United States General Accounting Office Information Systems and Technology GAO Services

March 2001 Abstracts of Reports and Testimony: Fiscal Year 2000

GAO-01-558SP

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 efficiently and effectively, (3) investigating allegations of illegal and 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 between Oct. 1, 1999, and Sept. 30, 2000. These summaries, which Use the Annual Index 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.

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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 • Ι nformation Management • International Affairs • Justice and Law Enforcement • National Defense

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• 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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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,

Page 6 GAO-01-558SP Subject Index 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

Page 7 GAO-01-558SP Subject Index 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-to- disabled worker sustain a second chemists’ returning drug evidence to a end 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 self- drugs within 90 days of receiving logistics. For each functional area, insured 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

Page 8 GAO-01-558SP Subject Index 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 Testing. 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 end- depository in the drug vault at one of GAO noted that information on the to-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-to- locate each item that GAO chose for The reliability of contract disbursing end 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

Page 9 GAO-01-558SP Subject Index 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-- renovated and tested both, (2) requirements. These requirements are Australia, 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-to- Management Improvement Act of provides accountability for making end 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

Page 10 GAO-01-558SP Subject Index 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/AIMD- pages). Accrual Budgeting: system as well as the risks that the 98-68, 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-- findings to contractor monitoring and Y2K remediation. Of 153 mission might 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 long- long criticized claims contractors for remediation for four of its 153 term 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

Page 11 GAO-01-558SP Subject Index 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-00- 118, Mar. 15 (22 pages). challenges for IRS management. 104, 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

Page 12 GAO-01-558SP Subject Index 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

Page 13 GAO-01-558SP Subject Index 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/T- costs? How does the Bureau define Furthermore, GAO found no AIMD-00-113, Feb. 2000.) GAO overhead? How does the Bureau

Page 14 GAO-01-558SP Subject Index 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 “off- pages). Information Security: budget” 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-- recordkeeping and financial reporting; these laboratories is that DOE lacks an for 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

Page 15 GAO-01-558SP Subject Index 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-- a human capital assessment has not pages). Financial Audit: Federal investigations or checks--of contractor been done to identify short- and long- employees commensurate with the term information technology

Page 16 GAO-01-558SP Subject Index 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 tax- specific requirements of individual royalty payments, with another $1.2 processing 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

Page 17 GAO-01-558SP Subject Index 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 mid- complete, and a definition of a target February, 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

Page 18 GAO-01-558SP Subject Index 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 Cross- information on lessons learned from IT total account balance in every year Servicing 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 cross- and disruption. Although two VA servicing. FMS had requested written

Page 19 GAO-01-558SP Subject Index 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 long- statistics as well as FMS’ collection appropriation to the Army. NSO standing 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. Cross- of the Memorial Day and July 4th TAAMS. servicing 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.

Page 20 GAO-01-558SP Subject Index This report focuses on the status of (GSA), and the Department of Labor-- major challenges. For example, financial management issues at the use 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 day- COTS systems. Quantifiable benefits prompted by the act are identified and to-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

Page 21 GAO-01-558SP Subject Index 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-- Administration employee who pled and experiences that can help resolve extending 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 cost- investigation determined that the sustained and effective bipartisan beneficial 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

Page 22 GAO-01-558SP Subject Index 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

Page 23 GAO-01-558SP Subject Index 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)

Page 24 GAO-01-558SP Subject Index 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. ¹KidSaveº 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

Page 25 GAO-01-558SP Subject Index 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 fee- The Air Force depot maintenance for-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

Page 26 GAO-01-558SP Subject Index 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 real- also found shortages. The underlying computer system architecture, time 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

Page 27 GAO-01-558SP Subject Index 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

Page 28 GAO-01-558SP Subject Index 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 cost- reporting of commodity distribution historically made an extraordinary effective 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

Page 29 GAO-01-558SP Subject Index 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 Testimony 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-AIMD- system and alternatives to that system. particularly the growth in Internet use, 99-241, 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

Page 30 GAO-01-558SP Subject Index 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, end- and Technology Subcommittee, House to-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,

Page 31 GAO-01-558SP Subject Index 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

Page 32 GAO-01-558SP Subject Index 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 on- testimony discusses (1) VA’s efforts to government operations. The Plan is budget 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,

Page 33 GAO-01-558SP Subject Index 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

Page 34 GAO-01-558SP Subject Index 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

Page 35 GAO-01-558SP Subject Index 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/AIMD- Challenges, by Linda Calbom, Director, Administration (HCFA) is supposed to 00-66. 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

Page 36 GAO-01-558SP Subject Index 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/T- establishing federal chief information Management, Information and HEHS/AIMD-00-77, Feb. 2000, GAO/T- officers and the challenges that remain Technology Subcommittee, House HEHS/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.

Page 37 GAO-01-558SP Subject Index 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 day- (2) the relationship between the audit pages). Information Security: to-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

Page 38 GAO-01-558SP Subject Index 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 cross- Projects Not Effectively Monitored, by pages). Financial Audits: American servicing 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

Page 39 GAO-01-558SP Subject Index 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 long- designed, built, and staffed as well as the possibility of computer term 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,

Page 40 GAO-01-558SP Subject Index 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

Page 41 GAO-01-558SP Subject Index 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

Page 42 GAO-01-558SP Subject Index 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-for- response rate objective, (2) collecting will face as it proceeds. service 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-for- Management and Workforce Issues, Budget. service 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.

Page 43 GAO-01-558SP Subject Index 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, long- important changes to its tax- the timely and accurate completion of standing management problems and processing 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

Page 44 GAO-01-558SP Subject Index 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 private- the legislation was passed. IRS pages). Debt Collection: Barring sector 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

Page 45 GAO-01-558SP Subject Index 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 cost- medical stockpiles that would be used On the other hand, SSA’s efforts to conscious 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

Page 46 GAO-01-558SP Subject Index 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,

Page 47 GAO-01-558SP Subject Index 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 claims- representation for disability applicants within the Navy, how it will be funded, processing 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.

Page 48 GAO-01-558SP Subject Index 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-00- FBI’s efforts to make the system Year systems but faces continuing 2, 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

Page 49 GAO-01-558SP Subject Index 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

Page 50 GAO-01-558SP Subject Index 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 trade- performance; (3) refining performance removing revenue officers from its offs 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 performance- assets are done “in-house” by an IRS census applicant pool, additional based 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 performance- already in place, such contingency oriented; (2) establishing relationships

Page 51 GAO-01-558SP Subject Index 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/GGD- consistent. of perceived high loan denial and low 81-6, 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.

Page 52 GAO-01-558SP Subject Index 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

Page 53 GAO-01-558SP Subject Index 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 African- stopped millions of dollars in American 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-GGD- about 102,000 passengers were relying on a temporary training facility 00-63, 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, African- using race as a key factor in deciding American 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

Page 54 GAO-01-558SP Subject Index limitations. These analyses provide no preparations for the Year 2000 date an estimated 8 million additional on- conclusive empirical data to determine change and (2) discusses the status of line 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 broker- 1984 Summer Olympic Games. Most of concern was the limited attention dealers 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

Page 55 GAO-01-558SP Subject Index 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-- Structured Settlements: The implications for worldwide financial especially 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).

Page 56 GAO-01-558SP Subject Index GAO (1) describes the general GGD-00-52, Feb. 4, 2000 (19 pages). year 1998. Members of Congress have characteristics of the regulators’ risk- Managing for Results: Challenges raised concerns about the burden based 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

Page 57 GAO-01-558SP Subject Index 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

Page 58 GAO-01-558SP Subject Index 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 Clinger- slots remained unfilled. As of federal payments totaling $2.1 billion Cohen 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

Page 59 GAO-01-558SP Subject Index 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 33- Personnel Policies Requires Further Impact of Gambling: Economic Effects cent 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,

Page 60 GAO-01-558SP Subject Index 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 low- Provisions. misconduct, such as lying under oath income 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 computer- Lorton Closure Process. existing government contracts into generated 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-- Ohio, the Office of the Corrections contract consolidation. Congress and amounts 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

Page 61 GAO-01-558SP Subject Index 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

Page 62 GAO-01-558SP Subject Index 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 anti- Trading Systems. numbered less than 100 enrollees for smuggling 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 anti- participants, they have also raised GGD-00-101BR, May 31, 2000 (59 smuggling 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 exchange- and FBI investigators disagreeing over automated case-tracking and traded 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

Page 63 GAO-01-558SP Subject Index 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 broker- improving the effectiveness and the lowest. These projected retirement dealers is difficult--if not impossible-- efficiency of crosscutting programs. trends show that the government’s for 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.

Page 64 GAO-01-558SP Subject Index 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 post- GGD-00-125, May 25, 2000 (19 pages). for financial services in dollars, they Cold 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

Page 65 GAO-01-558SP Subject Index 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 self- Banks represent a small percentage of to the wrong people. assessments, 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 S- question of whether the government worksheets every six months; instead corporations and the potential impact still needs NTIS. To help in this worksheets are completed on a yearly of those changes primarily on

Page 66 GAO-01-558SP Subject Index community banks’ decisions to elect S- will focus on the needs of small processing unilateral APAs and the corporation 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 Tax- in them play an important role in IRS services developed specifically for Exemption 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

Page 67 GAO-01-558SP Subject Index 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 results- tax was first enacted in 1969 after the oriented 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

Page 68 GAO-01-558SP Subject Index 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 e- federal agency that oversees and commerce 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

Page 69 GAO-01-558SP Subject Index 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 on- policies or practices that were permitted in EPA’s RFA guidance, it line posting of privacy policies. Sixty- discriminatory. could have chosen not to certify the seven 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.

Page 70 GAO-01-558SP Subject Index 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

Page 71 GAO-01-558SP Subject Index 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

Page 72 GAO-01-558SP Subject Index 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 Anti- within two hours or less and that the consequences for foreign fee Drug 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 real- disbursed, and whether ONDCP computer system architecture, time 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

Page 73 GAO-01-558SP Subject Index 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-of- these meetings at a time when implications for U.S. trade and state 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.

Page 74 GAO-01-558SP Subject Index 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’ full- such entities to both carry insurance businesses, the type of agencies time 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 high- Assistant Comptroller General for can file a protest challenging a federal ranking 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

Page 75 GAO-01-558SP Subject Index assistance visits are all on the rise. industries and the use of foreign Testimony 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 revenue- T-AIMD/GGD-00-179, May 22, 2000 30 years old, jeopardizing the raising 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,

Page 76 GAO-01-558SP Subject Index 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

Page 77 GAO-01-558SP Subject Index 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

Page 78 GAO-01-558SP Subject Index 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

Page 79 GAO-01-558SP Subject Index 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 cost- violations is really going down. And programs were effective in motivating containment initiatives, such as even if the number of violations is their employees to exceed

Page 80 GAO-01-558SP Subject Index 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 33- J. Christopher Mihm, Associate investments needed if their smaller cent 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

Page 81 GAO-01-558SP Subject Index IRS Restructuring and Reform Act of orders. These orders arose from long- human resources. The Senior Real 1998 requires IRS to place more standing 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

Page 82 GAO-01-558SP Subject Index 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 high- conditional line of credit with the authority to offer e-commerce performing 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 e- independently of the influence of the Mac have successfully lowered commerce 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 government- example, USPS has introduced disadvantages of creating a single sponsored 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,

Page 83 GAO-01-558SP Subject Index 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 mid- and periodic on-site examinations. (16 pages). 2000 Census: Update on August 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 tax- Despite being barred from the largest peace-time mobilization will processing 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.

Page 84 GAO-01-558SP Subject Index 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, long- Director, Tax Policy and the timely and accurate completion of standing 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,

Page 85 GAO-01-558SP Subject Index 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 private- problems in two key areas: Delinquent Taxpayers From Receiving sector 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.

Page 86 GAO-01-558SP Subject Index 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 high- Paperwork Reduction Subcommittee, for the buildings under its control, and ranking 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’ full- narrowly tailored and had little effect methodology in future building time 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

Page 87 GAO-01-558SP Subject Index 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, ¹KidSaveº 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

Page 88 GAO-01-558SP Subject Index 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 Anti- implementation of these two estimates of the total number of fires Drug 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

Page 89 GAO-01-558SP Subject Index 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/T- of migrant crop workers. MHS’s Richmond. Also, premiums for HEHS-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 child- activities included in MHS’s definition mechanisms are not applied hour 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 high- studies that measure MEP’s and MHS’s cannot be certain whether some states quality 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.

Page 90 GAO-01-558SP Subject Index 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 Low- resulted in processing times that were suggest moderating the effect of a Income Families.

Page 91 GAO-01-558SP Subject Index 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 low- areas outside their jurisdiction, and one national study has been income 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 self- supplemented Head Start funds, and 19 interjurisdictional adoption processes sufficient. 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. Low- children who are waiting and at issues helping youths make the transition income 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/HEHS- placement across state and county how to interact with adults, such as 00-17, 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.

Page 92 GAO-01-558SP Subject Index 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

Page 93 GAO-01-558SP Subject Index 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

Page 94 GAO-01-558SP Subject Index 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.

Page 95 GAO-01-558SP Subject Index 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 self- occasionally claimed reimbursement required to undertake other efforts to reported 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

Page 96 GAO-01-558SP Subject Index 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-- Medicare Contractors: Further take steps to improve their automated that 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.

Page 97 GAO-01-558SP Subject Index 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 cost- and that its drug assistance services to determine the effectiveness of drug effectively 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 long- rural areas. Most CARE Act funds go to information to Congress. SAMHSA is standing 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-HEHS- Strategies Is Needed, by Stephen P. Additional Improvements. 00-60, 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,

Page 98 GAO-01-558SP Subject Index 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 Claims- process. mandate to maintain capacity in Processing 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

Page 99 GAO-01-558SP Subject Index 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 two- what has been done in response to 1997, but, as of December 1999, only thirds 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 higher- of Workforce. them. Current annual appropriations income 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 low- enough to meet agency needs. The counterparts in 1996--numbers that paid 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

Page 100 GAO-01-558SP Subject Index 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

Page 101 GAO-01-558SP Subject Index 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 self- HEHS-00-89, June 1, 2000 (57 pages). information is lacking to help set test funded 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

Page 102 GAO-01-558SP Subject Index 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 long- a result of the federal law. About two- improve the data’s reliability by term care services only. Colorado is thirds 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

Page 103 GAO-01-558SP Subject Index 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-Elderly- The National Institutes of Health (NIH) all the effects of research, and this is Growth 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 Available. 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 two- requirements and the purpose of the facilitate some interagency thirds 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

Page 104 GAO-01-558SP Subject Index 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 most- strengthen oversight would be for adjuster to better target the necessary favored private purchasers. state agencies and ESRD’s networks to fixed costs of providers in rural areas. Manufacturers must also sell brand- share information on complaints and A review of 1998 claims data reveals name drugs listed on the FSS to four known quality-of-care problems at that payment denials have varied federal purchasers--Veterans’ Affairs,

Page 105 GAO-01-558SP Subject Index the Department of Defense, the Public Under welfare reform, adults who difficult to implement. Because the Health Service, and the Coast Guard-- receive assistance under the demonstrated health risks from SUD at 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-- HEHS-00-130, Sept. 18, 2000 (58 raise the federal prices. The extent to states will rely more heavily on work- pages). Pension Benefit Guaranty which prices would change would vary site 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-Site- reprocessing. Nonetheless, the new Business and the Senate Committee on Based 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).

Page 106 GAO-01-558SP Subject Index 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 two- services than for those that provide year 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

Page 107 GAO-01-558SP Subject Index 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 low- Despite some difficulties, these three Athletes. income 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.

Page 108 GAO-01-558SP Subject Index 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 fee- the past decade, a period characterized HEHS-00-157, Sept. 7, 2000 (60 for-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 H- excess payments due to forecast error schools. Product sales--primarily soft 1B 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 (gift- entry are qualified for those jobs. INS $175,000--than its enrollees’ expected wrap, 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 corporate- Benefits, Adding Billions to Spending. copayments, and limits on the types of sponsored 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

Page 109 GAO-01-558SP Subject Index 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

Page 110 GAO-01-558SP Subject Index 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

Page 111 GAO-01-558SP Subject Index 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

Page 112 GAO-01-558SP Subject Index 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-than- with a traditional defined benefit plan Potential of the Quality Initiatives. average 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

Page 113 GAO-01-558SP Subject Index 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

Page 114 GAO-01-558SP Subject Index 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 Testimony 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

Page 115 GAO-01-558SP Subject Index 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

Page 116 GAO-01-558SP Subject Index 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

Page 117 GAO-01-558SP Subject Index 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-00- Scanlon, Director, Health Financing systems. HCFA similarly lacks data to 50. 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

Page 118 GAO-01-558SP Subject Index 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

Page 119 GAO-01-558SP Subject Index 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 Third- prototypes, focus groups, and a public modern facilities both at existing Party 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-

Page 120 GAO-01-558SP Subject Index 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-- lost its protection merely by being terms; and granting the entity the 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;

Page 121 GAO-01-558SP Subject Index 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

Page 122 GAO-01-558SP Subject Index 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 cost- identity theft have heightened public In addition, many employers may have effectively 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 long- describes (1) federal laws and 1996, specifically to offset the more standing 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 two- billing, reimbursement, budgeting, and the number is used, and (3) what thirds 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 two- treatment of TRICARE patients in VA persons have a unique social security thirds 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

Page 123 GAO-01-558SP Subject Index 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

Page 124 GAO-01-558SP Subject Index 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

Page 125 GAO-01-558SP Subject Index 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 out- nine states perform comprehensive generally provide agencies a of-home placements, and client provider enrollment activities. comfortable cushion to deliver satisfaction with services. Agencies Because HCFA is redesigning its necessary services. Some corporate

Page 126 GAO-01-558SP Subject Index 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-- business decisions. Ongoing GAO T-HEHS-00-192, Sept. 5, 2000 (14 thus 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

Page 127 GAO-01-558SP Subject Index 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

Page 128 GAO-01-558SP Subject Index 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.

Page 129 GAO-01-558SP Subject Index 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 cost- economic resources. Continuing prepare for the rising number of conscious 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.

Page 130 GAO-01-558SP Subject Index 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 claims- reducing the program’s growth, which additions must be considered in the processing 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 claims- federal surpluses provide an package should include a mechanism processing 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

Page 131 GAO-01-558SP Subject Index 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 school- example, issuing joint checks to the Kathryn Allen, Associate Director, based 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

Page 132 GAO-01-558SP Subject Index 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

Page 133 GAO-01-558SP Subject Index 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-- structure of defense traffic warranties are no longer active. that 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

Page 134 GAO-01-558SP Subject Index 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

Page 135 GAO-01-558SP Subject Index 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)-- NSIAD-00-14, Nov. 3, 1999 (28 pages). purchased (1) are not usable because funds 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 readiness- the space station. This report provides Army’s acquisition strategy related subactivities) and those DOD information on (1) the licenses granted underestimated the risks. reported as obligated for the same to NASA to export space station- subactivities, (2) identifies those O&M related 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 five- internal and external assessments of Workload Performance System year 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

Page 136 GAO-01-558SP Subject Index 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 longer- capital investment needed to develop term 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 re- information system. GAO discusses (1) opportunities for savings and engineering 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-- The Defense Department (DOD) is facilities, privatization-in-place is not that 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 maintenance- about the pricing of spare parts for have resulted so far from the base type 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

Page 137 GAO-01-558SP Subject Index 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 privatization- during peak periods in the early to late this amount is needed for wastewater in-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

Page 138 GAO-01-558SP Subject Index 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 load- jungle terrain. In the late 1970s, shipped to a disposal office, but were carrying 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, long- Vietnam is an ongoing Air Force study incorrectly recorded in DOD’s standing 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

Page 139 GAO-01-558SP Subject Index 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

Page 140 GAO-01-558SP Subject Index 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/T- than half of the servicemembers said vulnerability of this inventory to waste, NSIAD-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 "in- Program. NSIAD-00-37, Nov. 22, 1999 (39 transit 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

Page 141 GAO-01-558SP Subject Index 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 sole- their proliferation. Most of the and (3) how many high-performance source 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

Page 142 GAO-01-558SP Subject Index 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-- such as firefighters, police officers, Cost Goal Achievable If Major which 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

Page 143 GAO-01-558SP Subject Index 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 50- all troops. Moreover, because neither by increasing the use of cross- percent statutory cap. the Army nor the Marine Corps organizational 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

Page 144 GAO-01-558SP Subject Index officials had hoped initially that more closely to ensure that Instead, many of these technologies-- savings from the Reform Initiative management directives are carried out; such 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 ground- significant up-front investments to anticorruption efforts, both within the testing 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 long- technologies before entering an integrated strategy, investment term 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-to- Bank, however, operates in an Fighter acquisition strategy is Surface 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,

Page 145 GAO-01-558SP Subject Index 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

Page 146 GAO-01-558SP Subject Index 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

Page 147 GAO-01-558SP Subject Index $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) trade- and the pharmaceutical industry. This Readiness, House Committee on liberalizing 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

Page 148 GAO-01-558SP Subject Index 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

Page 149 GAO-01-558SP Subject Index 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 long- reserve forces, which provide combat programs or systems using or planning range 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

Page 150 GAO-01-558SP Subject Index 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

Page 151 GAO-01-558SP Subject Index 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 brand- kill vehicle to the higher acceleration name 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 cost- demanding payment have appealed to control 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

Page 152 GAO-01-558SP Subject Index (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-- weapons. GAO found that expanding weapon collection programs have the 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

Page 153 GAO-01-558SP Subject Index 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 performance- success of their efforts. Also, the assumptions that may not reflect the oriented 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)

Page 154 GAO-01-558SP Subject Index 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/A- assets, or implications of any undertaken concrete, measurable 18E/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, self- Implementation Council, and the (10 pages). sustaining 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/A- insurance, financing, and other allow NATO-led forces to be 18E/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/A- in loan guarantees since then to law enforcement system, and reform 18F (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/A- operating in developing countries and linked to reducing organized crime and 18D (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/A- sub-Saharan Africa. Investment also Corruption pervades public 18E/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.

Page 155 GAO-01-558SP Subject Index 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

Page 156 GAO-01-558SP Subject Index 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

Page 157 GAO-01-558SP Subject Index 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

Page 158 GAO-01-558SP Subject Index 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

Page 159 GAO-01-558SP Subject Index 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 depot- inherently governmental, commercial level 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

Page 160 GAO-01-558SP Subject Index 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

Page 161 GAO-01-558SP Subject Index 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

Page 162 GAO-01-558SP Subject Index 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 self- significantly. The Board saved money needed in how the Army and other sufficiency, 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

Page 163 GAO-01-558SP Subject Index 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 Inter- contractor personnel providing U.N. peacekeeping budget will be American 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, Ethiopia- from an average of $21 million a year and a lack of continuity among Eritrea, 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

Page 164 GAO-01-558SP Subject Index 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-00- (62 pages). Foreign Assistance: U.S. and reforms to address long-term 202, 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

Page 165 GAO-01-558SP Subject Index 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

Page 166 GAO-01-558SP Subject Index 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, Testimony 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

Page 167 GAO-01-558SP Subject Index 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 e- provides some perspectives on why Relations and Trade Issues, before the commerce 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

Page 168 GAO-01-558SP Subject Index 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

Page 169 GAO-01-558SP Subject Index 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 drug- computers to countries of concern-- undergone personnel security trafficking in Central and South including 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-- during the same period. According to been taken on these licenses and (2) uncovered 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/T- reasons for these deficiencies, GAO however. DOD faces several obstacles NSIAD-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-- repeatedly raised concerns about the the congressional actions on the fiscal relaxed 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 case- DOD. Other concerns include human control production costs. processing 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

Page 170 GAO-01-558SP Subject Index 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 Kwai- complexity of the issues to be the Seattle negotiation process had Cheung 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

Page 171 GAO-01-558SP Subject Index $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

Page 172 GAO-01-558SP Subject Index 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 ¹critical,º 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 life- computing power have been rapid. The readiness and lower retention rates cycle 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

Page 173 GAO-01-558SP Subject Index 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

Page 174 GAO-01-558SP Subject Index 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

Page 175 GAO-01-558SP Subject Index 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 built- and China. This testimony draws on threat, a national strategy, and agency in 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.

Page 176 GAO-01-558SP Subject Index 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-- engineering and manufacturing GAO/NSIAD-00-36.) These findings would 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

Page 177 GAO-01-558SP Subject Index 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 F- will be realized. It is too early to assess advantage of this category to help 22 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-00- develop a thorough understanding of testimony (1) discusses the status of 89. the terrorist threat. U.S. intelligence cost reduction plans, including some agencies track and analyze terrorist

Page 178 GAO-01-558SP Subject Index 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.

Page 179 GAO-01-558SP Subject Index 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

Page 180 GAO-01-558SP Subject Index 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-- so far. WTO cases have resulted in a support that had gone to these areas specifically, 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-of- Substantial compact expenditures state 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

Page 181 GAO-01-558SP Subject Index 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

Page 182 GAO-01-558SP Subject Index 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 Testimony 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 much- capital. The legislation would allow M. Walker, Comptroller General of the needed 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,

Page 183 GAO-01-558SP Subject Index 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 much- expected, are delivered late, or fail to Prudent decisions are required if needed 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

Page 184 GAO-01-558SP Subject Index 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 results- agencies and programs. It may be more "advisory committee" meetings within oriented 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-- began holding regular weekly pages). Bid Protests: Characteristics from strategic planning to information "Thursday" meetings with of Cases Filed in Federal Courts. technology to financial management to representatives of lobbying and other

Page 185 GAO-01-558SP Subject Index 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-00- Finance. businesses, the type of agencies 202, June 20 (10 pages). involved (civilian or defense), and the Member countries of the World Trade amount of the procurement at issue; Testimony 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

Page 186 GAO-01-558SP Subject Index 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 fee- less training than did the agencies’ full- publications issued between October for-service improper payments--two to time 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 high- Assistant Comptroller General for While Enhancements Hold Promise for ranking 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

Page 187 GAO-01-558SP Subject Index 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-OSI- accountability to TVA. Also, TVA’s states. Without adequate controls and 00-7, 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

Page 188 GAO-01-558SP Subject Index in transit within and between storage federal agencies or donate property to in fiscal year 1999 Medicare fee-for- facilities, repair facilities, and end qualified organizations. Inadequate service 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-for- fact been delivered. Twenty of the 23 invalid activity code to obtain more service 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 Testimony 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

Page 189 GAO-01-558SP Subject Index 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’ full- significant Medicaid payments for methodology in future building time 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 school- or under secretaries, and 24 other high- Kathryn Allen, Associate Director, based claims. HCFA has recently ranking 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

Page 190 GAO-01-558SP Subject Index 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

Page 191 GAO-01-558SP Subject Index 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

Page 192 GAO-01-558SP Subject Index 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 rights- and Parks; and the Forest Service have Fish and Wildlife Service have been of-way. Rail banking preserves a right- formed an interagency team to around for more than 120 years. The of-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 free- stocks, replaced fisheries lost as a these rights-of-way about the lack of ranging 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 rail- brucellosis, ranchers and public at federal hatcheries, and (3) health banked 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-of- for the long-term management of the RCED-00-12, Nov. 24, 1999 (21 pages). way 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

Page 193 GAO-01-558SP Subject Index 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 science- the least-toxic chemicals be used. local agencies, nonprofit groups, and based, 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,

Page 194 GAO-01-558SP Subject Index 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 "mark- opposed to other activities, such as construct--an accelerator that could to-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

Page 195 GAO-01-558SP Subject Index 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 "risk- protection against discrimination for authority for Superfund taxes expired; informed 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 risk- unaware of their right to seek judicial that have occurred since the 1980s and informed 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

Page 196 GAO-01-558SP Subject Index 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,

Page 197 GAO-01-558SP Subject Index 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

Page 198 GAO-01-558SP Subject Index 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 foreign- cost of labeling meat by country of Acid Rain: Emissions Trends and flagged 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 third- oxide levels remained stable. Sulfate party 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-- what issues do they believe require to Modify the Forest Plan. the Adirondack Mountains, the mid- further attention? Appalachian 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 ¹flagged,º 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

Page 199 GAO-01-558SP Subject Index 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

Page 200 GAO-01-558SP Subject Index 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-- percent of all benefits are provided system. These small and medium-sized explain 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-- Corps as having initiated from 1986 Florida, 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

Page 201 GAO-01-558SP Subject Index 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 low- alternative--without sacrificing communications capabilities. Before level 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 State- operates disposal facilities. This Information on WIC Nutrition Services Level 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

Page 202 GAO-01-558SP Subject Index 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

Page 203 GAO-01-558SP Subject Index 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: Long- unauthorized selling and buying of Standing 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

Page 204 GAO-01-558SP Subject Index 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 Results- vessels had phase-out dates before estimates that federal research in Oriented 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 single- partnership are jointly developing account for its performance. The hull 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.- government regulations, while their agency’s progress toward achieving the built 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.- Natural Resources Conservation Industry 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

Page 205 GAO-01-558SP Subject Index 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/T- contamination at Paducah focuses on local governments; tribal groups; and RCED-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

Page 206 GAO-01-558SP Subject Index suited to the site’s conditions. Also permanent shutdown of the highest- major issues that the initiative has underpinning the plan are assumptions risk 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 Soviet- engine maintenance and the taxiing of contaminants, such as plutonium, and Designed 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 Soviet- air traffic may yield little or no net of 2018. To treat the mixed waste and designed 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 airport- effective January 1997. Because of the strengthening nuclear regulatory related 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

Page 207 GAO-01-558SP Subject Index 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 20- the costs incurred by federal agencies to achieve greater consistency by percent 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,

Page 208 GAO-01-558SP Subject Index 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 single- asked to review EPA’s reforms to report in testimony before Congress; family 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-RCED- contracts since they started in April administrative reforms have 00-213, 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,

Page 209 GAO-01-558SP Subject Index 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-- California rise faster than they fall in of about 22 fatalities per year. New 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 high- and, instead, working with operators RCED-00-121, Apr. 28, 2000 (27 fructose 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

Page 210 GAO-01-558SP Subject Index 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 foreign- adequately staffed and funded, on by adding together the costs of intelligence-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

Page 211 GAO-01-558SP Subject Index 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--

Page 212 GAO-01-558SP Subject Index 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, Sequoia- Needed in Overseeing the Safety of firms were often unable to provide Kings 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

Page 213 GAO-01-558SP Subject Index 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/T- well as on the price of pollock. Federal Tort Claims Act: Issues RCED-00-234, July 12 (13 pages). Affecting Coverage for Tribal Self- RCED-00-178, Sept. 6, 2000 (161 Determination 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

Page 214 GAO-01-558SP Subject Index 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-- operations, breach the dams so that Estimates of Funding Requirements transience, 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:

Page 215 GAO-01-558SP Subject Index 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.

Page 216 GAO-01-558SP Subject Index 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 food- ongoing institutional oversight would Overall fuel economy trends reflect an borne 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 fuel- In response to significant public efficient 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

Page 217 GAO-01-558SP Subject Index 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

Page 218 GAO-01-558SP Subject Index 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 grant- hazardous waste cleanups, GAO Harmful, Nonnative Species. making 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 on- percent of this money. Activities to RCED-00-222, Aug. 30, 2000 (73 site 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: Water- went toward control of invasive addresses environmental concerns and Efficient 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

Page 219 GAO-01-558SP Subject Index 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-00- assistance. Some older persons believe infrastructure needs. It also discusses 297, 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 federal- however, included a means for pages). Food Assistance: Options for state 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

Page 220 GAO-01-558SP Subject Index 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/T- pages). Forest Service: Proposed Department of Housing and Urban RCED-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

Page 221 GAO-01-558SP Subject Index 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.

Page 222 GAO-01-558SP Subject Index 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 cost- estimated revenue losses for these tax historically made an extraordinary effective way. incentives should not be added investment in its infrastructure. For

Page 223 GAO-01-558SP Subject Index 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 revenue- things, GAO found that through June The Transportation Equity Act for the raising 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

Page 224 GAO-01-558SP Subject Index 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 Testimony 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

Page 225 GAO-01-558SP Subject Index 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.

Page 226 GAO-01-558SP Subject Index 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 light- of the assessments is the Harbor water 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 Internet- 1998 compared with fiscal year 1991, that the fuel oil is to be used for related 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 land- operations since fiscal year 1993, (2) Commercial Maritime Industry: based 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

Page 227 GAO-01-558SP Subject Index 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

Page 228 GAO-01-558SP Subject Index 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

Page 229 GAO-01-558SP Subject Index 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-- maximum daily loads (TMDL) for 3383, which would amend the Atomic with 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.

Page 230 GAO-01-558SP Subject Index 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 out- which Florida is to match the federal the health and safety of the public, of-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-00- Transportation Issues, before the and Related Agencies Subcommittee, 84, 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

Page 231 GAO-01-558SP Subject Index 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 single- states and local air pollution control assessment of the National family 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

Page 232 GAO-01-558SP Subject Index 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 out- Commerce. Homelessness in America is a complex of-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

Page 233 GAO-01-558SP Subject Index 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

Page 234 GAO-01-558SP Subject Index belong. This testimony summarizes the maintain an accountability record, a billion dollars to decide that the in- July 2000 report, GAO/RCED-00-169. assign a unique identification number, tank 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

Page 235 GAO-01-558SP Subject Index 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-00- burned more than 48,000 acres, Science. 152. 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,

Page 236 GAO-01-558SP Subject Index 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 self- management skills, even though most House Committee on Resources. sufficiency, 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-00- have delayed its processing of 197. T-RCED-00-277, Sept. 26, 2000 (11 discrimination complaints. Long- pages). Intercity Passenger Rail: standing 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 self- dispute resolution techniques to used within the Fish and Wildlife sufficiency. 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

Page 237 GAO-01-558SP Subject Index 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

Page 238 GAO-01-558SP Subject Index 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

Page 239 GAO-01-558SP Subject Index 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-- 1999 on food safety activities. In fiscal Energy, Resources, and Science Issues, specifically, 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

Page 240 GAO-01-558SP Subject Index countries. GAO’s remarks are based on a January 2000 report. (See GAO/RCED/NSIAD-00-55.)

Page 241 GAO-01-558SP Subject Index 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

Page 242 GAO-01-558SP Title Index 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 Aviation’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-

Page 243 GAO-01-558SP Title Index 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

Page 244 GAO-01-558SP Title Index 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.- Bias(02/01/2000), GGD-00-50 Industry 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

Page 245 GAO-01-558SP Title Index 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 Cross- Defense Acquisitions: Improvements Information Systems Protection Servicing 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 Cross- Defense Acquisitions: Need to Revise Security Information Act of 2000 Servicing 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

Page 246 GAO-01-558SP Title Index 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

Page 247 GAO-01-558SP Title Index 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

Page 248 GAO-01-558SP Title Index 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 Low- System (05/02/2000), T-RCED-00-163 Income 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

Page 249 GAO-01-558SP Title Index 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

Page 250 GAO-01-558SP Title Index 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 Self- of the Federal Financial Management in Improper Payments (10/29/1999), Determination 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

Page 251 GAO-01-558SP Title Index 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

Page 252 GAO-01-558SP Title Index 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 End- Government Auditing Standards: Use 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.

Page 253 GAO-01-558SP Title Index 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

Page 254 GAO-01-558SP Title Index 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-the- Shelf Software for Human Resources Functions (07/31/2000), AIMD-00-270

Page 255 GAO-01-558SP Title Index 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 Results- Inventory Management: Better Large Bank Mergers: Fair Lending Oriented 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

Page 256 GAO-01-558SP Title Index 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

Page 257 GAO-01-558SP Title Index 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

Page 258 GAO-01-558SP Title Index 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 Soviet- Behavior (04/28/2000), RCED-00-121 Designed 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

Page 259 GAO-01-558SP Title Index 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-- (04/07/2000), T-GGD/AIMD-00-141 Management Problems That Plague Uncertainties 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 Low- Contract Management Needs Payments Are Adequate Despite Income 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 Tax- Essential to Realize Potential of the Practices Need Improvements Exemption 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

Page 260 GAO-01-558SP Title Index 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

Page 261 GAO-01-558SP Title Index 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

Page 262 GAO-01-558SP Title Index 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 Return- (10/29/1999), RCED-00-25 Information to the Public (04/11/2000), to-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

Page 263 GAO-01-558SP Title Index 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-Elderly- Growth 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 State- Transportation Coordination: Benefits Tax Administration: IRS’ Low-Dollar Level 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

Page 264 GAO-01-558SP Title Index 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

Page 265 GAO-01-558SP Title Index 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 Claims- Year (11/26/1999), RCED-00-14 Membership Status and Normal Trade Processing 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

Page 266 GAO-01-558SP Title Index 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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