneys: Laws, Rules, and management, information and taxpayers---
about 1. 3 percent of all

Policies Governing Political Activities. technology management, and human

taxable returns--- and generate a capital management. projected $5. 8
billion in additional tax U. S. Attorneys are prohibited from liability in
2000. AMT is not indexed to actively participating in Hatch Act GGD- 00-
176, Sept. 1, 2000 (106 account for inflation and the

partisan political activities. The pages). Illegal Aliens: Opportunities
legislation that excludes personal tax Attorney General has sent policy

Exist to Improve the Expedited credits from AMT rules will expire in
memorandums and made restrictions

Removal Process. 2001. AMT features are expected to similar to those imposed
by statute on have increasing budgetary significance all federal employees
before the Hatch In fiscal year 1999, Immigration and

in future years. It is projected to shift Act Reform Amendments of 1993. For
Naturalization Service (INS)

from affecting mostly higher- income example, U. S. attorneys cannot speak
inspectors generally complied with the individuals to more middle- income at
political functions or actively requirements of the expedited removal
taxpayers between 2000 and 2010 and participate in fund- raising. With
process, whereby aliens who have may also affect some economic Department of
Justice (DOJ) approval,

made false representations about incentives created by the regular tax they
can attend fund- raisers and they themselves or who do not have visas
system. can contribute to candidates, so long or passports are removed from
the as their donation is not promoted.

United States. In the Los Angeles,

GGD- 00- 181, Sept. 7, 2000 (30 pages). There have been no investigations of
Miami, and New York asylum offices, U. S. Customs Service: OR& R Needs to
Hatch Act violations since 1995,

all cases concerning credible fear of Resolve Timeliness and Data Problems
according to DOJ officials. In January

persecution or torture were Involving Headquarters Rulings. 2000, DOJ began
tracking U. S. documented appropriately. In cases Attorney Office inquiries
for advice

where aliens wished to withdraw a This report focuses on the timeliness and
approval about issue- oriented claim of fear of persecution or torture,

with which the Customs Service's political activities. In May 2000, DOJ they
did not have to cite a reason for Office of Regulations and Rulings revised
the U. S. Attorneys' Manual to recanting until July 2000, when, after (OR&
R) issues rulings on such things

include DOJ approval before discussions with GAO, reason for as the proper
classification and advocating passage or defeat of state

recanting became a requirement. valuation of imported goods. GAO or local
legislation, the need to be According to GAO's survey, an found that OR& R
continues to have sensitive to public perception of the estimated 78 percent
of the aliens significant problems issuing the proper role, and the limits
of federal determined to have a credible fear of majority of headquarters
rulings within prosecutors. Over the years, Congress

persecution or torture were released the 120- day goal it has set as a has
restricted the use of federal funds

from detention. benchmark for issuing timely rulings.

for political activities. It appears that delays are caused by GGD- 00- 180,
Aug. 15, 2000 (31 pages). various factors, including the need for GGD- 00-
174, Aug. 11, 2000 (15 pages). Alternative Minimum Tax: An additional
information when Confirmation of Political Appointees: Overview of Its
Rationale and Impact processing rulings and the mishandling Eliciting
Nominees' Views on

on Individual Taxpayers. of requests by OR& R and its

Leadership and Management Issues. customers. However, OR& R This report is a
nontechnical primer on acknowledges that it has had problems

Members of Congress have raised the alternative minimum tax (AMT) for

because of staffing shortages and concerns that some political individuals,
which is extended to help

workload demands. OR& R has taken appointees in the Executive Branch ensure
that high- income individuals do steps to correct problems with its lack the
leadership and management

not avoid significant tax liability. AMT Legal Case Inventory System, but
skills needed to successfully address

is a separate tax system that parallels problems persist. the challenges
facing federal agencies. the regular individual income tax

This report suggests questions to assist system. The Department of the GGD-
00- 183, Sept. 8, 2000 (99 pages). the Senate in its constitutional role of
Treasury estimated that about 17 Olympic Games: Federal Government
confirming nominees to help ensure million taxpayers would pay additional
Provides Significant Funding and

that future political appointees have taxes under AMT by 2010. A minimum
Support. the requisite skills to be resultsoriented tax was first enacted in
1969 after the leaders and managers. The

Secretary of the Treasury report that The federal government provides
questions cover the following four 155 high- income individuals paid no
significant funding and support for the areas: results- oriented federal
income tax in 1966. AMT is Olympic Games when they are held in

the United States. Twenty- four federal requiring deposit on the same or
next and Laws Related to Electronic agencies provided nearly $2 billion-- in
day after collection. However, in fiscal Commerce. 1999 dollars-- for the
1984 and 1996 year 1999, INS service centers Summer Olympic Games and the
2002

generally did not make timely fee The United States Postal Service

Winter Olympic Games. However, no deposits. According to GAO's (USPS) has
defined e- commerce governmentwide law or policy exists conservative
estimate, the resulting

initiatives to include products and that defines the federal government's
interest cost to the government, or the

services that: (1) require the use of the overall role in funding and
supporting cost of interest incurred on debt or

Internet; and (2) generate revenues for the Olympic Games that are hosted in
other obligations, was about $640,000 USPS from user charges or license the
United States. Nor is there a single in fiscal year 1999. fees. It has
identified seven ecommerce

federal agency that oversees and initiatives intended to monitors the
federal funding and

GGD- 00- 187, Aug. 14, 2000 (31 pages). facilitate the movement of messages,
support provided for the Olympic Department of Justice: Information on
merchandise, and money. For Games. Federal agencies have helped

the Office of Professional example, USPS has introduced

support the Olympic Games in Responsibility's Operations. PosteCS, an
Internet- based global response to requests for federal document delivery
system. The Stamps assistance from state and local The Department of Justice
states that Online initiative allows purchase of governments and Olympic
organizing

its attorneys should be held to the stamps and other philatelic products.

committees. Federal assistance is highest ethical standards; but

USPS introduced its eBillPay initiative, provided because these entities
have Congress, judges, and the media have an electronic bill presentment and
not had enough resources to provide

voiced concerns about the payment service, in April 2000. In the

for the infrastructure improvements professionalism and conduct of some
development stage, USPS is working

necessary to prepare the host city or to attorneys at Justice. As a result,
GAO on an electronic mailbox, which could plan and stage all aspects of the

reviewed Justice's Office of link electronic and physical addresses. Olympic
Games when hosted in the Professional Responsibility (OPR), GAO found,
however, that USPS United States.

which is responsible for investigating provided inconsistent information on
allegations of misconduct involving the status of its initiatives, did not
GGD- 00- 185, Sept. 29, 2000 (15 Justice attorneys. GAO determined: (1)
always adhere to its process pages). Immigration Benefits: INS Not how OPR
conducts its inquiries; (2) the requirements, and its financial data Making
Timely Deposits of Application

extent of OPR's workload and budget; were inaccurate and incomplete. USPS
Fees.

(3) the range of disciplinary action and believes that it has broad
statutory procedures if misconduct is found; (4) authority to offer e-
commerce One of the Immigration and OPR's oversight relationship with

products and service. The Postal Naturalization Service's (INS) primary
other Justice components; and (5) the Inspection Service, which is functions
is to provide services or extent to which OPR implemented

responsible for enforcing postal laws, benefits that facilitate entry,
residence, GAO's earlier recommendations. GAO has authority and
responsibility to employment, and naturalization of found that OPR is
following its

investigate violations of law that legal immigrants. To recover the costs
procedures and internal controls for

involve USPS e- commerce products that it incurs in providing benefits, INS
conducting inquiries into allegations of and services. GAO summarized this
is authorized to charge fees to misconduct by Justice attorneys. report in
testimony before Congress; recipients of INS services. Federal

OPR's workload and the number of see: U. S. Postal Service: Electronic
agencies, including INS, are generally staff have remained fairly level
during Commerce and Legal Matters by required by Department of the the past
four fiscal years. Bernard L. Ungar, Director of Treasury regulations to
deposit fees Administrative disciplinary actions for

Government Business Operations totaling $5,000 or more on the same
professional misconduct can range Issues, before the Subcommittee on day or
the day after they are collected. from an oral reprimand to termination
International Security, Proliferation, This report discusses: (1) the extent
to of employment. Justice OPR monitors and Federal Services, Senate which
INS made timely deposits of the investigative activities of the OPRs
Committee on Governmental Affairs.

fees collected from aliens who applied for FBI and DEA and relies on their
GAO/ T- GGD- 00- 195, Sept. 7 (13 pages).

for benefits; and (2) the potential costs monthly status reports to stay
abreast to the government if INS deposits were of their activities in their
1992 and 1994 GGD- 00- 190, Sept. 29, 2000 (79

not timely. Because INS data were reports. pages). Small Business: Efforts
to incomplete, GAO was unable to fully Facilitate Equity Capital Formation.
determine the extent to which INS

GGD- 00- 188, Sept. 7, 2000 (78 pages). complied with Treasury regulations
U. S. Postal Service: Postal Activities

This report discusses the access of Sixty- three of 70 agencies explained
Implementation in EPA Program U. S. small businesses to equity capital that
they automatically collected Offices and Proposed Lead Rule. financing and
describes the Small information when individuals visited

Business Administration's Office of their web sites through the use of logs
The Office of Prevention, Pesticides Advocacy (SBA- OA) estimate of their

(date/ time of access, pages visited, and Toxic Substances (OPPTS) perceived
needs for equity capital etc.). implements the current Regulatory financing.
GAO studied recent trends Flexibility Act (RFA) guidance in small business
equity capital

GGD- 00- 192, Sept. 27, 2000 (119 document with what appears to be a
financing and the potential effects of pages). Civil Rights Division:
Selection high threshold for what constitutes a market practices and
securities law

of Cases and Reasons Matters Were significant economic impact on a
regulations on such financing. From Closed.

substantial number of small entities the results of this study, SBA- OA
(SEISNSE). This report: (1) reviews estimated that about 10 percent of the
This report focuses on the Department guidance that OPPTS and the businesses
started in a year would

of Justice's Civil Rights Division's Environmental Protection Agency's

need equity capital, as well as about 25 (CRT) approach to its selection of
(EPA) three other major program percent of faster growing small cases and
reasons why matters were offices have used during the past 10 businesses.
Available data are closed. GAO reviewed the case years to determine whether
their insufficient for updating the estimate selection in CRT's Housing and
Civil

proposed rules could be certified as of small businesses' equity capital
Enforcement, Employment Litigation, not having a SEISNSE, (2) compares
needs, but indicate for the 1994- 1999

and Voting sections. According to the rate at which OPPTS certified that
period that the level of small business

officials in these sections, CRT lacks its substantive proposed rules

equity financing increased written procedures for selecting cases

published during 1994 through 1999 dramatically. The equity capital to
pursue. To determine CRT's would not have a SEISNSE with the formation in
the unregulated equity approach for selecting cases to pursue, rates in
EPA's other major program capital market is affected by market GAO reviewed
21 Employment offices, and (3) discusses the

practices, which reflect the efforts of Litigation Cases that were initiated
methodology that OPPTS used in the investors and other market during fiscal
year (FY) 1998. GAO's

economic analysis for the proposed participants to maximize returns and
review of the Employment Litigation

lead rule. GAO found that OPPTS and to manage risks on investments. In
section case files showed that several EPA's other major program offices
addition to simplifying registrations

of the discretionary cases targeted a have adopted three very different sets

and exemptions, federal and state particular type of discrimination that of
guidance documents during the past governments have tried to reduce the
involved complaints based on sexual

10 years to determine if their proposed regulatory burden and costs for
small harassment. To determine why matters rules could be certified as not
having a businesses seeking equity capital were closed, GAO reviewed the

SEISNSE. The RFA certification rate financing in the regulated securities
population of 54 Housing and Civil in OPPTS and in each of the three
markets.

Enforcement section closed matters other major program offices increased and
22 Voting section closed matters after the implementation of the Small GGD-
00- 191, Sept. 5, 2000 (66 pages). initiated in FY 1998. For cases Business
Regulatory Enforcement Internet Privacy: Agencies' Efforts to involving the
Employment Litigation Fairness Act in 1996. According to the Implement OMB's
Privacy Policy. section, GAO reviewed a statistically summary of the draft
revised

representative sample of 64 closed economic analysis, OPPTS expected By
issuing its 1999 guidance, the Office matters from the population of 149
that the proposed lead rule would of Management and Budget (OMB) closed
employment matters in FY

affect more than 8, 600 small took an important step in bringing the 1998.
Further investigation was based companies and that as many as 464 of federal
government's protection of an on factors such as whether the matter them
would experience first- year individual's privacy in line with current could
affect a larger population, target

compliance costs of at least one technological advancements by enforcement
in a particular location, percent of their annual revenues. providing
guidance to agencies for target a particular type of Therefore, if OPPTS had
used this

addressing the collection of on- line discrimination, or result in a change
of analytic approach and the discretion personal information through the
online policies or practices that were permitted in EPA's RFA guidance, it
posting of privacy policies. Sixtyseven discriminatory. could have chosen
not to certify the of the 70 executive agencies

rule. The Office's initial and draft GAO reviewed in 2000 had privacy GGD-
00- 193, Sept. 20, 2000 (39 revised analyses and the conclusions policies on
their web sites that were pages). Regulatory Flexibility Act: that it based
on those analyses were clearly labeled and easily accessed.

within the discretion permitted under the FY 2001 plan and their sections of
among federal financial regulators and the RFA and the EPA guidance. the FY
2001 budget submission state insurance regulators. Regulators showed that
performance goals,

recognize the need to improve their

GGD- 00- 197R, Sept. 25, 2000 (17 budgetary resources, and FTE levels

coordination and have taken or plan to pages). Observations on the Fiscal
were the same in those two documents

take several measures. GAO Year 1999 Annual Program in most cases but
differed to some summarized this report in testimony Performance Report and
Fiscal Years

degree in other cases. On the basis of before Congress; see: Insurance 2000
and 2001 Annual Performance its examination of the FY 2001 plan,

Regulation: Scandal Highlights Need Plans for Selected Science Agencies GAO
believes that Commerce has

for States to Strengthen Regulatory Within the Department of Commerce.
addressed some, but not all, of the Oversight, by Richard J. Hillman,
weaknesses GAO identified when Associate Director for Financial This
correspondence analyzes the examining the previous year's plan.

Institutions and Market Issues, before fiscal year 1999 annual program Those
weaknesses involved strategies,

the House Subcommittee on Finance performance report and fiscal years

resources, and performance data and Hazardous Materials, Committee 2000 and
2001 annual performance

verification and validation as well as on Commerce. GAO/ T- GGD- 00- 209,
plans for selected science agencies performance measures. Sept. 19 (16
pages). within the Department of Commerce. GAO discusses whether: (1) the

GGD- 00- 198, Sept. 19, 2000 (75 GGD- 00- 199R, Sept. 29, 2000 (13 National
Oceanic and Atmospheric pages). Insurance Regulation: Scandal pages).
Federal Lobbying: China Administration (NOAA) and the Highlights Need for
Strengthened Permanent Normal Trade Relations Technology Administration (TA)
Regulatory Oversight. (PNTR) Lobbying Activities and Costs. sections of
Commerce's FY 1999 performance report and FY 2000 and

Despite being barred from the This correspondence focuses on

FY 2001 performance plans told a securities industry, Martin Frankel is

whether the efforts of the White House coherent story in addressing science

alleged to have anonymously acquired China Trade Relations Working Group
issues, (2) NOAA's and TA's

and controlled insurance companies in and selected agencies violated federal
performance goals, budgetary and full several states and to have exercised
anti- lobbying laws. GAO reviewed time equivalent staffing resource secret
control over a small securities documents provided by the White requirements
identified in Commerce's

firm, using it to take custody of House and agencies in the Working FY 2001
performance plan linked to insurance company assets and Group through August
2000. GAO did those in NOAA's and TA's sections of

provided false documents on not find any violations of the Commerce's FY
2001 congressional investment activity. He allegedly antilobbying
restrictions, aside from budget submission, and (3) the NOAA

diverted these assets to other accounts one violation that involved a
minimal and TA sections of Commerce's FY he controlled to support the scam
and

expenditure of appropriated funds. 2001 performance plan addressed the his
lavish lifestyle. Weaknesses in weaknesses that GAO identified in its

insurance regulatory oversight, GGD- 00- 201, Sept. 29, 2000 (46 review of
Commerce's FY 2000

including inadequate analysis of pages). Border Patrol: Procurement of
performance plan. The NOAA and TA security investments and failure to MD
600N Helicopters Should Be sections of Commerce's performance detect
misappropriate of assets, Reassessed. report and performance plans address
delayed detection of the scam. GAO science issues in a generally coherent
has noted regulatory weaknesses in

The U. S. Border patrol is procuring a and consistent manner. The NOAA and

regard to change of ownership new type of helicopter-- the MD 600N- TA
described their performance goal approvals, route financial analyses,

to replace its aging helicopter fleet. strategies or objectives, supporting
and periodic on- site examinations.

The MD 600N is expected to meet activities, and crosscutting activities in
Furthermore, the National Association various air operations requirements,
the FY 2000 and FY 2001 plans, and

of Insurance Commissioners lacks such as low and slow surveillance and these
descriptions also remained effective interstate coordination transport of
agents. This report essentially unchanged. Additionally,

oversight of entities under holding provides information and analysis on
performance measures were not companies and has gaps in control to the MD
600N procurement and always established for NOAA's or TA's

prevent the migration of unscrupulous whether the MD 600N has been
contribution to department wide securities brokers to other sectors of
effective in safely supporting the initiatives, nor were measures the
financial services industry. The Border Patrol's primary air operations
established for their respective Gramm- Leach- Bliley Act of 1999 mission.
Most Border Patrol pilots bureau- specific initiatives. GAO's underscores
the importance of experienced in flying the MD 600N and review of the NOAA
and TA sections of consultation and information- sharing most sector chiefs
had strong

reservations about the helicopter's for observed performance or identify
clearly stated as intended by the suitability for key missions. The pilots
ways to improve performance. Three Government Performance and Results

were also concerned with the aircraft's agencies compared their program's

Act of 1993 (GPRA). For example, the safety, citing difficulty in performing
results with estimates of what might Service highlighted results for timely
emergency maneuvers. Two of the have happened in the program's

delivery of first- class mail. The service three law enforcement agencies
with absence in order to assess their met, but did not exceed its goal for
on MD 600Ns that GAO spoke with shared program's net impact or contribution
time overnight delivery and fell a little many of the same concerns. GAO to
results. In other cases, agencies short of its goal for 2- and 3- day
recommends that INS: (1) address initiated special studies because they
deliveries. Such information had to be issues raised by pilots and mechanics
faced challenges in collecting outcome

gleaned from detailed text in the before buying more MD 600Ns; and (2) data
on an ongoing basis. One report. Some aspects of the Service's reassess its
purchase decision.

department wide study was initiated in fiscal year 2001 preliminary order to
direct attention to an issue

performance plan were not as

GGD- 00- 203, Sept. 8, 2000 (18 pages). that cut across program boundaries
comprehensive as they had been in Federal Advertising Contracts:

and agencies' responsibilities. earlier plans. Several prior years' Agencies
Have Discretion in Setting subgoals were not carried forward into Work Scope
and Requirements. GGD- 00- 205, Sept. 18, 2000 (19 the 2001 preliminary
plan; criteria for

pages). Personnel Practices: Career achieving goals were unclear; This
report reviews federal advertising

Appointments Granted Political strategies to accomplish results were
contracts awarded to advertising Appointees From October 1998 incomplete;
information in prior years' firms. GAO found that agencies have Through June
2000. plans was not updated; and little or no some discretion is selecting
which firm explanation was given on why the plan will be awarded a contract.
However, Fifty- seven former political appointees

lacked baseline data for some the number of small disadvantaged and
legislative branch employees were quantitative indicators. businesses being
awarded contracts converted to career positions during seems to be
decreasing. This the 21 months from October 1998 GGD- 00- 210R, Sept. 29,
2000 (21 demographic is possibly being

through June 2000. Most of the 57 pages). Implementation of the Federal

restricted by the contractor appointments were at the Departments Vacancies
Reform Act of 1998. requirements in the solicitations,

of Justice (13), Energy (7), Commerce where agencies have broad discretion
(7), Defense (5), and Labor (5). Ten of This correspondence assesses the in
establishing work requirements. the 57 went to career positions in the

implementation of the Federal GAO found that specific contractor Senior
Executive Service and 38 went Vacancies Reform Act of 1998, which is
requirements seemed to be consistent to career General Schedule positions,
intended to create a clear process and with the scope of work requirements

usually at pay grades 13, 14, and 15. a time limit for the temporary they
outlined in solicitations. Appointments were often made to placement in
those executive agency

newly established positions. For 41 of positions that require presidential
GGD- 00- 204, Sept. 29, 2000 (31 the 57 appointments, the individuals
appointment and Senate confirmation pages). Program Evaluation: Studies who
were appointed were already

(PAS positions). GAO determined Helped Agencies Measure or Explain working
at the agencies that appointed whether agencies were notifying Program
Performance. them. For 25 of 56 appointments (no

Congress and GAO of all reportable data was available on one vacancies and
temporary This report focuses on the need of appointment), new and old
salaries

appointments in a timely manner, and congressional and federal agency were
identical or within $1, 000. For 31

whether or not they adhered to the 210 decision- makers to evaluate
appointments, the new salary was day time limit for temporary service.
information about how well federal either higher (17 cases) or lower (14

GAO determined that most of those programs are working, both to manage
cases) by more than $1, 000. vacancies and acting officials had been
programs effectively and to help reported to GAO. Twenty instances of decide
how to allocate limited federal

GGD- 00- 207, Sept. 19, 2000 (23 nonreporting represented about 17
resources. The evaluations helped the pages). U. S. Postal Service: percent
of the 118 reportable agencies improve their measurement Enhancements Needed
in vacancies and acting officials, but GAO of program performance or
Performance Planning and Reporting. received 12 of the 20 notices by
understanding of performance and

September 2000. Eleven agencies were how it might be improved-- some Some
aspects of the U. S. Postal more likely to notify GAO of a vacancy studies
did both. Four agencies drew Service's fiscal year 1999 performance

and less likely to notify GAO of an on evaluations to explain the reasons
report were not as straightforward and

acting official. The reporting records

of the 11 agencies varied, ranging from retention of records, monitoring
which GAO believes could offset any five agencies reporting all vacancies
activities, system security potential benefits of disclosure. and acting
officials to GAO, to one authorization, exemptions from the agency reporting
less than half by July Privacy Act of 1974, and the prospect GGD/ AIMD- 00-
319, Sept. 20, 2000 (47 2000. Many of the vacancy and acting of making NCIS
a fingerprint- base

pages). Securities Pricing: Trading official notices that GAO received
system rather than a name- based Volumes and NASD System Limitations between
November 1998 and July 2000

system; and (4) discusses pawnshop Led to Decimal- Trading Delay. took four
or more weeks to arrive, issues. counting from the date the vacancy or In
response to a Securities and

acting service began. This was the case

GGD/ AIMD- 00- 224, July 11, 2000 (39 Exchange Commission (SEC) order, for
56 percent of the vacancy pages). Automated Teller Machines: the National
Association of Securities

notifications and 47 percent of the Issues Related to Real- time Fee Dealers
(NASD) developed a decimal acting official notifications. The Disclosure.
pricing system for U. S. stocks. timeliness of the notices has improved
However, NASD was unable to meet to since the first several months after the

The Gramm- Leach- Bliley Act of 1999 the original implementation deadline
Vacancies Reform Act took effect. required GAO to explore the feasibility of
July 2000 because the new system GAO also found that three acting of
providing real- time disclosure of lacked the capacity to process the
officials-- two Acting Inspectors

fees charged to automated teller increased trading volume that the

General and one Acting Chief machine (ATM) cardholders during market
experienced during that time.

Financial Officer-- had served longer in electronic fund transfers conducted
at The main reason for this problem was

these positions than the Vacancies ATMs. Cardholders may be charged that the
system was unable to use Reform Act permits. both a surcharge and a
"foreign" ATM multiple computers to process the fee when they use an ATM
that is not message traffic arising from the GGD/ AIMD- 00- 64, Feb. 29,
2000 (95 owned by the financial institution that increased trading activity.
The new pages). Gun Control: Implementation issued the card. Although
technically system was also unable to incorporate of the National Instant
Criminal feasible, real- time foreign ATM fee trading volatility. To oversee
NASD's Background Check System.

disclosure would require extensive development and implementation of
restructuring by all major participants the new system, SEC relied on
industry The FBI approved most gun purchases

in the ATM industry. Hardware and reports of their progress and examined (72
percent) within 30 seconds after

software would have to be revised and the readiness of market participants
buyer information had been entered upgraded, and functions, such as

for decimal trading. However, SEC did into the National Instant Criminal
message processing and calculation of not determine in advance that NASD's
Background Check System (NCIS)-- a ATM fees, would have to be modified.

systems would be unable to handle the computer system designed to provide
Most industry representatives could

increased trading activity. presale background screening for all not offer
precise estimates of the costs types of firearms bought from federal or the
time frames associated with GGD/ HEHS- 00- 153, July 31, 2000 (91 firearms
licensees. The remaining 28 such changes, but estimates for pages). Anti-
Drug Media Campaign: percent of the background checks had

software and hardware changes alone ONDCP Met Most Mandates, but delayed
responses. From a sample of ranged from $5 million for a large Evaluations
of Impact Are delayed responses handled by an ad third- party processor to
tens of Inconclusive. hoc selection of examiners, the FBI

millions of dollars for large banks, with concluded that most of these
estimates from two to three years for The Office of National Drug Control
responses (80 percent) were resolved implementation. The potential Policy's
(ONDCP) National Youth AntiDrug

within two hours or less and that the consequences for foreign fee Media
Campaign has been rest (20 percent) required several disclosure may offset
consumer proposed as a nearly $1 billion federal

hours or days to resolve. This report benefits. Few consumer complaints
effort over five years to combat rising (1) provides statistics on
background have been made about fee disclosure,

drug use among the nation's youth. checks, denials, and appeals; (2)
consumer groups' concerns are more This report discusses (1) whether
describes enforcement actions taken

focused on the fairness of surcharges, ONDCP provided timely financial

against persons who allegedly falsify and surveys suggest that only a
reports to Congress, how money for

their status on firearm- purchase minority of ATM cardholders pay

paid advertising was managed and applications; (3) discusses the NCIS'
foreign fees. A requirement for realtime disbursed, and whether ONDCP
computer system architecture, foreign fee disclosure could complied with
statutory requirements capacity management system produce unintended
consequences,

on the obligation of funds; (2) what availability, transaction response
time, ONDCP has done to develop and

implement guidelines for the campaign what types of activities are empirical
data exist on the key factors

in response to requirements mandated commercial and has guidelines for
needed to calculate the amount of by law; and (3) whether the evaluation
determining whether it is more sales and use revenues that state and designs
for phases I through III were effective to do the commercial local
governments lose on Internet and

appropriate, how well phase I and II activities in- house or contract them
other remote sales. GAO constructed evaluations were implemented, and out to
the private sector. The 24 major

scenarios representing different how effective phases I and II of the
agencies named by Chief Financial

assumptions about the important campaign were in influencing group Officers
Act identified about 900,000 determinants of the loss. Under all awareness
of different types of paid full- time equivalent positions that did
scenarios, the size of tax loss from anti- drug messages and drug attitudes.
commercial activities, but more than Internet sales for 2000 is less than
two

half were exempted from percent of aggregate general sales tax GGD/ NSIAD-
00- 105, Mar. 1, 2000 (83 consideration for competition at the

revenues. Under the scenario for 2003, pages). The Euro: Implications for
the

time the inventories were compiled. the size of the tax loss from Internet
United States-- Answers to Key These agencies received and sales ranged from
less than one Questions.

responded to a total of 332 challenges percent to about five percent. The
and 96 appeals to their 1999 FAIR Act results of GAO's scenarios highlight
Eleven of the 15 countries in the inventories from interested parties. the
importance of developing better European Union (EU) adopted the Agencies
challenged by private

data about Internet tax losses. Even euro as a common currency in January
industry indicated that they did not with better data, the rapid and 1999.
Monetary union has created a plan to consider many of the

fundamental nature of innovations in large economic entity in Europe that
commercial activities on their electronic commerce means that could emerge
as a powerful force in inventories for competition. In policymaking
regarding the tax world economic and financial markets.

contrast, almost all employee treatment of Internet sales will be This
development has raised questions challenges and appeals concerned the

done in an environment of significant about the euro's impact on the United
inclusion of activities that the

uncertainty. States, from the dollar's role as an employees contended were
inherently international currency to U. S. trade governmental. Agencies
sustained 20

GGD/ OGC- 00- 18, Dec. 30, 1999 (44 and the relative attractiveness of the

of the 332 challenges and denied the pages). Department of Education:

United States to foreign investors. This rest. Three of the 96 appeals were
Compliance With the Federal Advisory report answers the following
successful.

Committee Act and lobbying questions: (1) What is the euro and Restrictions.
why is Europe moving to it now? (2)

GGD/ OCE- 00- 165, June 30, 2000 (67 What are the potential effects of the
pages). Sales Taxes: Electronic

In 1995, the Department of Education euro on the dollar? (3) What are the
Commerce Growth Presents began holding regular weekly potential monetary and
exchange rate Challenges; Revenue Losses Are "Thursday" meetings with
effects of the euro? (4) What are the Uncertain. representatives of lobbying
and other implications of the euro for financial

groups interested in federal education markets and institutions and their
Although the states can impose a tax issues. Education first began holding
regulation? (5) What are the euro's

on residents' purchases from out- ofstate these meetings at a time when
implications for U. S. trade and vendors, they cannot impose an Congress was
debating the future investment with Europe? (6) What are

obligation on those vendors to collect existence and funding of the agency
the implications of the euro for the tax unless the vendor has a and the
federal role in education. The international economic policymaking?
substantial presence-- called a nexus- evidence GAO reviewed does not in the
state. For sales without nexus,

support a conclusion that (1) the series

GGD/ NSIAD- 00- 244, Sept. 29, 2000 purchasers are legally required to of
meetings GAO examined were (47 pages). Competitive Contracting: remit the
tax, but purchaser "advisory committee" meetings within Agencies Upheld Few
Challenges and compliance is generally much lower the scope of the Federal
Advisory Appeals Under the FAIR Act. than seller compliance. Therefore, at
Committee Act or (2) Education this time, portions of sales and use
officials violated the applicable The Federal Activities Inventory taxes can
be avoided. In 1999, state

antilobbying restrictions. Reform (FAIR) Act directs agencies to and local
governments collected $203 develop annual inventories of billion in general
sales tax revenues.

GGD/ OGC- 00- 62, Feb. 25, 2000 (27 activities done by their employees that
On average, general sales taxes pages). Disaster Assistance: Issues are not
inherently governmental. OMB

account for 33 percent of state and 11 Related to the Development of FEMA's

Circular A- 76 provides guidance on percent of local tax revenues. Little
Insurance Requirements.

The Federal Emergency Management This report reviews the cases, possible and
actual threats. Most Agency (FEMA) has proposed that particularly the small
business cases, agencies favored establishing a

funding under the Public Assistance that have been filed in district courts
repository of protective intelligence to Program for buildings damaged in a
and the U. S. Court of Federal Claims facilitate sharing of threat
information disaster be limited to those state and since the act took effect
at the end of about their officials. Also, agencies

local agencies and other public entities 1996. GAO (1) identifies the number
of reported that their protective that maintain specified minimum bid
protests filed in the U. S. district personnel received different amounts
levels of insurance coverage. The draft courts and the U. S. Court of
Federal

of protection training and from regulation is intended to remove a Claims
between January 1997 and different sources. Field staff received
disincentive under current rules for April 1999 that were filed by small
less training than did the agencies' fulltime such entities to both carry
insurance

businesses, the type of agencies personnel based in Washington.

and manage their risk of disasters, involved (civilian or defense), and the
Most agencies favored establishing a

according to FEMA. FEMA's draft amount of the procurement at issue;
standardized protection training regulation could have significant (2)
identifies the perceived advantages

program. Most agencies opposed financial implications for states, and
disadvantages, particularly for

centralizing security protection under municipalities, and private nonprofit
small businesses, of filing bid protests one agency. No single agency or
hospitals and universities. This report in each judicial forum; and (3)
official is responsible for handling evaluates FEMA's efforts to develop its
provides information on the issues relating to routine protection of draft
insurance regulations. GAO (1) characteristics of the district courts'
executive branch officials. This determines the extent to which FEMA and U.
S. Court of Federal Claims' bid fragmentation has serious implications

obtained and incorporated input for protest cases, particularly those filed

because 14 of the protected officials state and local agencies and public by
small businesses, that could be used

are in the line of presidential entities likely to be affected by the to
assess perceived advantages and succession. Moreover, the lack of draft
regulation; (2) evaluates FEMA's disadvantages.

thorough threat assessments compliance with Executive Order

documenting the level of protection 12866, the Regulatory Flexibility Act,

GGD/ OSI- 00- 139, July 11, 2000 (67 needed makes it difficult to determine
and applicable guidance governing the

pages). Security Protection: the basis for and reasonableness of rulemaking
process; and (3) assesses

Standardization Issues Regarding protection being given. GAO FEMA's internal
rulemaking processes

Protection of Executive Branch summarized this report in testimony and
procedures. Officials.

before Congress; see: Security Protection: Standardization Issues

GGD/ OGC- 00- 72, Apr. 17, 2000 (99 From fiscal years 1997 through 1999,

Regarding Protection of Executive pages). Bid Protests: Characteristics 42
executive branch positions at 31 Branch Officials by Bernard L. Ungar, of
Cases Filed in Federal Courts.

executive branch agencies-- including Director of Government Business all 14
Cabinet secretaries, four deputy Operations and Robert H. Hast, Currently,
an individual or business or under secretaries, and 24 other highranking
Assistant Comptroller General for can file a protest challenging a federal
officials (mainly heads of Special Investigations, before the contract award
or the procedure under

agencies)-- had security protection. Subcommittee on Criminal Justice which
the offers were solicited.

Personnel from 27 different agencies Oversight, Senate Committee on the

Protests may be filed before or after protected them: 36 officials by their
Judiciary. GAO/ T- GGD/ OSI- 00- 177, July the contract is awarded. Under
the own agencies or departments and six 27 (10 pages). Administrative
Dispute Resolution Act from other agencies or departments, of 1996, the 94
U. S. district courts and

such as the Secret Service and the NSIAD/ GGD- 00- 186, Aug. 15, 2000 the
United States Court of Federal Marshals Service. Protective personnel (20
pages). Space Shuttle: Human Claims have the same jurisdiction to increased
73 percent from fiscal year

Capital and Safety Upgrade Challenges decide bid protest cases. District
1997 through 1999. Funding rose from Require Continued Attention. courts and
the U. S. Court of Federal

$19. 1 million in 1997 to $28. 5 million in Claims may grant any relief that
they 1999, largely due to increased travel. Several internal NASA studies
have consider appropriate, although

Only the Secret Service and State shown that downsizing has harmed the

monetary relief is limited to bid Department have specific statutory

shuttle program's workforce. Many key preparation and proposal costs.
authority to protect executive branch areas lack enough qualified workers,
District court jurisdiction for bid officials. Agencies reported that their
and the remaining workforce shows protest cases is scheduled to expire on
officials received different levels and

signs of overwork and fatigue. January 1, 2001. Some groups support
frequency of protection and that Forfeited leave, absences from training
this development. Others oppose it. protection was needed to respond to
courses, and stress- related employee

assistance visits are all on the rise. industries and the use of foreign
Testi mony More than twice as many workers are

workers on the economy of the more than 60 years old than are under Mariana
Islands? How do the revenueraising

T- AIMD/ GGD- 00- 179, May 22, 2000 30 years old, jeopardizing the efforts
of the Mariana Islands (19 pages). Electronic Government: program's ability
to hand off and the payments that they receive

Federal Initiatives Are Evolving leadership to the next generation. This
from the U. S. Treasury compare with Rapidly But They Face Significant
situation also poses significant shuttle

those of other U. S. territories and Challenges, by David L. McClure,
program flight- safety risks, according freely associated states? How do the
Associate Director, Governmentwide to NASA. To revitalize its workforce,
taxes and fees paid by the garment and Defense Information Systems,

NASA has ended its downsizing plans industry in the Mariana Islands,

before the Government Management, and has begun to hire new staff. It has

expressed as a percentage of gross Information and Technology started an
overall workforce review to receipts, compare with the taxes and
Subcommittee, House Committee on examine personnel needs, barriers,

fees paid by the garment industry in Government Reform. and reforms to
address long- term the United States? requirements. During the next five

Electronic commerce and business years, NASA plans to develop and

RCED/ GGD- 00- 220, Sept. 29, 2000 strategies made possible by the institute
various safety and

(69 pages). Economic Development: widespread Internet access and
supportability upgrades. The

Multiple Federal Programs Fund interconnected systems are program's success,
however, depends

Similar Economic Development transforming how organizations, both

on NASA's ability to overcome Activities. public and private, will operate
in the programmatic and technical coming decade. Spending by federal,

challenges, such as a demanding In 1995, GAO identified federal state, and
local governments on schedule and undefined design and programs that
supported economic electronic government is expected to workforce
requirements. Continued development to determine if these quadruple during
the next five years,

management emphasis will be critical programs would more directly fund from
$1. 5 billion today to $6. 2 billion in to the success of NASA's human
capital economic development activities, 2005, according to the Gartner
Group. planning. including the level of financial support This testimony
focuses on key aspects

that they provide, and compared of the evolving e- government RCED/ GGD- 00-
79, Feb. 14, 2000 (90 selected aspects of these programs, environment,
including the statutory pages). Northern Mariana Islands: such as program
applicants, to identify and policy framework, key efforts to Garment and
Tourist Industries Play a

areas of potential overlap. Ten implement electronic government Dominant
Role in the Commonwealth's agencies and 27 subagency units

programs, and the major challenges Economy. administer 73 programs that can
be confronting both government and the

used to support one or more of the six private sector in making the
transition The Commonwealth of the Northern activities that GAO identified
as being to on- line business and service Mariana Islands is a U. S.
territory with directly related to economic environments.

commonwealth status in the western development. Specifically, for 30 of the

Pacific. The covenant establishing the programs-- those for which, agencies
T- GGD- 00- 2, Oct. 21, 1999 (31 pages).

Commonwealth of the Northern could provide more detailed obligation U. S.
Postal Service: Challenges to Mariana Islands places them under
information-- about $7 billion was Sustaining Performance Improvements U. S.
sovereignty and grants U. S. obligated to support one or more of Remain
Formidable on the Brink of the

citizenship to people born there, but the six economic development 21st
Century, by Bernard L. Ungar, pledges self- government for local activities
for fiscal year 1999. In each

Director, Government Business affairs. The Islands control their own of the
six activity areas, GAO identified Operations Issues, before the Postal
immigration policy and set their own programs that fund a similar activity

Service Subcommittee, House minimum wage, which, at $3. 05 per and also have
the same applicants. Committee on Government Reform. hour, is substantially
below the However, GAO identified overlap minimum wage in the United States.

among many federal programs that The U. S. Postal Service may be nearing
Businesses in the Islands, particularly

support economic development. the end of an era. Although it has in the
garment and tourist industries, Additional information is needed to notably
improved its financial position employ many foreign workers who

determine whether that overlap and performance delivery during the have work
permits that do not lead to resulted in the inefficient or ineffective last
five years, the Service expects

citizenship. This report answers the delivery of the programs involved.
declines in its core business in the following questions: What has been the
years ahead. The growth of the impact of the garment and tourist

Internet, electronic communications,

and electronic commerce has the

T- GGD- 00- 26, Oct. 15, 1999 (14

T- GGD- 00- 32, Nov. 9, 1999 (15 pages). potential to substantially affect
the pages). Management Reform:

Money Laundering: Observations on Service's mail volume. The Service
Elements of Successful Improvement Private Banking and Related Oversight
confronts challenges in four areas: Initiatives, by J. Christopher Mihm,

of Selected Offshore Jurisdictions, by maximizing performance in the face of
Associate Director, Federal Thomas J. McCool, Director, Financial customers'
rising demands and Management and Workforce Issues, Institutions and Markets
Issues, before choices; managing employees, the and James R. White,
Director, Tax

the Permanent Subcommittee on Service's most valuable asset, to Policy and
Administration Issues,

Investigations, Senate Committee on maximize attainment of agency goals
before the Oversight of Government Governmental Affairs. and continuously
improve employee Management, Restructuring and the

performance; maintaining financial District of Columbia Subcommittee,

This testimony provides an overview viability by controlling costs and
Senate Committee on Governmental of money laundering in relation to
enhancing revenues; and adapting to Affairs.

private banking and highlights some rapidly changing communications and
regulatory issues involving the delivery environments involving a

GAO's Performance and vulnerability of selected offshore growing number of
competitors. GAO

Accountability Series outlined the jurisdictions to money laundering. also
stresses the need for the Postal major management challenges GAO focuses on
the following four Service to address long- standing issues confronting the
largest federal

areas: regulators' oversight of private involving the quality of data used
in agencies and discussed opportunities banking in general, regulators'
ratemaking. to improve their performance. (See oversight of private banking
in

GAO/ OCG- 99- 22SET, Jan. 1999.) Many selected offshore jurisdictions, T-
GGD- 00- 24, Oct. 20, 1999 (11 of these challenges involve barriers that
have hampered pages). National Archives: The longstanding, difficult
problems that regulators' oversight of offshore Challenge of Electronic
Records will not be quickly or easily solved. In banking, and future
challenges that Management, by L. Nye Stevens, fact, sustaining major
changes will confront regulators' efforts to combat Director, Federal
Management and require a cultural transformation at money laundering in
offshore Workforce Issues, before the many agencies. Success in overcoming
jurisdictions. Government Management, Information

problems of this magnitude often and Technology Subcommittee, House depends,
at least initially, on whether T- GGD- 00- 33, Oct. 28, 1999 (11 Committee
on Government Reform.

an agency has a well- thought- out pages). Community Policing: management
improvement initiative to Observations on the COPS Program Records generated
electronically-- such guide its reform efforts. This testimony

Midway Through Program as E- mail messages, word processing discusses six
elements that GAO

Implementation, by Richard M. Stana, documents, CD ROMS, and web site
believes are crucial to ensuring that Associate Director, Administration of
pages-- present special archival management improvement initiatives Justice
Issues, before the Crime challenges for the National Archives

truly take root and solve the problems Subcommittee, House Committee on and
Records Administration (NARA) they are intended to fix. These the Judiciary.
and federal agencies. NARA has tried elements are (1) a demonstrated to
address agencies' immediate needs leadership commitment and The Community
Policing Act of 1994 for guidance and direction on accountability for
change; (2) the

set aside $8. 8 billion through 2000 to electronic records management by
integration of management strengthen public safety, including revising its
bulleting and other improvement efforts into putting 100, 000 additional
police guidance as well as forming a new programmatic decisionmaking; (3)
officers on the streets nationwide. This group to help answer agencies'
thoughtful and rigorous planning to testimony reports on the COPS grant
questions. Some of NARA's actions

guide decisions, particularly to address program midway through its six-
year have come about because of a court human capital and information
authorization. GAO found that COPS decision, which held that NARA's

technology issues; (4) employee grants were not targeted on the basis
guidance for the deletion of electronic involvement to elicit ideas and
build

of greatest need for assistance. records exceeded statutory authority.
commitment; (5) organizational

However, the higher the crime rate, the The Archivist appealed the decision,
alignment to streamline operations more likely a jurisdiction was to apply
and an appeals court reversed the and clarify accountability; and (6) for a
COPS grant. COPS office grant decision. The Archivist said, however,

strong and continuing congressional monitoring was limited. Monitoring that
NARA would continue to work involvement. guidelines were not prepared, site
toward ensuring preservation and visits and telephone monitoring did ready
access to electronic records. not systematically take place, and

information on activities and This testimony discusses the Internal progress
in implementing its new accomplishments was not consistently Revenue
Service's (IRS) progress in responsibilities by consulting with the
collected or reviewed. Small implementing the taxpayer rights and Postal
Service, other federal agencies,

communities were awarded most protections mandated by the IRS postal users,
private providers of COPS office grants, but large cities

Restructuring and Reform Act of 1998. international postal services, and the
received larger awards. In accordance The act was passed in response to
public. Also, State clearly signaled with the act, about half the funds were
concerns that IRS had been changes in U. S. policy on UPU reform.

awarded to agencies serving overemphasizing revenue production Despite this
progress, opportunities populations of less than 150, 000. As of and
compliance at the expense of exist for State to improve its process June
1997, a total of 30, 155 law

fairness and consideration of taxpayer for developing U. S. policy on these
enforcement positions funded by interests. GAO found that IRS has matters
and the institutional continuity COPS grants were estimated to be on made a
concerted effort to implement and expertise of its staff. For example, the
street.

the taxpayer protection provisions. In GAO found shortcomings in the timing
some cases, implementation is not and notifications for public meetings T-
GGD- 00- 34, Oct. 28, 1999 (11 complete, and in others, it is too soon and
the distribution of documents pages). Competitive Contracting: to tell
whether implementation will be discussed at those meeting that may
Preliminary Issues Regarding FAIR Act

successful. IRS has had difficulty in have limited opportunities for
Implementation, by J. Christopher implementing some of the act's

stakeholders to provide meaningful Mihm, Associate Director, Federal
mandates. These problems include input. GAO recommends that State Management
and Workforce Issues, determining when enforced collection establish a more
structured, timely, before the Government Management, actions, such as the
seizure of and open process for developing U. S. Information and Technology
taxpayers' assets, are appropriate and policy on UPU matters. Also, State
Subcommittee, House Committee on

responding to requests for relief under should provide sufficient staff
Government Reform. the innocent spouse provisions. GAO

continuity and expertise to handle its believes that IRS' efforts to
modernize UPU responsibilities. It is unclear, The Federal Activities
Inventory its organizational structure, however, how State plans to address

Reform Act of 1998 requires federal performance management system, and GAO's
recommendations. This agencies to identify their activities that information
systems are heading the testimony summarized the January are not inherently
governmental and agency in the right direction. If 2000 GAO report, GAO/
GGD- 00- 40. make this information publicly successful, IRS' modernization
efforts available. The implementation of the should create an agency culture

T- GGD- 00- 73, Apr. 11, 2000 (11 act is in the early stages. Many dedicated
to serving the public and

pages). Federal Buildings: Billions Are agencies have only recently released
spur efficiency improvements Needed for Repairs and Alterations, by their
inventories. Many other throughout the agency. Both are

Bernard L. Ungar, Director, agencies' inventories still have not necessary
for culture change to Government Business Operations been made available to
the public. This institutionalize taxpayer service as a

Issues, before the Economic testimony focuses on agencies' core value, and
efficiency gains to Development, Public Buildings, progress so far in
compiling and allow IRS to better target is resources

Hazardous Materials and Pipeline releasing their inventories. GAO briefly to
promote compliance and taxpayer Transportation Subcommittee, House describes
the status of the initial steps

service. resources to promote Committee on Transportation and taken to
implement the act. GAO also compliance and taxpayer service.

Infrastructure. highlights some of the questions that are being raised by
its examination of T- GGD- 00- 63, Mar. 9, 2000 (8 pages).

Billions of dollars are needed for inventories at the Department of Postal
Issues: The Department of repairs and alterations at federal Commerce, the
Environmental State's International Postal buildings. This situation is not
new. Protection Agency, and the General Responsibilities, by Bernard L.
Ungar, Nearly a decade ago, GAO reported Services Administration.

Director, Government Business that federal buildings had suffered Operations
Issues, before the Postal from years of neglect and, as a result, T- GGD-
00- 53, Feb. 2, 2000 (9 pages). Service Subcommittee, House about $4 billion
was needed to bring IRS Restructuring Act: Implementation Committee on
Government Reform. these structures up to standard. (See

Under Way but Agency Modernization GAO/ GGD- 91- 57, May 1991.) GAO
Important to Success, by James R. The State Department assumed

recommended that the General White, Director, Tax Policy and primary
responsibility for U. S. policy Services Administration (GSA) adopt a
Administration Issues, before the

on Universal Postal Union (UPU) more strategic approach to managing Senate
Committee on Finance. matters in 1998. State has made repairs and
alternations, improve

program data, and explore financing ensure effective succession planning.
act's implementation across the

opportunities for repair and alteration The size and shape of the federal
executive branch, discusses how the

needs. GSA has yet to fully implement workforce, its skills needs and House
of Representatives has used the

those suggestions. GSA officials imbalances, and agencies' approaches

act to improve program oversight and recognize that more needs to be done to
managing performance and decisionmaking, and suggests ways to to effectively
respond to growing incentives all need greater attention. use the act to
address some of the

demands for repairs and alterations. Designing, implementing, and critical
program and management GSA has several initiatives under way maintaining
effective human capital issues confronting the government. that, if fully
developed and effectively strategies will be critical to improving
implemented, could satisfy GAO's the performance of government and

T- GGD- 00- 96, Mar. 1, 2000 (15 pages). earlier recommendations, lead to
holding federal agencies accountable Securities Pricing: Progress and better
program oversight, and promote

for their promises to the taxpayers. In Challenges in Converting to
Decimals, a more strategic approach to meeting this regard, leading private
sectors

by Davi M. D'Agostino, Associate repair and alterations needs. This
organizations have some important Director, Financial Institutions and
testimony summarized the March 2000

lessons to offer, but it will be the Markets Issues, before the Finance and
report, GAO/ GGD- 00- 98. federal government's job to craft

Hazardous Materials Subcommittee, human capital systems that deliver for

House Committee on Commerce.

T- GGD- 00- 77, Mar. 9, 2000 (21 pages). the American people. Human Capital:
Managing Human

Although the securities markets have Capital in the 21st Century, by David

T- GGD- 00- 95, Mar. 22, 2000 (24 made progress in preparing for M. Walker,
Comptroller General of the pages). Managing for Results: Using decimal
trading, some key challenges United States, before the Oversight of GPRA to
Help Congressional must still be overcome if decimal Government Management,

Decisionmaking and Strengthen trading is to be implemented Restructuring and
the District of Oversight, by David M. Walker, successfully. The capacity
study Columbia Subcommittee, Senate Comptroller General of the United
commissioned by the Securities

Committee on Governmental Affairs. States, before the Rules and Industry
Association projected that Organization Subcommittee, House decimal trading
is likely to The federal government counts some Committee on Rules.
significantly increase trade and

1.8 million employees on its payroll. quotation message traffic, so a
primary These workers are the government's

The Government Performance and challenge will be to ensure that the greatest
asset-- its human capital. The Results Act arose, in part, out of industry's
communications and landmark federal management reforms

Congress' frustration that its policy processing systems have enough

of the 1990s signaled the start of a new and spending decisions and
oversight capacity. The options markets and the era in which federal
agencies are being had been handicapped by a lack of Nasdaq face the
greatest difficulty in held accountable for results. The precise information
on program goals, preparing for the increased message reforms addressed
several key

performance, and costs. Today, traffic arising from decimal trading.
elements of modern performance agencies must set multiyear strategic Other
steps that must be taken in management: financial management, goals and
corresponding annual goals, preparation for decimal trading

information technology management, measure their performance, and report
include developing market standards

and results- oriented goal- setting and on their results. The implementation
of and implementation procedures, performance measurement. The

the act is now at a critical point. By the ensuring that market
participants' government's human capital end of March, agencies are to
publish systems are ready to process decimal management, the "people
factor," has annual performance reports that, for prices, and revising all
the rules that been notably absent from this strategy, the first time, will
provide an overall govern trading. These steps are still however. Given the
federal downsizing picture of the performance of federal incomplete,
however, and, in some that has occurred during the past programs. The
information becoming cases, progress has been hampered by decade, widespread
inattention to available as a result of the act also other issues, including
an ongoing strategic human capital management affords an opportunity to
reexamine antitrust investigation of the options

may be jeopardizing the government's what government does, how it does it,

markets. ability to economically and effectively and who benefits. In short,
the act has deliver products and services to the the potential to ensure
that the

T- GGD- 00- 104, Mar. 29, 2000 (14 public. Serious concerns are being
government delivers the results that pages). Equal Employment raised about
the aging of the federal the American people expect and

Opportunity: Discrimination workforce, the rise in retirement deserve. The
Comptroller General's Complaint Caseloads and Underlying eligibilities, and
steps needed to testimony provides an overview of the Causes Require EEOC's
Sustained

Attention, by Michael Brostek, restructuring medical staffing,

going down, 710 violations is far too Associate Director, Federal obtaining
discounts by buying in bulk, many, in GAO's view. GAO believes Management
and Workforce Issues,

leveraging resources through that the Office of Management and before the
Civil Service Subcommittee,

cooperative efforts with other Budget can do more to ensure that House
Committee on Government governmental entities, and even agencies do not use
information Reform. privatizing medical services at some collections without
proper clearance. facilities. To further control costs, the GAO also
believes that other federal Following a decade of rising Bureau recently
proposed two

agencies have a role to play in discrimination complaint caseloads,

legislative changes. The first-- a reducing the number of violations.
growing backlogs, and lengthening prisoner copayment provision-- would
delays in processing individual cases,

authorize the Bureau to collect a fee of T- GGD- 00- 118, May 2, 2000 (12
the Equal Employment Opportunity not less than $2 every time a prisoner
pages). Human Capital: Using Commission (EEOC) has begun taking requests a
health care visit. The second Incentives to Motivate and Reward steps, under
new regulations, to better provision would build on the federal High
Performance, by Michael manage the complaint process. The government's
extensive experience in Brostek, Associate Director, Federal agency has also
begun to address establishing payment rates for

Management and Workforce Issues, problems with the completeness and
inpatient hospital services through

before the Oversight of Government reliability of the data that it collects
Medicare's prospective payment Management, Restructuring and the from
agencies and reports to the

system. That is, Medicare's prospective District of Columbia Subcommittee,

public. Both efforts are part of EEOC's rates could be adopted to serve as
caps

Senate Committee on Governmental Comprehensive Enforcement for the Bureau's
payments to Affairs. Program, announced in August 1999.

community hospitals that care for At the broader level, the program

federal prisoners. GAO notes that the This testimony discusses the role of

includes plans to help address the root Bureau might be able to save
incentive programs in motivating and causes of employee complaints:

additional money by negotiating more rewarding federal employees to
discrimination and other sources of cost- effective contracts with achieve
high performance in support conflict in the federal workplace. All of
community hospitals that provide of agency missions and goals. GAO these
efforts are encouraging, but they medical care to inmates.

found that federal agencies have broad will require a sustained commitment
statutory and regulatory authority to and follow- through on the part of T-
GGD- 00- 114, Apr. 12, 2000 (19

design and implement various EEOC if the agency is to achieve pages).
Paperwork Reduction Act: incentive programs, including meaningful results.

Burden Increases at IRS and Other monetary and nonmonetary incentives.
Agencies, by Nancy R. Kingsbury, No one incentive program is optimal T- GGD-
00- 112, Apr. 6, 2000 (43

Acting Assistant Comptroller General, for all situations. Second, the use of
pages). Federal Prisons: Containing before the National Economic Growth,

monetary incentive programs has Health Care Costs for an Increasing Natural
Resources, and Regulatory varied over time and across agencies. Inmate
Population, by Richard M. Affairs Subcommittee, House During the last five
years, agencies Stana, Associate Director,

Committee on Government Reform. have made less use of their Administration
of Justice Issues, performance awards and greater use before the Criminal
Justice Although the Paperwork Reduction of other monetary incentives. The
Subcommittee, Senate Committee on Act of 1995 anticipated a 30- percent
proportion of employees who received

the Judiciary. reduction in federal paperwork monetary performance awards
ranged between fiscal years 1995 and 1999,

from less than one percent to as much The growing federal prison population
preliminary data show that paperwork as 75 percent of an agency's has been
accompanied by rising health actually rose during that period. The

workforce. Little is known about the care costs for inmates. The Bureau of
increase is primarily due to the use of nonmonetary incentives Prison's
costs to treat inmates have Internal Revenue Service. Federal because they
are harder to measure soared from $137. 6 million in 1990 to agencies
identified 710 violations of and generally not documented.

$372. 1 million in 1999-- an average the act during fiscal year 1999-- a
Finally, some agencies regularly annual increase of 8.6 percent. Since
decline from the 872 violations monitor and evaluate the effectiveness the
early 1990s, the Bureau has tried to identified a year earlier. Problems in
of their incentive programs; however, increase the efficiency and the

last year's data, however, make it many others have reported that they
economy of health care delivery to unclear whether the number of did not
know whether their incentive prisoners through various costcontainment
violations is really going down. And programs were effective in motivating
initiatives, such as even if the number of violations is their employees to
exceed

expectations in support of missions new knowledge and skills that would have
been too expensive to and goals. agencies needed to help build and track
them. In March, the Postal sustain excellence. Moreover,

Service reported that the bulk of its T- GGD- 00- 128, May 4, 2000 (19
anecdotal evidence on overall federal costs to develop and sell the stamp
pages). Management Reform:

spending on training indicates that, in through the end of 1999 was $5. 9
Continuing Attention Is Needed to trying to save on workforce- related
million. About $5. 4 million of these Improve Government Performance, by
costs, agencies cut back on training costs were recovered through the 33cent
J. Christopher Mihm, Associate investments needed if their smaller first-
class portion of the stamp, Director, Federal Management and

workforces were to make up for and the remaining $482,000 had been Workforce
Issues, before the Oversight

institutional losses in knowledge and recouped from the surcharge

of Government Management, skills. Agencies may need to take a revenues. GAO
was concerned that the Restructuring and the District of fresh look at their
training needs today. Postal Service had not formalized its

Columbia Subcommittee, Senate This report provides information on criteria
for determining what costs Committee on Governmental Affairs.

(1) how high- performing organizations would be recouped from the surcharge
approach the design and

revenue and was not consistently Since it was launched in 1993 under
implementation of their training and applying its informal criteria, which
the leadership of the Vice President,

development programs and (2) the changed over time. In response to the
National Performance Review design, implementation, and GAO's
recommendation, the Postal (NPR) has sought to "make

evaluation of training and Service indicated that it would government work
better and cost less development programs at four federal formalize and
consistently apply its

and to get the results Americans care agencies-- the Defense Finance and
cost recovery criteria. The Postal about." NPR has been one of the
Accounting Service, the Health Care Service plans to recoup costs from the

longest, and most well- known, Financing Administration, the surcharge
revenue that were over and executive branch management reform Immigration
and Naturalization

above the costs normally incurred with efforts in U. S. history. GAO
assessed Service, and the State Department.

a "blockbuster" commemorative stamp NPR's recommendations in 1993, 1994,
issue or a new postal product. The U. S. and 1996, and GAO is now reviewing
T- GGD- 00- 137, May 25, 2000 (11

Mint's experiences offer lessons that selected NPR recommendations. This
pages). Breast Cancer Research may be applicable to semipostals, testimony
summarizes GAO's work on Stamp: Millions Raised for Research,

because there are many similarities selected aspects of NPR. This but Better
Cost Recovery Criteria between the two. In the mid- 1990s, testimony also
draws on the agency's

Needed, by Bernard L. Ungar, Director, GAO reviewed the commemorative large
body of work on management Government Business Operations

coin program and found that some issues, highlighting some of the more
Issues, before the International coins were unpopular and did not sell
important management challenges Security, Proliferation and Federal well.
GAO also found that as the confronting Congress and the Services
Subcommittee, Senate number of commemorative coins administration. Committee
on Governmental Affairs. proliferated, the market became saturated and sales
fell. As sales fell,

T- GGD- 00- 131, May 18, 2000 (14 The breast cancer research stamp was the
U. S. Mint was unable to cover its

pages). Human Capital: Design, the first stamp ever issued by the

costs on some commemorative coin Implementation, and Evaluation of Postal
Service to raise money for a programs. This testimony summarizes Training at
Selected Agencies, by nonpostal purpose-- in this case the April 2000
report, GAO/ GGD- 00- 80. Michael Brostek, Associate Director,

medical research on breast cancer. The Federal Management and Workforce
stamp is a "blockbuster" T- GGD- 00- 138, May 23, 2000 (12 Issues, before
the Oversight of commemorative stamp that costs 40 pages). Tax
Administration: IRS' Government Management,

cents, or seven cents above the cost of Efforts to Serve Small Business
Restructuring and the District of a regular first- class postage stamp. The
Taxpayers, by Cornelia M. Ashby, Columbia Subcommittee, Senate Postal
Service is authorized to deduct Associate Director, Tax Policy and Committee
on Governmental Affairs.

from the seven- cent surcharge its costs Administration Issues, before the
to print, sell, and distribute the stamp. Senate Committee on Small
Business. During the 1990s, many federal GAO found that it is unclear how
much agencies cut back on hiring new staff it cost to develop and sell the
stamp About 40 million small businesses and

to reduce the number of employees on because the Postal Service did not
self- employed taxpayers in the United the payroll and to meet downsizing
track these expenses. Postal officials

States are responsible for remitting goals. As a result, these agencies also
said that these costs were half of the taxes collected by the reduced the
influx of new people with inconsequential or immaterial and it Internal
Revenue Service (IRS). The

IRS Restructuring and Reform Act of orders. These orders arose from
longstanding human resources. The Senior Real 1998 requires IRS to place
more litigation intended to help Property Officer should be qualified

emphasis on providing better service ensure adequate medical services to
through education, training, to taxpayers. This testimony discusses

prisoners. The receivership is experience, and certification. A the factors
that complicate small scheduled to expire in August 2000. In comprehensive,
reliable listing of business' efforts to comply with the

January 2000, the receiver awarded a federal properties, as envisioned by S.
tax laws and IRS' efforts to provide one- year contract, with four option

2805, is essential to overseeing and better service to this important group
years, to a private, not- for- profit firm managing the government's large
of taxpayers.

to provide medical services to portfolio of federal assets. The bill also
individuals housed at the D. C. jail. This

would amend current law to allow

T- GGD- 00- 163, June 21, 2000 (15 testimony answers the following four each
agency to retain the proceeds of pages). Gun Control: Improving the

questions: (1) What are the costs of real property sales and deposit them
National Instant Criminal Background providing medical services at the D. C.
into agency capital asset accounts for Check System, by Laurie Ekstrand,
Jail as compared with similar

real property needs. The bill would Director, Administration of Justice

jurisdictions? (2) What would also provide property managers with Issues,
before the Senate Committee constitute an acceptable level of four new
enhanced management tools: on the Judiciary. medical service and staffing at
the jail?

(1) interagency transfers or exchanges, (3) What effect did the contracting

(2) sales to or exchanges with This testimony draws on two recent process
have on medical service costs? nonfederal sources, (3) subleases, and GAO
reports on the establishment and

(4) Did the failure of the receiver's (4) outleases. However, the 20- year
operation of the National Instant

employees to resign from their limitation generally placed on Criminal
Background Check System, positions before being awarded the outleases could
significantly reduce which was mandated by the Brady Act contract violate D.
C. laws or the usefulness of this tool for

in 1998. (See GAO/ GGD/ AIMD- 00- 64, regulations?

properties that are historically Feb. 2000, and GAO/ GGD- 00- 56, Apr.
significant or in economically 2000.) GAO focuses on the following

T- GGD- 00- 175, July 12, 2000 (9 depressed areas. four aspects of the
system: (1) the pages). Federal Real Property: Views system's availability
and

on Management Reform Proposals, by T- GGD- 00- 178, July 20, 2000 (15
responsiveness, (2) the type of Bernard L. Ungar, Director, pages). Managing
for Results: information available from the system Government Business
Operations Continuing Challenges to Effective compared to that available to
state and Issues, before the Government GPRA Implementation, by J. local law
enforcement agencies before Management, Information and

Christopher Mihm, Associate Director, the system, (3) the advantages and the

Technology Subcommittee, House Federal Management and Workforce
disadvantages of system background

Committee on Government Reform. Issues, before the Government checks done by
state agencies rather Management, Information and than the FBI, and (4) the
extent to S. 2805 would require the General Technology Subcommittee, House
which transactions under the system

Services Administration (GSA) to take Committee on Government Reform. have
resulted in firearms being sold to a leadership role-- in collaboration with
ineligible persons. the heads of federal landholding The challenges to
implementing the

agencies-- to publish and maintain a Government Performance and Results

T- GGD- 00- 173, June 30, 2000 (11 current set of real property asset

Act are many. Each agency must focus pages). District of Columbia management
principles. H. R. 3285 on the results it wants to achieve, not Receivership:
Selected Issues Related would require GSA to establish

the products it produces and the to Medical Services at the D. C. Jail, by
performance measures to track process used to produce them. Laurie Ekstrand,
Director, executive branch agencies' progress in Agencies must coordinate
crosscutting Administration of Justice Issues, achieving property management
programs, thereby reducing mission before the District of Columbia
objectives and would compare the fragmentation and program overlap.

Subcommittee, House Committee on government's performance with that of For
example, eight federal agencies

Government Reform. the private sector. S. 2805 would also now run 50
programs for the homeless. provide for a Senior Real Property Agencies are
to show relationships The D. C. Jail's medical care facility Officer who
would oversee all real

between budgetary resources and was placed under court- ordered

property asset management activities performance goals. They must also
receivership in August 1995 after the and would work with the respective
show how daily operations lead to District was held in contempt for agency's
Chief Financial Officer, Chief results. Most fiscal year 2000 repeatedly
failing to carry out court Information Officer, and head of performance
plans do not sufficiently

address how to strategically manage local income taxes and some of the
always adhere to its process

their people (human capital). The fees charged by the Securities and
requirements, and its financial data systematic integration of human
Exchange Commission for securities. were inaccurate and incomplete. USPS
capital planning and program Each enterprise has a $2. 25 billion believes
that it has broad statutory

planning-- a critical component of highperforming conditional line of credit
with the

authority to offer e- commerce organizations-- is not being Department of
the Treasury. Federal products and service. The Postal adequately and
uniformly addressed sponsorship creates significant risks Inspection
Service, which is across the federal government. and costs because taxpayers
might end responsible for enforcing postal laws, Agencies are also to
resolve all up paying part of that more than $2 has authority and
responsibility to mission- critical management trillion debt. The 1992
Federal Housing investigate violations of law that challenges and program
risks, not just Enterprises Financial Safety and

involve USPS e- commerce products some of them. Agencies need reliable
Soundness Act established the Office and services. This testimony
information during their planning of Federal Housing Enterprise summarizes
the September report, efforts to set realistic goals and, later, Oversight
to ensure adequate

GAO/ GGD- 00- 188. to gauge their progress toward capitalization and safe
operations. The achieving these goals. For example, act also provided the
Department of T- GGD- 00- 200, Sept. 12, 2000 (39

program evaluation provides vital Housing and Urban Development with pages).
Government- Sponsored information about the contributions

additional regulatory authority to Enterprises: Creation of a Single that
programs have made to results. ensure that the enterprises fulfill their

Housing GSE Regulator, by Thomas J. Agencies must accurately record and
housing finance mission.

McCool, Director, Financial report financial management data on Institutions
and Market Issues, before both a year- end and ongoing basis. It is

T- GGD- 00- 195, Sept. 7, 2000 (13 the Capital Markets, Securities and

imperative to continuously improve pages). U. S. Postal Service: Electronic
GSEs Subcommittee, House internal controls and underlying Commerce
Activities and Legal Committee on Banking and Financial financial management
information

Matters, by Bernard L. Ungar, Director, Services. systems. Government
Business Operations Issues, before the International This testimony
discusses H. R. 3703 and

T- GGD- 00- 182, July 25, 2000 (7 Security, Proliferation and Federal other
issues related to the housing pages). Housing Enterprises: The Services
Subcommittee, Senate government- sponsored enterprises Roles of Fannie Mae
and Freddie Mac Committee on Governmental Affairs. (GSE). GAO supports a
single housing in the U. S. Housing Finance System,

GSE regulator for Fannie Mae, Freddie by Thomas J. McCool, Director,

The United States Postal Service Mac, and the Federal Home Loan Bank
Financial Institutions and Markets

(USPS) has defined e- commerce System and concludes that selecting a Issues,
before the Task Force on initiatives to include products and

"stand- alone" agency with a governing Housing and Infrastructure, House
services that: (1) require the use of the

board would better ensure the Committee on Budget. Internet; and (2)
generate revenues for independence and prominence of the USPS from user
charges or license regulator and allow it to act The efforts of Fannie Mae
and Freddie

fees. It has identified seven ecommerce independently of the influence of
the

Mac have successfully lowered initiatives intended to housing GSEs, which
are large and

mortgage cost and increased home facilitate the movement of messages,
politically influential. This testimony:

ownership in the United States. merchandise, and money. For

(1) discusses the advantages and the However, these two governmentsponsored
example, USPS has introduced disadvantages of creating a single enterprises
had combined PosteCS, an Internet- based global housing GSA regulator; (2)
discusses debt and mortgage- backed securities

document delivery system. The Stamps Fannie Mae, Freddie Mac, and its
liabilities of more than $2 trillion at the Online initiative allows
purchase of regulators; and (3) summarizes GAO's end of 1999. The
enterprises' close

stamps and other philatelic products. 1998 review of the Federal Housing
relationship with the federal USPS introduced its eBillPay initiative,
Finance Board, which regulates the government and their federal charters an
electronic bill presentment and safety and soundness and the mission provide
them with advantages. First is payment service, in April 2000. In the of the
Federal Home Loan Bank the perception in the financial markets

development stage, USPS is working System. that the government would not
allow on an electronic mailbox, which could

the enterprises to fail, thus allowing link electronic and physical
addresses.

T- GGD- 00- 206, Sept. 19, 2000 (25 them to borrow at relatively lower cost
GAO found, however, that USPS pages). U. S. Postal Service: Sustained than
private firms. Their charters also provided inconsistent information on

Attention to Challenges Remains exempt them from paying state and the status
of its initiatives, did not Critical, by Bernard L. Ungar, Director,

Government Business Operations insurance company assets and discussed
operational uncertainties Issues, before the Postal Service provided false
documents on that threaten a successful population Subcommittee, House
Committee on investment activity. He allegedly count. (See GAO/ GGD- 00- 6,
Dec. 1999, Government Reform. diverted these assets to other accounts

and GAO/ AIMD- 00- 61, Feb. 2000.) This he controlled to support the scam
and testimony elaborates on the following Several continuing challenges
facing his lavish lifestyle. Weaknesses in three operational uncertainties

the U. S. Postal Service include insurance regulatory oversight, highlighted
in these reports: (1) improving productivity, controlling including
inadequate analysis of achieving the Census Bureau's mail

costs, enhancing revenues, and security investments and failure to response
rate objective, (2) collecting improving labor- management detect
misappropriate of assets, accurate and timely data from relations. Long-
term increases in

delayed detection of the scam. GAO nonrespondents, and (3) conducting
productivity will be essential for the has noted regulatory weaknesses in

data capture options. Service's future success. The Service regard to change
of ownership recently reported that its productivity approvals, route
financial analyses,

T- GGD/ AIMD- 00- 119, Mar. 14, 2000 for fiscal year 2000 through midAugust
and periodic on- site examinations.

(16 pages). 2000 Census: Update on had increased 2.2 percent. Furthermore,
the National Association Essential Operations, by J. Christopher Although
the largest increase since of Insurance Commissioners lacks

Mihm, Associate Director, Federal 1993, it would translate into a effective
interstate coordination Management and Workforce Issues, cumulative increase
of 1. 5 percent oversight of entities under holding

before the Census Subcommittee, over the past decade. Questions for
companies and has gaps in control to House Committee on Government continued
oversight include how and prevent the migration of unscrupulous Reform.

when the Service expects to achieve securities brokers to other sectors of
breakthrough productivity. Another the financial services industry. The This
report updates the status of key issue is whether the Service, unions,

Gramm- Leach- Bliley Act of 1999 census- taking operations. GAO

and management associations will be underscores the importance of discusses
developments in such able to find common ground to consultation and
information- sharing essential areas as (1) outreach and address long-
standing problems in the among federal financial regulators and promotion,
(2) field follow- up

workplace that may impede the state insurance regulators. Regulators

operations, and (3) data capture. GAO Service's ability to improve recognize
the need to improve their also discusses steps that the Bureau productivity.
GAO also has continued coordination and have taken or plan to has taken to
help ensure that the concern about the quality and

take several measures. This testimony census questionnaires do not contain
transparency of the Service's

summarized the September report, the same misprint in mailing addresses
performance information. Other

GAO/ GGD- 00- 198. found in the 120 million advance stakeholders have also
raised notification letters sent out recently.

concerns about the potential effect of T- GGD/ AIMD- 00- 91, Feb. 15, 2000
(15 competition-- particularly from the pages). 2000 Census: Status of Key

T- GGD/ AIMD- 00- 133, Mar. 28, 2000 Internet-- on universal postal service.
Operations, by J. Christopher Mihm, (45 pages). Tax Administration: IRS'
Associate Director, Federal 2000 Tax Filing Season and Fiscal Year T- GGD-
00- 209, Sept. 19, 2000 (16

Management and Workforce Issues, 2001 Budget Request, by James R. pages).
Insurance Regulation: Scandal

before the Census Subcommittee, White, Director, Tax Policy and Highlights
Need for States to House Committee on Government Administration Issues,
before the Strengthen Regulatory Oversight, by Reform. Oversight
Subcommittee, House Richard J. Hillman, Associate Director,

Committee on Ways and Means. Financial Institutions and Market In a little
more than six weeks-- on Issues, before the Finance and Census Day (April 1,
2000)-- the GAO makes several points about the Hazardous Materials
Subcommittee, decade- long process of researching, 2000 tax filing season.
The Internal House Committee on Commerce. planning, testing, and evaluating
Revenue Service (IRS) made several procedures for conducting the nation's

important changes to its taxprocessing Despite being barred from the largest
peace- time mobilization will

systems before the 2000 securities industry, Martin Frankel is

come to a close. At this critical filing season, and those systems have
alleged to have anonymously acquired juncture, it is important to examine
the not experienced significant problems. and controlled insurance companies
in state of the census, the progress made The use of electronic filing
continues several states and to have exercised to ensure a complete and
accurate to grow, and telephone service has secret control over a small
securities enumeration, and the level of risk that

improved, although it has yet to reach firm, using it to take custody of
remains. Two recent GAO reports the level of service achieved in 1998.

IRS has requested $8. 9 billion for fiscal Service Based Enumeration, used
to encompasses major changes in the year 2001, a nine- percent increase over
count persons with no usual residence; agency's organizational structure,
the agency's operating level for fiscal and (3) Questionnaire Assistance
business practices, human capital and year 2000. IRS has also requested a

Centers, which are designed to help performance management systems,
supplemental appropriation of $39. 8

people, especially those who speak and information systems. The million to
increase staffing levels in little English, complete their census magnitude
of this modernization effort several of the agency's programs. forms. GAO
also discusses how well makes it a high- risk venture that will Although
many aspects of the initiative the Bureau's data capture centers are

take years to fully implement. seem appropriate, GAO is concerned

handling production- level workloads. Although IRS has taken important (1)
about IRS' ability to implement the steps during the last year, some of its

initiative given its past history of being T- GGD/ AIMD- 00- 141, Apr. 7,
2000 (27 most important and difficult work lies

unable to fill enforcement positions pages). Office of Management and

ahead. This testimony discusses the funded by Congress and (2) that the
Budget: Future Challenges to business practice, performance initiative would
increase staffing for

Management, by David M. Walker, management, and information IRS' toll- free
telephone assistance Comptroller General of the United technology challenges
facing IRS. program. Congress should consider States, before the Government
withholding approval of the requested Management, Information and

T- GGD/ AIMD- 00- 150, Apr. 20, 2000 increase for telephone service until
Technology Subcommittee, House (11 pages). U. S. Customs Service: IRS
provides a more realistic level of Committee on Government Reform.
Observations on Selected Operations the service that it expects to provide
in

and Program Issues, by Laurie fiscal year 2001. IRS' request included

In earlier testimony before Congress Ekstrand, Director, Administration of
$1. 58 billion for its information (GAO/ T- GGD/ AIMD- 99- 65, Feb. 1999),

Justice Issues, and Randolph C. Hite, systems appropriation and $494 GAO
discussed in detail the Office of Associate Director, Governmentwide million
for its multiyear capital

Management and Budget's (OMB) and Defense Information Systems account. The
$494 million request is

effectiveness in a range of specific Issues, before the Government not
adequately justified, and Congress management areas. The Comptroller
Management, Information and should consider denying the request General's
statement builds on this by Technology Subcommittee, House and directing IRS
to develop a credible emphasizing the broader challenges

Committee on Government Reform. and verifiable budget request for the facing
the nation and the federal capital account. Finally, GAO is

government and their implications for This testimony provides GAO's

concerned that IRS' budget request central leadership approaches, in
observations on (1) the Customs does not provide clear links between
general, and for OMB, in particular. Service's development of a Resource the
resources being requested and Allocation Model, (2) an Automated expected
results. T- GGD/ AIMD- 00- 144, Apr. 10, 2000

Commercial Environment, and (3) a (14 pages). IRS Modernization: recently
issued GAO report on

T- GGD/ AIMD- 00- 136, Apr. 5, 2000 (17 Business Practice, Performance

Customs' personal searches of airline pages). 2000 Census: Progress Report
Management, and Information

passengers. (See GAO/ GGD- 00- 38, Mar. on the Mail Response Rate and Key
Technology Challenges, by Margaret T. 2000.) These three issues are all
Operations, by J. Christopher Mihm, Wrightson, Associate Director, Tax
extremely important to optimizing the Associate Director, Federal Policy and
Administration Issues,

quality and efficiency of Customs' Management and Workforce Issues, before
the Government Management, operations. before the Census Subcommittee,
Information and Technology House Committee on Government Subcommittee, House
Committee on T- GGD/ AIMD- 00- 154, May 3, 2000 (11 Reform. Government
Reform.

pages). IRS Modernization: Long- term Effort Under Way, but Significant This
testimony focuses on the mail The Internal Revenue Service (IRS), Challenges
Remain, by James R. White, response rate and its implications for
acknowledging its serious, longstanding Director, Tax Policy and

the timely and accurate completion of management problems and Administration
Issues; Randolph C. the Bureau's nonresponse follow- up

its history of ineffective attempts to Hite, Associate Director, workload.
GAO also discusses the

deal with them, has revised its mission Governmentwide and Defense status of
specific enumeration efforts statement to more fully embrace

Information Systems Issues; and that have taken place during the last

customer service and fairness to Gregory D. Kutz, Associate Director, month,
including (1) update/ leave, a taxpayers as core organizational

Governmentwide Accounting and procedure used to count people in

values. IRS has also launched a Financial Management Issues, before small
towns and rural areas; (2) modernization strategy that

the Government Management,

Information and Technology expectations. The Bureau is now additional
standards for when Subcommittee, House Committee on working on nonresponse
follow- up- delinquent taxpayers should be barred. Government Reform; the
largest, most complex, and costly part of the entire census. This

T- GGD/ AIMD- 00- 256, July 20, 2000 Congress passed the IRS Restructuring

testimony focuses on the progress of (21 pages). Small Business

and Reform Act of 1998 to signal its the nonresponse follow- up, paying
Administration: Steps Taken to Better concern that the Internal Revenue
particular attention to the response Manage Its Human Capital, but More
Service (IRS) had been rate, its impact on the nonresponse Needs to Be Done,
by Michael Brostek, overemphasizing revenue production follow- up workload,
and the Bureau's

Associate Director, Federal at the expense of fairness and inability to
complete nonresponse Management and Workforce Issues, consideration of
taxpayer interests.

follow- up on schedule while before the Senate Committee on Small The act
mandated certain taxpayer maintaining data quality. GAO also

Business. protections as well as more discusses the Bureau's efforts to
fundamental changes to the agency's

redeliver questionnaires initially found The Small Business Administration
mission and organizational structure.

to be undeliverable and the status of (SBA) has developed a shared vision,
GAO testified that IRS is as challenged the Bureau's data capture
operations. which includes transitioning its today as it was two years ago,
when employees from making and servicing the legislation was passed. IRS

T- GGD/ AIMD- 00- 167, May 9, 2000 (15 loans to primarily reaching out to
new continues to face serious operational pages). Debt Collection: Barring
markets and overseeing its privatesector problems in two key areas:

Delinquent Taxpayers From Receiving partners. SBA has also begun to
enforcement and customer service. Federal Contracts and Loan take steps to
better manage its human For example, shortcomings in the Assistance, by
Cornelia M. Ashby, capital activities, including workforce management of
billions of dollars of Associate Director, Tax Policy and planning efforts.
More needs to be unpaid tax assessments have placed a

Administration Issues, and Gregory D. done, however, including (1) burden on
taxpayers and caused the Kutz, Associate Director, completing its efforts to
identify the government to lose potentially billions

Governmentwide Accounting and knowledge, skills, abilities, and other

of dollars in revenue. Also, taxpayers Financial Management Issues, before
characteristics its employees will need remain frustrated by their inability
to the Government Management,

to perform successfully in SBA's new reach IRS by telephone. IRS has

Information and Technology business environment; (2) estimating developed a
massive modernization

Subcommittee, House Committee on the number of employees with those effort
to address its long- standing Government Reform.

skills who will be needed; (3) problems, but significant challenges
developing a succession plan for remain in the areas of performance H. R.
4181 is proposed legislation that

senior leaders and reinstating management and information systems

would ban delinquent federal debtors, candidate development programs for
modernization.

including delinquent taxpayers, from these leaders; and (4) ensuring that
obtaining contracts with government employees receive adequate training to
T- GGD/ AIMD- 00- 164, May 11, 2000 agencies. The bill would also generally
perform their jobs well. Although SBA (19 pages). 2000 Census: Status of
preclude delinquent taxpayers from plans to develop a workforce Nonresponse
Follow- up and Key obtaining federal loans (other than transformation plan
by October 2000, Operations, by J. Christopher Mihm,

disaster loans) or loan insurance or it could take years to fully implement
Associate Director, Federal guarantees. GAO supports the idea of it.
Management and Workforce Issues,

barring delinquent taxpayers from before the Census Subcommittee,

receiving federal contracts, loans, loan T- GGD/ NSIAD- 00- 120, Mar. 9,
2000 House Committee on Government guarantees, and insurance. In fact, as
(16 pages). Human Capital: Strategic Reform. far back as 1992, GAO urged
Congress

Approach Should Guide DOD Civilian to consider whether tax compliance
Workforce Management, by Michael This testimony updates the status of should
be a prerequisite for receiving a

Brostek, Associate Director, Federal the 2000 census. Overall, initial
Census federal contract. However, GAO Management and Workforce Issues,
Bureau data on the conduct of the

cautions that there are significant and Barry W. Holman, Associate

decennial count is encouraging, with implementation issues with H. R. 4181,
Director, Defense Management Issues, major operations reportedly
particularly with respect to the federal

before the Military Readiness proceeding on schedule and generally
acquisition process, and GAO Subcommittee, House Committee on performing as
planned. Particularly

recommends a phased- in Armed Services, and Civil Service noteworthy is the
65 percent initial implementation of the provisions and Subcommittee, House
Committee on response rate, which surpassed Government Reform.

This testimony discusses civilian considered burdensome by the

mark the restart of the routine physical personnel downsizing at the Defense
regulated community were required by security surveys that were suspended
Department and suggests a framework the statute being implemented. because
of a lack of sufficient that could be useful in approaching the personnel
after the Oklahoma City military's future human capital T- GGD/ OSI- 00- 19,
Oct. 7, 1999 (19 bombing. management challenges. GAO (1)

pages). General Services provides some perspectives on why Administration:
Status of Efforts to T- GGD/ OSI- 00- 177, July 27, 2000 (10 this is an
opportune time to consider Improve Management of Building

pages). Security Protection: human capital management in DOD Security
Upgrade Program, by Bernard Standardization Issues Regarding and (2)
discusses the human capital L. Ungar, Director, Government Protection of
Executive Branch self- assessment checklist that GAO has Business Operations
Issues, before the

Officials, by Bernard L. Ungar, developed to help agency leaders Oversight,
Investigations, and Director, Government Business focus on improving their
management Emergency Management

Operations Issues, and Robert H. Hast, of their most important resources:
the

Subcommittee, House Committee on Acting Assistant Comptroller General,
people who carry out the agency's

Transportation and Infrastructure. before the Criminal Justice Oversight

mission. Subcommittee, Senate Committee on In the wake of the bombing of the
the Judiciary. T- GGD/ OGC- 00- 157, June 8, 2000 (13 Murrah Federal
Building in Oklahoma pages). Regulatory Reform:

City in 1995, the President directed From fiscal years 1997 through 1999,
Procedural and Analytical federal agencies to upgrade the

42 executive branch positions at 31 Requirements in Federal Rulemaking,
security of their buildings. The

executive branch agencies-- including by Robert Murphy, General Counsel,
President gave the General Services all 14 Cabinet secretaries, four deputy
before the Regulatory Reform and Administration (GSA) responsibility

or under secretaries, and 24 other highranking Paperwork Reduction
Subcommittee, for the buildings under its control, and

officials (mainly heads of House Committee on Small Business. GSA began a
multimillion- dollar agencies)-- had security protection. security
enhancement program. GAO Personnel from 27 different agencies

This testimony discusses reviews GAO found that GSA has made progress in
protected them: 36 officials by their

has undertaken of agency compliance implementing GAO's

own agencies or departments and six with procedural and analytical
recommendations. GSA told its regions from other agencies or departments,
requirements in federal rulemaking.

to reassess the security of all of the such as the Secret Service and the

GAO's evaluations paint a mixed buildings in its inventory by April 1999

Marshals Service. Protective personnel picture. Although its findings may
not

(1) to ensure that all of its buildings increased 73 percent from fiscal
year be representative of all rulemakings, in have been assessed and meet
the 1997 through 1999. Funding rose from some cases, GAO found inadequate
Justice Department's minimum

$19. 1 million in 1997 to $28. 5 million in data, methodologies, or
assumptions. security standards and (2) to

1999, largely due to increased travel. In other cases, GAO found determine
whether the security Only the Secret Service and State noncompliance with
statutory upgrade information was correctly

Department have specific statutory requirements or executive orders.

represented in both the upgrade authority to protect executive branch Some
GAO reviews have helped to tracking system and the accounting officials.
Agencies reported that their ensure better adherence to regulatory system.
GSA completed negotiations officials received different levels and
requirements. On the other hand, with the Office of Management and

frequency of protection and that GAO's reviews sometimes did not Budget and,
as a result, has a way to protection was needed to respond to disclose a
failure to comply with recoup more of its building security possible and
actual threats. Most rulemaking requirements but provided costs. GSA,
however, still lacks

agencies favored establishing a Congress with factual detail and a
completely accurate data in its

repository of protective intelligence to better understanding of the
agencies' upgrade tracking and accounting facilitate sharing of threat
information procedures and decision making. systems and has not finished

about their officials. Also, agencies Other reviews established that the

developing outcome- oriented goals reported that their protective agencies
were acting within allowable and measures for its building security
personnel received different amounts

discretion to determine that some program. GSA decided on a new risk of
protection training and from requirements were inapplicable or that
assessment methodology and is now

different sources. Field staff received the requirements themselves were
evaluating how to implement the less training than did the agencies'
fulltime narrowly tailored and had little effect methodology in future
building personnel based in Washington. on rulemaking. GAO also found

security surveys. Finally, GSA's recent Most agencies favored establishing a
instances in which regulations

reassessment of each building was to standardized protection training

program. Most agencies opposed HEHS individual investment accounts would
centralizing security protection under

be reduced at retirement to offset one agency. No single agency or AIMD/
HEHS- 00- 29, Nov. 4, 1999 (67 government contributions; and the official is
responsible for handling pages). Social Security: Evaluating transition
period would be financed by issues relating to routine protection of Reform
Proposals. a loan from the general fund to the executive branch officials.
This OASDI trust funds. The President's

fragmentation has serious implications This report analyzes the potential
Social Security Transfer Proposal because 14 of the protected officials

budgetary and economic effects of five would keep benefits at current levels
are in the line of presidential Social Security reform proposals.

and general revenues would provide succession. Moreover, the lack of Under
the proposed Social Security addition financing. Under his USA thorough
threat assessments Guarantee Act, current retirement Proposal, workers would
receive a flat documenting the level of protection

income would not be reduced and general tax credit and a government needed
makes it difficult to determine could be higher; individual mutual

match on individual voluntary the basis for and reasonableness of fund
accounts financed by refundable

investment accounts financed from protection being given. This testimony tax
credits would be mandatory; and general revenues by means of income
summarizes the July 2000 report,

benefit payouts would remain the tax credits. GAO/ GGD/ OSI- 00- 139.

same as under current law or would be based on the annuitized account AIMD/
HEHS- 00- 56, Jan. 19, 2000 (30

T- GGD/ RCED- 00- 134, Mar. 22, 2000 balance, which would be gradually
pages). Social Security Reform: (11 pages). Managing for Results: returned
to Old Age and Survivors

Information on the Archer- Shaw Challenges in Producing Credible Insurance
and Disability (OASDI) trust Proposal. Performance Information, by J. funds
and left to the heirs of workers Christopher Mihm, Associate Director,

who die before receiving benefits. This report applies GAO's criteria for
Federal Management and Workforce

Under the proposed 21st Century assessing Social Security reform Issues,
before the Oversight,

Retirement Security Act, benefits proposals to the plan outlined by
Investigations, and Emergency would be generally lower than under
Congressman Archer. GAO's report is Management Subcommittee, House current
law but a minimum benefit based on an analytical framework that

Committee on Transportation and would be higher and formula changes

the agency provided to Congress last Infrastructure. would increase the
benefit structure's

March. That framework consists of the progressivity; mandatory individual
following three criteria: the extent to This testimony presents information
investment accounts would be which the proposal achieves on the challenges
that federal agencies

modeled after the Federal Thrift sustainable solvency and how it would face
in producing credible Savings Plan; additional revenue affect the U. S.
economy and the performance information and how would be available from
changes in the federal budget; the balance struck those challenges may
affect cost- of- living adjustment and Social between the twin goals of
income performance reporting. GAO recently Security benefit taxation
currently

adequacy (level and certainty of reported that it is unlikely that financing
Medicare; and retiring benefits) and individual equity (rates agencies will
have the reliable workers could buy annuities or take a

of return on individual contributions); information needed to assess whether
monthly pay- out with the balance after and how readily such changes could
be goals are being met or specifically how death left as a lump sum or
rolled over.

implemented, administered, and performance can be improved. (See Under S.
1383, benefits, mandatory explained to the public. GAO/ GGD- 00- 52, Feb.
2000.) This individual accounts, additional testimony (1) provides a

revenues, and account distributions on AIMD/ HEHS- 00- 102R, Feb. 29, 2000
governmentwide perspective on the retirement and after death would have (24
pages). Social Security Reform: credibility of agencies' performance
features similar to the previous Evaluation of the Nick Smith Proposal.
information; (2) discusses some of the proposal. Also, children would have
challenges faced by agencies,

�KidSave� accounts from birth to age Recent proposals regarding Social
including the Department of five and retiring workers would take a Security
Disability Insurance range Transportation, the Environmental

benefit reduction to reflect from increasing the substantial gainful
Protection Agency, and the General government contributions to the activity
level established for the Services Administration, in producing

individual accounts. Under program's blind beneficiaries to credible
performance data; and (3) Congressman Kasich's plan, initial

eliminating it completely. These highlights how agencies can use their
benefits would be lower because they proposals, if enacted, would likely
performance reports to address data would be indexed to prices rather than
increase beneficiaries' work effort but credibility issues. to wages;
benefits from voluntary would raise program costs and could

widen the differences in the program's system is managed. Previously, some
and makes these data available to treatment of blind and nonblind

foster children languished in other federal and state agencies for
beneficiaries. Raising the level for temporary, out- of- home care while
their assistance programs, such as the blind persons could result in calls
to prolonged efforts were made to Food Stamp program, which may help
increase it for nonblind persons, reunite them with their biological them
improve the accuracy of their leading to significantly higher program
families. States are now required to payments. Arguments that the costs and
adverse effects on the

find these children a safe, permanent program's $10 million cost is high are

solvency of the Social Security trust home more quickly. This report
balanced against benefits that are fund. Eliminating the level would
discusses states' early efforts to likely to enhance the operation of SSI
fundamentally alter the purpose of the implement the act's provisions. GAO

and other federal programs for years program. Other changes to work
describes (1) how the states have to come. incentives being implemented or
responded to the act regarding legal, tested are likely to increase

administrative, and other changes that

HEHS- 00- 3, Nov. 17, 1999 (28 pages). beneficiaries' work without changing
social workers may need to make in Consumer Product Safety the nature of the
program. their day- to- day practice of handling Commission: Additional
Steps Needed welfare cases; (2) the status of states' to Assess Fire Hazards
of Upholstered GGD/ HEHS- 00- 153, July 31, 2000 (91 implementation of the
two provisions

Furniture. pages). Anti- Drug Media Campaign: related to making timely
permanency ONDCP Met Most Mandates, but decisions for those foster children
who To establish a flammability standard Evaluations of Impact Are are
unable to safely return home; and

for chairs, sofas, and other Inconclusive. (3) the steps that the Department
of upholstered furniture, the Consumer Health and Human Services has taken

Product Safety Commission quantifies The Office of National Drug Control to
assist states and monitor the the fire hazards using (1) national Policy's
(ONDCP) National Youth AntiDrug implementation of these two

estimates of the total number of fires Media Campaign has been provisions.
in four general categories and the proposed as a nearly $1 billion federal

extent of losses that do not reflect effort over five years to combat rising
HEHS- 00- 2, Nov. 22, 1999 (31 pages).

specific types of fires, such as those drug use among the nation's youth.
Supplemental Security Income:

from upholstered furniture, and (2) This report discusses (1) whether
Incentive Payments Have Reduced detailed information about specific ONDCP
provided timely financial Benefit Overpayments to Prisoners.

types of fires within a portion of all reports to Congress, how money for U.
S. fires. At present, the Commission paid advertising was managed and

As a result of welfare reform, the cannot ensure that its methodology
disbursed, and whether ONDCP Social Security Administration (SSA)

provides a complete picture of the complied with statutory requirements

now has a new way to identify national fire losses that the potential on the
obligation of funds; (2) what ineligible prisoners receiving standard would
address because, ONDCP has done to develop and Supplemental Security Income
(SSI)

among other things, (1) it has not implement guidelines for the campaign
payments. Today, SSA receives developed a statement of precision for in
response to requirements mandated information from 210 additional the
estimated losses from upholstered by law; and (3) whether the evaluation

prisons, preventing about $3.6 million furniture fires and therefore cannot
designs for phases I through III were in erroneous payments to inmates and
disclose the range of the standard's

appropriate, how well phase I and II identifying about $3.3 million in
possible benefits and (2) its evaluations were implemented, and

potentially recoverable overpayments methodology for calculating fire losses

how effective phases I and II of the already made. Also, SSA now receives

has the effect of including losses that campaign were in influencing group
some data on prisoners more the standard is not likely to address, awareness
of different types of paid frequently and in a format more usable such as
losses from fires that are anti- drug messages and drug attitudes. than
before, preventing at least $2. 7 intentionally set. GAO recommends

million in erroneous payments. SSA that as the Commission continues to HEHS-
00- 1, Dec. 22, 1999 (32 pages). has also prevented $1. 6 million in

consider the need for a mandatory Foster Care: States' Early Experiences
erroneous overpayments and

flammability standard for upholstered Implementing the Adoption and Safe
identified $1. 4 million in potentially furniture, it do more analyses to
Families Act. recoverable overpayments for the Old identify the level of
imprecision in its

Age and Survivors Insurance and methodology's fundamental The Adoption and
Safe Families Act of Disability Insurance programs. It has

assumptions and apply any necessary 1997 led to fundamental changes in the
developed new electronic monitoring revisions to its cost- benefit analysis.
way that the nation's foster care

and control systems for inmate data

HEHS- 00- 4, Oct. 15, 1999 (51 pages). HEHS- 00- 5, Oct. 15, 1999 (28
pages). residents. HCFA also lacks an Migrant Children: Education and HHS

Medical Malpractice: Effects of adequate array of effective sanctions Need
to Improve the Exchange of Varying Laws in the District of to encourage
state agencies to correct Participant Information. Columbia, Maryland, and
Virginia.

serious or widespread problems. GAO recommends that HCFA improve (1) The
Department of Education's

Many states changed their tort law in the scope and the rigor of its
oversight Migrant Education Program (MEP) the past 25 years in order to
reduce process through the state surveys and and the Department of Health
and malpractice insurance premiums, but (2) the consistency in how it holds
Human Services' (HHS) Migrant Head the evidence of the effect of the

state survey agencies accountable by Start Program (MHS) provide a range
changes is too limited to allow reliable standardizing procedures for
selecting of health, educational, nutritional, and cost savings estimates.
Maryland and

state surveys and conducting federal social services to migrant children.
Virginia both adopted tort reform- monitoring surveys. GAO summarized

MEP's primary goal is to give the albeit using different approaches-- but
this report in testimony before children of migrant crop workers a the
District of Columbia has not. How Congress; see: Nursing Homes: HCFA chance
to meet the same state the differences have affected Should Strengthen Its
Oversight of educational standards as other

malpractice costs is unclear. Limited State Agencies to Better Ensure
children. Its services vary across

data show that the median payment for Quality Care, by William J. Scanlon,
states, districts, and schools. MHS

a malpractice claim for physicians in Director of Health, Financing, and
funds infant and preschool centers

1996- 98 was $200, 000 in the District, Public Health Issues, before the
Senate that serve the preschool- age children $150,000 in Baltimore, and
$112, 500 in Special Committee on Aging. GAO/ THEHS- of migrant crop
workers. MHS's

Richmond. Also, premiums for 00- 27, Nov. 4 (10 pages). narrower population
definition results obstetrics and gynecology were higher in service gaps for
some preschool in Baltimore than in the District but

HEHS- 00- 7, Oct. 14, 1999 (54 pages). children and for children of
different lower for internal medicine and Child Care: How Do Military and
ages in the same family. A broader general surgery, which were lowest in
Civilian Center Costs Compare? definition would mean that MEP and

Richmond. Relative to Baltimore or MHS could work together to provide
Richmond, high malpractice claim In the military's child development more
orderly transitions for children payments or insurance premiums did program,
fees paid by parents fund the moving from MHS into school and

not reduce the number of physicians in salaries of caregivers. Federal
dollars

greater service coverage for all the the District, which increased per pay
for supplies, equipment, staff children in a family. Analysis of the 100,
000 people by about 24 percent

training, and some staff salaries. The adequacy and the targeting of MHS's

between 1985 and 1997. Air Force is the only service whose

resources and federal leadership to centers all meet the accreditation
develop a system for each program to HEHS- 00- 6, Nov. 4, 1999 (45 pages).
standards of the National Association support the exchange of essential
Nursing Home Care: Enhanced HCFA for the Education of Young Children.
student information and coordination Oversight of State Programs Would The
hourly cost of child care is about of services are needed. Neither Better
Ensure Quality. 20 percent higher in Air Force centers Education nor HHS has
measured how than in civilian centers of comparable well the two programs
are achieving

The Health Care Financing quality because Air Force labor costs

their goals. GAO believes that it would Administration (HCFA) oversees how
are higher and because a higher be economically feasible to include a well
each state agency ensures quality proportion of the children are younger
sample of migrant children in ongoing care in nursing homes, but the

than three years old. Adjusting national data collection efforts. GAO
mechanisms HCFA uses are of limited

estimated costs to account for recommends that the types of scope and
effectiveness. Because the differences in age, the cost per childhour
activities included in MHS's definition

mechanisms are not applied is about seven percent higher in of agricultural
work be expanded to consistently in HCFA's 10 regional Air Force centers
than in civilian

harmonize with those included in offices, HCFA lacks sufficient,

centers. The Air Force pays its centers' MEP's definition. GAO also
consistent, and reliable data with caregivers an average of $11.20 per
recommends that both Education and

which to evaluate the effectiveness of hour in salaries and benefits, $1. 04
HHS develop nationwide systems to state agencies' performance or the more
than civilian centers pay. GAO transmit children's tracking success of its
recent initiatives to concludes that, with adjustments for information and
that they include improve nursing home care. HCFA age distribution, the
costs of highquality

studies that measure MEP's and MHS's cannot be certain whether some states

child care in Air Force and outcomes in their research and are failing to
identify serious civilian centers are not substantially evaluation plans.
deficiencies that harm nursing home different.

HEHS- 00- 8, Dec. 22, 1999 (44 pages). much longer than envisioned when the

largely untested PPS. Until data are Vaccine Injury Compensation:

program began. HHS' recent changes available to refine the PPS to ensure
Program Challenged to Settle Claims to the vaccine injury table will make
appropriate access and payment Quickly and Easily.

the process easier for some people to levels, a risk- sharing approach could
obtain compensation, but it will make moderate unintended changes and
Although routine vaccinations have it harder for a larger number to do so.

would be appropriate to protect reduced by 95 percent the number of The
program trust fund has grown to beneficiaries, HHAs, and the Medicare
Americans who contract a number of $1. 3 billion, primarily because the
program. Key PPS features may need infectious diseases, sometimes a income
from vaccine excise taxes has to be modified as experience is gained vaccine
can have severe side effects, been higher than payments for claims and more
data become available, including death and disabling and associated
administrative costs analyzed, and assessed. conditions that require
lifetime and because interest has been medical care. In the 1980s, lawsuits
accruing on the fund's balance.

HEHS- 00- 10, Nov. 1, 1999 (48 pages). stemming from such incidents Defense
Health Care: Tri- Service threatened to affect the availability HEHS- 00- 9,
Apr. 7, 2000 (48 pages).

Strategy Needed to Justify Medical and the cost of vaccines as well as the
Medicare Home Health Care: Resources for Readiness and development of new
ones. To address Prospective Payment System Will Peacetime Care. this
problem, Congress created the Need Refinement as Data Become Vaccine Injury
Compensation Available.

The Department of Defense (DOD) Program, which requires people who needs to
apply a tri- service strategy believe they have been injured by a The
Balanced Budget Act of 1997 nationwide to account for the vaccine to file a
claim with the requires the development of a resources its military
treatment program rather than sue the vaccine prospective payment system
(PPS) to facilities in the national capital area manufacturer or those who
replace cost- based payments for home need for both readiness and peacetime
administered the vaccine. The program health agencies (HHA). The act

care. By also considering resources uses a vaccine injury table, which is
outlines general terms for the HHA

available in the local civilian intended to minimize the difficulties

PPS, specifying that it pay a fixed, community, DOD would then have a that
petitioners have in proving that predetermined amount for a unit of
systematic basis to justify budget the injury resulted from a vaccine. By
service, adjusted for patient

requests. In the 1990s, DOD and the contrast, in a lawsuit, the injured
party characteristics that affect the costs of services' surgeons general
bears the burden of proving that the providing care. GAO assessed the

implemented DOD's managed care vaccine caused injury. GAO found that

Health Care Financing program, reduced the number of although the program
appears to Administration's (HCFA) research and medical personnel,
consolidated provide an easier process for obtaining demonstration projects
related to the graduate medical education programs, compensation than the
traditional civil design of the PPS. The research did

established partnerships with the tort system, the process has not been

little to explain the variation in service Department of Veterans Affairs,
and as quick or as easy as expected. costs and patterns of care that is not
undertook several other improvement Processing most claims under the tied to
therapy service use, which is initiatives. Recent efforts include a

program takes more than two years. In useful in evaluating the effects of
the project to develop a tri- service strategy

1990, when a filing deadline neared for PPS on beneficiaries' access and to
account for current and projected injury claims relating to vaccinations
quality of care. The proposed HHA PPS beneficiary populations, focus on the
received before October 1988, the would create strong financial

military health system's basic wartime number of claims soared to more than
incentives that could cause providers and peacetime care missions, and
3,200. This influx created a large to compromise quality of care and

optimally seek to realign military backlog of claims, which the could result
in unintended increases in treatment facilities' staffing and Department of
Health and Human Medicare home health spending.

resource allocations. GAO suggests Services (HHS) is still trying to
resolve. Extensive monitoring of home health that DOD top management
continue to Also, as the program received more service delivery would be
likely to be scrutinize this project and periodically funding for staff and
experts to defend required, but such monitoring is report to Congress on
progress being

claims, the government increasingly complicated by the lack of accepted
made. challenged claims in which the cause standards for home health care.

of injury was in doubt. As a result, Uncertainties about the appropriate
HEHS- 00- 11, Nov. 15, 1999 (29 pages). petitioners needed more information
specification of key design features Education and Care: Early Childhood and
time to prepare cases, which and providers' responses to the PPS

Programs and Services for LowIncome resulted in processing times that were
suggest moderating the effect of a

Families.

The federal government, primarily families, using traditional methods in
skills practice in real- life settings, or through the Department of Health
and new ways. For example, the state fall short on supervised practice
living Human Services and the Department agencies enter into contracts with
arrangements. Few national or local of Education, spent about $11 billion in
agencies in other states to conduct studies have assessed the effectiveness

1999 on a range of programs for early recruitment activities in geographic

of independent living services. Only childhood care and education for
lowincome areas outside their jurisdiction, and one national study has been
children. The states spent use Internet Web sites to publicize

completed, and only a few of the states nearly $4 billion. Thirty- two
states children and recruit families. studies have tried to measure the
funded preschool programs, 15 Nonprofit groups working to improve ability of
youths to become selfsufficient.

supplemented Head Start funds, and 19 interjurisdictional adoption processes
The Department of Health had child care programs that provided have targeted
their efforts at the and Human Services (HHS), which

funding to communities. Educationally nationwide recruitment of adoptive
oversees the program, has no method oriented services were the most homes
for hard- to- place foster for reviewing the states' progress in common in
centers and homes. Lowincome children who are waiting and at issues

helping youths make the transition families nevertheless found it related to
improving the use of home from foster care, and the content and hard to
obtain infant and toddler care,

studies and the Interstate Compact on quality of the states' annual program
care for children with special needs

the Placement of Children (ICPC), a reports HHS relies on vary and contain
(such as those with physical uniformly enacted statute that little
information on program disabilities), and care during evenings

provides the legal framework for outcomes. HHS issued a contract in and
weekends. Three major barriers placing children in adoptive homes

1988 to analyze a decade's worth of included cost, availability, and across
state lines. The Department of annual program reports to find models
accessibility to providers. Some states Health and Human Services could help
for states to follow and measures to and localities using collaborative
improve aspects of the adoption take for improving reporting and initiatives
report varying degrees of process that are beyond the agencies' evaluation.
success at increasing the availability of legal authority, such as better
care, depending on different eligibility coordinating its guidelines for
state

HEHS- 00- 16, Dec. 21, 1999 (30 pages). requirements, concerns about losing
legislation on the termination of VA Health Care: Laundry Service program
authority, and lack of parental rights and assistance to the

Operations and Costs. information or funding for states on ICPC issues.
collaboration. Infant and toddler care,

The Department of Veterans Affairs' care during nonstandard hours, and

HEHS- 00- 13, Nov. 10, 1999 (33 pages). (VA) spends about one- third of its
care for children with special needs

Foster Care: Effectiveness of health care budget on support have the
greatest need for support. Independent Living Services services, such as
food services, Unknown.

laundry, and housekeeping, at HEHS- 00- 12, Nov. 19, 1999 (53 pages).
hospitals, nursing homes, and Foster Care: HHS Could Better The Independent
Living Program, domiciliaries. Members of Congress Facilitate the
Interjurisdictional

which is funded by federal, state, and have raised concerns that VA could do
Adoption Process. local tax dollars, is designed to help

more to increase the efficiency of young people move from foster care to
these support services. This report, the About 8,000 children, or about 1. 5
independent living. The program

second in a series on VA support percent of foster children, are legally
encourages them to complete high services, provides fiscal year 1998
available for adoption at any given school or pass the General

baseline information on (1) the type time and are waiting for an adoptive
Educational Development test and and the volume of laundry services home but
have no prospects because attend postsecondary schools. The that VA
provides, (2) how VA delivers they are older, need to be placed with program
also helps them find and keep laundry services, (3) the costs that VA
siblings, or have other special

employment and provides classes in incurs, and (4) the revenue that VA
considerations. Because they are daily living skills, such as money

raises from selling laundry services. difficult to find permanent placements

management, hygiene, housekeeping, GAO's first report described VA's food

for, they may be candidates for and nutrition, and provides tips on service
operations. (See GAO/ HEHS00- placement across state and county how to
interact with adults, such as 17, Nov. 1999.) jurisdictions. Although some
steps in

managing conflict. However, state and the adoption process are beyond local
administrators say that not all the HEHS- 00- 17, Nov. 19, 1999 (21 pages).
public welfare agencies' legal authority assistance youths need is always

VA Health Care: Food Service to change, they have directed their available.
Some programs are not

Operations and Costs at Inpatient efforts toward recruiting adoptive linked
with employers, cannot offer Facilities.

The Department of Veterans Affairs these two programs. This report (1) and
severity. These proposals range (VA) spent about $429 million to describes
how Medicaid and the act from better communication between

provide food services at 172 of its 175 interact to meet the needs of poor
doctors and patients about the risks inpatient health care locations in
fiscal school- aged children with disabilities

and benefits of medications to year 1998. Although some of this and (2)
identifies issues that have accelerating research on the safety of money
went for nutrition needs arisen in coordinating services marketed drugs.
Suggestions for assessments, counseling, and other

provided by Medicare and the act in reducing medication errors include
patient- related activities, most--$ 337 schools. developing computerized
prescribing million-- was spent on preparing and

and dispensing systems to detect distributing meals. Production and HEHS-
00- 21, Jan. 18, 2000 (47 pages). possible errors, increasing the role of
delivery costs averaged $24.50 per Adverse Drug Events: The Magnitude
pharmacists as advisers to physicians patient; daily costs at individual of
Health Risk Is Uncertain Because of and as monitors of drug therapy, and

locations ranged from $8 to $51. The Limited Incidence Data.

improving health care providers' differences reflect the different
pharmaceutical education. GAO requirements of, for example, About 2. 7
billion prescriptions were summarized this report in testimony

hospitals and nursing homes. In the filled in the United States in 1998.
before Congress; see: Adverse Drug same year, 27 VA locations raised
Although prescription drugs have great Events: Substantial Problem but $739,
000 by using excess food capacity clinical benefits, serious adverse drug
Magnitude Uncertain, by Janet to provide food services for 44 non- VA events
can lead to hospitalization, Heinrich, Associate Director for Health
organizations, including nonprofit disability, and even death. Adverse
Financing and Public Health Issues, groups and federal, state, and local

drug events are caused by harmful before the Senate Committee on government
agencies. drug reactions or by medication errors Health, Education, Labor
and committed by health care Pensions. GAO/ T- HEHS- 00- 53, Feb. 1 HEHS-
00- 20, Dec. 10, 1999 (25 pages). professionals and patients. Two factors
(18 pages). Medicaid and Special Education: that can increase the risk of a
patients' Coordination of Services for Children suffering from an adverse
drug event HEHS- 00- 23, Dec. 14, 1999 (30 pages). With Disabilities Is
Evolving. are illness severity and intensity of Skilled Nursing Facilities:
Medicare treatment, including taking several Payment Changes Require
Provider The Individuals With Disabilities drugs simultaneously. Although it
is

Adjustments But Maintain Access. Education Act and Medicaid have the clear
that a wide range of commonly potential to offer various services and

used drugs cause adverse drug events In 1998, Medicare began the transition
equipment that can be critical to the

with potentially serious consequences to a prospective payment system for
educational development and physical for patients, relatively little is
known skilled nursing facility services well- being of disabled children. In
about their frequency. Data routinely provided to Medicare beneficiaries.

1999, the act provided school districts collected on adverse drug events

Medicare began paying fixed, preset with $4. 3 billion to help make special
during clinical trials or after drugs are rates for each day of care a major
education and related services

marketed are intended to identify the change from the former system of
available to all students with adverse drug events that are cost- based
reimbursement. GAO found disabilities. Some of the costs of associated with
particular drugs and that the ability of Medicare services provided to poor
children do not focus on their frequency. beneficiaries to obtain needed
care

under the act may be covered by Information on the overall incidence of does
not appear to have decreased Medicaid. Although Medicaid is adverse drug
events from all drugs has since the implementation of the traditionally the
payer of last resort for been limited to a few research studies

prospective payment system, although health care services, since 1988 that
typically examined the experience some patients may stay longer in the
Medicaid has been required to of patients in one of two specific hospital
before being admitted to a

reimburse for medically necessary institutions-- generally hospitals or
nursing home or may receive care services provided to eligible children

sometimes nursing homes-- leaving the from other post- acute- care
providers.

under the act. The act is required to overall incidence of adverse drug The
new system does appear, however, coordinate with other federal events in
outpatient care largely to have affected the willingness or programs, such
as Medicaid, to finance

unexplored. Greater understanding of ability of some nursing homes to and
deliver services to disabled certain factors that affect the accept some
types of Medicare children. However, because the

likelihood of adverse drug events has patients. Hospital discharge planners

boundaries of operation for the act and led researchers and patient safety

report that facilities are reluctant to Medicare are unclear, concerns have
advocates to suggest a range of admit patients needing high- cost arisen
about coordination between

measures to decrease their number services, including some expensive

drugs and infusion therapy, because many title I teachers in schools serving
HEHS- 00- 31, Jan. 25, 2000 (22 pages). they believe that Medicare payments
students with limited English Medicare: Lessons Learned From for these
patients may be too low. GAO proficiency are bilingual or have other

HCFA's Implementation of Changes to also found that nursing homes prefer
specialized training in teaching these Benefits. Medicare patients needing
short- term students? What accommodations do rehabilitation, raising
concerns that states allow for these students in Medicare has undergone many
payments for these patients may be taking academic assessments,

changes as Congress has expanded too high. Although the new payment
including offering tests in their native and modernized the program. The
system has significantly changed language, and to what extent are they
Health Care Financing financial incentives, GAO concludes

participating in academic Administration's (HCFA) that aggregate payments to
providers assessments?

implementation of these changes has are adequate, given that inflated costs

sometimes created program were used to establish the per diem HEHS- 00- 28,
Jan. 24, 2000 (38 pages). vulnerabilities. As a result, dishonest payment
rates. However, the case- mix Child Care: State Efforts to Enforce or
unknowing providers have classification system used to adjust Safety and
Health Requirements.

submitted claims for inappropriate payments to reflect the needs of service,
unknowledgeable contractors patients may not appropriately

To help protect children in child care, have processed these claims, and
allocate payments across patients and states regulate providers by setting
HCFA has sometimes paid more than it

providers. GAO notes that the health and safety requirements that should
have. The Balanced Budget Act

preferred provider system is only one child care providers must meet and by
of 1997 set in motion additional of several factors contributing to the
enforcing these requirements through changes that were intended to poor
financial performance of Sun the activities of state child care modernize
the Medicare program,

Healthcare Group, Inc., and Vencor, licensing offices. Most states, however,
expand benefits, and extend the life of Inc., two corporations that run a
large

do not regulate all types of providers. the Medicare trust fund. HCFA faces

number of nursing homes. Nonregulated providers need not meet

the challenge of implementing the act's state child care requirements and
are provisions in a way that ensures

HEHS- 00- 25, Dec. 10, 1999 (22 pages). not subject to state enforcement
beneficiaries' access to covered

Public Education: Title I Services activities. Examples of nonregulated
services without compromising the Provided to Students With Limited
providers include relatives, such as program's fiscal integrity. This report
English Proficiency. grandparents; in- home providers, such compares (1)
HCFA's implementation as nannies and au pairs; some family of the expansion
of the partial The number of students with limited child care providers
caring for small hospitalization benefit and (2) HCFA's

English skills has soared during the numbers of children in a provider's
implementation of the more recent last decade. Between 1990 and 1997,

home; and center programs that changes under the act to determine the most
recent year for which data operate part- day or part- year. Although whether
HCFA is acting upon lessons are available, the number of students setting
and enforcing child care learned from the partial hospitalization with
limited English proficiency has

requirements are primarily the program. risen by 57 percent to about 3.5
responsibilities of the states and their million. The federal government has

localities, the federal government HEHS- 00- 32, Jan. 28, 2000 (22 pages).
tried to help states and localities requires that states have basic child
Veterans' Benefits: Independent improve education for all types of care
safety and health requirements in Review Could Improve Credibility of
disadvantaged children, including order to receive funds from the Child
Radiation Exposure Estimates.

those who speak English with Care and Development Block Grant. difficulty,
by funding programs to help This report (1) identifies the most Some of the
200, 000 active- duty these children achieve high academic critical
licensing and enforcement military personnel who participated in standards,
primarily through title I of activities that help states ensure the

atmospheric nuclear tests between the Elementary and Secondary

safety and health of children in child 1945 and 1962 were exposed to
Education Act of 1965. This report care, (2) describes the extent to which

potentially harmful doses of radiation. answers the following questions: How

states conduct these critical activities During the last 20 years, veterans
with many students with limited English for their regulated providers, and
(3) diseases that they attribute to proficiency are being served through
explains how states ensure that radiation exposure have filed claims
targeted and schoolwide title I nonregulated providers receiving for
monetary compensation with the

programs? How are these students block grant funds meet legal safety and
Department of Veterans Affairs (VA).

being served through targeted and health requirements. Veterans can receive
compensation for schoolwide title I programs? How 16 types of cancer without

documenting the radiation dose State/ National and AmeriCorps site
demonstration project, called because VA presumes these cancers to National
Civilian Community Corps Medicare subvention, which allows be directly
linked to the veterans' programs. GAO provides cost and Medicare- eligible
military retirees to exposures. For other cancers and other data for the
1998- 99 program

enroll in a new, DOD- run health some nonmalignant ailments, the year,
including information on maintenance organization (HMO). Defense Department
(DOD) estimates,

overhead expenses, education awards, Medicare can pay DOD for the health or
"reconstructs," the radiation dose and child care benefits. care provided to
retirees enrolled in using such information as the duties the demonstration
project, subject to and locations of veterans and their

HEHS- 00- 34, Dec. 14, 1999 (21 pages). certain conditions. The units during
the atmospheric testing, VA Health Care: VA's Management of demonstration's
goal is to implement the type and the quantity of radiation

Drugs on Its National Formulary. an alternative for delivering accessible
released from the explosives, and and quality care to these "dual- eligible"
readings from the film badges worn by The Department of Veterans Affairs
retirees without increasing the cost to veterans and from other devices use
to (VA) spent more than $1. 8 billion to Medicare or DOD. This report
measure radiation doses in the vicinity.

provide pharmacy benefits to veterans examines enrollment in DOD's pilot VA
uses the results of these dose in fiscal year 1999. To help manage its

HMOs for seniors. GAO discusses (1) reconstructions to decide pharmacy
benefit, VA maintains a list how successful the demonstration has
compensation claims. This report (1) of drugs-- known as the national

been in enrolling eligible beneficiaries, reviews studies that assess the
validity

formulary-- that its doctors are (2) what influenced retirees to join of
dose reconstructions for estimating expected to use when prescribing

DOD's pilot HMOs, and (3) what veterans' radiation exposures and drugs for
veterans. VA provides free factors accounted for differences in discusses
the issue with experts and outpatient pharmacy services to enrollment rates
across demonstration other knowledgeable individuals, (2)

veterans receiving medications for the sites. determines what activities are
in place treatment of service- connected to oversee the dose reconstruction
conditions and to veterans whose HEHS- 00- 37, Mar. 3, 2000 (65 pages).

process, and (3) examines alternatives income does not exceed the maximum
Medicaid Managed Care: Challenges in for deciding veterans' claims for

VA pension, regardless of a drug's Implementing Safeguards for Children

compensation related to radiation formulary status. Other veterans may

With Special Needs. exposures. be charged $2 for each 30- day supply of
medication. This report discusses The Health Care Financing HEHS- 00- 33,
Feb. 15, 2000 (29 pages). how VA manages its national formulary
Administration (HCFA) and the states National Service Programs: Two

and how drugs other than those on the face significant challenges in
AmeriCorps Programs' Funding and

national formulary are made available implementing safeguards under the

Benefits. to veterans. Balanced Budget Act of 1997 for children with special
needs who are

AmeriCorps-- the largest national and HEHS- 00- 35, Jan. 31, 2000 (44
pages). mandatorily enrolled in capitated community service program since
the Medicare Subvention Demonstration:

Medicaid managed care. Some states Civilian Conservation Corps of the
Enrollment in DOD Pilot Reflects

may have difficulty complying with the 1930s-- is now in its sixth year of
Retiree Experiences and Local act and may have to expand their operation.
AmeriCorps consists of four Markets. definitions of children with special
programs that help participants pay for

needs to include all the act's postsecondary education in exchange Many
military retirees would like to categories. An additional challenge for
doing community service.

use their Medicare benefits at military will be to assess whether and how to
AmeriCorps estimates that it spent medical facilities, but federal law does
adapt generic safeguards for special $477 million in fiscal year 1999 to not
allow Medicare to pay the Defense

needs populations to the unique needs support about 53, 000 AmeriCorps
Department (DOD). Many retirees can of children. HCFA is making progress
participants. Because of continuing get health care at military facilities

in tailoring its waiver review to require congressional concerns about the
only when space is available and states to explicitly focus on children
average annual cost per AmeriCorps cannot rely on them for with special
needs as a discrete participant, GAO identified and

comprehensive, continuous care. DOD population. HCFA recognizes that
compared these per participant costs is willing to provide such care to
these continued research and examination with other similar groups providing
retirees if the law is changed so that of the states' best practices can
help it community service. This report Medicare could reimburse DOD. In

improve its waiver review criteria and provides information on participant
light of these concerns, recent provide technical assistance to states costs
for both the AmeriCorps

legislation authorized a three- year, six regarding the most useful
safeguards.

HEHS- 00- 38, Feb. 28, 2000 (22 pages). determine the cost- effectiveness of
the and Human Services (HHS), the states Early Childhood Programs:

centers' seeking accreditation from the find it particularly difficult in
juvenile Characteristics Affect the Availability Joint Commission on
Accreditation of justice cases to meet title IV- E of School Readiness
Information. Healthcare Organizations rather than procedural requirements
intended to remaining with HRSA's own review protect children's welfare. It
is The federal government spent about process. important that HHS exercise
adequate $14 billion in 1997 on programs

oversight of title IV- E funded juvenile devoted to early childhood
education

HEHS- 00- 41, Mar. 3, 2000 (33 pages). justice placements to determine the
and care. These programs have various School Facilities: Construction extent
to which title IV- E funding is goals and provide different services
Expenditures Have Grown appropriately used and procedural and support to
children and their

Significantly in Recent Years. requirements are met in these cases.

families. Because of this large federal To do this, HHS needs sufficient
investment and the attention now Annual spending on elementary and
information about (1) facility eligibility being given to early childhood
secondary school construction rose by and compliance with procedural
experiences, there is interest in the

39 percent in fiscal years 1991- 97 to requirements in individual title IV-
E effectiveness of early childhood about $25 billion. Most of the increase
funded juvenile justice cases and (2) education and care programs,

was for the construction of buildings; the state and county systems used to
especially with respect to preparing spending on land and portable

determine whether the facilities in title children to enter school- known as
classrooms showed a net decline. Most

IV- E funded juvenile justice cases are "school readiness." This report (1)
contract spending was for new eligible for title IV- E funding, as well as
categorizes federal early childhood facilities and additions to existing
systems used to help ensure that education and care programs for a
facilities rather than renovations. procedural requirements are met in
better understanding of the federal

Average annual construction these cases. Although the states have
involvement in achieving school expenditures per pupil ranged from primary
responsibility for making title readiness and (2) discusses available

$934 in Nevada to $37 in Connecticut. IV- E facility eligibility decisions
and

information on the effectiveness of States with the largest expenditures
meeting procedural requirements in selected programs in contributing to per
pupil tended to have the highest juvenile justice placements, HHS, as school
readiness. enrollment growth rates and vice the ultimate steward of title
IV- E funds, versa. Although the largest source of has the responsibility to
exercise close

HEHS- 00- 39, Mar. 10, 2000 (49 pages). funding for school construction is
oversight of the use of those funds.

Community Health Centers: Adapting generally local construction bonds,
Collecting such information will allow to Changing Health Care Environment
nationwide data on how the amounts

HHS to identify the nature and the Key to Continued Success. and the
portions of funds are divided

magnitude of any problems that may between states and localities are

exist in these cases. GAO did not find an overall decline in

unavailable. Most states combine state Medicaid patients or Medicaid and
local funding to support school

HEHS- 00- 44, Mar. 31, 2000 (60 pages). revenues at federal community and
construction, but 15 states provided Welfare Reform: State Sanction migrant
health centers, which provide little or no funding in 1998- 99. Policies and
Number of Families

primary and preventive health care Affected.

services for low- income people living HEHS- 00- 42, June 9, 2000 (46
pages). in medically underserved areas. Given Foster Care: HHS Should Ensure
That Under the Temporary Assistance for the challenges of Medicaid managed
Juvenile Justice Placements Are

Needy Families (TANF), families care, however, GAO urges that the

Reviewed. receive cash benefits in exchange for

Health Resources and Services such work- related activities as job

Administration (HRSA) either improve Juvenile justice placements constitute
searches, vocational training, and the financial information reported in

a small proportion of all title IV- E subsidized or unsubsidized its Uniform
Data System and

placements. The states have employment. Recipients also may be
administrative database of selfreported occasionally claimed reimbursement

required to undertake other efforts to information from the centers for
juvenile justice placements at improve their lives, such as obtaining a or
develop a better way to use the

facilities that were not eligible for such high school diploma, enrolling in
information from the centers' financial

reimbursement and, in many of the parenting education, entering drug audits.
GAO recommends that HRSA title IV- E funded cases GAO reviewed,

treatment, or ensuring that their establish for the centers a systematic the
facilities served primarily children children are immunized and attend best
practices program for their

in the juvenile justice system. school. Families who do not comply learning.
GAO recommends that HRSA According to the Department of Health lose all or
part of their cash benefits

and may jeopardize other public HEHS- 00- 48, Apr. 27, 2000 (85 pages).
employers have in offering health benefits as well. Although sanction
Welfare Reform: Improving State insurance, such as administrative rates in
the states during 1998 were Automated Systems Requires

simplicity, choice of multiple insurers low, about 135, 800 families
nationwide Coordinated Federal Effort.

and benefit packages, and leverage in were under sanctions in an average
negotiating lower premiums. month during that year. State studies GAO
examined the ability of the states' Cooperatives can provide small of these
families indicate that they automated systems to provide

employers' employees with a better tended to have adults with lower levels
information needed for state and local choice of health plans offering of
education and less work experience officials to help low- income
standardized benefits and can offer than did the TANF population in
individuals with children obtain

employers fewer administrative general. When TANF payments employment and
become hurdles to obtaining health insurance. stopped, these families tended
to rely economically independent. GAO found However, in general, existing on
friends on relatives for support that better systems would help ensure
cooperatives have not significantly rather than income from a job. The

that the intended goals and reduced premiums for employers or
characteristics of families affected by requirements of Temporary Assistance
employees, and not all existing sanctions lend additional support to for
Needy Families (TANF), such as cooperatives have successfully recent
recommendations from Health promoting work and enforcing the attracted and
retained insurers willing and Human Services' Office of the

five- year time limit on aid, are met. to participate within the constraints
of Inspector General intended to help Many of the obstacles states face may
a cooperative or have avoided ensure that families understand their be best
addressed at the state level, enrolling a disproportionate share of work and
other responsibilities under such as the need for collaboration firms with
higher- risk individuals. Key TANF and the penalties for not among state and
local agencies. to the cooperatives' viability is how meeting them. However,
coordinated federal action benefit offerings, premiums, and would help
address several of the

requirements for insurers affect the HEHS- 00- 46, Mar. 23, 2000 (41 pages).
obstacles the states encounter as they distribution of risk among enrollees-
that Medicare Contractors: Further

take steps to improve their automated is, the extent to which the
Improvement Needed in Headquarters systems for social programs. However,
cooperative and the insurers and Regional Office Oversight. no group or
organization formally disproportionately attract and retain

brings together the array of federal healthy, low- cost enrollees or less In
overseeing Medicare claims agencies involved in welfare reform to healthy,
higher- cost enrollees. Several administration contractors, the Health help
devise solutions to the issues the

cooperatives have either ceased Care Financing Administration (HCFA) states
face in improving their welfare operations or faced declining is not able to
ensure effective and welfare- related automated participation by insurers
and accountability without a formal systems. Health and Human Services

employers, and even the largest process for evaluating regional office could
play a pivotal role in cooperatives have attained only a performance. To do
this, it would need orchestrating such a broad- based

small share of the health insurance to set expectations and develop
collaborative approach by bringing market for small employers. As new
standards for assessing regional representatives of key federal agencies
forms of pooled purchasing offices' oversight performance,

and other organizations together to arrangements designed for small provide
them with constructive work on these issues. employers are proposed that
operate feedback, and make comparative

under different regulatory and market performance information available to
HEHS- 00- 49, Mar. 31, 2000 (29 pages). conditions, the cooperatives' HCFA's
Administrator. It would also Private Health Insurance:

experiences can provide meaningful need to decide how to deal with
Cooperatives Offer Small Employers

insights. However, differences in the regions whose performance is less Plan
Choice and Market Prices.

design and regulatory environment of than satisfactory. GAO recommends the
proposed Healthmarts and the that HCFA use a consistently applied Small
employer purchasing existing cooperatives mean that it risk assessment
methodology to help

cooperatives were an important part of might not be possible to generalize
ensure that agency resources are used efforts by several states during the

from their experiences for the new effectively and that it consolidate its
1990s to improve the health insurance

pooled purchasing arrangements. review information and keep it up to options
of small groups. Established date. HCFA should also identify and by state
legislation or by private

HEHS- 00- 50, Feb. 15, 2000 (29 pages). share best oversight practices among
employer associations, cooperatives

Drug Abuse Treatment: Efforts Under all reviewers. seek to provide small
employers with Way to Determine Effectiveness of some of the same advantages
larger State Programs.

The federal governments spends The criteria and conditions that make HEHS-
00- 54, Mar. 1, 2000 (51 pages).

hundreds of millions of dollars on drug resource sharing cost- effective for
the HIV/ AIDS: Use of Ryan White CARE abuse treatment through the substance
Department of Veterans Affairs (VA) Act and Other Assistance Grant Funds.

abuse prevention and treatment block and the Department of Defense (DOD)
grant program. Although the need to be reviewed and the strategies

This report discusses the following Substance Abuse and Mental Health

for sharing rethought. Several three programs: the Ryan White Services
Administration (SAMHSA) questions require answers. Does

Comprehensive AIDS Resources monitors state expenditures to treatment of
TRICARE patients in VA Emergency Act (CARE) of 1990 run by determine whether
block grant funds

medical centers result in a lower the Department of Housing and are used in
accordance with statutory overall cost for the government than Human
Services, the Centers for requirements, this type of monitoring contracting
with private providers?

Disease Control and Prevention's is not designed to determine what Would
requiring that the medical (CDC) HIV/ AIDS prevention grants, impact state
drug abuse treatment centers be considered the equivalent and the Department
of Housing and

programs are having on the lives of of military treatment facilities yield a
Urban Development's Housing clients. Some states are assessing the more
efficient and cost- effective way

Opportunities for Persons Living With effectiveness of their treatment to
provide needed care to AIDS. GAO found that funds provided programs by using
outcome indicators. beneficiaries? Are there additional by the CARE Act
serve vulnerable SAMHSA officials believe that joint contracting
opportunities that groups in higher proportions than their

collecting uniform data on client would provide needed services to VA's
representation in the AIDS population

outcomes at the state level is essential and DOD's populations more
costeffectively and that its drug assistance services to determine the
effectiveness of drug than each agency providing

are reaching the rural AIDS population abuse treatment programs supported
such care itself? If sharing is to be in proportion to the AIDS cases in
with federal money and to report the

optimized, can significant and longstanding rural areas. Most CARE Act funds
go to information to Congress. SAMHSA is barriers be overcome, such as
medical treatment and medications.

trying to determine the availability of the need for processes that
facilitate About two- thirds of CDC's fiscal year client outcome data from
all states, billing, reimbursement, budgeting, and 1998 HIV prevention funds
to states, and it has awarded grants to some the timely approval of sharing
localities, schools, and organizations states to help them improve their
data agreements? VA and DOD need to were used for health education and
collection systems. These efforts work in concert to answer such risk
reduction, public information, should help identify states' views on

questions. However, reaching timely evaluation research, capacity building
and some of the complexities agreement could prove difficult given

and infrastructure development, and associated with collecting and the
different business models VA and community planning. About two- thirds
reporting outcome data. SAMHSA's

DOD use to provide health care of the HUD program's funds were used efforts
should help determine what services to their beneficiaries. in 1994- 98 for
housing assistance. additional actions are needed to get

Therefore, GAO advises that if an Urban areas generally receive higher
uniform reporting on the results of agreement is not reached, Congress
funding per AIDS case when an area is drug abuse treatment programs may need
to provide guidance to VA designated as an eligible metropolitan supported
by the block grant program.

and DOD that clarifies the criteria, area. GAO found that the

GAO summarized this report in conditions, and collaboration. GAO
compensation for administrators of testimony before Congress; see: Drug also
identifies specific steps each organizations that received federal Abuse:
Efforts Under Way to agency needs to take to stabilize the HIV/ AIDS funds
was generally Determine Treatment Outcomes, by current sharing program until
its comparable to that of administrators Janet Heinrich, Associate Director
for direction, goals, structure, and criteria of similar nonprofit
organizations. Health Financing and Public Health can be reassessed. GAO
summarized

Issues, before the Subcommittee on this report in testimony before HEHS- 00-
55, Mar. 30, 2000 (42 pages).

Criminal Justice, Drug Policy, and Congress; see: VA and Defense Health

Education Discretionary Grants: Human Resources, House Committee

Care: Rethinking of Resource Sharing Awards Process Could Benefit From on
Government Reform. GAO/ T- HEHS00- Strategies Is Needed, by Stephen P.
Additional Improvements. 60, Feb. 17 (11 pages). Backhus, Director of
Veterans' Affairs and Military Health Care Issues, before Congress set aside
1. 7 billion for 88 HEHS- 00- 52, May 17, 2000 (56 pages). the House
Subcommittee on Health, discretionary grant programs in fiscal VA and
Defense Health Care: Evolving Committee on Veterans Affairs.

year 1999. In awarding this grant Health Care Systems Require

GAO/ T- HEHS- 00- 117, May 17 (8 pages). money to state and local education
Rethinking of Resource Sharing agencies, school districts, colleges and
Strategies. universities, and other organizations,

the Department of Education relies on particular, the lack of a single VA at
VA's community- based outpatient the results of peer reviews, in which a

headquarters unit accountable for clinics. However, VA is not pursuing panel
of experts evaluate the merit of ensuring compliance with the capacity the
establishment of such slots grant applications. GAO found that the

legislation may have caused delays in because (1) opportunities exist for
Department has corrected some past monitoring and investigating locations

primary care training in outpatient weaknesses that have plagued its peer
where capacity appears to have clinics at VA hospitals, (2) remote review
process, but others remain that declined and in fully implementing
community- based clinics present a could affect its actual or perceived
congressionally mandated commuting problem for the residents, fairness. The
Department rarely performance standards for VA and (3) the physicians who
would be analyzes peer reviewers' feedback,

employees responsible for allocating required to supervise and train tracks
peer reviewers' performance, or and managing special disability residents at
the remote clinics might assesses the implications of variations program
resources. To ensure

not be able to obtain faculty status at in average scores among review
compliance with the capacity the medical schools. panels. A greater effort
in these areas

legislation, GAO recommends that VA could help the Department identify
designate a single office to be HEHS- 00- 65, Apr. 7, 2000 (19 pages).
problems and improve its peer review accountable for fully implementing the
Veterans' Benefits: Promising ClaimsProcessing process.

mandate to maintain capacity in Practices Need to Be special disability
programs. Evaluated. HEHS- 00- 57, Apr. 21, 2000 (35 pages). Disabled
Veterans' Care: Better Data HEHS- 00- 62, Apr. 12, 2000 (24 pages). Under
the direction of the Veterans

and More Accountability Needed to VA Health Care: Changes in Medical
Benefits Administration (VBA), 58 Adequately Assess Care.

Residency Slots Reflect Shift to regional offices of the Department of
Primary Care.

Veterans Affairs receive and process The Department of Veterans Affairs
veterans' compensation and pension (VA) concluded in its annual report for

During the last three academic years, disability claims. Responding to a GAO
fiscal year 1998 that it had maintained the Department of Veterans Affairs

survey, 55 regional offices reported 238 its mandated capacity to provide
(VA) has realigned its graduate medical practices that they believe have
reasonable access to needed education program and achieved its improved the
accuracy of their specialized care and rehabilitative goal of training 48
percent of its disability decisions and remand rates. services to veterans
with spinal cord residents in primary care. It eliminated GAO grouped these
into four areas: (1) dysfunction, blindness, amputations,

251 residency slots in specialty care efforts to improve staff training, or
mental illness. However, VA's data and converted 714 specialty residency
guidance, or accountability; (2) are not sufficient to support that slots to
primary care slots, reducing changes in the supervisory or staffing
conclusion because of extensive data the number of residency slots from

structure; (3) efforts to develop problems, such as the use of unreliable
8,910 to 8, 659. The major reasons for evidence accurately and fully; and
(4) proxy measures to identify veterans the changes were VA's decision to
efforts to communicate more with special disabilities. Moreover, VA increase
primary care residency slots

effectively with veterans. VBA has based its conclusion on national and
decrease specialty slots and

taken some steps to identify statistics that indicated that more medical
schools' decisions to potentially promising practices but has special
disability veterans were served restructure their programs to meet

neither followed up on this effort nor with fewer resources expended in 1998
changing demands for physicians or developed a system for evaluating than in
1996. However, there is accreditation requirements. VA and such practices
and disseminating the considerable variability among the medical school
officials characterized results to regional offices. Regional Veterans
Integrated Service Networks the changes as mutually beneficial offices
reported various practices that

(VISN) and, in fact, some VISNs because they were consistent with they
believe have helped improve their reported serving fewer veterans. In
current health care practices

claims- processing performance, but addition, VA attributed reduced
nationally. The changes have not regional office and VBA officials
expenditures and the use of fewer disrupted training, according to VA and
agreed that it would be helpful if VBA resources to efficiency gains, but
medical school officials at six facilities

evaluated and identified best practices because it lacks outcome measures,

GAO visited. When VA reduced the so that regional offices could use their

VA cannot tell whether it has number of residency slots, those slots

limited resources to try only the most maintained, enhanced, or diminished
generally reappeared at other hospitals promising ones. VBA is in the
initial the quality of care. VA faces challenges affiliated with the medical
schools. VA stages of planning a system for in maintaining its capacity to
serve and medical school officials said that evaluating promising practices
but has special disability populations. In some training opportunities also
exist

not established specific time periods times more untreated dental cavities

submit fraudulent bills to Medicare, for developing and implementing it.
than did children in wealthier families, Medicaid, and other federal health
and poor adults were much more likely programs. The government collected
HEHS- 00- 67, Mar. 31, 2000 (36 pages). to have lost six or more teeth to
decay more than $490 million from health Vaccine Injury Trust Fund: Revenue
and gum disease than were their care fraud settlements, judgements, Exceeds
Current Need for Paying higher- income peers. Minorities also

and administrative actions in 1999. The Claims. suffered high levels of
dental disease. Justice Department's use of the act, Dental problems not
only cause pain

however, has been controversial. The The Vaccine Injury Compensation and
infection but lead to millions of hospital industry has alleged that a
Program pays medical and other

lost school days and workdays each Justice Department investigation of
expenses for people who have been year. Although every state Medicaid
hospitals nationwide has been unfair harmed because of adverse reactions
program offers dental coverage for and overzealous. The Justice to
vaccinations against such diseases

children and most programs cover Department responded by issuing as measles
and polio. People seeking adults eligible for Medicaid, the use of guidance
to its staff on the appropriate compensation for vaccine injuries dental
services by low- income people use of the act in civil health care must file
a claim with the program, is low. States are required to provide

matters. In a July 1999 report, GAO instead of suing the vaccine
comprehensive dental benefits for

found that the Justice Department's manufacturer. GAO found that two
children enrolled in Medicaid, and the

process for assessing compliance at vaccines (one for whooping cough and
State Children's Health Insurance U. S. Attorney's Offices appeared the
other for polio), which account for

Program provides variable but often superficial and that implementation of
88 percent of the trust fund payments

substantial levels of dental coverage to the guidance varied among the U. S.
for injury claims through 1999, are

eligible low- income children in all but Attorney's Offices. GAO recommended
being phased out of use in the United two states. Adult dental services,
that the Justice Department improve States. Vaccines against four diseases
although optional under Medicaid, are its oversight. This report discusses
have been added to the program since covered to some extent in about
twothirds what has been done in response to 1997, but, as of December 1999,
only of the states. The availability of GAO's earlier recommendations. This
six of the 285 claims filed related to coverage does not, in itself,
however,

report also focuses on the most these vaccines had been adjudicated, bridge
the income gap and increase the

controversial of the four national and only one $600 payment for likelihood
of a visit to the dentist. For initiatives-- Laboratory Unbundling. attorney
fees had been made from the example, GAO's analysis of 1995 trust fund. For
the remaining claims, Medicaid claims data showed that only

HEHS- 00- 76, June 30, 2000 (60 program officials were either waiting 29
percent of enrolled adults had

pages). Contingent Workers: Incomes for petitioners to submit missing
visited the dentist in the preceding

and Benefits Lag Behind Those of Rest information or were still processing
year, less than half the rate of higherincome of Workforce. them. Current
annual appropriations adults. National survey data to reimburse agencies
from the trust also showed that poor children and

The contingent workforce comprises fund for administrative expenses- adults
visited the dentist at about half many types of workers, from highly

about $9. 6 million-- appear to be the rate of their higher- income paid
management consultants to lowpaid enough to meet agency needs. The

counterparts in 1996-- numbers that service sector employees. No $1. 46
billion trust fund balance have essentially remained unchanged consensus
exists on which categories

appears to be more than adequate, since 1977. of workers should be included
in the given the experience so far for claims definition. Estimates of the
size of the payments and related administrative HEHS- 00- 73, Mar. 31, 2000
(11 pages). contingent workforce range from five costs.

Medicare Fraud and Abuse: DOJ Has percent to 30 percent. Many of these Made
Progress in Implementing False workers have low family incomes-

HEHS- 00- 72, Apr. 12, 2000 (44 pages). Claims Act Guidance. often below the
federal poverty Oral Health: Dental Disease Is a threshold. Contingent
workers are also Chronic Problem Among Low- Income Health care fraud in the
United States less likely than the rest of the

Populations. costs taxpayers billions of dollars each workforce to receive
health insurance

year. A key weapon against health care and pension benefits through their
GAO's analysis of the most recent fraud is the False Claims Act, which

employers, either because they are not national health surveys (1994- 97)
allows the Justice Department to bring offered benefits or they lack the
found that low- income people have civil enforcement actions and seeks
number of hours of employment disproportionately high levels of significant
damages and penalties necessary to qualify. Also, many dental disease. Poor
children had five against providers who knowingly contingent employees,
particularly

those with low family incomes, do not for children younger than age five.
The facilities. The Health Care Financing participate because of the cost of
the other programs that provided data Administration (HCFA) is authorized
plans. Workers who are not spent 13 percent or less of their to use a
revised inherent employees-- independent contractors budgets for this
purpose. The 29 reasonableness process to adjust

and other self- employed workers-- are programs spent at least $9 billion to
Medicare payments by up to 15 generally not covered by key laws provide
education and care to children percent a year for medical equipment designed
to protect workers.

younger than age five in fiscal year and supplies. GAO found that HCFA
Moreover, it can be difficult to 1999. Three HHS programs-- Head acted
properly in issuing an interim determine whether workers are Start, CCDF,
and Temporary final rule to implement the inherent employees or independent
Assistance to Needy Families- reasonableness provision. GAO also
contractors, and some employers accounted for about $8 billion of the $9
found that using retail surveys as a misclassify workers as independent
billion. The 29 programs targeted poor basis for adjusting Medicare payments
consultants who do not have to be

children, children with special needs, is a sound concept for pricing
products offered benefits. Advocates for and members of certain native

that can be bought in retail outlets. contingent workers are calling for
populations. Some of the smaller Survey data clearly showed that legislation
that would require

programs focused on narrower groups, Medicare payments are much higher
employers to offer comparable such as children with disabilities. The than
the median surveyed retail prices

benefits to all employees. Employers programs were generally allowed to for
five of the products reviewed:

might reduce employees' salaries or provide a broad range of services:
lancets, eyeglass frames, urinary hire fewer workers to cover the costs
health, dental, mental health, social,

catheters, and two types of catheter of providing benefits. Another

parental, and nutritional services; insertion trays. As a result, payment
proposal would create associations of speech and hearing assessments; and
reductions of up to 15 percent are

people in similar jobs that could buy disability screening. Four programs
justified for these items. Retail surveys insurance as a group. Still other
actually provided most of these

may not be the best way to set proposals are designed to increase services
to a high proportion of the payments for items not generally sold workers'
access to health insurance participants younger than age five. at retail
prices, such as enteral and retirement benefits by providing Mission
fragmentation and program formulas. For such products, using tax breaks for
the cost of premiums

overlap, although sometimes wholesale prices plus a reasonable and
retirement- related savings necessary to meet federal priorities,

markup may be a better approach. accounts.

can create an environment in which Fewer suppliers may be willing to
programs do not serve participants provide these items to beneficiaries at
HEHS- 00- 78, Apr. 28, 2000 (43 pages). efficiently and effectively. To
address the lower payment rates. However, Early Education and Care: Overlap
these issues, policymakers could because retail prices, which include
Indicates Need to Assess Crosscutting

coordinate, integrate, or consolidate retailers' costs for both acquisition
and

Programs. programs. To identify the best method

service, were used to establish the for addressing inefficiencies among
proposed reductions, GAO believes Sixty- nine federal programs provided
fragmented and overlapping programs,

that access to these products is not or supported education and care for
policymakers need to know whether likely to be significantly affected.
children younger than age five in fiscal programs are fulfilling a unique
role, year 1999. The Department of are redundant, or are being HEHS- 00- 80,
May 2, 2000 (78 pages). Education and the Department of administered in the
most effective way

Toxic Chemicals: Long- Term Health and Human Services (HHS) ran to meet
strategic goals. Information Coordinated Strategy Needed to most of them.
Twenty- nine of the 69 required by the Government Measure Exposures in
Humans. programs provided education and care Performance and Results Act
should as a program purpose, as in the Child

answer some of these questions. Three main barriers limit federal and

Care Development Fund (CCDF), or as state agencies' ability to make more an
allowable activity, as in the Native HEHS- 00- 79, July 5, 2000 (57 pages).
progress in measuring internal doses American Employment and Training
Medicare Payments: Use of Revised

of exposure to toxic chemicals-- actual Program, or facilitated them in some
"Inherent Reasonableness" Process levels of chemicals or their way, as in
the National School Lunch Generally Appropriate. metabolites in human
tissues-- which Program. Spending on early childhood

can be a more useful measure of education and care varied widely: Of In
1998, Medicare paid at least $5. 9 exposure for some purposes than the the
21 programs that provided data, billion for medical equipment and

historical estimates of human about half spent 40 percent or more of
supplies on behalf of beneficiaries who exposure based on the concentration
their budgets on education and care live at home or in long- term- care of
these chemicals in environmental

media, such as air, water, and food. states' laws fully conform with federal

obtain coverage. A review of the states' First, federal and state
laboratories standards. Agency officials did not SCHIP programs found that
they offer often lack the capacity to conduct provide explicit time periods
for

many of the same benefits as Medicaid measurements needed to collect
completing these reviews, and until for dental care, hearing, mental health,
human exposure data; no laboratory they are complete, HCFA is largely

prescription drugs, and vision but method has been developed for reacting to
consumers' complaints as a

impose more limits on them. measuring the levels of many means of fulfilling
its statutory chemicals in human tissues. Second, mandate. Although nearly
600 selffunded

HEHS- 00- 89, June 1, 2000 (57 pages). information is lacking to help set
test state and local government Title I Program: Stronger results in
context; public health plans have opted out of at least one of
Accountability Needed for officials need more information on

the federal standards, HCFA has yet to Performance of Disadvantaged typical
exposures in the general fully determine its enforcement Students.
population in order to compare this responsibilities among the remaining
information with people's levels at nonfederal government plans and is

The Department of Education helps specific sites or with specific

instead relying on complaints from the states hold schools and districts
populations within states. Third,

enrollees to identify compliance accountable for the academic coordinated,
long- term planning problems. The final regulations on achievement of
disadvantaged among federal agencies is lacking, HIPAA's nondiscrimination
provisions students. Since the 1994 partly because of sporadic agency are
being reviewed by HCFA and the

reauthorization of title I, the states commitments to human exposure
Departments of Labor and the have made some progress in improving
measurement and monitoring. GAO Treasury and should be issued in the their
systems for holding districts and recommends that the Secretary of the
summer of 2000.

schools responsible for the academic Department of Health and Human
achievement of all students, including Services and the Administrator of the
HEHS- 00- 86, Apr. 14, 2000 (32 pages). disadvantaged students, but some
Environmental Protection Agency Medicaid and SCHIP: Comparisons of areas
still need attention. Education develop a coordinated federal strategy
Outreach, Enrollment Practices, and has provided some assistance to the for
short- term and long- term

Benefits. states in developing standards, monitoring and reporting of human

assessments, and criteria for adequate exposures to potentially toxic

In a sample of 10 states, GAO found yearly progress, but a majority of the
chemicals. that Medicaid and State Children's states appear to need
additional help Health Insurance (SCHIP) programs in collecting and
reporting HEHS- 00- 85, Mar. 31, 2000 (24 pages). have similar outreach
mechanisms but

disaggregated assessment data. Implementation of HIPAA: Progress

differ in the way that they enroll Beginning in the 2000- 2001 school year,
Slow in Enforcing Federal Standards children and in the scope of benefits
the states are required to collect and in Nonconforming States. they offer.
Some information that is report assessment data disaggregated required for
determining Medicaid by subgroups of students, including Nearly four years
after the Health eligibility is not required for SCHIP. the economically
disadvantaged. Only

Insurance Portability and Half the states required ore about a third of the
states currently

Accountability Act of 1996 (HIPAA) documentation for Medicaid than for

collect this information, and it is became law, the Health Care Financing
SCHIP, and states often required more unlikely that all the states will meet
the Administration (HCFA) continues to documentation for Medicaid than was

deadline. Without disaggregated data, be in the early stages of fully
federally required. States have the

test results for the whole student identifying where federal enforcement

flexibility under federal law to population can mask the results of will be
required. HCFA has assumed streamline requirements for Medicaid
disadvantaged students and prevent regulatory activities, such as reviewing
and SCHIP. All 10 states reported

the states and the districts from carrier policies and marketing policies
and procedures to help ensure identifying schools that may not be practices,
in the three states that had that eligible children were meeting the
educational needs of

voluntarily notified HCFA of their appropriately enrolled in Medicaid
disadvantaged students. Education's

failure to enforce HIPAA. HCFA has rather than SCHIP, but the ease with
research can provide states, districts, also identified more than 20 states

which Medicaid- eligible children were and schools with important where it
questions whether they have enrolled varied. In some cases, information to
help them improve conforming laws, but it is still persons applying for
Medicaid for their

instruction. Comprehensive evaluation determining whether they are children
were required to fill out efforts are needed to determine which enforcing
the standards through other additional forms or appear in person in services
and service delivery methods

regulatory means or whether other order to determine eligibility and

are most effective in closing students' "Dual eligibles" refers to low-
income that annual and lifetime dollar limits achievement gaps. Medicare
beneficiaries who also for mental health benefits be no more qualify for
full Medicaid benefits. restrictive than those for all medical HEHS- 00- 90,
May 31, 2000 (24 pages). These eligibles often receive benefits

and surgical benefits. Fourteen Veterans' Health Care: VA Needs Better from
two sets of providers, and an percent of plans were noncompliant; in Data on
Extent and Causes of Waiting estimated 97 percent of dual eligibles

1996, before the parity law was Times. receive their benefits under
Medicare's

enacted, only about 55 percent fee- for- service option. Some states are

reported offering parity in dollar limits. Anecdotal information on
veterans' considering making one managed care

Although most employers' plans now waits for outpatient health care-- and
plan responsible for the delivery of all

have parity in dollar limits for mental the locations and clinics where they
covered services. Two states health coverage, 87 percent of those wait the
longest-- has led officials from

(Minnesota and Wisconsin) are that comply contain at least one other the
Department of Veterans Affairs

enrolling dual eligibles into an plan feature that is more restrictive for
(VA) and representatives from veteran

integrated care program and two more mental health benefits than for service
organizations to believe that (New York and Massachusetts) plan to medical
and surgical benefits. For waiting times are often too long. Over do so in
2001. States are emphasizing example, about 65 percent of the plans the past
10 months, VA has initiated

service delivery in beneficiaries' restrict the number of covered two
efforts to gather comprehensive homes and targeting different outpatient
office visits and hospital data from its facilities on outpatient segments
of the dual- eligible days for mental health treatment more waiting time.
The first effort, begun in population compared with PACE, than those for
other health treatment. June 1999, produced incomplete and which enrolls
only people who are at In addition, many employers may have inaccurate data,
in part because of the risk of nursing home placement.

adopted newly restrictive mental differences in facilities' scheduling of
Finding the overall challenges of health benefit design features since
appointments. The second,

integration too great, Florida and 1996, specifically to offset the more
significantly better effort, begun in Texas are developing projects generous
dollar limits they adopted as December 1999, was designed to integrating
Medicaid acute- and longterm a result of the federal law. About twothirds
improve the data's reliability by care services only. Colorado is of these
newly compliant measuring the average time taken to pursuing a program that
avoids the use

employers changed at least one other schedule an appointment for an entire
of waivers. Difficulty in reaching mental health benefit design feature to
month; this new method should

agreement on an appropriate Medicare a more restrictive one compared with
provide VA with more complete and payment methodology for integrated only
about one- fourth of the employers accurate data. VA has also acted to care
programs was an important factor that did not change their dollar limits.
reduce the time veterans must wait for that delayed the approval of state
The law appears to have had a outpatient appointments. It hired a waiver
applications. Payment rates

negligible effect on claims costs. private contractor to develop and

should adequately compensate health Federal agencies have made varying
implement techniques to reduce plans for differences in frailty among
progress in performing their oversight waiting times at selected clinics in
VA dual eligibles while meeting OMB's

roles under the parity law. The facilities nationwide and plans to
requirement that Medicare

Department of Labor is in the process spend $400 million in fiscal year 2001
demonstrations not increase federal of expanding its oversight role. The to
improve the timeliness of service, Medicare expenditures.

Health Care Financing Administration patient access to telephone care, and
has not yet fully determined the nature timely access to clinical
information. HEHS- 00- 95, May 10, 2000 (64 pages). and the extent of its
oversight However, VA's lack of reliable data Mental Health Parity Act:
Despite New responsibilities. GAO summarized this

raises concerns about whether it has Federal Standards, Mental Health report
in testimony before Congress; an adequate basis on which to design Benefits
Remain Limited. see: Mental Health Parity Act: these initiatives. GAO
recommends

Employers' Mental Health Benefits that VA identify the extent and causes GAO
surveyed employers in the 26 Remain Limited Despite New Federal of waiting
time problems and monitor states and the District of Columbia Standards, by
Kathryn G. Allen, and track expenditures for addressing that did not have
state laws that were Associate Director for Health them. more comprehensive
than the federal Financing and Public Health Issues, Mental Health Parity
Act as of July

before the Senate Committee on HEHS- 00- 94, Aug. 18, 2000 (48 pages). 1999.
Eighty- six percent of the Health, Education, Labor, and Medicare and
Medicaid: Implementing responding employers reported that as Pensions. GAO/
T- HEHS- 00- 113, May 18 State Demonstrations for Dual of December 1999
their plans complied

(11 pages). Eligibles Has Proven Challenging. with the federal parity
requirement

HEHS- 00- 96, May 2, 2000 (37 pages). and imprecise that it is easy to HEHS-
00- 107, June 30, 2000 (23 Women's Health: NIH Has Increased Its

overstate or understate the extent of pages). Title III, Older Americans
Act: Efforts to Include Women in Research. NIH's efforts. The nature of
scientific

Administration on Aging Funding inquiry makes it impossible to predict
Method Underfunds High- ElderlyGrowth The National Institutes of Health
(NIH)

all the effects of research, and this is States. has made significant
progress toward especially true for the basic research the goal of including
women and that makes up a large part of NIH's The Department of Health and
Human minorities in research. For the policy

portfolio. Service's (HHS) Administration on to have its intended effect,
however, Aging (AOA) uses a procedure for NIH needs to expand its focus
beyond HEHS- 00- 98, June 2, 2000 (74 pages).

distributing funds under Title III of the simple inclusion and to ensure
that, Chronic Fatigue Syndrome: CDC and

Older Americans Act that results in when it is scientifically appropriate,
NIH Research Activities Are Diverse, unequal funding per elderly person
researchers conducting clinical trials but Agency Coordination Is Limited.

across states to a much greater degree enroll populations and analyze study
than would be the result using the data in ways that enable them to learn
The Centers for Disease Control and statutory formula. For example, using
whether interventions affect women Prevention (CDC) has over the past 12

AOA's approach, Arizona's fiscal year and men differently. NIH staff, peer
years focused largely on the 2000 funding per elderly person is 33
reviewers, and advisory council prevalence and the causes of chronic percent
less than Iowa's, while strict members should carry out this

fatigue syndrome (CFS), including the adherence to the statute would result
dimension of the inclusion policy as search for infectious and in a 5-
percent difference. Under the conscientiously as they attend to its
immunological abnormalities. The

AOA procedure, most states with other components. For example, when National
Institutes of Health (NIH) has above- average growth in number of NIH
initiates a phase III clinical trial focused primarily on CFS' effects on

elderly residents received less funding through a request for application or
bodily systems and possible causal than called for by the statute. Using the
proposal, unless NIH officials have agents. Funds for CFS research have
statutory rather than the AOA method determined that this particular trial
is

increased at both CDC and NIH since would redirect $27 million of title III
exempt from the requirement, the 1987 but generally not in the past 4 fiscal
year 2000 state allotment funds request should inform the applicants years.
At CDC, the lengthy and

(3. 3 percent) to states that have that they should design the trial to
uncertain process for allocating CFS experienced above- average growth in
allow for a valid analysis of differences funds to the branch responsible
for their elderly populations. GAO between women and men. As

most of the CFS work has delayed suggests that if Congress wants to

reviewers examine each application to particular projects. Furthermore,
ensure that priority be given to current receive funding for a phase III
clinical CDC's redirection of funds has resulted data on states' elderly
populations in trial, they need to explicitly consider in reductions in CFS
resources, distributing title III funds, it could whether the study should
be impeding its CFS research. However, amend the statute to require that
funds structured to allow for analysis by sex.

CDC has begun a process to restore all be distributed in that way. Also,
NIH's tracking system is an redirected CFS funds. NIH has taken

important tool for monitoring the steps to facilitate the funding of CFS
HEHS- 00- 110, July 12, 2000 (44

implementation of the inclusion policy, projects, including issuing program
pages). Math and Science Education: and the system is beginning to capture
announcements, establishing a special Comprehensive Information About more
information, such as enrollment emphasis panel to review CFS grant Federally
Funded Materials Not targets, that will help assess the

applications, and using a discretionary Avai lable. policy's success. NIH's
recent steps to

program to fund additional studies. improve the system and move toward NIH
has also supported a number of The federal government invested an increased
electronic reporting should research centers on CFS. Coordination estimated
$2. 5 billion in mathematics help improve the accuracy and the between CDC
and NIH has been and science education in fiscal year timeliness of the data
and improve the limited and they have not jointly

1999. The Department of Education system's ability to measure progress.
conducted research. The CFS and the National Science Foundation However,
follow- up training on the Coordinating Committee has helped supported the
development of twothirds requirements and the purpose of the

facilitate some interagency of the 210 projects identified at tracking
system is needed. Finally, communications but has not provided the 11
agencies surveyed and worked NIH's data on spending on women's an effective
forum for developing with other agencies through an health must be
interpreted with care. coordinated research programs. informal network of
individuals

Determining which expenditures involved in the development of affect women's
health is so complex materials. Overall, the materials

incorporated the use of computer specific facilities. This would help widely
among carriers, resulting in software and the Internet, and projects

target inspection resources where they unequal coverage for Medicare tended
to focus on science rather than are most needed. HCFA's efforts to use

beneficiaries. Different practices math. Agencies used various available
outcome data for targeting its

among carriers, differences in local approaches to develop, promote survey
efforts might also eventually policies, and carriers' failure to apply
awareness of, and distribute help in this regard, but more testing

the coverage appropriately may have mathematics and science materials for
and evaluation are needed to help contributed to the variation in claim
kindergarten through 12th grade as ensure that the data used are sufficient
denials. part of their goal to increase public to predict noncompliance with
awareness, not to improve math and

Medicare's quality standards. GAO

HEHS- 00- 116, June 30, 2000 (75 science education. Agencies also summarized
this report in testimony pages). Department of Labor: tended to disseminate
their own

before Congress; see: Medicare Quality Administering the Labor- Management
information about materials rather of Care: Oversight of Kidney Dialysis
Reporting and Disclosure Act. than coordinating with other agencies;
Facilities Needs Improvement, by however, there is a trend toward William J.
Scanlon, Director of Health The Department of Labor's Office of making
materials available through the Financing and Public Health Issues,

Labor- Management Standards (OLMS) Internet. No single comprehensive before
the Senate Special Committee performs investigations and resource for all
federally sponsored

on Aging. GAO/ T- HEHS- 00- 136, June compliance audits, monitors reporting
materials is available to educators 26 (7 pages). and disclosure
requirements, and seeking to make informed decisions

provides compliance assistance but about the materials, nor is there is

HEHS- 00- 115, July 17, 2000 (35 uses investigations most frequently.

information available about the quality pages). Rural Ambulances: Medicare
OLMS uses voluntary compliance and of federally developed math and Fee
Schedule Payments Could Be litigation to enforce the requirements

science materials. About half of the 61 Better Targeted. of the Labor-
Management Reporting materials available in fiscal year 1999 and Disclosure
Act of 1959 but uses had been assessed by June 2000. Supplying prompt
ambulance services voluntary compliance most often. around the clock is
particularly Regarding the Department of Justice's

HEHS- 00- 114, June 23, 2000 (36 difficult in some rural areas because
enforcement efforts under its

pages). Medicare Quality of Care: these providers serve a large

memorandum of understanding with Oversight of Kidney Dialysis Facilities
geographic area with a low population Labor, Justice plays a significantly
Needs Improvement. density, resulting in significant greater role in
litigating cases

overhead costs. To reduce costs, they involving embezzlement or other The
oversight of end- stage renal must often maintain a volunteer staff.

similar wrongdoing than cases disease (ESRD) facilities needs Mileage
reimbursement is crucial to involving reporting violations, which
improvement. Increasing the budget of these providers because their are
considered to be less serious the Health Care Financing

ambulance trips are longer than those infractions of the law. Administration
(HCFA) for inspecting of their urban counterparts. In ESRD facilities should
help improve addition, because of the scarcity of HEHS- 00- 118, Aug. 7,
2000 (20

oversight, as would putting some teeth hospitals, beneficiaries are
sometimes

pages). Prescription Drugs: into the enforcement process. One way taken to
hospitals that do not allow Expanding Access to Federal Prices to give
facilities more incentives to Medicare reimbursement. The Could Cause Other
Price Changes.

stay in compliance with Medicare proposed Medicare fee schedule will

reimbursement policies would be to alter the way rural ambulance Federal
agencies, state Medicaid have available the kinds of monetary providers are
paid. Variations in

programs, and many nonfederal public penalties that can be used when payment
rates will be eliminated, and health groups have access to nursing homes are
found to have providers that transport beneficiaries prescription drugs
through the federal

severe or repeated serious in rural areas will receive enhanced supply
schedule (FSS) at substantially deficiencies. For example, HCFA can payments
to sustain service in sparsely

lower prices than do many other fine nursing homes, and the fines are
populated areas. GAO recommends purchasers. These prices are the same not
forgiven when the facility corrects that the Health Care Financing

or lower than those drug its problems. Another way to Administration refine
the payment manufacturers charge their mostfavored strengthen oversight
would be for adjuster to better target the necessary private purchasers.
state agencies and ESRD's networks to fixed costs of providers in rural
areas.

Manufacturers must also sell brandname share information on complaints and A
review of 1998 claims data reveals drugs listed on the FSS to four known
quality- of- care problems at that payment denials have varied

federal purchasers-- Veterans' Affairs,

the Department of Defense, the Public Under welfare reform, adults who
difficult to implement. Because the Health Service, and the Coast Guard- at

receive assistance under the demonstrated health risks from SUD a price at
least 24 percent lower

Temporary Assistance for Needy reprocessing are small, it may also than the
nonfederal average Families (TANF) program for more have only a limited
effect on public manufacture price, a ceiling price that than two years must
participate in health. GAO summarized this report in

is lower than the FSS price. Mandating work or work- related activities.
These testimony before Congress; see: that federal prices for outpatient
activities fall into three categories:

Medical Devices: Reprocessing and prescription drugs be extended to a

those that focus on finding a job, those Reuse of Devices Labeled Single-
Use, large group of purchasers, such as that take place in a classroom, and

by Janet Heinrich, Associate Director Medicare beneficiaries, could lower
those take place at the work site. This of Health Financing and Public
Health the prices they pay but could raise report addresses work- site
activities. Issues, before the Senate Committee prices for others. Because
federal

Many policymakers expect that as on Health, Education, Labor, and

prices are generally based on prices federal participation rises and as
state

Pensions. GAO/ T- HEHS- 00- 143, June paid nonfederal purchasers, welfare
caseloads are increasingly 27 (nine pages). manufacturers would have to
raise comprised of the most difficult to prices to these purchasers in order
to employ-- or if the economy falters- states

HEHS- 00- 130, Sept. 18, 2000 (58 raise the federal prices. The extent to
will rely more heavily on worksite pages). Pension Benefit Guaranty which
prices would change would vary activities to meet federal work Corporation:
Contracting Management by drug and would depend on such requirements or
states' own welfare

Needs Improvement. factors as the number of Medicare reform goals. To help
Congress better beneficiaries affected, the price understand work- site
activities now in The Pension Benefit Guaranty sensitivity of nonfederal
purchasers, place and the role they may play as Corporation (PBGC) sought to
address and the price sensitivity of private TANF evolves, this report
reviews (1)

a backlog of hundreds of thousands of purchasers. the key characteristics of
work- site pending benefit determinations by activities that states and
localities are contracting for services. However, HEHS- 00- 119, Sept. 13,
2000 (69 using in their TANF programs, (2) the

PBGC has not linked its contracting pages). Benefit and Loan Programs: key
challenges to implementing and decisions to longer- term strategic Improved
Data Sharing Could Enhance administering work- site activities and

planning considerations. Also, PBGC's Program Integrity. some of the ways
that states and procurement planning and execution

localities have addressed these processes do not stimulate

This report focuses on how challenges, and (3) the effects that competition
for contract awards and improvements in data sharing among work- site
activities have had on they do not have sufficient rationale federal
agencies could enhance

participants' ability to make the for contracts awarded. PBGC also program
integrity in benefit and loan transition to unsubsidized employment does not
adequately monitor the programs. Because many benefit and

and on their communities. performance of contractors in the field loan
programs require the same and has a weak quality assurance information, it
is more efficient for HEHS- 00- 123, June 20, 2000 (32

review process. The broader them to share that data with one pages). Single-
Use Medical Devices: management issues and day- to- day another rather than
requiring each Little Available Evidence of Harm operational problems that
GAO

program to gather and verify similar From Reuse, but Oversight Warranted.
identified in PBGC's contracting

data. However, several legal issues practices could affect its ability to
concerning data privacy and security Some single- use medical devices
efficiently and cost- effectively serve may limit agencies' ability to share
(SUD) can be safely reprocessed if the financial needs of millions of data.
Federal action to improve data appropriate cleaning, testing, and pension
plan participants. GAO

sharing and program coordination, sterilization procedures are carefully
summarized this report in testimony particularly across states, while
followed. However, SUD reprocessing before Congress; see: Pension Benefit
protecting the confidentiality of is not invariably safe, and relatively
Guaranty Corporation: Contract sensitive data could help to overcome little
is known about the practice of Management Needs Improvement by weaknesses in
the program eligibility SUD reprocessing in health care Barbara D. Bovbjerg,
Associate determination process. institutions. The Food and Drug Director
for Education, Workforce and

Administration has therefore taken Income Security Issues, before the

HEHS- 00- 122, July 28, 2000 (46 steps to increase its oversight of SUD
Senate Special Committee on Small

pages). Welfare Reform: Work- SiteBased reprocessing. Nonetheless, the new
Business and the Senate Committee on Activities Can Play an Important
framework does not treat all types of Small Business. GAO/ T- HEHS- 00- 199,
Role in TANF Programs. reprocessors consistently and will be Sept. 21 (15
pages).

HEHS- 00- 131, Aug. 22, 2000 (36 scheduling because some professional the
study focused were significantly pages). Pension Plans: Characteristics

staff do not trust contractors to longer than the corresponding average of
Persons in the Labor Force Without accurately schedule appointments and
approval times, ranging from 17 to 65 Pension Coverage. to ensure that any
medical months longer than the average time instructions-- like fasting-- be
provided for comparable pipeline drugs. In About 53 percent of the employed
before the visit. When comparing like general, delays in FDA approval labor
force lacked a pension plan in clinics within different MTFs, the resulted
from concerns about safety 1998, a decrease of 5 percentage points
percentage of appointments scheduled and efficacy, chemical properties, and
from a decade earlier. The economic by contractors varies substantially.
manufacturing procedures. Specific expansion since 1991 may have When there
are DOD and MTF

concerns varied by drug. Concerning encouraged companies to offer
restrictions, beneficiaries requesting the basis for the patent- extension
limit, pensions as part of their compensation appointments from the
contractor may

the legislative history of the 1984 Act packages and may have increased be
transferred to the MTF clinic or told does not clarify why a two- year limit
interest in pension coverage by to call the MTF directly. Although DOD

for patent extension was chosen for persons in the labor force. About 39 is
reducing and standardizing the pipeline drugs or why a five- year limit
percent of the employed labor force number of appointment types and was
chosen for other drugs. lacked a pension plan because their names used
throughout the military firms did not sponsor a plan, while 14 care health
system, DOD has not yet HEHS- 00- 141, Aug. 31, 2000 (47 percent were
ineligible or chose not to decided on or implemented a more pages). Private
Pensions: "Top- Heavy" participate in their firm's plan. About

uniform process for making Rules for Owner- Dominated Plans. 85 percent of
those who do not have a appointments. pension plan had relatively low The
federal government has for many income, were employed part- time or HEHS-
00- 140, Aug. 10, 2000 (53

years granted tax incentives as a way part of the year, worked for a
relatively pages). Prescription Drugs: Many of encouraging the formation of
small firm, or were relatively young. Factors Affected FDA's Approval of
private pension plans. These pension About 48 percent of retirees lacked
Selected "Pipeline" Drugs.

laws and regulations intended to pension income or annuities in 1998. ensure
that workers benefit equitably These retirees were more likely to be The
Drug Price Competition and from their pension plans. The key single, female,
less educated, and

Patent Term Restoration Act of 1984 differences between top- heavy rules

nonwhite. About 21 percent of retired seeks to expand the availability of
and the general rules for persons without pension income had

more effective and affordable drugs by nondiscrimination and vesting in
incomes below the federal poverty providing the generic drug industry
contributions and benefits. The most threshold, compared with three

with a simplified and faster review recent data available for GAO analysis
percent with pension income. process and brand- name drug on the
characteristics of new plans companies with an extension of the

that report being top- heavy, and what HEHS- 00- 137, July 14, 2000 (12
existing 17- year patent protection. At

is known about the overall effects of pages). Military Health Care: Factors
the time of the law's enactment, drugs top- heavy rules on numbers of plans
Affecting Contractors' Ability to for which a patent had been issued and and
participants and on employer Schedule Appointments. human trials begun were
considered costs. New plans reporting top- heavy

"pipeline" drugs and were limited to status tend to be small, defined GAO
analyzed data for appointment

two- year patent extensions. contribution plans in the service sector
scheduling in the four TRICARE Legislation (H. R. 1598 and S. 1172) has

of the economy. Little is known about regions in November 1999 and found
been introduced to allow the overall effects of top- heavy rules that only
about one- quarter of the manufacturers of pipeline drugs to on plan
formation. GAO found no TRICARE contractors have apply for a patent
extension beyond research that has quantified the overall appointment-
making responsibility. In that two- year limit. This report effects of top-
heavy rules on the general, these contractors scheduled a

compares FDA review and approval number of pension plans and higher
percentage of appointments for times of pipeline drugs with other

participants. clinics that provide primary care drugs and examines whether
the twoyear services than for those that provide patent extension granted to
HEHS- 00- 144, Aug. 31, 2000 (24 specialty care. In the four regions,

pipeline drugs under current law is pages). Worker Protection: OSHA

DOD and its military treatment based on the average length of time for
Inspections at Establishments facilities (MTFs) have restricted the FDA
approval of new drug Experiencing Labor Unrest. types and numbers of
appointments applications. GAO found that approval available to the
contractors for times for the pipeline drugs on which

During fiscal years 1994 through 1998, were self- insured. All school
districts

HEHS- 00- 155, Sept. 28, 2000 (56 establishments experiencing labor reviewed
had adopted strategies to pages). VA Research: Protections for unrest were
about 6.5 times more provide access to low- cost athletic Human Subjects
Need to Be likely to be inspected by the insurance. In eight school
districts, Strengthened. Occupational Safety and Health free supplemental
athletic accident Administration (OSHA). The statutory insurance was
automatic; in nine The Department of Veterans Affairs requirement that OSHA
investigate school districts, parents had the option (VA) has adopted a
system of valid complaints and OSHA's policy to of buying low- cost athletic
accident protections for human research investigate a fatality or
catastrophe

insurance. One district covered all subjects but has had substantial may be
related to the higher rate of medical costs of an athletic- related problems
with its implementation. For inspection for establishments injury. Private
hospitals and clinics

example, medical centers did not experiencing labor unrest. About 68
sometimes help local school districts comply with all regulations to protect
percent of approximately 1,900 OSHA by offering free medical services for
the rights and welfare of research inspections done each year resulted
sports- related injuries. participants. Specifically, VA from complaints,
fatalities, or headquarters has not provided medical catastrophes. About 76
percent of the HEHS- 00- 149, Sept. 11, 2000 (41

center research staff with adequate establishments with labor unrest pages).
Oral Health: Factors

guidance on protections for human inspected by OSHA for fiscal year 1994
Contributing to Low Use of Dental

subjects. Insufficient monitoring and through 1998 were unionized. OSHA
Services by Low- Income Populations. oversight of local human subject may
delay programmed inspections protections have permitted during periods of
labor unrest, which

Despite steps taken by the federal noncompliance with regulations to go
would prevent OSHA inspectors from government to make dental care more

undetected and uncorrected. VA has witnessing actual work operations, but
available to poor people-- primarily not ensured that funds needed to for
OSHA rarely delays such inspections through Medicaid and the State

human subject protections are because inspections resulting from Children's
Health Insurance Program allocated for that purpose at the valid complaints,
fatalities, or (SCHIP)-- the use of dental services medical centers. To VA's
credit, catastrophes must be performed,

remains low for many. This report substantial corrective actions have
regardless of whether labor unrest discusses factors that explain low been
implemented at three medical exists. dental service use by Medicaid and

centers in response to sanctions by SCHIP beneficiaries and the role of
regulatory agencies taken against their HEHS- 00- 148, Sept. 12, 2000 (27
other federal safety- net programs in

human research programs, but VA's pages). Interscholastic Athletics:
improving access to dental care.

systemwide efforts at improved School Districts Provide Some

Although several factors contribute to protections have been slow to
develop. Assistance to Uninsured Student low use of dental services among
lowincome Despite some difficulties, these three

Athletes. beneficiaries, the major one is medical centers have made progress

finding dentists to treat them. Some and each has resumed human research
Because participation in sports carries low- income people live in areas
where

activities. Also, VA has established an the risk of injury, some students
who dental providers are in short supply. In Office of Research Compliance
and lack health insurance may be unable to areas where dental care for the
rest of Assurance to monitor human subject participate in school- based
athletic the population is readily available,

protections. GAO summarized this programs. GAO found that 28 percent
dentists cite low payment rates, report in testimony before Congress; of
high school students in Texas and administrative requirements, and see: VA
Research: System for six percent in Massachusetts are patient issues such as
frequently Protecting Human Subjects Needs uninsured. GAO could find no
national,

missed appointments as the reasons Improvement, by Victor S. Rezendes,
state, or local data on uninsured why they do not treat more Medicaid
Assistant Comptroller General for students who have been prevented patients.
This report discusses four Health, Education, and Human

from participating in sports. Although other major federal programs that
Services Issues, before the 10 states and the District of Columbia target
services or providers to Subcommittee on Oversight and require student
health insurance underserved or special populations Investigation, House
Committee on before joining an athletic program, 39 with poor dental
health-- the Health Veterans' Affairs. GAO/ T- HEHS- 00- 203, other states
leave the decision to the Center program, National Health Sept 28, (11
pages). local district. Sixteen of the 18 school Service Corps, Indian
Health Service districts GAO reviewed provided free

(IHS) dental program, and IHS loan HEHS- 00- 156, Sept. 8, 2000 (45
catastrophic athletic accident repayment program.

pages). Public Education: Commercial insurance to all students. Two
districts Activities in Schools.

Commercial activities in U. S. public schools GAO visited reported engaging
attract a disproportionate selection of elementary and secondary schools
students in market research.

healthier and less- expensive have been increasingly visible during
beneficiaries relative to traditional feefor- the past decade, a period
characterized HEHS- 00- 157, Sept. 7, 2000 (60

service (FFS) Medicare-- a by tight school budgets. As visibility pages). H-
1B Foreign Workers: Better phenomenon known as favorable has increased, so
have concerns about Controls Needed to Help Employers selection. The program
spent about commercial activities that generate and Protect Workers.

$3. 2 billion, or 13. 2 percent, more on cash, equipment, and other types of
health plan enrollees than if enrollees assistance and their potential
effects

The H- 1B visa program allows had received services through

on students. Commercial activities employers to hire skilled foreign
traditional FFS Medicare. Although the include the sale of products; direct
workers for as long as six years to fill

Health Care Financing Administration advertising on school property;
hundreds of thousands of jobs in the (HCFA) introduced a new indirect
advertising, such as corporate computer programming, engineering,
methodology to adjust payments for sponsorship of educational materials
education, and medical fields. In fiscal beneficiary health status, it may
or teacher training; and market year 1999, these workers had a median
ultimately remove less than half of the

research. Despite growing concerns, age of 28 and were offered a median
excess payments caused by favorable little is known about the laws and

salary of $45,000; almost half were selection. Spending forecast errors
policies that govern commercial born in India. GAO found that the built into
plan payment rates and activities in U. S. schools. GAO found Department of
Labor's limited legal

provisions in the Balanced Budget Act that state laws and regulations
authority to enforce program caused an additional $2 billion, or eight
governing commercial activities in requirements-- and weaknesses in the
percent, in excess payments to plans. public schools are not comprehensive
Immigration and Naturalization Although all of the 210 plans in the and
that, in most states, local school Service's (INS) administration-- leave
study received excess payments, the officials are responsible for making the
H- 1B program vulnerable to abuse. percentage of estimated excess decisions
about commercial activities

For example, Labor can certify that an payments varied substantially among
in the public schools. Only five states employer's application form for H-
1B plans. The largest estimated excess have comprehensive laws. The workers
is error free, but it has no payment totaled $334 million, or 40 visibility,
profitablity, and type of authority to verify the information on percent
more than Medicare would commercial activities allowed in the form. Labor
cannot take have paid in an FFS plan. Nine plans

public schools vary widely, with high enforcement action even if it believes
received payments below their schools having more commercial that employers
are violating the law. enrollees' expected FFS costs. When activities than
middle or elementary INS is responsible for ensuring that H1B

excess payments due to forecast error schools. Product sales-- primarily
soft that positions are specialty

are included, only two of the 210 plans drink sales under exclusive
contracts

occupations and that workers granted were paid less--$ 1. 7 million and

and short- term fundraising sales (giftwrap, entry are qualified for those
jobs. INS $175,000-- than its enrollees' expected candy, etc.)-- were the
most staff are judged on the number of H- 1B FFS costs. common and lucrative
types of requests processed; they do not commercial activity, although they
analyze a petitioner's merit. Labor and

HEHS- 00- 162, Sept. 6, 2000 (26 were a very small part of districts' the
National Science Foundation are pages). State Pharmacy Programs: budgets.
The most visible examples of trying to improve the information Assistance
Designed to Target direct advertising appeared on the soft technology skills
of the U. S.

Coverage and Stretch Budgets. drink machines and high school

workforce through retraining billboards and names of businesses programs for
new and existing All state pharmacy programs provide that had contributed to
sports employees and through more benefits for low- income elderly programs.
Advertisements were also

computer training and mentoring for residents, but specific eligibility
rules

delivered through school media. students in elementary and secondary differ
and the amount of cost sharing

Officials from participating schools schools.

varies widely across programs. States said that the benefits of having free

attempt to provide access to drugs and technology outweighed any negative

HEHS- 00- 161, Aug. 23, 2000 (38 manage program costs through

aspects of the news shows and pages). Medicare+ Choice: Payments

coverage restrictions such as dollar commercials that were shown. Indirect
Exceed Cost of Fee- for- Service caps on benefits, deductibles, advertising,
such as corporatesponsored Benefits, Adding Billions to Spending.

copayments, and limits on the types of curricula, were generally drugs
covered. All state programs used for teaching a specific unit for a
Medicare+ Choice has not yielded obtain rebates from drug specific length of
time. None of the savings for Medicare because its plans manufacturers; most
state programs

receive manufacturers' rebates that responsible for purchasing, Since the
mid- 1990s, the states have are calculated on terms similar to constructing,
renovating, and leasing

accelerated the enrollment of children rebates under the Medicaid program.
school buildings.

with special needs in capitated To administer the program, states have
Medicaid managed care programs, developed adequate systems to HEHS- 00- 168,
Aug. 31, 2000 (26

which provide medical care to administer benefits and coordinate pages).
Education for Disadvantaged beneficiaries for a fixed, per- person payment
with and recovering payment Children: Research Purpose and fee. States view
capitated care, with its from other insurers. They have also Design Features
Affect Conclusions

emphasis on primary care, restricted tried to remove the stigma associated
Drawn From Key Studies. access to specialists, and control of with
assistance programs. However, services, as a way to contain cost
administering programs using The ongoing Longitudinal Evaluation

growth and provide the general Medicaid systems allows states to of School
Change and Performance

Medicaid population with consistent avoid duplicating program functions,
(LESCP) is due to be completed in preventive and primary care. However, such
as eligibility determination and

2001. Although some expected LESCP these same features may be less

claims processing and adjudication. to serve as a vehicle for evaluating
appropriate for children with special Title I's effectiveness-- as the 1997

needs, who often require highly HEHS- 00- 163, Sept. 12, 2000 (28 prospects
study had been-- others specialized and costly medical pages). Charter
Schools: Limited expected it to evaluate specific services. The Balanced
Budget Act of Access to Facility Financing. educational reform policies or
changes

1997 requires states to obtain federal in instructional practice. This lack
of approval before enrolling these Policy makers are concerned that
agreement created unclear children in capitated Medicaid funding limitations
may hinder the expectations for the study. LESCP and

managed care programs; state growth of future charter schools. This the
prospects study used similar Medicaid agencies can mandate report
determines: (1) the degree to processes for contracting out data enrollment
for most other which charter schools have access to collection and analysis,
obtaining beneficiaries without seeking such

traditional public school facility comments from review panels, and
approval. This report: (1) presents data financing (2) whether alternative
releasing the results. Both obtained on the extent to which states are
sources of facility financing are advice from two panels of experts. The

enrolling children with special needs, available to charter schools and (3)
three- to four- year longitudinal data as defined by the act, in capitated
potential options available to the

collection and the complexity of the managed care plans, and (2) assesses

federal government if it were to implementation posed challenges for the
scope and effectiveness of assume a larger role in character providing study
results in time to meet safeguards that states have introduced school
facility financing. GAO found

Congress' five- year reauthorization to ensure that children with special
that charter schools generally lack schedule; thus the Department of needs
receive appropriate care within access to the most common source of

Education issued interim reports to Medicaid managed care. facility
financing for public schools- Congress. The prospect study's large,
municipal bonds. Several sources of representative sample supported fairly
HEHS- 00- 170, Sept. 25, 2000 (22 facility financing exist for charter
strong conclusions about the effect of pages). Higher Education: Trustee

schools, including education funds Title I but did not allow researchers to
Arrangements Serve Useful Purpose in from the state, loans, and private

definitively measure how students Student Loan Market. donations. If the
federal government would have performed had they no decides to assume a
broader role in access to Title I services. Depth of In fiscal year 1999,
lenders financing facilities for charter schools, information in the LESCP
study is

participating in the Federal Family various mechanisms are available. liable
to be a key strength, but because Education Loan Program (FFELP) They
include grants, direct loans, loan its sample is small, its conclusions on

loaned $20 billion to college students. guarantees, loan pools, tax- exempt
Title I evaluation, standards- based Because some lenders do not qualify
bonds, and tax credits, each of which

reform, or instructional practices are as eligible lenders under the Higher
could have different fiscal and likely to be affected.

Education Act of 1965, they can only planning implications for the federal
be an eligible lender under a trustee government. Moreover, greater federal
HEHS- 00- 169, Sept. 29, 2000 (63

arrangement. The act was amended in assistance would change the nature of
pages). Medicaid Managed Care: 1998, and eligible lenders can now the
federal government's relationship States' Safeguards for Children With serve
as a trustee, but they must meet with traditional and charter schools as

Special Needs Vary Significantly. statutory requirements. GAO studied well
as with the local and state the number and cost of trustee governments that
are primarily arrangements, the benefits and

protections afforded the federal To provide health care to beneficiaries

on the inventory of the major special government through use of trustee in
Europe and the Pacific in fiscal year payment provisions available to rural
arrangements, and the effect of trustee 1999, the Department of Defense
hospitals under (PPS) and the arrangements on market participation (DOD)
spent about $463 million on inpatient financial performance of and the
availability of student loans. hospital and clinic operations,

these hospitals under PPS. Two- thirds The Department of Education reports
maintenance, and inter- facility of rural hospitals obtain some sort of that
about 125 trustee arrangements transport and about $609 million to special
status to modify their Medicare exist between 16 eligible lender compensate
military personnel who

PPS payments. The rural hospitals trustees and 31 ineligible lenders, work
at military treatment facilities

with special designations generally amounting to $25. 3 billion in (MTFs).
MTFs in Europe have have fared better than other rural outstanding loans.
Trustee established formal host provider hospitals. Although as a group,
they arrangements come with some networks that serve TRICARE have still
experienced consistently protections to ensure the federal

beneficiaries. TRICARE Pacific relies poorer financial performance under

government's investment in FFELP is on State Department resources and a

Medicare's PPS than have urban secure while allowing ineligible contractor
to arrange health care for hospitals. There is considerable lenders to
participate. Both eligible many remote beneficiaries. DOD variation in
performance behind this and ineligible lenders believe that generally relies
on local certification average, and many rural hospitals market
participation and availability and licensing practices to determine operate
at a loss in providing Medicare are positively affected by trustee network
physician and facility inpatient services. arrangements. GAO recommends that
qualifications. To ensure quality of Education clarify its interpretation of
care, DOD and the State Department HEHS- 00- 175, Sept. 11, 2000 (34 the
act's trustee provision.

rely on local standards and patient pages). Children and Pesticides: New
feedback. Beneficiaries have better Approach to Considering Risk Is Partly
HEHS- 00- 171, Sept. 20, 2000 (18 access to medical care with the in Place.
pages). Title I Preschool Education: implementation of TRICARE overseas More
Children Served, but Gauging and the increased use of host nations The Food
Quality Protection Act of Effect on School Readiness Difficult. to augment
MTF care. Most scheduled 1996 requires the Environmental appointments meet
the TRICARE Protection Agency (EPA) to reevaluate During the 1999- 2000
school year, an access standards governing waiting existing tolerances for
pesticide estimated 17 percent of the school times. MTF specialty care
residues in foods within 10 years. EPA

districts that received Title I funds appointments are not always available;
must apply an additional 10- fold safety spent $407 million on preschool
referrals are then made to local factor in setting tolerances to ensure
services. These school districts used providers. DOD's overseas medical that
food is safe for children and that this money to serve an estimated system
faces many challenges as DOD children will not be harmed from

313, 000 preschool children; almost all seeks to maintain access to care for
aggregate exposure to pesticides in the children were between the ages of
beneficiaries, replace the aeromedical food and drinking water or from 3 and
5 and received other federal, evacuation system, and identify family
residential sources. The agency must

state, and local funding. The remaining members of active duty personnel
with consider available information on the 83 percent that did not use their
funds

significant health problems. cumulative effects on children of cited a
greater need to use Title I funds pesticides that act in a similar harmful
for older children. Currently, the

HEHS- 00- 174R, Sept. 15, 2000 (28 way. EPA found that the use of Department
of Education lacks the pages). Medicare Hospital Payment:

chlorpyrifos Dursban (part of a group information needed to measure the PPS
Includes Several Policies Intended of pesticides know as effectiveness of
Title I, and GAO to Help Rural Hospitals.

organophosphates) on foods recommends that the agency explore

frequently eaten by children needs to the feasibility of isolating and
Medicare's prospective payment be reduced and that the household use
measuring Title I's effectiveness on system (PPS) comprises several

of this pesticide needs to be school readiness. policies intended to help
rural

eliminated. EPA has not completed hospitals. There are major special
aggregate exposure reviews for all 39 HEHS- 00- 172, Aug. 31, 2000 (34
payment provisions enacted to adjust organophosphates, but a cumulative
pages). Defense Health Care: Medicare payments to rural hospitals.

assessment will be required for the Resources, Patient Access, and Despite
these provisions, rural group. EPA has made progress in Challenges in Europe
and the Pacific. hospitals, on average, have not fared reassessing existing
tolerances for as well as their urban counterparts

pesticide residues, but relatively few of under PPS. GAO provided
information the allowable limits have changed as a

result of the act's new requirements. complex analyses to reconstruct

HEHS- 00- 182, Sept. 18, 2000 (51 EPA is giving priority to high- risk
benefit payments. Specifically, one or pages). Medicare: More Beneficiaries
chemicals. more of the following key points were Use Hospice but for Fewer
Days of missing: (1) the reason why SSA sent Care.

HEHS- 00- 176, Sept. 8, 2000 (40 the letter; (2) the basis for its decision;
pages). Medicare Home Health Care: (3) the financial effect of the decision
Nearly 360,000 Medicare beneficiaries Prospective Payment System Could on
the recipient; or (4) the recourse

enrolled in a hospice program in 1998, Reverse Recent Declines in Spending.
available to the person. For many of more than twice the number that the
problems, SSA has not taken any

chose hospice care in 1992. Although The 48- percent reduction in Medicare
corrective action and has repeatedly cancer patients account for more than
home health care spending in the wake rescheduled plans to make half of
Medicare hospice patients,

of passage of the Balanced Budget Act comprehensive changes. In September
growth in use has been particularly of 1997 was due to sharp declines in
1999, a federal court ordered SSA to strong among individuals with other
both the numbers of users and services develop and implement a plan to
diagnoses, such as heart disease, lung used. Declines were the greatest for

improve its Supplemental Security disease, stroke, and Alzheimer's the
agencies and patients who used the

Income letters, prompting SSA to disease. Many are doing so closer to most
services. States that had the begin a major, multiyear initiative to the
time of death; the average period of highest levels of service use in 1996
improve its letters. GAO summarized hospice care fell from 74 days in 1992
saw larger declines than did other this report in testimony before to 59
days in 1998. Greater federal states, and declines in rural areas were
Congress; see: Social Security

scrutiny of compliance with program larger than in cities. Changes in home

Administration: SSA's Letters to the eligibility requirements may have

health utilization occurred in part Public Remain Difficult to Understand,
contributed to a decline in

because of Medicare payment policies by Barbara D. Bovbjerg, Associate
beneficiaries' average number of days

mandated by the act. The new Director for Education, Workforce, of hospice
care. Between 1992 and prospective payment system (PPS) and Income Security
Issues, before the

1999, the number of hospices rates-- based on the historically high
Subcommittee on Social Security, participating in Medicare rose 82 1998
utilization-- will likely be generous House Committee on Ways and Means.
percent, with large providers and those compared with current use patterns.
GAO/ T- HEHS- 00- 205, Sept. 26 (13

in the for- profit sector accounting for a Some agencies may respond by
pages). greater proportion of the services increasing services to
beneficiaries,

delivered. At the same time, hospice while others may maintain their HEHS-
00- 180, Sept. 11, 2000 (68

industry officials report cost pressures reduced service levels, resulting
in

pages). West Nile Virus Outbreak: from declining patient enrollment and
overpayments relative to services Lessons for Public Health increased use of
more expensive forms delivered. This could cause total

Preparedness. of palliative care, such as radiation and Medicare home health
spending to chemotherapy, for pain relief. rise. GAO recommends that HCFA In
the fall of 1999, the mosquito- borne adopt a risk- sharing arrangement with
West Nile virus killed seven people in HEHS- 00- 183, Sept. 7, 2000 (67

PPS, which would limit aggregate the New York City area and made pages).
Medicare+ Choice: Plan home health agency Medicare gains or dozens more very
sick. This report Withdrawals Indicate Difficulty of losses. chronicles the
outbreak and examines

Providing Choice While Achieving the public health community's

Savings. HEHS- 00- 179, Sept. 26, 2000 (36 response to it. Although the West
Nile pages). Social Security outbreak is considered to have been a

Of 309 plans serving Medicare Administration: Longstanding natural
occurrence, it provides lessons beneficiaries at the end of 1999, 99
Problems in SSA's Letters to the Public about detecting and responding to an
plans terminated their contracts or Need to Be Fixed. act of biological
terrorism. Key lessons

reduced the number of counties they focus on the importance of local served
for the 2000 contract year, and The Social Security Administration disease
surveillance and response 118 have announced they will (SSA) sends millions
of letters each systems; improved communication terminate their contracts or
reduce year to notify applicants and recipients among public health
agencies; links service areas for the 2001 contract about eligibility for or
changes in between public and animal health year. These withdrawals affected
benefits. These letters have excluded agencies; ensuring adequate laboratory

about 328, 000 enrollees in 2000 and essential details needed to understand
capabilities; and recognition of public will affect nearly 1 million
enrollees in its decisions, presented information in

health preparedness as a key element 2001. A disproportionate number of an
illogical order, and required of bioterrorism preparedness. enrollees live
outside major urban

areas. Some of these enrollees will plans but there is greater awareness
within the current regulatory have no other Medicare managed care found in
the financial services, health framework for pensions.

option available and will either have to care, and manufacturing industries.
switch to a nonmanaged care option or Cash balance plans provide a larger
HEHS- 00- 197, Sept. 28, 2000 (83 return to traditional fee- for- service
share of a participant's accumulated pages). Nursing Homes: Sustained
Medicare. Many plans have attracted benefit earlier in a career, compared
Efforts Are Essential to Realize beneficiaries who have lower- thanaverage

with a traditional defined benefit plan Potential of the Quality
Initiatives. expected health care costs, that is based on final average pay.
As a while Medicare+ Choice payments are result, conversions can increase
the Recent federal quality initiatives have based on the expected cost of
value of some workers' benefits,

generated a host of nursing home beneficiaries with health care needs.
especially younger or short- tenured oversight efforts that need continued
Many plans also reported that workers who leave firms before federal and
state attention to reach Medicare's payment rates substantially

retirement. Unlike traditional defined their full potential. Efforts to
improve increased their own estimated costs of benefit plans, cash balance
plans can federal oversight of states' quality providing Medicare- covered
benefits.

result in a declining rate of normal assurance activities are unfinished or
The magnitude of rate increases

retirement benefit accrual over time. need refinement. States have begun to
needed to make participating in use the new methods introduced by Medicare a
sufficiently attractive

HEHS- 00- 187, Sept. 14, 2000 (40 the initiatives to spot serious

business option for some plans may pages). Social Security Reform:
deficiencies when conducting surveys, not be reasonable in light of
Implications for Private Pensions. but additional steps needed may not be
countervailing pressures to make the introduced until 2002 or 2003. Efforts
Medicare program financially Social Security and private pensions

to reduce the predictable timing of sustainable for the long term. are key
sources of retirement income surveys, so as to minimize the homes' that are
linked through the employer covering up problems, have been HEHS- 00- 185,
Sept. 29, 2000 (64 costs associated with the modest. Results showed a
marginal pages). Private Pensions: Implications

compensation provided to workers. increase nationwide in the proportion of
Conversions to Cash Balance Plans. Many plans incorporate Social of homes
with documented actual Security benefits into their plan design, harm and
immediate jeopardy There has been recent controversy and plan provisions may
be linked to deficiencies. States that GAO reviewed concerning how
conversions of Social Security's normal retirement age were not yet
investigating all traditional defined benefit pension

or eligibility criteria for disability complaints that alleged actual harm
to plans to cash balance plans can affect benefits. The effect of any
specific a resident within 10 days, as now workers, especially those nearing
Social Security reform will depend on required by the Health Care Financing
retirement. Employer- provided the nature of the change (e. g., increase

Administration (HCFA). HCFA has also pensions are an important source of in
payroll taxes, a cut in benefits, and a strengthened its enforcement tools
to income for many retired persons. To time frame for implementation).
sanction nursing homes that are cited encourage employers to establish and

Factors such as the firm's size, the type for actual harm and immediate

maintain pension plans for their of pension offered, and the economic
jeopardy violations. Additional funds employees; the federal government
status of the worker will shape were provided in fiscal years 1999 and
provides special tax treatment under

employers' and workers' responses to 2000 to hire new staff to reduce the
the Internal Revenue Code (IRC) for reform. In reaction to increasing the
large number pending appeals by plans that meet certain requirements. normal
retirement age for Social nursing homes and to collect assessed GAO
addressed several aspects which Security, employers could face added

fines faster. GAO summarized this includes: (1) the prevalence and major
pension costs for subsidizing early

report in testimony before Congress; features of cash balance plans, and
retirement and may redesign their see: Nursing Homes: Success of reasons why
firms adopt them; (2) how plans. Workers may respond to

Quality Initiatives requires Sustained the use of cash balance plans affect
the reforms that increase contributions or Federal and State Commitment, by
pension benefits for workers of reduce benefits by increasing William J.
Scanlon, Director of Health different ages and tenure, particularly
participation in 401( k) plans or saving Financing and Public Health Issues,
after conversion; and (3) what through other vehicles. As for the

before the Senate Special Committee information employers converting to
design and implementation of on Aging. GAO/ T- HEHS- 00- 209, Sept. cash
balance plans typically provide to individual accounts, they will affect 28
(15 pages). plan participants and how disclosure employer costs and could
present might be improved. Firms in many substantial challenges in
coordinating sectors of the economy sponsor these pension plans with
individual accounts

HEHS- 00- 207, Sept. 29, 2000 (45 weapons is compromised by poor

reported. Using the same definitions of pages). Cash Balance Plans:
management controls and the lack of overpayment, GAO estimated that
Implications for Retirement Income. items on a list of required inventory.
these agencies could owe $68 million, For example, GAO's review of one-
third of HCFA's initial $209 million Recently, firms expressed concern

stockpiles maintained by the estimate. HCFA's inability to accurately about
information on cash balance Department of Veterans Affairs found record and
track overpayments has plans for retirement income. discrepancies of more
than 12 percent been a consistent weakness, Recognizing that pensions are an
with this list. Although most of these documented in its financial statement
important source of income for many discrepancies were overages, GAO

audits from fiscal year 1996 through retirees, Congress provides special tax

also found shortages. The underlying fiscal year 1999. The fiscal year 1998
treatment under the Internal Revenue cause of these problems is that federal
audit, for example, found that HCFA Code for pension plans that meet
agencies have lagged in implementing lacked an integrated financial certain
qualification requirements.

basic internal controls to help ensure management system to track GAO
describes the: (1) prevalence and that all medical supplies and

overpayments and their collection and features of cash balance plans; (2)
pharmaceuticals are current,

that its procedures to help ensure that factors employers considered in
accounted for, and ready for use. The overpayments were valid and making a
decision about whether or stakes will be even higher in the future supported
were inadequate. HCFA's

not to use a cash balance formula; (3) as the Centers for Disease Control
and contractors record and track effects of using cash balance formulas
Prevention (CDC) establishes the overpayment activity for HHAs and on the
adequacy of individual workers' National Pharmaceutical Stockpile other
providers using fragmented and retirement income; and (4) effects of
Program, which will set aside large overlapping computer systems but do
current disclosure practices on plan quantities of antidotes and other

not always reconcile the data from participants' ability to address issues
medical supplies to be used in the these various systems. For example,
regarding the adequacy of their

event of domestic chemical and contractor staff incorrectly keyed data
retirement fund. Most firms GAO biological attacks. Although CDC is from one
of the contractor's systems surveyed had at least considered still in the
early stages of developing into a HCFA system, erroneously adopting such a
plan because cash

this program, its current plan lacks reporting $77 million in overpayments
balance plans have had high visibility comprehensive internal controls that
for one Texas HHA in 1998. HCFA in recent years. These firms reported would
prevent the types of problems implemented several interim measures that
their decisions to adopt or not to that GAO found at other agencies.

in 1999 to improve the reliability of its adopt a cash balance plan were
based

overpayment information and is on many factors, including corporate HEHS/
AIMD- 00- 132, Apr. 28, 2000 planning additional improvements, but
philosophy, the need to remain (27 pages). Medicare Home Health they could
take years to implement. competitive, and the potential impact Agencies:
Overpayments Are Hard to on workers. Cash balance plans offer

Identify and Even Harder to Collect.

HEHS/ AIMD- 00- 139, May 31, 2000 both opportunities and challenges to (42
pages). NIH Research: workers seeking to ensure adequate

The Health Care Financing Improvements Needed in Monitoring retirement
income and generally are

Administration (HCFA) has been slow Extramural Grants. structured such that
workers accrue to identify amounts that closed home benefits earlier in
their careers than health agencies (HHA) owe Medicare, The National
Institutes of Health (NIH) they would under most traditional

and it collects little of the has developed policies and procedures defined
benefit plans. GAO concluded overpayments due from them after

for assessing scientific progress and that there was a wide variation in the

they close. HCFA plans to implement ensuring the effective financial
quantity and quality of information the home health prospective payment
management of its extramural grant that firms provided to participants in
system mandated by the Balanced programs, but its system of internal cash
balance plans. Budget Act of 1997, which will involve controls could be
strengthened. The

predetermined payments for home flexibility that NIH's institutes and

HEHS/ AIMD- 00- 36, Oct. 29, 1999 (37 health services. This system should
grantees have in implementing its pages). Combating Terrorism: reduce the
potential for overpayments policies and procedures for Chemical and
Biological Medical to HHAs because payment amounts

administering grants tends toward a Supplies Are Poorly Managed.

would not be adjusted retrospectively lack of important information on

to reflect allowable agency costs. scientific progress and inventions

The ability of the United States to GAO's estimate of the overpayments
developed in a grant's last year as well

effectively respond to terrorist attacks due from the 15 closed HHAs differs

as on unobligated funds that could be involving chemical or biological
significantly from an estimate HCFA recovered for rebudgeting within the

federal government. GAO identified identification activities. Recovery
activities are poor. Oversight by the areas where controls over financial
auditors use identification techniques Health Care Financing Administration
management in the oversight and the similar to those already in use. GAO has
failed to ensure an appropriate monitoring of grantees could be suggests
that Congress consider balance between the states' demands strengthened. For
example, NIH does increasing HCFA's funding to bolster for flexible,
administratively simple not always receive and use the single its
postpayment review program.

systems and the need to account for audit reports the Office of Contractors
transfer overpayments

whether federal funds being used as Management and Budget requires, a they
cannot collect to HCFA, which

intended. The result is confusing and key tool for financial management has
had limited collection success. inconsistent guidance across the oversight.
Other areas in internal HCFA officials said that they do not regions and
failure to prevent controls that could be strengthened have the resources
needed to pursue

improper practices and claims in some include the discrepancies GAO found
collection on the large volume of states. Without adequate controls and
between grant award amounts eligible debt. GAO recommends that consistent
oversight, Medicaid is reported in key NIH systems, which HCFA immediately
refer overpayments

vulnerable to paying for unneeded and increase the risk of inaccuracies and

as they become more than 180 days undelivered services and activities.
improper authorization of grant funds.

delinquent to a designated debt Weak agency oversight has created an In its
fiscal year 1999 audit report on collection center or to the Treasury

environment ripe for opportunism and internal controls, the independent
Department for collection. HCFA has fraud. public accountant responsible for
the already recognized that specialized financial audit of NIH identified a

contractors improve overpayment

Testi mony material weakness in the analysis and identification; it now has
12 firms to the development of financial assist in its program safeguard
efforts.

T- HEHS- 00- 14, Oct. 1, 1999 (19 statements that included a weakness HCFA
is resolving complex challenges pages). Medicare: Better Information related
to the financial management of about how to compensate the firms,

Can Help Ensure That Refinements to grants. Regarding NIH's use of fiscal
handle coordination and privacy BBA Reforms Lead to Appropriate year 1999
appropriations, NIH issues, and oversee the firms' Payments, by William J.
Scanlon, allocated about the same percentage activities.

Director, Health Financing and Public of funds to extramural research as it
Health Issues, before the Health did in fiscal year 1998. Appropriations

HEHS/ OSI- 00- 69, Apr. 5, 2000 (57 Subcommittee, House Committee on
allocated for extramural research pages). Medicaid in Schools: Improper

Ways and Means. grants accounted for about $1. 4 billion Payments Demand
Improvements in of the nearly $2 billion increase in HCFA Oversight. Payment
reforms under the Balanced NIH's appropriations, or about 70 Budget Act of
1997 that sought to curb percent. Schools are an important service

unnecessary Medicare spending are delivery and outreach point for

beginning to have their intended effect,

HEHS/ AIMD- 00- 304, Sept. 7, 2000 Medicaid because one- third of those but
pressure is building to return to (43 pages). Medicare: HCFA Could Do
eligible for Medicaid are school- aged

more generous payment policies. More to Identify and Collect children. Even
when schools do not Adjustments based on thorough Overpayments. directly
provide Medicaid- covered quantitative assessments may be health services,
they can help identify,

necessary. For home health care, the In fiscal year 1999, contractors

refer, screen, and assist in enrolling prospective payment system, a more
collected $8. 7 billion, or about 70 Medicaid- eligible children. Outreach
appropriate tool for the long term than percent of the $12. 6 billion in
Medicare and identification activities help the earlier interim payment
system, overpayments. HCFA and its ensure that the most vulnerable will
likely require adjustment after it is contractors used identification
children receive routine preventive

implemented and more information on techniques, such as medical reviews,

health care, primary care, and home health costs, utilization, and to ensure
service appropriateness, treatment. Most states are seeking users becomes
available. The Health interim payments review and audits of Medicaid funds
to help them provide Care Financing Administration is

cost reports for providers that are paid medically related services to
disabled trying to solve problems with access to on the basis of their
costs, and reviews children and direct children to skilled nursing care
facilities under the to determine if another entity has appropriate health
services. However, new system. A need- based payment

primary payment responsibility. controls over the various approaches system,
rather than the per- beneficiary

However, HCFA lacks information to to submitting claims for Medicaid cap on
payments for outpatient

measure the effectiveness of reimbursement for school- based physical,
speech, and language contractors' overpayment health services and
administrative therapy, might help target beneficiaries

better. Medicare+ Choice payments Associate Director, Health Financing The
Health Care Financing may need to be modified by and Public Health Issues,
before the Administration (HCFA) oversees how establishing an appropriate
base rate Senate Committee on Finance. well each state agency ensures
quality and a risk adjustment method that care in nursing homes, but the
pays more for serving beneficiaries Only 15 states systematically alert
mechanisms HCFA uses are of limited with serious health problems and less

protection and advocacy agencies scope and effectiveness. Because the

for serving those who are relatively about mentally ill or retarded people
mechanisms are not applied

healthy. who have died as a result of improper consistently in HCFA's 10
regional restraint or seclusion in residential offices, HCFA lacks
sufficient,

T- HEHS- 00- 22, Oct. 21, 1999 (22 treatment settings. Most agencies
consistent, and reliable data with pages). Social Security Disability: SSA
receive reports only from state

which to evaluate the effectiveness of Has Had Mixed Success in Efforts to
facilities, so that even these reporting state agencies' performance or the
Improve Caseload Management, by systems are not comprehensive.

success of its recent initiatives to Cynthia M. Fagnoni, Director,

Reports of deaths cannot always be improve nursing home care. HCFA
Education, Workforce, and Income thoroughly investigated because the cannot
be certain whether some states Security Issues, before the Social agencies
have had difficulty gaining are failing to identify serious Security
Subcommittee, House access to medical records. From deficiencies that harm
nursing home Committee on Ways and Means, and

partial information from 51 such residents. HCFA also lacks an Human
Resources Subcommittee, agencies, GAO identified 24 deaths adequate array of
effective sanctions House Committee on Ways and Means.

associated with restraint or seclusion to encourage state agencies to
correct

in fiscal year 1998. Fragmentary serious or widespread problems. GAO

The nation's two major federal reporting suggests the actual number
recommends that HCFA improve (1) disability programs, Disability may be
higher. No federal regulations

the scope and the rigor of its oversight Insurance and Supplemental Security
govern the use of restraint or seclusion process through the state surveys
and Income, have long been plagued by in psychiatric hospitals, residential
(2) the consistency in how it holds serious problems. Applying for treatment
centers for children, or state survey agencies accountable by benefits is
complex and confusing, community group homes. Most state standardizing
procedures for selecting

applications and appeals are regulations do not apply to privately

state surveys and conducting federal backlogged, final eligibility decisions
run facilities. Some states have found

monitoring surveys. This testimony take as long as a year, and the frequent
that reducing the use of restraint and summarizes the November 1999 GAO
reversal of benefit denials on appeal seclusion improves safety for patients
report, GAO/ HEHS- 00- 6. raises questions about the fairness of and staff
alike. The Health Care decisionmaking. The Social Security Financing
Administration (HCFA) T- HEHS- 00- 30, Nov. 9, 1999 (20

Administration's March 1999 disability should extend to people in any
pages). Medicaid: Federal and State plan stresses better quality and

treatment setting funded by Medicare Leadership Needed to Control Fraud
consistency in decisions and revised and Medicaid the same policies on

And Abuse, by Leslie Aronovitz, operations at hearings offices. These
restraint and seclusion that now Associate Director, Health Financing
initiatives will require concerted protect individuals in long- term care
and Public Health Issues, before the management oversight and diligence.

settings and hospitals. HCFA should Oversight and Investigations Meanwhile,
the agency has exceeded also improve reporting and require Subcommittee,
House Committee on its goals for the past three years for staff training in
applying restraint and Commerce.

catching up on its overdue disability seclusion and in alternative ways to
reviews. However, the state agencies deal with potentially violent
situations. Medicaid fraud schemes cross state conducting these reviews must

This report summarizes the September lines and enforcement jurisdictions,
balance this large workload with other

1999 report, GAO/ HEHS- 99- 176. engaging the different or competing

work, such as determining eligibility priorities of federal, state, and
local for incoming claims. Unanticipated

T- HEHS- 00- 27, Nov. 4, 1999 (10 agencies in efforts to investigate,
increases in any of the workloads

pages). Nursing Homes: HCFA Should prosecute, and enforce program

could strain the agencies' ability to Strengthen Its Oversight of State
compliance. Essential components of keep up the pace. Agencies to Better
Ensure Quality an effective strategy with program Care, by William J.
Scanlon, Director,

integrity include coordinating the

T- HEHS- 00- 26, Oct. 26, 1999 (12 Health Financing and Public Health
efforts of the multiple players, pages). Mental Health: Extent of Risk
Issues, before the Senate Special

investing in preventive strategies, and From Improper Restraint or Seclusion
Committee on Aging. dedicating adequate resources to fraud Is Unknown, by
Leslie Aronovitz, control units. The Health Care

Financing Administration, the federal and Public Health Issues, before the
pharmacists as advisers to physicians agency that runs Medicaid, established
Senate Committee on Health,

and as monitors of drug therapy, and a fraud and abuse national initiative
in Education, Labor and Pensions. improving health care providers' 1997 to
bring together groups at the

pharmaceutical education. This state level to provide training, share About
2. 7 billion prescriptions were testimony summarizes the January
information, and address common filled in the United States in 1998. 2000
report, GAO/ HEHS- 00- 21. concerns. Despite HCFA's efforts to Although
prescription drugs have great facilitate the states' activities,

clinical benefits, serious adverse drug T- HEHS- 00- 60, Feb. 17, 2000 (11
questions remain about its role as a events can lead to hospitalization,
pages). Drug Abuse: Efforts Under steward of Medicaid funds. disability, and
even death. Adverse Way to Determine Treatment drug events are caused by
harmful Outcomes, by Janet Heinrich,

T- HEHS- 00- 51, Jan. 25, 2000 (10 drug reactions or by medication errors
Associate Director, Health Financing

pages). Elementary and Secondary committed by health care and Public Health
Issues, before the Education: Flexibility Initiatives Do professionals and
patients. Two factors Criminal Justice, Drug Policy and Not Address
Districts' Key Concerns that can increase the risk of a patients' Human
Resources Subcommittee, About Federal Requirements, by suffering from an
adverse drug event House Committee on Government Cynthia M. Fagnoni,
Director,

are illness severity and intensity of Reform. Education, Workforce, and
Income treatment, including taking several Security Issues, before the House

drugs simultaneously. Although it is The federal governments spends

Committee on Education and the clear that a wide range of commonly hundreds
of millions of dollars on drug Workforce. used drugs cause adverse drug
events

abuse treatment through the substance with potentially serious consequences
abuse prevention and treatment block Deteriorating school buildings, poor

for patients, relatively little is known grant program. Although the results
on international comparisons

about their frequency. Data routinely Substance Abuse and Mental Health of
student achievement, and the collected on adverse drug events

Services Administration (SAMHSA) accelerating pace of technological

during clinical trials or after drugs are monitors state expenditures to
growth have focused attention on marketed are intended to identify the
determine whether block grant funds America's students and schools. In the
adverse drug events that are

are used in accordance with statutory past, the response to such issues has
associated with particular drugs and

requirements, this type of monitoring often been to increase federal and do
not focus on their frequency. is not designed to determine what state
involvement-- often through new Information on the overall incidence of
impact state drug abuse treatment programs or additional requirements
adverse drug events from all drugs has programs are having on the lives of
in existing programs. Some educators

been limited to a few research studies clients. Some states are assessing
the

and analysts have expressed that typically examined the experience

effectiveness of their treatment increasing dissatisfaction with this of
patients in one of two specific programs by using outcome indicators.
approach, however, arguing instead

institutions-- generally hospitals or SAMHSA officials believe that that
existing federal requirements sometimes nursing homes-- leaving the
collecting uniform data on client should be lifted or eased. Others are
overall incidence of adverse drug outcomes at the state level is essential
hesitant to adopt this strategy because events in outpatient care largely

to determine the effectiveness of drug of concerns that important
objectives, unexplored. Greater understanding of abuse treatment programs
supported such as financial accountability, may

certain factors that affect the with federal money and to report the

be sacrificed. This report focuses on likelihood of adverse drug events has

information to Congress. SAMHSA is (1) the major federal requirements that
led researchers and patient safety trying to determine the availability of
affect school districts, (2) the issues advocates to suggest a range of
client outcome data from all states, that school districts face in

measures to decrease their number and it has awarded grants to some
implementing these requirements, and and severity. These proposals range

states to help them improve their data (3) recent initiatives by Congress
and

from better communication between collection systems. These efforts the
Department of Education to doctors and patients about the risks

should help identify states' views on provide flexibility to school
districts. and benefits of medications to and some of the complexities
accelerating research on the safety of associated with collecting and T-
HEHS- 00- 53, Feb. 1, 2000 (18 marketed drugs. Suggestions for reporting
outcome data. SAMHSA's

pages). Adverse Drug Events: reducing medication errors include

efforts should help determine what Substantial Problem but Magnitude
developing computerized prescribing additional actions are needed to get
Uncertain, by Janet Heinrich, and dispensing systems to detect uniform
reporting on the results of Associate Director, Health Financing possible
errors, increasing the role of drug abuse treatment programs

supported by the block grant program. Use Colorectal Cancer Screening and

totaled $171 billion in fiscal year 1999, This testimony summarizes the
Diagnostic Services, by William J. or the newly designed payment February
2000 report, GAO/ HEHS- 0050. Scanlon, Director, Health Financing systems.
HCFA similarly lacks data to and Public Health Issues, before the monitor
the appropriateness of Senate Special Committee on Aging. payments made to
Medicare+ Choice T- HEHS- 00- 61, Feb. 9, 2000 (12 health plans and the
services the pages). Adverse Events: Surveillance Only nine percent of fee-
for- service enrollees receive. HCFA's systems for Systems for Adverse
Events and

Medicare beneficiaries age 50 or older collecting and analyzing data on
Medical Errors, by Janet Heinrich, receive recommended annual fecal
beneficiaries' use of services are Associate Director, Health Financing

occult blood testing for colorectal seriously outmoded. and Public Health
Issues, before the

cancer. About two percent receive Health and Environment sigmoidoscopy
testing. Women use T- HEHS- 00- 81, Mar. 23, 2000 (17 Subcommittee, House
Committee on

colorectal cancer screening and pages). Health Care Access: Programs
Commerce; Health Subcommittee,

diagnostic services slightly more than for Underserved Populations Could Be
House Committee on Veterans' Affairs; men, whites somewhat more than
Improved, by Janet Heinrich, and Oversight and Investigations African
Americans, Asians, and

Associate Director, Health Financing Subcommittee, House Committee on

Hispanics. Enrollees in managed care and Public Health Issues, before the
Commerce. plans are at least as likely to use these

Public Health and Safety services as fee- for- service Medicare
Subcommittee, Senate Committee on Adverse events are injuries to patients
beneficiaries. Key among the reasons Health, Education, Labor and

caused by medical treatment. Medical for the low use of screening and
Pensions.

errors are mistakes in medical care diagnostic services are poor patient
that may or may not harm a patient. awareness of recommendations and The
Community and Migrant Health Identifying adverse events and coverage for
screening, physicians' Center program and the National evaluating their
causes are important reluctance to perform the procedures Health Service
Corps, administered by parts to any strategy to reduce harm to because of
their time and complexity, the federal Health Resources and patients.
Several recent GAO reports

and the lack of monitoring systems to Services Administration (HRSA), are
have considered surveillance systems encourage their use. GAO concludes
designed, respectively, to increase the for medical products, particularly
that there is room for better outreach availability of primary and
preventive drugs and medical devices. (See

and education. GAO finds that efforts health care services for low- income
GAO/ HEHS- 00- 21, Jan. 2000, and are under way to enhance public people
living in medically underserved GAO/ HEHS- 97- 21, Jan. 1997.) GAO awareness
of the risks of colorectal areas and to offer scholarships and testified
that although adverse events

cancer and the benefits of screening. educational loan repayments for are
recognized as a serious problem, health care professionals, some of the full
magnitude of their threat to the T- HEHS- 00- 74, Mar. 9, 2000 (13 whom, in
turn, agree to work in these American public is unknown. At the pages).
Medicare: HCFA Faces centers. GAO found that HRSA could same time, gathering
valid and useful

Challenges to Control Improper increase the centers' effectiveness by
information on adverse events is Payments, by Leslie Aronovitz,

establishing a systematic best extremely difficult. For example, Associate
Director, Health Financing

practices program for their learning systems that rely on health care and
Public Health Issues, before the and by improving the completeness providers
to take the initiative to make Labor, Health and Human Services, and
accuracy of the data its uses to a report suffer from serious and Education
Subcommittee, Senate monitor them. Also, the Health Care limitations.
Moreover, many of the Committee on Appropriations.

Financing Administration could help injuries that patients suffer as a
result ensure the centers' ability to continue of medical treatment do not
stem from

Both the traditional Medicare program serving Medicaid beneficiaries and
errors but reflect the inherent risks of and Medicare+ Choice contain major
uninsured persons by monitoring state treatments that are administered
information gaps that impede the

Medicaid programs' compliance with correctly. It can be difficult to
identify ability of the Health Care Financing

federal requirements for reimbursing these adverse reactions and
Administration (HCFA) to minimize the centers. Shifting resources would
distinguish them from medical errors program losses attributable to help
provide more National Health or from the course of a patient's

improper payments to claims Service Corps loan repayments, and a underlying
illness.

administration contractors. HCFA better system is needed for identifying
does not have a clear picture of how

and measuring where health care T- HEHS- 00- 68, Mar. 6, 2000 (13 the
contractors perform with respect professional placements are needed. pages).
Medicare: Few Beneficiaries to fee- for- service payments, which

T- HEHS- 00- 82, Mar. 23, 2000 (12 by the Department of Health and

private health plans. Applying them to pages). Social Security Disability
Human Services (HHS), and Even the Medicare population would require
Insurance: Raising the Substantial

Start, run by the Department of adaptations that might diminish their
Gainful Activity Level for the Blind, by Education, focus on developing
effectiveness. Medicare drug coverage Barbara Bovbjerg, Associate Director,

cognitive and other skills needed to should be designed and implemented
Education, Workforce, and Income prepare children for school. In in a way
that minimizes Medicare's Security Issues, before the Social addition, in
some communities title I financial implications and maximizes Security
Subcommittee, House funds, which support elementary and

the positive effects of beneficiaries' Committee on Ways and Means.
secondary education programs for

coverage. economically and educationally Recent proposals regarding Social
disadvantaged children, are also used T- HEHS- 00- 88, Apr. 5, 2000 (10

Security Disability Insurance range for preschool programs. Given the
pages). VA Health Care: VA Is from increasing the substantial gainful

considerable federal investment, it is Struggling to Address Asset

activity level established for the important to know how effectively the
Realignment Challenges, by Stephen P. program's blind beneficiaries to
different programs prepare children Backhus, Director, Veterans' Affairs
eliminating it completely. These for school. Although Head Start and and
Military Health Care Issues, before proposals, if enacted, would likely

Even Start studies have shown that the the Health Subcommittee, House
increase beneficiaries' work effort but skills of participating children
have Committee on Veterans' Affairs. would raise program costs and could

improved, the studies have not widen the differences in the program's
provided definitive results on the

In March 1999, GAO reported that the treatment of blind and nonblind

extent to which these improvements Veterans Health Administration (VHA)
beneficiaries. Raising the level for can be attributed to the programs.

could enhance veterans' health care blind persons could result in calls to
However, HHS and Education are benefits if it reduced spending on increase
it for nonblind persons,

making progress in assessing the underused, inefficient, or obsolete leading
to significantly higher program effectiveness of their preschool buildings
and used the savings to costs and adverse effects on the programs. In
contrast, the provide health care more efficiently in solvency of the Social
Security trust effectiveness of block grant funds is

modern facilities both at existing fund. Eliminating the level would not
being evaluated for school locations or at new locations closer to
fundamentally alter the purpose of the readiness because it is not a primary
where veterans live. VHA agreed and program. Other changes to work goal of
these programs.

committed to realigning its portfolio of incentives being implemented or
health care assets. It agreed to tested are likely to increase

T- HEHS- 00- 84, Mar. 22, 2000 (10 implement a strategic planning
beneficiaries' work without changing pages). Prescription Drug Benefits:

process that would systematically the nature of the program. Applying
Private Sector Management study all its medical care markets in Methods to
Medicare, by William J. order to develop capital asset T- HEHS- 00- 83, Apr.
11, 2000 (10 Scanlon, Director Health Financing realignment plans. VA's
Capital pages). Preschool Education: Federal and Public Health Issues,
Health,

Investment Board would use these Investment for Low- Income Children
Education, and Human Services

plans to determine the best investment Significant but Effectiveness
Unclear, Division, before the Senate Committee

opportunities. Last year, GAO reported by Marnie S. Shaul, Associate
Director,

on Finance. that VHA had made little progress and Education, Workforce, and
Income estimated the opportunity cost of Security Issues, before the
Children

In earlier congressional testimony, delay to be as high as $1 million a day.
and Families Subcommittee, Senate GAO has emphasized the need to make VHA's
efforts had focused primarily on Committee on Health, Education,
prescription drugs more affordable to discussions among VHA officials, Labor
and Pensions.

Medicare beneficiaries who lack Department of Veterans Affairs (VA) coverage
by expanding access to officials, and stakeholders such as Each year, the
federal government group rates, extending discounts veterans' service
organizations provides about $4. 6 billion for associated with group
purchasing, and regarding a conceptual framework for preschool education and
about $4. 4 targeting government subsidies for its asset realignment
process. VHA billion for federal block grants, such as those most in need.
Doing this will

reported then that its realignment the Child Care Development Fund, require
incorporating cost- control process would be operational by some of which is
used for preschool methods. To control prescription drug September 1999. GAO
is concerned education. State governments provide costs, the private sector
has developed

that VHA's slow progress needlessly about $2 billion annually to support and
refined techniques implemented in delays critical decisions and the
preschool programs. Head Start, run

some Medicare+ Choice plans and opportunity to reinvest resources to

enhance veterans' future health care. delay to be as high as $1 million a
day. party billers with the providers they The weaknesses in VHA's
realignment

VHA's efforts had focused primarily on represent so contractors can identify
process, once implemented, will not discussions among VHA officials,
potentially questionable billing necessarily produce, within a Department of
Veterans Affairs (VA) patterns and subject these claims to reasonable time
period, capital asset officials, and stakeholders such as

more scrutiny. Although HCFA has plans that are in the best interest of

veterans' service organizations various efforts under way to better veterans
and taxpayers. If a capital regarding a conceptual framework for identify
providers' questionable claims asset realignment process is patterned its
asset realignment process. VHA and their associated third- party billers,

after the Capital Investment Board's reported then that its realignment

there continue to be gaps in its decisionmaking model, it would be process
would be operational by

safeguards. HCFA needs to complete less likely to replicate VHA's Chicago
September 1999. GAO is concerned

its provider recertification program as experience. Because VHA is
struggling that VHA's slow progress needlessly soon as possible so that it
will have to reach a sound realignment decision delays critical decisions
and the comprehensive information on all

in Chicago and complete the design of opportunity to reinvest resources to
Medicare providers and their billers. a systemwide realignment process and
enhance veterans' future health care.

GAO is also concerned about inherent because VA's Capital Investment Board
The weaknesses in VHA's realignment problems with data reliability. has a
model that could address many process, once implemented, will not of VHA's
weaknesses, VA should necessarily produce, within a T- HEHS- 00- 101, Apr.
11, 2000 (14 consider transferring the asset

reasonable time period, capital asset pages). Social Security: Providing
planning responsibility to the Board.

plans that are in the best interest of Useful Information to the Public, by
The daily cost of delayed decisions is veterans and taxpayers. If a capital
Barbara Bovbjerg, Associate Director, unacceptably high. asset realignment
process is patterned

Education, Workforce, and Income after the Capital Investment Board's
Security Issues, before the Social T- HEHS- 00- 91, Apr. 6, 2000 (10
decisionmaking model, it would be Security Subcommittee, House

pages). VA Health Care: VA Is less likely to replicate VHA's Chicago
Committee on Ways and Means. Struggling to Respond to Asset experience.
Because VHA is struggling Realignment Challenges, by Stephen P. to reach a
sound realignment decision The Social Security Administration's

Backhus, Director, Veterans' Affairs in Chicago and complete the design of
(SSA) individualized social security and Military Health Care Issues, before
a systemwide realignment process and

statement, which provides the public the VA, HUD, and Independent because
VA's Capital Investment Board with basic information on their social
Agencies Subcommittee, Senate has a model that could address many security
benefits, can be an important Committee on Appropriations. of VHA's
weaknesses, VA should

tool in personal financial planning. consider transferring the asset GAO
recommended that SSA improve In March 1999, GAO reported that the planning
responsibility to the Board.

the layout and design of the statement Veterans Health Administration (VHA)
The daily cost of delayed decisions is it issued in 1996 and simplify its
could enhance veterans' health care unacceptably high. explanations. GAO
also recommended benefits if it reduced spending on that SSA explore
alternative formats

underused, inefficient, or obsolete T- HEHS- 00- 93, Apr. 6, 2000 (5 pages).
for the statement. On the basis of buildings and used the savings to
Medicare: Concerns About HCFA's

information it gathered from provide health care more efficiently in Efforts
to Prevent Fraud by ThirdParty prototypes, focus groups, and a public modern
facilities both at existing Billers, by Leslie Aronovitz,

opinion survey, SSA developed a new locations or at new locations closer to
Associate Director, Health Financing four- page statement for its fiscal
year where veterans live. VHA agreed and and Public Health Issues, before
the 2000 mailing that is much improved. committed to realigning its
portfolio of Oversight and Investigations The newly revised statement does a
health care assets. It agreed to Subcommittee, House Committee on better job
of providing basic implement a strategic planning Commerce.

information to individual workers. process that would systematically Adding
the explanations necessary to study all its medical care markets in To help
ensure the integrity of fairly portray rates of return, however,

order to develop capital asset Medicare, the Health Care Financing would
significantly increase the length realignment plans. VA's Capital

Administration (HCFA) and its of the statement and undermine efforts
Investment Board would use these contractors need to develop reliable

to simplify it, increasing the risk that plans to determine the best
investment and sophisticated approaches to recipients would neither read nor
fully opportunities. Last year, GAO reported identify potentially fraudulent
billing understand it. that VHA had made little progress and

practices. It is especially important estimated the opportunity cost of that
they be able to match up third

T- HEHS- 00- 105, May 3, 2000 (10 The Department of Health and Human

Medicare effectively can be solved. pages). Fair Labor Standards Act:
Services (HHS) issued proposed Currently, no one senior official in White-
Collar Exemptions Need regulations in November 1999 to help HCFA is
responsible for managing only Adjustments for Today's Work Place, ensure the
confidentiality of patient Medicare; instead, HCFA's by Cynthia M. Fagnoni,
Director, data, as required by the Health Administrator oversees Medicaid
and Education, Workforce, and Income Insurance Portability and other state-
centered programs' worthy Security Issues, before the Workforce

Accountability Act of 1996 (HIPAA). competitors for agency management
Protections Subcommittee, House

GAO found that HHS' regulatory attention. Frequent changes in agency
Committee on Education and the strategies appear to be consistent with
leadership make it difficult to develop Workforce. HIPAA's goal of
protecting the privacy and implement a consistent long- term

of health information and are legally vision. And constraints on HCFA's The
Fair Labor Standards Act sets permissible. By requiring that entities
ability to acquire appropriate minimum wage and hour standards for directly
regulated by the rule-- health

resources and expertise limit its ability most American workers, exempting
plans, health care providers, and to modernize Medicare's operations "white-
collar" executive,

health care clearinghouses-- control the and carry out the program's growing
administrative, and professional information practices of entities with
responsibilities. Elements of recent workers. Shifts in the American which
they do business, HHS has

Medicare reform proposals, together economy since the law's enactment
attempted to fill an otherwise with alternatives from other federal affect
these exemptions in today's significant gap in privacy protection. agencies,
suggest ways of addressing work place, and the regulations HHS has covered
the "paper progeny" the focus, leadership, and capacity underpinning the
exemptions have of electronically maintained or issues. Options could
include creating changed. Employer and employee transmitted health
information-- the an entity that would administer representatives believe
that privacy protections extended to Medicare without any non- Medicare
adjustments are needed to update the

individuals by HIPAA would be easy to responsibilities; establishing a
tenure regulatory structure. Their concerns circumvent if protected health
for the program's administrator that, at about the operation of the
exemptions information in an electronic record minimum, would overlap
presidential involve all aspects of the regulations- the

lost its protection merely by being terms; and granting the entity salary-
basis test, the salary- test printed. HHS' decision to build

administering Medicare greater levels, and the duties requirements.
flexibility into the proposed rule by operational flexibility. The
Department of Labor has not allowing the implementation of the updated these
tests in decades, and standards to vary on the basis of an T- HEHS- 00- 109,
May 5, 2000 (16 although it made some attempts to organization's size is
also within its

pages). Foster Care: Status of the revise the regulations in the 1980s, it
is

authority. Comments from many of the District of Columbia's Child Welfare
reluctant to revise them because of the

entities that will have to implement the System Reform Efforts, by Cynthia
M. difficulty of getting consensus.

policies reflect two overriding themes. Fagnoni, Director, Education,
However, given the economic changes First is a widespread acknowledgment
Workforce, and Income Security in the 62 years since the act's passage,

of the importance of protecting the Issues, before the District of Columbia
it is important to readjust these tests.

privacy of medical records. Second is a Subcommittee, House Committee on To
avoid a piecemeal approach to fundamental difference in the groups'
Government Reform. reform, GAO recommends that the positions that reflects
the conflicts Department comprehensively review that sometimes arise between
privacy

In 1995, the U. S. District Court for the the regulations and make needed
and competing goals.

District of Columbia removed the child adjustments to meet the needs of the

welfare agency from the auspices of modern work place.

T- HEHS- 00- 108, May 4, 2000 (16 the District's Department of Human

pages). Medicare: 21st Century Services and local government control,

T- HEHS- 00- 106, Apr. 26, 2000 (20 Challenges Prompt Fresh Thinking putting
a child welfare receivership in pages). Privacy Standards: Issues in About
Program's Administrative place. The receiver has begun to HHS' Proposed Rule
on Confidentiality Structure, by William J. Scanlon, develop and implement a
new child of Personal Health Information, by Director, Health Financing and
Public welfare information system that began Janet Heinrich, Associate
Director, Health Issues, before the Senate operating in October 1999 and
Health Financing and Public Health Committee on Finance. established a
training project in

Issues, before the Senate Committee January 1999 to enhance caseworker on
Health, Education, Labor and

Key problems that undermine the skills. The receiver acknowledges that
Pensions. ability of the Health Care Financing changes so far address about
half of Administration (HCFA) to manage the requirements of the court's
order;

however, addressing those social security. Both private that could diminish
their effectiveness.

requirements alone cannot resolve the businesses and government agencies
Private sector tools for controlling many systemic challenges that often ask
people for their social drug expenditures provide options but permeate the
child welfare system. security numbers, in some cases applying them
effectively to Medicare Many of the problems facing the because they are
required to, in others presents a number of challenges: (1) District's
system are similar to those because they are a convenient way to the size of
the Medicare program and faced by other jurisdictions around the track and
exchange information. the need for transparency in its actions country, and
long- standing systemic

Perceived widespread sharing of may reduce the effectiveness of some
weaknesses, such as poor working

personal information and instances of cost control techniques; (2) using
relationships among the agencies and

identity theft have heightened public private- sector entities to implement
a the courts, hamper child welfare concern about the use of social Medicare
drug benefit introduces agencies' capacity to protect children. security
numbers. This testimony concerns related to beneficiary equity To achieve
tangible progress, private

describes (1) federal laws and and concentrating market power; (3) foster
care providers, the court regulations directing the numbers' use, private-
sector management tools system, and other local government (2) the
nonfederal purposes for which

require a capacity to process and agencies that have a role in keeping the
number is used, and (3) what scrutinize a large number of claims children
safe must have effective businesses and state government more quickly than
is typical of the working relationships. Some believe the impact would be if
federal traditional Medicare program; and (4) jurisdictions have fostered
laws were passed to limit the use of strategies involving coverage
collaboration by creating social security numbers. restrictions impose an
obligation to multidisciplinary advisory groups that provide beneficiaries
with adequate work to resolve turf battles and dispel T- HEHS- 00- 112, May
11, 2000 (10

information. mistrust or by pooling state and pages). Prescription Drugs:
Adapting federal funds to gain leverage in Private Sector Management Methods
T- HEHS- 00- 113, May 18, 2000 (11 obtaining needed resources. The

for a Medicare Benefit, by William J. pages). Mental Health Parity Act:
receivership is intended to be a

Scanlon, Director, Health Financing Employers' Mental Health Benefits
temporary vehicle for correcting and Public Health Issues, before the Remain
Limited Despite New Federal specific problems, and the court and

Health Subcommittee, House Standards, by Kathryn Allen, Associate the
District of Columbia will at some Committee on Ways and Means. Director,
Health Financing and Public point need to determine when it Health Issues,
before the Senate

should end and the child welfare Including outpatient prescription drug
Committee on Health, Education, agency should transfer back to local
coverage would have substantial Labor and Pensions. government. However,
District consequences for the cost of Medicare.

officials and child welfare experts One study has suggested that it would
GAO surveyed employers in the 26

familiar with the District agree that the add 7. 2 to 10 percent annually to
states and the District of Columbia collaboration that is key to protecting
Medicare's outlays. Prescription drugs that did not have state laws that
were children is not yet fully developed in would have to be made more more
comprehensive than the federal the District. affordable to beneficiaries who
lack Mental Health Parity Act as of July coverage by expanding access to
1999. Eighty- six percent of the

T- HEHS- 00- 111, May 9, 2000 (8 group rates, extending discounts responding
employers reported that as

pages). Social Security: Use of the associated with group purchasing, and of
December 1999 their plans complied Social Security Number is Widespread,

targeting government subsidies for with the federal parity requirement by
Barbara Bovbjerg, Associate

those most in need. To the extent that that annual and lifetime dollar
limits Director, Education, Workforce, and this would be accomplished
through

for mental health benefits be no more Income Security Issues, before the
expanding Medicare's benefit package,

restrictive than those for all medical Social Security Subcommittee, House
cost- control methods would need to be and surgical benefits. Fourteen
Committee on Ways and Means.

incorporated into the management of percent of plans were noncompliant; in
the benefit. The private sector has

1996, before the parity law was The social security number was developed and
refined techniques to enacted, only about 55 percent created in 1936 as a
way to track control prescription drug costs that reported offering parity
in dollar limits. workers' earnings and eligibility have been implemented in
some Although most employers' plans now benefits. Today, more than 277
million Medicare+ Choice plans and private have parity in dollar limits for
mental persons have a unique social security health plans. Applying these
health coverage, 87 percent of those

number, and these numbers are used techniques to the larger Medicare that
comply contain at least one other

for myriad purposes unrelated to population would require adaptations plan
feature that is more restrictive for

mental health benefits than for of military treatment facilities yield a
security numbers, in some cases

medical and surgical benefits. For more efficient and cost- effective way
because they are required to, in others

example, about 65 percent of the plans to provide needed care to because
they are a convenient way to restrict the number of covered beneficiaries?
Are there additional track and exchange information. outpatient office
visits and hospital joint contracting opportunities that Perceived
widespread sharing of days for mental health treatment more would provide
needed services to VA's

personal information and instances of than those for other health treatment.
and DOD's populations more costeffectively identity theft have heightened
public In addition, many employers may have than each agency providing
concern about the use of social adopted newly restrictive mental such care
itself? If sharing is to be security numbers. This testimony health benefit
design features since optimized, can significant and longstanding

describes (1) federal laws and 1996, specifically to offset the more
barriers be overcome, such as regulations directing the numbers' use,
generous dollar limits they adopted as the need for processes that
facilitate (2) the nonfederal purposes for which

a result of the federal law. About twothirds billing, reimbursement,
budgeting, and

the number is used, and (3) what of these newly compliant the timely
approval of sharing

businesses and state government employers changed at least one other
agreements? VA and DOD need to believe the impact would be if federal mental
health benefit design feature to work in concert to answer such laws were
passed to limit the use of a more restrictive one compared with questions.
However, reaching timely social security numbers. only about one- fourth of
the employers

agreement could prove difficult given that did not change their dollar
limits. the different business models VA and T- HEHS- 00- 121, May 25, 2000
(23 The law appears to have had a

DOD use to provide health care pages). DOD and VA Health Care: negligible
effect on claims costs. services to their beneficiaries.

Jointly Buying and Mailing Out Federal agencies have made varying Therefore,
GAO advises that if an Pharmaceuticals Could Save Millions progress in
performing their oversight agreement is not reached, Congress

of Dollars, by Stephen P. Backhus, roles under the parity law. The may need
to provide guidance to VA Director, Veterans' Affairs and Military
Department of Labor is in the process and DOD that clarifies the criteria,

Health Care Issues, before the of expanding its oversight role. The

conditions, and collaboration. GAO Oversight and Investigations Health Care
Financing Administration also identifies specific steps each Subcommittee,
House Committee on has not yet fully determined the nature agency needs to
take to stabilize the

Veterans' Affairs. and the extent of its oversight current sharing program
until its responsibilities. This testimony direction, goals, structure, and
criteria The Department of Veterans Affairs summarizes the May 2000 report,
can be reassessed. This testimony

(VA) and Department of Defense GAO/ HEHS- 00- 95. summarizes the May 2000
report, (DOD) are the largest direct federal GAO/ HEHS- 00- 52. drug
purchasers, although their

T- HEHS- 00- 117, May 17, 2000 (8 combined purchases are less than two
pages). VA and Defense Health Care:

T- HEHS- 00- 120, May 18, 2000 (8 percent of total domestic drug sales.
Rethinking of Resource Sharing pages). Social Security: Government They
enjoy varying, but significant, Strategies is Needed, by Stephen P. and
Other Uses of the Social Security discounts on their drug purchases, the
Backhus, Director, Veterans' Affairs

Number are Widespread, by Barbara largest when they contract jointly to and
Military Health Care Issues, before Bovbjerg, Associate Director, purchase
the same drugs for their the Health Subcommittee, House

Education, Workforce, and Income systems and through their separate
Committee on Veterans' Affairs. Security Issues, before the national
contracts with drug makers. Government Management, Information However,
their joint and separate

The criteria and conditions that make and Technology Subcommittee, House
contracting have been limited. Only resource sharing cost- effective for the
Committee on Government Reform. about 19 percent of VA and DOD

Department of Veterans Affairs (VA) combined drug purchases are made and the
Department of Defense (DOD) The social security number was through such
contracts; most are made need to be reviewed and the strategies created in
1936 as a way to track at far smaller discounts. If they could for sharing
rethought. Several workers' earnings and eligibility jointly contract for
most of the 30 drug questions require answers. Does benefits. Today, more
than 277 million classes that now make up about twothirds

treatment of TRICARE patients in VA persons have a unique social security of
their combined drug medical centers result in a lower number, and these
numbers are used purchases, they could save hundreds overall cost for the
government than for myriad purposes unrelated to of millions of dollars
annually. contracting with private providers? social security. Both private

Obstacles to overcome include DOD's Would requiring that the medical
businesses and government agencies need to develop a national drug centers
be considered the equivalent often ask people for their social formulary and
the departments' need

to mitigate their institutional applications processing and to International
Affairs Task Force, competitiveness and pursue such joint

improve protections for domestic and House Committee on Budget.

actions as drug contracting. For H- 2A agricultural workers. example, DOD is
considering Opportunities exist to reduce some of commercially contracting
for its T- HEHS- 00- 136, June 26, 2000 (7 the approximately $225 million
spent hospital pharmacies refills- by- mail pages). Medicare Quality of
Care:

annually to process TRICARE claims. workloads, even though VA has a

Oversight of Kidney Dialysis Facilities In response to the House version of
the

highly efficient system that could meet Needs Improvement, by William J.

fiscal year 2001 Defense authorization DOD's needs and achieve savings in
Scanlon, Director, Health Financing bill, and through several Department the
process. Interventions may be and Public Health Issues, before the of
Defense (DOD) initiatives that

needed to mitigate agency rivalries. Senate Special Committee on Aging.
mirror private sector practices, DOD has adopted and is planning several T-
HEHS- 00- 134, June 15, 2000 (20 The oversight of end- stage renal actions
to reduce claims processing pages). H- 2A Agricultural disease (ESRD)
facilities needs

costs, including increasing electronic Guestworkers: Status of Efforts to
improvement. Increasing the budget of claims submission and web- based
Improve Program Services, by Cynthia

the Health Care Financing services to reduce the costs of claims M. Fagnoni,
Director, Education, Administration (HCFA) for inspecting review and to deal
with the large Workforce, and Income Security ESRD facilities should help
improve number of inquiries providers and Issues, before the Immigration and

oversight, as would putting some teeth beneficiaries receive. Other

Claims Subcommittee, House into the enforcement process. One way
opportunities to reduce costs and

Committee on the Judiciary. to give facilities more incentives to improve
services exist in the area of stay in compliance with Medicare health care
fraud and abuse, where A sudden, widespread farm labor reimbursement
policies would be to DOD's efforts have been marginally shortage requiring
the entry of large have available the kinds of monetary effective.
Potentially hundreds of numbers of foreign workers is unlikely penalties
that can be used when millions of dollars could be used to now or in the
near future, although

nursing homes are found to have purchase care for military localized
shortages could emerge for severe or repeated serious

beneficiaries. Additional cooperation specific crops or geographic areas.
deficiencies. For example, HCFA can with the Department of Veterans Although
many farm workers are not fine nursing homes, and the fines are

Affairs to procure pharmaceuticals legally authorized to work in the not
forgiven when the facility corrects and medical supplies could yield United
States, the Immigration and

its problems. Another way to substantial savings. The different
Naturalization Service's (INS) strengthen oversight would be for

systems throughout the military health enforcement efforts are unlikely to
state agencies and ESRD's networks to system for making medical
significantly reduce the aggregate share information on complaints and
appointments leave beneficiaries number of unauthorized farm workers.

known quality- of- care problems at sometimes unsure of how to make While
comparatively few agricultural specific facilities. This would help such
appointments, leading to employers seek workers through the target
inspection resources where they frustration with TRICARE, but GAO is H- 2A
program, those that do are are most needed. HCFA's efforts to use

reviewing this process and anticipates generally successful in obtaining
available outcome data for targeting its

making recommendations for workers. In 1997, GAO determined survey efforts
might also eventually improvement. that poor information on H- 2A help in
this regard, but more testing program access and the involvement

and evaluation are needed to help T- HEHS- 00- 143, June 27, 2000 (9 of many
agencies in the program could ensure that the data used are sufficient
pages). Medical Devices: result in redundant oversight and

to predict noncompliance with Reprocessing and Reuse of Devices confuse
employers that are

Medicare's quality standards. This Labeled Single- Use, by Janet Heinrich,
considering participation and that the testimony summarizes the June 2000

Associate Director, Health Financing Department of Labor was not always
report, GAO/ HEHS- 00- 114. and Public Health Issues, before the processing
applications in a timely Senate Committee on Health, manner. While Labor and
INS have T- HEHS- 00- 138, June 22, 2000 (7 Education, Labor and Pensions.
made progress in taking the steps GAO pages). Defense Health Care:
recommended to improve the Opportunities to Reduce TRICARE Some single- use
medical devices program's operations, key changes

Claims Processing and Other Costs, by (SUD) can be safely reprocessed if
remain to be implemented, particularly Stephen P. Backhus, Director,
appropriate cleaning, testing, and those that would permit Labor to
Veterans' Affairs and Military Health sterilization procedures are carefully
assess the timeliness of its

Care Issues, before the Defense and followed. However, SUD reprocessing

is not invariably safe, and relatively program, including the physical cases
has been very gradual; however, little is known about the practice of
facilities and the computer systems; only San Francisco has benefited from
SUD reprocessing in health care and (3) developing an integrated the hold-
harmless provision as of 1999. institutions. The Food and Drug approach and
responding at the same GAO recommends changing the Ryan Administration has
therefore taken time to the requirements of individual White funding
formulas to enhance

steps to increase its oversight of SUD federal programs. Despite these

comparable funding across the states. reprocessing. Nonetheless, the new

challenges, the states are developing GAO believes that including living HIV
framework does not treat all types of integrated service delivery approaches

case data will improve the ability of reprocessors consistently and will be
that show promise, often focusing the Ryan White CARE Act to difficult to
implement. Because the their efforts on resolving the issues

effectively deliver funding to needy demonstrated health risks from SUD that
had been found in the fragmented persons. reprocessing are small, it may
also

employment training system. have only a limited effect on public T- HEHS-
00- 151, July 13, 2000 (26 health. This testimony summarizes the T- HEHS-
00- 150, July 11, 2000 (10

pages). SSA Disability: Other June 2000 report, GAO/ HEHS- 00- 123.

pages). Ryan White Care Act: Programs May Provide Lessons for Opportunities
to Enhance Funding Improving Return- to- Work Efforts, by T- HEHS- 00- 145,
June 29, 2000 (21 Equity, by Janet Heinrich, Associate

Barbara Bovbjerg, Associate Director, pages). Workforce Investment Act:
Director, Health Financing and Public Education, Workforce, and Income
Implementation Status and the Health Issues, before the Health and Security
Issues, before the Social Integration of TANF Services, by the Environment
Subcommittee, Security Subcommittee, House

Cynthia M. Fagnoni, Director, House Committee on Energy and

Committee on Ways and Means. Education, Workforce, and Income Commerce.
Security Issues, before the Human

More than $4 billion in cash benefits is Resources Subcommittee, House The
distribution of federal resources

paid to disabled people each month Committee on Ways and Means, and

needs to reflect the changing nature of under the Disability Insurance
Postsecondary Education, Training, the HIV/ AIDS epidemic. New

program (DI). The number of program and Life- Long Learning Subcommittee,
medicines and treatments have beneficiaries has risen by 67 percent House
Committee on Education and lengthened the life expectancy of during the last
15 years, benefit

the Workforce. infected persons. Before the 1996 payments have nearly
tripled, and the reauthorization of the Ryan White DI trust fund is
projected to be The states have been delayed in CARE Act, which replaced
cumulative insolvent in 2023. Yet technological

implementing steps under the AIDS case counts with estimates of and medical
advances, combined with Workforce Investment Act related to living AIDS
cases, the areas of the

changes in society and the nature of establishing formal agreements country
with the longest experience work, have increased the potential for between
partners at one- stop centers. with the disease benefited most from people
with disabilities to return to the To support the one- stop system the act
using cumulative case counts. HIV labor force. This testimony discusses
requires, the states used multiple counts have not been considered in the

how disability systems in the private federal funding streams to report
funding formulas. Today, only about 60 sector and other countries facilitate
during fiscal year 2000, with the top percent of the states include HIV
cases beneficiaries' return to work in three funding sources most often
coming that have not progressed to AIDS. To key areas: (1) the eligibility
assessment from the Department of Labor's ensure that the formulas provide
an process, (2) work incentives, and (3) programs, such as the act, the
equitable distribution of funds, all

staffing practices. Employment Service, and

states would need to report HIV cases. Unemployment Insurance. Although

All states are expected to be reporting

T- HEHS- 00- 152, July 12, 2000 (20 the Temporary Assistance for Needy

new HIV cases by 2003. Currently, pages). Children With Disabilities:
Families (TANF) block grant is an states with an eligible metropolitan
Medicaid Can Offer Important Benefits optional partner, links between it and
area (EMA) receive more funds than and Services, by William J. Scanlon, the
act are being forged in most states.

those who do not have an EMA. States Director, Health Financing and Public
As the states and localities have such as California and New York, for
Health Issues, before the Senate attempted to integrate their services,
example, received $5, 240 per case, or Committee on Budget. they report
having confronted several 60 percent more than states without an challenges:
(1) building partnerships

EMA. Finally, a hold- harmless Concerns have been raised that some with
other agencies, as required under

provision in the 1996 reauthorization children lose Medicaid coverage when
the act; (2) developing the that would help states transition from family
incomes rise or are otherwise infrastructure to support an integrated a
cumulative AIDS cases to living AIDS ineligible for Medicaid coverage, yet

have limited access to other sources of are also setting performance
standards Medicare provider enrollment process,

health insurance. Health insurance is and incorporating financial incentives
its Administrator has suggested that a particularly important to children
with in contracts with service providers. joint Medicare/ Medicaid provider
special health care needs. Without However, many states and local enrollment
process be developed that access to proper preventive health agencies do not
have appropriate data could better ensure provider integrity

care and treatment services, these systems to store and analyze client for
both programs while minimizing children are at higher risk for outcomes.
Although cost control was the administrative burden and cost. complicating
illnesses and seen as a potential benefit of managed

hospitalization. The proposed Family care, an equally if not more important

T- HEHS- 00- 160, July 19, 2000 (17 Opportunity Act of 2000 (S. 2274) goal
was better services for children

pages). Medicare: Refinements Should would allow parents with a severely and
families. Whether any outcome

Continue to Improve Appropriateness disabled child to buy health care
associated with these initiatives can be of Provider Payments, by William J.
coverage for the child through the

attributed to these new strategies is Scanlon, Director, Health Financing
Medicaid program. This testimony still largely unknown. Planned

and Public Health Issues, before the discusses (1) the role that Medicaid

evaluations under the federal waiver Health and Environment plays in
providing health care coverage demonstration program will, in the
Subcommittee, House Committee on for children with disabilities, (2) the
future, yield additional information Commerce. extent to which private
insurance about the effectiveness of child covers needed services for
children welfare managed care arrangements. The Comptroller General has with
disabilities, and (3) the benefits repeatedly cautioned that, even and
services available to children T- HEHS- 00- 159, July 18, 2000 (27

without expanding program benefits, under the Medicaid program.

pages). Medicaid: HCFA and States projected Medicare spending threatens

Could Work Together to Better Ensure to absorb ever- increasing shares of
the

T- HEHS- 00- 158, July 20, 2000 (19 the Integrity of Providers, by Leslie
nation's budgetary and economic pages). Child Welfare: New Financing
Aronovitz, Associate Director, Health resources. In the absence of and
Service Strategies Hold Promise, Financing and Public Health Issues,

meaningful reform, demographic and but Effects Unknown, by Cynthia M. before
the Oversight and cost trends will drive Medicare Fagnoni, Director,
Education, Investigations Subcommittee, House spending to levels that will
prove Workforce, and Income Security Committee on Commerce.

unsustainable. Under the Balanced Issues, before the Human Resources Budget
Act of 1997 (BBA) and the Subcommittee, House Committee on This testimony
focuses on (1) the Balanced Budget Refinement act of Ways and Means.
importance of steps to ensure provider 1999, providers have had to adjust
integrity, (2) Medicare actions to their operations because of tightened
Under a managed care approach, strengthen its provider enrollment

payment policies. The adjustments states and localities prospectively pay

process, (3) actions by the states to have been particularly disruptive for
fixed, capitated amounts to providers ensure provider integrity in the

providers that took advantage of to coordinate and meet all the service
Medicaid program, and (4) additional

Medicare's previous payment policies needs of referred children and

opportunities to improve these efforts. to finance inefficient and
unnecessary families. This allows the single With hundreds of millions of
claims to care delivery. Industry representatives provider-- now assuming
greater process each year, Medicare and are advocating the partial
restoration responsibility for case planning and Medicaid must rely in part
on provider of payment cuts since the BBA's providing needed services-- the
honesty in billing. It is critical to implementation developments have
flexibility to package and manage an protect program funds by ensuring
occured in the areas of home health array of child and family services. that
only legitimate providers bill these services, skilled nursing facilities

Under these arrangements, states and programs. The Health Care Financing
(SNF), and the Medicare+ Choice localities are taking steps toward
Administration (HCFA) has made program. Use of home health services becoming
more performance- based revamping its provider enrollment has dropped
substantially, well below and results- oriented. They are process a priority
for Medicare. It has what would have been required to beginning to identify
measures not sought similar efforts in state

remain within the BBA- imposed associated with five child and family
Medicaid programs. Medicaid state payment limits. The new Medicare outcome
categories-- child safety, a agencies report differing practices to payment
system, scheduled for permanent home for the child, child ensure provider
integrity, and only

implementation in October, should and family well- being, stability of
outof- nine states perform comprehensive

generally provide agencies a home placements, and client provider enrollment
activities.

comfortable cushion to deliver satisfaction with services. Agencies Because
HCFA is redesigning its

necessary services. Some corporate

SNF chains have declared bankruptcy. patient safety to staff. VA has not yet

Under various financing schemes, the The new Medicare payment system
prepared a detailed implementation states, have inappropriately increased
will adequately cover the cost of plan that identifies how and when VA's

federal Medicaid payments by paying beneficiary services but not support
various patient safety initiatives will be some providers more than they
would extensive capital expansions or implemented, how they are aligned to
normally receive and having them ancillary service business that the support
improved patient safety, and

return the bulk of the extra money to chains relied on to boost revenues.
what contribution each initiative can

the state. Making excess payments Many plans are withdrawing from be
expected to make toward the goal generates additional federal matching
Medicare because of the changes to of improved patient safety. safety.

funds, which can be used to pay its the Medicare program and plans' share of
future Medicaid payments- thus business decisions. Ongoing GAO T- HEHS- 00-
192, Sept. 5, 2000 (14

generating even more matching work shows that payments to plans for pages).
Nursing Homes: Aggregate

funds-- or spent however the state Medicare enrollees continue to exceed
Medicare Payments Are Adequate determines. By getting some of the the
expected fee- for- service costs. This Despite Bankruptcies, by Laura A.
money back from the provider and finding is significant: Medicare Dummit,
Associate Director, Health keeping the federal share associated managed
care, although originally Financing and Public Health Issues,

with it, the state is able to lower its expected to achieve program savings,
before the Senate Special Committee own Medicaid contribution continues
instead to add to program

on Aging. substantially below the share specified cost. in federal law.
According to the Health Aggregate Medicare payments for Care Financing.
Administration T- HEHS- 00- 167, July 27, 2000 (13 nursing home services
likely cover the

(HCFA), 17 states have plans that pages). VA Patient Safety: Initiatives

cost of care needed by beneficiaries, could allow this. Eleven states are

Promising but Continued Progress although some refinements to the drafting
plans for doing so. Billions of Requires Culture Change, by Cynthia

payment system are needed. However, dollars are generated through this
Bascetta, Associate Director, Veterans' Medicare policy changes have
required practice. When related schemes came Affairs and Military Health
Care Issues,

many nursing homes to adjust their to light in the past, steps were taken to
before the Oversight and operations. Those homes that took curtail them and
restore the Investigations Subcommittee, House

advantage of Medicare's previous federal/ state partnership as intended.
Committee on Veterans' Affairs. payment policies and who financed HCFA has
drafted a regulation that inefficient and unnecessary care would curtail
this scheme, but the The Department of Veterans Affairs delivery and those
companies who

draft has not moved far in the (VA) has undertaken several initiatives
provided ancillary services have found rulemaking process. to better detect
and prevent adverse the changes to be disruptive. Their events, including
falls, medication problems are the result of business

T- HEHS- 00- 196, Sept. 13, 2000 (15 errors, missing patients, and suicides.
decisions made when Medicare pages). Long- Term Care Insurance: For example,
VA has established exercised too little control over its

Better Information Critical to systems that include bar code payments.
Filing for bankruptcy Prospective Purchasers, by William J. technology to
prevent blood product protection under Chapter 11 gives

Scanlon, Director, Health Financing and medication administration errors.

these providers time to restructure and Pubic Health Issues, before the

VA is completing its implementation of their debts and streamline their
Senate Special Committee on Aging. a revised mandatory adverse event
operations while continuing to care for reporting and prevention process;
the their nursing home residents. Should

Long- term care financing will be an success of this initiative depends on
any of these providers not emerge increase concern as the baby boomers VA
establishing a culture in which from bankruptcy, the nursing homes

begin to turn 65 and become eligible employees feel safe to openly report
will be sold and the residents may have for Medicare. Estimates of the
actual adverse events as well as close to find alternative care
arrangements. magnitude of the baby boomers' future calls. VA has used
strategies suggested long- term care needs vary, with by the Institute of
Medicine for T- HEHS- 00- 193, Sept. 6, 2000 (11 estimates of the number of
disabled creating a culture of safety. It should pages). Medicaid: State
Financing ranging from two to four times the also increase its emphasis on
Schemes Again Drive Up Federal current number. Cost estimates are leadership
strategies by measuring its

Payments, by Kathryn Allen, Associate even more imprecise, due to factors

progress against the Institute Director, Health Financing and Public such as
how many will need care, the strategies: patient safety, clear

Health Issues, before the Senate type of care they will need, and the
responsibilities and expectations, and

Committee on Finance. availability of public and private communicating the
importance of sources to pay for that care. The aging

baby boom generation, longer life testimony summarizes the September
protections for human research expectancies, and evolving options for
report, GAO/ HEHS- 00- 130. subjects but has had substantial providing and
financing long- term care problems with its implementation. For will require
substantial public and T- HEHS- 00- 201, Sept. 18, 2000 (13

example, medical centers did not private investment. Consumer pages).
Medicare: More Beneficiaries comply with all regulations to protect
information and protection is Use Hospice; Many Factors Contribute the
rights and welfare of research necessary, especially if private

to Shorter Periods of Use, by William J. participants. Specifically, VA
insurance is to assume a larger role in Scanlon, Director, Health Financing
headquarters has not provided medical financing long- term care. Long- term
and Public Health Issues, before the center research staff with adequate

care insurance policies are not Senate Special Committee on Aging. guidance
on protections for human standardized by law as are Medicare subjects.
Insufficient monitoring and supplemental (Medigap) policies, This report
discusses issues related to

oversight of local human subject making comparisons among the

the use of Medicare's hospice benefit, protections have permitted

policies difficult. Several checklists which indicates that beneficiaries
with noncompliance with regulations to go exist to help individuals buy a
policy all types of terminal diseases are undetected and uncorrected. VA has
whose options best fits their needs. making use of the facilities in greater

not ensured that funds needed to for Also, the current price of the policy

numbers every year. However there human subject protections are and whether
that price is subject to are factors that affect the use of the allocated
for that purpose at the

future increases must be clear. hospice benefit, and these factors also
medical centers. To VA's credit,

contribute to the availability of substantial corrective actions have T-
HEHS- 00- 199, Sept. 21, 2000 (15 hospice providers. Although more been
implemented at three medical pages). Pension Benefit Guaranty beneficiaries
are choosing hospice, centers in response to sanctions by

Corporation: Contract Management many are doing so closer to the time of
regulatory agencies taken against their Needs Improvement, by Barbara death.
Half of Medicare hospice users

human research programs, but VA's Bovbjerg, Associate Director,

are enrolled for 19 or fewer days, and systemwide efforts at improved

Education, Workforce, and Income service periods of 1 week or less are
protections have been slow to develop. Security Issues, before the Senate
common. Many factors influence

Despite some difficulties, these three Committee on Small Business and

decisions about whether and when to medical centers have made progress
Senate Special Committee on Aging. begin hospice services, including and
each has resumed human research physician practices, patient

activities. Also, VA has established an The Pension Benefit Guaranty
preferences and circumstances, and Office of Research Compliance and
Corporation (PBGC) sought to address

general awareness of the benefit Assurance to monitor human subject a
backlog of hundreds of thousands of among professionals and the public.

protections. This testimony pending benefit determinations by The financial
conditions of hospice summarizes the September report, contracting for
services. However, costs are uncertain because data on GAO/ HEHS- 00- 155.
PBGC has not linked its contracting

provider costs are not available. The decisions to longer- term strategic
HealthCare Financing Administration

T- HEHS- 00- 205, Sept. 26, 2000 (13 planning considerations. Also, PBGC's
is beginning to gather information pages). Social Security procurement
planning and execution from hospice providers about their Administration:
SSA's Letters to the processes do not stimulate

costs, which should allow the Public Remain Difficult to Understand,
competition for contract awards and adequacy of Medicare hospice

by Barbara Bovbjerg, Associate they do not have sufficient rationale payment
rates to be evaluated in the Director, Education, Workforce, and for
contracts awarded. PBGC also relatively near future.

Income Security Issues, before the does not adequately monitor the

Social Security Subcommittee, House performance of contractors in the field
T- HEHS- 00- 203, Sept. 28, 2000 (11 Committee on Ways and Means. and has a
weak quality assurance pages). VA Research: System for review process. The
broader

Protecting Human Subjects Needs The Social Security Administration
management issues and day- to- day Improvement, by Victor S. Rezendes,

(SSA) sends millions of letters each operational problems that GAO Assistant
Comptroller General, before year to notify applicants and recipients
identified in PBGC's contracting the Oversight and Investigations about
eligibility for or changes in practices could affect its ability to
Subcommittee, House Committee on benefits. These letters have excluded
efficiently and cost- effectively serve

Veterans' Affairs. essential details needed to understand

the financial needs of millions of its decisions, presented information in
pension plan participants. This The Department of Veterans Affairs an
illogical order, and required (VA) has adopted a system of complex analyses
to reconstruct

benefit payments. Specifically, one or VETS can accurately assess its
Walker, Comptroller General of the more of the following key points were
performance nationally and know United States, before the House

missing: (1) the reason why SSA sent whether it is improving from year to
Committee on Ways and Means. the letter; (2) the basis for its decision;
year. (3) the financial effect of the decision The President's Social
Security on the recipient; or (4) the recourse T- HEHS- 00- 209, Sept. 28,
2000 (15

transfer proposal, embodied in S. 1831 available to the person. For many of
pages). Nursing Homes: Success of and H. R. 3165, would not in any way the
problems, SSA has not taken any

Quality Initiatives Requires Sustained reform the basic Social Security

corrective action and has repeatedly Federal and State Commitment, by
program, although the administration rescheduled plans to make William J.
Scanlon, Director, Health is committed to long- term reform. The
comprehensive changes. In September Financing and Public Health Issues,
proposal seeks to increase the 1999, a federal court ordered SSA to before
the Senate Special Committee likelihood that projected unified develop and
implement a plan to on Aging. surpluses would be preserved for improve its
Supplemental Security Social Security and debt reduction. It Income letters,
prompting SSA to Recent federal quality initiatives have would provide
additional program

begin a major, multiyear initiative to generated a host of nursing home
funding by transferring general funds

improve its letters. This testimony oversight efforts that need continued to
the Old Age and Survivors Insurance

summarizes the September report, federal and state attention to reach

and Disability Insurance trust funds. GAO/ HEHS- 00- 179. their full
potential. Efforts to improve

This shift in program financing would federal oversight of states' quality

reduce publicly held debt but would T- HEHS- 00- 206, Sept. 27, 2000 (14
assurance activities are unfinished or not modify the program's underlying
pages). Veterans' Employment and need refinement. States have begun to
commitments for the future. The Training Service: Better Planning use the
new methods introduced by proposed transfer, by extending trust Needed to
Address Future Needs, by the initiatives to spot serious

fund solvency, could create Sigurd R. Nilsen, Associate Director,
deficiencies when conducting surveys,

complacency about the program's Education, Workforce, and Income but
additional steps needed may not be financing, making it more difficult to
Security Issues, before the Oversight

introduced until 2002 or 2003. Efforts engage in substantive program reform.

and Investigations Subcommittee, to reduce the predictable timing of House
Committee on Veterans' Affairs. surveys, so as to minimize the homes' T-
HEHS/ AIMD- 00- 59, Mar. 8, 2000 (4 covering up problems, have been pages).
Combating Terrorism: The Veterans' Employment and modest. Results showed a
marginal Chemical and Biological Medical Training Service (VETS) has revised
its increase nationwide in the proportion

Supplies Are Poorly Managed, by mission statement to better focus on of
homes with documented actual Cynthia Bascetta, Associate Director,
minimizing unemployment and harm and immediate jeopardy

Veterans' Affairs and Military Health underemployment among veterans.
deficiencies. States that GAO reviewed Care Issues, before the National
Although VETS has improved the form were not yet investigating all Security,
Veterans Affairs, and and some of the content of its plans,

complaints that alleged actual harm to International Relations Subcommittee,
VETS is still not adequately describing a resident within 10 days, as now
House Committee on Government the direction it intends to take. For

required by the Health Care Financing Reform.

example, VETS has not established a Administration (HCFA). HCFA has also

consistent set of priorities in terms of strengthened its enforcement tools
to This testimony draws on a recent GAO which veterans it intends to target
for sanction nursing homes that are cited report on the management of
federal employment assistance or developed

for actual harm and immediate medical stockpiles that would be used
sufficient strategies to address how jeopardy violations. Additional funds

to treat civilians in a chemical or best to incorporate its programs into
were provided in fiscal years 1999 and biological terrorist attack. (See the
new workforce development 2000 to hire new staff to reduce the

GAO/ HEHS/ AIMD- 00- 36, Oct. 1999.) system. Furthermore, although VETS
large number pending appeals by GAO highlights the problems that it
recognizes that the establishment of nursing homes and to collect assessed
found with the management of the one- stop centers will increase the

fines faster. This testimony stockpiles, discusses the results of its number
of its service delivery points, it summarizes the September report,

actual count of stockpiled supplies, has not developed any plans to address

GAO/ HEHS- 00- 197. and provides information on the

how it will provide assistance at all progress made since GAO's last report
centers. Finally, the quality of some of

T- HEHS/ AIMD- 00- 43, Nov. 9, 1999 was issued.

VETS program management data is (20 pages). Social Security: The
questionable; therefore, it is unlikely President's Proposal, by David M.

T- HEHS/ AIMD- 00- 75, Feb. 10, 2000 leadership through ongoing succession
offset their costs. Because of the size

(29 pages). SSA Customer Service: planning efforts. Without a vision for

of Medicare's unfunded liability, it is Broad Service Delivery Plan Needed
to future service followed by a more realistic to expect that reforms
Address Future Challenges, by Cynthia

detailed service delivery plan, SSA intended to bring down future costs M.
Fagnoni, Director, Education, cannot be sure that its investments in will
have to proceed incrementally. As Workforce and Income Security Issues,

technology and human capital-- that is, reform options come under greater
before the Human Resources its workforce-- are consistent with and scrutiny,
the importance of design Subcommittee, House Committee on

fully support its future approach to details should not be overlooked. Ways
and Means, and Social Security delivering services. GAO's work on efforts to
implement Subcommittee, House Committee on

recent reforms suggests that those Ways and Means.

T- HEHS/ AIMD- 00- 77, Feb. 8, 2000 details will determine whether reform

(20 pages). Medicare: Program options will be both effective and

The Social Security Administration Reform and Modernization Are acceptable.
(SSA) will be challenged to maintain a Needed But Entail Considerable high
level of service to the public in the Challenges, by David M. Walker,

T- HEHS/ AIMD- 00- 99, Feb. 15, 2000 next decade and beyond. Demand for

Comptroller General of the United (20 pages). Prescription Drugs: services
is expected to grow States, before the Senate Special Increasing Medicare
Beneficiary significantly. At the same time, the Committee on Aging. Access
and Related Implications, by expectations and needs of SSA's

David M. Walker, Comptroller General customers are changing. Some want The
Comptroller General's statement

of the United States, before the Health faster, more convenient service,
while discusses the competing concerns at Subcommittee, House Committee on
others, such as non- English speakers the heart of the Medicare reform Ways
and Means. and the many beneficiaries with debate and provides a conceptual
mental impairments, may require framework for evaluating the possible

Concerns are growing about gaps in additional help from SSA staff. SSA's
combinations of reform options. To the Medicare program, most notably
ability to respond to these challenges qualify as meaningful reform, a the
lack of outpatient prescription

will be difficult because the number of proposal should make a significant
drug coverage, which may leave the SSA employees who retire is expected down
payment toward ensuring most vulnerable program beneficiaries to peak at the
same time that large Medicare's long- range financial

with high out- of- pocket costs that they increases will occur in
applications for

integrity and sustainability-- the most can ill afford. Nearly one- third of
benefits. Although GAO has critical issues facing the program. Medicare
beneficiaries lacked recommended since 1993 that SSA Fundamental reforms are
vital to prescription drug coverage in 1996. At prepare a service delivery
plan, the

reducing the program's growth, which the same time, however, the long- term

agency is only now beginning to threatens to absorb ever- increasing cost
pressures confronting the develop a broad vision for customer shares of the
nation's budgetary and Medicare program are considerable. A service for
2010. In the meantime, SSA fiscal resources. At the same time, consensus
appears to be emerging that is counting on efficiencies from Medicare is
outmoded from a substantive financing and technology to help it cope with
its

programmatic perspective. To address programmatic reforms are needed to
rising workload. SSA has had mixed to need for an updated benefit package

put Medicare on a sound footing in the success with its information and
adequate tools to moderate future. These reforms are vital to technology
initiatives, however, and program spending, proposals have reducing the
program's growth, which

the benefits from its technology been advanced that would expand threatens
to consume ever- larger

investments have largely been unclear. benefits while introducing changes to
shares of the nation's budgetary and On the other hand, SSA's efforts to
make beneficiaries more costconscious economic resources. Continuing prepare
for the rising number of and incentives to make economic prosperity and
projected retirements among its among its own health care providers
efficient. Ideally, federal surpluses provide an

workforce and changing customer the unfunded promises associated opportunity
to address the structural needs and expectations have shown with today's
program should be imbalances in Medicare, Social more promise, although many
addressed before or concurrent with Security, and other entitlement
initiatives are still in the early stages

proposals to add new ones, such as programs. Congress faces the difficult
and much work remains. SSA needs to prescription drug coverage. To so

decision of how best to guarantee the fully assess the skills that its

otherwise might be politically Medicare program's sustainability workforce
will need to serve its attractive but not fiscally prudent. If

while being mindful of the plight of customers in the future. SSA also
benefits are added, policymakers need many seniors who cannot afford the
needs to ensure continuity in to consider targeting strategies to fully
latest pharmaceutical breakthroughs.

Congress and the President may decision of how best to guarantee the

proposals, the details will need to be ultimately decide to include some
form Medicare program's sustainability worked out. And those details will of
prescription drug coverage as part while being mindful of the plight of
determine whether the reforms will be of Medicare reform. Care must be many
seniors who cannot afford the effective and acceptable. taken, however, to
ensure that any

latest pharmaceutical breakthroughs. expansion of the program is

Congress and the President may T- HEHS/ AIMD- 00- 146, May 18, 2000
accompanied by other programmatic ultimately decide to include some form (20
pages). Veterans Benefits reforms that will sustain Medicare's

of prescription drug coverage as part Administration: Problems and long-
term financial integrity. This

of Medicare reform. Care must be Challenges Facing Disability Claims
testimony discusses (1) the factors

taken, however, to ensure that any Processing, by Cynthia Bascetta,

contributing to the growth in expansion of the program is Associate
Director, Veterans' Affairs prescription drug spending and efforts

accompanied by other programmatic and Military Health Care Issues, before to
control that growth and (2) the reforms that will sustain Medicare's the
Oversight and Investigations design and implementation issues long- term
financial integrity. This Subcommittee, House Committee on associated with
proposals to improve testimony discusses (1) the factors

Veterans' Affairs. seniors' access to affordable contributing to the growth
in prescription drugs. prescription drug spending and efforts Claims
processing in the disability to control that growth and (2) the compensation
program is done by the T- HEHS/ AIMD- 00- 100, Feb. 16, 2000 design and
implementation issues Veterans Benefits Administration

(20 pages). Prescription Drugs: associated with proposals to improve (VBA).
Congress, the Department of Increasing Medicare Beneficiary seniors' access
to affordable Veterans Affairs, and veterans' service Access and Related
Implications, by prescription drugs. organizations have been concerned
William J. Scanlon, Director, Health about the program for years. The
Financing and Public Health Issues,

T- HEHS/ AIMD- 00- 103, Feb. 24, 2000 concerns have focused on the before
the Health and Environment (23 pages). Medicare Reform: Leading

backlogs of claims, long waits for Subcommittee, House Committee on

Proposals Lay Groundwork, While disability decisions, and the poor

Commerce. Design Decisions Lie Ahead, by David quality of these decisions,
all of which M. Walker, Comptroller General of the have undermined the
quality of service Concerns are growing about gaps in United States, before
the Senate provided to veterans. VBA's problems the Medicare program, most
notably Committee on Finance. with large backlogs and long waits for the
lack of outpatient prescription decisions have not improved, despite drug
coverage, which may leave the The Comptroller General's statement

years of studying these problems. most vulnerable program beneficiaries
focuses on two leading Medicare

Moreover, VBA's new quality with high out- of- pocket costs that they reform
proposals: the President's Plan measurement system shows that can ill
afford. Nearly one- third of to Modernize and Strengthen Medicare nearly
one- third of its decisions are Medicare beneficiaries lacked for the 21st
Century and S. 1895, incorrect or have technical or prescription drug
coverage in 1996. At commonly known as the Breaux- Frist procedural errors.
Many performance the same time, however, the long- term proposal. Both
proposals recognize problems stem from the process's cost pressures
confronting the

the need for more comprehensive complexity, which is growing as the Medicare
program are considerable. A

reform-- a position consistent with number of service- connected consensus
appears to be emerging that GAO's belief that the unfunded disabilities per
veteran increases and substantive financing and

promises associated with today's judicial review requires more programmatic
reforms are needed to program should be addressed before procedures and
documentation.

put Medicare on a sound footing in the adding new benefits, such as Although
VBA has begun several future. These reforms are vital to prescription drug
coverage. Such efforts to streamline its claimsprocessing reducing the
program's growth, which

additions must be considered in the performance, it is unclear

threatens to consume ever- larger context of broader efforts to correct how
much improvement will result.

shares of the nation's budgetary and Medicare's current fiscal imbalance

Also, VBA may need to collect and economic resources. Continuing and sustain
the long- term viability of analyze additional case- specific data to
economic prosperity and projected

this popular program. Also, any reform better understand its
claimsprocessing

federal surpluses provide an package should include a mechanism problems and
better target opportunity to address the structural to monitor aggregate
program costs

its corrective actions. Furthermore, imbalances in Medicare, Social over
time and establish funding because some issues affecting VBA's Security, and
other entitlement thresholds that would trigger a call for performance are a
function of program programs. Congress faces the difficult fiscal action. In
the case of both design, more fundamental changes

may have to be considered to realize attorneys who represent SSI children
they serve are being

significant improvements. recipients. compromised by poor guidance and

oversight from the Health Care T- HEHS/ AIMD- 00- 166, June 14, 2000 T-
HEHS/ NSIAD- 00- 129, Mar. 15, Financing Administration (HCFA) and (15
pages). Social Security 2000 (15 pages). Defense Health Care:

by improper payments. Forty- seven Administration: Paying Attorneys Who
Observations on Proposed Benefit states and the District of Columbia
Represent Disability Applicants, by Expansion and Overcoming TRICARE
reported $2. 3 billion in Medicaid

Barbara Bovbjerg, Associate Director, Obstacles, by Stephen P. Backhus,

expenditures for school- based Education, Workforce, and Income Director,
Veterans' Affairs and Military activities for the latest year for which
Security Issues, before the Social Health Care Issues, before the Military
they have data. Although this affects Security Subcommittee, House Personnel
Subcommittee, House only a small percentage of overall Committee on Ways and
Means.

Committee on Armed Services. Medicaid spending, more schools are expressing
interest in Medicaid as a Often when applicants are found

The beneficiaries' benefit source of funds, especially to eligible for
Disability Insurance (DI) enhancements to the military health reimburse
administrative activities. benefits, the Social Security system proposed in
current legislation

Some school districts and states Administration (SSA) pays attorneys and the
Department of Defense fiscal claiming Medicaid reimbursement for
representing them directly from the

year 2001 budget request would have school- based services lack adequate
beneficiaries' past- due benefits.

limited impact on retention. Those that controls to help ensure that their
Complaints about the time it takes SSA

would improve access or pharmacy claims are legitimate. Despite the to pay
the attorneys and recent coverage for older retirees should be significant
Medicaid payments for legislative changes to the attorney fully assessed for
cost and operational

school- based services in some states, payment process that include
concerns. Regarding those that would school districts may receive little in
collecting a user fee for paying the eliminate cost sharing for active- duty

direct reimbursements because of attorneys have raised questions about
dependents who obtain care from funding arrangements among schools, whether
additional changes are

civilian providers, GAO notes that the states, and private firms. Seven
states needed. A recent legislative proposal lack of cost sharing for health
benefits keep as much as 85 percent of the calls for eliminating this user
fee if SSA leads to unnecessary utilization and

federal reimbursement for Medicaid does not pay attorneys within 30 days,
higher costs. In the long term, the size

school- based claims. Some school but it may sometimes be difficult for and
structure of the military health districts also pay up to 25 percent of SSA
to meet this deadline. Three system need to be reassessed in terms

their federal Medicaid reimbursement possible changes to the attorney fee of
how best to achieve its readiness

to private sector firms that help them payment process include whether (1)
mission. If the system can be made develop claiming methodologies, train
joint checks for past- due benefits significantly smaller and provide even
school personnel to apply them, and should be issued to the beneficiary and
better training for wartime needs,

submit the claims for reimbursement. the attorney, (2) the dollar limit on
savings from downsizing could pay for

As a result, schools may end up with as certain attorney fees should be
raised,

expanded health care benefits. GAO little as $7. 50 for every $100 claimed.
and (3) SSA's attorney fee payment also finds room for improvement in These
funding arrangements can process should be expanded to the TRICARE's
appointment scheduling reduce incentives for appropriate Supplemental
Security Income (SSI) and claims processing and in the

program oversight and create an program. These changes would have pharmacy
program. environment of opportunism that policy and administrative
implications siphens funds away from their that need to be considered. Some
of T- HEHS/ OSI- 00- 87, Apr. 5, 2000 (19

intended purposes. HCFA has the changes could increase attorney

pages). Medicaid in Schools: Poor historically provided little or
representation for disability applicants Oversight and Improper Payments

inconsistent direction and oversight of and they have some drawbacks. For
Compromise Potential Benefit, by Medicaid reimbursements for schoolbased
example, issuing joint checks to the Kathryn Allen, Associate Director,

claims. HCFA has recently beneficiary and the attorney might Health
Financing and Public Health focused more attention on these delay payments
to the beneficiary and Issues, and Robert H. Hast, Acting issues, but the
states are still awaiting might increase the chance that Assistant
Comptroller General, before more guidance.

attorneys would shortchange the Senate Committee on Finance. beneficiaries.
SSA indicated that it NSIAD

might need to make significant Despite growing expenditures for

modifications to its information school- based Medicaid services, the AIMD/
NSIAD- 00- 38, Dec. 10, 1999 systems to issue joint checks or pay potential
benefits to schools and the

(24 pages). Air Force Depot

Maintenance: Analysis of Its Financial

GGD/ NSIAD- 00- 105, Mar. 1, 2000 (83 consideration for competition at the

Operations. pages). The Euro: Implications for the time the inventories were
compiled. United States-- Answers to Key

These agencies received and The Air Force depot maintenance Questions.
responded to a total of 332 challenges activity group provides the repair
and 96 appeals to their 1999 FAIR Act services needed to keep air force
units

Eleven of the 15 countries in the inventories from interested parties.

up and running around the world. The European Union (EU) adopted the
Agencies challenged by private group repairs and overhauls a wide euro as a
common currency in January industry indicated that they did not range of
items, from aircraft engines to 1999. Monetary union has created a plan to
consider many of the missiles to software. For example, the large economic
entity in Europe that commercial activities on their Air Force reported that
in 1998 the could emerge as a powerful force in inventories for competition.
In depot maintenance activity group did world economic and financial
markets.

contrast, almost all employee major overhauls on 670 aircraft, This
development has raised questions

challenges and appeals concerned the overhauled 980 engines, and repaired
about the euro's impact on the United inclusion of activities that the more
than 800,000 inventory items. States, from the dollar's role as an employees
contended were inherently The report discusses (1) the Air Force

international currency to U. S. trade governmental. Agencies sustained 20
activity group's price increase between

and the relative attractiveness of the of the 332 challenges and denied the
fiscal years 1994 and 1999 and the United States to foreign investors. This

rest. Three of the 96 appeals were primary reasons for it, (2) the activity
report answers the following successful. group's financial losses during
that questions: (1) What is the euro and period and the primary reasons for
why is Europe moving to it now? (2)

NSIAD- 00- 1, Oct. 21, 1999 (27 pages). them, and (3) the Air Force's
methods What are the potential effects of the

Defense Inventory: Improved for recovering these losses. euro on the dollar?
(3) What are the Management Framework Needed to potential monetary and
exchange rate Guide Navy Best Practice Initiatives. AIMD/ NSIAD- 00- 185,
Aug. 15, 2000 effects of the euro? (4) What are the (40 pages). Air Force
Depot implications of the euro for financial Each of the military services
is

Maintenance: Budgeting Difficulties markets and institutions and their
required to send Congress a schedule

and Operational Inefficiencies. regulation? (5) What are the euro's for
implementing best commercial

implications for U. S. trade and inventory practices for the acquisition The
Air Force's depot maintenance investment with Europe? (6) What are and the
distribution of secondary

activity group, operating as a working the implications of the euro for

inventory items. This report evaluates capital fund that charges fees for
international economic policymaking? the Navy's best practices services
based on anticipated actual implementation schedule for the costs, provides
depot repair services

GGD/ NSIAD- 00- 244, Sept. 29, 2000 acquisition and the distribution of
needed to keep Air Force units (47 pages). Competitive Contracting:
secondary inventory items, which the operating worldwide. For years, this

Agencies Upheld Few Challenges and Navy sent to Congress in June 1999.

activity has had difficulty accurately Appeals Under the FAIR Act. GAO (1)
determines the extent to budgeting for material costs,

which the schedule responds to the workforce productivity, and savings to
The Federal Activities Inventory

provisions of the law and (2) identifies be achieved through productivity
Reform (FAIR) Act directs agencies to specific elements of a management
improvements and other reform develop annual inventories of framework needed
to effective initiatives. These difficulties have activities done by their
employees that

implementation and oversight of the harmed financial operations, resulting
are not inherently governmental. OMB Navy's best practice initiatives. in
hundreds of millions of dollars in Circular A- 76 provides guidance on
operating losses and limited delivery what types of activities are

NSIAD- 00- 2, Nov. 18, 1999 (25 pages). of timely support to customers. This
commercial and has guidelines for Defense Inventory: Improved report
describes problems with determining whether it is more Management Framework
Needed to inaccurate pricing, decline in worker effective to do the
commercial Guide Air Force Best Practice productivity, and unrealized
projected activities in- house or contract them Initiatives. savings. GAO
recommends ways for

out to the private sector. The 24 major the Air Force to improve budget
agencies named by Chief Financial Each of the military services must
estimates and management of material Officers Act identified about 900,000
send Congress a schedule for costs and usage. full- time equivalent
positions that did implementing best commercial commercial activities, but
more than inventory practices for the acquisition half were exempted from
and distribution of secondary

inventory items. Best commercial NSIAD- 00- 4, Oct. 15, 1999 (31 pages).
operating requirements as of practices are defined as practices that Global
Health: Factors Contributing to September 30, 1997. GAO found that enable
the Defense Department to Low Vaccination Rates in Developing the Air Force
did not always cancel reduce inventory levels while making Countries.
purchases that exceeded current the supply system more responsive to

operating requirements. The Air Force users' needs. GAO found that the Air

More than 11 million children under canceled contracts for $5. 5 million of
Force's schedule, which was submitted

age five die each year in developing the $162. 4 million excess inventory to
Congress in July 1999, is general countries; nearly three- quarters of that
GAO reviewed, but it could have responsive to the law's provisions.

these deaths result from infectious canceled more. Contracts for the
However, the schedule provides a

diseases. The World Health unneeded items are not being canceled management
framework that lacks an Organization estimates that the deaths primarily
because the Air Force's overall strategy and specific elements of at least
four million of these process for canceling contracts takes a needed to
assess implementation

children are linked to their lack of long time. GAO recommends that the
progress, measure success, and access to vaccines. GAO found that Air Force
strengthen management identify needed changes.

although global immunization oversight procedures and internal coverage for
six diseases originally controls over the process for canceling

NSIAD- 00- 3, Oct. 29, 1999 (14 pages). targeted by the World Health
purchases. Contract Management: Pilot Program

Organization (diptheria, measles, Needed to Improve DOD Identification
pertussis, polio, tetanus, and NSIAD- 00- 6, Mar. 6, 2000 (29 pages). of
Warranty Claims. tuberculosis) has improved Defense Transportation: More
Reliable

significantly since the mid- 1970s, Information Key to Managing Airlift Some
commercial airlines have coverage rates are low for children Services More
Efficiently. benefited from the use of outside firms

living in the poorest countries, to identify failed engine parts and
particularly in urban slums and remote The U. S. Transportation Command
recover the cost of correcting such rural areas. Several interrelated
provides global air, land, and sea parts from manufacturers. Officials

factors have limited the availability of transportation services for the
military from United Parcel Service, United vaccines for children in the
developing

in order to maintain a mobilization Airlines, and America West told GAO

world, including (1) an inadequate capability in peacetime and to meet that
their engine warranty recoveries health infrastructure, (2) the relatively
national security needs in times of war. increased over internally
identified higher cost of vaccines recently Its transportation services are
offered recoveries when they supplemented recommended by the World Health
through the Air Force Air Mobility internal efforts with an outside firm. In
Organization, (3) insufficient Command. This report reviews airlift one
case, warranty recoveries rose information on disease burden and

rates charged to customers. GAO threefold over recoveries identified vaccine
efficiency, and (4) changing discusses (1) the extent to which the
internally. So far, the Defense priorities of international donors. In Air
Mobility Command has reliable Department (DOD) has done a limited the 1990s,
the U. N. Children's Fund information for managing airlift review of the
feasibility of establishing and the U. S. Agency for International
transportation services and (2) the a pilot program to use commercial
Development began to reduce their

factors affecting efficient cost control sources to improve the collection
of level of support for immunization. of airlift services. the military's
claims under aircraft engine warranties. However, it has not NSIAD- 00- 5,
Nov. 1, 1999 (20 pages). NSIAD- 00- 7, Dec. 20, 1999 (19 pages). established
one. Experience from the Defense Inventory: Improvements Defense
Transportation: Process private sector suggests that

Needed to Prevent Excess Purchases Reengineering Could Be Enhanced by
contracting for engine warranty by the Air Force. Performance Measures.

administration can improve warranty recoveries over internal efforts. This
This report focuses on the inventory Since the late 1940s, several studies
includes collecting claims on past that the Air Force had on contract- have
characterized the organizational engine repairs even though the that is,
ordered, but not yet delivered- that

structure of defense traffic warranties are no longer active. was excess to
current operating

management as costly and inefficient. However, it is unknown whether the
requirements. To determine whether Multiple agencies have been involved
results achieved by some commercial the Air Force was canceling purchases in
defense traffic management, each airlines can be replicated by DOD

that exceeded current operating with separate service and modal

because a pilot program has yet to be requirements, GAO reviewed 160 items
responsibilities. GAO reported in 1996 implemented. with inventory valued at
$162. 4 million

that the fragmentation and duplication on contracts that exceeded current
inherent in this structure led to higher

transportation costs for defense Action Plan Needed to Improve

NSIAD- 00- 12, Oct. 27, 1999 (62 customers. (See GAO/ NSIAD- 96- 60.)
Response to Parental Child pages). DOD Personnel: Inadequate This report
discusses the (1) Defense

Abductions. Personnel Security Investigations Pose Department's (DOD)
progress in

National Security Risks. reengineering defense transportation The State
Department estimates that financial management processes, (2) about 1,000
children are abducted Security investigations for Defense challenges
associated with from the United States each year.

Department (DOD) personnel are implementing these reengineered International
parental child abduction incomplete and are not done in a processes
agencywide, and (3) extent refers to cases in which one parent timely
manner. As a result, they pose a to which DOD is assessing the takes a child
from the United States or risk to national security by making infrastructure
required to support the keeps a child overseas, violating the DOD vulnerable
to espionage. For reengineered processes. parental rights, including
visitation, of example, 16 percent of the 530 security the parent left
behind. The United investigations GAO reviewed NSIAD- 00- 9, Dec. 21, 1999
(47 pages). States, along with 53 other countries,

identified issues that the Defense Drug Control: Assets DOD Contributes

is a party to the 1980 Hague Security Service did not pursue. These

to Reducing the Illegal Drug Supply Convention, which established civil
issues included individuals' prior

Have Declined. procedures that the State Department criminal history,
alcohol and drug use, may use to locate or return abducted and financial
problems. Also, half of The Defense Department (DOD) children in order to
resolve custody the 530 investigations took 204 or supports the nation's
counterdrug cases. Congress also passed legislation

more days to complete even though efforts by providing military personnel,

in 1993 that allows the Justice the military wants them completed in
detection and monitoring equipment, Department to criminally prosecute 90
days. This slowness causes defense intelligence support, communication

abducting parents. This report contractors to incur costs because systems,
and training. However, DOD discusses (1) problems with the their personnel
cannot start work on has yet to develop performance federal government's
response to

military contracts without a security measures to assess the effectiveness
of international parental child clearance. Also, about 600, 000 its
contributions. DOD has, among abductions, (2) the Justice individuals
holding clearances are other things, developed a database to Department's
use of the 1993 law to overdue for reinvestigations. DOD is

capture information that can be used prosecute abducting parents, and (3)
taking steps to address these to evaluate the relative performance of the
steps that federal agencies plan to problems, but it will take considerable
its detection and monitoring take to address the problems. time and money to
identify and equipment. DOD support for

implement the actions and additional international drug control efforts has

NSIAD- 00- 11, Nov. 22, 1999 (55 steps needed. fallen significantly since
1992. The

pages). Future Years Defense decline in DOD assets used for

Program: Funding Increase and NSIAD- 00- 13, Oct. 26, 1999 (29 counterdrug
efforts is due to (1) the Planned Savings in Fiscal Year 2000

pages). Chemical and Biological lower priority assigned to the Program Are
at Risk. Defense: Chemical Stockpile counterdrug mission compared with
Emergency Preparedness Program for that assigned to other military The
Pentagon's Future Years Defense

Oregon and Washington. missions that might involve contact Program (FYDP) is
the official with hostile forces such as document that summarizes the force
The Chemical Stockpile Emergency

peacekeeping and (2) overall levels and funding associated with Preparedness
Program was created to reductions in defense budgets and specific programs
that the military protect the public in the event of an force levels. DOD
officials believe that would like Congress to approve. The accident during
the destruction of the their operations are more efficient fiscal year 2000
FYDP requested an chemical weapons stockpile. Since today than in the past
and that this has additional $50. 8 billion to the GAO last reported on
their partially offset the decline in assets previously requested $1, 053
billion

preparedness in 1997, the Oregon and available for counterdrug operations.
total funding for fiscal years 2000 Washington communities surrounding
Because of a lack of data, however, the through 2003. This report identifies
the

the Umatilla Chemical Depot have impact of the reduced level of DOD major
changes and adjustments in the made progress in preparing for a support on
drug trafficking is

2000 FYDP as compared to the 1999 possible emergency at the chemical
unknown. FYDP and discusses the risks that the

weapons stockpile. Additional 2000 FYDP faces that may prevent it
preparedness equipment and other

NSIAD- 00- 10, Mar. 29, 2000 (36 from being implemented as planned. critical
items are now fully or partially pages). Foreign Affairs: Specific in place.
For example, Oregon now has

a working siren to alert people The Army has bought 6,700 3/ 4- ton assesses
(1) the Army's progress in outdoors if an accident occurs.

high mobility trailers as companion developing and implementing its

However, some critical items were still trucks for its 1 1/ 4- ton trucks.
The workload performance system and (2) not in place in either state,
including

Army is buying two kinds of trailers: a the extent to which the Army's April
tone alert radios and shelter- in- place cargo trailer, which will be used
to 1999 report addresses an overall kits. Planning is extremely critical for
carry loose cargo, such as ammunition master plan for implementing the

effective program management and boxes, and a chassis trailer, which will
system, including its future Oregon's program planning needs be used to
permanently attach towed

applications and funding needs. improvement. The program in Oregon
equipment, such as power generators. lacks an overall plan that (1) defines

The Army has paid a much higher unit NSIAD- 00- 18, Feb. 9, 2000 (96 pages).
missions, roles, outcomes, and price for the trailers than it originally
Defense Budget: DOD Should Further performance measures and (2)

expected primarily because it awarded Improve Visibility and Accountability
includes input from all the key

a $50. 6- million, five- year multiyear of O& M Fund Movements.
stakeholders, such as local, county, contract to produce about 7,500

and state emergency response trailers and then decided not to fund The
Defense Department's (DOD) personnel.

the fourth year of the contract. Most of single largest appropriation group-
the 6,700 trailers that the Army has

Operation and Maintenance (O& M)- funds

NSIAD- 00- 14, Nov. 3, 1999 (28 pages). purchased (1) are not usable because
training, maintenance, and other Export Controls: International Space of a
safety problem and (2) not key readiness activities as well as Station
Technology Transfers. suitable because they damage the light other expenses
not directly related to and heavy trucks towing them. In readiness. Congress
has provided

The international space station, with addition to damaging the truck, the
about $104 billion for all these 16 nations involved, is one of the Army
found that the trailer drawbar activities in fiscal year 2000. Congress
largest scientific collaborations

could break, causing a safety problem. has raised concerns about the extent
attempted. Under international If it breaks, the trailer can disconnect to
which the funds that directly affect agreements, NASA, as the U. S. from the
truck or overturn. The Army readiness-- generally those in the
representative, is obligated to deliver,

has placed all 5, 696 cargo trailers and operating forces' portion of the O&
M disclose, or transfer technology, data, 854 of the chassis trailers into
storage

budget-- have been reduced to pay for and commodities needed to implement
until they are modified to correct the other O& M expenses. This report (1)
the program. Members of Congress problems. The modifications to correct

identifies the aggregated differences have raised concerns about the extent
the trailer drawbar problem caused between the amounts that Congress of
safeguards to protect technology more problems with the trailer brakes
initially designated for O& M and information exported in support of and
more damage to the trucks. The subactivities (especially the
readinessrelated the space station. This report provides

Army's acquisition strategy subactivities) and those DOD information on (1)
the licenses granted underestimated the risks.

reported as obligated for the same to NASA to export space stationrelated
subactivities, (2) identifies those O& M technology and commodities NSIAD-
00- 16, Nov. 12, 1999 (23

subactivities for which DOD obligated and plans to export encryption pages).
Defense Logistics: Army funds differently than recommended technology and
(2) the results of Should Assess Cost and Benefits of the

by Congress in each year of the fiveyear internal and external assessments
of Workload Performance System periods GAO examined (1994 NASA's export
control program and

Expansion. through 1998), and (3) assesses the NASA's actions to implement
audit information available to Congress to recommendations. Encryption
Accurate and consistent estimates of track DOD's movement of funds
technology maintains the secrecy of future workloads are essential to among
O& M subactivities. information and is needed to provide

determine personnel requirements. secure transmission of command and
Congress has required the Army to NSIAD- 00- 19, Oct. 4, 1999 (24 pages).
control instructions between ground certify that its new system for DOD
Competitive Sourcing: Plan and space components of the space estimating
personnel requirements is

Needed to Mitigate Risks in Army station. fully operational before
undertaking a Logistics Modernization Program. reduction- in- force at any
of the Army's

NSIAD- 00- 15, Oct. 27, 1999 (15 five maintenance depots. The Army The Army
plans to reengineer its pages). Defense Acquisitions: Army must provide
Congress with a master processes and modernize its aging Purchased Truck
Trailers That Cannot plan for implementing the new system, computers used to
manage inventories be Used as Planned. including future applications and
total of parts and equipment supplied to funding for implementation. GAO

combat troops. Under its Wholesale

Logistics Modernization Program, the Army's overall requirements and (2)
faced with a sole- source supplier that Army plans to contract with the

addresses plans to consolidate demands a price that they believe is private
sector to reengineer its fragmented maintenance operations.

unreasonable, some airlines will business processes and develop a new GAO
also highlights continuing consider re- engineering the part and system.
Until the new system is up and challenges the Army faces as it tries to
establishing a second source. DOD running, the contractor will operate

resolve proliferation issues. policies call for using similar practices the
existing computer system as well. when buying commercial spare parts.

The Army intends to accomplish these

NSIAD- 00- 21, Oct. 20, 1999 (22 Contracting officers often rely on
objectives with the same level of pages). Defense Inventory: competition to
ensure reasonable resources devoted to the existing Management of Repair
Parts Common prices. DOD often receives discounts

system. The contractor chosen to do to More Than One Military Service Can on
catalog prices from suppliers, and it the work will be expected to make the
Be Improved.

has also begun to negotiate longerterm capital investment needed to develop
agreements that set prices. In the new system, with the expectation

The military's initiatives dating to the sole- source situations,
contracting that it would be able to recoup its early 1970s to improve the
personnel do some price analyses, but investment through future operating
management of identical repair parts

GAO's recent review of the analyses efficiencies. This report reviews the
have been largely ineffective. Many found that they could be very limited
Army's decision to contract for its identical parts continue to be managed

in scope. Less commonly, DOD will wholesale logistics management by more
than one service, even though buy surplus parts or consider reengineering
information system. GAO discusses (1) opportunities for savings and a part.
the Army's plan to comply with the

management efficiencies exist by requirements of the law and of Office using
a single manager when there are

NSIAD- 00- 23, Dec. 20, 1999 (38 of Management and Budget's Circular
multiple users of the same part. GAO

pages). Military Base Closures: Lack A- 76 and (2) the cost uncertainties
and believes that the savings from better of Data Inhibits Cost-
Effectiveness of other risks that could affect the future management of
identical parts would Analyses of Privatization- in Place success of the
modernization effort. be considerable. Because of planning Initiatives.

and management weaknesses, the NSIAD- 00- 20, Oct. 15, 1999 (44 Defense
Department initiatives have Privatization- in- place is a concept in pages).
Depot Maintenance: Army not been successful in moving to an which a private
sector entity takes Report Provides Incomplete approach that would result in
a single over the operations of a facility that Assessment of Depot- Type
manager performing all inventory was once run by the government. So

Capabilities. management duties. far, privatization- in- place has been
associated with the base closure Depot maintenance and repair NSIAD- 00- 22,
Nov. 29, 1999 (14

process and has been used by the involves the overhaul, upgrade, and pages).
Contract Management: A Defense Department (DOD) to transfer rebuilding of
military systems, Comparison of DOD and Commercial

industrial work to the private sector. subsystems, parts, and assemblies. In
Airline Purchasing Practices. With legislative constraints affecting recent
years, some depot maintenance

DOD's ability to close military workloads have become fragmented- that The
Defense Department (DOD) is facilities, privatization- in- place is not is,
some depot maintenance increasing its use of commercially likely to be used
outside the base workloads have shifted to nondepot available products and
services. In realignment and closure process. facilities-- leading to
uncertainty about response to congressional concerns

Three privatization- in- place efforts the magnitude of depot
maintenancetype about the pricing of spare parts for have resulted so far
from the base

capabilities, workforce military aircraft, GAO compared the closure process:
the Air Force requirements, and the distribution of purchasing and pricing
practices of Aerospace Guidance and Metrology work to public and private
sector commercial passenger and freight

Center in Newark, Ohio; the Naval facilities. In April, the Army sent
airlines with those of DOD. Airlines Surface Warfare Center in Louisville,
Congress a report on the proliferation use various practices to obtain spare

Kentucky; and the Naval Air Warfare of depot maintenance activities at parts
at reasonable prices. These

Center in Indianapolis, Indiana. These nondepot facilities. GAO determines
practices include analyzing prices, facilities primarily provide industrial
the extent to which the Army's report procuring competitively, using catalog
services for the military. This report (1) identifies the total amount of
depot prices, negotiating long- term assesses the status, the cost, and the

maintenance- type work done at local agreements, buying new surplus or
effectiveness of DOD's three maintenance facilities and the cost
reconditioned parts, and asking for

privatization- in- place actions. GAO (1) efficiency of such work in view of
the justifications of price increases. When determines how contractors are

reacting to falling workloads at these of them empty-- waiting to enter the
infrastructure deficiencies on both privatized facilities, (2) compares the
United States can back up for miles

sides of the border; about 77 percent of cost- effectiveness of the
privatizationin- during peak periods in the early to late

this amount is needed for wastewater place operations to the former
afternoon, and the idling trucks treatment. Since 1994, the United State
government- run operations, and (3) contribute to air pollution and safety

and Mexico have provided about $3. 1 identifies the impact of privatization

concerns in some major border cities. billion to address border

on excess capacity in DOD's industrial At the same time, crossings in remote

environmental infrastructure needs. infrastructure.

and less accessible areas along the The United States has contributed

border are underused and less about 80 percent of this amount. Many NSIAD-
00- 24, Dec. 14, 1999 (38 congested. Commercial traffic barriers exist to
overcoming the pages). International Trade: congestion at the U. S.- Mexico
border

environmental infrastructure problems Improvements Needed to Track and is
primarily caused by the high volume of border communities, key among Archive
Trade Agreements. of vehicles at ports of entry that must

them the lack of human capital to plan, be processed through facilities that
implement, and maintain International trade has become have physical and
technological environmental infrastructure and the increasingly important to
the U. S. limitations and cumbersome practices.

limited ability of communities to economy. Since 1990, U. S. exports
Federal, state, and local governments

obtain affordable financing to build have risen about 70 percent -- reaching
as well as binational groups have needed projects. The Border nearly $700
billion a year. The United responded to this situation with Environmental
Cooperation States has led the world in creating a

several initiatives. For example, ports Commission and the North American
system of open trade under accepted of entry and roads leading to the
Development Bank were created to rules, in which the reduction of trade
border have been improved, and address these impediments. However, barriers,
such as tariffs and import federal agencies have sought to these
organization's roles, particularly

quotas, would help provide greater integrate their inspection processes the
Bank's, are likely to continue to be market access for U. S. goods and for
commercial traffic and test new

limited unless there are changes in its services. The current administration
technologies for expediting loan rates, which have been has sought to build
on earlier efforts

commercial traffic. Likewise, unattractive or unaffordable for many by
negotiating several hundred binational mechanisms to encourage

border communities. Moreover, separate trade agreements since 1992 dialogue
and coordination have been binational efforts to deal with that are aimed at
opening markets and

created. However, facilities planning communities' needs are hampered by a
creating wider economic opportunities and port of entry operations take
place lack of a strategic plan that addresses for Americans. This report
examines in a complex political and economic

impediments. Given the current (1) the number of trade agreements
environment, so these efforts have infrastructure needs and the expected
that the United States is party to, (2) been unable to keep pace with the

population growth, infrastructure the way in which the executive branch
rapid increase in the volume of goods improvements along the border are
notifies Congress when trade crossing the border or to alleviate likely to
be limited unless some of the agreements are entered into, and (3)
congestion. key impediments are addressed. the extent to which the public
has ready access to information from NSIAD- 00- 26, Mar. 3, 2000 (63 pages).

NSIAD- 00- 27, Nov. 29, 1999 (20 government sources about trade U. S.-
Mexico Border: Despite Some pages). Defense Inventory: Inadequate
agreements. Progress, Environmental

Compliance With Controls for Excess Infrastructure Challenges Remain.

Firearms and Other Sensitive Items. NSIAD- 00- 25, Mar. 3, 2000 (73 pages).
U. S.- Mexico Border: Better Planning, Despite binational, federal, state,
and This is the fourth in a series of reports Coordination Needed to Handle
local efforts, communities along both on the Defense Department's (DOD)
Growing Commercial Traffic. sides of the U. S.- Mexico border procedures for
controlling excess

continue to face environmental items. GAO reported earlier on DOD's
Increased commercial truck traffic and infrastructure problems. According to
needless destruction of usable aircraft the resulting congestion at some a
1999 assessment, 12 percent of the parts, on inappropriate sales of parts

border crossings between the United border population lack access to with
military technology and flight States and Mexico, particularly older potable
water, 30 percent lack access safety risks, and on items not being crossings
that were built in downtown to wastewater treatment facilities, and properly
controlled during shipment to areas such as Laredo and El Paso, 25 percent
lack access to solid waste disposal. (See GAO/ NSIAD- 98- 7, Oct. Texas,
have taxed border community disposal facilities. An estimated $3. 2 1997,
GAO/ NSIAD- 98- 182, Aug. 1998, infrastructure. Lines of trucks-- many
billion is needed to correct these and GAO/ NSIAD- 99- 84, July 1999.) In

this report, GAO found that internal that will allow them to locate friendly
of its reporting of costs for contract control procedures designed to
protect and enemy soldiers and improve services. firearms, items with
national security communication with higher implications, and
pharmaceuticals commands. The system is comprised NSIAD- 00- 30, Jan. 26,
2000 (30 were not always followed at three of of a computer/ radio, weapon,
and

pages). Defense Inventory: the seven defense components GAO helmet- mounted
display eyepiece that Opportunities Exist to Expand the Use visited. Instead
of being separated,

are linked together for sending of Defense Logistics Agency Best key duties
in the areas of transport,

messages (voice and data) and Practices. destruction, and record keeping
were imagery between soldiers and other done by the same person. Required
battlefield systems. It also includes GAO is required to evaluate the extent
certifications that sensitive excess

protective clothing, body armor, and a to which the Defense Logistics Agency

items were actually destroyed were carrying harness to support the weight
has implemented best commercial missing. Also, serial numbers were not of
the equipment. GAO found that the

inventory practices in a schedule sent always recorded on shipping system
will not be fielded by to Congress in May 1998. A best documents as
required. For example, September 2000 because crucial commercial inventory
practice is a

GAO was unable to track what technologies could not be developed in practice
that enables the agency to happened to three items slated for

time. The estimated cost to acquire reduce inventory levels and hold down

disposition: a digital computer used for 34,000 units has risen from $1.4
billion costs while improving the defense countermeasures on the E- 2

to $2. 1 billion. Oversight of the Land responsiveness of the supply system
to aircraft, a high- power simulator used Warrior program has been lax. GAO

users' needs. This report evaluates (1) to test early warning systems on
found that oversight responsibility in the agency's progress in implementing
aircraft, and 18 computers used to the Army remained unchanged despite the
initiatives and (2) the opportunities guide MK- 46 torpedoes to a target.
development problems that threatened to build on and expand existing
efforts. DOD guidance requires that excess

to lengthen the acquisition schedule firearms and pharmaceuticals be and the
inability of system prototypes NSIAD- 00- 31, Dec. 17, 1999 (44 destroyed
and removed from inventory

to pass certification tests. At present, pages). Agent Orange: Actions
Needed records by coding the transactions as

Land Warrior will not operate with a to Improve Communications of Air
"inventory decreases associated with key digitized battlefield system. Force
Ranch Hand Study Data and the destruction of the item." However, Moreover,
the Land Warrior Program

Results. the military has been removing these has not solved technical and
human items from inventory records by factor problems that may render the
During the Vietnam War, the United describing these transactions as "items
system ineffective. These problems States sprayed herbicides, including
being shipped to a disposal office." include overweight equipment, Agent
Orange, over large areas of None of the items were actually inadequate
battery power, poor loadcarrying

jungle terrain. In the late 1970s, shipped to a disposal office, but were
design, and electromagnetic

concerns began to emerge about the instead destroyed or disposed of by
interference.

long- term health problems of Vietnam the defense components that had the
veterans who had been exposed to items. Weak management oversight

NSIAD- 00- 29, Oct. 13, 1999 (19 these chemicals. Several herbicides, and
computer programming errors pages). Contract Management: DOD

including Agent Orange, contain contributed to these transactions Begins New
Effort to Improve dioxin, which is known to cause health being incorrectly
recorded. For Reporting of Contract Service Costs. problems in animals. One
key effort to example, during a 12- month period, examine the long- term
health effects the disposition of nearly $99 million of Although the
military is increasing its

of soldiers' exposure to herbicides in firearms and pharmaceuticals was
reliance on contractor support, longstanding Vietnam is an ongoing Air Force
study incorrectly recorded in DOD's

concerns still exist about the known as the Ranch Hand Study. This

inventory records. accuracy and the reliability of its study follows the
health and death

accounting for the costs of contract rates of the Ranch Hands-- the nearly
NSIAD- 00- 28, Dec. 15, 1999 (28 services, particularly advisory and 1, 300
Air Force personnel who sprayed

pages). Battlefield Automation: Army's assistance services. Congress has

herbicides from the air in Vietnam-- in Restructured Land Warrior Program

raised concerns that the absence of contrast to those of a comparison Needs
More Oversight. accurate and reliable data may hamper group. The 25- year
study, which began

oversight. This report discusses the in 1982 and is scheduled to end in
2006, The Land Warrior Program is the

actions taken by the Defense is estimated to cost more than $140 Army's
effort to equip soldiers on the Department to improve the accuracy

million. GAO found that the Air Force battlefield with digitalized systems
has conducted many aspects of the

Ranch Hand Study in a rigorous causes, the course of development, agreements
to the military services manner and that several early and the treatments of
Gulf War

and other defense agencies in 1996. problems in study conduct have been
veterans' illnesses remain unanswered.

This report discusses (1) the extent to remedied. However, several veterans
GAO found that the activities of the

which DOD has used Section 845 groups and scientists are critical of the
Office of the Special Assistant are not agreements, (2) the benefits
reported study's methods and results and want effectively coordinated with
those of from their use, (3) how DOD tailored greater access to study data.
In GAO's

the Research Working Group. Also, these agreements to address issues view,
making all study data publicly work was improperly awarded to the normally
governed by standard available would increase the Office's support
contractors for tasks

contract provisions, and (4) recent credibility of the study's results.
Also, worth more than $20 million. GAO DOD efforts to provide additional
without full access to data, outside

summarized this report in testimony guidance on their use. scientists cannot
perform alternative before Congress; see: Gulf War or additional analyses
that would Illnesses: Basic Questions

NSIAD- 00- 34, Nov. 22, 1999 (10 facilitate scientific debate over the
Unanswered, by Kwai- Cheung Chan, pages). Defense Logistics: New 120- merits
of the Air Force's

Director of Special Studies and mm Tank Training Round Procurement
methodologies and analyses. The Air Evaluations, before the Subcommittee
Will Result in Savings. Force expects to make all current on National
Security, Veterans' Affairs, study data publicly available by 2006,

and International Relations, House The Army could save about $52 million but
those interested in the data say

Committee on Government Reform. over five years if it exercises all that
unless the data is available in a GAO/ T- NSIAD- 00- 79, Feb. 2 (nine
contract options for the procurement more accessible format, such as a
pages). of 120- mm tank training ammunition. compact disc or the Internet,
they

The Army expects to save the money would have difficulty using it.

NSIAD- 00- 33, Apr. 7, 2000 (55 pages). by negotiating a decrease in price
per Moreover, although communication of Acquisition Reform: DOD's Guidance
round from the 1995 to 1999 multiyear study limitations to the public has

on Using Section 845 Agreements contracts. However, a decision by one
improved over the years, more Could be Improved.

of the contractors to use a propellant improvements are possible. GAO
producer other than the Radford Army believes that publicly accessible To
meet the national security Ammunition Plant the Army's only documents, such
as executive

challenges of the 21st century, the government- owned, contractor- run
summaries and press releases, should

Pentagon is funding a vast array of propellant production facility cut
contain more information on the research and development projects to
Radford's propellant business by 50 study's limitations. Also, GAO notes
exploit emerging technologies,

percent for the tank training round that problems remain with the

produce start- of- the- art weapons program. To absorb the higher outreach
of the Advisory Committee (a systems, and improve the capabilities

overhead costs resulting from the loss panel of nine scientists who oversee

of existing weapons systems. Congress of business, the contractor at Radford

the study and independently review its and the Defense Department (DOD)

negotiated price increases for findings) to veterans.

have raised concern that government propellant with the Army for two new
procurement requirements inhibit the contracts totaling at least $14
million. NSIAD- 00- 32, Jan. 6, 2000 (59 pages). military's ability to take
advantage of Also, the contractor cut its workforce

Gulf War Illnesses: Management technological breakthroughs in the at Radford
by 185 people. At the same Actions Needed to Answer Basic private sector and
could boost the cost time, the loss of propellant work does Research
Questions. of goods and services that DOD

not affect Radford's ability to meet its acquires. Section 845 of the
National wartime replenishment mission. The Departments of Veterans'
Affairs, Defense Authorization Act for Fiscal Health and Human Services, and

Year 1994 gives the Defense Advanced

NSIAD- 00- 35, Oct. 8, 1999 (38 pages). Defense (DOD) spent more than $121
Research Projects Agency-- the Foreign Assistance: North Korea million
during fiscal years 1997 and military's central research and

Restricts Food Aid Monitoring. 1998 to research and investigate the
development organization-- the illnesses of Gulf War veterans. DOD

authority to enter into agreements for U. S. policy is that no food aid will
be spent $112 million of this amount,

prototype projects using nonstandard provided to North Korea unless the aid
mostly through its Office of the Special

contracting approaches, known as can be adequately monitored. The Assistant
for Gulf War Illnesses. The

"other transactions," that are generally World Food Program has established
results of the research and the

not subject to federal procurement procedures to track and monitor food
investigation efforts are accruing laws and regulations. Congress aid
deliveries in North Korea. slowly, and basic questions about the expanded
the use of Section 845 However, the North Korean

government has not allowed the World needed data into the system. As a

improve the management and Food Program to fully implement its result, DOD
could lack data on adverse implementation of the Foreign Military procedures
and, as a result, it cannot reactions that is important for Sales Program.
This report evaluates

be sure that the food aid is being monitoring vaccine safety. DOD has (1)
whether the program has fully shipped, stored, or used as planned.

used a high- visibility campaign to recovered its administrative costs, (2)
Specifically, the North Korean educate servicemembers about the

the Defense Security Cooperation government, which controls food program and
has tried to address the Agency's basis for making distribution, has denied
the World

controversy surrounding the program. administrative account adjustments,
Food Program full access to the food In addition, it recently expanded its

and (3) the effectiveness of various distribution chain and has not
communications efforts by updating

foreign military sales reinvention provided reports on food use. the
program's Internet site, opening a efforts in terms of cost recovery.
Consequently, the World Food

toll- free anthrax hotline, and forming a Program cannot be certain that it
is speakers' bureau of anthrax experts.

NSIAD- 00- 39, Feb. 22, 2000 (36 reporting accurately on where food However,
a GAO survey of four pages). Defense Inventory: Plan to donated by the U. S.
government is military installations found that Improve Management of
Shipped being distributed in North Korea. GAO servicemembers wanted more
Inventory Should Be Strengthened. summarized this report in testimony
information on some issues. More than before Congress; see: Foreign

two- thirds of survey respondents said The military, which ships inventory
Assistance: North Korean Constraints

that the information they received on worth billions of dollars to various

Limit Food Aid Monitoring, by the reasons for the program, shot locations
around the world each year, Benjamin F. Nelson, Director of requirements and
schedules, and has had long- standing problems International Relations and
Trade

consequences of refusals was at least tracking this inventory from origin to
Issues, before the House Committee

moderately helpful. However, more destination. Concerns about the on
International Relations. GAO/ TNSIAD- than half of the servicemembers said

vulnerability of this inventory to waste, 00- 47, Oct. 27 (10 pages). that
they received either no fraud, and abuse prompted Congress information on
possible long- term side to pass legislation requiring the NSIAD- 00- 36,
Oct. 22, 1999 (54 effects and procedures for reporting

Defense Department to prepare a pages). Medical Readiness: DOD

side effects or found that information comprehensive plan for tracking Faces
Challenges in Implementing Its

less than moderately helpful. inventory while it is being shipped. Anthrax
Vaccine Immunization

DOD refers to these shipments as "intransit Program. NSIAD- 00- 37, Nov. 22,
1999 (39

inventory." DOD's plan is pages). Foreign Military Sales: Efforts required
to include steps to address As of July 1999, the Defense

to Improve Administration Hampered these tracking problems, statements of
Department (DOD) has vaccinated by Insufficient Information. objectives for
the actions, and more than 315,000 servicemembers performance measures and
schedules. against anthrax, but supply problems

Foreign military sales are an important The plan must also identify any
continue to jeopardize its schedule for

part of the U. S. security assistance resources needed to implement the
vaccinating all 2.4 servicemembers.

program and also represent a key required actions, along with an Moreover,
DOD lacks a contingency Defense Department (DOD) estimate of annual costs.
This report plan in the event that these problems acquisition strategy to
help lower the determines whether the plan (1) are not resolved in time. DOD
has a unit costs of weapons systems. The

responds to the law's provisions, (2) new recording and tracking system for
Arms Export Control Act provides

contains the management elements vaccinations that is better that the one
several ways to price defense goods needed to guide effective used during
the Gulf War and in and services transferred under the implementation , and
(3) adequately Bosnia, but DOD has not been Foreign Military Sales Program,

addresses other underlying consistently recording vaccination including
actual value, replacement weaknesses that led to the ineffective data in
paper records and in its central value, and full cost, and requires that

control of inventory shipments. database. DOD has used information DOD
recover the full estimated cost of from the Vaccine Adverse Event
administering such sales. In response

NSIAD- 00- 40, Mar. 15, 2000 (38 Reporting System to monitor adverse to
budget pressure from declining pages). Cooperative Threat reactions to
anthrax vaccinations. The sales and customer complaints about

Reduction: DOD's 1997- 98 Reports on system relies on medical personnel
program inefficiencies, the Defense

Accounting for Assistance Were Late and troops to provide needed data.

Security Cooperation Agency, which and Incomplete.

However, DOD has not systematically runs the program, and the military told
these personnel how to enter services have begun several efforts to

The Defense Department has been computing performance for which activities,
such as meetings with authorized to spend nearly $3. 2 billion

export licenses would be required. potential contractors to explain

on its cooperative threat reduction Congress required the executive

program requirements, are needed. program since 1992. This program is

branch to issue a report justifying the Work descriptions for most orders
intended to help the states of the proposed change to export controls on

GAO reviewed defined tasks broadly. former Soviet Union (1) destroy their
computers. This report determines (1) As a result, the orders did not
establish weapons of mass destruction, (2) whether the executive branch's
July

fixed prices for the work but provided safely store and transport these 1999
report to Congress satisfied the for reimbursement of contractors' weapons
in connection with their requirements of the law; (2) whether costs. Also,
several broadly defined destruction, and (3) reduce the risk of the report
was factually supported;

orders were later defined by solesource their proliferation. Most of the and
(3) how many high- performance work orders. assistance takes the form of
goods and

computers at the current control levels services, including equipment, have
been approved for export to

NSIAD- 00- 60, Mar. 7, 2000 (72 pages). logistics support, training, and
sensitive countries, such as Russia and Military Personnel: Systematic
integrated project management. To China, and how many have been Analyses
Needed to Monitor Retention help guard against the possibility that approved
for export since 1997 to in Key Careers and Occupations. recipient states
could misuse this

military or other sensitive end- users. assistance, Congress requires DOD to

Although concerns about military report annually on its efforts to NSIAD-
00- 56, Mar. 20, 2000 (35 retention problems have increased account for the
assistance and ensure pages). Contract Management: Few

considerably in recent years, few its proper use. So far, DOD has sent

Competing Proposals for Large DOD studies have been done to Congress five
reports on cooperative

Information Technology Orders. systematically assess whether threat
reduction assistance. DOD was reductions in retention have occurred 16
months late in submitting its 1997 The government buys billions of in all of
the military services, whether

report to Congress and more than 10 dollars' worth of information across-
the- board or targeted policy months late in submitting its 1998

technology products and services each initiatives are needed, and whether
the report. The delays were primarily due year, with the military meeting a
large initiatives have been effective and to DOD's prolonged review of the
draft part of its information technology yielded the greatest return on
reports and the relatively low priority needs through task- and delivery-
order investment. Recent efforts by the that officials placed on the
reports' contracts. Concerns have been raised Defense Department to
establish timely submission. GAO also found that federal agencies had
avoided

standard data and measures and to that DOD did not provide complete
competition when ordering under such monitor retention trends have begun and
accurate information in its 1997 contracts. In response, Congress to fill
this information gap. However, and 1998 reports, and the 1998 report
mandated that agencies consider GAO believes that further systematic lacked
information on Russia's arsenal

awarding multiple contracts rather assessments of military retention are of
tactical nuclear warheads. than a single contract when planning a

needed on a systematic basis to help task- or delivery- order contract. GAO
ensure that accurate and timely NSIAD- 00- 45, Nov. 5, 1999 (31 pages).
reviewed orders valued at more than information is available to Congress.

Export Controls: Statutory Reporting $5 million that the Defense Having such
information available on a

Requirements for Computers Not Fully Department awarded between October
regular basis can help decisionmakers

Addressed. 1997 and December 1998; most of the

to identify problems early on and tailor orders involved information policy
initiatives to areas that need it The U. S. government controls the
technology services for ongoing the most. export of high- performance
computers

military programs. Most of the 22 large to some countries because of foreign
orders GAO reviewed were awarded NSIAD- 00- 63NI, Feb. 25, 2000 (40 policy
and national security concerns.

without competing proposals having pages). Military Capabilities: Focused
The Commerce Department considers been received. Agencies often used
Attention Needed to Prepare U. S. a high- performance computer to be the
statutory exceptions to the fair Forces for Combat in Urban Areas.

one that exceeds a defined opportunity requirement. Moreover,

performance threshold, thus requiring contractors often did not submit
Throughout history, urban military an export license. In a July 1999 report,
proposals when given a chance to do operations have been some of the most
the executive branch described its so. Contractor representatives said
dangerous and costly types of military

plans to change the controls on the that if program officials were
operations. Sieges of cities can result exports of high- performance
interested in receiving competing in high numbers of deaths among both

computers by increasing the level of proposals, then more outreach soldiers
and civilians and can

extensively damage critical facilities countries where the potential for U.
S. the projected armored threat and the and support services. Military
planners

urban operations appears greatest. projected quantity of all antiarmor

expect that future adversaries will try weapons, whether fielded or in to
draw U. S. troops into dense urban

NSIAD- 00- 64, Mar. 21, 2000 (44 development, with the goal of areas to
counter the superior pages). Combating Terrorism: Need to eliminating excess
antiarmor forces. firepower, mobility, and other combat Eliminate Duplicate
Federal Weapons

The plan was sent to Congress in advantages that U. S. forces enjoy in of
Mass Destruction Training. August 1999. This report reviews the open
terrain. Nearly 14, 000 U. S. troops plan to determine whether it provides
are now deployed in urban areas, The bombings of the World Trade

the data and analyses needed to (1) mostly in Bosnia and Kosovo. To Center
in New York in 1993 and the

identify excess antiarmor weapons address the complexities and Alfred P.
Murrah federal building in now in the inventory or under challenges of urban
warfare, the U. S. Oklahoma City in 1995, along with the development and (2)
support current military services are updating their release of a nerve
agent in the Tokyo acquisition plans. urban doctrine to provide units with
subway in 1995, have heightened guidelines and techniques for carrying
concerns about terrorism in the United NSIAD- 00- 68, Mar. 14, 2000 (26 out
combat operations in cities.

States. Local emergency responders, pages). F- 22 Aircraft: Development
However, joint experimentation- which

such as firefighters, police officers, Cost Goal Achievable If Major is
designed to systematically and emergency medical personnel, will Problems
Are Avoided. evaluate what new doctrine,

be the first to respond to a terrorist organizations, and equipment are
incident. The Departments of Defense The F- 22 aircraft has advanced needed
for urban operations-- has not and Justice and the Federal features that
make it more difficult to taken place because plans have not Emergency
Management Agency are detect, is capable of high speeds for

been fully funded. Joint the principal federal organizations that long
ranges, and is equipped with experimentation would complement provide
weapons of mass destruction

integrated aviation electronics that individual service efforts by
identifying

training to these first responders. greatly improve the pilots' awareness
shortfalls in capabilities the services Federal training programs on weapons

of their surroundings. Since the start of need to effectively fight
together. The of mass destruction are poorly the F- 22 development program
in 1991, services are concentrating their urban

coordinated, resulting in inefficiencies the Air Force's cost estimates to
training on individual soldiers and

in the federal effort and concerns in develop the aircraft have increased.
small units, such as squads, platoons, the first responder communities.

Congress set a cost limitation of $18. 6 and companies. However, the
services Efforts are under way to improve the

billion for the program in 1998. This have yet to conduct urban training
federal government's role in weapons

report, which updates a GAO study jointly, even though the Defense of mass
destruction training, but issued last year (GAO/ NSIAD- 99- 55, Department
has emphasized that most actions are needed to eliminate

Mar. 1999), assesses the extent to military operations, such as those in
duplicative training and improve the which the F- 22 development program the
Balkans, are likely to involve

efficiency of programs offered by the is meeting its performance, schedule,
multiple services. Moreover, although

Departments of Defense and Justice. and cost goals. GAO also discusses the
services plan to build new urban

whether the Air Force is likely to training facilities, they have not fully
NSIAD- 00- 67, May 8, 2000 (24 pages). complete the development program as
coordinated their plans. Service Defense Acquisitions: Antiarmor planned
without exceeding the officials acknowledge that many of the Weapons Master
Plan Does Not

congressional cost cap. existing facilities do not realistically Identify
Potential Excesses or Support represent the full range of challenges,
Planned Procurements. NSIAD- 00- 69, Mar. 1, 2000 (16 pages). such as medium
and tall buildings, that Depot Maintenance: Future Year U. S. forces are
likely to encounter. Congress has raised concerns that the Estimates of
Public and Private Also, U. S. forces now lack adequate Pentagon continues
to procure an Workloads Are Likely to Change. information with which to plan
and

increasing number of tank- killing conduct urban operations because the
weapons at a time when potential GAO analyzed the military intelligence
community has assigned adversaries are using smaller armored departments'
estimates of their urban warfare a low priority. forces. Congress has also
questioned funding used for depot maintenance Shortfalls in urban
intelligence, whether current antiarmor acquisition work to be done by the
public and

including detailed information on city plans are appropriate and has
directed private sectors during fiscal years transportation, communications,
the Defense Department (DOD) to 1999- 2005. By law, the funding for
utilities, and other facilities, are develop an antiarmor munitions

work done by the private sector in a especially important for developing
master plan. The plan should identify given year may not exceed 50 percent

of the total. GAO found that future levels are identified for appropriate
for two projects approved for estimates provide a rough idea of the
monitoring and treatment. Some solicitation and that the analyses for split
between the amount of funding veterans had not been contacted by the
remaining 12 projects were used for public and private sector the Defense
Department or the incomplete, inaccurate, or depot maintenance workloads.

Department of Veterans Affairs to inconsistently prepared. After making
However, the data has significant arrange an appointment at a medical
adjustments to provide consistency, limitations because of errors, the
facility, had not received the required considering all project costs under
inherent nature of budget estimates, urine test, and had been unable to both
options, and correcting other and potential management actions that
understand the test results. The

errors, GAO found that over the life of were not considered. As a result,
military has developed depleted the projects the privatization option,
actual data will likely differ uranium safety training, which on average,
would be about 11 percent significantly from the estimates. Given instructs
soldiers on how to identify

less costly than comparable projects available information, the likely and
safely deal with depleted uranium

financed with military construction changes reflect a greater use of the
contamination. However, GAO's

funds. DOD has made progress in private sector. This is particularly the
review of general awareness training coordinating this effort with other
case with the Air Force, where

at 17 Army units found that the housing options, such as housing management
actions or additional required training was not provided to allowances and
military construction, waivers will be needed to meet the 50percent all
troops. Moreover, because neither by increasing the use of
crossorganizational

statutory cap. the Army nor the Marine Corps panels that review and monitor
depleted uranium training for

coordinate housing policies and issues.

NSIAD- 00- 70, Mar. 29, 2000 (35 deployments, they were unable to say

However, it has yet to finalize an pages). Gulf War Illnesses: whether
troops recently sent to overall integrated housing strategy for
Understanding of Health Effects From Kosovo, where depleted uranium
addressing its housing needs in a Depleted Uranium Evolving but Safety
munitions were used, had received

timely manner that considers the Training Needed.

depleted uranium training. interrelationships among these options, as
directed by Congress and The Persian Gulf War saw the first ever NSIAD- 00-
71, Mar. 30, 2000 (66 recommended by GAO. use of armor- piercing munitions
and

pages). Military Housing: Continued reinforced tank armor that relied on
Concerns in Implementing the

NSIAD- 00- 72, July 25, 2000 (90 depleted uranium, a low- level
Privatization Initiative. pages). Defense Management: Actions radioactive
heavy metal. Concerns

Needed to Sustain Reform Initiatives have been raised about whether The
Defense Department (DOD)

and Achieve Greater Results. exposure to depleted uranium could estimates
that about 200,000 units that have been a source of illness in house
military families are old, lack The Department of Defense (DOD) has
returning Gulf War veterans. GAO

modern amenities, and need to be made progress in implementing the found
that the scientific understanding renovated or replaced. To improve

many initiatives included in the of the effects of depleted uranium on
housing conditions more economically Defense Reform Initiative announced
human health is still evolving. For and faster that could be done using in
November 1997. Initiatives

example, an evaluation of 29 Gulf War traditional military construction
funds, completed or likely to be completed on

veterans who had among the highest DOD began a five- year pilot program in
schedule include organizational exposure to depleted uranium found 1996 to
allow private sector financing, streamlining, military pay increases, that
none of them showed any adverse ownership, and operation of military
purchase cards, performance kidney effects. However, most

housing. GAO found that although contracts, Defense Information System
veterans with embedded fragments initial plans for housing privatization

Agency center consolidations, and the continued to have elevated uranium
were aggressive, actual progress has demolition and disposal of excess
levels in their urine. Additional studies been slow. Nearly four years after
the

facilities. Areas in which initiatives are underway to more fully understand
program was begun, DOD has awarded have made some progress but are the
health effects of depleted uranium

only two privatization contracts to behind schedule include competitive
exposure and to better estimate the build or renovate about 3, 000 housing
sourcing, paperless contracting, travel amount of exposure received by Gulf
units for military families. A GAO reengineering, electronic malls, and War
veterans. Some Gulf War veterans review of the two privatization household
goods transportation. have had difficulty fully participating projects
already awarded and 12

Initiatives that will require many years in the medical screening program
additional projects approved for to fully implement include acquisition
created to help ensure that veterans solicitation found that the military
did

reform, financial management reform, with higher than normal uranium not
prepare a life- cycle cost analysis and logistics transformation. DOD

officials had hoped initially that more closely to ensure that Instead, many
of these technologies- such

savings from the Reform Initiative management directives are carried out; as
avionics, flight systems,

would help yield significant amounts (4) monitoring and evaluating the
manufacturing and producibility,

for weapons modernization in fiscal implementation of the Banks' projects;
propulsion, supportability, and

year 2001. Because most initiatives are and (5) better disseminating and
weapons delivery systems-- will only be long- term efforts that require
communicating information on its

demonstrated in laboratory or groundtesting significant up- front
investments to anticorruption efforts, both within the

environments. Therefore, these implement, however, it could take Bank and in
borrowing countries.

critical technologies will be at low years before the investments are offset

However, challenges remain and levels of technical maturity when the

and net savings begin to accrue. The additional action will be required
engineering and manufacturing Reform Initiative could be more before the
Bank can provide development contract is schedule to effective if the
Defense Management

reasonable assurances that project be awarded. To demonstrate DOD's Council
would work collaboratively to money is being spent according to the

commitment to acquisition reform, foster Department- wide solutions,

Bank's guidelines. Overcoming some follow best commercial practices, and
establish reform priorities, and exert of these challenge, particularly in
reduce the risk of future cost growth, authority to make key decisions. At
building borrower managerial capacity

the program should focus on risk present, DOD has not implemented

for implementing the Banks' projects, reduction efforts by maturing critical
GAO's recommendations concerning will be onerous and will require a longterm

technologies before entering an integrated strategy, investment effort
because corruption and engineering and manufacturing plan, and funding
targets. weak management are often endemic

development and it should be allowed to the economic development

to do so without the penalty of NSIAD- 00- 73, Apr. 6, 2000 (57 pages).
environment in which the Bank withdrawal of funding support. World Bank:
Management Controls operates. Stronger, but Challenges in Fighting NSIAD-
00- 75, Apr. 26, 2000 (18 Corruption Remain. NSIAD- 00- 74, May 9, 2000 (30
pages).

pages). Defense Acquisitions: Need to Joint Strike Fighter Acquisition:
Revise Acquisition Strategy to Reduce The World Bank lends billions of
Development Schedule Should Be Risk for Joint Air- to- Surface Standoff
dollars each year to help countries

Changed to Reduce Risks. Missile. overcome poverty and promote economic and
social progress. The The key objective of the Joint Strike Since the
inception of the Joint Air- toSurface Bank, however, operates in an Fighter
acquisition strategy is Standoff Missile Program, the environment in which
countries often

affordability-- reducing the development schedule has lengthened lack
openness and accountability and development, production, and

from 56 months to 78 months, and total corruption sometimes flourishes. The
ownership costs of the program

program costs have risen from $1. 6 Bank faces the challenge of both
relative to earlier fighter aircraft

billion to $2. 1 billion. In the most providing development assistance
programs. The Pentagon expects the recent extension of the program's under
such conditions while also Joint Strike Fighter acquisition

development schedule, approved in exercising its fiduciary responsibility,
strategy to save nearly $18 billion in November 1999, the Air Force added
including minimizing corruption in the development costs. To achieve these
10 months to the missile's development projects it finances. To combat
savings, the program has incorporated schedule and increased program costs
corruption, the Bank has undertaken various military and commercial by about
$90 million. Factors leading an ambitious and systematic effort to
acquisition initiatives into the

to the schedule delay included prime identify and correct key weaknesses in
acquisition strategy. However, the and subcontractor changes to missile its
management controls. The Bank program's implementation of the design to (1)
correct problems

has made significant strides in meeting acquisition strategy will not
guarantee

discovered during testing, (2) lower each of the five standards of an that
the Joint Strike Fighter program production costs, or (3) improve effective
management control system, will enter the engineering and

performance. Program officials said including (1) strengthening internal
manufacturing phase with low that contractors underestimated the oversight
mechanisms, project

technical risk. The planes being time and the personnel needed to
management, and public institutions in

produced during the concept design the missile and prepare for borrowing
countries; (2) focusing demonstration phase are not intended production. The
Air Force used more attention on assessing the risks to demonstrate many of
the acquisition reform strategies, such as associated with the corruption
and the technologies considered critical for using technologies already
proven in weak managerial capacity of its

achieving Joint Strike Fighter program other systems and establishing a cost
borrowers; (3) supervising its projects cost and performance requirements.
goal as an independent requirement,

which helped to reduce overall to handle their monitoring and been
unacceptable to two of the states development time and costs. However,
enforcement workloads. where the chemical stockpile is the program is still
vulnerable to located. Also, the proposed method of significant cost
increases and schedule

NSIAD- 00- 78, Apr. 25, 2000 (14 destruction has not been proven safe delays
because the design of some pages). Unmanned Aerial Vehicles: and effective
and accepted by state components is not yet stable. Also, the

Progress of the Global Hawk and local communities. The Army has contract's
missile production prices Advanced Concept Technology experienced
significant problems in assume that production will start by a

Demonstration. recent years in effectively managing specific date, even
though there is no the use of funds set aside for the guarantee that the
missile will be ready The Defense Department (DOD) has chemical
demilitarization program. for production by then. GAO

built five prototype Global Hawk Effective management of the program
recommends that the Air Force revise reconnaissance aircraft as part of an
has been hindered by its complex its acquisition strategy for the Joint

advanced concept technology management structure and poor Air- to- Surface
Standoff Missile demonstration. The goal of the

coordination among program offices Program to move away from an
demonstration is to determine whether and with state and local officials.
Also, arbitrarily set production date to one

the concept works as an Air Force coordination and communication

that is tied to the certainty that the reconnaissance aircraft before the

among officials responsible for aspects missile design is stable, the
missile can

military decides to acquire a of the program have fallen short, meet
performance requirements, and production version of the plane. In causing
confusion about what steps the production line can produce the

response to congressional concerns would be taken at certain sites.

needed missiles. about the cost of the Global Hawk, GAO reviewed the
demonstration. This NSIAD- 00- 81, May 18, 2000 (47 NSIAD- 00- 76, Mar. 14,
2000 (75 report discusses (1) whether the pages). Defense Acquisitions:
pages). International Trade: Strategy average unit flyaway price for the 10
Improvements Needed in Military Needed to Better Monitor and Enforce Global
Hawk production aircraft Space Systems' Planning and

Trade Agreements. numbered 11 through 20 will be within Education.

DOD's price goal of $10 million each in The United Stated has entered into
fiscal year 1994 dollars; (2) the status The increasing use of military and
more than 400 trade agreements since

of the military user demonstration, commercial satellites for national the
early 1980s, most of which were including the extent to which the security
and business purposes will

intended to liberalize trade and Global Hawk has shown have significant
implications for the increase U. S. companies' access to reconnaissance
capabilities; and (3)

United States in the 21st century. The foreign markets. More than half of
DOD and Air Force plans to switch to a Defense Department (DOD) has these
agreements were signed formal acquisition program. In an traditionally used
satellite systems in between 1992 and 1998. Among them earlier report (GAO/
NSIAD- 99- 29, Dec. passive roles to support military were the far- reaching
1994 World Trade

1998), GAO concluded that DOD was operations-- for example, to collect

Organization agreements, which cover not making progress toward meeting
intelligence data, warn of ballistic about $1. 4 trillion in annual U. S.
trade its price goal for Global Hawk. missile launches, and to transmit
voice with 135 countries as well as and data communications. Today,
significant bilateral agreements with NSIAD- 00- 80, May 8, 2000 (87 pages).

plans are being developed to expand key trading partners, such as Japan
Chemical Weapons Disposal:

the use of military satellite systems and China. This report looks at the
Improvements Needed in Program and develop technologies, such as ability of
U. S. agencies to monitor and Accountability and Financial lasers and
electronic jammers, that enforce trade agreements. GAO (1) Management.

could be used to actively conduct identifies the federal structure for
warfare in space. With advances in monitoring and enforcing trade The Army
had destroyed about 17. 7 information technology, the agreements; (2)
describes the percent of the chemical weapons

commercial use of satellites is also increasing complexity of the federal
stockpile as of January 2000 and could

expanding, particularly in monitoring and enforcement task and

destroy about 90 percent of the telecommunications. This report key
activities that federal agencies

stockpile by the 2007 deadline set by reviews DOD's approach to must
perform; and (3) assesses the Chemical Weapons Convention. implementing the
U. S. Space whether the Office of the U. S. Trade

However, the Army may not meet the Command's 1998 long- range plan for
Representative, the Department of deadline for the remaining 10 percent

expanding military space systems. Commerce, and the Department of of the
stockpile because the

GAO evaluates the extent to which (1) Agriculture have the staff and support
incineration method of destruction has plans for expanding military space

systems conform to national and The federal government spent about GAO/ T-
NSIAD- 00- 98, Feb. 29 (12 defense space policies, (2) funding

$10 billion last year to combat pages). projections support planned military
terrorism. More than 40 federal space programs and desired departments,
agencies, and bureaus

NSIAD- 00- 88, Mar. 28, 2000 (20 capabilities, and (3) steps are being have
a role in fighting terrorism. Some pages). DOD Competitive Sourcing: taken
to educate military personnel to Members of Congress have questioned
Potential Impact on Emergency support future military space who is in charge
of U. S. efforts to Response Operations at Chemical operations. combat
terrorism, how the federal Storage Facilities Is Minimal.

government is organized to prevent

NSIAD- 00- 83, Mar. 8, 2000 (21 pages). and respond to a terrorist attack on
The Army maintains eight facilities in State Department: Overseas U. S.
soil, and how resources are being

the United States that store chemical Emergency Security Program allocated.
This report provides agents and munitions that are slated Progressing, But
Costs Are Increasing. information on (1) how other

for disposal in the next several years. governments are organized to combat
Some of these facilities also have other In the wake of the U. S. embassy

terrorism and (2) how they allocate responsibilities, such as ammunition
bombings in Kenya and Tanzania in

their resources. GAO focuses on storage, manufacturing, and

1998, Congress provided the State Canada, France, Germany, Israel, and
maintenance of chemical defense

Department with $1. 5 billion in the United Kingdom. equipment. Five of the
eight facilities emergency supplemental funding to are participating in an
Army study of strengthen security worldwide. GAO NSIAD- 00- 87, Feb. 29,
2000 (25 whether work now done by federal

found that State has made progress in pages). Defense Budget: Analysis of
employees could be done more cost implementing the program funded by Real
Property Maintenance and Base effectively by the private sector. As the
emergency supplemental Operations Fund Movements. part of this effort, the
Army is appropriation. State has reestablished conducting competitive
sourcing embassy operations in interim office Congress has raised concerns
about studies. Members of Congress,

buildings in Nairobi and Dar es Salaam the extent to which the military has
however, have raised concerns about and signed a contract to build new

moved funds that directly affect the impact of competitive sourcing on
embassy compounds. Projects to readiness, such as those that finance the
ability of the chemical storage relocate several other embassies and
training, to pay for real property facilities to respond to emergencies,
consulates are also underway. maintenance and base operations. such as an
accidental chemical release, However, the costs to build new

GAO found that from fiscal years 1994 and on manufacturing capabilities

embassies in Uganda, Croatia, and through 1999, the military reported
related to chemical and biological Qatar are about $45 million higher than
obligations that were $7. 1 billion (eight defense. This report discusses
(1) the

originally estimated, mainly because of percent) more for real property
Army's plans for competitive sourcing upgraded security requirements. State
maintenance and base operations than studies at the five facilities and the
has also made progress in the $88. 6 billion initially designated by extent
to which the emergency implementing many of its planned Congress. Nearly
three- fourths of the response of chemical defense security upgrades,
including enhancing $2. 7 billion increase from fiscal year industrial
positions are included in the vehicle inspection and security guard

1996 to 1999 went for base operations, competitive sourcing studies and (2)
programs, hiring additional special with the rest going to real property

the status of the Army's assessment agents and other security staff, and
maintenance. For fiscal years 1994

and GAO's assessment of how instituting a new surveillance through 1999, the
services' movement competitive sourcing would affect detection program
designed to identify of funds in and out of unit training emergency response
capabilities and hostile surveillance activities and

varied. The Army and the Air Force environmental permits associated with
potential attackers. However, major

have moved unit training funds to base the destruction of chemical agents
and construction upgrades to strengthen operations and real property
munitions. security at more than 100 posts are maintenance. GAO summarized
this over budget and behind schedule,

report in testimony before Congress;

NSIAD- 00- 89, June 23, 2000 (40 according to State. see: Defense Budget:
Visibility and pages). Defense Logistics: Actions Accountability of O& M
Fund Needed to Enhance Success of NSIAD- 00- 85, Apr. 7, 2000 (26 pages).
Movements, by Norman J. Rabkin,

Reengineering Initiatives. Combating Terrorism: How Five Director of
National Security Foreign Countries Are Organized to Preparedness Issues,
before the

Military logistics is an important and Combat Terrorism. Subcommittee on
Military Readiness, expensive job. The Defense House Committee on Armed
Services. Department (DOD) will spend about

$84 billion out of its $280- billion account and then disbursed to Russian
improve its general trade regime. This budget on logistics support this
year. seed institutes and a rural credit report describes (1) the status of
the

Even so, failing equipment and parts cooperative. Under pressure to meet
negotiations for China to join WTO, (2) shortages continue to be a problem.
planting dates in Russia, Agriculture the results of the negotiations DOD
has taken steps to reengineer its

Department officials bought the seed compared to U. S. objectives for these
logistics process, but many aspects of

through a noncompetitive, sole- source negotiations, and (3) trade and legal
its overall plan are incomplete, raising contract for $21. 7 million. This
considerations about granting China questions about whether or when the
decision forced the United States to permanent normal trade relations goals
of better service and lower costs

donate the seed to Russia rather than status. will be realized. It is too
early to assess finance its sale with a concessional the impact that
reengineering logistics

loan. Seed distribution in Russia did

NSIAD- 00- 95, Mar. 1, 2000 (19 pages). support will have on combat forces.
not follow the original plans, and

Global Health: Summary of Officials representing combat forces reasons for
changes were not fully

Conference on Immunization in have raised several concerns, documented. The
regional distribution Developing Countries. including the effect of having
large

of some seeds was not confirmed, and numbers of private contractors on or

there is conflicting information as to Although international efforts have
near the battlefield, the ability of what happened to these seeds. Some
boosted the percentage of children contractors to meet the surge seed
arrived in the regions too late to immunized against six serious diseases
requirements, and the effects of be planted, and Russian producers

to a global average of 80 percent, the contracting on the number of jobs
complained about a lack of technical immunization rates of many countries
available to military personnel information on food types and about fall far
below this average. Many returning to the United States from the delivery of
seed that was

countries also have yet to expand their overseas duty. Several factors, if
not

inappropriate for local growing immunization programs to include addressed,
could limit DOD's ability to conditions. The sale of the donated newer
vaccines that the World Health achieve its reengineering goals. These seed
to regional wholesalers and Organization (WHO) has

factors include the impact that use of government agencies in Russia raised
recommended for use in the sole- source, long- term contracts would about
$2. 6 billion-- about one- eighth of developing world. These shortfalls have
on anticipated reengineering what was paid to the sole source have serious
consequences: at least savings and the effects that existing contractors
that had shipped the seed four million children in developing laws and
policies would have on the

to Russian ports. countries die each year because they implementation of
reengineering lack access to vaccines, according to initiatives. GAO
summarized this NSIAD- 00- 94, Mar. 17, 2000 (21 WHO. In November 1999, GAO
report in testimony before Congress;

pages). World Trade Organization: convened a conference in Washington, see:
Defense Logistics: Integrated China's Membership Status and

D. C., to discuss immunization Plans and Improved Implementation Normal
Trade Relations Issues. problems in developing countries. Needed to Enhance
Engineering Participants included representatives Efforts, by David R.
Warren, Director China is the world's largest economy from multilateral
organizations, the of Defense Management Issues, before that is not subject
to the World Trade

U. S. government, private foundations, the Subcommittee on Military

Organization's (WTO) tradeliberalizing and the pharmaceutical industry. This
Readiness, House Committee on requirements. Since 1986,

report reproduces the conference Armed Services. GAO/ T- NSIAD- 00- 206,
China has been in negotiations to join agenda and summarizes the views June
27 (nine pages).

WTO. The United States has taken a expressed at the conference.

leading role in those negotiations, NSIAD- 00- 91, Mar. 9, 2000 (28 pages).
which have been taking place on two

NSIAD- 00- 97, May 26, 2000 (70 Foreign Assistance: Donation of U. S.
tracks-- bilateral and multilateral

pages). Weapons of Mass Destruction: Planting Seed to Russia in 1999 Had
negotiations-- during the past 14 years. DOD's Actions to Combat Weapons
Weaknesses.

The bilateral negotiations are intended Use Should Be More Integrated and to
secure China's commitment to

Focused. The United States donated 15, 000 remove market access barriers and
to metric tons of planting seed-- mainly open its domestic market to more In
response to the growing threat corn and pea seed-- to Russia in 1999.

foreign goods and services. The goal of posed by the proliferation of
nuclear, Under the Food for Progress

the multilateral negotiations is to biological, and chemical weapons, the
agreement, the donated seeds were to ensure that China will adopt all the
Pentagon announced its Defense be sold in Russia at market prices and rules,
practices, and obligations Counterproliferation Initiative in 1993. the
proceeds deposited in a special required by WTO agreements to The Initiative
calls for the

development of offensive and positions under A- 76 during fiscal

NSIAD- 00- 108, July 18, 2000 (67 defensive capabilities-- to include years
1997- 2005, an 11 percent pages). Defense Management: equipping, training,
and preparing U. S. reduction of the 229,000 previously Electronic Commerce
Implementation forces, in coalition with the forces of reported. GAO's work
continues to Strategy Can Be Improved.

friends and allies-- to prevail over show that, although savings are being
adversaries who are capable of achieved, DOD's savings estimates are Through
its Joint Electronic deploying weapons of mass overstated and that strategic
sourcing Commerce Program, the Defense destruction. This report describes
the

has added to uncertainties about the Department (DOD) expects to reduce
Defense Department's (DOD) efforts to

overall magnitude of savings. operating costs and streamline make the
nuclear, biological, and business processes. DOD faces several chemical
threat a matter of routine

NSIAD- 00- 107, Aug. 8, 2000 (49 implementation issues that, if not
consideration within its organization, pages). DOD Competitive Sourcing:
resolved, could undermine the success activities, and functions and
identifies

Savings Are Occurring, but Actions Are of the program. So far, DOD has not
other steps that DOD can take to Needed to Improve Accuracy of completed a
detailed plan to improve its implementation of the Savings Estimates.
implement its strategic vision. Officials

Initiative. GAO also examines the have been unable to draft a DOD- wide
actions of the interagency Available data indicated that DOD

implementation plan that is acceptable Counterproliferation Program Review
realized savings from seven of the nine to the military services and
agencies, Committee to coordinate the research

A- 76 (competitive sourcing) cases and the plan has been put on hold.

and development programs of DOD, reviewed, although less than the $290 DOD
has not developed a systemwide the Department of Energy, and the U. S.
million initially projected. Savings

electronic commerce architecture, intelligence community to identify and

occurred whether governmental which is needed to integrate the eliminate
unnecessary duplication. organizations or private contractors individual
parts or systems. If DOD won the competition. Baseline cost components
develop separate NSIAD- 00- 106, Aug. 8, 2000 (39 estimates from which
savings were architectures, they may be redundant pages). DOD Competitive
Sourcing:

estimated were usually calculated or unable to share information. DOD Some
Progress, but Continuing using an average cost of salary and

has not determined how best to Challenges Remain in Meeting benefits, rather
than using actual costs manage the electronic commerce Program Goals. for
the positions actually filled at the program, although it has established
time of the A- 76 studies. Moreover,

an office; however, the office's This report looks at the Defense

nonpersonnel costs, which were up to authority is unclear and its chain of
Department's (DOD) progress in 15 percent of the total, were not

command is cumbersome. Finally, implementing its A- 76 program, the

included in the baseline. Study and DOD has not fully implemented key impact
of DOD's strategic sourcing

implementation costs, which offset security measures that are needed.
initiative on achieving A- 76 program

savings in the short term, were not Electronic business- related initiatives

goals, and the extent to which DOD considered, nor was the fact that have
been or are being implemented. will achieve savings from A- 76 and

changes in work scope after the A- 76 Although the initiatives may improve
strategic sourcing. DOD has made competition can affect savings. Also,

aspects of the business processes, it is progress in implementing its A- 76
data limitations made it impractical to not yet clear if and how they will
fit program, but it has not advanced as

identify precise amounts of savings. into DOD's electronic commerce quickly
as initially expected. Its A- 76 Many of the cost estimates that are

architecture and support its strategic studies take longer than the expected
used in A- 76 studies will continue to be vision. average of 2 years to
complete.

estimated because DOD lacks a cost Because they could not identify
accounting system to provide actual NSIAD- 00- 109, June 23, 2000 (27
activities two positions to study under

costs. Further, reported savings from pages). Defense Inventory: Army A- 76,
most DOD components plan to A- 76 studies will continue to have Needs to
Strengthen and Follow use strategic sourcing to meet some of some element of
uncertainty and Procedures to Control Shipped Items. the goals previously
associated with imprecision and will be difficult to the A- 76 program.
However, so far only

track in the out years because This is one in a series of GAO reports the
Navy has identified specific workload requirements change, discussing the
vulnerability of the strategic sourcing goals that involve affecting program
costs and the

military's inventories to waste, fraud, the review of activities of about
42, 000 baseline from which savings are

and abuse. Because of long- standing positions. Because of Navy's shift to

calculated. weaknesses in controls over inventory strategic sourcing, DOD
plans to study shipments, the Defense Department's activities involving
about 25,000 fewer inventories are at high- risk for

undetected loss and theft. These planes that are similar to commercially in
promoting U. S. exports and the weaknesses also increase the risk that
available aircraft. Examples of aircraft

activities they carry out, (2) describes millions of dollars will be spent
using this kind of support include the the overall resources these agencies
unnecessarily. This report reviews the

C- 9 aeromedical evacuation aircraft devoted to export promotion in fiscal
Army's procedures for tracking and

and the KC- 10 tanker/ airlift aircraft. year 1999, and (3) isolates the

controlling spare parts and other Some high- cost, classified systems that
agencies' overseas resources devoted inventory items that have been are
produced in small quantities, such to export promotion during this

shipped from one location to another. as the U2 reconnaissance aircraft,
also period. GAO also describes how some GAO discusses (1) the extent to
which use this type of support arrangement. of these agencies participated
in a the Army can identify inventory lost These arrangements can yield cost
computer network that provides trade during shipment and (2) the Army's

savings because it is possible to share leads from developing countries to
adherence to procedures for

common parts support and other U. S. exporters.

controlling shipped inventory. costs, such as maintenance facilities and
personnel, with other public and

NSIAD- 00- 121, May 31, 2000 (30

NSIAD- 00- 114, June 14, 2000 (32 private sector users. The Air Force is
pages). Missile Defense: Schedule for pages). Army National Guard:

required to report to Congress on all Navy Theater Wide Program Should Be
Enhanced Brigade Readiness

Air Force programs that are now using Revised to Reduce Risk. Improved but
Personnel and Workload or plan to use a program the Air Force

Are Problems. calls Total System Performance The Navy Theater Wide system is
being

Responsibility or similar contractor developed to defend military and During
the last 25 years, the military

support programs. GAO discusses the civilian targets, including U. S. and
has come to rely increasingly on the

extent to which the Air Force's allied military forces in the field, Army
National Guard and other

February 2000 report (1) identified against attacks by medium- and longrange
reserve forces, which provide combat programs or systems using or planning
ballistic missiles while they are troops as well as a large percentage of to
use contractor support still outside the atmosphere. From the Army's
requirements in such arrangements, (2) supported the Air

1997 through 1999, Congress increased support areas as civil affairs, public
Force's view that the contractor funding for the program by 150 percent
affairs, quartermaster, transportation, support provides equal or superior
about $663 million over the $444 chemical, ordnance, and engineering.
warfighting capabilities, (3) identified million requested by the President.
The The enhanced brigades were the impact of such support purpose of the
increase was to help the introduced in 1993 to provide a flexible
arrangements on the government's

Navy to reduce technical risks and backup to Army units during wartime.
logistics depots and core government develop system technologies earlier GAO
reported in 1995 that the brigades logistics management skills, and (4)

than planned. Members of Congress were unable to meet readiness goals

identified process and criteria have raised concerns that, despite the under
a new training strategy. (See followed in determining whether

funding increases, the program was GAO/ NSIAD- 95- 91.) The National
government employees or the private viewed in 1998 by high ranking Guard
brigades continue to have

sector can do logistics management Pentagon officials and an independent
difficulty meeting training and

more cost- effectively. panel of experts as "high risk" because

personnel readiness goals, despite of technical challenges, such as
improvements in some areas. Officials

NSIAD- 00- 118, Apr. 10, 2000 (58 improving the system's ability to track

attribute these problems in meeting pages). Export Promotion: Federal and
destroy enemy ballistic missiles.

readiness goals to personnel shortages Agencies' Activities and Resources in
This report determines (1) how the

and too much to do in the time Fiscal Year 1999. additional funding provided
by available, although many problems Congress was used and (2) whether also
influence readiness. In addition,

U. S. businesses have increasingly significant risks to the program the Army
lacks an effective system for recognized during the last decade the

remain. assessing brigade readiness. benefits of competing in the
international marketplace. Exports as NSIAD- 00- 123, July 31, 2000 (34
NSIAD- 00- 115, Apr. 20, 2000 (30 a share of U. S. gross domestic product
pages). Defense Acquisitions: Prices

pages). Defense Logistics: Air Force rose from 6.4 percent in 1988 to 7.9 of
Marine Corps Spare Parts Have

Report on Contractor Support Is percent ($ 672 billion) in 1998. The U. S.
Increased. Narrowly Focused. government runs several programs to help
businesses promote their goods This is the first in a series of reports For
years, the Air Force has relied on and services overseas. This report (1)
examining price trends of spare parts contractors for logistics support for
identifies the federal agencies involved managed by the military. This
report

contains information on reparable with returning refugees and displaced
during fiscal years 1997 through 1999.

spare parts the Marine Corps uses to persons to their homes-- will take time
About 43,000 cases of spousal abuse

maintain ground combat and support to resolve. These problems will also and
26,000 cases of child abuse were equipment such as vehicles, radars,

require the continued security substantiated. Defense Department and radio
receivers. It addresses (1) presence provided by NATO- led (DOD) officials
estimate, however, that changes in the prices of reparable forces. Senior
Yugoslav, U. S., and

many incidents of spousal and child parts compared with the prices of NATO
officials said that several factors abuse go unreported. One key reason
similar items in the private sector and led to the Yugoslav decision to for
underreporting is that spouses fear the reasons for the price changes and
withdraw its security forces from that reporting abuse would harm the (2)
the accuracy of prices set by the

Kosovo, ranging from Yugoslavia's fear military member's career. Military
Marine Corps. Prices of the 703 parts of a NATO invasion to Russia's
dependents are afforded limited examined increased by an average of
diplomatic efforts. Because the United confidentiality in reporting spousal
or 14 percent over the four- year period States has important interests in
child abuse. A military dependent from fiscal year 1995 through 1999, Bosnia
and Kosovo, other issues seeking counseling cannot be certain

while prices for similar items sold in become relevant to the deployment of
that the information provided will

the private sector dropped by 0. 2 U. S. military forces there, such as the
remain confidential. DOD officials said percent. During the four- year
period,

costs of U. S. military and civilian that commanders are held accountable
prices fluctuated, dropping 10 percent operations-- pegged at $21. 2 billion
for the safety of alleged victims of during the first 2 years and increasing
through 2000-- and the relative family violence and would be unable to by
about 27 percent during the last 2 contributions of U. S. and other NATO
fulfill this responsibility unless they years. The Marine Corps did not
follow allies to recent and ongoing military were told about the incidents.
The law Defense pricing regulations in setting operations.

requires DOD to establish policies and prices and, as a result, the prices
of procedures to protect the most parts sold to Marine Corps

NSIAD- 00- 126, Apr. 27, 2000 (28 confidentiality of dependent customers
were incorrect. The pages). Defense Transportation:

communications with service approach used to adjust prices of Operational
Support Airlift providers and to send Congress a repaired parts from year to
year was Requirements Are Not Sufficiently report by January 21, 2000, on
the inconsistent with Defense regulations

Justified. steps it has taken. DOD did not meet and led to wider price
fluctuations. the reporting deadline. Before it can The Marine Corps has
taken steps to The Pentagon says that it needs 391 prepare the report, DOD
believes that correct its method for setting prices. aircraft during wartime
to transport

it must first address several issues, passengers and cargo on short notice
including the privacy of electronic NSIAD- 00- 125BR, Apr. 24, 2000 (90 when
other military and commercial medical records and conversations pages).
Balkans Security: Current and

flights are unavailable. Although between patients and Projected Factors
Affecting Regional military policy specifies that the psychotherapists.

Stability. number of support aircraft are to be based on wartime needs, the
Defense NSIAD- 00- 131, May 31, 2000 (18 Despite the presence of two large

Department uses these planes during pages). Missile Defense: Status of the
NATO- led forces in the Balkans, the peacetime for crew training as well as

National Missile Defense Program. security situation throughout the
passenger and cargo support. GAO region remains volatile, as many found that
the current process used to The Pentagon is developing a national difficult
political, social, and other

determine requirements for missile defense program to shield the issues
remain unresolved. The election operational support aircraft is United
States from a ballistic missile of opposition members to Croatia's
inadequate because it is not clearly

attack from "rogue" nations, such as parliamentary and presidency during
linked to wartime requirements as North Korea and Iran. Following a early
2000 holds the promise of DOD policy requires.

departmental review by the end of July positive change in the region;
however, 2000, the administration plans to all areas of the Balkans continue
to NSIAD- 00- 127, Apr. 5, 2000 (11 decide on whether to deploy the face
unresolved political, social, and pages). Military Dependents: Services
system. To reduce risks, the Defense other problems that will contribute to
Provide Limited Confidentiality in

Department (DOD) has, since GAO's regional instability during the next five
Family Abuse Cases. 1998 report (GAO/ NSIAD- 98- 153), years. These
problems-- such as delayed initial fielding of the national differences over
definitions of what The military investigated about 64, 000 missile defense
system from fiscal year territory and ethnic groups constitute alleged
incidents of spousal abuse and

2003 to 2005; postponed decisions on a state and the difficulties associated
about 50, 000 incidents of child abuse the production of radars and

interceptors, and boosted funding for additional $4 million and it continues
39 years old. The Air Mobility testing. Even with the changes,

to negotiate with other vendors to Command is considering spending $18
however, significant performance and settle disputed payments. The billion
through fiscal year 2012 on schedule risks persist. Developing a collection
process has proceeded airlift and refueling aircraft. However, highly
reliable hit- to- kill capability is a slowly in part because of the time
and

the results of ongoing DOD studies difficult technical challenge. Only
effort required to review disputed reevaluating airlift and refueling could
three of the 19 planned intercept claims. In particular, the Supply Center
increase future requirements, change attempts are scheduled before the July
and vendors disagree over the

budget priorities, and lead to the 2000 deployment review. None of these
interpretation of contract provisions procurement of more aircraft. attempts
will expose the interceptor that require vendors that sell brandname kill
vehicle to the higher acceleration products to guarantee that NSIAD- 00-
136, June 5, 2000 (32 and vibration loans of the much faster,

prices offered to the government are pages). Civil Air Patrol: Proposed

actual system booster. Because the as good as those offered to their most
Agreements With the Air Force Are

program has a very aggressive favored customers. Thirty- four of the
Intended to Address Identified schedule, it is vulnerable to delays.

59 vendors that have received letters Problems.

DOD has instituted several costcontrol demanding payment have appealed to
measures, including a process

the Armed Services Board of Contract The Civil Air Patrol is a called "cost
as an independent Appeals. DOD is expanding its use of

congressionally chartered, private, variable," which sets realistic cost
recovery auditing. Since June 1999, six nonprofit corporation that relies on
objectives and trades off the system's DOD agencies have contracted for
61,000 dues- paying volunteers to carry performance and schedule to control

recovery audit services, and a seventh out its missions. The Civil Air
Patrol costs. After incorporating cost savings

is planning to do so soon. To minimize provides emergency services, from
these measures, program officials

disputed claims, GAO recommends including counternarcotics, disaster
estimated that the approved program that DOD examine the need to clarify
relief, and search and rescue missions would cost $36. 2 billion over the
life of price warranty provision in its

using small aircraft; aerospace the Capability I system-- or about $7. 5
contracts. education; and cadet training. As part billion more than the 1999
estimate. of the Air Force appropriation, The cost rose mostly because of
the

NSIAD- 00- 135, June 22, 2000 (59 Congress set aside about $26. 6 million
decision to increase the number of pages). Military Readiness: Air for the
Patrol in fiscal year 2000. A

interceptors and add flight tests, Transport Capability Falls Short of
series of audit and inspections since ground- test equipment, and a more
Requirements. 1998 have raised concerns about the capable radar facility.
Costs are likely Patrol's financial management and to increase further
because of the

The National Military Strategy calls for inventory control practices as well
as vulnerability to schedule delays. fighting and winning two nearly Air
Force oversight of the Patrol. This Program officials estimate that each
simultaneous wars. The Defense report assesses (1) the nature of the

month of delay would increase Department (DOD) lacks sufficient relationship
between the Air Force and program costs by $124 million.

airlift and aerial refueling capability to the Patrol, (2) the Air Force's
oversight meet this requirement because many of the Patrol, (3) the Patrol's

NSIAD- 00- 134, June 5, 2000 (15 aircraft are not mission ready. It is
management and oversight of its own pages). Contract Management: DOD's

estimated that DOD is short over 29 activities, and (4) plans to resolve Use
of Recovery Auditing. percent of the needed military airlift

identified problems. capability and nearly 19 percent of the Recovery
auditing is a process that needed refueling aircraft. The Office of NSIAD-
00- 138, Apr. 28, 2000 (41 identifies and collects overpayments the Joint
Chiefs of Staff estimates that,

pages). Biological Weapons: Effort to made to vendors. This report assesses

due to airlift shortfalls, military forces Reduce Former Soviet Threat
Offers the Defense Department's (DOD)

would arrive later than planned, Benefits, Poses New Risks. progress in (1)
recovering thereby increasing the risk that war

overpayments and the reasons for any plans could not be executed and

The former Soviet Union's biological delays and (2) expanding the use of
casualties could increase. Air Force weapons institutes continue to recovery
auditing. Since the program Headquarters officials attribute the threaten U.
S. national security because began in 1996, the Defense Supply shortfalls in
airlift and aerial refueling they have key assets that are both Center has
collected $5. 3 million of the capability primarily to the age of the
dangerous and vulnerable to misuse.

$17. 9 million in overpayments. The aircraft and spare parts shortages. The
These assets include as many as 15,000 Supply Center has written letters to
C- 5 fleet ranges in age between 10 to underpaid scientists and researchers,
vendors demanding payments of an 30 years and the K- 135 fleet averages
specialized facilities and equipment

(albeit often in a deteriorated foreign recipients and verifying that
results of the November 1999 bilateral condition), and large collections of
recipients of U. S. conventional arms Agreement on Market Access between
dangerous biological pathogens. These received and used these weapons as
China and the United States and (2) assets could harm the United States if
intended. The Departments must the status of China's ongoing hostile
countries or terrorist groups

notify Congress of conventional arms multilateral negotiations in WTO.

were to hire the scientists to conduct transfers if they meet or exceed
weapons work. Also of concern is the specific dollar thresholds and must

NSIAD- 00- 144, June 29, 2000 (32 potential sale of dangerous pathogens

report annually on the aggregate dollar pages). Defense Trade: Identifying

to terrorist groups or countries of value and quantity of all conventional
Foreign Acquisitions Affecting proliferation concern. The U. S. arms that
have already been National Security Can Be Improved. strategy for addressing
the threat of transferred to recipients. In response proliferation at the
source has been to to international concerns, the U. S. has

Congress passed legislation in 1988 fund collaborative research efforts
taken the lead in (1) creating that allows the President to suspend or with
the institutes to (1) reduce their international standards to prevent
prohibit foreign acquisitions, mergers, incentives to work with hostile
states

illicit small arms transfers; (2) or takeovers of U. S. companies if and
groups and (2) increase their establishing mechanisms to govern there is
credible evidence that a openness to the West. Although the small arms
transfers, such as

foreign controlling interest might executive branch initially began this
strengthening export control threaten U. S. national security or if strategy
with a modest level of procedures; (3) developing diplomatic other
legislation cannot adequately funding, it is now seeking a tenfold

initiatives with other nations and protect national security. The increase
in funding in response to multilateral organizations; and (4) President
delegated the authority to mounting efforts by Iran and other

helping other nations to destroy their review foreign acquisitions of U. S.
countries to acquire biological excess weapons. Case studies of

companies to an interagency group- the weapons. GAO found that expanding
weapon collection programs have Committee on Foreign Investment the program
entails risks to the United identified lessons that could be applied

in the United States-- that is chaired by States, including sustaining
Russia's to future programs' design. These case the Secretary of the
Treasury and existing biological weapons

studies show that programs without a includes representatives from 11
infrastructure, maintaining or comprehensive approach, realistic federal
agencies. In response to advancing Russian scientists' skills to goals, and
appropriate incentives congressional concerns that the develop offensive
biological weapons,

encounter implementation problems. current process may fall short in and the
potential misuse of U. S. DOD now lacks guidance on how to identifying all
foreign acquisitions of assistance to fund offensive research.

apply these lessons to its weapon U. S. companies that could affect
collection programs. national security, this report reviews

NSIAD- 00- 141, July 18, 2000 (30 the process used by the Committee to
pages). Conventional Arms Transfers:

NSIAD- 00- 142, May 16, 2000 (48 identify foreign acquisitions of U. S. U.
S. Efforts to Control the Availability pages). World Trade Organization:
firms. GAO evaluates the current of Small Arms and Light Weapons. Status of
China's Trade Commitments identification process used by the to the United
States and Other Committee and the effectiveness of the

This report provides information on U. Members. Committee's follow- up on
acquisitions

S. government monitoring and identified by its member agencies.

reporting policies regarding small The United States and China

arms and light weapons transfers and concluded a bilateral trade agreement

NSIAD- 00- 146, June 23, 2000 (46 the steps the U. S. government is in
November 1999 on issues related to pages). Military Personnel: Services
taking at the international level to China's joining the World Trade Need to
Assess Efforts to Meet address the availability of small arms Organization
(WTO). The

Recruiting Goals and Cut Attrition. and light weapons. It also reports on
Administration has asked Congress to lessons identified regarding weapon
pass legislation that would allow the To deal with mounting problems in

collection programs. The Department President to grant China permanent
recruiting enough qualified enlisted of Defense (DOD) has the principal

normal trade relations status. This personnel, the Army, the Navy, and the
responsibility for monitoring report updates GAO's past work on the Air
Force have increased their number government to government arms status of
China's membership of recruiters and their advertising transfers, which the
State Department negotiations, including parts of GAO's

budget and have offered larger licenses, and commercial arms earlier
analysis that were recently enlistment bonuses and more money exports.
Monitoring activities include declassified by the U. S. Trade

for college. The military services have reviewing proposed transfers to
Representative. GAO discusses (1) the also used innovative ways to expand

their recruiting market without capability improvement, the

The Secretary General of the United sacrificing the quality of recruits, for
assessment assumed that all planned

Nations reported in 1997 that the example, by targeting persons improvements
would be developed organization had become fragmented, attending community
colleges and

and fielded as scheduled. GAO duplicative, and ineffective in some persons
without high school degrees believes the Navy assessment areas-- risking
becoming irrelevant if it who meet other quality standards.

overstates actual and projected did not more effectively carry outs its
Because so little time has passed since capabilities of surface ships to
protect

mission. Since then, the U. N. has the services have begun to respond to
themselves from cruise missiles substantially restructured its their recent
recruiting problems, they

because the models used to determine leadership and operations and has

cannot yet assess the long- term capabilities include optimistic partly
implemented a performanceoriented success of their efforts. Also, the
assumptions that may not reflect the

human capital system. services do not yet know which of reality of normal
fleet operations. However, the U. N. is still considering their new
recruiting efforts work best. Among these assumptions are perfect
initiatives that would focus its In addition to improving the screening
weather, uninterrupted equipment programs and budgeting on managing of
applicants before they enlist, the

availability, and perfect crew and the Secretariat's performance. Thus,
services have also tried to reduce the equipment performance at all times.
the goal of creating an organization attrition of first- term enlistees
while Furthermore, inadequate funding, with a results and continuous

they are in training and after they have maintenance, and repair parts
support improvement orientation has yet to be been assigned to their first
duty continue to limit the availability of achieved and will require
continued stations. These efforts include paying existing self- defense
equipment. Plans

advocacy by the United States and extra attention to recruits struggling for
meeting ship self- defense other member states. during basic training and
disciplining requirements are not promising and working with enlistees who
have because the Navy still lacks a NSIAD- 00- 153, June 29, 2000 (20
completed training and are comprehensive and consistent strategy pages).
Missile Defense: Cost experiencing minor behavioral

to improve its capabilities. Earlier Increases Call for Analysis of How
problems. Although these actions

plans have not included all affected Many New Patriot Missiles to Buy.
appear promising, the latest attrition ship classes, have not always data
show that first- term attrition has established priorities among ship

Estimated costs of the Patriot reached an all- time high for military
classes, have not consistently used a Advanced Capability- 3 program (the
enlistees. baseline from which to measure

hit- to- kill program) have increased 77 progress, and have not provided
percent from 1994 ($ 3. 9 billion) to NSIAD- 00- 149, July 11, 2000 (53
timelines for achieving the desired March 2000 ($ 6.9 billion). The number
pages). Defense Acquisitions: improvements. Although Navy leaders

of missiles to be procured decreased Comprehensive Strategy Needed to
express concern about the from 1,200 to 1,012. Development cost Improve Ship
Cruise Missile Defense.

vulnerability of surface ships, that increases are attributed to the concern
may not be reflected in the difficulty of developing and producing Although
the Navy has made some budget for ship self- defense programs. a hit- to-
kill missile, and procurement progress in improving surface ship From fiscal
years 1997 to 2005, costs rose because the procurement self- defense
capabilities, most ships spending is relatively flat and

period was extended by seven years. continue to have only limited associated
research and development

Costs are likely to increase further. capabilities against cruise missile
funding is projected to decline from Contractor costs could exceed its
threats. A 1998 Navy assessment of about $517 million to about $218 estimate
by $26 million. The military surface ship self- defense capabilities

million. GAO recommends that the now wants additional testing at a cost
concluded that only the 12 Whidbey Navy develop a comprehensive of $88
million for four tests (and there Island and Harpers Ferry class strategy
that articulates priorities, may be as many as 12 to 15). It further
amphibious ships have or will be establishes baselines, provides estimates
that costs could increase by equipped with defensive systems that timelines,
and defines resource as much as $100 million because of can provide
measurable improvement

requirements for achieving needed risks and potential schedule delays.
against near- and mid- term cruise

ship self- defense improvements. The military has begun to undertake missile
threats. The assessment several program changes to control projected that
none of the Navy's

NSIAD- 00- 150, May 10, 2000 (83 costs. Independent estimators have planned
future improvements would

pages). United Nations: Reform projected savings of $140 million to provide
any ship class a high level of Initiatives Have Strengthened $216 from these
changes. There is a self- defense capability against far- term Operations,
but Overall Objectives

gap between the Army's stated threats. In projecting ship self- defense Have
Not Yet Been Achieved.

requirements (2, 200 hit- to- kill missiles)

and the Defense Department (DOD) corruption and fraud have occurred in
questions about whether the Navy

plan (1, 200 missiles). Because of the international assistance effort.
should enter into a multiyear program concerns, DOD now plans to

Officials also said that anticorruption procurement contract for full- rate
procure 1, 012, although the Army and judicial reform efforts have had

production of the aircraft. The major maintains that it would be forced to
little success because the political will deficiency was the aircraft's weak
defend forces and critical assets with of Bosnia's leaders is weak or
aerodynamic performance, which less capable missiles. No detailed
nonexistent. Congress should

reduced the plane's ability to analyses have been made of the costs,
consider requiring the State accelerate, climb and turn, and causes benefits
for defending U. S. forces and

Department to certify that Bosnia has it to have a low top speed. The F/
A18E/

assets, or implications of any undertaken concrete, measurable F also has a
noise and vibration alternatives. Without such analyses, efforts to fight
corruption, smuggling,

problem that damages the air- to- air DOD and Congress are not the best and
tax evasion before providing

and some air- to- ground missile carried position to decide how many
missiles future assistance. GAO summarized by the plane. to buy. this report
in testimony before the

Congress; see: Bosnia: Crime and NSIAD- 00- 159BR, May 9, 2000 (40 NSIAD-
00- 156, July 7, 2000 (77 Corruption Threaten Successful pages). Overseas
Investment: The pages). Bosnia Peace Operation: Implementation of the Dayton
Peace Overseas Private Investment Crime and Corruption Threaten Agreement,
by Harold J. Johnson,

Corporation's Investment Funds Successful Implementation of the Associate
Director for International Program. Dayton Peace Agreement. Relations and
Trade Issues, National Security and International Affairs

The Overseas Private Investment In 1998 the U. S. government, the Peace
Division. GAO/ T- NSIAD- 00- 219, July 19 Corporation is an independent,
selfsustaining Implementation Council, and the (10 pages). U. S. government
agency North Atlantic Council adopted created in 1969 to help U. S.
investors benchmarks to help determine when NSIAD- 00- 158, May 26, 2000 (28
overseas by providing political risk

enough progress has been made to pages). Defense Acquisitions: F/ A18E/
insurance, financing, and other

allow NATO- led forces to be F Aircraft Does Not Meet All investment
services. The Corporation's withdrawn from Bosnia. Three of the

Criteria for Multiyear Procurement. investment funds program was created
benchmarks-- elimination of illegal

in 1987 and has committed $2. 3 billion institutions, creation of a
democratic The F/ A- 18E (single seat) and the F/ A18F in loan guarantees
since then to law enforcement system, and reform (two seat) aircraft is
intended to support 26 private equity funds now of the judicial system-- are
directly replace the F/ A- 18C (single seat), F/ A18D

operating in developing countries and linked to reducing organized crime and
(two seat), A- 6, and F- 14 aircraft emerging market economies. These
corruption in Bosnia. However, despite as they reach the end of their
service funds seek to promote broad U. S.

U. S. and international efforts to life and are retired. The F/ A- 18E/ F is
foreign policy and strategic goals by achieve the three benchmarks, U. S.
designed primarily to meet the Navy's investing in countries or regions that
and international officials and fighter escort, interdiction, fleet air are
moving toward market economies published reports agree that organized
defense, and close air support mission or are otherwise of foreign policy
crime and corruption continue to requirements. GAO found that interest to
the United States, such as pervade Bosnia's civil service, law

although the F/ A- 18E/ F met it key the Balkans, the newly independent

enforcement and judicial systems, performance parameters, such as

states of the former Soviet Union, and economy, and political parties. range
and carrier suitability, the F/ A18E/ sub- Saharan Africa. Investment also

Corruption pervades public F did not demonstrate operational provides a
catalyst for private sector administration. The judicial system is
performance over the existing F/ A- 18C

investment by providing incentives for inadequate and, according to the

aircraft. Operational testers compared investment in countries where U. S.
Office of the High Representative's

the two aircraft in 18 operational investors might be unwilling or unable
Judicial Reform Strategy, is incapable mission areas, such as interdiction,
to invest in the absence of support by of effectively administering justice.
fighter escort, combat air patrol, air

the U. S. government. This report Widespread customs and tax evasion combat
maneuvering, and air- to- air examines how the Corporation (1) has resulted,
it is believed, in revenue weapons. Using a numerical scale, the identifies
and approves investment losses of hundreds of millions of testers rated the
F/ A- 18E/ F's

fund concepts and (2) selects fund dollars. In addition, although internal
operational effectiveness essentially managers. GAO also provides controls
over international aid appear the same as the F/ A- 18C's. Deficiencies

information on the funds' performance to be adequate, according to U. S. and

identified by the operational testers so far and risk levels assigned to the

international officials, some will be costly to correct and raise funds.

NSIAD- 00- 160, June 30, 2000 (35 continue to borrow at the same rate as

from home, including time spent pages). Defense Inventory: Process in the
years just prior to qualifying for

training. It could reduce the Army's for Canceling Inventory Orders Needs

debt relief. Also, for the countries to risk in executing the national
military Improvement. service their debt after receiving debt strategy in
the long term by increasing relief, the World Bank and IMF assume the
training and readiness levels of all This is one in a series of GAO reports

that countries will achieve sustained forces. Although the Army's piecemeal
on the Defense Department's strong economic performance. GAO

efforts are increasing the integration of management of inventory-- spare
and analysis indicated that this assumption active and reserve combat
forces, the repair parts and other items that may be optimistic. The
initiative Army cannot precisely measure or support the military's
operations on requires debt relief to be linked to fully evaluate the
effects and

land, at sea, and in the air. GAO has recipient countries' preparation of a

effectiveness of those efforts because included DOD's management of
comprehensive poverty reduction it has no clearly defined goal for fully
inventory on its list of government strategy, but this creates tension
integrating active and reserve forces,

areas at high risk for waste, fraud, between quick debt relief and has no
overall plan to guide its efforts, abuse, and mismanagement. As of preparing
such strategies. Financing and has not collected data to measure September
1999, DOD reported that it the initiative has been challenging for or
determine an acceptable cost of has about $8. 1 billion of inventory on some
creditors, with some multilateral

integration. order, $1. 6 billion of which exceeded and smaller bilateral
creditors requirements-- the amount of inventory

reporting that they are having NSIAD- 00- 164, July 6, 2000 (32 that the
military indicated it needed to difficulty providing their full share of
pages). Contingency Operations: prevent out- of- stock situations. This debt
relief and may need external Providing Critical Capabilities Poses report
reviews inventory on order that funding. Difficulties in financing the

Challenges. exceeded requirements. GAO (1)

initiative could undermine its success determines that extent to which
orders

because debt relief is supposed to be Since the end of the Persian Gulf War
exceeded requirements when the in addition to the assistance that in 1991,
U. S. Armed Forces have been orders were placed and (2) assesses donors and
creditors otherwise

involved in more than 50 contingency the processes for canceling orders that
provide to poor countries. operations overseas-- all operations exceeded
requirements.

other than war, including NSIAD- 00- 162, July 18, 2000 (55 peacekeeping and
no- fly zone NSIAD- 00- 161, June 29, 2000 (179 pages). Force Structure:
Army Is

enforcement. Although the military has pages). Developing Countries: Debt
Integrating Active and Reserve

been able to provide the forces and Relief Initiative for Poor Countries
Combat Forces, but Challenges

equipment necessary for contingency Faces Challenges. Remain.

operations, some unique capabilities have been in high demand. In fulfilling
In 1996, the World Bank and the The majority of the U. S. Army's forces the
missions, the rotational International Monetary Fund (IMF) reside in the
Army National Guard and

deployments from assigned home agreed to undertake a comprehensive

the U. S. Army Reserve. Until March stations have resulted in some approach,
called the Heavily Indebted 2000, when an Army National Guard personnel
exceeding the services' Poor Countries Initiative, for granting combat
division assumed headquarters goals for an individual's maximum

debt relief to the world's poorest and responsibilities in Bosnia for the
first number of deployment days in one most indebted countries. The
initiative time, most reserve forces deployed year. In some instances, this
high

was enhanced in 1999 to provide more with active forces came from support,
demand can degrade readiness, cause than $28 billion worth of relief to 32
not combat, units. Integration affects training opportunities to be lost,
and nations and add as a central goal the Army in a several of ways. It adds
adversely affect the quality of life for poverty reduction in the poorest to
the Army's total costs, due in part to

personnel in the affected units. To look countries. GAO analyzed the impact
of increased personnel costs and at the services' ability to continuously
the initiative on seven countries and increased transportation costs for
meet these operational needs, GAO found that it will provide significant
integrated training. It also creates new used a series of case studies to
debt relief, but that the countries may force structure requirements, which
examine six military assets that have not enjoy lasting relief without
strong, could increase significantly as the

been heavily used in contingency sustained economic growth. According

integration effort creates more new operations: (1) Army divisions (about to
GAO, the decline in debt service for units and increases the number of
10,000- 15,000 soldiers each); (2) Army the seven countries will "free up"
positions in existing units. In addition, civil affairs units, which provide
the resources for additional poverty integration generally increases the
infrastructure needed to bring

reduction only if the countries time that personnel must spend away
government services to the civil

population; (3) EA- 6B aircraft, which million a year, short of the $2. 6
billion Category 2 system is expected to be have the only available U. S.
military to $7 billion needed to achieve DOD's

fielded and alternative fielding capability to electronically jam enemy
goals. Costs for the F- 22 and the Joint strategies focused on what is
needed antiaircraft radar; (4) Airborne Strike Fighter could be higher than
to successfully establish the first Warning and Control System (AWACS) those
of the aircraft they are intended digitized corps by the end of 2004.
aircraft, which provide airspace to replace and could jeopardize
surveillance and battlefield attempts to control operating and NSIAD- 00-
168, June 6, 2000 (18

management for all airborne aircraft in support costs well into the future.
New pages). Defense Budget: Fiscal Year an assigned area; (5) U- 2 aircraft,

programs focus on improvements in 2000 Contingency Operations Costs which
gather intelligence and provide

reliability, supportability, and and Funding.

surveillance; and (6) specialized F- 16 maintainability, not establishing
and aircraft, the CJ model, which suppress operating an operating and
support The Defense Department estimates enemy air defenses primarily by
cost requirement. that all ongoing contingency targeting air defense radar
with operations in fiscal year 2000 will cost sophisticated missiles. Except
for the

NSIAD- 00- 167, July 25, 2000 (37 $4. 7 billion, with operations in the

Army divisions, these forces and assets pages). Battlefield Automation: Army
Balkans and Southwest Asia are few in number and comprise a Needs to Update
Fielding Plan for First

accounting for more than 99 percent of small part of U. S. military forces.
Digitized Corps. that amount. GAO has two concerns Planned actions by the
Defense about how the military identifies Department (DOD) and the military
The Army plans to field new and incremental costs in support of services
should reduce the level of improved battlefield systems through contingency
operations. First, the Air stress on these critical assets. But its
digitization initiative, which Force and the Navy's Atlantic and

many of the DOD actions will not be involves the application of information
Pacific Fleets use different completed for at least 2 to 7 years; and

technologies to acquire, exchange, and methodologies to calculate their
costs the services' planned actions will

employ timely information on the for flying hours in support of require
assessment of previous actions battlefield. Use of digitization on the

contingencies. DOD's regulation on and additional training, among other

battlefield is expected to increase the costs for contingency operations
factors. Army's survivability, lethality, and permits different
methodologies, but tempo of operations. Analysis of the this practice
results in different NSIAD- 00- 165, Aug. 29, 2000 (33 acquisition status of
the 56 Category 2

reimbursement rates for similar levels pages). Defense Acquisitions: Air

systems, which generally involve the of activities. Second, the Air Force is
Force Operating and Support Cost fielding of new or enhanced battle seeking
$47. 2 million in the Reductions Need Higher Priority. platforms, such as
the Crusader supplemental appropriation request to howitzer, Abrams tank,
and Bradley repair or restore the infrastructure Aircraft operating and
support costs Fighting Vehicle, indicated that about used during contingency
operations in include fuel, repair parts, maintenance, 30 percent of the
systems are already

Kosovo. No other military service is contract services, and the cost of
fielded or likely to be by the 2004 asking for similar reimbursement in its
military and civilian personnel. The Air

fielding milestone, about 50 percent budget request. Force spent more than
$16 billion to may not be ready, and 20 percent will operate and support its
aircraft in not be ready. Systems may not be NSIAD- 00- 170, July 7, 2000
(21 1999. These costs are rising at about

ready because development schedules pages). Military Base Closures:

four percent per year at a time when are not consistent with the 2004
Unexpended Funds Raise Questions

total numbers of aircraft, flight crews, milestone, operational testing has
not About Fiscal Year 2001 Funding Needs. and maintenance are decreasing.

been done, or interoperability Higher costs for repair parts were the
demonstrations have not been Appropriations for the 1990 base main cause of
the increasing costs. completed. Funding shifts or

closure account have declined steadily Aircraft operating and support costs
development schedules that are not since 1996 as more base closures and are
projected to exceed $20 billion by matched to the fielding milestone will
realignments have been completed. fiscal year 2005. The Air Force has

cause some systems not be ready. However, for fiscal year 2001, the
developed a standardized However, organizational decisions are

Defense Department (DOD) is methodology for assessing operating being made
based on the assumption requesting about $1. 2 billion (originally and
support costs, identifying and that these systems will be ready by $1.6
billion) in new budget authority, proposing areas for cost reduction, 2004.
GAO recommends that the Army significantly more than the $700 and tracking
savings. Projected cost

prepare an annual acquisition status million appropriation in fiscal year
reductions average only about $343 report that identifies when each 2000.
DOD officials reduced the

planning estimate by $363 million flares, and new missile warning system
monitoring, it could not verify North

because they did not believe the larger when those components are ready, for
Korean claims that one- third of amount could reasonably be executed about
$300, 000 per helicopter, would

American potatoes were damaged on in fiscal year 2001. Also, DOD made better
protect the Army helicopters arrival and were then destroyed or fed
reductions because prior years' much sooner. The Defense Department to
animals. Conversely, Consortium environmental cleanup funds were said that
the phased approach is

personnel and U. S. officials believe being spent at a slower pace than
impractical because all four that the food- for- work part improved
anticipated. When the fiscal year 2001 components are being developed as an
North Korean perceptions of the

budget was being developed, DOD had integrated system. Testing and fielding
United States. The Consortium about $500 million in reported of the system
as planned is very estimates that the food supported unobligated balances
from previous probable. GAO recognizes that using work on 176 projects and
was years' appropriations in the 1990

the new programmable dispenser, distributed to nearly 2. 4 million North
account, about $114 million of which

advanced flares, and new missile Koreans, with at least half going to the
was appropriated in fiscal year 1993 or warning system is an option because
most needy provinces. However, key earlier. It also had $1. 6 billion in
these components are more likely to problems, such as disagreement over
reported unliquidated obligations from be ready in the near future than the

how the food should be used, prior appropriations in the 1990 new infrared
jammer.

undermined affected food aid account, of which about $115 million

distribution and the Consortium's were appropriated in 1995 or earlier.
NSIAD- 00- 175, June 15, 2000 (64

monitoring efforts. Most of the $115 million unliquidated

pages). Foreign Assistance: U. S. funds resulted from environmental
Bilateral Food Assistance to North

NSIAD- 00- 178, Aug. 15, 2000 (28 cleanup activities that were carried out
Korea Had Mixed Results. pages). Defense Acquisitions: Recent more slowly
than planned, especially F- 22 Production Cost Estimates

by the Air Force. Only the Navy had In April 1999, after North Korea agreed
Exceeded Congressional Limitation.

provided documentation that it had on U. S. inspection rights for a
considered unobligated and

suspected underground nuclear F- 22 program production costs were
unliquidated balances in formulating facility, the United States, North
Korea, expected to grow from the amounts its portion of the budget request.
The and a consortium of U. S. private

planned, with cost reduction initiatives Army and the Air Force have
recently voluntary groups agreed to the first expected to offset that cost
growth. taken steps to reexamine their prior

U. S. government- supported bilateral The Air Force estimated production

years' unobligated and unliquidated assistance project in North Korea. The
costs at $40. 8 billion in 1999; the Office balances.

project consisted of two parts under of the Secretary of Defense estimate
Consortium implementation and was $48. 6 billion. Both estimates

NSIAD- 00- 171, July 27, 2000 (18 monitoring: The Consortium would assumed
that 339 aircraft would be pages). Electronic Warfare: Phased provide seed
potatoes to North Korean produced, but neither used the same Approach to
Infrared Upgrades Would farmers for two plantings to increase

estimating methodology. The Office of Reduce Risk to Helicopters. potato
production; and the United the Secretary of Defense's estimate of States
would provide 100,000 metric F- 22 total production cost exceeded The Army's
strategy for acquiring an tons of emergency food aid to laborers the Air
Force's estimate by $7. 8 billion, improved infrared countermeasure

participating in food- for- work projects. or 19 percent. If the Secretary's

system is to defer production and However, the project had mixed estimate is
correct, the Air Force

fielding until all four components of results. The Consortium estimates that
would have to buy about 85 fewer F- 22 the system are successfully
developed. about 3, 000 metric tons of mainly poor aircraft to stay within
the Because of delays in developing the potatoes were produced during the

congressional cost limit of $39. 8 laser- based infrared jammer, most first
harvest instead of a possible 8,400 billion. About half of the $21 billion
in Army helicopters will remain

tons to 12, 600 tons. The poor condition cost reductions identified by F- 22
vulnerable to currently fielded enemy resulted from various problems

contractors and program officials have heat- seeking missiles until the
second including less- than- ideal planting yet to be implemented. Of 10
plans half of this decade. A phased locations directed by the North Korean
estimated to reduce costs by $6. 8 approach, installing either (1) the
government. The Consortium did not billion, four plans-- totaling $5. 6
billion- existing programmable dispenser, collaborate on the second planting
may not be achievable. Six other cost advanced flares, and existing missile
because the North Korean government reduction plans-- totaling $1. 2
billion-

warning system for about $175,000 per wanted potato propagation technology
may be achievable. Although the Air

helicopter or (2) the new instead of seed potatoes. Because of Force reports
quarterly on the total programmable dispenser, advanced the Consortium's
incomplete estimated cost of F- 22 production, its

reports have not regularly included a Taken but Considerable Risks Remain

program has experienced contracting summary of the status of production for
Forces Overseas. and manufacturing problems that have cost reduction plans.

caused schedule delays that may not Overall, military forces stationed
provide DOD with enough information

NSIAD- 00- 179, June 14, 2000 (21 overseas are better protected today, with
which to make an informed pages). Future Years Defense and commanders are
better able to decision to begin full- rate production.

Program: Comparison of Planned determine their vulnerability to Time may
also be insufficient before Funding Levels for the 2000 and 2001

terrorist attacks, than they were when the decision date to adequately
Programs.

GAO last reported in 1997. However, validate production processes and
significant security and procedural management controls that are The
Pentagon's Future Years Defense

antiterrorism/ force protection consider necessary to avoid Program (FYDP)
is the official problems persist at many installations. unacceptable cost
and schedule risks. document that summarizes the force For example, some
installations have In addition, cost growth in the levels and funding
associated with not developed plans to deal with development contract
represents a

programs that the military would like terrorist attacks; others have no way
to significant part of the total $142.6 to see approved by Congress. The
stop unauthorized vehicles from million development costs. Projected FYDP
presents estimated funding entering the installation; and there is

costs for producing the howitzer needs for the budget year for which no
comprehensive way to share

cannon barrels have more than the money is being requested from solutions to
common problems with doubled since the original 1996 cost Congress and at
least the four years other installations. Limited

estimate. Several design changes have following it. GAO compared the
antiterrorism funding and trained staff

been made to the lightweight howitzer; planning levels for the common years
have affected the ability of however, testing of the intended of the fiscal
year 2000 and 2001 FYDP

commanders to correct known production configuration that requests. GAO
found that, in constant vulnerabilities. Some overseas incorporates these
changes will not be dollars, there are only minor increases commands have
repeatedly received possible until the third of eight in the projected year-
to- year funding less than half of the funding that they development units
is manufactured totals over the common five- year believe is necessary to
correct or and delivered. The program office is period (2001- 2005) from the
2000 mitigate vulnerabilities. Although adjusting its test plans to complete
the FYDP to the 2001 FYDP. The Defense

Congress requires DOD to provide testing needed to verify system

Department plans to increase total information on proposed performance and
initial operational funding over the five- year period by antiterrorist/
force protection funding capabilities before the production $15.8 billion,
or 1. 1 percent, over the

and projects, it does not require decision. total funding projected in the
2000 information on projects that still need FYDP. Although total programmed
funding.

NSIAD- 00- 191, Aug. 31, 2000 (36 funds for military personnel remain

pages). Defense Trade: Analysis of virtually the same in the year's FYDP

NSIAD- 00- 182, July 28, 2000 (27 Support for Recent Initiatives.

as in last year's FYDP, programmed pages). Defense Acquisitions: personnel
funds for the Army and Air

Howitzer Program Experiencing Cost The defense industry and foreign Force
active forces decline, whereas

Increases and Schedule Delays. governments have expressed a high programmed
funds for other forces level of concern over the restrictions increase. The
largest increase in the This report discusses the Marine

on cross- border defense trade. The operation and maintenance account is
Corps' development of the 155 mm Department of Defense (DOD) $9. 7 billion,
which is earmarked for

lightweight howitzer. Procured for use developed many initiatives to
increase overseas contingencies. Although

by the Marine Corps and the Army, the cooperation in the defense trade and
DOD's programmed procurement lightweight howitzer is intended to improve
relations with foreign spending remains above the $60- billion provide
greater mobility and improved countries. DOD, in developing its threshold
recommended by the operational characteristics. A contract

initiatives, relied on incomplete data Quadrennial Defense Review in 1997,
with a target price of $33. 5 million was and did not do the necessary
analysis the 2001 FYDP projects a $3. 2- billion

let in March 1997 for the development to determine the causes of the
decrease, or one percent, from last and manufacture of eight howitzers.
underlying problems that the new year's FYDP projections.

The program is in the engineering and initiatives were supposed to resolve.
It manufacturing development phase, is unclear whether DOD's initiatives

NSIAD- 00- 181, July 19, 2000 (39 and the Defense Department (DOD)

will: (1) improve the ability of U. S. and pages). Combating Terrorism:
Action plans to make a decision to go to full

foreign forces to work together during production in March 2002. This

wartime, and (2) reduce the gap in

military capabilities between the Logistics Agency's maintenance, the
projected life- cycle costs-- the United States and its allies. repair, and
operations prime vendor

system from acquisition through program in fiscal year 1999. More than
disposal-- be from 20 to 50 percent less

NSIAD- 00- 193, Aug. 24, 2000 (39 100 customers placed orders with than the
actual costs of the replaced pages). Depot Maintenance: Action these vendors
for a total of about $59 systems. This report addresses the Needed to Avoid
Exceeding Ceiling on million, or less than 10 percent of the effectiveness
of the Army's efforts to Contract Workloads. estimated $670 million that DOD
spent

reduce the operating and support costs on facility maintenance supplies that
for: (1) weapons systems under Section 2466 of title 10, United States year.
Use of the program varied widely development; and (2) fielded weapon Code,
stipulates that not more than 50 among the 11 installations GAO systems. GAO
found that the Army is

percent of funds made available in a examined. At seven installations, base
unlikely to significantly reduce

fiscal year to a military or defense personnel ordered, on average, about
projected operating and support costs agency for depot- level maintenance 55
percent of facilities maintenance of weapons systems under and repair may be
used for work done supplies from the prime vendor during development, in
part, because it has by private sector contractors. GAO fiscal year 1999. Of
the four other not established needed mechanisms to reviewed Department of
Defense installations, three did not use the

achieve the reductions. Furthermore, (DOD) reports on the percentage of
program and one could not quantify the Army's cost reduction efforts for
funding in support of public and the extent to which the prime vendor
fielded systems lack the priority private sector depot maintenance and

was used. DOD has no way to evaluate needed to meet DOD's goals. repair
workloads. This report provides the extent to which the prime vendor
information on DOD compliance with program has been used to streamline

NSIAD- 00- 198, Aug. 11, 2000 (38 the 50- 50 requirement for fiscal years

logistics operations or increase overall pages). DOD Competitive Sourcing:
1998 and 1999; discusses DOD's

logistics system effectiveness. It has More Consistency Needed in progress
in improving the quality of also not determined how the program

Identifying Commercial Activities. the workload data, and assesses the

should be used in conjunction with reasonableness of expenditure other
procurement methods. At some In compliance with Office of estimates for
fiscal years 2000 through installations, ineffective working Management and
Budget Circular A- 76, 2004. DOD's report on fiscal year 1998

relationships among the agency, the the Department of Defense (DOD) and 1999
workloads shows that the Air

prime vendors, and the installations compiles each year an inventory of
Force, the Army, and the Navy were in have limited the program's use. Often,

commercial activities done in house in compliance. However, because of the
prime vendors' prices for facilities order to identify those activities that
continuing errors and weaknesses in maintenance supplies were higher could
be subject to competition. the DOD's data, compliance with the

than items bought directly from a local Although DOD has improved the 50-
percent ceiling for the percentage merchant. identification of commercial
activities of depot maintenance done by the that could be studied under A-
76, the private sector in fiscal year 1999 could NSIAD- 00- 197, Sept. 29,
2000 (30 military did not always consistently not be determined. Fiscal year
1999

pages). Defense Acquisitions: Higher categorize similar activities, in part
data was substantially improved from Priority Needed for Army Operating
because of a lack of clear guidance on earlier years. However, errors and
and Support Cost Reduction Efforts. how to identify which activities are

inconsistencies in reporting of depotlevel inherently governmental,
commercial workload and limitations in how The high cost to operate and
support and exempt from competition, and well the services document their
the Army's weapon systems is

commercial and eligible for analyses persist. DOD's estimates of absorbing
an increasing share of the competition. Furthermore, the number depot
maintenance workloads for Army's budget and is reducing funds

of commercial activities in the fiscal years 2000 through 2004 do not
available for buying new systems. This, inventories will likely change over
accurately project future depot according to Department of Defense time,
although DOD does not expect to

maintenance expenditures. (DOD) officials, results in older significantly
increase the number of weapons being kept in the inventory activities. Such
factors as geographic NSIAD- 00- 194, Aug. 23, 2000 (26 longer, further
increasing their costs dispersions of positions and the pages). Defense
Inventory: Actions and reducing funds available for inability to separate
commercial from Needed to Evaluate Supply Purchase modernization. DOD
directed the inherently governmental activities may

Options for Facilities Maintenance. services to designate 10 pilot programs
prevent DOD from developing studies to test innovative approaches to for
competition under A- 76. The Department of Defense (DOD) reduce operating
and support costs. It began implementing the Defense set a broad goal that
by fiscal year 2000

NSIAD- 00- 199, July 31, 2000 (66

NSIAD- 00- 201, Aug. 15, 2000 (38 the vehicles. The cost to buy the 44
pages). Best Practices: A More pages). Force Structure: Air Force systems is
estimated at $430 million Constructive Test Approach Is Key to Expeditionary
Concept Offers Benefits

through 2004. To field systems more Better Weapon System Outcomes. but
Effects Should Be Assessed.

quickly, the Army's plan to increase the number of low- rate initial
production This report examines (1) how the

The Expeditionary Aerospace Force systems from four to eight. GAO conduct of
testing and evaluation

Concept is a way to help manage assessed whether the Army made a

affects commercial and Defense commitments to theater commanders sound
decision in changing its

Department (DOD) program and reduce the constant deployment acquisition
strategy. GAO recommends outcomes, (2) how best commercial burden on its
people. Each force group that the Army not buy four additional testing and
evaluation practices

is to deploy once every 15 months for systems until after operational
testing

compare with DOD's, and (3) what 90 days. The concept will likely is
completed. One reason is that factors account for the differences in achieve
its objective of spreading the operational testing of the system in a these
practices. GAO found that deployment burden over a larger part realistic
combat environment can

commercial firms use testing to of the Air Force's combat forces; reveal
whether the overall system will expose problems earlier than the DOD

mobility air forces are not likely to be meet the Army's operational needs.
programs GAO visited. Commercial affected. Active combat units in firms'
testing and evaluation validates overseas commands will likely see

NSIAD- 00- 208, Aug. 24, 2000 (25 products' maturity based on three
significant increases in deployments

pages). Foreign Military Sales: levels at specific points in time, which
while deployment of U. S.- based units Changes Needed to Correct works to
preclude "late- cycle churn" or

will drop. Both reserve and active Weaknesses in End- Use Monitoring the
scramble to fix a significant mobility air forces are likely to Program.
problem discovered late in continue their high deployment. The development.
Late- cycle churn has reserves face two challenges:

This is the second in a series of reports been a fairly common occurrence on
providing enough personnel in

on the foreign military sales program. DOD weapon systems, where tests of a
specialty areas where the need is high GAO focuses on the Department of full
system identify problems that but the availability of qualified Defense's
(DOD) implementation of often could have been found earlier. personnel is
low and matching the

end- use monitoring requirements of DOD's response to such test results
reserves' aircraft capabilities with the Arms Export Control Act. GAO
typically is to expend more time and

their increased role in contingency discusses DOD's efforts to (1) observe

money to solve the problems-- only operations. The Air Force would and
report on defense articles and rarely are programs terminated. The
experience a significant disruption in services transferred under the
differences in testing practices reflect its ability to rotate forces to
program, (2) perform end- use checks, the different demands commercial
contingency operations under the and (3) satisfy requirements of end- use
firms and DOD impose on program concept if it were called on to monitoring.
GAO found that DOD has managers. Leading commercial firms simultaneously
support a single major

not effectively implemented any of its insist that a product satisfy the

war. After deploying forces to a single monitoring and reporting
requirements customer and make a profit. Success is major war, no Air
Expeditionary Force

under amendments to the Arms Export threatened if unknowns about a pairs
would have enough assets to Control Act. GAO makes product are not resolved
early when maintain ongoing contingency recommendations to correct program
costs are low and more options are

operations. weaknesses.

available. Testing is constructive and eliminates unknowns. Success for a
NSIAD- 00- 204, Sept. 26, 2000 (18 NSIAD- 00- 209, Aug. 4, 2000 (51 weapons
system is centered on pages). Unmanned Aerial Vehicles:

pages). Presidential Travel: DOD providing a superior capability within

Questionable Basis for Revisions to Airlift Cost for White House Foreign
perceived time and funding limits. Shadow 200 Acquisition Strategy.

Travel. Testing plays a less constructive role, because test results often
become The Army plans to buy 44 Shadow 200

This report provides information on directly liked to funding and other key
tactical unmanned aerial vehicle the Defense Department's (DOD) costs
decisions and can jeopardize program

systems. Each system includes three for cargo and passenger airlift and

support. Such a role creates a more unmanned aircraft; a vehicle to carry
aerial refueling for foreign trips by the adversarial relationship between
the aircraft; two ground control

President, Vice President, and First testers and program managers.

stations mounted on vehicles; and Lady from January 1997 through launch,
recovery, and support March 2000. Also included are costs equipment pulled
on trailers behind for White House- directed trips. This is

a follow- up to an earlier GAO report on their commercial significance are
Engage in Varied International presidential travel costs for 1998. GAO
included in appendixes.

Alliances. found that DOD spent at least $292 million to provide fixed- wing
airlift NSIAD- 00- 211, Sept. 1, 2000 (31

With the end of the Cold War and the and air refueling support for 159 White
pages). International Monetary Fund: subsequent decline in military House
foreign trips. These costs are

Status of Efforts to Strengthen spending in the United States and somewhat
understated because DOD Safeguards Over Lending.

Europe, defense companies on both could not provide historical data on sides
of the Atlantic began looking to some aerial refueling missions and The
International Monetary Fund's each other's market for additional could not
guarantee that its (IMF) long- standing method for sales. To gain political
advantage when information systems had captured safeguarding its resources
against

competing in the other's market, U. S. complete mission data for some of the
misuse by borrowers has been to and European contractors began trips.
monitor borrowers' compliance with forming transatlantic business

specific, agreed- upon loan conditions. alliances. GAO found that U. S.
defense NSIAD- 00- 210, Aug. 9, 2000 (116 However, an IMF study found that
its

contractors prefer teams because they pages). World Trade Organization:
resources may have been vulnerable to can choose new partners for each
Issues in Dispute Settlement. borrower misuse because IMF has not
competitive market without forming typically assessed internal control

permanent alliances, but European Forty- two World Trade Organization
procedures exercised by borrowers. governments do not like the subsidiary
(WTO) completed cases involving the Without such an assessment, IMF had role
to which they are sometimes United States led to changes in foreign few
assurances that borrowers' consigned. A joint venture is a separate laws,
regulations, and practices that systems of internal controls, legal entity
that two or more

offer commercial benefits to the accounting, reporting, and auditing
companies form to pursue a discrete United States. With the exception of a
were adequate to ensure the integrity market. They share risk, decision
ruling that U. S. tax provisions violated for their financial operations.
IMF now making, and technology. U. S.

export subsidy rules, which has assesses the control environment of

companies see a drawback because potentially significant commercial

borrowing countries' central banks to work may be divided according to the
consequences, none of the changes the evaluate the integrity of their

country's investment as opposed to a United States has made in response to
operations, and it withholds loan country's skill. Subsidiaries are not
disputes have had major policy or disbursements until borrowers have favored
because no one country in the commercial impacts so far. The corrected any
critical deficiencies. IMF

fragmented European market has an following major issues have emerged has
also begun to require all borrowers

impact to market access in another in using the system: (1) Sovereignty. to
publish financial statements for country, and large U. S. defense The United
States has wondered if U. S. their central banks, audited by companies have
not favored merging protections would weaken against independent external
auditors in with or acquiring major defense

unfair trade and on health, safety, and accordance with internationally
companies. Although the U. S. the environment. So far, there has been
accepted standards. Although IMF has

companies reviewed do not consider no problem. (2) Compliance. WTO
traditionally relied on trust, it now has

the U. S. legal and regulatory members have generally changed their
established measures to help prevent, environment to be a major impediment
practices to comply with WTO rules. detect, and address borrower to forming
an alliance, they are The compliance rate is 75 percent in misreporting of
key information. For concerned with the effect that a slow U. S. cases. (3)
Resolution timetable. example, it checks, to the extent technology transfer
can have on the Although most U. S. complaints were possible, the validity
of information operation of an alliance and the resolved quickly, most cases
going

reported and has guidelines for regulation requiring foreign through the
panel or appellate applying sanctions against borrowers

governments to seek U. S. consent processes took longer than called for that
receive funds based on

before transferring alliance products in WTO timetables. (4) Openness.
misreported information. A new policy to third parties. Although the dispute
settlement publicizes the identities of countries system is more transparent
than when that obtain IMF resources using

NSIAD- 00- 215, Aug. 18, 2000 (20 it was established in 1995, the public
inaccurate reporting. Because some pages). DOD Personnel: More Actions still
has limited information about and IMF initiatives are in the early stages,

Needed to Address Backlog of Security input into the organization's

their effectiveness is still unknown. Clearance Reinvestigations.
proceedings. Summaries of the 42 WTO dispute settlement cases and NSIAD- 00-
213, Sept. 7, 2000 (22 In January 2000, the Department of pages). Defense
Trade: Contractors Defense (DOD) announced a backlog

of 505,000 overdue reinvestigations. sufficiency, they remain highly
consolidating transmission services,

DOD now lacks an information system dependent on assistance from the and
deploying digital sound recording that can routinely track and report on
United States, which provides more and editing technology. The Board is

the status of security clearances; thus than half of total government
revenues also redirecting about $4. 5 million in it cannot identify when
security in each country. Compact funds have language service funds from
Central clearances are due to be updated,

led to little improvement in economic and Eastern Europe to several African
project the investigative workload, or development. Per capita incomes in
countries and other regions and know the extent of the reinvestigation

Micronesia, adjusted for inflation, have intends to use a language service
backlog. Without readily available stagnated, while in the Marshall

review to look at program duplication information, DOD has estimated the
Islands they have fallen. Compact between the Voice of America and backlog
by manual counting and

funds used to support general surrogate language services. The statistical
sampling. Recent attempts government operations have Board has not yet
established an using these methods produced maintained high government wages
effective strategic planning and

estimates that were six months old or and public sector employment that
performance management system that older and did not include thousands of
have discouraged private sector incorporates Results Act planning, the

overdue reinvestigations that had been growth. Compact- funded business
annual language service review submitted. Coincidentally, two recent
ventures have generally failed, many process, and program reviews of studies
arrived at similar estimates-

because of poor planning or individual language services. The about one
overdue reinvestigation for management, inadequate construction Board needs
to establish a standard every five persons with a security and maintenance,
or misuse of funds. program review approach. clearance. To address this
problem, The Compact set out specific

DOD has set goals to eliminate the obligations for reporting and

NSIAD- 00- 224, Sept. 6, 2000 (18 backlog, required the services and
consulting regarding use of funds. The pages). Defense Headquarters: Status
DOD agencies to formulate plans to governments of Micronesia, the of Efforts
to Redefine and Reduce meet the goals, and expanded DOD's

Marshall Islands, and the United Headquarters Staff. investigative capacity
by shifting some States, however, provided limited Defense Security Service
workload to accountability over Compact This report focuses on the status of
the Office of Personnel Management. It

expenditures and have not ensured Department of Defense's (DOD) efforts also
plans to implement a new that funds were spent effectively or to redefine
and reduce defense personnel security database.

efficiently. headquarters staff. GAO found that DOD's implementation of new
NSIAD- 00- 216, Sept. 21, 2000 (151 NSIAD- 00- 222, Sept. 27, 2000 (46
management headquarters has pages). Foreign Assistance: U. S. pages). U. S.
International resulted in a more accurate reporting Funds to Two Micronesian
Nations

Broadcasting: Strategic Planning and of positions in headquarters
activities,

Had Little Impact on Economic Performance Management System even though some
inconsistencies still Development.

Could Be Improved. exist. Under the Compact of Free

The U. S. International Broadcasting NSIAD- 00- 225, Sept. 29, 2000 (36
Association, an international Act of 1994 reorganized and pages).
Contingency Operations: agreement with the Federated States

consolidated U. S. international Army Should Do More to Control

of Micronesia and the Republic of the broadcast efforts in light end of the
of Contract Cost in the Balkans.

Marshall Islands, the United States the Cold War end and attempted to
provides direct financial assistance to meet deficit reduction targets. The
The Army is concerned about advance the economic development bipartisan
Broadcasting Board of controlling the cost of the Balkans and self-
sufficiency of those two Governors reduced Radio Free Support Contract and
has taken countries. To help Congress determine Europe/ Radio Liberty's
annual budget several steps to do so. This report future economic
assistance, this report from $208 million in fiscal year 1994 to assesses
whether: (1) the Army is

describes the use of Compact funding, $71 million in 1996. It relocated from
taking effective actions to contain the progress both nations have made
Munich to Prague and cut staff costs, and (2) improvements are in advancing
economic selfsufficiency, significantly. The Board saved money

needed in how the Army and other and accountability by the by eliminating
several hundred hours Department of Defense (DOD) countries and the United
States over of broadcast overlap between Radio

agencies involved in Balkan operations Compact funds. Although both Free
Europe/ Radio Liberty and the manage activities under the primary countries
have made some progress

Voice of America, eliminating and Balkan contract. GAO believes that the
since 1987 in achieving economic self

modifying several language services, Army should have done more to

control costs. One step it should have can apply for the return of, or
access lacks a system to monitor whether the

taken was to give more consideration to, the abducted child. loan guarantees
it issues are resulting to costs in making decisions on the in increased
private sector extent of services to be provided by NSIAD- 00- 228BR, Aug.
31, 2000 (32 employment and growth. Management the contractor. In July 2000,
the Army pages). United Nations: Cost of also needs to improve its efforts
to directed that a quarterly review be Peacekeeping Is Likely to Exceed
notify counties that are eligible to done to assess whether all the services

Current Estimate. participate in the program. it receives under the contract
are still needed. However, it has not called for

The United Nation's (U. N.) cost of NSIAD- 00- 235, Sept. 28, 2000 (37 the
review to include an examination peacekeeping is likely to exceed pages).
Inter- American Foundation: of the level of these services and the current
estimates provided for in its

Better Compliance With Some Key efficiency with which they are being 2001 U
.N. peacekeeping budget. GAO Procedures Needed. provided. The Army expects
to cut

estimates that the cost of U. N. costs by reducing the number of
peacekeeping funded from the 2001 In 1969, the Congress created the
InterAmerican contractor personnel providing U. N. peacekeeping budget will
be Foundation, a government services, scaling back service levels,

about $2. 7 billion, which exceeds the corporation, as an experimental and
reducing on- hand inventories. amount currently budgeted by about agency to
provide grants in support of There was a widespread desire on the $600
million. GAO's estimate includes grassroots development in Latin part of
personnel administering the additional appropriations in the United America
and the Caribbean. The contract for more training on the

Nations will consider for missions in development included activities in
government's authority and on how to the Congo and East Timor when areas
such as agriculture and apply the contract in real world

budgets for these missions are revised education. Because of concerns about
situations. Incomplete understanding

or fully developed later this year. the Foundation's activities and

of the government's authority and GAO's estimate also includes management
practices, Congress

responsibilities under this type of anticipated increases for expanded
reduced Foundation appropriations contract, coupled with limited training
operations in Sierra Leone, EthiopiaEritrea, from an average of $21 million
a year and a lack of continuity among

and Lebanon. The major during the last four years to $5 million contract
administration personnel, has

uncertainties in estimating the cost of in fiscal year 2000. This report:
(1) led personnel to simply accept existing peacekeeping include: (a)
whether

describes the Foundation's procedures practices rather than question them.
each mission's area of operation is for selecting organizations to receive
GAO concludes that DOD may be sufficiently secure and will allow grants,
monitoring grantee incurring higher costs than necessary.

planned or proposed increases in organizations' compliance with grant troops
and operations to proceed; (b)

agreements, and auditing grantees' use NSIAD- 00- 226BR, Sept. 8, 2000 (60
if so, when the troops might be of funds; (2) analyzes the extent of the
pages). Foreign Affairs: Status of U. S. deployed and operations expanded;
Foundation's compliance with these Parental Child Abductions to Germany, and
(c) whether the costs for building procedures; and (3) discusses the Sweden,
and Austria. infrastructure have been accurately extent to which the
Foundation

forecast. provides grants to organizations that In response to congressional
concerns also receive financial support form the about how Germany, Sweden,
and NSIAD- 00- 229, Sept. 29, 2000 (54 U. S. Agency for International
Austria handled U. S. cases of parental pages). Trade Adjustment Assistance:

Development. child abduction, GAO obtained Opportunities to Improve the
information from the State

Community Adjustment and

NSIAD- 00- 240R, Aug. 21, 2000 (4 Department on the status and outcome
Investment Program. pages). Department of Defense: of cases initiated by
parents left Military Assistance During the Branch behind in the United
States from

Congress created the Community Davidian Incident. January 1995 through May
15, 2000.

Adjustment and Investment Program This report provides the status and

to assist communities that suffer job Congress asked the Department of
outcome of cases by country and losses due to changing trade patterns
Defense (DOD) to respond to a GAO provides background information on

with Mexico and Canada. GAO report on the Army's delivery of high the
provisions of the 1980 Hague

reviewed the program and found that explosive ammunition to FBI agents
Convention on the Civil Aspects of the management structure hinders during
their standoff with the Branch International Child Abduction and the
efficient program delivery and the Davidians at Waco, Texas, in 1993.
process by which left- behind parents program eligibility procedures are
Members of Congress also asked GAO rather complex. Further, the program

whether it would change any of its

findings on the basis of DOD's more than 60 years old than are under U. S.
laws and regulations has been response. GAO found that its August

30 years old, jeopardizing the minimal. GAO summarized this report 1999
report remains accurate and does

program's ability to hand off in testimony before Congress; see: not need to
be modified. GAO had

leadership to the next generation. This World Trade Organization: U. S.
found in its earlier report that the situation also poses significant
shuttle

Experience in Dispute Settlement Army should be reimbursed for the program
flight- safety risks, according System-- the First Five Years, by Susan
ammunition and equipment it provided to NASA. To revitalize its workforce,
S. Westin, Associate Director for to the FBI. DOD's response did not NASA
has ended its downsizing plans

International Relations and Trade refute any information in GAO's report.
and has begun to hire new staff. It has Issues, before the Subcommittee on
started an overall workforce review to International Trade, Senate Committee

NSIAD/ AIMD- 00- 329, Sept. 29, 2000 examine personnel needs, barriers, on
Finance. GAO/ T- NSIAD/ OGC- 00202,

(62 pages). Foreign Assistance: U. S. and reforms to address long- term June
20 (10 pages). Food Aid Program to Russia Had Weak requirements. During the
next five

Internal Controls. years, NASA plans to develop and

NSIAD/ RCED- 00- 251, Sept. 21, 2000 institute various safety and

(33 pages). Federal Facilities: Further In December 1998, the United States
supportability upgrades. The Review of Hawthorne Army Depot responded to a
Russian request for program's success, however, depends Land Management
Proposals Needed. food aid. To ensure that the objectives

on NASA's ability to overcome of the food aid program were met, the
programmatic and technical The Bureau of Land Management and Foreign
Agricultural Service

challenges, such as a demanding the Hawthorne Army Depot (Nevada)
implemented internal controls to track schedule and undefined design and

have not reached agreement on the the distribution and use of the food.

workforce requirements. Continued Bureau's proposal to terminate Army GAO
found that the Foreign management emphasis will be critical control and
exclusive use of a large Agricultural Service internal controls to the
success of NASA's human capital portion of the lands at Hawthorne, were
inadequate and, as a result, the planning. including the Mount Grant
watershed. Service was unable to ensure that the

Army and local community officials food aid was delivered in the agreed
NSIAD/ OGC- 00- 196BR, June 14,

questioned terminating the withdrawal upon amounts to designated regions.
2000 (36 pages). World Trade without having a specific management Several
factors contributed to the Organization: U. S. Experience to Date plan in
place. Differing approaches weak monitoring system, including the

in Dispute Settlement System. have been proposed: (1) the Army Russian
government's untimely could continue to limit public access reporting of
commodity distribution

Member countries of the World Trade to the watershed; (2) the Bureau could

and the Service's ineffective Organization (WTO) have actively manage the
land and open portions of commodity tracking systems.

used the WTO dispute settlement the watershed to multiple use (public
Furthermore, the Service could not system during the first five years and
access, livestock grazing, mineral guarantee that funds derived from the
filed 187 complaints as of April 2000. mining), with restrictions to protect
sale of U. S. food aid were properly The United States and the European the
Depot's water supply; (3) joint collected and deposited in the Russian Union
were the most active cooperative agreements could be Pension Fund.

participants, both as plaintiffs and reached. GAO recommends that the

defendants. Out of 25 cases in which Army and the Bureau review the

NSIAD/ GGD- 00- 186, Aug. 15, 2000 the United States was a plaintiff, the

advantages and disadvantages of using (20 pages). Space Shuttle: Human
United States prevailed in a final WTO a cooperative agreement approach and
Capital and Safety Upgrade Challenges dispute settlement ruling in 13 cases,
determine whether such an approach Require Continued Attention. resolved the
dispute without a ruling in would be useful. 10 cases, and did not prevail
in two

Several internal NASA studies have cases. As a defendant in 17 cases, the
OSI/ NSIAD- 00- 61, Feb. 2, 2000 (10 shown that downsizing has harmed the
United States prevailed in one case, pages). Department of the Navy: shuttle
program's workforce. Many key resolved the dispute without a ruling in
Breakdown of In- Transit Inventory areas lack enough qualified workers, 10
cases, and lost in six cases. Overall, Process Leaves It Vulnerable to
Fraud. and the remaining workforce shows

GAO's analysis shows that the United signs of overwork and fatigue. States
has gained more than it has lost GAO reported last year that the Navy
Forfeited leave, absences from training in the WTO dispute resolution system
was unable to account for more than courses, and stress- related employee

so far. WTO cases have resulted in a $3 billion worth of inventory,
including assistance visits are all on the rise.

large number of changes in foreign classified and sensitive items, that was

More than twice as many workers are trade practices, while their effect on
in transit within and between storage

facilities, repair facilities, and end qualified organizations. Inadequate
to aircraft from foreign objects, and users. (See GAO/ NSIAD- 99- 61, Mar.
control, as a result of inconsistent and controls dust. Since 1990, the Navy
has

1999.) The Navy later obtained receipts incorrect data in the military's

used about 1. 6 billion gallons of for 45 of 79 shipments in question,
databases, has allowed organizations surface water to irrigate this land
each leaving 34 shipments still unaccounted to obtain excess Defense
Department year. This report provides information

for. This follow- up report reviews the (DOD) property to which they may not

on (1) the aviation safety and status of 23 of those shipments. GAO be
entitled. In its investigation of the

operational requirements for the found that most of the shipments

University of Alabama at Huntsville, runway protection zone at Fallon, (2)

written off as lost by the Navy had in GAO found that the University used an
the alternative land used strategies fact been delivered. Twenty of the 23
invalid activity code to obtain more that Fallon identified in response to
shipments were delivered but, because than $3. 5 million worth of excess DOD
congressional direction and how it of procedural and system problems,
property to which it was not entitled.

evaluated them, and (3) the current were not reported as received. GAO
Similarly, a Florida Army National land use strategies at five military was
unable to determine the

Guard unit was able to obtain excess facilities and two commercial airports
whereabouts of the remaining three property between 1998 and 1999 by that
operate in similar environments. shipments because the Navy could not using
an invalid activity code that had

provide documentation. During GAO's been deleted in 1990. Officials at the

RCED/ NSIAD- 00- 55, Jan. 21, 2000 earlier review, Navy officials claimed

Defense Logistics Agency were unable (25 pages). Biotechnology: that some
items written off as lost had to explain why their computer system
Information on Prices of Genetically actually been received. They could not,
had failed to reject the invalid codes. Modified Seeds in the United States
however, provide evidence to support

DOD has exercised poor oversight and Argentina. their contention. They said
that their over the management of excess DOD

information was based primarily on property provided to these Biotechnology
is changing the face of telephone calls and e- mail messages organizations.
GAO found that agriculture, with farmers adopting from the issuing
facilities to the property obtained by the University of genetically
modified seeds at intended recipients. GAO found that Alabama at Huntsville
had not been unprecedented rates. The global area this was primarily
shipping inventoried as required, a significant planted with these seeds
increased

information that was not proof of portion could not be located, and some
more than fifteenfold between 1996 either delivery or receipt. Although of
the property had been misused or and 1998. The genetically modified GAO's
investigation uncovered no stolen. The University also failed to

seeds that are the most widely grown evidence of theft in the shipments it
provide pertinent information to are herbicide-- tolerant soybeans and
reviewed, GAO believes that the government officials, which limited the

insect- resistant corn-- specifically, inventory process is susceptible to
effectiveness of oversight efforts.

Roundup Ready soybeans and Bacillus waste, fraud, and abuse. In- transit
Internal DOD studies have identified thuringiensis (Bt) corn. Farmers in the
inventory discrepancies reduce the

mismanagement of excess property by United States and Argentina have been
reliability of the Defense Department's other universities. at the forefront
of adopting this new inventory financial reports by seed technology.
Although genetically

obscuring true inventory losses and

RCED/ NSIAD- 00- 42, Dec. 10, 1999 modified seeds can be a powerful
misstating the number of items on (35 pages). Federal Facilities:

weapon in a farmer's arsenal of weed hand. Alternative Land Uses Could Save

control and insect protection tools, Water at Fallon Naval Air Station,

these seeds have typically sold for a OSI/ NSIAD- 00- 147, Apr. 28, 2000 (20
Nevada. premium over conventional varieties. pages). Inventory Management:
Better U. S. farmers have raised concerns Controls Needed to Prevent Misuse
of The Navy, which runs the Fallon Naval about the pricing of genetically
Excess DOD Property.

Air Station in Nevada, uses large modified seeds. This report provides
amounts of water-- in a region where information on the (1) prices of The
Defense Reutilization and

water is scarce-- to manage the land Roundup Ready soybean seeds and Bt
Marketing Service transferred and around its runways. Since the 1950s, corn
seeds in the United States and disposed of nearly $18 billion worth of the
Navy has maintained a "greenbelt" Argentina and (2) major reasons for

excess military property between 1996 at the air station that consists of
any price differences between the two and 1999. The excess property is
acreage leased to local farmers who countries for these seeds. available for
reuse by military agencies grow irrigated crops on the land. In the and
government contractors. The

Navy's view, the "greenbelt" protects

RCED/ NSIAD- 00- 82, Mar. 6, 2000 (30 Service can also transfer property to
the facility from fires, lowers the pages). Nuclear Nonproliferation:
federal agencies or donate property to chance of bird strikes or other
damage Limited Progress in Improving Nuclear

Material Security in Russia and the Financial management problems at the
poor facilities and outmoded Newly Independent States.

Defense Department (DOD)-- which administrative and human resource oversees
an estimated $1 trillion in

management practices, seriously Safeguarding nuclear material that can
assets, has nearly $1_ trillion in

undermine the effective representation be used in nuclear weapons is a
reported liabilities, and had a net cost of U. S. interests abroad. This
primary national security concern of of operations of $378 billion in fiscal
testimony focuses on (1) the State the United States, Russia, and other

year 1999-- represent the single largest Department's efforts to implement
the newly independent states of the obstacle that must be overcome before
Panel's recommendations and (2) the former Soviet Union. With the

an unqualified opinion can be rendered challenges and risks the Department
dissolution of the Soviet Union, Russia on the U. S. government's
consolidated will face as it proceeds. and other newly independent states
financial statements. So far, no major inherited about 650 metric tons of
part of DOD has been able to pass the

T- AIMD/ NSIAD- 00- 264, July 20, 2000 highly enriched uranium and test of
an independent audit. Pervasive (24 pages). Department of Defense: plutonium
in forms that are attractive weaknesses in DOD's financial

Implications of Financial Management to thieves. This report discusses (1)
management systems, operations, and Issues, by Jeffrey C. Steinhoff, the
number of buildings that have controls led GAO to put DOD's Assistant
Comptroller General, before received nuclear material security financial
management on its 1995 list the Defense and International Affairs

systems and the amount of nuclear of government areas at high risk for Task
Force, House Committee on material that is protected under those waste,
fraud, abuse, and Budget. systems and (2) the program's costs so

mismanagement. DOD has made far, the amount of program funds that genuine
progress in many areas. GAO Material financial management did not go
directly to program

has seen a strong commitment by the weaknesses at the Defense

activities but have been paid in DOD Comptroller and his counterparts
Department (DOD) continue to Russian taxes, and the estimated cost in the
military services to address represent the single largest obstacle to to
complete the program. The deeply rooted problems. This achieving an
unqualified opinion on Department of Energy has identified testimony
outlines DOD's most

the U. S. government's consolidated 332 buildings in Russia and other
difficult financial management financial statements. So far, no major newly
independent states that require challenges and describes the initiatives

part of DOD has been able to pass the nuclear security systems. As of that
are in place or planned to deal test of an independent audit because
February 2000, Energy had installed with them. of pervasive weaknesses in
the security systems in 113 buildings, most

military's financial management of which contained small amounts of T- AIMD/
NSIAD- 00- 214, June 22, systems, operations, and controls. The nuclear
material suitable for use in 2000 (18 pages). Foreign Affairs:

lack of such key controls and weapons. This report addresses the Effort to
Upgrade Information

information not only hampers DOD's effectiveness of the Department of
Technology Overseas Faces ability to produce timely and accurate Energy's
Material Protection, Control,

Formidable Challenges, by Jack L. financial information but also impairs

and Accounting Program in reducing Brock, Director, Governmentwide and

efforts to improve the economy and the proliferation risk posed by the

Defense Information Systems, before efficiency of its operations. DOD has
theft or diversion of nuclear material the House Committee on International

made genuine progress in many areas, and the ability of Russia and the newly
Relations. and the DOD Comptroller and his independent states to operate and

counterparts have shown a strong maintain the upgraded security The Overseas
Presence Advisory Panel commitment to addressing the systems.

found that many U. S. embassies and department's serious financial

missions are equipped with obsolete management problems. However, Test i
mony information technology systems, major problems remain that are which
prevent efficient

pervasive, long- standing, deeply T- AIMD/ NSIAD- 00- 163, May 9, 2000
communication and effective

rooted, and complex in nature. (52 pages). Department of Defense:
information sharing and storage. In Progress in Financial Management
particular, many systems within U. S.

T- GGD/ NSIAD- 00- 120, Mar. 9, 2000 Reform, by Jeffrey C. Steinhoff, Acting
embassies are incapable of simple (16 pages). Human Capital: Strategic
Assistant Comptroller General, before electronic communications across

Approach Should Guide DOD Civilian the Government Management, department
lines and most are

Workforce Management, by Michael Information and Technology disparate and
not interconnected. In Brostek, Associate Director, Federal Subcommittee,
House Committee on the Panel's judgment, these problems,

Management and Workforce Issues, Government Reform. coupled with such other
problems as and Barry W. Holman, Associate

Director, Defense Management Issues, better training for wartime needs, The
sizeable and growing trade

before the Military Readiness savings from downsizing could pay for

relationship between the United States Subcommittee, House Committee on

expanded health care benefits. GAO and the European Union (EU) is Armed
Services, and Civil Service also finds room for improvement in dominated by
flows of sophisticated Subcommittee, House Committee on TRICARE's
appointment scheduling manufactured goods and services and Government
Reform. and claims processing and in the

extensive cross- Atlantic investment. pharmacy program. E- commerce has
tremendous potential This testimony discusses civilian

to facilitate trade between the United personnel downsizing at the Defense

T- NSIAD- 00- 44, Oct. 14, 1999 (10 States and the EU, but it also raises
Department and suggests a framework pages). Foreign Affairs: Federal

many issues, including consumer that could be useful in approaching the
Response to International Parental protection and market access. The
military's future human capital Child Abductions, by Jess T. Ford,

United States and the EU are trying to management challenges. GAO (1)
Associate Director, International lower these potential barriers to
ecommerce provides some perspectives on why

Relations and Trade Issues, before the through the framework of this is an
opportune time to consider House Committee on International the World Trade
Organization and human capital management in DOD Relations. other forums.
and (2) discusses the human capital self- assessment checklist that GAO has
The State Department estimates that T- NSIAD- 00- 47, Oct. 27, 1999 (9
developed to help agency leaders about 1, 000 children are abducted each
pages). Foreign Assistance: North focus on improving their management year
from the United States by one of Korean Constraints Limit Food Aid

of their most important resources: the their parents. Shortcomings in the
Monitoring, by Henry L. Hinton, Jr., people who carry out the agency's

federal response to these abductions Assistant Comptroller General, before
mission.

have posed obstacles to left- behind the House Committee on International
parents in their attempts to locate and

Relations. T- HEHS/ NSIAD- 00- 129, Mar. 15, return their children. The
following 2000 (15 pages). Defense Health Care:

four issues have received substantial U. S. policy is that no food aid will
be Observations on Proposed Benefit attention: (1) gaps in federal services
provided to North Korea unless the aid Expansion and Overcoming TRICARE to
left- behind parents; (2) weaknesses

can be adequately monitored. The Obstacles, by Stephen P. Backhus, within
the existing State Department World Food Program has established Director,
Veterans' Affairs and Military case- tracking process, which hinder

procedures to track and monitor food Health Care Issues, before the Military
case and program coordination; (3) the aid deliveries in North Korea.
Personnel Subcommittee, House lack of systematic and aggressive However, the
North Korean Committee on Armed Services. diplomatic efforts to improve

government has not allowed the World international responses to parental
Food Program to fully implement its The beneficiaries' benefit child
abductions; and (4) the limited procedures and, as a result, it cannot
enhancements to the military health use of the International Parental be
sure that the food aid is being system proposed in current legislation
Kidnapping Crime Act of 1993 to shipped, stored, or used as planned. and the
Department of Defense fiscal pursue abducting parents and bring
Specifically, the North Korean year 2001 budget request would have them to
justice. The State and Justice

government, which controls food limited impact on retention. Those that
Departments have issued distribution, has denied the World would improve
access or pharmacy recommendations, which they believe

Food Program full access to the food coverage for older retirees should be
will address most of the problems. distribution chain and has not fully
assessed for cost and operational However, several shortcomings raise
provided reports on food use. concerns. Regarding those that would questions
about the likelihood that the

Consequently, the World Food eliminate cost sharing for active- duty
recommendations will be put in place. Program cannot be certain that it is
dependents who obtain care from

reporting accurately on where food civilian providers, GAO notes that the T-
NSIAD- 00- 46, Oct. 13, 1999 (11 donated by the U. S. government is lack of
cost sharing for health benefits pages). Trade With The European being
distributed in North Korea. This leads to unnecessary utilization and Union:
Recent Trends and Electronic

testimony summarizes the October higher costs. In the long term, the size

Commerce Issues, by Susan S. Westin, 1999 report, GAO/ NSIAD- 00- 35. and
structure of the military health Associate Director, International system
need to be reassessed in terms

Relations and Trade Issues, before the

T- NSIAD- 00- 48, Oct. 12, 1999 (9 of how best to achieve its readiness
European Affairs Subcommittee,

pages). Anthrax Vaccine: Safety and mission. If the system can be made
Senate Committee on Foreign

Efficacy Issues, by Kwai- Cheung Chan, significantly smaller and provide
even Relations. Director, Special Studies and

Evaluations, before the House T- NSIAD- 00- 50, Oct. 20, 1999 (9 Mission
Facilities Are Adequately Committee on Government Reform. pages). Combating
Terrorism:

Maintained, by Kwai- Cheung Chan, Observations on the Threat of Director,
Special Studies and Since the Defense Department began

Chemical and Biological Terrorism, by Evaluations, before the Readiness and
vaccinating its 2. 4 million solders and Henry L. Hinton, Jr., Assistant
Management Support Subcommittee, reservists in 1998, concerns have been
Comptroller General, before the

Senate Committee on Armed Services. raised about the safety and efficacy of
National Security, Veterans Affairs, and the military's anthrax vaccine. The

International Relations Subcommittee, The Defense Department (DOD) lacks
Food and Drug Administration House Committee on Government a comprehensive
strategy with which discovered problems during its

Reform. to manage its maintenance and repair inspection of the facility that
produces needs. In the absence of a the vaccine, and some ailing Gulf War
Without substantial backing from a comprehensive strategy, each military
veterans believe that their unexplained state sponsors, most terrorists
would

service sets its own standards for illnesses may have been caused by have to
overcome significant technical maintaining its property, using anthrax
vaccinations received during and other hurdles to produce and difference
methods to assess property the war. This testimony discusses (1) release
chemical and biological conditions, prioritize repairs, and the need for a
six- shot regimen and weapons capable of killing or injuring allocate funds
for maintenance and

annual booster shots, (2) the long- and large numbers of people. According
to repairs. As a result, a barracks rated as short- term safety of the
vaccine, (3)

experts GAO consulted, except for "satisfactory" by one service could be the
efficacy of the vaccine, and (4) the

toxic industrial chemicals, such as rated as "unsatisfactory" by another.
extent to which problems FDA found chlorine, specialized knowledge is Also,
bases within services apply their in the vaccine production facility in
needed in the manufacturing process

own rating criteria differently. Finally, Michigan could compromise the
safety, and in improvising an effective the services have different
efficacy, and quality of the vaccine. delivery system for most chemical and

maintenance funding goals through GAO also discusses the effects of the
nearly all biological weapons.

2005 and plan to fund repairs below vaccine on children and pregnant or
Moreover, some of the components of the levels required to keep facilities
at lactating women. chemical agents and highly infective current conditions.
Therefore, the strains of biological agents are difficult backlog of
repairs, some rated as

T- NSIAD- 00- 49, Oct. 20, 1999 (10 to obtain. Finally, terrorists would
face "critical," will rise. GAO found several

pages). Chemical and Biological other obstacles in carrying out a promising
practices in the

Defense: Observations on Actions successful attack, from unfavorable
maintenance area among nonmilitary Taken to Protect Military Forces, by
weather conditions to personal safety entities, although none of the
military Norman J. Rabkin, Director, National risks. The President's fiscal
year 2000 services has implemented all of these Security Preparedness
Issues, before budget proposes $10 billion for

promising practices. Because the the Military Procurement counterterrorism
programs-- an services lack accurate and consistent Subcommittee, House
Committee on increase of more than $3 billion over data, Congress does not
know if it is Armed Services, and Military Research the amount requested for
fiscal year funding maintenance and repairs that and Development
Subcommittee, 1999. To determine whether the

will provide the best return on its House Committee on Armed Services.
government is spending enough on investment.

counterterrorism and spending this Problems during the Gulf War revealed
money on the most appropriate T- NSIAD- 00- 53, Oct. 28, 1999 (8 that U. S.
troops were poorly prepared programs, policymakers need the best pages).
Export Controls: for surviving and operating in a estimates of the specific
threats facing Implementation of the 1998 Legislative chemically or
biologically the United States. The intelligence Mandate for High
Performance contaminated environment. During the community has recently
produced

Computers, by Jim Johnson, Associate 1990s, GAO issued a host of reports
estimates of terrorist threats from Director, International Relations and
and testimony on the ability of U. S.

abroad involving chemical and Trade Issues, before the House forces to
survive and function on a

biological weapons. GAO recommends Committee on Armed Services. contaminated
battlefield. This that the FBI prepare comparable testimony summarizes the
findings of estimates for domestic threats. In 1996, the government removed
those reports and testimony and

licensing requirements for most describes GAO's efforts to update the

T- NSIAD- 00- 51, Oct. 26, 1999 (11 exports of high performance status of
the Defense Department's

pages). Military Real Property computers to civilian end users but actions.
Maintenance: Improvements Are kept a licensing requirement for Needed to
Ensure That Critical countries of concern. This change

made exporters responsible for Schuster, Associate Director, National T-
NSIAD- 00- 77, Jan. 27, 2000 (19 determining whether they needed to Security
Preparedness Issues, before pages). Drug Control: DOD Allocates apply for an
export license on the basis the National Security, Veterans Affairs,

Fewer Assets to Drug Control Efforts, of their knowledge of the end user's
and International Relations

by Jess T. Ford, Associate Director, activities. In 1997, several U. S.
Subcommittee, House Committee on International Relations and Trade exporters
shipped high performance Government Reform.

Issues, before the Criminal Justice, computers to Russian nuclear Drug
Policy and Human Resources weapons laboratories and to a military

Between 1982 and 1999, 80 people Subcommittee, House Committee on end user
without licenses. Congress were convicted of committing Government Reform.
has since required exporters to notify espionage against the United States;
68 the Commerce Department of any

of them were Defense Department Since 1992, the Defense Department's
proposed export of high performance

(DOD) employees, and all had level of support to combat drugtrafficking

computers to countries of concern- including undergone personnel security in
Central and South

China, Russia, India, investigations and held security America and the
Caribbean has Pakistan, Israel, and Egypt-- to

clearances. GAO's evaluation of declined significantly. For example,
determine whether a license is needed. personnel security investigations by
the number of flight hours devoted to This testimony discusses whether (1)
the Defense Security Service-- the key counterdrug missions fell 68 percent
exporters' notifications to Commerce agency responsible for investigating

from 1992 through 1999. Likewise, the have resulted in any license DOD's
civilian and military personnel, number of ship days fell 62 percent
applications and what actions have consultants, and contractors- uncovered
during the same period. According to been taken on these licenses and (2)

serious lapses in the the Southern Command, the lack of Commerce is
verifying the use of high thoroughness and timeliness of the

assets hurt their ability to respond performance computers after their
investigations. This finding raises quickly to changing drug- trafficking
export to these countries. questions about the risks that such

patterns. As a result, coverage in key lapses pose to national security. An
drug- trafficking routes to the United T- NSIAD- 00- 58, Dec. 7, 1999 (8
analysis of 530 personnel security

States is lower, leaving gaps in pages). Defense Acquisitions:
investigations found that the vast

detection. DOD acknowledges that its Progress in Meeting F- 22 Cost and
majority did not comply with federal coverage of key drug- trafficking areas
Schedule Goals, by Louis J. Rodrigues,

standards for conducting such in South American and the Caribbean Director,
Defense Acquisitions Issues, investigations. All of the persons

has gaps. DOD ascribes the decline in before the National Security, Veterans
investigated were granted top security its support to the lower priority of
the Affairs, and International Relations clearances even though Defense

counterdrug mission as compared to Subcommittee, House Committee on Security
Service investigators had not others, such as war, peacekeeping, and
Government Reform. always verified such basic information

training, as well as decreases in its as residency, citizenship, or overall
budget and force structure GAO reported in March 1999 on the

employment. Also, investigations had during the 1990s. Despite the reduction
extent to which cost, schedule, and not been completed in a timely in the
level of assets that it provides, performance goals were being met in
manner, and a backlog of more than DOD believes that its overall the F- 22
aircraft's engineering and 600, 000 cases now awaits

operations are more efficient. Data to manufacturing development program.
reinvestigation. In examining the support this position is lacking, (See
GAO/ NSIAD- 99- 55 and GAO/ TNSIAD- reasons for these deficiencies, GAO
however. DOD faces several obstacles 99- 113.) This statement for the

found that the Defense Security to helping the counterdrug efforts of record
summarizes the relevant parts Service-- in an effort to streamline foreign
governments. GAO has of that report and testimony, describes operations and
improve efficiency- relaxed repeatedly raised concerns about the

the congressional actions on the fiscal its investigative guidance, limited
capabilities of foreign military year 2000 budget request, updates the
eliminated key quality control

and law enforcement organizations to information that GAO gave Congress
mechanisms, inadequately trained its

operate and repair the equipment and in March, and discusses initiatives by
investigators, and ineffectively effectively use the training provided by
the Air Force and contractors to managed the automation of its
caseprocessing DOD. Other concerns include human control production costs.

system. The underlying rights and intelligence sharing. Finally, cause of
the Defense Security Service's

DOD has a set of plans and strategies

T- NSIAD- 00- 65, Feb. 16, 2000 (12 problems, however, is poor oversight
that directly supports the goals of the pages). DOD Personnel: Inadequate by
DOD. U. S. National Drug Control Strategy to Personnel Security
Investigations Pose reduce the demand and supply of National Security Risks,
by Carol R. illegal drugs. However, DOD lacks a

set of performance measures to there was a lack of agreement on many
developing countries on the eve of the evaluate its counterdrug activities.

issues among major trading partners conference. The sensitivity and and
between developed and many complexity of the issues to be T- NSIAD- 00- 79,
Feb. 2, 2000 (11 developing countries on the eve of the

discussed led to disagreements over pages). Gulf War Illnesses: Basic
conference. The sensitivity and the scope of the negotiations. Second,
Questions Unanswered, by KwaiCheung complexity of the issues to be the
Seattle negotiation process had Chan, Director, Special Studies

discussed led to disagreements over inherent difficulties. For example, the
and Evaluations, before the National the scope of the negotiations. Second,

document used as the basis for Security, Veterans Affairs, and the Seattle
negotiation process had

negotiations was a poor starting point International Relations Subcommittee,
inherent difficulties. For example, the for reaching consensus. Also, the
House Committee on Government document used as the basis for negotiating
process was hampered by Reform. negotiations was a poor starting point the
newness of the WTO leadership for reaching consensus. Also, the

team and the challenge of The Departments of Veterans' Affairs, negotiating
process was hampered by accommodating the needs and Health and Human
Services, and

the newness of the WTO leadership interests of a large and increasingly
Defense (DOD) spent more than $121 team and the challenge of diverse WTO
membership. The million during fiscal years 1997 and accommodating the needs
and following lessons can be learned: 1998 to research and investigate the
interests of a large and increasingly Efforts to launch a new round of
illnesses of Gulf War veterans. DOD

diverse WTO membership. The negotiations may have been spent $112 million of
this amount, following lessons can be learned:

premature. Ministerial conferences are mostly through its Office of the
Special

Efforts to launch a new round of more likely to succeed if they address
Assistant for Gulf War Illnesses. The

negotiations may have been only a handful of politically difficult results
of the research and the premature. Ministerial conferences are decisions and
consensus is reached on investigation efforts are accruing more likely to
succeed if they address

most issues beforehand. WTO needs to slowly, and basic questions about the
only a handful of politically difficult find ways to address the
institutional causes, the course of development, decisions and consensus is
reached on challenges posed by the increase in the

and the treatments of Gulf War most issues beforehand. WTO needs to number
and the diversity of its veterans' illnesses remain unanswered. find ways to
address the institutional

members. Holding high- profile WTO GAO found that the activities of the

challenges posed by the increase in the meetings in countries that are major

Office of the Special Assistant are not number and the diversity of its
trading partners, such as the United effectively coordinated with those of
members. Holding high- profile WTO

States and the European Union, may the Research Working Group. Also,

meetings in countries that are major pose difficulties. work was improperly
awarded to the

trading partners, such as the United Office's support contractors for tasks
States and the European Union, may

T- NSIAD- 00- 98, Feb. 29, 2000 (12 worth more than $20 million. This pose
difficulties. pages). Defense Budget: Visibility and testimony summarizes
the January

Accountability of O& M Fund 2000 report, GAO/ NSIAD- 00- 32. T- NSIAD- 00-
86, Feb. 10, 2000 (10 Movements, by Norman J. Rabkin, pages). World Trade
Organization: Director, National Security T- NSIAD- 00- 84, Feb. 8, 2000 (10
Seattle Ministerial: Outcomes and Preparedness, before the Military pages).
World Trade Organization: Lessons Learned, by Susan S. Westin,

Readiness Subcommittee, House Seattle Ministerial: Outcomes and Associate
Director, International Committee on Armed Services. Lessons Learned, by
Susan S. Westin, Relations and Trade Issues, before the Associate Director,
International Senate Committee on Finance. Congress has raised concerns
about Relations and Trade Issues, before the the extent to which the
military has

Trade Subcommittee, House Member countries of the World Trade moved funds
that directly affect Committee on Ways and Means.

Organization (WTO) failed to meet readiness, such as those that finance
their goal of launching a new round of training, to pay for real property
Member countries of the World Trade multilateral trade negotiations at their

maintenance and base operations. Organization (WTO) failed to meet biennial
ministerial conference last GAO found that from fiscal years 1994 their goal
of launching a new round of December in Seattle. Although a through 1999,
the military reported multilateral trade negotiations at their combination
of factors led to the obligations that were $7. 1 billion (eight biennial
ministerial conference last impasse, two themes emerged. First,

percent) more for real property December in Seattle. Although a there was a
lack of agreement on many maintenance and base operations than combination
of factors led to the issues among major trading partners

the $88.6 billion initially designated by impasse, two themes emerged.
First, and between developed and many Congress. Nearly three- fourths of the

$2. 7 billion increase from fiscal year billion is needed annually to
address been having difficulty recruiting 1996 to 1999 went for base
operations,

the epidemic in Africa- more than three qualified enlisted personnel. The
three with the rest going to real property times the current level of
spending. services have responded by refocusing maintenance. For fiscal
years 1994 attention on this area and adding through 1999, the services'
movement

T- NSIAD- 00- 101, Mar. 1, 2000 (6 resources. For example, most have of
funds in and out of unit training pages). Defense Budget: Real Property
increased their recruiting budgets and varied. The Army and the Air Force
Maintenance and Base Operations added recruiters. They have also have moved
unit training funds to base Fund Movements, by Neal P. Curtin,

offered larger enlistment bonuses and operations and real property Associate
Director, National Security more money for college. The services
maintenance. This testimony Preparedness, before the Military have also
tried more innovative ways summarizes the February 2000 report,

Readiness Subcommittee, House to expand their shrinking recruiting GAO/
NSIAD- 00- 87. Committee on Armed Services. market without sacrificing the
quality of recruits. For example, the Army is T- NSIAD- 00- 99, Feb. 24,
2000 (6 From fiscal years 1994 through 1999, experimenting with attracting
youth pages). Global Health: The U. S. and the military moved $7. 1 billion
into real who lack high school diplomas. The U. N. Response to the AIDS
Crisis in property maintenance and base Army is prepared to sponsor these
Africa, by Benjamin F. Nelson,

operations, bringing the total funding applicants and help them attain
Director, International Relations and

for these activities to $95. 7 billion or enlistment standards through

Trade Issues, before the African Affairs eight percent more than the
original attendance- based courses. The

Subcommittee, Senate Committee on congressional designation. The services
also hope to more vigorously Foreign Relations.

movement of funds into and out of target students at community colleges.
training varied according to the The services' recruiting problems are
Despite breakthroughs in the military services. Although it is

compounded by the fact that they have prevention and treatment of AIDS, the
impossible to trace the origins of all historically lost about one- third of
epidemic continues to grow in Africa. funds moved into real property their
enlistees before the initial terms The broader economic and social

maintenance and base operations and of service have been completed.
consequences are becoming clear-- and to determine the effects of these

Although many of the services' efforts they are not good. During the last
movements on readiness, Defense

to remedy this problem appear decade, the life expectancy in nine Department
(DOD) reports show that promising, the military's overall rate of African
countries fell by more than 17 at least some of the money that the attrition
continues to rise: it reached years because of AIDS. The United Army and the
Air Force moved into an all- time high of nearly 37 percent at Nation's
Joint Program on HIV/ AIDS these activities came from unit

the end of fiscal year 1998. The estimates that 42 million African training.
DOD's reports to Congress on services will not be able to develop children
will lose one or both parents

high- priority readiness- related appropriate measures to reduce to AIDS by
2010. In addition, the gross

transfers in fiscal years 1997 and 1998 attrition until they have more
precise

domestic product in many counties is show that the Army moved $641

data on why these new recruits are expected to decline by as much as 20
million from unit training to real leaving the military early-- a point
percent. The countries in sub- Saharan

property maintenance and attribute raised in earlier GAO reports. (See
Africa are among the poorest in the

these movements to greater GAO/ NSIAD- 97- 39, Jan. 1997, and world, and
their ability to respond to efficiencies in training. The fiscal year GAO/
NSIAD- 98- 213, Sept. 1998.) The the epidemic is limited. At the same 1998
report also shows that the Air

Defense Department and the services time, the United States and the United
Force moved $35 million from unit are making progress in collecting Nations
have made important training to base operations. accurate data on why people
leave the contributions to the fight against AIDS. service early, especially
for medical Research supported by the U. S.

T- NSIAD- 00- 102, Feb. 24, 2000 (18 reasons. However, despite efforts to
Agency for International Development pages). Military Personnel: First- Term

target enlistees whom they want to has helped to identify proven Recruiting
and Attrition Continue to rehabilitate, such as those who fail the
interventions to help stop the spread Require Focused Attention, by Norman
physical training test or appear to be of the disease. The U. N. 's Joint J.
Rabkin, Director, National Security struggling with academic or language
Program on HIV/ AIDS has been an Preparedness Issues, before the

problems in basic training, the services important advocate for greater
Personnel Subcommittee, Senate have yet to extend their data collection
spending on AIDS programs by Committee on Armed Services. efforts to include
other reasons for national governments, private separation.

companies, and donors. The World During the last two years, the Army, Bank,
however, estimates that $1 the Navy, and the Army Forces have

T- NSIAD- 00- 104, Feb. 28, 2000 (9 T- NSIAD- 00- 110, Mar. 8, 2000 (21
2005, and they plan to fund repairs

pages). Export Controls: National pages). Military Personnel: below the
levels required to keep most

Security Risks and Revisions To Preliminary Results of DOD's 1999 facilities
at current conditions.

Controls on Computers, by Jim Survey of Active Duty Members, by Therefore,
the backlog of repairs, Johnson, Associate Director,

Norman J. Rabkin, Director, National some rated �critical,� will increase.
International Relations and Trade

Security Preparedness Issues, before GAO found several promising Issues,
before the Senate Committee

the Military Personnel Subcommittee, practices in the maintenance area on
Armed Services. House Committee on Armed Services.

among nonmilitary groups, such as (1) using a single system for counting the
The United States has long controlled

Since the end of the Cold War and number and type of facilities and for the
export of high- performance subsequent military downsizing, the assessing
their conditions and (2) computers to sensitive destinations, U. S. armed
forces have undergone ranking budget allocations for all such as Russia and
China. These

considerable change. Some accounts facilities using common criteria,
computers have both civil and military

of military life today paint a bleak including physical condition, relevance
uses, and technological advances in picture. Reports of declining military
of facilities to the mission, and lifecycle computing power have been rapid.
The

readiness and lower retention rates costing and budgeting. Adoption Commerce
Department has primary

raise several questions. What is the of these practices by the military,
responsibility for managing the

level of satisfaction in the military however, is hampered by several
licensing of these dual- use items and

ranks? What is keeping people in, or factors. GAO has recommended that
weighing the promotion of commercial driving them out, of the military? Is
the DOD fund a comprehensive strategic interests in exporting items against
the military being stretched too thin, real property maintenance plan. GAO
protection of national security resulting in long hours and too much has
also recommended that DOD interests. Congress has raised time away from
home? And finally, develop a cross- service, integrated concerns in recent
years about

how do military personnel think that strategy to comprehensively address
whether U. S. national security is being

they are faring in today's strong real property maintenance issues. In
harmed by relaxing export controls on

economy? This testimony addresses response, DOD has taken several steps

high- performance computers and over these issues in an analysis of the
that, in GAO's view, demonstrate a the rationale for subsequent revised

Defense Department's 1999 survey of positive commitment to change. controls.
The executive branch has yet active duty personnel. to clearly articulate
the specific

T- NSIAD- 00- 112, Mar. 3, 2000 (14 national security interests to be T-
NSIAD- 00- 111, Mar. 1, 2000 (14 pages). Depot Maintenance: Air Force
protected by controlling the export of pages). Military Real Property Faces
Challenges in Managing to 50- 50 computers at various performance

Maintenance: Management Ceiling, by David R. Warren, Director, levels. It
also has not indicated how Improvements are Needed to Ensure Defense
Management Issues, before countries of military concern could Adequate
Facilities, by Kwai- Cheung the Readiness Subcommittee, Senate benefit from
using such technology. Chan, Director, Special Studies and

Committee on Armed Services. Without a clear statement of these Evaluations,
before the Military interests, it is unclear how the Readiness Subcommittee,
House The Air Force recently waived a executive branch determines what are

Committee on Armed Services. provision of 10 U. S. C. 2466 that places
militarily critical applications that may a 50- percent ceiling on the
amount of affect U. S. national security. Also, the

The Defense Department (DOD) lacks depot maintenance funds that can be
executive branch has revised export a comprehensive strategy for used for
work done by the private controls on computers because it managing its
maintenance and repair sector. The statute allows the military believes that
these machines, at the needs. Each of the military services to waive the 50-
percent requirement

previously approved levels, had now sets it own standards for for reasons of
national security. In become so widely available in the maintaining its
property, using notifying Congress of the waiver, the market that their
export is different methods to assess priority

Air Force explained that waiver was uncontrollable. However, GAO could

conditions, prioritize repairs, and needed primarily because the private not
assess the justification for the July

allocate funds for maintenance and sector was needed to temporarily 1999
export control levels because the repairs. GAO also found that bases and
support maintenance that is being terms "widely available" and the major
commands within the

moved from the closing Sacramento, "uncontrollable" used to explain the
services sometimes apply their own California, and San Antonio, Texas,
policy change are not clearly defined assessment criteria inconsistently. In
depots to other military depots or and are not found in law or regulation.

addition, the services have different private sector sources. This testimony
maintenance funding goals through focuses on the basis for the waiver and

the likelihood that the Air Force will Westin, Associate Director,
communications and accountability, need additional waivers in the future.

International Relations and Trade and improving performance planning Issues,
before the International Trade to better achieve mission objectives.

T- NSIAD- 00- 117, Mar. 15, 2000 (7 Subcommittee, Senate Committee on
pages). Agent Orange: Persisting Finance.

T- NSIAD- 00- 128, Mar. 16, 2000 (9 Problems With Communication of pages).
Space Station: Russian Ranch Hand Study Data and Results, This testimony
provides observations

Compliance With Safety Requirements, by Kwai- Cheung Chan, Director,

on the negotiations on agricultural by Allen Li, Associate Director, Special
Studies and Evaluations, trade being conducted by the World

Defense Acquisitions, before the Space before the National Security,
Veterans Trade Organization (WTO). GAO and Aeronautics Subcommittee, House
Affairs, and International Relations

discusses the (1) objectives of the Committee on Science.

Subcommittee, House Committee on United States and other countries in
Government Reform. the agricultural trade negotiations, (2)

Although the space station progress achieved during the 1999 components
supplied by the Russians The Ranch Hand Study-- a study of WTO Seattle
ministerial conference, have complied with most safety mortality rates among
the nearly 1,300

and (3) prospects for future standards, two Russian- built modules Air Force
personnel who sprayed negotiations.

still fall short in meeting some herbicides from the air in Vietnam-- has
important requirements. These had little impact so far on decisions

T- NSIAD- 00- 124, Mar. 8, 2000 (11 modules are the Zarya, which provides
affecting veterans' compensation. Its

pages). State Department: Progress the initial propulsion and guidance most
significant impact has been on a and Challenges in Addressing functions for
the space station, and the decision by the Department of Management Issues,
by Benjamin F. Service Module, which will provide Veterans' Affairs to
compensate Nelson, Director, International living quarters, life support
systems, veterans with children born with spina Relations and Trade Issues,
before the and guidance functions after docking bifida. However, it has not
positively or International Operations with Zarya. Significant areas of
negatively influenced decisions to Subcommittee, Senate Committee on
noncompliance on one or both of the compensate for other diseases. The

Foreign Relations. modules include (1) inadequate study has also led to
greater discussion shielding from orbital debris, (2) an and further study
of the association

The State Department-- the lead agency inability to operate after losing
cabin

between herbicide exposure and for advancing and protecting U. S.

pressure, (3) a lack of verification for diabetes, a link that was first
reported interests abroad-- maintains a the design and service life of
windows, by the Ranch Hand study in 1991. worldwide network of operations at
and (4) excessive noise levels. NASA Currently, Vietnam veterans with more
than 250 locations overseas to officials said that shortfalls in Russian

diabetes are not eligible for support its mission and those of 35

funding, designs based on existing compensation. The relatively small other
U. S. agencies. A substantial Russian hardware, and technical size of the
Ranch Hand population share of the Department's $3- billion

disagreements with Russian engineers limits the study's ability to detect
annual budget goes to support these are the main reasons the modules do
increases in the risks of rare diseases, operations, which range from

not comply with safety requirements. including many forms of cancer.
providing security for more than NASA waived compliance with safety Although
the Air Force has conducted 50, 000 State Department and other requirements
after determining that many aspects of the study in a rigorous

U. S. agency personnel to finding the risks were acceptable, allowing
manner, GAO found several past and suitable housing for American Zarya to be
launched. It has yet to ongoing problems, including delays in employees and
their families. This

approve all instances of the dissemination of results, limited testimony
focuses on the management noncompliance for the Service public access to
detailed data, poor

challenges that State faces in Module. The four most significant
communication of the study's improving its operations in the

instances in which Zarya failed to meet limitations, failure to implement
some following four areas: improving the

safety requirements or had measures to ensure rigor and security of U. S.
personnel and performance problems did not warrant independence, and
insufficient facilities overseas in a cost- effective compensation from the
contractor, outreach to veterans.

and timely manner, determining the according to NASA. right size and
location of the U. S.

T- NSIAD- 00- 122, Mar. 7, 2000 (7 overseas presence to improve the T-
NSIAD- 00- 130, Mar. 22, 2000 (13 pages). World Trade Organization:

efficiency of operations, upgrading pages). Chemical and Biological Progress
in Agricultural Trade information and financial management Defense:
Observations on Nonmedical Negotiations May Be Slow, by Susan S. systems to
further strengthen Chemical and Biological R& D

Programs, by Kwai- Cheung Chan, The Defense Department (DOD) has about 3,
000 to about 1, 800 full- time Director, Special Studies and made the Joint
Strike Fighter program

equivalent employees. NASA based its Evaluations, before the National

a leading example of military downsizing decision on optimistic Security,
Veterans Affairs, and acquisition reform. A key concept is to assumptions.
For example, NASA International Relations Subcommittee, demonstrate, before
moving into the believed that it could cut its workforce House Committee on
Government engineering and manufacturing phase, by consolidating contracts
for flight, Reform. that critical technologies, processes, ground, and
mission operations.

and system characteristics are able to Several studies, one as recent as
March In the last decade, concerns about the produce an affordable family of
strike 2000, have reported that the shuttle possible use of chemical and
biological aircraft-- one that meets all

program's workforce has been harmed weapons in both military and civilian
participants' needs. Once a weapons by the downsizing. The studies settings
has prompted Congress and system enters the development phase,

concluded that the existing workforce federal agencies to launch new a
large, fixed investment has already

is stretched thin to the point where programs or expand existing ones to
been made and any significant changes

there is just one qualified person in address these threats. Overall funding
at that point will have a ripple effect on many critical areas. In addition,
the in these areas has risen significantly cost and schedule. Although GAO
is

workforce is showing signs of since 1996. Today, several civilian and
encouraged by the design of the

overwork and fatigue, and the military agencies are conducting acquisition
strategy for the Joint Strike program's workforce age distribution research
and development to counter Fighter, GAO has concerns about its

and skill mix now limit opportunities these threats. Without effective
implementation. GAO's biggest

to mentor newer staff. NASA has coordination among the different concern is
that critical technologies responded to these problems in agencies, however,
their efforts might

are projected to be at low levels of several ways. It has ended its be
unnecessarily duplicated and

technical maturity when the downsizing program and is increasing

important questions may be engineering and manufacturing its budget to hire
another 95 full- time overlooked. This testimony identifies development
contract is scheduled to employees for the shuttle program in similarities
among nonmedical be awarded. Also, when the competing fiscal year 2000.
Also, the head of research and development programs contractors experienced
design NASA has directed the agency's and explains how coordination problems
and cost overruns, DOD

managers to consider ways to reduce mechanisms could effectively address
restructured the program in a way that workforce stress. GAO recently issued
potential duplication, research gaps,

will provide less information than a checklist for agency leaders to use in
and opportunities for collaboration. originally planned before selecting
developing human capital strategies. GAO focuses on the following four
between the two competing The checklist follows a five- part programs: (1)
the Defense contractors' proposals. GAO believes strategy, including
strategic planning, Department's Chemical and Biological that program
managers should organizational alignment, leadership, Defense Program, (2)
the Defense continue to focus on risk- reduction talent, and performance
culture. The

Advanced Research Projects Agency's efforts by maturing critical checklist
helps to link human capital Biological Warfare Defense Program, technologies
before entering programs and the agency's mission,

(3) the Department of Energy's engineering and manufacturing goals, and
strategies. GAO believes

Chemical and Biological development and be allowed to do so that NASA's
attention to human capital Nonproliferation Program, and (4) the without the
penalty of withdrawal of issues will be essential to the success
Counterterror Technical Support funding support. of the shuttle programs.
Program conducted by an interagency working group.

T- NSIAD- 00- 133, Mar. 22, 2000 (9 T- NSIAD- 00- 137, Apr. 26, 2000 (16
pages). Space Shuttle: Human Capital pages). Defense Acquisition: T- NSIAD-
00- 132, Mar. 16, 2000 (15 Challenges Require Management Employing Best
Practices Can Shape pages). Joint Strike Fighter

Attention, by Allen Li, Associate Better Weapon System Decisions, by
Acquisition: Development Schedule Director, Defense Acquisitions Issues,

David M. Walker, Comptroller General Should Be Changed to Reduce Risks,

before the Science, Technology, and of the United States, before the by
Louis J. Rodrigues, Director,

Space Subcommittee, Senate Readiness and Management Support Defense
Acquisitions Issues, before Committee on Commerce, Science and Subcommittee,
Senate Committee on the Military Procurement Transportation. Armed Services.
Subcommittee, House Committee on

Armed Services, and Military Research NASA's budget data show that, since In
its hundreds of reviews of weapons

and Development Subcommittee, 1995, the workforce for the space systems
during the last 20 years, GAO

House Committee on Armed Services. shuttle program has declined from has
cited the same problems time and

time again: cost overruns, schedule performance computers, which have One of
the major shortcomings in delays, and performance both civilian and military
uses, to federal efforts to combat terrorism is shortcomings. In GAO's view,
the sensitive destinations, such as Russia

the lack of linkage among the terrorist military's acquisition process has
builtin and China. This testimony draws on threat, a national strategy, and
agency incentives that encourage the recent GAO work on export controls

resources. Improvements are also premature commencement of for high
performance computers. (See needed in intergovernmental relations weapons
programs; the exaggeration GAO/ NSIAD- 98- 196, Sept. 1998, and

at the federal, state, and local levels. of performance capabilities; and
the GAO/ NSIAD- 00- 45, Nov. 1999.) GAO The reality is that the federal
understatement of expected costs, (1) assesses the national security risks

government cannot respond on its own schedules, and risks. Leading firms in
associated with high performance to terrorist attacks involving chemical,
the private sector-- from Chrysler to computers being exported to countries

biological, radiological, or nuclear Caterpillar-- have developed of concern
and (2) determines when weapons. The Gilmore Panel, which increasingly
sophisticated products in the export of computers at existing issued its
first report last year, found less time and at lower costs. Behind
performance levels can no longer be may of the same problems that GAO their
success is a knowledge- based

controlled. has cited, including the need for (1)

approach that demands realism and more rigorous analyses of the threat,
candor at every stage of product T- NSIAD- 00- 140, Apr. 14, 2000 (5 (2)
better management of federal development. At the end of product pages).
Contract Management: DOD's

programs, (3) stronger coordination development, at which point key Anthrax
Vaccine Manufacturer Will with state and local officials, and (4) a
technologies are "matured," or proven Continue to Need Financial

national strategy to combat terrorism. to work, these firms know that they
Assistance, by David E. Cooper, will be able to deliver a product that
Associate Director, Defense

T- NSIAD- 00- 148, Apr. 6, 2000 (10 meets cost, quality, and schedule
Acquisitions Issues, before the pages). DOD Personnel: Weaknesses targets.
The Defense Department, on Personnel Subcommittee, Senate in Security
Investigation Program Are the other hand, often rushes its Committee on
Armed Services. Being Addressed, by Carol R. Schuster, weapons system
prototypes into Associate Director, National Security production only to
discover later that The Defense Department (DOD)

Preparedness Issues, before the Senate they cost more than expected, take
considers the use of anthrax by enemy Committee on Armed Services. longer to
produce, and deliver less forces to be the single greatest than expected. A
knowledge- based biological threat to U. S. troops.

From 1982 to 1999, 68 of the 80 approach could help to reshape DOD's
BioPort, the only company licensed by persons convicted of spying against
acquisition process. Programs the Food and Drug Administration to the United
States were Defense managed using best practices are more produce the
anthrax vaccine in the Department (DOD) employees. All of likely to avoid
cost and schedule United States, has experienced them had undergone
personnel

overruns, which would alleviate the financial difficulties that have
security investigations and held need for DOD to offset unexpected
jeopardized the military's anthrax

security clearances. This testimony cost increases by disrupting funding
vaccination program. In response to describes how decisions are made to for
other modernization efforts. the company's problems, DOD has

grant or deny security clearances to provided BioPort with financial DOD
employees and contractors,

T- NSIAD- 00- 139, Mar. 23, 2000 (9 assistance. This testimony discusses
summarizes the key findings from pages). Export Controls: National (1) the
financial assistance DOD

GAO's recent report on this subject Security Risks and Revisions to provided
BioPort in 1999 and (2) the (GAO/ NSIAD- 00- 12, Oct. 1999), and Controls on
Computer Systems, by Jim additional financial assistance DOD is discusses
the steps that DOD has Johnson, Associate Director,

providing BioPort in 2000. taken in response to GAO's International
Relations and Trade

recommendations. Issues, before the Senate Committee

T- NSIAD- 00- 145, Apr. 6, 2000 (15 on Armed Services. pages). Combating
Terrorism: Issues T- NSIAD- 00- 157, Apr. 13, 2000 (9 in Managing
Counterterrorist pages). Medical Readiness: DOD

U. S. policy on the export of sensitive Programs, by Norman J. Rabkin,

Continues to Face Challenges in technology, including computers, is to
Director, National Security Implementing Its Anthrax Vaccine strike a
balance between the desire to Preparedness Issues, before the

Immunization Program, by Carol R. promote American exports and the
Oversight, Investigations, and

Schuster, Associate Director, National need to protect U. S. national
security Emergency Management Security Preparedness Issues, before
interests. The United States has long Subcommittee, House Committee on the
Senate Committee on Armed

controlled the export of high Transportation and Infrastructure. Services.

Anthrax is an infectious disease that is T- NSIAD- 00- 172, May 4, 2000 (5
exceptions, proceed with lower levels 99- percent fatal in people who have
pages). Combating Terrorism:

of knowledge about key factors of not been vaccinated. The Defense Comments
on Bill H. R. 4210 to Manage product development and allow Department (DOD)
has made anthrax Selected Counterterrorist Programs, technology development
to take place vaccination a priority in protecting by Norman J. Rabkin,
Director,

during product development. DOD has U. S. troops against biological National
Security Preparedness Issues, designated the Joint Strike Fighter as a
weapons. In late 1997, DOD before the Oversight, Investigations,

flagship program for acquisition announced plans to immunize all 2. 4 and
Emergency Management

reform. GAO found that, by best million U. S. military personnel-- both
Subcommittee, House Committee on practices standards, none of the active
duty and reserve-- with a Transportation and Infrastructure.

plane's critical technologies are licensed anthrax vaccine. This

expected to be at an acceptable level testimony updates the key findings of
GAO believes that H. R. 4210-- the of readiness before starting an October
1999 GAO report. (See Terrorism Preparedness Act of 2000- would engineering
and manufacturing GAO/ NSIAD- 00- 36.) These findings address the
fragmentation and

development. Delaying this phase of related to vaccine supply, medical
duplication that GAO and others have the program until these technologies
records, and efforts to educate found in programs to combat are mature would
improve the chances servicemembers about the program. terrorism. The bill
would create a new that the Joint Strike Fighter will be This testimony also
reviews other

Office of Terrorism Preparedness to fielded as planned. However, despite
aspects of the anthrax vaccine centralize leadership and coordination

lacking the requisite knowledge for the immunization program, including the
of federal programs to help state and plane's critical technologies, DOD has
safety and the efficacy of the vaccine local governments prepare for
terrorist deemed the risks manageable and and the contracts with the

incidents involving weapons of mass plans to move ahead with the program
manufacturer. destruction. However, the duties of the

as planned. Such a decision reinforces new office, as described in the bill,

traditional incentives and increases T- NSIAD- 00- 169, May 10, 2000 (15 may
overlap with some duties of the

the likelihood that the program will pages). United Nations: Reforms Are
newly created National Domestic experience cost, schedule, and Progressing,
but Overall Objectives Preparedness Office. In GAO's view, performance
problems. Have Not Yet Been Achieved, by Jim

success in achieving the bill's goals Johnson, Associate Director, depends
on the ability of the Office T- NSIAD- 00- 180, May 24, 2000 (12
International Relations and Trade head to build consensus among the pages).
Chemical and Biological Issues, before the International involved agencies.
Also, the new office

Defense: Program Planning and Operations Subcommittee, Senate may take some
time to accomplish its Evaluation Should Follow Results Act Committee on
Foreign Relations. objectives presented in the bill. Framework, by Kwai-
Cheung Chan,

Director, Special Studies and The United Nations has substantially T- NSIAD-
00- 173, May 10, 2000 (20 Evaluations, before the National restructured its
leadership and

pages). Defense Acquisitions: Security, Veterans Affairs, and

operations and partly implemented a Decisions on the Joint Strike Fighter

International Relations Subcommittee, merit- based and performance- oriented
Will Be Critical for Acquisition Reform,

House Committee on Government human capital system, and these by Louis J.
Rodrigues, Director, Reform. reforms have strengthened the U. N. 's

Defense Acquisitions Issues, before operations. Although progress is being
the National Security, Veterans Affairs, During the last decade, concerns
about made, the overall objectives of the and International Relations the
possible use of chemical and reform have yet to be achieved. The

Subcommittee, House Committee on biological weapons in both military U. N.
has not yet implemented reforms Government Reform.

and civilian settings have led Congress to focus its programming and to
boost funding for new and budgeting on managing the

Leading commercial firms have expanded initiatives to counter these
Secretariat's performance. These adopted a knowledge- based approach
threats. For example, the Chemical initiatives would allow member states to
developing new products, one that and Biological Defense Program

to hold the Secretariat accountable for uses incentives to encourage realism

appropriation has more than doubled results and are key to the success of
and candor. Making sure that new from $388 million in fiscal year 1996 to
the overall reform because they technology is mature-- that is, showing $791
million. This testimony discusses institutionalize a shift in the that it
works-- before moving into whether a framework exists to organization's
focus from carrying out

product development is the foundation monitor and evaluate the impact of
activities to accomplishing missions. of this approach. Defense Department
increased funding on protecting (DOD) programs, with some

soldiers from the effects of chemical plans not yet implemented, and

T- NSIAD- 00- 207, June 29, 2000 (13 and biological weapons.

identifies Air Force procedures for pages). Visa Issuance: Observations
reporting on the plans and (2) on the Issuance of Visas for Religious

T- NSIAD- 00- 187, May 26, 2000 (17 compares the 1999 cost estimates

Workers, by Jess T. Ford, Associate pages). Export Controls: Challenges
developed by the Air Force and the

Director, International Relations and and Changes For Controls on

Office of the Secretary of Defense with Trade Issues, before the Immigration
Computer Exports, by Jim Johnson, the congressional cost limitation. and
Claims Subcommittee, House Associate Director, International Committee on
the Judiciary. Relations and Trade Issues, before the T- NSIAD- 00- 206,
June 27, 2000 (9 Senate Committee on Governmental pages). Defense Logistics:
Integrated A decade ago, Congress established

Affairs. Plans and Improved Implementation

special immigrant and nonimmigrant Needed to Enhance Engineering visa
categories for religious workers, This testimony discusses export Efforts,
by David R. Warren, Director, including religious professionals and controls
for high performance

Defense Management Issues, before ministers, because of domestic computers.
GAO provides the Military Readiness Subcommittee, shortages in these
positions cited by observations on how the executive

House Committee on Armed Services. religious groups. In 1998, religious

branch (1) assesses the national worker visas constituted about 11, 000
security risks associated with the Military logistics is an important and

of the 6. 4 million immigrant export of high performance computers expensive
job. The Defense (permanent) and nonimmigrant going to countries of concern,
(2) Department (DOD) will spend about

(temporary) visas issued. The State determines when the exports of $84
billion out of its $280- billion Department and the Immigration and
computers at existing performance budget on logistics support this year.
Naturalization Service (INS) share levels can no longer be controlled, and
Even so, failing equipment and parts

responsibility for issuing visas and (3) has addressed arrangements for
shortages continue to be a problem. admitting aliens into the United States.
post- verifications of high performance DOD has taken steps to reengineer
its

As a result of fraud investigations in computer exports. logistics process,
but many aspects of the mid- 1990s, both agencies have its overall plan are
incomplete, raising

expressed concern that some T- NSIAD- 00- 200, June 15, 2000 (12 questions
about whether or when the individuals and organizations that pages). Defense
Acquisitions: Use of goals of better service and lower costs sponsor
religious workers may take Cost Reduction Plans in Estimating F22 will be
realized. It is too early to assess

advantage of this category to help Total Production Costs, by Allen Li, the
impact that reengineering logistics unqualified aliens to enter or stay in
Associate Director, Defense support will have on combat forces.

the United States illegally. This Acquisitions Issues, before the Officials
representing combat forces testimony focuses on (1) the extent National
Security, Veterans Affairs, and have raised several concerns,

and the nature of any fraud the State International Relations Subcommittee,
including the effect of having large Department and INS have identified in
House Committee on Government numbers of private contractors on or the
religious worker visa program and Reform. near the battlefield, the ability
of (2) any steps these two agencies have contractors to meet the surge taken
or plan to take to change the visa The F- 22 Raptor is being developed to
requirements, and the effects of screening process. replace the F- 15
fighter aircraft. contracting on the number of jobs Projections of higher
production costs

available to military personnel T- NSIAD- 00- 218, July 26, 2000 (14 have
been a source of concern for returning to the United States from pages).
Combating Terrorism: Linking years. The most recent production cost

overseas duty. Several factors, if not Threats to Strategies and Resources,
estimates were done by the Air Force

addressed, could limit DOD's ability to by Norman J. Rabkin, Director, and
the Office of the Secretary of achieve its reengineering goals. These
National Security Preparedness Issues, Defense in 1999. Both of these

factors include the impact that use of before the National Security,
Veterans estimates considered cost reduction sole- source, long- term
contracts would Affairs, and International Relations initiatives known as
production cost have on anticipated reengineering

Subcommittee, House Committee on reduction plans. Hundreds of these savings
and the effects that existing Government Reform. plans totaling $21 billion
have been laws and policies would have on the identified by the airframe and
engine implementation of reengineering To develop sound programs to combat
contractors, with participation by the initiatives. This testimony
summarizes

terrorism, the United States must Air Force's F- 22 program office. This the
June 2000 report, GAO/ NSIAD- 0089. develop a thorough understanding of
testimony (1) discusses the status of the terrorist threat. U. S.
intelligence

cost reduction plans, including some agencies track and analyze terrorist

threats, including the use of chemical, of the judicial system-- are
directly personnel security reinvestigations. biological, radiological, and
nuclear

linked to reducing organized crime and (See GAO/ NSIAD- 00- 215, Aug. 2000.)
(CBRN) weapons. In GAO's view, some corruption in Bosnia. However, despite
public statements made about CBRN U. S. and international efforts to T-
NSIAD- 00- 249, Sept. 13, 2000 (9 do not include important qualifications
achieve the three benchmarks, U. S.

pages). Arms Control: Experience of to the information they present. For and
international officials and

U. S. Industry With Chemical Weapons example, terrorists would have to
published reports agree that organized Convention Inspections, by Jack L.
overcome significant technical and

crime and corruption continue to Brock, Managing Director, Acquisition
operational challenges to successfully pervade Bosnia's civil service, law
and Sourcing Management, before the make and release chemical or enforcement
and judicial systems,

National Security, Veterans Affairs, and biological agents of sufficient
quality economy, and political parties. International Relations
Subcommittee, and quantity to kill or injure large Corruption pervades
public

House Committee on Government numbers of people without substantial
administration. The judicial system is

Reform. assistance from a foreign government inadequate and, according to
the sponsor. Secondly, much federal effort Office of the High
Representative's

In considering the impact of proposed to combat terrorism has been based on
Judicial Reform Strategy, is incapable

compliance regimes for the Biological vulnerabilities and worst case of
effectively administering justice.

Weapons Convention on U. S. scenarios rather than an analysis of Widespread
customs and tax evasion industries such as the pharmaceutical, credible
risks. A threat and risk has resulted, it is believed, in revenue chemical,
agricultural, and brewing assessment can be used to develop a losses of
hundreds of millions of industries, GAO was asked to testify nationwide
strategy and guide

dollars. In addition, although internal on how industries with similar
resource investments. Officials in five

controls over international aid appear concerns were affected by compliance
foreign countries GAO visited-- Canada, to be adequate, according to U. S.
and regimes of the Chemical Weapons United Kingdom, Israel, Germany, and
international officials, some Convention. Specific concerns were France--
said that because of limited corruption and fraud have occurred in
protection of proprietary information resources, they make funding

the international assistance effort. during inspections, adverse publicity
decisions for programs to combat Officials also said that anticorruption

resulting from inspections, and costs terrorism on the likelihood of
terrorist and judicial reform efforts have had

to companies being inspected. GAO activity, not on the countries' overall
little success because the political will testified that for the first seven
vulnerabilities. These countries

of Bosnia's leaders is weak or companies inspected under the maximize their
existing capabilities to nonexistent. Congress should Chemical Weapons
Convention, address a wide array of threats,

consider requiring the State companies were generally able to including
emerging threats like CBRN, Department to certify that Bosnia has

protect proprietary information before they create new capabilities or
undertaken concrete, measurable because of provisions in the programs to
respond to such attacks.

efforts to fight corruption, smuggling, Convention and U. S. law. No
instances

and tax evasion before providing were identified in which a company

T- NSIAD- 00- 219, July 19, 2000 (10 future assistance. This testimony

was affected by adverse publicity, even pages). Bosnia: Crime and Corruption
summarizes the July 2000 report, though companies differed in the Threaten
Successful Implementation GAO/ NSIAD- 00- 156. amount of information they
released.

of the Dayton Peace Agreement, by Companies reported inspection costs Jim
Johnson, Associate Director, T- NSIAD- 00- 246, Sept. 20, 2000 (11

ranging from $6, 000 to $107, 000. GAO International Relations and Trade
pages). DOD Personnel: More cautioned about drawing conclusions Issues,
before the House Committee

Accurate Estimate of Overdue Security on the basis of limited company on
International Relations. Clearance Reinvestigations Is Needed, experiences
under the Chemical by Carol R. Schuster, Associate Weapons Convention.
Although In 1998 the U. S. government, the Peace

Director, National Security Biological Weapons Convention Implementation
Council, and the Preparedness Issues, before the protocols being negotiated
are similar, North Atlantic Council adopted National Security, Veterans
Affairs, and levels of detail for reporting and benchmarks to help determine
when International Relations Subcommittee, intrusiveness of inspections have
yet enough progress has been made to House Committee on Government to be
finalized. allow NATO- led forces to be Reform. withdrawn from Bosnia. Three
of the

T- NSIAD- 00- 257, Sept. 19, 2000 (13 benchmarks-- elimination of illegal
This testimony discusses GAO's recent pages). Foreign Assistance: Lack of
institutions, creation of a democratic evaluation of the Department of
Haitian Commitment Limited Success law enforcement system, and reform
Defense's backlog of overdue of U. S. Aid to Justice System, by Jess T.

Ford, Associate Director, International T- NSIAD/ AIMD- 00- 116, Mar. 8,
2000 Director, International Relations and Relations and Trade Issues,
before the (15 pages). Defense Acquisitions:

Trade Issues, before the National House Committee on International
Observations on the Procurement of Security, Veterans Affairs, and
Relations.

the Navy/ Marine Corps Intranet, by International Relations Subcommittee,
Allen Li, Associate Director, Defense House Committee on Government This
testimony discusses the Acquisitions Issues, and Jack L. Brock,

Reform. preliminary results of GAO's review of Director, Governmentwide and
U. S. assistance provided to Haiti's

Defense Information Systems, before The State Department recognizes justice
system. During six fiscal years, the Military Readiness Subcommittee, many
of its critical management the United States provided about $97 House
Committee on Armed Services,

challenges and has devoted substantial million in assistance to help Haiti

and Military Research and resources to overcoming them. State establish its
first civilian- controlled Development Subcommittee, House has made
considerable progress in police force and improve aspects of its

Committee on Armed Services. many difficult areas but still faces judicial
sector. About $70 million in U. significant obstacles. Specifically, S.
assistance helped Haiti recruit, train, The Navy's strategy for acquiring
and State needs to improve the security of organize, and equip a basic
police

implementing a Navy/ Marine Corps U. S. personnel and facilities at force,
including an anti- narcotics unit,

Intranet has several weaknesses that overseas locations in a cost- effective

a special investigative unit, and the put this effort at unnecessary risk.
The and timely manner. It also needs to Haitian Coast Guard; $27 million in
Navy/ Marine Corps Intranet is determine the right size and location of U.
S. assistance trained magistrates and

intended to serve about 360,000 users the U. S. overseas presence to both
prosecutors and improved in the United States, Guantanamo Bay, improve the
efficiency of operations management practices of judicial Puerto Rico, and
Iceland. The Navy and reduce the security burden. In institutions. Despite
these plans to acquire intranet capabilities addition, State should better
utilize the achievements, the police force has not from commercial vendors,
which will Government Performance and Results

effectively carried out its basic law own and maintain all required desktop
Act by demonstrating its level of enforcement responsibilities and

and network hardware and software success in achieving desired outcomes
events suggest that politicization has

and provide all required information or the way in which its actions
actually compromised the force. It lacks technology services. The Navy has

led to achieving desired goals. State independence from the executive been
working to award a contract in had made many improvements in its branch and
has outdated legal codes June 2000-- an aggressive deadline set

information and financial management and cumbersome judicial proceedings. by
the military services in order to systems but faces continuing Judicial
institutions have personnel

have initial intranet capabilities challenges in working with U. S.

shortages, inadequate infrastructure available by December 2001. However,
agencies operating overseas to and equipment, and an ineffective the Navy's
request for proposals was standardize information capabilities internal
oversight organization unable issued without (1) developing a formal and to
correct weaknesses in its to stem corruption. The key factor analysis of
program alternatives and information security and financial affecting the
lack of success of U. S. completing a business case analysis to management
systems. assistance has been the Haitian

determine an appropriate acquisition government's lack of commitment to
strategy for the proposed Intranet; (2)

T- NSIAD/ OGC- 00- 202, June 20, 2000 addressing the major problems of its

resolving key program issues, such as (10 pages). World Trade Organization:
police and judicial institutions. It has

how the intranet is to be managed U. S. Experience in Dispute Settlement
failed to strengthen the police

within the Navy, how it will be funded, System: The First Five Years, by
Susan

organization by filling key leadership and how its information technology S.
Westin, Associate Director,

positions or provide human and and other personnel may be affected
International Relations and Trade

physical resources. It has also failed to by the Intranet; and (3) taking
risk Issues, before the International Trade support police investigations of
mitigation steps, such as testing the

Subcommittee, Senate Committee on serious crime or keep the police force
proposed approach on a smaller scale.

Finance. out of politics. Concerning the judicial GAO also cites several
shortcomings in sector, the Haitian government has not the Office of the
Secretary of Defense's Member countries of the World Trade followed through
on implementing oversight of the Navy Intranet effort.

Organization (WTO) have actively broad reforms and adopting used the WTO
dispute settlement improvements nor has it provided T- NSIAD/ AIMD- 00- 254,
July 19, 2000

system during the first five years and physical and human resources needed
(14 pages). State Department:

filed 187 complaints as of April 2000. to operate effectively. Progress and
Challenges in Managing The United States and the European for Results, by
Benjamin F. Nelson, Union were the most active

participants, both as plaintiffs and Accountability Over Funds Was

limited accountability over Compact defendants. Out of 25 cases in which
Limited, by Susan S. Westin, Associate

expenditures. the United States was a plaintiff, the

Director, International Relations and United States prevailed in a final WTO
Trade Issues, before the Asia and the T- RCED/ NSIAD- 00- 228, June 29,
dispute settlement ruling in 13 cases,

Pacific Subcommittee, House 2000 (5 pages). Biotechnology: resolved the
dispute without a ruling in Committee on International Relations.

Information on Prices of Genetically 10 cases, and did not prevail in two
Modified Seeds in the United States cases. As a defendant in 17 cases, the
The United States entered into an and Argentina, by Robert Robertson, United
States prevailed in one case,

international agreement-- the Compact Associate Director, Food and resolved
the dispute without a ruling in of Free Association-- with the Agriculture
Issues, before the House 10 cases, and lost in six cases. Overall,

Federated States of Micronesia and the Committee on Agriculture. GAO's
analysis shows that the United Republic of the Marshall Islands in States
has gained more than it has lost 1986. This agreement represented a This
testimony discusses the prices of in the WTO dispute resolution system

continuation of the U. S. financial genetically modified seeds-
specifically,

so far. WTO cases have resulted in a support that had gone to these areas
Roundup Ready soybean

large number of changes in foreign since the end of World War II. GAO

and Bacillus thuringiensis corn seeds- trade practices, while their effect
on found that Micronesia and the in the United States and Argentina and U.
S. laws and regulations has been Marshall Islands spent about $1. 6 the
major reasons for any identified minimal. This testimony summarizes billion
in Compact funds on general price differences between the two

the June 2000 report, government operations, capital countries. GAO's
remarks are based on GAO/ NSIAD/ OGC- 00- 196BR, June 14 projects, and
targeted sectors, such as a January 2000 report. (See (36 pages). energy and
communications, from GAO/ RCED/ NSIAD- 00- 55.) fiscal years 1987 through
1998. T- NSIAD/ RCED- 00- 119, Mar. 6, 2000 Micronesia and the Marshall
Islands

OCE

(13 pages). Weapons of Mass have made some progress in achieving

Destruction: U. S. Efforts to Reduce economic self- sufficiency since 1987,

GGD/ OCE- 00- 165, June 30, 2000 (67 Threats From the Former Soviet although
both countries remain highly pages). Sales Taxes: Electronic Union, by Jim
Johnson, Associate dependent on U. S. assistance, which Commerce Growth
Presents Director, International Relations and

has maintained artificially high Challenges; Revenue Losses Are Trade
Issues, before the Emerging standards of living. Compact Uncertain. Threats
and Capabilities

expenditures so far have led to little Subcommittee, Senate Committee on
improvement in economic Although the states can impose a tax Armed Services.

development in the two nations. on residents' purchases from out- ofstate

Substantial compact expenditures vendors, they cannot impose an Since 1991,
Congress has authorized used to maintain high levels of public obligation on
those vendors to collect the Departments of Defense, Energy, sector growth
have acted as a the tax unless the vendor has a and State to help Russia and
other disincentive to private sector growth.

substantial presence-- called a nexus- newly independent states control and

Both countries have also spent in the state. For sales without nexus,

eliminate weapons of mass destruction Compact money on infrastructure
purchasers are legally required to and to reduce the risks of proliferation.
projects, such as electrical power and

remit the tax, but purchaser This testimony draws on 20 reports
telecommunications systems, that they compliance is generally much lower GAO
has issued during the past eight

viewed as critical to creating an than seller compliance. Therefore, at
years on various aspects of these

environment attractive to private this time, portions of sales and use
programs. GAO presents overall businesses. However, the projects have taxes
can be avoided. In 1999, state observations on the costs and impacts

not spurred significant private sector and local governments collected $203

of these programs and suggests issues activity. Finally, investment of
billion in general sales tax revenues.

that Congress may want to consider as Compact funds in business ventures On
average, general sales taxes it reviews current and future budget has been a
failure. GAO found that account for 33 percent of state and 11 requests for
these programs. many projects funded by the Compact percent of local tax
revenues. Little had problems because of poor

empirical data exist on the key factors

T- NSIAD/ RCED- 00- 227, June 28, planning and management, shoddy needed to
calculate the amount of 2000 (15 pages). Foreign Assistance: construction
and maintenance, or sales and use revenues that state and U. S. Funds to Two
Micronesian

misuse of funds. The governments of local governments lose on Internet and
Nations Had Little Impact on

Micronesia, the Marshall Islands, and other remote sales. GAO constructed
Economic Development and the United States have provided scenarios
representing different

assumptions about the important agencies that yield significant financial
chronic beryllium disease were determinants of the loss. Under all savings
and other improvements in

identified during the 1980s. Energy scenarios, the size of tax loss from
government operations. Some, but not issued a rule in 1999 that established
Internet sales for 2000 is less than two

all, are identified through GAO's new worker safety controls, such as

percent of aggregate general sales tax system for periodically following up
to greater use of respirators and revenues. Under the scenario for 2003,
determine the status of actions taken assessing hazards associated with the
size of the tax loss from Internet on recommendations made in GAO's

work tasks, for its facilities that use sales ranged from less than one

reports. About 70 percent of the beryllium. Energy has also proposed a

percent to about five percent. The recommendations made during the

compensation program for Energy results of GAO's scenarios highlight past
four years have been workers affected by chronic beryllium the importance of
developing better implemented. This report contains disease. data about
Internet tax losses. Even summaries highlighting the impact of with better
data, the rapid and GAO's work along with significant

OCG- 00- 8, Mar. 31, 2000 (322 pages). fundamental nature of innovations in
open recommendations, including Budget Issues: Budgetary Implications
electronic commerce means that those associated with GAO's "high risk"

of Selected GAO Work for Fiscal Year policymaking regarding the tax areas.
2001. treatment of Internet sales will be done in an environment of
significant OCG- 00- 6, May 19, 2000 (25 pages).

This report consolidates in a single uncertainty. Occupational Safety and
Health: document the budgetary implications Government Responses to
Beryllium of program reforms discussed in

OCG

Uses and Risks. earlier GAO work but not yet

implemented or enacted. This report is

OCG- 00- 2, Jan. 24, 2000 (16 pages). For decades, the U. S. military has
used part of a special series designed to GAO's Congressional Protocols.

beryllium-- a lightweight metal-- to help Congress identify ways to reduce
produce various weapons systems.

federal spending and increase This document spells out the protocols
Lightness, strength, and other

revenues. Where available, budgetary governing the General Accounting
attributes have made beryllium useful savings estimated by the Office's work
for Congress-- from the

in a wide array of products, from Congressional Budget Office or the point
at which GAO receives a request

aircraft to x- ray equipment to nuclear Joint Committee on Taxation are to
do a job to the point at which a weapons. Since the 1940s, however,
presented for each of the options. This report is released publicly. The
scientists have linked beryllium report contains more than 120 options.

protocols also discuss such related exposure to an inflammatory lung Thirty-
two options are new this year; issues as GAO's press policy and GAO

condition, which can be debilitating, the rest are updated versions of staff
detailed to Congress. These even fatal. Studies from the 1950s

options that appeared in last year's protocols are intended to provided
showed that beryllium can cause report. (See GAO/ OCG- 99- 26, Apr. clearly
defined and transparent cancer in laboratory animals. From the

1999.) All of these options are based on policies and practices related to
GAO's 1960s through the 1990s, the

key findings and issues developed in work. They also provide a means of
Departments of Defense (DOD) and past GAO audits and evaluations. This
holding the agency accountable for

Energy and the Occupational Safety report is divided into four sections: a
commitments made to Congress and and Health Administration (OSHA) discussion
of the conventions used to ensuring that GAO is consistent in took several
steps to assess and estimate cost savings and revenue dealing with all
committees and respond to risks associated with gains, an analytical
framework with Members. The agency believes that exposure to beryllium. DOD

which to consider cost savings or these protocols will help it to better
discontinued testing beryllium in revenue increases, narrative serve
Congress, improve satisfaction rocket fuel by 1970, due in part to
descriptions of the options, and a list with GAO's work, and ensure
equitable concerns about meeting air quality of options from last year's
report that treatment of all requesters. requirements. In 1975, OSHA
proposed

were not updated because of a more stringent worker exposure congressional
or agency action. OCG- 00- 4, Mar. 9, 2000 (173 pages). standard for
beryllium that was based Status of Open Recommendations: on evidence that it
was carcinogenic in OCG- 00- 12, Aug. 1, 2000 (12 pages). Improving
Operations of Federal

laboratory animals. Energy improved Determining Performance and Departments
and Agencies. working conditions at its facilities and

Accountability Challenges and High implemented medical testing for its Risks
(Exposure Draft). Each year, GAO's work contributes to current and former
workers during the many actions by Congress and federal 1980s and 1990s
after new cases of

GAO periodically reports on rapidly changing global environment the agency's
work yielded financial government programs and functions at present several
challenges. Although benefits of about $57-- or about $20. 1 the high risk
for waste, fraud, abuse, GAO is 40 percent smaller today than billion in
total. GAO's fiscal year 2001 and mismanagement. As a result of the

in 1992, congressional demand for the budget request is designed to
implementation of various federal agency's work continues to increase.

strengthen the agency so that it can management reforms, GAO decided to At
the same time, in a period of fiscal remain a valuable asset to Congress
reassess the methodologies and

restraint, GAO cannot expect and, ultimately, the American people. criteria
it uses to determine which significant increases in its budget or in
programs which should be included in its staffing level. In response to this
T- OCG- 00- 5, Feb. 29, 2000 (18 pages). its Performance and Accountability
reality of constrained resources and

Fiscal Year 2001 Budget Request: U. S. Series, as well as those that should
be rising demand for its services, GAO is General Accounting Office, by
David designated as high risk. This exposure taking steps to maximize its M.
Walker, Comptroller General of the draft offers GAO's criteria and process
effectiveness; manage risks; and boost United States, before the Legislative
for determining performance and

staff productivity, efficiency, and Branch Subcommittee, Senate
accountability challenges and high effectiveness. During the last year,
Committee on Appropriations. risks. GAO launched a client outreach effort

to help it better meet congressional Maintaining and enhancing GAO's

OCG- 00- 14G, Sept. 1, 2000 (38 pages). needs, issued a draft strategic plan
that ability to serve Congress in today's Human Capital: A Self- Assessment

spells out the current and emerging rapidly changing global environment
Checklist for Agency Leaders. issues that GAO will likely focus on present
several challenges. Although during the next six years, strengthened GAO is
40 percent smaller today than Self- assessment is the starting point
communication within the agency, in 1992, congressional demand for the

for creating "human capital began redesigning its employee agency's work
continues to increase. organizations"-- agencies that focus on performance
appraisal system, and

At the same time, in a period of fiscal valuing employees and aligning
replaced obsolete computer hardware restraint, GAO cannot expect "people
policies" to support and software. GAO will be seeking significant increases
in its budget or in organizational performance goals. If legislative
authority that will give the its staffing level. In response to this high
performance and accountability agency additional flexibility to manage

reality of constrained resources and depend on the three enablers-- people,
its most important resource-- human rising demand for its services, GAO is
process, and technology-- then it is capital. The legislation would allow

taking steps to maximize its useful, first and foremost, for any GAO to
offer early- outs to selected effectiveness; manage risks; and boost agency
to have a clear and fact- based employees in order to avoid a

staff productivity, efficiency, and understanding of its human capital
workforce imbalance that could

effectiveness. During the last year, situation. This report identifies
several undermine the agency's future ability

GAO launched a client outreach effort human capital elements and to serve
Congress. To improve its

to help it better meet congressional underlying values that are common to
ability to hire technical talent, such as

needs, issued a draft strategic plan that high- performance organizations.
computer specialists and actuaries, spells out the current and emerging
GAO's checklist is intended to be a GAO will also seek authority to offer

issues that GAO will likely focus on relatively simple diagnostic tool to
these individuals salaries at senior during the next six years, strengthened
capture senior leaders' informed views

executive levels. For fiscal year 2001, communication within the agency, of
their agencies' human capital GAO is requesting $402. 9 million. The began
redesigning its employee policies and practices.

funding increase would cover performance appraisal system, and mandatory
cost- of- living adjustments replaced obsolete computer hardware Test i mony
in federal pay and uncontrollable cost and software. GAO will be seeking
increases in transportation, supplies, legislative authority that will give
the T- OCG- 00- 1, Feb. 1, 2000 (16 pages). contracts, and other essential
mission

agency additional flexibility to manage Fiscal Year 2001 Budget Request: U.
S. support services. GAO would also be its most important resource-- human
General Accounting Office, by David able to undertake a host of muchneeded
capital. The legislation would allow M. Walker, Comptroller General of the
initiatives, from strengthening

GAO to offer early- outs to selected United States, before the Legislative
its programs that recognize and employees in order to avoid a Subcommittee,
House Committee on

reward employee performance to workforce imbalance that could
Appropriations. upgrading its network software. GAO undermine the agency's
future ability continues to deliver a tremendous

to serve Congress. To improve its Maintaining and enhancing GAO's

return on investment. In fiscal year ability to hire technical talent, such
as ability to serve Congress in today's

1999, for every dollar spent on GAO, computer specialists and actuaries,

GAO will also seek authority to offer steps to improve federal acquisition,

governmental responsiveness, these individuals salaries at senior

focusing on ways to simplify the integrated approaches, results

executive levels. For fiscal year 2001, process and improve decisionmaking
orientation, and accountability.

GAO is requesting $402. 9 million. The in acquiring information technology.
Second, current surpluses provide a

funding increase would cover Despite these recent reforms and the tremendous
opportunity to focus on mandatory cost- of- living adjustments

efforts of many dedicated people over longer- term fiscal challenges, such
as in federal pay and uncontrollable cost the years, the government still
lacks a

health care. Third, the United States increases in transportation, supplies,
world- class purchasing system. All too

now has an opportunity and an contracts, and other essential mission often,
the products and services that obligation to look at what government support
services. GAO would also be the government buys cost more than should be
doing and how it does it.

able to undertake a host of muchneeded expected, are delivered late, or fail
to Prudent decisions are required if initiatives, from strengthening work as
expected. No commercial government is to continue delivering its programs
that recognize and

operation would stay in business for the services that Americans want,
reward employee performance to long with results like these. The need, and
can afford. Fourth, the time upgrading its network software. GAO

problems are particularly evident in is now to reconsider the fiscal and
continues to deliver a tremendous two costly areas: weapons systems and

performance models, structures, and return on investment. In fiscal year
information technology. Significant

processes that Congress uses to fulfill 1999, for every dollar spent on GAO,
improvements in these areas, as well its oversight responsibilities. Real
the agency's work yielded financial as in the skills of the acquisition
improvements in performance and benefits of about $57-- or about $20. 1

workforce, are essential to getting management call for disciplined and

billion in total. GAO's fiscal year 2001 better results. determined efforts
by the executive

budget request is designed to branch and continued oversight by strengthen
the agency so that it can T- OCG- 00- 9, Mar. 29, 2000 (47 pages). Congress.
remain a valuable asset to Congress

Managing in the New Millennium: and, ultimately, the American people.

Shaping a More Efficient and Effective T- OCG- 00- 10, July 18, 2000 (39
Government for the 21st Century, by

pages). GAO: Supporting Congress for

T- OCG- 00- 7, Mar. 16, 2000 (23 pages). David M. Walker, Comptroller
General the 21st Century, by David M. Walker,

Federal Acquisition: Trends, Reforms, of the United States, before the
Senate Comptroller General of the United and Challenges, by Henry L. Hinton,
Committee on Governmental Affairs. States, before the Government Jr.,
Assistant Comptroller General,

Management, Information and before the Government Management, After nearly
30 years of budget deficits,

Technology Subcommittee, House Information and Technology a combination of
tough policy choices

Committee on Government Reform. Subcommittee, House Committee on

and remarkable economic growth has Government Reform. led to budget
surpluses. At the same

In fiscal year 1999, GAO returned more time, the Cold War has ended, and the
than $57 for every $1 appropriated to Federal spending for goods and United
States has won The United the agency. For example, GAO helped services has
changed dramatically in States enters the 21st century largely

improve the nursing home survey recent years. Although the Pentagon freed of
the deficit burdens of the process and made the public aware of remains the
government's dominant recent past but challenged by new identity theft. In
response, Congress buyer, accounting for two- thirds of all

forces-- from globalization to emerging passed legislation that criminalized
federal acquisition spending last year, security threats-- that are shaping
theft and misuse of personal military acquisitions have fallen from
America's role in the world. The identifying information. GAO reported their
peak levels during the Cold War. Comptroller General's testimony

fraud and waste in the supplemental On the other hand, spending by civilian
focuses on four topics that are critical security program, which prompted
the agencies has risen somewhat. The to strengthening the performance and

Social Security Administration to ask government, as a whole, now spends
accountability of federal agencies and

for authority to recover current more on services-- from basic to improving
the public's respect for overpayments. GAO has played an maintenance to
space shuttle and confidence in government. First, important role in helping
Congress and operations-- than on supplies and

dynamics, such as increased federal agencies improve the equipment. The
acquisition process

globalization, rapid technological government's computer security. has
become more streamlined as new

advances, demographic changes, new Although the agency's staffing has

contract techniques have allowed security concerns, and quality of life

fallen from 5,300 employees in the agencies to buy what they need much
issues, are prompting basic changes in early 1990s to 3, 300 employees
today, faster than in the past. Congress and how government does its job. A
higher congressional requests for GAO's work the administration have taken
several premium is being placed on have risen significantly. GAO has four

strategic goals: (1) addressing current human capital-- that are crucial to
an groups interested in federal education and emerging challenges to the
well organization's ability to excel; and (3) issues. Education first began
holding being and financial security of the

overseeing the management and these meetings at a time when American people
in such areas as

effectiveness of individual agencies. A Congress was debating the future
health care retirement income strategic oversight plan could help existence
and funding of the agency

security, and education and workforce balance these different oversight and
the federal role in education. The issues; (2) responding to changing

tracks. Individual committees are well evidence GAO reviewed does not
security threats and the challenges of suited to address performance and
support a conclusion that (1) the series global interdependence; (3)
supporting other issues affecting individual of meetings GAO examined were
the transition to a more resultsoriented agencies and programs. It may be
more "advisory committee" meetings within and accountable federal difficult
under the current committee the scope of the Federal Advisory government;
and (4) being a model

structure, however, to tackle federal Committee Act or (2) Education
organization for the federal missions that cut across agencies and officials
violated the applicable government. Key efforts include (1) committees.

antilobbying restrictions. implementing a model strategic and annual
planning and reporting process,

OGC GGD/ OGC- 00- 62, Feb. 25, 2000 (27 (2) aligning human capital policies
and pages). Disaster Assistance: Issues practices to support the agency's

AIMD/ OGC- 00- 6, Oct. 29, 1999 (23 Related to the Development of FEMA's

mission, (3) cultivating and fostering pages). DC Courts: Improvements
Insurance Requirements. effective congressional and agency Needed in
Accounting for Escrow and relations, (4) developing efficient and Other
Funds.

The Federal Emergency Management responsive business processes, and (5)
Agency (FEMA) has proposed that building an integrated and reliable The
District of Columbia Courts did funding under the Public Assistance
information technology infrastructure. not properly account for the funds in
Program for buildings damaged in a Finally, GAO faces the challenge of half
of its 18 bank accounts during disaster be limited to those state and

streamlining operations while building fiscal year 1998, as shown by its
local agencies and other public entities

on responsiveness and flexibility. problems in determining its cash that
maintain specified minimum

balances and reconciling its levels of insurance coverage. The draft

T- OCG- 00- 11, July 20, 2000 (16 accounting records to supporting

regulation is intended to remove a pages). Congressional Oversight:
documentation. In addition, DC Courts disincentive under current rules for
Challenges for the 21st Century, by lacked adequate controls and such
entities to both carry insurance

David M. Walker, Comptroller General procedures during fiscal year 1998 to
and manage their risk of disasters,

of the United States, before the Senate help ensure that the fines and the
fees according to FEMA. FEMA's draft

Committee on Small Business. that were collected were accurately

regulation could have significant recorded. Although DC Courts was financial
implications for states, This statement discusses the authorized to deposit
fines, fees, and

municipalities, and private nonprofit importance of congressional oversight
penalties specified in District Law into hospitals and universities. This
report of government operations and GAO's the Crime Victims Fund to provide
evaluates FEMA's efforts to develop its role in that effort. In the view of
the

financial assistance to crime victims, draft insurance regulations. GAO (1)

Comptroller General, it is time to in fiscal years 1998 and 1999 DC
determines the extent to which FEMA revisit how Congress and GAO carry
Courts also deposited other fines, fees, obtained and incorporated input for
out their oversight responsibilities.

and penalties into the Fund that should state and local agencies and public
The Comptroller General urges the

have been deposited in the U. S. entities likely to be affected by the
forging of a bicameral and nonpartisan Treasury. draft regulation; (2)
evaluates FEMA's oversight agenda that will meet the

compliance with Executive Order needs of Congress, capitalize on GAO's

GGD/ OGC- 00- 18, Dec. 30, 1999 (44 12866, the Regulatory Flexibility Act,
extensive knowledge and skills, and pages). Department of Education: and
applicable guidance governing the protect the public's interests. It will

Compliance With the Federal Advisory rulemaking process; and (3) assesses
require three oversight tracks: (1) Committee Act and lobbying FEMA's
internal rulemaking processes looking at programs and efforts that
Restrictions.

and procedures. involve multiple agencies and cross committee jurisdictions;
(2) examining

In 1995, the Department of Education GGD/ OGC- 00- 72, Apr. 17, 2000 (99
across government those functions- from began holding regular weekly pages).
Bid Protests: Characteristics strategic planning to information "Thursday"
meetings with of Cases Filed in Federal Courts. technology to financial
management to representatives of lobbying and other

Currently, an individual or business The United States and the European Some
GAO reviews have helped to can file a protest challenging a federal Union
were the most active ensure better adherence to regulatory contract award or
the procedure under

participants, both as plaintiffs and requirements. On the other hand,

which the offers were solicited. defendants. Out of 25 cases in which

GAO's reviews sometimes did not Protests may be filed before or after the
United States was a plaintiff, the

disclose a failure to comply with the contract is awarded. Under the United
States prevailed in a final WTO rulemaking requirements but provided
Administrative Dispute Resolution Act dispute settlement ruling in 13 cases,
Congress with factual detail and a of 1996, the 94 U. S. district courts and

resolved the dispute without a ruling in better understanding of the
agencies' the United States Court of Federal 10 cases, and did not prevail
in two procedures and decision making. Claims have the same jurisdiction to
cases. As a defendant in 17 cases, the Other reviews established that the
decide bid protest cases. District United States prevailed in one case,
agencies were acting within allowable courts and the U. S. Court of Federal

resolved the dispute without a ruling in discretion to determine that some
Claims may grant any relief that they 10 cases, and lost in six cases.
Overall, requirements were inapplicable or that consider appropriate,
although GAO's analysis shows that the United the requirements themselves
were monetary relief is limited to bid States has gained more than it has
lost

narrowly tailored and had little effect preparation and proposal costs. in
the WTO dispute resolution system on rulemaking. GAO also found District
court jurisdiction for bid so far. WTO cases have resulted in a

instances in which regulations protest cases is scheduled to expire on large
number of changes in foreign

considered burdensome by the January 1, 2001. Some groups support trade
practices, while their effect on regulated community were required by this
development. Others oppose it. U. S. laws and regulations has been the
statute being implemented. This report reviews the cases, minimal. GAO
summarized this report particularly the small business cases,

in testimony before Congress; see:

T- NSIAD/ OGC- 00- 202, June 20, 2000 that have been filed in district
courts World Trade Organization: U. S.

(10 pages). World Trade Organization: and the U. S. Court of Federal Claims
Experience in Dispute Settlement

U. S. Experience in Dispute Settlement since the act took effect at the end
of System-- the First Five Years, by Susan System: The First Five Years, by
Susan 1996. GAO (1) identifies the number of S. Westin, Associate Director
for

S. Westin, Associate Director, bid protests filed in the U. S. district
International Relations and Trade International Relations and Trade courts
and the U. S. Court of Federal

Issues, before the Subcommittee on Issues, before the International Trade

Claims between January 1997 and International Trade, Senate Committee
Subcommittee, Senate Committee on April 1999 that were filed by small

on Finance. GAO/ T- NSIAD/ OGC- 00202, Finance. businesses, the type of
agencies

June 20 (10 pages). involved (civilian or defense), and the Member countries
of the World Trade amount of the procurement at issue;

Testi mony Organization (WTO) have actively (2) identifies the perceived
advantages

used the WTO dispute settlement and disadvantages, particularly for T- GGD/
OGC- 00- 157, June 8, 2000 (13 system during the first five years and small
businesses, of filing bid protests pages). Regulatory Reform: filed 187
complaints as of April 2000. in each judicial forum; and (3)

Procedural and Analytical The United States and the European provides
information on the Requirements in Federal Rulemaking, Union were the most
active characteristics of the district courts' by Robert Murphy, General
Counsel,

participants, both as plaintiffs and and U. S. Court of Federal Claims' bid
before the Regulatory Reform and defendants. Out of 25 cases in which
protest cases, particularly those filed

Paperwork Reduction Subcommittee, the United States was a plaintiff, the

by small businesses, that could be used House Committee on Small Business.
United States prevailed in a final WTO to assess perceived advantages and
dispute settlement ruling in 13 cases,

disadvantages. This testimony discusses reviews GAO resolved the dispute
without a ruling in

has undertaken of agency compliance 10 cases, and did not prevail in two
NSIAD/ OGC- 00- 196BR, June 14,

with procedural and analytical cases. As a defendant in 17 cases, the 2000
(36 pages). World Trade

requirements in federal rulemaking. United States prevailed in one case,
Organization: U. S. Experience to Date GAO's evaluations paint a mixed
resolved the dispute without a ruling in in Dispute Settlement System.

picture. Although its findings may not 10 cases, and lost in six cases.
Overall, be representative of all rulemakings, in GAO's analysis shows that
the United Member countries of the World Trade some cases, GAO found
inadequate States has gained more than it has lost Organization (WTO) have
actively data, methodologies, or assumptions. in the WTO dispute resolution
system used the WTO dispute settlement In other cases, GAO found so far. WTO
cases have resulted in a

system during the first five years and noncompliance with statutory large
number of changes in foreign

filed 187 complaints as of April 2000. requirements or executive orders.
trade practices, while their effect on

U. S. laws and regulations has been Medicare payments and the frequency
1999, largely due to increased travel. minimal. This testimony summarizes of
kickbacks, false claims, and other Only the Secret Service and State the
June 2000 report, inappropriate provider practices. A Department have
specific statutory GAO/ NSIAD/ OGC- 00- 196BR, June 14 recent study by the
Inspector General authority to protect executive branch (36 pages). at the
Department of Health and officials. Agencies reported that their

Human Services concluded that eight officials received different levels and
OIMC

percent of the $169. 5 billion Medicare frequency of protection and that
fee- for- service claim payments in fiscal protection was needed to respond
to OIMC/ OPA- 00- 1A, OIMC/ OPA- 00-

year 1999 was paid improperly. possible and actual threats. Most 1B, Mar. 1,
2000 (604 pages). Abstracts Because of the breadth of health care agencies
favored establishing a of Reports and Testimony: Fiscal Year fraud and
abuse, HCFA uses various

repository of protective intelligence to 1999. detection methods and
techniques,

facilitate sharing of threat information such as contacting beneficiaries
and about their officials. Also, agencies This two- volume reference set
providers and performing medical reported that their protective provides an
overview of GAO's work record reviews, data analyses, and personnel received
different amounts

during fiscal year 1999. The first third- party verification procedures.

of protection training and from volume summarizes more than 1,000 HCFA has
begun three projects to different sources. Field staff received "blue book"
reports and other measure the extent of Medicare feefor- less training than
did the agencies' fulltime publications issued between October

service improper payments-- two to personnel based in Washington. 1998 and
September 1999. The second improve the precision of future Most agencies
favored establishing a volume contains indexes to help locate improper
payment estimates and help standardized protection training documents.

develop corrective actions to reduce program. Most agencies opposed losses
and the other to test the viability centralizing security protection under
OPA

of using various of investigative one agency. No single agency or techniques
to develop a potential fraud official is responsible for handling OIMC/ OPA-
00- 1A, OIMC/ OPA- 00-

and abuse rate. GAO believes that issues relating to routine protection of
1B, Mar. 1, 2000 (604 pages). Abstracts HCFA's efforts to measure Medicare
executive branch officials. This of Reports and Testimony: Fiscal Year fee-
for- service improper payments can fragmentation has serious implications

1999. be further enhanced with the use of because 14 of the protected
officials

additional fraud detection techniques are in the line of presidential This
two- volume reference set and makes several recommendations succession.
Moreover, the lack of provides an overview of GAO's work to that effect.
thorough threat assessments during fiscal year 1999. The first

documenting the level of protection volume summarizes more than 1,000

GGD/ OSI- 00- 139, July 11, 2000 (67 needed makes it difficult to determine
"blue book" reports and other pages). Security Protection:

the basis for and reasonableness of publications issued between October
Standardization Issues Regarding

protection being given. GAO 1998 and September 1999. The second Protection
of Executive Branch summarized this report in testimony volume contains
indexes to help locate Officials.

before Congress; see: Security documents. Protection: Standardization Issues
From fiscal years 1997 through 1999,

Regarding Protection of Executive OSI

42 executive branch positions at 31 Branch Officials by Bernard L. Ungar,
executive branch agencies-- including Director of Government Business

AIMD/ OSI- 00- 281, Sept. 15, 2000 (50 all 14 Cabinet secretaries, four
deputy Operations and Robert H. Hast, pages). Medicare Improper Payments: or
under secretaries, and 24 other highranking Assistant Comptroller General
for While Enhancements Hold Promise for officials (mainly heads of Special
Investigations, before the Measuring Potential Fraud and Abuse, agencies)--
had security protection.

Subcommittee on Criminal Justice Challenges Remain. Personnel from 27
different agencies Oversight, Senate Committee on the protected them: 36
officials by their Judiciary. GAO/ T- GGD/ OSI- 00- 177, July This report
provides information on own agencies or departments and six

27 (10 pages). proposals by the Health Care from other agencies or
departments, Financing Administration (HCFA) to such as the Secret Service
and the HEHS/ OSI- 00- 69, Apr. 5, 2000 (57 measure Medicare improper
payments

Marshals Service. Protective personnel pages). Medicaid in Schools: Improper
and how these proposals and increased 73 percent from fiscal year

Payments Demand Improvements in initiatives will enhance HCFA's ability 1997
through 1999. Funding rose from HCFA Oversight. to comprehensively measure
improper $19. 1 million in 1997 to $28. 5 million in

Schools are an important service overpayments, however, HCFA acted named
himself as the Chair of the

delivery and outreach point for inappropriately. These three largest

Center's Management Committee for Medicaid because one- third of those
matters represented 66 percent of all an unlimited term. After a result of
eligible for Medicaid are school- aged Medicare overpayment settlements

press criticism, Crowell later had the children. Even when schools do not
since 1991 for which HCFA provided trust agreement amended. The U. S.
directly provide Medicaid- covered records. In the settlements, HCFA
Attorney's Office for the Eastern health services, they can help identify,
agreed to accept $120 million for debts

District of Tennessee opened an refer, screen, and assist in enrolling
exceeding $332 million (or about 36 investigation but excluded TVA's Office
Medicaid- eligible children. Outreach cents on the dollar). GAO found that
of Inspector General because of and identification activities help (1)
former HCFA Administrator Bruce

concerns about its ability to be ensure that the most vulnerable Vladek's
participation in the largest independent in investigating senior children
receive routine preventive settlement raised conflict- of- interest TVA
managers. Officials at the U. S. health care, primary care, and concerns,
(2) HCFA ultimately chose Attorney's Office concluded that there treatment.
Most states are seeking

not to obtain the Department of was a prima facie case that Crowell Medicaid
funds to help them provide Justice's approval of the settlements violated
the conflict- of- interest statute medically related services to disabled
and ignored its own regulations and and that further investigation was
children and direct children to internal guidance, (3) HCFA appears to
warranted. Because the U. S. Attorney appropriate health services. However,
have disregarded permissible

was a personal friend of Crowell, controls over the various approaches

settlement criteria established by however, the matter was referred to to
submitting claims for Medicaid regulations, (4) the settlement the Justice
Department. The Justice reimbursement for school- based agreements contained
questionable

Department ultimately concluded that health services and administrative
provisions, and (5) HCFA executed Crowell should not be prosecuted
activities are poor. Oversight by the

settlements without the benefit of legal because he had relied upon a good
Health Care Financing Administration

counsel. GAO summarized this report faith opinion from the agency's ethics
has failed to ensure an appropriate in testimony before Congress; see:
official. In Justice's view, this opinion balance between the states'
demands Health Care Financing Administration:

was incorrect. The problems GAO for flexible, administratively simple Three
Largest Medicare Overpayment found with the creation and operation systems
and the need to account for Settlements Were Improper, by Robert of the
Center raise concerns about the whether federal funds being used as H. Hast,
Acting Assistant Comptroller need for better oversight of TVA. For intended.
The result is confusing and

General for Special Investigations, example, the Board allowed the

inconsistent guidance across the before the Permanent Subcommittee creation
of an irrevocable trust with a

regions and failure to prevent on Investigations, Senate Committee $30-
million endowment that had little improper practices and claims in some on
Governmental Affairs. GAO/ T- OSI00- accountability to TVA. Also, TVA's
states. Without adequate controls and 7, Mar. 28 (seven pages). Inspector
General can be fired by the consistent oversight, Medicaid is

Board, thus limiting the Inspector vulnerable to paying for unneeded and
OSI- 00- 6, Feb. 29, 2000 (23 pages). General's independence. GAO has
undelivered services and activities. Tennessee Valley Authority: Problems

reviewed the adequacy of TVA's Weak agency oversight has created an With
Irrevocable Trust Raise Need for

oversight in the past, concluded that it environment ripe for opportunism
and Additional Oversight. needed more attention, and identified fraud.

ways to improve oversight and The Tennessee Valley Authority (TVA)
accountability. Also, proposals have OSI- 00- 4, Feb. 25, 2000 (55 pages).
established the Center for Rural come before Congress that would have HCFA:
Three Largest Medicare Studies in 1994 to conduct studies and

created a larger Board of part- time Overpayment Settlements Were programs
on the needs of rural directors responsible for policymaking Improper.
communities. TVA endowed the center and oversight of TVA management. with
$30 million. An investigation by The Health Care Financing

TVA's Office of Inspector General led

OSI/ NSIAD- 00- 61, Feb. 2, 2000 (10 Administration (HCFA) provided GAO to
the revocation of the Center's trust

pages). Department of the Navy: with copies of 96 agreements in which
agreement in 1995, and the endowment Breakdown of In- Transit Inventory HCFA
negotiated settlements for money was returned to TVA. The trust

Process Leaves It Vulnerable to Fraud. Medicare overpayments exceeding
agreement initially included provisions $100, 000. In 93 of the 96 matters,
which to ensure the Center's accountability to GAO reported last year that
the Navy were negotiated between 1991 and

TVA. At the direction of TVA Chairman was unable to account for more than
1999, GAO found nothing improper. In Craven Crowell, however, these $3
billion worth of inventory, including settling the three largest safeguards
were stricken, and Crowell classified and sensitive items, that was

in transit within and between storage federal agencies or donate property to
in fiscal year 1999 Medicare fee- forservice

facilities, repair facilities, and end qualified organizations. Inadequate
claim payments, a projected users. (See GAO/ NSIAD- 99- 61, Mar. control, as
a result of inconsistent and $13. 5 billion was paid improperly for

1999.) The Navy later obtained receipts incorrect data in the military's

reasons ranging from inadvertent for 45 of 79 shipments in question,
databases, has allowed organizations errors to outright fraud and abuse.
leaving 34 shipments still unaccounted to obtain excess Defense Department
Because the OIG's methodology was

for. This follow- up report reviews the (DOD) property to which they may not

not designed to identify all types of status of 23 of those shipments. GAO
be entitled. In its investigation of the

potentially fraudulent or abusive found that most of the shipments
University of Alabama at Huntsville,

activity, it does not estimate the full written off as lost by the Navy had
in GAO found that the University used an extent of improper Medicare fee-
forservice fact been delivered. Twenty of the 23 invalid activity code to
obtain more

payments. However, the shipments were delivered but, because

than $3. 5 million worth of excess DOD Health Care Financing Administration
of procedural and system problems, property to which it was not entitled.

(HCFA) has begun three projects that were not reported as received. GAO
Similarly, a Florida Army National could enhance HCFA's ability to was
unable to determine the Guard unit was able to obtain excess

uncover potential fraud and abuse and whereabouts of the remaining three
property between 1998 and 1999 by to determine the extent of the shipments
because the Navy could not using an invalid activity code that had

payments attributable to potential provide documentation. During GAO's

been deleted in 1990. Officials at the fraud and abuse. In addition, the use
of earlier review, Navy officials claimed

Defense Logistics Agency were unable carefully selected detection techniques
that some items written off as lost had to explain why their computer system
to identify potential fraud could help actually been received. They could
not, had failed to reject the invalid codes. HCFA arrive at a more
comprehensive however, provide evidence to support

DOD has exercised poor oversight measurement of improper payments their
contention. They said that their over the management of excess DOD

and develop cost- effective internal information was based primarily on
property provided to these controls to combat them. telephone calls and e-
mail messages organizations. GAO found that from the issuing facilities to
the property obtained by the University of T- GGD/ OSI- 00- 19, Oct. 7, 1999
(19 intended recipients. GAO found that Alabama at Huntsville had not been
pages). General Services this was primarily shipping inventoried as
required, a significant Administration: Status of Efforts to information
that was not proof of portion could not be located, and some Improve
Management of Building either delivery or receipt. Although of the property
had been misused or Security Upgrade Program, by Bernard GAO's investigation
uncovered no

stolen. The University also failed to L. Ungar, Director, Government

evidence of theft in the shipments it provide pertinent information to
Business Operations Issues, before the reviewed, GAO believes that the
government officials, which limited the

Oversight, Investigations, and inventory process is susceptible to
effectiveness of oversight efforts. Emergency Management waste, fraud, and
abuse. In- transit Internal DOD studies have identified Subcommittee, House
Committee on inventory discrepancies reduce the

mismanagement of excess property by Transportation and Infrastructure.
reliability of the Defense Department's other universities. inventory
financial reports by In the wake of the bombing of the

obscuring true inventory losses and

Testi mony Murrah Federal Building in Oklahoma misstating the number of
items on City in 1995, the President directed hand.

T- AIMD/ OSI- 00- 251, July 12, 2000 (32 federal agencies to upgrade the
pages). Medicare Improper Payments:

security of their buildings. The OSI/ NSIAD- 00- 147, Apr. 28, 2000 (20
Challenges for Measuring Potential President gave the General Services
pages). Inventory Management: Better Fraud and Abuse Remain Despite
Administration (GSA) responsibility Controls Needed to Prevent Misuse of
Planned Enhancements, by Gloria L. for the buildings under its control, and
Excess DOD Property. Jarmon, Director, Health, Education,

GSA began a multimillion- dollar and Human Services Accounting and

security enhancement program. GAO The Defense Reutilization and Financial
Management Issues, before found that GSA has made progress in Marketing
Service transferred and the Task Force on Health Care, House

implementing GAO's disposed of nearly $18 billion worth of Committee on the
Budget.

recommendations. GSA told its regions excess military property between 1996
to reassess the security of all of the and 1999. The excess property is
Results from a recent Department of buildings in its inventory by April 1999
available for reuse by military agencies Health and Human Services (HHS)

(1) to ensure that all of its buildings and government contractors. The
Office of the Inspector General (OIG) have been assessed and meet the
Service can also transfer property to study indicate that, of the $164
billion Justice Department's minimum

security standards and (2) to 1999, largely due to increased travel.
Financing Administration (HCFA) and determine whether the security

Only the Secret Service and State by improper payments. Forty- seven

upgrade information was correctly Department have specific statutory states
and the District of Columbia represented in both the upgrade

authority to protect executive branch reported $2. 3 billion in Medicaid
tracking system and the accounting officials. Agencies reported that their
expenditures for school- based system. GSA completed negotiations officials
received different levels and

activities for the latest year for which with the Office of Management and
frequency of protection and that they have data. Although this affects
Budget and, as a result, has a way to protection was needed to respond to
only a small percentage of overall recoup more of its building security
possible and actual threats. Most

Medicaid spending, more schools are costs. GSA, however, still lacks

agencies favored establishing a expressing interest in Medicaid as a

completely accurate data in its repository of protective intelligence to
source of funds, especially to upgrade tracking and accounting

facilitate sharing of threat information reimburse administrative
activities.

systems and has not finished about their officials. Also, agencies Some
school districts and states developing outcome- oriented goals

reported that their protective claiming Medicaid reimbursement for and
measures for its building security personnel received different amounts
school- based services lack adequate

program. GSA decided on a new risk of protection training and from controls
to help ensure that their assessment methodology and is now

different sources. Field staff received claims are legitimate. Despite the
evaluating how to implement the less training than did the agencies'
fulltime significant Medicaid payments for methodology in future building
personnel based in Washington.

school- based services in some states, security surveys. Finally, GSA's
recent

Most agencies favored establishing a school districts may receive little in
reassessment of each building was to

standardized protection training direct reimbursements because of mark the
restart of the routine physical program. Most agencies opposed funding
arrangements among schools,

security surveys that were suspended centralizing security protection under
states, and private firms. Seven states because of a lack of sufficient one
agency. No single agency or keep as much as 85 percent of the

personnel after the Oklahoma City official is responsible for handling
federal reimbursement for Medicaid bombing.

issues relating to routine protection of school- based claims. Some school
executive branch officials. This districts also pay up to 25 percent of T-
GGD/ OSI- 00- 177, July 27, 2000 (10 fragmentation has serious implications

their federal Medicaid reimbursement pages). Security Protection: because 14
of the protected officials to private sector firms that help them
Standardization Issues Regarding are in the line of presidential develop
claiming methodologies, train Protection of Executive Branch succession.
Moreover, the lack of school personnel to apply them, and

Officials, by Bernard L. Ungar, thorough threat assessments submit the
claims for reimbursement.

Director, Government Business documenting the level of protection As a
result, schools may end up with as

Operations Issues, and Robert H. Hast, needed makes it difficult to
determine little as $7. 50 for every $100 claimed.

Acting Assistant Comptroller General, the basis for and reasonableness of
These funding arrangements can before the Criminal Justice Oversight
protection being given. This testimony reduce incentives for appropriate
Subcommittee, Senate Committee on summarizes the July 2000 report, program
oversight and create an the Judiciary. GAO/ GGD/ OSI- 00- 139. environment
of opportunism that siphens funds away from their From fiscal years 1997
through 1999, T- HEHS/ OSI- 00- 87, Apr. 5, 2000 (19

intended purposes. HCFA has 42 executive branch positions at 31 pages).
Medicaid in Schools: Poor historically provided little or executive branch
agencies-- including

Oversight and Improper Payments inconsistent direction and oversight of all
14 Cabinet secretaries, four deputy Compromise Potential Benefit, by
Medicaid reimbursements for schoolbased

or under secretaries, and 24 other highranking Kathryn Allen, Associate
Director,

claims. HCFA has recently officials (mainly heads of Health Financing and
Public Health focused more attention on these agencies)-- had security
protection. Issues, and Robert H. Hast, Acting issues, but the states are
still awaiting Personnel from 27 different agencies Assistant Comptroller
General, before more guidance. protected them: 36 officials by their

the Senate Committee on Finance. own agencies or departments and six

T- OSI- 00- 3, Nov. 9, 1999 (9 pages). from other agencies or departments,

Despite growing expenditures for Private Banking: Raul Salinas,

such as the Secret Service and the school- based Medicaid services, the
Citibank, and Alleged Money Marshals Service. Protective personnel

potential benefits to schools and the Laundering, by Robert H. Hast, Acting
increased 73 percent from fiscal year children they serve are being

Assistant Comptroller General, before 1997 through 1999. Funding rose from
compromised by poor guidance and the Permanent Subcommittee on $19. 1
million in 1997 to $28. 5 million in oversight from the Health Care

Investigations, Senate Committee on settlements without the benefit of legal
the Crime Subcommittee, House Governmental Affairs. counsel. This testimony
summarizes

Committee on the Judiciary. the February 2000 GAO report, This testimony
summarizes GAO's

GAO/ OSI- 00- 4. Counterfeit security badges and 1998 investigation of
alleged illegalities credentials are readily available for involving Raul
Salinas, brother of the T- OSI- 00- 9, Apr. 6, 2000 (7 pages). sale on the
Internet and other public former President of Mexico, and Medicare: Improper
Third- Party Billing sources and could be used by Citibank. (See GAO/ OSI-
99- 1, Oct. of Medicare by Behavioral Medical

criminals, terrorists, and foreign spies 1998.) Mr. Salinas has allegedly
been Systems, Inc., by Robert H. Hast,

to gain access to secure government involved in laundering money out of
Acting Assistant Comptroller General, buildings and airports. GAO's Mexico,
through Citibank, to accounts

before the Oversight and undercover agents acquired fictitious in Citibank
affiliates in Switzerland

Investigations Subcommittee, House law enforcement badges and tried to and
the United Kingdom. Committee on Commerce. gain access to secure government
facilities. These agents were 100 T- OSI- 00- 7, Mar. 28, 2000 (7 pages).
Behavioral Medical Systems, Inc. percent successful in penetrating 19 Health
Care Financing Administration:

(BMS), of Sugarland, Texas, federal sites and two commercial

Three Largest Medicare Overpayment represented itself to Medicare as a
airports. GAO entered 18 of the 21 sites

Settlements Were Improper, by Robert healthcare provider but actually on its
first attempt; the other three H. Hast, Acting Assistant Comptroller
functioned as a broker of medial sites required a second visit before
General, before the Permanent

services, contracting with third- party GAO was able to penetrate them. At
no Subcommittee on Investigations, billers that submitted claims to time
during the undercover visits were Senate Committee on Governmental Medicare
on behalf of providers that the GAO agents' bogus credential or Affairs.

had entered into contracts with BMS. badges challenged by anyone. At the 21
BMS contracted with nursing homes to sites that GAO's undercover agents The
Health Care Financing

provide psychiatric services to their successfully penetrated, they could
Administration (HCFA) provided GAO

residents. BMS also contracted with have carried in weapons, listening with
copies of 96 agreements in which

psychiatrists and psychotherapists-- as devices, explosives, or chemical and
HCFA negotiated settlements for independent contractors-- to provide
biological agents. Sixteen of the sites

Medicare overpayments exceeding those services. Of the 4, 900 claims that
GAO visited contained the offices of $100, 000. In 93 of the 96 matters,
which BMS filed in a 20- month period, 87 cabinet secretaries or agency
heads. At were negotiated between 1991 and

percent were for medical services 15 of these sites, GAO's undercover 1999,
GAO found nothing improper. In reportedly not provided. These agents were
able to reach the entry to settling the three largest Medicare claims for
fictional services

the suites of the cabinet secretary or overpayments, however, HCFA acted
totaled $1. 3 million. In GAO's view, agency head. At 15 of the sites, GAO's
inappropriately. These three largest BMS violated the general statutory
agents entered a restroom near these matters represented 66 percent of all
principle that Medicare payments

offices and could have left a valise Medicare overpayment settlements

should be made directly to the containing weapons or explosives since 1991
for which HCFA provided beneficiary or the assigned doctor who without being
detected. At a federal records. In the settlements, HCFA provided the
medical services. As a courthouse, GAO's agents were waved

agreed to accept $120 million for debts result of GAO's investigation,
Medicare through a magnetometer but not exceeding $332 million (or about 36
temporarily suspended BMS in July screened. A briefcase that one agent

cents on the dollar). GAO found that 1999, and the matter has been referred
carried went unchecked. The agents (1) former HCFA Administrator Bruce to
the Inspector General of the

were escorted to a gunroom, which Vladek's participation in the largest
Department of Health and Human they were allowed to enter alone. They
settlement raised conflict- of- interest Services and to the Justice

were then told to lock their weapons, concerns, (2) HCFA ultimately chose
Department. However, the founder of but no one supervised the actual not to
obtain the Department of BMS is now submitting Medicare surrender of the
agents' weapons. At Justice's approval of the settlements claims under an
old provider number- the two airports GAO visited, the and ignored its own
regulations and unrelated to BMS-- issued to her in agents declared
themselves to be internal guidance, (3) HCFA appears to 1993. armed law
enforcement officers and have disregarded permissible displayed their fake
badges and settlement criteria established by T- OSI- 00- 10, May 25, 2000
(8 pages). identification. The agents were issued regulations, (4) the
settlement Security: Breaches at Federal Agencies

law enforcement' boarding passes at agreements contained questionable and
Airports, by Robert H. Hast, the ticket counter. The agents then provisions,
and (5) HCFA executed Assistant Comptroller General, before presented
themselves at security

checkpoints and were waved around health care providers. The biller may

cooperative agreements could be the magnetometers. Neither the agents or may
not be in on the scheme. reached. GAO recommends that the nor their valises
were screened.

Enacting the proposed legislation will Army and the Bureau review the

give the Department of Human advantages and disadvantages of using T- OSI-
00- 15, July 25, 2000 (10 pages). Services' Office of Inspector General a
cooperative agreement approach and Health Care Fraud: Schemes to additional
enforcement tools with determine whether such an approach Defraud Medicare,
Medicaid, and

which to pursue health care swindlers. would be useful. Private Health Care
Insurers, by Robert H. Hast, Assistant Comptroller T- OSI- 00- 17, Sept. 21,
2000 (8 pages). RCED- 00- 1, Oct. 22, 1999 (30 pages). General for Special
Investigations, Pension Benefit Guaranty Corporation:

Transportation Coordination: Benefits before the Government Management,
Appearance of Improper Influence in and Barriers Exist, and Planning
Information and Technology Certain Contract Awards, by Robert H. Efforts
Progress Slowly. Subcommittee, House Committee on

Hast, Assistant Comptroller General, Government Reform. before the Senate
Committee on Small For decades, many human services Business and Senate
Special agencies have provided special Across the country, career criminals
Committee on Aging. transportation services for seniors, the and organized
crime have become disabled, and others through programs involved in health
care fraud. Both the During a management review, GAO funded and administered
by the

House and Senate have introduced discovered contracting irregularities
Department of Health and Human

bills designed to combat waste, fraud, affecting two contracts with a

Services (HHS). The estimates of and abuse in Medicare programs. combined
worth of $40 million. In overall spending on transportation by Under the
proposed legislation, the GAO's view, PBGC official's actions HHS programs
in fiscal year 1998 purchase, sale, or distribution of two demonstrated a
lack of impartiality ranged from about $2 billion to $3. 5 or more Medicare
or Medicaid

and created the appearance of billion. In addition, the Department of
beneficiary identification numbers will improperly influencing the award of
Transportation's Federal Transit be a felony. In the rent- a- patient the
two contracts. This matter was Administration (FTA) awards grants to scheme,
organizations pay for-- or referred to PBGC and the Justice local transit
operators to provide "rent"-- persons to go to clinics for Department.
assistance for general public unnecessary diagnostic tests and

transportation systems. FTA's overall examinations. Medicare, Medicaid, and

RCED expenditures are estimated to exceed other insurers are billed for
these $4 billion for fiscal year 1998. Section services and for other
services and

NSIAD/ RCED- 00- 251, Sept. 21, 2000 3034 of the Transportation Equity Act
equipment that is never provided. In a (33 pages). Federal Facilities:
Further

for the 21st Century requires GAO to variation of this scheme, perpetrators
Review of Hawthorne Army Depot report on federal agencies that provide buy
individual health care insurance Land Management Proposals Needed.
nonemergency human services identification numbers for cash. In the

transportation. pill mill scheme, separate health care The Bureau of Land
Management and individuals-- usually including a the Hawthorne Army Depot
(Nevada) RCED- 00- 3, Oct. 27, 1999 (10 pages). pharmacy-- collude to
generate a flood have not reached agreement on the

Food Safety: Agencies Should Further of fraudulent claims that Medicaid
Bureau's proposal to terminate Army Test Plans for Responding to pays. The
patient sells the prescription control and exclusive use of a large
Deliberate Contamination. medications to pill buyers on the street portion
of the lands at Hawthorne, who then sell the drugs back to the including the
Mount Grant watershed.

Are federal food safety regulatory pharmacy. The drop box scheme uses Army
and local community officials agencies prepared to respond to acts a private
mailbox facility as the questioned terminating the withdrawal or threats of
deliberate food fraudulent health care entity's address, without having a
specific management

contamination, including those by with the entity's "suite" number plan in
place. Differing approaches terrorists? The agencies primarily actually
being its mailbox number at have been proposed: (1) the Army responsible are
the Food Safety and

the private mailbox facility. The could continue to limit public access
Inspection Service and the Food and

perpetrator then retrieves the checks to the watershed; (2) the Bureau could
Drug Administration. Deliberate and deposits them into a commercial manage
the land and open portions of contamination of food with a bank account. The
third- party billing the watershed to multiple use (public biological agent
has rarely occurred in scheme revolves around a third- party

access, livestock grazing, mineral the United States. However, GAO biller
who prepares and remits claims mining), with restrictions to protect
identified two acts since 1984, which to Medicare or Medicaid on behalf of
the Depot's water supply; (3) joint produced short- term illnesses among

more than 750 people, but no deaths. information on (1) the measures that
upland cotton. The top 10 states where

In addition, from 1995 through 1999, the U. S. Department of Agriculture
producers received the assistance the federal agencies reported three (USDA)
used to assess states' requests

were Illinois, Indiana, Iowa, Kansas, threats-- two were hoaxes and the

for waivers to the work requirement Minnesota, Nebraska, North Dakota, other
is still under investigation. This

for able- bodied adults without Ohio, South Dakota, and Texas. This

report describes the plans and dependents, (2) how states have used report
discusses (1) which producers

procedures that federal agencies have the waiver provision, and (3) whether
received cash payments through the in place to cope with threats and acts
USDA and states considered the

program, (2) why some producers did of deliberate food contamination with
availability of employment in adjacent not participate in the program, and
(3) a biological agent. areas when deciding which areas to the concerns that
have been raised include in a waiver.

about the program's effects on cash RCED- 00- 4, Oct. 18, 1999 (15 pages).
payments and potential forfeitures. Surface Transportation: Issues Related
RCED- 00- 7, Nov. 30, 1999 (47 pages). to Preserving Inactive Rail Lines as
Wildlife Management: Negotiations on RCED- 00- 10, Oct. 15, 1999 (31 pages).
Trails. a Long- Term Plan for Managing

National Fish Hatcheries: Yellowstone Bison Still Ongoing. Classification of
the Distribution of The National Trails System Act, as Fish and Eggs Needs
Refinement. amended, provided carriers with an The National Park Service;
the alternative, referred to as "rail Montana Department of Fish, Wildlife

Fish hatcheries operated by the U. S. banking," to abandoning unused
rightsof- and Parks; and the Forest Service have Fish and Wildlife Service
have been way. Rail banking preserves a rightof-

formed an interagency team to around for more than 120 years. The way for
the possible restoration of examine alternatives for managing the hatcheries
have helped to ensure the rail service in the future and, in the bison herds
in Yellowstone National recovery of species of fish that have interim, makes
the property available

Park. The goal is to develop a been listed as threatened or for use as a
trail. Concerns have been management plan that would ensure endangered,
restored native fish raised by some landowners adjoining the viability of
the park's wild and freeranging

stocks, replaced fisheries lost as a these rights- of- way about the lack of
bison herd while at the same result of water projects, and supplied
opportunity for them to either recover

time protecting Montana's domestic fish to Indian tribes and Service lands.
the use of that property or to express

cattle from contracting brucellosis-- a This report provides information on
their views about how the property is disease that can cause cattle to abort

(1) the funding level for the National being used. This report describes the
during pregnancy. Because some Fish Hatchery System since fiscal year
implementation process for rail Yellowstone bison are infected with 1992,
(2) the current production level banking, the extent to which railbanked
brucellosis, ranchers and public at federal hatcheries, and (3) health
property has returned to use as officials in Montana fear that the bison and
disease problems at the hatcheries

rail lines and the potential for future will transmit the disease to
domestic that raise concerns about releasing the reactivation of rights- of-
way for rail cattle. This report provides fish into the wild. service, and
whether rail banking

information on the various alternatives facilitates the return of these
rights- ofway for the long- term management of the RCED- 00- 12, Nov. 24,
1999 (21 pages). to rail service. Yellowstone bison.

Food Assistance: Efforts to Control Fraud and Abuse in the Child and RCED-
00- 5, Oct. 20, 1999 (15 pages). RCED- 00- 9, Nov. 23, 1999 (22 pages).
Adult Care Food Program Should be Food Stamp Program: How States Are

U. S. Department of Agriculture: Strengthened. Using Federal Waivers of the
Work Marketing Assistance Loan Program Requirement. Should Better Reflect
Market

The U. S. Department of Agriculture's Conditions. Food and Nutrition Service
runs the Under welfare reform, able- bodied Child and Adult Care Food
Program

adults between the ages of 18 and 50 The marketing assistance loan using
designated state agencies. The with no dependents are limited to program
provides farmers who grow program provides more than $1. 5 three months'
worth of Food Stamps in certain crops with financial assistance billion in
benefits each year to children any three- year period unless they meet at
harvest time, when prices are and adults in day care. In response to a work
requirement or are exempt. usually lower than at other times of the

continuing concerns about fraud and States, however, may exempt up to 15
year. As of September 1999, $3. 4 billion abuse in the program, this report
percent of their able- bodied adults of the $3. 7 billion in cash payments
examines (1) the extent to which the without dependents from the work went
to producers of the following states have implemented controls to
requirement. This report provides four crops: corn, soybeans, wheat, and
prevent and detect fraud and abuse

and (2) the Service's effectiveness in Advisory Committee on have more
frequent hand- to- mouth directing the states' efforts to Microbiological
Criteria for Foods and contact. Comprehensive nationwide implement controls.
endorsed by the scientific community, information on the amount of is based
on seven guiding principles.

pesticides applied in the nation's

RCED- 00- 14, Nov. 26, 1999 (16 pages). These principles center around the

110, 000 public schools is unavailable. Welfare Reform: Implementing DOT's
identification of biological, physical,

Data on short- and long- term illnesses Access to Jobs Program in Its First

and chemical hazards that are likely to linked to pesticide exposure,
whether Year. occur in meat and poultry plants and in schools or other
settings, is limited. the establishment of critical points in

The Environmental Protection Agency Three- fourths of welfare recipients
live

the production process where controls and several states have sought to in
central cities or rural areas, while can be applied to prevent or reduce
reduce the use of pesticides in schools two- thirds of the new jobs are
found in those hazards. This report (1)

by using alternative pest management the suburbs. Many of these new jobs
determines whether the system strategies, including structural repairs are
in areas with little or no public adopted by USDA in its regulations is to
stop pests from getting into a transportation and are accessible consistent
with the seven HACCP

building, improving sanitation, and primarily by car. The Access to Jobs

principles endorsed by the Advisory using baits and traps. If pesticides are
and Reverse Commute Program Committee, (2) evaluates whether the

needed, this "integrated pest authorizes the Department of HACCP training
program for USDA management approach" suggests that Transportation to
provide grants to inspectors is adequate and sciencebased, the least- toxic
chemicals be used.

local agencies, nonprofit groups, and and (3) determines if there is an
Since the early 1990s, EPA has been transit authorities to help address this

adequate dispute resolution process encouraging schools to adopt this

mismatch. Up to $750 million has been between plants and USDA under the
approach, including providing set aside through 2003 to implement new
inspection system. GAO found

financial support to some state and the program. This report describes (1)

that USDA's HACCP regulations, along school districts and producing the
Department's implementation of with guidance, are consistent with the

manuals and education kits. Several the program, particularly its approach
seven HACCP principles endorsed by states are also taking steps to for
selecting awards in fiscal year 1999;

the Advisory Committee. Generally, implement or promote integrated pest (2)
the fiscal year 1999 grantees and inspectors received the training
management in schools. their planned approaches for providing

needed to oversee plants' transportation services to low- income
implementation of HACCP programs, RCED- 00- 18, Dec. 14, 1999 (47 workers;
and (3) the changes that the although many inspectors reported pages). Mass
Transit: Use of Department is making to the program

that they would benefit from refresher Alternative Fuels in Transit Buses.
in response to GAO's earlier courses. In GAO's view, USDA's dispute
recommendations, including the resolution process provides industry

To help reduce air pollution in U. S. establishment of specific objectives,

with an appropriate mechanism to cities, various alternative fuels have
performance criteria, and measurable appeal inspectors' enforcement been
proposed for use in transit buses, goals for evaluating the program's

actions. including compressed natural gas, success.

liquified natural gas, methane, ethanol, RCED- 00- 17, Nov. 29, 1999 (18
pages). biodiesel fuel, and propane. GAO

RCED- 00- 16, Dec. 8, 1999 (32 pages). Pesticides: Use, Effects, and found
that alternative fuel buses

Meat and Poultry: Improved Oversight Alternatives to Pesticides in Schools.
account for a very small, but growing,

and Training Will Strengthen New portion of the nation's transit bus fleet.
Food Safety System. Federal law regulates the use of Five percent of the
nation's 50,000

pesticides in the United States, but transit buses ran on some type of To
reduce foodborne illnesses and

there are no specific provisions alternative fuel in 1997. The most

improve the safety of meat and poultry dealing with the use of pesticides in

commonly used alternative to diesel products, the Department of the nation's
schools. Pesticides can fuel is compressed natural gas. Transit Agriculture
(USDA) issued regulations cause a range of harmful effects in operators are
also beginning to test requiring that all meat and poultry people-- from
cancer to lung damage to new propulsion system technologies --

plants adopt a science- based problems with the nervous system--

hybrid electric systems and fuel cells -- production control system, known
as and children are at higher risk from in their transit buses. Data are
limited Hazard Analysis and Critical Control

pesticide exposure than are adults on the extent to which alternative fuels
Point (HACCP), by January 2000. The because, among other things, they play
in transit buses have improved air HACCP approach, which was

on floors and lawns where pesticides quality in urban areas. Transit
recommended by USDA's National

are commonly applied. Also, children operators pay more to buy, maintain,

and operate buses that use Secretary interfere with the Office's intended--
since the last of its

compressed natural gas than they pay ability to carry out the mark- to-
market production reactors was shut down in for diesel buses. When deciding
program; and (3) whether the other

1988 because of safety and operational whether to switch to alternative
fuels, HUD offices from which the Office problems. DOE has been considering
transit operators consider a range of must obtain support have provided the
two technologies to produce tritium: a factors, including the need to adhere
to support requested.

commercial reactor and an more stringent emissions standards, accelerator.
In 1997, DOE requested public concerns about transit bus RCED- 00- 22, Jan.
28, 2000 (62 pages). proposals from commercial reactor pollution, and the
higher costs and Superfund: Analysis of Costs at Five allow for the agency
to buy either a

reduced reliability of buses that use Superfund Sites. reactor or
irradiation services. The alternative fuels. Tennessee Valley Authority
(TVA), the

Since the Superfund program began in only responsive bidder, offered RCED-
00- 21, Jan. 20, 2000 (45 pages).

1980, the Environmental Protection proposals to finish building a partially
Multifamily Housing: HUD's Agency (EPA) has spent about $17.7 complete
commercial reactor and to Restructuring Office's Actions to billion to clean
up hazardous waste provide irradiation services. In Implement the Mark- to-
Market

sites. EPA oversees the work, but December 1998, DOE chose the Program.
private contractors do the actual commercial reactor technology option,
cleanups-- known as remedial actions- specifically the purchase of
irradiation The Office of Multifamily Housing of Superfund sites. GAO has
issued a

services from TVA's commercial power Assistance Restructuring was series of
reports that describe the

reactors, as the means to produce established within the Department of
portion of EPA's funds spent on

tritium. DOE also decided to continue Housing and Urban Development remedial
actions by contractors, as

to develop and design-- but not to (HUD) in 1998 to administer the "markto-
opposed to other activities, such as construct-- an accelerator that could
market" program. This program studying conditions at sites, designing

function as a backup for the provides the framework to restructure

cleanup remedies, and travel. (See production of tritium. This report HUD's
portfolio of insured Section 8 GAO/ RCED- 97- 211, Sept. 1997, determines
(1) if the cost estimates multifamily housing projects by GAO/ RCED- 98-
221, Aug. 1998, and used by DOE during the process of "marking" (resetting)
rents to market GAO/ RCED- 99- 139, May 1999.) This selecting between the
tritium levels and by reducing mortgage debt,

report examines the costs at the production technology options were if
necessary, to permit a positive cash following five Superfund sites: the

comparable and adequately supported; flow. Without restructuring, rents for

Raymark site in Stratford, (2) what management, technological,

many insured Section 8 multifamily Connecticut; the Sharon Steel site in and
legal activities could affect the

housing projects would substantially Midvale, Utah; the United Creosoting
completion of the commercial reactor exceed market levels, resulting in site
in Conroe, Texas; the NL

on schedule and within budget; and (3) higher subsidies under the Section 8
Industries site in Granite City, Illinois;

whether DOE's current plan to develop program. This report discusses (1) the

and the Newmark site in San and design the accelerator is an Office's
progress in obtaining the Bernadino, California. For each site,

effective backup that the agency could staffing resources to implement the
GAO discusses (1) what portion of the build and operate within cost and
program, (2) the Office's progress on

total funds EPA spent on each site was schedule estimates.

seven steps that are key to the used to pay contractors for remedial
program's successful implementation, actions as opposed to other activities

RCED- 00- 25, Oct. 29, 1999 (30 pages). and (3) whether the Office has and
how the contractors spent the Superfund: Information on the implemented nine
statutory money and (2) whether the actual Program's Funding and Status.
requirements in accordance with the

costs for remedial actions differed law. This report also discusses the from
the estimated costs and why. After nearly 20 years and outlays of
relationship between the Office and more than $14 billion, the Superfund
other HUD offices, including (1) the RCED- 00- 24, Jan. 28, 2000 (44 pages).
program has yet to complete cleanups

extent to which HUD management is Nuclear Weapons: Challenges Remain for 42
percent of the nation's most

involved in directing, reviewing, and for Successful Implementation of
severely contaminated hazardous approving the Office's activities and

DOE's Tritium Supply Decision. waste sites. The Superfund trust fund how
this involvement has affected the has been financed primarily by a tax
Office's operations; (2) whether the The Energy Department (DOE) has not on
crude oil and some chemicals, Office's Director has complied with the

produced tritium-- a radioactive gas together with an environmental tax on
legislative requirements to report to that must be replaced periodically in
corporations. This report discusses (1) Congress if actions by the HUD
nuclear weapons if they are to work as

the status of the program's funding and

expenditures, including information on RCED- 00- 29, Jan. 19, 2000 (61
pages). its portfolio. Two of the sales involved the Superfund trust fund so
far and the Nuclear Regulation: NRC Staff Have properties in which some or
all of the money appropriated from it to federal Not Fully Accepted Planned
Changes. units were subsidized by HUD-- a sale agencies other than the
Environmental of 158 partially assisted multifamily Protection Agency for
Superfund The Nuclear Regulatory Commission mortgages and a sale of 26
subsidized activities; (2) the costs to responsible (NRC) has been moving
from its multifamily mortgages to the Missouri parties for all site cleanups
and these traditional regulatory approach, which

Housing Development Commission. parties' related transaction costs from was
largely developed without the These two loan sales also contained 1980
through 1998, categorized before benefit of quantitative estimates of
special conditions, including and after December 1995, when the

risk, to an approach-- termed "riskinformed protection against
discrimination for

authority for Superfund taxes expired; regulation"-- that considers

assisted tenants and funding for and (3) the cleanup status of the 640
relative risk in conjunction with property improvements. GAO found
nonfederal sites on the National

engineering analyses and operating that at the partially assisted properties
Priorities List as of April 1999 and the experience. NRC believes that such
an whose project- based assistance estimated total and annual costs to
approach would reduce the

contracts had expired, more than finish cleaning them up. unnecessary
regulatory burden on

three- quarters of the eligible licensees and lower their costs without
households were able to use the RCED- 00- 26, Dec. 14, 1999 (42 reducing
safety. NRC also believes that tenant- based assistance that HUD had pages).
Pork Industry: USDA's

this approach will increase the provided in lieu of project- based Reported
Prices Have Not Reflected agency's effectiveness and efficiency.

assistance. Of the households that Actual Sales. NRC's move to a risk-
informed

used tenant- based assistance, 65 approach is a major change to its percent
stayed in the same units and The prices being paid for hogs in the culture.
Ultimately, this approach will the rest moved. Of the households that open
market (spot prices) plunged in apply not only to the nation's 103 moved,
about 50 had to do so because 1998, dropping from $0.45 cents per operating
nuclear power plants but to the owners of the three properties pound in May
to below $0. 10 cents per thousands of entities that are licensed where
these families had lived refused pound in December well below the

to use nuclear materials in medical, to rent to recipients of tenant- based
estimated cost of $0. 35 cents per academic, and industrial applications;
assistance. The average monthly rent pound to produce a hog. At the same
process, enrich, and fabricate uranium of households that received vouchers
time, the Department of Agriculture

ore into fuel for nuclear power plants; rose by $56. HUD prohibits property
(USDA) reported that the sharp

and dispose of radioactive waste owners from unreasonably refusing to
decline in hog prices was not fully generated by these and other activities.

rent to households with tenant- based reflected in pork prices at the This
report discusses (1) the views of assistance. HUD also gives tenants and
supermarket. For this period, USDA NRC staff on the quality of the work
housing authorities the right to seek reported that the difference between

that the agency does, the management judicial enforcement of this
protection. the prices farmers received for their

and staff's involvement in changes However, HUD did not fully inform hogs
and the prices consumers paid occurring in the agency, and the move

housing authorities, tenants, and for pork was wider than it had been in

to a risk- informed regulatory approach property owners of this protection.
As decades. This report examines the (1) and (2) the status of NRC's efforts
to a result, most housing authorities were structural changes in the pork
industry develop a strategy to implement a riskinformed unaware of their
right to seek judicial that have occurred since the 1980s and regulatory
approach. enforcement, and representatives of their effect on production and

the three properties whose owners marketing, (2) reasons for the sudden
RCED- 00- 31, Jan. 20, 2000 (103 refused to accept tenant- based and rapid
decline in prices paid to pages). Multifamily Housing: Impact assistance
told GAO that they were farmers in late 1998, and (3) extent to of Loan
Sales on Tenants and

unaware of the prohibition against which USDA's methods for obtaining

Properties Varies by Property. unreasonably refusing to rent to and
reporting on prices at the farm and households using tenant- based retail
level for hogs and pork products In 1994, in an effort to make better use
assistance. According to the results of yield accurate estimates of these

of its resources, the Department of inspections done by HUD and others at
prices. Accurate prices are important Housing and Urban Development the time
of the partially assisted and because they provide farmers with (HUD) began
to liquidate its inventory Missouri loan sales and by GAO during reliable
information upon which to of multifamily mortgages. Through visits to the
most run- down properties base production and marketing nine sales held
between 1994 and 1996,

that it chose as case studies, decisions.

HUD sold more than 1, 200 of the conditions at these properties are nearly
2,400 multifamily mortgages in improving. The improvements

generally addressed major problems Service: Changes in Passenger Traffic,
order and provide service to their own

with building exteriors, apartment Subsidy Levels, and Air Carrier Costs,

customers. GAO's discussions with interiors, and property grounds. by John
H. Anderson, Jr., Director of competing and incumbent carriers in
Transportation Issues, before the

five states, however, suggest that

RCED- 00- 34, Apr. 14, 2000 (39 pages). Subcommittee on Aviation, House
providing this access has been difficult Essential Air Service: Changes in

Committee on Transportation and because these incumbents' systems

Subsidy Levels, Air Carrier Costs, and Infrastructure. GAO/ T- RCED- 00-
185,

were not designed to be accessible to Passenger Traffic. May 25, (15 pages).
external users. Competing carriers in the five states also said that the act
and More than two decades have passed RCED- 00- 38, Jan. 25, 2000 (57
pages). accompanying rules need better since Congress phased out the federal
Telecommunications: Development of enforcement. Despite the minimal
government's control over airfares and Competition in Local Telephone
competition that has emerged in the service. Concerned that air service to
Markets. market so far, GAO believes that more some small communities would
suffer competition is likely in the local in a deregulated environment, The
Telecommunications Act of 1996

telephone markets because competing Congress established the Essential Air
sought to spur competition in local carriers continue to expand their
Service (EAS) program in 1978 and telephone and other market share, these
carriers are using made special provisions for providing telecommunications
markets. GAO

all entry modes envisioned by the act, this service in Alaska. The goal of
the found that little competition has legal and regulatory issues are EAS
program, administered by the emerged in local phone markets so far,
increasingly being clarified, and the Department of Transportation (DOT),
but new competing carriers are

packaging of telecommunications is to ensure that small communities pursing
several different market services may allow firms to compete that had
received scheduled passenger strategies. Incumbent local telephone
effectively for local telephone air service before deregulation service
providers controlled all but customers. The Federal continue to have access
to air about three percent of the traditional Communications Commission and

transportation. DOT does this by wireline local telephone service state
regulators are taking steps that awarding subsidies to carriers willing
market as of December 1998. The suggest greater enforcement efforts in to
provide service to communities that number of lines that competing the
future.

would not otherwise receive it. carriers serve, however, has increased
Congress increased the program's

rapidly, approximately tripling in 1998 RCED- 00- 39, Apr. 19, 2000 (31
pages). annual funding to $50 million in fiscal alone. Although competing
carriers Fire Protection: Barriers to Effective year 1998 and directed that
overflight have focused on serving relatively Implementation of NRC's Safety
fees not obligated on the EAS program

profitable urban business Oversight Process. be used to pay for rural air
safety communities, some of the competing projects. This report reviews the
carriers GAO interviewed in five states

Concern over the risk of fire in program and determines whether all were
serving other markets, such as

commercial nuclear power plants communities were receiving the

residential customers and customers increased after a fire at the Browns
subsidized service to which they were outside the largest cities. An
important Ferry nuclear plant in Alabama in 1975. entitled and whether the
increase in competitive strategy being undertaken

The fire damaged a relatively small funding had been made available for by
both competing and incumbent area but harmed one of the plant's rural air
safety projects. GAO (1)

carriers is the simultaneous marketing safety systems and the operator's

determines how DOT applied criteria and sale of a package of various ability
to monitor the status of the to decide which communities would
telecommunications services,

plant. As a result of that fire, the receive subsidized air service, (2)
including local and long- distance Nuclear Regulatory Commission describes
changes in the level of telephone service, Internet access, (NRC) and the
nuclear utility industry subsidies provided to EAS- eligible wireless
telephone services, and video have taken various steps to help communities
in fiscal year 1999 services. More competition in local ensure that nuclear
plants are safe relative to that provided in 1995, (3) phone markets will
depend, in part, on

from the threat of fires and that identifies why the level of subsidies

how several key issues are resolved. utilities can safely shut these plants
changed between 1995 and 1999, and For example, the act required down should
a fire occur. NRC's fire (4) determines whether DOT applied incumbent
carriers to provide

protection regulations are intended to any of the increase in program
funding competing carriers with access to (1) prevent fires from starting;
(2) to rural air safety projects. GAO elements of their telephone networks,

rapidly detect, control, and extinguish summarized this report in testimony
such as equipment and facilities, to fires that do occur; and (3) protect a
before Congress; see: Essential Air enable those competing carriers to
nuclear power plant's structures,

systems, and components so that a fire for farmworkers in general or to
rural areas. Much of this effort has that is not promptly extinguished will

children who work in agriculture. focused on USDA's county- based not
prevent its safe shutdown.

GAO found that EPA regions have agencies: the Farm Service Agency, the
According to NRC's regulations, these

been inconsistent in setting goals for Natural Resources Conservation

activities are designed to provide the number of work inspections that
Service, and the agencies involved in reasonable assurances that any states
should conduct, in defining what rural development. GAO found that
deficiencies occurring in one activity constitutes a worker protection
USDA's progress in carrying out its will be backed up by another system
inspection, and in overseeing and

initiatives has been mixed. USDA has so there is no undue risk to public
monitoring the states' implementation

closed more than 1,000 of its 3,726 health and safety.

and enforcement of the standards. county offices and established collocated
service centers throughout RCED- 00- 40, Mar. 14, 2000 (34 pages). RCED- 00-
41, Feb. 1, 2000 (46 pages). the country. It has also set up personal
Pesticides: Improvements Needed to Pork Industry: Trade Barriers and
computers and a modern Ensure the Safety of Farmworkers and Other Factors
Limit Federal Programs' telecommunications network at most Their Children.
Potential to Increase Exports.

of its service centers. Despite these efforts, little has changed in how the
Two laws principally govern the safe By the end of 1998, pork producers had

three agencies serve their customers, use of pesticides: (1) the Federal
increased production by more than and many modernization and Insecticide,
Fungicide, and

700, 000 metric tons over the previous reengineering projects have
Rodenticide Act, which requires that year, resulting in a surplus of pork
encountered delays. The three major pesticides be approved by the products.
As a result, the prices for issues that have impeded USDA's Environmental
Protection Agency

hogs sold in the open market fell 36 progress are the (1) lack of a (EPA)
for specified uses, and (2) the percent- from an average of $54 per
comprehensive plan to guide the Federal Food, Drug, and Cosmetics
hundredweight in 1997 to an average

modernization effort, (2) lack of a Act, which regulates pesticide residues
of $35 per hundredweight. At the same management structure with the on
foods. In October 1998, the Natural time, the overall value of pork
accountability and the authority to Resources Defense Council and others
products fell from $13 billion in 1997 to resolve differences among the

petitioned EPA to identify children $9 billion in 1998. The Department of
agencies, and (3) need for change in living on and near farms as a major
Agriculture (USDA) launched several

the existing organizational structure. identifiable subgroup for the
purposes programs to help pork producers, of the Food Quality Protection
Act. especially those with small operations.

RCED- 00- 44, Jan. 27, 2000 (23 pages). EPA responded by funding several
These programs generally involved Beef and Lamb: Implications of studies to
assess the effects of farm some form of direct federal payment to Labeling
by Country of Origin. children's exposure to pesticides. GAO producers. This
report discusses the found that comprehensive information

(1) extent to which other countries' All meat entering the United States on
the acute and chronic health effects trade practices and U. S. cargo must be
marked by country of origin. resulting from pesticide exposure does
preference laws are barriers to Once the meat is sliced, cut, ground, or not
exist, whether for farmworkers, exporting more pork products, (2)

processed, however, that identification their children, or the general
extent to which existing federal may be lost. Similarly, livestock
population. Recognizing that programs could be used to increase entering the
United States must be pesticides can cause various illnesses, pork exports,
and (3) potential for labeled by country of origin but EPA introduced the
Worker Protection increased pork exports to strengthen becomes part of the
domestic meat Standard, which is intended to reduce the U. S. agricultural
trade balance and supply when slaughtered. Several bills

farmworkers' exposure to pesticides. improve producer prices.

have been introduced over the years One of the standard's most important
that would have required imported protections, according to EPA, is the
RCED- 00- 43, Feb. 3, 2000 (21 pages).

meat and animals to be labeled by time interval between when pesticides USDA
Reorganization: Progress Mixed

country of origin all the way to the are applied and when workers may in
Modernizing the Delivery of consumer. Proposed legislation now enter treated
fields. However, EPA

Services. before Congress-- H. R. 1144-- calls for officials said that these
intervals are

labeling fresh and processed meat not designed for children younger than
Since 1995, the Department of from cattle, sheep, swine, and other 12 years
of age who do farm work.

Agriculture has been reorganizing and hoofed animals through to the ultimate
Moreover, EPA has few guarantees modernizing to improve the efficiency,

purchaser, which is generally the that the protections afforded by the
effectiveness, and economy of consumer. It also requires that meat standards
are actually being provided programs that support agriculture and from
imported animals slaughtered in

the United States be identified by the use the process, and (3) reactions to
waters between 1993 and 1998. Cruise

country or countries in which the the modifications and the process. ships
accounted for about four percent animal was born and raised. GAO of all
confirmed cases of illegal found that it is difficult to quantify the

RCED- 00- 47, Mar. 9, 2000 (33 pages). discharges by commercial
foreignflagged

cost of labeling meat by country of Acid Rain: Emissions Trends and ships
during that time. This origin or to put a value on the potential Effects in
the Eastern United States.

report answers the following benefits. Clearly, such labeling would
questions: What are the nature and the benefit consumers who want to know In
1990, Congress directed the

extent of reported illegal discharge where their food comes from and

Environmental Protection Agency cases for foreign- flagged cruise ships
might boost sales in some sectors of (EPA) to reduce sulfur dioxide and from
1993 through 1998? What efforts the U. S. meat industry. These benefits,
nitrogen oxide emissions from electric

have relevant federal agencies made to however, would come with costs. All
utility power plants. These two prevent, detect, investigate, and industry
sectors expect to incur emissions are major contributors to prosecute
illegal discharges from compliance costs that may be passed acid rain. GAO
found that in the first foreign- flagged cruise ships? What on to consumers,
and some level of four years of the Acid Rain Program steps have cruise ship
companies

federal enforcement resources would (1995 through 1998), sulfur dioxide
taken to prevent future illegal be needed. Also, a meat labeling law
emissions generally continued their discharges? What are the views of could
have adverse trade implications. long- term decline, while nitrogen relevant
federal agencies and thirdparty oxide levels remained stable. Sulfate
interest groups on the steps that

RCED- 00- 45, Apr. 17, 2000 (64 pages). deposition in the eastern states and
in cruise ship companies have taken, and Tongass National Forest: Process
Used

three environmentally sensitive areas- the what issues do they believe
require to Modify the Forest Plan.

Adirondack Mountains, the midAppalachian further attention? region, and the
southern The Tongass National Forest in

Blue Ridge area-- also declined, as did

RCED- 00- 52, Feb. 15, 2000 (48 pages). southeast Alaska is unlike any other
the level of sulfates in a sample of Fish and Wildlife Service: Agency
national forest. It is larger; its lakes in the Adirondack Mountains. Needs
to Inform Congress of Future administrative and geographic However, the
level of nitrates in these

Costs Associated With Land structures differ; and, although it is lakes
often rose, apparently because Acquisitions. subject to the same laws that
apply to the vegetation and soils surrounding other national forests, it
also had laws the lakes have lost some of their Since the first national
wildlife refuge written specifically for it. Like other capacity to use
nitrogen. These trends was established in 1903, the nation's national
forests, the Tongass is

underscore the significance of wildlife refuge system has grown to required
by law to develop a plan to nitrogen oxide emissions and the include 521
refuges on more than 90 manage its lands and resources and to

resulting nitrogen deposition, which million acres. Members of Congress

revise the plan at least every 15 years. may not have been fully appreciated
have raised concerns about whether On average, the revision process is when
the 1990 law was being drafted. the Fish and Wildlife Service estimated to
take four years and cost Because the law requires relatively

established refuges with migratory about $3 million. The Forest Service
little reduction in nitrogen oxide bird funds after Congress denied approved
the first Tongass forest plan emissions, the prospects are uncertain
appropriations from land and water in 1979 and in 1987 the agency began

for the recovery of already acidified funds for that purpose. GAO found that
to revise it. Nearly 10 years and more lakes and for preventing further of
the 23 refuges that the Service than $13 million later, the Forest
acidification. established between 1994 and 1998, Service approved a revised
forest plan only eight used federal funds--$ 4 to manage the Tongass' lands
and RCED- 00- 48, Feb. 28, 2000 (70 pages).

million from the land and water fund. resources. Interested and affected
Marine Pollution: Progress Made to No migratory bird funds were used.
parties later appealed the plan. In 1999,

Reduce Marine Pollution by Cruise The remaining 15 refuges were the
Department of Agriculture Ships, but Important Issues Remain. established
with land that was approved changes to the management donated, transferred,
or exchanged. direction of the 1997 plan. This report Cargo ships, tankers,
cruise ships, and The Service is not currently required to discusses (1) the
process used by the

other commercial vessels registered, inform Congress of refuges established

Department of Agriculture to modify or �flagged,� in foreign countries have
through donations or other means the management direction of the 1997

been involved in almost 2, 400 outside the appropriations process at plan
and decide the appeals on the confirmed cases of illegally the time they are
established. As a basis of the modified plan, (2) the discharging oil,
garbage, and other

result, congressional appropriations reasons the administration chose to
harmful substances into U. S. coastal committees may be unaware of these

refuges until the Service later asks for to EPA's report on water quality
and potentially significant for several land and water funds to expand them.

water quality management. This reasons. First, jet aircraft are the main The
Service also need not inform reports discusses (1) the reliability of source
of human emissions deposited Congress of estimated future the data in the
Inventory and whether directly into the upper atmosphere,

operations and maintenance costs the data are representative of water where
they may have a greater when it establishes refuges. When the quality
conditions nationwide and (2)

warming effect than if they were Service does establish a refuge, whether
the available data are

released at the earth's surface. however, it estimates the costs of
sufficient to allow state officials to Second, carbon dioxide-- the primary
future land acquisitions and of make key decisions on activities

aircraft emission-- is relatively well operations and maintenance for that
required by the act. GAO found that understood and is the main focus of
specific refuge. GAO believes that it the Water Quality Inventory does not
international concern. For example, it would be useful for the Service to
accurately portray water quality survives in the atmosphere for nearly
provide this information to Congress. conditions nationwide. Consequently,
100 years and contributes to global Although the Service's automated the
information in the Inventory warming, according to the priority- setting
system for land and

cannot be meaningfully compared Intergovernmental Panel on Climate water
projects creates a national nationwide. Change. The carbon dioxide emissions
priority list, the priorities are (1) based from worldwide aviation roughly
equal on criteria that are too subjective and

RCED- 00- 56, Feb. 15, 2000 (52 pages). those of some industrialized
countries.

(2) do not represent a true relative Forest Service Planning: Better Third,
carbon dioxide emissions, ranking of projects.

Integration of Broad- Scale combined with other gases and Assessments Into
Forest Plans Is particles emitted by jet aircraft, could

RCED- 00- 53, Feb. 22, 2000 (23 pages). Needed. have two to four times as
great an School Meal Programs: Few Outbreaks

effect on the atmosphere as carbon of Foodborne Illness Reported. Since
1976, the U. S. Department of dioxide alone. Fourth, the Agriculture's
(USDA) Forest Service Intergovernmental Panel recently More than 33 million
meals are served has been required by law to develop a

concluded that the rise in aviation daily to children through two federally

land and resource management plan emissions due to growing demand for
assisted meal programs run by the for each national forest or for groups

air travel would not be fully offset by Department of Agriculture (USDA): of
forests and to revise each plan at reductions in emissions achieved the
National School Lunch and School least once every 15 years. Because of
solely through technological Breakfast programs. This report concerns about
the potential costs, improvements. Experts GAO provides information on the
safety of timeliness, and effectiveness of the interviewed, as well as the
report of foods served in the two programs.

Forest Service's planning process and the Intergovernmental Panel, have

GAO discusses the extent (1) of broad- scale ecosystem- based cited several
options for better foodborne illness outbreaks related to assessments, GAO
was asked to

understanding and mitigating the meals served in schools; (2) to which

examine several planning efforts. impact of aviation as the industry USDA-
donated foods in schools were GAO, the Forest Service, and others grows.
These options include (1) removed, replaced, or disposed of; and have
concluded that assessments

continuing research to improve the (3) to which USDA has established should
have certain key elements or scientific understanding of aviation's
procurement policies and procedures characteristics to maximize their value
effects on the global atmosphere as a for ensuring the safety of foods it in
addressing issues that extend basis for guiding the development of donates
to the programs.

beyond the boundaries of national aircraft and engine technology to forests.
reduce them, (2) promoting more RCED- 00- 54, Mar. 15, 2000 (73 pages).
efficient air traffic operations through Water Quality: Key EPA and State

RCED- 00- 57, Feb. 18, 2000 (48 pages). the introduction of new technologies
Decisions Limited by Inconsistent and Aviation and the Environment: and
procedures, and (3) expanding the Incomplete Data. Aviation's Effects on the
Global

use of regulatory and economic Atmosphere Are Potentially Significant
measures to encourage reductions in The Clean Water Act requires states to
and Expected to Grow. emissions. submit reports on the condition of their
waters to the U. S. Environmental Aviation emissions are a potentially RCED-
00- 58, Mar. 2, 2000 (31 pages). Protection Agency (EPA), which then
significant and growing percentage of Port Infrastructure: Financing of
compiles the data into a report entitled greenhouse gases and other
emissions

Navigation Projects at Small and "National Water Quality Inventory." that
are thought to contribute to global Medium- Sized Ports. GAO examined
several issues relating warming. Aircraft emissions are

A sizable amount of the nation's from the relatively low price of recipients
in 1999. Until the mid- 1990s,

waterborne commerce is handled at gasoline to the lack of refueling most
recipients bought food using 444 small and medium- sized ports that stations
for alternative fuels to the coupons. Today, however, about 70 constitute
the majority of the U. S. port

higher cost to buy these vehicles- explain percent of all benefits are
provided system. These small and medium- sized why both mandated fleets and

electronically. The government saves public ports each have annual net

the general public are not inclined to time and money by providing benefits
revenues of less than $35 million but acquire alternative fuel vehicles and
electronically because there is no need collectively handled more than one
use alternative fuels. Any effort to to print, safeguard, distribute,
account billion tons of cargo in 1996. GAO

significantly expand the use of for, or destroy the coupons. This reviewed
the Corps of Engineers' alternative fuel vehicles will need to report
determines the (1) extent to financing of navigation projects at address
their current cost

which the states with electronic small and medium- sized public ports
disadvantages relative to vehicles that transfer systems are identifying and
and found that (1) for most small and use gasoline.

disqualifying recipients who engage in medium- sized public ports, states
play trafficking and (2) steps the Food and a major role in financing the
RCED- 00- 60, Mar. 1, 2000 (46 pages). Nutrition Service has taken to
nonfederal share of the Corps' Coast Guard Workforce Mix: Phased- In
encourage states to take these actions. navigation projects; (2) a small
number Conversion of Some Support Officer

Of the 29 states with statewide of navigation projects identified by the

Positions Would Produce Savings. electronic benefit systems, only four-
Florida, Corps as having initiated from 1986

Missouri, South Carolina, and through 1999 had been terminated or

Concerns have been raised in recent Texas-- independently and actively
suspended because the ports had years about the ratio of the Coast analyze
their electronic databases to failed to raise the nonfederal share; Guard's
military- to- civilian staff. Over identify suspect recipients.

and (3) certain types of federally the years, the Coast Guard has sponsored
innovative financing

employed more military personnel,

RCED- 00- 62, Feb. 24, 2000 (27 pages). mechanisms conceptually offer
relative to its full- time workforce, than Nuclear Security: Improvements
desirable financing alternatives to fund have other military services. This

Needed in DOE's Safeguards and navigation projects for some small and

report evaluates (1) how the Coast Security Oversight. medium- sized public
ports.

Guard's current workforce mix compares with the workforce mix of The
Department of Energy (DOE), RCED- 00- 59, Feb. 11, 2000 (38 pages). other
military services and how the which is in charge of the nation's

Energy Policy Act of 1992: Limited workforce mix has changed since nuclear
weapons program, owns Progress in Acquiring Alternative Fuel 1991, (2) how
many military several facilities that carry out Vehicles and Reaching Fuel
Goals.

commissioned officer positions in classified weapons research and
administrative and support functions

related activities. This report evaluates Congress passed the Energy Policy
Act offer opportunities for conversion to DOE's safeguards and security in
1992 to encourage the use of civilian positions, and (3) what the oversight
at the Los Alamos National alternative fuels, such as ethanol, advantages
and disadvantages are of Laboratory and the Lawrence

propane, and electricity, in cars and converting those military positions to
Livermore National Laboratory. GAO

light trucks. GAO found that since civilian positions. GAO found that the
discusses (1) the monitoring and 1992, some, albeit limited, progress has
Coast Guard employs proportionately

tracking of findings resulting from been made in acquiring alternative fuel
more military personnel in its full- time DOE's oversight activities; (2)
the vehicles and reducing the workforce than the military services
correction, validation, and closing of consumption of petroleum fuels in and
that the mix has remained findings resulting from such activities;
transportation. However, the act's goal essentially unchanged since fiscal
year and (3) the consistency of various of replacing at least 10 percent of
1991.

DOE assessments of the laboratories' petroleum fuels with alternative fuels
safeguards and security programs. in 2000 and 30 percent in 2010 will not
RCED- 00- 61, Mar. 7, 2000 (18 pages). be achieved under current economic

Food Stamp Program: Better Use of RCED- 00- 64, Apr. 12, 2000 (64 pages).
conditions. The act's goals for fuel Electronic Data Could Result in Low-
Level Radioactive Wastes: replacement are not being met Disqualifying More
Recipients Who Department of Energy Has principally because alternative fuel
Traffic Benefits. Opportunities to Reduce Disposal vehicles have significant
economic Costs.

disadvantages compared to The U. S. Department of Agriculture conventional
gasoline vehicles. provided about $16 billion in food As the Cold War drew
to a close, the Fundamental economic impediments- stamp benefits to about 18
million Department of Energy (DOE) shifted

its focus from producing nuclear world, the Centers for Disease Control

Accountability Needed Over U. S. weapons to cleaning up the and Prevention
estimate that as many Assistance to Micronesia and the contaminated
facilities where it had as 76 million cases of illness and as Marshall
Islands. produced them. During the 1990s, DOE many as 5, 000 deaths result
from spent hundreds of millions of dollars

foodborne diseases each year. The Since the implementation of the to treat,
store, and dispose of challenge of ensuring the safety of the Compact of
Free Association in 1986, radioactive wastes at more than 50 of food supply
is becoming even more the United States has provided more its nuclear
facilities around the

difficult as Americans eat more foods than $2. 6 billion in financial and
other country. Some of these wastes,

imported from abroad. Such imports assistance, of which more than $1. 5

including spent fuel and liquid wastes have more than doubled in the last
billion was provided to the Federated from chemically processing spent fuel,
seven years. This report examines the

States of Micronesia and more than are highly radioactive. By volume, Food
and Drug Administration's (FDA) $1.1 billion was provided to the however,
most of DOE's radioactive

use of faster technologies-- known as Republic of the Marshall Islands

wastes are classified as "low- level rapid tests-- to screen and identify
during fiscal years 1987 through 1999. wastes," that is, wastes contaminated
potentially unsafe imported foods,

The Interior Department provided with relatively small amounts of
particularly at ports of entry, before most of the assistance through
radioactivity. Some low- level wastes they make it to grocery store shelves.

quarterly payments to the Islands' also contain components, such as lead,
Rapid tests can generally be completed bank accounts to be used for such
that are hazardous in their own right; in a day or two, offering a faster,
purposes as capital construction these wastes are called "mixed cheaper, and
more convenient projects, energy production, and wastes." DOE generates
these lowlevel alternative-- without sacrificing communications
capabilities. Before and mixed wastes as by- products

reliability-- to conventional laboratory the Compact, the Untied States of
its research and nuclear weapons

tests that can take considerably longer provided about $250 million in
missions. Cleanup activities at to identify disease- causing pathogens
assistance to what is now the Republic contaminated facilities also produce
in foods. This report describes (1) the of the Marshall Islands for the
effects

low- level wastes in the form of rapid tests used to screen foods for of the
U. S. nuclear weapons testing contaminated soils, debris from pathogens,
such as bacteria, parasites,

program that had taken place there dismantled buildings, and other

and viruses; (2) FDA's use of these during the 1940s and 1950s. GAO found
materials. Many of these wastes can be tests, particularly at ports of
entry; and

inaccuracies and inconsistencies in the disposed of on- site in designated
(3) the factors that may limit FDA's data being used by Interior to
facilities. However, during the next greater use of rapid tests for
supervise and monitor federal several decades, DOE expects to foodborne
pathogens. assistance programs. permanently dispose of about 2. 1

million cubic meters of low- level and

RCED- 00- 66, Mar. 6, 2000 (40 pages).

RCED- 00- 68, Jan. 31, 2000 (12 pages). mixed wastes at six locations where
it Food Assistance: Financial Telecommunications: Update on StateLevel
operates disposal facilities. This

Information on WIC Nutrition Services Cramming Complaints and volume of
waste would fill an area the and Administrative Costs. Enforcement Actions.
size of a football field stacked to nearly one and a half times the height
of the

The Special Supplemental Nutrition Cramming is the inclusion of Empire Stare
Building. This report Program for Women, Infants and unauthorized,
misleading, or deceptive

reviews (1) the factors that influence Children (WIC) provides supplemental
charges in consumers' telephone bills. DOE's decisions about the treatment,

foods, nutrition services, and health Phone companies can cram consumers
storage, and disposal of low- level and

care referrals to lower- income by adding unauthorized charges for mixed
wastes and (2) DOE's costs to pregnant, breastfeeding, and telephone
services, such as call treat, store, and dispose of these

postpartum women; infants; and messaging. Cramming can also involve

wastes and the cost- effectiveness of children up to age 5. To help Congress
third- party vendors who offer products

DOE's disposal decisions. better understand the costs associated and
services that are unrelated to with the program, GAO reviewed telephone
services, such as live or RCED- 00- 65, Feb. 25, 2000 (13 pages). various
cost aspects of WIC's nutrition recorded information on the stock

Food Safety: FDA's Use of Faster Tests services and administration. This is
the

market, sports, or products; chat lines to Assess the Safety of Imported

first in a series of reports on this and dating services; and Internet Web
Foods. subject.

page design. The Federal Communications Commission (FCC) Although the U. S.
food supply is RCED- 00- 67, May 31, 2000 (79 pages). and the Federal Trade
Commission reportedly among the safest in the Foreign Relations: Better
(FTC) reported that cramming

complaints declined during the first Management Problems That Plague
identified 538 such requirements, 361 nine months of 1999 compared with the
Concessions Program. of which have a statutory deadline. the same period
during the previous

The amendments also set deadlines for year. The situation at the state
level, Concessioners play a significant role in states and local air
pollution control however, was mixed: 22 states and the

providing services to millions of agencies to respond to the rules District
of Columbia reported declines visitors to the nation's national parks
promulgated by EPA. This report (1) in cramming complaints, 15 states

each year. However, GAO previously provides information on the status of
reported increases, and 11 reported no reported that the condition of
lodging EPA's implementation of the changes. The states are continuing
facilities varies from park to park. This requirements established by the
1990 their efforts to combat this abuse. For report discusses the factors
affecting

amendments and (2) obtains views example, by the end of 1998, most the
condition of lodging facilities in the from state governments, local states
had made information available national park system and the options
programs, industries that are regulated to consumers on ways to prevent
available to address them. After under the act, and environmental cramming
and had established considering many site- specific factors

advocacy groups on issues that have administrative procedures for that could
affect the condition of either helped or hindered the resolving complaints
about telephone lodging facilities-- such as whether the implementation of
the 1990 billing. The states were also taking facilities were used year-
round or just amendments. GAO summarized this additional enforcement actions
against

seasonally, whether the facilities were report in testimony before Congress;
crammers. Between 1996 and 1998, 16 owned by the government or by the see:
Air Pollution: Implementation of states completed 25 enforcement
concessioner, and whether the the Clean Air Act Amendments of 1990, actions
against companies and

facilities were designated as historic by David C. Wood, Associate Director
individuals involving in cramming, structures-- GAO found that the most

for Environmental Protection Issues, resulting in more than $3. 5 million in

significant factor was the Park before the Subcommittee on Clean Air,
restitution and fines. Service's overall approach to managing Wetlands,
Private Property, and the program. Specifically, the Park Nuclear Safety,
Senate Committee on

RCED- 00- 69, Apr. 6, 2000 (51 pages). Service's management problems center
Environment and Public Works. Fishery Management: Problems on three areas:
(1) inadequate GAO/ T- RCED- 00- 183, May 17 (13 Remain With National Marine
qualifications and training of the pages). Fisheries Service's
Implementation of agency's concessions specialists and

the Magnuson- Stevens Act. concessions contracting staff, (2) the

RCED- 00- 73, June 22, 2000 (86 agency's out- of- date practices in pages).
BLM and the Forest Service: Ensuring a healthy supply of fish and handling
its contracting workloads and Land Exchanges Need to Reflect other marine
species in the coastal

chronic backlog of expired contracts, Appropriate Value and Serve the waters
is the responsibility of the and (3) a lack of accountability within Public
Interest. Department of Commerce's National

the concessions program. Marine Fisheries Service (NMFS) and

The Bureau of Land Management eight regional fishery management RCED- 00-
72, Apr. 17, 2000 (58 pages). (BLM) and the Forest Service have councils.
Measures to manage fish and Air Pollution: Status of long used land
exchanges, in which marine species are usually developed

Implementation and Issues of the property owned by the federal

by the councils, reviewed by NMFS, Clean Air Act Amendments of 1990.
government is traded for land owned and approved by the Secretary of by
corporations, individuals, or state Commerce. This report assesses

The Clean Air Act, last reauthorized or local governments, as a way to NMFS'
compliance with three and amended by the Congress in 1990,

acquire nonfederal land and dispose of provisions of the Magnuson- Stevens
provides for several related programs federal land. GAO found that the
Fishery Conservation and designed to protect health and control agencies
have given more than fair Management Act. GAO found that air pollution. The
Clean Air Act

market value for nonfederal land they NMFS appears to be using the best

Amendments of 1990 established new acquired and less than fair market
available scientific information to programs and made major changes in value
for federal land they conveyed

determine the condition and the the ways that air pollution is because the
appraisals use to estimate abundance of fish and other marine controlled.
The amendments require the lands' values did not always meet species, but
improvements could be the Environmental Protection Agency federal standards.
Current law requires made.

(EPA) to take several steps and specify BLM to deposit sales proceeds into
the

a deadline for many of them. Most of Treasury and use appropriations to
RCED- 00- 70, Mar. 31, 2000 (78 pages). these requirements are found in the
acquire nonfederal land. BLM sold Park Service: Need to Address amendments'
first six titles; EPA has federal land, deposited the sales

proceeds into interest- bearing escrow impractical to monitor the
requirement efforts to achievement of the goals and accounts, and used this
money to to reduce engine noise at takeoff.

has not adequately measured its acquire nonfederal land. In using these
Local citizens' groups do not consider progress in achieving the goals. The
funds and the interest earned on them the existing noise abatement

screening procedures of the countries to buy land, BLM augmented its

procedures and penalties effective and GAO visited-- Belgium, Canada,
France,

appropriations. BLM also did not say that MWAA is not using available the
Netherlands, and the United comply with its sale authority when it
technologies to determine which

Kingdom-- are similar to U. S. sold the land. None of the funds in airlines
violate noise abatement

procedures, e. g., metal detectors at escrow accounts were tracked in
procedures and laws. The MWAA is 10 checkpoints. Some aspects differ. BLM's
financial management system.

years old and can only supply limited Notably, turnover is less, at about 50
Although both agencies have information on aircraft noise. percent a year,
in the other countries; strengthened their management

wages are higher; and performance oversight policies regarding land RCED-
00- 75, June 28, 2000 (45 may be better. exchanges, BLM has not addressed
the

pages). Aviation Security: LongStanding unauthorized selling and buying of
Problems Impair Airport RCED- 00- 76, Mar. 2, 2000 (39 pages). land under
its exchange program or Screeners' Performance. Federal Land Management:
Land the financial management of these

Acquisition Issues Related to Baca funds. Both agencies want to retain The
trend in terrorism against U. S. Ranch Appraisal. land exchanges as a way to
acquire targets, according to the Federal land, but cash- based transactions
Bureau of Investigation, is toward The privately owned Baca Ranch would be
simpler and less costly.

large- scale incidents for maximum covers nearly 95,000 acres in northern
Neither agency wants Congress to destruction, terror, and media impact- New
Mexico. The Forest Service wants discontinue their land exchange such as the
1995 terrorist plot to blow to buy the ranch because it contains a programs.

up 12 U. S. airliners in one day, mainly diversity of natural features and
is in the Pacific region. Among the most almost completely surrounded by the

RCED- 00- 74, June 29, 2000 (33 important safeguards in the United Santa Fe
National Forest. The ranch

pages). Reagan National Airport: States and other countries against

owners had the property appraised in Limited Opportunities to Improve such
attacks are airport checkpoints

September 1998 by certified appraisers Airlines' Compliance with Noise where
passengers and carry- on items who concluded that the land's fair Abatement
Procedures. are screened for dangerous items, such market value was $101
million-- or as guns and explosives. However, U. S. $1,061 per acre. This
report discusses Aircraft noise at Reagan National screeners, generally
contractor the extent to which the value Airport is limited by (1)
restricting employees hired by air carriers, have

established by the owner's appraisal flights between 10 p. m. and 7 a. m.;
(2) historically had difficulty in detecting was consistent with the
comparable imposing certain flight paths along the dangerous items. Long-
standing property sales data presented in the Potomac River; (3) requiring
pilots to problems reduce screeners' accuracy, appraisal and in the
Services' market reduce engine power on takeoff; (4)

most notably (1) the rapid turnover of study and other key factors that
barring nonstop flights within 1,250 screener personnel-- often above 100
influenced the appraisal's final statute miles from Reagan National percent
a year at large airports and, in outcome. GAO concludes that Airport; and
(5) restricting the number a recent case, more than 400 percent a although
the owner's appraisal of the

of flights to 60 per hour. This last is year-- leaving few experienced

Baca Ranch's value complied with known as the high density or slot rule.
screeners to staff checkpoints and (2) federal appraisal standards, the
Airlines have generally met local human factors, such as the effect of
appraised value is higher than requirements, but shortcomings in the

repetitive tasks, that have long supported solely by sales of Federal
Aviation Administration (FAA) affected screeners' hiring, training, and
comparable properties presented in and the Metropolitan Washington working
environment. A key factor in the appraisal and in the Service's Airports
Authority (MWAA) turnover is the low wages that

market study and reflects a premium. monitoring procedures raise doubts

screeners receive. Often they are paid GAO summarized this report in about
the actual level of compliance. at or close to minimum wage and can

testimony before Congress; see: FAA officials admit that they generally earn
more at airport fast- food Federal Land Management: Baca focus on keeping
the flights away from restaurants. Although FAA has Ranch Appraisal Land
Acquisition federally protected areas and not on established performance
improvement Issues, by Barry T. Hill, Associate local neighborhoods. FAA
also does goals for screeners and begun efforts

Director, Energy, Resources, and not regularly monitor compliance with to
improve screener performance, it Science Issues, before the the high-
density rule and says that it is has not completed a plan to tie those
Subcommittee on Forests and Public

Lands Management, Senate Committee in U. S. waters between 1995 and 2015.
(3) develop vehicles that can achieve

on Energy and Natural Resources. The oldest and largest vessels would up to
three times the fuel efficiency of GAO/ T- RCED- 00- 105, Mar. 10 (eight
generally be phased out first. The total comparable 1994 family sedans-- or
pages).

number of U. S.- built vessels that were about 80 miles per gallon-- by
2004. subject to the act's requirements is Overall, GAO found that the

RCED- 00- 77, Apr. 28, 2000 (41 pages). unknown. The Coast Guard's records
partnership is making progress toward

Managing for Results: EPA Faces do not indicate how many single- hull its
goals, but obstacles remain. GAO Challenges in Developing ResultsOriented
vessels had phase- out dates before estimates that federal research in
Performance Goals and October 1999 and had been removed

support of the partnership totaled Measures.

from service. After 2015, however, only about $1. 24 billion from fiscal
year double- hull vessels may be used. 1995-- the first year in which the
For more than a decade, internal and

Double- hull vessels are considered to program was funded-- through fiscal
external studies have called for the

be environmentally safer because their year 1999, averaging about $250

Environmental Protection Agency inner hull helps protect against oil

million per year. The federal agencies (EPA) to "manage for environmental

spills if the outer hull is punctured. As and industry partners supporting
the

results" as a way to improve and better of October 1999, 144 U. S.- built
singlehull

partnership are jointly developing account for its performance. The vessels
larger than 5, 000 gross

technologies to improve fuel efficiency Government Performance and Results
tons were still certified to carry oil.

and manufacturing processes in the Act of 1993 requires EPA and other The U.
S. Coast Guard is responsible automobile industry. Automobile federal
agencies to prepare

for ensuring that these vessels do not manufactures participating in the
performance plans containing annual carry oil after their specific phase-
out partnership reported that their overall performance goals and measures
to deadline has passed. This report research and development primarily help
move them toward managing for answers the following questions: How focuses
on fulfilling consumer results. These performance goals and has the Coast
Guard implemented the

preferences and complying with measures are used to assess an act's phase-
out requirements for U. S. built government regulations, while their
agency's progress toward achieving the single- hull vessels larger than
research done under the partnership is

results expected from its major 5,000 gross tons? To what extent have more
narrowly focused on developing functions. This report (1) determines

owners received extensions or waivers fuel- efficient vehicles and improving
the extent to which EPA's fiscal year that extend the phase- out deadlines
for manufacturing processes.

2000 performance goals and measures their single- hull vessels? To what

focus on end outcomes, intermediate extent are owners replacing or plan to
RCED- 00- 83, Apr. 7, 2000 (32 pages). outcomes, or outputs; (2) identifies
replace or convert their single- hull Natural Resources Conservation any
challenges the agency faces in vessels, and what effect do their plans

Service: Additional Actions Needed to developing additional performance have
on the ability to provide enough Strengthen Program and Financial goals and
measures that focus on end

oil- shipping capacity in the future? Accountability. outcomes; and (3)
describes the initiatives the agency is taking to RCED- 00- 81, Mar. 30,
2000 (50 pages).

The U. S. Department of Agriculture's address any identified challenges.

Cooperative Research: Results of U. S. Industry Natural Resources
Conservation

Partnership to Develop a New Service (NRCS) is the lead agency RCED- 00- 80,
Apr. 28, 2000 (26 pages). Generation of Vehicles. responsible for conserving
and Maritime Industry: As U. S. Single- Hull protecting natural resources on
private Oil Vessels Are Eliminated, Few In light of growing competition from
lands, which constitute about 75 Double- Hull Vessels May Replace
international car companies, the

percent of all acreage in the Them. important of automotive jobs to the

contiguous United States. NRCS' $1 U. S. economy, and other policy

billion budget funds various technical Ships and barges are a major link in

concerns, the President announced a and financial assistance programs to the
country's oil transportation partnership between the federal help farmers,
ranchers, other

network, both for transporting crude government and three domestic car
landowners, and communities oil to U. S. refineries and for

companies-- Ford, General Motors, and conserve and protect soil, water, and

transporting refined oil products to Chrysler-- in 1993. The goals of the
related resources. NRCS has nearly market. The Oil Pollution Act of 1990

partnership were to (1) significantly 11,000 employees who work with

mandated extensive changes to make improve U. S. competitiveness in
individuals and communities to these shipments environmentally safer.
manufacturing, (2) apply commercially develop conservation plans and apply
One of these changes was to phase out

viable innovations from ongoing conservation or resource management all oil
shipments in single- hull vessels

research to conventional vehicles, and practices on the land. The agency has

not been successful in gathering and this property, (3) measure progress in
Housing Administration issues raised analyzing information from these

acquiring lands for the restoration, or during the late 1980s, and (2) four
county offices to provide a (4) increase the likelihood that the

other titles in the act that address comprehensive picture of its activities
lands acquired are those that are most

other changes in HUD's management and accomplishments. As a result, needed.
This information is an of federally assisted housing. Congress, NRCS staff,
and others have important part of the status reports questioned the agency's
accountability sent to Congress and Florida, which

RCED- 00- 96, Apr. 28, 2000 (45 pages). for how it spends its funds and what
it are jointly funding the restoration Nuclear Waste Cleanup: DOE's has
accomplished. In 1988, the head of effort. The Interior Department Paducah
Plan Faces Uncertainties and NRCC called for a new agencywide

developed a cost- sharing policy under Excludes Costly Cleanup Activities.
effort to improve accountability by which Florida is to match the federal
providing better information and

funds dollar for dollar. Interior has In 1988, radioactive contamination was

resources and analyses on how the approved four grants, but it waived the

found in the drinking wells of homes agency uses its resources and what it
matching requirements or accepted near the government's uranium achieves
with its funds. This report (1) lands in place of money for three of the
enrichment plant in Paducah, describes the agency's new approach grants.
Florida had already acquired or Kentucky. In response, the Department and
the status of its implementation was in the process of acquiring the of
Energy (DOE) connected local and (2) assesses the extent to which lands that
it used for matching residences to municipal water supplies the approach
will improve

purposes. Had Interior consistently and began a cleanup program to
accountability.

applied its cost- sharing policy, GAO identify and remove contamination in
estimates that an additional $77

the groundwater, surface water, and RCED- 00- 84, Apr. 5, 2000 (72 pages).
million would have been available to soils located within and outside the
South Florida Ecosystem Restoration: buy land. GAO summarized this report
plant's boundaries. Sources of the A Land Acquisition Plan Would Help in
testimony before Congress; see: hazardous chemical and radioactive Identify
Lands That Need to Be South Florida Ecosystem Restoration:

contamination included spills, leaks Acquired.

A Land Acquisition Plan Is Needed to from contaminated buildings, buried
Supplement the Strategic Plan Being waste, scrap yards, and waste lagoons.
The Florida Ecosystem Restoration

Developed, by Jim Wells, Director of From 1988 through 1999, DOE spent
Initiative is a complex, long- term effort Energy, Resources, and Science
Issues,

about $388 million on these cleanup to restore the ecosystem of South before
the Subcommittee on Interior efforts. GAO found that the Florida, including
the Everglades. The

and Related Agencies, House Department's plan for addressing the Initiative
involves federal, state, and

Committee on Appropriations. GAO/ TRCED- contamination at Paducah focuses on
local governments; tribal groups; and 00- 137, Apr. 5 (eight pages). six
major cleanup categories. Four of private interests. The South Florida these
address the physical Ecosystem Task Force was created in RCED- 00- 91, Mar.
27, 2000 (10 pages).

contamination at the site: 1993 to coordinate ongoing federal HUD Reform
Act: Information on the

groundwater; surface water (for restoration activities. Although land
Department's Response to the Act's example, in ditches and creeks); soils;
acquisition is critical to the success of Requirements.

and buried waste. Two other major the restoration effort, this ecosystem is
categories of cleanup work include so large that not all of the lands within
In the late 1980s, management treating and disposing of the it can be bought
and preserved. A

problems at the Department of equivalent of about 52, 000 barrels of recent
GAO report concluded that a Housing and Urban Development waste now stored
on site and strategic plan outlining the steps (HUD) led to the enactment of
the decontaminating and removing the involved in restoring the ecosystem HUD
Reform Act of 1989. The act

two unused, contaminated uranium would increase the Initiative's chance
required HUD to institutionalize process building. DOE faces many of
success. (See GAO/ RCED- 99- 121, policies and procedures to help ensure
challenges to completing its cleanup as Apr. 1999.) Similarly, a land
acquisition that past abuses would not be planned. Uncertainties about the
plan that clearly explains the Task repeated. For example, title I of the
act

extent, source, and nature of Force's needs and priorities to federal
directs HUD to be transparent in its contamination yet to be cleaned up and
state agencies would be valuable granting of competitive funds through could
affect the cleanup plan; the in coordinating land acquisition notices in the
Federal Register. This outcome of such uncertainties could efforts. Without
a plan, the Task Force report discusses HUD's actions in

increase the cleanup costs. DOE also cannot (1) determine how much response
to (1) title 1, which is faces several technical risks, including property
will be needed to achieve its principally concerned with addressing the
planned use of technologies that goals, (2) estimate the full cost to buy
the ethics, management, and Federal are unproven or perhaps not well

suited to the site's conditions. Also permanent shutdown of the highestrisk

major issues that the initiative has underpinning the plan are assumptions

Soviet- designed reactors. Despite raised about how best to address

that annual federal funding will rise to the favorable views of recipients
of airport noise. an average of $124 million through

safety assistance from the Department 2010. If the expected increase in of
Energy and the Nuclear Regulatory RCED- 00- 106, Apr. 28, 2000 (33 funding
does not occur, the project Commission, some U. S. safety pages). Nuclear
Waste: DOE's could take longer to complete. Even program officials have
concerns about

Advanced Mixed Waste Treatment when the planned cleanup has been the
management of both agencies' Project-- Uncertainties May Affect carried out,
billions of dollars and

programs. Performance, Schedule, and Price. many years will be needed to
address areas at the Paducah site that are not RCED- 00- 98, Apr. 28, 2000
(102

The Department of Energy (DOE) has in the cleanup plan. These areas

pages). Aviation and the Environment: produced nuclear material for atomic
include (1) large amounts of waste and FAA's Role in Major Airport Noise
bombs for more than 50 years. As a scrap metals, (2) various unused
Programs.

result, huge quantities of radiological buildings and structures, (3)
thousands and hazardous waste now contaminate of tons of depleted uranium,
and (4)

Since the introduction of turbojet the facilities that produced this the
buildings and equipment that are

aircraft in the late 1950s for material. DOE spends more than $5 now being
used in the enrichment commercial passenger service, airport billion each
year to clean up or ensure process but that will have to be noise has
affected many surrounding proper storage of these wastes. DOE's cleaned up
when the plant closes.

communities and has become a Idaho National Engineering and constraint to
airport development. Environmental Laboratory has a large RCED- 00- 97, Apr.
25, 2000 (87 pages). Airport noise is produced primarily concentration of
"mixed" waste-- that

Nuclear Safety: Concerns With the when planes take off and land, but is, a
combination of radiological Continuing Operation of SovietDesigned

engine maintenance and the taxiing of contaminants, such as plutonium, and
Nuclear Power Reactors. aircraft on runways also contribute to hazardous but
nonradiological the problem. New technology has been contaminants, such as
degreasing The United States and 20 other nations making aircraft quieter,
and since 1969 agents or acids. This mixed waste, and international
organizations have the Federal Aviation Administration

which takes such forms as contributed about $1. 9 billion to (FAA) has been
limiting the noise that contaminated paper, cloth, and other improve the
safety of Soviet- designed aircraft are allowed to make. As a

materials (some of it saturated with nuclear reactors; the United States
result, FAA estimates that the liquids), is now stored in metal drums
contributed about $545 million of that population exposed to very high noise
and wooden boxes in a facility amount. Nuclear safety experts from levels
will have declined from 7 million

intended for temporary storage. DOE 32 countries and international in 1975
to an estimated 600,000 in 2000. has committed to having this waste
organizations met in 1999 to assess the But in spite of the recent
transition to treated and moved out of Idaho and to impact of nuclear safety
assistance quieter aircraft, the expected growth in a disposal facility no
later than the end provided to countries operating Sovietdesigned

air traffic may yield little or no net of 2018. To treat the mixed waste and
reactors. These experts reduction in overall noise levels

prepare it for disposal, DOE awarded a concluded that progress has been
generated by individual airports. fixed- price contract to BNFL, Inc., made
during the last decade in Furthermore, concerns about airportrelated
effective January 1997. Because of the strengthening nuclear regulatory
noise may impede the potential cost of this project and

authorities, improving the operation of development of any needed additional
concerns about DOE's management of nuclear reactors, and establishing
capacity in the national network of earlier large cleanup projects, this
safety improvement programs. airports. This report determines (1) the report
assesses the projects' status and Nevertheless, they believed that type of
projects that are eligible for

potential uncertainties with regard to further improvements were needed,
federally authorized funding to reduce

(1) successfully treating the waste, (2) particularly to strengthen the
airport noise, (2) the differences in the

meeting the project's deadlines, and independence and effectiveness of
current methods for measuring the (3) minimizing increases in the nuclear
regulatory authorities.

impact of airport noise, (3) FAA's contract price. Moreover, the extent of
safety current noise standards for civil improvements varies from country to
subsonic turbojets and the reasons

RCED- 00- 107, June 30, 2000 (36 country. Although safety some of those
aircraft are not required pages). Hydropower Relicensing: improvements have
been made, a to comply with these or earlier Federal Costs Are Not Being
major goal of the international donor

standards, and (4) the status of FAA's Recovered.

community has yet to be realized-- the land use planning initiative and the

About 10 percent of all electricity tests required and the regions did not

The Safer Skies initiative addresses the produced in the United States is
ensure that they did so. Factors

safety problems that have contributed generated by federal and nonfederal
contributing to variations in regional to fatal accidents in the past. In
hydroelectric power (hydropower) enforcement programs include

conjunction with other safety projects. Almost half of the electricity
differences in philosophical approach programs, it can be expected to reduce
generated by hydropower is produced to enforcement, and differences in the
fatal accident rate and thus by federally owned and operated state laws and
enforcement

enhance the safety of the nation's air projects, which include dams,
authorities. Nearly all regional and

passengers. In commercial aviation, reservoirs, stream diversion state
enforcement officials interviewed the initiative addresses safety
structures, powerhouses containing said that differences in state laws and
problems that accounted for more turbines driven by falling water, and
enforcement authorities contribute to than three- quarters of the fatal
transmission lines. The Federal Power

the variations in enforcement accidents between 1998 and 1997.

Act authorizes the Federal Energy programs. Furthermore, incomplete Other
FAA initiatives are addressing Regulatory Commission (FERC) to and
inaccurate national enforcement additional safety problems, which issue
licenses to construct and operate data entered into EPA's national should
complement Safer Skies' nonfederally owned hydropower

databases hinders the Office of efforts to meet the goal of an 80- projects,
including those on federal

Enforcement and Compliance percent reduction in the fatal accident lands. In
this report, GAO assesses one Assurance's assessment of the rate for
commercial aviation. For issue-- the status of efforts to recover program
requirements. EPA has tried

general aviation, the target goal is a 20percent the costs incurred by
federal agencies

to achieve greater consistency by reduction in the fatal accident to
administer the hydropower providing comparative data on rate. So far, safety
improvement efforts program. In essence, for fiscal years

regional performance, improving by FAA and Safer Skies have focused 1995
through 1998, federal agencies regional- state communications, and

on reducing the causes of past reported a total of about $32 million in

developing regional audit protocols. accidents and incidents, which may
hydropower program- related not be entirely predictive of future
administrative costs. However, on the RCED- 00- 109, Apr. 25, 2000 (31 ones.
Studying growth and basis of its review, GAO estimated that pages). Federal
Research: DOE Is technological changes in the aviation for the 4 fiscal
years, about $12 million

Providing Independent Review of the industry can help anticipate and in
federal costs to administer the

Scientific Merit of Its Research. prevent safety problems that are likely

hydropower program either were not to arrive from the changes. Safer Skies
reported or might not be recovered Like the scientific community as a teams
have made the most progress in because of appeals by licensees.

whole, federal agencies normally selecting interventions to address subject
their research programs to a

safety problems when they have been RCED- 00- 108, June 1, 2000 (72 peer
review process. A GAO report last able to build on previous studies for
pages). Environmental Protection:

year on peer review procedures at 12 which widely supported More Consistency
Needed Among EPA

federal science agencies found that all recommendations already existed.
Regions in Approach to Enforcement. of them were using peer review to
However, the implementation of Safer assess research proposals. This report
Skies' interventions is not assured The environmental compliance is a
follow- up study to determine because the tracking system for enforcement
program relies heavily whether the Department of Energy

commercial aviation is not upon inspections by regional and state (DOE) had
implemented its "merit significantly detailed. Because most enforcement
staff to detect violations review" procedures that the agency interventions
are in the early and evaluate overall facility said that it had established.
GAO

implementation stages, little progress compliance. Variations exist among
determines (1) what procedures DOE has been made in evaluating their EPA's
regional offices in the steps they has established for performing merit
effectiveness. Only one of the teams

take to enforce environmental reviews and (2) whether DOE could has
developed a performance measure. compliance. For example, in fiscal document
that it has followed the GAO found three coordination year 1998, inspection
coverage for merit review procedures that it has problems that could
undermine the Clean Air Act- related programs was 27 established.

implementation and evaluation of percent in the Chicago region and 74 Safer
Skies' interventions: (1) percent in the Philadelphia region. RCED- 00- 111,
June 30, 2000 (101 Skepticism exists among participants That same year, the
EPA Inspector pages). Aviation Safety: Safer Skies as to whether FAA will
continue to General reported that in four of six Initiative Has Taken
Initial Steps to fund interventions. (2) If funding is states included in a
clean- air audit, Reduce Accident Rates by 2007.

limited, how will available resources inspectors did not always complete be
reprioritized? (3) Safer Skies, FAA,

and the Department of Transportation The Advanced Technology Program while
HUD encourages contractors to have not agreed on how they will (ATP), which
is run by the National

sell properties quickly, it does not measure progress in achieving the
Institute of Standards and Technology provide incentives for the contractors
accident reduction goal for

(NIST), was established to support to focus on properties that have been
commercial aviation. research that accelerates the in inventory for a long
period of time. development of high- risk technologies. GAO summarized this
report in

RCED- 00- 112, Apr. 28, 2000 (44 ATP is a competitive cost- sharing
testimony before Congress; see: pages). Single- Family Housing: program
that, since 1990, has funded Single- Family Housing: Stronger Stronger
Oversight of FHA Lenders

468 projects at a cost of about $1.5 Measures Needed to Encourage Better
Could Reduce HUD's Insurance Risk. billion in federal matching dollars.

Performance by Management and Program administrators must ensure Marketing
Contractors, by Stanley J. Every year, the Department of Housing

that they are not funding research that Czerwinski, Associate Director for
and Urban Development (HUD), would have been done in the absence

Housing and Community Development through the Federal Housing of the
program's financial support. Issues, before the Subcommittee on
Administration (FHA), insures billions

GAO reviewed the status of the Housing and Transportation, Senate of dollars
in home mortgage loans projects to determine whether ATP Committee on
Banking, Housing, and made by private lenders. During fiscal might be
funding research that was

Urban Affairs. GAO/ T- RCED- 00- 180, year 1999, FHA insured 1. 3 million

similar to research already being May 16 (12 pages). mortgages valued at
about $124 billion. carried out by the private sector. Recent cases of
mortgage fraud across

Among other things, GAO found that RCED- 00- 118, May 12, 2000 (117 the
country have raised concerns three completed ATP- funded projects

pages). Superfund: Extent to Which about HUD's oversight of these

had research goals similar to projects Most Reforms Have Improved the
lenders. This report provides

being funded in the private sector. Program Is Unknown. information on HUD's
oversight of lenders participating in FHA's

RCED- 00- 117, May 12, 2000 (43 The Environmental Protection

mortgage insurance programs for pages). Single- Family Housing: Agency's
(EPA) Superfund program single- family homes. Among other

Stronger Measures Needed to has been criticized for a number of things, GAO
found that 12 of 36 lenders Encourage Better Performance by problems,
including the pace and the had received 4 or more "poor" ratings Management
and Marketing

cost of cleaning up hazardous waste from HUD's homeownership centers
Contractors. sites, the agency's approach for for their last 15 preclosing
reviews. In holding waste contributors liable for addition, the
homeownership centers' The Department of Housing and Urban

cleaning up sites, and the overall monitoring of lenders does not
Development (HUD) introduced its

effectiveness of the program. In 1993, adequately focus on the lenders and

management and marketing contracts EPA began implementing a series of 62
loans that pose the greatest insurance nationwide last year as a way to
administrative reforms. GAO was risks to HUD. GAO summarized this

dispose of the inventory of singlefamily asked to review EPA's reforms to
report in testimony before Congress;

properties that HUD acquires determine their demonstrated results see:
Single- Family Housing: Stronger through foreclosures. The contractors

and evaluate the performance Oversight of FHA Lenders Could

are responsible for all management measures the agency uses to gauge Reduce
HUD's Insurance Risk, by and marketing activities, ranging from these
results and to identify legislative Stanley J. Czerwinski, Associate
inspecting the properties to ensure changes to the program that either the
Director for Housing and Community that they are presentable to listing and

agency or key stakeholders believe are Development Issues, before the

selling the properties. HUD has still necessary. Overall, EPA and Permanent
Subcommittee on experienced widespread problems stakeholders agree that the
Superfund Investigations, Senate Committee on with the management and
marketing

program has improved and the Governmental Affairs. GAO/ T- RCED00- contracts
since they started in April administrative reforms have 213, June 29 (nine
pages). 1999. Property maintenance and

collectively contributed to this security, which was a problem under
improvement.

RCED- 00- 114, Apr. 24, 2000 (39 HUD's previous property disposition

pages). Advanced Technology approach, remains a significant

RCED- 00- 120, June 14, 2000 (39 Program: Inherent Factors in Selection
problem. Also, older properties in

pages). Commercial Fisheries: Entry Process Could Limit Identification of
HUD's inventory have accumulated as

of Fishermen Limits Benefits of Similar Research. the contractors have
focused their Buyback Programs. sales efforts on the newly acquired,

more saleable properties. In addition,

This GAO report evaluates the impact for any difference? (2) Do retail found
that from 1989 through 1998,

of recently completed buyback gasoline prices gasoline prices in pipeline
accidents caused an average

programs in three diverse fisheries- New California rise faster than they
fall in of about 22 fatalities per year.

England groundfish, Bering Sea response to increases and decreases in

Fatalities from pipeline accidents are pollock, and Washington State salmon.
the wholesale prices of gasoline and, if relatively low when compared with
GAO looks at (1) the extent to which so, why? (3) What factors account for

those from accidents involving other the buyback programs have affected
differences in the retail prices of forms of transportation. Although
fishing capacity, (2) the potential ways gasoline between San Franciso and
these statistics underscore the relative the buyback programs can be made
Los Angeles?

safety of pipelines for transporting more effective, and (3) the National
natural gas and hazardous liquids, the Marine Fisheries Service's (NMFS)
RCED- 00- 126, June 9, 2000 (104 total number of major pipeline efforts to
evaluate the effectiveness of pages). Sugar Program: Supporting accidents
rose by about four percent buyback programs. GAO found that Sugar Prices Has
Increased Users' annually during this 10- year period. buyback programs in
New England the Costs While Benefiting Producers. The Office of Pipeline
Safety at the Bering Sea, and Washington state

Department of Transportation has initially removed from 10 to 24 percent
Administered by the U. S. Department implemented a risk management of their
respective fishing capacities.

of Agriculture, the sugar program demonstration program and has

Also, the effectiveness of buyback guarantees domestic cane sugar and
approved six demonstration projects, programs in reducing fishing capacity

beet sugar producers a minimum price which are ongoing. Since the depends
upon whether fishermen for sugar, which at times has been

implementation of the Accountable return to the fishery and also whether
about three times the world market Pipeline Safety and Partnership Act of
remaining fishermen have an incentive

price. The program supports domestic 1996, the Office has modified its to
invest in larger or better- equipped sugar prices by offering loans to sugar
inspection and enforcement approach. fishing vessels. Furthermore, NMFS
processors at a rate established by law. With respect to inspections, it has
has made limited efforts to evaluate This report summarizes GAO's findings

moved toward inspecting entire buyback programs, assessing only the on the
changing conditions in the U. S. pipelines rather than segments of fishing
capacity reductions in the New and world sweetener markets in recent
pipelines. The Office has also revised England groundfish buyback because
years. GAO estimates the U. S. sugar its enforcement of compliance with it
was required to do so. program's (1) costs to producers, (2) regulations by
reducing its use of fines benefits to domestic sugar and highfructose

and, instead, working with operators

RCED- 00- 121, Apr. 28, 2000 (27 corn syrup producers, and (3)

to identify and correct safety pages). Motor Fuels: California net effects
on the U. S. economy-- that problems. The Office's responsiveness Gasoline
Price Behavior. is, the difference between the costs to to recommendations
from the National

users and the benefits to producers Transportation Safety Board and to
Retail gasoline prices in the United that result from artificially high
statutory requirements designed to States have risen sharply since early

sweetener prices. improve pipeline safety has been 1999, mostly in response
to soaring

mixed. world crude oil prices. Moreover,

RCED- 00- 128, May 15, 2000 (61 during the second half of the 1990s,

pages). Pipeline Safety: The Office of RCED- 00- 133, June 5, 2000 (38
retail gasoline prices throughout the Pipeline Safety Is Changing How It
pages). Highway Infrastructure: United States have shown a high Oversees the
Pipeline Industry.

FHWA's Model for Estimating Highway degree of volatility and fairly frequent
Needs Is Generally Reasonable, spikes. Particularly in California, Pipelines
are safer to the public than Despite Limitations. where consumers already
generally other modes of freight transportation

pay higher average prices than they do for natural gas and hazardous liquids
Transportation systems play a vital elsewhere in the United States, the

because they are generally located role in the nation's economy by spikes
have raised questions about the underground. Nevertheless, the facilitating
the movement of people behavior of gasoline prices both within

volatile nature of these products and goods. The United States has made the
state and between California and means that pipeline accidents can have
significant investments in its the rest of the country. This report serious
consequences. For example, a

transportation infrastructure. The answers the following questions: (1) June
1999 pipeline rupture in Transportation Equity Act for the 21st To what
extent do retail gasoline Bellingham, Washington, spilled about Century
directed GAO to evaluate and prices spike more often and higher in 250, 000
gallons of gasoline into a

report to Congress on how the California than they do in the rest of creek,
killing three people and Department of Transportation (DOT) the country, and
what factors account damaging a number of buildings. GAO determines highway
investment

requirements using the Highway time-- have all contributed to these

completed in 2008-- more than $1 Economic Requirements System increases.
billion above original estimates and six (HERS). To estimate future
investment years behind schedule. GAO estimates requirements, DOT's Federal
Highway RCED- 00- 140, June 26, 2000 (33 the cost at closer to $4 billion
when Administration (FHWA) uses the HERS pages). Department of Energy:
research and development costs are

computer model. In this report, GAO National Security Controls Over factored
in. These cost increases and

describes (1) the methodology the Contractors Traveling to Foreign schedule
delays are due to poor model uses to generate its estimates of Countries
Need Strengthening. Lawrence Livermore management and the nation's highway
investment inadequate DOE oversight. The NIF requirements, (2) the strengths
and the

The Department of Energy (DOE) has project manager had little experience
limitations of the model, and (3) the established various national security
in directing large projects and had no

usefulness of the HERS estimates for controls for foreign travel to guard
control over separately funded deciding on federal investments in

against foreign intelligence interests' program components. Although he had
highway infrastructure. Among other obtaining information that would be been
briefed to the contrary, the things, GAO reports that (1) the detrimental to
U. S. security or laboratory's former laser director computer model
estimates investment business. In this report, GAO (1)

assured Congress that the project was requirements for the nation's highways

describes the types of foreignintelligence- adequately staffed and funded,
on by adding together the costs of gathering incidents that

schedule, and within cost. The absence highway improvements that the

have occurred during foreign travel by of independent reviews has enabled
model's benefit- cost analyses indicate contractor employees, (2) discusses

the costs and schedules to grow are warranted; (2) HERS has several DOE's
controls that apply to foreign undetected. DOE has said that funds strengths
that make it a unique and

travel by contractor employees, and from within DOE's existing nuclear
reasonable tool for estimating a

(3) identifies areas in which these weapons budget will be reallocated to
general level of national highway controls can be strengthened. GAO pay for
NIF overruns. Paying for cost investments, but that it also has some found
that during fiscal years 1995 overruns from within DOE program limitations
that affect the precision of through 1999, DOE counterintelligence
accounts-- Livermore, Los Alamos, and its results; and (3) HERS can be
useful officials and records identified over 75 Sandia Laboratories-- could
as a general guide for the investment incidents of attempted espionage by
significantly affect portions of these requirements of the nation's highways

foreign nationals against travelers laboratories' programs.

included in the model. from the four laboratories it reviewed.

In addition, DOE and its laboratories RCED- 00- 149, Apr. 28, 2000 (23 RCED-
00- 138, May 31, 2000 (54 have instituted several national pages). Mass
Transit: Implementation pages). Intercity Passenger Rail: security controls
over official foreign of FTA's New Starts Evaluation Process Amtrak Will
Continue to Have travel by laboratory employees. Also,

and FY 2001 Funding Proposals. Difficulty Controlling Its Costs and GAO
identified several areas where Meeting Capital Needs. existing controls over
foreign travel Since the early 1970s, the federal can be strengthened. For
example, government has provided a large share Since its inception in 1971,
the

some travelers may not be receiving of the nation's capital investment in
National Railroad Passenger the necessary preparation to recognize urban
mass transportation. Much of Corporation (Amtrak) has received and thwart
espionage efforts. the investment has come through the over $23 billion in
federal subsidies for Federal Transit Administration's (FTA) operating and
capital expenses. Over RCED- 00- 141, Aug. 8, 2000 (45 New Starts Program.
The the last 3 years, Amtrak has received pages). National Ignition
Facility: Transportation Equity Act for the 21st over $3. 6 billion that
could be used for

Management and Oversight Failures Century authorized billions of dollars
capital improvements, among other Caused Major Cost Overruns and

in guaranteed funding for New Starts things. This report responds to a
Schedule Delays. projects through fiscal year 2003. The request to review
Amtrak's costs and act requires GAO to report by April 30 capital investment
needs. GAO found The National Ignition Facility (NIF) is of each year on
FTA's processes and that Amtrak's operating costs have to produce the
intense pressures and procedures for evaluating, rating, and increased since
1995, and future temperatures needed to simulate recommending New Starts
projects for increases can be expected. In thermonuclear conditions in a

federal funding and on the particular, costs in three areas-- labor,
laboratory. The Department of Energy implementation of these processes and
interest on commercial debt, and (DOE) and Lawrence Livermore

procedures. payments to other railroads to access

National Laboratory now estimate that track and keep Amtrak's trains on NIF
will cost about $3. 3 billion and be

RCED- 00- 151, June 14, 2000 (23 the linear model. The Environmental

capacity and are under growing pages). National Fish Hatcheries:

Protection Agency (EPA) and the pressure to expand to accommodate Authority
Needed to Better Align Nuclear Regulatory Commission the rising demand for
domestic air Operations With Priorities.

(NRC) have sometimes differed over travel, which is projected to increase
how restrictive U. S. radiation by 3.6 percent annually through 2011. This
report is the second of two protection standards should be, This growing
demand has heightened reports that responded to a request for

particularly about the proposed concerns among some communities, information
to help evaluate the

disposal of high- level nuclear waste in environmental groups, and others
that appropriate role for the national fish a repository at Yucca Mountain
and the airport operations may increasingly hatcheries. The report addresses
(1) cleanup and decommissioning of threaten the environment. Officials
whether the activities carried out at

nuclear facilities. For example, EPA from all of the nation's busiest
airports

the national fish hatcheries are applies community drinking water report
that balancing their operations

consistent with their statutory limits for radioactive substances to with
their impact on the environment authorizations and (2) whether groundwater
at nuclear sites; some is more difficult than it was a decade changes in
existing laws would be limits are equivalent to fractions of a ago. This
report reviews key

appropriate to provide better direction millirem a year. NRC includes
environmental concerns and

to the Fish and Wildlife Service on groundwater and other potential
challenges associated with airports' which programs to emphasize and to
contamination sources under a less

current operations and future growth authorize the Service to make changes
restrictive limit of 25 millirem a year and the efforts of major airports
and in how it manages the hatcheries. In its for all means of exposure,
which

federal agencies to address these review, GAO found that the laws conforms
with internationally concerns. GAO cites noise, water and governing national
fish hatcheries recommended radiation protection

air issues as the leading environmental authorize and direct the hatcheries
to guidance. Although the National concerns and challenges for airports
engage in a wide variety of activities. Academy of Sciences has criticized
and finds that, although the federal These activities include establishing
EPA's approach, it recognizes that EPA

government has coordinated some and implementing programs for the has the
authority to set a separate efforts to address environmental protection and
conservation of fish, standard for Yucca Mountain. As for

issues associated with airport etc. Also, direction on which programs

nuclear cleanup and decommissioning operations and growth, challenges that
Congress wants the hatcheries to sites where both agencies have remain.
emphasize would allow the Service to jurisdiction, little progress has been
better align hatchery operations with made to finalize a memorandum of RCED-
00- 154, May 22, 2000 (36 the activities that the Congress

understanding between the two, and pages). Park Service: Agency Is Not
believes should be the Service's Congress may need to help resolve the
Meeting Its Structural Fire Safety highest priorities. agencies'
disagreement. Costs per site

Responsibilities. could be immense, and the tighter the

RCED- 00- 152, June 30, 2000 (63 restriction, the higher the cost of The
National Park Service's role as

pages). Radiation Standards: cleanup. GAO summarized this report

caretaker of many of the nation's Scientific Basis Inconclusive, and EPA

in testimony before Congress; see: natural, cultural, and historic and NRC
Disagreement Continues.

Radiation Standards: Scientific Basis treasurers has grown substantially
Inconclusive, and EPA and NRC

since the agency was created more U. S. regulatory standards to protect
Disagreement Continues, by Ms. Gary than 80 years ago. Today, the Park the
public from radiation lack a L. Jones, Associate Director for Service is the
steward for more than conclusively verified scientific basis. Energy,
Resources, and Science Issues,

30, 000 structures and more than 80 In the absence of conclusive data,
before the Subcommittee on Energy million artifacts. These structures
scientists have assumed that even the and Environment, House Committee

range from national icons, such as the smallest radiation exposure carries a

on Science. GAO/ T- RCED- 00- 252, July Statue of Liberty and Independence
risk. Some scientists say that this 18 (15 pages). Hall, to motels, cabins,
and visitors' "linear, no- threshold hypothesis" is too centers. In terms of
buildings alone,

conservative. The National Academy

RCED- 00- 153, Aug. 30, 2000 (100 the Park Service is the federal of
Sciences plans to conclude its study

pages). Aviation and the Environment: government's third largest landlord.
on the risks of low- level radiation in Airport Operations and Future Growth
Upwards of 270 million people visit 2001. The Department of Energy began
Present Environmental Challenges. these facilities each year. GAO found a
10- year research project on the

that fire safety efforts at national parks effects of low- level radiation
on human

Many of the nation's commercial are ineffective. The structural fire cells,
in part to help verify or disprove airports are operating at or near
activities at the six parks GAO visited--

Ford's Theater, Olympic National Park,

RCED- 00- 156, July 11, 2000 (43 has become the cable industry's Prince
William Forest Park,

pages). Food Safety: Improvements leading competitor. Until recently, DBS
Shenandoah National Park, SequoiaKings

Needed in Overseeing the Safety of firms were often unable to provide Canyon
National Park, and Dietary Supplements and "Functional local broadcast
networks, such as ABC Yosemite-- lacked many of the basic

Foods". and NBC, in their programming elements needed for an effective fire
packages in many parts of the country. safety effort. These gaps included
such To what extent do agencies' efforts and Since late 1999, however, DBS
basics as adequate fire training for federal laws ensure the (1) safety of
operators have been permitted to offer employees, adequate fire inspections,

functional foods and dietary local broadcast signals in many and-- for many
buildings-- adequate fire supplements and (2) the accuracy of markets. This
report provides detection or suppression systems. As a health- related
claims on product labels

information on (1) the extent to which result, park visitors, employees, and
in advertising? GAO found that the level of subscribership (or buildings,
and artifacts are vulnerable FDA's efforts and federal laws provide
penetration) of DBS has influenced to the threat of fire. These deficiencies
limited assurances of the safety of cable rates and (2) other factors that
occurred primarily because local park functional foods and dietary may
influence the level of cable rates. managers are not required to meet

supplements. Weaknesses in three minimum structural fire safety areas
increase the likelihood of such RCED- 00- 168, July 25, 2000 (50 standards
and because structural fire occurrences. First, potentially unsafe

pages). HUD Housing Portfolios: HUD activities have been a low priority

products can reach consumers for Has Strengthened Physical Inspections

within the agency. various reasons, such as the lack of but Needs to Resolve
Concerns About clearly defined safety standards for Their Reliability. RCED-
00- 155, May 31, 2000 (21 new ingredients in dietary pages). Air Pollution:
Emission supplements. Second, some products The Department of Housing and
Urban Sources Regulated by Multiple Clean

lack safety information on their labels, Development (HUD) has new, Air Act
Provisions.

such as warnings about drug electronically based physical interactions.
Third, FDA cannot inspection standards for public and Each year industrial
operations emit accurately assess whether a functional multifamily housing.
Although HUD's nearly 100 million tons of pollutants

food or dietary supplement is harming new standards do not differ

into the nation's air. These pollutants consumers' health because it does
not substantially from earlier ones, its

can make breathing difficult, form investigate most reports of health

procedures for administering the urban smog, impair visibility, and

problems potentially caused by these standards were substantially changed
cause cancer or other serious health products. FDA officials say a lack of
to include more specificity, such as a

effects. The Clean Air Act resources has precluded them from list of items
that inspectors must

Amendments of 1990 authorized a taking actions to correct these review and
definitions of what number of regulatory programs weaknesses. GAO found that
agencies' constitutes a deficiency for each item.

targeted at specific pollutants and/ or efforts and federal laws concerning
HUD staff check and analyze

specific sources of pollution. GAO was health- related claims on product
labels

inspectors' findings to score asked to provide information on and in
advertising provide limited properties' conditions on a scale of 0 examples
of emission sources subject assistance to consumers and do little to 100.
HUD believes that this system to regulation under more than one

to protect them against inaccurate or produces more objective assessments
program authorized by the act and misleading claims. and allows HUD to
target resources to information on the status of the properties that need
the most

Environmental Protection Agency's

RCED- 00- 164, July 18, 2000 (50 attention. In performing quality (EPA)
efforts to facilitate compliance pages). Telecommunications: The

assurance checks of property for such sources. Large industrial Effect of
Competition From Satellite inspections, HUD reviewers found that complexes
operated by the Providers on Cable Rates.

about 35 percent of the inspections petrochemical and refinery, chemical
done in 1999 and the early part of 2000 manufacturing, and electric power
For years, cable television companies

did not meet HUD's inspection industries are prime examples of faced little
competition in the market requirements. GAO found gaps or sources that are
regulated under for subscription video service. In 1994,

weaknesses in some quality assurance multiple programs of the act. In a new
generation of satellite service procedures. For instance, no addition, EPA
has embarked on a known as direct broadcast satellite

procedures ensure that reviews are number of initiatives to reduce the (DBS)
was introduced. DBS, which

done systematically or that problems regulatory workload of and facilitate
uses small satellite dishes to provide identified during reviews are quickly
compliance by such facilities. subscribers with television programs,

resolved. Public housing authorities

and multifamily housing industry testimony before Congress; see: catch limit
is attained and the season groups also had concerns about the

Federal Tort Claims Act: Claims closed. The American Fisheries Act
reliability of HUD's quality assurance, History and Issues Affecting
Coverage

requires GAO to report on whether the with concerns that HUD may lack for
Tribal Self- Determination

market for pollock fillets was resources to efficiently implement its
Contracts, by Barry T. Hill, Associate adversely affected. According to
GAO's appeals procedures.

Director for Energy, Resources, and report, the act has had a positive
effect Science Issues, before the Senate on the production of pollock
fillets as RCED- 00- 169, July 5, 2000 (41 pages). Committee on Indian
Affairs. GAO/ TRCED- well as on the price of pollock. Federal Tort Claims
Act: Issues 00- 234, July 12 (13 pages). Affecting Coverage for Tribal
SelfDetermination

RCED- 00- 178, Sept. 6, 2000 (161 Contracts.

RCED- 00- 170, Sept. 11, 2000 (33 pages). Community Development:

pages). Environmental Research: Local Growth Issues-- Federal Under the
Indian Self- Determination STAR Grants Focus on Agency Opportunities and
Challenges. and Educational Assistance Act of Priorities, but Management
1975, tribal employees participate in Enhancements Are Possible. Faced with
a 50 percent increase in the

and manage programs through U. S. population during the next 50 contractual
arrangements with the The Environmental Protection Agency years, communities
across the nation Bureau of Indian Affairs and the Indian (EPA) established
the Science to face the challenge of planning for and

Health Services. In 1990, through the Achieve Results grant program in 1995

managing growth. Each community Federal Tort Claims Act (FTCA), the to
ensure that the best scientists has its own unique circumstances that
federal government permanently

outside the agency were involved in its will affect its response to the
pressures

assumed the liability for accidents or research efforts, to provide useful
of growth. GAO surveyed 2,000 city torts caused by tribal contractors. Data
research support to the agency's and county governments and visited on FTCA
claims involving tribal program offices, and to train a cadre of

five metropolitan areas. This report contractors are not readily available
environmental scientists for the future.

identifies: (1) growth- related because neither the Department of the GAO
found that although program challenges confronting local Interior nor the
Department of Health grants were generally aligned with communities; (2)
tools and techniques

and Human Services (HHS) requires EPA's strategic priorities, the agency's
that state and local governments use to tracking such claims. However, the
program officials varied in their views help plan for and manage growth; and
two agencies did provide GAO with on the usefulness of the grants to (3)
federal programs and policies that data on 342 claims with total damages

them. The usefulness of the grants to state and local governments believe of
$700 million. About two- thirds of the the program offices differed largely

serve as barriers or aids in their efforts claims involved Bureau programs
and

because the program's goals-- meeting to plan more effectively for and one-
third involved Health Service

program office needs specifically and manage growth. programs. The U. S.
government may advancing environmental science be paying more than necessary
to generally-- may be in conflict. EPA

RCED- 00- 181, Sept. 29, 2000 (43 resolve claims involving tribal could
strengthen its program

pages). Aviation Security: Additional contractors because the tribes use

management in several areas. Controls Needed to Address

federal funds to buy private liability Weaknesses in Carriage of Weapons
insurance; thus the government is RCED- 00- 176, June 29, 2000 (18
Regulations. paying twice. Neither Interior nor HHS pages). Fishery
Management:

checks to see whether tribal American Fisheries Act Produces The number of
law enforcement contractors have private liability

Benefits. officers who fly while armed is insurance that could cover their
unknown because neither the Federal claims. According to Interior, About
one- third of the total Aviation Administration (FAA) nor the incentives to
reduce the number of commercial fish harvest in the United airlines
systematically collect this claims are not present and, from time States is
pollock caught in the Bering information. Recognizing that to time, tribal
contractors have not

Sea off Alaska. As the supply of weapons legally carried onto aircraft
cooperated with Interior in resolving a groundfish, such as cod, has
dropped, by law enforcement officers may claim. Sometimes, FTCA coverage is
the demand for pollock, which is a

present a threat to safety, FAA has not a perfect fit for tribal
contractors. valued source of fillets, surimi, and proposed changes to
strengthen When claims are filed in tribal courts, other products, has
increased. This

regulations. GAO found the following FTCA has no provision to remove the
increased demand has led fishing weaknesses in the proposed changes: cases
to federal court, where they vessels to compete to catch as many (1) there
are no safeguards to help belong. GAO summarized this report in fish as
possible before the overall ensure that firearms are removed from

an aircraft when law enforcement disaster funds. At the end of 1997,
treatment, primary health care,

officers deplane; (2) Federal law FEMA closed funding activities for
housing, and job training. enforcement officers are not required past
disasters; yet 419 old disasters to document their need to fly; (3) law
remained open with projected costs to RCED- 00- 186, July 24, 2000 (37
enforcement officers who inform the

FEMA of more than $3 billion. pages). Army Corps of Engineers: An airline
that they will be armed are not Assessment of the Draft required to have
their carry- on luggage

RCED- 00- 184, July 6, 2000 (55 pages). Environmental Impact Statement of
screened; and (4) there is no Homelessness: Barriers to Using the Lower
Snake River Dams. procedure for verifying the credentials Mainstream
Programs. of law enforcement officers flying The precipitous decline of
salmon has while armed. FAA is working with the Although nearly all homeless
people caused the National Marine Fisheries

law enforcement community and with are extremely poor, it is generally the
Service to list four different species of airlines to implement a secure
memory combination of poverty with other salmon and steelhead native to the
card system to better verify law

factors-- lack of education or a job Snake River as endangered or

enforcement officers' identities. The skills, severe mental illness,
substance threatened under the Endangered Department of Transportation, the
abuse, or lack of family and social Species Act. In 1995, the Army Corps
Federal Law Enforcement Officers

supports-- that results in homelessness. of Engineers, which operates four
Association, and the Fraternal Order of For these persons, homelessness is a
hydroelectric dams on the Lower Police did not entirely agree with chronic
condition. Homeless people

Snake River, began to study how to GAO's recommendations. are often unable
to access mainstream improve migration conditions for programs, such as food
stamps and

juvenile salmon. The Corps listed four RCED- 00- 182, Aug. 29, 2000 (24
Medicaid, because of the inherent alternatives: maintain current pages).
Disaster Relief Fund: FEMA's conditions of homelessness- transience,
operations, breach the dams so that

Estimates of Funding Requirements instability, and a lack of the water
courses around them, Can Be Improved.

basic resources. Complying with increase transportation of juvenile
mainstream programs' paperwork and

salmon around the dams, or make Information the Federal Emergency
communicating with agencies and improvements to the dams' systems Management
Agency (FEMA) provides service providers is difficult for for collecting
juvenile salmon and monthly to Congress on estimated

someone without a permanent address barging or trucking them past the
remaining costs for past disasters is

or telephone. Furthermore, federal dams. Their draft environmental neither
accurate nor timely. programs do not always include impact statement made no
Headquarters and regional offices

service providers with expertise, recommendations about which of the could
not agree on the amounts of experience, or sensitivity in working

four alternatives to adopt. The net funds obligated to date, and

with homeless people. Government economic effect on electricity costs,
differences totaled nearly $250 million. assistance is highly fragmented,
and it some $245 million a year, is FEMA headquarters staff responsible is
difficult to develop an integrated reasonable. Breaching the dams

for reconciling differences initially approach to helping the homeless. An
would mean losing hydroelectric failed to determine the cause and expert
panel convened by GAO power generated by the dams and make needed
corrections. It is difficult discussed strategies that could help

would affect shipping on the Lower to estimate the number, severity, and
homeless people's access to, and use Snake River. Although the Corps' timing
of future disasters. FEMA uses of, federal programs. These included

transportation analysis followed the five- year annual average level of (1)
improving the integration and appropriate guidelines, it did not fully
obligations for past disasters and

coordination of federal programs, (2) consider the effect of some of its

allows the five- year annual average making the process of applying for

assumptions and has not corrected decline at a constant rate (eight federal
assistance easier, (3) improving

some known errors. Also, breaching months) during the fiscal year. A better
outreach to homeless people, (4)

would affect air quality by increasing way to estimate the cost and timing
of ensuring an appropriate system of dust in the air and adding airborne
future disasters would be for FEMA to

incentives for serving homeless pollutants from substitute sources of

use actual monthly data on the people, and (5) holding mainstream power and
transportation. The Corps

estimated costs of disasters that have programs more accountable for is now
considering public and agency occurred during the last five years.

serving homeless people. comments on the draft environmental FEMA's recent
efforts to expedite Demonstration projects have

impact statement before revising it. closeout of its funding activities for
developed effective approaches to past disasters have had a significant

serving the homeless in such areas as

RCED- 00- 189, July 17, 2000 (23 impact on FEMA's rate of obligating mental
health, substance abuse pages). Commercial Motor Vehicles:

Effectiveness of Actions Being Taken ambitious, it is important that the
homeless assistance programs under to Improve Motor Carrier Safety Is
Department determines how its the Continuum of Care process. Under Unknown.

actions will lead to a reduction in this process, HUD uses a national
fatalities and whether it can competition to distribute funding to The
Department of Transportation reasonably expect to carry out the

community projects. In their (DOT) has taken steps to improve plan's
initiatives. applications, communities rank their motor carrier safety. It
has established projects according to the most

the Federal Motor Carrier Safety RCED- 00- 190, July 31, 2000 (26 important
needs of their homeless Administration, developed and

pages). Hazardous Materials Training: populations. In recent competitions,
solicited industry comments on a

DOT and Private Sector Initiatives some communities have contended Safety
Action Plan, and has begun

Generally Complement Each Other. that HUD was not considering the work on
some initiatives in that plan.

priorities that they had assigned to the The Safety Action Plan is an
overall Trucks and trains carry more than projects in their applications.
strategy for improving the safety of 770, 000 shipments of hazardous

However, HUD uses a three- step commercial motor vehicles and materials
across the country every day. process that is consistent with relevant
contains 47 initiatives aimed at Accidents involving these materials- law to
select projects for funding. In achieving the Department's goal of a 50
spills, fires, and explosions-- cost the 1999, for communities that had
percent reduction by 2009 in crash United States more than $459 million

between four and 16 projects on their fatalities involving large trucks.
These each year and can cause serious priority lists, HUD funded 92 percent
initiatives focus on increasing problems for nearby communities. of the
projects that were ranked in the enforcement of federal safety More than
120,000 fire fighters, police, top 25 percent on the lists. For regulations;
increasing safety

and emergency medical technicians communities that listed three or fewer
awareness; improving safety are trained each year to respond projects, the
project identified as the information and technology; and appropriately to
such accidents in top priority was funded between 34 improving performance
standards for order to protect themselves and the

and 70 percent of the time. In every vehicles, drivers, and motor carriers.
affected communities. Part of the

case in which high- priority projects The Department has also published a
training given to these emergency

were not funded under the proposed rule to limit the number of responders is
funded through the competition and low- priority projects hours that
commercial motor vehicle Hazardous Materials Emergency

were, the higher ranked projects did operators may drive before resting.
Preparedness grants program, which is

not meet the applicable program's Under this rule, the Department run by the
Department of eligibility requirements. However, estimates that 115 fatigue-
related Transportation. This report (1)

more than one- third of the 1999 fatalities would be avoided annually.
describes the program's funding applicant communities had significant DOT
officials confirm that they do not sources and spending, (2) assesses
problems in understanding the

have a firm analytic basis for the whether the program and private

application requirements or assumptions on which these estimates sector
efforts duplicate each other, and

completing the paperwork. are made, but rather supplemented (3) provides
information on whether available research with their the private sector's
training efforts

RCED- 00- 192, July 11, 2000 (36 professional judgment. Thus, the

meet federal training regulations and pages). Chemical Safety Board:
reasonableness of DOT's assumptions national training standards. Improved
Policies and Additional and the resulting estimate of lives that Oversight
Are Needed. could be saved is unknown. Also, the RCED- 00- 191, July 24,
2000 (31 Department has not articulated how pages). Homelessness: HUD Funds

Management problems at the Chemical the individual initiatives in the Safety
Eligible Projects According to Safety and Hazard Investigation Board Action
Plan contribute to reducing Communities' Priorities. have called into
question the Board's fatalities, nor has it determined effectiveness in
investigating the whether it can reasonably expect to The Department of
Health and Human

causes of accidental chemical releases. complete all 47 activities within

Services (HUD) launched the This report discusses the Board's expected
budgetary and human

"Continuum of Care" strategy in 1993 current organization and operations;
resources. Department officials told

to encourage states and localities to its efforts to develop plans,
policies, GAO that publication of the plan develop coordinated and

and procedures, including those to signals DOT's intent to carry it out and
comprehensive community- based ensure objectivity of its investigative that
they expect to examine resource approaches for providing the homeless
activities; and whether the Board needs this year. Because its goal of with
housing and services. HUD set would benefit from the independent reduced
fatalities is extremely aside $750 million in 1999 to fund its oversight of
an inspector general.

Continuing disagreements between assessment studies. The computer vehicle
safety is less certain because of Board members and the former models that
EPA and GE have such variables as the size of the CAFE Chairman raise
questions about the developed to predict polychlorinated

increase, manufacturers' lead- time, Board's productivity and effectiveness.
biphenyls levels in the Hudson River and strategies used to achieve fuel In
addition to limited progress in are similar in structure and have economy
gains. GAO found consensus

addressing its investigative backlog, produced generally comparable among
safety experts and auto the Board has undertaken no new outcomes. EPA used
an extensive manufacturers that, with enough lead investigations since March
1999. The public outreach process as part of its

time to meet higher CAFE levels, auto Board has established eight priorities
assessment of the Hudson River. This builders could minimize any negative
for the balance of fiscal year 2000,

process involved several working impact on safety by using fuel- saving
including the completion of three groups that EPA established to help
technologies instead of simply building investigative reports. The Board is
ensure that its public outreach process smaller, lighter cars. developing a
strategic plan, and was inclusive. EPA consulted with progress has been made
toward interested federal and state agencies

RCED- 00- 195, Aug. 17, 2000 (47 policies and procedures to guide the and GE
to obtain scientific and pages). Food Safety: Actions Needed Board's
activities. However, the technical information and suggestions

by USDA and FDA to Ensure That Board's interim investigative protocol on its
approach. EPA expects to Companies Promptly Carry Out lacks the policies and
procedures propose its decision for public Recalls. needed to ensure
objectivity and comment by December 2000, and it balance in its
investigative work, such plans to incorporate comments

In considering proposed legislation as conflicts of interest. GAO received
from several sources, that would give mandatory recall recommends that the
Board adopt including GE.

authority to the U. S. Department of clear policies and procedures on
Agriculture (USDA) and the Food and potential conflicts of interest and
RCED- 00- 194, Aug. 15, 2000 (41

Drug Administration (FDA), Congress consider policies used by other pages).
Automobile Fuel Economy: asked GAO to report on existing investigative
agencies that promote

Potential Effects of Increasing the voluntary recall programs. This report
investigative impartiality and Corporate Average Fuel Economy discusses
documented food recalls thoroughness. The operational

Standards. since 1984, the extent to which these problems of the Board
suggest that

recalls were associated with foodborne ongoing institutional oversight would

Overall fuel economy trends reflect an illnesses, compliance issues, be
beneficial. GAO believes that an average for new passenger vehicles

and the economic impact of these office of inspector general offers the that
has fallen to its lowest level since recalls. GAO recommends that USDA best
hope for effective institutional 1980. As a result, some energy and FDA
strengthen their guidance to oversight and recommends that the
conservationists and companies on recalls that involve Board develop an
agreement with an environmentalists are calling for an serious health risks
and improve their existing inspector general to provide increase in the
standards for corporate ability to assess the timeliness of such oversight.
average fuel economy (CAFE) set in

companies' recalls. 1975. Proponents cite energy security RCED- 00- 193,
Sept. 28, 2000 (33 and environmental benefits as part of RCED- 00- 196, July
20, 2000 (45 pages). Superfund: Information

the payoff for such an increase. pages). Small Business: SBA Could Regarding
EPA's Cleanup Decision Opponents to raising CAFE standards Better Focus Its
8( a) Program to Help Process on the Hudson River Site. cite decreased
automobile safety Firms Obtain Contracts. resulting from smaller, more
fuelefficient In response to significant public vehicles as a safety The
Small Business Administration's concerns about the Environmental

consequence. GAO's findings are based 8( a) program-- the federal
government's

Protection Agency's (EPA) cleanup on studies and interviews with experts

primary vehicle for developing small decision and its potential impact on
from federal agencies, automobile businesses owned by socially and
communities along the upper Hudson

manufacturers, and energy economically disadvantaged persons-

River, GAO reviewed: (1) the computer conservation and environmental is not
meeting client expectations. models EPA and General Electric (GE) interest
groups. According to those First, SBA's efforts are not aligned with used in
their assessments and related studies and experts, raising fuel the needs or
expectations of 8( a) scientific and technical issues and (2)

economy standards would reduce firms. Firms want SBA to provide more the
processes EPA used to obtain and future fuel consumption and

assistance that will help them obtain respond to scientific and technical
greenhouse gas emissions. However, contracts. SBA has stressed business
comments on its modeling and other the impact of higher standards on
management skills, even though most

firms joined the program to obtain 8( a) performance in such basic areas as
the The Special Supplemental Nutrition contracts. This misalignment of SBA
level of training provided, whether Program for Women, Infants, and efforts
and 8( a) firms' needs has been

such training matched firms' needs, or Children (WIC) is a federally funded
further compounded by the fact that even the amount of 8( a) contracts the
nutrition assistance program run by most 8( a) contract dollars go to a
small firms obtained. GAO summarized the Department of Agriculture's Food
number of firms. Second, SBA has no these two reports in testimony before
and Nutrition Service (FNS). This way to tell how well the 8( a) program
Congress; see: Small Business:

program provides supplemental foods is working or know the full extent of
Expectations of Firms in SBA's 8( a) and nutrition services to lower- income
business development assistance Program Are Not Being Met, by Stanley

pregnant, breastfeeding, and provided to firms. SBA is unable to J.
Czerwinski, Associate Director for postpartum women; infants; and measure
the 8( a) program's

Housing and Community Development children up to age 5 who are at
performance in such basic areas as the

Issues, before the Senate Committee nutritional risk. In fiscal year 1999,
level of training provided, whether on Small Business. GAO/ T- RCED- 00-

WIC benefits and services were such training matched firms' needs, or 261,
July 20 (15 pages). provided to about 7. 3 million even the amount of 8( a)
contracts the individuals each month. To help

firms obtained. GAO summarized RCED- 00- 199, Aug. 31, 2000 (48 Congress
better understand the cost of these two reports in testimony before pages).
Drinking Water: Spending administering WIC and delivering Congress; see:
Small Business: Constraints Could Affect States' nutritional services, GAO
is mandated Expectations of Firms in SBA's 8( a) Ability to Implement
Increasing by law to assess various costs

Program Are Not Being Met, by Stanley Program Requirements. associated with
WIC nutrition services J. Czerwinski, Associate Director for and
administration. This report, the

Housing and Community Development Recognizing the key role that states

second in a series of such assessments, Issues, before the Senate Committee

play in ensuring compliance with the provides information on: (1) the ways
on Small Business. GAO/ T- RCED- 00-

Safe Drinking Water Act, Congress in which WIC agencies deliver 261, July 20
(15 pages). asked GAO to assess funding available nutrition services and
administer the

and expended for implementing the program; (2) the ways in WIC which

RCED- 00- 197, July 19, 2000 (21 states' drinking water programs. This

WIC agency staff allocate their time pages). Small Business: SBA's 8( a)
report provides information on: (1) delivering the services and Information
System Is Flawed and how EPA's budget requests for the administering the
program; and (3) the Does Not Support the Program's

states' drinking water programs types of nonprogram resources used

Mission. compare with amounts authorized and

and the extent to which such estimated to be needed; (2) how much resources
cover costs of delivering the The Small Business Administration's

states have spent to implement these nutrition services. GAO's first report

8( a) program-- the federal government's programs compared with estimated
was issued in March 2000. (See primary vehicle for developing small

needs; (3) what effects federal funding GAO/ RCED- 00- 66.) businesses owned
by socially and levels have had, and may have in the economically
disadvantaged persons- future, on states' ability to implement RCED- 00-
217, Aug. 24, 2000 (31 is not meeting client expectations.

their programs; and (4) what existing pages). Food Irradiation: Available
First, SBA's efforts are not aligned with practices have the potential to
help Research Indicates That Benefits the needs or expectations of 8( a)
states implement their drinking water

Outweigh Risks. firms. Firms want SBA to provide more programs more
effectively and assistance that will help them obtain efficiently. As a
measure of the amount Although the U. S. food supply is contracts. SBA has
stressed business

of funding states need to implement generally considered to one of the
management skills, even though most their drinking water programs, GAO
safest in the world, foodborne illnesses

firms joined the program to obtain 8( a) used estimates developed for fiscal
remain a concern. Each year, millions contracts. This misalignment of SBA
years 1999 through 2005 by the

of Americans become ill and as many efforts and 8( a) firms' needs has been
Association of State Drinking Water

as 5,000 die from foodborne infections. further compounded by the fact that
Administrators, with the support and

The U. S. Department of Agriculture most 8( a) contract dollars go to a
small participation of EPA.

(USDA) estimates that medical number of firms. Second, SBA has no treatment
and productivity losses way to tell how well the 8( a) program RCED- 00-
202, Sept. 29, 2000 (113 associated with foodborne illnesses is working or
know the full extent of pages). Food Assistance: Activities cost as much as
$37 billion annually. business development assistance and Use of Nonprogram
Resources at Irradiation, which involves exposing provided to firms. SBA is
unable to Six WIC Agencies. food briefly to radiant energy, can measure the
8( a) program's reduce or eliminate microorganisms

that contaminate food or cause of developing a Web site. This report RCED-
00- 224, Aug. 31, 2000 (29 spoilage. So far, only limited quantities
includes appendixes on GAO survey pages). Hazardous Waste: EPA Has

of irradiated foods-- spices, herbs, dry responses of 10 federal departments
Removed Some Barriers to Cleanups. vegetable seasonings, and some fresh

and seven states, including fruits, vegetables, and poultry-- have
expenditures for invasive species The Environmental Protection been
available in the United States. activities.

Agency's (EPA) corrective action Major purchasers are health care and
program manages the cleanups at food service establishments. The

RCED- 00- 221, Sept. 15, 2000 (33 operating facilities that pose World
Health Organization reviewed pages). Mass Transit: Project significant risks
to human health or the 500 studies and concluded that food Management
Oversight Benefits and environment. In 1997, GAO reported irradiation poses
no toxicological,

Future Funding Requirements. that three key requirements of the

microbiological, or nutritional Resource Conservation and Recovery problems.
In more than 40 years, there The Federal Transit Administration's

Act of 1976 (RCRA) were successful at have been no accidents in North

(FTA) oversight of federally funded ensuring that waste processing is
America transporting the types of major capital projects has evolved managed
safely. GAO evaluated the radioactive isotopes used for over the past
several years to include corrective action program and irradiation.

more comprehensive and ongoing reported that facilities had made reviews of
a proposed grantee's

limited progress in conducting RCED- 00- 219, Aug. 24, 2000 (63 financial
capacity to construct a major cleanups. Because of Congress's pages).
Invasive Species: Federal and

transit system. Changes in project continuing concerns about the pace of
Selected State Funding to Address

management, oversight, and grantmaking hazardous waste cleanups, GAO

Harmful, Nonnative Species. activities have come about reviewed the steps
that EPA has taken because of project costs and schedule since 1997 and
assessed its effects on Eight federal agencies on the Invasive problems
identified through FTA's

cleanups of remediation waste at sites Species Council-- Agriculture,

oversight program and increased subject to the three RCRA Commerce, Defense,
Interior, State,

congressional scrutiny. Changes requirements and the management Treasury,
Transportation, and the should help the grantees avoid major factors that
had slowed the pace of Environmental Protection Agency-- as cost, schedule,
or quality problems and

cleanups. Several steps EPA has taken well as the Smithsonian and the help
protect the federal government's

to revise its regulatory requirements National Science Foundation spent
investments. However, FTA is

for handling remediation waste have $513. 9 million fiscal year 1999 and

concerned that funds may be removed some barriers to cleanups. In $631. 5
million in fiscal year 2000 to insufficient to monitor large projects
February 2000, EPA agreed to amend combat invasive species. The in the
future. its 1993 rule providing flexibility under Department of Agriculture
spent 89 the RCRA requirements for certain onsite percent of this money.
Activities to RCED- 00- 222, Aug. 30, 2000 (73

storage and disposal units for prevent the introduction of invasive pages).
Aviation and the Environment: remediation waste. EPA is trying to species
received the largest

Results From a Survey of the Nation's monitor the implementation of
percentage of funding-- about 51 50 Busiest Commercial Service reforms and
is addressing the resource percent and 49 percent in fiscal years

Airports. shortfall that prevented it from 1999 and 2000, respectively. Of
the

completing more cleanups. GAO seven states surveyed-- California, This
report provides a detailed,

recommends that EPA focus more Florida, Hawaii, Idaho, Maryland, question-
by- question analysis of attention on achieving final cleanups Michigan, and
New York-- Florida spent

survey responses to from officials at under the its corrective action $94. 5
million and $127. 6 million in 1999 each of the nation's 50 busiest program.
and 2000 and California spent $82.6 commercial service airports. The

million and $87. 2 million in 1999 and survey, which was done by mail from
RCED- 00- 232, Aug. 31, 2000 (40 2000. For both years, most funding

October 1999 through February 2000, pages). Water Infrastructure:
WaterEfficient

went toward control of invasive addresses environmental concerns and
Plumbing Fixtures Reduce species. The Invasive Species Council

challenges facing airports now and in Water Consumption and Wastewater is in
the final stages of staffing the the foreseeable future. It also provides
Flows. organizational infrastructure, has

insights into the federal effort to help drafted and is receiving comments
on airports address their impact on the This report provides information on
its management plan, has established environment. the impact of the national
water an advisory committee and six efficiency standards on water working
groups, and is in the process consumption levels and wastewater

flows and discusses how repealing the by Barry T. Hill, Associate Director
for

and Adult Care Food Program, the national standards might affect Energy,
Resources, and Science Issues, Elderly Nutrition Program, and the projected
investments in drinking before the Subcommittee on Commodity Supplemental
Food water, wastewater treatment

Transportation and Infrastructure, Program. Nevertheless, many are

infrastructure, and state and local Senate Committee on Environment
reluctant to accept nutrition governments' ability to finance and Public
Works. GAO/ T- RCED- 00297,

assistance. Some older persons believe infrastructure needs. It also
discusses Sept. 20 (10 pages). that accepting food assistance will the
likelihood of moratoria on new compromise their independence. residential
and commercial RCED- 00- 237, Aug. 31, 2000 (51

Others equate it with welfare; still construction if the demand for water is

pages). Telecommunications: Issues others lack transportation to the
unabated. Related to Local Telephone Service. programs' locations or believe
that the burden of applying for food stamps

RCED- 00- 235, Sept. 14, 2000 (49 From January 1996 through April 2000,
outweighs the expected low benefit.

pages). Comprehensive Everglades major incumbent local exchange

Program officials, providers, and Restoration Plan: Additional Water

carriers (ILECs) sold nearly 832, 000 advocacy groups have identified
Quality Projects May Be Needed and access lines, 68 percent of which were
several actions that might increase Could Increase Costs. in rural areas.
This figure already older persons' participation in exceeds the total number
of lines sold nutrition assistance programs. These The Corps of Engineers'
during the previous four years. actions include simplifying the
Comprehensive Everglades Although the commercial availability application
process, increasing the Restoration Plan provides a of asymmetric form of
the digital minimum benefit level from $10 to $25 framework for improving
the quality, subscriber line (DSL) technology did

per month, expanding programs to quantity, timing, and distribution of not
begin for nearly 10 years after its serve more people, and making older
water in the South Florida ecosystem, development, telephone companies

persons automatically eligible for food including the Everglades. This
report have rapidly deployed DSL over the

stamps when they are approved for discusses the number and costs of past
three years. ILECs intensified programs like Medicaid. projects that will
ultimately be needed their asymmetric DSL deployment in to address water
quality in the recent months in response to both the

RCED- 00- 239, Aug. 30, 2000 (21 ecosystem. Currently, there are too
asymmetric DSL deployment by pages). Federal Land Management: many
uncertainties to provide such an competitive local exchange carriers Federal
Land Acquisitions in California estimate. As uncertainties related to and
the cable industry's foray into Since January 1994. implementing the plan's
projects are

Internet access with cable modem resolved and more information is service.
GAO reviewed customer The federal government owns about 45 gathered about
the extent of the complaints to state and federal million acres in
California that include, ecosystem's water quality problems, it regulators
about the quality of local among other areas, wildlife refuges is likely
that modifications and

telephone service and found that and military installations. This additions
to the plan could increase its

complaint levels were higher for five of comprises about 45 percent of the
total cost over the Corps' current the eight major ILECs. According to
state's total land area. About 90 estimate of $7.8 billion. The Corps has

telephone companies' own customer percent of this federal land was
acknowledged the level of uncertainty surveys for 1996 through 1999, there
is established in the public domain in in the plan and has included a
process

no clear trend in the overall level of 1848 when Mexico ceded the area that
for incorporating project customer dissatisfaction. became California. Some
of the modifications and additions in its remaining federal land
acquisitions future reports to Congress. It has not,

RCED- 00- 238, Aug. 17, 2000 (47 were made as part of a joint federalstate

however, included a means for pages). Food Assistance: Options for program--
called CALFED-- that reporting cumulative changes in Improving Nutrition for
Older

was created in 1995 to protect the San projects and costs for the plan as a

Americans. Francisco Bay/ Sacramento- San whole or progress in implementing
the Joaquin River Delta. CALFED's

plan. GAO recommends that the Corps In 1998, about 1. 6 to 2 million mission
is to develop a plan to restore provide for such reporting. GAO

households with individuals age 60 and the ecological health of and improve
summarized this report in testimony older reported that they did not have
water management in the Bay- Delta before Congress; see: Comprehensive

enough of the right types of food to area, which supplies drinking water for
Everglades Restoration Plan:

maintain nutrition or simply did not more than 22 million Californians and
Additional Water Quality Projects May have enough to eat, despite programs

irrigation for state agriculture. This Be Needed and Could Increase Costs
like the Food Stamp Program, Child report identifies: (1) lands acquired by

federal and nonfederal entities with whether GIPSA is adequately thus are
not fulfilling their federal funds through CALFED since it protecting
competition in the livestock responsibility to protect the lands and began
in 1995; and (2) lands acquired markets, GAO reviewed USDA's efforts

waters they manage. outside the CALFED program by to implement the Packers
and federal programs.

Stockyards Act. This report discusses RCED- 00- 255, Sept. 22, 2000 (27 the
number and status of pages). Food Safety: Controls Can Be RCED- 00- 241,
Sept. 15, 2000 (68 investigations conducted by GIPSA in

Strengthened to Reduce the Risk of pages). Rural Housing: Options for
response to complaints about Disease Linked to Unsafe Animal Feed.
Optimizing the Federal Role in Rural anticompetitive activity and factors
Housing Development. that affect GIPSA's ability to This report focuses on
the need to investigate concerns about strengthen food safety controls to
help

This document focuses on options for anticompetitive practices. GAO reduce
the risk of diseases linked to optimizing the federal role in rural
recommends several actions to unsafe animal feed. Few incidents of housing
development. The federal improve GIPSA's investigations, human illness in
the U. S. have been government has scaled back its including integrating
USDA attorneys

linked directly to contaminated animal involvement in rural housing into
GIPSA's investigative teams and feed because public health assistance
programs, often reducing its

adopting more systematic approaches investigations of foodborne illness
financial commitment to direct lending to its investigative work. GAO

cannot usually determine if the thus shifting responsibilities to state
summarized this report in testimony original source of the contamination is
and local governments and the private before Congress; see: Packers and

the feed, handling of the product, sector. Rural housing continues to
Stockyards Programs: Investigations transportation, or other factors. suffer
and has been labeled of Competitive Practices Need Potentially major public
health and substandard. Possible options for

Improvements by Lawrence J. economic consequences could result optimizing
the federal role in rural

Dykeman, Director of Food and from contaminated feed and there is a

housing include changing programs' Agriculture Issues, before the need for
strong regulatory controls. targeting subsidy levels, and delivery
Subcommittee on Administrative systems, as well as merging the Rural

Oversight and the Courts, Senate

RCED- 00- 256, Sept. 29, 2000 (23 Housing Service's programs with

Committee on the Judiciary. GAO/ TRCED- pages). Forest Service: Proposed
Department of Housing and Urban

00- 299, Sept. 24 (13 pages). Regulations Adequately Address Some,
Development programs. but Not All, Key Elements of Forest

RCED- 00- 243, Sept. 15, 2000 (85 Planning. RCED- 00- 242, Sept. 21, 2000
(45 pages). Federal Lands: Agencies Need pages). Packers and Stockyards to
Assess the Impact of Personal The Forest Service's 1999 proposed Programs:
Actions Needed to Improve

Watercraft and Snowmobile Use. planning regulations would make
Investigations of Competitive ecological sustainability, rather than
Practices. Many of the nation's national parks, economic or social
sustainability, the forests, and other federal lands agency's top priority,
in order to Cattle and hog producers have raised provide opportunities for
individuals provide a sustainable flow of products, concerns about changes
in their to use snowmobiles and watercraft for services, and other values
from industries that affect competition, recreational purposes. The federal

national forests, consistent with laws such as mergers among meatpacking
agencies that manage these areas are and regulations guiding their use.
companies, increased marketing of mandated by law to monitor the

Elevating the maintenance or livestock through contracts, and environmental
impact of these

restoration of ecological systems over greater control by meatpacking
vehicles. However, 60 percent of the other uses of the national forests is
companies over livestock production federal areas GAO surveyed have not
consistent with agency's evolving and marketing. Under the Packers and
collected the necessary information to mission. This priority has evolved
over Stockyards Act, the U. S. Department determine whether there have been
the years; it is not driven by statute. of Agriculture (USDA) is responsible
any adverse effects on their unit's

GAO recommends that the Forest for monitoring the cattle and hog resources.
Of the other 40 percent, Service work with Congress to reach industries and
halting unfair and

about half indicated that the agreement on the agency's mission
anticompetitive practices. USDA has

information they have collected is not priorities. The agency's proposed
assigned this responsibility to the enough to determine how these planning
regulations do not require Grain Inspection, Packers and vehicles use should
be managed. GAO that forest plans be clearly linked to Stockyards
Administration (GIPSA). found that the federal agencies are not goals,
objectives, and strategies. Because of continued concerns about complying
with federal regulations and Although the Forest Service agreed

with the desired outcome of GAO's mining operations. The Park Service

RCED- 00- 274, Sept. 28, 2000 (31 earlier recommendations about linking does
not recover the costs of its pages). Pork Promotion Program: objectives to
the strategic plan, it validity examination from claimants

Petition Validation Process Needs to declined to revise its planning who
submit plans for mining Be Strengthened. regulations, opting instead to
revise its operations. There is no guidance that system of directives that
implement

describes when it is appropriate for In May 1999, the U. S. Department of
the planning regulations.

the Park Service to conduct such Agriculture received a petition with
discretionary examinations. about 19,000 signatures requesting a

RCED- 00- 260, Aug. 30, 2000 (22 vote on whether to continue the pork
pages). Transit Grants: Need for

RCED- 00- 270R, Aug. 31, 2000 (19 promotion program. Fifteen percent of
Improved Predictability, Data, and pages). Government Performance and those
eligible are needed to require the Monitoring in Application Processing.
Results Act: Information on Science Secretary of Agriculture to hold a

Issues in EPA's Performance Report for referendum. GAO found that the The
Department of Transportation's Fiscal Year 1999 and Performance

Agricultural Marketing Service's (AMS) (DOT) Federal Transit Administration
Plans for Fiscal Years 2000 and 2001.

process to validate the pork petition (FTA) is authorized to provide about
was flawed in three areas: (1) AMS did $42 billion for transit programs for
This correspondence focuses on the not accurately estimate the population
fiscal years 1998 through 2003. It does Environmental Protection Agency's

of pork producers; (2) AMS did not so through grants for activities such as
(EPA) Performance reports for fiscal develop a reliable database of the
construction of transit systems-- to years 1999, 2000, and 2001. Over the

petitioner information as a basis for states and local and regional years,
GAO identified several verifying petitioners' eligibility to sign
transportation providers that meet a weaknesses in EPA's science a petition;
and (3) AMS used a flawed number of requirements. The programs. EPA
partially addressed survey methodology. The Secretary

requirements include Department of these weaknesses in its performance
ordered a referendum because he Labor (DOL) certification that labor

plan for fiscal year 2001. EPA's draft concluded that it was impossible to
protection arrangements are adequate strategic plan generally complies with
ascertain the valid petitioners and to protect the interest of employees

the Government Performance and efforts to revalidate the petition would
affected by federal transit assistance.

Results Act, but GAO noted that not result in any greater certainty. He
However, FTA's processing of grant

several areas of the plan could be also believed that pork producers
applications was neither timely nor improved. should vote on whether to
continue consistent. For example, less than half the program because the
industry had

of the applications in a 21- month RCED- 00- 271, Aug. 8, 2000 (45 changed
dramatically since the last period were processed within FTA's

pages). National Ignition Facility: vote in 1988. GAO recommends that
informal 90- day goal. DOL was more Management and Oversight Failures AMS
strengthen its validation process timely, providing labor protection

Caused Major Cost Overruns and and seek reimbursement from certification for
93 percent of the grant

Schedule Delays. program funds to pay all referendum applications within 60
days of receipt.

expenses. DOL is also working to make This report focuses on management
information about certification

and oversight failures, which caused

RCED- 00- 275R, Sept. 29, 2000 (20 decisions more available. To help major
cost overruns and schedule pages). Airport Financing: Use of shorten the
application process, which delays at the National Ignition Facility Funds
for Capital Improvements at can adversely affect the completion of (NIF).
GAO found that the Department Chicago O'Hare International Airport. transit
projects, GAO recommends of Energy, the Lawrence Livermore that FTA, with
DOL, periodically assess

National Laboratory, and the This correspondence focuses on the its
application process and report the

University of California all share funds provided and spent at Chicago
results to Congress. responsibility for NIF's cost and O'Hare International
Airport for schedule problems. It was also found

capital improvements. The Airport RCED- 00- 265, Sept. 19, 2000 (18 that
each lack the appropriate skills to Improvement Program, passenger pages).
National Park Service: Agency manage and oversee the project and facility
charges, General Airport Should Recover Costs of Validity exercised
oversight powers poorly.

Revenue Bonds, and other revenue Examinations for Mining Claims. These
conditions, however have bonds provided Chicago with $2. 4 spawned new
reforms by the

billion for use at O'Hare International This report focuses on the National
Laboratory and the University to Airport. The city spent about $1.9 Park
Service's ability to recover the improve their management and

billion of those funds on capital costs of validity examinations for
organization short comings.

improvement projects between 1990 together. GAO concludes that the instance,
the federal government has

and 1999. estimate for each tax incentive is made spent an average of $149
billion each independently of any other tax year since the late 1980s on the

RCED- 00- 285R, Sept. 27, 2000 (8 incentive, and the effect of making
nation's infrastructure. The amount of pages). Aviation and the Environment:
more than one change might be greater federal spending on infrastructure has
Federally Authorized Funding for than or less than the sum of the

been on the decline since 1987, Noise- Related Projects.

changes. however. This trend is driven, in part, by lower defense spending
for The Federal Aviation Administration RCED/ AIMD- 00- 2, Oct. 13, 1999 (63
infrastructure and by limits imposed (FAA) determines cost factors in
pages). Forest Service: A Framework by deficit reduction agreements on the
administering two programs that will

for Improving Accountability. government's discretionary spending- fund
airports' capital development and the part of the budget that finances the
noise- related projects. This

The Forest Service must account to most federal spending on correspondence:
(1) determines the the public for its use of the tax dollars

infrastructure. In contrast, federal total historical funding of noise-
related appropriated to it to carry out its

spending on nondefense infrastructure projects through both the Airport
mission. To do this, the Service needs has risen slightly, and spending by
Improvement Program (AIP) and the to provide accurate and timely state and
local governments continues Passenger Facility Charge program, by
information on how much it was

on an upward trend. Spending on FAA, (2) compares the amount of AIP
authorized to spend on specific infrastructure is often intended to funds
set aside for noise- related programs and activities, how it spent benefit
the nation's economy, but projects in the AIP appropriation for the funds,
and what it accomplished

studies on whether it has spurred fiscal year (FY) 2000, and (3) compares
with the money. This report discusses

economic growth have shown mixed the authorized amounts for the AIP for

the status of the Forest Service's results. Federal agencies can improve

fiscal years 2001 through 2003 with the efforts to (1) achieve financial

their acquisition and management of projected costs of noise- related
accountability, (2) become more infrastructure by following the best
projects planned in the current accountable for its performance, and

practices of leading government and National Plan of Integrated Airport (3)
better align its budget with its private- sector organizations. Federal
Systems. strategic goals and objectives. GAO agencies and Congress face
several found that the Forest Service cannot challenges in determining the
RCED- 00- 301R, Sept. 25, 2000 (25 accurately report its expenditures and

appropriate levels of and effective pages). Petroleum and Ethanol Fuels:

accomplishments, and its budgetary, approaches to infrastructure Tax
Incentives and Related GAO Work. financial, and performance data investment.
There is a general lack of systems are not linked.

accurate, consistent information on This correspondence focuses on tax the
existing infrastructure and its incentives that benefit the petroleum

RCED/ AIMD- 00- 35, Feb. 7, 2000 (73 future needs. Moreover, until recently,

and ethanol industries. Specific pages). U. S. Infrastructure: Funding
agencies have not been required to petroleum tax incentives range from
Trends and Opportunities to Improve relate their planned infrastructure
about $330 million for the expensing of Investment Decisions.

spending to their missions and goals, tertiary injectants to about $82
billion so evaluating these plans has been a for cost depletion deductions.
For A sound public infrastructure plays a challenge for agencies and
Congress. example, ethanol fuel tax incentives

vital role in encouraging a more Finally, the federal budget structure
ranged from $198 million for alcohol

productive and competitive national does not prompt explicit debate about
fuel tax credits to almost $11 billion economy. Public facilities are also
vital infrastructure spending that is for the excise tax exemption for to
immediate as well as long- term intended to have long- term benefits. To
alcohol fuels. Some of the tax

public demands for health, safety, and better coordinate infrastructure
incentives for the petroleum industry improved quality of life. For example,
investments to meet national, regional,

have been in place for many decades, transportation systems and water and
local goals and make them but during the past 25 years, these supplies
directly support the nation's

mutually supportive, agencies incentives generally have been scaled economy
by facilitating the movement throughout the government need to back. In the
past decade, these and manufacture of goods. Public reduce inefficiencies in
their current

incentives have been extended, but the schools, housing, parks, and other

investments and analyze potential rates of exemption and credit have
facilities enhance the quality of life of investments to identify those that
yield been somewhat reduced. The all Americans. The United States has

the greatest benefits in the most costeffective estimated revenue losses for
these tax historically made an extraordinary

way. incentives should not be added investment in its infrastructure. For

RCED/ AIMD- 00- 78, Feb. 29, 2000 (70 conducting its review, GAO examined
Mariana Islands places them under pages). Intercity Passenger Rail:

studies and spoke with experts in U. S. sovereignty and grants U. S.

Amtrak Needs to Improve Its aviation navigation and related citizenship to
people born there, but Accountability for Taxpayer Relief Act technologies
to obtain their views on pledges self- government for local Funds. the
capability of FAA's new navigation

affairs. The Islands control their own system and alternatives to that
system. immigration policy and set their own This report reviews Amtrak's
use of From the studies it reviewed and

minimum wage, which, at $3. 05 per the Taxpayer Relief Act (TRA) funds.
experts it talked with, GAO found that hour, is substantially below the
Specifically, GAO discusses (1) how the current GPS does not meet all of
minimum wage in the United States. much Amtrak has spent in TRA funds FAA's
civilian aviation navigation

Businesses in the Islands, particularly and what types of activities it has
requirements for accuracy, integrity, in the garment and tourist industries,
funded, (2) whether Amtrak has used and availability. employ many foreign
workers who TRA funds in accordance with the act,

have work permits that do not lead to (3) what the roles of the Amtrak RCED/
AIMD- 00- 148, June 29, 2000 citizenship. This report answers the Reform
Council and the Internal (62 pages). Highway Funding: following questions:
What has been the Revenue Service have been in Problems With Highway Trust
Fund impact of the garment and tourist monitoring Amtrak's use of the funds,

Information Can Affect State Highway industries and the use of foreign

and (4) whether Amtrak fully reports Funds. workers on the economy of the

its use of the funds. Among other Mariana Islands? How do the revenueraising

things, GAO found that through June The Transportation Equity Act for the
efforts of the Mariana Islands 1999, Amtrak reported that it had spent

21st Century (TEA- 21) authorized and the payments that they receive about
$1. 3 billion of the $2. 2 billion

$217. 9 billion for highway, mass from the U. S. Treasury compare with
provided under TRA. GAO summarized transit, and other surface those of other
U. S. territories and this report in testimony before transportation
programs for fiscal freely associated states? How do the

Congress; see: Intercity Passenger years 1998 through 2003. This report
taxes and fees paid by the garment Rail: Increasing Amtrak's

discusses (1) the Treasury industry in the Mariana Islands, Accountability
for Its Taxpayer Relief Department's process for allocating expressed as a
percentage of gross Act Funds, by Phyllis F. Scheinberg, highway user tax
receipts to the receipts, compare with the taxes and Associate Director for
Transportation

Highway Account of the Fund, (2) the fees paid by the garment industry in
Issues, before the Subcommittee on Federal Highway Administration's

the United States? Transportation and Related Agencies,

(FHWA) process for estimating motor House Committee on Appropriations. fuel
usage, and (3) the contributions to RCED/ GGD- 00- 220, Sept. 29, 2000 GAO/
T- RCED- 00- 116, Mar. 15 (13

the account that are attributable to (69 pages). Economic Development:
pages). highway users in each state and the

Multiple Federal Programs Fund impact of these processes on the Similar
Economic Development RCED/ AIMD- 00- 130, June 12, 2000 amount of highway
program funds Activities. (38 pages). National Airspace System: distributed
to each state. GAO Persistent Problems in FAA's New determined that the
quality of In 1995, GAO identified federal Navigation System Highlight Need
for information developed by the Treasury programs that supported economic
Periodic Reevaluation. Department and FHWA is more critical development to
determine if these than ever before in determining programs would more
directly fund The Federal Aviation Administration accurate funding amounts
to be economic development activities,

(FAA) relies on a ground- based distributed to the states each year.
including the level of financial support navigation system that uses various
that they provide, and compared types of equipment to assist pilots in RCED/
GGD- 00- 79, Feb. 14, 2000 (90 selected aspects of these programs,
navigating their assigned routes and to pages). Northern Mariana Islands:
such as program applicants, to identify provide them with guidance for
Garment and Tourist Industries Play a areas of potential overlap. Ten
landing their aircraft safely in different Dominant Role in the
Commonwealth's agencies and 27 subagency units types of weather. But this
system is Economy.

administer 73 programs that can be aging and limited in its geographic used
to support one or more of the six coverage. FAA is planning to transition
The Commonwealth of the Northern activities that GAO identified as being
from its ground- based system to a Mariana Islands is a U. S. territory with
directly related to economic satellite- based system using radio
commonwealth status in the western development. Specifically, for 30 of the
signals generated by the Global Pacific. The covenant establishing the

programs-- those for which, agencies Positioning System (GPS). In
Commonwealth of the Northern could provide more detailed obligation

information-- about $7 billion was Biotechnology is changing the face of
activities but have been paid in

obligated to support one or more of agriculture, with farmers adopting
Russian taxes, and the estimated cost the six economic development
genetically modified seeds at to complete the program. The activities for
fiscal year 1999. In each unprecedented rates. The global area Department of
Energy has identified of the six activity areas, GAO identified planted with
these seeds increased 332 buildings in Russia and other programs that fund a
similar activity more than fifteenfold between 1996

newly independent states that require and also have the same applicants. and
1998. The genetically modified nuclear security systems. As of However, GAO
identified overlap seeds that are the most widely grown February 2000,
Energy had installed

among many federal programs that are herbicide-- tolerant soybeans and
security systems in 113 buildings, most support economic development.
insect- resistant corn-- specifically,

of which contained small amounts of Additional information is needed to
Roundup Ready soybeans and Bacillus nuclear material suitable for use in
determine whether that overlap

thuringiensis (Bt) corn. Farmers in the weapons. This report addresses the
resulted in the inefficient or ineffective

United States and Argentina have been effectiveness of the Department of
delivery of the programs involved. at the forefront of adopting this new
Energy's Material Protection, Control, seed technology. Although genetically
and Accounting Program in reducing RCED/ NSIAD- 00- 42, Dec. 10, 1999
modified seeds can be a powerful

the proliferation risk posed by the (35 pages). Federal Facilities: weapon
in a farmer's arsenal of weed theft or diversion of nuclear material
Alternative Land Uses Could Save control and insect protection tools,

and the ability of Russia and the newly Water at Fallon Naval Air Station,
these seeds have typically sold for a independent states to operate and
Nevada.

premium over conventional varieties. maintain the upgraded security U. S.
farmers have raised concerns systems. The Navy, which runs the Fallon Naval
about the pricing of genetically Air Station in Nevada, uses large modified
seeds. This report provides Testi mony amounts of water-- in a region where
information on the (1) prices of water is scarce-- to manage the land
Roundup Ready soybean seeds and Bt T- GGD/ RCED- 00- 134, Mar. 22, 2000
around its runways. Since the 1950s, corn seeds in the United States and

(11 pages). Managing for Results: the Navy has maintained a "greenbelt"
Argentina and (2) major reasons for

Challenges in Producing Credible at the air station that consists of any
price differences between the two Performance Information, by J. acreage
leased to local farmers who countries for these seeds. Christopher Mihm,
Associate Director, grow irrigated crops on the land. In the

Federal Management and Workforce Navy's view, the "greenbelt" protects

RCED/ NSIAD- 00- 82, Mar. 6, 2000 (30 Issues, before the Oversight, the
facility from fires, lowers the

pages). Nuclear Nonproliferation: Investigations, and Emergency chance of
bird strikes or other damage Limited Progress in Improving Nuclear
Management Subcommittee, House to aircraft from foreign objects, and

Material Security in Russia and the Committee on Transportation and controls
dust. Since 1990, the Navy has Newly Independent States. Infrastructure.
used about 1. 6 billion gallons of surface water to irrigate this land each

Safeguarding nuclear material that can This testimony presents information

year. This report provides information be used in nuclear weapons is a on
the challenges that federal agencies on (1) the aviation safety and

primary national security concern of face in producing credible operational
requirements for the the United States, Russia, and other performance
information and how runway protection zone at Fallon, (2) newly independent
states of the those challenges may affect the alternative land used
strategies

former Soviet Union. With the performance reporting. GAO recently that
Fallon identified in response to dissolution of the Soviet Union, Russia

reported that it is unlikely that congressional direction and how it and
other newly independent states

agencies will have the reliable evaluated them, and (3) the current
inherited about 650 metric tons of information needed to assess whether land
use strategies at five military highly enriched uranium and goals are being
met or specifically how facilities and two commercial airports plutonium in
forms that are attractive performance can be improved. (See that operate in
similar environments. to thieves. This report discusses (1) GAO/ GGD- 00-
52, Feb. 2000.) This the number of buildings that have testimony (1)
provides a

RCED/ NSIAD- 00- 55, Jan. 21, 2000 received nuclear material security
governmentwide perspective on the (25 pages). Biotechnology: systems and the
amount of nuclear credibility of agencies' performance Information on Prices
of Genetically

material that is protected under those information; (2) discusses some of
the Modified Seeds in the United States systems and (2) the program's costs
so

challenges faced by agencies, and Argentina. far, the amount of program
funds that including the Department of did not go directly to program
Transportation, the Environmental

Protection Agency, and the General found that Micronesia and the their
customers. Congress made Services Administration, in producing

Marshall Islands spent about $1. 6 significant changes in the way that the
credible performance data; and (3) billion in Compact funds on general
Environmental Protection Agency highlights how agencies can use their
government operations, capital (EPA) is to set drinking water quality
performance reports to address data projects, and targeted sectors, such as
standards for public water systems. credibility issues.

energy and communications, from This report compares EPA's budget fiscal
years 1987 through 1998. requests for drinking water research T- NSIAD/
RCED- 00- 119, Mar. 6, 2000 Micronesia and the Marshall Islands during
fiscal years 1997 through 2000 (13 pages). Weapons of Mass have made some
progress in achieving

with the amounts authorized by law; Destruction: U. S. Efforts to Reduce
economic self- sufficiency since 1987, provides the views of stakeholders on
Threats From the Former Soviet although both countries remain highly whether
EPA will be able to complete Union, by Jim Johnson, Associate dependent on
U. S. assistance, which the research; and assesses EPA's

Director, International Relations and has maintained artificially high
drinking water research plans, Trade Issues, before the Emerging standards
of living. Compact projected funding, and anticipated Threats and
Capabilities

expenditures so far have led to little accomplishments. This testimony
Subcommittee, Senate Committee on improvement in economic summarizes the
September 1999 Armed Services. development in the two nations.

report, GAO/ RCED- 99- 273. Substantial compact expenditures Since 1991,
Congress has authorized used to maintain high levels of public T- RCED- 00-
19, Oct. 11, 1999 (12 the Departments of Defense, Energy, sector growth have
acted as a

pages). Air Traffic Control: Status of and State to help Russia and other
disincentive to private sector growth. FAA's Implementation of the Display
newly independent states control and Both countries have also spent

System Replacement Project, by eliminate weapons of mass destruction Compact
money on infrastructure Gerald Dillingham, Associate Director, and to reduce
the risks of proliferation.

projects, such as electrical power and Transportation Issues, before the

This testimony draws on 20 reports telecommunications systems, that they
Aviation Subcommittee, House GAO has issued during the past eight

viewed as critical to creating an Committee on Transportation and years on
various aspects of these environment attractive to private Infrastructure.
programs. GAO presents overall businesses. However, the projects have
observations on the costs and impacts

not spurred significant private sector This testimony provides information

of these programs and suggests issues activity. Finally, investment of on
the status of the Federal Aviation that Congress may want to consider as
Compact funds in business ventures Administration's (FAA)

it reviews current and future budget has been a failure. GAO found that
implementation of the Display System requests for these programs. many
projects funded by the Compact Replacement project. This system had problems
because of poor replaces the controllers' workstations T- NSIAD/ RCED- 00-
227, June 28, planning and management, shoddy and other equipment in the
nation's en 2000 (15 pages). Foreign Assistance: construction and
maintenance, or route centers and is one of FAA's major U. S. Funds to Two
Micronesian

misuse of funds. The governments of projects under the air traffic control
Nations Had Little Impact on Micronesia, the Marshall Islands, and
modernization program. GAO's Economic Development and

the United States have provided testimony is based on prior reports
Accountability Over Funds Was limited accountability over Compact and
testimonies. Limited, by Susan S. Westin, Associate

expenditures. Director, International Relations and

T- RCED- 00- 20, Oct. 27, 1999 (13 Trade Issues, before the Asia and the T-
RCED- 00- 15, Oct. 20, 1999 (14 pages). Nuclear Nonproliferation: Pacific
Subcommittee, House pages). Drinking Water Research: Heavy Fuel Oil
Delivered to North Committee on International Relations. Better Planning
Needed to Link Needs Korea Under the Agreed Framework, and Resources, by
Peter F. Guerrero, by Gary L. Jones, Associate Director,

The United States entered into an Director, Environmental Protection
Resources, Community, and Economic international agreement-- the Compact
Issues, before the Health and Development Division, before the of Free
Association-- with the Environment Subcommittee, House House Committee on
International Federated States of Micronesia and the

Committee on Commerce. Relations. Republic of the Marshall Islands in 1986.
This agreement represented a

Public water systems are faced with During the 1990s, North Korea's
continuation of the U. S. financial regulations far more complex than in
nuclear program was suspected of support that had gone to these areas

the past and whose costs could be producing nuclear material capable of
since the end of World War II. GAO significant for both the systems and
being fashioned into nuclear weapons.

To address this threat, the United by Stanley J. Czerwinski, Associate
commercial maritime industry. The

States and North Korea signed the Director, Housing and Community
information presented is drawn from Agreed Framework in October 1994. In
Development Issues, before the Senate an earlier GAO report. (See exchange,
the United States pledged to Committee on Small Business. GAO/ RCED- 99-
260, Sept. 1999.) One help North Korea acquire two lightwater of the
assessments is the Harbor nuclear reactors for electricity Cramming is the
inclusion of Maintenance Tax, whose revenues generation. The United States
also unauthorized, misleading, or deceptive

fund virtually all maintenance pledged to arrange for deliveries of charges
on a consumer's telephone dredging of U. S. ports. GAO provides 500,000
metric tons of heavy fuel oil bill. This testimony, which draws on a
information on (1) the federal agencies

annually until the first reactor was recent GAO report (GAO/ RCED- 99-

that levied assessments in fiscal year completed. The agreement stipulates

193, July 1999), focuses on Internetrelated 1998 compared with fiscal year
1991,

that the fuel oil is to be used for cramming directed at small the number of
assessments levied, and heating and electricity generation.

businesses. GAO discusses (1) the the amounts that they collected; (2)

Reports have alleged that North Korea extent of cramming complaints, (2) who
pays the assessments and in has diverted some of the heavy oil for state and
federal regulatory initiatives which funds they were deposited in purposes
not specified in the Agreed to protect consumers from cramming,

fiscal years 1991 through 1998; and (3) Framework, including resale abroad.
and (3) state and federal enforcement

new federal assessments that have This is GAO's fourth report on issues

actions against companies engaged in been recently proposed. GAO also
related to the implementation of the cramming. discusses the status of the
Harbor Agreed Framework. This testimony Maintenance Trust Fund and its

summarizes the September 1999

T- RCED- 00- 30, Oct. 28, 1999 (13 projected annual balances.

report, GAO/ RCED- 99- 276. pages). Intercity Passenger Rail: Amtrak Faces
Challenges in Improving T- RCED- 00- 88, Feb. 10, 2000 (12

T- RCED- 00- 23, Oct. 27, 1999 (11 Its Financial Condition, by Phyllis F.
pages). Water Quality: Identification pages). Flood Insurance: Information
Scheinberg, Associate Director,

and Remediation of Polluted Waters on Financial Aspects of the National

Transportation Issues, before the Impeded by Data Gaps, by Peter F. Flood
Insurance Program, by Stanley Ground Transportation Subcommittee,

Guerrero, Director, Environmental J. Czerwinski, Associate Director, House
Committee on Transportation Protection Issues, before the Water Housing and
Community Development

and Infrastructure. Resources and Environment Issues, before the Housing and

Subcommittee, House Committee on Community Opportunity This testimony
focuses on Amtrak's Transportation and Infrastructure. Subcommittee, House
Committee on overall financial condition, its progress Banking and Financial
Services. in becoming free of operating

The Clean Water Act has been credited subsidies, its use of Taxpayer Relief
with greatly improving the condition of The flood insurance program run by
Act of 1997 funds, and its need for the waters in the United States. This
the Federal Emergency Management capital investment to improve quality

success comes largely from the control Agency paid about $7 billion in
service. The testimony is based on of pollutant discharges from industrial
insurance claims from fiscal years GAO's July 1999 report on Amtrak's

facilities and wastewater treatment 1986 through 1998. In recent years,
financial condition and its ongoing plants, known as "point" sources of
claims paid by the program have risen work for the Committee. Amtrak's
pollution. Despite this progress, many as a result of a series of storms,
financial condition and its ongoing waters still do not meet water quality
creating a greater drain on the work for the Committee. standards. Of
particular concern are program. This testimony discusses the

"nonpoint" sources of pollution- diffuse (1) financial results of the
program's

T- RCED- 00- 36, Nov. 3, 1999 (8 pages). sources that include various
landbased operations since fiscal year 1993, (2) Commercial Maritime
Industry:

activities, such as timber major factors contributing to the Updated
Information on Federal harvesting, agriculture, and urban financial
difficulties faced by the

Assessments, by John H. Anderson, Jr., development-- which are widely
program, and (3) actions taken by and

Director, Transportation Issues, before considered to be major contributors
to plans of the Federal Insurance the Water Resources and Environment the
nation's remaining water quality Administration that may affect the

Subcommittee, House Committee on problems. The ability to deal with
program's financial health. Transportation and Infrastructure. these
problems cost- effectively depends on states' efforts to monitor

T- RCED- 00- 28, Oct. 25, 1999 (19 This testimony discusses federal their
waters to identify their most pages). Telecommunications:

assessments, user fees, taxes, and serious problems and to develop

Overview of the Cramming Problem, other charges levied on the strategies to
address them. States send

a list to the Environmental Protection The Service also need not inform
Safety Administration to reduce the Agency that identifies waters that fail
Congress of estimated future number of large truck- related fatalities to
meet water quality standards and

operations and maintenance costs and similar efforts to improve the

develop total maximum daily loads when it establishes refuges. When the

safety of commercial passenger (TMDL) for waters on their lists. Service
does establish a refuge,

vehicles, including buses and vans. TMDLs are intended to help restore
however, it estimates the costs of water quality by reducing the amount
future land acquisitions and of T- RCED- 00- 103, Mar. 15, 2000 (9 of
pollution entering a body of water to operations and maintenance for that
pages). Coast Guard: Budget a level that will enable it to meet the specific
refuge. GAO believes that it Challenges for 2001 and Beyond, by standards.
This testimony discusses

would be useful for the Service to John H. Anderson, Jr., Director, (1) the
adequacy of the data for

provide this information to Congress. Transportation Issues, before the

identifying waters for states' lists, (2) Although the Service's automated
Coast Guard and Maritime the adequacy of data for developing priority-
setting system for land and Transportation Subcommittee, House

TMDLs for those waters, and (3) the water projects creates a national
Committee on Transportation and key factors that affect the ability of
priority list, the priorities are (1) based Infrastructure. states to
develop TMDLs. on criteria that are too subjective and

(2) do not represent a true relative This testimony presents information

T- RCED- 00- 89, Feb. 15, 2000 (10 ranking of projects. on the challenges
that the Coast Guard

pages). Fish and Wildlife Service: faces in its fiscal year 2001 and future
Agency Needs to Inform Congress of T- RCED- 00- 101, Mar. 2, 2000 (12 budget
requests. The testimony is Future Costs Associated With Land pages).
Chemical Safety Board: based on recently completed and Acquisitions, by
James E. Wells, Jr., Recent Organizational Changes and

ongoing GAO work on the Coast Director, Energy, Resources, and Status of
Operations, by David Wood, Guard's progress in justifying and Science
Issues, before the Interior and

Associate Director, Environmental managing its Deepwater Project and Related
Agencies Subcommittee, Protection Issues, before the VA, HUD, opportunities
to improve the Coast House Committee on Appropriations. and Independent
Agencies Guard's operating efficiencies. Subcommittee, House Committee on
Since the first national wildlife refuge Appropriations.

T- RCED- 00- 104, Mar. 8, 2000 (26 was established in 1903, the nation's

pages). Mass Transit: Challenges in wildlife refuge system has grown to The
Chemical Safety and Hazard Evaluating, Overseeing, and Funding include 521
refuges on more than 90 Investigation Board investigates the Major Transit
Projects, by Phyllis F. million acres. Members of Congress causes of
accidental chemical releases

Scheinberg, Associate Director, have raised concerns about whether and
promotes preventive measures Transportation Issues, before the the Fish and
Wildlife Service that can be taken by the government Transportation
Subcommittee, House established refuges with migratory

and the private sector. This testimony Committee on Appropriations. bird
funds after Congress denied focuses on the Board's organization,
appropriations from land and water operations, and efforts to update and

This testimony discusses the funds for that purpose. GAO found that develop
plans, policies, and

challenges that the Federal Transit of the 23 refuges that the Service

procedures for accomplishing its Administration (FTA) faces in established
between 1994 and 1998, mission of enhancing the health and evaluating and
overseeing proposed only eight used federal funds--$ 4 safety of workers,
the public, and the mass transit construction projects. million from the
land and water fund.

environment. FTA's performance in this area affects 6 No migratory bird
funds were used. million people who depend on transit The remaining 15
refuges were T- RCED- 00- 102, Mar. 2, 2000 (10 every day and influences how
well the

established with land that was pages). Commercial Motor Vehicles:

federal government's transit donated, transferred, or exchanged. Significant
Actions Remain to Improve investment is spent. The Service is not currently
required to Truck Safety, by Phyllis F. Scheinberg,

inform Congress of refuges established Associate Director, Transportation T-
RCED- 00- 105, Mar. 10, 2000 (8 through donations or other means Issues,
before the Transportation and pages). Federal Land Management: outside the
appropriations process at Related Agencies Subcommittee,

Baca Ranch Appraisal Land the time they are established. As a House
Committee on Appropriations.

Acquisition Issues, by Barry T. Hill, result, congressional appropriations

Associate Director, Energy, Resources, committees may be unaware of these
This testimony discusses efforts being

and Science Issues, before the Forests refuges until the Service later asks
for undertaken by the Department of and Public Land Management land and
water funds to expand them.

Transportation's Federal Motor Carrier

Subcommittee, Senate Committee on nonproliferation, and naval reactors T-
RCED- 00- 122, Mar. 15, 2000 (10 Energy and Natural Resources. programs.
pages). Voluntary Consensus

Standards: Agencies' Compliance With The privately owned Baca Ranch

T- RCED- 00- 115, Mar. 9, 2000 (9 the National Technology Transfer and
covers nearly 95, 000 acres in northern pages). Nuclear Regulation:

Advancement Act, by James E. Wells, New Mexico. The Forest Service wants

Regulatory and Cultural Changes Jr., Director, Energy, Resources, and

to buy the ranch because it contains a Challenge NRC, by Gary L. Jones,
Science Issues, before the Technology

diversity of natural features and is Associate Director, Energy, Resources,

Subcommittee, House Committee on almost completely surrounded by the and
Science Issues, before the Clean Science. Santa Fe National Forest. The
ranch Air, Wetlands, Private Property and owners had the property appraised
in Nuclear Safety Subcommittee, Senate This testimony discusses information
September 1998 by certified appraisers Committee on Environment and Public

that GAO obtained from several who concluded that the land's fair Works.
federal agencies on the legislative market value was $101 million-- or
history of the National Technology $1, 061 per acre. This report discusses

This testimony discusses (1) the views Transfer and Advancement Act and the

the extent to which the value of the Nuclear Regulatory Commission reporting
requirements for federal established by the owner's appraisal

(NRC) staff on the quality of the work agencies. GAO focuses on two was
consistent with the comparable NRC performs, NRC's management of

agencies' activities in carrying out property sales data presented in the

and the staff's involvement in the their oversight responsibilities under
appraisal and in the Services' market changes occurring in the agency, and
the act, their efforts in reporting their study and other key factors that
the move to a risk- informed regulatory standards activities, and the
progress influenced the appraisal's final

approach and (2) the status of NRC's made specifically by the Department
outcome. GAO concludes that efforts to develop a comprehensive

of Defense and the Environmental although the owner's appraisal of the
strategy to implement a risk- informed

Protection Agency in complying with Baca Ranch's value complied with
regulatory approach. the act. federal appraisal standards, the appraised
value is higher than

T- RCED- 00- 116, Mar. 15, 2000 (13

T- RCED- 00- 123, Mar. 14, 2000 (9 supported solely by sales of pages).
Intercity Passenger Rail: pages). Nuclear Security: Security comparable
properties presented in Increasing Amtrak's Accountability for Issues At DOE
and Its Newly Created the appraisal and in the Service's Its Taxpayer Relief
Act Funds, by National Nuclear Security market study and reflects a premium.
Phyllis F. Scheinberg, Associate Administration, by Gary L. Jones, This
testimony summarizes the March Director, Transportation Issues, before
Associate Director, Energy, Resources, 2000 GAO report, GAO/ RCED- 00- 76.

the Transportation and Related and Science Issues, before the Energy
Agencies Subcommittee, House

and Power Subcommittee, House T- RCED- 00- 113, Mar. 2, 2000 (10 Committee
on Appropriations.

Committee on Commerce, and pages). Department of Energy: Views

Oversight and Investigations on DOE's Plan to Establish the This report
reviews Amtrak's use of Subcommittee, House Committee on National Nuclear
Security the Taxpayer Relief Act (TRA) funds. Commerce.

Administration, by Gary L. Jones, Specifically, GAO discusses (1) how
Associate Director, Energy, Resources, much Amtrak has spent in TRA funds
GAO provides information on the and Science Issues, before the and what
types of activities it has

Department of Energy's and the Department of Energy Reorganization

funded, (2) whether Amtrak has used National Nuclear Security Special
Oversight Panel, House TRA funds in accordance with the act,

Administration's security programs to Committee on Armed Services.

(3) what the roles of the Amtrak protect against theft, sabotage, Reform
Council and the Internal terrorism, and other risks to national This
testimony is based on many Revenue Service have been in security at its
facilities. GAO's reviews of the Department of Energy monitoring Amtrak's
use of the funds, testimony focuses on oversight of and GAO's past and
ongoing work on a

and (4) whether Amtrak fully reports safeguards and security programs at
wide range of DOE programs. GAO its use of the funds. Among other

Energy and security issues with the provides its observations on DOE's

things, GAO found that through June Security Administration. Implementation
Plan for the newly 1999, Amtrak reported that it had spent created National
Nuclear Security about $1. 3 billion of the $2. 2 billion

T- RCED- 00- 125, Mar. 16, 2000 (12 Administration, which is responsible
provided under TRA. This testimony pages). Aviation Security: Slow for the
nation's nuclear weapons, summarizes the February 2000 GAO Progress in
Addressing Long- Standing report, GAO/ RCED/ AIMD- 00- 78. Screener
Performance Problems, by

Gerald Dillingham, Associate Director, objectives and (2) what actions EPA
is justifications for fiscal years 1999 and Transportation Issues, before
the

taking to improve its workforce 2000 with the preceding years, the

Aviation Subcommittee, House planning. actions EPA took to improve the
Committee on Transportation and clarity and comparability of the fiscal
Infrastructure. T- RCED- 00- 131, Mar. 23, 2000 (13 years 2000 and 2001
justifications, and pages). Water Quality: Identification aspects of the
fiscal year 2001 Securing an air transportation system and Remediation of
Polluted Waters

justification that still inhibit clear the size of the United States'-- one
with Impeded by Data Gaps, by Peter F. comparisons with prior year budgets.
hundreds of airports, thousands of Guerrero, Director, Environmental

aircraft, and tens of thousands of Protection Issues, before the Drinking T-
RCED- 00- 135, Mar. 22, 2000 (10 flights daily carrying millions of Water,
Fisheries, and Wildlife pages). Department of Energy: Views passengers and
pieces of luggage-- is a Subcommittee, Senate Committee on on Proposed Civil
Penalties, Security daunting task. Concerns have been Environment and Public
Works.

Oversight, and External Safety raised for many years by GAO and Regulation
Legislation, by Gary L. others about the effectiveness of This testimony
provides information Jones, Associate Director, Energy, airport screening
checkpoints and the

on the adequacy of the data that the Resources, and Science Issues, before
persons who operate them. This Environmental Protection Agency the Energy
and Power Subcommittee, testimony discusses (1) the causes of (EPA) and the
states have for making

House Committee on Commerce. screener performance problems in critical water
quality decisions as detecting threat objects; (2) the status required by
the Clean Water Act. In GAO provides its views on the of efforts being made
by the Federal

summary, GAO found that only six following three bills, which are Aviation
Administration to address

states have most of the data they need intended to improve worker and them;
and (3) compares the screening to assess their waters. The states

nuclear facility safety and health as practices of five other countries-
report that they have much more of the well as enhance security for the
Belgium, Canada, France, the

data they need to develop total Department of Energy (DOE): (1) H. R.
Netherlands, and the United Kingdom- with

maximum daily loads (TMDL) for 3383, which would amend the Atomic those of
the United States. pollution problems caused by point Energy Act by
eliminating the sources than nonpoint sources. The exemption that currently
allows

T- RCED- 00- 129, Mar. 23, 2000 (13 states have been developing TMDLs
certain nonprofit contractors to avoid pages). Human Capital: Observations
for waters polluted by point sources

paying civil penalties if they violate on EPA's Efforts to Implement a

for many years and, therefore, have DOE's nuclear safety rules; (2) H. R.
Workforce Planning Strategy, by Peter expertise in analyzing these types of
3906, which would legislatively F. Guerrero, Director, Environmental
pollution problems. establish an office of independent Protection Issues,
before the VA, HUD,

security oversight within DOE that and Independent Agencies T- RCED- 00-
132, Mar. 23, 2000 (10 reports directly to the Secretary of Subcommittee,
Senate Committee on pages). Environmental Protection Energy; and (3) H. R.
3907, which Appropriations. Agency: Comparing Annual Budgets would eliminate
self- regulation of for Science and Technology, by David

health and safety activities at DOE by This testimony presents GAO's Wood,
Associate Director,

authorizing the Nuclear Regulatory observations on the Environmental
Environmental Protection Issues, Commission to regulate and enforce
Protection Agency's (EPA) efforts to before the Energy and Environment
nuclear safety and the Occupational determine the workforce it needs to
Subcommittee, House Committee on Safety and Health Administration to meet
its strategic goals and objectives.

Science. regulate and enforce occupational During the past decade, when many
health and safety for all DOE facilities. agencies were cutting their
staffing The Environmental Protection levels, EPA's workforce grew by about
Agency's (EPA) budget justifications T- RCED- 00- 136, June 15, 2000 (8 18
percent, even though the states

for fiscal years 1999, 2000, and 2001 pages). Park Service: Need to Address
were assuming more responsibility for

differ significantly from the agency's Key Management Problems That

federal environmental programs and justifications for fiscal year 1998 and

Plague the Concessions Program, by enforcement efforts. Members of earlier
years because they were Barry T. Hill, Associate Director, Congress have
raised concerns about organized according to the agency's

Energy, Resources, and Science Issues, this growth. GAO discusses (1) how

strategic goals and objectives. This before the Parks, Historic Preservation
EPA determines the number of testimony discusses the difficulties and
Recreation Subcommittee, Senate employees and competencies needed that GAO
experienced in comparing Committee on Energy and Natural to carry out its
strategic goals and EPA's Science and Technology budget Resources.

GAO discusses the management of the in coordinating land acquisition wide-
ranging species, or Park Service's concessions program.

efforts. Without a plan, the Task Force socioeconomic, such as the supply of
GAO's comments are based primarily cannot (1) determine how much timber or
recreational opportunities. on two reports-- one reviewed the

property will be needed to achieve its condition of lodging facilities in 10
goals, (2) estimate the full cost to buy T- RCED- 00- 147, Apr. 12, 2000 (19
national parks and the other addressed

this property, (3) measure progress in pages). Chemical Safety Board: key
management problems in the acquiring lands for the restoration, or

Realigned Management Faces Serious concessions program and the options (4)
increase the likelihood that the

Challenges, by David Wood, Associate available to address them. GAO found
lands acquired are those that are most

Director, Environmental Protection shortcomings in the agency's overall
needed. This information is an Issues, before the VA, HUD, and approach to
managing the concessions

important part of the status reports Independent Agencies Subcommittee,
program that center on three areas: (1) sent to Congress and Florida, which
Senate Committee on Appropriations. the inadequate qualifications and

are jointly funding the restoration training of the agency's concessions
effort. The Interior Department The Chemical Safety and Hazard specialists
and concessions developed a cost- sharing policy under Investigation Board
works to enhance contracting staff, (2) the agency's outof- which Florida is
to match the federal the health and safety of the public,

date practices in handling its funds dollar for dollar. Interior has

workers, and the environment by contracts workload as well as its approved
four grants, but it waived the

determining the causes of accidental chronic backlog of expired contracts,
matching requirements or accepted chemical releases and promoting and (3) a
lack of accountability within lands in place of money for three of the
preventive measures by the private the concessions program.

grants. Florida had already acquired or and public sectors. This testimony
was in the process of acquiring the provides information on the Board's

T- RCED- 00- 137, Apr. 5, 2000 (8 lands that it used for matching budget
request for fiscal year 2001. pages). South Florida Ecosystem

purposes. Had Interior consistently Restoration: A Land Acquisition Plan Is
applied its cost- sharing policy, GAO

T- RCED- 00- 157, Apr. 25, 2000 (8 Needed to Supplement the Strategic
estimates that an additional $77

pages). Transit Grants: Department of Plan Being Developed, by James E.
million would have been available to Labor's Certification Process, by John
Wells, Jr., Director, Energy, Resources, buy land. This testimony summarizes
H. Anderson, Jr., Director,

and Science Issues, before the Interior the April 2000 report, GAO/ RCED-
0084, Transportation Issues, before the

and Related Agencies Subcommittee, Apr. 5 (67 pages). Senate Committee on
Banking,

House Committee on Appropriations. Housing and Urban Affairs. T- RCED- 00-
146, Apr. 11, 2000 (9 The Florida Ecosystem Restoration pages). Forest
Service: Broad- Scale About $42 billion in federal funding Initiative is a
complex, long- term effort Assessments Could Be Better

has been set aside for transit programs to restore the ecosystem of South
Integrated Into the Forest Planning through fiscal year 2003. This money is
Florida, including the Everglades. The

Process, by Barry T. Hill, Associate being provided to state and local
Initiative involves federal, state, and

Director, Energy, Resources, and transportation authorities in the form
local governments; tribal groups; and Science Issues, before the Forests and

of grants to build, acquire, improve, private interests. The South Florida
Forest Health Subcommittee, House and operate transit systems. But Ecosystem
Task Force was created in Committee on Resources. before the Department of
1993 to coordinate ongoing federal Transportation Departments' Federal
restoration activities. Although land This testimony discusses the

Transit Administration can release acquisition is critical to the success of
integration of broad- scale assessments funds to grant applicants, the the
restoration effort, this ecosystem is into the process used by the

Department of Labor must certify that so large that not all of the lands
within Department of Agriculture's Forest adequate arrangements are in place
to it can be bought and preserved. A Service to amend or revise its forest
protect the interests of employees recent GAO report concluded that a plans.
Broad- scale assessments collect affected by the assistance. This strategic
plan outlining the steps and analyze data and then draw testimony (1)
describes the involved in restoring the ecosystem conclusions about issues
and

Department of Labor's process for would increase the Initiative's chance
conditions that extend beyond the issuing certifications for grant of
success. (See GAO/ RCED- 99- 121, administrative boundaries of a applicants
and discusses how the Apr. 1999.) Similarly, a land acquisition national
forest. These issues can be Department defines and calculates plan that
clearly explains the Task ecological, such as the threat of how long it
takes to issue certifications Force's needs and priorities to federal
catastrophic wildfire, infestations by and (2) discusses trends and factors
and state agencies would be valuable insects and disease, and the health of

affecting the length of the certification Management and Marketing
Amendments of 1990 established new process.

Contractors, by Stanley J. Czerwinski, programs and made major changes in
Associate Director, Housing and

the ways that air pollution is T- RCED- 00- 163, May 2, 2000 (10 Community
Development Issues, controlled. The amendments require pages). Environmental
Protection:

before the Housing and Transportation the Environmental Protection Agency
Collaborative EPA- State Effort Needed Subcommittee, Senate Committee on
(EPA) to take several steps and specify to Improve Performance Partnership

Banking, Housing, and Urban Affairs. a deadline for many of them. Most of
System, by Peter F. Guerrero, Director,

these requirements are found in the Environmental Protection Issues,

The Department of Housing and Urban amendments' first six titles; EPA has

before the Senate Committee on Development (HUD) introduced its

identified 538 such requirements, 361 Environment and Public Works.
management and marketing contracts

of which have a statutory deadline. nationwide last year as a way to The
amendments also set deadlines for This testimony discusses GAO's recent

dispose of the inventory of singlefamily states and local air pollution
control

assessment of the National properties that HUD acquires agencies to respond
to the rules

Environmental Performance through foreclosures. The contractors

promulgated by EPA. This report (1) Partnership System. The system was

are responsible for all management provides information on the status of
established by a May 1995 agreement and marketing activities, ranging from
EPA's implementation of the between the Environmental Protection inspecting
the properties to ensure requirements established by the 1990

Agency and the states as a new that they are presentable to listing and

amendments and (2) obtains views framework for improving their selling the
properties. HUD has

from state governments, local working relationship, for improving
experienced widespread problems programs, industries that are regulated the
effectiveness of the states' with the management and marketing under the
act, and environmental environmental programs. Under the contracts since
they started in April advocacy groups on issues that have program, a state
and EPA may enter 1999. Property maintenance and either helped or hindered
the into an agreement that identifies the security, which was a problem
under implementation of the 1990 state's environmental goals and

HUD's previous property disposition amendments. This testimony priorities
and how both the agency and approach, remains a significant

summarizes the April 2000 report state officials are to address them. The
problem. Also, older properties in GAO/ RCED- 00- 72. two sides may also
agree on a

HUD's inventory have accumulated as Performance Partnership Grant, which

the contractors have focused their T- RCED- 00- 185, May 25, 2000 (15 is
intended to allow the state greater

sales efforts on the newly acquired, pages). Essential Air Service: Changes

flexibility in targeting limited more saleable properties. In addition, in
Passenger Traffic, Subsidy Levels,

resources to meet its most pressing while HUD encourages contractors to and
Air Carrier Costs, by John H. needs. GAO (1) identifies the status of sell
properties quickly, it does not Anderson, Jr., Director, Transportation
grants and agreements made under the

provide incentives for the contractors Issues, before the Aviation system
between EPA and participating

to focus on properties that have been Subcommittee, House Committee on
states, (2) examines the progress that in inventory for a long period of
time.

Transportation and Infrastructure. EPA and the states have made in This
testimony summarizes the May developing results- oriented 2000 report, GAO/
RCED- 00- 117. More than two decades have passed performance measures to be
since Congress phased out the federal incorporated into system agreements

T- RCED- 00- 183, May 17, 2000 (13 government's control over airfares and

and grants to the states, (3) examines pages). Air Pollution: Implementation
service. Concerned that air service to how EPA oversight may or may not of
the Clean Air Act Amendments of some small communities would suffer have
been changing in states that were 1990, by David Wood, Associate

in a deregulated environment, participating in the system, and (4)

Director, Environmental Protection Congress established the Essential Air
discusses the extent to which the use Issues, before the Clean Air,
Wetlands, Service (EAS) program in 1978 and of these performance partnership
Private Property and Nuclear Safety made special provisions for providing
agreements and grants had achieved

Subcommittee, Senate Committee on this service in Alaska. The goal of the
the benefits envisioned for the states Environment and Public Works. EAS
program, administered by the and the public. Department of Transportation
(DOT), The Clean Air Act, last reauthorized is to ensure that small
communities

T- RCED- 00- 180, May 16, 2000 (12 and amended by the Congress in 1990, that
had received scheduled passenger pages). Single- Family Housing: provides
for several related programs air service before deregulation

Stronger Measures Needed to designed to protect health and control continue
to have access to air Encourage Better Performance by air pollution. The
Clean Air Act transportation. DOT does this by

awarding subsidies to carriers willing the supportive housing program, the
Investigations, Senate Committee on to provide service to communities that
shelter plus care program, and the Governmental Affairs. would not otherwise
receive it. Section 8 single- room occupancy Congress increased the
program's

program. For these four programs, Every year, the Department of Housing
annual funding to $50 million in fiscal HUD provides funds to state and
local and Urban Development (HUD), year 1998 and directed that overflight
groups either through formula or

through the Federal Housing fees not obligated on the EAS program
competitive grants so that

Administration (FHA), insures billions be used to pay for rural air safety
communities can develop housing and of dollars in home mortgage loans
projects. This report reviews the services for the homeless. This made by
private lenders. During fiscal program and determines whether all

testimony discusses the (1) different year 1999, FHA insured 1.3 million
communities were receiving the

program requirements for these four mortgages valued at about $124 billion.
subsidized service to which they were programs and the coordination and
Recent cases of mortgage fraud across entitled and whether the increase in
administrative challenges that they

the country have raised concerns funding had been made available for pose
and (2) actions that HUD has

about HUD's oversight of these rural air safety projects. GAO (1) taken to
overcome these challenges. lenders. This report provides determines how DOT
applied criteria information on HUD's oversight of to decide which
communities would

T- RCED- 00- 188, May 24, 2000 (8 lenders participating in FHA's receive
subsidized air service, (2) pages). Park Service: Need to Address mortgage
insurance programs for describes changes in the level of Management Problems
That Plague single- family homes. Among other subsidies provided to EAS-
eligible the Concessions Program, by Barry T. things, GAO found that 12 of
36 lenders

communities in fiscal year 1999 Hill, Associate Director, Energy,

had received 4 or more "poor" ratings relative to that provided in 1995, (3)

Resources, and Science Issues, before from HUD's homeownership centers
identifies why the level of subsidies

the House Committee on Budget. for their last 15 preclosing reviews. In
changed between 1995 and 1999, and

addition, the homeownership centers' (4) determines whether DOT applied GAO
discusses the management of the monitoring of lenders does not any of the
increase in program funding Park Service's concessions program.

adequately focus on the lenders and to rural air safety projects. This GAO's
comments are based primarily loans that pose the greatest insurance
testimony summarizes the April 2000

on two reports-- one reviewed the risks to HUD. This testimony report, GAO/
RCED- 00- 34. condition of lodging facilities in 10 summarizes the April
2000 report, national parks and the other reviewed GAO/ RCED- 00- 112. T-
RCED- 00- 187, May 23, 2000 (11 key management problems in the

pages). Homelessness: Consolidating concessions program and options T- RCED-
00- 215, June 22, 2000 (15 HUD's McKinney Programs, by Stanley available to
address them. GAO found pages). Nuclear Waste: Observations J. Czerwinski,
Associate Director, shortcomings in the agency's overall

on DOE's Privatization Initiative for Housing and Community Development

approach to managing the concessions Complex Cleanup Projects, by Gary L.
Issues, before the Housing and

program that center on three areas: (1) Jones, Associate Director, Energy,
Transportation Subcommittee, Senate the inadequate qualifications and

Resources, and Science Issues, before Committee on Banking, Housing, and
training of the agency's concessions

the Oversight and Investigations Urban Affairs. specialists and concessions
Subcommittee, House Committee on contracting staff, (2) the agency's outof-
Commerce. Homelessness in America is a complex

date practices in handling its issue. On any given night, about

contracts workload as well as its Cleaning up the radioactively

600, 000 people are homeless. The chronic backlog of expired contracts,
contaminated building, soil, and

population includes various and (3) a lack of accountability within
groundwater resulting from more than

subgroups, such as single adults and the concessions program.

50 years of producing nuclear material families, with a diverse set of
needs, for weapons is a major undertaking for including mental health and
substance

T- RCED- 00- 213, June 29, 2000 (9 the Department of Energy (DOE). DOE abuse
problems as well as other pages). Single- Family Housing: projects that it
will cost as much as disabilities. In 1987, the Congress Stronger Oversight
of FHA Lenders

$195 billion to complete this job and passed the Stewart B. McKinney Could
Reduce HUD's Insurance Risk,

provide long- term monitoring of the Homeless Assistance Act to address

by Stanley J. Czerwinski, Associate remaining sites through 2070. DOE the
multiple needs of homeless people.

Director, Housing and Community primarily contracts with private sector HUD
is responsible for running several Development Issues, before the

firms to clean up these sites. In the key McKinney Act programs, including
Permanent Subcommittee on

past, this effort was generally done the emergency shelter grants program,
under cost- reimbursement contracts

by contractors that managed and Committee on Transportation and

and still meet its standards. The operated many of DOE's facilities.
Infrastructure.

amount of pollution entering the water DOE financed the operations and paid
is then reduced to that level. the contractors regardless of what was The
Federal Aviation Administration's actually accomplished. DOE began its Wide
Area Augmentation System T- RCED- 00- 234, July 12, 2000 (13 privatization
initiative in 1995 as a way (WAAS) is a key part of the agency's

pages). Federal Tort Claims Act: to reduce costs, speed the cleanup of
multibillion dollar effort to modernize Claims History and Issues Affecting
its contaminated sites, and improve the nation's air traffic control system.

Coverage for Tribal Self- Determination contractors' performance. Concerns
Today, FAA relies primarily on a Contracts, by Barry T. Hill, Associate have
surfaced, however, about ground- based navigation system to Director,
Energy, Resources, and whether DOE's privatization initiative help pilots
fly their assigned routes Science Issues, before the Senate has yielded
significant results when and to help them safely land their Committee on
Indian Affairs. applied to its more complex cleanup aircraft in all kinds of
weather. FAA's projects. This testimony discusses (1) current navigation
system is aging,

Under the Indian Self- Determination what DOE has accomplished by however,
and is limited in its and Educational Assistance Act of privatizing such
projects and (2) GAO's

geographic coverage. With its new 1975, tribal employees participate in
observations on the lessons that can navigation system, FAA expects to and
manage programs through

be learned from these efforts. improve the safety of flight operations,
contractual arrangements with the allow the fuel- efficient routing of
Bureau of Indian Affairs and the Indian T- RCED- 00- 225, June 27, 2000 (13

aircraft, and eventually phase out most Health Services. In 1990, through
the pages). Nuclear Waste Cleanup: DOE's

of its existing ground- based navigation Federal Tort Claims Act (FTCA), the
Cleanup Plan for the Paducah, aids. The cost to develop WAAS has

federal government permanently Kentucky Site Faces Uncertainties and

risen more than $500 million, primarily assumed the liability for accidents
or Excludes Costly Activities, by Gary L. because of unexpected development

torts caused by tribal contractors. Data Jones, Associate Director, Energy,
costs and additional program support on FTCA claims involving tribal
Resources, and Science Issues, before costs. WAAS has also been delayed for
contractors are not readily available the Energy Research, Development,

more than three years and has had because neither the Department of the
Production and Regulation performance problems. This Interior nor the
Department of Health Subcommittee, Senate Committee on testimony discusses
(1) the difficulties

and Human Services (HHS) requires Energy and Natural Resources. in
developing WAAS, (2) the steps that tracking such claims. However, the

FAA is taking to get the system on two agencies did provide GAO with Recent
allegations that past activities

track, and (3) the next steps for FAA to data on 342 claims with total
damages at the Paducah, Kentucky, uranium

take to help mitigate future delays in of $700 million. About two- thirds of
the enrichment plant endangered the implementing WAAS. claims involved
Bureau programs and health of employees led to renewed one- third involved
Health Service interest in the Department of Energy's

T- RCED- 00- 233, June 28, 2000 (14 programs. The U. S. government may

(DOE) efforts to clean up the site. pages). Clean Water Act: Proposed be
paying more than necessary to GAO's testimony is based on its April

Revisions to EPA Regulations to Clean resolve claims involving tribal 28,
2000, report, which addressed the Up Polluted Waters, by Peter F.
contractors because the tribes use following issues: (1) DOE's planned

Guerrero, Director, Environmental federal funds to buy private liability
activities, cost, and schedule for Protection Issues, before the House

insurance; thus the government is cleaning up the site; (2) the challenges
Committee on Agriculture. paying twice. Neither Interior nor HHS in
accomplishing the current cleanup checks to see whether tribal plan; and (3)
whether the cleanup plan The Total Maximum Daily Load

contractors have private liability includes all areas at the site requiring
(TMDL) program is intended to ensure insurance that could cover their
cleanup. that the nation's waters meet water claims. According to Interior,
quality standards. GAO reports on its

incentives to reduce the number of T- RCED- 00- 229, June 29, 2000 (29
recent analysis of economic and

claims are not present and, from time pages). National Airspace System:
compliance issues associated with two to time, tribal contractors have not
Problems Plaguing the Wide Area recently proposed rulemakings by the
cooperated with Interior in resolving a

Augmentation System and FAA's Environmental Protection Agency claim.
Sometimes, FTCA coverage is Actions to Address Them, by Gerald

(EPA) intended to strengthen its TMDL not a perfect fit for tribal
contractors. Dillingham, Associate Director,

program. TMDLs are used to restore When claims are filed in tribal courts,

Transportation Issues, before the water quality by identifying how much FTCA
has no provision to remove the Aviation Subcommittee, House pollution a body
of water can receive cases to federal court, where they

belong. This testimony summarizes the maintain an accountability record, a
billion dollars to decide that the intank

July 2000 report, GAO/ RCED- 00- 169. assign a unique identification number,
precipitation process would not provide a top secret control officer, work
safely and efficiently as

T- RCED- 00- 236, June 29, 2000 (12 maintain an access record, obtain
designed. Furthermore, (1) the pages). Forest Service: Actions

receipts for internal distribution, and contractor tended to react to
problems

Needed for the Agency to Become obtain approval for reproduction have after
they occurred; (2) DOE lacked More Accountable for Its Performance, all been
discontinued. However, secret

the necessary personnel to ensure by James E. Wells, Jr., Director, and top
secret documents stored

adequate oversight of the project; (3) Energy, Resources, and Science
Issues, outside a DOE protected area require

DOE and Westinghouse began before the Forests and Forest Health additional
protective measures. The

construction before the design was Subcommittee, House Committee on

categories listed above do not apply to completed; and (4) neither
understood Resources. classified documents related to special the cause of
the technical problems, access programs, cryptographic fundamentally because
they did not This testimony discusses (1) the status information, and NATO
classified

understand the chemistry involved in of efforts by the Department of
information. And contractors who the process. Agriculture's Forest Service
to become

operate DOE's facilities may require more accountable for what it additional
controls and procedures to T- RCED- 00- 250, July 19, 2000 (13 accomplishes
with appropriated funds protect and control classified pages). Food
Assistance: Reducing the and (2) the actions still needed for the documents.
Trafficking of Food Stamp Benefits, by agency to provide the Congress and

Lawrence J. Dyckman, Director, Food the public with a better understanding
T- RCED- 00- 248, July 12, 2000 (17 and Agriculture Issues, before the Task
of its performance. GAO's testimony is

pages). Department of Energy: Force on Welfare, House Committee based on the
reports it has issued over Uncertainties and Management on Budget. the last
3 years, as well as ongoing Problems Have Hindered Cleanup at work. Two
Nuclear Waste Sites, by Gary L.

The Food Stamp Program provided Jones, Associate Director, Energy, $16
billion in benefits to about 18 T- RCED- 00- 247, July 11, 2000 (6
Resources, and Science Issues, before million recipients in 1999. As one of
pages). Nuclear Security: Information

the Task Force on Natural Resources the nation's largest assistance on DOE's
Requirements for Protecting and the Environment, House

programs, it is vulnerable to a type of and Controlling Classified
Documents, Committee on the Budget.

fraud and abuse know as "trafficking" by James E. Wells, Jr., Director,
exchanging food stamps for cash or Energy, Resources, and Science Issues,
This testimony describes the

nonfood items. About 70 percent of all before the Oversight and challenges
and uncertainties facing the food stamp benefits are now provided
Investigations Subcommittee, House

Department of Energy (DOE) in the electronically through a card used like
Committee on Commerce. Paducah, Kentucky, uranium cleanup

a debit card at the grocery checkout and the oversight and management of
counter. Under federal law, agencies DOE has many procedures designed to the
in- tank precipitation project at may use electronic benefits transfer
protect classified documents, which

Savannah River. DOE expects to (EBT) data to act against traffickers vary
depending on the type of complete the Paducah cleanup by 2010 who violate
the Food Stamp Program. document being protected and the

at a cost of about $1. 3 billion. This testimony suggests that (1) EBT
nature of protection provided where However, billions of dollars and many
data be used alone, without the added the document is stored. During the
years will be needed to address areas

expense of an undercover past 12 years, many minimum at the Paducah site
that are not in the investigation, to take action against requirements for
secret and top secret cleanup plan, such as the nearly 1

traffickers; (2) better debt collection documents have been discontinued.
million cubic feet of waste and scrap in

activities be developed by the The requirement to inventory secret a storage
area and 16 unused and Department of Agriculture's Food and documents every
three years, maintain inactive buildings and structures. By Nutrition
Service to improve its an accountability record, assign a

not including these areas in the plan, collection of financial penalties

unique identification number, provide the Paducah cleanup managers cannot
imposed on traffickers; and (3) all a copy and series designation, obtain

assess risk or plan cleanup on a states delivering benefits receipts for
internal distribution, and

comprehensive basis. Therefore, the electronically analyze EBT data to
obtain approval to reproduce a picture of the cleanup task is distorted.
identify recipients who may have been document were discontinued in 1992. It
took DOE and its contractor, the trafficking food stamp benefits. In 1998,
the requirement to inventory Westinghouse Savannah River top secret
documents annually, Corporation, a decade and nearly half

T- RCED- 00- 252, July 18, 2000 (16 made to finalize a memorandum of
Associate Director, Energy, Resources,

pages). Radiation Standards: understanding between the two, and and Science
Issues, before the Senate Scientific Basis Inconclusive, and EPA

Congress may need to help resolve the Committee on Energy and Natural and
NRC Disagreement Continues, by agencies' disagreement. Costs per site
Resources. Gary L. Jones, Associate Director, could be immense, and the
tighter the Energy, Resources, and Science Issues,

restriction, the higher the cost of The Los Alamos fire, now officially
before the Energy and Environment

cleanup. This testimony summarizes known as the Cerro Grande fire,

Subcommittee, House Committee on the June 2000 report, GAO/ RCED- 00152.

burned more than 48, 000 acres, Science. destroyed hundreds of homes, and
forced the evacuation of more than U. S. regulatory standards to protect T-
RCED- 00- 253, July 19, 2000 (11 18,000 residents. More than 1,000 fire the
public from radiation lack a pages). Park Service: Agency Is Not

fighters were needed to bring the fire conclusively verified scientific
basis. Meeting Its Structural Fire Safety under control. Estimates have
placed In the absence of conclusive data, Responsibilities, by James E.
Wells, Jr.,

total damages at about $1 billion. The scientists have assumed that even the

Director, Energy, Resources, and Los Alamos fire resulted from a

smallest radiation exposure carries a Science Issues, before the Task Force
prescribed fire set by officials of the risk. Some scientists say that this

on Natural Resources and the National Park Service. Ironically, the "linear,
no- threshold hypothesis" is too Environment, House Committee on the

fire was started to clear out vegetative conservative. The National Academy
Budget.

buildup in a forested area of Bandelier of Sciences plans to conclude its
study

National Monument in order to on the risks of low- level radiation in At six
parks GAO visited, structural prevent the very kind of event that 2001. The
Department of Energy began fire activities lacked many of the basic took
place. The Los Alamos fire a 10- year research project on the elements
needed for an effective fire exposed issues that must be addressed effects
of low- level radiation on human

safety effort, including fundamentals for managing prescribed fires. Most of

cells, in part to help verify or disprove such as adequate fire training for
the issues involve procedural gaps or a the linear model. The Environmental

employees, fire inspections, and fire lack of clarity about how policies are
Protection Agency (EPA) and the detection or suppression systems.

to be implemented. GAO questions the Nuclear Regulatory Commission GAO found
these deficiencies occur timing of the Los Alamos burn, which (NRC) have
sometimes differed over principally because local park was set at the
beginning of the wildfire how restrictive U. S. radiation managers are not
required to meet season, in the midst of a three- year protection standards
should be,

minimum structural fire safety drought, and close to populated areas.
particularly about the proposed standards and place structural fire The Los
Alamos fire underscores the disposal of high- level nuclear waste in safety
near the bottom of parks' inherent danger of introducing fire into a
repository at Yucca Mountain and the

priority lists. The Park Service has the nation's forests, particularly in
the cleanup and decommissioning of acknowledged problems in west, to
accomplish forest health or

nuclear facilities. For example, EPA implementing its structural fire safety
other natural resource objectives. Fire applies community drinking water

program and has taken several steps to is difficult to manage, and doing it
limits for radioactive substances to address them. These include (1)
properly requires a great deal of groundwater at nuclear sites; some
developing new agency policies for expertise, planning, knowledge, and

limits are equivalent to fractions of a addressing structural fire safety
skill. For prescribed fires to continue millirem a year. NRC includes
responsibilities, (2) placing specific to enjoy public acceptance and remain
groundwater and other potential minimum fire safety requirements on a viable
tool, the lessons of this fire contamination sources under a less park
managers, and (3) developing a cannot be ignored. Although the Park
restrictive limit of 25 millirem a year process for structural fire
inspections

Service is responsible for the burn that for all means of exposure, which
and assessments of structural fire risks

because the Los Alamos fire, the conforms with internationally at each unit
of the national park lessons of this catastrophe apply to all recommended
radiation protection system. Until these initiatives are federal land
management agencies guidance. Although the National completed, however, park
visitors,

with fire management responsibilities. Academy of Sciences has criticized
employee, buildings, and artifacts are EPA's approach, it recognizes that
EPA

vulnerable to fire.

T- RCED- 00- 261, July 20, 2000 (15 has the authority to set a separate
pages). Small Business: Expectations standard for Yucca Mountain. As for T-
RCED- 00- 257, Aug. 14, 2000 (34 of Firms in SBA's 8( a) Program Are Not
nuclear cleanup and decommissioning pages). Fire Management: Lessons Being
Met, by Stanley J. Czerwinski, sites where both agencies have Learned From
the Cerro Grande (Los Associate Director, Housing and jurisdiction, little
progress has been Alamos) Fire, by Gary L. Jones, Community Development
Issues,

before the Senate Committee on Small problems GAO identified in 1999 were
difficult to meet. Amtrak has new

Business. the same as those reported in 1993.

equipment needs for which it currently GAO had provided options to improve
has no estimates. Between 2000 and The Small Business Administration's

the program's use of administrative 2004, the identified capital investment
8( a) program-- the federal government's funds in its July 1999 testimony.
needs will exceed expected federal primary vehicle for developing small

capital funds by nearly $2 billion. If businesses owned by socially and T-
RCED- 00- 273, Aug. 14, 2000 (16 Amtrak does not reach operational
economically disadvantaged persons- pages). Fire Management: Lessons self-
sufficiency with the next two is not meeting client expectations.

Learned From the Cerro Grande (Los years, federal law requires that the

First, SBA's efforts are not aligned with Alamos) Fire and Actions Needed to
Amtrak Reform Council submit a plan the needs or expectations of 8( a)
Reduce Fire Risks, by Barry T. Hill, to Congress for a restructured
intercity firms. Firms want SBA to provide more Associate Director, Energy,
Resources,

passenger rail system and that Amtrak assistance that will help them obtain
and Science Issues, before the Forests

prepare a plan for its own liquidation. contracts. SBA has stressed business
and Forest Health Subcommittee,

If Amtrak attains operational selfsufficiency, management skills, even
though most House Committee on Resources.

it could require a firms joined the program to obtain 8( a) substantially
higher level of financial contracts. This misalignment of SBA This testimony
focuses on the lessons

support than it now receives to meet efforts and 8( a) firms' needs has been
learned from the Cerro Grande (Los its capital needs and other railroad
further compounded by the fact that Alamos) fire and the actions needed to
retirement expenses. most 8( a) contract dollars go to a small reduce future
fire risks. GAO found number of firms. Second, SBA has no that the Cerro
Grande fire exposed

T- RCED- 00- 286, Sept. 12, 2000 (9 way to tell how well the 8( a) program
policy implementation issues that need pages). U. S. Department of is
working or know the full extent of to be addressed for managing Agriculture:
Problems in Processing business development assistance prescribed fires. GAO
believes that Discrimination Complaints, by Robert provided to firms. SBA is
unable to these procedural gaps and lack of Robertson, Associate Director,
Food measure the 8( a) program's clarity about how policies are

and Agriculture Issues, before the performance in such basic areas as the

implemented affected the planning and Senate Committee on Agriculture, level
of training provided, whether implementation of the Cerro Grande Nutrition,
and Forestry. such training matched firms' needs, or burn. GAO feels more
effective even the amount of 8( a) contracts the cooperation and
coordination among This testimony discusses the U. S. firms obtained. This
testimony agencies is needed to prevent future Department of Agriculture's
(USDA) summarizes the July 2000 reports,

prescribed burn disasters. civil rights program and problems that GAO/ RCED-
00- 196 and GAO/ RCED- 00197.

have delayed its processing of T- RCED- 00- 277, Sept. 26, 2000 (11
discrimination complaints. Longstanding pages). Intercity Passenger Rail:
problems include continuing T- RCED- 00- 262, July 19, 2000 (21 Decisions on
the Future of Amtrak and

management turnover and pages). Fish and Wildlife Service: Use Intercity
Passenger Rail Are reorganizations in USDA's Office of of Federal Aid
Programs' Approaching, by Phyllis F. Scheinberg,

Civil Rights (OCR); inadequate staff Administrative Funds, by Barry T. Hill,
Associate Director, Transportation and managerial expertise; a lack of
Associate Director, Energy, Resources, Issues, before the Senate Committee
clear, up- to- date guidance and and Science Issues, before the on Commerce,
Science and

procedures; and poor working Drinking Water, Fisheries, and Wildlife
Transportation. relationships and communication Subcommittee, Senate
Committee on within OCR and between OCR and Environment and Public Works.
From fiscal years 2000 through 2002,

other USDA entities. Also, USDA has Amtrak needs to save an additional not
consistently used alternative Federal Aid administrative funds are $287
million to reach operational selfsufficiency. dispute resolution techniques
to used within the Fish and Wildlife Amtrak's costs are

address workplace and other disputes Service by such entities as the
expected to increase, and Amtrak has

before they become formal Administrative Grant Program, the a mixed record
in controlling cost employment complaints. In reviewing Director's
Conservation Fund, the growth. Furthermore, Amtrak's ability the draft
report on which this Office of Federal Aid, and regional to realize
substantial revenue testimony was based, USDA agreed offices for purposes of
salaries, travel,

increases and productivity with all of GAO's recommendations. At grants, and
contracts. Funds are also improvements is uncertain. Amtrak the time of this
hearing, however, used for general administrative has substantial short- and
long- term USDA had yet to fully implement any support services. Many of the
capital investment needs that will be of those recommendations. USDA

officials said that the agency has Development, by Stanley J.

This testimony discusses GAO's drafted a long- term improvement plan
Czerwinski, Associate Director,

ongoing work on the implementation to address problems in the program,
Housing and Community Development of the Endangered Species Act by the which
they expect to begin Issues, before the Housing and

U. S. Fish and Wildlife Service's field implementing in October 2000.
Transportation Subcommittee, Senate office in Carlsbad, California.
Committee on Banking, Housing, and Specifically it focuses on how that T-
RCED- 00- 287, Sept. 12, 2000 (17 Urban Affairs. office implemented the
act's provisions pages). Mortgage Financing: Financial

on consultation and habitat Health of the Federal Housing Since 1994, GAO
has included HUD conservation planning, processes that, Administration's
Mutual Mortgage and its programs on its list of programs taken together,
require landowners to Insurance Fund, by Stanley J.

at high risk for waste, fraud, abuse, take various actions to ensure that
Czerwinski, Associate Director, and mismanagement. HUD's problems planned or
ongoing activities will not Housing and Community Development have included
weak internal controls,

result in the taking of a protected Issues, before the Housing and
inadequate information and financial

species. Transportation Subcommittee, Senate management systems, an
ineffective Committee on Banking, Housing, and organizational structure, and
an T- RCED- 00- 294, Sept. 12, 2000 (11 Urban Affairs. insufficient mix of
staff with the

pages). Army Corps of Engineers: An proper skills. HUD has made Assessment
of the Lower Snake River This testimony discusses the financial significant
changes to correct these Dams' Draft Environmental Impact health of the
Mutual Mortgage management challenges. In early 2001,

Statement, by Derek B. Stewart, Insurance Fund managed by the GAO will
assess whether HUD's reform Associate Director, Energy, Resources, Federal
Housing Administration efforts have demonstrated real and

and Science Issues, before the Water (FHA). Through this fund, FHA
sustainable results. If HUD is to and Power Subcommittee, Senate operates a
single- family insurance continue the progress it has made, Committee on
Energy and Natural program-- financed through insurance

achieve the goals it has set for itself, Resources.

premiums at no cost to the American and realize the benefits that can be
taxpayer-- that since 1934 has helped derived from a performance This
testimony summarizes an earlier millions of Americans buy homes. management
framework, it must: (1) GAO report on whether the Corps of FHA's correct
commitments total ensure that top leadership is Engineers followed
applicable nearly a half a trillion dollars. committed to reform; (2)
rigorously procedures and guidelines in preparing Following an economic
downturn in plan for human capital and

their draft environmental impact the 1980s that resulted in severe losses
information technology strategies; and

statement (EIS) for the Lower Snake and a negative economic value, the (3)
provide for greater employee River dams. (See GAO/ RCED- 00- 186, fund's
future was in doubt. Legislation

involvement in reform efforts. HUD July 2000.) The report also reviewed in
the 1990s required that FHA achieve will face additional challenges, such as
the methodology used to analyze and a capital ratio in the fund of 2 percent
developing a true results orientation present the effects of breaching the
by November 2000 and to maintain or and becoming an integrated four Lower
Snake River dams. GAO exceed that ratio at all times

organization that is outwardly focused found that the Corps conducted a
thereafter. The latest actuarial study of on its clients' and stakeholders'
needs.

comprehensive EIS process that the fund puts its capital ratio at 3. 66
Finally, the importance of generally adhered to procedural percent and its
economic value congressional oversight cannot be requirements of relevant
federal laws appears to have reached its highest overstated. Congress should
monitor and other guidelines. In GAO's view, level in at least 20 years.
This management improvement initiatives

the Corps' analysis and presentation of testimony focuses on activities of
the and ensure that these initiatives are the effects of breaching on
electricity program, how fund reserves are implemented successfully.

costs was reasonable; however, GAO estimated and what constitutes an could
not determine the adequate level of reserves, government T- RCED- 00- 293,
Sept. 14, 2000 (17 reasonableness of Corps' estimates on actions that have
or could influence pages). Fish and Wildlife Service: effects on
transportation costs and air the level of reserves, and the impact

Weaknesses in the Management of the quality. that action related to reserve
levels Endangered Species Program could have on the federal budget. Workload
at the Carlsbad, California

T- RCED- 00- 295, Sept. 14, 2000 (6 Field Office, by Derek B. Stewart,
pages). Slotting Fees: Effort to Study T- RCED- 00- 292, Sept. 26, 2000 (13
Associate Director, Energy, Resources, the Use of These Payments in the
pages). Management Challenges:

and Science Issues, before the House Grocery Industry, by Lawrence J.

Department of Housing and Urban Committee on Resources. Dyckman, Director,
Food and

Agriculture Issues, before the Senate reduce hazardous fuels. The media and
however, included a means for Committee on Small Business. others have
attributed much of the reporting cumulative changes in blame for this year's
destructive

projects and costs for the plan as a Slotting fees are payments from
wildfire season to the prolonged

whole or progress in implementing the grocery manufacturers to retailers to
drought that has gripped the interior plan. GAO recommends that the Corps
encourage the introduction of new West. The federal government's

provide for such reporting. This products on retailers' shelves. Much
approach to reducing hazardous fuels testimony summarizes the September
anecdotal information exists on the has evolved over time in response to
report, GAO/ RCED- 00- 235.

use of slotting fees by the industry and new information and events. Both
its impact on small businesses and

Congress and the administration are T- RCED- 00- 298, Sept. 19, 2000 (12
consumers, but little hard evidence is

now prepared to fund an aggressive pages). Drinking Water: Spending
available. This testimony describes

campaign to reduce hazardous fuels. Constraints Could Affect States' GAO's
efforts, working with two

Rather than allocating funds to the Ability to Meet Increasing Program
grocery industry associations, to highest- risk areas, the Forest Service
Requirements, by Peter F. Guerrero, produce a report on the dollar allocates
funds for hazardous fuels

Director, Environmental Protection amounts of slotting fees on several
reduction on the basis of the number Issues, before the Health and food
categories, accounting practices

of acres treated. Environment Subcommittee, House for these fees, and
related company Committee on Commerce. policies and procedures. Because of
T- RCED- 00- 297, Sept. 20, 2000 (10 the sensitive trade practices involved,

pages). Comprehensive Everglades Although the funds available to the no
companies were identified that Restoration Plan: Additional Water

states are enough to allow them to would be willing to participate in
Quality Projects May Be Needed and

meet their responsibilities under the GAO's study. Industry officials

Could Increase Costs, by Barry T. Hill, Safe Drinking Water Act, actual
expressed concern about providing

Associate Director, Energy, Resources, spending by the states have fallen

any outside group with information and Science Issues, before the

short of estimated needs. Factors that they consider sensitive and
Transportation and Infrastructure other than federal funding levels affect
proprietary. Subcommittee, Senate Committee on most states' ability to
implement their

Environment and Public Works. drinking water programs. Most T- RCED- 00-
296, Sept. 13, 2000 (11 important among these factors are

pages). Reducing Wildfire Threats: The Corps of Engineers' spending
constraints at the state level, Funds Should Be Targeted to the
Comprehensive Everglades which have caused staffing shortfalls, Highest Risk
Areas, by Barry T. Hill, Restoration Plan provides a

and a reluctance to divert revolving Associate Director, Energy, Resources,
framework for improving the quality, loan fund resources from needed and
Science Issues, before the Task quantity, timing, and distribution of
infrastructure improvements at local Force on Natural Resources and the
water in the South Florida ecosystem, water systems. Environment, House
Committee on the including the Everglades. This report Budget. discusses the
number and costs of T- RCED- 00- 299, Sept. 25, 2000 (13

projects that will ultimately be needed pages). Packers and Stockyards This
testimony discusses the status of

to address water quality in the Programs: Investigations of efforts to
reduce the future risk of ecosystem. Currently, there are too Competitive
Practices Need catastrophic wildfires to human lives many uncertainties to
provide such an Improvements, by Lawrence J.

and property. GAO examines the estimate. As uncertainties related to
Dyckman, Director, Food and

reason why conditions on federal implementing the plan's projects are
Agriculture Issues, before the

forests and range lands have reached resolved and more information is
Administrative Oversight and the the point that they pose a significant
gathered about the extent of the Courts Subcommittee, Senate risk to nearby
communities and to the

ecosystem's water quality problems, it Committee on the Judiciary.
ecological sustainability of lands and is likely that modifications and
natural resources. They concentrate additions to the plan could increase its

Cattle and hog producers have raised on the history and status of efforts by
total cost over the Corps' current concerns about changes in their the
Forest Service and the Department estimate of $7. 8 billion. The Corps has
industries that affect competition, of the Interior to reduce the risk
acknowledged the level of uncertainty such as mergers among meatpacking
budget- related issues that should be in the plan and has included a process

companies, increased marketing of addressed to better ensure that the for
incorporating project livestock through contracts, and agencies spend
effectively and account

modifications and additions in its greater control by meatpacking

accurately for funds appropriated to future reports to Congress. It has not,
companies over livestock production

and marketing. Under the Packers and million to oversee an estimated 57, 000
This testimony, which draws on two Stockyards Act, the U. S. Department food
establishments and more than recent reports (GAO/ RCED/ AIMD- 00- of
Agriculture (USDA) is responsible 9,000 animal drug and feed 2, Oct. 1999,
and GAO/ RCED- 99- 2, Dec. for monitoring the cattle and hog establishments,
in addition to ensuring 1998) and ongoing GAO work,

industries and halting unfair and the safety of FDA- regulated imported

discusses the status of efforts by the anticompetitive practices. USDA has
foods. Fiscal year 1998 expenditures

Forest Service to achieve assigned this responsibility to the for both
agencies were similar to 1999 accountability for the tax dollars Grain
Inspection, Packers and expenditures. appropriated to it to carry out its

Stockyards Administration (GIPSA). mission. GAO summarizes the (1) Because
of continued concerns about T- RCED/ AIMD- 00- 87, Feb. 3, 2000 actions that
the agency has taken to whether GIPSA is adequately (20 pages). Federal
Aviation improve its financial and performance

protecting competition in the livestock Administration: Challenges in
accountability, (2) remaining hurdles markets, GAO reviewed USDA's efforts
Modernizing the Agency, by Gerald

to those improvements, and (3) to implement the Packers and Dillingham,
Associate Director, strategies that the agency is Stockyards Act. This
report discusses Transportation Issues, before the

developing to overcome these hurdles. the number and status of
Transportation Subcommittee, Senate investigations conducted by GIPSA in
Committee on Appropriations, and

T- RCED/ AIMD- 00- 142, Apr. 6, 2000 response to complaints about

Senate Committee on Budget. (16 pages). Aviation Security: anticompetitive
activity and factors

Vulnerabilities Still Exist in the that affect GIPSA's ability to U. S.
airspace carries by far the largest Aviation Security System, by Gerald
investigate concerns about volume of air traffic in the world-- a
Dillingham, Associate Director, anticompetitive practices. GAO volume that
is expected to rise

Transportation Issues, before the recommends several actions to
significantly within the decade. If not Aviation Subcommittee, Senate
improve GIPSA's investigations,

managed effectively, this projected Committee on Commerce, Science and
including integrating USDA attorneys

growth could affect safety and cause Transportation.

into GIPSA's investigative teams and aviation gridlock. The limited window
adopting more systematic approaches of opportunity to address this situation

This testimony discusses the Federal to its investigative work. This

has prompted the Federal Aviation Aviation Administration's efforts to

testimony summarizes the September Administration (FAA) to undertake
implement and improve security in the

report, GAO/ RCED- 00- 242. efforts to improve its performance and air
traffic control computer systems Congress to provide the agency with and
airport passenger screening

T- RCED- 00- 300, Sept. 20, 2000 (14 greater flexibility in procurement and
checkpoint areas. GAO's testimony is

pages). Food Safety: Overview of personnel matters. Continuing based on
earlier reports on computer Food Safety and Inspection Service
dissatisfaction with FAA's efforts,

security and on ongoing work in this and Food and Drug Administration
however, has led to proposals to area. GAO identifies security problems
Expenditures, by Lawrence J.

overhaul the agency's organizational in both the air traffic control
computer Dyckman, Director, Food and

structure. This testimony (1) highlights systems and in the performance of

Agriculture Issues, before the Senate the key areas that have hampered
checkpoint screeners. Committee on Agriculture, Nutrition, FAA's ability to
achieve desired and Forestry. outcomes, (2) discusses various

T- RCED/ NSIAD- 00- 228, June 29, proposals for restructuring the agency,
2000 (5 pages). Biotechnology: This testimony presents an overview and (3)
describes the steps that FAA Information on Prices of Genetically of GAO's
work on the resources

and Congress can take to help the Modified Seeds in the United States

available to and used by the Food agency address its challenges more and
Argentina, by Robert Robertson, Safety and Inspection Service (FSIS)
effectively and efficiently. Associate Director, Food and and the Food and
Drug Administration

Agriculture Issues, before the House (FDA) for food safety in fiscal years

T- RCED/ AIMD- 00- 93, Feb. 16, 2000 Committee on Agriculture. 1998 and
1999. Overall, the two (11 pages). Forest Service: Status of agencies spent
nearly $1 billion in Efforts to Improve Accountability, by This testimony
discusses the prices of fiscal year 1998 and again in fiscal year Barry T.
Hill, Associate Director,

genetically modified seeds- specifically, 1999 on food safety activities. In
fiscal Energy, Resources, and Science Issues,

Roundup Ready soybean year 1999, FSIS spent $712 million to before the
Interior and Related and Bacillus thuringiensis corn seeds- oversee more
than 6, 000 meat, poultry,

Agencies Subcommittee, House in the United States and Argentina and

egg product, and import Committee on Appropriations. the major reasons for
any identified establishments. FDA spent $260 price differences between the
two

Title Index Abstracts of Reports and Testimony:

Agent Orange: Persisting Problems Anthrax Vaccine: Safety and Efficacy
Fiscal Year 1999 (03/ 01/ 2000),

With Communication of Ranch Hand Issues (10/ 12/ 1999), T- NSIAD- 00- 48
OIMC/ OPA- 00- 1A, OIMC/ OPA- 00- 1B

Study Data and Results (03/ 15/ 2000), T- NSIAD- 00- 117

Anti- Drug Media Campaign: ONDCP Accrual Budgeting: Experiences of Met Most
Mandates, but Evaluations of Other Nations and Implications for the Air
Force Depot Maintenance: Analysis

Impact Are Inconclusive (07/ 31/ 2000), United States (02/ 18/ 2000), AIMD-
00- 57

of Its Financial Operations GGD/ HEHS- 00- 153

(12/ 10/ 1999), AIMD/ NSIAD- 00- 38 Acid Rain: Emissions Trends and

Arms Control: Experience of U. S. Effects in the Eastern United States Air
Force Depot Maintenance: Industry With Chemical Weapons (03/ 09/ 2000),
RCED- 00- 47

Budgeting Difficulties and Operational Convention Inspections (09/ 13/
2000), Inefficiencies (08/ 15/ 2000), T- NSIAD- 00- 249 Acquisition Reform:
DOD's Guidance AIMD/ NSIAD- 00- 185 on Using Section 845 Agreements

Army Corps of Engineers: An Could be Improved (04/ 07/ 2000), Air Pollution:
Emission Sources Assessment of the Draft NSIAD- 00- 33 Regulated by Multiple
Clean Air Act Environmental Impact Statement of Provisions (05/ 31/ 2000),
RCED- 00- 155

the Lower Snake River Dams Acquisition Reform: GSA and VA (07/ 24/ 2000),
RCED- 00- 186 Efforts to Improve Training of Their

Air Pollution: Implementation of the Acquisition Workforces (02/ 18/ 2000),
Clean Air Act Amendments of 1990

Army Corps of Engineers: An GGD- 00- 66 (05/ 17/ 2000), T- RCED- 00- 183

Assessment of the Lower Snake River Dams' Draft Environmental Impact
Advanced Technology Program: Air Pollution: Status of Statement (09/ 12/
2000), Inherent Factors in Selection

Implementation and Issues of the T- RCED- 00- 294

Processional Limit Identification of Clean Air Act Amendments of 1990
Similar Research (04/ 24/ 2000),

(04/ 17/ 2000), RCED- 00- 72 Army National Guard: Enhanced RCED- 00- 114

Brigade Readiness Improved but Air Traffic Control: Status of FAA's
Personnel and Workload Are Problems Adverse Drug Events: Substantial
Implementation of the Display System (06/ 14/ 2000), NSIAD- 00- 114 Problem
but Magnitude Uncertain Replacement Project (10/ 11/ 1999), (02/ 01/ 2000),
T- HEHS- 00- 53

T- RCED- 00- 19 Auditing the Nation's Finances: Fiscal

Year 1999 Results Continue to Adverse Drug Events: The Magnitude Airport
Financing: Use of Funds for Highlight Major Issues Needing of Health Risk Is
Uncertain Because of Capital Improvements at Chicago

Resolution (03/ 31/ 2000), Limited Incidence Data (01/ 18/ 2000),

O'Hare International Airport T- AIMD- 00- 137

HEHS- 00- 21 (09/ 29/ 2000), RCED- 00- 275R

Automated Teller Machines: Issues Adverse Events: Surveillance Systems Alien
Smuggling: Management and

Related to Real- time Fee Disclosure for Adverse Events and Medical Errors
Operational Improvements Needed to (07/ 11/ 2000), GGD/ AIMD- 00- 224 (02/
09/ 2000), T- HEHS- 00- 61

Address Growing Problem (05/ 01/ 2000), GGD- 00- 103 Automobile Fuel
Economy: Potential Agent Orange: Actions Needed to Effects of Increasing the
Corporate Improve Communications of Air Force Alternative Minimum Tax: An
Average Fuel Economy Standards Ranch Hand Study Data and Results

Overview of Its Rationale and Impact (08/ 15/ 2000), RCED- 00- 194 (12/ 17/
1999), NSIAD- 00- 31

on Individual Taxpayers (08/ 15/ 2000), GGD- 00- 180

Aviation and the Environment: Airport Corporations on Community Banks Border
Patrol: Procurement of MD

Operations and Future Growth Present (06/ 23/ 2000), GGD- 00- 159

600N Helicopters Should Be Environmental Challenges Reassessed (09/ 29/
2000), GGD- 00- 201 (08/ 30/ 2000), RCED- 00- 153

Battlefield Automation: Army Needs to Update Fielding Plan for First Bosnia:
Crime and Corruption Aviation and the Environment: Digitized Corps (07/ 25/
2000), Threaten Successful Implementation Avi ation's Effects on the Global
NSIAD- 00- 167

of the Dayton Peace Agreement Atmosphere Are Potentially Significant (07/
19/ 2000), T- NSIAD- 00- 219 and Expected to Grow (02/ 18/ 2000),

Battlefield Automation: Army's RCED- 00- 57

Restructured Land Warrior Program Bosnia Peace Operation: Crime and Needs
More Oversight (12/ 15/ 1999),

Corruption Threaten Successful Aviation and the Environment: FAA's NSIAD-
00- 28

Implementation of the Dayton Peace Role in Major Airport Noise Programs
Agreement (07/ 07/ 2000), NSIAD- 00- 156 (04/ 28/ 2000), RCED- 00- 98

Beef and Lamb: Implications of Labeling by Country of Origin Breast Cancer
Research Stamp: Aviation and the Environment: (01/ 27/ 2000), RCED- 00- 44
Millions Raised for Research, but Federally Authorized Funding for Better
Cost Recovery Criteria Needed Noise- Related Projects (09/ 27/ 2000),
Benefit and Loan Programs: Improved (04/ 28/ 2000), GGD- 00- 80

RCED- 00- 285R Data Sharing Could Enhance Program Integrity (09/ 13/ 2000),
HEHS- 00- 119

Breast Cancer Research Stamp: Aviation and the Environment: Results Millions
Raised for Research, but From a Survey of the Nation's50 Best Practices: A
More Constructive Better Cost Recovery Criteria Needed Busiest Commercial
Service Airports Test Approach Is Key to Better Weapon (05/ 25/ 2000), T-
GGD- 00- 137

(08/ 30/ 2000), RCED- 00- 222 System Outcomes (07/ 31/ 2000),

NSIAD- 00- 199 Budget Issues: Budget Enforcement

Aviation Safety: Safer Skies Initiative Compliance Report (05/ 31/ 2000),

Has Taken Initial Steps to Reduce Bid Protests: Characteristics of Cases
AIMD- 00- 174

Accident Rates by 2007 (06/ 30/ 2000), Filed in Federal Courts (04/ 17/
2000), RCED- 00- 111

GGD/ OGC- 00- 72 Budget Issues: Budgetary Implications

of Selected GAO Work for Fiscal Year Aviation Security: Additional Controls
Biological Weapons: Effort to Reduce 2001 (03/ 31/ 2000), OCG- 00- 8 Needed
to Address Weaknesses in

Former Soviet Threat Offers Benefits, Carriage of Weapons Regulations Poses
New Risks (04/ 28/ 2000), Budget Issues: Budgeting for Inflation (09/ 29/
2000), RCED- 00- 181 NSIAD- 00- 138

in Civilian Agencies (10/ 01/ 1999), AIMD- 00- 14 Aviation Security: Long-
Standing

Biotechnology: Information on Prices Problems Impair Airport Screeners' of
Genetically Modified Seeds in the Budget Issues: Effective Oversight and
Performance (06/ 28/ 2000), RCED- 00- 75

United States and Argentina Budget Discipline Are Essential-- Even (01/ 21/
2000), RCED/ NSIAD- 00- 55 in a Time of Surplus (02/ 01/ 2000), Aviation
Security: Slow Progress in T- AIMD- 00- 73

Addressing Long- Standing Screener Biotechnology: Information on Prices
Performance Problems (03/ 16/ 2000), of Genetically Modified Seeds in the
Budget Process: Biennial Budgeting T- RCED- 00- 125

United States and Argentina for the Federal Government (06/ 29/ 2000), T-
RCED/ NSIAD- 00- 228 (03/ 10/ 2000), T- AIMD- 00- 121 Aviation Security:
Vulnerabilities Still Exist in the Aviation Security System BLM and the
Forest Service: Land Budget Surpluses: Experiences of (04/ 06/ 2000), T-
RCED/ AIMD- 00- 142

Exchanges Need to Reflect Other Nations and Implications for the

Appropriate Value and Serve the United States (11/ 02/ 1999), AIMD- 00- 23

Balkans Security: Current and Public Interest (06/ 22/ 2000), Projected
Factors Affecting Regional RCED- 00- 73

Bureau of Reclamation: Information Stability (04/ 24/ 2000), on Operations
and Maintenance NSIAD- 00- 125BR

Border Patrol Hiring: Despite Recent Activities and Costs at Multipurpose
Initiatives, Fiscal Year 1999Hiring Goal Water Projects Banking Taxation:
Implications of Was Not Met (12/ 17/ 1999), GGD- 00- 39

(05/ 31/ 2000), AIMD- 00- 127 Proposed Revisions Governing S

Bureau of the Public Debt: Areas for Operations (03/ 02/ 2000),

Coast Guard: Budget Challenges for Improvement in Computer Controls T- RCED-
00- 101

2001 and Beyond (03/ 15/ 2000), (08/ 09/ 2000), AIMD- 00- 269 T- RCED- 00-
103 Chemical Weapons Disposal: Campaign Finance Task Force: Improvements
Needed in Program Coast Guard Workforce Mix: Phased- In Problems and
Disagreements Initially Accountability and Financial Conversion of Some
Support Officer Hampered Justice's Investigation Management (05/ 08/ 2000),

Positions Would Produce Savings (05/ 31/ 2000), GGD- 00- 101BR

NSIAD- 00- 80 (03/ 01/ 2000), RCED- 00- 60

Capitol Concerts: Audit of the Receipt Chief Information Officers: Combating
Terrorism: Action Taken

and Use of 1999 Funding (09/ 25/ 2000), Implementing Effective CIO

but Considerable Risks Remain for AIMD- 00- 258

Organizations (03/ 24/ 2000), Forces Overseas (07/ 19/ 2000), T- AIMD- 00-
128

NSIAD- 00- 181 Cash Balance Plans: Implications for Retirement Income (09/
29/ 2000),

Child Care: How Do Military and Combating Terrorism: Chemical and HEHS- 00-
207

Civilian Center Costs Compare? Biological Medical Supplies Are Poorly (10/
14/ 1999), HEHS- 00- 7 Managed (10/ 29/ 1999), CFTC and SEC: Issues Related
to the HEHS/ AIMD- 00- 36 Shad- Johnson Jurisdictional Accord Child Care:
State Efforts to Enforce (04/ 06/ 2000), GGD- 00- 89

Safety and Health Requirements Combating Terrorism: Chemical and (01/ 24/
2000), HEHS- 00- 28

Biological Medical Supplies Are Poorly Charter Schools: Limited Access to
Managed (03/ 08/ 2000), Facility Financing (09/ 12/ 2000), Child Welfare:
New Financing and T- HEHS/ AIMD- 00- 59 HEHS- 00- 163

Service Strategies Hold Promise, but Effects Unknown (07/ 20/ 2000),
Combating Terrorism: Comments on Chemical and Biological Defense: T- HEHS-
00- 158

Bill H. R. 4210 to Manage Selected Chemical Stockpile Emergency
Counterterrorist Programs Preparedness Program for Oregon and Children and
Pesticides: New (05/ 04/ 2000), T- NSIAD- 00- 172 Washington (10/ 26/ 1999),
NSIAD- 00- 13

Approach to Considering Risk Is Partly in Place (09/ 11/ 2000), HEHS- 00-
175 Combating Terrorism: How Five Chemical and Biological Defense: Foreign
Countries Are Organized to Observations on Actions Taken to Children With
Disabilities: Medicaid Combat Terrorism (04/ 07/ 2000), Protect Military
Forces (10/ 20/ 1999),

Can Offer Important Benefits and NSIAD- 00- 85 T- NSIAD- 00- 49

Services (07/ 12/ 2000), T- HEHS- 00- 152 Combating Terrorism: Issues in
Chemical and Biological Defense:

Chronic Fatigue Syndrome: CDC and Managing Counterterrorist Programs

Observations on Nonmedical Chemical NIH Research Activities Are Diverse,
(04/ 06/ 2000), T- NSIAD- 00- 145 and Biological R& D Programs but Agency
Coordination Is Limited (03/ 22/ 2000), T- NSIAD- 00- 130

(06/ 02/ 2000), HEHS- 00- 98 Combating Terrorism: Linking Threats

to Strategies and Resources Chemical and Biological Defense: Civil Air
Patrol: Proposed Agreements

(07/ 26/ 2000), T- NSIAD- 00- 218 Program Planning and Evaluation With the
Air Force Are Intended to Should Follow Results Act Framework

Address Identified Problems Combating Terrorism: Need to (05/ 24/ 2000), T-
NSIAD- 00- 180 (06/ 05/ 2000), NSIAD- 00- 136

Eliminate Duplicate Federal Weapons of Mass Destruction Training Chemical
Safety Board: Improved Civil Rights Division: Selection of (03/ 21/ 2000),
NSIAD- 00- 64

Policies and Additional Oversight Are Cases and Reasons Matters Were Needed
(07/ 11/ 2000), RCED- 00- 192 Closed (09/ 27/ 2000), GGD- 00- 192

Combating Terrorism: Observations on the Threat of Chemical and Biological
Chemical Safety Board: Realigned Clean Water Act: Proposed Revisions
Terrorism (10/ 20/ 1999), T- NSIAD- 00- 50 Management Faces Serious
Challenges

to EPA Regulations to Clean Up (04/ 12/ 2000), T- RCED- 00- 147 Polluted
Waters (06/ 28/ 2000),

Commercial Fisheries: Entry of T- RCED- 00- 233 Fishermen Limits Benefits of
Buyback Chemical Safety Board: Recent Programs (06/ 14/ 2000), RCED- 00- 120
Organizational Changes and Status of

Commercial Maritime Industry: Comprehensive Everglades Contingency
Operations: Providing Updated Information on Federal

Restoration Plan: Additional Water Critical Capabilities Poses Challenges
Assessments (11/ 03/ 1999),

Quality Projects May Be Needed and (07/ 06/ 2000), NSIAD- 00- 164

T- RCED- 00- 36 Could Increase Costs (09/ 14/ 2000),

RCED- 00- 235 Contingent Workers: Incomes and

Commercial Motor Vehicles: Benefits Lag Behind Those of Rest of
Effectiveness of Actions Being Taken Comprehensive Everglades Workforce (06/
30/ 2000), HEHS- 00- 76 to Improve Motor Carrier Safety Is Restoration Plan:
Additional Water Unknown (07/ 17/ 2000), RCED- 00- 189

Quality Projects May Be Needed and Contract Management: A Comparison Could
Increase Costs (09/ 20/ 2000),

of DOD and Commercial Airline Commercial Motor Vehicles: T- RCED- 00- 297
Purchasing Practices (11/ 29/ 1999), Significant Actions Remain to Improve
NSIAD- 00- 22 Truck Safety (03/ 02/ 2000),

Computer Security: Critical Federal T- RCED- 00- 102 Operations and Assets
Remain at Risk Contract Management: DOD Begins (09/ 11/ 2000), T- AIMD- 00-
314

New Effort to Improve Reporting of Commodity Exchange Act: Issues Contract
Service Costs (10/ 13/ 1999), Related to the Regulation of Electronic

Computer Security: FAA Is Addressing NSIAD- 00- 29 Trading Systems (05/ 05/
2000),

Personnel Weaknesses, But Further GGD- 00- 99

Action Is Required (05/ 31/ 2000), Contract Management: DOD's Anthrax AIMD-
00- 169

Vaccine Manufacturer Will Continue to Community Development: Local Need
Financial Assistance Growth Issues-- Federal Opportunities Computer
Security: FAA Needs to (04/ 14/ 2000), T- NSIAD- 00- 140 and Challenges (09/
06/ 2000), Improve Controls Over Use of Foreign RCED- 00- 178

Nationals to Remediate and Review Contract Management: DOD's Use of Software
(12/ 23/ 1999), AIMD- 00- 55

Recovery Auditing (06/ 05/ 2000), Community Health Centers: Adapting NSIAD-
00- 134 to Changing Health Care Environment Confirmation of Political
Appointees: Key to Continued Success

Eliciting Nominees' Views on Contract Management: Few (03/ 10/ 2000), HEHS-
00- 39

Leadership and Management Issues Competing Proposals for Large DOD

(08/ 11/ 2000), GGD- 00- 174 Information Technology Orders Community
Policing: Observations on (03/ 20/ 2000), NSIAD- 00- 56

the COPS Program Midway Through Congressional Oversight: Challenges

Program Implementation (10/ 28/ 1999), for the 21st Century (07/ 20/ 2000),

Contract Management: Pilot Program T- GGD- 00- 33 T- OCG- 00- 11

Needed to Improve DOD Identification of Warranty Claims (10/ 29/ 1999),
Compendium of Budget Accounts: Congressional Oversight: NSIAD- 00- 3 Fiscal
Year 2001 (04/ 01/ 2000),

Opportunities to Address Risks, AIMD- 00- 143 Reduce Costs, and Improve

Conventional Arms Transfers: U. S. Performance (02/ 17/ 2000), Efforts to
Control the Availability of Competitive Contracting: Agencies T- AIMD- 00-
96

Small Arms and Light Weapons Upheld Few Challenges and Appeals

(07/ 18/ 2000), NSIAD- 00- 141 Under the FAIR Act (09/ 29/ 2000),

Consumer Price Index: Update of GGD/ NSIAD- 00- 244 Boskin Commission's
Estimate of Cooperative Research: Results of U. S. Industry Bias( 02/ 01/
2000), GGD- 00- 50

Partnership to Develop a New Competitive Contracting: Preliminary Generation
of Vehicles (03/ 30/ 2000), Issues Regarding FAIR Act Consumer Product
Safety RCED- 00- 81 Implementation (10/ 28/ 1999),

Commission: Additional Steps Needed T- GGD- 00- 34 to Assess Fire Hazards of
Upholstered

Cooperative Threat Reduction: DOD's Furniture (11/ 17/ 1999), HEHS- 00- 3

1997- 98 Reports on Accounting for Competitive Contracting: The Assistance
Were Late and Incomplete Understandability of FAIR Act Contingency
Operations: Army Should (03/ 15/ 2000), NSIAD- 00- 40 Inventories Was
Limited (04/ 14/ 2000),

Do More to Control Contract Cost in GGD- 00- 68 the Balkans (09/ 29/ 2000),

Core Financial System Requirements: NSIAD- 00- 225 Checklist for Reviewing
Systems Under the Federal Financial

Management Improvement Act D. C. Courts: Implementation of Defense
Acquisitions: F/ A- 18E/ F (02/ 01/ 2000), AIMD- 00- 21. 2.2

Personnel Policies Requires Further Aircraft Does Not Meet All Criteria for
Attention From the Courts' Leadership Multiyear Procurement (05/ 26/ 2000),
Crime Technology: Department of (04/ 12/ 2000), GGD- 00- 75BR

NSIAD- 00- 158 Defense Assistance to State and Local Law Enforcement
Agencies DC Courts: Improvements Needed in

Defense Acquisitions: Higher Priority (10/ 12/ 1999), GGD- 00- 14

Accounting for Escrow and Other Needed for Army Operating and Funds (10/ 29/
1999), AIMD/ OGC- 00- 6

Support Cost Reduction Efforts Critical Infrastructure Protection:

(09/ 29/ 2000), NSIAD- 00- 197 Challenges to Building a Debt Collection:
Barring Delinquent Comprehensive Strategy for Taxpayers From Receiving
Federal Defense Acquisitions: Howitzer Information Sharing and Coordination
Contracts and Loan Assistance Program Experiencing Cost Increases

(07/ 26/ 2000), T- AIMD- 00- 268 (05/ 09/ 2000), T- GGD/ AIMD- 00- 167

and Schedule Delays (07/ 28/ 2000), NSIAD- 00- 182 Critical Infrastructure
Protection:

Debt Collection: Treasury Faces Comments on the National Plan for

Challenges in Implementing Its CrossServicing Defense Acquisitions:
Improvements Information Systems Protection Initiative (08/ 04/ 2000),

Needed in Military Space Systems' (02/ 01/ 2000), T- AIMD- 00- 72 AIMD- 00-
234

Planning and Education (05/ 18/ 2000), NSIAD- 00- 81 Critical Infrastructure
Protection:

Debt Collection: Treasury Faces Comments on the Proposed Cyber

Challenges in Implementing Its CrossServicing Defense Acquisitions: Need to
Revise Security Information Act of 2000 Initiative (06/ 08/ 2000),

Acquisition Strategy to Reduce Risk (06/ 22/ 2000), T- AIMD- 00- 229 T-
AIMD- 00- 213

for Joint Air- to- Surface Standoff Missile (04/ 26/ 2000), NSIAD- 00- 75
Critical Infrastructure Protection:

Defense Acquisition: Employing Best Comprehensive Strategy Can Draw on
Practices Can Shape Better Weapon Defense Acquisitions: Observations on Year
2000 Experiences (10/ 01/ 1999), System Decisions (04/ 26/ 2000),

the Procurement of the Navy/ Marine AIMD- 00- 1 T- NSIAD- 00- 137

Corps Intranet (03/ 08/ 2000), T- NSIAD/ AIMD- 00- 116 Critical
Infrastructure Protection:

Defense Acquisitions: Air Force Fundamental Improvements Needed Operating
and Support Cost Defense Acquisitions: Prices of Marine to Assure Security
of Federal Reductions Need Higher Priority

Corps Spare Parts Have Increased Operations (10/ 06/ 1999), T- AIMD- 00- 7
(08/ 29/ 2000), NSIAD- 00- 165

(07/ 31/ 2000), NSIAD- 00- 123 Critical Infrastructure Protection:

Defense Acquisitions: Antiarmor Defense Acquisitions: Progress in

“ILOVEYOU” Computer Virus Weapons Master Plan Does Not Meeting
F- 22 Cost and Schedule Goals

Highlights Need for Improved Alert Identify Potential Excesses or Support
(12/ 07/ 1999), T- NSIAD- 00- 58

and Coordination Capabilities Planned Procurements (05/ 08/ 2000),

(05/ 18/ 2000), T- AIMD- 00- 181 NSIAD- 00- 67

Defense Acquisitions: Recent F- 22 Production Cost Estimates Exceeded
Customer Service: Human Capital Defense Acquisitions: Army Purchased
Congressional Limitation (08/ 15/ 2000), Management at Selected Public and

Truck Trailers That Cannot be Used as NSIAD- 00- 178 Private Call Centers
(08/ 22/ 2000),

Planned (10/ 27/ 1999), NSIAD- 00- 15 GGD- 00- 161

Defense Acquisitions: Use of Cost Defense Acquisitions: Comprehensive
Reduction Plans in Estimating F- 22 Customs Service: Information on the
Strategy Needed to Improve Ship

Total Production Costs (06/ 15/ 2000), Design of the Self- Inspection
Program

Cruise Missile Defense (07/ 11/ 2000), T- NSIAD- 00- 200

(06/ 23/ 2000), GGD- 00- 151 NSIAD- 00- 149

Defense Budget: Analysis of Real Customs Service Modernization: Defense
Acquisitions: Decisions on the Property Maintenance and Base Impact of New
Trade Compliance Joint Strike Fighter Will Be Critical for

Operations Fund Movements Strategy Needs to Be Assessed

Acquisition Reform (05/ 10/ 2000), (02/ 29/ 2000), NSIAD- 00- 87

(12/ 15/ 1999), GGD- 00- 23 T- NSIAD- 00- 173

Defense Budget: DOD Should Further Improve Visibility and Accountability

of O& M Fund Movements (02/ 09/ 2000), Peacetime Care (11/ 01/ 1999),

Defense Logistics: Actions Needed to NSIAD- 00- 18 HEHS- 00- 10

Enhance Success of Reengineering Initiatives (06/ 23/ 2000), NSIAD- 00- 89
Defense Budget: Fiscal Year 2000

Defense Inventory: Actions Needed to Contingency Operations Costs and
Evaluate Supply Purchase Options for Defense Logistics: Air Force Report on
Funding (06/ 06/ 2000), NSIAD- 00- 168 Facilities Maintenance (08/ 23/
2000),

Contractor Support Is Narrowly NSIAD- 00- 194 Focused (04/ 20/ 2000), NSIAD-
00- 115 Defense Budget: Real Property Maintenance and Base Operations

Defense Inventory: Army Needs to Defense Logistics: Army Should Assess Fund
Movements (03/ 01/ 2000), Strengthen and Follow Procedures to Cost and
Benefits of the Workload T- NSIAD- 00- 101

Control Shipped Items (06/ 23/ 2000), Performance System Expansion NSIAD-
00- 109

(11/ 12/ 1999), NSIAD- 00- 16 Defense Budget: Visibility and Accountability
of O& M Fund Defense Inventory: Improved Defense Logistics: Integrated Plans
Movements (02/ 29/ 2000),

Management Framework Needed to and Improved Implementation Needed T- NSIAD-
00- 98 Guide Navy Best Practice Initiatives

to Enhance Engineering Efforts (10/ 21/ 1999), NSIAD- 00- 1

(06/ 27/ 2000), T- NSIAD- 00- 206 Defense Computers: DOD Y2K Functional End-
to- End Testing Defense Inventory: Improved Defense Logistics: New 120- mm
Tank

Progress and Test Event Management Management Framework Needed to Training
Round Procurement Will (10/ 18/ 1999), AIMD- 00- 12 Guide Air Force Best
Practice Result in Savings (11/ 22/ 1999), Initiatives (11/ 18/ 1999),
NSIAD- 00- 2

NSIAD- 00- 34 Defense Computers: U. S. Space Command's Management of Its
Year Defense Inventory: Improvements Defense Management: Actions Needed 2000
Operational Testing (11/ 15/ 1999),

Needed to Prevent Excess Purchases to Sustain Reform Initiatives and

AIMD- 00- 30 by the Air Force (11/ 01/ 1999),

Achieve Greater Results (07/ 25/ 2000), NSIAD- 00- 5 NSIAD- 00- 72 Defense
Computers: U. S. Transportation Command's

Defense Inventory: Inadequate Defense Management: Electronic Management of
Y2KOperational Compliance With Controls for Excess Commerce Implementation
Strategy Testing (11/ 15/ 1999), AIMD- 00- 21 Firearms and Other Sensitive
Items Can Be Improved (07/ 18/ 2000), (11/ 29/ 1999), NSIAD- 00- 27

NSIAD- 00- 108 Defense Headquarters: Status of Efforts to Redefine and
Reduce Defense Inventory: Management of Defense Trade: Analysis of Support
for Headquarters Staff (09/ 06/ 2000),

Repair Parts Common to More Than Recent Initiatives (08/ 31/ 2000), NSIAD-
00- 224 One Military Service Can Be Improved NSIAD- 00- 191 (10/ 20/ 1999),
NSIAD- 00- 21 Defense Health Care: Observations on Defense Trade:
Contractors Engage in Proposed Benefit Expansion and

Defense Inventory: Opportunities Varied International Alliances Overcoming
TRICARE Obstacles Exist to Expand the Use of Defense (09/ 07/ 2000), NSIAD-
00- 213

(03/ 15/ 2000), T- HEHS/ NSIAD- 00- 129 Logistics Agency Best Practices

(01/ 26/ 2000), NSIAD- 00- 30 Defense Trade: Identifying Foreign Defense
Health Care: Opportunities to

Acquisitions Affecting National Reduce TRICARE Claims Processing Defense
Inventory: Plan to Improve

Security Can Be Improved and Other Costs (06/ 22/ 2000), Management of
Shipped Inventory (06/ 29/ 2000), NSIAD- 00- 144 T- HEHS- 00- 138

Should Be Strengthened (02/ 22/ 2000), NSIAD- 00- 39

Defense Transportation: More Reliable Defense Health Care: Resources,

Information Key to Managing Airlift Patient Access, and Challenges in
Defense Inventory: Process for Services More Efficiently (03/ 06/ 2000),
Europe and the Pacific (08/ 31/ 2000),

Canceling Inventory Orders Needs NSIAD- 00- 6

HEHS- 00- 172 Improvement (06/ 30/ 2000),

NSIAD- 00- 160 Defense Transportation: Operational Defense Health Care: Tri-
Service Support Airlift Requirements Are Not Strategy Needed to Justify
Medical Sufficiently Justified (04/ 27/ 2000), Resources for Readiness and
NSIAD- 00- 126

Defense Transportation: Process Department of the Navy: Breakdown Disaster
Assistance: Issues Related to

Reengineering Could Be Enhanced by of In- Transit Inventory Process Leaves
the Development of FEMA's Insurance Performance Measures (12/ 20/ 1999),

It Vulnerable to Fraud (02/ 02/ 2000), Requirements (02/ 25/ 2000), NSIAD-
00- 7

OSI/ NSIAD- 00- 61 GGD/ OGC- 00- 62

Department of Defense: Implications Department of Veterans Affairs: Credit
Disaster Relief Fund: FEMA's of Financial Management Issues

Costs and Risks of Proposed VA Small Estimates of Funding Requirements

(07/ 20/ 2000), T- AIMD/ NSIAD- 00- 264 Business Loan Guarantee Program

Can Be Improved (08/ 29/ 2000), (06/ 30/ 2000), GGD- 00- 158

RCED- 00- 182 Department of Defense: Military Assistance During the Branch
Depot Maintenance: Action Needed to District of Columbia Government:

Davidian Incident (08/ 21/ 2000), Avoid Exceeding Ceiling on Contract
Management Reform Projects Not NSIAD- 00- 240R Workloads (08/ 24/ 2000),
NSIAD- 00- 193

Effectively Monitored (06/ 30/ 2000), T- AIMD- 00- 237 Department of
Defense: Progress in Depot Maintenance: Air Force Faces Financial Management
Reform Challenges in Managing to 50- 50

District of Columbia Government: (05/ 09/ 2000), T- AIMD/ NSIAD- 00- 163

Ceiling (03/ 03/ 2000), T- NSIAD- 00- 112 Performance Report's Adherence to
Statutory Requirements (04/ 14/ 2000),

Department of Education: Compliance Depot Maintenance: Army Report GGD- 00-
107

With the Federal Advisory Committee Provides Incomplete Assessment of Act
and lobbying Restrictions Depot- Type Capabilities (10/ 15/ 1999),

District of Columbia: Issues Related to (12/ 30/ 1999), GGD/ OGC- 00- 18
NSIAD- 00- 20

the Youngstown Prison Report and Lorton Closure Process (04/ 07/ 2000),
Department of Energy: National Depot Maintenance: Future Year GGD- 00- 86
Security Controls Over Contractors Estimates of Public and Private Traveling
to Foreign Countries Need Workloads Are Likely to Change

District of Columbia: Management Strengthening (06/ 26/ 2000), (03/ 01/
2000), NSIAD- 00- 69

Issues Concerning Two District Leases RCED- 00- 140

(05/ 02/ 2000), GGD- 00- 87 Determining Performance and Department of
Energy: Uncertainties Accountability Challenges and High District of
Columbia Receivership: and Management Problems Have Risks (Exposure Draft)
(08/ 01/ 2000),

Selected Issues Related to Medical Hindered Cleanup at Two Nuclear OCG- 00-
12

Services at the D. C. Jail (06/ 30/ 2000), Waste Sites (07/ 12/ 2000), T-
GGD- 00- 173 T- RCED- 00- 248

Developing Countries: Debt Relief Initiative for Poor Countries Faces
District of Columbia: Source of Department of Energy: Views on Challenges
(06/ 29/ 2000), NSIAD- 00- 161 Funding for Needle Exchange DOE's Plan to
Establish the National

Programs (09/ 15/ 2000), AIMD- 00- 318R Nuclear Security Administration

Direct Loan System Requirements: (03/ 02/ 2000), T- RCED- 00- 113 Checklist
for Reviewing Systems

District of Columbia: Status of the New Under the Federal Financial
Convention Center Project Department of Energy: Views on Management
Improvement Act of 1996 (08/ 30/ 2000), AIMD- 00- 262 Proposed Civil
Penalties, Security (11/ 01/ 1999), AIMD- 00- 21. 2.6 Oversight, and
External Safety District of Columbia: The District Has Regulation
Legislation (03/ 22/ 2000),

Direct Loan System Requirements: Not Adequately Planned for and T- RCED- 00-
135 Checklist for Reviewing Systems

Managed Its New Personnel and Under the Federal Financial Payroll System
(12/ 17/ 1999), Department of Justice: Information on Management Improvement
Act AIMD- 00- 19 the Office of Professional (04/ 01/ 2000), AIMD- 21.2.6
Responsibility's Operations

DOD and VA Health Care: Jointly (08/ 14/ 2000), GGD- 00- 187

Disabled Veterans' Care: Better Data Buying and Mailing Out and More
Accountability Needed to Pharmaceuticals Could Save Millions Department of
Labor: Administering Adequately Assess Care (04/ 21/ 2000),

of Dollars (05/ 25/ 2000), T- HEHS- 00- 121 the Labor- Management Reporting
and

HEHS- 00- 57 Disclosure Act (06/ 30/ 2000),

DOD Competitive Sourcing: More HEHS- 00- 116 Consistency Needed in
Identifying

Commercial Activities (08/ 11/ 2000), Implement Increasing Program

From Key Studies (08/ 31/ 2000), NSIAD- 00- 198

Requirements (08/ 31/ 2000), HEHS- 00- 168 RCED- 00- 199 DOD Competitive
Sourcing: Plan Electronic Government: Federal Needed to Mitigate Risks in
Army Drinking Water: Spending Constraints

Initiatives Are Evolving Rapidly But Logistics Modernization Program Could
Affect States' Ability to Meet They Face Significant Challenges (10/ 04/
1999), NSIAD- 00- 19

Increasing Program Requirements (05/ 22/ 2000), T- AIMD/ GGD- 00- 179

(09/ 19/ 2000), T- RCED- 00- 298 DOD Competitive Sourcing: Potential

Electronic Government: Government Impact on Emergency Response Drug Abuse:
Efforts Under Way to Paperwork Elimination Act Presents Operations at
Chemical Storage Determine Treatment Outcomes Challenges for Agencies (09/
15/ 2000), Facilities Is Minimal (03/ 28/ 2000), (02/ 17/ 2000), T- HEHS-
00- 60

AIMD- 00- 282 NSIAD- 00- 88

Drug Abuse Treatment: Efforts Under Electronic Warfare: Phased Approach DOD
Competitive Sourcing: Savings

Way to Determine Effectiveness of to Infrared Upgrades Would Reduce Are
Occurring, but Actions Are Needed State Programs (02/ 15/ 2000),

Risk to Helicopters (07/ 27/ 2000), to Improve Accuracy of Savings

HEHS- 00- 50 NSIAD- 00- 171

Estimates (08/ 08/ 2000), NSIAD- 00- 107 Drug Control: Assets DOD
Contributes

Elementary and Secondary Education: DOD Competitive Sourcing: Some to
Reducing the Illegal Drug Supply Flexibility Initiatives Do Not Address
Progress, but Continuing Challenges Have Declined (12/ 21/ 1999),

Districts' Key Concerns About Federal Remain in Meeting Program Goals NSIAD-
00- 9

Requirements (01/ 25/ 2000), (08/ 08/ 2000), NSIAD- 00- 106

T- HEHS- 00- 51 Drug Control: DOD Allocates Fewer DOD Personnel: Inadequate
Personnel

Assets to Drug Control Efforts Public Education: Title I Services Security
Investigations Pose National (01/ 27/ 2000), T- NSIAD- 00- 77

Provided to Students With Limited Security Risks (10/ 27/ 1999), English
Proficiency (12/ 10/ 1999), NSIAD- 00- 12

Early Childhood Programs: HEHS- 00- 25

Characteristics Affect the Availability DOD Personnel: Inadequate Personnel
of School Readiness Information

Energy Policy Act of 1992: Limited Security Investigations Pose National
(02/ 28/ 2000), HEHS- 00- 38

Progress in Acquiring Alternative Fuel Security Risks (02/ 16/ 2000),
Vehicles and Reaching Fuel Goals T- NSIAD- 00- 65

Early Education and Care: Overlap (02/ 11/ 2000), RCED- 00- 59

Indicates Need to Assess Crosscutting DOD Personnel: More Accurate Programs
(04/ 28/ 2000), HEHS- 00- 78

Environmental Protection Agency: Estimate of Overdue Security Comparing
Annual Budgets for Clearance Reinvestigations Is Needed Economic
Development: Multiple Science and Technology (03/ 23/ 2000), (09/ 20/ 2000),
T- NSIAD- 00- 246

Federal Programs Fund Similar T- RCED- 00- 132

Economic Development Activities DOD Personnel: More Actions Needed (09/ 29/
2000), RCED/ GGD- 00- 220

Environmental Protection: to Address Backlog of Security Collaborative EPA-
State Effort Needed Clearance Reinvestigations Education and Care: Early
Childhood

to Improve Performance Partnership (08/ 18/ 2000), NSIAD- 00- 215

Programs and Services for LowIncome System (05/ 02/ 2000), T- RCED- 00- 163

Families (11/ 15/ 1999), DOD Personnel: Weaknesses in

HEHS- 00- 11 Environmental Protection: More Security Investigation Program
Are

Consistency Needed Among EPA Being Addressed (04/ 06/ 2000),

Education Discretionary Grants: Regions in Approach to Enforcement T- NSIAD-
00- 148

Awards Process Could Benefit From (06/ 01/ 2000), RCED- 00- 108 Additional
Improvements (03/ 30/ 2000), Drinking Water Research: Better HEHS- 00- 55

Environmental Research: STAR Grants Planning Needed to Link Needs and

Focus on Agency Priorities, but Resources (10/ 20/ 1999), T- RCED- 00- 15
Education for Disadvantaged Children: Management Enhancements Are Research
Purpose and Design Possible (09/ 11/ 2000), RCED- 00- 170

Drinking Water: Spending Constraints Features Affect Conclusions Drawn Could
Affect States' Ability to

EPA Paperwork: Burden Estimate Computer Systems (03/ 23/ 2000), Serious
Challenges and Emerging Increasing Despite Reduction

T- NSIAD- 00- 139 Issues (09/ 12/ 2000), T- AIMD- 00- 316

Claims( 03/ 16/ 2000), GGD- 00- 59 Export Controls: Statutory Reporting
Federal Employees' Health Program: Equal Employment Opportunity:
Requirements for Computers Not Fully

Reasons Why HMOs Withdrew in 1999 Discrimination Complaint Case loads
Addressed (11/ 05/ 1999), NSIAD- 00- 45

and 2000 (05/ 02/ 2000), GGD- 00- 100 and Underlying Causes Require EEOC's
Sustained Attention Export Promotion: Federal Agencies' Federal Facilities:
Alternative Land (03/ 29/ 2000), T- GGD- 00- 104

Activities and Resources in Fiscal Year Uses Could Save Water at Fallon
Naval 1999 (04/ 10/ 2000), NSIAD- 00- 118 Air Station, Nevada (12/ 10/
1999), Essential Air Service: Changes in

RCED/ NSIAD- 00- 42 Passenger Traffic, Subsidy Levels, and

F- 22 Aircraft: Development Cost Goal Air Carrier Costs (05/ 25/ 2000),
Achievable If Major Problems Are

Federal Facilities: Further Review of T- RCED- 00- 185 Avoided (03/ 14/
2000), NSIAD- 00- 68

Hawthorne Army Depot Land Management Proposals Needed Essential Air Service:
Changes in FAA Computer Security: Actions (09/ 21/ 2000), NSIAD/ RCED- 00-
251 Subsidy Levels, Air Carrier Costs, and

Needed to Address Critical Passenger Traffic (04/ 14/ 2000), Weaknesses That
Jeopardize Aviation

Federal Health Care: Comments on RCED- 00- 34 Operations (09/ 27/ 2000),

H. R. 4401, the Health Care T- AIMD- 00- 330 Infrastructure Investment Act
of 2000 The Euro: Implications for the United (07/ 11/ 2000), T- AIMD- 00-
240

States-- Answers to Key Questions FAA Computer Security: Concerns (03/ 01/
2000), GGD/ NSIAD- 00- 105 Remain Due to Personnel and Other

Federal Information Security: Actions Continuing Weaknesses (08/ 16/ 2000),

Needed to Address Widespread Executive Guide: Creating Value AIMD- 00- 252
Weaknesses (03/ 29/ 2000), Through World- class Financial

T- AIMD- 00- 135 Management (04/ 01/ 2000),

Fair Labor Standards Act: White- Collar AIMD- 00- 134

Exemptions Need Adjustments for Federal Land Management: Baca Today's Work
Place (05/ 03/ 2000),

Ranch Appraisal Land Acquisition Executive Guide: Maximizing the T- HEHS-
00- 105 Issues (03/ 10/ 2000), T- RCED- 00- 105 Success of Chief Information
Officers (Exposure Draft) (03/ 01/ 2000), Federal Acquisition: Trends,
Reforms,

Federal Land Management: Federal AIMD- 00- 83

and Challenges (03/ 16/ 2000), Land Acquisitions in California Since T- OCG-
00- 7

January 1994 (08/ 30/ 2000), Export Controls: Challenges and RCED- 00- 239
Changes For Controls on Computer Federal Advertising Contracts: Exports (05/
26/ 2000), T- NSIAD- 00- 187

Agencies Have Discretion in Setting Federal Land Management: Land Work Scope
and Requirements Acquisition Issues Related to Baca Export Controls:
Implementation of (09/ 08/ 2000), GGD- 00- 203 Ranch Appraisal (03/ 02/
2000), the 1998 Legislative Mandate for High RCED- 00- 76 Performance
Computers (10/ 28/ 1999),

Federal Aviation Administration: T- NSIAD- 00- 53

Challenges in Modernizing the Agency Federal Lands: Agencies Need to (02/
03/ 2000), T- RCED/ AIMD- 00- 87 Assess the Impact of Personal Export
Controls: International Space Watercraft and Snowmobile Use Station
Technology Transfers

Federal Buildings: Billions Are Needed (09/ 15/ 2000), RCED- 00- 243 (11/
03/ 1999), NSIAD- 00- 14

for Repairs and Alterations (03/ 30/ 2000), GGD- 00- 98

Federal Lobbying: China Permanent Export Controls: National Security Normal
Trade Relations (PNTR) Risks and Revisions To Controls on Federal Buildings:
Billions Are Needed Lobbying Activities and Costs Computers (02/ 28/ 2000),

for Repairs and Alterations (09/ 29/ 2000), GGD- 00- 199R

T- NSIAD- 00- 104 (04/ 11/ 2000), T- GGD- 00- 73

Federal Pensions: Judicial Survivors' Export Controls: National Security
Federal Chief Information Officer: Annuities System Costs (05/ 25/ 2000),
Risks and Revisions to Controls on

Leadership Needed to Confront GGD- 00- 125

Federal Prisons: Containing Health Financial Audit: Independent Counsel Act
Results for Fiscal Year 1999

Care Costs for an Increasing Inmate Expenditures for the Six Months (09/ 29/
2000), AIMD- 00- 307

Population (04/ 06/ 2000), T- GGD- 00- 112 Ended September 30, 1999 (03/ 31/
2000), AIMD- 00- 120

Financial Management: Financial Federal Real Property: Views on Management
Challenges Remain at the Management Reform Proposals

Financial Audit: IRS' Fiscal Year 1999 Department of Education (09/ 19/
2000),

(07/ 12/ 2000), T- GGD- 00- 175 Financial Statements (02/ 29/ 2000),

T- AIMD- 00- 323 AIMD- 00- 76 Federal Research: DOE Is Providing

Financial Management: Financial Independent Review of the Scientific
Financial Audit: Senate Restaurants

Management Weaknesses at the Merit of Its Research (04/ 25/ 2000),

Revolving Fund for Fiscal Years 1999 Department of Education (12/ 06/ 1999),
RCED- 00- 109

and 1998 (04/ 12/ 2000), AIMD- 00- 98 T- AIMD- 00- 50

Federal Reserve Banks: Areas for Financial Audit: 1999 Financial Report
Financial Management: Impact of RUS' Improvement in Computer Controls of the
United States Government Electricity Loan Restructurings (07/ 07/ 2000),
AIMD- 00- 218

(03/ 31/ 2000), AIMD- 00- 131 (09/ 29/ 2000), AIMD- 00- 288

Federal Tort Claims Act: Claims Financial Audits: American Battle Financial
Management: Improvements History and Issues Affecting Coverage Monuments
Commission (06/ 06/ 2000),

Needed in NIH's Controls Over Royalty for Tribal Self- Determination

T- AIMD- 00- 211 Income (07/ 21/ 2000), AIMD- 00- 210

Contracts (07/ 12/ 2000), T- RCED- 00- 234 Financial Management: Agencies
Face Financial Management: Increased Federal Tort Claims Act: Issues Many
Challenges in Meeting the Goals

Attention Needed to Prevent Billions Affecting Coverage for Tribal
SelfDetermination of the Federal Financial Management in Improper Payments
(10/ 29/ 1999),

Contracts (07/ 05/ 2000), Improvement Act AIMD- 00- 10

RCED- 00- 169 (06/ 06/ 2000), T- AIMD- 00- 178

Financial Management: Review of Financial Audit: American Battle Financial
Management: Census Education's Grant back Account Monuments Commission's
Financial Monitoring Board Disbursements,

(08/ 18/ 2000), AIMD- 00- 228 Statements for Fiscal Years 1999 and Internal
Control Weaknesses, and 1998 (03/ 01/ 2000), AIMD- 00- 85

Other Matters (09/ 29/ 2000), Financial Management Service: AIMD- 00- 317

Significant Weaknesses in Computer Financial Audit: Bureau of the Public
Controls (10/ 04/ 1999), AIMD- 00- 4 Debt's Fiscal Years 1999 and1 998

Financial Management: Differences in Schedules of Federal Debt Army and Air
Force Disbursing and Financial Management Service: (03/ 01/ 2000), AIMD- 00-
79 Accounting Records (03/ 07/ 2000),

Significant Weaknesses in Computer AIMD- 00- 20 Controls (09/ 26/ 2000),
AIMD- 00- 305 Financial Audit: Capitol Preservation Fund's Fiscal Years 1999
and 1998

Financial Management: Education Financial Management: Status of Financial
Statements (03/ 14/ 2000),

Faces Challenges in Achieving Financial Management Issues at the AIMD- 00-
95 Financial Management Reform Small Business Administration (03/ 01/ 2000),
T- AIMD- 00- 106

(08/ 29/ 2000), AIMD- 00- 263 Financial Audit: Congressional Award
Foundation's 1999 and 1998 Financial Financial Management: Education's

Financial Management: USDA Statements (05/ 15/ 2000), AIMD- 00- 156
Financial Management Problems

Continues to Face Major Financial Persist (05/ 24/ 2000), T- AIMD- 00- 180
Management Challenges (09/ 27/ 2000), Financial Audit: Federal Deposit T-
AIMD- 00- 334

Insurance Corporation's 1999 and 1998 Financial Management: Federal

Financial Statements (05/ 26/ 2000), Financial Management Improvement
Financial Management: USDA Faces AIMD- 00- 157

Act Results for Fiscal Year 1998 Major Financial Management (10/ 01/ 1999),
AIMD- 00- 3

Challenges (03/ 21/ 2000), Financial Audit: Independent and

T- AIMD- 00- 115 Special Counsel Expenditures for the

Financial Management: Federal Six Months Ended March 31, 2000 Financial
Management Improvement Financial Regulatory Coordination: (09/ 29/ 2000),
AIMD- 00- 310 The Role and Functioning of the

President's Working Group the Magnuson- Stevens Act Food Safety: FDA's Use
of Faster Tests

(01/ 21/ 2000), GGD- 00- 46 (04/ 06/ 2000), RCED- 00- 69

to Assess the Safety of Imported Foods (02/ 25/ 2000), RCED- 00- 65 Fire
Management: Lessons Learned

Flood Insurance: Information on From the Cerro Grande (Los Alamos) Financial
Aspects of the National

Food Safety: Improvements Needed in Fire (08/ 14/ 2000), T- RCED- 00- 257
Flood Insurance Program (10/ 27/ 1999), Overseeing the Safety of Dietary T-
RCED- 00- 23

Supplements and “Functional Foods” Fire Management: Lessons
Learned (07/ 11/ 2000), RCED- 00- 156 From the Cerro Grande (Los Alamos)
Food and Drug Administration Fire and Actions Needed to Reduce

Facility: Requirements for Building on Food Safety: Overview of Food Safety
Fire Risks (08/ 14/ 2000), a Floodplain Met (12/ 15/ 1999),

and Inspection Service and Food and T- RCED- 00- 273 GGD- 00- 17

Drug Administration Expenditures (09/ 20/ 2000), T- RCED- 00- 300 Fire
Protection: Barriers to Effective

Food Assistance: Activities and Use of Implementation of NRC's Safety
Nonprogram Resources at Six WIC

Food Stamp Program: Better Use of Oversight Process (04/ 19/ 2000), Agencies
(09/ 29/ 2000), RCED- 00- 202 Electronic Data Could Result in RCED- 00- 39
Disqualifying More Recipients Who Food Assistance: Efforts to Control

Traffic Benefits (03/ 07/ 2000), Fiscal Year 2001 Budget Request: U. S.
Fraud and Abuse in the Child and RCED- 00- 61 General Accounting Office
Adult Care Food Program Should be (02/ 01/ 2000), T- OCG- 00- 1

Strengthened (11/ 24/ 1999), Food Stamp Program: How States Are RCED- 00- 12

Using Federal Waivers of the Work Fiscal Year 2001 Budget Request: U. S.
Requirement (10/ 20/ 1999), RCED- 00- 5 General Accounting Office Food
Assistance: Financial (02/ 29/ 2000), T- OCG- 00- 5

Information on WIC Nutrition Services Force Structure: Air Force and
Administrative Costs (03/ 06/ 2000), Expeditionary Concept Offers Benefits
Fish and Wildlife Service: Agency RCED- 00- 66

but Effects Should Be Assessed Needs to Inform Congress of Future (08/ 15/
2000), NSIAD- 00- 201 Costs Associated With Land

Food Assistance: Options for Acquisitions (02/ 15/ 2000), RCED- 00- 52
Improving Nutrition for Older

Force Structure: Army Is Integrating Americans (08/ 17/ 2000), RCED- 00- 238

Active and Reserve Combat Forces, Fish and Wildlife Service: Agency

but Challenges Remain (07/ 18/ 2000), Needs to Inform Congress of Future
Food Assistance: Reducing the NSIAD- 00- 162 Costs Associated With Land

Trafficking of Food Stamp Benefits Acquisitions (02/ 15/ 2000),

(07/ 19/ 2000), T- RCED- 00- 250 Foreign Affairs: Effort to Upgrade T- RCED-
00- 89

Information Technology Overseas Food Irradiation: Available Research Faces
Formidable Challenges Fish and Wildlife Service: Use of Indicates That
Benefits Outweigh (06/ 22/ 2000), T- AIMD/ NSIAD- 00- 214

Federal Aid Programs' Administrative Risks (08/ 24/ 2000), RCED- 00- 217
Funds (07/ 19/ 2000), T- RCED- 00- 262

Foreign Affairs: Federal Response to Food Safety: Actions Needed by USDA

International Parental Child Fish and Wildlife Service: Weaknesses

and FDA to Ensure That Companies Abductions (10/ 14/ 1999), in the
Management of the Endangered Promptly Carry Out Recalls T- NSIAD- 00- 44
Species Program Workload at the

(08/ 17/ 2000), RCED- 00- 195 Carlsbad, California Field Office Foreign
Affairs: Specific Action Plan (09/ 14/ 2000), T- RCED- 00- 293

Food Safety: Agencies Should Further Needed to Improve Response to Test
Plans for Responding to Parental Child Abductions

Fishery Management: American Deliberate Contamination (03/ 29/ 2000), NSIAD-
00- 10

Fisheries Act Produces Benefits (10/ 27/ 1999), RCED- 00- 3

(06/ 29/ 2000), RCED- 00- 176 Foreign Affairs: Status of U. S. Parental Food
Safety: Controls Can Be

Child Abductions to Germany, Sweden, Fishery Management: Problems
Strengthened to Reduce the Risk of and Austria (09/ 08/ 2000), Remain With
National Marine Disease Linked to Unsafe Animal Feed NSIAD- 00- 226BR
Fisheries Service's Implementation of (09/ 22/ 2000), RCED- 00- 255

Foreign Assistance: Donation of U. S. Assistance to Micronesia and the

Future Years Defense Program: Planting Seed to Russia in 1999Had Marshall
Islands (05/ 31/ 2000), Comparison of Planned Funding Weaknesses (03/ 09/
2000), NSIAD- 00- 91 RCED- 00- 67

Levels for the 2000 and 2001 Programs (06/ 14/ 2000), NSIAD- 00- 179 Foreign
Assistance: Lack of Haitian

Forest Service: A Framework for Commitment Limited Success of U. S.

Improving Accountability( 10/ 13/ 1999), Future Years Defense Program: Aid
to Justice System (09/ 19/ 2000), RCED/ AIMD- 00- 2 Funding Increase and
Planned Savings T- NSIAD- 00- 257

in Fiscal Year 2000 Program Are at Forest Service: Actions Needed for the
Risk (11/ 22/ 1999), NSIAD- 00- 11 Foreign Assistance: North Korea

Agency to Become More Accountable Restricts Food Aid Monitoring for Its
Performance (06/ 29/ 2000),

GAO: Supporting Congress for the 21st (10/ 08/ 1999), NSIAD- 00- 35 T- RCED-
00- 236

Century (07/ 18/ 2000), T- OCG- 00- 10 Foreign Assistance: North Korean
Forest Service: Broad- Scale GAO's Congressional Protocols Constraints Limit
Food Aid Monitoring Assessments Could Be Better

(01/ 24/ 2000), OCG- 00- 2 (10/ 27/ 1999), T- NSIAD- 00- 47

Integrated Into the Forest Planning Process (04/ 11/ 2000), T- RCED- 00- 146
General Services Administration: Foreign Assistance: U. S. Bilateral Food
Leasing Practices in Selected Regions Assistance to North Korea Had Mixed

Forest Service Planning: Better (04/ 14/ 2000), GGD- 00- 88 Results (06/ 15/
2000), NSIAD- 00- 175

Integration of Broad- Scale Assessments Into Forest Plans Is General
Services Administration: Foreign Assistance: U. S. Food Aid Needed (02/ 15/
2000), RCED- 00- 56

STAR- PBS' New Program for Tracking Program to Russia Had Weak Internal and
Managing Real Property Controls (09/ 29/ 2000), Forest Service: Proposed
Regulations (10/ 12/ 1999), GGD- 00- 12 NSIAD/ AIMD- 00- 329

Adequately Address Some, but Not All, Key Elements of Forest Planning
General Services Administration: Foreign Assistance: U. S. Funds to Two

(09/ 29/ 2000), RCED- 00- 256 Status of Efforts to Improve

Micronesian Nations Had Little Impact Management of Building Security on
Economic Development Forest Service: Status of Efforts to Upgrade Program
(10/ 07/ 1999), (09/ 21/ 2000), NSIAD- 00- 216 Improve Accountability( 02/
16/ 2000),

T- GGD/ OSI- 00- 19 T- RCED/ AIMD- 00- 93 Foreign Assistance: U. S. Funds to
Two

Global Health: Factors Contributing to Micronesian Nations Had Little Impact
Foster Care: Effectiveness of Low Vaccination Rates in Developing on
Economic Development and Independent Living Services Countries (10/ 15/
1999), NSIAD- 00- 4 Accountability Over Funds Was

Unknown( 11/ 10/ 1999), HEHS- 00- 13 Limited (06/ 28/ 2000), Global Health:
Summary of T- NSIAD/ RCED- 00- 227

Foster Care: HHS Could Better Conference on Immunization in Facilitate the
Inter jurisdictional Developing Countries (03/ 01/ 2000), Foreign Military
Sales: Air Force Adoption Process (11/ 19/ 1999),

NSIAD- 00- 95 Controls Over the FMS Program Need HEHS- 00- 12 Improvement
(05/ 03/ 2000),

Global Health: The U. S. and U. N. AIMD- 00- 101

Foster Care: HHS Should Ensure That Response to the AIDS Crisis in Africa
Juvenile Justice Placements Are (02/ 24/ 2000), T- NSIAD- 00- 99 Foreign
Military Sales: Changes

Reviewed (06/ 09/ 2000), HEHS- 00- 42 Needed to Correct Weaknesses in EndUse
Government Auditing Standards:

Monitoring Program (08/ 24/ 2000), Foster Care: States' Early Experiences
Independence (Preliminary Views) NSIAD- 00- 208

Implementing the Adoption and Safe (04/ 14/ 2000), GAGAS- PV- 1 Families Act
(12/ 22/ 1999), HEHS- 00- 1 Foreign Military Sales: Efforts to Government
Performance and Results Improve Administration Hampered by Foster Care:
Status of the District of Act: Information on Science Issues in Insufficient
Information (11/ 22/ 1999),

Columbia's Child Welfare System EPA's Performance Report for Fiscal NSIAD-
00- 37

Reform Efforts (05/ 05/ 2000), Year 1999 and Performance Plans for T- HEHS-
00- 109

Fiscal Years 2000 and 2001 Foreign Relations: Better (08/ 31/ 2000), RCED-
00- 270R Accountability Needed Over U. S.

Government- Sponsored Enterprises: HCFA: Three Largest Medicare HUD Housing
Portfolios: HUD Has

Creation of a Single Housing GSE Overpayment Settlements Were Strengthened
Physical Inspections but

Regulator (09/ 12/ 2000), T- GGD- 00- 200 Improper( 02/ 25/ 2000), OSI- 00-
4

Needs to Resolve Concerns About Their Reliability (07/ 25/ 2000), Guaranteed
Loan System Health Care Access: Programs for RCED- 00- 168

Requirements: Checklist for Reviewing Underserved Populations Could Be
Systems Under the Federal Financial

Improved (03/ 23/ 2000), T- HEHS- 00- 81 HUD Reform Act: Information on the

Management Improvement Act Department's Response to the Act's (Exposure
Draft) (08/ 01/ 2000), Health Care Financing Administration:

Requirements (03/ 27/ 2000), AIMD- 21. 2.7

Three Largest Medicare Overpayment RCED- 00- 91 Settlements Were Improper
Gulf War Illnesses: Basic Questions (03/ 28/ 2000), T- OSI- 00- 7

Human Capital: A Self- Assessment Unanswered (02/ 02/ 2000), Checklist for
Agency Leaders T- NSIAD- 00- 79

Health Care Fraud: Schemes to (09/ 01/ 2000), OCG- 00- 14G Defraud Medicare,
Medicaid, and Gulf War Illnesses: Management Private Health Care Insurers

Human Capital: Design, Actions Needed to Answer Basic (07/ 25/ 2000), T-
OSI- 00- 15 Implementation, and Evaluation of Research Questions (01/ 06/
2000), Training at Selected Agencies

NSIAD- 00- 32 Higher Education: Trustee

(05/ 18/ 2000), T- GGD- 00- 131 Arrangements Serve Useful Purpose in Gulf
War Illnesses: Understanding of Student Loan Market (09/ 25/ 2000),

Human Capital: Key Principles From Health Effects From Depleted HEHS- 00-
170 Nine Private Sector Organizations Uranium Evolving but Safety Training
(01/ 31/ 2000), GGD- 00- 28 Needed (03/ 29/ 2000), NSIAD- 00- 70

Highway Funding: Problems With Highway Trust Fund Information Can Human
Capital: Managing Human Gun Control: Implementation of the Affect State
Highway Funds Capital in the 21st Century National Instant Criminal
Background (06/ 29/ 2000), RCED/ AIMD- 00- 148

(03/ 09/ 2000), T- GGD- 00- 77 Check System (02/ 29/ 2000), GGD/ AIMD- 00-
64

Highway Infrastructure: FHWA's Model Human Capital: Observations on EPA's

for Estimating Highway Needs Is Efforts to Implement a Workforce Gun
Control: Improving the National Generally Reasonable, Despite Planning
Strategy (03/ 23/ 2000), Instant Criminal Background Check

Limitations (06/ 05/ 2000), RCED- 00- 133 T- RCED- 00- 129

System (06/ 21/ 2000), T- GGD- 00- 163 HIV/ AIDS: Use of Ryan White CARE
Human Capital: Strategic Approach Gun Control: Options For Improving Act and
Other Assistance Grant

Should Guide DOD Civilian Workforce the National Instant Criminal Funds( 03/
01/ 2000), HEHS- 00- 54 Management (03/ 09/ 2000), Background Check System
T- GGD/ NSIAD- 00- 120

(04/ 12/ 2000), GGD- 00- 56 Homelessness: Barriers to Using Mainstream
Programs (07/ 06/ 2000),

Human Capital: Using Incentives to H- 1B Foreign Workers: Better Controls
RCED- 00- 184 Motivate and Reward High Needed to Help Employers and Protect
Performance (05/ 02/ 2000), Workers (09/ 07/ 2000), HEHS- 00- 157

Homelessness: Consolidating HUD's T- GGD- 00- 118

McKinney Programs (05/ 23/ 2000), H- 2A Agricultural Guestworkers: T- RCED-
00- 187

Human Resources and Payroll Systems Status of Efforts to Improve Program

Requirements: Checklist for Reviewing Services (06/ 15/ 2000), T- HEHS- 00-
134 Homelessness: HUD Funds Eligible Systems Under the Federal Financial
Projects According to Communities' Management Improvement Act of 1996
Hazardous Materials Training: DOT Priorities (07/ 24/ 2000), RCED- 00- 191

(10/ 01/ 1999), AIMD- 00- 21. 2. 3 and Private Sector Initiatives Generally
Complement Each Other Housing Enterprises: The Roles of

Hydropower Relicensing: Federal (07/ 31/ 2000), RCED- 00- 190

Fannie Mae and Freddie Mac in Costs Are Not Being Recovered theU. S. Housing
Finance System (06/ 30/ 2000), RCED- 00- 107

Hazardous Waste: EPA Has Removed (07/ 25/ 2000), T- GGD- 00- 182 Some
Barriers to Cleanups (08/ 31/ 2000), RCED- 00- 224

Illegal Aliens: Opportunities Exist to Information Security Risk Assessment:
Information Technology: Update on VA Improve the Expedited Removal Practices
of Leading Organizations Actions to Implement Critical Reforms Process (09/
01/ 2000), GGD- 00- 176 (11/ 01/ 1999), AIMD- 00- 33

(05/ 11/ 2000), T- AIMD- 00- 74 Immigration Benefits: INS Not Making
Information Security: Serious and Information Technology: VA Actions Timely
Deposits of Application Fees Widespread Weaknesses Persist at Needed to
Implement Critical Reforms (09/ 29/ 2000), GGD- 00- 185

Federal Agencies (09/ 06/ 2000), (08/ 16/ 2000), AIMD- 00- 226

AIMD- 00- 295 Impact of Gambling: Economic Effects

Insurance Regulation: Scandal More Measurable Than Social Effects

Information Security: USDA Needs to Highlights Need for States to (04/ 27/
2000), GGD- 00- 78

Implement Its Departmentwide Strengthen Regulatory Oversight Information
Security Plan (09/ 19/ 2000), T- GGD- 00- 209 Implementation of HIPAA:
Progress

(08/ 10/ 2000), AIMD- 00- 217 Slow in Enforcing Federal Standards Insurance
Regulation: Scandal in Nonconforming States (03/ 31/ 2000),

Information Security: Vulnerabilities in Highlights Need for Strengthened
HEHS- 00- 85 DOE's Systems for Unclassified Regulatory Oversight (09/ 19/
2000), Civilian Research (06/ 09/ 2000),

GGD- 00- 198 Implementation of the Federal

AIMD- 00- 140 Vacancies Reform Act of 1998

Inter- American Foundation: Better (09/ 29/ 2000), GGD- 00- 210R Information
Systems: The Status of Compliance With Some Key Computer Security at the
Department Procedures Needed (09/ 28/ 2000), Indian Trust Funds:
Improvements of Veterans Affairs (10/ 04/ 1999),

NSIAD- 00- 235 Made in Acquisition of New Asset and

AIMD- 00- 5 Accounting System But Significant

Intercity Passenger Rail: Amtrak Risks Remain (09/ 15/ 2000), Information
Technology: INS Needs to Needs to Improve Its Accountability AIMD- 00- 259
Better Manage the Development of Its

for Taxpayer Relief Act Funds Enterprise Architecture (08/ 01/ 2000), (02/
29/ 2000), RCED/ AIMD- 00- 78 Information Policy: NTIS' Financial AIMD- 00-
212 Position Provides an Opportunity to Intercity Passenger Rail: Amtrak
Faces Reassess Its Mission (06/ 30/ 2000), Information Technology Investment
Challenges in Improving Its Financial

GGD- 00- 147 Management: A Framework for Condition (10/ 28/ 1999), T- RCED-
00- 30

Assessing and Improving Process Information Security: Comments on Maturity
(Exposure Draft) Intercity Passenger Rail: Amtrak Will Proposed Government
Information (05/ 01/ 2000), AIMD- 10.1.23

Continue to Have Difficulty Act of 1999 (03/ 02/ 2000), Controlling Its
Costs and Meeting T- AIMD- 00- 107 Information Technology Investment Capital
Needs (05/ 31/ 2000), Management: An Overview of GAO's

RCED- 00- 138 Information Security: Fundamental Assessment Framework
(Exposure Weaknesses Place EPA Data and Draft) (05/ 01/ 2000), AIMD- 00- 155

Intercity Passenger Rail: Decisions on Operations at Risk (07/ 06/ 2000),
the Future of Amtrak and Intercity AIMD- 00- 215 Information Technology
Management:

Passenger Rail Are Approaching SBA Needs to Establish Policies and

(09/ 26/ 2000), T- RCED- 00- 277 Information Security: Fundamental
Procedures for Key IT Processes Weaknesses Place EPA Data and (05/ 31/
2000), AIMD- 00- 170

Intercity Passenger Rail: Increasing Operations at Risk (02/ 17/ 2000),
Amtrak's Accountability for Its T- AIMD- 00- 97

Information Technology Management: Taxpayer Relief Act Funds

Small Business Administration Needs (03/ 15/ 2000), T- RCED- 00- 116

Information Security: “ILOVEYOU” Policies and Procedures to
Control Computer Virus Emphasizes Critical Key IT Processes (07/ 20/ 2000),

Internal Controls: Oversight of Need for Agency and Governmentwide T- AIMD-
00- 260 Longshore Special Fund Needs Improvements (05/ 10/ 2000),

Improvement (10/ 29/ 1999), T- AIMD- 00- 171

Information Technology: Selected AIMD- 00- 15 Agencies' Use of Commercial
Off- theShelf Software for Human Resources Functions (07/ 31/ 2000), AIMD-
00- 270

Internal Revenue Service: Results of IRS Seizures: Limited Progress in
Management Reform: Continuing Fiscal Year 1999 Financial Statement

Eliminating Asset Management Attention Is Needed to Improve Audit (02/ 29/
2000), T- AIMD- 00- 104

Control Weaknesses (11/ 29/ 1999), Government Performance GGD- 00- 5

(05/ 04/ 2000), T- GGD- 00- 128 International Monetary Fund: Status of
Efforts to Strengthen Safeguards Over IRS Seizures: Needed for Compliance
Management Reform: Elements of Lending (09/ 01/ 2000), NSIAD- 00- 211

but Processes for Protecting Taxpayer Successful Improvement Initiatives
Rights Have Some Weaknesses (10/ 15/ 1999), T- GGD- 00- 26 International
Trade: Improvements

(11/ 29/ 1999), GGD- 00- 4 Needed to Track and Archive Trade

Managing for Results: Barriers to Agreements (12/ 14/ 1999), NSIAD- 00- 24

IRS' 2000 Tax Filing Season: IRS Interagency Coordination (03/ 29/ 2000),

Measures Show Tax Processing GGD- 00- 106 International Trade: Strategy
Needed Systems Performed Slightly Better to Better Monitor and Enforce Trade

Than in 1999 (06/ 16/ 2000), GGD- 00- 146 Managing for Results: Challenges
Agreements (03/ 14/ 2000), NSIAD- 00- 76

Agencies Face in Producing Credible Joint Strike Fighter Acquisition:
Performance Information (02/ 04/ 2000), Internet Privacy: Agencies' Efforts
to Development Schedule Should Be GGD- 00- 52 Implement OMB's Privacy Policy
Changed to Reduce Risks (05/ 09/ 2000), (09/ 05/ 2000), GGD- 00- 191

NSIAD- 00- 74 Managing for Results: Challenges in

Producing Credible Performance Interscholastic Athletics: School Joint
Strike Fighter Acquisition: Information (03/ 22/ 2000), Districts Provide
Some Assistance to Development Schedule Should Be T- GGD/ RCED- 00- 134
Uninsured Student Athletes Changed to Reduce Risks (03/ 16/ 2000), (09/ 12/
2000), HEHS- 00- 148

T- NSIAD- 00- 132 Managing for Results: Continuing Challenges to Effective
GPRA Invasive Species: Federal and Selected Land Management Systems: Status
of Implementation (07/ 20/ 2000), State Funding to Address Harmful,

BLM's Actions to Improve Information T- GGD- 00- 178 Nonnative Species (08/
24/ 2000),

Technology Management (02/ 24/ 2000), RCED- 00- 219

AIMD- 00- 67 Managing for Results: EPA Faces

Challenges in Developing ResultsOriented Inventory Management: Better Large
Bank Mergers: Fair Lending

Performance Goals and Controls Needed to Prevent Misuse of Review Could be
Enhanced With Measures (04/ 28/ 2000), RCED- 00- 77 Excess DOD Property (04/
28/ 2000),

Better Coordination (11/ 03/ 1999), OSI/ NSIAD- 00- 147 GGD- 00- 16

Managing for Results: Strengthening Regulatory Agencies' Performance IRS
Employee Evaluations:

Long- Term Capital Management: Management Practices (10/ 28/ 1999),
Opportunities to Better Balance

Regulators Need to Focus Greater GGD- 00- 10

Customer Service and Compliance Attention on Systemic Risk Objectives (10/
14/ 1999), GGD- 00- 1

(10/ 29/ 1999), GGD- 00- 3 Managing for Results: Using GPRA to

Help Congressional Decisionmaking IRS Modernization: Business Practice,
Long- Term Care Insurance: Better and Strengthen Oversight (03/ 22/ 2000),
Performance Management, and

Information Critical to Prospective T- GGD- 00- 95

Information Technology Challenges Purchasers (09/ 13/ 2000), (04/ 10/ 2000),
T- GGD/ AIMD- 00- 144

T- HEHS- 00- 196 Managing for Results: Views on

Ensuring the Usefulness of Agency IRS Modernization: Long- term Effort Low-
Level Radioactive Wastes: Performance Information to Congress Under Way, but
Significant Challenges

Department of Energy Has (01/ 26/ 2000), GGD- 00- 35 Remain (05/ 03/ 2000),
Opportunities to Reduce Disposal T- GGD/ AIMD- 00- 154

Costs (04/ 12/ 2000), RCED- 00- 64 Managing in the New Millennium:

Shaping a More Efficient and Effective IRS Restructuring Act: Implementation
Management Challenges: Department Government for the 21st Century Under Way
but Agency Modernization of Housing and Urban Development (03/ 29/ 2000), T-
OCG- 00- 9 Important to Success (02/ 02/ 2000), (09/ 26/ 2000), T- RCED- 00-
292 T- GGD- 00- 53 Marine Pollution: Progress Made to Reduce Marine
Pollution by Cruise

Ships, but Important Issues Remain Medicaid in Schools: Improper Party
Billers (04/ 06/ 2000), (02/ 28/ 2000), RCED- 00- 48

Payments Demand Improvements in T- HEHS- 00- 93 HCFA Oversight (04/ 05/
2000), Maritime Industry: As U. S. Single- Hull HEHS/ OSI- 00- 69

Medicare Contractors: Further Oil Vessels Are Eliminated, Few Improvement
Needed in Headquarters Double- Hull Vessels May Replace

Medicaid in Schools: Poor Oversight and Regional Office Oversight Them (04/
28/ 2000), RCED- 00- 80

and Improper Payments Compromise (03/ 23/ 2000), HEHS- 00- 46 Potential
Benefit (04/ 05/ 2000), Mass Transit: Challenges in Evaluating,

T- HEHS/ OSI- 00- 87 Medicare: Few Beneficiaries Use Overseeing, and Funding
Major Transit Colorectal Cancer Screening and Projects (03/ 08/ 2000), T-
RCED- 00- 104

Medicaid Managed Care: Challenges in Diagnostic Services (03/ 06/ 2000),

Implementing Safeguards for Children T- HEHS- 00- 68 Mass Transit:
Implementation of FTA's

With Special Needs (03/ 03/ 2000), New Starts Evaluation Process and FY
HEHS- 00- 37

Medicare Financial Management: 2001 Funding Proposals (04/ 28/ 2000),

Further Improvements Needed to RCED- 00- 149 Medicaid Managed Care: States'
Establish Adequate Financial Control Safeguards for Children With Special
and Accountability (03/ 15/ 2000), Mass Transit: Project Management Needs
Vary Significantly (09/ 29/ 2000), AIMD- 00- 66 Oversight Benefits and
Future Funding HEHS- 00- 169 Requirements (09/ 15/ 2000),

Medicare Financial Management: RCED- 00- 221

Medicaid: State Financing Schemes Further Improvements Needed to Again Drive
Up Federal Payments Establish Adequate Financial Control Mass Transit: Use
of Alternative Fuels

(09/ 06/ 2000), T- HEHS- 00- 193 and Accountability (03/ 15/ 2000), in
Transit Buses (12/ 14/ 1999), T- AIMD- 00- 118

RCED- 00- 18 Medical Devices: Reprocessing and

Reuse of Devices Labeled Single- Use Medicare Fraud and Abuse: DOJ Has Math
and Science Education: (06/ 27/ 2000), T- HEHS- 00- 143

Made Progress in Implementing False Comprehensive Information About Claims
Act Guidance (03/ 31/ 2000), Federally Funded Materials Not Medical
Malpractice: Effects of HEHS- 00- 73

Available (07/ 12/ 2000), HEHS- 00- 110 Varying Laws in the District of
Columbia, Maryland, and Virginia Medicare: HCFA Could Do More to Meat and
Poultry: Improved Oversight (10/ 15/ 1999), HEHS- 00- 5

Identify and Collect Overpayments and Training Will Strengthen New (09/ 07/
2000), HEHS/ AIMD- 00- 304 Food Safety System (12/ 08/ 1999),

Medical Readiness: DOD Continues to RCED- 00- 16

Face Challenges in Implementing Its Medicare: HCFA Faces Challenges to
Anthrax Vaccine Immunization

Control Improper Payments Medicaid and SCHIP: Comparisons of Program (04/
13/ 2000), T- NSIAD- 00- 157 (03/ 09/ 2000), T- HEHS- 00- 74 Outreach,
Enrollment Practices, and Benefits (04/ 14/ 2000), HEHS- 00- 86

Medical Readiness: DOD Faces Medicare Home Health Agencies: Challenges in
Implementing Its

Overpayments Are Hard to Identify Medicaid and Special Education: Anthrax
Vaccine Immunization and Even Harder to Collect Coordination of Services for
Children Program (10/ 22/ 1999), NSIAD- 00- 36 (04/ 28/ 2000), HEHS/ AIMD-
00- 132 With Disabilities Is Evolving (12/ 10/ 1999), HEHS- 00- 20

Medicare and Medicaid: Implementing Medicare Home Health Care: State
Demonstrations for Dual Prospective Payment System Could Medicaid: Federal
and State

Eligibles Has Proven Challenging Reverse Recent Declines in Spending
Leadership Needed to Control Fraud (08/ 18/ 2000), HEHS- 00- 94

(09/ 08/ 2000), HEHS- 00- 176 And Abuse (11/ 09/ 1999), T- HEHS- 00- 30

Medicare: Better Information Can Help Medicare Home Health Care: Medicaid:
HCFA and States Could Ensure That Refinements to BBA

Prospective Payment System Will Work Together to Better Ensure the Reforms
Lead to Appropriate

Need Refinement as Data Become Integrity of Providers (07/ 18/ 2000),
Payments (10/ 01/ 1999), T- HEHS- 00- 14

Available (04/ 07/ 2000), HEHS- 00- 9 T- HEHS- 00- 159

Medicare: Concerns About HCFA's Medicare Hospital Payment: PPS Efforts to
Prevent Fraud by Third Includes Several Policies Intended to

Help Rural Hospitals (09/ 15/ 2000), of Provider Payments (07/ 19/ 2000),

of Privatization- in- Place Initiatives HEHS- 00- 174R

T- HEHS- 00- 160 (12/ 20/ 1999), NSIAD- 00- 23

Medicare Improper Payments: Medicare Reform: Issues Associated Military Base
Closures: Unexpended Challenges for Measuring Potential

With General Revenue Financing Funds Raise Questions About Fiscal Fraud and
Abuse Remain Despite (03/ 27/ 2000), T- AIMD- 00- 126 Year 2001 Funding
Needs (07/ 07/ 2000), Planned Enhancements (07/ 12/ 2000),

NSIAD- 00- 170 T- AIMD/ OSI- 00- 251

Medicare Reform: Leading Proposals Lay Groundwork, While Design Military
Capabilities: Focused Medicare Improper Payments: While Decisions Lie Ahead
(02/ 24/ 2000),

Attention Needed to Prepare Enhancements Hold Promise for T- HEHS/ AIMD- 00-
103

U. S. Forces for Combat in Urban Areas Measuring Potential Fraud and Abuse,
(02/ 25/ 2000), NSIAD- 00- 63NI Challenges Remain (09/ 15/ 2000),

Medicare Subvention Demonstration: AIMD/ OSI- 00- 281

Enrollment in DOD Pilot Reflects Military Dependents: Services Provide
Retiree Experiences and Local Limited Confidentiality in Family Medicare:
Improper Third- Party Billing

Markets (01/ 31/ 2000), HEHS- 00- 35 Abuse Cases (04/ 05/ 2000),

of Medicare by Behavioral Medical NSIAD- 00- 127

Systems, Inc. (04/ 06/ 2000), T- OSI- 00- 9 Medicare: 21st Century
Challenges

Prompt Fresh Thinking About Military Health Care: Factors Affecting
Medicare: Lessons Learned From Program's Administrative Structure
Contractors' Ability to Schedule HCFA's Implementation of Changes to (05/
04/ 2000), T- HEHS- 00- 108

Appointments (07/ 14/ 2000), Benefits (01/ 25/ 2000), HEHS- 00- 31 HEHS- 00-
137 Medicare+ Choice: Payments Exceed Medicare: More Beneficiaries Use

Cost of Fee- for- Service Benefits, Military Housing: Continued Concerns

Hospice but for Fewer Days of Adding Billions to Spending in Implementing
the Privatization Care( 09/ 18/ 2000), HEHS- 00- 182 (08/ 23/ 2000), HEHS-
00- 161

Initiative (03/ 30/ 2000), NSIAD- 00- 71 Medicare: More Beneficiaries Use

Medicare+ Choice: Plan Withdrawals Military Personnel: First- Term Hospice;
Many Factors Contribute to Indicate Difficulty of Providing Choice
Recruiting and Attrition Continue to Shorter Periods of Use (09/ 18/ 2000),
While Achieving Savings (09/ 07/ 2000), Require Focused Attention T- HEHS-
00- 201

HEHS- 00- 183 (02/ 24/ 2000), T- NSIAD- 00- 102

Medicare Payments: Use of Revised Mental Health: Extent of Risk From

Military Personnel: Preliminary “Inherent Reasonableness”
Process Improper Restraint or Seclusion Is Results of DOD's 1999 Survey of
Active Generally Appropriate (07/ 05/ 2000),

Unknown (10/ 26/ 1999), T- HEHS- 00- 26 Duty Members (03/ 08/ 2000),

HEHS- 00- 79 T- NSIAD- 00- 110

Mental Health Parity Act: Despite New Medicare: Program Reform and Federal
Standards, Mental Health Military Personnel: Services Need to Modernization
Are Needed But Entail Benefits Remain Limited (05/ 10/ 2000),

Assess Efforts to Meet Recruiting Considerable Challenges (02/ 08/ 2000),

HEHS- 00- 95 Goals and Cut Attrition (06/ 23/ 2000), T- HEHS/ AIMD- 00- 77

NSIAD- 00- 146 Mental Health Parity Act: Employers' Medicare Quality of
Care: Oversight of Mental Health Benefits Remain Military Personnel:
Systematic Kidney Dialysis Facilities Needs

Limited Despite New Federal Analyses Needed to Monitor Retention Improvement
(06/ 23/ 2000),

Standards (05/ 18/ 2000), in Key Careers and Occupations

HEHS- 00- 114 T- HEHS- 00- 113

(03/ 07/ 2000), NSIAD- 00- 60 Medicare Quality of Care: Oversight of Migrant
Children: Education and HHS Military Readiness: Air Transport Kidney
Dialysis Facilities Needs

Need to Improve the Exchange of Capability Falls Short of Requirements
Improvement (06/ 26/ 2000), Participant Information (10/ 15/ 1999),

(06/ 22/ 2000), NSIAD- 00- 135 T- HEHS- 00- 136

HEHS- 00- 4 Military Real Property Maintenance: Medicare: Refinements Should
Military Base Closures: Lack of Data Improvements Are Needed to Ensure
Continue to Improve Appropriateness

Inhibits Cost- Effectiveness of Analyses That Critical Mission Facilities
Are

Adequately Maintained (10/ 26/ 1999), National Airspace System: Problems NIH
Research: Improvements Needed T- NSIAD- 00- 51

Plaguing the Wide Area Augmentation in Monitoring Extramural Grants System
and FAA's Actions to Address (05/ 31/ 2000), HEHS/ AIMD- 00- 139 Military
Real Property Maintenance:

Them (06/ 29/ 2000), T- RCED- 00- 229 Management Improvements are Northern
Mariana Islands: Garment Needed to Ensure Adequate Facilities

National Archives: The Challenge of and Tourist Industries Play a Dominant
(03/ 01/ 2000), T- NSIAD- 00- 111 Electronic Records Management Role in the
Commonwealth's Economy (10/ 20/ 1999), T- GGD- 00- 24

(02/ 14/ 2000), RCED/ GGD- 00- 79 Missile Defense: Cost Increases Call for
Analysis of How Many New Patriot National Fish Hatcheries: Authority

Northern Mariana Islands: Procedures Missiles to Buy (06/ 29/ 2000),

Needed to Better Align Operations for Processing Aliens and Merchandise
NSIAD- 00- 153

With Priorities (06/ 14/ 2000), (05/ 26/ 2000), GGD- 00- 97

RCED- 00- 151 Missile Defense: Schedule for Navy Nuclear Nonproliferation:
Heavy Fuel Theater Wide Program Should Be National Fish Hatcheries:

Oil Delivered to North Korea Under Revised to Reduce Risk (05/ 31/ 2000),
Classification of the Distribution of the Agreed Framework (10/ 27/ 1999),
NSIAD- 00- 121 Fish and Eggs Needs Refinement T- RCED- 00- 20 (10/ 15/
1999), RCED- 00- 10 Missile Defense: Status of the National Nuclear
Nonproliferation: Limited Missile Defense Program (05/ 31/ 2000),

National Ignition Facility: Management Progress in Improving Nuclear NSIAD-
00- 131

and Oversight Failures Caused Major Material Security in Russia and the Cost
Overruns and Schedule Delays Newly Independent States Money Laundering:
Observations on (08/ 08/ 2000), RCED- 00- 141

(03/ 06/ 2000), RCED/ NSIAD- 00- 82 Private Banking and Related Oversight of
Selected Offshore Jurisdictions

National Ignition Facility: Management Nuclear Regulation: NRC Staff Have
(11/ 09/ 1999), T- GGD- 00- 32 and Oversight Failures Caused Major Not Fully
Accepted Planned Changes Cost Overruns and Schedule Delays (01/ 19/ 2000),
RCED- 00- 29 Mortgage Financing: Financial Health (08/ 08/ 2000), RCED- 00-
271 of the Federal Housing Nuclear Regulation: Regulatory and
Administration's Mutual Mortgage National Oceanic and Atmospheric

Cultural Changes Challenge NRC Insurance Fund (09/ 12/ 2000),
Administration: National Weather

(03/ 09/ 2000), T- RCED- 00- 115 T- RCED- 00- 287

Service Modernization and Weather Satellite Program (03/ 29/ 2000),

Nuclear Safety: Concerns With the Motor Fuels: California Gasoline Price T-
AIMD- 00- 86

Continuing Operation of SovietDesigned Behavior (04/ 28/ 2000), RCED- 00-
121

Nuclear Power Reactors National Park Service: Agency Should (04/ 25/ 2000),
RCED- 00- 97 Multifamily Housing: HUD's

Recover Costs of Validity Restructuring Office's Actions to Examinations for
Mining Claims Nuclear Security: Improvements Implement the Mark- to- Market

(09/ 19/ 2000), RCED- 00- 265 Needed in DOE's Safeguards and

Program (01/ 20/ 2000), RCED- 00- 21 Security Oversight (02/ 24/ 2000),
National Service Programs: Two

RCED- 00- 62 Multifamily Housing: Impact of Loan

AmeriCorps Programs' Funding and Sales on Tenants and Properties Varies
Benefits (02/ 15/ 2000), HEHS- 00- 33

Nuclear Security: Information on by Property (01/ 20/ 2000), RCED- 00- 31
DOE's Requirements for Protecting Natural Resources Conservation and
Controlling Classified Documents

Mutual Fund Fees: Additional Service: Additional Actions Needed to (07/ 11/
2000), T- RCED- 00- 247

Disclosure Could Encourage Price Strengthen Program and Financial
Competition (06/ 07/ 2000), GGD- 00- 126

Accountability (04/ 07/ 2000), Nuclear Security: Security Issues At RCED-
00- 83

DOE and Its Newly Created National National Airspace System: Persistent
Nuclear Security Administration Problems in FAA's New Navigation New Dollar
Coin: Public Perception of (03/ 14/ 2000), T- RCED- 00- 123 System Highlight
Need for Periodic Advertising (04/ 07/ 2000), GGD- 00- 92 Reevaluation (06/
12/ 2000), Nuclear Waste Cleanup: DOE's RCED/ AIMD- 00- 130

Cleanup Plan for the Paducah, Kentucky Site Faces Uncertainties and

Excludes Costly Activities Department of Commerce Responsibilities (05/ 22/
2000), (06/ 27/ 2000), T- RCED- 00- 225 (09/ 25/ 2000), GGD- 00- 197R

RCED- 00- 154 Nuclear Waste Cleanup: DOE's

Occupational Safety and Health: Park Service: Agency Is Not Meeting Paducah
Plan Faces Uncertainties and Government Responses to Beryllium Its
Structural Fire Safety Excludes Costly Cleanup Activities

Uses and Risks (05/ 19/ 2000), OCG- 00- 6 Responsibilities (07/ 19/ 2000),
(04/ 28/ 2000), RCED- 00- 96

T- RCED- 00- 253 Office of Management and Budget: Nuclear Waste: DOE's
Advanced Mixed

Future Challenges to Management Park Service: Need to Address Key

Waste Treatment Project- Uncertainties (04/ 07/ 2000), T- GGD/ AIMD- 00- 141

Management Problems That Plague May Affect Performance, the Concessions
Program (06/ 15/ 2000), Schedule, and Price (04/ 28/ 2000), Olympic Games:
Federal Government T- RCED- 00- 136 RCED- 00- 106

Provides Significant Funding and Support (09/ 08/ 2000), GGD- 00- 183

Park Service: Need to Address Nuclear Waste: Observations on DOE's

Management Problems That Plague Privatization Initiative for Complex Olympic
Games: Preliminary

the Concessions Program (03/ 31/ 2000), Cleanup Projects (06/ 22/ 2000),

Information on Federal Funding and RCED- 00- 70 T- RCED- 00- 215

Support (12/ 21/ 1999), GGD- 00- 44 Park Service: Need to Address Nuclear
Weapons: Challenges Remain On- Line Trading: Better Investor Management
Problems That Plague for Successful Implementation of Protection Information
Needed on

the Concessions Program (05/ 24/ 2000), DOE's Tritium Supply Decision
Brokers' Web Sites (05/ 09/ 2000), T- RCED- 00- 188 (01/ 28/ 2000), RCED-
00- 24

GGD- 00- 43 Pension Benefit Guaranty Corporation: Nursing Home Care:
Enhanced HCFA Oral Health: Dental Disease Is a Appearance of Improper
Influence in Oversight of State Programs Would

Chronic Problem Among Low- Income Certain Contract Awards (09/ 21/ 2000),
Better Ensure Quality (11/ 04/ 1999),

Populations (04/ 12/ 2000), HEHS- 00- 72 T- OSI- 00- 17

HEHS- 00- 6 Oral Health: Factors Contributing to Pension Benefit Guaranty
Corporation: Nursing Homes: Aggregate Medicare Low Use of Dental Services by
LowIncome Contract Management Needs

Payments Are Adequate Despite Populations (09/ 11/ 2000), Improvement (09/
21/ 2000), Bankruptcies (09/ 05/ 2000),

HEHS- 00- 149 T- HEHS- 00- 199

T- HEHS- 00- 192 Overseas Investment: The Overseas

Pension Benefit Guaranty Corporation: Nursing Homes: HCFA Should Private
Investment Corporation's Contracting Management Needs Strengthen Its
Oversight of State

Investment Funds Program Improvement (09/ 18/ 2000), Agencies to Better
Ensure Quality (05/ 09/ 2000), NSIAD- 00- 159BR

HEHS- 00- 130 Care (11/ 04/ 1999), T- HEHS- 00- 27

Packers and Stockyards Programs: Pension Plans: Characteristics of

Nursing Homes: Success of Quality Actions Needed to Improve Persons in the
Labor Force Without Initiatives Requires Sustained Federal Investigations of
Competitive Pension Coverage (08/ 22/ 2000),

and State Commitment (09/ 28/ 2000), Practices (09/ 21/ 2000), RCED- 00- 242

HEHS- 00- 131 T- HEHS- 00- 209

Packers and Stockyards Programs: Pension Plans: IRS Programs for Nursing
Homes: Sustained Efforts Are

Investigations of Competitive Resolving Deviations From TaxExemption
Essential to Realize Potential of the Practices Need Improvements

Requirements (08/ 14/ 2000), Quality Initiatives (09/ 28/ 2000),

(09/ 25/ 2000), T- RCED- 00- 299 GGD- 00- 169

HEHS- 00- 197 Paperwork Reduction Act: Burden Personnel Practices: Career
Observations on the Fiscal Year 1999 Increases at IRS and Other Agencies

Appointments Granted Political Annual Program Performance Report (04/ 12/
2000), T- GGD- 00- 114 Appointees From October 1998 and Fiscal Years 2000
and 2001 Annual Through June 2000 (09/ 18/ 2000),

Performance Plans for Selected Park Service: Agency Is Not Meeting GGD- 00-
205 Science Agencies Within the Its Structural Fire Safety

Pesticides: Improvements Needed to Preschool Education: Federal Private
Pensions: Implications of Ensure the Safety of Farmworkers and Investment
for Low- Income Children

Conversions to Cash Balance Plans Their Children (03/ 14/ 2000),

Significant but Effectiveness Unclear (09/ 29/ 2000), HEHS- 00- 185 RCED-
00- 40

(04/ 11/ 2000), T- HEHS- 00- 83 Private Pensions: “Top- Heavy”
Rules Pesticides: Use, Effects, and Prescription Drug Benefits: Applying for
Owner- Dominated Plans Alternatives to Pesticides in Private Sector
Management Methods (08/ 31/ 2000), HEHS- 00- 141 Schools( 11/ 29/ 1999),
RCED- 00- 17

to Medicare (03/ 22/ 2000), T- HEHS- 00- 84

Program Evaluation: Studies Helped Petroleum and Ethanol Fuels: Tax Agencies
Measure or Explain Program Incentives and Related GAO Work Prescription
Drugs: Adapting Private Performance (09/ 29/ 2000), GGD- 00- 204 (09/ 25/
2000), RCED- 00- 301R

Sector Management Methods for a Medicare Benefit (05/ 11/ 2000), Public
Education: Commercial Pipeline Safety: The Office of Pipeline T- HEHS- 00-
112

Activities in Schools (09/ 08/ 2000), Safety Is Changing How It Oversees

HEHS- 00- 156 the Pipeline Industry (05/ 15/ 2000),

Prescription Drugs: Expanding Access RCED- 00- 128 to Federal Prices Could
Cause Other

Racial Profiling: Limited Data Price Changes (08/ 07/ 2000), Available on
Motorist Stops Police Corps: Some Problems HEHS- 00- 118

(03/ 13/ 2000), GGD- 00- 41 Resolved, But Most Positions Remain Unfilled
(02/ 22/ 2000), GGD- 00- 69

Prescription Drugs: Increasing Radiation Standards: Scientific Basis

Medicare Beneficiary Access and Inconclusive, and EPA and NRC Pork Industry:
Trade Barriers and Related Implications (02/ 15/ 2000), Disagreement
Continues (06/ 30/ 2000), Other Factors Limit Federal Programs' T- HEHS/
AIMD- 00- 99

RCED- 00- 152 Potential to Increase Exports (02/ 01/ 2000), RCED- 00- 41

Prescription Drugs: Increasing Radiation Standards: Scientific Basis

Medicare Beneficiary Access and Inconclusive, and EPA and NRC Pork Industry:
USDA's Reported Prices

Related Implications (02/ 16/ 2000), Disagreement Continues (07/ 18/ 2000),
Have Not Reflected Actual Sales

T- HEHS/ AIMD- 00- 100 T- RCED- 00- 252

(12/ 14/ 1999), RCED- 00- 26 Prescription Drugs: Many Factors

Reagan National Airport: Limited Pork Promotion Program: Petition Affected
FDA's Approval of Selected Opportunities to Improve Airlines' Validation
Process Needs to Be “Pipeline” Drugs (08/ 10/ 2000), Compliance
with Noise Abatement Strengthened (09/ 28/ 2000),

HEHS- 00- 140 Procedures (06/ 29/ 2000), RCED- 00- 74

RCED- 00- 274 Presidential Travel: DOD Airlift Cost Reducing Wildfire
Threats: Funds Port Infrastructure: Financing of for White House Foreign
Travel Should Be Targeted to the Highest Risk Navigation Projects at Small
and

(08/ 04/ 2000), NSIAD- 00- 209 Areas (09/ 13/ 2000), T- RCED- 00- 296

Medium- Sized Ports (03/ 02/ 2000), RCED- 00- 58

Privacy Standards: Issues in HHS' Regulatory Flexibility Act: Proposed Rule
on Confidentiality of Implementation in EPA Program Postal Issues: The
Department of Personal Health Information Offices and Proposed Lead Rule
State's Implementation of Its (04/ 26/ 2000), T- HEHS- 00- 106

(09/ 20/ 2000), GGD- 00- 193 International Postal Responsibilities (01/ 31/
2000), GGD- 00- 40

Private Banking: Raul Salinas, Regulatory Reform: Procedural and Citibank,
and Alleged Money

Analytical Requirements in Federal Postal Issues: The Department of
Laundering (11/ 09/ 1999), T- OSI- 00- 3 Rulemaking (06/ 08/ 2000), State's
International Postal T- GGD/ OGC- 00- 157 Responsibilities (03/ 09/ 2000),

Private Health Insurance: T- GGD- 00- 63

Cooperatives Offer Small Employers Reinventing Government: Status of Plan
Choice and Market Prices NPR Recommendations at 10 Federal Power Marketing
Administrations:

(03/ 31/ 2000), HEHS- 00- 49 Agencies (09/ 21/ 2000), GGD- 00- 145

Their Rate setting Practices Compared With Those of Nonfederal Utilities
Risk- Focused Bank Examinations: (03/ 30/ 2000), AIMD- 00- 114 Regulators of
Large Banking

Organizations Face Challenges Decimal- Trading Delay (09/ 20/ 2000),

Marketing Contractors (01/ 24/ 2000), GGD- 00- 48

GGD/ AIMD- 00- 319 (05/ 16/ 2000), T- RCED- 00- 180

Rural Ambulances: Medicare Fee Security: Breaches at Federal Agencies

Single- Family Housing: Stronger Schedule Payments Could Be Better and
Airports (05/ 25/ 2000), T- OSI- 00- 10 Oversight of FHA Lenders Could
Targeted (07/ 17/ 2000), HEHS- 00- 115

Reduce HUD's Insurance Risk Security Protection: Standardization

(04/ 28/ 2000), RCED- 00- 112 Rural Housing: Options for Optimizing Issues
Regarding Protection of the Federal Role in Rural Housing Executive Branch
Officials

Single- Family Housing: Stronger Development (09/ 15/ 2000), (07/ 11/ 2000),
GGD/ OSI- 00- 139

Oversight of FHA Lenders Could RCED- 00- 241

Reduce HUD's Insurance Risk Security Protection: Standardization

(06/ 29/ 2000), T- RCED- 00- 213 Ryan White Care Act: Opportunities to
Issues Regarding Protection of Enhance Funding Equity (07/ 11/ 2000),

Executive Branch Officials Single- Use Medical Devices: Little T- HEHS- 00-
150

(07/ 27/ 2000), T- GGD/ OSI- 00- 177 Available Evidence of Harm From Reuse,
but Oversight Warranted Sales Taxes: Electronic Commerce Seized Drugs and
Firearms: FBI Needs (06/ 20/ 2000), HEHS- 00- 123

Growth Presents Challenges; Revenue to Improve Certain Physical Losses Are
Uncertain (06/ 30/ 2000), Safeguards and Strengthen Skilled Nursing
Facilities: Medicare GGD/ OCE- 00- 165 Accountability (12/ 16/ 1999),

Payment Changes Require Provider AIMD- 00- 18 Adjustments But Maintain
Access SBA Loan Monitoring System: (12/ 14/ 1999), HEHS- 00- 23 Substantial
Progress Yet Key Risks and

Seized Drugs and Weapons: DEA Challenges Remain (04/ 25/ 2000),

Needs to Improve Certain Physical Slotting Fees: Effort to Study the Use
AIMD- 00- 124 Safeguards and Strengthen of These Payments in the Grocery
Accountability (11/ 30/ 1999),

Industry (09/ 14/ 2000), T- RCED- 00- 295 SBA Loan Monitoring System: AIMD-
00- 17 Substantial Progress Yet Key Risks and

Small Business Administration: Steps Challenges Remain (02/ 29/ 2000),

Seized Property and Forfeited Assets Taken to Better Manage Its Human T-
AIMD- 00- 113

System Requirements: Checklist for Capital, but More Needs to Be Done
Reviewing Systems Under the Federal

(07/ 20/ 2000), T- GGD/ AIMD- 00- 256 School Facilities: Construction

Financial Management Improvement Expenditures Have Grown Act (Exposure
Draft) (04/ 01/ 2000),

Small Business: Efforts to Facilitate Significantly in Recent Years AIMD-
21.2. 5

Equity Capital Formation (09/ 29/ 2000), (03/ 03/ 2000), HEHS- 00- 41 GGD-
00- 190 Senior Executive Service: Retirement School Meal Programs: Few
Outbreaks Trends Underscore the Importance of Small Business: Expectations
of Firms of Food borne Illness Reported Succession Planning (05/ 12/ 2000),

in SBA's 8( a) Program Are Not Being (02/ 22/ 2000), RCED- 00- 53

GGD- 00- 113BR Met (07/ 20/ 2000), T- RCED- 00- 261

Securities Arbitration: Actions Needed Single Audit: Update on the Small
Business: SBA Could Better to Address Problem of Unpaid Awards
Implementation of the Single Audit Act

Focus Its 8( a) Program to Help Firms (06/ 15/ 2000), GGD- 00- 115

Amendments of 1996 (09/ 29/ 2000), Obtain Contracts (07/ 20/ 2000),

AIMD- 00- 293 RCED- 00- 196

Securities Operations: Day Trading Requires Continued Oversight

Single- Family Housing: Stronger Small Business: SBA's 8( a) Information
(02/ 24/ 2000), GGD- 00- 61

Measures Needed to Encourage Better System Is Flawed and Does Not
Performance by Management and

Support the Program's Mission Securities Pricing: Progress and Marketing
Contractors (05/ 12/ 2000), (07/ 19/ 2000), RCED- 00- 197 Challenges in
Converting to Decimals RCED- 00- 117 (03/ 01/ 2000), T- GGD- 00- 96

Small Businesses: Limited Information Single- Family Housing: Stronger
Available on Contract Bundling's Securities Pricing: Trading Volumes

Measures Needed to Encourage Better Extent and Effects (03/ 31/ 2000), and
NASD System Limitations Led to Performance by Management and GGD- 00- 82

Social Security Administration: Social Security: The President's State
Department: Progress and

Longstanding Problems in SSA's Proposal (11/ 09/ 1999), Challenges in
Addressing Management Letters to the Public Need to Be Fixed T- HEHS/ AIMD-
00- 43

Issues (03/ 08/ 2000), T- NSIAD- 00- 124 (09/ 26/ 2000), HEHS- 00- 179

Social Security: Use of the Social State Department: Progress and Social
Security Administration: Paying Security Number is Widespread Challenges in
Managing for Results Attorneys Who Represent Disability (05/ 09/ 2000), T-
HEHS- 00- 111

(07/ 19/ 2000), T- NSIAD/ AIMD- 00- 254 Applicants (06/ 14/ 2000), T- HEHS/
AIMD- 00- 166

South Florida Ecosystem Restoration: State Pharmacy Programs: Assistance A
Land Acquisition Plan Would Help

Designed to Target Coverage and Social Security Administration: SSA's

Identify Lands That Need to Be Stretch Budgets (09/ 06/ 2000), Letters to
the Public Remain Difficult Acquired (04/ 05/ 2000), RCED- 00- 84

HEHS- 00- 162 to Understand (09/ 26/ 2000), T- HEHS- 00- 205

South Florida Ecosystem Restoration: Status of Open Recommendations:

A Land Acquisition Plan Is Needed to Improving Operations of Federal Social
Security Administration: Year Supplement the Strategic Plan Being
Departments and Agencies 2000 Readiness Efforts Helped Ensure Developed (04/
05/ 2000), (03/ 09/ 2000), OCG- 00- 4 Century Rollover and Leap Year T-
RCED- 00- 137 Success (04/ 19/ 2000), AIMD- 00- 125

Structured Settlements: The Space Shuttle: Human Capital and Department of
Justice's Selection and Social Security Disability Insurance: Safety Upgrade
Challenges Require Use of Annuity Brokers (02/ 16/ 2000), Raising the
Substantial Gainful

Continued Attention (08/ 15/ 2000), GGD- 00- 45 Activity Level for the Blind
NSIAD/ GGD- 00- 186 (03/ 23/ 2000), T- HEHS- 00- 82

Sugar Program: Supporting Sugar Space Shuttle: Human Capital Prices Has
Increased Users' Costs Social Security Disability: SSA Has

Challenges Require Management While Benefiting Producers Had Mixed Success
in Efforts to

Attention (03/ 22/ 2000), (06/ 09/ 2000), RCED- 00- 126 Improve Case load
Management T- NSIAD- 00- 133 (10/ 21/ 1999), T- HEHS- 00- 22

Superfund: Analysis of Costs at Five Space Station: Russian Compliance
Superfund Sites (01/ 28/ 2000), Social Security: Evaluating Reform With
Safety Requirements RCED- 00- 22

Proposals (11/ 04/ 1999), (03/ 16/ 2000), T- NSIAD- 00- 128

AIMD/ HEHS- 00- 29 Superfund: Extent to Which Most SSA Customer Service:
Broad Service

Reforms Have Improved the Program Social Security: Government and Other
Delivery Plan Needed to Address Is Unknown (05/ 12/ 2000), Uses of the
Social Security Number are

Future Challenges (02/ 10/ 2000), RCED- 00- 118

Widespread (05/ 18/ 2000), T- HEHS/ AIMD- 00- 75

T- HEHS- 00- 120 Superfund: Information on the

SSA Disability: Other Programs May Program's Funding and Status Social
Security: Providing Useful Provide Lessons for Improving Returnto- (10/ 29/
1999), RCED- 00- 25

Information to the Public (04/ 11/ 2000), Work Efforts (07/ 13/ 2000), T-
HEHS- 00- 101 T- HEHS- 00- 151

Superfund: Information Regarding EPA's Cleanup Decision Process on the
Social Security Reform: Evaluation of Standards for Internal Control in the
Hudson River Site (09/ 28/ 2000), the Nick Smith Proposal (02/ 29/ 2000),
Federal Government (11/ 01/ 1999), RCED- 00- 193 AIMD/ HEHS- 00- 102R

AIMD- 00- 21. 3.1 Supplemental Security Income: Social Security Reform:
Implications State and Federal Prisoners: Profiles of Incentive Payments
Have Reduced for Private Pensions (09/ 14/ 2000), Inmate Characteristics
in1991 and

Benefit Overpayments to Prisoners HEHS- 00- 187 1997 (05/ 24/ 2000), GGD-
00- 117

(11/ 22/ 1999), HEHS- 00- 2 Social Security Reform: Information

State Department: Overseas Surface Transportation: Issues Related on the
Archer- Shaw Proposal Emergency Security Program

to Preserving Inactive Rail Lines as (01/ 19/ 2000), AIMD/ HEHS- 00- 56
Progressing, But Costs Are Increasing Trails (10/ 18/ 1999), RCED- 00- 4
(03/ 08/ 2000), NSIAD- 00- 83

Survey Methodology: An Innovative Tax Administration: Multiple Title III,
Older Americans Act: Technique for Estimating Sensitive Collection Notices
Sent to Individual

Administration on Aging Funding Survey Items (11/ 01/ 1999), GGD- 00- 30
Taxpayers (04/ 14/ 2000), GGD- 00- 55

Method Under funds High- ElderlyGrowth States (06/ 30/ 2000), Tax
Administration: IRS' Advance Tax Administration: Tracking Taxpayer HEHS- 00-
107 Pricing Agreement Program Information About IRS Notices Could (08/ 14/
2000), GGD- 00- 168

Reduce Burden (03/ 28/ 2000), Tongass National Forest: Process Used

GGD- 00- 54 to Modify the Forest Plan (04/ 17/ 2000),

Tax Administration: IRS' Efforts to RCED- 00- 45 Serve Small Business
Taxpayers

Tax Systems Modernization: Results of (05/ 23/ 2000), T- GGD- 00- 138

Review of IRS' March 7, 2000, Toxic Chemicals: Long- Term Expenditure Plan
(05/ 24/ 2000), Coordinated Strategy Needed to Tax Administration: IRS Faces
Several AIMD- 00- 175

Measure Exposures in Humans Challenges as It Attempts to Better (05/ 02/
2000), HEHS- 00- 80 Serve Small Businesses (08/ 10/ 2000),

Telecommunications: Development of GGD- 00- 166 Competition in Local
Telephone Trade Adjustment Assistance: Markets (01/ 25/ 2000), RCED- 00- 38

Opportunities to Improve the Tax Administration: IRS' Community Adjustment
and Implementation of the Restructuring Telecommunications: GSA's Estimates
Investment Program (09/ 29/ 2000), Act's Personnel Flexibility Provisions

of FTS2001 Revenues Are Reasonable NSIAD- 00- 229 (04/ 28/ 2000), GGD- 00-
81

(04/ 14/ 2000), AIMD- 00- 123 Trade With The European Union: Tax
Administration: IRS' Telecommunications: Issues Related to Recent Trends and
Electronic

Implementation of the Restructuring Local Telephone Service (08/ 31/ 2000),
Commerce Issues (10/ 13/ 1999), Act's Taxpayer Protection and Rights

RCED- 00- 237 T- NSIAD- 00- 46

Provisions (04/ 21/ 2000), GGD- 00- 85 Telecommunications: Overview of the

Transit Grants: Department of Labor's Tax Administration: IRS Is Working to
Cramming Problem (10/ 25/ 1999), Certification Process (04/ 25/ 2000),
Improve Its Estimates of Compliance T- RCED- 00- 28

T- RCED- 00- 157 Burden (05/ 22/ 2000), GGD- 00- 11

Telecommunications: The Effect of Transit Grants: Need for Improved Tax
Administration: IRS' Levy of Competition From Satellite Providers
Predictability, Data, and Monitoring in Federal Payments Could Generate on
Cable Rates (07/ 18/ 2000),

Application Processing (08/ 30/ 2000), Millions of Dollars (04/ 07/ 2000),
RCED- 00- 164

RCED- 00- 260 GGD- 00- 65

Telecommunications: Update on StateLevel Transportation Coordination:
Benefits Tax Administration: IRS' Low- Dollar

Cramming Complaints and and Barriers Exist, and Planning Notices Sent to
Individual Taxpayers

Enforcement Actions (01/ 31/ 2000), Efforts Progress Slowly (10/ 22/ 1999),

(04/ 14/ 2000), GGD- 00- 84 RCED- 00- 68

RCED- 00- 1 Tax Administration: IRS' Low- Income

Tennessee Valley Authority: Problems Travel System Requirements: Checklist
Taxpayer Clinic Program (03/ 24/ 2000),

With Irrevocable Trust Raise Need for for Reviewing Systems Under the

GGD- 00- 83 Additional Oversight (02/ 29/ 2000),

Federal Financial Management OSI- 00- 6 Improvement Act of 1996 (12/ 01/
1999), Tax Administration: IRS' Use of

AIMD- 00- 21. 2. 8 Nonaudit Contacts (03/ 16/ 2000), Title I Preschool
Education: More GGD- 00- 7

Children Served, but Gauging Effect on Travel System Requirements: Checklist
School Readiness Difficult for Reviewing Systems Under the

Tax Administration: IRS' 1999 Tax (09/ 20/ 2000), HEHS- 00- 171

Federal Financial Management Filing Season (12/ 15/ 1999), GGD- 00- 37
Improvement Act (05/ 01/ 2000), Title I Program: Stronger AIMD- 21. 2.8

Tax Administration: IRS' 2000 Tax Accountability Needed for Filing Season
and Fiscal Year 2001 Performance of Disadvantaged United Nations: Cost of
Peacekeeping

Budget Request (03/ 28/ 2000), Students (06/ 01/ 2000), HEHS- 00- 89

Is Likely to Exceed Current Estimate T- GGD/ AIMD- 00- 133 (08/ 31/ 2000),
NSIAD- 00- 228BR

United Nations: Reform Initiatives U. S. Infrastructure: Funding Trends USDA
Reorganization: Progress Mixed Have Strengthened Operations, but and
Opportunities to Improve in Modernizing the Delivery of Overall Objectives
Have Not Yet Been Investment Decisions (02/ 07/ 2000), Services (02/ 03/
2000), RCED- 00- 43 Achieved (05/ 10/ 2000), NSIAD- 00- 150

RCED/ AIMD- 00- 35 VA and Defense Health Care: Evolving United Nations:
Reforms Are U. S. International Broadcasting: Health Care Systems Require

Progressing, but Overall Objectives Strategic Planning and Performance
Rethinking of Resource Sharing Have Not Yet Been Achieved

Management System Could Be Strategies (05/ 17/ 2000), HEHS- 00- 52 (05/ 10/
2000), T- NSIAD- 00- 169

Improved (09/ 27/ 2000), NSIAD- 00- 222 VA and Defense Health Care: United
States Capitol Police: 1999 U. S.- Mexico Border: Better Planning,
Rethinking of Resource Sharing Financial Audit Highlights Need to
Coordination Needed to Handle Strategies is Needed (05/ 17/ 2000), Address
Internal Control Weaknesses

Growing Commercial Traffic T- HEHS- 00- 117 (05/ 15/ 2000), AIMD- 00- 153

(03/ 03/ 2000), NSIAD- 00- 25 VA Health Care: Changes in Medical Unmanned
Aerial Vehicles: Progress of U. S.- Mexico Border: Despite Some Residency
Slots Reflect Shift to the Global Hawk Advanced Concept Progress,
Environmental

Primary Care (04/ 12/ 2000), Technology Demonstration

Infrastructure Challenges Remain HEHS- 00- 62 (04/ 25/ 2000), NSIAD- 00- 78

(03/ 03/ 2000), NSIAD- 00- 26 VA Health Care: Food Service Unmanned Aerial
Vehicles:

U. S. Postal Service: Challenges to Operations and Costs at Inpatient
Questionable Basis for Revisions to Sustaining Performance Improvements

Facilities (11/ 19/ 1999), HEHS- 00- 17 Shadow200 Acquisition Strategy
Remain Formidable on the Brink of the (09/ 26/ 2000), NSIAD- 00- 204

21st Century (10/ 21/ 1999), T- GGD- 00- 2 VA Health Care: Laundry Service

Operations and Costs (12/ 21/ 1999), U. S. Attorneys: Laws, Rules, and U. S.
Postal Service: Changes Made to HEHS- 00- 16 Policies Governing Political
Activities Improve Acceptance Controls for (07/ 24/ 2000), GGD- 00- 171

Business Mail (11/ 09/ 1999), GGD- 00- 31 VA Health Care: VA Is Struggling
to Address Asset Realignment Challenges

U. S. Customs Service: Better Targeting U. S. Postal Service: Diversity in
(04/ 05/ 2000), T- HEHS- 00- 88

of Airline Passengers for Personal District Management- Level Positions
Searches Could Produce Better (06/ 30/ 2000), GGD- 00- 142

VA Health Care: VA Is Struggling to Results (03/ 17/ 2000), GGD- 00- 38
Respond to Asset Realignment U. S. Postal Service: Diversity in the
Challenges (04/ 06/ 2000), T- HEHS- 00- 91

U. S. Customs Service: Observations on Postal Career Executive Service

Selected Operations and Program (03/ 30/ 2000), GGD- 00- 76

VA Health Care: VA's Management of Issues (04/ 20/ 2000), Drugs on Its
National Formulary T- GGD/ AIMD- 00- 150

U. S. Postal Service: Electronic (12/ 14/ 1999), HEHS- 00- 34 Commerce
Activities and Legal U. S. Customs Service: OR& R Needs to Matters (09/ 07/
2000), T- GGD- 00- 195

VA Information Systems: Computer Resolve Timeliness and Data Problems
Security Weaknesses Persist at the Involving Headquarters Rulings

U. S. Postal Service: Enhancements Veterans Health Administration (09/ 07/
2000), GGD- 00- 181

Needed in Performance Planning and (09/ 08/ 2000), AIMD- 00- 232 Reporting
(09/ 19/ 2000), GGD- 00- 207 U. S. Department of Agriculture:

VA Information Technology: Progress Marketing Assistance Loan Program U. S.
Postal Service: Postal Activities

Continues Although Vulnerabilities Should Better Reflect Market and Laws
Related to Electronic Remain (09/ 21/ 2000), T- AIMD- 00- 321 Conditions
(11/ 23/ 1999), RCED- 00- 9

Commerce (09/ 07/ 2000), GGD- 00- 188 VA Patient Safety: Initiatives
Promising U. S. Department of Agriculture:

U. S. Postal Service: Sustained but Continued Progress Requires

Problems in Processing Discrimination Attention to Challenges Remains

Culture Change (07/ 27/ 2000), Complaints (09/ 12/ 2000),

Critical (09/ 19/ 2000), T- GGD- 00- 206 T- HEHS- 00- 167

T- RCED- 00- 286

VA Research: Protections for Human Water Quality: Identification and
Yellowstone Bison Still Ongoing Subjects Need to Be Strengthened Remediation
of Polluted Waters (11/ 30/ 1999), RCED- 00- 7 (09/ 28/ 2000), HEHS- 00- 155

Impeded by Data Gaps (02/ 10/ 2000), T- RCED- 00- 88 Women In Prison: Issues
and VA Research: System for Protecting Challenges Confronting U. S. Human
Subjects Needs Improvement Water Quality: Identification and Correctional
Systems (12/ 28/ 1999), (09/ 28/ 2000), T- HEHS- 00- 203

Remediation of Polluted Waters GGD- 00- 22

Impeded by Data Gaps (03/ 23/ 2000), Vaccine Injury Compensation: T- RCED-
00- 131

Women's Health: NIH Has Increased Its Program Challenged to Settle Claims
Efforts to Include Women in Research Quickly and Easily (12/ 22/ 1999),

Water Quality: Key EPA and State (05/ 02/ 2000), HEHS- 00- 96 HEHS- 00- 8

Decisions Limited by Inconsistent and Incomplete Data (03/ 15/ 2000),

Worker Protection: OSHA Inspections Vaccine Injury Trust Fund: Revenue RCED-
00- 54

at Establishments Experiencing Labor Exceeds Current Need for Paying Unrest
(08/ 31/ 2000), HEHS- 00- 144 Claims (03/ 31/ 2000), HEHS- 00- 67

Weapons of Mass Destruction: DOD's Actions to Combat Weapons Use Workforce
Investment Act: Veterans Benefits Administration: Should Be More Integrated
and Implementation Status and the Problems and Challenges Facing Focused
(05/ 26/ 2000), NSIAD- 00- 97

Integration of TANF Services Disability Claims Processing (06/ 29/ 2000), T-
HEHS- 00- 145 (05/ 18/ 2000), T- HEHS/ AIMD- 00- 146

Weapons of Mass Destruction: U. S. Efforts to Reduce Threats From the World
Bank: Management Controls Veterans' Benefits: Independent Former Soviet
Union (03/ 06/ 2000),

Stronger, but Challenges in Fighting Review Could Improve Credibility of T-
NSIAD/ RCED- 00- 119 Corruption Remain (04/ 06/ 2000), Radiation Exposure
Estimates NSIAD- 00- 73

(01/ 28/ 2000), HEHS- 00- 32 Welfare Reform: Implementing DOT's

Access to Jobs Program in Its First World Trade Organization: China's
Veterans' Benefits: Promising ClaimsProcessing Year (11/ 26/ 1999), RCED-
00- 14

Membership Status and Normal Trade Practices Need to Be Relations Issues
(03/ 17/ 2000), Evaluated (04/ 07/ 2000), HEHS- 00- 65

Welfare Reform: Improving State NSIAD- 00- 94 Automated Systems Requires
Veterans' Employment and Training Coordinated Federal Effort World Trade
Organization: Issues in Service: Better Planning Needed to (04/ 27/ 2000),
HEHS- 00- 48

Dispute Settlement (08/ 09/ 2000), Address Future Needs (09/ 27/ 2000),

NSIAD- 00- 210 T- HEHS- 00- 206

Welfare Reform: State Sanction Policies and Number of Families World Trade
Organization: Progress in Veterans' Health Care: VA Needs Better Affected
(03/ 31/ 2000), HEHS- 00- 44 Agricultural Trade Negotiations May Data on
Extent and Causes of Waiting Be Slow (03/ 07/ 2000), T- NSIAD- 00- 122 Times
(05/ 31/ 2000), HEHS- 00- 90

Welfare Reform: Work- Site- Based Activities Can Play an Important Role
World Trade Organization: Seattle Visa Issuance: Observations on the

in TANF Programs (07/ 28/ 2000), Ministerial: Outcomes and Lessons

Issuance of Visas for Religious HEHS- 00- 122

Learned (02/ 08/ 2000), T- NSIAD- 00- 84 Workers (06/ 29/ 2000), T- NSIAD-
00- 207

West Nile Virus Outbreak: Lessons for World Trade Organization: Seattle
Voluntary Consensus Standards:

Public Health Preparedness Ministerial: Outcomes and Lessons Agencies'
Compliance With the

(09/ 11/ 2000), HEHS- 00- 180 Learned (02/ 10/ 2000), T- NSIAD- 00- 86

National Technology Transfer and Advancement Act (03/ 15/ 2000),

Whistleblower Protection: VA Did World Trade Organization: Status of T-
RCED- 00- 122

Little Until Recently to Inform China's Trade Commitments to the Employees
About Their Rights United States and Other Members Water Infrastructure:
Water- Efficient (04/ 14/ 2000), GGD- 00- 70

(05/ 16/ 2000), NSIAD- 00- 142 Plumbing Fixtures Reduce Water Consumption
and Wastewater Flows

Wildlife Management: Negotiations on World Trade Organization: U. S. (08/
31/ 2000), RCED- 00- 232 a Long- Term Plan for Managing Experience in
Dispute Settlement

System: The First Five Years Year 2000 Computing Challenge:

2000 Census: Update on Data Capture (06/ 20/ 2000), T- NSIAD/ OGC- 00- 202
Readiness of Key State- Administered Operations and System (09/ 29/ 2000),
Federal Programs (10/ 06/ 1999),

AIMD- 00- 324R World Trade Organization: U. S.

T- AIMD- 00- 9 Experience to Date in Dispute

2000 Census: Update on Essential Settlement System (06/ 14/ 2000),

Year 2000 Computing Challenge: State Operations (03/ 14/ 2000), NSIAD/ OGC-
00- 196BR and USAID Need to Strengthen T- GGD/ AIMD- 00- 119 Business
Continuity Planning Year 2000 Computing Challenge: (10/ 21/ 1999), T- AIMD-
00- 25 Compliance Status Information on Biomedical Equipment (10/ 21/ 1999),

Year 2000 Computing Challenge: T- AIMD- 00- 26

Update on the Readiness of the Department of Veterans Affairs Year 2000
Computing Challenge: DEA (10/ 28/ 1999), T- AIMD- 00- 39 Has Developed Plans
and Established Controls for Business Continuity Year 2000: Insurance
Regulators Have Planning (10/ 14/ 1999), AIMD- 00- 8

Accelerated Oversight, but Some Gaps Remain (12/ 20/ 1999), GGD- 00- 42 Year
2000 Computing Challenge: FBI Needs to Complete Business

Y2K Computing Challenge: Day One Continuity Plans (10/ 22/ 1999),

Planning and Operations Guide AIMD- 00- 11 (10/ 01/ 1999), AIMD- 10.1.22

Year 2000 Computing Challenge: Y2K Computing Challenge: Nuclear

Federal Business Continuity and Power Industry Reported Nearly Contingency
Plans and Day One Ready; More Risk Reduction Measures Strategies (10/ 29/
1999), T- AIMD- 00- 40 Can Be Taken (10/ 26/ 1999), T- AIMD- 00- 27 Year
2000 Computing Challenge: Financial Management Service Has

2000 Census: Actions Taken to Established Effective Year 2000 Improve the Be
Counted and Testing Controls (10/ 29/ 1999), Questionnaire Assistance Center
AIMD- 00- 24

Programs (02/ 25/ 2000), GGD- 00- 47 Year 2000 Computing Challenge:

2000 Census: Contingency Planning Leadership and Partnerships Result in
Needed to Address Risks That Pose a Limited Rollover Disruptions Threat to a
Successful Census (01/ 27/ 2000), T- AIMD- 00- 70 (12/ 14/ 1999), GGD- 00- 6

Year 2000 Computing Challenge: 2000 Census: New Data Capture

Lessons Learned Can Be Applied to System Progress and Risks Other Management
Challenges (02/ 04/ 2000), AIMD- 00- 61 (09/ 12/ 2000), AIMD- 00- 290

2000 Census: Progress Report on the Year 2000 Computing Challenge:

Mail Response Rate and Key Noteworthy Improvements in Operations (04/ 05/
2000), Readiness But Vulnerabilities Remain

T- GGD/ AIMD- 00- 136 (11/ 04/ 1999), T- AIMD- 00- 37

2000 Census: Status of Key Operations Year 2000 Computing Challenge: (02/
15/ 2000), T- GGD/ AIMD- 00- 91 Readiness of FBI's National Instant Criminal
Background Check System 2000 Census: Status of Nonresponse Can Be Improved
(12/ 16/ 1999),

Follow- up and Key Operations AIMD/ GGD- 00- 49 (05/ 11/ 2000), T- GGD/
AIMD- 00- 164

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GAO United States General Accounting Office

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United States General Accounting Office Washington, D. C. 20548- 0001

Official Business Penalty for Private Use $300

Address Correction Requested First Class

Postage & Fees Paid GAO Permit No. GI00 PRIORITY
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