oversight

Abstracts of Reports and Testimony: Fiscal Year 1996

Published by the Government Accountability Office on 1997-02-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                  United States General Accounting Office

                  Office of Infonnation Management and
 GAO              Communications
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 February 1997

                  Abstracts of
                  Reports and
                  Testimony:
                  Fiscal Year 1996




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Introduction



                           The u.s. General AccoWlting Office (GAO) is a nonpartisan agency within the
                           legislative branch of the government. GAO conducts audits, surveys, investiga-
                           tions, and evaluations of federal programs. This work is either self-iItitiated or
                           done at the request of congressional committees or members. GAO's fmdings
                           and recommendations are published as reports to congressional members or
                           delivered as oral testimony to congressional committees. 761 reports are
                           included in the abstracts volume of tltis publication. Restricted and classified
                           products as well as correspondence are not included in the abstracts.

                           Abstracts of Reports and Testimony: Fiscal Year 1996 and Indexes for Reports
                           and Testimony: Fiscal Year 1996 is a two-volume publication. The first volume
                           contains full abstracts of reports and testimony listed alphabetically by division
                           or staff office, and the second volume contains several indexes to assist you in
                           locating a particular report or testimony by subject matter, issue category, title,
                           or GAO witness. How to use the two volumes is described more fully below.
                           This publication is also available in electronic form on the Internet from GAO's
                           World Wide Web site, (http://www.gao.gov).


General Information        GAO report numbers contain the following information: the division or staff
                           office acronym, the last two digits of the fIScal year, and the sequentially
About GAO Reports and      assigned report number, e.g., GGD-96-1. Testimonies are shown with a "T" in
Testimony                  front of the division or staff office acronym; e.g. , T-NSLA.D-96-114.


Abstracts of Reports and   This volume contains the full abstracts of reports and testimony issued October
                           1, 1995, through September 30, 1996, as originally abstracted in GAO's monthly
Testimony: Fiscal Year     list of reports and testimony. The abstracts are arranged sequentially by report
1996                       number for each division and staff office. The abstract entry also includes
                           publication date, publication length, and the complete title followed by the full
                           abstract.

                           In fiscal year 1996, GAO had six program and technical divisions and several
                           offices that issued reports. Some reports were issued jointly by two or more
                           divisions; in tllOse cases, the report number includes the acronym for each
                           division, e.g. , AIMD/GGD-96-152.

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

                           Acronym       Division/Office Name

                           AIMD          Accounting and infonnation Management Division
                           GGD           General Government Division
                           HEHS          Health, Education and Human Services Division
                           NSIAD         National Security and International Affairs Division
                           OCG           Office of the Comptroller General
                           OGC           Office of the General Counsel



                           Pa ge                                                 OIMc/OPA-97-1A Introduction
                                OIMC         Office of Information Management and Communications
                                OP           Office of Policy
                                OPA          Office of Public Affairs
                                OS!          Office of Special Investigations
                                PEMD         Program Evaluation and Methodology Division
                                RCED         Resources, Community and Economic Development Division


Indexes for Abstracts of        The Indexes for Abstracts of Reports and Testimonv are designed to
                                lead you to a report or testimony from a variety of access points.
Reports and Testimony:          There are four indexes to help you in your search.
Fiscal Year 1996
                              • Category Index groups items by the broad subject headings used in GAO's
                                monthly list. The entries of the category index are grouped according to
                                subject matter under one of the following 26 subheadings:

                                             •   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
                                             •   Information Management
                                             •   International Affairs
                                             •   Justice and Law Enforcement
                                             •   National Defense
                                             •   Natural Resources
                                             •   Science, Space, and Technology
                                             •   Social Services
                                             •   Special Publications
                                             •   Tax Policy and Administration
                                             •   Transportation
                                             •   Veterans Affairs

                                While there may be instances where reports or testimony logically fit under
                                two or more categories, we have tried to place them under the most obvious
                                categories.



OIMClOPA-97-1A Introduction     Page ii
                       • Subject Index has generic subject area headings including tenns from GAO's
                         Thesaurus as well as geographic locations, weapon system names, and funds.
                         Reports and testimonies are listed alphabetically by title, followed by the report
                         or testimony number.

                       • Title Index lists all reports and testimonies alphabetically in natural word
                         order, along with the date of the publication and the report or
                         testimony number.

                       • Witness Index consists of an alphabetical list of GAO officials who have
                         testified before congressional committees and the testimony numbers.

                         Each index reference will lead you to an abstract that will give you enough
                         information to decide whether the report or testimony will provide the informa-
                         tion you want.


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                         send e-mail to: info@www.gao.govto receive more information.




                         Page iii                                              OIMCJOPA-97·1Alntroduction
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OIMClOPA-97-1Alntroduction   Page iv
Contents



Introduction                                                                        i


Abstracts      Accounting and Information Management(AFMD)                          1
               General Government Division (GGD)                                   24
               Health, Education, and Human Services Division (HERS)               54
               National Security and International Affairs Division (NSlAD)        86
               Office of the Comptroller General (OCG)                            128
               Office of the General Counsel (OGC)                                130
               Office of Information Management and Communications (OIMC)         132
               Office of Policy (OP)                                              133
               Office of Public Affairs (OPA)                                     134
               Office of Special Investigations (OSI)                             135
               Progranl Evaluation and Methodology Division (PEMD)                136
               Resources, Community, and Economic Development Dhision (RCED)      139


Title Index                                                                       178




               Page v                                       OIMClOPA-97-lAlntroduction
OlMClOPA-97-1A Introduction   Page vi
Subject Index



AlMD                                      include how ( I) the accounting           pension plans. GAO focuses on
                                          records of the Dallas Federal Reserve     federally sponsored defmed benefit
AIMD-96-4, Jan. 8, 1996 (18 pages).       Bank and its branches are reconciled,     and defmed contribution plans.
Financial Management: Implementa-         reviewed, maintained, and reported
tion of the Cash Management Im-           on; (2) accountability over assets is     AIMD-96-7, Mar. 27, 1996 (50 pages).
provement Act                             maintained; and (3) automated             CFO Act Financial Audits: Increased
                                          systems are used by the Dallas            Attention Must Be Given to Preparing
The Cash Management Improvement           Federal Reserve Bank and its              Navy's Financial ReportS.
Act seeks to promote equity in the        branches. GAO also identified an
exchange of funds between dIe             opportunity for the Federal Reserve to    After performing a broad-based
federal government and the states.        improve the consistency and the           review of the Navy's financial man-
This legislation was enacted in           efficiency of its note-accounting         agement operations, GAO concludes
response to allegations that states       procedures. The Board has contracted      that the Navy has made little progress
either drew cash advances well before     with a public accounting fmn for          in improving its general funds fman-
federal fimds were needed to make         annual audits of the Federal Reserve      cial management and reporting since
payments or used their own fimds to       Banks' combined fmancial statements       passage of the Chief Financial Offic-
satisfy federal program needs and         for each of the next five years. The      ers Act in 1990. Top military officials
were not reimbursed promptly by           fmn is also required to audit each of     must make achievement of the act's
federal agencies. GAO found that the      the individual Federal Reserve Banks      objectives a higher priority. Preparing
act has heightened awareness of cash      once during this period. GAO concurs      reliable fmancial statements is critical
management at both the state and          in this audit strategy. The auditor,      to (I) safeguarding and effectively
federal levels. The Treasury Depart-      however, faces significant challenges     managing the public's substantial
ment, federal agencies, and the states    arising from (1) the lack of indepen-     investment. in Navy operations; (2)
have made su bstantial progress in        dent parties to confmn the ownership      providing the Navy, the Defense
implementing the act. By revising the     and the original cost of U.S. Treasury    Department (DOD), and Congress
act's regulations to streamJine the       securities, which results from the        with a clear understanding of the
process and by emphasizing the            Federal Reserve Banks' unique role as     Navy's fmancial condition so that they
results of single audits as a way to      Treasury's fiscal agent; (2) the impos-   can control costs while maintaining
oversee state activities and enforce      sibility of confirming amounts held by    military readiness: and (3) ensuring
the act's requirements, the Treasury's    hundreds of millions of note holders;     the reliability of agencywide consoli-
Financial Management Service should       and (3) the notes' unusual characteris-   dated finan cial statements that DOD
be able to improve the act's effective-   tics (for example, they never mature      must prepare beginning with fiscal
ness and help alleviate any concerns      or expire and can be destroyed by         year 1996. The Navy, including the
about administrative burden.              events not under the control of the       Marine Corps, accounts for about one-
                                          Federal Reserve Banks).                   third of DOD's gross budget authority,
AIMD-96-5 , Feb. 9, 1996 (16 pages).                                                controls nearly half of DOD's assets,
Federal Reserve Banks: Internal           AIMD-96-6, Feb. 16, 1996 (226             and employs one-third of all DOD
Control, Accounting, and Auditing         pages). Public Pensions: Summary of       personnel. This report focuses on the
Issues.                                   Federal Pension Plan Dat:a                challenges that the Navy and the
                                                                                    Defense Finance and Accounting
GAO's work at the Federal Reserve         This report-one in a series of three      Service (DFAS) face to strengthen the
Bank of Dallas, its three branches,       reportS on the status of public pension   Navy's financial management and
and the Federal Reserve Automation        plan funding-provides summary data        reporting and to adequately plan for
Services has found internal control       on federal government pension plans.      preparing auditable fmancial st:ate-
issues significant enough to warrant      The other two reportS in the series       ments for the Navy within the re-
management's attention. These issues      address state and local government        quired time frame. It also recom-



                                           Page 1                                            GAOIOIMC-97-1A Subject Index
mends ways to improve the Navy's            provide for continued processing in        begun, or agreed to take, action on the
and DFAS' fmancial management and           the event of emergencies or service        remaining nine. This report follows up
reporting processes and internal            interruption. In addition, the Senate      on the status of fmancial reforms at
controls.                                   lacked a comprehensive strategic plan      the Travel Office. GAO found that as
                                            for securing Senate computer re-           of August 1995, the Travel Office had
AIMD-96-14, Jan. 16, 1996 (13               source that included the Center, the       implemented all but three of the
pages). Deficit Reduction: Better           Office of Telecommunications, and          criteria For those three, the Travel
Targeting Can Reduce Spending and           system users. The lack of such a plan      Office had not (1) billed customers
Improve Programs and Services.              could lead to security problems as the     within its stated 15-day requirement,
                                            Senate moves from a centralized            (2) paid vendors within its stated 45-
Targeting is a promising approach to        mainframe processing to a decentral-       day requirement, and (3) done bank
deficit reduction that can help reduce      ized network distributed throughout        reconciliation regularly.
spending as well as improve federal         the Senate.
programs and services. When re-                                                        AlMD-96-22, Feb. 26, 1996 (74
sources are poorly targeted, the            AIMD-96-IS, Nov. 16, 1995 (10              pages). Financial Audit: Federal
federal government spends more              pages). Review of Rural Telephone          Family Education Loan Program's
money than needed to reach its              Bank 1995 Loan Interest Rate Calcula-      Financial Statements for Fiscal Years
intended population and achieve             tion.                                      1994 and 1993.
program goals. Moreover, in a climate
of large budget deficits, the inefficien-   GAO is required to review each year        GAO reviewed the fmancial audit
cies resulting from poorly targeted         the interest rate charged to borrow-       prepared by the Education
programs and services has sometimes         ers, referred to as the cost of money      Department's Office of Inspector
called into question the legitimacy of      rate, as set by the Rural Telephone        General (OIG) on the Federal Family
continuing these programs or main-          Bank for the preceding fiscal year.        Education Loan Program's fmancial
taining them at current levels. This        The Rural Telephone Bank now               statements for fiscal years 1994 and
report summarizes previous GAO              calculates the following two rates: ( 1)   1993. The OIG was unable to express
work that proposed "better targeting"       the interest rate used for advances        an opinion on the fmancial statements
as a strategy for downsizing govern-        made during fiscal year 1995 on loans      as a whole because student loan data
ment. In past reports, GAO has              approved before fiscal year 1992           on which the Education Department
identified instances in which individu-     (referred to as loans from the liqwdat-    had based its costs to be incurred on
als, organizations, and jurisdictions       ing account); and (2) the interest rate    outstanding guaranteed loans were
have received program funds, service        used for advances made during fiscal       unreliable. In addition, the OIG
benefits, or tax subsidies. This report     year 1995 on loans approved during or      continued to report material weak-
presents examples illustrating better       after fiscal year 1992 (referred to as     nesses in internal controls related to
targeting in a wide range of federal        loans from the fmancing account).          the program's liabilities for loan
programs.                                   The Rural Telephone Bank's fiscal          guarantees and related program costs,
                                            year 1995 cost of money rates were         effectively monitoring payments to
AIMD-96-Hi, Dec. 22, 1995 (13               pegged at 6.04 percent and 6.88            guaranty agencies and lenders, and
pages). Financial Management:               percent for advances from the liqw-        ensuring accurate financial reporting.
General Computer Controls at the            dating account and the financing           Although internal control weaknesses
Senate Computer Center.                     account, respectively. GAO found           persisted during fiscal year 1994, the
                                            these rate determinations to be in         Education Department has been trying
Computer controls at the Senate             accordance with the law.                   to correct these shortcomings. GAO
Computer Center failed to adequatelY                                                   reviewed the OIG's work and concurs
protect sensitive data, such as that        AIMD-96-19R, Jan. 23, 1996 (9              in its fmdings.
related to payroll and personnel, from      pages). White House Travel.
unauthorized disclosure and modifica-                                                  AIMD-96-23, Dec. 15, 1995 (27
tion. Specifically, GAO found weak-         In a 1994 report (GAO/GGD-94-132),         pages). Budget Issues: Privatization!
nesses in the Center's ability to (1)       GAO used 29 criteria to evaluate           Divestiture Practices in Other Na-
restrict access to sensitive data,          fmancial management and procure-           tions.
programs, and other computer re-            ment operations at the White House
sources; (2) monitor the activity of        Travel Office. GAO reported that the       A variety of divestiture proposals are
users and programmers; (3) control          Travel Office had developed policies       now being considered in the United
changes to software; (4) segregate          and implemented procedures consis-         States, including selling the Naval
data processing duties; and (5)             tent with 20 of the criteria and had       Petroleum Reserves, four Power



GAO/OIMC-97-1A Subject Index                 Page 2
Marketing Administrations, and the         AIMD-96-27, Feb. 9, 1996 (21 pages).       This report focuses on the National
Helium Program. Because the U.S.           Denver AIrport: Operating Results and      Weather Service's (NWS) Advanced
government has limited experience          Financial Risks.                           Weather Interactive Processing
with asset divestiture, GAO examined                                                  System, which is designed to help
the experiences of other governments       After reviewing available fmancial         local weather forecasters obtain
for lessons that might prove useful for    data and analyzing the risks associ-       meteorological data from state-of-the-
the United States. For this study, GAO     ated with the fmancial condition of        art weather observing systems and
reviewed the divestiture experiences       the new Denver International AIrport,      national weather models, analyze
of the following five countries:           GAO has found no evidence that the         trends, and disseminate forecasts and
Canada, France, Mexico, New                airport will be unable to meet its         warnings to the public. This $525
Zealand, and the United Kingdom and        financial obligations, including           million system is to be the centerpiece
major industries that have been fully      payments to bondholders. This report       of NWS' massive $4.5 billion modern-
or partially privatized such as agricul-   (l) analyzes the limited data available    ization and restructuring program.
ture, mining and construction, manu-       on actual results after the airport        GAO discusses whether NWS' process
facturing, transportation and public       opened for operations in February          for developing the system has shown
utilities, fmance, insurance, and real     1995 and (2) identifies risks that could   that all proposed system capabilities
estate, and services. This report          affect the airport's future fmancial       will contribute to promised modern-
discusses (1) the privatization pro-       condition. GAO also reviews esti-          ization outcomes-better forecasts,
cess, (2) the valuation and preparation    mated cash flow and the airport's cash     fewer weather offices, and reduced
of the assets for sale, and (3) the use    reselVes.                                  staffmg. GAO summarized this report
and display of the sale proceeds for                                                  in testimony before Congress; see:
budgetary purposes.                        AIMD-96-28, Feb. 27, 1996 (6 pages).       Weather Forecasting: New Processing
                                           Embedded Computers: B-IB Comput-           System Faces Uncertainties and
AIMD-96-24, Dec. 28, 1995 (3 pages).       ers Must Be Upgraded to Support            Risks, by Jack L. Brock, Jr., Director
American Battle Monuments Commis-          Conventional Requirements.                 of Information Resources Manage-
sion.                                                                                 ment Issues, before the Subcommittee
                                           The Air Force plans to upgrade the         on Energy and the Environment,
The American Battle Monunlents             computer and software SystenlS             House Committee on Science. GAO!r-
Commission is authorized to build a        aboard the B-IB bomber, which the          AIMD-96-47, Feb. 29 (6 pages).
memorial on federal land in Washing-       Pentagon envisions as the "backbone"
ton, D.C. to honor those who served in     of its new bomber fleet. The goal is to    AIMD-96-33, Apr. 9, 1996 (14 pages).
World War II. This report presents the     transform the B-IB from a nuclear          Telecommunications Network: NASA
results of GAO's audit of the              weapons carrier to a conventional          Could Better Manage Its Planned
Commission's memorial fund, which          weapons carrier. The 1970s vintage         Consolidation.
consists of surcharge proceeds from        computer systems found on the B-IB
the sale of World War II commemora-        are operating at near capacity and,        NASA has yet to finalize its strategy
tive coins, investment interest, and       without upgrades, cannot support           for consolidating the management and
private contributions. GAO found that      additional weapons and capabilities,       the operations of its wide-area
the Commission had yet to establish a      such as cluster bombs, a global            telecommunications network, al-
separate account in the U.S. Treaswy       positioning system for better naviga-      though it has made some inlportant
for the memorial fund, as required by      tion and guidance, and more-accurate       decisions. NASA plans to begin
law. A separate account would              and higher-range weapons. This report      consolidating its networks inlmedi-
strengthen the fund's accountability       discusses recent decisions by the Air      ately at the Marshall Space Flight
by reducing the risk from commin-          Force to upgrade the B-IB's embed-         Center and procuring services from
gling memorial fund revenue with           ded computer systems, particularly in      commercial providers in fiscal year
other Commission money. GAO also           view of concerns GAO raised about          1998. NASA's decision to consolidate
found that the computer controls           the simple memory upgrade.                 its networks offers the potential for
needed strengthening to ensure that                                                   savings. Nevertheless, in adopting its
access to computer programs and            AIMD-96-29, Feb. 29, 1996 (18              current strategy, NASA neither
sensitive data is restricted to prevent    pages). Weather Forecasting: NWS           considered alternatives suggested by
unauthorized changes and disclo-           Has Not Demonstrated That New              officials at centers other than
sures.                                     Processing System Will Improve             Marshall nor tried to do a complete
                                           Mission Effectiveness.                     review of its networking needs to




                                            Page 3                                             GAO/OIMC-97-lA Subject Index
determine how best to satisfy them        Congressional Budget Office (CBO).         Andersen's opinion that the state-
independently of its ongoing network-     In GAO's opinion, the OMB and CBO          ments present fairly, in all material
ing activities.                           reports substantially complied with        respects, GPO's fmancial position and
                                          the act. GAO does raise some imple-        the results of its operations and cash
AIMD-96-39, Apr. 5, 1996 (20 pages).      mentation issues that are not, in          flows. GPO maintained effective
Medical ADP Systems: Defense              GAO's judgment, compliance issues.         internal controls over fmancial
Achieves Worldwide Deployment of          They relate to (1) a change in OMB's       reporting, and Arthur Andersen found
Composite Health Care System.             methodology for calculating inflation      no instances of noncompliance with
                                          for discretionary spending limits, (2)     laws and regulations that would be
As the backbone of the military's         OMB's reestimate of enacted emer-          reportable under generally accepted
medical operations, the Composite         gency legislation, and (3) differences     auditing standards. The fum did
Health Care System-an automated           in OMB and CBO spending estimates          identify several deficiencies in GPO's
medical system developed by the           of appropriation acts and direct           internal controls and operations,
Defense Department (DOD) at a cost        spending legislation.                      ranging from computer security
of $2.8 billion-will provide doctors                                                 wealcnesses to a failure to regularly
and nurses with almost instant access     AIMD-96-42, Apr. 22, 1996 (53              reconcile subsidiary ledgers for
to patient information, from medical      pages). District of Columbia: informa-     accounts receivable and payable.
history to current treatment and vital    tion on Health Care Costs.
statistics. DOD should be able to                                                    AIMD-96-54, Apr. 10, 1996 (27
significantly improve operations at its   Recent studies on the District of          pages). Defense Business Operations
medical facilities while reducing         Columbia's health care system have         Fund: DOD is Experiencing Difficulty
costs. lmproved appointment schedul-      concluded that the city's health care      in Managing the Fund's Cash.
ing will increase patients' access to     problems are aggravated by such
health care, while better access to       social factors as high rates of poverty,   Serious cash management problems at
patient informafion will save medical     crime, substance abuse, and unem-          the Defense Business Operations
persormel time. If DOD is to realize      ployment. These factors account for        Fund (DBOF), which disburses about
the system's full potential, however,     the sizable numbers of persons who         $75 billion armually, jeopardize the
physicians and other health care          do not seek preventive health care         goal of enhancing military readiness
providers must be able to access the      and carmot pay for medical treatment,      through business operations efficien-
system at all times. Although DOD's       the inappropriate use of D.C. General      cies. DBOF managers lack accurate
backup and recovery plan provides for     Hospital for primary care, and the         information on cash balances and, to
recovery from disruptions in com-         many trauma care patients at area          cover cash shortages, have relied on
puter service because of power            hospitals. To help Congress evaluate       advance billing for work yet to be
outages, it does not effectively          various restructuring proposals being      performed. At the end of fiscal year
address ml\ior disruptions requiring      considered for the District, this report   1995, the Defense Department had
the repair or the replacement of          discusses the District's health care       $2.6 billion in outstanding advance
equipment damaged by a natural            budget and the composition of the          billings; the Navy accounted for nearly
disaster. Health care providers have      District's health care system, includ-     $2 billion of that amount. At the same
become dependent on the patient data      ing the number of Medicaid recipients      time, DBOF had about $1 billion in
in the system, so any ml\ior disruption   and uninsured and the distribution of      outstanding accounts receivable that
could result in ir\jury or even death.    hospitals and clinics.                     were more than 120 days old and was
DOD could greatly reduce this risk by                                                unable to collect more than $200
developing a more effective backup        AIMD-96-52, Apr. 16, 1996 (48              million for completed work because
and recovery plan for its equipment.      pages). Financial Audit: U.S. Govern-      the billing documents did not specify
                                          ment Printing Office's Financial           the activities to bill. If these problems
AIMD-96-41, Feb. 16, 1996 (23             Statements for Fiscal Year 1995.           are not resolved, DOD may require
pages). Budget Issues: Compliance                                                    excessive amounts of cash to pay for
Report Required by the Budget             GAO is required to audit the U.S.          ongoing Fund operations, and oppor-
Enforcement Act of 1990.                  Government Printing Office's (GPO)         tunities for violations of the
                                          fmancial statements at least once          Antideficiency Act may increase.
As required by the Budget Enforce-        every three years. GAO contracted
ment Act of 1990, this compliance         with the independent public account-       AIMD-96-55, Mar. 19, 1996 (13
report covers budget sequestration        ing firm Arth ur Andersen to audit         pages). Budget Issues: Privatization
reports issued by the Office of Man-      GPO's financial statements for fiscal      Practices in Argentina
agement and Budget (OMB) and the          year 1995. GAO concurs in Arthur



GAO/OlMC-97-1A Subject Index               Page 4
This report, part of GAO's ongoing           analyze project costs and benefits.        yet to respond in writing to GAO's
work related to privatization practices      Finally, Customs has not established       recommendations on resolving these
in other nations, focuses on the             clear accountability for ensuring that     problems.
divestiture experiences of Argentina.        the requirements of the National
In a December 1995 report (GAOl              Customs Automation Program are             AIMD-96-61, Mar. 29, 1996 (35
AIMD-96-23), GAO examined the                successfully implemented.                  pages). Financial Audit: Panama
divestiture experiences of Canada,                                                      Canal Commission's 1995 and 1994
France, Mexico, New Zealand, and the         A1MD-96-59, Apr. 16, 1996 (21              Financial Statements.
United Kingdom. For Argentina, GAO           pages). USDA Telecommunications:
focused on policies and procedures           More Effort Needed to Address              This report presents the results of
for the divestiture of entities, as it did   Telephone Abuse and FraUd.                 GAO's audits of the Panama Canal
in its reviews of the above countries.                                                  Commission's financial statements for
GAO also examined the policies and           Because of a lack of adequate controls     fiscal years 1995 and 1994. In GAO's
procedures used to award conces-             over telephone use, the Agriculture        opinion, the Commission's fmancial
sions-the process by which the               Department (USDA), which spends            statements present fairly, in all
governmen t gives a private fum the          about $50 million annually on com-         material respects, its financial posi-
right to operate a government entity.        mercial telecommunications services,       tion for those fiscal years, and the
Between 1990 and 1993, more than             is putting itself at risk for fraud and    results of its operations, changes in
half of the privatizations in Argentina      abuse. GAO reviewed bills for all          capital, and cash flows in conformity
occurred through the awarding of             coUect calls over a four-month period      with generally accepted accounting
concessions. Specifically, this report       at USDA offices in the Washington,         principles. GAO believes that although
discusses (1) the privatization process      D.C., area and found that USDA had         improvements are needed in internal
in Argentina, (2) the valuation and the      accepted more than 600 inappropriate       controls governing the review of the
preparation of assets for sale, and (3)      coUect caDs-about half of all coUect       classification of obligations for
the use of sale proceeds.                    calls accepted and paid for by the         consultant services under congres-
                                             agency during this time-from               sional spending limitations, internal
AIMD-96-57, May 9, 1996 (15 pages).          prisoners. USDA has been aware of          controls reasonably ensured that
Customs Service Modernization:               coUect-calling abuse since 1994 but        losses, noncompliance, or misstate-
Strategic Infonnation Management             has not taken adequate steps to stop       ments material to the financial
Must Be Improved for National                it. USDA does not generally review         statements would be prevented or
Automation Program to Succeed.               telephone bills. As a result, the agency   detected GAO did find an
                                             cannot be certain whether interna-         Antideficiency Act violation related to
The U.S. Customs Service is very             tional long-distance calls originating     noncompliance with a congressional
aware that its ability to effectively        from its Washington, D.C., offices--       spending limitation. But the noncom-
conduct business in the future de-           which total tens of thousands of           pliance was not material to the
pends heavily on successfully modern-        doUars each month-are authorized.          financial statements, and management
izing its import process and auto-           GAO found several instances in which       has instituted internal controls that
mated systems. To its credit, Customs        persons had placed unauthorized calls      should prevent future noncompliance.
is redesigning its import process. It is     to sex and party lines abroad. More-       AIMD-96-63, May 3, 1996 (24 pages).
also developing a new automated              over, because of weaknesses in a           Financial Management: BlA's Tribal
import system-the Automated                  USDA contractor's voice mail equip-        Trust Fund Account Reconciliation
Commercial Environment- to support           ment, hackers were able to break into      Results.
this new process. Customs' efforts,          USDA's telephone system and make           The Bureau of Indian Affairs (BlA)
however, are at risk for failure             $40,000 to $50,000 worth of interna-       has spent more than five years and
because the agency is not effectively        tional long-distance calls. USDA           $21 million in a massive effort to
applying best practices to overcome          eventually paid the bill, even though      locate supporting documentation and
the serious risks arising from such an       the contractor admitted responsibility.    reconcile trust fund accounts, but
ambitious systems modernization. For         USDA has tried to correct some of its      tribal accounts could not be fully
example, contrary to best practices,         telecommunications management              reconciled or audited due to missing
Customs chose hardware, software,            weaknesses, including automating its       records and the lack of an audit trail
and telecommunications for its               current paper-based billing system so      in BlA's systems. Because BlA does
systems before it redesigned its key         that telephone bills can be verified       not know the universe of transactions
business processes. Moreover,                cost effectively. However, USDA has        or leases, it does not know the total
Customs has not been applying
specific criteria to assess projects and



                                              Page 5                                             GAO/OIllIC-97-lA Subject Index
amount of receipts and disbursements       practices of leading organizations        detennines that reasonable grounds
that should have been recorded.            with those of five agencies-NASA,         exist to warrant further investigation
Indian tribes have raised questions        the National Oceanic and Atmo-            of high-ranking government officials
about the adequacy and reliability of      spheric Administration, the Environ-      for alleged crimes. The Justice
the reconciliation results. If follow-up   mental Protection Agency, the Coast       Department is responsible for paying
meetings with the tribes do not            Guard, and the Internal Revenue           all costs relating to establishment and
resolve these concerns, the settlement     Service.                                  operation of independent counsel
process that GAO has recommended                                                     offices. GAO found the statements to
could be used as a framework for           AIMD-96-65, July 8, 1996 (26 pages).      be reliable in all material respects.
resolving disagreements on account         CFO Act Financial Audits: Navy Plant      GAO's consideration of internal
balances. In addition, due to cost         Property Accounting and Reporting Is      controls disclosed no material weak-
considerations and the potential lack      Unreliable.                               nesses. Further, GAO's audit dls-
of supporting documentation, recon-                                                  closed no reportable noncompliance
ciliations for individual Indian ac-       In March 1996, GAO reported that the      with the laws and regulations GAO
counts were never done, and no             Navy's fiscal year 1994 consolidated      tested.
alternative procedures were devel-         financial reports on general fund
oped to verify these account balances.     operations-which included $78             AIMD-96-70, July 23, 1996 (17
Because any attempt to reconcile           billion for the Navy's plant property-    pages). Information Management:
these accounts would be costly and         were substantially inaccurate because     Energy Lacks Data to Support Its
the results would be limited, these        of at least $225 billion in errors,       Information System Streamlining
accounts should be included in the         including upwards of $25.6 billion in     Effort.
settlement process.                        errors involving the Navy's plant
                                           property account balances. (See GAOl      In the past, GAO reported that the
AIMD-96-64, Sept. 30, 1996 (75             A1MD-96-7.) GAO made more than a          Energy Department (DOE) had spent
pages). Information Technology             dozen recommendations to avoid the        considerable sums to develop and
Investment: Agencies Can lmprove           mistakes made in preparing the            operate duplicate information systems
Performance, Reduce Costs, and             Navy's fIScal years 1994 consolidated     that supported its environmental
Minimize Risks.                            fmancial reports on general fund          management and other programs. This
                                           operations. This report describes in      report discusses problems that could
The management of information              greater detail the factors contributing   impair DOE's ability to eliminate
technology projects has long been a        to inaccurate reporting of the Navy's     duplicate information systems as it
significant problem for federal            plant property account balance. The       streamlines its information systems.
agencies. The government obligated         report also recommends additional         DOE has developed a baseline inven-
more than $23.5 billion toward             measures to ensure that the Navy has      tory of data on specific systems used
information technology products and        reliable information with which to        by the Department and its contrac-
services in fiscal year 1994-about         effectively manage and control the        tors. However, the inventory is
five percent of the government's total     billions of dollars the government has    substantially incomplete and lacks
discretionary spending. Yet the impact     invested in Navy plant property.          enough information describing the
of this spending on agency operations                                                systems' functional capabilities. As a
and service delivery has been mixed        AIMD-96-67 , Mar. 29, 1996 (32            result, the inventory will not be
at best. Federal computer systems          pages). Financial Audit: Independent      adequate to help eliminate duplicate
often cost millions more than ex-          Counsel Expenditures for the Six          information systems as part of the
pected, take longer to complete than       Months Ended September 30, 1995.          streamlining effort. The data deficien-
anticipated, and fail to significantly                                               cies exist largely because DOE has
improve the speed and quallty of           GAO audited the statements of             allowed its contractors wide latitude
federal programs--or reduce their          expenditures by eight independent         in developing and implementing
cost. Some private and public sector       counsel offices-Arlin M. Adams!           software inventory procedures and
organizations, however, have signifi-      Larry D. Thompson; David M. Barrett;      standards and has not required them
cantly improved performance by             Joseph E. diGenova; Robert B. Fiske,      to follow its software management
managing their information technol-        Jr.; Daniel S. Pearson; Donald C.         guidance. As a result, these contrac-
ogy resources within an overall            Smaltz; Kenneth W. Starr; and             tors do not consistently develop and
framework that aligns technology           Lawrence E. Walsh-for the six             maintain information on their systems
with business needs and priorities.        months ended September 30, 1995.          and use varying methods to classify
This report compares the information       Independent counsels may be ap-           systems according to their functions
technology investment management           pointed when the Attorney General         and capabilities.



GAO/OIMC-97-lA Subject Index                Page 6
AIMD-96-72, June 11, 1996 (31             dations GAO made during its testi-        is, whether it is subject to or exempt
pages). Prescription Drugs and            mony before Congress. These recom-        from sequestration or subject to any
Medicaid: Automated Review Systems        mendations, if fully implemented, will    special rules or limitations.
Can Help Promote Safety, Save             stre ngthen NWS' ability to achieve a
Money.                                    fair return on its investment in the      AIMD-96-81, Aug. 29, 1996 (34
                                          system.                                   pages). Defense TransPortation:
Inappropriate use of prescription                                                   Migration Systems Selected Without
drugs can lead to drug-induced illness,   AIMD-96-78, Aug. 15, 1996 (32             Adequate Analysis.
hospitalization, and even death.          pages). NASA Chief Information
Inappropriate drug use can also prove     Officer: Opportunities to Strengthen      A migration system is an automated
expensive for the Medicaid program.       Information Resources Management.         information system that replaces
As a result, Congress mandated that                                                 several systems that performed
states establish utilization review       NASA established a chief information      similar functions. Defense transporta-
programs-eaJled prospective re-           officer position in 1995, before          tion systems support common-user
views-to review Medicaid prescrip-        enactment of the Information Tech-        transportation needs in the armed
tions before drugs are dispensed.         nology Management Reform Act,             forces. As part of its Corporate
Automated prospective drug utiliza-       which requires all federal agencies to    Information Management initiative,
tion review systems are proving a low-    appoint chief information officers.       the Defense Department (DOD) plans
cost way for states to help both          Chief information officers are to         to migrate from an inventory of about
doctors and pharmacies safeguard          provide advice and assistance to          130 defense transportation systems.
Medicaid recipients from potentially      sertior management and program            DOD has little assurance, however,
harmful medical reactions. Although       officials on acquisition and manage-      that its transportation migration
the main emphasis of these systems-       ment of information resources. They       system choices are cost~ffective. In
appropriately-has been safety, both       are also responsible for establishing     April 1994, DOD developed a struc-
safety benefits and dollar savings        procedures to improve planrting and       tured approach to identify, select, and
accrue from their use. Because results    control of agency investments in          implement these systems. In its haste
vary on the basis of how such systems     information technology. This report       to meet a March 1997 deadline,
are administered, it is important that    (1) reviews NASA's approach to            however, DOD selected transportation
states share their experiences. Absent    establishing its chief information        migration systems without fully
any analysis of data from the Iowa        officer position, (2) evaluates chief     analyzing the alternatives, such as
demonstration project or any con-         information officer initiatives to date   acquiring new systems or contracting
certed effort by the Health Care          to improve information resources          for services. In making a quarter of its
Financing Administration to collect       management, and (3) identifies            transportation migration system
and share other states' experiences,      opportunities for NASA to strengthen      selections, DOD relied on incomplete
states have had only limited access to    its chief information officer position    and unverified data. Moreover, DOD
both safety and cost data-informa-        and improve its information resources     did not assess how making sigrtificant
tion that is critical to informed         management program.                       changes to transportation opera-
decisionmaking and to maximizing the                                                tions-through reengineering and
effectiveness and efficiency of auto-     AIMD-96-79, May 31, 1996 (173             outsourcing-would affect its migra-
mated prospective drug utilization        pages). Budget Issues: Inventory of       tion systems. The upshot is that DOD
revievv systems.                          Accounts With Spending Authority          has no guarantee that it will reap the
                                          and Permanent Appropriations, 1996.       savings anticipated from migration.
AIMD-96-74, May 13, 1996 ( 15
pages). Weather Forecasting: Recom-       This report updates GAO's 1987            AIMD-96-82, June 11, 1996 (22
mendations to Address New Weather         inventory of accounts with spending       pages). Financial Management: DOD
Processing System Development             authority and permanent appropria-        Needs to Lower the Disbursement
Risks.                                    tions, commonly known as "backdoor        Prevalidation Threshold
                                          authority." GAO provides information
GAO testified in February 1996 on the     on such accounts and analyzes the         Because of continuing problems with
National Weather Service's (NWS)          changes in the number and dollar          disbursements, the Defense Depart-
Advanced Weather Interactive Pre-         amounts of accounts with backdoor         ment (DOD) is now required to match
cessing System, the cornerstone of        authority. It also provides information   disbursements above a certain
NWS' $4.5 billion modernization           on each reported account's status         amount with the appropriate obliga-
program. (See GAO/T-AIMD-96-47.)          under the Balanced Budget and             tion in its accounting records before
This report discusses the recommen-       Emergency Deficit Control Act-that        making the disbursement-a process




                                           Page 7                                            GAO/OlMC-97 -lA Subject Index
lmown as disbursement prevalidation.       hackers become more sophisticated.         disseminate health infOlmation on
GAO found that prevalidation allowed       At a minimum, these attacks are a          preventive care, illness and injury
DOD to spot errors and prevent             multimillion dollar nuisance to the        management, treatment options, post-
problem disbursements from being           Pentagon. At worst, they pose a            treatment care, and other topics. Thls
recorded in its accounting records.        serious threat to national security.       report discusses consumer health
However, unless the 55 million             Attackers have seized control of           informatics-the use of computers
threshold is lowered at the Defense        entire DOD systems, some of which          and telecommunications to help
Finance and Accounting Service's           control critical functions, such as        consumers obtain information,
center in Columbus, Ohio, and the $1       weapons system research and devel-         analyze their health care needs, and
million threshold is lowered at the        opment, logistics, and [mance.             make decisions about their own
other payment centers, tens of billions    Attackers have also stolen, modified,      health. GAO provides information on
of dollars in transactions will continue   and destroyed data and software. The       (1) the demand for health information
to bypass this important control. Until    potential for catastrophic damage is       and the expanding capabilities of
a detailed plan is developed to ensure     great. DO 0 is taking steps to address     technology; (2) users' and developers'
that all payments are properly             this growing problem but faces major       views on potential systems advan-
prevalidated before taxpayer dollars       challenges in controlling unauthorized     tages and issues surrounding systems
are disbursed, the full benefits of        access to its computer systems. DOD        development and use; (3) government
prevalidations will not be realized.       is now trying to react to successful       involvement-federal, state, and
More importantly, even at its best,        attacks as it learns of them, but it has   local-in developing these technolo-
prevalidation will not solve the           no uniform policy for assessing risks,     gies; and (4) the status of related
military's disbursement problems, as       protecting its systems, responding to      efforts by the Department of Health
evidenced by nearly $22 billion worth      incidents, or assessing damage.            and Human Services. As part of this
of new problem disbursements that          Training of users and system and           review, GAO surveyed consumer
surfaced between October 1995 and          network administrators is haphazard        health informatics experts and
January 1996. Prevalidation seeks to       and constrained by limited resources.      presents their views on issues that
impose quality near the end of the         Technical solutions, such as flrewalJs,    need to be addressed when develop-
disbursement process. As a result, it      smart cards, and network monitoring        ing consumer health information
does not address the root problems         systems, should help, but their            systems. GAO summarized this report
inherent in poor systems and pro-          success depends on whether DOD             in testimony before Congress; see:
cesses, as well as failure to use basic    implements them in tandem with             Consumer Health Informatics: Emerg-
internal controls. DOD needs to (1)        better policy and personnel measures.      ing Issues, by Patricia T. Taylor,
overcome weaknesses in control             GAO summarized this report in              Director of Information Resources
procedures that enable problem             testimony before Congress; see:            Management Issues, before the
disbursements to occur and (2)             Information Security: Computer             Subcommittee on Human Services and
improve its contract pay, disbursing,      Attacks at Department of Defense           Intergovernmental Relations, House
and accounting processes and sys-          Pose Increasing Risks, by Jack L.          Committee on Government Reform
tems.                                      Brock, Jr. , Director of Defense           and Oversight. GAOrr-AlMD-9t>-I34,
                                           Information and Financial Manage-          July 26 (13 pages).
AIMD-96-84, May 22,1996 (44                ment Systems, before the Permanent
pages). Information Security: Com-         Subcommittee on Investigations,            AIMD-96-89, July 15, 1996 (79
puter Attacks at Department of             Senate Committee on Governmental           pages). Financial Audit: Federal
Defense Pose Increasing Risks.             Affairs. GAOrr-AIMD-9t>-92, May 22         Deposit Insurance Corporation's 1995
                                           (seven pages).                             and 1994 Financial Statements.
Unlmown and unauthorized persons
are increasingly attacking and gaining     AIMD-96-86 , July 26, 1996 (42             GAO audited the 1995 and 1994
access to highly sensitive information     pages). Consumer Health Informatics:       financial statements for three funds
in the Defense Department's (DOD)          Emerging Issues.                           administered by the Federal Deposit
computer systems. Although the exact                                                  Insurance Corporation (FDIC), the
number of attacks cannot be precisely      Technology has increased the amount        Bank Insurance Fund (BlF), the
determined, recent data suggest that       of health information available to the     Savings Association Insurance Fund
DOD may have experienced as many           public, allowing consumers to become       (SAIF), and the Federal Savings and
as 250,000 attacks last year. These        better educated and more involved in       Loan Insurance Corporation (FSLIC)
attacks are often successful, and the      their own health care. Government          Resolution Fund. GAO found that the
number of attacks is doubling each         and private health care organizations      financial statements of each fund,
year as Internet use increases and         rely on a variety of technologies to       taken as a whole, were reliable in all



GAO/OIMC-97-1A Subject Index                Page 8
material respects. Although some            lished to track cost, schedule, and        billion in operating materials and
internal controls should be improved,       functionality. Moreover, the necessary     supplies on board vessels and at
FDIC management fairly stated that          process discipline is in place to repeat   distribution sites, (2) the Navy's
its internal controls effectively           earlier successes on projects with         management of excess items of this
safeguarded assets from material loss,      similar applications. The upshot is        type, and (3) the accuracy of operat-
ensured compliance with laws and            that the Department of Veterans            ing unit records for operating materi-
regulations, and ensured that there         Affairs (VA) has little assurance that     als and supplies that GAO tested.
were no material misstatements in the       (1) investments in new software
financial statements of the three           development will acJtieve their            AIMD-96-95, May 31, 1996 (61
funds. There was no reportable              objectives or (2) software will be         pages). Telecommunications: FTS
noncompliance with laws and regula-         delivered consistent with cost and         2000 Cost Comparison.
tions. FDIC has addressed several           schedule estimates. GAO recommends
internal control weaknesses GAO             that VA delay any maJor investment in      This report identifies agencies that are
identified in its 1994 audits. However,     software development beyond what is        using the Federal Telecommunica-
FDIC has not fully addressed GAO's          needed to sustain critical day·to-day      tions System (ITS 2000) and com-
concerns regarding weaknesses in            operations until the repeatable level      pares telecommunications costs of
documentation nuuntained to support         of process maturity is achieved. VA        agencies that use FTS 2000 with those
asset recovery estimates. GAO's 1995        should also obtain expert advice on        of agencies that do not. GAO focuses
audits found continued weaknesses in        how to improve the ability of VBA and      on four ITS 2000 services: switched
(I) controls over FDIC's process for        the Austin Automation Center to            voice and dedi.c ated transmission,
estimating recoveries from failed           develop high-quality software, develop     which constitute the bulk of FTS 2000
institution assets, (2) FDIC's time and     a strategy to reach the repeatable         use, and packet switched and com-
attendance reporting process, and (3)       level of process maturity, implement       pressed video transmission. As of
FDIC's electronic data processing           that strategy quickly, and ensure that     March 1996, 139 agencies and other
controls. This report also discusses        any future contracts for software          government entities were using
the recent development of a signifi·        development require that the contrac·      telecommunications services provided
cant premium rate differential be-          tor have a software development            under the FTS 2000 contracts. GAO's
tween insured institutions of BlF and       capability of at least level 2.            comparison of telecommunications
SAlF as a result of BlF attaining its                                                  costs incurred by a sample of agen-
designated capitalization level. GAO        AIMD·96·94, Aug. 16, 1996 (28              cies that use non-FTS 2000 networks
discusses the impact this premium           pages). Navy Financial Management:         with what FTS 2000 would cost
rate differential may have on the thrift    Improved Management of Operating           produced mixed results, with some
industry's ability to fmance obliga·        Materials and Supplies Could Yield         costs comparable, some less, and
tions arising from the thrift crisis of     Significant Savings.                       others more.
the 1980s and on future deposit
insurance premium rates.                    In March 1996, GAO reported that the       AIMD-96·97, July 5, 1996 (13 pages).
                                            Navy's fiscal year 1994 consolidated       Financial Audit: Capitol Preservation
AIMD·96·90, June 19, 1996 (34               fmancial statements did not include        Fund for Years Ended September 30,
pages). Software Capability Evalua·         $14 billion worth of operating materi-     1995 and 1994.
tion: VA's Software Development             als and supplies, $5.7 billion of which
Process Is Immature.                        are located on vessels and at 17           The Capitol Preservation Commission
                                            distribution sites throughout the          was established in 1988 to help
GAO reviewed the development of             Atlantic and Pacific fleets. (See          preserve and make improvements to
computer software at the Veterans           consumables that were bought from          the United States Capitol. Operations
Benefits Administration (VBA) and at        the Defense Business Operations            of the Commission are paid for out of
the Department of Veterans Affairs'         Fund (DBOF), a revolving fund that         the Capitol Preservation Fund, which
Austin Automation Center. Neither           fmances the purchase of inventory          is sustained through charitable
VBA nor the Austin Automation               items for the military. This report        contributions and the sale of com-
Center had satisfied any of the key         provides a detailed assessment of the      memorative coins. GAO audited the
process areas required for a level 2 --..   Navy's fmancial reporting on, and          Fund's fmancial statements for the
capability, as described by the Soft·       management of, operating materials         fiscal years ending September 30,
ware Engineering Institute's five-level     and supplies that are not part of          1995 and 1994 and found that they
software capability model. Under a          DBOF inventories. GAO discusses (1)        were reliable in all material respects.
level 2 capability, basic project           the adequacy of the Navy's account-        In addition, there was no material
management processes are estab-             ability and visibility over its $5.7       weakness in the Fund's internal



                                             Page 9                                             GAO/OIMC·97-1A Subject Index
control structure and its operations       auditing standards, and the scope of      regulations. The following financial
for those years, and the Fund com-         business reporting and audit services.    management problems prevented
plied with laws and regulations.           GAO found that although the account-      GAO from rendering an opinion: (1)
                                           ing profession has made changes to        the amounts of total revenue ($1.4
AIMD-96-98, AIMD-96-98A, Sept              improve fmancial reporting and            trillion) and tax refunds ($122 billion)
24, 1996 (313 pages). The Accounting       auditing of public companies, several     cannot be verified or reconciled to
Profession: Major Issues: Progress         major issues remain unresolved            accounting records maintained for
and Concerns.                              These issues include auditor indepen-     individual taxpayers in the aggregate;
                                           dence, auditor responsibility for         (2) the amounts reported for taxes
Public confidence in the fairness of       detecting fraud and reporting on          collected (social security, income, and
financial reporting is critical to the     internal controls, public participation   excise taxes, for example) cannot be
effective functioning of the securities    in standard setting, the timeliness and   substantiated; (3) the reliability of
markets. Federal securities laws           relevance of accounting standards,        reported estimates of $113 billion for
require public companies to disclose       and maintainIDg the independence of       valid accounts receivable and $46
information that accurately describes      the Financial Accounting Standards        billion for collectible accounts
the financial condition of a company.      Board.                                    receivable cannot be determined; (4) a
These laws also require that financial                                               significant portion of the agency's
statements filed with the Securities       AIMD-96-99, Sept 30, 1996 (25             reported $3 billion in nonpayroll
and Exchange Commission (SEC) by           pages). DOD Accounting Systems:           operating expenses cannot be verified;
public companies be audited by             Efforts to Improve System for Navy        (5) the amounts IRS reported as
independent public accountants.            Need Overall Structure.                   appropriations available for expendi-
During the past 20 years, costly, well-                                              ture for operations cannot be recon-
publicized, and unexpected business        The Defense Finance and Accounting        ciled fully with Treasury's central
failures--such as the savings and loan     Service COFAS) is seeking to reduce       accounting records showing these
crisis and the resulting government        the number of Navy accounting             amounts, and hundreds of millions of
bailouts-have raised questions about       systems and to enhance a Navy-wide        dollars in differences have been
what the public expects from an            system to account for general fund        found.
independent audit of public compa-         operations. GAO found that enhance-
nies and how well the audit function       ments to DFAS' Standard Accounting        AIMD-96 -105, June 17, 1996 (70
meets those expectations. More             and Reporting System were not             pages). Telecommunications : Costs
recently, the globalization of bUSiness,   guided by a target systems architec-      Reported by Federal Organizations fo r
the increasing complexities of busi-       ture-a critical step in any systems       Fiscal Year 1995.
ness transactions, and advances in         development effort. As a result, DFAS'
information technology have chal-          attempts to upgrade the system and        In a May 1996 report (GAO/AIMD-96-
lenged the relevance and usefulness        correct its shortcomings have not         95), GAO identified agencies that are
of traditional financial reporting and     been adequately planned in col\iunc-      using the Federal Telecommunica-
the auditor's role in serving the public   tion with Navy, the system's primary      tions System (ITS) 2000 and com-
interest. These issues, along with         user, to minimize technical and           pared telecommunications costs
major litigation involving independent     economic risks. As a result, the          between agencies that used ITS 2000
auditors, prompted many studies of         likelihood has increased that the large   and those that did not. This report
financial reporting and auditing during    investment already made and planned       provides additional information on
the past two decades, resulting in         for this project will not provide the     governmentwide telecommunications
hundreds of recommendations to the         Navy with a reliable, fully integrated    costs. GAO surveyed 42 federal
accounting profession. This report ( 1)    general accounting system.                agencies and totaled their fiscal year
identifies recommendations made                                                      1995 telecommunications costs,
from 1972 through 1995, and actions        AIMD-96-101, July 11, 1996 (70            broken out by the following five
taken, to strengthen accounting and        pages). Financial Audit: Examination      categories: FTS 2000 services, non-
auditing standards and the perfor-         of IRS' Fiscal Year 1995 Financial        FTS 2000 long-distance services, local
mance of independent audits of             Statements.                               telecommunications services, wire-
publicly owned companies required                                                    less services, and telecommunications
by federal securities laws and (2)         As in earlier years, GAO found it         support contract services. GAO also
identifies unresolved issues and           impossible to provide an affirmative      discusses reported local access costs
determines their impact on the             opinion on IRS' principal fmancial        generally associated with FTS 2000
performance of independent auditors,       statements for 1995, internal controls,   telephone calls and the government's
the setting of effective accounting and    and IRS' compliance with laws and




GAO/OlMC-97-lA Subject Index               Page 10
reported fIScal year 1995 COSTS for the     much more than the $5.3 billion           underlying cause is that agencies have
Purchase of Telecommunications and          originally estimated. DOD abandoned       not introduced infonnation security
Services.                                   iTS plan to deploy all nine systems as    programs that establish appropliate
                                            an integrated suite across all inven-     policies and routinely monitor their
AIMD-96-106, June 7, 1996 (29               tory controls points and now plarlS to    effectiveness. The Office of Manage-
pages). Tax Systems Modernization:          introduce each system individually as     ment and Budget's (OMB) oversight
Actions Underway But IRS Has Not            it is developed at a selected site. DOD   effortS have been lmeven, and OMB
Yet Corrected Management and                has also embarked on an accelerated       did not actively attempt to identify
Technical Weaknesses.                       deployment schedule to deliver these      and overcome basic security program
                                            systems between now and 1999. GAO         weaknesses that are likely to be at the
GAO reported last year that the             cautions that DOD is embarking on         root of these problems. OMB can
government's $8 billion tax systems         the new strategy before taking steps      improve its oversight by taking
modernization effort was plagued by         needed to ensure that the additional      advantage of the increasing amount of
pervasive management and technical          hundreds of millions of dollars to be     audit infornlation that is now rou-
weaknesses. Although the Internal           spent on materiel management              tinely available as a result of agency
Revenue Service (IRS) has taken steps       systems, as well as the appropriated      fmancial statement audits required
to overcome these shortcomings,             fWlds already being invested, yield       under the Chief Financial Officers
none of these actions, either individu-     positive results. Moreover, DOD is        Act. In addition, the recently estab-
ally or collectively, fully satisfy GAO's   proceeding with deployments under         lished Chief Information Officers'
recommendations, and it is unclear          the new strategy without allocating       Council, which OMB will chair, can
when these actions will result in           the time needed to thoroughly test the    serve as a vehicle for strategically
disciplined systems development. The        new systems. This greatly increases       addressing information security
upshot is that IRS continues to spend       the risk that DOD will experience         governmentwide. However, OMB also
hundreds of millions of dollars on tax      problems arising from shifting testing    needs to develop better sOW'ces of
systems modernization even though           to system users and curtailing normal     infonnation and staff expertise for
fundamental weaknesses jeopardize           levels of testing. The upshot is that     overseeing the over-all design and
that investment. IRS now plarlS to          DOD will likely incur substantial         effectiveness of agency information
used a prime contractor and increase        additional COSTS to operate legacy        security programs.
its use of software development             systems and to correct deficiencies
contractors to develop tax systems          that surface because of delayed           AIMD-96-113. July 1, 1996 (149
modernization. However, its plans and       testing.                                  pages). Compendium of Budget
schedules in this area are poorly                                                     Accounts: Fiscal Year 1997.
defined and cannot be fully under-          AIMD-96-110, Sept. 24, 1996 (48
stood or assessed. Moreover, as the         pages). Infonnation Security: Oppor-      Each year, the President submits a
experience with Cyberfile and the           tunities for Jmproved OMB Oversight       budget to Congress. The President's
Document Processing System projects         of Agency Practices.                      budget is not a single object or device
makes clear, IRS does not have the                                                    but an analysis and compilation of
mature processes needed to acquire          Recent audits and self-assessments at     separate presentations of hWldreds of
software and manage contractors             15 major agencies reveal that weak        budget accounts, covering all fIScal
effectively.                                information security is a widespread      activities of the federal government,
                                            problem in the federal government.        including "off-budget" accounTS, such
AIMD-96-109, Sept. 6, 1996 (43              Billions of dollars worth of assets are   as the Social Security trust funds and
pages). Defense IRM: Critical Risks         at risk of theft. misuse, or loss, and    the Postal Service fund. The budget
Facing New Materiel Management              vast amolUlts of sensitive infomla-       comprises a wealth of infonnation in
Strategy.                                   tion-including personal data on           a daunting array of schedules, tables,
                                            American citizens-are vulnerable to       graphs, and narrative sunlffiaries. The
The Pentagon is attempting to mod-          unauthorized disclosure. Weaknesses.      comprehensiveness of the President's
ernize materiel management business         such as poor controls over access to      budget is iTS principal strength, but iTS
operations by developing a standard         data and inadequate disaster recovery     sheer size and complexity can be
suite of nine separate materiel man-        plans. diminish the reliability of the    overwhelming for many readers. For
agement systems that will comprise          enornlOUS amounts of electronically       example, the President's fiscal year
the Materiel Management Standard            maintained information essential to       1997 budget spanned six volumes and
System. At the end of 1995, the             delivering federal services, measuring    contained more tllan 2,100 pages.
Defense Department (DOD) con-               the success of federal progranls, and     GAO developed this compendium of
cluded that this effort would cost          monitoring agency performance. An         accounts to give readers a convenient




                                            Page 11                                            GAO/OlMC-97-1ASubjectlndex
way to sort through the fiscal struc-       announced a debt issuance suspen-          modernization issues in testimony
ture of the federal government and to       sion period, became lmown as the           before Congress; see: Tax Systems
determine the level of budgetary            1995-1996 debt ceiling crisis. Treasury    Modernization: Actions Underway,
resources--used, estinutted, or             took several measures during the           But Management and Technical
requested by fiscal year-for indi-          period to raise funds to meet federal      Weaknesses Not Yet Corrected, by Dr.
vidual accounts.                            obligations without exceeding the          Rona B. Stillman, Chief Scientist,
                                            debt ceiling. This report ( 1) discusses   Computers and Telecommunications
AIMD-96-123, July 2, 1996 (48               the chronology of these actions and        Issues, before the Senate Committee
pages). Financial Audit: Resolution         (2) provides a fmancial and legal          on Governmental Affairs. GAOfl'-
Trust Corporation's 1995 and 1994           analysis of them.                          AIMD-95-165, Sept. 10 (21 pages).
Financial Statements.
                                            AIMD-96-140, Aug. 26, 1996 (33             AIMD-96-145, Sept. 19,1996 (117
GAO audited the Resolution Trust            pages). Tax Systems Modernization:         pages). Power Marketing Administra-
Corporation's (RTC) financial state-        Cyberflle Project Was Poorly Planned       tions: Cost Recovery, Financing, and
ments for 1995 and 1994 and the             and Managed.                               Comparison to Nonfederal Utilities.
related statements of revenues,
expenses, accumulated deficit, and          The Internal Revenue Service's (IRS)       In recent years, Congress has weighed
cash flows for those years. GAO found       Cyberfile project was intended to          the pros and cons of privatizing the
that RTC's financial statements were        enable taxpayers to prepare and            federal power marketing administra-
reliable in all material respects.          electronically send their tax returns      tions (PMA), which transmit and sell
Although internal controls could be         via their personal computers. IRS'         electric power generated at federal
improved, RTC management fairly             selection of the Commerce                  hydropower facilities. This report
stated that its internal controls           Department's National Technical            provides information on three of these
effectively safeguarded assets from         Information Service (NTIS) to develop      PMAs--the Southeastern Power
material loss, ensured material             Cyberfile was not based on sound           Administration, the Southwestern
compliance with laws and regulations,       analysis that considered various           Power Administration, and the
and ensured that no material misstate-      alternatives and assessed NTIS' ability    Western Area Power Administration.
ments appeared in the fmancial              to develop and operate an electronic       GAO answers the following three
statements. GAO found no reportable         filing system. NTIS had promised IRS       questions: Have all power-related
noncompliance with laws and regula-         that it could develop Cyberfile in less    costs incurred through September
tions. Because RTC's mission of             than six months and have it up and         1995 been recovered through the
resolving hundreds of insolvent thrifts     running by February 1996. To meet          PMA's electricity rates? Is the fmanc-
is coming to an end, GAO also pre-          these self-imposed deadlines, how-         ing for power-related capital projects
sents a historical perspective of the       ever, NTIS hastily initiated the           subsidized by the federal government
savings and loan crisis, including its      project Development and acquisition        and, if so, to what extent? How do
fmancial implications.                      were undisciplined, and Cyberfile was      PMAs differ from nonfederal utilities
                                            poorly managed and overseen. The           and what is the impact of these
AIMD-96-130, Aug. 30, 1996 (40              end result was that Cyberfile was not      differences on power production
pages). Debt Ceiling: Analysis of           delivered on time, and IRS, after          costs? GAO summarized this report in
Actions During the 1995-1996 Crisis.        advancing more than $17 million to         testimony before Congress; see:
                                            NTIS, has suspended Cyberfile's            Power Marketing Administrations:
Congress has traditionally limited the      development and is reevaluating the        Cost Recovery, Financing, and
size of the federal debt by establishing    project. IRS and NTIS did not follow       Comparison to Nonfederal Utilities,
ceilings on the amount of Treasury          all applicable procurement laws in         by Linda M. Calbom, Director of Civil
securities than can be outstanding.         developing Cyberfile, and NTIS             Audits, before the Subcommittee on
During the past 50 years, Congress          actually circumvented procurement          Water and Power Resources, House
has enacted about 60 temporary and          laws in implementing Cyberfile.            Committee on Resources. GAOfl'-
permanent increases in the debt             Moreover, Cyberfile obligations and        AlMD-95-169, Sept. 19 ( 15 pages).
ceiling. On August 10, 1993, Congress       costs were not accounted for prop-
raised the debt ceiling to $4.9 trillion.   erly. Finally, adequate financial          AIMD-96-146, Sept 30, 1996 (52
This limit was reached in the fall of       program management controls were           pages). Federal Reserve Banks:
1995, but was not raised until the          not implemented to ensure that             Inaccurate Reporting of Currency at
following March, when it was set at         Cyberfile was acquired cost effec-         the Los Angeles Branch.
$5.5 trillion. The intervening period,      tively. GAO summarized this report
when the Secretary of the Treasury          and discussed other tax systems



GAO/OIMC-97 -IA Subject Index               Page 12
The October, November, and Decem-          material misstatements appeared in        GAO's review of the audit done by
ber 1995 monthly currency activity         the financial statements. GAO also        Price Waterhouse of SEMATECH's
reports of the Los Angeles Federal         found no reportable noncompliance         fmancial statements for 1995.
Reserve Bank were prepared and             with laws and regulations. GAO notes
reported incorrectly. The reported         that although the Foundation's            AIMD-96-166, Sept. 30, 1996 (26
receipts from currency deposited in        authority to run the Congressional        pages). Financial Audit: Independent
the Los Angeles Bank by depository         Award Program under the Congres-          Counsel Expenditures for the Six
institutions were not taken from the       sional Award Act expired in October       Months Ended March 31, 1996.
Bank's cash inventory records but          1995, the Foundation has continued to
rather "forced" to ensure that the         operate since then.                       TItis report presents the results of
currency activity report agreed with                                                 GAO's audits of expenditures reported
the daily balance sheet for the last day   AIMD-96-150, Sept. 20, 1996 (6            by six offices of independent counsel
of the month. For example, the             pages). Inspectors General: A Com-        for the six months ended March 31,
December 1995 report had a forced          parison of Certain Activities of the      1996. GAO found that the statements
amount of more than $3.7 billion for       PostallG and Other JGs.                   of ""'Penditures for the offices of
receipts from circulation to ensure                                                  independent counsel Arlin M. Adams!
that the ending balance for cash on        This report compares certain activi-      Larry D. Thompson, David M. Barrett,
hand would equal $6.7 billion as           ties of the Postal Inspector General      Joseph E. diGenova/Michael F. Zeldin,
reported in the daily balance sheet at     OG) with the activities of IGs in other   Daniel S. Pearson, Donald C. Smaltz,
the end of December. These problems        federal agencies. It is important to      and Kenneth W. Starr were reliable in
in currency reporting are linked to        note that the Postal IG differs from      all material respects. GAO's review of
limitations in the design of the           other IGs by serving in a dual capac-     internal controls disclosed no material
underlying cash inventory system. The      ity: It performs audits and other         weaknesses. Further, GAO found no
Los Angeles Bank's inability to            reviews as well as serves at the Chief    reportable noncompliance with laws
precisely summarize currency activity      Postal Inspector responsible for the      and regulations.
from its cash inventory records raises     enforcement of postal laws through-
serious questions about the integrity      out the United States. GAO compares       AIMD/GGD-96-87, Mar. 7, 1996 (18
of its accounting and internal controls    the Postal IG with four other IGs-        pages). Budget Issues: Selected GAO
and may signal problems in the other       Justice, Treasury, Agriculture, and       Work on Federal Financial Support of
Federal Reserve Banks that use this        Labor-with respect to audit activities    Business.
same system. Considering the large         over their agencies' law enforcement
sums of cash that the Los Angeles          operations and the results of peer        The federal government provides
Bank deals with and the problems           reviews over their audit operations.      rmancial benefits to businesses as a
identified in GAO's limited audit          GAO also compares the Postal IG's         way to fulfill a wide range of public
work, more detailed reviews of the         policies and procedures to Office of      policy goals. These benefits are
Los Angeles Bank's operations are          Management and Budget guidance on         spread throughout the budget, includ-
warranted.                                 the resolution of audit recommenda-       ing programs in international affairs,
                                           tions.                                    energy, natural resources and environ-
AIMD-96-147, Sept. 24, 1996 ( 14                                                     ment, agriculture, and transportation.
pages). Financial Audit: Congres-          AIMD-96-163, Sept. 30, 1996 (8            In those cases in which programs are
sional Award Foundation's 1995 and         pages). Financial Audit: Review of        poorly designed, including those
1994 Financial Statements.                 the Audit of SEMATECH's Financial         benefiting businesses, the federal
                                           Statements for 1995.                      government may spend more money
The Congressional Award Foundation                                                   or lose more revenue than necessary
is a non-profit group formed in 1979 to    GAO is required to review the annual      to reach its intended audience and
promote achievement among youth in         audits of the financial statements of     achieve program goals. This docu-
public service, personal development,      SEMATECH, Inc., a consortiwn of           ment summarizes earlier GAO work
and physical fitness. GAO reviewed         semiconductor manufacturers and the       on spending programs and tax ben-
the Foundation's 1995 and 1994             Defense Department, and to comment        efits available to businesses. GAO
financial statements and found them        on the statements' accuracy and           presents many examples of federal
to be reliable in all material respects.   completeness. This report-GAO's           programs from GAO work published
Internal controls effectively safe-        eighth in response to the legislative     since 1992 in which GAO identified
guarded assets from material loss,         requirement-presents the results of       efficiency or effectiveness concerns.
ensured compliance with laws and                                                     GAO also discusses program design
regulations, and ensured that no                                                     and implementation.



                                           Page 13                                            GAOIOIMC·97·1ASnbjeetIndex
AIMD/GGD-96-152, Sept. 9, 1996 (29        statutory offices; (3) changes in the    the inability to account for billions of
pages). internal Revenue Service:         attention OMB gave to management         dollars in disbursements to a break-
Business Operations Need Continued        issues in the budget formulation         down in an ability to protect assets
Improvement.                              process before and after OMB 2000;       from waste, fraud, and abuse. No
                                          and (4) the way OMB planned to           military service or other major DOD
The internal Revenue Service (IRS)        evaluate OMB 2000.                       component has been able to withstand
has experienced major problems in                                                  the scrutiny of an independent
(1) fulfilling its business vision-       RCED/AIMD-96-9FS , Oct. 13, 1995         financial statement audit. Although
reducing the volume of paper returns,     (54 pages). Federal Electric Power.      DOD recognizes the problem, it faces
better serving customers, and improv-     Operating and Financial Status of        serious challenges in implementing its
ing compliance; (2) overcoming            DOE's Power Marketing Administra-        "blueprint" for reform. GAO continues
management and technical weak-            tions.                                   to believe that DOD should establish
nesses in its tax systems moderniza-                                               an independent, outside board of
tion effort; and (3) strengthening the    This fact sheet provides information     experts to provide counsel, oversight,
reliability of its fmancial management    on the Energy Department's (DOE)         and perspective to DOD's reform
and systems used to account for           five power marketing administrations     efforts. Such experts could provide
hundreds of billions of dollars and to    (PMA). The first section of the          valuable advice and expertise in three
measure IRS' performance. This            report-operating information-            challenging areas: systems develop-
report discusses pivotal actions that     describes facilities used by the PMAs    ment, personnel needs assessment,
IRS should take to fully implement        to sell power and the customers          and organizational structure.
earlier GAO recommendations and           served by the PMAs. The second
improve its management practices.         section-financial information-           T-AlMD-96-2 , Oct. 17, 1995 (6
GAO summarized this report in             discusses the manner in which the        pages). Weather Forecasting: Radars
testimony before Congress; see: IRS       PMAs fmance their operations, the        Far Superior to Predecessors, but
Operations: Critical Need to Continue     revenues and expenses associated         Location and Availability Questions
Improving Core Business Practices,        with their operations, and the manner    Remain, by Jack 1. Brock, Director,
by Gene L. Dodaro, Assistant Comp-        in which they repay their debts. The     Defense Information and Financial
troller General for Accounting and        flnaI section-competitive issues-        Management Systems, before the
Information Management Issues,            describes potential effect of these      Energy and Environment Subcommit-
before the Senate Committee on            markets on the PMAs.                     tee, House Committee on Science.
Governmental Affairs. GAOrr-AlMDI
GGD-96-188, Sept. 10 (13 pages).          Testimony                                The National Weather Service is
                                                                                   deploying new Doppler radars known
GGD/AIMD-96-50, Dec. 29, 1995 (42         T-AlMD-96-1, Nov. 14, 1995 (28           as Next Generation Weather Radars
pages). Offlce of Management and          pages). Financial Management:            (NEXRAD) to provide greatly im-
Budget Changes Resulting From the         Challenges Facing DOD in Meeting         proved and more timely weather
OMB 2000 Reorganization.                  the Goals of the Chief Financial         forecasts. Simply stated, NEXRADs
                                          Offlcers Act, by Gene L. Dodaro,         have replaced weather event "near-
This report describes the changes that    Assistant Comptroller General, before    sightedness" with "20120 vision" and
have resulted from OMB 2000-a             the Government Management, infor-        have given NWS the ability to save
major reorganization and process          mation and Technology Subcommit-         lives and money through precise
change at the Office of Management        tee, House Committee on Government       warnings of severe weather. However     l

and Budget (OMB) that was an-             Reform and Oversight.                    these radars must be up and running
nounced in 1994 as pan of the Na-         The Defense Department (DOD)             at least 96 percent of the time to be
tional Performance Review. The main       needs accurate fmancial information      effective-an availability rate that
goal of OMB 2000 was to integrate         and appropriate internal controls to     many do not meet
OMB;s budget analysis, management         effectively manage its vast re-
review, and policy development roles      sources-more than $1 trillion in         T-AlMD-96-10, Dec. 14, 1995 (31
under a new structure to improve the      assets, 3 million in military and        pages). Financial Management:
decisionmaking process and oversight      civilian personnel, and a budget of      Continued Momentum Essential to
of executive branch operations. GAO       more than $250 billion for flscal year   Achieve CFO Act Goals, by Charles A
describes (1) the changes in OMB's        1995. Unfortunately, DOD suffers         Bowsher, Comptroller Gener.al of the
organizational structure, responsibili-   from serious and pervasive fmancial      United States, before the Senate
ties, and staffing as a result of OMB     management problems, ranging from        Committee on Governmental Affairs.
2000; (2) changes to OMB's three



GAO/OlMC-97·1A Subject Index              Page 14
This testimony discusses the steady      ment Reform and Oversight, and            ers and automation to improve their
progress being made to improve           Government Management, lnforn1a-          operations. This testimony, which
financial management in the federal      tion and Technology Subcommittee,         draws on many years of GAO work on
government through implementation        House Committee on Government             information resources management
of the Chief Financial Officers Act of   Reform and Oversight.                     issues, makes three main points. First,
1990. This landmark legislation was                                                although the Senate is a unique
enacted five years ago, but a great      The Health Care Financing Adminis-        institution, it is similar enough to
deal more perseverance will be           tration (HCFA) is developing a critical   private and public sector organiza-
required to sustain the current mo-      new claims-processing system, the         tions to make learning from their
mentum and successfully overcome         Medicare Transaction System (MTS),        experiences useful. Second, informa-
decades of serious neglect in funda-     to replace the nine systems now used      tion technology offers many opportu-
mental financial management opera-       by Medicare. MTS' goal is to better       rtities for the Senate and the entire
tions and reporting methods. The         protect program funds from waste,         legislative branch to improve its
Comptroller General focuses on the       fraud , and abuse; allow better over-     services to constituents, its accessibil-
following four implementation            sight of Medicare contractor opera-       ity to the public, its legislative pro-
challenges: (1) Successfully imple-      tions; improve service to beneftciaries   cesses and decisionmaking, and its
menting the expanded requirements        and providers; and cut administrative     committee and public operations.
for audited fmancial statements to       expenses. The weaknesses in HCFA's        Legislatures around the world are
improve the reliability of data for      development of MTS stem from a lack       using information teclmology to
decision-making and strengthen the       of a disciplined management process       improve these same areas. Third,
efficiency of fmancial operations and    that has as its hallmark managing         GAO's analysis of successful public
controls. (2) Continuing to build        information systems and technology        and private organizations underscores
stronger fmancial management             as investments. Not managing MTS in       the need for key management prac-
organizations by upgrading skill         this way has led to system design and     tices that can spell the difference
levels, enhancing training, and          development proceeding despite (1)        between success and failure in using
ensuring that Chief Financial Officers   difficulties in defming requirements,     information technology to improve
have all the necessary authority to      (2) a compressed scheduled contain-       performance. The key is to develop
achieve change. (3) Devising and         ing significant overlap of system-        the organizational strategy and
applying more effective solutions to     development phases, and (3) a lack of     support needed to harness the power
overcome difficult problems plaguing     reliable information on costs and         of information technology and avoid
agencies' fmancial systems. (4)          benefits. These risks in the develop-     the costly mistakes that others have
Designing comprehensive account-         ment of MTS can be substantially          made.
ability reports to allow more thorough   reduced if HCFA adopts some of the
and objective assessments of agen-       "best practices" that have proven         T-AlMD-96-46, Feb. 26, 1996 (18
cies' performance and fmancial           effective in other organizations:         pages). lnformation Technology: Best
contributions, as well as to enhance     managing systems as investment,           Practices Can Improve Performance
the budget preparation and delibera-     changing information management           and Produce Results, by Christopher
tion process. The Comptroller General    practices, creating line manager          W. Hoertig, Director, lnformation
also comments on amendments to the       ownership, better managing re-            Resources Management Policies and
Single Audit Act being considered by     sources, and measuring performance.       Issues, before the Government
Congress.                                                                          Management, lnformation and Tech-
                                         T-AlMD-96-25 , Dec. 7, 1995 (14           nology Subcommittee, House Commit-
T-AlMD-96-12, ov. 16, 1995 (9            pages). Managing Teclmology Change:       tee on Government Reform and
pages). Medicare Transaction System:     Challenges and Opportunities for the      Oversight.
Strengthened Management and Sound        United States Senate, by Christopher
Development Approach Critical to         W. Hoertig, Director, lnfonnation         This testimony discusses how best
Success, by Frank W. Reilly, Director,   Resources Management/Policies and         practices applied by leading organiza-
Information Resources ManagementJ        Issues, before the Senate Committee       tions can help improve infonnation
Health, Education, and Human             on Rules and Administration.              management technology in the federal
Services, and Christopher W. Hoertig,                                              government. GAO focuses on four key
Director, lnformation Resources          The United States Senate, as it           lessons learned from its ongoing
Management/Policies and Issues,          increases its use of information          evaluation of strategic information
before the Human Resources and           technology, is in an excellent position   management issues in federal agen-
Intergovernmental Relations Subcom-      to profit from the experiences of         cies. First, better data are needed on
mittee, House Committee on Govern-       organizations that have used comput-      the government's information technol-



                                          Page 15                                           GAO/OIMC-97-1A Subject Ind.x
ogy investments. Although federal          for developing the system has shown         strengthen its operations, and makes
information technology obligations         that all proposed system capabilities       recommendations for additional
now total at least $25 billion annually,   will contribute to promised modern-         improvements.
what the government is getting in          ization outcomes-better forecasts,
return for these expenditures is           fewer weather offices, and reduced          T-AIMD-96-60, Mar. 8, 1996 (15
unclear. Second, information technol-      staffmg.                                    pages). Govemmenhvide Travel
ogy is characterized by high risk and                                                  Management: Federal Agencies Have
high return. Real opportunities exist      T -AIMD-96-48, Feb. 29, 1996 (7             Opportunities for Streamlining and
to boost organizational performance,       pages). Financial Audit: Expenditures       Improving Their Travel Practices, by
but the risk of failure is ever present    by Independent Counsels, by David 1.        Christopher W. Hoenig, Director,
and must be vigorously managed to          Clark, Jr., Director, Audit Oversight       Information Resources Management!
ensure success. Third, repeatable          and Liaison, before the Crime Sub-          Policies and Issues, before the
success requires sound management          committee, House Committee on the           Oversight of Government Manage-
processes that are applied with            Judiciary.                                  ment and the District of Columbia
rele ntless discipline. Sustainable and                                                Subcommittee, Senate Committee on
effective management practices are         This testimony focuses on GAO's             Governmental Affairs.
crucial to successful information          financial audits of independent             Federal executives operating in the
technology projects. Fourth, the           counsel expenditures. GAO discusses         current envirorunent of change and
challenge is implementation. Most          (1) independent counsels' financial         downsizing face the difficult challenge
leading organizations have taken three     reporting and auditing requirements,        of cutting costs while maintaining, if
to five years to fully integrate the       (2) expenditures for independent            not inlproving, operations. One area
practices into improved management         counsel operations for the 100year          with great potential for reengineering
processes. A consensus has emerged         period ended March 1995, and (3)            is governmentwide travel manage-
among federal government officials on      independent counsels' compliance            ment. In fiscal year 1994, the federal
what the problems are and what can         with financial laws and regulations.        government reported travel obliga-
be done to solve them. Now agency                                                      tions for individuals of about $7.6
heads must implement more-effective        T-AIMD-96-56 , Mar. 6, 1996 ( 12            billion-about $5 billion for the
information technology management          pages). IRS Operations: Significant         Defense Department and about $2.6
processes and reinforce accountabil-       Challenges in Financial Management          billion for civilian agencies. GAO
ity to produce tangible results.           and Systems Modernization, by Gene          testified that federal agencies, by
                                           1. Dodaro, Assistant Comptroller            emulating the practices of private
T-AIMD-96-47, Feb. 29, 1996 (6             General, before the Government              organizations, could save millions of
pages). Weather Forecasting: New           Management, Infornlation and Tech-          doUars by streamlining the adminis-
Processing System Faces Uncertain-         nology Subcommittee, House Commit-          trative procedures that now cost the
ties and Risks, by Jack L. Brock,          tee on Government Reform and                government htmdreds of millions of
Director, Information Resources            Oversight.                                  dollars to process travel vouchers for
ManagementIResources l Community,                                                      federal workers. The General Services
and Economic Development, before           This testimony discusses the results        Administration, as the government's
the Energy and Envirorunent Subcom-        of GAO's fIScal year 1994 fmancial          lead manager of travel policy, should
mittee, House Committee on Science.        audit of the Intemal Revenue Service        spearhead efforts to oversee the
                                           (IRS)-GAO's most recently com-              various travel inlprove ment efforts
This report focuses on the National        pleted audit-and GAO's reports on           that are planned or under way.
Weather Service's (NWS) Advanced           IRS' Tax System Modernization effort.
Weather Interactive Processing             Last year, GAO issued two reports           T-AIMD-96-66, Mar. 13, 1996 (11
System , which is designed to help         (GAO/AlMD-95-156, July 1995, and            pages). Budget Issues: Deficit Reduc-
local weather forecasters obtain           GAO/AlMD-95-I41, Aug. 1995) on IRS'         tion and the Long Term, by Paul 1.
meteorological data from state-oC-the-     guardianship of federal revenues and        Posner, Director, Budget Issues,
art weather observing systems and          its ability to function efficiently in an   before the House Committee on
national weather models, analyze           increasingly high technology environ-       Budget.
trends, and disseminate forecasts and      ment. These reports highlight several
warnings to the public. This $525          serious technical and managerial            GAO has long argued that deficit
million system is to be the centerpiece    problems that IRS must address to           reduction is crucial to America's
of NWS' massive $4.5 billion modern-       make progress in both of these areas,       future economic health. The surest
ization and restructuring program.         discusses steps being taken by IRS to       way to increase the resources avail-
GAO discusses whether NWS' process




GAO/OIMC-97 -LA Subject Index              Page 16
able for investment is to boost na-         ization and (2) analogous technical      Management, Information and Tech-
tional savings by reducing the deficit.     weaknesses in the recent Cyberfile       nology Subcommittee, House Commit-
Today, the relationship of the deficit      project, which will allow taxpayers to   tee on Government Reform and
to the nation's long-term economic          file their returns electronically from   Oversight.
interest is more broadly recognized         personal computers, suggesting that
Both Congress and the President have        IRS continues to risk millions of        A solid framework for improving the
put forth plans to reverse earlier fIScal   dollars in undisciplined systems         government's fmancial management
trends and balance the budget. The          development.                             has been established during the past
debate is no longer about whether to                                                 six years. This framework consists of
balance the budget, but rather when         T-AIMD-96-77, Mar. 29, 1996 (7           (1) the original Chief Financial
and how. This testimony describes           pages). Single Audit: Refmements Can     Officers Act of 1990 and its expansion
GAO's simulations of the economic           Improve Usefulness, by Gene L.           through the Government Management
impact of different fiscal policies over    Dodaro, Assistant Comptroller            Reform Act of 1994; (2) the Federal
the long term and discusses several         General, before the Government           Accounting Standards Advisory
matters relating to deficit reduction,      Management, Information and Tech-        Board, created in 1990; and (3)
particularly the important benefits to      nology Subcommittee, House Commit-       measures to improve the budget
be gained from shifting to a new fIScal     tee on Government Reform and             process, such as the enactment of
policy; the importance of how the           Oversight.                               credit reform. The next step is to
deficit is reduced, including both the                                               improve the federal budget process to
composition of federal spending and         The Single Audit Act of 1984 is an       take advantage of accurate and
the need to address the drivers of the      important means by which Congress,       reliable financial information as the
deficit; and the experiences of other       federal oversight officials, and pro-    basis for sound budget and policy
industrialized nations.                     gram managers can obtain informa-        decisions. The Comptroller General
                                            tion on whether recipients of federal    urges refonn in the following three
T-AIMD-96-75, Mar. 26, 1996 (26             assistance properly account for the      areas: the budget process, account-
pages). Tax Systems Modernization:          money they receive, maintain ad-         ability for costs and perfonnance, and
Management and Technical Weak-              equate internal controls of those        the use of improved reports to better
nesses Must Be Overcome To Achieve          funds, and comply with program           inform policy and budget decisions.
Success, by Gene L. Dodaro, Assistant       requirements. The single audit, which    Improved financial management and
Comptroller General, before the             is widely accepted today, has helped     reports are essential to improving the
Senate Committee on Governmental            foster basic fmancial management         government's ability to account for
Affairs.                                    improvements and has strengthened        taxpayer dollars. Continuing fiscal
                                            accountability at state and local        pressures will place a premium on the
The Internal Revenue Service (IRS)          governments and nonprofit groups         proper stewardship of increasingly
has spent more than $2.5 billion on         receiving federal aid. Twelve years'     scarce public resources. Recent
Tax Systems Modernization through           worth of experience with the act has     efforts to improve federal financial
fiscal year 1995. In addition, it plans     shown that refinements can be made       reporting will, if properly imple-
to spend up to $8 billion on this effort    to improve the usefulness of single      mented, redress long-standing weak-
through 2001. Tax Systems Modern-           audits while reducing the burden on      nesses.
ization is central to ms' vision of a       state and local governments and
paper-free work environment in which        nonprofit groups. Proposed amend-        T-AIMD-96-92, May 22, 1996 (7
taxpayer account updates are rapid          ments, which GAO strongly supports,      pages). Information Security: Com-
and taxpayer information is readily         address the need for refmements. This    puter Attacks at Department of
available to IRS employees respond-         testimony provides some perspective      Defense Pose Increasing Risks, by
ing to taxpayer inquiries. Over the         on the act, highiights GAO's most        Jack L. Brock, Director, Defense
years, GAO has reported that IRS'           recent assessment of the act's imple-    Information and Financial Manage-
effort to modernize tax processing is       mentation, and discusses specific        ment Systems, before the Government
jeopardized by persistent and perva-        amendments now being considered.         Information and Regulation Subcom-
sive management and technical                                                        mittee, Senate Committee on Govern-
weaknesses. IRS attempts to correct         T-AIMD-96-80, Apr. 23, 1996 (16          mental Affairs.
these problems have so far met with         pages). Budget and Financial Manage-
little success. This testimony focuses      ment: Progress and Agenda for the        Unknown and unauthorized persons
on (1) IRS' efforts to correct manage-      Future, by Charles A. Bowsher,           are increasingly attacking and gaining
ment and technical weaknesses that          Comptroller General of the United        access to highly sensitive information
have impeded Tax Systems Modern-            States, before the Government            in the Defense Department's (DOD)



                                             Page 17                                          GAO/OlMC·97·1A Subject Index
computer systems. Although the exact        t ions. GAO's audits span fiscal years    better investment strategy for choos-
number of attacks cannot be precisely       1992-95. Implementation of the act        ing and managing its portfolio of
determined, recent data suggest that        has (1) led IRS top managers to have a    information technology projects in a
DOD may have experienced as many            greater understanding of IRS' serious     more disdplined, businesslike way;
as 250,000 attacks last year. These         and pervasive accounting and report-      and (3) strengthening its technical
attacks are often successful, and the       ing problems, (2) yielded information     ability to develop software applica-
number of attacks is doubling each          on the magnitude of IRS' tax receiv-      tions that are critical to its efforts to
year as Internet use increases and          ables collection problems, and (3)        control costs and improve service to
hackers become more sophisticated.          underscored the need for stronger         veterans.
At a minimum, these attacks are a           controls over such areas as payroll
multimillion dollar nuisance to the         operations. The act has also provided     T-AIMD-96-104, June 11, 1996 (14
Pentagon. At worst, they pose a             the impetus behind efforts to improve     pages). Financial Management:
serious threat to national security.        IRS operations and address the mllior     Interior's Efforts to Reconcile Indian
Attackers have seized control of            problems dted by GAO fmancial             Trust Fund Accounts and Implement
entire DOD systems, some of whlch           audits. However, GAO has been             Management Improvements, by Linda
control critical functions, such as         unable to express an opinion on the       Calbom, Director, Civil Audits, before
weapons system research and devel-          reliability of IRS' ftnandal statements   the Senate Committee on Indian
opment, logistics, and fmance.              for any of the four fiscal years-from     Affairs.
Attackers have also stolen, modified,       1992 through 1995. This testimony
and destroyed data and software. The        describes in detail the fundamental,      Although the Interior Department has
potential for catastrophlc damage is        persistent problems that remain           brought to a close its project to
great. DOD is taking steps to address       uncorrected and will prevent GAO          reconcile the Indian trust funds, tribal
thls growing problem but faces mllior       from expressing an opinjon on IRS'        accounts were never fully reconciled
challenges in controlling unauthorized      future fmancial statements.               because of missing records and the
access to its computer systems. DOD                                                   lack of an audit traiJ in Interior's
is now trying to react to successful        T-AlMD-96-103, June 19, 1996 (17          automated accounting systems. In
attacks as it learns of t hem, but it has   pages). Veterans Benefits Moderniza-      addition, the 1996 report package that
no uniform policy for assessing risks,      tion: Management and Technical            Interior provided to each tribe on the
protecting its systems, responding to       Weaknesses Must Be Overcome If            reconciliation results did not explain
incidents, or assessing damage.             Modernization Is To Succeed, by Gene      or describe the many changes in
Training of users and system and            L. Dodaro, Assistant Comptroller          reconciliation scope and methodolo-
network administrators is haphazard         General, before the Compensation,         gies or the procedures that had been
and constrained by limited resources.       Pension, Insurance and Memorial           planned but were not implemented.
Technical solutions, such as flrewalls,     Affairs Subcommittee, House Commit-       As a result, the limitations of the
smart cards, and network monitoring         tee on Veterans' Affairs.                 reconciliation were not evident. Also,
systems, should help, but their                                                       because of cost considerations and
success depends on whether DOD              If the Veterans Benefits Administra-      the potential for missing records,
implements them in tandem with              tion is to reduce operating costs and     individual Indian trust fund accounts
better policy and personnp.l measures.      improve critical service to nearly 27     were not included in the reconcilia-
                                            million veterans and their dependents,    tion project. Indian tribes have raised
T-AlMD-96-96, June 6, 1996 (17              it needs to streamline its business       concerns about the scope and the
pages). Financial Audit: Actions            processes and take more advantage of      results of the reconciliation process.
Needed to Improve IRS Financial             information technology. However,          The vast mlliority of tribes have yet to
Management, by Gregory M.                   VBA is experiencing many of the           decide whether to accept or dispute
Holloway, Director, Governmentwide          classic management and technical          their account balances. If Interior
Audits, before the Senate Committee         problems that have prevented federal      cannot resolve the tribes' concerns, a
on Governmental Affairs.                    agencies from reaping the benefits of     legislated settlement process could be
                                            substantial investment in information     used to settle disputes over account
This testimony discusses GAO's              technology. Thjs testimony discusses      balances. Interior has taken steps
fmandal audits of the Internal Rev-         the steps VBA needs to take in the        during the past three years to correct
enue Service (IRS). As part of a pilot      following three areas to improve its      these long-standing problems with the
program under the Chief Financial           c hances for success: (1) creating a      accuracy of the Indian trust fund
Officers Act of 1990, IRS began             credible business strategy and sup-       accounts, but these efforts will take
preparing annual fmandal statements         porting an information resources          years to complete. Moreover, the
explaining the results of its opera-        management plan; (2) developing a         existing trust fund management and



GAO/OlMC-97 -lA Subject Index               Page 18
accounting systems cannot ensure           because of missing records and the        fInancial and management problems
accurate trust fund accounting and         lack of an audit trail in Interior's      confronting the District. GAO dis-
asset management. The appointment          automated accounting systems. In          cusses the (1) fmancial and budget
of a Special Trustee for American          addition, the 1996 report package that    trends in the District's revenue flows
Indians was an important step in           Interior provided to each tribe on the    and expense patterns, comparing and
establishing high-level leadership at      reconciliation results did not explain    contrasting the District's historical
Interior for Indian trust fund manage-     or describe the many changes in           experience through fiscal year 1995
ment.                                      reconciliation scope and methodolo-       with its enacted and proposed budgets
                                           gies or the procedures that had been      for fIscal years 1996 and 1997; (2)
T-AlMD-96-108, June 5, 1996 (8             planned but were not implemented          District's current cash position; and
pages). Information Security: Com-         As a result, the limitations of the       (3) experiences of the New York City
puter Hacker Information Available on      reconciliation were not evident. Also,    and the Philadelphia control boards
the Internet, by Jack L Brock, Direc-      because of cost considerations and        and the Authority. GAO also provides
tor, Defense Information and Finan-        the potential for missing records,        background information and its
cial Management Systems, before the        individual Indian trust fund accounts     preJ.iminary thoughts on the District's
Permanent Subcommittee on Investi-         were not included in the reconcilia-      fmancial management system.
gations, Senate Committee on Govern-       tion project. Indian tribes have raised
mental Affairs.                            concerns about the scope and the          T-AlMD-96-127, July 9, 1996 (6
                                           results of the reconciliation process.    pages). Governmentwide Travel
GAO concludes that any marginally          The vast majority of tribes have yet to   Management: Views on the Proposed
computer-literate person can access        decide whether to accept or dispute       Travel Reform and Savings Act, by
the Internet itself to quickly obtain      their account balances. If Interior       Jack L. Brock, Director, Information
basic information on the tools and         cannot resolve the tribes' concerns, a    Resource Management/General
techniques needed to become a              legislated settlement process could be    Government Issues, before the
computer hacker. Concerns about            used to settle disputes over account      Government Management, Informa-
unauthorized access to sensitive           balances. Interior has taken steps        tion and Technology Subcommittee,
information in computer systems are        during the past three years to correct    House Committee on Government
well-founded. The Pentagon has             these long-standing problems with the     Reform and Oversight.
already experienced thousands of           accuracy of the Indian trust fund
computer attacks originating from          accounts, but these efforts will take     Travel is one of the many government
network connections, many of which         years to complete. Moreover, the          functions that, through the adoption
have resulted in considerable disrup-      existing trust fund management and        of best private sector practices and
tion and damage. Other federal             accounting systems cannot ensure          aggressive streamlining, can yield
agencies and the private sector will       accurate trust fund accounting and        substantial savings to taxpayers. The
undoubtedly be at increasing risk of       asset management. The appointment         proposed Travel Reform and Savings
attack as their reliance on the Internet   of a Special Trustee for American         Act takes a major step toward adopt-
increases, as the number of world-         Indians was an important step in          ing the best practices of other organi-
wide Internet users multiplies, and as     establishing high-level leadership at     zations. Not only will the legislation
information on hacker tools and            Interior for Indian trust fund manage-    improve service to government
techniques becomes even more               ment.                                     travelers, it will also help reduce
readily available.                                                                   travel costs. This testimony highlights
                                           T-AlMD-96-126, July 9, 1996 (37           the legislation's key provisions,
T-AlMD-96-UI, June 18, 1996 (15            pages). District Government: informa-     summarizes earlier GAO work and
pages). Financial Management:              tion on Its Fiscal Condition and the      discusses how it relates to the legisla-
Interior's Management of the Indian        Authority's First Year of Operations,     tion, and provides GAO's views on the
Trust Funds, by Linda Calbom,              by Gregory M. Holloway, Director,         legislation and raises concern about a
Director, Civil Audits, before the Task    Governmentwide Audits, before the         provision found in the Senate version.
Force on Indian Trust Fund Manage-         District of Columbia Subcommittee,
ment, House Committee on Re-               House Committee on Appropriations.        T-AlMD-96-129, July 11, 1996 (20
sources.                                                                             pages). Budget Process: Evolution and
                                           This testimony focuses on the District    Challenges, by Susan J. Irving, Associ-
Although the Interior Department has       of Columbia's fInancial condition and     ate Director, Budget Issues, before the
brought to a close its project to          the efforts of the D.C. Financial         House Committee on Budget.
reconcile the Indian trust funds, tribal   Responsibility and Management
accounts were never fully reconciled       Assistance Authority to resolve the




                                           Page 19                                            GAO/OIMC-97-lA Subject Index
Everyone involved in the budget              ability for spendillg on information       better educated alld more involved in
process shares some frustration with         technology. Once agencies begin to         their own health care. Government
it. The public finds the process             implement ITMRA, Congress should           and private health care organizations
confusing. Executive branch agencies         have a much clearer understaJldillg of     rely on a variety of technologies to
complain that it is burdensome and           how information technology expendi-        disseminate health information on
time-consuming. Members of Con-              tures can benefit agencies' perfor-        preventive care, illness alld iI\jury
gress say that it is too lengthy, with its   mallce. Governmentwide, success            mallagement, treatment options, post-
many votes on authorizations, the            rates should be higher for information     treatment care, alld other topics. This
budget resolution, reconciliation.           technology projects completed withill      report discusses consumer health
appropriations, and the debt limit.          reasonable time frames, at acceptable      informatics-the use of computers
And, too often, the results are not          costs, alld with positive net rates of     and telecommunications to help
what was expected or hoped for. This         return on investment.                      consumers obtain information,
testimony discusses how the budget                                                      analyze their health care needs, and
process evolved into what it is today        T-AIMO-96-133, July 19, 1996 (21           make decisions abo ut their own
and the challenges Congress faces in         pages). District Government: Infonna-      health. GAO provides information on
the near term. GAO also discusses            tion on Its Fiscal Condition, by           (1) the demand for health information
some broad objectives and policy             Gregory M. Holloway, Director,             and the expanding capabilities of
criteria that could be used to analyze       Govemmentwide Audits, before the           technology; (2) users' and developers'
the design of or changes to any budget       District of Columbia Subcommittee,         views on potential systems advan-
process.                                     House Committee on Government              tages and issues surroundillg systems
                                             Reform alld Oversight.                     development and use; (3) government
T-AIMD-96-132, July 17, 1996 (13                                                        involvement-federal, state, and
pages). Information Management               This testimony discusses the results       local-in developing these technolo-
Reform: Effective Implementation Is          of GAO's review of the fmallcial           gies; and (4) the status of related
Essential for Improving Federal              condition of the District of Columbia.     efforts by the Department of Health
Performance, by Christopher W.               It compares and contrasts the              and Human Services. As part of this
Hoenig, Director, Information Re-            District's historical experience           review, GAO surveyed consumer
sources Management Policies and              through fiscal year 1995 with its          health informatics experts and
Issues, before the Oversight of              enacted alld proposed budgets for          presents their views on issues that
Government Management and the                fiscal years 1996 alld 1997. Also          need to be addressed when develop-
District of Columbia Subcommittee,           discussed is the District's current cash   ing consumer health information
Senate Committee on Governmental             position. GAO focused speciflcally on      systems.
Affairs.                                     the District's cash position at the end
                                             of fISCal year 1995, as adjusted           T-AIMD-96-136, July 24, 1996 (12
On the whole, the federal                    through March 31, 1996. GAO also           pages). Budget Process: Issues in
government's track record in deliver-        reviewed what actions New York City        Biennial Budget Proposals, by Susan
ing high value information technology        (beginning in June 1975) and Philadel-     J. Irving, Associate Director, Budget
solutions at acceptable cost is not          phia (beginning in June 1991) and          Issues, before the Financiaj Manage-
good. Federal agencies lack adequate         their respective control boards took to    ment and Accountability Subcommit-
processes and reliable data to manage        respond to their cash shortages.           tee, Senate Committee on Governmen-
illvestments in information technol-                                                    tal Affairs.
ogy. The Infornlation Technology             T-AIMO-96-134, July 26, 1996 ( 14
Management Reform Act (lTMRA) of             pages). Consumer Health Informatics:       GAO believes that mUltiyear fiscal
1996 requires signiflcant changes in         Emerging Issues, by Patricia T.            policy agreements and multiyear
the way that government agencies             Taylor, Director, Information Re-          authori2ations make a great deal of
manage and acquire infornlation              sources ManagementJ Health, Educa-         sense, but they do not reqmre chang-
technology. The act emphasizes               tion, alld Humall Services, before the     ing the appropriations decision cycle
senior executive involvement in              Humall Resources and intergovern-          from annual to biennial. Although
information management decisions,            mental Relations Subcommittee,             biennial appropriations could save
the establishment of Chief Infornla-         House Committee on Government              time for agencies, they would also
tiOll Officers as members of executive       Reform and Oversight.                      result in a shift in congressional
management teams, investment                                                            control and oversight. Proposals to
control and capital planning, process        Technology has increased the amount        change the process should be viewed
reengineering, alld the use of perfor-       of health information available to the     partly in the context of their effect on
mallce measures to ensure account-           public. allowing consumers to become       the relative balance of power in this



GAO/OIMC-97-1A Subject Index                  Pagc 20
debate. Budgeting always involves         ever, NTIS hastily initiated the           commercially available products and
forecasting, which is by nature           project. Development and acquisition       created a system that users seem
uncertain. The longer the period of the   were undisciplined, and Cyberflle was      generally satisfied with. However, the
forecast, the greater the uncertainty.    poorly managed and overseen. The           design of the data base limits system
Increased difficulty in forecasting was   end result was that Cyberflle was not      performance. Further, the system,
one of the main reasons states gave       delivered on time, and ms, after           while having in place some internal
for changing from biennial to annual      advancing more than $17 million to         controls, needs additional controls to
cycles. Dranlatic changes in program      NTIS, has suspended Cyberfile's            ensure the integrity and accuracy of
design or agency structure, such as       development and is reevaluating the        the data.
those Congress is considering in many     project. ms and NTIS did not follow
areas, will make budget forecasting       all applicable procurement laws in         T-AlMD-96-169, Sept. 19, 1996 (14
harder. Moving from an annual to a        developing Cyberflle, and NTIS             pages). Power Marketing Administra-
biennial appropriations cycle at the      actually circunlVented procurement         tions: Cost Recovery, Financing, and
same tinle may not be wise because of     laws in implementing Cyberfile.            Comparison to Nonfederal Utilities,
potential program changes that could,     Moreover, Cyberfile obligations and        by Linda Calbom, Director, Civil
in turn, create a need for budgeting      costs were not accounted for prop-         Audits, before the Water and Power
changes in the second year of a           erly. Finally, adequate fmancial           Resources Subcommittee, House
biennium. If this happens, biennial       program management controls were           Committee on Resources.
budgeting would exist only in theory.     not implemented to ensure that
Biennial appropriations would be          Cyberflle was acquired cost effec-         In recent years, Congress has weighed
neither the end of congressional          tively.                                    the pros and cons of privatizing the
control nor the solution to many                                                     federal power marketing administra-
budget problems. The questions for        T-AlMD-96-168, Sept. 10, 1996 (7           tions (PMA) , which transmit and sell
Congress are (I) how does it wish to      pages). Wormation Management:              electric power generated at federal
exercise its constitutional authority     Technical Review of the White House        hydropower facilities. This report
over appropriations? and (2) in what      Data Base, by Jack L. Brock, Director,     provides infonnation on three of these
forum will it conduct its oversight       Wormation Resources Management!            PMAs-the Southeastern Power
responsibilities?                         General Government Issues, before          Administration, the Southwestern
                                          the National Economic Growth,              Power Administration, and the
T-AJMD-96-165 , Sept. 10, 1996 (21        Natural Resources, and Regulatory          Western Area Power Administration.
pages). Tax Systems Modernization:        Affairs Subcommittee, House Commit-        GAO answers the following three
Actions Underway But Management           tee on Government Reform and               questions: Have all power-related
and Technical Weaknesses Not Yet          Oversight.                                 costs incurred through September
Corrected, by Rona B. Stillman, Chief                                                1995 been recovered through the
Scientist, Computers and Telecommu-       Developed in 1994, the White House         PMA's electricity rates? Is the financ-
nications, before the Senate Commit-      data base replaced several existing        ing for power-related capital projects
tee on Governmental Affairs.              data bases with a single system that       subsidized by the federal government
                                          was supposed to be easier to use and       and, if so, to what extent? How do
The Internal Revenue Service's (IRS)      provide a greater level of service to      PMAs differ from nonfederal utilities
Cyberfile project was intended to         users. Among other thiJ'lgs J the data     and what is the impact of these
enable taxpayers to prepare and           base is used to prepare invitation lists   differences on power production
electronically send their tax returns     for White House events and to provide      costs?
via their personal computers. ms'         information used to write thank you
selection of the Commerce                 notes, Christmas cards, and con'e-         T-AlMD-96-170, Sept. 19, 1996 (16
Department's National Technical           spondence. Wormation in the data           pages). IRS Financial Audits: Status of
Wormation Service (NTIS) to develop       base ranges from names, addresses,         Efforts to Resolve Financial Manage-
Cyberfile was not based on sound          telephone numbers, social security         ment Weaknesses, by Gene L. Dodaro,
analysis that considered various          numbers, and contributor information       Assistant Comptroller General, before
alternatives and assessed NTIS' ability   to individual relationships with the       the Government Management, Wor-
to develop and operate an electronic      First Family and political affiliations.   mation and Technology Subcommit-
filing system. TIS had promised ms        According to the White House, the          tee, House Committee on Government
that it could develop Cyberflle in less   data base contains personal informa-       Reform and Oversight.
than six months and have it up and        tion on about 200,000 persons. In
running by February 1996. To meet         developing its data base, the White
these self-imposed deadlines, how-        House acquired well-established,



                                          Page 21                                             GAO/OIMC-97-lA Subject Index
This testimony discusses the Internal     T-GGD/AIMD-96-68, Feb. 7, 1996 (7          to successfully complete Tax Systems
Revenue Service's (IRS) efforts to        pages). OMB 2000: Changes Resulting        Modernization seems doubtful. In
prepare reliable financial statements,    From the Reorganization of the Office      adrution to more-effective use of
as required by the expanded Chief         of Management and Budget, by L. Nye        technology, increased filing options
Financial Officers Act of 1990, and to    Stevens, Director, Federal Manage-         could benefit both t:a>.-payers and IRS.
make fWldamental management               ment and Workforce Issues, and Paul        For example, if certain obstacles can
improvements. GAO focuses on (1)          L Posner, Director, Budget Issues,         be overcome, return-free ruing can
IRS efforts to implement GAO's            before the Government Management,          ease the burden for taxpayers while
recommendations and develop a             information and Technology Subcom-         reducing the amOWlt of paper IRS
detailed plan with explicit, measur-      mittee, House Committee on Govern-         must process. In tax collection, IRS
able goals, and set a timetable for       ment Refonn and Oversight.                 has made little progress in solving its
actions to correct its financial man-     This testimony ruscusses changes at        accounts receivable problems. IRS
agement weaknesses; (2) IRS'              the Office of Management and Budget        continues to grapple ,vith (1) inaccu-
progress in addressing the major          (OMB) resulting from a 1994 reorgani-      rate and unreliable information, (2)
problems that have prevented GAO          zation---<:ommonly known as OMB            antiquated computers and a rigid
from expressing an opinion on the         2000. The main goal of OMB 2000 was        collection process, (3) unintended
agency's fmancial statements; (3) the     to integrate the agency's budget           problems with safeguards against
impact that IRS' problems in develop-     analysis, management review, and           potential taxpayer abuses, (4) a lack
ing Tax Systems Modernization have        policy development roles Wlder a new       of accoWltability in its organizational
on improving financial information;       organizational structure. In doing so,     structure, and (5) staffmg imbalances.
and (4) the significant adverse effect    OMB sought to improve its                  As a result, IRS cannot be sure how
that delays in resolving fmancial         decisionmaking process and its             much money the government is owed
management weaknesses could have          oversight of executive branch opera-       or how much of the debt is collectible.
on preparing and auruting Treasury's      tions. This testimony focuses on three
agencywide fmancial statements and        issues: (1) changes in OMB's struc-        T-GGD/AIMD-96-115 , May 7, 1996
the fmancial statements for the entire    ture, responsibilities, and staffing,      (41 pages). Library of Congress:
government.                               including changes to the statutory         Opportunities to Improve General and
                                          offices; (2) changes in OMB's atten-       Financial Management, by J. William
T-AIMD/GGD-96-188, Sept. 10, 1996         tion to management issues in the           Gadsby, Director, Government
(13 pages). IRS Operations: Critical      budget process; and (3) the way OMB        Business Operations Issues; Robert
Need to Continue Improving Core           planned to evaluate OMB 2000.              Gramling, Director, Cor-porate Auruts
Business Practices, by Gene L.                                                       and Standards; Joyce C. Doria,
Dodaro, Assistant Comptroller             T-GGD/AlMD-96-88 , Mar. 14, 1996           Partner, Booz-A1len & Hamilton, Inc.;
General, before the Senate Committee      (22 pages). Status of Tax Systems          and Paul E. Lohneis, Partner, Price
on Governmental Affairs.                  Modernization, Tax Delinquencies,          Waterhouse, before the Joint Commit-
                                          and the Potential for Return-Free          tee on the Library.
The Internal Revenue Service (IRS)        Filing, by Lynda D. Willis, Director,
has experienced major problems in         Tax Policy and Administration Issues,      In response to allegations about the
(1) fulfllling its business vision-       and Rona B. Stillman, Chief Scientist,     way in which the Library of Congress
reducing the volume of paper returns,     Computers and Telecommunications,          handled the thefts of rare materials, as
better serving customers, and improv-     before the Treasury-Postal Service         well as longstanding problems related
ing compliance; (2) overcoming            and General Government Subcommit-          to human resources and fmancial
management and teclulical weak-           tee, House Committee on Appropria-         management, GAO was asked to
nesses in its tax systems moderniza-      tions.                                     assess management at the Library.
tion effort; and (3) strengthening the                                               Because of the tight tinlefranle
reliability of its financial management   Regarding the Internal Revenue             involved in this assignment, GAO
and systems used to accoWlt for           Service's (IRS) Tax Systems Modern-        contracted with Booz-Allen Hamilton,
hWldreds of billions of dollars and to    ization effort, GAO is concerned about     Inc. to conduct a general management
measure IRS' performance. This            various weaknesses involving the           review of the Library and with Price
report ruscusses pivotal actions that     electronic-fUing strategy, software        Waterhouse LLP to aurut the Library's
IRS should take to fully implement        development, and other factors that        fIScal year 1995 financial statements.
earlier GAO recommendations and           jeopardize the success of this multi-      This testinlOny is based on the reports
improve its management practices.         million-dollar project. Until these        prepared by Booz-Allen Harnilton and
                                          deficiencies are corrected, IRS' ability   Price Waterhouse and includes
                                                                                     executive summaries of their reports.



GAO/OIMC-97-1A Subject Index               Page 22
GAO discusses four main themes; the       A proposed agreement between the
Library of Congress' mission, opera-      United States and the European
tion, resources, and financial condi-     Atomic Energy Community would
tion.                                     impose controls on the export of some
                                          nuclear materials, nuclear reactors,
T -GGDfAIMD-96-170, July 29, 1996         and their major components between
( 18 pages). Managing IRS: IRS Needs      the United States and 15 western
to Continue Improving Operations and      European nations. Keeping track of
Service, by Lynda D. Willis, Director,    the growing volume of nuclear
Tax Policy and Administration Issues,     material is especially important
before the National Commission on         because of the breakup of the Soviet
Restructuring the Internal Revenue        Union and increases in both domestic
Service.                                  and international terrorism. GAO
                                          testified that the Energy Department's
This testimony was intended to assist     (DOE) nuclear-materials tracking
the National Commission restructure       system, which serves as the primary
the Internal Revenue Service (IRS) .      source of information for the United
GAO makes the following points: ( 1)      States to track U.S. nuclear materials
One of the IRS' biggest problems has      transported to foreign countries, has
been the inefficient way in which its     significant limitations. Moreover,
processes most tax returns. IRS needs     recent information suggests that
to reduce the volume of paper returns.    DOE's replacement tracking system
(2) IRS' strategy for improving cus-      faces a high probability of failure
tomer service appears promising.          because it has not been completely
However, the agency needs to develop      developed and tested.
a plan to overcome significant techni-
cal, managerial, and other obstacles to
achieving its customer service vision.
(3) Longstanding problems continue
to undermine the effectiveness of IRS'
collection problems. Significant
changes are needed in the way IRS
does business. (4) Although IRS has
made some progress in resolving
issues that have prevented GAO from
expressing an opinion on the reliabil-
ity of IRS' financial statements,
serious management problems remain
uncorrected. (5) IRS needs to improve
its ability to make sound investment
decisions in information technology.
IRS' reengineering efforts could
generate new business requirements
that are not addressed by tax systems
modernization or that make some of
those projects obsolete.

T-RCEDfAIMD-96-91, Feb. 28, 1996
(11 pages). Nuclear Nonproliferation:
Concerns With the U.S. International
Nuclear Materials Tracking System,
by Victor S. Rezendes, Director,
Energy, Resources, and Science
Issues, before the Senate Committee
on Governmental Affairs.



                                          Page 23                                  GAO/OIMC·97-1A Subject lndex
GGD                                       testimony before Congress; see: IRS          GGD-96-2, Oct 10, 1995 (18 pages).
                                          Operations: Critical Need to Continue        Personnel Practices: Career Appoint-
AlMD/GGD-96-87, Mar. 7, 1996 (18          Improving Core Business Practices,           ments of Legislative, White House,
pages). Budget Issues: Selected GAO       by Gene L Dodaro, Assistant Comp-            and Political Appointees.
Work on Federal Financial Support of      troller General for Accounting and
Business.                                 Information Management Issues,               Governmentwide, from October 1984
                                          before the Senate Committee on               through June 1994, 1,090 former
The federal government provides           Governmental Affairs. GAOrr-AIMDI            political and congressional/judicial
fInancial benefits to businesses as a     GGD-96-188, Sept. 10 (13 pages).             branch employees received career
way to fulfill a wide range of public                                                  appointments. Of these, 552 persons
policy goals. These benefits are          GGD-96-1, Oct. 24, 1995 (58 pages).          received noncompetitive appoint-
spread throughout the budget, includ-     Export Finance: Comparative Analysis         ments under the Ramspeck Act, and
ing programs in international affairs,    of U.S. and European Union Export            502 persons converted from Schedule
energy, natural resources and environ-    Credit Agencies.                             C and noncareer Senior Executive
ment, agriculture, and transportation.                                                 Service (SES) positions to competitive
In those cases in which programs are      GAO reviewed the types of export-            appointments. Another 36 persons
poorly designed, including those          financing assistance that national           received White House Service ap-
benefiting businesses, the federal        governments provide to exporters and         pointments. Of the 1,090 appoint-
government may spend more money           banks in the United States, particu-         ments, 42 were to the SES level The
or lose more revenue than necessary       larly through the U.S. Export-Import         rest were to jobs equivalent to a G8-15
to reach its intended audience and        Bank (Eximbank), and in the five             grade or lower. Rarnspeck Act ap-
achieve program goals. This docu-         largest exporting countries of the           pointments followed a cyclical trend
ment summarizes earlier GAO work          European Union-France, Germany,              during the l(}.year period, increasing
on spending programs and tax ben-         Italy, the Netherlands, and the United       significantly following federal elec-
efits available to businesses. GAO        Kingdom. The distinguishing charac-          tions. GAO found that the cycle is
presents many examples of federal         teristic of this type of financing is that   associated with turnover in congres-
programs from GAO work published          it is generally tied to the e"llort of       sional members and the resulting
since 1992 in which GAO identified        foods and services from the countries        involuntary separation of congres-
efficiency or effectiveness concerns.     providing the export fmancing assis-         sional staffers. The pattern of Sched-
GAO also discusses program design         tance. Congress is debating the level        ule C and noncareer SES conversions
and implementation.                       of resources that the Eximbank               and White House service appoint-
                                          should receive to support U.S. export-       ments is less clear. Cabinet-level
AlMD/GGD-96-152, Sept. 9, 1996 (29        ers. Some believe that the Eximbank          departments accounted for most
pages). Internal Revenue Service:         plays an important role by correcting        appointments.
Business Operations Need Continued        market failures and helping U.S.
Improvement.                              exporters compete on a level playing         GGD-96-3, Oct. 10, 1995 (29 pages).
                                          field against their foreign counter-         Ta." Administration: IRS Faces
The Internal Revenue Service (IRS)        parts. Critics argue that the Eximbank       Challenges in Reorganizing for
has experienced major problems in         distorts capital markets and provides        Customer Service.
(1) fulfilling its business vision-       unwarranted taxpayers subsidies to
reducing the volume of paper returns,     U.S. exporters. This report (I) identi-      The Internal Revenue Service (IRS) is
better serving customers, and improv-     fies the magnitude of export financing       undergoing a major effort to modern-
ing compliance; (2) overcoming            that the United States and the five          ize its information systems and
management and technical weak-            European Union countries pro_ides,           restructure its organization. This
nesses in its tax systems moderniza-      (2) describes the types of export-           effort involves several components,
tion effort; and (3) strengthening the    fmancing delivery systems used in            one of which IRS calls its 'customer
reliability of its financial management   these countries, (3) highlights key          service vision," which seeks to
and systems used to account for           differences in and the trade-offs            improve IRS interactions ,vith taxpay-
hundreds of billions of dollars and to    among U.S. and European Union                ers and fold parts of IRS' field struc-
measure IRS' performance. This            members state programs, and (4)              ture into 23 customer service centers.
report discusses pivotal actions that     summarizes the status of international       These centers would work primarily
IRS should take to fully implement        efforts to limit the use of government-      by telephone to provide taxpayer
earlier GAO recommendations and           supported export fmancing.                   service, distribute fonus, collect
improve its management practices.                                                      unpaid taxes, and adjust taxpayer
GAO summarized this report in                                                          accounts. The would absorb current



GAO/OIMC-97·1A Subject Index              Page 24
ms telephone operations and try to        (SEC), companies raising money            1970 were the sole domain of the
convert much of ms' written corre-        through IPOs registered securities        Postal Service. Many observers
spondence work to the telephone.          worth nearly $26 billion in 1994.         believe that the current ratemaking
This report review ms' progress           Companies typically use undernTiters      process takes too long for the Postal
toward its customer service vision.       to help them register the IPOs with       Service to respond to today's rapidly
GAO discusses (1) ms' goals for           SEC and raise equity capital from the     changing market conditions. This
customer service and its plans to         investment community. The press has       report discusses ( 1) whether changes
achieve them, (2) the gap between         reported instances in which under-        in policies concerning volume dis-
current performance and these goals,      writers gave some investors preferen-     counting and demand pricing should
(3) its progress to date, (4) current     tial access to the IPO market and         still be considered by Congress, (2)
management concerns, and (5) several      companies did not disclose material       the issues surrounding the current
important challenges that ms faces.       information to investors, such as the     ratemaking process, and (3) proposals
GAO believes that this report will be     criminal and disciplinary histories of    for modifying the postal ratemaking
useful as a baseline for assessing ms'    their undernTiters. This report           process and other changes that merit
progress in coming years.                 discusses (I) the factors that influ-     further consideration by Congress.
                                          ence undernTiters to sell IPO shares      The proposals that GAO offers-to
GGD-96-4, Oct. 25, 1995 (25 pages).       to institutional investors or to indi-    improve the effectiveness of the
Community Policing: Information on        viduals and (2) disclosure require-       postal ratemaking process, ensure
the ·COPS on the Beat" Grant Pro-         ments concerning the history of           fmancial accountability, and give the
grams.                                    disciplinary actions taken against        Postal Service more flexibility to price
                                          underwriters. GAO also discusses          and compete in the marketplace-
This report reviews aspects of the        SEC rules governing the IPO market.       provide the Postal Service, the Postal
Community Oriented Policing Servic-                                                 Rate Commission, and Congress with
ing Program-"COPS on the Beat."           GGD-96-6 , Oct. 13, 1995 (54 pages).      a variety of options to consider in
Under the community policing ap-          Tax Administration: Audit Trends and      reforming the ratemaking process.
proach to law enforcement, citizens,      Taxes Assessed on Large Corpora-
police department, and other agencies     tions.                                    GGD-96-9, Oct. 19, 1995 (55 pages).
work together to identify crime                                                     Smithsonian Institution: Better Care
problems and come up with solutions.      This report focuses on the Internal       Needed for National Air and Space
Community policing began to emerge        Revenue Service's emS) program to         Museum Aircraft.
during the late 19705, and the Justice    audit the tax returns of about 45,000
Department has supported community        large corporations. ms audits of          The popular National Air and Space
policing efforts through various grants   returns field by these 45,000 corpora-    Museum in Washington, D.C., has
for about 15 years. GAO describes the     tions plus the 1,700 largest corpora-     preserved many historic air and space
grant application, selection, and         tions in ms' Coordinated Examination      artifacts, but many planes in the
monitoring process for the program.       Program have generated about two-         musewn's collection need extensive
GAO also compares the crime rates in      thirds of the additional taxes recom-     restoration and better storage. The
applicant and nonapplicant jurisdic-      mended from all income audits. GAO        restoration backlog totals 100 years,
tions, the reasons some of the juris-     used ms data to (I) analyze audit         and plans to add additional aircraft to
dictions chose not apply for program      trends for fIScal years 1988 through      the collection will exacerbate the
grants, and public safety issues          1994, (2) compute the assessment          problem. Management of the aircraft
identified by a sample of jurisdictions   rate-the portion of taxes recom-          collection at locations that are not
applying for program grants.              mended by revenue agents that were        generally seen by the public, such as
                                          eventually assessed, and (3) develop      the Museum's restoration and storage
GGD-96-5, June 6, 1996 (23 pages).        and compare profiles of audited large     facility in Suitland, Maryland, need
Initial Public Offerings: Gttidance       corporations with those not audited.      improvement. The Museum commits
Needed on Disclosure of UndernTit-                                                  relatively few resources to aircraft
ers' Disciplinary Histories.              GGD-96-8, Nov. 15, 1995 (32 pages).       restoration, compared to other
                                          U.S. Postal Service: Postal               museum activities and another
Initial public offerings (lPO)-the sale   Ratemaking in Need of Change.             fede rally funded air museum. But
of a company's stock to the public for                                              even if the Museum were to increase
the first time-are a mlijor source of     Today, the U.s. Postal Service com-       its restoration efforts, it would not
funding for new companies seeking to      petes with communications technolo-       have enough space to properly display
raise capital. According to the Securi-   gies and private carriers for the         or store the aircraft. Ii the Museum
ties and Exchange Commission              delivery of services in markets that in   decides to reduce its collection so




                                          Page 25                                            GAO/OIMC-97-1A Subject Index
that it can be stored under environ-        Tax Administration: Electronic Filing      Federal Deposit Insurance Corpora-
mentally controlled conditions, it may      Falling Short of Expectations.             tion to the Export-Import Bank. This
wish to deaccession aircraft or obtain                                                 report discusses (1) government
second-party restorations by making         Electronic filing is a cornerstone of      corporations now in operation and (2)
temporary loans to other museums.           the Internal Revenue Service's (IRS)       their adherence to 15 federal statutes.
Using more second-party restorations        plan to move away from the tradi-
would help preserve the Museum's            tional filing of paper returns. Because    GGO-96-15 , Oct 25, 1995 (17 pages).
collection, alleviate its storage           electronic filing of tax returns in 1994   Government Contractors: Selected
problenls, and help share its collec-       was most popular among those using         Agencies' Efforts to Identify Organiza-
tion with the public. The planned           Forms 1040A or 1040EZ-the simplest         tional Conflicts of Interest.
extension at Dulles Airport could help      and least costly to process--IRS is not
ease the Museum's storage problems,         saving as much as it expected from         This report reviews federal agencies'
but funding is uncenain and the             electronic filing. Meanwhile, it           implementation of the Office of
e>.1:ension may take several years to       appears that IRS will fall far short of    Management and Budget's 1989 policy
complete.                                   its goal of 80 million tax forms fLIed     letter entitled "Conflict of Interest
                                            electronically by the year 2001. A         Policies Applicable to Consultants.' It
GGO-96-11, Feb. 26, 1996 (69 pages).        major impediment to the expansion of       also reviews organizational conflict of
Counterfeit U.S. Currency Abroad:           electronic filing is its cost to the       interest requirements applicable to
Issues and U.S. Deterrence Efforts.         public. Taxpayers who file an elec-        advisory and assistance service
                                            tronic return through a preparer or        contractors, including consultants.
U.S. currency, reportedly the most          electronic filing transmitter must pay     GAO ( I) determines whether selected
widely held in the world, is suscep-        as much as $40 for these services. By      agencies have complied with require-
tible to counterfeiting. The Federal        focusing solely on its goal of 80          ments to identify and evaluate poten-
Reserve estimates that of the S380          million tax forms, IRS may be target-      tial organizational conflicts of interest
billion of U.S. currency in circulation,    ing its limited resources toward           and (2) identifies ways that agencies
more than 60 percent may be held            groups of taxpayers or types of            might improve their screening for
outside the United States. The wide-        retunlS that will boost the number of      such conflicts. GAO focuses on the
spread use of U.s. currency abroad,         electronic returns but not necessarily     Energy Department, the Environmen-
together with the outdated security         yield the greatest reductions in IRS'      tal Protection Agency, and the Navy
features of the currency, make it           paper-processing workload and              because they are among the largest
panicularly vulnerable to interna-          operating costs. Although a marketing      users of contracted advisory and
tional counterfeiters. Widespread           strategy that focuses on reducing          assistance services.
counterfeiting of U.S. currency could       paper and costs may generate fewer
undermine confidence in the dollar          than 80 million returns, it could have a   GGO-96-17, Mar. 29, 1996 (124
and, if done on a large enough scale,       more significant impact on IRS'            pages). Use of Force: AIT Policy,
could harm the U.S. economy. This           overall operations. The contract that      Training and Review Process Are
report discusses (1) the nature of          IRS awarded in May 1995 may provide        Comparable to DEA's and FBI's.
counterfeiting of U.S. currency             costibenefit data that the agency can
abroad, (2) the extent of that counter-     use to reassess its strategy. That         In recent years, the Bureau of Alcohol,
feiting and of concerns about this          information may help IRS identify          Tobacco and Firearms (ATF) has
issue, and (3) the status of U.S. efforts   steps to make electronic filing more       come under public criticism and
to deter such counterfeiting. GAO           attractive to those taxpayers and          congressional scrutiny, in pan due to
summarized this report in testimony         preparers who are now put off by its       accusations that ATF agents used
before Congress; see: Counterfeit U.S.      cost.                                      excessive force in carrying out their
Currency Abroad: Observations on                                                       responsibilities. This report discusses
Counterfeiting and U.S. Deterrence          GGO-96-14, Dec. 13, 1995 (177              (1) ATF's policies on using deadly
Efforts, by JayEtta Z. Hecker, Associ-      pages). Government Corporations:           force; (2) the way in which ATF
ate Director for International Rela-        Profiles of Existing Government            conveys its policies to its agents; (3)
tions and Trade Issues, before the          Corporations.                              the reasons for and the extent to
Subcommittee on General Oversight                                                      which AIT uses dynamic entries and
and Investigations, House Committee         Government corporations are gener-         the equipment it uses to make them;
on Banking and Financial Services.          ally federally chanered entities           and (4) AIT's compliance with its
GAOIf-GGD-96-82, Feb. 27 (21 pages).        created to serve a public function of a    procedures for investigating shooting
                                            predominantly business nature. These       and alleged excessive use-of-force
GGO-96-12 , Oct. 31, 1995 (24 pages).       entities range from Amtrak to the          incidents. GAO compares ATF's



GAO/OIMC-97 -LA Subject Index               Page 26
policy, training, and review process     result in lower grades being assigned     could also use preliminary TCMP data
on the use of force with those at the    to jobs in occupations with large         as they become available to develop
Drug Enforcement Administration and      number of females or ntinorities. GAO     other questions. Further delays must
the FBI. GAO summarized this and the     examined the relationship between         be avoided because the existing
following report in testimony before     job content and grades assigned using     TCMP data are old, and, to GAO's
Congress; see: Alcohol, Tobacco and      the Fact Evaluation System and found      Imowledge, no other data sources
Firearms: Issues Related to Use of       differences in the grading of positions   exist that would allow IRS to develop
Force, Dealer Licensing, and Data        in occupations with high representa-      formulas for selecting returns for
Restrictions, by Nonnan J. Rabkin,       tions of women or ntinorities. The        audiL lRS is trying to develop a
Director of Administration of Justice    National Perfonnance Review and           system that could be used for select-
Issues, before the Subcommittee on       other studies suggest that classifica-    ing returns, but this system will not be
Treasury, Postal Service, and General    tion systems should be abandoned in       up and ruruting for years. TCMP data
Government, House Committee on           favor or more flexible, broad-banded      could also be helpful in the design and
Appropriations. GAOrr-GGD-96-104,        systems. GAO suggest that                 administration of alternative tax
Apr. 25 (46 pages).                      policymakers closely monitor any new      systems. The value of the data would
                                         systems to ensure that (1) unintended     depend on how much of the current
GGD-96-18, Oct. 31, 1995 (28 pages).     disparities are identifIed and cor-       tax system would be retained under
Private Attorneys: Selected Attorneys'   rected and (2) the national policy        the new system.
Fee Awards Against Nine Federal          underlying the existing classification
Agencies in 1993 and 1994.               system-that jobs be classified so that    GGD-96-22 , Jan. 25, 1996 (90 pages).
                                         pay is equal for substantially equal      Gtm Control: Implementation of the
This report provides information on      work-is being satisfactorily              Brady Handgun Violence Prevention
the number of cases and amou nt of       achieved.                                 Act.
plaintiff attorneys' fees awarded more
than $100,000 against federal agencies   GGD-96-21, Oct. 6, 1995 (23 pages).       The Brady handgun control law
for cases closes during fIscal years     Tax Administration: information on        imposed a fIve-day waiting period on
1993 and 1994. These data include the    IRS' Ta,,:payer Compliance Measure-       handgun sales to allow for back-
highest individual fees and hourly       ment Program.                             ground checks. GAO's self-initiated
rates awarded under federal statutes                                               review of the first full year of the
against the following nine federal       The Internal Revenue Service (IRS)        Brady bill's implementation discusses
agencies: the Departments of Defense,    generally responded to the concerns       (1) how often the five-day waiting
Health and Human Services, Housing       raised in GAO's 1994 report (GAOl         period and background checks
and Urban Development, the interior,     GGD-95-39) that dealt with meeting        resulted in denying criminals and
Justice, Transportation, and the         milestones for starting Taxpayer          other ineligible persons the opportu-
Treasury; the General Services           Compliance Measurement Program            nity to buy handguns from federally
Administration; and the U.S. Postal      (TCMP) audits, testing TCMP data-         licensed dealers; (2) the extent to
Service. GAO also provides attorneys'    base components, developing data          which such denials resulted in the
fee awards data reported in the fIScal   collection systems, and analyzing         arrest and the prosecution of con-
year 1993 Equal Access to Justice        data. Because of uncertainties about      victed felons and other ineligible
annual reports and attOrneys' fee        its fiscal year 1996 budget, IRS          purchasers who falsely completed the
awards paid from the Judgement Fund      delayed the start of its TeMP audits      handgun purchase application form;
during fIscal years 1993 and 1994.       from October 1 to December 1, 1995.       and (3) the effects of the various legal
                                         This delay turned out to be fortuitous    challenges to the Brady bill. Although
GGD-96-20, Nov. 6, 1995 (64 pages).      because IRS had not completed             GAO found that 4.3 percent of pur-
Federal Job ClassifIcation: Compari-     testing all the tax return database or    chase applications were denied during
son of Job Content With Grades           data collection systems for the TCMP.     the law's fIrst year, these results are
Assigned in Selected Occupations.        If the tests show that major changes      not projectable to the universe of
                                         must be made to the database or data      denials nationwide because standard
Over the years, many studies have        collection systems, IRS may not meet      and common criteria were not used to
suggested that women and minorities      its December 1 deadline for starting      make denials.
are paid less than men and               audits. There is still time for lRS to
nonminorities who work comparable        develop a research plan to enable the     GGD-96-23, Nov. 28, 1995 (1l0
jobs. These observations have raised     agency to analyze fmal TCMP results       pages). Community Reinvestment
questions about whether the federal      more quickly. IRS can begin now to        Act: Challenges Remain to Success-
government's classification systems      formulate research questions and          fully Implement CRA.




                                          Page 27                                           GAO/OIMC-97-1A Subject Index
Concerned that banks and thrifts were     areas in which U.S. laws and regula-       GGD-96-30, Dec. 20, 1995 (90 pages).
unresponsive to credit needs in low-      tions have been adapted to meet the        U. S. Postal Service: New Focus on
and moderate-income areas, Congress       circumstances of foreign banks and         Improving Service Quality and Cus-
enacted the Community Reinvestment        examines the competitive impact of         tomer Satisfaction.
Act of 1977 (CRA) CRA requires            these adaptations on U.S. banks.
federal bank and thrift regulatory                                                   Above all, Postal Service customers
agencies to encourage institutions to     GGD-96-27, Nov. 14, 1995 (26 pages).       want and e"-pect prompt, reliable mail
help meet credit needs in all areas of    Administrative Law Judges: Compari-        delivery. When dissatisfied with
the communities that they serve,          son of SEC and CITC Programs.              traditional mail services, customers
consistent with safe and sound                                                       increasingly tum to alternatives, such
operations. CRA also requires the         Generally, Administrative Law Judges       as electronic communication or other
regulators to assess institutions' CRA    (ALl) at the Securities and Exchange       suppliers. According to the Postal
performance during examination and        Commission (SEC) and the Commod-           Service, on the basis of current
to consider that performance when         ity Futures Trading Commission             customer satisfaction levels and if
evaluating institutions' applications     (CITC) serve as hearing officers in        customers could use another service
for expansion or relocation of opera-     cases involving violations of securities   at the same price, more than 40
tions. Growing concern about the          and futures laws. ln response to press     percent of the residential customer
effectiveness of CRA's implementa-        reports that CITC routinely reversed       market could be vulnerable to compe-
tion and its regulatory burden on         or scaled back penalties imposed by        tition. This report examines the Postal
institutions led to the recent revision   its AUs, this report compares the AU       Service's efforts to measure, report,
of CRA regulations. This report           programs at the two agencies, includ-      and improve customer satisfaction.
addresses the following four ques-        ing case-processing times and the          GAO discusses (1) the extent to which
tions: (1) what were the m~or prob-       results of appeals of AU decisions.        the Service distributes customer
lems in implementing CRA, as identi-      GAO also provides information on           satisfaction data for use internally and
fied by the affected parties-bankers,     budgets, staffmg, and caseload             by Congress; (2) whether the Service
regulators, and community groups?         statistics for both agencies' AU           can improve the distribution of that
(2) to what extent do the regulatory      operations.                                data; (3) what steps it is taking to use
reforms address these problems? (3)                                                  customer satisfaction and other
what challenges do the regulators face    GGD-96-28, Jan. 4, 1996 (48 pages).        performance data to improve cus-
in ensuring the success of the reforms    Money Laundering: Rapid Growth of          tomer satisfaction by improving
and what actions would help regula-       Casinos Makes Them Vulnerable.             customer service; and (4) any addi-
tors face these challenges? and (4)                                                  tional steps it could take to inlprove
what initiatives have been taken or       The volume of cash wagered in a            customer satisfaction.
proposed to help bankers overcome         growing number of casinos around the
community lending barriers and            country, coupled with uneven enforce-      GGD-96-32, Dec. 11, 1995 (19 pages).
enhance lending opportunities,            ment of currency-transaction- report-      Retention Allowances: Usage and
particularly in low- and moderate-        ing requirements for casinos, makes        Compliance Vary Among Federal
income areas?                             these businesses vulnerable to             Agencies.
                                          persons attempting to launder profits
GGD-96-26, Feb. 7, 1996 (57 pages).       from illegal activities. This report       Federal agencies use retention
Foreign Banks: Assessing Their Role       discusses (1) the extent of legalized      allowances as salary supplements to
in the U.S. Banking System.               gambling in the United States, espe-       retain essential workers. As of
                                          cially that taking place in casinos; (2)   September 1994, 354 of the 2.1 million
During the past 20 years, the share of    the currency-transaction-reporting         civilian employees in the executive
U.s. banking assets held by foreign       requirements for casinos; (3) whether      branch were receiving retention
banks has increased significantly.        t he same reporting requirements           allowances. The cost of these allow-
This report examines the role of          apply to tribal casinos; and (4) the       ances totaled $2.8 million annually.
foreign banks in the United States and    level of enforcement efforts to ensure     Five agencies-the Departments of
reviews U.S. laws and regulations         that casinos comply with currency-         Defense (DOD), Energy, and Agricul-
governing their operations. Specifi-      transaction-reporting requirements.        ture; the Export-Import Bank; and tlle
cally, GAO evaluates whether these        This report also provides information      Securities and Exchange Commission
laws and regulations give foreign         on new legislation and recent changes      (SEC)-awarded 94 percent of these
banks operating in the United States a    to existing federal regulations that       retention allowances. GAO found that
significant competitive advantage         will affect currency transaction           Eximbank awarded allowances to
over U.S. banks. GAO also identifies      reporting for casinos.                     nearly 22 percent of its employees in



GAO/OIMC-97-lA Subject Index              Page 28
fIScal year (FY) 1994; other agencies      credit-in particular those cited in a      residential mortgage loans. Moreover,
gave allowances to 0.3 percent or          report done by KPMG Peat Marwick-          to price the loans, the two valuation
fewer of their employees. The average      and discusses whether the studies          contractors appeared to have used a
allowances at the five agencies during     provided adequate evidence to              reasonable methodology that took
FY 1991 through 1994 was about             conclude that each dollar taken ofthe      into account fluctuations in interest
$7,800 per employee. Eximbank did          tax credit stimulates at least one         rates, credit risk sensitivity, and the
not appear to comply with the require-     do llar of research spending in the        fact that these were RTC loans.
ment that it determine that prospec-       short run, and about two dollars of        Further, officials at Fannie Mae and
tive recipients would be likely to         research spending in the long run.         Freddie Mac found this pricing
leave the agency if they did not           GAO examines the six studies cited in      methodology to be generally consis-
receive allowances. The retention          the KPMG report as well as other           tent with their approaches.
allowance plans for DOD, Eximbank,         recent studies of this credit. GAO ( 1)
and SEC did not include criteria for       evaluates the studies for the adequacy     GGD-96-45R, Nov. 9, 1995 (10
determining the amounts of the             of the data and methods used to            pages). Health Care Task Force.
allowances. Without a documented           determine the amount of research
agen cywide rationale, lower-level         spending stimulated per dollar of          This letter provides information on
managers lacked guidance for deci-         foregone tax revenue and (2) identi-       the government-wide costs associated
sions on individual allowances.            fies factors, other than spending per      with the President's Task Force on
Moreover, Office of Personnel Man-         dollar of revenue cost, that determine     Health Care Reform. GAO has com-
agement regulations do not require         the credit's value to society.             pleted collecting information from all
that allowances be reviewed or                                                        10 federal agencies, including the
recertified in writing when there are      GGD-96-44 , Dec. 22, 1995 (15 pages).      Executive Office of the President, that
significant increases to employees'        Resolution Trust Corporation: Per-         were involved in the Task Force. GAO
basic pay during the year.                 fanning Assets Sold to Acquirers of        lists by agencies their Task Force-
                                           Minority Thrifts.                          related spending, which totalled S13.8
GGD-96-35 , Dec. 26, 1995 (33 pages).                                                 million. More than half of the total-
Transforming the Civil Service:            GAO reviewed the Resolution Trust          $7.5 million-was attributed to
Building the Workforce of the Future:      Corporation's (RTC) efforts to sell        personnel costs. Task Force spending
Results of a GAO-Sponsored Sympo-          performing assets to acquirers of          ranged from more than $9 million at
sium.                                      failed thrifts under the minority          the Department of Health and Human
                                           preference resolutions program. GAO        Services to less than $50,000 at the
In April 1995, GAO sponsored a             found that RTC has established a           Education Department. GAO also
symposium-"Transforming the Civil          reasonable process anchored to             breaks out the total cost by work
Service: Building the Workforce of the     agency and mortgage securities             phases and functional categories.
Future"-that brought together              markets standards. This process
representatives of leading private         allowed for the independent valuation      GGD-96-48, Dec. 29, 1995 (32 pages).
sector firms, public sectors employers     of 1- to 4-family residential mortgage     The 1995 Tax Filing Season: IRS
from both the United States and            loans that were offered for sale to        Performance Indicators Provide
abroad, and distinguished former           minority acquirers. RTC contracted         Incomplete Information About Some
federal officials to discuss new           with two independent valuation             Problems.
approaches to managing people. This        contractotS, experienced in mortgage
report distills from their discussions a   secwities markets, t provide separate      This report assesses the Internal
set of emerging human resource             prices for each loan, which RTC then       Revenue SeIVice's (IRS) performance
management principles and points out       averaged and offered to the minority       during the 1995 tax filing season.
some of the inlptications should           acquirer as the final price. By remov-     Although IRS indicators show that the
Congress consider applying these           ing itself from the initial phase of the   agency met many of the 1995 filing
ideas to the federal civil service.        loan pricing process, RTC showed its       season goals, these indicators do not
                                           commitment to establishing a process       provide a complete assessment of the
GGD-96-43 , May 21, 1996 (26 pages).       that was fair to minority acquirers but    filing season. Several problems are
Tax Policy and Administration:             that, at the same time, sought to          not obvious from these indicators: (I)
Review of Studies of the Effectiveness     maximize total retum on the disposi-       IRS' efforts to combat fraud generated
of the Research Tax Credit.                tion of assets as required by law.         much adverse publicity that might
                                           Under th is program, 11 of the 14          have been avoided have the agency
This report evaluates recent studies of    minorities who bought thrifts from         better fo rewarned ta.xpayers of
the effectiveness of the research tax      RTC purchased 4,063 1- to 4-farnHy         potential refund delays; (2) GAO's




                                            Page 29                                            GAO/OIMC-97-1A Subject Index
tests and IRS data showed that             significant additional revenue, those      describes the U.S. and the interna-
taxpayers continued to have serious        who wish to defraud the system             tional responses to the crisis, includ-
problems trying to reach IRS by            continue to have significant incentives    ing an assessment of the terms and
telephone; and (3) a new document          to do so. IRS has detected several         the conditions of the agreements
imaging system did not work as well        scams involving refunds of gasoline or     implementing the U.S. portion of the
as expected, leading to increased          diesel fuel excise taxes. IRS does not     assistance; (4) analyzes the statutory
returns processing costs and lower-        know how extensive this fraud may          authority for the Secretary of the
than~xpected productivity.                 be. Evasion problems may persist           Treasury's use of the Exchange
                                           because the incentives to evade are so     Stabilization Fund to fmance the
GGD-96-51, Mar. 11, 1996 (46 pages).       great.                                     assistance package; and (5) examines
U.S. Postal Service: Unresolved Issues                                                the initial efforts of Mexico to recover
in the International Mail Market.          GGD-96-55 , May 7, 1996 (45 pages).        from the crisis, including Mexico's
                                           Federal Personnel: Issues on the Need      access to international capital mar-
This report provides information on        for the Public Health Service's Com-       kets.
the U.S. Postal Service's participation    missioned Corps.
in the international mail market,                                                     GGD-96-59, Jan. 18, 1996 (16 pages).
which includes letter mail, express,       Public Health Service's Commissioned       Postal Service: Conditions Leading to
and parcel delivery service. GAO           Corps, whose officers carry out            Problems in Some Major Purchases.
discusses ( 1) the Postal Service's        various public health functions. GAO
authority and responsibility for           addresses why the Corps exists; Corps      Congress has raised concerns that five
delivering and receiving international     officers' duties; the rational for their   purchases by the Postal Service did
mail; (2) the competition for interna-     receiving military-like pay, allow-        not reflect favorably on the Service's
tional mail delivery, including Postal     ances, and benefits; and any savings       procurement policy or the wisdom of
Service plans to increase its competi-     that might accrue from not using           exempting the Service from many of
tiveness; and (3) legal and regulatory     unifonned personnel to carry out the       the purchasing rules that apply to
issues arising out of the competition      Corps' duties.                             other federal agencies. The purchas-
for the delivery of international mail                                                ing problems covered by this report
services.                                  GGD-96-56 , Feb. 23, 1996 (154             focus on seven cases, ranging from
                                           pages). Mexico's Financial Crisis:         ethics violations in an automation
GGD-96-53, Jan. 16, 1996 ( 16 pages).      Origins, Awareness, Assistance, and        contract to the purchase of a site in
Tax Administration: Diesel Fuel            Initial Efforts to Recover.                Queens, New York, that is unusable
Excise Tax Change.                                                                    because of toxic contatnination. Given
                                           Mexico's devaluation of the peso in        the circumstances of the seven
The new diesel fuel excise tax ap-         December 1994 precipitated a crisis in     purchases, GAO does not believe that
pears to be having the desired effect.     Mexico's fmancial institutions and         the problems were due to causes that
Preliminary data from the Internal         markets that continued into 1995. In       should be addressed through legisla-
Revenue Service (IRS) show that            response to the crisis, the United         tion. GAO attributes the problems to
diesel excise ta.x collections rose        States assembled a fmancial assis-         poor judgement and decisions to
about $1.2 billion, or 22.5 percent, in    tance package of nearly $50 billion in     circumvent existing internal controls
1994 as compared with figures for          funds from the United States, Canada,      to meet perceived operational exigen-
1993. This increase does not include       the International Monetary Fund            cies. Nevertheless, the Postal Service
additional revenues due to the Onuti-      (IMF), and the Bank for International      can improve its purchasing organiza-
bus Reconciliation Act of 1993             Settlements. The multilateral assis-       tion and methods to help safeguard
increase of 4.3 cents per gallon in the    tance package was intended to enable       against such future occurrences, and
tax rate. After acijusting for increased   Mexico to avoid defaulting on its debt     the Service has taken steps to do so.
refund and credit amounts, and for a       obligations, and thereby overcome its
portion of the increase that may be        short-term liquidity crisis, and to        GGD-96-61 , Mar. 8, 1996 (92 pages).
due to economic growth, the Treasury       prevent the crisis from spreading to       Tax Policy and Administration: 1995
Department estimates that increased        other emerging markets. This report        Annual Report on GAO's Ta.x-Related
compliance alone led to an increase of     (1) examines the origins of Mexico's       Work.
up to $700 million. IRS has responded      fmanciaJ crisis; (2) assesses the
to concerns that stakeholders raised       extent to which the U.S. government        This report summarizes GAO's work
about the dyeing requirements.             and the lMF were aware of Mexico's         in the tax area during fiscal year 1995.
Although the new diesel taxation           fmancial problems throughout 1994          It discusses actions taken on GAO's
approach appears to be raising             and provided advice to Mexico; (3)         recommendations as of the end of



GAO/OIMC-97-1A Subject Index               Page 30
1995, recommendations that GAO           GGD-96-63, May l4 , 1996 (33 pages).      that the timely use of the file aids in
made to Congress before and during       Federal Downsizing: The Costs and         the apprehension of fugitives and
fIScal year 1995 that have not been      Savings of Buyouts Versus Reduc·          reduces the risk to law enforcement
acted upon, and assigrunents for         tions-in-Force.                           personnel and the public. GAO did a
which GAO was given access to tax                                                  follow-up review of the entries made
information under the law. GAO's key     To facilitate federal downsizing,         in the wanted person file and found
recommendations for tax policy and       Congress is again considering             that the FBI; the United States Mar-
administration relate to the need for    buyouts. GAO found that buyouts will      shals Service; the Bureau of Alcohol,
improving compliance with the tax        generate more savings than reduc-         Tobacco, and Firearms (ATF); and the
laws, assisting taxpayers, enhancing     tions-in-force (RIF) if typical bumping   Customs Service had entered many
the effectiveness of tax incentives,     and retreating take place. In cases in    fugitives in the file long after their
improving Internal Revenue Service       which bumping and retreating do not       arrests had been authorized. In
management, and improving the            take place, however, RIFs may be          response to GAO's finding, the FBI,
processing of returns and receipts.      yield more savings than buyouts for       ATF, and the Customs Service did
GAO highlights notable reports and       retirement-eligible employees. If the     their own reviews and discovered
testinlOny from fiscal year 1995.        employee being RIFed is not eligible      similar entry time problems. GAO
                                         for a retirement annuity, the projected   concludes that NCIC and its partici-
GGD-96-62 , Aug. 26, 1996 (75 pages).    buyout savings would be 10 percent        pating agencies need clear, written
Federal Downsizing: Better Workforce     more than the net RIF savings for this    policies that call for and define
and Strategic Planning Could Have        same worker. Projected savings from       "immediate entry" and set forth any
Made Buyouts More Effective.             both buyouts and RIFs could be            exceptions. Moreover, agencies
                                         reduced if vacated positions were         should periodically monitor entry
Although buyouts of up to $25,000        refilled and not eliminated or if work    times and reasons for delays and
helped federal agencies shrink the       previously done by the separated          conmlunicate problems and suggest
federal workforce by almost 230,500      employees is later contracted out.        actions to their field offices. Although
employees (10.5 percent) between         Although the extent of bumping and        GAO did not review entry times for all
January 1993 and March 1996, some        retreating 'fider a RIF may be hard to    law enforcement agencies in the
agencies report that the downsizing      determine, it may have a significant      Justice and Treasury Departments,
has stretched them too thin, causing     effect on the economics of the            GAO believes that the same reasons
work backiogs, a loss of institutional   downsizing strategy used. Economics       for tinlely entry generally would apply
memory, and skill imbalances. Such       play an important part in an agency's     to these agencies.
consequences could have been             decision on which downsizing strat-
avoided had agencies done adequate       egy to use, but agency officials also     GGD-96-65 , Mar. 11, 1996 (69 pages).
strategic and workforce planning,        consider noneconomic effects, such        Border Patrol: Staffing and Enforce-
which would have increased the           as the ability to use buyouts to          ment Activities.
likelillood that employees with          restructure agency workforces, retain
needed skills and training were          or improve workforce diversity, and       The Violent Crime Control and Law
retained. In general, agency officials   avoid lowering productivity and           Enforcement Act of 1994 increased
viewed the buyouts as an effective       morale.                                   funding for the Border Patrol to help
downsizing tool, allowing them to                                                  stem the flow of illegal aliertS crossing
reach their downsizing goals with        GGD-96-64, Feb. 26, 1996 (24 pages).      the southwest border. The legislation
minimal use of reductions-in-force.      Federal Fugitives: More Timely Entry      authorized increases in the number of
The buyouts also permitted agencies      on National Wanted Person File Is         Border Patrol agents and support staff
to downsize without disproportion-       Needed.                                   to carry out the Inunigration and
ately affecting the representation of                                              Naturalization Service's (INS) new
women and minorities. The largest        As a result of earlier work on inter-     border enforcement strategy of
share of the buyouts was paid to         agency coordination in apprehending       "prevention through deterrence."
employees who took regular or early      federal fugitives, GAO noted that         Under this strategy, more Border
retirements. GAO's analysis of separa-   many entries in the FErs National         Patrol agents are to be stationed
tion trends suggests that some           Crime Information Center's (NCIC)         directly on the border to discourage
employees may have delayed their         wanted person ftle had been made          aliens from entering the United States
departures in order to receive           long after arrest warrants had been       illegally. GAO analyzed the Border
buyouts.                                 issued. TIlis was contrary to the         Patrol's enforcement activities
                                         policies of the agencies that had made    nationwide. This analysis is intended
                                         the entries and the widespread view       for use in congressional deliberations



                                         Page 31                                            GAO/OIMC·97·1A Subject Index
on the number of Border Patrol agents      GGO-96-70, Mar. 15, 1996 (24 pages).       Three prototype interactive telephone
to patrol the southwest border.            Tax Administration: IRS Can Improve        systems-designed to reduce corre-
further, GAO's analysis provides           infonnation Reporting for Original         spondence between the Internal
baseline data on the ( 1) locations        Issue Discount Bonds.                      Revenue Service (IRS) and taxpayers
where the Border Patrol carried out                                                   and to make IRS more accessible-
its enforcement duties, (2) number of      Infonnation reporting is a vital tool      suffer from too many menu options
Border Patrol staff at each location,      for the Internal Revenue Service (IRS)     and other problems. Resolving these
(3) specific enforcement activities        in promoting voluntary compliance          shortcomings is essential if IRS is to
carried out at each location, (4) views    with U.S. income tax laws. This            achieve its goal of handling 45 percent
of INS officials on the contributions of   reporting, which is done through a         of taxpayer calls by using interactive
the Border Patrol to INS enforcement       series of returns designed to report       phone systems. IRS' telephone-routing
activities, and (4) factors that could     nonwage income on IRS Fonus 1099,          system requires taxpayers to remem-
affect decisions on hiring or relocat-     is intended to ensure that taxpayers       ber up to eight menu options, even
ing agents for assignment to the           know of and report investment and          though the contractor guidelines
southwest border.                          other income on their tax returns.         called for no more than four, and does
                                           This report focuses on IRS efforts to      not allow taxpayers to return to the
GGO-96-69, Mar. 20, 1996 (157              ensure that investment income earned       main menu when they make a mistake
pages). Management Refonn: Status          from bonds sold at ·original issue         or want to resolve other issues. IRS
of Agency Reinvention Lab Efforts.         discount" is reported. Those efforts       has yet to do a cost-benefIt analysis of
                                           center on an IRS pUblication-List of       the use of multiple toll-free numbers,
The National Perfonnance Review            Original Issue Discount Instnunents-       which IRS officials had recommended
(NPR), a major government refonn           that furnishes data for use in prepar-     as a solution to the problem of too
effort under the direction of Vice         ing Fonn 1099. GAO discusses (I)           many menu options. Providing
President Gore, has established            whether the publication provides a         taxpayers with a written, detailed
"reinvention labs" to test ways for        complete list of existing original issue   step-by-step description on how to use
federal agencies to improve their          discount bonds, (2) how IRS ensures        the menu options might be another
perfonnance and customer service by        that the list is complete, and (3)         way to make the telephone systems
reengineering work processes and           whether the publication's target           more user friendly. IRS complied with
eliminating unnecessary regulations.       audience uses dIe publication in           government security requirements
Lab officials throughout the country       preparing Fonn 1099.                       when developing its flfSt three
indicated that the labs addressed a                                                   interactive telephone systems. How-
variety of topics. Although nearly half    GGD-96-72 , May 13. 1996 (37 pages).       ever, future interactive systems will
of those surveyed reported that            Internal Revenue Service: Results of       allow taxpayers greater access to tax
customer service was their labs' main      Nonfiler Strategy and Opportunities to     infonnation, and more-secure fea-
goal, they often said that the labs'       Improve Future Efforts.                    tures, such as a personal identifica-
customers were other government                                                       tion number, may be needed to
organizations, not the public as the       At the beginning of fIscal year 1993,      protect taxpayer data.
Vice President originally suggested. At    the Internal Revenue Service (IRS)
the time of GAO's survey, about half       had an inventory of about 10 million       GGO-96-75 , Mar. 14, 1996 (52 pages).
of the labs were up and running, while     individual and business nonfilers. IRS     Manufacturing Extension Programs:
the rest were still in the planning        estimated that unpaid taxes on             Manufacturers' Views About Delivery
stage. About two-thirds of the respon-     nonfiled individual income tax returns     and Impact of Services.
dents said that they collected data on     for 1992 alone totaled more than $10
their labs' perfonnance, and more          billion. Concerned about this noncom-      Manufacturing extension progranlS
than 80 percent said that this infonna-    pliance, IRS began a strategy in fIscal    help companies modernize or upgrade
tion indicated that the labs had           year 1993 to bring nonfLlers into the      their operations, often with state and
improved service, productivity, and        system and keep them there. This           federal funding. The National Institute
employee morale. In GAO's view, the        report (I) assesses the results of that    of Standards and Technology manages
labs' results suggest severai promising    strategy and (2) discusses opportuni-      federal funding for the program
approaches to improving agency work        ties to improve future nonfLler efforts.   through its Manufacturing Extension
processes. However, the labs' real                                                    Partnership Program (MEP). In the
value will be realized only when the       GGO-96-74, Mar. 11, 1996 (18 pages).       current climate of government
improvements they initiated, tested,       Tax Administration: Making IRS'            downsizing, Congress is reconsidering
and validated are widely adopted.          Telephone Systems Easier to Use            MEP funding. One issue Congress is
                                           Should Help Taxpayers.                     evaluating is whether MEP services



GAO/OIMC-97 -IA Subject Index              Page 32
have helped businesses improve their      GGD-96-77, Apr. 22, 1996 (26 pages).      GGD-96-86, Apr. 29, 1996 (43 pages).
performance. GAO did a national           Anti-Car Theft Act: Implementation        Concessions Contracting:
survey of manufacturers that had          Status of Certain Provisions of the       Governmentwide Rates of Return.
received MEP services in 1993. The        1992 Act.
survey results, described in a 1995                                                 Under concessions agreements with
report (GAO/GGD-95-216BR), indicate       The Anti-Car Theft Act of 1992 was        federal agencies, private firms and
that 73 percent of respondents viewed     intended to reduce automobile theft       other entities, such as local govern-
MEP assistance as having a positive       by making it harder to sell stolen cars   ments, supply many of the services
effect on their overall business          and parts. This report provides           and accommodations available to the
performance. In addition, most            information on the following parts of     public on federal property. Conces-
respondents found that MEP assis-         the act: (1) the national information     sions services include food opera-
tance had had a positive effect on        system on motor vehicle tities, (2) the   tions, vending machines, retail shops,
their use of technology in the work-      marking of m~or component parts of        pay telephones, barber and beauty
place, the quality of their products,     passenger motor vehicles with an          shops, lodgings, marinas, and camp-
and customer satisfaction. This report    identification number, and (3) the        grounds. This report discusses (1) the
further analyzes GAO's national           national information system on stolen     extent of concessions operations in
survey results. GAO (1) identifies        passenger motor vehicles and parts.       the federal government; (2) the rate of
factors that may have contributed to      GAO discusses the status of imple-        return to the federal government from
the positive impact on overall busi-      mentation and issues that may impede      these operations and the factors
ness performance reported by the          the implementation or influence tile      affecting the rate of return; (3) how
m~ority of respondents; (2) deter-        effectiveness of these provisions.        the rate of return from federal conces-
mines whether MEP assistance met                                                    sions compared with rates earned by
companies' expectations for specific      GGD-96-78, Mar. 29, 1996 (53 pages).      other governments; and (4) the extent
performance indicators, such as           Federal Firearms Licensees: Various       of agencies' income-generating
manufacturing time frames and labor       Factors Have Contributed to the           operations that were not concessions
productivity; and (3) determines          Decline in the Number of Dealers.         and whether they offered opportuni-
whether companies thought that MEP                                                  ties for the agencies to handle them as
had actually demonstrated attributes      The Bureau of Alcohol, Tobacco and        concessions. GAO provides detailed
that they valued most, such as MEP        Firearms (ATF) issues various federal     information collected from 75 federal
staff expertise, timely assistance, and   firearms licenses, including those for    agencies, including one Defense
reasonably priced fees.                   manufacturers and importers of            Department component-the Depart-
                                          firearms. This report focuses on          ment of the Army Corps of Engineers.
GGD-96-76, Apr. 3, 1996 (71 pages).       federal firearms dealer licenses,
Workers' Compensation: Selected           which are granted to dealers and          GGD-96-89, Apr. 26, 1996 ( 14 pages).
Comparisons of Federal and State          pawnbrokers who sell firearms at          Tax Administration: Alternative
Laws.                                     wholesale or retail and gunsmiths         Strategies to Obtain Compliance Data.
                                          who repair firearms. Federal flrearn1S
Concerns have been raised that            dealer licenses account for about 90      In October 1995, the Internal Revenue
workers' compensation benefits            percent of all federal firearms li-       Service (IRS) decided to postpone
authorized under the Federal Employ-      censes. Since 1993, the number of         indefinitely the 1994 Taxpayer Com-
ees' Compensation Act may provide         federally licensed firearms dealers has   pliance Measurement Program
federal workers having job-related        declined significantly. Some groups       because of budget concerns. In
injuries with more generous benefits      have raised concerns about the effects    addition, Congress, taxpayer groups,
than other federal or state workers'      of the decline and the factors contrib-   paid preparers, and others exerted
compensation programs. This report        uting to it, including the role of ATF.   considerable pressure to cancel the
compares (1) monetary benefits            This report discusses (1) the extent      program because of its cost to and
authorized by the act with those          and the nature of recent declines in      burden on taxpayers. For more than
authorized by other workers' compen-      the number of firearms dealers; (2)       30 years, this program has been IRS'
sation laws and (2) other significant     factors that have affected the recent     primary means for gathering compre-
benefit provisions of federal and state   declines, including whether ATF had a     hensive and reliable taxpayer compli-
workers' compensation laws, such as       policy to reduce the number of            ance data. IRS has used the data to
those involving waiting periods,          dealers; and (3) the views of pertinent   identify areas in which tax law needs
physician choice, and coverage of         organizations on the advantages and       to be changed to improve voluntary
occupational diseases.                    the disadvantages of reducing the         compliance and to estimate the tax
                                          number of dealers.                        gap and its components. This report



                                          Page 33                                            GAO/OIMC-97-lA Subject Index
deternlines the effects on IRS' compli-    been completed. GAO also detemlined        Money lawldering is a global problem
ance progranls of postponing the 1994      that 66 action items had not been          that needs to be fought collectively by
Taxpayer Compliance Measurement            completed but that all but one of them     the international community. This
Program and identifies potential           had been partially inlplemented or         report provides a framework for
short- and long-tenn alternatives to       some steps had been taken to begin         understanding U.S. efforts oversees to
the planned Taxpayer Compliance            inlplementation. GAO could not make        combat international money launder-
Measurement Program for collecting         detemlinations for 20 of the action        ing. GAO describes (I) the approaches
these data.                                items because of a lack of infonna-        used by the United States and Euro-
                                           tion.                                      pean countries to combat money
GGD-96-91 , Apr. 26, 1996 (34 pages).                                                 laundering through regulation of
Tax Administration: Audit Trends and       GGD-96-95, Mar. 29, 1996 (5 pages).        fmancial institutions, (2) U.S. bank
Results for Individual Taxpayers.          District's Workforce: Annual Report        regulators' oversight. of money-
                                           Required by the District of Colwnbia       laundering controls at overseas
Compared to the 19605 and 19705, the       Retirem ent Refonn Act.                    branches of U.S. banks, (3) U.S. law
audit rate-the annual percentage of                                                   enforcement agencies' efforts to
individual tax returns that the Internal   The federal government makes annual        coordinate their overseas anti-money-
Revenue Service (IRS) has audited of       payments to the District of Columbia       laundering activities among them-
the total nwnber of tax returns filed-     retirement fund for police officers and    selves and with law enforcement
has dropped, falling below one             frreflghters. To encourage the District    agencies in these European countries,
percent in fiscal year 1993. Although      government to control disability           and (4) U.s. participation in interna-
IRS believes that its audits promote       retirement costs, these payments           tional agreements to combat money
voluntary taxpayer compliance, no          must be reduced when disability            laundering abroad.
one knows their actual inlpact,            retirement rates exceed a certain
particularly in light of a decreasing      limit. GAO concludes that no reduc-        GGD-96-106, July 17, 1996 (40
audit rate. Data are available, how-       tion is required in the fIScal year 1997   pages). Statistical Agencies: Statutory
ever, on trends in audit rates across      payment to the fund.                       Requirements Affecting Government
the country and on the results of these                                               Policies and Programs.
audits, such as the type of tax returns    GGD-96-101, May I, 1996 (96 pages).
being audited and the productivity of      Health Care Fraud: Wonnation-              GAO was asked to provide a list of
the audits, measured by additional         Sharing Proposals to Improve En-           legislatively mandated reports that
taxes recommended per return and           forcement Efforts.                         statistical agencies are to produce for
per direct audit hour. This report                                                    Congress on a regular basis and the
discusses (I) the trend in IRS' audit      Estimates of health care fraud range       statutory authority for the reports.
rates for individual returns and (2) the   from between 3 and 10 percent of all       The infomlation was requested to
overall results of IRS' most recent        health care expenditmes-as much as         assist congressional consideration of
audits of individual returns.              $100 billion based on estinlated 1995      proposals to consolidate statistical
                                           expenditures. In late 1993, the Attor-     agencies. This report provides a
GGD-96-94, June 12, 1996 (83 pages).       ney General designated health care         listing of authorizing statutes estab-
Management Refoml: Completion              fraud as a enforcement priority            lishing the agencies and confidential-
Status of Agency Actions Under the         second only to violent crime initia-       ity or disclosure provisions for the II
National Perfornlance Review.              tives. This report discusses (1) the       principal statistical agencies, a listing
                                           extent of federal and state inlmunity      of these agencies' mandated reporting
The National Perfomlance Review            laws protecting persons who report         requirements to Congress, and a
(NPR)-the administration's central         infornlation on health care fraud and      listing of the uses of the agencies'
management refonn effort-issued a          (2) the advantages and disadvantages       statistical products in the adnlinistra-
report in 1993 containing 384 recom-       of establislling a centralized health      tion of federal programs.
mendations intended to make the            care fraud database to strengthen
government "work better and cost           infonnation-sharing and support            GGD-96-107, July 1, 1996 (16 pages).
less." NPR later identified 1,203 action   enforcement efforts.                       Federal Statistics: Principal Statistical
items needed to inlplement these                                                      Agencies' Missions and Funding.
recommendations. In a 1995 report,         GGD-96-105 , May 24, 1996 (65
NPR said that nearly one-third, or 380,    pages). Money Laundering: A Frame-         Many federal agencies collect and
of the action items had been com-          work for Understanding U.S. Efforts        disseminate statistical infonnation. Of
pleted. GAO verified that 294, or 77       Overseas.                                  the federal agencies that spend at
percent, of the 380 action items had                                                  least $500,000 per year on statistical



GAO/OIMC-97-JA Subject Index               Page 34
activities, 11 collect, analyze, and      behaviors. The agency wants to boost      upwards of $3 million while the
produce statistics as their primary       total compliance to 90 percent by 2001      ponsor has received S18 million so
mission. This report identifies (1) the   and believes that its new compliance      far. Although the Citizens' Commemo-
missions of the principal federal         research approach will help meet this     rative Coin Advisory Committee has
statistical agencies and (2) these        goal. Taxpayer compliance in paying       made several recommendations to
agencies' funding and sources of          taxes owed has remained steady            Congress to reform the commemora-
funding for fIScal years 1994 and 1995.   during the past 20 years at about 87      tive coin program, these proposals
                                          percent, and ms estimates tax losses      have yet to be adopted. In particular,
GGD-96-108, May 9, 1996 (7 pages).        from noncompliance at more than           the Committee recommended that
Concessions Contracting: DOD              $100 billion. This report (1) reviews     Congress authorize circulating
Military Exchange Services' Rates of      the lessons ms has learned from past      commemorative coins, which are
Return.                                   compliance efforts in identifying         coins sold at face value with distinc-
                                          factors most critical to the success of   tive designs that circulate and are
This report provides information on       its new compliance research approach      used by the public for legal tender, as
concessions contracting in the            and (2) analyzes the status of the new    well as collected. GAO estimates that
Defense Department's (DOD) three          approach and its ability to incorporate   this proposal would provide about
ntilitary exchange services. Conces-      these factors.                            $225 million annually in seigniorage-
sions generally are businesses that                                                 the difference between the face value
use government property to deliver        GGD-96-113, Aug. 7, 1996 (87 pages).      of the coins and their cost of produc-
services to the public or specific        U.S. Mint: Commemorative Coins            tion-and save about $16 million in
individuals and share the profits with    Could Be More Profitable.                 annual interest on the national debt.
the government. The military ex-
changes have a dual mission: they         From 1982 to 1995, Congress autho-        GGD-96-114, June 17, 1996 (25
provide patrons with articles and         rized 22 commemorative coin pro-          pages). The Federal Judiciary:
services necessary for their health,      gfanIS and directed that part of the      Reviews of Court Operations Should
comfort, and convenience and are a        proceeds from four prOgfanlS be used      Adhere to Oversight Standards.
source of funding for DOD morale,         to reduce the national debt. For 19
welfare, and recreation programs.         commemorative coin programs               As it seeks to reduce federal expendi-
GAO discusses (1) the extent of           authorized since 1982-including all       tures and balance the budget, Con-
centrally managed concessions             12 progranls since 1992-Congress          gress expects all federal agencies to
operations in DOD's military ex-          directed that coin prices include         cut operating costs wherever possible.
change services, (2) the rate of return   surcharges to be paid to sponsoring       The effort to keep costs down has
from centrally managed concessions        groups. For the 22 programs, the          focused attention on whether the
operations and factors that affected      government earned S179 million,           federal judiciary is operating as
the rate of return, and (3) how the       while the sponsors earned $310            efficiently and effectively as possible.
exchange services' rates of return        million on sales revenue of more than     This report reviews the internal
compared to other agencies or             $1.6 billion. In recent years, however,   oversight of administrative operations
governments' rates of return from         the Mint's commemorative coin             within the federal judiciary, including
concessions.                              program has been plagued by prob-         those of local courts. Specifically,
                                          lems: The number of commemorative         GAO examines how the Administra-
GGD-96-109, June 5, 1996 (66 pages).      coins has proliferated and may have       tive Office of the U.S. Courts assessed
Tax Research: ms Has Made Progress        saturated the market, coin prices have    the efficiency of local court opera-
but Major Challenges Remain.              become higher than customers want         tions and promoted the use of effi-
                                          to pay, and some coin themes have         cient administrative practices within
The Internal Revenue Service (mS) is      proven unpopular. In 1994, the Mint       the judiciary.
changing its tax compliance philoso-      lost more than $4 million on one
phy. Although it will continue to use     commemorative coin program, while         GGD-96-118, June 1, 1996 (56 pages).
audits to catch tax cheats, ms is         the sponsor received more than $9         Executive Guide: Effectively Imple-
exploring methods other than enforce-     million. In 1995, the Mint had three      menting the Government Performance
ment to induce compliance, such as        commemorative coin programs, all of       and Results Act.
assistance and education. This new        which lost money for the Mint but
approach involves researching ways        generated millions of dollars for the     A consensus has emerged in recent
to improve compliance for specific        sponsors. In the case of the Mint's       years that the federal government
market segments-groups of taxpay-         two-year program commemorating the        needs to be nm in a more businesslike
ers who share characteristics or          1996 Olympics, the Mint has lost          manner. As companies are account-



                                          Page 35                                            GAO/OlMC-97-lA Subject Index
able to their stockholders, the federal    uses of addresses, (2) auditing the       of Tax Year 1994 Credit Recipients.
government is accountable tD taxpay-       performance of software that licens-      Total Earned Income Credit (EIC)
ers-and taxpayers are demanding as         ees use to match their mailing lists      program costs have risen dramatically
never before that the dollars they         with National Change of Address           in recent years as Congress has
invest in their government be man-         program rues, (3) reviewing program       extended ErC coverage and increased
aged and spent responsibly. The            advertisements that licensees propose     credit rates. From tax year 1990 to tax
Government Performance and Results         to use, and (4) investigating com-        year 1994, ErC program costs (in 1994
Act of 1993 requires federal agencies      plaints about the program. In GAO's       dollars) increased by about 150
to set goals and measure perfor-           view, use of program data by licens-      percent. During that same period, the
mance. To help Congress and federal        ees to create a "new-movers list"         number of ErC recipients increased by
managers implement the legislation,        would be inconsistent with the            about 50 percent. Much of the recent
this guide identifies key steps that       limitations imposed by the Privacy        growth in the number of taxpayers
agencies need to take along with a         Act. The Postal Service did not           claiming the ErC can be attributed to
series of "best practices' that can help   explain in the acknowledgment             the extension of the credit to childless
make implementation a success. GAO         form-to be signed by customers of         adults beginning in tax year 1994.
learned of these practices from            licensees-that program data are not       About 15 million families with chil-
organizations that have successfully       to be used to create or maintain such     dren received $20.5 billion of ErC in
carried out initiatives similar to those   lists.                                    tax year 1994; another four million
required by the acL Several federal                                                  childless adults received an additional
agencies have already put these            GGD-96-120, May 13, 1996 (106             $0.7 billion. The refundable portion of
practices to use, and their efforts are    pages). Housing EnterPrises: Poten-       the ErC for tax year 1994 was $16.7
described in case illustrations in-        tiallmpacts of Severing Government        billion, or 79 percent of the total ErC.
cluded in the guide, which is a com-       Spons<Jrship.
panion to an earlier GAO document                                                    GGD-96-126, June 25, 1996 (35
entitled Executive Guide: Inlproving       The Federal National Mortgage             pages). U.S. Postal Service: Stronger
Mission Performance Through Strate-        Association (Fannie Mae) and the          Mail Acceptance Controls Could Help
gic Information Management and             Federal Home Loan Mortgage CorP~          Prevent Revenue Losses.
Technology (GAO/AlMD-94-115). That         ration (Freddie Mac) are government-
publication outlined information           spons<Jred enterPrises with $1.4          The Postal Service derived almost half
management approaches that could           trillion in combined obligations as of    ($23 billion) of its total mail revenue
help federal agencies inlprove their       the end of 1995. In response to           from bulk business mail in fIScal year
overall performance.                       growing concern over the potential        1994. Mailers compute the postage
                                           risk that these obligations pose to       owed on each bulk business mailing.
GGD-96-U9, Aug. 13, 1996 (30               taxpayers and questions about their       To guard agairISt accepting improperly
pages). U.S. Postal Service: Improved      continued need for government-            prepared mailings, Postal Service
Oversight Needed to Protect Privacy        sponsored status, GAO studied the         clerks are supposed to verify the
of Address Changes.                        effects of repealing the charters of      accuracy of bulk business mailings.
                                           Fannie Mae and Freddie Mac, elimi-        Because of weak controls for accept-
Under its National Change of Address       nating any federal sponsorship, and       ing bulk business mail, however, the
program, the Postal Service collects       allowing them to operate as fully         Postal Service cannot be sure that
and widely disseminates change-<>f-        private cOrPorations. This report         significant amounts of postal revenue
address information reported by            assesses the effects of privatization     due are received when mailers claim
postal customers. To do this, the          on (1) the enteeprises; (2) residential   preS<lrtlbarcode discounts. The Postal
Postal Service uses 24 licensees-          mortgage markets in general; and (3)      Service took steps in 1989 and 1990 to
primarily mail-advertising and credit      housing fmance, homeownership, and        manage its bulk mail acceptance
information fmns--to pro,ide the           housing affordability for low- and        system more effectively. However, the
address-correction service. The Postal     moderate-income families and resi-        system deteriorated after a 1992
Service's oversight of the program has     dents of underserved areas. GAO also      reorganization. With an estimated $8
fallen short in the timely prevention      identifies and discusses other policy     billion in discounts allowed in fIScal
and detection of possible breaches of      options that Congress may want to         year 1994, and larger amounts ex-
the licensing agreement and potential      consider to limit the enterPrises'        pected as the Postal Service reclassi-
violations of federal privacy law. GAO     potential risk to taxpayers or increase   fies its postage rates and moves closer
identified weaknesses in Postal            their social benefits.                    to full automation in 1997, sustained
Service oversight relating to (I)          GGD-96-122BR, June 13, 1996 (44           top-level management attention is
"seeding" rues to detect unauthorized      pages). Earned Income Credit Profile      needed to establish and maintain



GAO/OIMC-97-lASubject Index                Page 36
adequate controls over bulk business      Require Systemwide Attention.             Others have raised concerns about
mail acceptance. Recently, the Postal                                               how increased private delivery might
Service launched several initiatives to   The mission, the structure, and           affect the Postal Service's ability to
improve the bulk business mail            especially the fmances of the Federal     sustain mail services traditionally
acceptance system. Although it is too     Reserve System, the nation's central      provided by the government, espe-
soon to know whether these initia-        bank, make it unique among govern-        cially since the Postal Service now
tives will correct the Postal Service's   ment entities. Unlike federal agencies    receives virtually no federal money.
internal control problems, GAO            funded through congressional appro-       This volume: (1) detennines the
believes that if they are implemented     priations, the Fed is self-funded,        historical and current basis for
as planned and monitored appropri-        deducting its expenses from its           restricting private delivery of letters,
ately, the initiatives can improve bulk   revenue and transferring the remain-      including the Postal Service's efforts
mail acceptance operations.               der to the U.S. Treasury. Although the    to enforce those restrictions; (2)
                                          Fed's primary mission is to support a     documents changes in private sector
GGD-96-127, Aug. 15, 1996 (58             stable economy, not to maximize the       letter delivety capacity since 1970; (3)
pages). Tax Policy: Analysis of           amount transferred to the Treasury,       analyzes the possible financial effects
Certain Potential Effects of Extending    deductions from Fed revenues do           on the Postal Service's revenues,
Federal Income Taxation [0 Puerto         represent a cost to taxpayers. Because    costs, and postal rates if restrictions
Rico.                                     of continuing federal budget con-         on private letter delivery were to be
                                          straints, MembersofCon~ess                changed; and (4) provides information
This report discusses some potential      requested GAO to analyze the Fed's        on how recently reformed postal
consequences of extending the federal     fmances. This report ( I) examines        administrations abroad provide
income tax to residents of Puerto         trends in the cost of Fed operations      universal service and restrict private
Rico. GAO provides estimates of (I)       from 1988 to 1994 and its controls        letter delivery. The second volume
the amount of federal income tax that     over spending and operations, (2)         (GAO/GGD-96-129B) presents a
Puerto Ricans would pay if they were      identifies ways to increase the Fed's     detailed analysis of the restrictions in
treated in the same manner as resi-       efficiency without harming its effec-     federal, civil, and criminal law on
dents of the 50 states, the amount of     tiveness, (3) discusses developments      private letter delivery.
the earned income tax credits Puerto      that could significantly affect the
Ricans would receive, the percentage      Fed's mission and finances, and (4)       GGD·96·129B, Sept 12, 1996 (113
of taxpayers who would have positive      assesses the Fed's strategic manage-      pages). Postal Service Reform: Issues
tax liabilities, and the percentage       ment processes and identifies steps       Relevant to Changing Restrictions on
would earn the earned income tax          that it could take to meet future         Private Letter Delivery.
credit, (2) the extent to which the       challenges and ensure the efficiency
Puerto Rican government would have        and the effectiveness of its opera-       For more than 200 years, the U.S.
to reduce its own income tax in order     tions.                                    Postal Service and its predecessors
to keep the combined income tax                                                     have er\ioyed a statutorily imposed
(federal and Commonwealth) for            GGD-96-129A, Sept 12, 1996 (39            monopoly restricting the private
individuals the same; (3) how the         pages). Postal Service Reform: Issues     delivery of letters. The monopoly was
amount of income taxes paid by the        Relevant to Changing Restrictions on      intended to enable the postal system
average ta.J\.-payer in Puerto Rico       Private Le tter Delivery.                 to fulf1l1 its mandate of providing
compares with the amount of com-                                                    uniform rates for at least one class of
bined federal, state, and local income    For more than 200 years, the U.S.         letter mail and delivery of letter mail
taxes paid by residents of the 50         Postal Service and its predecessors       to patrons in all areas, however
states and the District of Columbia;      have er\ioyed a statutorily imposed       remote. Some large mailers and
and (4) the amount of revenue that the    monopoly restricting the private          private carriers want Con~ess and
U.S. Treasury could obtain by repeal-     delivery of letters. The monopoly was     the Postal Service to allow ~eater
ing the possessions ta." credit, which    intended to enable the postal system      competition for letter mail delivery.
effectively exempts from federal          to fulfill its mandate of providing       Others have raised concerns about
taxation a portion of the income that     unifonn rates for at least one class of   how increased private delivery might
subsidiaries of U.S. corporations earn    letter mail and delivery of letter mail   affect the Postal Service's ability to
in Puerto Rico.                           to patrons in all areas, however          sustain mail services traditionally
                                          remote. Some large mailers and            provided by the government, espe·
GGD-96-128, June 17, 1996 (154            private carriers want Con~ess and         cially since the Postal Service now
pages). Federal Reserve System:           the Postal Service to allow ~eater        receives virtually no federal money.
Current and Future Challenges             competition for letter mail delivery.     The first volume of this report (GAOl




                                          Page 37                                            GAO/OIMC·97·lA Subject Index
GGO-96-129A): (1) determines the           age for fiscal year 1995. Twenty          long-term FECA rolls, (2) views of
historical and current basis for           agencies did not respond to GAO's         proponents and opponents of chang-
restricting private delivery of letters,   request for information.                  ing FECA benefits for older beneficia-
including the Postal Service's efforts                                               ries, and (3) questions and issues that
to enforce those restrictions; (2)         GGD-96-137, June 21, 1996 (23             Congress might consider if crafting
documents changes in private sector        pages). Sex Offender Treatment:           benefit changes.
letter delivery capacity since 1970; (3)   Research Results Inconclusive About
analyzes the possible fmancial effects     What Works to Reduce Recidivism.          GGO-96-142, Aug. 1, 1996 (28 pages).
on the Postal Service's revenues,                                                    Statistical Agencies: A Comparison of
costs, and postal rates if restrictions    GAO's examination of the research         the U.S. and Canadian Statistical
on private letter delivery were to be      literature found 22 reviews of the        Systems.
changed; and (4) provides information      effectiveness of treatment programs
on how recently reformed postal            for sex offenders. The reviews dis-       Proposals to consolidate the agencies
administrations abroad provide             cussed both treatment effectiveness       comprising the federal statistical
universal service and restrict private     and methodological adequacy. There        system have sparked congressional
letter delivery. The second volume         was no consensus among the reviews        interest in the centralized Canadian
presents a detailed analysis of the        as to what treatment works to reduce      statistical system. This report pro-
restrictions in federal, civil, and        the recidivism of sex offenders. The      vides information on the Canadian
criminal law on private letter delivery.   cognitive-behavioral approach was         statistical system and Statistics
                                           most often cited as promising, par-       Canada, that nation's statistical
GGD-96-135, July 29, 1996 (11              ticularly with child molesters and        agency, and compares it with the U.S.
pages). Fire-Safe Accommodations:          exhibitionists. Because of method-        statistical system. GAO discusses
Information on Federal Agencies'           ologicallimitations in the studies,       differences between the two systems
Compliance With P.L. 101-391 Lodging       however, a quantitative estimate of       in their organizational and budget
Requirements.                              the impact of cognitive-behavioral        structures; their legal frameworks that
                                           treatment on recidivism was not           govern privacy concerns, data confi-
Because more than 400 Americans            attempted in these reviews. Psycho-       dentiality, and the ability to share
had lost their lives in multistory hotel   therapy was generally viewed as           data; and the positions and the
fires during the preceding five years,     ineffective except, in some casesI        authority of the Chief Statisticians of
in 1990 Congress passed the Hotel and      when administered in combination          the United States and Canada
Motel Fire Safety Act (p.L. 101-391),      with another treatment approach.
which seeks to save lives and protect      Nearly all the reviews reported that      GGO-96-144, Aug. 5, 1996 (26 pages).
property by promoting fire safety in       definitive conclusions could not be       Farm Credit System: Analysis and
hotels and motels. The legislation         drawn because methodological              Comment on Possible New lnsurance
requires the Federal Emergency             wealcnesses in the research made          Corporation Powers.
Management Agency to compile a             inferences about what works uncer-
national master list of public accom-      tain. There was no consensus that         The Farm Credit System is a govern-
modations that meet fire safety            more and better research was needed       menTrSpOnsored enterprise created to
guidelines. Beginning in fiscal year       to demonstrate the effectiveness of       guarantee a stable supply of credit to
1995, federal agencies must ensure         sex offender treatment.                   American agriculture. The Farm
that their civilian employees on                                                     Credit System lnsurance Corporation
official travel spend a certain percent-   GGD-96-138BR, Aug. 14, 1996 (65           maintains an insurance fund, which
age of nights in these "approved"          pages). Federal Employees' Compen-        ensures the prompt payment of most
accommodations. Seventy-six of 96          sation Act: lssues Associated With        of the debt obligations of the System's
federal agencies responded to GAO's        Changing Benefits for Older Beneficia-    eight banks. The Farm Credit Admin-
request for information on their           ries.                                     istration recommended in 1991 that
compliance with that requirement.                                                    Congress increase the Corporation's
Fifty-six agencies reported meeting or     The Federal Employees' Compensa-          powers in three areas. Specifically,
exceeding the 66-percent requirement.      tion Act (FECA) now allows benefi-        the Corporation would be permitted to
Six agencies reported that they did        ciaries who are at or beyond retire-      (1) assess the capital of the 228
not meet that threshold. Fourteen          ment age to receive worker's compen-      System associations that have owner-
agencies reported that, for various        sation benefits. Possible changes to      ship interests in the banks that fund
reasons, they did not gather the data      the legislation would reduce these        them, (2) charge supplemental
needed to determine and report their       benefits. This briefing report provides   insurance premiums to the banks, and
approved accommodations percent-           (1) a profLie of beneficiaries on the     (3) base the premiums it charges



GAO/OIMC-97-1A Subject Index               Page 38
banks on the relative riskiness of each   report its fIndings to Congress. This      rants, make arrests, and carry fire-
bank. This report describes each of       report determines (1) which states         anns; (3) the number of law enforce-
these possible powers, the Fann           and how many local government units        ment investigative personnel in these
Credit Administration's reasons for       applied for and received title V           agencies as of September 30, 1995,
requesting them in 1991, and the          incentive grants; (2) how much fIScal      and the number of these employees
major advantages and disadvantages        years 1994 and 1995 grant money had        authorized to execute search war-
should Congress authorize them. GAO       been awarded and how much had              rants, make arrests, and carry fire-
also reviews unimplemented recom-         been spent as of the end of 1995; (3)      anns; and (4) the number of law
mendations regarding the Insurance        what the SOurces and the amounts of        enforcement investigative personnel
Fund that GAO made in a 1994 report       matching funds committed to local          at these agencies at the end of flscal
to see whether they are still valid       delinquency prevention projects were;      years 1987, 1991, and 1995.
                                          (4) what title V funds were used for;
GGD-96-145, Aug. 13, 1996 (130            (5) whether eligibility requirements       GGD-96-156, July 26, 1996 (21
pages). Fair Lending: Federal Over-       have affected title V participation; and   pages). Preventing Child Sexual
sight and Enforcement Improved but        (6) what funding, other than title V,      Abuse: Research Inconclusive About
Some Challenges Remain.                   was provided to support local delin-       Effectiveness of Child Education
                                          quency prevention activities.              Programs.
Discrimination in the credit markets,
particularly in the market for home       GGD-96-150, Sept 6, 1996 (24               A growing number of studies are
mortgages, has been a concern for         pages). Violent Crime: Federal Law         being done on the effectiveness of
some time. Recently, however, the         Enforcement Assistance in Fighting         child sexual abuse education pro-
media have reported instances when        Los Angeles Gang Violence.                 grams. The most optimistic reviews
minorities were more likely to be                                                    have concluded that education
denied credit for home mortgages          This report examines how the FBI and       programs showed some promise for
than were white applicants with           other federal investigative agencies       informing children about sexual
similar incomes. Although no single       work with local law enforcement to         abuse, as well as teaching them
report has offered conclusive evi-        target gangs in the Los Angeles area       personal safety skills to help them
dence that discrimination is pervasive,   GAO describes (1) how and what             avoid being abused However, nearly
collectively they have heightened         federal law enforcement assistance         all these reviews reported that
concerns. Partly because of these         was provided to local law enforce-         deftnitive conclusions could not be
reports, Members of Congress and          ment in Los Angeles to fIght gang          drawn because no study had yet
others have begun to question the         violence, (2) how useful Los Angeles       developed measures of whether these
effectiveness of federal oversight and    area local law enforcement officials       programs succeeded in reducing the
enforcement in the fair lending area      believed federal assistance was in         incidence of child sexual abuse. There
and the zeal with which the nation's      fIghting gang violence, and (3) what       was general agreement that more and
principal fair lending laws have been     results Los Angeles area local law         better research was needed to demon-
enforced. This report (1) reviews         enforcement officials believed were        strate the effectiveness of sexual
federal efforts to oversee and enforce    achieved from joint efforts to combat      abuse education programs. GAO
the fair lending laws and (2) discusses   gang violence.                             issued a related report in June 1996 on
the challenges federal regulators face                                               the effectiveness of treatment pro-
in their efforts to detect discrimina-    GGD-96-154, Sept 30,1996 (17               grams for sex offenders (GAO/GGD-
tion and ensure compliance.               pages). Federal Law Enforcement:           96-137).
                                          Investigative Authority and Personnel
GGD-96-147, Aug. 13, 1996 (45             at 13 Agencies.                            GGD-96-158, Aug. 16, 1996 (41
pages). Juvenile Justice: Status of                                                  pages). Private and Public Prisons:
Delinquency Prevention Program and        This report provides information on        Studies Comparing Operational Costs
Description of Local Projects.            federal law enforcement investigation      and/or Quality of Service.
                                          personnel. GAO focuses on agencies
Title V of the reauthorization of the     with the largest number of such            Pointing to the experiences of several
Juvenile Justice and Delinquency          employees. GAO reviews (1) the types       states, supporters of prison
Prevention Act of 1974 established an     of violations investigated by these        privatization contend that contractors
incentive grants progranl for local       agencies; (2) the authorities WIder        can run prisons at less cost than the
delinquency prevention. The reautho-      which these agencies' personnel            government can, without reducing the
rization also required GAO to study       investigate suspected federal criminal     quality of service. On the other hand,
the incentive grant program and           law violations, execute search war-        critics of privatization say that little



                                          Page 39                                             GAO/OIMC-97 -lA Subject Index
valid evidence exists to support the         had diminished significantly. The         transportation and medical care. The
argument that prison privatization is a      officials said that they had instituted   government used the cpr in fIScal
cost-effective alternative to publicly       processes to alert their offices of       year 1995 to adjust for inflation
run facilities. This report (1) identifies   systemic problem areas.                   billions of dollars worth of federal
studies, completed since 1991,                                                         spending and tax receipts-affecting
comparing the operational costs and          GGD-96-165 , Aug. 28, 1996 (18            program beneficiaries and taxpayers
the quality of service of private and        pages). Tax Administration: Tax           alike. Although it is often referred to
public correctional facilities; (2)          Compliance of Nonwage Earners.            as a cost-of-living index, the cpr is not
determines what can be concluded                                                       designed for this purpose. A compre-
about the operational costs and the          Nonwage income, which is derived          hensive cost-of-living index does not
quality of service of comparable             from such sources as pensions, self-      exist. In response to congressional
private and public prisons; (3) as-          employment, dividends, and capital        concerns that taxpayers could be
sesses whether the reported results          gains, has grown significantly since      negatively affected if the estimation
are generalizable to correctional            1970, when it accounted for just 16.7     problems of the cpr were not well
systems in other jurisdictions; and (4)      percent of total taxpayer income. For     understood, this report (1) discusses
identifies lessons learned that could        tax year 1992, non wage income has        whether a change made to the housing
help guide future comparative studies        risen to 23.4 percent of the $3,665       component in the early 1980s made
of private and public correctional           billion in total taxpayer income.         the CPI either more or less suitable
facilities . GAO's work is basically a       Pension income-at about $186              for use as a cost-of-living measure and
form of evaluation synthesis in which        billion-was by far the largest and        (2) identifies the advantages and the
it assesses existing studies, particu-       fastest growing source of nonwage         disadvantages of changing the current
larly with respect to the strength of        income. Internal Revenue Service data     measurement of medical care costs to
evidence supporting the reported             show that taxpayers earning most of       an approach that would more closely
findings.                                    their income from nonwage sources         match a cost-of-living measure.
                                             are more likely to have problems
GGD-96-163, Sept. 3, 1996 (115               paying their ta"es than are wage          GGD-96-171 , Aug. 19, 1996 (57
pages). Customs Service: Status of           earners and, as a result, owe more        pages). NASD Telephone Hotline:
the implementation of Blue Ribbon            delinquent taxes than do wage earn-       Enhancements Could Help Investors
Panel Recommendations.                       ers. IRS' inventory of tax debt for       Be Better Informed About Brokers'
                                             individual taxpayers at the end of 1993   Disciplinary Records.
Because of allegations of corruption,        totaled nearly $80 billion, of which
harassment, and retaliation; charges         $58.5 billion was owed by taxpayers       A GAO survey of 500 people who
of mismanagement; and "old-boy'              with primarily non wage income. ms        called the toll-free investor hotline set
network concerns in the U.S. Customs         data show that self-employment            up by the National Association of
Service's Southwest Region, the              income was the largest share of           Securities Dealers (NASD) found that
Commissioner of Customs appointed            nonwage income included in IRS'           most callers were generally satisfied
a "blue ribbon" panel to look into           inventory of tax debts at the end of      with the services provided and used
these matters. The panel issued a            fiscal year 1993. Options for improv-     the information to make investment
report in 1991. Customs accepted the         ing the timely payment of taxes of        decisions, such as whether to use
fmdings and recommendations and              nonwage income include withholding        particular stock brokers. However,
assembled a comprehensive imple-             income taxes on more sources of           many callers thought that the hotline
mentation plan. In 1995, Customs             nonwage income, increasing taxpayer       did not disclose several important
provided GAO with information on the         awareness of their tax payment            facts, such as whether their brokers
actions it had taken on each recom-          responsibilities, and modifying the       had been the subjects of settled cases,
mendation; Customs updated the               estimated tax payment system.             pending or settled arbitration, or
information in 1996. GAO supple-                                                       pending customer complaints. Hotline
mented that infOlmation through              GGD-96-166, Aug. 26, 1996 (88             officials said that they did not convey
interviews with Customs officials.           pages). Consumer Price Index: Cost-       this information because these cases
GAO found that most of the recom-            of-Living Concepts and the Housing        involved unproven allegations. Most
mendations were at least partially           and Medical Care Components.              state securities regulators, however,
implemented- The heads of the offices                                                  said that they already disclosed this
on which the panel focused-the               The Consumer Price Index (Cpr)            information to investors who request
Office of Investigations and the Office      measures the price of a fixed market      it and that it came from the same
of Internal Affairs-generally believed       basket of goods and services, orga-       source that the hotline used to answer
that the problems cited by the panel         nized into major components, such as      calls. NASD has begun to implement



GAOIOlMC-97-1A Subject Index                 Page 40
some of GAO's suggestions to im-           The Bureau of Alcohol, Tobacco and         of taxpayers affected by marriage
prove the information available on its     Firearms (ATF) issues various              penalties and bonuses.
hotline.                                   categories of federal firearms li-
                                           censes, including those for manufac-       GGD-96-176, Aug. 30, 1996 (21
GGD-96-172, Sept. 18, 1996 (17             turers, importers, and dealers of          pages). Tax Administration: IRS Is
pages). Earned Income Credit: IRS'         firearms. Firearms dealers licenses        Improving Its Controls for Ensuring
1995 Controls Stopped Some Noncom-         are granted to dealers and pawnbro-        That Ta.xpayers Are Treated Properly.
pliance, But Not Without Problems.         kers who sell guns at wholesale or
                                           retail and to gunsmiths who repair         Allegations of taxpayer abuse
The Internal Revenue Service (IRS)         firearms. This report, the last in a       prompted Congress to pass the
took several steps to prevent and          series of GAO reports on ATF, re-          Taxpayer Bill of Rights in 1988. Six
detect earned income credit noncom-        views ATF's compliance with legisla-       years later, GAO issued a report
pliance in 1995. IRS data suggest that     tive restrictions on maintaining           (GAO/GGD-9S-14) urging the Internal
those steps reduced noncompliance.         federal firearms licensee data Con-        Revenue Service (IRS) to strengthen
However, there were also some              cerns have been raised that ATF has        its controls for ensuring that taxpay-
problems. For example, IRS proce-          not been complying with the restric-       ers are treated properly. Although IRS
dures generated a workload that far        tions on centralizing and consolidat-      has acted on some of the recommen-
exceeded the agency's capabilities.        ing data from federal firearms lic-        dations GAO made in that report, GAO
Although 3.3 million paper returns         ensee records. GAO (1) identifies and      remains unable to determine the
were identified with missing or invalid    describes the ATF data systems that        adequacy of IRS' system of controls to
social security numbers, IRS had           contain retail firearms purchaser data     identify, address, and prevent in-
enough resources to follow up on only      and (2) determines whether ATF's           stances of abuse. GAO is encouraged
about one million. Also, IRS' proce-       Out-of-Business Records System and         by IRS' recent decision to develop a
dures for deciding which cases             Multiple Sales System comply with          taxpayer complaint tracking system
warranted follow-up did not ensure         the legislative data restrictions. GAO     that uses the definition of taxpayer
that the most productive cases would       also assesses ATF's overall legal          abuse found in GAO's 1994 report for
be selected. IRS was unable to follow      interpretation of the data restrictions.   defining elements of taxpayer com-
through on plans to check for dupli-                                                  plaints. In GAO's view, it is critical
cate use of social security numbers.       GGD-96-175, Sept. 3, 1996 (38              that IRS sustain this commitment. IRS
As a result, IRS delayed refunds on        pages). Tax Administration: Income         needs a more-effective complaints
about four million earned income           Tax Treatment of Married and Single        tracking system because.--even
credit returns that did not have a         Individuals.                               though data systems run by IRS, the
problem, mamJy to give itself more                                                    Justice Department, and others
time to detennine whether other            This report provides information on        contain information on the treatment
returns were ftled using the same          income tax provisions in the Internal      of taxpayers-the data relevant to
social security numbers. In the end,       Revenue Service (IRS) Code that            employee misconduct or taxpayer
IRS released almost all of those           potentially create "marriage penalties"    complaints are not readily distinguish-
refunds, after holding them for several    or "marriage bonuses' with respect to      able from other allegations that do not
weeks, without checking for duplicate      the tax liability of married couples. A    involve taxpayers. Moreover, the
social security numbers. IRS' efforts      marriage penalty results when two          systems do not have the same em-
and the publicity surrounding them         married persons have a greater tax         ployee identifiers or common data
may have had a significant deterrent       liability than two similar single          elements, and the data are not cap-
effect, at least in the short term: More   persons-that is, individuals with the      tured in a consistent manner that
than two million fewer claims for the      same total income. Conversely, a           allows for consolidation relative to
earned income credit were ftled in         marriage bonus results when a              the number or outcome of taxpayer
1995 than IRS had expected. However,       married couple owes less taxes than        complaints using the definition IRS is
IRS data were not sufficient to make       two similarly situated single persons.     adopting.
an overall assessment of the impact of     GAO (1) summarizes the current
IRS' initiatives on earned income          income tax provisions in the IRS Code      GGD-96-177, Sept. 25,1996 (54
credit noncompliance.                      whose applicability depends upon           pages). Futures Markets: Heightened
                                           whether a taxpayer is married or           Audit TraIl Standards Not Met But
GGD-96-174, Sept. 11, 1996 (76             single, (2) identified provisions likely   Progress Continues.
pages). Federal Firearms Licensee          to result in marriage penalties or
Data: ATF's Compliance with Statu-         bonuses, and (3) discusses the             [n 1989, the Justice Department, along
tory Restrictions.                         feasibility of quantifying the numbers     with the Commodity Future Trading



                                           Page 41                                             GAO/OIMC-97-1A Subject Index
Commission (CITC), conducted an           sexually victimized children and           investigations, and other activities
undercover investigation at the           tracking them into adulthood. These        unique to specific ports. This report
Chicago Board of Trade and the            studies also had shortcomings, which       identifies and describes the key
Chicago Mercantile Exchange. The          made it hard to reach any defmitive        elements, personnel and equipment
investigation revealed illegal trading    conclusions about the cycle of sexual      resources, budget and operational
practices designed to enrich panici-      abuse. Despite these limitations, the      costs, enhancements of Operation
pants. In a report that year to Con-      retrospective studies, prospective         Hard Line (Customs' current effort to
gress (GAO/GGD-89-120), GAO               studies, and research reviews suggest      address border violence and drug
concluded that most of the illegal        that childhood se,,-ual victimization is   smuggling), and measures of effective-
practices uncovered could have been       quite likely neither a necessary nor a     ness of Custom's national drug
detected with improved audit trails-      sufficient cause of adult sexual           interdiction program, as well as its
the physical records of the price and     offending. Further research would be       Special Agent-in-Charge offices and
time of each trade. Congress incorpo-     needed to determine which experi-          selected ports in the Miami and San
rated the then existing audit trail       ences magnify the likelihood that          Diego areas.
standards, as well as heightened          sexually victimized children will
standards, in the Futures Trading         become adult abusers and, alterna-         GGD/AIMD-96-50, Dec. 29, 1995 (42
Practices Act of 1992. The act re-        tively, what experiences help prevent      pages). Office of Management and
quired that CFTC report to Congress       victimized children from becoming          Budget: Changes Resulting From the
within two years on the progress that     adult abusers.                             OMB 2000 Reorganization.
U.S. futures exchanges had made in
meeting the audit trail standards and     GGD-96-187, Sept. 30, 1996 (23             This report describes the changes that
include recommendations on the            pages). Foreign Banks: implementa-         have resulted from OMB 2000--a
appropriateness of extending the          tion of the Foreign Bank Supervision       major reorganization and process
October 1995 deadline for meeting the     Enhancement Act of 1991.                   change at the Office of Management
standards or for modifying them. This                                                and Budget (OMB) that was an-
report discusses the status of ex-        This report discusses the implementa-      nounced in 1994 as part of the Na-
change compliance with the existing       tion of the Foreign Bank Supervision       tional Performance Review. The main
and heightened standards as well as       Enhancement Act of 1991, which             goal of OMB 2000 was to integrate
CITC actions to enforce the act's         gives the Federal Reserve greater          OMB;s budget analysis, management
audit trail provisions.                   supervisory and regulatory authority       review, and policy development roles
                                          over foreign banks operating in the        under a new structure to improve the
GGD-96-178, Sept. 13, 1996 (~             United States. GAO describes (1) the       decisionmaking process and oversight
pages). Cycle of Sexual Abuse:            Federal Reserve's process for approv-      of executive branch operations. GAO
Research Inconclusive About Whether       ing foreign bank applications for entry    describes (1) the changes in OMB's
Child Victims Become Adult Abusers.       and expansion into the United States       organizational structure, responsibili-
                                          and (2) the examination process,           ties, and staffmg as a result of OMB
Several studies have been done on the     including the coordination among U.S.      2000; (2) changes to OMB's three
cycle of sexual abuse-that is, the        regulators, and provides statistics on     statutory offices; (3) changes in the
likelihood that child victims of sexual   enforcement actions that have been         attention OMB gave to management
abuse will become adult abusers.          taken since passage of the act.            issues in the budget formulation
Most of the studies were retrospective                                               process before and after OMB 2000;
in design. The studies began with a       GGD-96-189BR, Sept. 26, 1996 (130          and (4) the way OMB planned to
sample of known sex offenders of          pages). Customs Service: Drug              evaluate 0 MB 2000.
children and sought to determine          Interdiction Efforts.
whether they were sexually abused                                                    Testimony
during childhood. The chief weakness      This is the last in a series of GAO
of these studies is that studying a       reports on the U.S. Customs Service.       T-AlMD/GGD-96-188, Sept. 10, 1996
known group of sexual offenders           As one of more than 50 federai             (13 pages). lRS Operations: Critical
cannot provide any direct information     agencies involved in the War on            Need to Continue improving Core
on the extent to which children who       Drugs, Customs is responsible for          Business Practices, by Gene L.
are sexually abused become adult          stopping the flow of illegal drugs         Dodaro, Assistant Comptroller
sexual abusers. The two studies GAO       across the U.S. border. In addition to     Generai, before the Senate Comrnjttee
reviewed that were prospective in         routine inspections to detect illegal      on Governmental Affairs.
design attempted to overcome this         drugs, Customs' drug interdiction
limitation by identifying samples of      program includes national initiatives,



GAO/Ol1ll.C-97-1A Subject Index           Page 42
The Internal Revenue Semce (IRS)           systemic oversight was limited. Some       T-GGD-96-33, Oct. 24, 1995 (4
has experienced major problems in          courthouses have ended up with more        pages). White House Travel Office
(1) fulfilling its business vision-        expensive materials or costly design       Review, by Nancy R. Kingsbury,
reducing the volume of paper returns,      configurations, while others had, or       Director of Planning and Reporting,
better serving customers, and improv-      are to have, more economical fea-          General Government Division, before
ing compliance; (2) overcoming             tures. These differences had a major       the House Committee on Government
management and technical weak-             impact on the cost for courthouse          Reform and Oversight.
nesses in its tax systems moderniza-       construction.
tion effort; and (3) strengthening the                                                The operations of the White House
reliability of its fmancial management     T-GGD-96-31, Oct. 12, 1995 (6              Travel Office attracted the attention
and systems used to account for            pages). Civil Semce Reform: Chang-         of Congress and the Media in May
hundreds of billions of dollars and to     ing Times Demand New Approaches,           1993, when White House officials
measure IRS' performance. n\is             by L. Nye Stevens, Director, Federal       dismissed the seven employees of the
report discusses pivotal actions that      Management and Workforce Issues,           Office amid charges of fmancial
IRS should take to fully implement         before the Civil Semce Subcommit-          mismanagement and possible criminal
earlier GAO recommendations and            tee, House Committee on Government         investigations. TItis testimony dis-
improve its management practices.          Reform and Oversight.                      cusses the scope of GAO's report on
                                                                                      the White House Travel Office (GAOl
T-GGD-96-19, Nov. 8, 1995 (20              Despite both the Civil Semce Reform        GGD-94-132, May 1994), the chal-
pages). Federal Courthouse Construc-       Act of 1978 and other measures taken       lenges GAO faced as it undertook this
tion: More Disciplined Approach            since then, the semce system is still      assignment, the results of GAO's
Would Reduce Costs and Provide for         viewed by many as burdensome to            work, and subsequent events and
Better Decisionmaking, by J. William       managers, unappealing to ambitious         observations.
Gadsby, Director, Government               recruits, overregulated, and inflexible.
Business Operations Issues, before         GAO's testimony makes three main           T-GGD-96-36, Oct. 25, 1995 (13
the Oversight of Government Manage-        points. First, ever since the creation     pages). CFTC/SEC Enforcement
ment and the District of Columbia          of the competitive semce in 1898,          Programs: Status and Potential Impact
Subcommittee, Senate Committee on          Congress has periodically updated it       of a Merger, by James L. Bothwell,
Governmental Affairs.                      in response to changing conditions.        Director, Financial Institutions and
                                           The goal of reform today should be a       Markets Issues, before the Capital
The General Semces Administration          system that not only fulfills current      Markets, Securities and GSEs Sub-
(GSA), in response to the growing          needs but is also flexible enough to       committee, House Committee on
space needs of the federal judiciary,      respond quickly to changing demands.       Banking and Financial Services.
has begun a major courthouse con-          Second, today's leading private-sector
struction initiative that could cost $10   employers-as well as some govern-          Legislation pending before Con-
billion during the next 10 to 15 years.    ment entities-are creating personnel       gress-H.R. 718, the Markets and
Concerns have been raised in Con-          system that diverge sharply from the       Trading Reorganization and Reform
gress about the huge sums of money         federal government's traditional           Act-would merge the Commodity
involved and that new courthouses          approach. The new model is more            Futures Trading Commission (CFTC)
may not be needed or are too expen-        de centralized, focused on mission         and tlle Securities and Exchange
sive. This testimony focuses on three      accomplishment, and designed more          Commission (SEC). GAO testified that
areas: (1) the approach for meeting        to establish guiding principles than to    merging CFTC and SEC could yield a
federal courthouse needs, (2) the          dictate rules and procedures. 11lird,      nun\ber of enforcement benefits, such
controls and oversight over court-         should Congress adopt this model and       as enllanced intermarket surveillance,
house construction design and costs,       create a more decentralized civil          availability of resources, and quality
and (3) the current efforts to improve     semce system under which federal           of staff and training. However,
this multibillion-dollar initiative. GAO   agencies have more flexibility to          regardless of whether the agencies are
found that GSA and the federal             manage tl\eir own workers, an effec-       merged or not, a need would still exist
judiciary had wide latitude in making      tive oversight and accountability          for attorneys and investigators with
choices that significantly affect costs.   mechanism will still be needed to          specialized skills and expertise in
These choices were made under              ensure that agencies adhere to civil       future and securities laws and mar-
circumstances in which budgets or          semce principles and meet estab-           kets. Moreover, effective enforcement
designs were often committed to            lished goals.                              of securities laws is only one factor
before requirements were established,                                                 that Congress should consider in
design guidance was flexible, and                                                     evaluating a merger.



                                           Page 43                                            GAO/OIMC-97 -lA Subject Index
T-GGD-96-37, Oct. 25, 1995 (19             This testimony discusses the composi-    tor, Financial Institutions and Markets
pages). Decennial Census: Fundamen-        tion and salary costs of federal         Issues, before the Water Resources
tal Design Decisions Merit Congres-        investigative authorities in federal     and Environment Subcommittee,
sional Attention, by L. Nye Stevens,       agencies. GAO provides preliminary       House Committee on Transportation
Director, Federal Management and           information it has obtained on federal   and Infrastructure.
Workforce Issues, before the National      agencies with persOlUlel employed in
Security, International Affairs, and       certain occupational series with         Proposed legislation (H.R. 1856)
Criminal Justice Subcommittee,             criminal law investigative responsi-     would create a new corporation to
House Committee on Government              bilities, the number of these person-    provide protection against cata-
Reform and Oversight.                      nel, and their salaries. GAO also        strophic losses from natural disasters
                                           provides information it has developed    for residential and commercial
The Census Bureau recently released        on jurisdictional overlap or duplica-    property owners. H.R. 1856 would
its design decisions for the 2000          tion of efforts among the agencies.      establish (1) natural disaster mitiga-
Decennial Census. GAO is encouraged                                                 tion programs to be run by the Federal
by several of the Bureau's decisions,      T-GGD-96-40, Mar. 19, 1996 (11           Emergency Management Administra-
such as the questionnaire redesign;        pages). Asset Forfeiture: Historical     tion (FEMA) and (2) a federally
address list development, with             Perspective on Asset Forfeiture          chartered entity-the Natural Disaster
support from the Postal Service; and       Issues, by Laurie Ekstrand, Associate    Insurance Corporation (NDIC)-to
multiple mail contacts, which GAO          Director, Administration of Justice      insure residential property owners
urged in past testimonies and reports.     Issues, before the Permanent Subcom-     against losses arising from earth-
GAO is also encouraged that the            mittee on Investigations, Senate         quakes, volcanos, and hurricanes and
Bureau has decided to sample house-        Committee on Governmental Affairs.       to provide reinsurance to protect
holds that failed to respond to census                                              insurers and large residential and
questionnaires rather than conducting      As asset forfeiture programs grew        commercial catastrophic losses
a l00-percent follow-up as it has in       during the 19805, GAO found that         arising from these same perils. GAO is
the past. The Bureau estimates that a      property was not being properly cared    concerned this unregulated, privately-
reengineered census will cost about        for after it was seized, resulting in    owned enterprise not subject to
$3.9 billion, which is $900 million less   revenue lost to the government when      oversight of its risk-taking or sol-
than would be spent if the census was      the items were sold. Much has been       vency, could expose the federal
carried out without design changes.        accomplished in this area since then,    government to significant financial
However, achieving the $900 million        but significant problems remain. In      loss.
savings will require aggressive            addition, the Justice and Treasury
management attention by the Bureau         Departments continue to run two          T-GGD-96-42 , ov. 29, 1995 (12
to ensure that the fundamental             similar seized asset management and      pages). Federal Employee Redress;
changes are well executed. Congress        disposal programs despite legislation    An Opportunity for Reform, by
now needs to weigh in on the Bureau's      requiring them to coordinate and         Timothy P. Bowling, Associate
decisions and provide the funding that     consolidate postseizure administra-      Director, Federal Management and
it believes are appropriate. GAO is        tion of certain properties. Further,     Workforce Issues, before the Civil
concerned that the opport:wtity for a      Treasury is establishing a separate      Service Subcommittee, House Com-
well-planned census will be lost if        asset-tracking system but plans to       ~ttee on Government Reform and
Congress and the Bureau cannot agree       continue sharing information with        Oversight.
on the fundamental design and budget       Justice. This testimony provides a
for the 2000 census in a timely            historical perspective on the programs   The redress system for federal
manner.                                    at Justice and Treasury, including why   workers seeks to protect these
                                           GAO flagged the programs as "high        employees against arbitrary agency
T-GGD-96-38, Nov. 15, 1995 (29             risk"; discusses problems that were      actions and prohibited personnel
pages). Federal Law Enforcement:           identified; and discusses efforts to     practices, such as discrimination or
Information on Certain Agencies'           solve the problems.                      retaliation for whistleblowing. But
Criminal Investigative Personnel and                                                how well is the redress system
Salary Costs, by Norman J. Rabkin,         T-GGD-96-41 , Dec. 5, 1995 (15           working and does it add to or detract
Director, Administration of Justice        pages). Natural Disaster Insurance:      from the fair and efficient operation of
Issues, before the Crime Subcommit-        Federal Government's Interests           the federal government? This testi-
tee, House Committee on the Judi-          Insufficiently Protected Given Its       mony makes three main points. First,
ciary.                                     Potential Financial Exposure, by         because of the system 's complexity
                                           Thomas J. McCool, Associate Direc-       and the variety of redress mechanisms



GAO/OIMC-97-1ASubject Index                Page 44
available, it is inefficient, expensive,   Other Countries' Postal Reform            in real wages earned by graduates of
and time-consuming. Second, because        Efforts, by Michael E. Motley, Associ-    an employment program or a reduc-
the system strongly protects indi-         ate Director, Government Business         tion in on-the-job injuries. GPRA is
vidual workers' redress rights, it is      Operations Issues, before the Post        being implemented through 71 pilot
vulnerable to employees who would          Office and Civil Service Subcommit-       projects during fIScal years 1994-96
take undue advantage of these protec-      tee, Senate Committee on Governmen-       before being introduced
tions. Its protracted processes and        tal Affairs, and Postal Service Sub-      govemmentwide in the fall of 1997. A
requirements divert managers from          committee, House Committee on             growing number of federal agencies
more productive activities and inhlbit     Government Reform and Oversight.          are discovering that a focus on
some of them from addressing legiti-                                                 outcomes can dramatically improve
mate performance and conduct               Various parties have called for           effectiveness. In the case of the
problems. Moreover, the demands of         fundamental changes in the laws and       marine safety program, which seeks
the system put pressure on employees       regulations governing the U.S. Postal     to prevent marine accidents, the Coast
and agencies alike to settle case&-        Service. In the past decade, several      Guard found that although it had
regardless of their merit&-to avoid        other countries have restructured         traditionally concentrated on inspec-
potential costs. Third, alternatives to    their postal administrations. Although    tions, two-thirds or more of all
the current system do eXISt and may        they are still owned by the govern-       reported casualties had been caused
be worth further study as Congress         ment, these entities are now subject      by human error. As a result, the Coast
considers modifying the federal            to less governmental control. GAO         Guard began to work with the towing
system. Leading private sector             reviewed postal reform efforts in eight   industry to strengthen the knowledge
employers told GAO that their manag-       other nations: Australia, Canada,         and the skills of towing industry
ers are held accountable for treating      France, Germany, the Netherlands,         employees. The result was a signifi-
people fairly but are also given the       New Zealand, Sweden, and the United       cant reduction in the towing industry
flexibility and discretion to make the     Kingdom. This testimony discusses         fatality rate. However, the changes
tough decision that are an inevitable      the experiences of other postal           anticipated by GPRA will not come
part of sound management. To the           administrations, focusing on three        quickly or easily, and strong and
extent that the federal redress system     areas-universal service, the mail         sustained congressional attention to
is titled toward employee protections      monopoly, and rate setting-that will      implementation of the new law is
at the expense of the effective man-       be among the most challenging for         critical to its success. Some agency
agement of the nation's business, it       Congress to address in any future         officials believe that evidence of real
deserves congressional attention.          reform of the Postal Service.             interest on the part of Congress in
                                                                                     using performance goals and informa-
T -GGD-96-49, Nov. 29, 1995 (3             T-GGD-96-79, Mar. 6, 1996 (12             tion would help build support for the
pages). Status of General Accounting       pages). Managing for Results: Achiev-     act within their agencies.
Office Reviews of the Library of           ing GPRA's Objectives Requires
Congress, by J. William Gadsby,            Strong Congressional Role, by Charles     T-GGD-96-82 , Feb. 27, 1996 (14
Director, Government Business              A Bowsher, Comptroller General of         pages). Counterfeit U.S. Currency
Operations Issues, before the Joint        the United States, before the Senate      Abroad: Observations on Counterfeit-
Committee on the Ubrary of Con-            Committee on Governmental Affairs         ing and U.s. Deterrence Efforts, by
gress.                                     and House Committee on Government         JayEtta Z. Hecker, Associate Director,
                                           Reform and OversighL                      Intemational Relations and Trade
This testimony discusses the status of                                               Issues, before the General Oversight
GAO's reviews at the Ubrary of             The Government Performance and            and Investigations Subcommittee,
Congress. It briefly summarizes GAO's      Results Act (GPRA) requires federal       House Committee on Banking and
August 1991 report (GAO/AFMD-91-           agencies to set strategic goals,          Financial Services.
13) on the Library's financial manage-     measure perfonnance, and report to
ment and its response to GAO's             the President and Congress on their       u.s. currency, reportedly the most
recommendations. The testimony also        accomplishments. The intent of the        widely held in the world, is suscep-
explains the scope and status of           legislation is to fundamentally shift     tible to counterfeiting. The Federal
GAO's current review, which broadly        the focus of federal management and       Reserve estimates that of the $380
assesses the Ubrary's management           accountability from a preoccupation       billion of U.S. currency in circulation,
and updates the 1991 financial audit.      with staffmg and activity levels to a     more than 60 percent may be held
                                           focus on program "outcomes"-the           outside the United States. The wide-
T-GGD-96-60, Jan. 25, 1996 (12             difference that federal programs can      spread use of U.S. currency abroad,
pages). U.S. Postal Service: A Look at     make in people's lives, such as a boost   together with the outdated security



                                            Page 45                                           GAO/OIMC-9 7-1A Subj ect Index
features of the currency, make it           reliable, and efficient mail services     enough staff to process returns and
particulal"iy vuinerable to interna-        and thus hinder it from becoming          issue refunds, SO most of the cuts
tional counterfeiters. Widespread           more competitive in the marketplace.      were absorbed by compliance pro-
cotmterfeiting of U.S. currency could       These are (I) improving labor-            grams. The 1996 filing season seems
undermine confidence in the dollar          management relations, (2) setting         to be going more smoothly than last
and, if done on a large enough scale,       competitive rates and providing           year's in some key respects. Most
could harm the U.S. economy. This           competitive service, and (3) control-     importantly, IRS is delaying fewer
report discusses (1) the nature of          ling operating costs.                     refunds this year while it validates
counterfeiting of U.S. currency                                                       social security numbers and earned
abroad, (2) the extent of that counter-     T-GGD-96-93, Mar. 22, 1996 (13            income credit claims. Also, taxpayers
feiting and of concerns about this          pages). Government Statistics:            appear to be having an easier time
issue, and (3) the status of U.S. efforts   Proposal to Form a Federal Statistical    reaching IRS by telephone this year,
to deter such counterfeiting.               Service, by L. Nye Stevens, Director,     and more taxpayers are using alterna-
                                            Federal Management and Workforce          tive filing methods. However, con-
T-GGD-96-84, Feb. 28, 1996 (9               Issues, before the Government             cerns still exist. For example, the
pages). Money Laundering: U.S.              Management, Information and Tech-         percentage of calls IRS answers
Efforts to Combat Money Laundering          nology Subcommittee, House Commit-        compared with the number it receives
Overseas, by JayEtta Z. Hecker,             tee on Government Reform and              is still low. Also, IRS closed many
Associate Director, International           Oversight.                                walk-in sites this year. IRS is request-
Relations and Trade Issues, before the                                                ing nearly $S billion for fiscal year
House Committee on Banking and              This testimony discusses the creation     1997. The largest increases are for
Financial Services.                         proposed by H.R. 2521 of a new            compliance initiatives and Tax
                                            Federal Statistical Service, which        Systems Modernization, two areas
Money laundering is a global problem        would be formed by consolidating the      that have been plagued by problems in
requiring collective international          Census Bureau, the Bureau of Eco-         the past. GAO doubts whether IRS can
efforts to combat it. This testimony        nomic Analysis, and the Bureau of         make effective use of Tax Systems
describes U.S. efforts to deter this        Labor Statistics. The new independent     Modernization development funds at
activity, including (1) regulation by       agency would be headed by an              this time.
the United States and seven European        administrator appointed by the
nations of fmancial institutions            President and confirmed by the            T-GGD-96-100, Apr. 3, 1996 (12
regarding money laundering; (2) U.S.        Senate. GAO applies five key prin-        pages). Tax System: Issues in Tax
bank regulators' oversight of money-        ciples that it has identified as useful   Compliance Burden, by Natwar M.
laundering controls at overseas             to consider when reorganizing or          Gandhi, Associate Director, Tax
branches of U.S. banks; (3) U.S. law        streamlining government agencies.         Policy and Administration Issues,
enforcement agencies' efforts to                                                      before the National Economic
coordinate their overseas anti-money-       T-GGD-96-99, Mar. 2S, 1996 (IS            Growth, Natural Resources, and
laundering activities with those of         pages). Tax Administration: IRS'          Regulatory Affairs Subcommittee,
host cOWltries' law enforcement             Fiscal Year 1996 and 1997 Budget          House Committee on Government
agencies; and (4) U.S. participation in     Issues and the 1996 Filing Season, by     Reform and Oversight.
international anti-money-laundering         Lynda D. Willis, Director, Tax Policy
arrangements.                               and Administration Issues, before the     Businesses and individuals spend time
                                            Oversight Subcommittee, House             and money-and sometimes experi-
T-GGD-96-90, Mar. 13, 1996 (9               Committee on Ways and Means.              ence frustration-trying to comply
pages). U.S. Postal Service: Chal-                                                    with federal, state, and local tax
lenges in Improving Performance and         The Internal Revenue Service's (IRS)      requirements. GAO refers to this
Meeting Competition, by Michael E.          1996 appropriation totaled $7.3           experience as the "taxpayer compli-
Motley, Associate Director, Govern-         billion-SS60 million less than what       ance burden.' GAO collected informa-
ment Business Operations Issues,            the President had requested and $160      tion on the federal tax compliance
before the Postal Service Subcommit-        million less than IRS' fIScal year 1995   burden from businesses, tax accoun-
tee, House Committee on Gove.r nment        appropriation. To cover the resulting     tants, ta.x lawyers, representatives of
Refornl and Oversight.                      labor cost shortfall, IRS reduced         tax associations, and Internal Rev-
                                            travel and overtime costs, cash           enue Service (IRS) staff. Several
This testimony focuses on three mllior      awards, hours for seasonal staff, and     themes emerged from GAO's analysis.
areas that continue to challenge the        the number of nonpermanent staff.         First, the complexity of the Internal
Postal Service in providing prompt,         IRS wanted to ensure that it had          Revenue Code, compounded by the



GAO/OlMC-97-1A Subject Index                Page 46
frequency of changes to it, is the       OJJDP grant files indicated plans for     whistle-blowing. But how well is the
driving force behind the compliance      monitoring the work, the files con-       redress system working, and does it
burden on companies. Second, a           tained little evidence to suggest that    add to or detract from fair and effi-
reliable estimate of the overall costs   the monitoring actually occurred.         cient government operations? This
of business tax compliance would be      OJJDP indicated that it planned to        testimony makes three main points:
costly and in itself burdensome on       improve its monitoring records.           First, because of the system's com-
companies to obtain. GAO is studying                                               plexity and the various redress
two return-free filing approaches used   T-GGD-96-104, Apr. 25, 1996 (30           mechanisms it affords federal employ-
in other countries to determine          pages). Alcohol, Tobacco and Fire-        ees, it is inefflcient, expensive, and
whether they reduce the tax compli-      arms: Issues Related to Use of Force,     time-consuming. Second, because the
ance burden on individuals. Despite      Dealer Licensing, and Data Restric-       system is so strongly protective of the
their promise, these approaches may      tions, by Norman J. Rabkin, Director,     redress rights of workers, it is vulner-
impose burdens on employers, tax         Administration of Justice Issues,         able to employees who would take
preparers, and state tax systems.        before the Treasury-Postal Service        advantage of these protections. Its
Moreover, ms' ability to implement       and General Government Subcommit-         protracted processes and require-
such systems is unclear. Reducing the    tee, House Committee on Appropria-        ments divert managers from more-
tax compliance burden on businesses      tions.                                    productive activities and inhibit some
and individuals will be a challenge                                                of them from taking legitimate actions
because of various policy trade-offs,    In recent years, the Bureau of Alcohol,   in response to performance or con-
such as revenue impact and taxpayer      Tobacco and Firearms (ATF) has            duct problems. Further, the demands
equity.                                  come under public criticism and           of the system put pressure on employ-
                                         congressional scrutiny, in part due to    ees and agencies alike to settle
T-GGD-96-103, May 8, 1996 (29            accusations that ATF agents used          cases-regardless of their merit-to
pages). Juvenile Justice: Selected       excessive force in carrying out their     avoid potential costs. Third, alterna-
lssues Relating to OJJDP's Reauthori-    responsibilities. This report discusses   tives to the current redress system
zation, by Laurie Ekstrand, Associate    ( 1) ATF's policies on using deadly       can be found in the private sector and
Director, Administration of Justice      force; (2) the way in which ATF           in some parts of the federal govern-
Issues, before the Youth Violence        conveys its policies to its agents; (3)   ment. These alternatives, including a
Subcommittee, Senate Committee on        the reasons for and the extent to         variety of less-formal approaches
the Judiciary.                           which ATF uses dynamic entries and        collectively Irnown as alternative
                                         the equipment it uses to make them;       dispute resolution, may be worth
The goal of the Office of Juvenile       and (4) ATF's compliance with its         further study.
Justice and Delinquency Prevention       procedures for investigating shooting
(OJJDP) is to provide national leader-   and alleged excessive use-of-force        T-GGD-96-112, Apr. 25, 1996 (9
ship in addressing juvenile delin-       incidents. GAO compares ATF's             pages). Tax Administration: ms Tax
quency and in improving juvenile         policy, training, and review process      Debt Collection Practices, by Lynda
justice. OJJDP, whose budget totaled     on the use of force with those at the     D. Willis, Director, Tax Policy and
$162 million in fiscal year 1995,        Drug Enforcement Administration and       Administration Issues, before the
administers a range of grants to         the FBI.                                  Oversight Subcommittee, House
states, territories, and public and                                                Committee on Ways and Means.
private groups. OJJDP has procedures     T-GGD-96-110, Apr. 23, 1996 (12
to plan, solicit, and award grants, as   pages). Federal Employee Redress: A       The Internal Revenue Service   ems)
well as to audit and monitor grant       System in Need of Reform, by Timo-        confronts major hurdies in collecting
projects and communicate the results     thy P. Bowling, Associate Director,       tens of billions of dollars in delinquent
of the work to practitioners and         Federal Management and Workforce          taxes. As Congress tries to balance
policymakers. However, some moni-        Issues, before the Treasury-Postal        the federal budget, these unpaid taxes
toring procedures were not followed.     Service and General Government            have become increasingly important
A review of formula grant data           Subcommittee, House Committee on          as have ms' collection efforts. GAO
between January 1993 and December        Appropriations.                           testified that ms could do more to
1995 showed that on-site visits for                                                improve its collection practices.
program monitoring were generally        The redress system for federal            Valuable lessons may be gained from
not done annually, as required.          workers seeks to protect employees        IRS' pilot program testing the use of
According to OJJDP, the visits did not   against arbitrary agency actions and      private debt collectors. IRS' inlprove-
occur because they are expensive and     prohibited personnel practices, such      ment efforts are jeopardized by a lack
time consuming. Although almost all      as discrimination or retaliation for      of reliable information on its accounts




                                         Page 47                                            GAO/OlMC-97-IA Subject ludex
receivable and the effectiveness of its   mechanisms to ensure consistent            ment and Workforce Issues, before
collection tools, an aged inventory of    oversight and reduce regulatory            the Civil Service Subcommittee,
receivables, outdated collection          burden.                                    House Committee on Government
processes, and antiquated technology.                                                Reform and Oversight.
IRS needs a long-term strategy to         T-GGD-96-123, May 9, 1996 (22
guide its efforts to improve delinquent   pages). Tax Systems Modernization:         The downsizing of the federal
tax collection. The key to any im-        Progress in Achieving IRS' Business        workforce is allead of the schedule set
provement lies in having accurate and     Vision, by Lynda D. Willis, Director,      by the Workforce Restructuring Act.
reliable information. In addition, the    Tax Policy and Administration Issues,      At the same time, the administration
private sector may be able to assist      before the Senate Committee on             has called on agencies to restructure
IRS by performing some collection         Governmental Affairs.                      their workforces by reducing manage-
activities.                                                                          ment positions. These jobs have yet to
                                          The Internal Revenue Service (IRS)         be reduced to the extent called for by
T-GGD-96-U7, May 2, 1996 (14              has developed a vision for 200 I that      the National Performance Review.
pages). Bank Oversight: Fundamental       calls for organizational, technological,   With regard to future workforce
Principles for Modentizing the U.S.       and operational changes affecting the      reductions, GAO found that in terms
Structure, by James L. Bothwell,          way in which the agency processes          of absolute numbers-and given
Director, Financial Institutions and      tax returns, provides customer             historical quit rates-the remaining
Markets Issues, before the House          service, and ensures compliance. IRS       employment ceilings called for by the
Committee on Banking and Financial        has made progress in modentizing its       act probably could be achieved
Services.                                 operations, but the differences            govemrnentwide through attrition.
                                          between IRS' existing operations and       Nevertheless, some agencies may be
This testimony discusses four basic       those proposed in its vision are great.    forced to downsize more than others.
principles that GAO believes Congress     IRS has made little progress either in     In such situations, buyouts or reduc-
should consider in modernizing the        reducing the number of paper returns       tions-in-force (RIF) may be necessary.
structure of U.S. bank regulatory         it processes or in delivering the new      GAO found that buyouts offer greater
structure. GAO believes that struc-       systems needed to better process           savings than RlFs, except when RIFed
tural reform should provide for (1)       paper. In addition, taxpayers have         employees do not bump and retreat
consolidated and comprehensive            long had difficulty reaching IRS by        and are eligible to retire.
oversight of companies owning             telephone. And, when they do reach
federally insured banks and thrifts,      IRS assistors, they do not always          T-GGD-96-130, June 20, 1996 ( 17
with coordinated functional regulation    receive the information they need          pages). Tax Administration: Issues in
and supervision of individual compo-      Although IRS has developed a promis-       Classifying Workers as Employees or
nents; (2) independence from undue        ing strategy to improve customer           Independent Contractors, by Natwar
political pressures, balanced by          service, the agency faces many             M. Gandhi, Associate Director, Tax
appropriate accountability and            challenges in inlplementing it. IRS is     Policy and Administration Issues,
adequate congressional oversight, (3)     seeking to boost compliance to 90          before the Oversight Subcommittee,
consistent rules, consistently applied    percent by 2001. However, this goal        House Committee on Ways and
for similar activities; and (4) en-       relies on a set of assumptions that        Means.
hanced efficiency and reduced             have since changed significantly. GAO
regulatory burden. GAO's work on          questions IRS' ability to make sound       To determine the social security and
bank oversight in Canada, France,         investlnent decisions until it             unemployment taxes they need to pay
Germany, the United Kingdom, and          reengineers important processes, such      on employee wages, employers must
Japan showed that different ways          as tax return processing. Until clearly    classify workers as employees or
exist to simplify bank oversight in       defined business requirements drive        independent contractors. The Internal
accordance with the above four            Tax Systems Modernization projects,        Revenue Service (IRS) estimates that
principles. GAO urges Congress to         there is no guarantee that these           about 750,000 of the more than 5
reduce the number of federal agencies     projects will successfully im prove IRS    million employers (15 percent)
with primary responsibility for bank      operations.                                misclassified 3.4 million employees as
oversight, include both the Federal                                                  independent contractors in 1984.
Reserve and the Treasury Department       T-GGD-96-124, May 23, 1996 (11             Factors such as costs and confusion
in bank oversight, provide the Federal    pages). Federal Downsizing: The            can contribute to misclassification.
Deposit lnsurance Corporation with        Status of Agencies' Workforce Reduc-       This testimony highlights the main
the authority to protect deposit          tion Efforts, by Timothy P. Bowling,       points raised in GAO work dating
insurance funds, and incorporate          Associate Director, Federal Manage-        back nearly 20 years on the proper



GAO/OIMC-97-1A Subject Index              Page 48
classification of workers.                  reported to the Federal Deposit           (GSA) implementation of the Federal
                                            Insurance Corporation (FDIC), about       Operations Review Model (FORM),
T-GGD-96-134, June 12, 1996 (7              2,800 banks sold more than $40 billion    which GSA developed to help identify
pages). Housing Enterprises: Potential      in mutual fund shares during 1995         the most cost-effective methods of
Impacts of Severing Government              alone. Because it is well-known that      carrying out each of its 16 major
Sponsorship, by James L. Bothwell,          bank and thrift deposits are federally    mission-support functions or business
Director, Financial Institutions and        insured, customers buying investment      lines. GAO found no reason to ques-
Markets Issues, before the Capital          products from banks and thrifts need      tion the view of the GSA Office of
Markets, Securities and GSEs Sub-           to understand the difference between      Inspector General (lG) that, although
committee, House Committee on               FDIC-insured investments, such as         GSA's implementation of the prelimi-
Banking and Financial Services.             money market deposit accounts, and        nary phase generally followed the
                                            uninsured investments, such as            prescribed FORM process, it con-
Privatizing Fannie Mae and Freddie          money market mutual funds . In early      tained several weaknesses involving
Mac could have a major impact on            1994, FDIC, the Office of the Comp-       the consistent application of assump-
these two government-sponsored              troller of the Currency, the Federal      tions, the sufficiency of-and in some
housing enterprises, American               Reserve, and the Office of Thrift         cases the absence of-relevant data,
homebuyers and taxpayers, and               Supervision jointly issued guidelines     the appropriateness of cost estimates,
mortgage markets in general.                to banks and thrifts requiring that       and fmancial calculation errors.
Privatization could (1) substantially       customers be fully informed of the        Similarly, the IG's observation that the
increase the enterprises' costs of          risks of investing in nondeposit          data in initial FORM analysis reports
operations and lower profits because        investment products. The guidelines       should not be relied upon as the
of greater competition from other           also call for the mutual fund sales       primary basis for making final deci-
financial firms; (2) raise interest rates   areas in fmancial institutions to be      sions about privatizing or outsourcing
on mortgages below $207,000, with as        physically separated from the deposit-    specific business lines seems reason-
much as $25 a month in additional           taking areas. In 1995, GAO reported       able-particularly because phase one
payments on a typical mortgage of           that many banks and thrifts were not      was to be followed by a more in-depth
$100,000 and relatively higher in-          adequately informing potential            second analysis.
creases for homebuyers representing         investors of the risks of investing in
higher default risks; (3) boost compe-      mutual funds. GAO based this conclu-      T-GGD-96-153, July 16, 1996 (17
tition in the mortgage markets, which       sion on the results of its 'secret        pages). Future of the Penny: Options
GAO believes will likely prevent the        shopper" visits to 89 banks and thrifts   for Congressional Consideration, by J.
reappearance of significant regional        in 12 cities in 1994. GAO also found      William Gadsby, Director, Govern-
disparities in mortgage credit; and (4)     that more than one-third of the           ment Business Operations Issues,
decrease taxpayers' risk exposure to        institutions did not clearly separate     before the Domestic and International
enterprise obligations. GAO also            the mutual fund sales areas from the      Monetary Policy Subcommittee,
assesses several more-limited policy        deposit-taking areas. This testimony      House Committee on Banking and
options, such as imposing a fee on the      focuses on FDIC surveys that reaffirm     Financial Services.
enterprises to compensate taxpayers         GAO's findings on banks' and thrifts'
for their risk exposure. Each option        inadequate disclosure of the risks        In reviewing whether the United
entails benefits and risks that need to     associated with investing in mutual       States should continue to produce the
be carefully considered.                    funds.                                    penny, GAO found that several
                                                                                      factors, including government costs,
T-GGD-96-141 , June 26, 1996 (8             T-GGD-96-151 , July 18, 1996 (4           public attitudes, budgetary and
pages). Bank Mutual Funds: Improve-         pages). General Services Administra-      operational consequences for the Mint
ments in Risk Disclosure Needed, by         tion: Observations on GSA's Imple-        and its contractors, and the fairness of
James L. Bothwell, Director, Financial      mentation of the Federal Operations       rounding prices to the nearest 5-cent
Institutions and Markets Issues,            Review Model, by J. William Gadsby,       increment, warrant congressional
before the Capital Markets, Securities      Director, Government Business             consideration. Among key findings,
and GSEs Subcommittee, House                Operations Issues, before the Public      GAO found thal although it costs less
Committee on Banking and Financial          Buildings and Economic Development        than a permy to mint a penny, the
Services.                                   Subcommittee, House Committee on          government in 1994 lost between $8
                                            Transportation and Infrastructure.        million and $9 million after costs
In recent years, sales of mutual funds                                                involved in distributing pennies were
through banks and savings and loans         GAO was asked to monitor the              taken into account. Public opinion on
have soared. According to information       General Services Administration's         the penny is mixed: a GAO poll found




                                            Page 49                                            GAO/OIMC-97-1A Subject Index
that most Americans prefer rounding       mittee on Government Reform and           ment of OFHEO's Interest Rate
to using pennies, but a similar number    Oversight.                                Analysis, by James L. Bothwell,
believe that the penny is useful and                                                Director, Financial Institutions and
should be retained.                       In con)menting on an outline of           Markets Issues, before the Capital
                                          proposed legislation to reform the        Markets, Securities and GSEs Sub-
T-GGD-96-159, July 26, 1996 (6            redress system for federal employees,     committee, House Committee on
pages). Federal Reserve System:           GAO noted that the current system-        Banking and Financial Services.
Current and Future Challenges             which is designed to protect federal
Require Systemwide Attention, by          workers against arbitrary agency          In July 1996, a congressional commit-
Charles A Bowsher, Comptroller            actions and such prohibited personnel     tee asked the Office of Federal
General of the United States, before      practices as discrimination or retalia-   Housing Enterprise Oversight
the Senate Committee on Banking,          tion for whistleblowing-has become        (OFHEO) to analyze the potential
Housing and Urban Affairs.                increasingly complex, with overlap-       effects of a large and rapid increase in
                                          ping jurisdiction among four              interest rates, accompanied by
This testimony discusses GAO's            adjudicatory agencies. The current        otherwise unfavorable economic
recent report (GAO/GGD-96-12S) on         system provides substantially greater     conditions, on the financial health of
the Federal Reserve System, the most      employment protection to federal          Fannie Mae and Freddie Mac. This
comprehensive review that GAO had         workers than those accorded to            testimony reviews OFHEO's analysis
ever undertaken of the Fed's opera-       private sector employees, and federal     and assesses the reasonableness of
tions. Fed operating expenses rose 48     employees fLle workplace discrimina-      the approach and the key assumptions
percent from 1988 to 1994-double          tion complaints at six times the per      that OFHEO used in its analysis.
the rate of inflation. About 70 percent   capita rate of private sector workers.
of the Fed's operating expenses were      The pending legislation would elimi-      T-GGD-96-185, Sept 25, 1996 (23
for financial services to banks and       nate the current ability of federal       pages). Regulatory Reform: imple-
government agencies, such as check        employees to have two agencies            mentation of the Regulatory Review
clearing and transfers-services that      review an appeal rather than one;         Executive Order, by L. Nye Stevens,
have no connection with the central       would bring discrimination complaint      Director, Federal Management and
bank's monetary policy. Monetary and      processes more in line with the           Workforce Issues, before the Finan-
economic policy activities and the        private sector model; and would           cial Management and Accountability
Board of Governors staff accounted        encourage federal workers to use          Subcommittee, Senate Committee on
for only about 2,300 employees-less       alternative dispute resolution as a way   Governmental Affairs.
than 10 percent of the Fed's total        to avoid the time and expense of
workforce. The Fed's main workload        employee litigation.                      Executive Order 12866-"Regulatory
today is neither policymaking nor                                                   Planning and Review"-{)utlined the
bank supervision but rather fmancial      T-GGD-96-169, Sept. 24, 1996 ( 10         administration's regulatory philosophy
services, which include currency          pages). Federal Contracting: Com-         and principles, described the organi·
processing, massive check-clearing        ments on S. 1724, the Freedom From        zation of the federal regulatory
operations, and funds transfer sys-       Government Competition Act, by L.         system, and initiated a process to
tems. And it is precisely these busi-     Nye Stevens, Director, Federal            review, revise, and-in some cases-
nesses in which the Fed is facing         Management and Workforce Issues,          eliminate existing regulations. That
growing competition from the private      before the Senate Committee on            review process ultimately became
sector. In fact, the Fed's market share   Governmental Affairs.                     part of the administration's overall
in the check-clearing business has                                                  regulatory reform effort The order
declined while its expenses have          S. 1724, the Freedom From Govern-         also allocated responsibilities to both
continued to rise.                        ment Competition Act, would require       federal agencies and the Office of
                                          the government to procure from the        Management and Budget (OMB) in a
T-GGD-96-160, July 16, 1996 (S            private sector the goods and services     centralized regulatory review process
pages). Civil Service Reform: Redress     needed to carry out its missions, with    and recognized OMB's Office of
System Implications of the Omnibus        a few specified exceptions. This          Information and Regulatory Affairs as
Civil Service Reform Act of 1996, by      testimony provides GAO's views on         the repository of expertise on regula-
Timothy P. Bowling, Associate             the proposed legislation.                 tory issues. This testimony discusses
Director, Federal Management and                                                    (1) implementation of the order's cost-
Workforce Issues, before the Civil        T-GGD-96-173, July 31 , 1996 (4           benefit analysis requirements, (2)
Service Subcommittee, House Com-          pages). Housing Enterprises: Assess-      changes made by the Office of Infor-




GAO/OlMC-97 -LA Subject Index             Page 50
mation and Regulatory Affairs to          Technology Subcommittee, House              including changes to the statutory
agencies' proposed regulations, and       Committee on Government Refornl             offices; (2) changes in OMB's atten-
(3) agencies' efforts to eliminate and    and Oversight.                              tion to management issues in the
revise regulations.                                                                   budget process; and (3) the way OMB
                                          In a 1995 report (GAO/GGD-96-9) on          planned to evaluate OMB 2000.
T -GGD-96-191, Sept. 11, 1996 (8          the National Air and Space Museum,
pages). Federal Labor Relations:          GAO examined whether the museum             T-GGD/AJMD-96-88, Mar. 14, 1996
Official Time Used for Union Activi-      restored enough aircraft to prevent         (22 pages). Status of Tax Systems
ties, by Timothy P. Bowling, Associate    deterioration of its collection. GAO        Modernization, Tax Delinquencies,
Director, Federal Management and          also assessed the rate of aircraft          and the Potential for Return-Free
Workforce Issues, before the Civil        restoration, examined the adequacy of       Filing, by Lynda D. Willis, Director,
Service Subcommittee, House Com-          facilities for restoring aircraft, and      Tax Policy and Administration Issues,
mittee on Government Reform and           identified ways to better care for the      and Rona B. Stillman, Chief Scientist,
Oversight.                                collection. This testimony is based on      Computers and Telecommunications,
                                          that report, which found that the           before the Treasury-Postal Service
Unions represent nearly 1.9 million       museum committed relatively few             and General Government Subcommit-
federal workers, 750,000 of whom          resources to restoration compared to        tee, House Corrunittee on Appropria-
work for the Postal Service. In           other museum activities and the             tions.
response to congressional interest in     resources corrunitted by the Air
the extent to which employees use         Museum in Dayton, Ohio. GAO also            Regarding the Internal Revenue
official time for union activities, GAO   found that even if the museum               Service's (IRS) Tax Systems Modern-
found that the four m,yor federal         increased its restoration efforts, it       ization effort, GAO is concerned about
agencies it reviewed-the Postal           would not have enough space with            various weaknesses involving the
Service, the Internal Revenues Ser-       environmental controls to properly          electronic-filing strategy, software
vice, the Department of Veterans          store and clisplay the restored aircraft.   development, and other factors that
Affairs, and the Social Security                                                      jeopardize the success of this multi-
Administration-neither collect nor        T -GGD/AIMD-96-68 , Feb. 7, 1996 (7         million-dollar project. Until these
report the kinds of data needed to        pages). OMB 2000: Changes Resulting         deficiencies are corrected, IRS' ability
accurately cjescribe the practice         From the Reorganization of the Office       to successfully complete Tax Systems
across agencies. If federal               of Management and Budget, by L. Nye         Modernization seems doubtful. In
policymakers are to resolve questions     Stevens, Director, Federal Manage-          adclition to more-effective use of
about the extent to which taxpayers       ment and Workforce Issues, and Paul         technology, increased fLling options
subsidize the activities of federal       L. Posner, Director, Budget Issues,         could benefit both taxpayers and IRS.
employee unions, better data are          before the Government Management,           For example, if certain obstacles can
needed on (1) the amount and cost of      Information and Technology Subcom-          be overcome, return-free filing can
the hours used for union activities, as   mittee, House Committee on Govern-          ease the burden fo r taxpayers while
well as the number of employees           ment Refonn and Oversight.                  reducing the amount of paper IRS
using those hours; (2) the types of                                                   must process. In tax collection, IRS
activities covered by the hours used;     This testimony cliscusses changes at        has made little progress in solving its
and (3) the overall costs of agencies'    the Office of Management and Budget         accounts receivable problems. IRS
support for union activities. Recogniz-   (OMB) resulting from a 1994 reorgani-       continues to grapple with (1) inaccu-
ing that data gathering can be expen-     zation-commonly known as OMB                rate and unreliable information, (2)
sive, GAO believes that pollcymakers      2000. The main goal of OMB 2000 was         antiquated computers and a rigid
need to balance the costs and benefits    to integrate the agency's budget            collection process, (3) unintended
of the various options for doing so.      analysis, management review! and            problems with safeguards against
                                          policy development roles under a new        potential taxpayer abuses, (4) a lack
T-GGD-96-192, Sept. 25, 1996 (8           organizational structure. In doing so,      of accountability in its organizational
pages). Smithsonian Institution: Care     OMB sought to inlprove its                  structure, and (5) staffmg imbalances.
of National Air and Space Museum          decisionmaking process and its              As a result, IRS carmot be sure how
Aircraft, by J. William Gadsby,           oversight of executive branch opera-        much money the government is owed
Director, Government Business             tions. This testimony focuses on three      or how much of the debt is collectible.
Operations Issues, before the Govern-     issues: (1) changes in OMB's struc-
ment Management, Information and          ture, responsibilities, and staffmg,




                                           Page 5 1                                            GAOIOIMC-97-1ASubject Index
T-GGD/AIMD-96-115, May 7, 1996             However, the agency needs to develop      cover employees who had not filed
(41 pages). Library of Congress:           a plan to overcome signtlicant techni-    buyout applications before that date.
Opportunities to Improve General and       cal, managerial, and other obstacles to   GAO disagrees with the General
Financial Management, by J. William        achieving its customer service vision.    Counsel's position. GAO believes that
Gadsby, Director, Government               (3) Longstanding problems continue        the plain language of the act, as well
Business Operations Issues; Robert         to undermine the effectiveness of IRS'    as the fundamental logic and underly-
Gramling, Director, Corporate Audits       collection problems. Signtlicant          ing context of the statute, clearly
and Standards; Joyce C. Doria,             changes are needed in the way IRS         require that determinations to invoke
Partner, Booz-Allen & Hamilton, Inc.;      does business. (4) Although IRS has       the exception and pennit delayed
and Paul E. Lohneis, Partner, Price        made some progress in resolving           separation must be made in coI\iunc-
Waterhouse, before the Joint Commit-       issues that have prevented GAO from       tion with approval of the buyouts
tee on the Library.                        expressing an opinion on the reliabil-    themselves. In GAO's view, the
                                           ity of IRS' fmancial statements,          authority of agencies to approve
In response to allegations about the       serious management problems remain        buyouts ended on March 31, 1995. The
way in which the Library of Congress       uncorrected. (5) IRS needs to improve     legislative history of the act supports
handled the thefts of rare materials, as   its ability to make sound investment      this opinion.
well as longstanding problems related      decisions in infonnation technology.
to human resources and financial           IRS' reengineering efforts could          T-GGDIRCED-96-186, June 5,1996
management, GAO was asked to               generate new business requirements        (20 pages). Paperwork Reduction:
assess management at the Library.          that are not addressed by tax systems     Burden Reduction Goal Unlikely To
Because of the tight timeframe             modernization or that make some of        Be Met, by Michael Brostek, Associate
involved in this assignment, GAO           those projects obsolete.                  Director, Federal Management and
contracted with Booz-Allen Hamilton,                                                 Workforce Issues, and Peter F.
Inc. to conduct a general management       T-GGD/OGC-96-132 , June 11, 1996          Guerrero, Director, Environmental
review of the Library and with Price       (11 pages). Federal Downsizing:           Protection issues, before the Senate
Waterhouse LLP to audit the Library's      Delayed Buyout Policy at DOE Is           Committee on Small Business.
fIScal year 1995 financial statements.     Unauthorized, by Henry R. Wray,
This testimony is based on the reports     Senior Associate General Counsel,         The paperwork burden that the
prepared by Booz-Allen Hamilton and        before the Civil Service Subcommit-       federal government imposes on the
Price Waterhouse and includes              tee, House Committee on Government        public has increased signtlicantly
executive summaries of their reports.      Reform and Oversight.                     since 1980. Under the Paperwork
GAO discusses four main themes; the                                                  Reduction Act of 1995, the Office of
Library of Congress' mission, opera-       The Federal Workforce Restructuring       Management and Budget (OMB) is
tion, resources l and financial condi-     Act authorized federal agencies to        required to seek at least a lO-percent
tion.                                      offer "buyouts" to employees who          reduction in the governmentwide
                                           retired or resigned from the govern-      paperwork burden in fIScal year 1996
T-GGD/AIMD-96-170, July 29, 1996           ment before April 1, 1995. The legisla-   and to set reduction goals for each
(18 pages). Managing IRS: IRS Needs        tion contained an exception that          agency. This testimony discusses the
to Continue Improving Operations and       allowed the payment of a buyout to an     following issues: (1) what changes in
Service, by Lynda D. Willis, Director,     employee as late as March 31, 1997, if    the paperwork burden have occurred
Tax Policy and Administration Issues,      the agency head determined that such      governmentwide and at the Internal
before the National Commission on          a delay was essential to the agency's     Revenue Service, the Environmental
Restructuring the Internal Revenue         mission. The General Counsel at the       Protection Agency, and the Occupa-
Service.                                   Department of Energy (DOE) con-           tional Safety and Health Administra-
                                           cluded in a July 1995 memorandum          tion; (2) what OMB's responsibility to
This testimony was intended to assist      that the act did not preclude DOE         get goals for reducing the burden is,
the National Commission restructure        from offering buyouts to employees        and whether agencies will achieve the
the Internal Revenue Service (IRS).        who had not applied for them before       reductions envisioned by the legisla-
GAO makes the following points: (1)        April I, 1995. He further stated that a   tion; and (3) what actions each of the
One of the IRS' biggest problems has       determination by the Secretary of         three agencies has taken since the
been the inefficient way in which its      Energy to "conditionally approve"         act's passage. GAO also discusses
processes most tax returns. IRS needs      delayed buyouts for all DOE employ-       measurement issues that Congress
to reduce the volume of paper returns.     ees in broad job categories who           should consider as it assesses agen-
(2) IRS' strategy for improving cus-       applied before April I, 1995, was         cies' progress in reducing the paper-
tomer service appears promising.           permitted to later be amended to          work burden.



GAOIOIMC-97 -lA Subject Index               Page 52
T-GGDIRCED-96-214, July 10, 1996           from concessioners in t he six land       Library of Congress to another
(16 pages). Managing for Results: Key      management agencies. For agree-           organization; (2) possible additional
Steps and Challenges in implementing       ments that were either initiated or       revenues that the Copyright Office
GPRA in Science Agencies, by L- Nye        extended during fiscal year 1994,         could charge if it recovered all costs;
Stevens, Director, Federal Manage-         concessioners in the land manage-         and (3) the impact on the Library,
ment and Workforce Issues, and             ment agencies paid the government an      including the Copyright Office, of
Victor S. Rezendes, Director, Energy,      average of about three percent of their   revisions to its competitive selection
Resources, and Science Issues, before      gross revenue. in contrast,               process as a result of the settlement
the House Committee on Science.            concessioners in other agencies paid      of a class-action discrimination suit.
                                           fees of about uine percent of their
The landmark Government Perfor-            gross revenues. The key factors
mance and Results Act (GPRA)               affecting the rate of return to the
requires federal agencies to set goals     government were whether: (1) the
and measure performance. GAO work          fees were established through compe-
has shown that the effectiveness of        tition; (2) the agency was allowed to
the Energy Department, NASA, and a         keep most of the concession fees it
host of other agencies has been            generated; and (3) whether an incum-
hampered by unfocused missions and         bent concessioner had a preferential
unclear goals. If successfully inlple-     right in renewing its agreement with
mented in civilian science agencies,       the government. Throughout the
GPRA should help Congress make the         government, rates of return from
hard science policy and prograDl           concessioners were higher when
choices. GPRA will also help agencies      established through competition.
better manage their prograDlS and          Agencies wlticll had authority to
provide the public with greater            retain fees and which did not grant
assurance that tax dollars are being       preferential rights of renewal gener-
spent wisely. But the changes in           ally obtained ltigher rates of return
management and accountability              from concessioners.
envisioned under GPRA are not
coming quickly or easily, particularly     T -RCED/GGD-96-230, Sept. 18, 1996
in the science agencies. Successful        (8 pages). Intellectual PropertY:
implementation of GPRA in those            Patent Examination and Copyright
agencies may well depend on contin-        Office Issues, by Allen Li, Associate
ued congressional support and              Director, Energy, Resources, and
interest.                                  Science Issues, before the Senate
                                           Committee on the Judiciary.
T-RCED/GGD-96-223 , July 18, 1996
(10 pages). Federal Lands: Concession      This testimony focuses on intellectual
Reform is Needed, by Victor S.             property issues. in the patent exami-
Rezendes, Director, Energy, Re-            nation area, GAO discusses (1) patent
sources, and Science Issues, before        pendency-the amount of time that
the National Parks, Forests, and           the Patent and Trademark Office
Lands Subcommittee, House Commit-          (PTO) spends examining an applica-
tee on Resources.                          tion to determine whether an inven-
                                           tion should receive a patent; (2) PTO's
Concession activity on federal lands is    resources committed to the patent
a large industry, with civilian agencies   process, the trademark process, the
managing more than 11,000 conces-          dissemination of information, and
sion agreements throughout the             executive direction and administra-
federal government during 1994.            tion; and (3) PTO's workload and
Concessioners operating under t hese       examination process in comparison
agreements generated about $2.2            with those of other industrialized
billion in gross revenue. More than 90     countries. in the copyright area, GAO
percent of concession agreements and       discusses (1) the possibility of trans-
the concession gross revenues were         ferring the Copyright Office from the




                                           Page 53                                            GAO/OIMC-97-1A Subject Index
HEHS                                      Many states are converting their          searched for ways to improve public
                                          traditional fee-for-service Medicaid      education. School districts nationwide
HEHS-96-1, Oct. 19, 1995 (18 pages).      progranlS to managed care delivery        are experimenting with a range of
Federal Pensions: Thrift Savings Plan     systems. Arizona's Medicaid program       reform options, one of which is
Has Key Role in Retirement Benefits.      offers valuable insights-especially in    private management of public
                                          fostering competition and monitoring      schools. GAO reviewed the early
As of September 1994, about 940,000       plan performance. Since 1982, Arizona     experiences of school districts that
federal workers covered by the            has operated a statewide Medicaid         contracted with private, for-profit
Federal Employees Retirement              program that mandates enroliment in       comparues to manage the public
System (FERS) were voluntarily            managed care and pays health plans a      schools. GAO found that private firms
contributing an average of 5.7 percent    capitated fee for each beneficiary        hired to manage public schools in four
of their salaries to the Thrift Savings   served. Although the program had          school districts-Baltimore, Mary-
Plan. Most of the remaining 300,000       problems in its early years, such as      land; Dade County, Florida; Hartford,
workers covered by FERS who were          the dismissal of the program adminis-     Connecticut; and Minneapolis, Minne-
not contributing were in the lower pay    tration and the state's takeover of the   sota-made changes that resulted in
ranges. Lower-paid workers who were       administration, it has successfully       more computers and better atten-
contributing were doing so at lower       contained health care costs while         dance, individual instruction, and
rates than higher-paid workers-an         maintaining beneficiaries access to       facility maintenance. However,
average of 4.4 percent of their sala-     mainstream medical care. Arizona's        despite these changes, student scores
ries. However, lower-paid workers         recent cost containment record is         on standardized tests did not improve
may achieve satisfactory retirement       noteworthy. According to one esti-        substantially.
income levels even with low contribu-     mate, Arizona's Medicaid program
tion rates because Social Security        saved the federal government $37          HEHS-96-4, Nov. 2, 1995 (70 pages).
benefits are proportionately greater      million and the state $15 million in      Department of Labor: Senior Commu-
for them than for higher-paid workers.    acute care costs during fiscal year       nity Service Employment Program
Higher paid workers need to defer at      1991 alone. Arizona succeeded in          Delivery Could Be Improved Through
least five percent of their salaries      containing costs by developing a          Legislative and Administrative Ac-
throughout their c31'eers-if not          competitive Medicaid health care          tions.
more-to achieve retirement income         market. Health plans that submit
of 60 to 80 percent of their              capitation rates higher than their        The Labor Department's Senior
preretirement salaries. Educating         competitors' bids risk not winning        Community Service Employment
FERS workers can playa key role in        Medicaid contracts. Other states          Program finances part-time, mini-
their making wise preretirement           considering managed care programs         mum-wage community service jobs
investment choices. Although Thrift       can benefit from Arizona's experience.    for about 100,000 poor elderly Ameri-
Savings Plan materials discuss the        GAO concludes that key conditions         cans. GAO found that Labor distrib-
plan's financial aspects, they do not     for holding down Medicaid costs           utes program funds through noncom-
explicitly discuss how the Thrift         without compromising beneficiaries'       petitive grants to 10 national organiza-
Savings Plan can help workers             access to appropriate medicare care       tions, called national sponsors, and to
covered by FERS achieve their             include federal from some federal         state agencies. These national spon-
retirement income goals. The Thrift       managed care regulatiOns, develop-        sors and state agencies, in tum) use
Savings Plan Board is seeking legisla-    ment and use of market forces,            the grant funds to fmance local
tion that would enable employees to       controls to protect beneficiaries from    employment projects run by commu-
invest in a domestic small capitaliza-    inadequate care, and investment in        nity service host agencies, such as
tion fund and an international stock      data collection and analysis capabili-    libraries, nutrition centers, and
fund. GAO found that these two            ties.                                     parks-that directly employ older
additions would make the Thrift                                                     Americans. GAO found that the
Savings Plan's investment options         HEHS-96-3, Apr. 19, 1996 (76 pages).      relative distribution of funds to the
more closely resemble those in            Private Management of Public              national sponsors and state agencies
similar private sector plans.             Schools: Early Experiences in Four        along with Labor's method of imple-
                                          School Districts.                         menting the hold harmless provisions
HEHS-96-2 , Oct. 4, 1995 (32 pages).                                                have resulted in the distribution of
Arizona Medicaid: Competition             Troubled by childrens' low test           funds among and within states that
Among Managed Care Plans Lowers           scores, as well as their low atten-       bear little relationship to actual need.
Progranl Costs.                           dance, promotion, and graduation          GAO also found that, under Labor's
                                          rates, educators and parents have         regulations, expenditures that GAO



GAO/OIMC-97-lA Subject Index               Page 5·1
believes to be administrative in nature   example, some bonds that public             HEHS-96-8, Oct. 24, 1995 (80 pages).
may be charged to another cost            schools issue do not require insurance      Worker Protection: Federal Contrac-
category, allowing grantees to exceed     because the bonds have the states'          tors and Violations of Labor Law.
the statutory 15-percent limit on         credit rating. These high ratings
administrative costs. GAO summa-          reduce or eliminate the benefits of         Private sector fums receive billions of
rized this report in testimony before     insurance. Some schools, both public        dollars each year in federal govern-
Congress; see: Senior Community           and private, are fundanlentally strong,     ment contracts for goods and ser-
SeIVice Employment: Program               and do not have to take out loans to        vices. Although these finns generally
Delivery Could Be Improved Through        fmance their construction projects.         profit from their business with the
Legislative and Administrative Ac-        Yet other schools find the cost to          federal government, some also violate
tions, by Cornelia M. Blanchette,         issue bonds of the size of the debt         federal laws that protect the rights of
Associate Director for Education and      incurred makes using bonds to               employees to bargain collectively.
Employment Issues, before the             fmance a project inlpractical. Finally,     Legislation is pending before Con-
Subcommittee on Early Childhood,          some schools fmd other sources of           gress that would debar finns showing
Youth and Families, House Committee       fmancing, such as the Education             "a clear pattern and practice" of
on Economic and Educational Oppor-        Department.                                 violating the National Labor Relations
tunities. GAOIf-HEHS-96-57, Nov. 2                                                    Act from receiving federal contracts.
(15 pages).                               HEHS-96-7, Nov. 24, 1995 (23 pages).        This report identifies the extent to
                                          Higher Education: Selected Informa-         which violators of the Act include
HEHS-96-6, Dec. 8, 1995 (23 pages).       tion on Student Financial Aid Re-           employers who have contracts with
Financing College Facilities: Factors     ceived by Legal Immigrants.                 the govenmlent. More specifically,
Limit Connie Lee's Ability to Help                                                    GAO identifies characteristics associ-
More Schools.                             According to records at the Education       ated with these federal contractors
                                          Department, about 390,000 legal             and their violations of the act and
The College Construction Loan             immigrant students received Pell            identifies ways to inlprove compli-
Insurance Association (Connie Lee) is     grant aid in academic year 1992-93.         ance of federal contractors with the
a for-profit bond insurance holding       This was about 10 percent of all            act.
company that insures municipal            students receiving Pell grants. In total,
bonds issued by schools of higher         inlmigrants received $662 million, or       HEHS-96-15W, Oct. I, 1995 (46
education (colleges, universities, and    about II percent, of Pell grant aid in      pages). Health, Education, Employ-
teaching hospitals) who have diffi-       that year. GAO was unable to deter-         ment, Social Security, Welfare, and
culty obtaining insurance because         mine the total number of legal inlmi-       Veterans Reports.
their bonds have relatively low credit    grants who received Stafford loans
ratings-BBB and below. Connie Lee         because Citizenship data are not            This booklet lists GAO documents on
insures bonds issued to fmance the        maintained in the Education                 government programs related to
construction and renovation of            Department's loan files. Some inlmi-        health, education, employment, social
academic buildings. Although federal      grants who received Pell grants,            security, welfare, and veterans issues,
law generally limits Connie Lee to        however, also received Stafford loans       which are primarily run by the Depart-
insuring bonds that are relatively        totalling $257 million. About 82            ments of Health and Human SeIVices,
greater credit risks, state law con-      percent of the immigrants who               Labor, Education, and Veterans
strains bond insurance companies,         received student aid lived in seven         Affairs. One section identifies reports
including Connie Lee, to insuring 95      states, led by California and New           and testimony issued during the past
percent of their business in bonds        York. Sixty-one percent attended            month and sununarizes key products.
rated BBB and above. Industry             public colleges, 19 percent attended        Another section lists all documents
practice further constrains these         private colleges, and 21 percent            published during the past year,
companies. Rating firms' guidelines       attended for-profit vocational schools.     organized chronologically by subject.
require larger amounts of capital for     The 100 schools with the most               Order fOmlS are included.
insuring bonds rated below BBB than       inlmigrant Pell grant recipients
for insuring bonds rated BBB and          accounted for about half of all such        HEHS-96-16, Mar. 27, 1996 (49
above. Among those schools that           students, and 91 percent of these           pages). Medicare: Home Health
Connie Lee is permitted to serve,         schools were located in the seven           Utilization Expands While Program
some, including some historically         states with the highest concentration       Controls Deteriorate.
Black colleges and universities, do not   of immigrant students.
need or want to issue bonds or to                                                     Use of the Medicare home health
insure the bonds that they issue. For                                                 benefit has increased dramatically,



                                          Page 55                                              GAO/OlMC-97-1A Subject Index
with spending rising from $2.7 billion    the act's full impact can be deter-        Department of Veterans Affairs ('IA).
in 1989 to S12.7 billion in 1994. Costs   mined. GAO is required to assess the       These projects include the construc-
are projected to reach $21 billion by     effects of the act again in two years      tion of two new VA medical facilities
the year 2000. In earlier reports (GAOl   and to issue a report in 1997.             and major renovations at seven
HRD-81-155 and GAOIHRD-87-9), GAO                                                    existing facilities. This report dis-
cited lax controls over the use of the    HEHS-96-18, Jan. 24, 1996 (24              cusses how the projects are expected
home health benefit and recom-            pages). Fraud and Abuse: Providers         to benefit veterans and the relation-
mended measures to improve                Target Medicare Patients in Nursing        ships between the proposed projects
Medicare's ability to detect claims       Facilities.                                and VA's recent efforts to realign all of
that were not medically necessary or                                                 its facilities into a new service
did not meet the coverage criteria        Nursing home patients are an attrac-       network. GAO also d.iscusses the
Medicare's escalating home health         tive target for fraudulent and abusive     potential effects of funding delays on
outlays continue to raise concerns        health care providers that bill Medi-      VA's construction award dates and
about the extent of benefit abuse.        care for undelivered or unnecessary        costs.
This report examines the factors          services. A wide variety of providers,
underlying the growth in the use of       ranging from durable medical equip-        HEHS-96-20 , Apr. 10, 1996 (44
the home health benefit. GAO dis-         ment suppliers to laboratories to          pages). Medicare: Federal Efforts to
cusses ( 1) changes in the composition    optometrists and doctors, have been        Enhance Patient Quality of Care.
of the home health industry, (2)          involved in fraudulent and abusive
changes in the composition of Medi-       Medicare billing schemes. Several          In the past decade, Medicare costs
care home health users, (3) differ-       features make nursing home patients        have risen on average more than 10
ences in utilization patterns across      attractive targets. First, because a       percent per year. Expanding managed
geographic areas, (4) incentives to       nursing facility houses many Medicare      care options for Medicare patients has
overuse services, and (5) the effec-      beneficiaries under one roof,   llnSCru-   been proposed as a way to contain
tiveness of payment controls in           pulous billers of services can operate     costs. Concerns have been raised,
preventing payments for services not      their schemes in volume. Second,           however, that such changes may
covered by Medicare.                      nursing homes sometimes make               undermine the quality of care pro-
                                          patient records available to outsiders,    vided to Medicare beneficiaries.
HEHS-96-17, Oct. 27, 1995 (20             contrary to federal regulations. Third,    Currently, Medicare reimburses only
pages). Mammography Services:             providers are permitted to bill Medi-      for care provided in health mainte-
Initial Impact of New Federal Law         care directly, without certification       nance organizations and by the fee-
Has Been Positive.                        from the nursing home or the attend-       for-service sector. This report (1)
                                          ing physiCian that the items are           d.iscusses the present and future
The Mammography Quality Standards         necessary or have been provided as         strategies of the Health Care Financ-
Act of 1992 imposed uniform stan-         claimed. In addition, Medicare's           ing Administration, which administers
dards for mammography in all states,      automated systems do not collect data      the Medicare program, to ensure that
requiring certification and annual        to flag improbably high charges or         Medicare providers furnish quality
inspection of mammography facilities.     levels of services. Finally, even when     health care, in both fee-for-service and
GAO found that the act has had a          Medicare spots abusive billings and        health maintenance organization
positive impact, resulting in higher      seeks recovery of unwarranted              arrangements and (2) provides the
quality equipment, personnel, and         payments, it often collects little         views of experts on attributes a
practices. Mammography quality            money from wrongdoers, which either        quality assurance program should
standards are now in place in all         go out of business or deplete their        have if more managed care options
states, and these standards do not        resources so that they cannot repay        are made available to Medicare
appear to have hampered access to         the funds.                                 beneficiaries.
services. To avoid large-scale closure
of facilities, however, the Food and      HEHS-96-19, Nov. 17, 1995 (40              HEHS-96-21, Nov. 8, 1995 (24 pages).
Drug Administration settled on an         pages). VA Health Care: Effects of         Medicare Managed Care: Growing
approach that allowed some delay in       Facility Realignment on Construction       Enrollment Adds Urgency to Fixing
meeting the certification require-        Needs Are Unknown.                         HMO Payment Problem.
ments. For this and other reasons,
such as the availability of outcome       As part of the fIScal year 1996 budget,    Enrollment of Medicare beneficiaries
data, more time will be needed before     tile President requested $524 million      in health maintenance organizations
                                          for m~or construction projects at the      (HMO) has soared in recent years,




GAO/OIMC-97-1A Subject Index              Page 56
concentrated in some states and          Since the 1940's, the Department of        ing Asian-Americans who applied for
locales. This rapid growth in enroll-    Veterans Affairs (VA) and its prede-       or were enrolled in postsecondary
ment highlights the urgency of cor-      cessor agencies have contracted with       schools-mainly colleges and univer-
recting Medicare's excessive payment     state approving agencies to assess         sities.
rates to HMOs-particularly in certain    whetller schools and training pro-
areas. Ukewise, enrollment stagnation    grams offer classes of sufficient          HEHS-96-24, Dec. 21, 1995 (14
elsewhere underscores the need to        quality to merit VA education assis-       pages). VA Health Care: Trends in
examine the causes of payment rate       tance benefits. GAO estimates that         Malpractice Claims Can Aid in
disparities among states and counties.   $lO.5 million of the $12 million paid to   Addressing Quality of Care Problems.
Medicare's HMO payment method is         these agencies in 1994 was spent to
plagued by three flaws. First, the       do assessments that overlapped those       From fiscal year 1990 to fiscal year
rigidity of the formula-based fixed      of the Department of Education.            1994, malpractice claims against VA
payment rate does not allow Medicare     These assessments involved reviews         medical centers have steadily in-
to capitalize on the competition         of academic and vocational schools         creased, from 678 to 978, with pay-
among HMOs that, in the private          that were already accredited by            ments made to claimants totaling
market, leads to lower rates. Second,    Education-approved agencies. State         more than $200 million. In 1992, the
rate adjustment for differences in       approving agency efforts costing           Department of Veterans Affairs (VA)
benefIciaries' health status are so      another $400,000 in 1994 may have          entered into an agreement with the
imprecise that Medicare overpays         overlapped assessments of appren-          Armed Forces Institute of Pathology
HMOs that enroll beneficiaries in        ticeship programs done by the Depart-      (AFIP) to analyze trends in VA
good health. Third, the reliance on a    ment of Labor. The continued use of        malpractice clainls. VA's quality
country's fee-for-service health care    state approving agencies to do assess-     assurance staff, however, are making
costs to establish a payment rate        ments that overlap other assessments       only limited use of the information
produces rates that vary considerably    does not appear to be a good use of        being developed by AFIP. Although
within market areas. GAO concludes       scarce federal dollars. GAO suggests       malpractice claim information is
that a sensible approach would be to     restricting state approving agency         available from the Defense Depart-
pursue three promising strategies        activity solely to those school and        ment, it is not comparable to the
concurrently-foster price competi-       programs not subject to "gatekeeping"      malpractice data that VA collects. The
tion among HMOs, improve risk            by the Department of Education.            main reason for the lack of compara-
adjusters' accuracy, and allow for                                                  bility is the absence of a standard data
adjustments in the current formula to    HEHS-96-23, Dec. 11, 1995 (53              collection format. Nonetheless, GAO
reflect market competition and HMO's     pages). Department of Education:           found that DOD information may be
local health care costs. The Health      Efforts by the Office for Civil Rights     useful to VA to draw comparisons in
Care Financing Administration            to Resolve Asian-American Com-             areas in which malpractice claims are
(HCFA) plans demonstration projects      plaints.                                   being generated, such as incidents
using competitive bidding and im-                                                   related to surgery, diagnosis, and
proved risk adjustment but results of    As with many other federal agencies        medication.
a full-scale evaluation of these         responsible for enforcing civil rights
projects are years away. In the          and equal employment opportunity           HEHS-96-26, Nov. 13, 1995 (59
interim, HCFA should promptly gather     laws, in recent years the discrimina-      pages). Ryan White Care Act of 1990:
and use valuable design and imple-       tion complaint workload of the             Opportunities to Enhance Funding
mentation data as it become available.   Education Department's Office for          Equity.
HCFA's legislative authority to carry    Civil Rights has increased, but its
out these projects does not address      staffing has remained level. In the        GAO's analysis of existing funding
managed care options explicitly,         early 1990s, compared with the 1980s,      formulas demonstrates that federal
which raises questions about HCFA's      the number of compliance reviews fell      funding under the Ryan White Care
authority to mandate HMO participa-      and the average time to resolve            Act can be made more equitable. An
tion in the projects.                    complaint investigations and com-          important goal of the act was to target
                                         plete reviews rose. As a result,           emergency funding to areas of great-
HEHS-96-22, Oct. 30, 1995 (21            concerns have been raised about how        est need. At the time the law was
pages). VA Student Financial Aid:        effectively the Office for Civil Rights    enacted, high rates of human immuno-
Opportunity to Reduce Overlap in         carries out its duties. This report        deficiency virus (HIV) infection were
Approving Education and Training         examines the Office's complaint            found in fewer areas of the country,
Programs.                                investigations and compliance re-          service delivery networks were just
                                         views of discrimination cases involv-      beginning to form, and these service



                                         Page 57                                             GAO/OlMC-97-1A Subject Index
delivery systems had to rely primarily      HEHS-96-28, Nov. 24, 1995 (59              federal health care policies that
on private and volunteer resources.         pages). National Health Service            reduce hospitals' revenues will affect
During the past five years, however,        Corps: Opportunities to Stretch            hospitals participating in the program.
the HIV epidemic has become more            Scarce Dollars and hnprove Provider        Although FHA estimated its loan loss
widespread and less localized. Hence,       Placement.                                 reserve at nearly $460 million as of
areas where the AIDS caseload had                                                      September 1994, this is not a reliable
burgeoned recently need per-case            The National Health Service Corps          measure of program losses because of
funding levels comparable to those in       (NHSC) places physicians and other         methodology limitations. The implica-
areas where AIDS was initially              health care providers in underserved       tions of health care trends for pro-
concentrated.                               areas in exchange for scholarships or      gram hospitals were not factored into
                                            loan repayments for medical training.      FHA's methodology for estimating
HEHS-96-27, Nov. 28, 1995 (29               In recent years, funding for NHSC          potential loan losses. In addition,
pages). School Facilities: States'          scholarships and loan repayments has       FHA·s approach to determining
Financial and Technical Support             soared nearly 10·fold, from about $8       default and loss rate assumptions was
Varies.                                     million in fLSCal year 1989 to nearly      unreliable. FHA did not consider the
                                            $80 million in fiscal year 1994. This      full loss exposure in estimating
Although local governments have             report (1) compares the costs and          reserves for hospitals that it had
traditionally been responsible for the      benefits and the NHSC scholarship          identified as having high default
construction, renovation, and mainte-       and loan repayment programs and (2)        probabilities. As a result of these
nance of America·s school facilities,       determines whether NHSC has                flaws, the loan loss reserve estimate
most state education agencies have          distributed available providers to as      could be understated or overstated
established a state presence in school      many eligible areas as possible. GAO
facilities matters using a variety of       concludes that the loan repayment          HEHS-96-30, Mar. 19, 1996 (44
approaches. However, states' level of       programs offers a better long·term         pages). FDA Laboratories: Magnitude
involvement varied: about one-fourth        investment of limited federal dollars.     of Benefits Associated With Consoli-
of them had programs that included          GAO also found that some areas             dation Is Questionable.
ongoing funding assistance, a variety       receive more doctors and other health
of technical assistance and compli-         providers than needed while other          Because many of the Food and Drug
ance review activities, and data            areas suffer shortages of requested        Administration's (FDA) 18 testing
collection on facility condition. 10        medical personnel.                         laboratories across the country are
states were involved in one or none of                                                 old and need repair. FDA plans to
the activities. Further, officials          HEHS-96-29, Feb. 27, 1996 (50              replace old labs with five "megalabs"
reported differing viewpoints and           pages). FHA Hospital Mortgage              and four special-purpose facilities.
traditions on state involvement in          Insurance Program: Health Care             GAO found, however, that projected
facilities matters. Such variations in      Trends and Portfolio Concentration         cost savings of about $91 mil1ion may
approach and philosophy among               Could Affect Program Stability.            be based on assumptions that inflate
states illustrate the lack of consensus                                                the cost of replacing the existing labs.
on the most appropriate and effective       The Federal Housing Administration's       Moreover, current FDA workload data
state role. Today, state involvement in     (FHA) Hospital Mortgage Insurance          indicate that medium·sized labs-
school facilities remains in flux.          Program insures loans to finance           those having about 50 analysts per
Because the physical condition of           hospital renovation and construction.      lab-are more efficient and effective
school buildings has become a               FHA mortgage insurance protects            than existing larger labs. In selecting
concern in school [mance equity             lenders against losses they might          sites for its megaJabs, FDA did little
litigation, experts expect disparities in   incur if hospitals fail to make their      analysis of the relative efficiency of
facilities to be a continuing a pressing    mortgage payments. Although the            alternative sites. FDA placed little
issue. States will likely be looked to      hospital program had made a positive       emphasis on such factors as proximity
for ways to lessen these disparities.       dollar contribution to the General         to ports of entry and quantity of
State governments, however, face            Insurance Fund as of fiscal year 1994,     nearby food and other relevant
pressure from other rapidly rising          the accumulation of more than $4           businesses. Instead, FDA site selec·
budget expenditures, such as health         billion worth of insured projects and      tions were based mainly on where it
care, that compete for the same             the large loan amounts in New York         thought it would receive congres·
limited funds.                              threaten the program's stability. The      sional funding approval.
                                            continued buildup in New York may
                                            exacerbate this risk. Further, trends in
                                            health care and changes in state and



GAOIOIMC-97-1A Subject iJ,dex                Page 58
HEHS-96-31, Dec. 20, 1995 (22              mortality rate for new patients             HEHS-96-35 , Jan. 18, 1996 (51
pages). VA Health Care: How Dis-           decreased. For example, deaths              pages). Health Insurance for Chil-
tance From VA Facilities Affects           among beneficiaries during the first        dren: State and Private Programs
Veterans' Use of VA Services.              year in the program fell from 28            Create New Strategies to Insure
                                           percent to 24 percent berween 1982          Children.
Living within five miles of a VA           and 1991. Since the program began in
Hospital or outpatient clinic signifi-     1973, technological advances and            In the mid-1980s, state and private
cant increases the likelihood that a       greater availability of kidney dialysis     groups began developing health
veterans will use VA health care           machines have meant that persons            insurance programs to increase health
services. Although most veterans live      who were not considered good                care coverage for children. By 1995,
within 25 miles of a VA hospital or        candidates for kidney dialysis in           14 states and upwards of 24 private-
outpatient clinic, use of VA facility      1973--tllOse 65 years old or older and      sector organizations offered such
declines significantly among veterans      those w hose kidney failure was             programs. The number of children
living more than five miles from a VA      caused by diabetes and hyperten-            enrolled in the six programs GAO
facility. Only about 11 percent of         sion-are now routinely placed on            visited ranged from 5,000 to more
veterans live within five miles of a VA    dialysis. GAO's review of medical           than 10,000. Unlike state Medicaid
Hospital providing acute medical and       services and supplies provided to all       programs, which operate as open-
surgical care and 17 percent within        Medicare end-stage renal disease            ended entitlements funded partly by
five miles of a VA outpatient clinic.      patients in 1991 shows that no sepa-        the federal government, these pro-
Use of VA health care services does        rately billable service or supply was       grams operated within fIXed and often
not decline with distance as rapidly       provided often enough to make it a          limited budgets and were funded by
among veterans receiving VA compen-        good candidate to be considered part        various sources, such as dedicated
sation or pension payments. Even           of the standard dialysis treatment and      state taxes and private donations.
those veterans with service-connected      thus included in a future composite         Limited budgets forced five of the six
disability who live more than 100          rate.                                       programs to cap enrollment at times
miles from a VA outpatient clinic are                                                  and to place eligible children on
more likely to avail themselves of VA      HEHS-96-34, Mar. 6, 1996 (96 pages).        waiting lists. The programs used
outpatient services than are higher        At-Risk and Delinquent Youth: Mul-          several strategies to control costs.
income veterans with nonservice-           tiple Federal Programs Raise Effi-          Some limited the services covered,
connected disabilities who live within     ciency Questions.                           while others resorted to patient cost-
five miles of a VA outpatient clinic.                                                  sharing through premiums and
Other factors that may contribute to       The federal government now runs 131         copayments or enrolled children in
differences in the use of VA services      programs in 16 agencies to benefit          managed care. Most of the programs
include broader eligibility and entitle-   delinquent youth. Many of the pro-          operated, at least partially, through
ment to outpatient care for service-       grams GAO has examined provide a            nonprofit or private insurers, which
connected and low-income veterans,         range of services-from counseling to        allowed the programs to use existing
veterans' ages, and differences in         job training to research and evalua-        provider payment systems and
available resources.                       tion. The services most commonly            physician networks and to offer near-
                                           authorized are substance abuse              market reimbursement rates-
HEBS-96-33 , Nov. 22, 1995 (16             interve ntion and training and techni-      features that appealed to insurers and
pages). Medicare: Enrollment Growth        cal assistance. Many programs also          providers. For patients, the programs
and Payment Practices for Kidney           have multiple target groups, ranging        guaranteed access to a provider
Dialysis Services.                         from poor youth to abused and               network, had simple enrollment
                                           neglected youth to school dropouts.         procedures, and tried to avoid the
Medicare is the predominant health         The current system of federal pro-          appearance of a welfare program.
care payer for people with end-stage       grams for at-risk or delinquent youth       Moreover, children in these programs
renal disease-permanent and irre-          creates the potential for overlap of        appeared to gain greater access to
versible loss of kidney function.          services. GAO identifies many in-           health care.
Medicare's cost for this program has       stances of rwo or more programs'
increased, mainly because of the           offering similar services to the same       HEHS-96-38, Apr. 30, 1996 (38
substantial increase in new program        target groups, raising questions about      pages). Public Pensions: Section 457
beneficiaries enrollees. The average       the overall efficiency of federal efforts   Plans Pose Greater Risk Than Other
annual rate of increase averaged 11.6      to help these youngsters.                   Supplemental Plans.
percent berween 1978 and 1991. In
addition to the rise in enrollment, the



                                           Page 59                                              GAO/OlMC-97-1A Subject Index
Millions of state and local government    disparities in educational funding.        continue to expand these public and
employees are trying to increase their    This repolt also presents advice           private partnerships, little is Imown
future retirement benefits by deferring   provided by state officials for other      nationally about such efforts. This
some of their wages to supplement         states reforming their school finance      fact sheet discusses (1) the extent of,
pension plans, Imown as salary            systems.                                   rationale for, and perceived advan-
reduction arrangements or plans. The                                                 tages and disadvantages of privatizing
amount deferred or contributed to         HEHS-96-40, Mar. 4, 1996 (36 pages).       child SUPPOIt functions; (2) the terms
these plans, however, may be at risk.     Job Training Partnership Act: Long-        of these contracts; (3) the legal issues
Recent media stories have recounted       Term Earnings and Employment               surrounding privatization; and (4)
instances of imprudent investment,        Outcomes.                                  what is Imown about the cost-effec-
improper use of plan funds by spon-                                                  tiveness of these effolts.
sors, and possible seizure of plan        The federal government spends
funds by sponsoring govemments'           billions of do llars annually to SUPPOIt   HEHS-96-44, Nov. 8, 1995 (84 pages).
creditors. This repolt examines the       employment training programs, but          Medicaid Section 1115 Waivers:
risks of fmancialloss inherent in such    little is Imown about their long-term      Flexible Approach to Approving
plans and discusses whether the           effect on participants' earnings and       Demonstrations Could Increase
provisions of such plans treat partici-   employment rates. GAO analysis             Federal Costs.
pants comparably.                         found some positive effectS of the Job
                                          Training Partnership Act-the corner-       Several states have been given
HEHS-96-39, Dec. 19, 1995 (54             stone of the federal employment            waivers allowing them to use savings
pages). School Finance: Three States'     training effolt-in the years immedi-       from managed care Medicaid pro-
Experiences With Equity in School         ately following training. However,         grams to cover additional beneficia-
Funding.                                  neither employment rates nor earn-         ries. GAO found that country to
                                          ings were significantly higher for         assertions that such waivers would be
Since the 1960s, the federal govern-      participants than for nonparticipants      "budget neutral," most of them could
ment has targeted educational funds       five years after training. In some         increase federal Medicaid expendi-
to areas with the greatest need. More     earlier years, adults (but not youth)      tures. Specifically, approved spending
recently, the federal government has      who received training had earnings or      limits for demonstration waivers in
also encouraged states and localities     employment rates significantly higher      Oregon, Hawaii, and Florida could
to develop high academic standards        than those of the control group. By the    boost federal Medicaid outlays. Only
for all school-age children. The          fifth year, each of the four treatment     Tennessee's 115 waive agreement
system used to finance local schools      groups had earnings and employment         should cost no more than the continu-
in each state can affect whether          rates that were nominally higher than      ation of its smaller, prewaiver pro-
students in all districts can reaJisti-   those of the control group. Because        gram and, in fact, should yield sav-
cally achieve such Standards. In most     none of the fifth-year differences were    ings. Federal Medicaid spending could
states, these systems rely heavily on     statistically significant, however, GAO    rise significantly if the administration
local property wealth, which can vary     could not attribute the higher earnings    continues to show a similar flexibility
greatly from district to district Since   to training provided under the act         in reviewing state 1115 financing
1989, more than half of the states have   rather than to chance alone.               strategies. Five waivers have been
been involved in lawsuits alleging that                                              approved since Florida's in late 1994,
disparate access to education rev-        HEHS-96-43FS, Nov. 20, 1995 (13            and the large backlog of pending
enues violated the state's responsibil-   pages). Child Suppolt Enforcement:         waivers includes three states with
ity to provide for the education of all   States and Localities Move to              large Medicaid programs-New York,
students. GAO reviewed the experi-        Privatized Services.                       lJIinois, and Texas. Additional federal
ences of three states-Tennessee,                                                     dollars are available along with other
Texas, and Minnesota-that had             Facing budgetarY and staffmg con-          funding sources identified in state
recently reforms their fmance systems     straints and increasing federal perfor-    waiver applications. GAO believes
to make them more equitable. For          mance standards, state child suppolt       that the potential for additional
each state, GAO characterizes ( I) the    enforcement programs are struggling        federal funding sources as a hedge
reforms to the school fmance systems      to serve their ever-increasing             against the many unceltainties states
and the legal, budgetarY, and political   caseloads. As states strive to improve     face in implementing these ambitious
pressures the legislature faced in        their services to the public, many are     demonstrations-including changing
making the changes and (2) the            turning to the private sector to           economic conditions, the accuracy of
general impact of the legislative         augment their child SUPPOIt enforce-       cost-containment assumptions, the
remedy, especially in addressing          ment programs. Although states             availability of anticipated funding




GAO/OlMC-97-1A Subject Index              Page 60
cited in waiver applications, and the    population is declining, some veterans      dures. For each of the six groups,
lack of reliable cost data on the        have relocated from the Northeast and       more than half of the 17 contractors
uninsured.                               the Midwest to southern and south-          failed to use automated screens to
                                         western states in the past decade,          flag claims for unnecessary, inappro-
HEHS-96-45, Nov. 9, 1995 (26 pages).     offsetting veteran deaths in these          priate, or overused treatments. These
Pharmacy Benefit Managers: Early         states. VA has tried for years to           prepayment screens could have saved
Results on Ventures With Drug            implement an equitable resource             millions of taxpayer dollars now
Manufacturers.                           allocation method-one that would            wasted on questionable services.
                                         link resources to facility workloads        Problems with controlling payments
Some of the largest drug companies       and foster efficiency. The need for         for widely overused procedures
have recently merged or formed           such a system has become more               continue because the Health Care
alliances with some of the largest       urgent in recent years because of the       Financing Administration (HCFA)
companies that manage prescription       demographic shift in veterans and the       lacks a national strategy to control
drug benefits for health plans, called   dranlatic changes in health care            these payments. HCFA now relies on
pharmacy benefit managers. The           resulting from increasingly limited         contractors to focus on procedures
ventures gained immediate attention      resources. The resource allocation          where local use exceeds the national
from industry observers not only         system can help VA achieve this goal        average. Although this approach helps
because of their size but also because   by forecasting workload changes and         reduce local overuse of some proce-
of concerns about their effect on        providing comparative data on               dures, it is not designed to control
competition in markets for drug          facilities' costs. Nonetheless, VA has      overuse of a procedure nationwide.
manufacturers' products and phar-        not taken steps to overcome several         GAO summarized this report in
macy benefit managers' services. This    barriers that can prevent it from           testimony before Congress; see:
report discusses the role of pharmacy    acting on the data the system pro-          Medicare: Mi\lions Can Be Saved by
benefit managers in the health care      duces. If the system is to live up to its   Screening Claims for Overused
industry, the objectives of these        potential, several changes must be          Services, by Sarah F. Jaggar, Director
ventures, and specific concerns about    made, including linking resource            of Health Financing and Public Health
the effectiveness of these ventures on   allocation to VA's strategic plan,          Issues, before the Subcommittee on
competition in the markets served by     conducting a formal review and              Human Resources and Intergovern-
drug companies and pharmacy benefit      evaluation of facility cost variations,     mental Relations, House Committee
managers. GAO concludes that some        evaluating the basis for not allocating     on Government Reform and Over-
mergers between drug man ufacturers      funds through resource planning and         sight. GAOIT-HEHS-96-86, Feb. 8 (16
and pharmacy benefit managers            management, and using resource              pages).
warrant continued monitoring by the      planning and management to over-
Federal Trade Commission to ensure       come differences in veterans' access        HEHS-96-51, Feb. 28, 1996 (62
that the pharmacy benefit managers       to care.                                    pages). PASS Program: SSA Work
do not give their manufacturing                                                      Incentive for Disabled Beneficiaries
partners an unfair advantage by          HEHS-96-49, Jan. 30, 1996 (28               Poorly Managed.
including their products on lists of     pages). Medicare: Millions Can Be
preferred drugs that they cover and      Saved by Screening Claims for Over-         The Social Security Administration
excluding those of competing firms.      used Services.                              (SSA) is poorly managing a small but
                                                                                     growing program to encourage
HEHS-96-48, Feb. 7, 1996 (64 pages).     Medicare contractors routinely pay          disability beneficiaries to seek
Veterans' Health Care: Facilities'       hundreds of millions of dollars in          employment The ·plan for achieving
Resource Allocations Could Be More       Medicare claims without first deter-        seif-suppon" (PASS) program, estai>-
Equitable.                               mining if the services provided are         lished in 1972, is currently small-
                                         necessary. GAO reviewed payments to         only about 10,300 persons participated
The Department of Veterans Affairs       doctors for six groups of high-volume       in December 1994-but the number of
(VA) confronts the challenge of          medical procedures-ranging from             participants has swelled more than
equitably allocating more than $16       eye examinations to chest x-rays-           fivefold during the past five years as
billion in health care appropriations    that accounted for nearly $3 billion in     awareness of the program has in-
across a nationwide network of           Medicare payments in 1994. GAO also         creased, and millions more disabled
hospitals, clinics, and nursing homes.   surveyed 17 contractors to determine        beneficiaries have become eligible to
The challenge is made greater by the     if they had used medical necessity          participate. The PASS program is
changing demographics of veterans.       criteria in their claims processing to      vulnerable to abuse because of vague
Although nationally the veteran          screen for these six groups of proce-       guidelines, and its impact on employ-



                                          Page 61                                             GAOIOIMC-97-1A Subject index
ment is unlmown because SSA does           paying jobs outside the home; today,        pension plans in the Public Pension
not collect basic data on participants     about 60 percent of married women           Coordinating Council survey were
and their employment In addition,          are paid workers. Despite the move-         underfunded; 38 percent were less
SSA top management has not ad-             ment of women into the labor market,        than 80 percent funded. Sponsors of
equately considered the potential          the social security benefit structure       slightly more than half of the plans in
problems posed by professional PASS        has remained essentially unchanged          the survey made contributions on
preparers, whose fees--as much as          over the years. The fairness of the         schedule to payoff any unfunded
$80O-are often included as PASS            benefit structure has come under            liability. One-third of the pension
expenses. SSA is trying to address         increasing scrutiny, especially as it       plans, however, were underfunded in
some of these internal control weak-       affects women who have earned               1992 and were not receiving the
nesses, but it cannot guarantee today      benefits in their own right. For            actuarially required sponsor contribu-
that taxpayer dollars are being well       example, a two-earner couple will           tions. Of all plans with complete data,
spent.                                     receive lower combined benefits in          one-fifth were underfunded and were
                                           retirement than an identical one-           not receiving full contributions in both
HEBS-96-52, Feb. 6, 1996 (29 pages).       earner couple. Also, a married woman        1990 and 1992.
VA Health Care: Exploring Options to       who works and pays social security
Improve Veterans' Access to VA             taxes might not, because of the dual        HEHS-96-58W, Nov. 1, 1995 (32
Facilities.                                entitlement limitation, receive higher      pages). Health, Education, Employ-
                                           benefits than if she had never worked       ment, Social Security, Welfare, and
Since its creation in 1930, the Depart-    and received only a spousai benefit         Veterans Reports.
ment of Veterans Affairs' (VA) health      Several proposals seek to remedy
care system has become one of the          these inequities. These include two         This booklet lists GAO documents on
nation's largest networks of direct        broad proposals-" earnings sharing"         government programs related to
delivery health care providers, with       and a "double-decker" plan-and              health, education, employment, social
173 hospitals and 376 outpatient           several more-narrow proposals, such         security, welfare, and veterans issues,
clinics nationwide. But because public     as reducing spousal benefits. None of       which are primarily run by the Depart.
and private health insurance progranlS     the measures has been adopted,              ments of Health and Human Services,
have also grown, most veterans now         however, partly because they would          Labor, Education, and Veterans
have alternatives to VA health care.       either boost program costs or reduce        Affairs. One section identifies reports
Many veterans indicate that they use       benefits for some beneficiaries. Their      and testimony issued during the past
private providers because they live        enactment could also impose a large         month and summarizes key products.
too far from VA hospitals or outpa-        administrative burden on the Social         Another section lists all documents
tient clinics. VA has recently encour-     Security Administration.                    published during the past year,
aged its facilities to improve veterans'                                               organized chronologically by subject.
access to VA health care. This repon       HEHS-96-56, Mar. 14, 1996 (17               Order forms are included.
discusses (1) characteristics of recent    pages). Public Pensions: State and
users of VA medical facilities; (2) the    Local Government Contributions to           HEHS-96-62, Apr. 24, 1996 (84
geographic accessibility of VA and         Underfunded Plans.                          pages). SSA Disability: Program
private medical facilities that provide                                                Redesign Necessary to Encourage
standard benefits; and (3) options that    State and local governments with            Rerum to Work.
VA facilities might want to consider to    underfunded pension plans risk tough
improve the accessibility of VA health     budget choices in the future if they do     During the past decade, the number of
care, such as locating new medical         not make progress toward full fund-         persons receiving benefits from Social
facilities closer to where veterans live   ing. Their taxpayers will face a            Security's Disability and Supplemental
and contracting with private provid-       liability for benefits earned by current    Security income progranlS increased
ers.                                       and former government workers,              70 percent because of program
                                           forcing these governments to choose         changes and economic and demo-
HEHS-96-55, Apr. 10, 1996 (63              between reducing future pension             graphic factors . These programs,
pages). Social Security: Issues            benefits or raising taxes. Funding of       which provide assistance to persons
Involving Benefit Equity for Working       state and local pension plans has           with disabilities until they return to
Women.                                     improved significantly since the            work, if that is possible, provided $53
                                           1970s. After adjusting for inllation, the   billion in cash benefits to 7.2 million
When the social security program was       anlOunt of the unfunded liability has       people in 1994. Advances in technol-
established in the 1930s, less than 15     been cut in half. Still, in 1992, 75        ogy, such as standing wheelchairs and
percent of married women held              percent of state and local government       synthetic voice systems, and the



GAO/OIMC-97-lA Subject Index               Page 62
medical management of some physi-        billion to provide a range of service to   The U.S. medical device industry has
cal and mental disabilities have         preschool-aged children from poor          urged giving private third parties a
allowed some persons to work.            families. Today, about 1,400 local         role in the re';ew of medical devices,
Moreover, there has been a greater       agencies, known as grantees, sponsor       and the Food and Drug Administration
trend toward inclusion of and partici-   these programs and serve 752,000           is e>.-ploring this possibility in a pilot
pation by people with disabilities in    children. Local programs provide           projecL Ensuring that private review-
the mainstream of society. Yet both      education, nutrition, health, and social   ers were independent, had the requi-
programs have done little to identify    services to low-income children and        site expertise, and had sufficient
recipients who might benefit from        opportunities for parental involve-        resources would strengthen the
rehabilitation and employment            ment and enrichment. Since 1990,           confidence of Congress and the public
assistance and ultimately return to      Congress has boosted Head Start            in the integrity of the device review
work.                                    funding by 135 percent to enable more      process. Such assurances would carry
                                         children to participate and to improve     even more weight if private review
HEHS-96-63,   Jan.18, 1996 (35           the quality of services. However,          organizations were given the added
pages). Medicare HMOs: Rapid             some Head Start grantees, as ex-           authority to clear new devices for
Enrollment Growth Concentrated in        pected, did not spend all of the funds     marketing.
Selected States.                         awarded to them each year and
                                         carried this unspent money forward         HEHS-96-68, Mar. 15, 1996 (17
Private-sector insurers cite extensive   for use in subsequent years. This          pages). Veterans' Health Care: VA's
use of health maintenance organiza-      report discusses (1) the amount of         Approaches to Meeting Veterans'
tions (HMO) and other managed care       Head State funding unspent by              Home Health Care Needs.
approaches as a key factor in slowing    program grantees at the end of budget
the growth of their insurance premi-     years 1992, 1993, and 1994 and the         In fiscal year 1994, the Department of
ums. As a result, part of the current    reasons for these unspent funds; (2)       Veterans Affairs (VA) provided home
interest in controlling Medicare costs   the proportion of carryover funds that     health care to more than 40,000
has centered on ways to increase         was added to grantee awards or that        veterans at a cost of $64 million to VA
HMO use among Medicare beneficia-        offset grantee awards in subsequent        and millions more to Medicare. By
ries. This report provides information   years; (3) the proportion of carryover     providing them with home health
on trends in the number of (1) Medi-     funds that are one or more grantee         care, VA allows these veterans to
care beneficiaries enrolling in HMOs     budget years old; and (4) the grantees'    continue Uving at home and in their
and (2) HMOs enrolling beneficiaries.    intended use of carryover funds.           commWlities, rather than receive care
GAO analyzes this data for factors                                                  in institutions. Veterans may need
that might be influencing decisions by   HEHS-96-65, Mar. 6, 1996 (42 pages).       home health care for various reasons.
HMOs to enroll Medicare beneficia-       Medical Device Regulation: Too Early       Some veterans may have chronic
ries and decisions by beneficiaries to   to _-'\ssess European System's Value as    health problems, such as heart
enroll in HMOs. GAO found that about     Model for FDA.                             disease, and require periodic visits,
2.8 million Medicare beneficiaries-                                                 while others may be discharged from
about seven percent of the total-        The European Union's (EO) system           VA meclicai centers following surgery
were enrolled in risk-contract HMOs      for regulating medical devices is not      and need dressings changed or
as of August 1995. This was double       only new-it is not yet fully in place.     medications administered The
the percentage enrolled in 1987. The     Therefore, it is too early to evaluate     number of veterans needing home
growth has been particularly rapid       its success in ensuring the safety of      health care is expected to grow as the
during the past four years and has       medical devices and bringing them to       veteran population ages and as VA
centered on certain states. California   market efficiently. Because the major      discharges patients from its hospitals
and Florida, for example, have more      players in the EU system have not had      to reduce the costs of hospitalization.
than half of all enrollees.              enough time to establish a track           This report provides information on
                                         record, it will be some time before        ( 1) the characteristics and the ser-
HEHS-96-64, Dec. 29, 1995 (30            important questions about the new          vices of the home health care pro-
pages). Head Start: Information on       system can be answered. U.S. govern-       grams that VA uses, (2) the available
Federal Funds Unspent by Program         ment officials who want to consider        data on program costs, and (3) the
Grantees.                                integrating features of the EU ap-         way in which VA ensures that veter-
                                         proach into the U.s. device review         ans receive quality service.
In flScal year 1995, Head Start-the      systenl will be better able to judge the
centerpiece of federal early childhood   merits of the EU system after it has
programs-was appropriated $3.5           been in operation for several years.




                                         Page 63                                             GAO/OIMC-97 -lA Subject Index
HEHS-96-69W, Dec. 1, 1995 (38             cludes that the technology tested in      revealed breakdowns in the protection
pages). Health, Education, Employ-        the demonstration projects has the        of human subjects in government
ment, Social Security, Welfare, and       potential to further SSA's public         research. Questions have been raised
Veterans Reports.                         service goals. Public reaction and the    about whether study participants
                                          effect on operations, however, will       understood what they would be
This booklet lists GAO docwnents on       need to be considered as SSA weighs       subjected to and had an adequate
government programs related to            the costs and the benefits of this        opportunity to decline to participate.
health, education, employment, social     technology.                               GAO found that better oversight of
securityJ welfare, and veterans issues,                                             tens of thousands of research projects
which are primarily run by the Depart-    HEHS-96-71 , Apr. 5, 1996 (16 pages).     funded by the Department of Health
ments of Health and Hwnan Services,       European Union Drug Approval:             and Human Sexvices and drug studies
Labor, Education, and Veterans            Overview of New European Medicines        regulated by the Food and Drug
Affairs. One section identifies reports   Evaluation Agency and Approval            Administration appears to have
and testimony issued during the past      Process.                                  reduced the likelihood of serious
month and summarizes key products.                                                  abuses of hwnan subjects. The
Another section lists all docwnents       With a population of 370 million, the     conspicuous activity of local institu-
published during the past year,           European Union (EU) represents a          tional review boards and hwnan
organized chronologically by subject.     conswner base that is one-third larger    subject protection efforts by federal
Order forms are included                  than that of the United States. More-     agencies have heightened the research
                                          over, the EU leads the world in the       community's awareness of ethical
HEHS-96-70, Feb. 23, 1996 (23             conswnption of pharmaceutical             conduct standards, increased compli-
pages). Social Security: Telephone        products--nearly $83 billion worth in     ance with federal regulations, and
Access Enhanced at Field Offices          1992. The EU recently changed its         served as deterrents to abuse of
Under Demonstration Project.              drug approval procedures and created      subjects' rights and welfare. However,
                                          a new agency-the European Medi-           little data exist that directly measure
The Social Security Administration        cines Evaluation Agency-to approve        the effectiveness of hwnan subject
(SSA) runs a nationwide toll-free         drugs more quickly and efficiently.       protection regulations. At the same
telephone nwnber and is testing           Advocates of refonning the Food and       time, no practical level of oversight
enhanced local office telephone           Drug Administration (FDA) have            can guarantee that each researcher
sexvice at selected offices. Beginning    suggested that the new European           will protect subjects with complete
in February 1995, SSA began installing    model may provide helpful lessons for     integrity. Time, resource, and other
new telephone equipment, called           improving the timeliness of FDA drug      pressures threaten to reduce the
automated attendant and voice mail,       approvals. This report (1) determines     effectiveness of local review board
at 30 of its 800 nationwide field         how the EU now reviews and ap-            and federal agency oversight. As a
offices that list their phone nwnbers     proves new drug applications and (2)      result, continued vigilance over
in local telephone directories. The       explains why the European Medicines       hwnan subject research must remain
equipment was installed in different      Evaluation Agency was established,        a priority for the research community
configurations. Telephone access--        how it operates, and how it is fi-        and the oversight agencies. GAO
calls reaching an SSA employee with       nanced. GAO notes that because the        swnmarized this report in testimony
the caller spending less than two         EU system has been up and running         before Congress; see: Scientific
minutes on hold-improved 23               for only a year, it is too soon to know   Research: Continued Vigilance
percent under one of the configura-       whether it will enable drug companies     Critical to Protecting Hwnan Subjects,
tions being tested by SSA In addition,    to more quickly market their products     by Sarah F. Jaggar, Director of Health
busy signals dropped by more than 55      throughout Europe.                        Financing and Public Health Issues,
percent. Staffing, however, did not                                                 before the Senate Committee on
increase, and many callers reaching       HEHS-96-72, Mar. B, 1996 (43 pages).      Governmental Affairs. GAOII'-HEHS-
SSA did spend some time on hold           Scientific Research: Ccntinued            96-102, Mar. 12 (nine pages).
before reaching an SSA representa-        Vigilance Critical to Protecting
tive. SSA field office staff viewed the   Human Subjects.                           HEHS-96-73, Dec. 29, 1995 (34
installation of voice mail equipment at                                             pages). School Facilities: Accessibil-
their desks as having a very positive     Experiments ranging from the 40-year      ity for the Disabled Still an Issue.
effect on office efficiency and public    Tuskegee study, in which treatment
service. SSA has not yet completed its    was withheld from black men with          The requirement that the programs
two internal evaluations of the           syphilis, to the recently disclosed       and activities of schools receiving
demonstration project. GAO con-           Cold War radiation experiments have       federal fmancial assistance be acces-



GAOIOIMC-97-1A Subject Index              Page 64
sible to the disabled has been in force     amount of money the schools spend         of resources transferred, however, is
for two decades. Yet no comprehen-          on their special education programs,      likely to be larger than GAO's esti-
sive nationwide study has been done         (2) the number of special education       mate because the Social Security
or is planned to evaluate schools'          students who live in areas lacking a      Administration (SSA) is not required
accessibility to the disabled Mean-         DOD Dependents School with the            to verify the accuracy of resource
while, passage of the Americans With        resources to meet the students' needs     transfer information, which is self-
Disabilities Act-although not chang-        and the cost to meet their needs          reported by individuals. Moreover,
ing the accessibility requirements for      another way, and (3) the number of        because the information is self-
schools from the earlier law-has            special education students who are        reported, SSA is unlikely to detect
underscored the need to improve             sent to schools outside the DOD           unreported transfers. Without a
accessibility. More than half of            Dependents School system because          transfer-of-resource restriction,
schools nationwide reported having          no DOD Dependents School is nearby        Supplemental Security Income
spent $1.5 billion during the last three    to meet their needs and the cost to do    recipients who transferred assets to
years on accessibility. Only about 20       so.                                       qualify for benefits would receive
percent of schools indicated that such                                                nearly $8 million in benefits in the 24
spending was not needed. A total of         HEHS-96-78W, Jan. I, 1996 (46             months after they transferred re-
56 percent of all schools estimated         pages). Health, Education, Employ-        sources. Many of these recipients
that they will need an additional $5.2      ment, Social Security, Welfare, and       could also have received Medicaid
billion for accessibility in the next       Veterans Reports.                         acute-care benefits at an annual value
three years. Only about 26 percent of                                                 of between $2,800 and $5,300 per
schools reported that such spending         This booklet lists GAO documents on       recipient. GAO estimates that from
will not be needed. At the district         government programs related to            1990 through 1995, SSA could have
level, the situation is very complex.       health, education, employment, social     saved $14.6 million with a transfer-of-
Just because one district school is         security, welfare, and veterans issues,   income restriction similar to that used
fully accessible does not mean that         which are run primarily by the Depart-    for Medicaid Such a restriction could
other district schools are. The law,        ments of Health and Human Service,        also boost the public's confidence in
however, does not require a school          Labor, Education, and Veterans            the program's integrity.
district to make each of its buildings      Affairs. One section identifies reports
or every part of a facility accessible to   and testimony issued during the past      HEHS-96-80, June 7, 1996 (34 pages).
and usable by persons with disabili-        month and summarizes key products.        Cocaine Treatment: Early Results
ties. Lack of funding was cited by          Another section lists all documents       From Various Approaches.
many as the main reason for not             published during the past year,
making schools accessible.                  organized chronologically by subject.     Three cognitivelbehavioral ap-
                                            Order forms are included                  proaches--reiapse prevention,
HEHS-96-77, May 13, 1996 (9 pages).                                                   community reinforcement/contin-
DOD Dependents Schools: Cost Issues         HEHS-96-79, Apr. 30, 1996 (14             gency management, and
Associated With the Special Educa-          pages). Supplemental Security             neurobehavioral therapy-have
tion Program.                               Income: Some Recipients Transfer          shown positive results in the treat-
                                            Valuable Resources to Qualify for         ment of cocaine addiction. Prelimi-
Congress created the Department of          Benefits.                                 nary findings show that clients treated
Defense (DOD) Dependents Schools                                                      with these therapies remained absti-
in 1978 to provide a free public            Existing law does not prohibit people     nent and in treatment for long periods.
education for dependents of military        from transferring resources to qualify    These fmdings are particularly
personnel serving abroad. DOD               for benefits under the Supplemental       encouraging because initial treat-
Dependents Schools are required to          Security Income program-the largest       ments used during the early 1980s
provide special education to all            cash assistance program for the poor      were not very successful. Although
eligible students as required by the        and one of the fastest growing entitle-   too few studies have been done to
Individuals With Disabilities Educa-        ment programs. Between 1990 and           draw definite conclusions about the
tion Act. Members of Congress have          1994, 3,500 Supplemental Security         utility of any of these treatments,
raised concern that DOD Dependents          Income recipients transferred assets,     more research should be completed
Schools are spending excessive              including cash, houses, land, and         within the ne.Xl: several years. Re-
amounts to educate special education        other items, valued at $74 million.       search experts agree that continued
students who live in areas overseas         Transfer values ranged as high as         research and study are needed to
that lack a school that can meet their      5800,000; most transfers fell between     enhance and confirm-or deny-these
needs. This report discusses (I) the        $10,000 and 525,000. The total amount     early results.




                                            Page 65                                            GAO/OrMC-97 -lA Subject Index
                                            consensus on what is imown about its        published during the past year,
HEHS-96-82, Mar. 6, 1996 (51 pages).        effectiveness, and (3) the conse-           organized chronologically by subject.
Aging lssues: Related GAO Reports           quences of increased use and insur-         Order fonns are included.
and Activities in Fiscal Year 1995.         ance coverage of the treatment while
                                            it is still being evaluated in clinical     HEHS-96-92, Mar. 28, 1996 (19
This booklet provides a compilation         trials.                                     pages). Job Corps: Comparison of
of GAO's fiscal year 1995 products                                                      Federal Program With State Youth
and ongoing work on older Ameri-            HEBS·96·87, July 11, 1996 (51               Training lnitiatives.
cans. Because the elderly are one of        pages). Social Security Disability:
the fastest-growing segments of             Backlog Reduction Efforts Under             State or locally established youth-
American society today, Congress            Way: Significant Challenges Remain.         training progrants are offered in most
faces a host of issues-from health                                                      states. Although many have character-
care to social security to pensions-in      The Social Security Administration          istics similar to those of the Job Corps
which the federal government will           (SSA) runs the nation's largest pro-        program, state and local youth corps
play an important role. This booklet is     grams providing cash benefits to            programs most closely resemble the
divided into three sections, which          people with severe long-term disabili-      Job Corps program. Two such pro-
summarize different types of GAO            ties. The number of persons receiving       grarns-the California Conservation
products relating to older Americans:       either disability insurance or supple-      Corps and the Seaborne Conservation
reports and correspondence, testi-          mental security income benefits has         Corps in Galveston, Texas-contain
mony before Congress, and ongoing           soared during the past decade. At the       all four features that, taken together,
work. Overall, health, income secu-         same time, SSA has struggled to deal        characterize the Job Corps: they serve
rity, and veterans issues were the          with unprecedented growth in appeals        disadvantaged youth, provide basic
areas most frequently addressed by          of its disability decisions and the         education, offer vocational training,
GAO work on older Americans.                resulting backlog of cases awaiting         and provide services in a residential
                                            hearing decisions. Processing delays        setting. However, even these two
HEHS-96-83 , Apr. 24, 1996 (25              stemming from a backlog of more             programs differ from the Jobs Corps
pages). Health lnsurance: Coverage          than half a million appealed cases          in the ways that they run their pro-
of Autologous Bone Marrow Trans-            have created hardships for disability       grams. For example, the California
plantation for Breast Cancer.               claimants, who often wait more than a       program does not specifically target
                                            year for final disability decisions. This   the disadvantaged, and Seaborne's
Although many insurers now cover            report discusses (1) factors contribut-     vocational training is geared toward a
the cost of autologous bone marrow          ing to the growth in appealed cases,        single industry.
transplantation, a new and expensive        (2) SSA initiatives to reduce the
treatment for breast cancer, issues         backlog, and (3) steps that need to be      HEHS-96-95 , May 30, 1996 (16
surrounding the procedure have put          taken in the long·term to make the          pages). Practice Guidelines: Managed
several goals of the U.S. health care       disability appeals process more timely      Care Plans Customize Guidelines to
systems in conflict: access to the best,    and efficient.                              Meet Locallnterests.
most advanced care; cost contain-
ment; and research adequate to assess       HEHS-96-89W, Feb. I, 1996 (37               lnappropriate use of medical services
the value of new treatments. Propo-         pages). Health, Education, Employ-          can be costly and raise quality of care
nents of insurance coverage argue           ment, Social Security, Welfare, and         concerns. For example, a 1988 study
that autologous bone marrow trans-          Veterans Reports.                           found that 14 percent of bypass
plantation provides breast cancer                                                       surgeries were performed inappropri-
patients with a promising, potentially      This booklet lists GAO documents on         ately. To narrow the gap between
life-saving treatment. Critics say that     government progranls related to             current and optimal practice, some
the proliferation of such unproven          health, education, employment, social       federal agencies and other groups
treatments is costly and harmful,           security, welfare, and veterans issues,     develop clinical practice guidelines on
potentially hindering clinical research     which are run primarily by the Depart·      the best practices for effective and
to determine whether the treatment is       ments of Health and Human Services,         appropriate care. Managed care plans,
effective. This report discusses (1 ) the   Labor, Education, and Veterans              which employ various techniques
factors that have influenced insurers'      Affairs. One section identifies reports     intended to reduce inappropriate care,
decisions on whether to cover the           and testimony issued during the past        are likely sites of guideline use. This
treatment, (2) the status of research       month and summarizes key products.          report discusses ( 1) the purposes
on autologous bone marrow trans-            Another section lists all documents         clinical practice guidelines serve and
plantation for breast cancer and the                                                    (2) how health plans make use of



GAOIOIMC·97·IA Subject Index                Page 66
already published guidelines devel-        reserve income so that state UI            HEHS-96-105 , July 2, 1996 (56
oped by federal agencies and other         programs can reduce benefits accord-       pages). Welfare Waivers Implementa-
groups.                                    ingly. In the seven states GAO re-         tion: States Work to Change Welfare
                                           viewed, however, reservists filing for     Culture, Community Involvement, and
HEBS-96-97W, Mar. I, 1996 (33              UI failed to report more than $7           Service Delivery.
pages). Health, Education, Employ-         million in reserve income during fiscal
ment, Social Security, Welfare, and        year 1994. This resulted in $3.6 million   In the wake of growing dissatisfaction
Veterans Reports.                          in UI benefit overpayments, of which       with the welfare system, Congress
                                           federal trust fund losses were $1.2        and the President have been consider-
This booklet lists GAO documents on        million. GAO found that many UI            ing welfare reform on a national level.
government programs related to             claimants may be unaware of require-       Meanwhile, many states have under-
health, education, employment, social      ments to report reserve income.            taken far-reaching refonns through
security, welfare, and veterans issues,    Moreover, many claimants are not           waivers of federal provisions govern-
which are run primarily by the Depart-     specifically asked to report reserve       ing the program most Americans think
ments of Health and Human Services,        income, and the incentives not to          of as welfare-Aid to Families With
Education, and Veterans Affairs. One       report reserve income are increased        Dependent Children. For example,
section identifies reports and testi-      by the limited ability of states to        states have required welfare recipi-
mony issued during the past month          detect nonreporting.                       ents to work; set limits on lifetime
and summarizes key products. An-                                                      benefits; and denied cash benefits for
other section lists all documents          HEBS-96-103, June 14, 1996 (105            additional children born to families
published during the past year,            pages). School Facilities: America's       already receiving welfare. Believing
organized chronologically by subject.      Schools Report Differing Conditions.       that the [mdings would be useful to
Order forms are included.                                                             states dealing with the challenge of
                                           Schools in unsatisfactory condition        welfare reform, Congress asked GAO
HEHS-96-98W, Mar. 1, 1996 (115             can be found in every part of the          to review some states' early experi-
pages). Health, Education, Employ-         country. However, a GAO survey of          ences with implementing reforms.
ment, Social Security, Welfare, and        schools nationwide found that schools      This report examines efforts by
Veterans Reports: Five-Year Report         needing relatively greater repairs         Florida, Indiana, New Jersey, Virginia,
1991-96.                                   were those in inner cities, schools in     and Wisconsin to implement three key
                                           the West, schools with 50.5 percent or     reforms: time-limited benefits, work
This booklet is a comprehensive            more minority students, and schools        requirements, and family caps.
listing of GAO documents issued from       with 70 percent or more poor stu-
March 1991 through February 1996 on        dents. More than 14 million children       HEHS-96-106, Apr. 29, 1996 (64
government programs related to             are being taught in school buildings       pages). Job Training: Small Business
health, education, employment, social      needing significant repairs to restore     Participation in Selected Training
security, welfare, and veterans issues j   them to good overall condition. At the     Programs.
which are primarily run by the Depart-     same time, GAO found that a new
ments of Health and Human Services,        school in excellent shape, conforming      Both government and the private
Labor, Education, and Veterans             to all federal , state, and local man-     sector spend considerable sums to
Affairs. It is organized chronologically   dates, might be located only a few         train the nation's workforce. In 1995,
by subject and, when appropriate,          blocks from an operating but deterio-      the federal government alone spent
some documents may be listed under         rated school building. GAO found the       about $20 billion on 163 programs that
more than one subject area Infonna-        greatest variations at the state level.    included some aspect of worker
tion on how to obtain copies of these      For example, 62 percent of schools in      training. GAO found that large em-
documents is included.                     Georgia compared with 97 percent of        ployers were about twice as likely to
                                           schools in Delaware needed repairs to      take advantage of several types of
HEHS-96-101, Aug. 5, 1996 (36              restore them to good overall condi-        training programs as were small
pages). Unemployment Insurance:            tion. Virtually all communities, even      employers. Training programs that
Millions in Benefits Overpaid to           some of the wealthiest, are wondering      require employers to comply with
Military Reservists.                       how to balance school infrastructure       detailed administrative or other
                                           needs with other community priori-         paperwork requirements present
More than one million Americans            ties.                                      economic barriers. Small employers
serve in the national reserves. When                                                  may find it too costly to devote the
these reservists claim unemployment                                                   time needed to conform to these
insurance (UI), they must report                                                      requirements. In addition, training




                                           Page 67                                             GAO/OIMC-97-1A Subject Index
programs that focus on workers'            More than 700,000 men and women           HEHS-96-117, July 11,1996 (22
general needs rather than on employ-       served in the Middle East during the      pages). NIH Extramural Cl.injcal
ers' specific skill needs present          Persian Gulf War. Some of these           Research: Internal Controls Are Key
institutional baniers. Finally, informa-   veterans began experiencing symp-         to Safeguarding Phase ill Trials
tional baniers may also exist because      toms, such as fatigue, weight loss, and   Against Misconduct.
small employers often know less            skin conditions, that could not be
about the training programs available      diagnosed or associated with a            In fiscal year 1995, the National
to them than do larger employers. In       specific illness. Congress passed         Institutes of Health (NIH) sponsored
GAO's case studies, those programs         legislation in 1994 allowing the          about $9 billion in extramural re-
that focused mainly on employer            Department of Veterans Affairs cYA)       search-research done by groups
needs used or actively encouraged          to pay compensation to veterans for       outside of NIH. About $1.2 billion was
consortia, which are organizations of      undiagnosed illnesses connected to        spent on Phase ill cl.injcal trials,
employers, unions, or other interested     their service during the Persian Gulf     which usually involve hundreds of
parties. These consortia provide           War. As of July 1995, VA had denied       human participants to evaluate
employment training to employers           nearly 95 percent of the 4,144 claims     experimental treatments. In the early
and, in these particular programs,         that it had processed for Persian Gulf    1990s, disclosure that falsified data
overcame many of the baniers cited         veterans claiming such disabilities. In   had been used in a large Phase ill trial
above.                                     response to congressional concerns        looking at alternative treatments for
                                           about the high denial rate, GAO           breast cancer raised concern that the
HEHS-96-108, May 7, 1996 (41               reviewed the procedures VA used to        results of this multimillion dollar trial
pages). Employment Training:               process Persian Gulf War undiag-          had been compromised. This report
Successful Projects Share Common           nosed illness claims. This report         discusses NIH's oversight responsibili-
Strategy.                                  discusses (1) the evidence standards      ties and internal controls used to
                                           that VA has established to process        prevent and detect misconduct in
GAO reviewed six successful employ-        Persian Gulf claims, (2) the evidence     Phase ill cl.injcal trial research. GAO
ment training projects with a variety      in the claim flies that VA considered     also reviews NIH's approach to
of characteristics, including diverse      in reaching its decisions, and (3) VA's   monitoring performance of its insti-
geographic locations, client popula-       reporting of the reasons for denial.      tutes that sponsor cl.injcal trials and
tions, program sizes, and funding                                                    efforts to implement agencywide
sources. Despite these differences,        HEHS-96-113, July 17, 1996 (42            policy on misconduct in research.
the six training projects shared a         pages). Readjustment Counseling
common strategy to prepare clients         Service: Vet Centers Address Multiple     HEHS-96-120, July 22, 1996 (48
for self sufficiency. This strategy-       Client Problems, but Improvement Is       pages). Medicaid: Waiver Program for
resulting in placement rates of more       Needed.                                   Developmentally Disabled Is Promis-
than 90 percent for three of the                                                     ing But Poses Some Risks.
projects GAO visited-incorporated          The Department of Veterans Affairs
four key features: ensuring commit-        cYA) operates 205 community-based         More than 300,000 adults with devel-
ment to training and landing ajob,         facilities known as Vet Centers to help   opmental disabilities-typically
removing baniers that might hinder a       veterans make a successful transition     mental retardation-receive long-term
client's ability to finish training and    from military to civilian life. Vet       care paid for by Medicaid or, to a
get and keep a job, improving employ-      Center counselors reported visiting       lesser extent, state and local pro-
ability skills, and linking occupational   with about 138,000 veterans during        grams. Such long-term care often
skills training with the local labor       fiscal year 1995, 84,000 of whom were     involves supervision and assistance
market Although the projects imple-        new to Vet Centers. Most veterans do      with everyday activities, such as
mented them differently, together          not establish long-term relationships     dressing or managing money. Persons
these features ensure that clients are     with Vet Center counselors; however,      with developmental disabilities
ready, willing, and ab Ie to participate   those who do represent a core group       receive more than S13 billion annually
in and benefit from training and           who use services over extended            in public funding for long-term care,
employment assistance and become           periods for serious psychological         second only to the elderly. Recently,
self-sufficient.                           problems, such as post-trawnatic          states have begun to significantly
                                           stress disorder. Other veterans usually   expand the use of the Medicaid waiver
HEHS-96-112, May 28, 1996 (13              visit Vet Center counselors only once     program, which seeks to provide
pages). Veterans' Compensation:            or twice for social concerns, such as     alternatives to institutional care for
Evidence Considered in Persian Gulf        employment or benefit needs.              persons with developmental disabili-
War Undiagnosed lllness Claims.                                                      ties. The waiver program has two



GAO/OIMC-97-1A Subject Index                Page 68
advantages. First, it helps states to       ducing efficiency incentives at VA that    HEHS-96-124, May 17, 1996 (37
control costs by allowing them to           have long existed in the private           pages). Defense Health Care: Medi-
limit the number of recipients being        sector.                                    care Costs and Other Issues May
served. In contrast, states must serve                                                 Affect Uniformed Services Treatment
all eligible persons in the regular         HEHS-96-122 , May 28, 1996 (26             Facilities' Future.
Medicaid program. Second, it permits        pages). Public Education: Issues
states to meet the needs of many            Involving Single-Gender Schools and        Since fIScal year 1994, Congress has
persons with developmental disabili-        Progranls.                                 appropriated nearly $1 billion for the
ties by offering them a broader range                                                  Uniformed Services Treatment
of services in less restrictive settings,   A host of legal and educational issues     Facilities (USTF) to deliver health
such as group or family homes, rather       surrowld proposals for single-sex          care to what now totals 124,000
than in an institutional setting. This      classes in tile public schools. These      beneficiaries. In recent years, Con-
report examines (1) expanded state          issues involve the legality of single-     gress has grown concerned about the
use of the waiver program, (2) the          gender programs, the effectiveness of      rising cost to treat USTF members, in
growth in long-term care costs for          such programs in promoting desired         part because some members retain
individuals with developmental              educational outcomes, and tile             dual eligibility and unrestricted access
disabilities, (3) how costs are con-        desirability of using these progranlS to   to other government health care
trolled, and (4) strengths and limita-      achieve such goals as fostering            services, such as Medicare and
tions in states' approaches to ensuring     improved academic and social perfor-       Defense Department (DOD) hospitals.
quality in community settings.              mance among boys and teaching              Congress directed DOD in 1991 to
                                            mathematics to girls in a nonthreaten-     reform the USTF program by intro-
BEHS-96-121 , July 25, 1996 (64             ing setting. Some public elementary        ducing a managed care program. As
pages). VA Health Care: Opportuni-          and secondary schools have recently        DOD begins to implement its new
ties for Service Delivery Efficiencies      offered single-sex classes or programs     nationwide managed care program,
Within Existing Resources.                  in a coeducational setting. However.       !mown as TRICARE, questions about
                                            some of these programs have been           the program's future persist This
The Department of Veterans Affairs          terminated or modified to not exclude      report discusses (1) whether unneces-
(VA), which operates one of the             anyone on the basis of gender because      sary costs result from USTF members'
nation's largest health care systems,       federal or state officials believed that   use of other federally funded health
faces increasing pressure to contain        the programs violated federal or state     care sOurces and (2) other issues that
or reduce spending as part of               laws. School districts that have such      need to be considered as Congress
governmentwide efforts to balance           programs could face lawsuits.              deliberates reauthorization of the
the budget. This report discusses                                                      USTF program.
ways VA could operate more effi-            HEHS-96-123W, Apr. I, 1996 ( 19
ciently and reduce the resources            pages). Health, Education, Employ-         HEHS-96-126, Sept. 3, 1996 (96
needed to meet the needs of veterans        ment, Social Security, Welfare, and        pages). People With Disabilities:
in what is commonly referred to as          Veterans Reports.                          Federal Programs Could Work Ta-
the mandatory care category. GAO                                                       gether More Efficiently to Promote
addresses (1) VA's forecasts of future      This monthly bibliography lists GAO        Employment.
resource needs, (2) opportunities to        documents on health, education,
run VA's system more efficiently, (3)       employment, social security, disabil-      How efficient are federal efforts to
differences between VA and the              ity, welfare , and veterans issues. One    help people with disabilities? In 1994,
private sector in efficiency incentives,    section summarizes reports and             the government provided a range of
and (4) recent VA efforts to reorganize     testimony issued during the past           services to people with disabilities
its health care system and create           month. Another section lists the titles    through 130 different programs, 19
efficiency incentives. GAO concludes        of all docrunents published during the     federal agencies, and a host of public
that successful inlplementation of a        past four months, organized chrono-        and private agencies at the state and
range of reforms, coupled with              logically by subject. Order forms are      local levels. Although research groups
reduced demand for services, could          included, as is a list of subject area     and independent panels have stressed
save the VA health care system              e,,:perts who can answer questions         the need to simplify and streanUine
billions of dollars during the next         about specific reports.                    programs serving the disabled,
seven years. The success of these                                                      creating a new service delivery
efforts, however, depends on intro-                                                    system may prove difficult. GAO
                                                                                       urged caution in 1992 when Congress
                                                                                       was considering proposals that would




                                            Pag e 69                                            GAOIOIMC-97 -lA Subject Index
have made fundamental changes in           sion among beneficiaries arising from     HEHS-96-130, May 31, 1996 (44
human service delivery systems at the      marketing and education problems, as      pages). Davis-Bacon Act: Process
federal, state, and local levels. GAO      well as problems with the compatibil-     Changes Could Raise Confidence That
also urges caution with regard to          ity of computer systems, early imple-     Wage Rates Are Based on Accurate
programs serving people with disabili-     mentation of TRICARE is progressing       Data.
ties. Although the potential benefits of   consistent ,vith congressional and
creating a new system to deliver           DOD goals. However, the success of        The Davis-Bacon Act requires employ-
services more comprehensively to           DOD's efforts to implement resource-      ers on federal construction projects to
people with disabilities may be great,     sharing agreements and utilization        pay workers wages at or above the
so are the barriers and the risks of       management is critical to containing      level determined to be prevailing in a
failure. Obstacles preventing officials    health care costs. DOD also needs to      geographic area Critics say that the
from reorganizing service agencies,        gather enrollment and performance         act artificially inflates federal con-
creating new funding and service           data so that it and Congress can          struction costs-a charge with serious
agreements, and divesting authority        assess TRICARE's success in the           fmancial implications given that the
from their own agencies are hard to        future .                                  federal government will contract
overcome. Mandates alone are                                                         about $42 billion in construction
unlikely to secure the major time and      HEHS-96-129, June 17, 1996 (28            projects during fiscal year 1996,
resource commionents needed from           pages). Health insurance for Chil-        according to Congressional Budget
officials-whether they are charged         dren: Private insurance Coverage          Office estimates. inaccurate wage
with directing reforms or have respon-     Continues to Deteriorate.                 determination could lead either to
sibility for administering services. in                                              excessive government construction
the current fIScal environment, a          Despite larger numbers of parents         costs or to large numbers of workers
renewed focus by federal agencies on       who work full-time, private health        receiving wages and fringe benefits
improving coordination would be a          insurance coverage for children is        that are lower than those required by
useful step toward improving services      declining. The number of children         law. This report (l) identifies the
and enhancing the customer orienta-        without health insurance coverage         steps used by the Labor Deparonent
tion of their programs.                    reached 10 million in 1994-the            to collect data and determine and
                                           largest number since 1987. in com-        report the prevailing wages to be paid
HEHS-96-128, June 14, 1996 (20             parison, the number of adults who         on federally funded construction
pages). Defense Health Care: New           have lost their health insurance          projects, (2) discusses wealcnesses in
Managed Care Plan Progressing, but         coverage appears to have stabilized       the determination process that could
Cost and Performance Issues Remain.        during the past two years. Meanwhile,     have resulted in the use of inaccurate
                                           although Medicaid provided health         or fraudulent data, and (3) assesses
The Defense Deparonent's (DOD)             coverage for 16 million children in       the extent to which Labor is address-
health care system, which costs $15        1994, more than 60 percent of those       ing wealcnesses in its determination
billion annually, is wldergoing sweep-     children had a working parent. This       process.
ing reform. Through TRICARE, its           trend is straining public resources:
new managed health care program,           Taxpayers end up paying either for        HEHS-96-131 , Sept. 6, 1996 (32
DOD is trying to improve access to         Medicaid coverage or for hospital         pages). Medicaid: Oversight of
care among its 8.3 million beneficia-      subsidies to provide acute care for the   institutions for the Mentally Retarded
ries while containing costs. How well      uninsured. In response to rising          Should Be Strengthened.
DOD implements and operates                Medicaid costs, state and local
TRICARE may define and shape               governments are considering various       Medicaid provides more than $5
military medicine for years to come.       program changes, some of which have       billion each year to support state
Because of TRICARE's complexity,           profound implications for health care     institutions that house and care for
scale, and impact on beneficiaries,        coverage for children, such as propos-    the mentally retarded. Despite federal
GAO reviewed the program, focusing         als to remove guaranteed eligibility.     standards, serious quality-of-care
on (1) whether DOD's experiences           Other changes that strengthen the         problems exist at some institutions.
with early implementation yielded the      private insurance market may also         insufficient staffing, lack of treat-
expected results, (2) how early            significantly affect children's future    ments to enhance patients' indepen-
outcomes may affect costs, and (3)         coverage.                                 dence and functional ability, and
whether DOD has defined and is                                                       deficient medical and psychiatric care
capruring data needed to manage and                                                  are some of the shortcomings that
assess TRICARE's performance. GAO                                                    have been cited most frequently. In a
concludes that despite initial confu-                                                few cases, these practices have led to



GAO/OIMC·97·lA Subject Index               Page 70
il\iuries, illness, physical degenera-     disability insurance premiums. This       to ensure quality of care and strate-
tion, and even death for some resi-        report discusses (1) key practices        gies for setting rates and sharing
dents. States, which playa key role in     used in the U.s. private sector to        fmancial risk.
ensuring that these institutions meet      return disabled employees to the
federal standards, do not always           workplace and (2) examples of how         HEHS-96-139W, May I, 1996 (19
identify serious deficiencies and          other countries implement retum-to-       pages). Health, Education, Employ-
sometimes do not take adequate             work strategies for disabled persons.     ment, Social Security, Welfare, and
enforcement measures to prevent the                                                  Veterans Reports.
recurrence of poor care. Although the      HEHS-96-136, July 31 , 1996 (66
Health Care Financing Administration       pages). Medicaid Managed Care:            This monthly bibliography lists GAO
has tried to improve the process for       Serving the Disabled Challenges State     documents on health, education,
spotting serious deficiencies in these     Programs.                                 employment, social security, disabil-
institutions and has sought to make                                                  ity, welfare, and veterans issues. One
more efficient use of limited federal      With its emphasis on primary care,        section summarizes reports and
and state resources, oversight weak-       restricted access to specialists, and     testimony issued during the past
nesses persist. Moreover, state            control of services, managed care is      month. Another section lists the titles
surveys may lack independence              seen as a way to control spiraling        of all documents published during the
because states are responsible for         Medicaid costs, which totaled $159        past four months, organized chrono-
surveying their own institutions. This     billion in fiscal year 1995. So far,      logically by subject. Order forms are
potential conflict of interest raises      states have extended prepaid care         included, as is a list of subject area
concern given the decline in direct        largely to low-income families-about      e"1>erts, who can answer questions
federal oversight of both care in these    30 million persons-but to few of the      about specific reports.
facilities and the performance of state    additional six million Medicaid
surveying agencies.                        beneficiaries who are mentally or         HEHS-96-140, July 17, 1996 (52
                                           physically disabled. Managed care's       pages). Job Corps: Where Partici-
HEHS-96-133, July 11, 1996 (88             emphasis on primary care and control      pants Are Recruited, Trained, and
pages). SSA Disability: Return-to-         of services is seemingly at odds with     Placed in Jobs.
Work Strategies From Other Systems         the care requirements of disabled
May Improve Federal Programs.              beneficiaries, many of whom need          The Job Corps, a national employment
                                           extensive services and access to          training program run by the Labor
Between 1985 and 1994, the number          highly specialized providers. How-        Department, serves about 66,000
of working-age people in the Social        ever, because more than one-third of      participants at 112 centers in 46
Security Administration'S (SSA)            all Medicaid payments go for the care     states, the District of Columbia, and
disability insurance and supplemental      of the disabled, policymakers have        Puerto Rico. GAO found that th.e Job
security income programs rose 59           been exploring the possibility of         Corps has the capacity to serve 81
percent, from 4 million to 6.3 million.    enrolling disabled persons in managed     percent of program participants in
Concern about such growth has been         care plans. These efforts affect three    their home state&-52,OOO of 64,000
compounded by the fact that less than      key groups: disabled beneficiaries,       participants from states with Job
half of one percent of disability          who include a small number of very        Corps centers could have been
insurance beneficiaries ever leave the     vulnerable persons who may be less        assigned to a center in their state of
disability rolls and return to work. A     able to effectively advocate on their     residence. About 59 percent of
recent GAO report (GAOIHEHS-9fKi2)         own behalf for access to needed           participants were assigned to centers
urged SSA to place more emphasis on        services; prepaid care plans, which       in their home state; the remaining
return-to-work efforts. If an additional   are concerned about the degree of         participants were sent to centers
one percent of the 6.3 million benefi-     fmancial risk in treating persons with    outside their home state and traveled
ciaries were to leave SSA's disability     extensive medical needs; and the state    an average of more than four times as
rolls and return to work, lifetime cash    and federal governments, which run        far as they would have had they been
benefits would be reduced by nearly        Medicaid. This report examines the        assigned to the closest center in their
$3 billion. The magnitude of disability    (1) extent to which states are imple-     state of residence. Regardless of
costs in the workplace has spurred         menting Medicaid prepaid managed          where they were trained, however,
companies to develop strategies to         care programs for disabled beneficia-     about 83 percent of those participants
return disabled employees to the           ries and (2) steps that have been         who got jobs were employed in their
workplace-an effort that can help          taken to safeguard the interests of all   home state.
businesses reduce costs, such as           three groups. GAO's review of safe-
disability benefit payments and            guards focuses on two areas: efforts



                                           Page 71                                            GAO/OIMC-97-lASubjectIndex
HEHS-96-141 , May 13, 1996 (38             ing relative to the state's ability to    HEHS-96-145, Aug. 16, 1996 (17
pages). Defense Health Care: Effects       pay-and equity in per pupil spending      pages). Medicare: Early Resolution of
of Mandated Cost Sharing on Uni-           would receive adrutional funds. in        Overcharges for Therapy in Nursing
formed Services Treatment Facilities       June 1994, GAO cited weaknesses in        Homes Is Unlikely.
Likely to Be Minor.                        the proposed measures of effort and
                                           equity used in the Title 1 program.       Nursing homes and therapy compa-
The establishment of uniform benefits      (See improved. This report (1) exam-      nies continue to bill Merucare at very
and cost sharing for Defense Depart-       ines the measures now included in         high rates for occupational and
ment (DOD) beneficiaries is a key          Title I's Education Finance incentive     speech therapy. Moreover, the bills do
component of the TRICARE program           Program to reflect state fIScal effort    not specifY the amount of time spent
and is something that GAO and others       for education and equity in per pupil     with patients or the treatments
have long advocated. Such uniformity       spending, (2) proposes several options    provided. The weaknesses that GAO
would, in GAO's view, eliminate            for improving these measures, (3)         reported more than a year ago-the
inequities and confusion that now          describes the characteristics of states   lack of salary gujdelines setting limits
exist among beneficiaries of military      with higher levels of effort and equity   on Merucare reimbursements for
health plans. Although adopting            under both the current definitions and    occupational and speech therapist's
TRICARE cost shares may cause              the options GAO developed, and (4)        services and unclear billlng for these
some minor adverse selection for the       suggests alternative ways the options     services-persist. Although the Health
Uniformed Services Treatment               GAO developed could be used in            Care Financing Admjnigtration
Facilities (USTF), there should be no      allocating funds under the Education      (HCFA) recognized as early as 1990
lasting negative [mancial impact on its    Finance and incentive Program.            that inappropriate charges for occupa-
operations. Moreover, the new cost                                                   tional speech therapy were a problem,
shares, which are s imilar to health       HEHS-96-143, July 12, 1996 (lOS           it is still trying to establish salary
maintenance organizations, are             pages). Department of Education:          equivalency guidelines for these
appropriate for the risks to be borne      Status of Actions to Improve the          services. HCFA proposed gujdelines
by the USTFs and will likely make the      Management of Student Financial Ald.      based on a Bureau of Labor Statistics
USTF population more similar to                                                      survey of average salaries for hospital
DOD's general beneficiary population.      Each year, the Department of Educa-       therapists, but the industry was not
More importantly, there should be a        tion provides students with billions of   satisfied and rud its own survey.
financial impact. DOD's current USTF       dollars in loans and grants for           HCFA is now analyzing those survey
capitation methodology takes into          postsecondary education. Concerns         results. The prospect for a quick
account and allows for adjusted            have been raised over the years about     resolution to the billing problem with
reimbursement levels for such higher       fraud and abuse in these student aid      therapy services is unlikely. Histori-
costs that result from changes in the      programs, especially the Federal          cally, it has taken HCFA years to
enrollee cost shares and population        Family Education Loan Program and         reduce hlgh payment rates for sup-
characteristics.                           the Pell Grant Program. Concerns          plies or services. Given the typical
                                           have also been expressed about the        time involved in meeting federal
HEHS-96-142 , Aug. 30, 1996 (46            inadequacy of the Department's            notification and publication require-
pages). School Finance: Options for        procedures for gatekeeping-deter-         ments for changing Merucare prices,
Improving Measures of Effort and           mining which schools can participate      salary equivalency guidelines may not
Equity in Title I.                         in these programs-and program             be implemented until the summer of
                                           review. In total, a Senate committee,     1997 at the earliest. GAO urges
Disparities in per pupil funding for       the Department's Office of Inspector      Congress to consider granting HCFA
elementary and secondary education         General, and GAO have made more           legislative relief from these require-
within each state have long been a         than 200 recommendations to the           ments.
concern of parents, teachers, state        Department. This report ruscusses the
officials, and federal officials. Since    (1) Department's response to these        HEHS-96-148, June 24, 1996 (191
the early 19705, these disparities have    recommendations and whether the           pages). School Facilities: Profiles of
prompted poor districts in more than       Department's actions address the          School Conrution by State.
40 states to challenge the constitution-   recommendations and (2) reasons the
ality of their states' school [mance       Department gave for not acting on         This report proflles the conrution of
systems. Under Title I's Education         some recommendations.                     school facilities in the 50 states and
Finance Incentive Program, states                                                    the District of Columbia Each profile
with high levels of "fiscal effort" for                                              discusses the conrution of school
education-that is, high state spend-                                                 builrungs and building features, the



GAOIOIMC-97-1A Subject Index               Page 72
adequacy of environmental condi-             During the past 15 years, tuition at      for vocational rehabilitation program
tions, the extent to which facilities are    four-year public colleges and universi-   services. Moreover, the characteris-
meeting the functional requirements          ties rose 234 percent. In contrast,       tics of program participants are
of education refonn and technology,          median household income rose only         changing. For example, only about
the range of funding needed to bring         82 percent. This increase in tuition      one in four veterans in the vocational
schools into good overall condition,         also subst.antially exceeded the 74-      rehabilitation program has a serious
and the money needed to address              percent increase in the cost of con-      employment handicap, and this ratio
federal mandates for managing and            sumer goods-as measured by the            has been steadily declining. Moreover,
correcting environmental hazards and         Consumer Price Index- The two             VA lacks data on the cost of providing
providing access to programs for the         factors most responsible for the rise     rehabilitation services to individual
disabled.                                    in tuition were increases in schools'     veterans. GAO's review of more than
                                             expenditures and schools' greater         100 case files, however, showed that
HEHS-96-152, Aug. 30, 1996 (25               dependency on tuition as a source of      VA spent an average of about $20,000
pages). Supplemental Security                revenue. Increases in instruction,        on each veteran who gained employ-
Income: SSA Efforts Fall Short in            administration, and research expendi-     ment and about $10,000 on each
Correcting Erroneous Payments to             tures accounted for much of the           veteran who dropped out of the
Prisoners.                                   increase. The increased spending for      program. Generally, more than half of
                                             instruction was driven largely by         the total costs consisted of payments
Despite Social Security Administra-          increases in faculty salaries, which      covering veterans' basic living ex-
tion (SSA) procedures to detect              rose 97 percent during the period. At     penses. GAO's analysis of data for the
supplemental security income recipi-         the same time, the share of schools'      Department of Education's state
ents in county and local jails, GAO          revenue provided by tuition rose from     vocational rehabilitation program
found that $5 million had been               16 percent to 23 percent, as the share    shows that, during the past five years,
erroneously paid to prisoners in the         of revenue derived from state appro-      state agencies rehabilitated 37 percent
jail systems it reviewed. SSA had been       priations fen by 14 percentage points.    of the 2.6 million persons eligible for
unaware of many of these payments            GAO found wide variation in tuition       vocational rehabilitation services.
and, therefore, had made no attempt          charges among states in school year       Moreover, most program participants
to recover them. Various factors             1995-96. These variations are ex-         had severe disabilities. The states
contributed to these payments. First,        plained partly by states' levels of       spent, on average, about $3,000 on
SSA field offices have not been              support. Colleges have tried to deal      each client who achieved employment
compiling infonnation regularly on           with students' increasing financial       and about $2,000 on each client who
prisoners in country and local jails.        burden in several ways, including         dropped out of the program; the state
Second, the supplemental security            holding down tuition increases,           program does not cover client living
recipient-<lf the person or organiza-        making paying for college easier, and     expenses.
tion designated to receive payments          streamlining students' progress to
on the recipient's behalf-has not            graduation to keep their total charges    HEHS-96-157, Aug. 23, 1996 (144
been reporting the incarceration, as         lower. Because some of the efforts are    pages). Occupational Safety and
required. Thind, SSA sometimes falls         in the early stages of implementation,    Health: Violations of Safety and
short in periodically reviewing-             little has been done to evaluate their    Health Regulations by Federal Con-
either by mail or interview-a                effectiveness.                            tractors.
recipient's continued financial eligibil-
ity for supplemental security income.        HEHS-96-155 , Sept. 3, 1996 (31           The federal government spends
Under a new SSA initiative, field            pages). Vocational Rehabilitation: VA     roughly $200 billion annually on
offices will be required to obtain           Continues to Place Few Disabled           contracts for goods and senices.
prisoner infonnation from country            Veterans in Jobs.                         Some companies continue to be
and local jails, and SSA plans to                                                      awarded contracts every year even
monitor field office compliance with         Despite legislation requiring the         though they violate federal laws
this requirement. It is too early to tell,   Department of Veterans Affairs (VA)       intended to protect worker health and
however, whether this initiative will        to fmd suitable employment for            safety. Legislation now pending
be successful.                               disabled veterans and GAO reports         before Congress would restrict
                                             urging VA to implement this require-      companies that violate the Occupa-
HEHS-96-154, Aug. 15, 1996 (76               ment, VA continues to place few           tional Safety and Health Act from
pages). Higher Education: Tuition            veterans in jobs. During the past five    receiving federal contracts. Another
Increasing Faster Than Household             years, VA rehabilitated about eight       proposal would reward companies for
Income and Public Colleges' Costs.           percent of the 74,000 velerans eligible   responsible behavior by reducing



                                             Page 73                                               GAO/OIMC-97-lA Subject Index
taxes and offering preferences to         evaluation of the VA health care           HEHS-96-163, Aug. 29, 1996 (25
firms that train workers and take         system and VA eligibility; (2) the         pages). Supplemental Security
other steps to promote the economic       problems that VA's current eligibility     Income: Administrative and Program
security of their employees. This         and health services contracting            Savings Possible by Directly Access-
report (1) determines how many            provisions create for veterans and         ing State Data.
companies receiving federal contracts     providers; (3) the extent to which VA
have also been assessed penalties for     provides veterans with health care         The Supplemental Security Income
violating occupational safety and         services for which they are not            program, which provides cash ben-
health regulations, (2) describes the     eligible; (4) legislative proposals to     efits to the aged, the blind, and the
characteristics of these contractors      reform VA eligibility and contracting      disabled, could be run more effi-
and their contracts, (3) describes the    rules and their potential effect on ease   ciently. More importantly, millions of
kinds of violations for which these       of administration, equity to veterans,     dollars in overpayments could be
contractors were cited, and (4)           costs to VA, and clarity of eligibility    prevented or detected quickly if
identifies ways to improve contractor     for veterans' health benefits; and (5)     inform.a tion were available on-line
compliance with workplace safety and      approaches that could be used to limit     during eligibility assessments. GAO
health requirements.                      the budgetary effects of eligibility       estimates that direct on-line access to
                                          refonns.                                   state computerized income informa-
HEHS-96-159W, June I, 1996 (23                                                       tion could have prevented or quickly
pages). Health, Education, Employ-        HEHS-96-161, Aug. 19, 1996 (34             detected more than S131 million in
ment, Social Security, Welfare, and       pages). Health Insurance Regulation:       overpayments caused by unreported
Veterans Reports.                         Varying State Requirements Affect          or underreported income nationwide
                                          Cost of Insurance.                         in one 12-month period. However, in
This monthly bibliography lists GAO                                                  Social Security Administration (SSA)
documents on health, education,           As concern about the affordability of      field offices where direct access to
employment, social security, disabil-     health coverage has grown, the costs       computerized state infonnation has
ity, welfare, and veterans issues. One    attributed to state reguJation of health   been implemented, SSA claims
section summarizes reports and            insurance have come under increasing       representatives did not use it to detect
testimony issued during the past          scrutiny. State health insurance           overpayments. The claims representa-
month. Another section lists the titles   regulation is intended to protect          tives did use it to process claims more
of all documents published during the     consumers through oversight of health      efficiently, and SSA's preliminary
past four months, organized chrono-       plans' financial solvency, monitoring      results have shown that its use has
logically by subject. Order forms are     of insurers' market conduct to prevent     reduced administrative expenses.
included, as is a list of subject area    abuses, and mandated coverage for          Establishing on-line access between
experts who can answer questions          particular services. Although these        SSA field offices and state agency
about specific reports.                   measures do benefit consumers, they        databases would require only minimal
                                          result in costs to insurers that are       computer programming in most
HEHS-96-160, Sept. 11, 1996 (148          ultimately passed on to consumers in       states; some states would need
pages). VA Health Care: Issues            their premiums. These costs may            additional hardware, such as com-
Affecting Eligibility Reform Efforts.     influence an employer to self-fund its     puter lines.
                                          health plan-a move that avoids state
The evolution of the Department of        insurance regulation. This report          HEHS-96-170, Sept. 27, 1996 (31
Veterans Affairs (VA) during the past     examines the costs associated with         pages). SSA Disability Redesign:
60 years has resulted in a maze of        (1) premium taxes and other assess-        More Testing Needed to Assess
complex eligibility rules. These rules    ments, (2) mandated health benefits,       Feasibility of New Claim Manager
frustrate veterans, who cannot            (3) financial solvency standards, and      Position.
understand what services they can get     (4) state health insurance reforms
from VA, and VA physicians and            affecting small employers. GAO             To better manage increasing
administrative staff, who have to         discusses the impact of these require-     workloads with fewer resources, the
interpret the eligibility provisions.     ments on the costs of insured health       Social Security Administration (SSA)
Proposals to simplify and expand          plans compared with the cost of self-      in 1993 embarked on a seven-year
eligibility for veterans' health care     funded health plans.                       effort to redesign its disability claims
benefits have been put forth by                                                      process to make it more customer
Congress, the administration, and                                                    focused and efficient. Currently,
leading veterans service organiza-                                                   disability claimants often wait nearly
tions. This report discusses (1) the                                                 a year for a fmal disability decision.



GAO/OIMC·97·1A Subject Index              Page 74
Further, disability claimants are           The federal government's $66 billion       HEHS-96-1S3W, July I, 1996 ( 19
unhappy with the lack of face-to-face       investment in a host of education,         pages). Health, Education, Employ-
contact with the SSA staff who make         employment training, and worker            ment, Social Security, Welfare, and
disability decisions. A key initiative in   protection programs is administered        Veterans Reports.
SSA's redesign plan is the establish-       largely by the Departments of Educa-
ment of the disability claim manager        tion and Labor. This report provides       This monthly bibliography lists GAO
position, which would have total            information on the more than 1,100         documents on health, education,
responsibility for adjudicating disabil-    field offices supporting the Depart-       employment, social security, disabU-
ity claims and authorizing benefit          ments of Education and Labor. GAO          ity, welfare, and veterans issues. One
payments. The idea is to give the           discusses (1) the locations of the field   section summarizes reports and
claimant access to the person who           offices; (2) field office functions,       testinlony issued during the past
makes the determination and allow           staffmg, space, and operating costs;       month. Another section lists the titles
for a dialogue between them. This           and (3) recent changes in field office     of all documents issued during the
report discusses (1) SSA's efforts to       structure that the Departments have        past four months, organized chrono-
test and implement the disability           made, or are planning, to improve          logically by subject. Order forms are
claim manager position, (2) the mllior      efficiency.                                included, as is a list of subject area
concerns about the position, and (3)                                                   experts who can answer questions
SSA's efforts to staff the position.        HEHS-96-1S0, Sept. 10, 1996 (23            about specific reports.
                                            pages). Medigap Insurance: Alterna-
HEHS-96-176, Aug. 2, 1996 (28               tives for Medicare Beneficiaries to        HEHS-96-1S4, Sept. 17, 1996 (32
pages). 401(k) Pension Plans: Many          Avoid Medical Underwriting.                pages). Medicaid: States' Efforts to
Take Advantage of Opportunity to                                                       Educate and Enroll Beneficiaries in
Ensure Adequate Retirement Income.          Although the Medicare progranl             Managed Care.
                                            covers a substantial share of its
Many workers fill the gap between           beneficiaries' health expenses, it does    With managed care now being in-
social security and an adequate             require deductibles and coinsurance        creasingly offered as an option for
retirement income with pension              that can amount to thousands of            Medicaid recipients, reports of
benefits, and one in four workers with      dollars a year. Most beneficiaries         marketing abuses by managed care
pension coverage participates in a          obtain private insurance to supple-        organizations have grown, prompting
401(k) program. GAO found, among            ment Medicare when they become             several states to restrict direct
other survey results, that workers          eligible for the program at age 65. On     marketing efforts by managed care
with higher incomes and college             occasion, beneficiaries decide to          organizations. GAO found that some
educations tended to contribute more        change Medigap policies and may            managed care organizations and their
to 401(k) plans than others, and            then become subject to medical             agents have engaged in unscrupulous
women tend to invest more conserva-         underwriting-that is, the insurer can      practices to maximize beneficiary
tively than do men. Also, higher-           take into account a person's health        enrollment-and thereby boost plan
income workers and better-educated          status or medical history in deciding      revenues and commissions. These
workers with 401(k) pension plans           whether to sell a policy. GAO found        practices include bribing public
tend to contribute a larger proportion      that few beneficiaries decide later to     officials to obtain confidential infor-
of their salaries to their pension          change their policies, and those that      mation on beneficiaries, paying
accounts and to invest their pension        do have at least one alternative for       beneficiaries cash and providing other
funds in higher-yielding assets than do     changing without being subject to          incentives to sign up, deliberately
other 401(k) plan participants. Conse-      medical underwriting. These alterna-       misinforming beneficiaries about
quently, although many workers will         tives, however, are not guaranteed by      access to care, and enrolling ineligible
have enough retirement income, some         federal law, and it is possible that       beneficiaries-as many as 4,800 in
workers, especially those with less         circumstances could change in the          one state. To avoid these problen1S,
education and lower incomes, risk           future. Federal Medigap law could be       many states have banned or restricted
inadequate retirement incomes.              amended to furnish such a guarantee        direct-marketing activities by man-
                                            to beneficiaries who have been             aged care organizations and have
HEHS-96-17S, Sept. 16, 1996 (208            continuously covered by Medigap.           retained responsibility for enrolling or
pages). Education and Labor: Infor-         Such a change should not have any          disenrolling Medicaid beneficiaries.
mation on the Departments' Field            mllior effect because it would not         This report provides detailed informa-
Offices.                                    alter beneficiary incentives for           tion on four states-Minnesota,
                                            Medigap coverage.




                                             Page 75                                            GAO/OlMC-97-1ASubject Index
Missouri, Ohio, and Wasrungton-             HEHS-96-198, Sept. 3, 1996 (29            HEHS-96-207, Sept. 11, 1996 (28
with innovative education and enroll-       pages). VA Health Care: Travis            pages). Maternity Care: Appropriate
ment programs.                              Hospital Construction Project Is Not      Follow-Up Services Critical With
                                            Justified.                                Short Hospital Stays.
HEHS-96-195W, Aug. 1, 1996 ( 19
pages). Health, Education, Employ-          The Department of Veterans Affairs        Although the debate over maternity
ment, Social Security, Welfare, and         CIA) has requested $211 million for a     care has focused on the shortening of
Veterans Reports.                           hospital construction project at Travis   the hospital stay after childbirth, the
                                            Air Force Base in California. The         critical issue is whether mothers and
This monthly bibliography lists GAO         project would provide additional          newborns are receiving all necessary
documents on health, education,             hospital beds for veterans who were       services. Some services traditionally
employment, social security, disabil-       previously served by a VA hospital in     given in the hospital may be just as
ity, welfare, and veterans issues. One      Martinez, California, that closed in      effectively delivered in other settings.
section summarizes reports and              1991 because of concerns about            For example, breast-feeding instruc-
testimony issued during the past            earthquake safety. GAO concludes          tion and metabolic screening tests can
month. Another section lists the titles     that the additional hospital beds and     be done in a patient's home or at a
of all documents issued during the          outpatient clinic VA has proposed for     clinic. Discharging mothers and
past four months, organized chrono-         Travis are unnecessary. Today, more       babies from the hospital in less than
logically by subject. Order forms are       than 3,300 hospital beds in northern      48 hours after birth appears safe in
included, as is a list of subject area      California are going unused, including    those cases where the policy is
experts who can answer questions            beds in VA, Air Force, and community      selectively and flexibly applied to
about specific reports.                     hospitals. In addition, the VA popula-    uncomplicated vaginal deliveries and
                                            tion is expected to drop by about 25      where proper follow-up services are
HEHS-96-196, Sept. 12, 1996 (28             percent between 1995 and 2010.            provided. Some health plans have
pages). Social Security Administra-         Further, VA has not considered the        established comprehensive early
tion: Effective Leadership Needed to        likely negative effects the additional    discharge programs demonstrating
Meet Daunting Challenges.                   beds could have on other hospitals in     that short stays do not result in
                                            northern California, particularly         adverse outcome. Not all patients,
With a staff of 64,000, the Social          community hospitals in the Solano         however, will necessarily receive the
Security Administration (SSA) runs          County areas surrounding Travis that      full range of appropriate services.
the nation's largest federal program-       have occupancy rates of about 40          Evidence exists that women and
social security-as well as the largest      percent Several more efficient            newborns are being discharged early
cash welfare program-supplemental           alternatives are available to VA in the   without much follow-up care. Even
security income. SSA's expenditures         event that demand for hospital care       when follow-up care is provided, it is
totaled $363 billion in fiscal year 1995,   increases. For example, existing          not always delivered promptly by
nearly one-fourth of the S1.5 trillion      clinic's hospital referral patterns       trained health professionals. Requir-
federal budget. SSA programs touch          could be changed to manage excess         ing insurers to either cover hospital
the lives of nearly every American,         capacity in existing VA and Defense       stays of 48 hours for vaginal births or
providing benefits to the retired., the     Department hospitals. Similarly, VA       cover follow-up care within 72 hours
disabled, and their dependents and          clinics should be able to purchase        of discharge may be giving the public
survivors. This report, which is based      care from community hospitals more        a false sense of security. Extending
on July 1995 testimony before Con-          conveniently and at a lower cost than     hospital stays to 48 hours may provide
gress (GAOfl'-OCG-96- 7), discusses         would be incurred through the con-        for 'greater medical surveillance, but it
SSA's progress in meeting the chal-         struction of additional beds. Legisla-    does not include the period when
lenges of managing for results and          tion to expand VA's contracting           many neonatal problems usually
accountability; funding future retire-      authority is pending in Congress.         arise-at three days of age.
ment benefits; rethinking supplemen-        Finally, with the planned closure of
tal security income fraud, waste, and       the Mather hospital, VA has an            HEHS-96-209W, Sept. 1, 1996 (19
abuse; handling increasing workloads        opportunity to acquire a fully func-      pages). Health, Education, Employ-
with fewer resources; and establishing      tional facility for use as either a       ment, Social Security, Welfare, and
effective leadership.                       hospital or an outpatient clinic.         Veterans Reports.

                                                                                      This monthly bibliography lists GAO
                                                                                      documents on health, education,
                                                                                      employment, social security, disabil-



GAO/OIMC-97-1ASubject Ind ex                Page 76
ity, welfare, and veterans issues. One     T-HEHS-96-7, Nov. 2, 1995 (16              resources available for
section summarizes reports and             pages). Fraud and Abuse: Medicare          AmeriCorps·USA grantee's programs
testimony issued during the past           Continues to Be Vulnerable to Exploi-      came from sources outside the
month. Another section lists the titles    tation by Unscrupulous Providers, by       Corporation, mostly from other
of all documents issued during the         Sarah F. Jaggar, Director, Health          federal agencies and from state and
past four months, organized chrono-        Financing and Public Health Issues,        local governments. Total resources
logically by subject. Order forms are      before the Senate Special Committee        available per AmeriCorps·USA
included, as is a list of issue area       on Aging.                                  participant averaged $26,654, of which
experts who can answer questions                                                      about $17,600 came from the Corpora-
about specific reports.                    The vast majority of Medicare provid-      tion, $3,200 from non-Corporation
                                           ers try ~o abide by program rules and      federal sources, and $4,000 from state
Testimony                                  strive to meet beneficiaries' needs.       and local governments. The remaining
                                           Nevertheless, Medicare is over-            amount-roughly $1,80().......eame from
T-HEHS-96-5, Oct. 2, 1995 (8 pages).       whelmed in its attempts to keep pace       the private sector. Resources avail-
Medicare: Excessive Payments for           with, much less stay ahead of, those       able per participant were lower from
Medical Supplies Continue Despite          bent on cheating the system. GAO's         programs nm by nonfederal organiza-
Improvements, by Jonathan Ratner,          recent investigations of Medicare          tions than for programs nm by federal
Associate Director, Health Financing       fraud and abuse have implicated home       agencies. Total resources available to
Issues, before the Labor, Health and       health agencies, medical suppliers,        AmeriCorps·USA grantees' programs
Human Services, Education, and             pharmacists, rehabilitation therapy        equaled about $16 per service hour.
Related Agencies Subcommittee,             companies, and clinical laboratories.      AmeriCorps'USA grantee programs
Senate Committee on Appropriations.        They are attracted by the high reim-       are authorized to help communities
                                           bursement levels for some s upplies        address unmet human, educational,
Despite improvements by the Health         and services, and the few barriers to      environmental, and public safety
Care Financing Administration              entry into this lucrative marketplace.     needs. At the grantee sites that it
(HCFA) in claims monitoring, prob-         Once engaged in these profitable           visited, GAO found that the projects
lems in payments for medical supplies      activities, exploitative providers too     had been designed to strengthen
persist. The inflexibility of Medicare's   often escape detection because of          communities, develop civic responsi-
fee schedule results in payment rates      inadequate claims scrutiny, elude          bility, and expand educational oppor-
that are higher than wholesale and         pursuit by law enforcement authori-        tunities from program participants
many retail prices. In addition, in the    ties because of the authorities' limited   and others.
case of many part A claims, claims         resources and fragmented responsi-
processing contractors do not know         bilities, and face little risk of speedy   T-HEHS-96-41, Oct. 18, 1995 (16
what they are paying for, and in the       or appropriate punishment.                 pages). VA Health Care: Efforts to
case of part B claims, have not had a                                                 Increase Sharing With DOD and the
basis for questioning unreasonably         T-HEHS-96-14, Oct. 17, 1995 ( 11           Private Sector, by David P. Baine,
high charges. Neither type of contrac-     pages). National Service Programs:         Director, Health Care Delivery and
tor has been able to test claims for       AmeriCorps'USA-Early Program               Quality Issues, before the Hospitals
possible duplicate payments. For           Resource and Benefit Infonnation, by       and Health Care Subcommittee,
these reasons, Medicare has lost           Linda G. Morra, Director, Education        House Committee on Veterans'
hundreds of millions of dollars in         and Employment Issues, before the          Affairs.
unnecessary payments. By obtaining         Oversight and Investigations Subcom-
the legislative authority to modify        mittee, House Committee on Eco-            Health resources sharing, which
payment rates in accordance with           nomic and Educational Opportunities.       involves the buying, selling, or
market condition, requiring providers                                                 bartering of health care services, can
t o itemize claims, and introducing the    This testimony discusses the major         be helpful to both parties in the
relevant medical policies before           points raised in GAO's recent report       agreement and helps contain health
paying for new benefits, HCFA could        on AmeriCorps·USA (GAOIHEHS-95-            care costs by making better use of
reduce its doUar losses arising from       222, Aug. 1995). GAO found that for        medical resources. For example, it is
medical supply payments. Contractors       program 1994-95, total resources           often cheaper for a hospital to buy an
could avoid paying unreasonable            available for AmeriCorps·USA               infrequently used diagnostic test from
charges and making duplicate pay-          programs included more than the            another hospital than it is to buy the
ments.                                     appropriations for the Corporation for     equipment and provide the service
                                           National and Community Service.            itself. Similarly, a hospital using an
                                           More than one-third of the fmancial        e>..pensive piece of equipment only



                                           Page 77                                             GAO/OIMC-97-lA Subject Index
four hours a day but is staffed to                                                   Several factors, including federal
operate the equipment for eight hours     T-HEHS-96-57, Nov. 2, 1995 (9              mandates that expand eligibility,
could make money by seIling its           pages). Senior Community Service           medical price inflation, and creative
excess capacity to other providers.       Employment: Program Delivery Could         fmancing schemes, have boosted
This testimony discusses the status       Be Improved Through Legislative and        Medicaid costs. To contain these
and future direction of the Veterans      Administrative Actions, by Cornelia        expenses, 22 states have recently
Affairs' 01A) health care resources       M. Blanchette, Associate Director,         sought waivers from federal regula-
sharing with the Defense Department       Education and Employment Issues,           tions that limit their ability to run
(DOD) and the private sector. Specifi-    before the Early Childhood, Youth,         extensive managed care programs.
cally, GAO focuses on (1) the origin      and Families Subcommittee, House           Some of these states have required the
and the evolution of VA's sharing         Committee on Economic and Educa-           enrollment of their acute care pa-
authority, (2) the growth in sharing      tional Opportunities.                      tients-primarily low-income women
agreements, and (3) challenges facing                                                and children-into managed care
VA as it enters into more and more        The Labor Department's Senior              programs and have expanded cover-
sharing agreements with the private       Community Service Employment               age to previously ineligible persons.
sector.                                   Program finances part-time, mini-          Arizona, which runs a Medicaid
                                          mum-wage community service jobs            managed care program under a
T-HEHS-96-42 , Oct. 17, 1995 (18          for about 100,000 poor elderly Ameri-      federal waiver obtained more than 10
pages). OSHA: Potential to Reform         cans. GAO found that Labor distrib-        years ago, has lowered Medicaid
Regulatory Enforcement Efforts, by        utes program funds through noncom-         spending by millions of dollars. It also
Cornelia M. Blanchette, Associate         petitive grants to 10 national organiza-   leads the states in its development of
Director, Education and Employment        tions, called national sponsors, and to    information systems for collecting
Issues, before the Human Resources        state agencies. These national spon-       medical encounter data essential for
and Intergovernmental Relations           sors and state agencies, in turn , use     assessing quality of care.
Subcommittee, House Committee on          the grant funds to fmance local
Government Reform and Oversight.          employment projects run by commu-          T-HEHS-96-85, Feb. 7, 1996 (9
                                          nity service host agencies, such as        pages). Pharmacy Benefit Managers:
Although the Occupational Safety and      libraries, nutrition centers, and          Early Results on Ventures With Drug
Health Administration (OSHA) has          parks-that directly employ older           Manufacturers, by John C. Hansen,
accomplished more than may often be       Americans. GAO found that the              Assistant Director, Health Financing
acknowledged during its fairly short      relat ive distribution of funds to the     and Public Health Issues, before the
history, its current approaches to        national sponsors and state agencies       State Senate: Committee on insur-
regulating safety and health are in       along with Labor's method of imple-        ance, California
some cases dated and frustrating for      menting the hold harmless provisions
both workers and employers. What is       have resulted in the distribution of       Recently, some of the largest drug
needed, according to employer and         funds among and within states that         companies have merged or formed
employee representatives GAO spoke        bear little relationship to actual need.   alliances with some of the largest
with, is a greater service orientation.   GAO also found that, under Labor's         pharmacy benefit managers (PBM).
This means better communication           regulations, expenditures that GAO         PBMs manage the prescription drug
with business and labor, greater          believes to be administrative in nature    part of health insurance plans cover-
employer and worker accessibility to      may be charged to another cost             ing millions of Americans. These
compliance infonnation, and more          category, allowing grantees to exceed      ventures gained attention not only
cooperation with both business and        the statutory 15-percent limit on          because of their size but because of
labor tllroughout the regulatory          administrative costs.                      concerns that the PBMs would
process. By developing alternative                                                   automatically give preference to their
regulatory strategies that supplement     T-HEHS-96-75, Jan. 18, 1996 (14            manufacturer partners' drugs over
and in some instance substitute for its   pages). Medicaid: Spending Pressures       those made by competitors. The
often confrontational and labor-          Spur States Toward Program Restruc-        results of GAO's analysis of PBM
intensive enforcement approac h,          turing, by William J. Scanlon, Direc-      fornlularies-a list of preferred
OSHA may be ab le to carry out its        tor, Health Systems Issues, before the     prescription drugs by therapeutic
statutory responsibilities in a more      Human Resources and Intergovern-           class, often with cost designations-
effective manner. To its credit, OSHA     mental Relations Subcommittee,             indicate that continued oversight of
has begun to change its enforcement       House Committee on Government              mergers and alliances between
approach, although it may be too early    Reform and Oversight.                      pharmaceutical manufacturers and
to assess any effects.                                                               PBMs is warranted to ensure competi-



GAO/OIMC-97-1A Subject Index              Page 78
tion in the marketplace. For example,     reduce local overuse of some proce-        the information was disseminated and
the changes in Medco's fomlUlary that     dures, it is not designed to control       (2) what the status is of current
appear to favor Merck drugs do not        overuse of a procedure nationwide.         projections regarding the trust fund.
necessarily show that Medco auto-
matically gave preference to Merck        T-HEHS-96-88, Feb. 6, 1996 (8              T-HEHS-96-99, Mar. 8, 1996 (24
drugs over those of competitors.          pages). Supplemental Security In-          pages). VA Health Care: Opportunities
However, the formulary changes            come: Noncitizens Have Been a Major        to Increase Efficiency and Reduce
support the Federal Trade                 Source of Caseload Growth, by Jane         Resource Needs, by David P. Baine,
Commission's decision to continue         L. Ross, Director, Income Security         Director, Health Care Delivery and
monitoring the MercklMedco merger         Issues, before the Immigration             Quality Issues, before the VA, BUD,
and other such ventures.                  Subcommittee, Senate Committee on          and Independent Agencies Subcom-
                                          the Judiciary.                             mittee, Senate Committee on Appro-
T-HEHS-96-86, Feb. 8, 1996 (11                                                       priations.
pages). Medicare: Millions Can Be         Noncitizens are among the fastest
Saved by Screening Claims for Over-       growing groups receiving benefIts          With a fiscal year 1995 appropriation
used Services, by Sarah F. Jaggar,        from the Supplemental Security             of $16.2 billion, the Department of
Director, Health Financing and Public     Income Program (SSI), which pro-           Veterans Affairs (VA) health care
Health Issues, before the Human           vides means-tested benefits to eligible    system faces mounting pressure to
Resources and Intergovernmental           blind, elderly, or disabled persons.       contain or reduce spending as part of
Relations Subcommittee, House             Noncitizens represent nearly one-third     govemmentwide efforts to reach a
Committee on Government Reform            of aged SSI recipients and 5.5 percent     balanced budget. This testimony
and Oversight.                            of disabled recipients. About two-         addresses (1) VA's forecasts of future
                                          thirds of noncitizen SSI recipients live   resource needs, (2) opportunities to
Medicare contractors routinely pay        in three states-Califomia, New York,       run the VA system more efficiently,
hundreds of millions of dollars in        and Florida. On the whole, nonciti-        (3) differences between VA and the
Medicare claims without fIrst deter-      zens are more likely to receive SSI        private sector in terms of initiatives to
mining if the services provided are       than citizens, but this may be true        become more efficient, and (4) recent
necessary. GAO reviewed payments to       primarily for refugees and asylum          VA efforts to reorganize its health
doctors for six groups of high-volume     seekers. Adult children of aged            care system and create incentives to
medical procedures-ranging from           immigrants and others who say they         operate more efficiently.
eye examinations to chest x-rays-         are willing to fmancially support them
that accounted for nearly $3 billion in   sometimes do not. Eventually, many         T-HEHS-96-100, Mar. 7, 1996 (10
Medicare payments in 1994. GAO also       of these aged immigrants receive SS!.      pages). Defense Health Care:
surveyed 17 contractors to de~ermine      Also, some translators help nonciti-       TRICARE Progressing, but Some Cost
if they had used medical necessity        zens to fraudulently obtain SSI            and Performance Issues Remain, by
criteria in their claims processing to    disability benefIts.                       Stephen P. Backhus, Associate
screen for these six groups of proce-                                                Director, Health Care Delivery and
dures. For each of the six groups,        T -HEHS-96-94, Feb. 29, 1996 (7            Quality Issues, before the Military
more than half of the 17 contractors      pages). Status of Medicare's Federal       Personnel Subcommittee, House
failed to use automated screens to        Hospital Insurance Trust Fund, by          Committee on National Security.
flag claims for unnecessary, inappro-     Sarah F. Jaggar, Director, Health
priate, or overused treatments. These     Financing and Public Health Issues,        The Defense Department's (DOD)
prepayment screens could have saved       before the House Committee on Ways         nationwide managed health care
millions of taxpayer dollars now          and Means.                                 program-TRICARE-represents a
wasted on questionable services.                                                     sweeping reform of the $15 billion per
Problems with controlling payments        This testimony focuses on GAO's            year military health care system.
for widely overused procedures            ongoing review of the status of            TRICARE seeks to improve access to
continue because the Health Care          Medicare's Federal Hospital Insurance      care and ensure high-quality, consis-
Financing Administration (HCFA)           (part A) Trust Fund. GAO discusses         tent health care benefits for the 1. 7
lacks a national strategy to control      (1 ) when the administration became        million active-duty service members
these payments. HCFA now relies on        aware that the trust fund had an           and some 6.6 million non-active-duty
contractors to focus on procedures        operating defIcit-that is, cash outlays    beneficiaries. It also seeks to preserve
where local use exceeds the national      exceeded cash receipts-of $36              choice for non-active-duty beneficia-
average. Although this approach helps     million for fiscal year 1995 and how       ries by allowing them to choose
                                                                                     whether to enroll in TRICARE Prime,



                                          Page 79                                             GAO/OIMC-97-lA Subject Index
which resembles a health mainte-         served as deterrents to abuse of           GAO's analysis of 1992 data found that
nance organization; use a preferred      subjects' rights and welfare. However,     17.5 percent of nearly 30 million
provider organization; or use civilian   little data exist that directly measure    Medicare recipients were still being
health care providers under a fee-for-   the effectiveness of human subject         prescribed drugs that were generally
service arrangement. Despite initial     protection regulations. At the same        unswtable for their age group. Al-
beneficiary confusion caused by          time, no practical level of oversight      though this is an improvement over
education and marketing problems,        can guarantee that each researcher         the almost 25 percent reported for
early implementation of the program      will protect subjects with complete        1987 data, the inappropriate use of
is progressing consistent with con-      integrity. Time, resource, and other       prescription drugs remains a major
gressional and DOD goals. Measures       pressures threaten to reduce the           health problem for the elderly.
may be necessary now, however, such      effectiveness of local review board        Insufficient coordination of patient
as gathering cost and access-to-care     and federal agency oversight. As a         drug therapies and weaknesses in
data, to help Congress and DOD better    result, continued vigilance over           communication between providers,
assess the program's future success.     human subject research must remain         pharmacists, and patients have
In addition, retirees, who make up       a priority for the research community      compounded the problem. Inappropri-
half of those eligible for military      and the oversight agencies.                ate prescribing practices and the
health care, remain concerned about                                                 enslting drug use have caused many
TRlCARE's effect on their access to      T-HEHS-96-107, Mar. 20, 1996 (43           elderly persons to suffer harmful
medical services.                        pages). VA Health Care: Approaches         effects that, according to the Food
                                         for Developing Budget-Neutral              and Drug Administration, have
T-HEHS-96-102 , Mar. 12, 1996 (9         Eligibility Reform, by David P. Baine,     resulted in hospitalizations costing
pages). Scientific Research: Contin-     Director, Health Care Delivery and         $20 billion annually. The costs are
ued Vigilance Critical to Protecting     QuaJjty issues, before the Senate          partly covered by Medicare and
Human Subjects, by Sarah F. Jaggar,      Committee on Veterans' Affairs.            Medicaid. States, advocacy groups,
Director, Health Financing and Public                                               and physician and pharmacy organiza-
Health issues, before the Senate         Reforming eligibility for health care      tions have, however, taken steps to
Committee on Governmental Affairs.       benefits offered by the Department of      reduce inappropriate drug use. In
                                         Veterans Affairs (VA) would pose a         addition, managed care, pharmacy
Experiments ranging from the 4(}-year    major challenge even with unlimited        benefit management, and other
Tuskegee study, in which treatment       resources. But with Congress and VA        coordinated health care systems have
was withheld from black men with         facing mounting pressure to limit VA       features designed to reduce inappro-
syphilis, to the recently disclosed      health care spending as part of            priate prescription drug use among
Cold War radiation experiments have      governmentwide efforts to reduce the       the elderly.
revealed breakdowns in the protection    deficit, this challenge has become
of human subjects in government          even greater. This testimony dis-          T-HEHS-96-127, Apr. 18, 1996 (8
research. Questions have been raised     cusses (1) the problems that VA's          pages). Employment Training: Suc-
about whether study participants         current eligibility and contracting        cessful Projects Share Common
understood what they would be            provisiOns create for veterans and         Strategy, by Carlotta Joyner, Director,
subjected to and had an adequate         providers, (2) the relationship be-        Education and Employment Issues,
opportwtity to decline to participate.   rween inappropriate admissions to VA       before the Human Resources and
GAO found that better oversight of       hospitals and VA eligibility provisions,   Intergovernmental Relations Subcom-
tens of thousands of research projects   (3) proposals to reform VA eligibility     mittee, House Committee on Govern-
funded by the Department of Health       and contracting rules and their            ment Reform and Oversight.
and Human Services and drug stodies      potential impact on the deficit, and (4)
regulated by the Food and Drug           options to achieving budget-neutral        Strong foreign competition has
Administration appears to have           eligibility reform.                        underscored the need for a skilled
reduced the likelihood of serious                                                   U.S. labor force. It has also focused
abuses of human subjects. The            T-HEHS-96-114, Mar. 28, 1996 (6            attention on the many Americans who
conspicuous activity of local instito-   pages). Prescription Drugs and the         are unprepared for employment. The
tional review boards and human           Elderly: Many Still Receive Potentially    federal government earmarked about
subject protection efforts by federal    Harmful Drugs Despite Recent               $20 billion in fIScal year 1995 for 163
agencies have heightened the research    Improvements, by Sarah F. Jaggar,          different training programs. GAO
community's awareness of ethical         Director, Health Financing and Public      visited six projects that had outstand-
conduct standards, increased compli-     Health Issues, before the Senate           ing results, as indicated by project
ance with federal regulations, and       Special Commjttee on Aging.                completion rates, job placement and



GAO/OIMC-97-1A Subject Index              Page 80
retention rates, and wages. The            Rapid Spending Growth, by Janet L.       the Civilian Conservation Corps of the
projects GAO visited differed in many      Shikles, Assistant Comptroller Gen·      1930s. GAO discusses the total
ways, but they shared a common             eral, before the Health Subcommittee,    amount of resources available [rom to
strategy that has four key elements:       House Committee on Ways and              support AmeriCorPs'USA during its
(1) ensuring that clients were commit·     Means.                                   first year of operation (1995-95),
ted to training and getting jobs; (2)                                               expressed on a per·participant and
removing barriers, such as a lack of       Improvements to Medicare's tradi·        per·service-hour basis. GAO also
child care, that might hinder clients'     tional fee-for·service program could     discusses the resources available to
ability to futish training and get and     yield much·needed savings. With          programs run by nonfederaJ and
keep jobs; (3) improving clients'          better management, this program,         federal entities and cites examples of
employability skills, such as getting to   which now serves about 90 percent of     program benefits. In addition, GAO
jobs regularly and on time, working        beneficiaries, could run more effi·      highlights some of the recent legisla·
well with others, and dressing and         ciently while continuing to serve well   tive, budgetary, and programmatic
behaving appropriately; and (4)            the nation's elderly. This means         changes in AmeriC0rPs'USA since
linking occupational skills training       allowing Medicare to use tools similar   GAO testified before Congress in
with the local labor market. The           to those used by private payers to       October 1995.
upshot is that clients are ready,          manage health care costs. Negotiated
willing, and able to benefit from          discounts, competitive bidding,          T·HEHS-96-147, June 5, 1996 ( 16
training and employment programs           preferred providers, case management     pages). Social Security: Disability
and move toward self·sufficiency.          utilization reviews-these and other      Programs Lag in Promoting Return to
                                           tools allow private payers to use        Work, by Jane L. Ross, Director,
T·HEHS-96-134, Apr. 24, 1996 (9            market forces to control health care     Income Security Issues, before the
pages). VA Health Care: Efforts to         costs. Most, however, are not autho·     Senate Special Commiltee on Aging.
Improve Veterans' Access to Primary        rized for general use by the Health
Care Services, by David P. Baine,          Care Financing Administration            Each week, the disability insurance
Director, Health Care Delivery and         CHCFA), which runs Medicare. This        and supplemental security income
Quality Issues, before the Hospitals       results in a publicly fmanced program    programs make more than $1 billion
and Health Care Subcommittee,              that pays higher·than·market rates for   in cash payments to persons with
House Committee on Veterans'               some goods and services and some·        disabilities. Although these payments
Affairs.                                   times pays without question for          provide a measure of income security,
                                           improbably high bills. Recent HCFA       they do little to enhance the work
The Department of Veterans Affairs         efforts and pending legislation to       capacities and promote the economic
(yA) runs one of the nation's largest      address these problems appear            independence of recipients. Societal
health care systems, including 173         promising. In addition, HCFA should      attitudes have shifted, and current
hospitals and 220 clinics. Last year,      test the feasibility of applying man·    law, such as the Americans With
VA spent about S16 million serving 2.6     agement strategies in high-cost high·    Disabilities Act, promotes economic
million veterans. This testimony           utilization areas. Finally, Congress     self·sufficiency among the disabled. A
focuses on VA efforts to increase          needs to give the Department of          growing number of private companies
veterans' access to health care. GAO       Health and Human Services the            are exploring ways to retum people
discusses legal, fmandal, and equity·      flexibility to make prompt price         with disabilities to the workforce.
of·access issues [acing VA managers        adjustments.                             Moreover, medical advances and new
as they try to establish new "access                                                technologies provide greater opportu·
points"-a VA clinic or a VA funded or      T·HEHS-96-146, May 21,1996 (13           nities for people with disabilities to
reimbursed private clinic, group           pages). Nat.ional Service Programs:      work. This testimony discusses how
practice, or individual practitioner       AmeriCorPs'USA-First Year Experi·        the structure of the disability instil"'
that is geographically separate from       ence and Recent Program Initiatives,     ance and supplemental security
the parent facility. Access points are     by Cornelia M. Blanchette, Associate     income programs impede return to
intended to provide primary care to all    Director, Education and Employment       work and how strategies used in other
veterans and refer those needing           Issues, before the Senate Committee      disability systems could help restruc·
specialized services or inpatient stays    on Labor and Human Resources.            ture the programs to encourage
to VA hospitals.                                                                    recipients to retum to work.
                                           This testimony presents information
T·HEHS-96-138, Apr. 30, 1996 (16           on the AmericorPs*USA program,
pages). Medicare: Private Payer            among the largest national and
Strategies Suggest Options to Reduce       community service programs since



                                           Page 81                                           GAO/OIMC-97-1ASubject Index
T-HEHS-96-149, May 23, 1996 (10           travel expenses. The Social Security       Issues, before the Hospitals and
pages). Supplemental Security In-         Administration (SSA), like other           Health Care Subcommittee, House
come: Noncitizen Case load Continues      federal agencies and some private          Committee on Veterans' Affairs.
to Grow, by Jane L. Ross, Director,       sector fmus, pays for approved time
Income Security Issues, before the        spent by its employees on unjon            The Department of Veterans Affairs
Human Resources Subcommittee,             activities. To ensure accurate tracking    (VA) ailows its doctors to prescribe
House Committee on Ways and               of time spent on union activities and      over-the-counter products because
Means.                                    the staff conducting them , SSA has        concerns have been raised that some
                                          developed and is testing a new time-       veterans may lack the money to buy
Noncitizens are one of the fastest        reporting system for its field offices     needed items. VA requires prescrip-
growing groups of recipients of           and teleservice centers. GAO believes      tions as a way to control veterans'
supplemental security income (SS!)        that the new time-reporting system         access to over-the-counter products in
benefits. They represent nearly one-      should be implemented agencywide,          VA pharmacies. In fIScal year 1995, for
third of aged SSI recipients and about    including at headquarters, program         example, VA pharmacies dispensed
six percent of disabled recipients.       service centers, the Office of Hearing     analgesics, such as aspirin and
Although the growth rate for nonciti-     and Appeals, and units now using the       acetaminophen, nearly 3 million
zen caseloads has slowed, it is still     less reliable manual reporting system.     times. The benefits package that most
higher than that for citizens, and the    With an improved agencywide system,        VA facilities offer for over-the-counter
proportion of noncitizens relative to     SSA should have better information on      products is more generous than that
other SSI recipients continues to rise.   where its resources are being spent.       available from other health plans. VA
About two-thirds of noncitizens                                                      also provides other features, such as
recipients-roughly 520,000-live in        T-HEHS-96-158 , June 6, 1996 (13           free over-the-counter product mail
three states: California, New York,       pages). Higher Education: Ensuring         service and deferred credit for
and Florida On the whole, nonciti-        QuaJjty Education From Proprietary         copayments owed, that are not
zens are more likely to receive SSI       Institutions, by Cornelia M.               common in other plans. GAO makes
than are citizens, but this may be        Blanchette, Associate Director,            several suggestions for reducing the
primarily true for refugees and           Education and Employment Issues,           amount of money VA spends to
asylees. Adult children of aged           before the Human Resources and             dispense over-the-counter products.
immigrants and others who say they        Intergovernmental Relations Subcom-        First, VA staff could more strictly
are willing to financially support them   mittee, House Committee on Govern-         adhere to statutory eligibility rules.
sometimes do not. Eventuaily, some        ment Reform and Oversight.                 Second, VA could more efficiently
of these older immigrants receive SS!.                                               dispense over-the-counter products
Also, some translators have helped        The Department of Education runs a         and collect copayments. Third, VA
noncitizens to fraudulently obtain SSI    host of student fmancial aid programs      facilities could further reduce the
disability benefits.                      under title IV of the Higher Education     number of over-the-counter products
                                          Act of 1965. Under title IV, the federal   available to veterans on an outpatient
T-HEHS-96-150, June 4, 1996 (20           government made about $35 billion          basis. Finaily, Congress could expand
pages). Social Security: Union Activity   available in fIScal year 1995 to about     copayment requirements.
at the Social Security Administration,    seven million students pursuing
by Jane L. Ross, Director, Income         postsecondaty education. This              T-HEHS-96-166, June 20, 1996 ( 11
Security Issues, before the Social        testimony discusses "gatekeeping"-         pages). Davis-Bacon Act: Process
Security Subcommittee, House              the process of ensuring that only          Changes Could Address Vulnerability
Committee on Ways and Means.              schools providing quality education        to Use of Inaccurate Data in Setting
                                          and training have access to title IV       Prevailing Wage Rates, by Carlotta
Union activities at federal agencies      funds. GAO (1) lays out an overview        Joyner, Director, Education and
can range from representing employ-       of tile regulatory framework for title     Employment Issues, before the
ees in complaints against manage-         IV programs and (2) provides its           Workforce Protections Subcommittee,
ment to bargaining over changes in        preliminaty observations on propri-        House Committee on Economic and
working conditions to negotiating         etary schools.                             EducationalOpportunjties, and
union contracts with management.                                                     Oversight and Investigations Subcom-
The government pays its workers'          T-HEHS-96-162 , June 11, 1996 (17          mittee, House Committee on Eco-
salaries and expenses for the time        pages). VA Health Care: Opportunities      nomic and Educational Opportunjties.
they are ailowed to spend on union        to Reduce Outpatient Pharmacy
activities; it also provides other        Costs, by David P. Baine, Director,        The Congressional Budget Office
support, such as supplies and some        Health Care Delivery and QuaJjty           estimates that in fiscal year 1996,the



GAO/OIMC-97-1A Subject Index              Page 82
federal government will spend $42        population; and (5) approaches for       T-HEHS-96-206, Sept 5, 1996 (13
billion on construction contracts.       preserving VA's direct delivery          pages). Blue Cross and Blue Shield:
Given the magnitude of these expendi-    system, alternatives to preserving the   Change in Pharmacy Benefits Affects
tures, inaccurate wage detenninations    direct delivery system, and combina-     Federal Enrollees, by Sarah F. Jaggar,
could lead to excessive government       tions of both. both.                     Director, Health Services Quality and
construction costs or to large mun-                                               Public Health Issues, before the Civil
bers of workers being paid wages and     T-HEHS-96-205 , Sept. 5, 1996 (10        Service Subcommittee, House Com-
fringe benefits that are lower than      pages). Fraud and Abuse: Providers       mittee on Government Reform and
required by law. GAO testified that      Excluded From Medicaid Continue to       Oversight.
vulnerabilities exist in the Labor       Participate in Federal Health Pro-
Department's current wage determina-     grams, by Leslie Aronovitz, Associate    Of the 400 health plans available to
tion process that could result in wage   Director, Healtll Services Quality and   federal workers, the Blue Cross and
detenninations being based on            Public Health Issues, before the         Blue Shield plan is the largest, cover-
fraudulent or otherwise inaccurate       Human Resources and Intergovern-         ing nearly 42 percent of the four
data. GAO urges Labor to improve         mental Relations Subcommittee,           million federal enrollees. To control
immediately its process to verify wage   House Committee on Government            drug costs, Blue Cross and Blue
data submitted by employers.             Reform and Oversight.                    Shield recently began requiring
                                                                                  federal enrollees to pay 20 percent of
T-HEHS-96-172, June 27, 1996 (24         Although the Department of Health        the price of prescriptions purchased
pages). Veterans' Health Care: Chal-     and Human Services' (HHS) Office of      at participating retail pharmacies.
lenges for the Future, by David P.       Inspector General (~IG) has excluded     Previously, federal enrollees did not
Baine, Director, Health Care Delivery    thousands of health care providers       have to pay anything for prescription
and Quality Issues, before the Hospi-    from state Medicaid programs be-         drugs. Enrollees may continue to
tals and Health Care Subcommittee,       cause they committed fraud or            receive drugs free of charge, however,
House Committee on Veterans'             delivered poor care to beneficiaries,    if they buy them through the plan's
Affairs.                                 weaknesses in the OIG's process          mail order program. Members of
                                         could leave such providers on the        Congress and retail pharmacies have
With a budget of $16.6 billion and a     rolls of federal health programs for     raised concerns about the quality of
network of hundreds of hospitals,        unacceptable periods of time. This       mail order services and the effect of
outpatient clinics, and nursing homes,   puts at risk the health and safety of    the change on the business of retail
the Department of Veterans Affairs'      beneficiaries and compromises the        pharmacies that serve plan enrollees.
(VA) health care system provides         financial integrity of Medicaid,         To provide pharmacy services to its
medical services to more than 26         Medicare, and other federal health       federal employee health plan, Blue
million veterans. VA is seeking to       programs. The weaknesses include (1)     Cross and Blue Shield contracts with
fundamentally change the way in          lengthy delays in the OIG's decision     two pharmacy benefit managers: PCS
which it runs its health care delivery   process) even in cases where a           health Systems, Inc., which provides
and financing systems. It is also        provider has been convicted of fraud     retail prescription drug services, and
seeking authority to significantly       or patient abuse and neglect; (2)        Merck-Medco Managed Care, Inc. ,
expand eligibility for health care       inconsistencies among OIG field          which provides mail order drug
benefits and to both buy health care     offices regarding which providers will   services. This testimony discusses (1)
services from and sell health services   be considered for nationwide exclu-      Blue Cross and Blue Shield's reasons
to the private sector. This testimony    sion; (3) states not informing the OIG   for the benefit change, (2) how it was
discusses (1) changes in the veterans    about providers who agree to stop        implemented, (3) the change's effect
population and the demand for VA         participating in their Medicaid pro-     on retail pharmacies, and (4) the
health care services; (2) how well the   grams even though the provider           extent to which PCS and Medco have
existing VA system, and other public     withdrew because of egregious            met their contract requirements for
and private health benefits programs,    patient care or abusive billing prac-    services provided to the federal health
meet the health care needs of veter-     tices; and (4) how states use informa-   plan.
ans; (3) steps that could be taken       tion from the OlG to remove excluded
using existing resources and legisla-    providers from state programs.           T-HEHS-96-210, Sept 12, 1996 (17
tive authority to address veterans'      Because of incomplete records in the     pages). SSA Benefit Statements:
unmet health care needs and increase     DIG field offices, GAO could not         Statements Are Well Received by the
equlty of access; (4) how other          reach a conclusion as to the magni-      Public but Difficult to Comprehend,
countries have addressed the needs of    tude of these problems.                  by Diana S. Eisenstat, Associate
an aging and declining veteran                                                    Director, Income Security Issues,



                                          Page 83                                          GAO/OlMC-97 -IA Subject Index
before the Social Security Subcommit-     complex as SSA expands the work            Director, Health Financing and
tee, House Committee on Ways and          required' to complete them. The            Systems Issues, before the House
Means.                                    agency's approach is likely to limit the   Older Americans Caucus.
                                          chances for the project's success and
The personal earnings and benefit         has delayed implementation: testing        The Health Care Financing Adminis-
estimate is a six-page statement          milestones have slipped and support        tration (HCFA) now estimates that 4.3
produced by the Social Security           for the redesign effort has waned. In      million Medicare beneficiaries are
Administration (SSA) that supplies        addition, the increasing length of the     enrolled in health maintenance
information about a worker's yearly       overall project and specific initiatives   organizations (HMO). Enrollment is
earnings on record at SSA; eligibility    heighten the risk of disruption from       believed to be growing at a rate of
for social security retirement, survi-    turnover anlOng key executives. GAO        100,000 new members per month. This
vor, and disability benefits; and         believes that as SSA proceeds with its     testimony discusses ways to ensure
estimates of these benefits. SSA has      redesign project it should focus on        that quaJjty care is provided to the
tried to improve the statement, and       key initiatives, starting first with       Medicare beneficiaries joining these
the public has found it to be helpful     those that will quickly and signifi-       HMOs. HCFA, which runs Medicare,
for retirement planning. However, the     cantly reduce claims processing time       fmds the potential cost savings
statement falls short in clearly          and administrative costs.                  associated with managed care attrac-
communicating the complex informa-                                                   tive. Concerns have been raised,
tion that readers need to understand      T-HEHS-96-212 , Sept. 12, 1996 (8          however, that the cost control strate-
concerning SSA's programs and             pages). Prescription Drugs: Implica-       gies employed by HMOs could under-
benefits. For example, the document's     tions of Drug Labeling and Off-Label       mine the quaJjty of care. This testi-
design and organization make it           Use, by Sarah F. Jaggar, Director,         mony discusses (l) quality assess-
difficult for readers to locate impor-    Health Services Quality and Public         ment methods used by large corporate
tant information. Readers are also        Health Issues, before the Human            purchasers of health insurance from
confused by several important expla-      Resources and Intergovernmental            HMOs, (2) quaJjty assessment meth-
nations, such as who in their family is   Relations Subcommittee, House              ods used by HCFA in administering
also eligible for benefits and how        Committee on Government Reform             the Medicare HMO program, (3)
much these family members might           and Oversight.                             quaJjty assessment methods HCFA
receive. SSA is considering redesign-                                                plans for the future, and (4) what both
ing the statement, but only if this       Physicians use a drug "off-label" when     corporate purchasers and HCFA are
effort reduces printing costs. This       they prescribe a Food and Drug             doing to share information about
approach overlooks hidden costs,          Administration (FDA)-approved drug         quality with employees and Medicare
such as (1) inquiries from people who     for treatments other than those            beneficiaries.
do not understand the statement and       specified on the label. GAO testified
(2) the possibility that a poorly         that off-label prescribing is prevalent    T-HEHS-96-216, Sept. 19, 1996 (8
designed statement can undermine          and presents various problems for          pages). Prescription Drug Pricing:
public confidence.                        policy-makers at different times. As it    Implications for Retail Pharmacies, by
                                          stands now, the problem is that the        Sarall F. Jaggar, Director, Health
T-HEHS-96-211, Sept. 12, 1996 (7          drug industry believes that labels         Services Quality and Public Health
pages). SSA Disability Reengineering:     overly constrain its ability to promote    Issues, before the Oversight and
Project Magnitude and Complexity          its products. This problem can be          Investigations Subcommittee, House
Impede Implementation, by Diana S.        solved either by relying on sources in     Committee on Commerce.
Eisenstat, Associate Director, Income     addition to the label to defme appro-
Security Issues, before the Social        priate promotion or by improving the       Congressional hearings during the late
Security Subcommittee, House              process for updating the label. These      1980s highlighted the fact that the
Committee on Ways and Means.              two options are not necessarily            prices that consumers paid for
                                          mutually exclusive and both have           prescription drugs were increasing
Given the high cost and lengthy           benefits and drawbacks.                    more rapidly than the rate of inflation.
processing times of the Social Secu-                                                 In 1990, Congress tried to control
rity Administration's (SSA) current       T-HEHS-96-215 , Sept. 19, 1996 (16         prescription drug expenditures by
disability claims process, the agency     pages). Medicare: Private-Sector and       significantly changing the way that
needs to continue its redesign efforts.   Federal Efforts to Assess Health Care      Medicaid pays for outpatient drugs.
SSA's redesign plan is proving to be      Quality, by William J. Scanlon,            Vertical integration in the pharmaceu-
overly anlbitious, however. Some                                                     tical market later became a concern,
initiatives are also becoming more                                                   particularly mergers between large



GAO/OIMC-97-1A Subject Index              Page 84
drug companies and pharmacy benefit
managers. This testimony responds to
the following three questions: How
and why has the process by which
drugs get from manufacturers to
patients changed? What have been the
consequences for retail pharmacies of
changes in this process? What general
strategies are retail pharmacies
undertaking or proposing to respond
to an increasingly competitive envi-
ronment?




                                        Page 85   GAO/OIMC-97 -lA Subject Index
NSIAD                                    limited shlpboard space. Because the      lems are resolved now, the inaccurate
                                         Hunter cannot take off or land verti-     data will be integrated into the new
NSIAD-96-1, Mar. 12, 1996 (41            cally, a ship's crew would have to        system.
pages). State Department: Actions        clear the back half of the ship's deck
Needed to Improve Embassy Manage-        to allow the Hunter to take off and       NSIAD-96-4, Jan. 8, 1996 (12 pages).
ment.                                    land. Helicopters and jets would have     Army Acquisition: Medium Trucks
                                         to be moved below deck or to the          Passed Key Operational and Technical
The State Department has not acted       front of the shlp. For Hunter landings,   Tests.
on recommendations by GAO and            the crew would also have to erect a
Congress to improve the management       protective barrier to shleld parked       Army trucks-part of the Family of
of its overseas posts. GAO suggested     aircraft from an out-of-control Hunter.   Medium Tactical Vehlcles-passed
that each diplomatic post establish a    In addition, Hunter's ranger of about     technical and operational tests, paving
proactive management improvement         100 nules is considered inadequate in     the way for the Army's August 1995
program. Although State has taken        the vast Pacific. Also, when Hunter is    decision to approve full-rate produc-
steps to improve embassy manage-         viewing land targets, its limited range   tion. Following contractor modifica-
ment controls, these initiatives were    means that the ship must move closer      tions to correct vehlcle deficiencies
inconsistently implemented at embas-     to shore, increasing the risk from        found in earlier testing, the Army
sies GAO visited. As a result, long-     shore patrol attacks, mines , and other   conducted (1 ) a limited follow-on
standing management deficiencies         threats. GAO concludes that DOD is at     technical test to determine whether
continue to hinder the effiCiency and    risk of investing in a spy plane that     the trucks could meet contractual
the effectiveness of many embassies'     may never be used.                        reliability and performance require-
operations. By contrast, three embas-                                              ments and (2) a full operational test to
sies-those in Ankara, Turkey; Dhaka,     NSIAD-96-3 , Jan. 29, 1996 (15 pages).    determine whether it could meet its
Bangladesh; and Tunis, Tunisia-have      Army lnventory: Budget Requests for       operational reliability and other
implemented management practices         Spare and Repair Parts Are Not            mission requirements when operated
to improve administrative operations.    Reliable.                                 and mruntained by soldiers. The
These practices, whlch include                                                     trucks exceeded reliability require-
tracking accounts receivables and        The Army continues to rely on inaccu-     ments in both tests and met most
automating travel vouchers, have         rate data to determine its inventory      performance requirements. However,
strengthened internal controls,          requirements for spare and repair         many of the test vehlcles had not been
improved compliance with regula-         parts. For 258 items GAO reviewed,        produced on the production line or
tions, reduced costs, and led to more    the Army overstated the inventory         had been retrofitted to correct past
efficient and effective operations. In   shortfall by nearly $200 million. If      deficiencies. Also, the contractor
addition, these embassies differed       accurate information had been used,       pretested both the technical and
from other posts GAO visited because     the shortfall for these items would       operational test vehlcles and cor-
of the active involvement of senior      have totaled $23 million rather than      rected deficiencies before delivering
management and the use of existing       the $211 million reported. Although       them to the Anny for testing.
reporting mechanisms. These manage-      the Army is aware of many of the
ment practices could be replicated at    processing, policy, data, and system      NSIAD-96-5, Feb. 21, 1996 (60
other embassies.                         problems, it has not corrected them       pages). Best Management Practices:
                                         because the Defense Department            Reengineering the Air Force's Logis-
NSIAD-96-2, Dec. 1, 1995 (10 pages).     (DOD) is developing a system to           tics System Can Yield Substantial
Unmanned Aerial Vehlcles: Hunter         determine standard requirements for       Savings.
System Is Not Appropriate for Navy       all the services as part of its Corpo-
Fleet Use.                               rate lnformation Management initia-       Redesign of the Air Force's $33 billion
                                         tive. For that reason, DOD has limited    reparable parts inventory could
The Defense Department (DOD) is          the amount that the services can          benefit from adopting leading-edge
proceeding with the development of a     spend to change their existing sys-       practices used by the commercial
variant of the Hunter unmanned aerial    tems. Army officials srud that the        airline industry to reduce costs and
vehicle for use on Navy amphibious       standard system will not be up and        improve services. However, success
assault shlps despite objections from    running for at least four years. In the   hinges on the Air Force's ability to
Navy fleet commanders, who do not        interim, the Army's budget requests       overcome major barriers, such as
want the spy plane on their vessels      may not represent its actual funding      organizational resistance to change
because of the Hunter's questionable     needs for spare and repair parts.         and poor inventory data Some
performance record and because of        Furthennore, unless the data prob-        commercial manufacturers are



GAO/OIMC-97-1A Subject Index              Page 86
providing aircraft parts to their         ees may not appeal adverse actions to      however, always return overpayments
customers on a just-in-time basis, and    the Merit Systems Protection Board.        unless told to do so. The Defense
suppliers are assuming inventory          GAO's review indicated that with the       Finance and Accounting Service
management responsibilities for           retention of summary removal au-           Center in Columbus, Ohio, cannot
airlines and manufacturers. One           thorities, these intelligence agencies     readily detect payment discrepancies
airline has reengineered its entire       could follow standard federal prac-        because of significant errors in its
logistics system in an integrated         tices, including the right to appeal       automated payment records. Despite
fashion by examining all aspects of its   adverse actions to the Merit Systems       these errors, Center personnel pay
logistics operations to pinpoint and      Protection Board, ,vithout undue risk      contractors' invoices as if the pay-
remove inefficient processes and          to national security. GAO sees no          ment data were correct. The Center
functions. The Air Force is beginning     justification for treating employees at    did not properly pursue recovery after
to test private-sector management         these intelligence agencies differently    overpayments were reported by
practices, such as removing unneces-      from employees at other federal            contractors or identified through
sary inventory layers, repairing parts    agencies except in rare national           contract reconciliation. The Center's
as they break, and rapidly transport-     security cases.                            delay in collecting overpayments has
ing parts between the end user and                                                   been long and costly. For the $84.2
the repair facility. GAO also recom-      NSIAD-96-7, Oct. 17, 1995 (25              million in overpayments that it
mends establishing a top-level De-        pages). Enhanced Fiber Optic Guided        reviewed, GAO estimates that recov-
fense Department position to cham-        Missile: Need to Derme Requirements        ery delays cost the government about
pion change, using third-party logis-     and Establish Criteria to Assess           $10.6 million in interest. Even after a
tics services more often, building        Performance.                               public accounting fmn completed
closer partnerships with suppliers,                                                  contract reconciliations to identify the
encouraging suppliers to use local        The Army plans to acquire limited          amounts owed the government, the
distribution centers, centralizing        quantities of the Enhanced Fiber           Center did not recover overpayments
repair functions, and modifying repair    Optic Missile and field them for a two-    promptly.
facilities to accommodate these new       year user evaluation. The missile is
practices.                                designed to strike annored combat          NSIAD-96-9, Jan. 26, 1996 (24 pages).
                                          vehicles and other targets beyond the      Military Equal Opportunity: Problems
NSIAD-96-6, Mar. 11, 1996 (68             line of sight at ranges up to 15 kilome-   With Services' Complaint Systems Are
pages). Intelligence Agencies: Se-        ters. The Army expects the limited         Being Addressed by DOD.
lected Personnel Practices at CIA,        acquisition to cost about $280 million,
NSA, and DIA Compared to Other            but, on the basis of the results of the    Defense Department policy holds that
Agencies.                                 demonstration and evaluation, a much       equal opportunity is integral to the
                                          larger acquisition could occur. This       unity, readiness, and total defense
Intelligence agencies employ thou-        report reviews selected aspects of the     capability of its forces. Unwarranted
sands of people who, for reasons of       Army's plans for acquisition of the        discriminatory behavior, including
national security, are not covered by     missile system.                            racial discrimination and sexual
federal personnel statutory protec-                                                  harassment, is not to be condoned or
tions. Members of Congress have           NSIAD-96-8, Oct. 6, 1995 (23 pages).       tolerated. From fIScal year 1989
raised concerns that intelligence         DOD Procurement: Millions in Con-          through 1993, the number of equal
agency employees lack the same            tract Payment Errors Not Detected          opportunity complaints reported by
protections afforded other federal        and Resolved Promptly.                     the military services ranged from
workers. GAO found that the Central                                                  about 1,300 to more than 3,600-
Intelligence Agency, the National         The 374 business units-representing        averaging nearly 2,900 per year.
Security Agency, and the Defense          82 large defense contractors and 57        During the same period, the active
Intelligence Agency have equal            small contractors-that responded to        duty military forces declined from
employment opportunity practices          GAO's request for data as of July 1994     about 2. 1 million to 1.7 million. This
similar to those of other federal         reported about $231.5 million in           report (1) identifies the military
agencies. In contrast, adverse action     outstanding overpayments and about         services' processes for handling equal
practices at the intelligence agencies    $625.9 million in underpayments. The       opportunity complaints and (2)
vary by agency and by type of em-         evidence suggests and contractors          discusses whether opportunities exist
ployee. The external appeals proce-       reported that they followed up to          for improvement. As part of its
dures at the intelligence agencies        collect underpayments and usually          review, GAO conducted focus group
differ from the procedures at other       notified the Defense Department of         sessions with more than 900
federal agencies in that most empJoy-     overpayments. Contractors did not,         servicemembers to gain an under-



                                          Page 87                                             GAO/OIMC-97 -lA Subject Index
standing of the complaint system and      With considerable support from             and the extent to which these invest-
equal opportunity environment from        Congress, the Defense Department           ments are reported to the Committee
their perspective.                        (DOD) has made acquisition refonn          and (2) the factors that the Committee
                                          one of its top priorities as it tries to   considers in deciding whether foreign
NSIAD-96-10, Oct. 20, 1995 (12            reduce the cost of maintaining techno-     investment would results in foreign
pages). Interagency Contracting:          logical superiority in an era of tighter   companies' control of U.S. companies,
Controls Over Economy Act Orders          military budgets. Acquisition refonn       whether the acquiring company is
Being Strengthened.                       has generally focused on measures          controlled by a foreign government,
                                          affecting DOD procurenlents. How-          and whether there are associated
Because of past abuses of off-loading     ever, DOD is also investigating new        national security risks. GAO analyzed
at federal agencies, the Defense          approaches in its science and technol-     these issues for a sample of 16 cases
Department (DOD) was required to          ogy efforts, including using coopera-      that the Committee reviewed in 1992
strengthen its controls over its          tive agreements and other transaction      and 1993.
interagency orders for goods and          instruments to enter into research
services. A February 1994 DOD             projects with commercial fmns and          NSIAD-96-13, Oct. 27, 1995 (25
memorandum specified that DOD's           consortia DOD has cited the use of         pages). Earth Science Infonnation
interagency orders be (1) as conve-       cooperative agreements and other           Network: Relationship of Consortium
nient and cheap as other alternatives     transaction instruments as a way to        to Federal Agencies.
and (2) approved at a level no lower      (1) reduce barriers to integrating the
than senior executive service, general    defense and civilian sectors of the        The Consortium for International
officers, flag officer, or activity       industrial base, (2) promote new           Earth Science Infonnation Network
commander. In November 1994, the          relationships and practices within the     was established in 1989 as a private,
Coast Guard independently developed       defense industry, and (3) allow the        nonprofIt organization chartered by
similar refonns. DOD is still adjusting   government to leverage for defense         the state of Michigan. It is structured
to these changes. Abundant guidance       purposes the private sectors' financial    as a consortium of university and
is available to Air Force, Anny, and      investments in research and develop-       nongovernmental research organiza-
Navy contracting activities, but a        ment of commercial products and            t ions. The Consortium's mission is to
sample of fIscal year 1995 Volpe          processes. This report discusses           provide access to, and enhance the
Center purchases 'made by the mili-       DOD's use of these instruments to          use of, information on human interac-
tary services revealed that not all mes   further these three objectives. GAO        tions in the environment by scientist
contained the infonnation required by     also discusses issues concerning the       and policy makers. In addition to
the DOD memorandum. In addition,          selection and the structure of the         discussing the Consortium's mission,
DOD has not yet implemented a             instruments.                               this report provides infonnation on
statutorily mandated monitoring                                                      (1) the Consortium's past and pro-
system for its interagency purchases.     NSIAD-96-12 , Dec. 21, 1995 (40            spective funding, (2) the way in which
The monitoring system is now sched-       pages). Foreign Investment: Imple-         NASA will oversee the Consortium's
uled for implementation in October        mentation of Exon-Florio and Related       work on the human dimensions of
1995. DOD contracting with the Volpe      Amendments.                                global change, and (3) the similarity
Center has been on the downswing                                                     of activities between the Consortium
since fIscal year 1992. Although it is    In 1988, Congress enacted the Exon-        and the National Science Foundation's
diffIcult to pinpoint the exact causes    Florio legislation authorizing the         Centers for the Human Dintensions of
for the downward trend, more r ecent      President to suspend or prohibit           Global Change, and (4) the
declines appear to be due to DOD's        foreign acquisitions, mergers, or          Consortium's building requirements.
implementation of the restrictions on     takeovers of U.S. companies w hen
interagency orders. Likewise, a recent    there is credible evidence that a          NSIAD-96-14, Oct 18, 1995 (49
decline in Coast Guard purchases at       foreign controlling interest might         pages). Peace Operations: Effect of
the Volpe Center appears to be related    threaten national security and when        Training, Equipment, and Other
to the Coast Guard reforms.               other legislation cannot provide           Factors on Unit Capability.
                                          adequate protection. The President
NSIAD-96-11 , Mar. 29, 1996 (19           delegated authority to review foreign      Since the end of the Cold War, the
pages). DOD Research: Acquiring           investment transactions to an inter-       U.S. military has become increasingly
Research by Nontraditional Means.         agency group-the Committee on              involved in peace operations, ranging
                                          Foreign Investment in the United           from military observer duties to
                                          States. This report exantines ( 1) the     humanitarian and disaster relief work.
                                          characteristics of foreign investments     This report examines (1) how the



GAO/OIMC-97-1A Subject Index              Page 88
services incorpornte peace operations     more democrntic governments.               NSIAD-96-18, Jan. 8, 1996 (9 pages).
into their training programs, (2) what    Specifically, GAO found that the State     Foreign Assistance: Controls Over
effect peace operations have on           Depariment Coordinator's authority         U.S. Funds Provided for the Benefit of
maintaining combat readiness, and (3)     was weak and that the U.S. Agency for      the Palestinian Authority.
whether the services have the weapon      International Development and other
systems and equipment they need for       agencies were often embroiled in           A series of letters allegedly prepared
these operations.                         disputes about implementation of           by the Palestinian Authority's Finance
                                          their programs. Since then, the            Minister and the Director General of
NSIAD-96-15BR, Feb. 29, 1996 (43          Coordinator's role has been expanded       the Palestine Economic Council for
pages). Cambodia: Limited Progress        to include oversight of all U.S. govern-   Development and Reconstruction
on Free Elections, Human Rights, and      ment bilateral programs in the fonner      (PECDAR) indicates that $138 million
Mine Clearing.                            Soviet Union, and his authority to         from unidentified sources was "di-
                                          review budgets and direct the inter-       verted" in late 1994 to finance several
The signing of the Paris Peace Ac-        agency process for progranl develop-       covert transactions. These transac-
cords in 1991 ended years of devastat-    ment and implementation has been           tions include purchasing land and
ing civil war and started Cambodia on     strengthened. Even so, the Coordina-       building apariments in Jerusalem,
the road to building a democratic civil   tor has been unable to effectively         funding a Palestinian journal, and
society. The United Nations Transi-       oversee the anticrime program for the      providing fmancial support to groups
tional Authority in Cambodia, estab-      fonner Soviet Union. Interngency           inside Israel that are sympathetic to
lished to carry out the accords,          cooperation in implementing aid            the Palestinian cause. In response to
supervised the withdrawal of Viet-        progrnms for the former Soviet Union       Congressional concerns that U.S.
namese forces from Canlbodia,             has improved, with fewer disagree-         assistance may have been involved in
repatriated more than 360,000 refu-       ments on program content.                  these transactions, this report dis-
gees, improved human rights condi-                                                   cusses (1) the fmancial controls
tions, and conducted free and fair        NSIAD-96-17, Nov. 17,1995 (37              established by the World Bank and the
national elections in 1993. The           pages). Military Equal Opportunity:        U.S. Agency for International Develop-
Authority concluded its mission in        Certain Trends in Racial and Gender        ment to monitor the use of U.S. funds
late 1993 with the formation of a duly    Data May Warrant Further Analysis.         provided to the Palestinian Authority,
elected government in Cambodia. This                                                 PECDAR, or the Palestine Liberation
briefing report provides information      Pentagon policy holds that discrimina-     Organization officials for budget
on Cambodia's progress since 1993.        tion based on race, national origin,       support purposes and (2) what
GAO discusses (1) Cambodia's              gender, or other factors is counter-       controls the U.S. Agency for Interna-
prospects for holding free and fair       productive to combat readiness and         tional Development established over
national elections by 1998; (2) its       mission accomplishment and contrary        project funds provided to other U.S.
progress in meeting international         to good order and discipline. GAO          government agencies, private contrac-
human and political rights standards;     reviewed Military Equal Opportunity        tors, nongovernmental organizations,
and (3) its progress in clearing          Assessments prepared by the military       private voluntary organizations, and
millions of land mines left over from     services and examined active-duty          the United Nations for the benefit of
decades of war.                           personnel data to determine whether        the Palestinian Authority.
                                          rncial or gender disparities existed in
NSIAD-96-16, Dec. 15, 1995 (13            selection rates. GAO examined              NSlAD-96-19BR, Oct. 10, 1995 (41
pages). Fonner Soviet Union: An           accessions, assignments considered         pages). Defense Contractors: Pay,
Update on Coordination of U.S.            career enhancing, and promotions for       Benefits, and Restructuring During
Assistance and Economic Coopern-          fiscal years 1989 through 1993. In         Defense Downsizing.
tion Programs.                            measuring promotion rates among
                                          women, American Indians, Asians,           In the midst of defense downsizing,
A February 1995 GAO report indicated      blacks, and Hispanics compared with        salary, bonuses, and other compensa-
(GAOINSlAD-95-10) that the executive      those for whites, GAO found that           tion paid to the five highest paid
branch lacked an effective coordina-      blacks in the military were statisti-      executives at the top 10 defense
tion mechanism for U.S. bilateral         cally less likely than whites to be        contractors ranged from $230,000 in
programs designed to help the newly       promoted. In contrast, women had a         1989 to nearly $18 million in 1993.
independent states of the former          greater-than-expected likelihood of        Many of these executives also exer-
Soviet Union transfonn their centrally    promotion.                                 cised stock options, with one indi-
controlled economies into market-                                                    vidual receiving $26 million in 1993. In
based economies and to establish                                                     1989, the avernge compensation paid



                                          Page 89                                             GAO/OIMC-97-lA Subject Index
by different defense contractors to       congressional action have introduced      whether appropriate controls had
salaried employees ranged from            changes to improve the access and         been implemented to ensure that
$35,900 to $48,700. By 1994, the          security clearance processes. For the     donor funds would be adequately
figures had risen to $48,100 and          time intervals and offices GAO            accounted for. GAO was unable to
$55,000, respectively. In 1989, the       reviewed, with few exceptions, the        independently verify the PLO's current
average annual compensation for           time intervals declined and the           fmancial condition because the PLO
hourly employees ranged from $24,700      procedures were adhered to. How-          was unwilling to provide GAO with
to $32,200; In 1994 these figures         ever, controls could be strengthened      requested accounting records and
ranged from $30,200 to $39,500. In        in several areas, including the renewal   supporting documentation. GAO did,
response to decreases in Defense          of temporary passes, the revoking of      however, obtain unclassified and
Department procurement, these             passes after separation, and the          classified data on the PLO's fmances.
companies have adopted various            granting of security clearances.          Most of the information supplied by
restructuring strategies, including                                                 the State Department is included in
mergers with competitors, divesting       NSIAD-96-21, Feb. 6, 1996 (29             this report. With minor exceptions,
units no longer considered to be part     pages). DOD Procurement: Use and          none of the material GAO obtained
of their core businesses, consolidation   Administration of DOD's Voluntary         from the Central Intelligence Agency
of production facilities, and commer-     Disclosure Program.                       could be declassified.
cialization of military technologies.
Assistance provided to separated          Forty-eight of the top 100 military       NSIAD-96-25, Nov. 29, 1995 (16
workers included termination pay          contractors have disclosed procure-       pages). Battlefield Automation:
based upon salary level and length of     ment fraud as part of a Defense           Army's Digital Battlefield Plan Lacks
seIVice; outplacement services, such      Department (DOD) program encour-          Specific Measurable Goals.
as job counseling and assistance with     aging voluntary reporting of such
resume writing; and extension of          incidents. But the total number of        One of the Army's top priorities is a
employee health, dental, and insur-       disclosures has been small and the        program to digitize the battlefield by
ance benefits for a time after separa-    dollar amounts recovered have been        creating a vast network of computers,
tion. Nine out of the 10 companies        modest-less than $100,000 in 63           sensors, and commllllications that
GAO surveyed provided incentives to       percent of the cases. Moreover, under     would provide a common picture of
encourage voluntary separation.           DOD's VOIWltary Disclosure Program,       the battlefield from soldier to com-
                                          cases took an average of 2.8 years to     mander simultaneously. The Army's
NSIAD-96-20, Oct. 19, 1995 (34            close, with about 25 percent taking       plan, which is estimated to cost $4
pages). Personnel Security: Pass and      more than four years. Less-than-full      billion, contains many risks and lacks
Security Clearance Data for the           cooperation from contractors and low      specific, measurable goals for the
Executive Office of the President.        priority given by DOD and other           series of large-scale experiments that
                                          investigative agencies to managing        are to be done. The Army plans to
Because of reported delays of more        cases expeditiously may be problems       conduct a series of experiments from
than a year in issuing access passes at   in some cases.                            1995 to 1997, including a brigade-level
the White House, Members of Con-                                                    experiment in 1997 at a cost of $258
gress have expressed concern about        NSIAD-96-23, Nov. 28, 1995 (12            million, without having had a success-
the White House's management of the       pages). Foreign Assistance: PLO's         ful battalion-level experiment. In fact,
access pass and security clearance        Ability to Help Support Palestinian       a battalion-level experiment in 1994
processes. GAO found that persons         Authority Is Not Clear.                   failed to meet Army expectations.
starting work at the White House                                                    Specific, measurable goals are needed
during 1993 received final approval       This is an unclassified version of a      to evaluate the achievements of each
for permanent White House access          GAO report issued in June 1995 on the     experiment, and they should be met
passes an average of 346 days from        Palestine Liberation Organization's       before proceeding to the next experi-
their start date, but the average         (PLO) finances. That report (1)           ment. Otherwise, the Army risks
approval time fell to 98 days for staff   assessed the PLO's ability to help        additional investments costing $397
brought on board in 1994. According       fmance the Palestinian Authority's        million for digital systems needed to
to White House officials, the White       operations in the West Bank and Gaza      conduct increasingly larger scale
House has not historically tracked        Strip, (2) reviewed whether the           experiments through fiscal year 1999.
time interval data on the access pass     international donors effectively          On the basis of Army estimates, the
process. As a result, GAO could not       analyzed the need to help fund the        investment required to digitize a 10
compare the information it analyzed       Palestinian Authority's operating and     division Army could run as high as $4
to prior experience. White House and      start-up expenses, and (3) determined     billion. Also, because Congress has



GAO/OIMC-97 -lA Subject Index             Page 90
directed the Army to include the         these costs; (2) the range and highest    GAO reviewed the Navy's plans and
Marine Corps in its plan, Defense        daily stipends paid to individual         procedures for public-private competi-
Department funding for the Marine        trustees and other management             tions of aviation depot-level mainte-
Corps must be identified and ensured     advisory personnel; (3) the cent.er       nance workloads. Various factors
to solidify its participation and        advisers' costs and, where applicable,    limited the amount of past depot-level
success.                                 the Defense Science Board's limits on     work available for competitive
                                         paying for such expenditures; (4) the     awards, including the time and costs
NSIAD-96-26, Nov. 27, 1995 (19           total and average daily center costs      for perforn,ing competitions. Although
pages). Federally Funded R&D             for their trustees and advisory person-   actual savings were difficult to
Centers: Use of Fee by the MITRE         nel; and (5) individual stipends and      quantify, GAO round that the Navy's
Corporation.                             total expenditures for each of the 186    competition programs generally
                                         center trustees and other management      reduced operating costs and in many
The Defense Department (DOD) spent       advisory personnel il, 1993.              cases streamlined production pro-
$1.25 billion in 1995 for research,                                                cesses. The Navy ended its aviation
development, engineering, and            NSIAD-96-29, Mar. 4, 1996 (67             maintenance competition program in
analytical services from the 10          pages). Closing Maintenance Depots:       1993, and the Defense Depamnent
federally funded research and devel-     Savings, Workload, and Redistribution     terminated the program in 1994
opment centers it sponsors. Th.e         Issues.                                   despite continued congressional
MlTRE Corporation is one of the                                                    support for it. However, as DOD
largest centers, with 1995 DOD           The Defense Department (DOD)              begins to implement recommendation
funding of $374 million. Congress has    spends $15 billion annually to main-      by the Commission on Roles and
raised concerns about whether            tain aircraft, ships, tracked and         Missions leading to the possible
government agencies effectively          wheeled vehicles, and other equip-        privatization of most depot mainte-
manage the centers they sponsor.         ment. However, it believes that it can    nance. use of competitive procedures
Among the concerns is whether the        reduce maintenance costs by better        for distribution of workloads between
contract fees provided to the cen-       matching its depots' workload capac-      the public and private sectors should
ters-in addition to reimbursement of     ity with current maintenance require-     prove cost-effective.
incurred costs-are adequately            ments. Accordingly, as part of the
justified. This report reviews (1) the   ongoing base closures and realign-        NSIAD-96-31, Dec. 15, 1995 (26
manner in which MITRE spends its         ments, DOD is closing 15 of its moJor     pages). Depot Maintenance: The
DOD management fee, (2) the ad-          maintenance depots and is transfer-       Navy's Decision to Stop F/A-18
equacy of federal guidance on how        ring their workloads to other depots      Repairs at Ogden Air Logistics Center.
fees may be used, (3) opportunities to   or the private sector. This report ( 1)
reduce management rees at MITRE,         assesses the reliability of DOD's depot   GAO reviewed the Navy's analysis to
(4) ways to strengthen DOD manage-       closure cost and savings estimates,       support its decision to move F/A-18
ment oversight of MlTRE's use of         (2) provides information on the           depot maintenance work from the Air
fees, and (5) DOD's efforts to improve   pclicies and the programs used to         Force Ogden Air Logistics Center in
the fee management process for its       provide employment and training to        Ogden, Utah, to the North Island
centers.                                 employees at depots being closed, (3)     Naval Aviation Depot in San Diego,
                                         detennines if the military can increase   California This report addresses ( 1)
NSIAD-96-27, Dec. 26, 1995 (19           savings by using competitions be-         GAO's review of the Navy's analysis
pages). Defense Research and             tween DOD depots or between depots        and adjustments for cost and perfor-
Development: Fiscal Year 1993            and the private sector when redistrib-    mance comparability used to justify
Trustee and Adviser Costs at Feder-      uting the workloads of closed depots,     the decision to move its F/A-18 repair
ally Funded Centers.                     and (4) determines if the military        activities from Ogden to North Island,
                                         services adequately consider other        (2) GAO's independent analysis using
This report provides information on      services' depots when they use            more current data than that available
the stipends and expenses of the         methods other than competition to         at the time of the Navy's decision, and
boards of trustees and other manage-     redistribute the workloads.               (3) GAO's analysis of the adequacy of
ment advisory personnel who served                                                 guidance regarding the conduct of
in fiscal year (FY) 1993 at DOD's        NSIAD-96-30, Jan. 22, 1996 (40            merit-based analyses.
Federally Funded Research and            pages). Navy Maintenance: Assess-
Development Centers. Specifically,       ment of the Public-Private Competi-
GAO discusses (1) the extent to which    tion Program for Aviation Mainte-
the centers used federal funds to pay    nance.




                                         Page 91                                            GAO/OIMC-97-1A Subject Index
NSIAD-96-32, Mar. 29, 1996 (19            NSIAD-96-34, Dec. 15, 1995 (75            use the proceeds for other high-
pages). Environmental Cleanup:            pages). Foreign Assistance: Private       priority real property needs. GAO
Progress in Resolving Long-Standing       Voluntary Organizations' Contribu-        reported in 1995 (GAOINSlAD-95-73)
Issues at the Rocky Mountain Arsenal.     tions and Limitations.                    on the potential budget savings from
                                                                                    selling expensive property in Tokyo
The Rocky Mountain Arsenal, located       In response to budget constraints and     and on the problems in State's man-
on 17,000 acres northeast of Denver,      concerns about effectiveness, major       agement of properties abroad. This
is one of the Defense Department's        donors, including the United States,      report (1) identifies real estate at
most contaminated installations. The      are reassessing their foreign aid         other locations that could possibly be
Army manufactured chemical weap-          programs and strategies. The method       sold to provide money to meet other
ons, such as napalm bombs and             of delivery is one of the primary areas   real estate needs, (2) describes
mustard gas, and conventional             being reexamined. Although most U.s.      problems that State has had in decid-
munitions at the Arsenal until the        foreign aid is still delivered on a       ing which properties to dispose of,
1960s, and it destroyed weapons there     government-to-government basis, the       and (3) explains how State uses the
through the early 1980s. In addition,     current administration had pledged to     proceeds from the properties it does
from 1952 to 1987 the Army leased         boost the percentage of U.S. assis-       sell.
part of the Arsenal to the Shell Oil      tance being channeled through
Company, which produced herbicides        nongovernmental organizations during      NSIAD-96-37, Dec. 15, 1995 (125
and pesticides. This report provides      the next five years. Some congres-        pages). Former Soviet Union: infor-
information on (1) the status of          sional proposals have recommended         mation on U.S. Bilateral Program
cleanup efforts at the Arsenal, (2)       that U.S. development aid be chan-        Funding.
completion plans for the cleanup, and     neled through nongovernmental
(3) the cost-sharing arrangement          organizations, including private          Hampered al the outset by a lack of
between the Army and Shell.               voluntary organizations. Support for a    coordination, U.S. aid to the former
                                          greater private voluntary organization    Soviet Union is now better managed
NSIAD-96-33, Mar. 5, 1996 (52             role in delivery assistance seems to      and is achieving promising, although
pages). Depot Maintenance: Opportu-       stem from general disappointment          mixed, results in a variety of projects
nities to Privatize Repair of Military    with the results of more than 40 years    ranging from the promotion of eco-
Engines.                                  of government-to-government assis-        nomic reforms to the disposal of
                                          tance and a perception that private       nuclear weapons. This report provides
In recent years, Congress has ex-         groups are better able to identify        information on U.S. bilateral programs
pressed continuing interest in the        development needs and deliver help.       with the newly independent states of
Pentagon's management of its 515          This report analyzes (1) private          the former Soviet Union from fiscal
billion depot maintenance program.        voluntary organizations' role in          year 1990 through December 1994 to
One area of particular interest has       delivery U.S. foreign assistance and      help them make the transition to
been the allocation of depot mainte-      potential issues and implications of      democratic societies with market
nance workload between the public         increasing their role in delivery aid,    economies. GAO discusses (1) the
and private sectors, including various    including accountability issues; (2) 26   amount of funds obligated and spent;
privatization initiatives. This report    private voluntary organization            (2) the amount of credits provided,
addresses the depot maintenance           projects and whether they were            including s ubsidy costs; and (3) the
workload mix for an essential military    achieving their objectives; and (3) the   appropriation source and budget
commodity-gas turbine engines.            extent to which U.S. private voluntary    function for these funds. This informa-
GAO discusses (1) the rationale           organizations are dependent on U.S.       tion is categorized by agency, recipi-
supporting the continued need for         government funding.                       ent country, and programmatic sector.
DOD to be able to repair engines at its                                             GAO summarized this and the follow-
own maintenance depots, (2) opportu-      NSIAD-96-36, Apr. 23, 1996 (35            ing report in testimony before Con-
nities to privatize additional engine     pages). Overseas Real Estate: Mil-        gress; see: Former Soviet Union:
workloads, and (3) the impact that        lions of Dollars Could Be Generated       Assessment of U.S. Bilateral Pro-
excess capacity within DOD's depot        by Selling Unneeded Real Estate.          grams, by Harold J. Johnson, Associ-
system has on the cost-effectiveness                                                ate Director for International Rela-
of decisions to privatize additional      The State Departments owns more           tions and Trade Issues, before the
workloads.                                than SIO billion in real estate at 200    House Committee on International
                                          locations overseas. GAO reviewed          Relations. GAOrr-NSlAD-9&-78, Dec.
                                          State's efforts to identify and sell      15 (13 pages).
                                          excess or underused real estate and to



GAO/OIMC-97-1A Subj ect Index             Page 92
NSlAD-96-38, Mar. 6, 1996 (12             sustainability of an independent press.   NSlAD-96-42, Nov. 6, 1995 (25
pages). Peace Operations: U.S. Costs      U.S. efforts to develop a democratic      pages). Retention Bonuses: More
in Support of Haiti, Fonner Yugosla-      trade union movement and improve          Direction and Oversight Needed
via, Somalia, and Rwanda                  Russia's electoral system also contrib-
                                          uted to systemic changes, although        The Selective Reenlistment Bonus
The United States paid more than $6.6     more needs to be done. Projects           Program was created 30 years ago to
billion to support United Nations         relating to political party develop-      help the military retain highly skilled
peacekeeping operations in Haiti, the     ment, rule of law, and civil-military     service members. However, GAO
fonner Yugoslavia, Rwanda, and            relations had limited inlPact. Russian    found that in 1994, the Defense
Somalia between fiscal years 1992 and     economic and political conditions         Department (DOD) paid about $64
1995. Slightly more than half of these    were the most important factors           million in retention bonuses to
costs were incurred by the Defense        determining project impact. Imple-        individuals who worked in job catego-
Department, which sent troops and         mentation problems accounted for the      ries in which positions were filled or
equipment to support the missions in      limited results derived from the rule-    who had been paid incentives to
these countries. The State                of-law project.                           leave. Military officials defended their
Department's costs were about S1.8                                                  management of the retention and
billion, while costs for the U.S.         NSlAD-96-41, Dec. 12, 1995 (45            separation incentive programs,
Agency for International Develop-         pages). Military Sealift Command:         asserting that each is targeted at
ment-the lead agency responsible for      Weak Controls and Management of           different segments of the force, that
providing humanitarian assistance,        Contractor-Operated Ships.                retention and separation incentives
including food donated by the Agricul-                                              went to personnel in different grades
ture Department-were about $1.3           The Military Sealift Command, whose       and year groups, and that payment of
billion. The Departments of Justice,      fleet consists of a mix of government     separation incentives did not mean
Commerce, the Treasury, Transporta-       and privately owned vessels, lacks        that they were satisfied with manning
tion, and Health and Human Services       adequate controls to detect and deter     levels. GAO believes that if a skill is
reported costs totaling about $91         abuses by contractor-operated ships.      experiencing shortages that warrant
million to support peace operations.      These shortcomings include inad-          the payment of retention incentives, it
                                          equate verification of crew repairs,      is not prudent to pay incentives to
NSlAD-96-40, Feb. 29, 1996 (78            review of invoices, and supervision of    others with those same skills to leave
pages). Promoting Democracy:              overhaul work. The Military Sealift       the service. The Office of the Secre-
Progress Report on U.S. Democratic        Command does not verify that it has       tary of Defense is not providing
Development Assistance to Russia          received the goods or services it is      adequate direction and oversight of
                                          paying for, in part because there is a    the programs.
U.S.-funded democracy projects have       disconnect between headquarters
demonstrated support for, and con-        reviewers and field-level personnel,      NSlAD-96-43, Nov. 20, 1995 (26
tributed to, Russia's democracy           whose main concern is the operation       pages). Strategic Airlift: Improve-
movement. Those assisted include          but not the cost of the ships' repair.    ments in C-5 Mission Capability Can
prodemocracy political activities and     The Military Sealift Command also         Help Meet Airlift Requirements.
political parties, proreform trade        cannot be certain that contractual
unions, court systems, legal acad-        requirements are being met. It has no     Although the Defense Department
emies, government officials, and the      guidelines for systematically estab-      (DOD) is counting on the C-5 to
media The democracy projects that         lishing personnel requirements, such      deliver nearly half of the cargo carried
GAO reviewed, however, had mixed          as those involving citizenship and        by military ail'craft in the event of
results in me ting their stated objec-    security. Neither does it regularly       war, a shortage of spare parts and a
tives. Russian reformers and others       compare contractual requirements          poor strategy to modernize the
generally viewed U.S. democracy           with contractors' perfonnance in          aircraft have resulted in readiness
assistance as valuable, but in only       obtaining security clearances and         rates that are considerably below
three of the six areas GAO reviewed       trustworthiness evaluations for crew      eJ..-pectations. The man ufacturer
had projects contributed significantly    members. Finally, the Military Sealift    contends that improving the C-5 spare
to political, legal, or social changes.   Command lacks a fonnal system to          parts process, particularly by schedul-
Media projects generally succeeded in     identify and implement best practices     ing repairs of spare parts on the basis
increasing the quality and the self-      to improve contractor perfonnance         of their impact on mission capability,
sufficiency of nongovernment media        and reduce costs.                         could substantially improve the C-5's
organizations, but the weak economy                                                 mission capable rate. The rate could
continues to threaten the                                                           also be improved if the Air Force did a




                                           Page 93                                           GAO/OIMC-97-1A Subject Index
readiness evaluation similar to the         the Joint Simulation System and (2)        this decline occurred without a
one recently completed for the B-lB         whether DOD's decisions to improve         commensurate decline in civilian
aircraft. That evaluation found that        the Protocol are cost effective.           payroll costs, due in part to the
the B-IB's mission capable rate could                                                  significant decline in blue collar
increase if support for spare parts was     NSIAD-96-45 , June 28, 1996 (36            workers. DOD officials attributed the
improved The Air Force has not              pages). Combat Air Power: Assess-          rise in civilian payroll costs to several
prioritized proposed C-5 modifications      ment of Joint Close Support Require-       factors, such as the advent of locality
according to which one would con-           ments and Capabilities Is Needed.          pay and changes in grade structure.
tribute most to improving mission                                                      Against the backdrop of the civilian
capability. As a result, decisionmakers     During the next six years, the military    workforce decline in DOD's acquisi-
cannot fully assess the impact that         plans to spend more than $10 billion       tion organizations, defense contract
proposed improvements could have            on aircraft and other weapons to           awards for services have risen about
on overall aircraft mission capability      bolster its aiready formidable close       $10 billion since 1980. About $4 billion
or total airlift capability. IT peacetime   support capabilities. This effort,         of this increase was for engineering
C-5 mission capable rates could             however, comes at a time of shrinking      and architecturaI and computer
achieve the Air Force's goal of 75          defense budgets, defense downsizing,       services. Even with the decline in
percent, DOD could gain an additional       and increasing questions about the         both the defense procurement budget
1.3 million ton miles per day of C-5        affordability of defense moderniza-        and the civilian workforce since 1990,
wartime capability-the equivalent of        tion. This report (1) discusses the        the number of acquisition organiza-
10 C-17s. As a result, DOD could come       overall capabilities of the military       tions remains relatively constant.
close to meeting military airlift           services to provide close support and      GAO notes that each acquisition
requirements.                               the extent to which those capabilities     organization employs persons in
                                            continue to be modernized and              similar jobs, such as personnel and
NSIAD-96-44, Nov. 8, 1995 (19               enhanced and (2) evaluates the             budgeting, and opportunities may
pages). Military Training: Cost-            processes that the Defense Depart-         exist to improve efficiencies in these
Effective Development of Simulations        ment uses to assess mission needs,         areas.
Presents Significant Challenges.            capabilities, and modernization
                                            proposals for the close support            NSIAD-96-47, Feb. 13, 1996 (53
Since 1988, the Pentagon has been           mission.                                   pages). Marine Corps: Improving
grappling with how to provide simula-                                                  Amphibious Capability Would Require
tions that realistically portray joint      NSIAD-96-46, Nov. 13, 1995 (24             Larger Share of Budget Than Previ-
warfare operations for training. To         pages). Defense Acquisition Organiza-      ously Provided
help meet this training need, the           tions: Changes in Cost and Size of
Defense Department (DOD) devel-             Civilian Workforce.                        The Navy and the Marine Corps
oped the Aggregate Level Simulation                                                    estimate that it "ill cost about $58
Protocol, a technique that allows           In 1994, Defense Department (DOD)          billion during the next 25 years to
multiple service and agency models to       acquisition organizations, including       modernize the amphibious force,
communicate with each other. Al-            the Defense Contract Audit Agency,         which suffers from reduced vehicle
though the Protocol is a technological      employed about 464,000 persons-            lift capability and other operational
advancement, the existing warfare           398,000 civilian and 66,000 military. In   limitations. This could be a major
capabilities of the individual models is    addition to acquisition duties, the        challenge for the Navy, which risks a
limited and the problem of providing a      acquisition organizations have other       SI6-billion gap between its projected
valid joint training environment            Significant responsibilities, such as      shipbuilding budget and the cost
persists. Because of these limitations      logistics, maintenance, and supply.        estimate to build all ships planned
and the cost and complexity of the          The workforce includes "white collar"      between 2002 and 2005. The Navy and
Protocol, DOD is developing a new           jobs, such as engineering, accounting,     the Marine Corps plan to spend a
system-the Joint Simulation Sys-            and computer specialists, as well as       much larger share of their procure-
tem-that is scheduled to be fully           "blue collar" jobs, such as machine        ment funds to buy upgraded equip-
operational by 2003. Until that system      tool operators, pipefitters, and           ment for amphibious operations than
is up and running, DOD plans to             shipyard workers. The civilian             has been the case for most of the past
continue improving the Protocol. This       workforce in DOD's acquisition             40 years. The Navy and the Marine
report discusses (1) how well DOD is        organizations increased with the           Corps will need to eannark beyond
progressing with its development of         defense buildup of the early 1980s and     2001 a large share of available pro-
                                            decreased following the reductions         curement dollars for amphibious
                                            that began in the mid-1980s. However,      equipment to avoid delays in the



GAO/OIMC-97-1A Subject Index                Page 94
modernization effort. Amphibious           The Navy estimates that each               GAO evaluates the pilot program to
programs are competing with other          remanufactw'ed AV-8B aircraft could        determine (1) its potential for produc-
major weapons programs, such as the        cost as much as $29.5 million. Such        ing the benefits sought through reform
DDG-51 destroyer, the Army's Apache        aircraft are made up largely of used       and (2) any barriers to achieving these
helicopter, and the Air Force's F-22       and refurbished components. GAO            benefits.
fighter aircraft.                          calculates that the Marines can buy
                                           new radar model AV-8Bs for about           NSIAD-96-54, Apr. 24, 1996 (52
NSlAD-96-48, Apr. 17, 1996 (27             $23.6 million per aircraft. Because the    pages). Federally Funded R&D
pages). C-17 Aircraft: Cost of Spare       program is conducted under an annual       Centers: Information on the Size and
Parts Higher Than Justified.               contract, the Navy can change its          Scope of DOD-Sponsored Centers.
                                           procurement strategy and begin
GAO reviewed the pricing of spare          immediate negotiations to buy new          Federally funded research and devel-
parts for the C-17 aircraft and found      radar models rather than continuing        opment (R&D) centers were first
that the Air Force paid higher prices      to rebuild the aircraft. The ftrst         established during World War II to
for these items than was justified         aircraft rebuilt at the Naval Aviation     meet the military's specialized re-
GAO focused on a limited number of         Depot in Cherry Point, North Carolina.     search needs that could not be met by
spare parts that experienced signifi-      took almost twice as long to disas-        government workers because of limits
cant price increases when McDonnell        semble as planned. Delays have also        on placed on salaries and hiring.
Douglas decided to manufacture the         arisen from the inability of McDonnell     Today, eight agencies, including the
parts at its St. Louis plant rather than   Douglas and depot vendors to provide       Defense Department (DOD), fund 39
buy them from outside vendors. For         components promptly. In addition. the      centers that are run by universities,
33 selected spare parts formerly           radars to be used in the Harriers are      nonprofit groups, and industrial firms
procured under subcontracts, the           not going to be available as originally    under long-term contracts. This
costs were from four to 56 times           planned                                    updates GAO's 1988 report (GAOl
higher after McDonnell Douglas                                                        NSlAD-8&-116FS) on DOD's 11 cen-
moved the work in-house. For ex-           NSIAD-96-53, June 28, 1996 (20             ters. GAO describes the (1) funding
ample, McDonnell Douglas paid an           pages). Acquisition Reform: Military-      and staff size of the centers; (2) extent
outside vender $389 to machine a           Commercial Pilot Program Offers            of subcontracted work at the centers;
door hook that it later machined in-       Benefits but Faces Challenges.             (3) structure of the parent organiza-
house at an estimated cost of $8,842.                                                 tions; (4) missions, core competen-
Costs for some spare parts were            Faced with substantial funding cuts        cies, and capabilities of the centers;
higher than justified because              for defense procurement. the Penta-        (5) sponsors' criteria for defining core
McDonnell Douglas used outdated            gon has made acquisition refoml a top      work; and (6) sponsors' oversight
pricing data that overstated its           priority. The challenge for the Defense    mechanisms and responsibilities.
proposed prices. In developing the         Department (DOD) is to maintain
proposed costs of spare parts,             technological superiority and ensure a     NSIAD-96-56, Feb. 6, 1996 (7 pages).
McDonnell Douglas used outdated            strong national industrial base wIllie     Reserve Officers' Training Corps:
labor variance factors, which resulted     reducing acquisition costs. The need       Questions Related to Organizational
in prices being overstated by 34           to reform the military's acquisition       Restructuring.
percent for 37 parts. Also, the profits    system is well known: however,
awarded on some orders under               acquisition reform has been an elusive     Because of questions about readiness,
contract-2109 appeared to be higher        goal. DOD has on several occasions         housing, and costs, the Army has not
than warranted.                            oied to introduce a commercial-style       approved tlle proposal to close the
                                           procurement system thal would take         Reserve Officers' Training Corps
NSlAD-96-49, Feb. 27, 1996 (15             advantage of commercial products           (ROTC) regional headquarters at Fort
pages). Navy Aviation: AV-8B Harrier       and processes and, whenever pos-           Knox, Kentucky. As a result, the
Remanufacture Strategy Is Not the          sible. eliminate contracting, technical,   regional headquarters at Fort Knox
Most Cost-Effective Option.                and accounting requirements that are       remains open and the summer camp
                                           unique to the military. According to       run at Fort Knox is expected to
The Navy could save millions per           DOD, acquisition reform could cut          remain in place through ftscal year
aircraft by buying new AV-8B Harrier       costs by as much as 30 percent. 111is      1996 and possibly 1997. Still unre-
fighters equipped with night attack        report discusses a pilot program,          solved are questions about the (1)
and radar capabilities instead of          known as "Military Products From           impact of the ROTC program on
disassembling and retrofitting older       Commercial Lines," set up by the Air       training and readiness of combat units
Harriers with the desired technology.      Force with one of its contractors.         stationed at some bases that house



                                           Page 95                                             GAOIOIMC-97-IA Subject Ind.,.
and s upport ROTC summer camp            transport. Under the U.S. Transporta-     Although the Anny National Guard
programs; (2) adequacy and condition     tion Command's unwieldy organiza-         has come down in size since the end
of housing at bases being considered     tional structure, customers receive       of the Cold War, the Guard's combat
for consolidation of the ROTC pro-       bills from each command for each          strength still exceeds what the
gram, on both a short- and long-term     mode of transportation, rather than a     Defense Department needs to fight
basis; and (3) costs to address the      single bill covering the entire ship-     two major regional wars-the basic
housing program.                         ment. In addition to confusing cus-       goal of U.S. military strategy today.
                                         tomers, separate billing systems          GAO recommends that the Anny
NSIAD-96-59, Dec. 27, 1995 (13           increase personnel and costs. Salaries    validate the size and the structure of
pages). Anny and Marine Corps M198       and wages alone for the command in        all the Guard's combat forces and
Howitzer: Maintenance Problems Are       f!SeaI year 1994 topped $1 billion.       develop a plan to bring the size and
Not Severe Enough to Accelerate                                                    the structure of these forces in line
Replacement System.                      NSIAD-96-61, Apr. 2, 1996 (40             with validated requirements. Depend-
                                         pages). Foreign Investment: Foreign       ing on the study's conclusions, the
Marine Corps and Anny users of the       Laws and Policies Addressing Na-          Anny should consider converting
M198 155-millimeter towed howitzer       tional Security Concerns.                 some Guard combat forces to support
want to replace the 15,600-pound                                                   roles. To the extent that Guard forces
cannon with a light -weight weapon to    Japan, France, Germany, and the           exceed validated requirements, the
ease the burden on crews and to          United Kingdom have the authority to      Anny should consider eliminating
improve air and ground mobility. The     block investments for national            them.
Marines have found it hard to tow the    security reasons, as does the United
M198 over soft terrain, and only their   States. In recent years, however, these   NSIAD-96-64, Feb. 20, 1996 (72
heavy-lift helicopter can move the       five countries have rarely invoked this   pages). Defense Industrial Security:
weapon by air. This report discusses     authority. Some of these countries        Weaknesses in U.S. Security Arrange-
whether the Marine Corps' and Anny's     have established processes for            ments With Foreign-Owned Defense
reported maintenance problems with       reviewing foreign investment for          Contractors.
the M198 justify accelerating the        national security concerns. U.S.
development of a replacement             defense industry officials said that      This unclassified version of a 1995
weapon. GAO also provides informa-       they had not pursued defense-related      GAO report discusses security ar-
tion on the Marine Corps' and the        direct investment in Japan, France,       rangements-known as voting trusts,
Anny's planned development of a          Germany, or the United Kingdom            proxy arrangements, and special
new, light-weight 155-mm howitzer.       because of economic factors, such as      security agreements-used to protect
                                         the size of the defense markets in        sensitive information when foreign-
NSIAD-96-60, Feb. 22, 1996 (57           these nations, as well as informal        owned defense contractors work on
pages). Defense Transportation:          barriers, such as domestic company        classified Defense Department
Streamlining of the U.S. Transporta-     ownership structures. Most countries      projects. GAO concludes that the
tion Command Is Needed                   offer investment incentives, but U.S.     Pentagon needs to strengthen controls
                                         defense industry officials did not cite   to prevent the export of military
The military often pays as much as       them as a major inducement to invest      secrets when foreign-owned defense
three times as much as commercial        U.S. defense industry officials said      contractors work on such highly
carriers would charge to ship cargo      that they were pursuing access to         sensitive weapons programs as the B-
because of a fragmented and ineffi-      overseas defense markets through          2 bomber and the F-22 fighter. Agree-
cient organizational structure and       strategies other than foreign direct      ments at most of the 14 companies
outdated management practices at the     investment. For example, U.S. defense     GAO reviewed permitted some risk of
U.s. Transportation Command. This        finns either licensed technology to       foreign control, influence, and unau-
situation has led to confusing billing   Japanese companies or made direct         thorized access to cla'iSified data and
practices and expensive staff over-      sales to Japan. In the three European     technology.
head For example, a military cus-        countries, U.S. companies formed
tomer might pay the U.S. Transporta-     partnerships to compete for projects.     NSIAD-96-65, Apr. 12, 1996 (34
tion Command $3,800 to ship a load of                                              pages). Military Exports: Offset
cargo from California to Korea, while    NSIAD-96-63 , Mar. 14, 1996 (13           Demands Continue to Grow.
a commercial carrier would have          pages). Anny National Guard: Vali-
charged only $1,250 for the shipment.    date Requirements fol' Combat Forces      This report examines offset require-
Much of today's military cargo moves     and Size Those Forces Accordingly.        ments associated with military
intermodally, by air, land, and sea                                                exports. Offsets are the range of



GAO/OIMC-97-1ASubject Index              Page 96
industrial and commercial compensa-      NSIAD-96-68, June 20, 1996 (11              assets. The Air Force, in preparing its
tion packages offered to foreign         pages). Electronic Warfare: Navy's          fiscal year 1996 budget for aviation
governments and companies as             New Radar Warning Receiver Needs            parts, did not consider $72 million
inducements to purchase military         More Testing.                               worth of on-hand assets. In computing
goods. They include coproduction,                                                    its fiscal year 1997 requirements for
technology transfer, training, invest-   The Navy plans to begin low-rate            aviation parts, the Navy counted $60
ment, marketing assistance, and          production of new radar warning             million in depot maintenance require-
commodity trading. Since the mid-        receivers despite serious flaws in two      ments twice. GAO found that the Air
1980s, U.S. firms have entered into      earlier versions and performance            Force and the Navy had made other
offset agreements valued at more than    problems that surfaced during testing       errors in computing their require-
$84 billion. GAO discusses the (1)       of the latest version. The receivers        ments because of poor management
ways in whlch the offset goals and       developed under the ALR-67(V)3 radar        oversight and internal controls. The
strategies of maJor buying countries     receiver program are designed to            Air Force and the Navy used unsup-
have changed, (2) offset requirements    sense the signals from hostile radars,      ported or incorrect maintenance
of these countries and the kinds of      provide an audio warning to the pilot,      replacement rates, demand rates,
activities being undertaken to satisfy   and display the warning information         planned program requirements, repair
their requirements, and (3) effects of   on a video screen in the cockpit. GAO       costs, lead times, due-out quantities,
offsets and the steps that the U.S.      concludes that the Navy risks acquir-       and asset quantities on band and on
government has taken on thls matter.     ing a deficient system that may             order. These inaccuracies totaled $35
GAO focuses on 10 buying countries       require expensive changes if the            million for the items in GAO's sample
from the Middle East, Asia, and          receivers are to effectively alert pilots   alone and resulted in some require-
Europe.                                  to radar-<:ontrolled enemy weapons.         ments' being overstated by $25 million
                                                                                     and others' being understated by $10
NSIAD-96-67, Apr. 8, 1996 (26            NSIAD-96-69BR, Feb. 1, 1996 (28             million.
pages). Military Bases: Closure and      pages). Military Aircraft Safety:
Realignment Savings Are Significant,     Significant Improvements Since 1975.        NSIAD-96-71, May 23, 1996 (20
but Not Easily Quantified.                                                           pages). Tactical Intelligence: Acceler-
                                         Despite a series of recent crashes, the     ated Joint STARS Ground Station
Savings from military base closures      safety record of military aircraft has      Acquisition Strategy Is RiskY.
and realignments should be substan-      improved significantly during the past
tial. The Pentagon's accounting          20 years. Accidents dropped from 309        The Army and the Air Force are
systems, however, do not provide         in 1975 to 76 last year, while fatalities   jointly developing the Joint Surveil-
Congress with an accurate picture of     declined from 285 to 85 during the          lance Target Attack Radar System
actual savings. The Defense Depart-      same period. Human error was                (Joint STARS), which is designed to
ment (DOD) is counting on significant    reported as a contributing factor in 73     locate and track wheeled and track
savings to pay for a host of initia-     percent of these flight mishaps. This       vehicles beyond the ground line of
tives--from force modernization to       report discusses (1) historical trends      sight during either day or night and
child care support. DOD will have        in aircraft accidents involving deaths      under most weather conditions. The
difficulty funding these programs        or extensive aircraft damage, (2)           Army is responsible for the develop-
should the savings fall short of         investigations performed to determine       ment, test, production, and fielding of
expectations. This report examines       the causes, and (3) examples of             Joint STARS ground station modules.
cost and savings estimates for past      actions taken to reduce the number of       GAO found that the Army's strategy to
base closures and realignments. GAO      aviation accidents.                         accelerate production of the Common
discusses (1) the extent to whlch the                                                Ground Station-the next version of
Defense Department (DOD) is achlev-      NSIAD-96-70, Mar. 19, 1996 (20              the ground station modules--unneces-
ing actual savings from the base         pages). Defense Logistics: Require-         sarily risks millions of dollars on an
closures and realignments and (2) the    ment Determinations for Aviation            unproven system. GAO believes that
adequacy of DOD's process for            Spare Parts Need to Be Improved.            buying more systems than are needed
developing the cost and savings                                                      for operational testing and evaluation
estimates reported in its annual         The Air Force and the Navy budgeted         significantly raises the risks of
budget submissions.                      $132 million more than needed for           procuring a costly and ineffective
                                         aviation spare parts because of             system. The Army has accelerated the
                                         questionable policies governing the         program and moved the first fielding
                                         determination of requirements and the       date for the Common Ground Station
                                         accountability for depot maintenance        from fiscal year 2002 to fiscal year



                                          Page 97                                             GAO/OIMC·97·1A Subject Index
1998. However, the Anny lacks               assessing, and managing risk. This         NS IAD-96-79BR, Feb. 15, 1996 (65
analyses showing an urgent need to          report reviews the steps that NASA         pages). United Nations: U.S. Partici-
field the added capabilities of the         has taken to improve the free flow of      pation in the Fourth World Confer-
Common Ground Station four years            information in launch decisions and        ence on Women.
earlier than planned or showing that        the progress NASA has made in
the expected benefits of accelerated        adopting quantitative methods for          This briefmg report focuses on the
procurement, prior to successful            assessing risk.                            Fourth World Conference on Women,
completion of operational testing and                                                  sponsored by the United Nations
evaluation, outweigh the risks.             NSIAD-96-75, Apr. 26, 1996 (24             (UN). GAO discusses ( 1) the cost of
                                            pages). Peace Operations: Reservists       U.S_ participation in the conference
NSIAD-96-72, May 13, 1996 (60               Have Volunteered When Needed               and the parallel, independently
pages). U.S. Combat Air Power:                                                         convened nongovernmental organiza-
Reassessing Plans to Modernize              U.S. participation in peace operations,    tions' forum, (2) the UN process for
Interdiction Capabilities Could Save        such as those in Haiti and the former      accrediting nongovernmental organi-
Billions.                                   Yugoslavia, has increased dramati-         zations, and (2) the handling of
                                            cally since the end of the Cold War in     conference travel visas by the Chi-
In view of continuing concerns over         1989. At the same time, fewer active       nese. A summary of GAO's discus-
future defense spending and the             duty forces are available today as a       sions with 28 U.S. nongovernmental
military's services' ample ability to       result of defense downsizing, and the      organizations about their views on the
intercept enemy missiles and aircraft,      Defense Department (DOD) depends           accreditation process, the adequacy of
GAO questions the Pentagon's deci-          on the reserves to playa greater role      accommodations, and physical access
sion to upgrade warplanes and other         in peace operations. Although author-      to conference and forum facilities is
weapons systems at a cost of more           ity to order reservists involuntarily to   included
than $200 billion during the next 20        active duty has been available for
years. GAO recommends that the              recent operations in Haiti and Bosnia,     NSIAD-96-80, Apr. 10, 1996 (8
Defense Department routinely review         DOD will likely have to rely on            pages). Defense Contractor Restruc-
modernization proposals according to        volunteers to meet some of its future      turing: First APplication of Cost and
how they will enhance the overall           needs. This report discusses (1)           Savings Regulations.
ability of the U.S. military to intercept   whether qualified volunteers have
enemy targets. Proposals that add           been accessible for recent peace           The National Defense Authorization
redundancy, such as the B-IB and            operations, (2) differences among the      Act for Fiscal Year 1995 restricts
Apache modifications and the pur-           services in how much they rely on          Defense Department (DOD) payments
chase of F/A-18E/Fs, attack helicop-        volunteers, (3) factors that affect the    to contractors for costs associated
ters, and precision-guided missiles,        availability of volunteers, and (4) any    with business combinations. Specifi-
should be examined in the context of        steps being taken by DOD to ensure         cally, the law prohibits payment of
the additional interdiction capability      that volunteers are accessible.            restructuring costs, such as those
they offer. This analysis could serve                                                  associated with closing facilities and
as the basis for deciding funding           NSIAD-96-77, May 2, 1996 (28               eliminating jobs, until a senior DOD
priorities, the sufficiency of invest-      pages). Satellite Control Capabilities:    official certifies that projected savings
ment, and the future force structure.       National Policy Could Help Consolida-      from the restructuring are based on
                                            tion and Cost Savings.                     audited data and should reduce DOD's
NSIAD-96-73, Mar. 26, 1996 (64                                                         overall costs. This report discusses
pages). Space Shuttle: Need to              Satellite control relies on ground         whether the certification process (1)
Sustain Launch Risk Assessment              antennas to track satellites and collect   was carried out in accordance with
Process Improvements.                       satellite health and status data by        the interim regulations and (2)
                                            telemetry as well as to command            reduced DOD's contract prices. GAO
The 1986 explosion aboard the space         satellites to perform various func-        focuses on the United Defense,
shuttle Challenger underscored the          tions. GAO has been reviewing space        Limited Partnership business combi-
risks inherent in human space flight.       programs and activities within the         nation of FMC Corporation's Defense
The Presidential Commission investi-        Defense Department and intelligence        Systems Group and Harsco
gating the accident found that it had       community. This report discusses the       Corporation's BMY-Combat Systems
been caused by poor rocket motor            potential for consolidating satellite      Division-two manufacturers of
design, but the Commission also cited       control functions within the govern-       tracked combat vehicle for the Anny.
as a contributing factor shortcomings       ment.                                      This business combination is particu-
in NASA's processes for identifying,




GAO/OIMC-97-1A Subject Index                Page 98
larly significant because restructuring   Southeast Asia-except for Burma-            dependents. According to military
at United Defense could be a model        have had some success, but U.S.             officials, the frequency of permanent
for future DOD restructuring efforts.     efforts have failed to reduce the flow      change-of-station moves is only a
                                          of heroin from the region because           minor contributor to readiness
NSIAD-96-82 , May 6, 1996 (20             producers and traffickers shift trans-      problems in military units. Other
pages). Air Force Aircraft: Consoli-      portation routes and growing areas to       factors, especially the increase in
dating Fighter Squadrons Could            countries with inadequate law en-           deployments for operations other than
Reduce Costs.                             forcement or political will. In 1994,       war, have a greater impact on readi-
                                          Burma accounted for about 87 percent        ness.
The Air Force decided in 1992 to          of the opium cultivated in Southeast
reconfigure its fighter force into        Asia and about 94 percent of the            NSIAD-96-86, Mar. 27, 1996 (20
smaller squadrons. This decision was      opium production in the region. U the       pages). Air Force Maintenance: Two
made at a time when the Defense           flow of heroin from Southeast Asia is       Level Maintenance Program Assess-
Department was seeking to reduce          to be stopped, opium production in          ment.
military operating and infrastructure     Burma must be addressed. Thls report
costs. GAO found that the organiza-       discusses why doing this will be            The Air Force's Two Level Mainte-
tional structure of the Air Force's       difficult In particular, GAO focuses        nance program, which seeks to save
fighter force is not cost-effective. By   on the effectiveness of the United          money by reducing maintenance
operating F-15s and F-16s in smaller      Nations Drug Control Program in             staffing, equipment, and base-level
squadrons, the Air Force boosts the       Burma.                                      support without sacrificing force
number of squadrons above the                                                         readiness, is not fully achieving its
number that would have been used in       NSIAD-96-84, Feb. 16, 1996 (22              intended benefits. The estimated costs
the traditional 24-aircraft configura-    pages). Military Personnel Reassign-        to implement the program have
tion. This reconfiguration has in-        ments: Services Are Exploring Oppor-        increased, and the expected net
creased operating costs and slowed        tunities to Reduce Relocation Costs.        savings have decreased-from $385
reductions in infrastructure costs.                                                   million to $258 million. In addition,
Although the Air Force considers          In fiscal year 1995, the military spent     not all program costs have been
smaller fighter squadrons to be           nearly $3 billion to move 850,000           included in the cost-savings analyses.
beneficial, it has not undertaken any     service members and their families.         Under the program, the turnaround
studies to support its decision. The      GAO has found that few opportunities        time to repair avionics items generally
Air Force's arguments for using           exist to reduce the costs of permanent      have met Air Force standards. For
smaller squadrons do not justify the      change-of-station moves. Overseas           engines, however, the turnaround
additional expense. GAO evaluated a       commitments and other laws also             times have exceeded the standard by
range of options for consolidating        require the military to move many           as many as 87 days. The use of the
squadrons that could cut operating        service members each year. Despite          program to support troops during
costs by as much as $745 million          these constraints, the military is trying   wartime will add to the airlift burden.
during fiscal years 1997-2002. In         to cut annual costs by reducing the         Because the deployed forces will not
addition, consolidating squadrons         number of permanent change-of-              have in-country intermediate mainte-
could result in base closures, reducing   station moves. To further reduce            nance capability, the forces will have
infrastructure costs by about $50         costs, the services are encouraging         to depend on airlift for spare and
million per base closure per year.        consecutive assignments in some             repair parts. However, the theater
                                          geographic areas and increasing tour        commander, not the Air Force,
NSIAD-96-83, Mar. 1, 1996 (37             lengths where possible. Finally, the        controls airlift priorities. As a result,
pages). Drug Control: U.S. Heroin         Defense Department can further              the theater commander could decide
Program Encounters Many Obstacles         decrease its overseas military require-     that the need for combat power in the
in Southeast Asia.                        ments by hiring overseas contractors.       early stages of a conflict outweighed
                                          The number of relocations, but not          the return of unserviceable items to
Although heroin is not the primary        their costs, decreased in proportion to     depot repair facilities and the move-
illegal narcotic used in the United       the defense downsizing from fiscal          ment of items from the depots to the
States, production, trafficking, and      year 1987 through fiscal year 1995.         battlefront.
consumption of this drug are growing.     The main reasons that permanent
Worldwide production of opium has         change-of-station moves did not             NSIAD-96-87, Mar. 15, 1996 (13
nearly doubled since the late 1980s,      decrease were inflation, changes in         pages). Army Aviation Testing: Need
and heroin overdoses have increased       some entitlements, and an increase in       to Reassess Consolidation Plan.
by 50 percent. Heroin programs in         the number of service members with



                                          Page 99                                              GAO/OIMC-97-1A Subject Index
The Army decided in 1995 to move         government has traditionally self-       part of the total infrastructure. DOD
Army aviation testing from Edwards       insured because its large resources      defines its training infrastructure to
Air Force Base, Califorrtia, to Fort     make protection against cataStrophic     include billeting, mess facilities,
Rucker, Alabama The Army also            loss unnecessary. Further, it is often   classrooms, equipment, software
decided to retain Yuma Proving           the sole buyer for a product and         packages, and instructors. This report
Ground. This decision represented a      cannot share the insurance costs with    detennines (1) the size of the active
shift from earlier Army studies, which   other buyers. Because a contractor       forces' fonnal training infrastructure
had recommended consolidating all        cannot allocate the cost of insuring     and (2) actions to reduce or stream-
Army aviation testing at Yuma GAO's      against the risk of failure among        line it
analysis confirmed the Army's posi-      multiple buyers, DOD ends up bearing
tion that a dual-site consolidation      the entire estimated cost Moreover,      NSIAD-96-94, June 24, 1996 (80
involving Fort Rucker and Yuma           DOD program officials said that          pages). Canada, Australia, and New
provided the greatest short-tenns        warranties do not motivate contrac-      Zealand: Potential Ability of Agricul-
savings to the Army and offered          tors to improve the quality of their     tural State Trading Enterprises to
significant long-tenn savings. A         products. GAO believes that the          Distort Trade.
single-site consolidation at Yuma also   warranty law should be repealed and
offers significant long-tenn savings     the decision to obtain a warranty        The agricultural agreements of the
and, according to Army officials, a      should be left to the program man-       Uruguay Round of the General Agree-
better environment for future testing.   ager.                                    ments on Tariffs and Trade (GATT)
On the other hand, the Defense                                                    seek to establish a fair and market-
Department (DOD) has raised ques-        NSIAD-96-92, May 6, 1996 (31             oriented agricultural trading system.
tions about whether either option        pages). NATO Enlargement: NATO           Through progressive reductions in
would be the best choice from a DOD-     and U.S. Actions Taken to Facilitate     governmental support and export
wide perspective. However, the           Enlargement.                             subsidies, conversion of quotaS to
services and DOD have not agreed on                                               tariffs, lowering of barriers to import
how best to downsize and consolidate     In January 1994, the North Atlantic      access, and other refonns, member
testing, even though Congress has        Treaty Organization (NATO) commit-       nations hope to reduce distortions in
encouraged them to do so. Given this     ted itself to expanding its membership   world agricultural markets. Some
situation, DOD has an opportunity to     to include the newly democratic          member states are using state trading
explore options with a longer-tenn       states of the fonner Communist bloc.     enterprises (STE) to regulate imports
DOD-wide perspective. This will          According to the State Department,       and exports. STEs are authorized to
require strong commitment and            the United State has been the drhing     engage in trade and are owned,
leadership on the part of top DOD        force behind NATO's enlargement.         sanctioned, or otherwise supported by
officials.                               This report discusses (1) actions        the government Although STEs are
                                         taken or planned to enlarge NATO, (2)    legitimate trading entities and are
NSIAD-96-88, June 28, 1996 (44           the extent of current and planned U.S.   subject to GAIT regulations, some
pages). Weapons Acquisition: War-        bilateral assistance programs to         U.S. agricultural producers are
ranty Law Should Be Repealed.            enhance the military operations and      concerned that STEs, through their
                                         capabilities of aspiring NATO mem-       monopoly powers and government
Requiring the use of warranties in       bers, and (3) the potential costs of     support, may be able to distort
weapon system acquisitions is imprac-    enlargement to NATO and the new          worldwide trade in their respective
tical and provides the government        members.                                 commodities. This report reviews
with few benefits. GAO estimates that                                             state trading enterprises in Canada,
the military spends about $271 million   NSIAD-96-93, Mar. 29, 1996 (22           Australia, and New Zealand. GAO
each year on weapon system warran-       pages). DOD Training: Opportunities      focuses on the activities of the
ties, which return only about five       Exist to Reduce the Training Infra-      Canadian Wheat Board, the Australian
cents for every dollar spent Congress    structure.                               Wheat Board, and the New Zealand
expected warranties to improve                                                    Dairy Board. GAO discusses whether
weapon system reliability by provid-     One source of funds to pay for the       the boards are capable of distorting
ing a mechanism to hold contractors      acceleration of the Defense              world markets in their respective
liable for poor perfonnance. In          Department's (DOD) modernization is      commodities.
practice, however, warranties have       to reduce infrastructure. This report
proved an expensive way for the          summarizes the status of DOD's
Defense Department (DOD) to resolve      efforts to reduce its fonnal training
product failures with contractors. The   infrastructure-a small but important



GAOIOIMC-97-1A Subject Index             Page 100
NSIAD-96-96, Mar. 2B, 1996 (9             tists who will develop algorithms for        NSIAD-96-99, May 9, 1996 (ll
pages). DOD Bulk Fuel: Services'          converting sensor data into useful           pages). Passports and Visas: Status of
Fuel Requirements Could Be Reduced        information and conduct research             Efforts to Reduce Fraud.
and Funds Used for Other Purposes.        using the data This report (I) dis-
                                          cusses NASA's strategy for developing        Technical problems and the failure of
For fIScal year 1996, bulk fuels          an EOS-related basic research com-           overseas consular staff to comply
requests by the Army, the Navy, and       munity, focusing on the number of            with internal management controls
the Air Force totaled $4.12 billion.      currently funded EOS science investi-        have hampered State Department
The three services planned to spend       gations, and (2) summarizes research-        efforts to modernize its visa and
$107 million of this amount, or 2.6       ers' views on whether changes to EOS         passport operations and make them
percent, on fuel from commercial          during the last few years have im-           less vulnerable to fraud. After initial
sources. The rest was used to buy fuel    peded their ability to carry out their       delays, State has made steady
from the Defense Fuel Supply Center,      interdisciplinary earth science investi-     progress in installing its machine-
which buys fuel from commercial           gations. GAO also discusses the Earth        readable system-the primary initia-
sources and sells it to the military      System Science Pathfmder program             tive for eliminating visa fraud-and
services. On the basis of historical      and its potential impact on funding          provided ail visa-issuing posts with
usage data, the Center estimates that     availability for future EOS investiga-       automated access to its global data-
the services' fuel purchases in fiscal    tions.                                       base containing the names of persons
year 1996 would total $3.57 billion, or                                                ineligible for visas. Operational
about $440 million less than the          NSIAD-96-98, June IB, 1996 (101              problems, however, have diminished
amount the services had requested in      pages). Navy Aviation: F/A-lBEIF will        the effectiveness of these efforts.
their budgets. This estinlate is lower    Provide Marginal Operational im-             Meanwhile, State's modernization
than the estimate made when the           provement at High Cost.                      program to reduce passport fraud is
services submitted their budget                                                        behind schedule. State originally
requests in January 1995. At the time,    With a projected total cost of $63           planned to install a new wide-area
the Center projected that the services    billion, the Navy's program to modern-       network, develop a system to print a
would buy $3.6B billion worth of fuel     ize its fleet of F-18 tactical aircraft      digitalized passport photograph, and
in fIScal year 1996, or about $330        ranks among the most costly of               install a system to verify the multiple
million less than the amount re-          military aviation projects. Vet the          issuance of passports by December
quested. Because the services' bulk       planned F/A-18EIF will deliver only          1995. However, only the installation of
fuel budgets are still overstated by      marginal operational improvements            the wide-area network, upon which
about $440 million-$440 million less      over the current F/A-IBCID model             the other two projects depend, has
than the $100 million congressional       The operational deficiencies in the FI       been completed. Full implementation
reduction---GAO suggests that Con-        A-IBClDs that the Navy cited as a            also depends on modernizing the
gress rescind the $340 million and        justification for developing the F/A-        passport production system, which
apply it to other unfunded needs.          IBEIF either have failed to materialize     according to State depends on funding
                                          or can be corrected with                     availability.
NSIAD-96-97, July ll, 1996 (49            nonstructural changes to the CID.
pages). Earth Observing System:           Furthermore, ElF operational capa-           NSIAD-96-100, Apr. 10, 1996 (13
Concerns Over NASA's Basic Re-            bilities will be only slightly better than   pages). Ml Tanks: Status of Proposed
search Funding Strategy.                  those of the CID model. Given the            Overhaul Program.
                                          expense and the marginal inlprove-
NASA plans to launch the first space-     ments in operational capabilities that       Concerns have been raised in Con-
craft of the Earth Observing System       the F/A-IBEIF would provide, GAO             gress about the absence of a procure-
(EOS) in 199B. The overall goal of        recommends that the Pentagon                 ment program to modernize the Ml
EOS is to understand the total earth      reconsider the decision to produce the       tank fleet beyond the current upgrade
system-air, water, land, and life and     F/A-18EIF aircraft and, instead,             of existing tanks and to counter new
their interactions-and the effects of     consider procwing additional F/A-            tank threats. This report discusses
natural and human-induced changes          l 8CIDs. The number of F/A-18ClDs           whether the (1) current readiness
on the environment. EOS has three         that the Navy would ultimately need          level of the Ml tank is adequate to
main components: a constellation of       to buy will depend on when the next          meet its war-fighting requirements,
satellites that will collect climate      generation strike fighter becomes            (2) operating condition of the tanks at
data, a data system designed to           operational and the number of those          the National Training Center is
operate the satellites and process and    planes the Navy decides to purchase.         adequate to meet training require-
distribute data, and teams of scien-                                                   ments, and (3) change in repair parts



                                          Page 101                                              GAO/OIMC-97-1A Subjectlndex
fundIDg harmed unit maintenance.           U.s. troops remain highly vulnerable       This report addresses concerns raised
GAO also reports on the status of the      to attack from biological and chem;cal     by Congress that the length oftune
Army's proposed Ml tank overhaul           agents because the Defense Depart-         that military personnel are spending
program.                                   ment (DOD) has yet to address many         away from home on deployments-
                                           shortcomings identified during the         commonly called personnel tempo-
NSIAD-96-102, Apr. 15, 1996 (10            Persian Gulf War, including inad-          has increased and is stressing por-
pages). Acqillsition Management:           equate trainillg, a lack of decontamj-     tions of the military community and
Fiscal Year 1995 Waivers of Acquisi-       nation kits and other equipment, and a     harming readiness. GAO discusses (1)
tion Workforce Requirements.               shottage of vaccine stocks. Problems       U.S. forces' frequency of deployments
                                           in chemical and biological defense are     in recent years; (2) the effect of
The Defense Acqillsition Workforce         likely to continue unless DOD desig-       increased personnel tempo on the
Improvement Act was intended to            nates this area a higher priority. This    readiness of U.s. forces; and (3)
professionalize the Defense                report discusses (1) DOD's actions to      Defense Department efforts to miti-
Department's (DOD) acqillsition            address chemical and biological            gate the ilnpact of high personnel
workforce by setting requirements for      warfare problems identifted during         tempo, including measures to create
education, training, and experience        the Pers;an Gulf War and (2) the           systems for measuring personnel
that were to take effect during a three-   current preparedness of U.S. ground        tempo.
year period begiruting in October          forces to operate in a contaminated
1991. The act allows DOD officials to      environment                                NSIAD-96-106, Apr. IB, 1996 (11
waive qualification requirements                                                      pages). Acquisition Reform: Efforts to
because of unusual circumstances or        NSIAD-96-104, Mar. 13, 1996 (51            Reduce the Cost to Manage and
an individual's qualifications. During     pages). Navy Mine Warfare: Budget          Oversee DOD Contracts.
fiscal year 1995, the military services    ReaJjgnment Can Help Improve
and DOD agencies granted 233               Countermjne Capabilities.                  The Defense Department (DOD)
waivers for 231 persons not meeting                                                   contracted with the management
the training, education, tenure, or        Operation Desert Storm revealed            consulting fum of Coopers and
experience requirements, compared          major wealcnesses in the Navy's            Lybrand to study the ilnpact of the
with fiscal year 1994, when 63 waivers     ability to detect and disarm enemy         military's acquisition regulations and
were granted. Of the waivers granted,      mines. The _ avy possessed only            oversight requirements on its con-
83 percent were for persons not            lim;ted capability at the time to          tracts. Coopers and Lybrand's 1994
meeting the tenure requirements-           conduct mine countermeasures at            report cited more than 120 regulatory
they had not served the required           various water depths. in addition, two     and statutory" cost drivers" that
three-year term in critical acquisition    Navy warships struck Iraqi mines in        increased the prices that DOD paid for
positions because of retirement,           open waters in the Persian Gulf,           goods and services by IB percent. in
promotion, reassigrunent, or               causing $21.6 million worth of dam-        response, DOD established a working
downsizing. Fiscal year 1995 was the       age. By contrast, one of the mines was     group to address the issue of cost
first time that tenure waivers outnum-     believed to cost $10,000 and the other     drivers. The working group is track-
bered all other types of waivers. One-     $1 ,500. This report examines the steps    ing many reforms initiated by DOD to
thrrd of the 39 waivers that were not      the Navy is taking to ensure a viable,     reduce the cost of managing and
related to tenure requirements were        effective naval force that will be ready   overseeing DOD contracts. Although
for membership in the acquisition          to conduct countermeasures in two          DO 0 expects substantial savings from
corps. By comparison, 19 persons           nearly silnultaneous regional wars.        these reforms, the actual savings may
received waivers for corps member~         GAO evaluates the (1) status of the        be signiftcantly less than the 18-
ship in fiscal year 1994. Waivers for      Navy's research and development            percent cost prem;um noted by
acqillsition experience decreased by       projects, (2) readiness of the Navy's      Coopers and Lybrand. in December
58 percent. Only one waiver was            on-hand mine countermeasure assets,        1995, contractors participating in
granted for the required Program           and (3) match between the Navy's           DOD's Reducing Oversight Costs
Management Course and no fulfill-          planned and on-hand mine counter-          Reinvention Laboratory noted that
ment waivers were granted.                 measures assets and its mine counter-      current measures would yield savings
                                           measures requirements.                     of only about one percent. DOD said
NSIAD-96-103, Mar. 29, 1996 (40                                                       that the one-percent cost savings was
pages). Chemical and Biological            NSIAD-96-105, Apr. B, 1996 (23             based on "work in progress" and that
Defense: Emphasis Remains insuffi-         pages). Military Readiness: A Clear        it would be inappropriate to use these
cient to Resolve Continuing Problems.      Policy Is Needed to Guide Manage-          results to draw conclusions about
                                           ment of Frequently Deployed Units.         DOD's ability to reduce the cost



GAO/OIMC-97-1A Subject Index               Page 102
premium. DOD fully expects the              cause military commanders to resist      1990-a year of peak readiness. This
savings from laboratory activities to       interservicing. Other factors, such as   report provides readiness information
exceed the level reported in Decem-         differences in service standards and     for all four military services. Specifi-
ber 1995.                                   resource constraints, also affect        cally, GAO (1) summarizes the
                                            commanders' willingness to embrace       reported overall readiness status of all
NSlAD-96-107, June 7, 1996 (25              interservicing. Although these factors   military units from January 1990 to
pages). Navy Ship Propulsion:               have hampered interservicing of base     March 1995, (2) assesses the readi-
Vl3bility of New Engine Program in          support functions on a limited scale,    ness trends of selected units from
Question.                                   military officials suggest that they     each service for the same period and
                                            could prove to be even greater impedi-   discusses any readiness problems
Although the Navy has spent more            ments to interservicing on a larger      experienced, and (3) explains signifi-
than four years and nearly $225             scale, such as having one base com-      cant changes in reported readiness of
million in a joint venture with the         mander responsible for providing all     selected units.
British and French to develop a new         base support to collocated bases of
gas turbine ship propulsion system,         two or more services.                    NSlAD-96-112, Aug. 6, 1996 (41
the effort has encountered serious                                                   pages). Federally Funded R&D
problems in development. Navy               NSlAD-96-110, May 13, 1996 (27           Centers: Issues Relating to the
officials have raised many questions        pages). U.S. Information Agency:         Management of DOD-Sponsored
about the new engine, including the         Issues Related to Reinvention Plan-      Centers.
practicality of using it in the DDG-51      ning in the Office of Cuba Broadcast-
destroyer. They also have concerns          ing.                                     Federally funded research and devel-
about whether the new engine will                                                    opment (R&D) centers were fust
provide a viable and timely return on       This report examines the operations      established during World War II to
the large investment to develop it.         of the Office of Cuba Broadcasting       meet the military's specialized re-
GAO urges the Pentagon to reassess          and Radio Marti, which are part of the   search needs that could not be met by
the need for this program. As the Navy      U.S. Information Agency (USIA). GAO      government workers because of limits
restructures the engine development         provides information on (1) the Office   placed on salaries and hiring. Today,
program, it must decide how and if it       of Cuba Broadcasting's reinvention       eight agencies, including the Defense
will use the $5.4 million test facility     plan, (2) the role and use of the        Department (DOD), fund 39 centers
that it built in Philadelphia The Navy      Office's research analysts, (3) the      that are run by universities, nonprofit
now plans to conduct almost all of its      reasons for the resignation of Mr.       groups, and industrial finns under
engine testing at a test site in the        Richard Lobo as Director of the          long-term contracts. GAO believes
United Kingdom. The Navy must also          Office, and (4) any progress that has    that the following four issues merit
decide whether to test the engine at        been made in monitoring Radio            attention as Congress and DOD work
sea in a pilot ship. The cost to do so is   Marti's compliance with Voice of         to resolve concerns regarding the
estimated as high as $12.5 million.         America broadcast standards. GAO         centers: (1) whether DOD limits its
                                            also discusses key events and time       centers to performing appropriate
NSlAD-96-108, Apr. 23, 1996 (23             frames concerning USIA's Office of       work, (2) whether DOD adequately
pages). Military Bases: Opportunities       Inspector General investigation into     safeguards the objectivity of its
for Savings in Installation Support         allegations of management reprisals      centers, (3) whether DOD effectively
Costs Are Being Missed.                     in the Office of Cuba Broadcasting.      oversees its centers, and (4) whether
                                                                                     DOD adequately considers cost-
The Defense Department (DOD) has            NSlAD-96-111BR, Mar. 4, 1996 (23         effective alternatives to using the
long recognized that support costs for      pages). Military Readiness: Data and     centers. GAO also discusses recent
military bases located near to one          Trends for January 1990 to March         steps DOD has taken to improve
another could be reduced if the             1995.                                    management of the centers.
military services relied more on each
other for base support-known as             This is an unclassified version of an    NSlAD-96-113, Apr. 24, 1996 (6
interservicing. However, the services       earlier classified GAO report on         pages). DOD Infrastructure: DOD Is
have not taken advantage of opportu-        military readiness. GAO analyzed         Opening Unneeded Finance and
nities to achieve significant savings       military readiness data found in the     Accounting Offices.
through greater use of interservicing.      Defense Department's Status of
Differing service traditions and            Resources and Training System to         in a September 1995 report (GAOl
cultures as well as concern about loss      determine if the information showed      NSlAD-95-127), GAO evaluated the
of control over support assets often        significant changes in readiness since   Defense Department's (DOD) justifi-



                                            Page 103                                         GAOIOIMC-97 -1A Subject Index
cation and its cost analysis for          NSIAD-96-119, Apr. 17, 1996 (42            NSIAD-96-120BR, Mar. 14, 1996 (34
consolidating more than 300 defense       pages). Drug Control: U.S. interdic-       pages). Bosnia: Costs Are Uncertain
accounting centers into five large        tion Efforts in the Caribbean Decline.     but Seem Ukely to Exceed DOD's
existing fmance centers and 20 new                                                   Estimate.
sites called operating locations. GAO     Budget reductions and a lack of
challenged the need for the 20 operat-    resources among island nations have        The Defense Department's CDOD) cost
ing locations because (1) DOD's           hampered efforts to intercept drug         to send almost 27,000 troops to
analysis showed that finance and          traffickers in the Caribbean-the           Bosnia as part of peacekeeping
accounting operations could be            transit route for nearly one-third of      operations is uncertain at this time
consolidated into as few as six; (2)      the cocaine now entering the United        but could well exceed DOD's esti-
some planned sites, particularly those    States. As a result, cocaine seizures in   mate. Army costs, which are esti-
located on closed or realigned military   the Caribbean fell from a peak of          mated at two-thirds of total operation
bases, would cost $173 million to         70,000 kilograms in 1992 to 37,000         costs, are likely to exceed DOD
renovate; and (3) DOD, in arriving at     kilograms in 1995. In recent years,        projections, while Air Force costs are
its decision, had not considered          drug traffickers in the Caribbean have     likely to be less than estimated. DOD
additional operating efficiencies         increasingly relied on ships rather        estimated deployment transportation
expected from business process            than planes to transport drugs.            costs at nearly $73 million, but
reengineering initiatives. DOD gener-     Traffickers are also using sophisti-       through the end of January 1996, DOD
ally agreed with GAO's fmdings. This      cated technologies, such as global         had spent about $157 million on
report raises an issue that, in GAO's     positioning systems, to counter U.S.       deployment transportation. DOD
view, warrants immediate attention:       efforts to monitor their activities.       estimated the cost of contractor
DOD is opening new finance and            Although most Caribbean nations            support at $192 million; through
accounting centers even though its        have cooperated in fighting drug           February 1996, however, the Army
recent analysis shows that they are       trafficking, a lack of finances and        had spent more than 5247 million on
not needed.                               effective law enforcement operations       contractor services, and Army offi-
                                          have stymied their efforts. Corruption     cials said that contractor costs could
NSIAD-96-115, May 17, 1996 (36            has also been a concem. U.S. budget        go as high as $500 million. Several
pages). Contingency Operations:           cuts have undermined the ability of        major cost areas remain uncertain.
DOD's Reported Costs Contain              the Defense Depamnent and law              They involve the operating tempo of
Significant Inaccuracies.                 enforcement agencies to track and          the forces in Bosnia, the cost of
                                          intercept drug traffickers. Funding for    redeploying the implementation force,
Since fiscal year 1992, the Pentagon      drug interdiction declined from $1         and the expense of reconstituting
has reported more than $7 billion in      billion in fiscal year 1992 to $569        equipment used in the operation.
incremental costs for its participation   million in fiscal year 1995. The
in contingency operations, ranging        executive branch has yet to develop a      NSlAD-96-121BR, Mar. 15, 1996 (36
from peacekeeping missions in Haiti       regional plan to implement the U.S.        pages). Contingency Operations:
and the former Yugoslavia to deploy-      cocaine strategy in the transit zone,      Defense Cost and Funding tssues.
ments to the Middle East during the       fully staff interagency organizations,
Persian Gulf War. Accurate reporting      or resolve issues on intelligence          The Defense Department (DOD)
of these costs is crucial to effective    sharing. GAO summarized this report        participated in contingency operations
congressional oversight of appropri-      in testimony before Congress; see:         in several places during fiscal year
ated funds. GAO found inaccuracies in     Drug Control: Observations on U.S.         1995, including Haiti, Southwest Asia,
the Defense Department's (DOD)            Interdiction in the Caribbean, by Jess     and the former Yugoslavia To help
costs for contingency operations,         T. Ford, Associate Director for            cover the incremental costs of these
representing about seven percent of       International Relations and Trade          operations, Congress provided DOD
the $4.1 billion in costs reported in     Issues, before the Subcommittee on         with a supplemental appropriation.
fiscal years 1994 and 1995. In GAO's        'ational Security, International         This report pro.ides information on
judgment, this variance in reported       Affairs, and Criminal Justice, House       (1) the extent to which the supple-
costs is indicative of a material         Committee on Government Reform             mental appropriation fully covered
wealmess in the accounting systems.       and Oversight. GAOrr-NSIAD-96-171,         DOD's incremental costs and the
DOD guidance on reporting incremen-       May 23 (12 pages).                         impact that funding shortages or
tal costs is vague and incomplete, and                                               overages may have had on the ser-
weaknesses plague DOD's accounting                                                   vices and (2) the accuracy of the
system.                                                                              methods used to estimate incremental




GAO/OIMC-97-1A Subj ect Index             Page 104
costs compared with actual costs and        ity Command documents, fleet               functionally effective for aeromedical
ways to improve the method of               aircraft played a vital role in Opera-     evacuation. As a result, the $5.91
estimating costs.                           tions Desert Storm and Desert Shield       million incentive fee was $750,000
                                            by providing 62 percent of the Air         higher than justified.
NSIAD-96-124, Aug. 29, 1996 (lOS            Force's passenger airlift capability
pages). State Departmen~ Options for        and 27 percent of its cargo airlift        NSIAD-96-128, Apr. 10, 1996 (13
Addressing Possible Budget Reduc-           capability. GAO discusses the (I)          pages). Combat Air Power: Funding
tions.                                      extent to which participation by           Priority for Suppression of Enemy Air
                                            commercial carriers in the program         Defenses May Be Too Low.
The State Department received               meets wartime requirements, (2)
appropriations of $2.695 billion for        Defense Department's efforts to            Although the Pentagon aclmowledges
fIScal year 1995 and $2.671 billion for     ensure future carrier participation,       that its strategy for airborne suppres-
fIScal year 1996 to conduct foreign         and (3) recent review of the program       sion of enemy air defenses (SEAD) is
affairs. Although State has cut its staff   that was directed by the C-17 Defense      critical to military air operations,
and implemented cost reduction              Acquisition Board.                         recent budget decisions may under-
measures, it has been reluctant or                                                     mine SEAD capability. The Defense
unable to significantly reduce its          NSIAD-96-126, July 26, 1996 (22            Department (DOD) is abandoning
overseas presence and the scope of its      pages). C-17 Aircraft: RM&A Evalua-        deployed SEAD capabilities that have
activities or to significantly change its   tion Less Demanding Than Initially         significant military value and has
business practices. Budgetary con-          Planned.                                   dropped plans to improve SEAD's
straints make it highly unlikely that                                                  ability to meet new threats. Despite
State will receive a level of funding       The Air Force reported that the C-17       the potential harm to war-fighting
that would allow it to maintain its         transport aircraft met or exceeded 10      capability, DOD has chosen to (1)
current level of activities. The great-     of the 11 contract specification           retire the F -4G without a comparable
est opportunity to reduce costs is by       requirements during its reliability,       replacement, (2) retire the EF-lll and
closing, or reducing the size of,           maintainability, and availability          use the less suitable EA-6B for Air
overseas posts, which cost about $1.9       (RM&A) evaluation. However, the            Force missions, and (3) curtail
billion annually-or nearly 70 percent       evaluation was less demanding than         funding for other SEAD programs.
of State's budget. State maintains a        the one called for in a draft 1992 plan.   DOD now recognizes that the decline
diplomatic presence in more than 250        The reduced rigor stemmed primarily        in SEAD capabilities may increase the
locations overseas, including coun-         from changes in the number of              vulnerability of friendly aircraft,
tries where the United States has           aircraft sorties, average sortie length,   frustrate the accomplishment of U.S.
limited interests. This structure has       and total flying hours. The evaluation     military objectives, and prolong future
not changed significantly since the         was also less demanding because it         wars. Nevertheless, DOD has chosen
end of the Cold War. State could also       had fewer airdrops and landings at         to support less urgent and more
reduce support costs by several             small, austere airfields than originally   prospective combat air power pro-
hundred million dollars by accelerat-       planned and flew cargo loads that          gTanlS, such as the F-22 aircraft. GAO
ing changes to its business practices.      were significantly lighter than pro-       is concerned that DOD's decisions
State now spends nearly $1.S billion        jected in the contract specifications.     could undermine U.S. war-fighting
on commWljcations, real estate, and         The RM&A evaluation was not a              capabilities and ma.y have to be
other support services for domestic         statistically valid test for determining   corrected later, at much greater
and overseas operations. Prompt             C-17 wartime utilization rates and did     expense and effort.
disposal of unneeded overseas real          not prove what a mature C-17 fleet
estate is just one example of how           would do during 45 days of wartime         NSIAD-96-129, June 21, 1996 (92
State could reduce its support costs.       surge operations. It simply demon-         pages). Defense Ammunition: Signifi-
                                            strated that a high utilization rate       cant Problems Left Unattended Will
NSIAD-96-125, Mar. 29, 1996 (6              could be achieved during a 4&-hour         Get Worse.
pages). Military Airlift: Observations      period. Finally, in awarding tile
on the Civil Reserve Air Fleet Pro-         incentive fee, the Air Force credited      The Defense Department (DOD) has
gram.                                       the C-17 aircraft with meeting the full    poorly managed its huge stockpile of
                                            mission capable rate goal. During the      ammunition-a legacy of the Cold
This report provides information on         RM&A evaluation, however, the              War and Operation Desert Storm. Of
the Civil Reserve Air Fleet Program,        aircraft was restricted from perform-      an $SO-billion inventory, an estimated
which augments military airlift during      ing formation personnel airdrop under      $31 billion worth of conventional
emergencies. According to Air Mobil-        realistic conditions and was rated not     ammunition, explosives, and missiles



                                            Page 105                                            GAO/OIMC-97-1A Subject Index
were surplus. Much of this was old          constant-at 60 percent of DOD's           $257 million in February 1995 to $84
and unusable. For some types of             budget-through 2001. This report          million in April 1996. Because of the
ammwtition, the military had more           identifies options to consolidate and     lack of a uniform approach to catego-
than 50 times its stated needs. The         reengineer infrastructure that would      rizing these projects, GAO cannot
massive quantities of ammwtition that       yield savings of nearly $12 billion in    determine the precise reasons for this
were returned to the stockPile as a         future years.                             drop in funding.
result of closed military bases in
Europe and the end of the Persian           NSIAD-96-133, May 31 , 1996 (17           NSIAD-96-135, July 17, 1996 (38
Gulf War-combined with decreases            pages). Ammwtition Industrial Base:       pages). Space Station: Cost Control
in budgets, staff, and storage space-       Information on DOD's Assessment of        Difficulties Continue.
have severely taxed the military's          Requirements.
ability to manage the ammwtition                                                      The international space station, a joint
inventory. Managers have difficulty         This report reviews the production        venture involving NASA, Japan,
(1) identifying anunwtition beyond          facilities available to support the       Canada, the European Space Agency,
what is needed for the military's           military's ammunition requirements        and Russia, will be a permanently
stated requirements, (2) sharing            and the status of the ammwtition          orbiting laboratory used to conduct
excess ammwtition with military             stockPile. GAO focuses on the De-         scientific research under weightless
services that may need it, and (3)          fense Department's assessment of the      conditions. NASA estimates its share
disposing of excess ammwtition that         industrial base's ability to supply       of the costs to build the space station
it no longer makes sense to retain. In      ammunition to meet requirements for       at $17.4 billion. The space station is
addition, ammunition inspections and        peacetime and two major regional          now scheduled to be completed by
tests have fallen so far behind that the    conflicts and to replenish the ammwti-    2002. As of April 1996, the prime
military cannot guarantee the usability     tion stockPile following those con-       contract for the space station was
or readiness of the stockPile.              flicts.                                   nearly $90 million over cost and about
                                                                                      $88 million behind schedule. Overall,
NSIAD-96-131 , Apr. 4, 1996 (45             NSIAD-96-134, June 21, 1996 (20           the prime contract is 45-percent
pages). Defense Infrastructure:             pages). Environmental Compliance:         complete and these variances are
Budget Estimates for 1996-2001 Offer        Continued Need for Guidance in            within planned funding levels. How-
Little Savings for Modernization.           Programmlng Defense Construction          ever, many cost threats remain, and
                                            Projects.                                 fmandal reserves needed for unex-
The Pentagon is counting on large                                                     pected contingencies remain limited
savings from streamlining infrastruc-       Since GAO last reported on this           during the next several years. If
ture to pay for new weapons systems,        subject in 1993 (GAOINSlAD-94-22),        available resources prove inadequate,
but GAO found that substantial net          the military services have tried to       program managers either will be
savings from infrastructure improve-        improve the manner in which they          forced to exceed the annual funding
ments, such as base closures and            program and prioritize environmental      limitation or will have to defer or
military purchasing reforms, are            compliance construction projects.         rephase other activities, potentially
unlikely during the next five years. In     However, Defense Department (DOD)         delaying the space station's schedule
defming "infrastructure," the Defense       policy still does not specify how the     and increasing its overall cost. NASA
Department (DOD) has excluded most          military services should report costs     has tried to ensure that the prime
intelligencej spacej and command,           for environmental compliance con-         development contractors and its
control, and communications pro-            struction projects and how they           major subcontractors implement
grams. These programs will cost             should decide which appropriation         effective performance measurement
about $25 billion in fiscal year 1996. If   account should provide the funds.         systems for managing their contrac-
DOD's objective is to examine all           Consequently, the military services       tors, but a complete performance
possible infrastructure for savings, it     and the Defense Logistics Agency          measurement system is still not in
should include these programs.              continue to differ in how they classify   place. Also, NASA has made slower
Moreover, some infrastructure costs         and prioritize projects and how they      progress implementing effective
are hidden in accounts that are             determine their source of funding.        performance measurement systems
supposedly devoted to operations and        These inconsistencies and lack of         on its contractors for developing
maintenance and to quality-of-life          guidance inhibit congressional            ground-based and on-orbit capabilities
programs for military personnel.            oversight and DOD program manage-         for using and operating the space
Unless the Pentagon is willing to           ment. DOD's estimates for fiscal year     station. GAO summarized this report
consider these areas, military over-        1997 environmental compliance             in testimony before Congress; see:
head will likely remain relatively          construction requirements fell from       Space Station: Cost Control Difficul-



GAO/OlMC-97-IA Subject Index                Page 106
ties Continue, by Thomas J. Schulz,       to cut the red tape normally associ-     of such regulations to make every
Associate Director for Defense            ated with federal procurement. Since     effort to ensure that regulations are
Acquisitions Issues, before the           then, legislation has eliminated some    concise and understandable. This
Subcommittee on Science, Technol-         requirements for purchases of $2,500     report (l) detemtines whether all
ogy, and Space, Senate Committee on       or less, called nticropurchases.         regulations necessary to implement
Commerce, SCience, and Transporta-        Agencies have found that they can        the act were published in accordance
tion. GAOIT-NSlAD-96-210, July 24         carry out their missions at lower cost   with the act's requirements and (2)
(six pages).                              by having staff use the purchase cards   describes the efforts made to make
                                          for simple purchases. Further, agency    the regulations concise and under-
NSIAD-96-136, July 9, 1996 (16            studies have shown that card use         standable.
pages). Ballistic Missile Defense:        reduces labor and payment-processing
Issues Concerning Acquisition of          costs. In fact, a 1994 interagency       NSIAD-96-140, July 10, 1996 (19
THAAD Prototype System.                   study showed that costs had often        pages). Defense Research and
                                          been cut by more than half; other        Development: Federal Centers' 1993
The Ballistic Missile Defense Organi-     studies have identified millions in      Compensation in Relation to Federal
zation and the Army plan to acquire a     potential savings from card use. Since   Levels.
Theater High Altitude Area Defense        the cards flrst became available
(THAAD) User Operational Evaluation       governmentwide, their use has            This report provides information on
System-an early prototype version of      skyrocketed. Even so, signiflcant        the professional staff, managers, and
the final THAAD system. The Army          room for growth exists: the average      executives of the Defense
now plans to buy 40 interceptors well     purchase card transaction was 5375 in    Department's Federally Funded
before testing ensures the User           fIScal year 1995, well below the         Research and Development Centers.
Operational Evaluation System's           micropurchase threshold Despite the      GAO reviews fIScal year 1993 costs
capabilities, even though the THAAD       growth in purchase card use, GAO         for salaries, other cash compensation,
program has already experienced           found no evidence of increased           and benefits to deterntine total
significant cost, schedule, and techni-   abuses. In fact, the electronic data     compensation for the centers and
cal performance problems. As a            stored on all purchase card transac-     identifies the federal levels that
result, the Defense Department risks      tions pemtits close monitoring of card   contained the average compensation
acquiring a system that otight not be     use. Offlcials at most agencies GAO      paid by the centers to their personnel.
worth deploying in an emergency.          reviewed believe that the Federal
GAO also found that (1) the               Acquisition Regulation, which governs    NSIAD-96-141 , June 4, 1996 (49
contractor's cost estimate for the        federal procurement, should more         pages). Operation and Maintenance
interceptors has more than doubled        clearly address card use. Also,          Funding: Trends in Army and Air
since 1992 and is likely to increase      although agencies want to learn from     Force Use of Funds for Combat
further and (2) test schedule slippage,   one another's experiences, no mecha-     Forces and Infrastructure.
increase delivery lead times, and         nism exists for them to communicate
funding lintitations have delayed the     with one another and to share their      The Secretary of Defense contends
availability of the interceptors by       improvements.                            that the Defense Department (DOD)
about two years. Furthermore,                                                      must increase its procurement
airborne deployment of the Use            NSIAD-96-139, June 28, 1996 (80          funding if it is to have a modem future
Operational Evaluation System may         pages). Acquisition Reform: Regula-      force. The Secretary wants to reform
be difficult because it must compete      tory Implementation of the Federal       the acquisition process and streamline
with other ntilitary hardware for         Acquisition Streamlining Act of 1994.    infrastructure to pay, in part, for force
scarce airlift resources.                                                          modernization. DOD now expects
                                          The Federal Acquisition Streanllining    decreases in its operation and mainte-
NSIAD-96-138, Aug. 6, 1996 (18            Act of 1994 contained more than 200      nance account and increases in its
pages). Acquisition Reform: Purchase      sections changing the laws governing     procurement account beginning in
Card Use Cuts Procurement Costs,          how agencies acquire nearly $200         fiscal year 1998. This report reviews
Improves Efficiency.                      billion worth of goods and services      how the Army and the Air Force
                                          annually. The act sets deadlines for     obligated their annual operation and
The National Performance Review           publishing proposed and fInal imple-     maintenance account funds and
recommended in 1993 that agencies         menting regulations, prescribes a        compares their obligations to what
increase their use of government          minimum 60-day period for public         was requested in the President's
commercial credit cards-called            review and comment on proposed           budgets. GAO determines what part of
purchase cards--for small purchases       regulations, and requires the drafters   total obligations was used for infra-



                                          Page 107                                          GAO/OIMC-97 -IA Subject Index
structure activities as opposed to        NSIAD-96-144, June 28, 1996 (22           quarterly, rather than monthly, as is
combat force. The Navy is not in-         pages). Precision-Guided Munitions:       the usual business practice. Second,
cluded in this review because, at the     AcquiSition Plans for the Joint Air-to-   the payment cycle allows 90 days-
headquarters level, it does not main-     Surface Standoff Missile.                 rather than the 60 days called for in
tain the level of budget request and                                                the settlement agreement-to docu-
obligation data that GAO needed for       The Air Force and the Navy are            ment cost claims, prepare a quarterly
its analysis.                             developing the joint air-ta-surface       statement, and pay the amount due.
                                          standoff missile to attack-day or         Third, the Army and Shell exchange
NSIAD-96-143BR, Apr. 22, 1996 (40         night-high-value, well-defended           payments through the mail rather than
pages). Civilian Downsizing: Unit         targets while allowing the launch         electronically, which further delays
Readiness Not Adversely Affected, but     aircraft to remain outside the range of   access to the funds. Nine of the 10
Future Reductions a Concern.              enemy defenses. This report discusses     checks GAO reviewed, including one
                                          (1) the Air Force's plan to use a new     for $12 million, were deposited after
The Defense Department (DOD)              acquisition process that balances         the due date.
began its downsizing effort in fiscal     capability and affordability require-
year 1988. Since then, DOD has            ments for acquiring the missile, (2)      NSIAD-96-147, July 5, 1996 (30
reduced its civilian workforce by         schedule and cost risks because of the    pages). Haiti: U.S. Assistance for the
about 25 percent, or 284,000 jobs. By     immaturity of essential technology        Electoral Process.
the time it finishes its downsizing in    and the complexity of integrating the
fiscal year 2001, DOD will have cut       missile with multiple aircraft, (3) the   This report reviews U.S. efforts to
nearly 730,000 jobs, or 35 percent        Air Force's plan to acquire 35 pilot      foster democratic elections and
below its strength level in 1987.         production missiles early in develop-     greater respect for human rights in
Civilian downsizing has not harmed        ment that may not be needed, and (4)      Haiti. GAO discusses (1) how the
military readiness at the installations   the need to strengthen the Navy's         ejections in Haiti were conducted, (2)
GAO visited However, Army installa-       commitment to the program.                the nature and the extent of U.S.
tion officials raised concerns about                                                support for these elections, and (3)
the effects of civilian downsizing on     NSIAD-96-145, Aug. 16, 1996 (8            whether election assistance funds for
civilian services, such as public works   pages). Environmental Cleanup: Cash       Haiti were properly controlled and
and repair and maintenance. Civilian      Management Practices at Rocky             spent. GAO also assesses Haiti's
downsizing has affected the amount of     Mountain Arsenal.                         progress in investigating allegations of
time its takes to repair noncritical                                                politically motivated killings.
equipment, and both Army and Air          The Rocky Mountain Arsenal, located
Force officials said that civilian        on 17,000 acres northeast of Denver,      NSIAD-96-149, Aug. 6, 1996 (44
downsizing had reduced recreational       is one of the Defense Department's        pages). Military Bases: Update on the
and family services. Officials at all     most contaminated insta1Jations. The      Status of Bases Closed in 1988, 1991,
installations were concerned about        military manufactured chemical            and 1993.
the effect of downsizing on civilian      weapons there for decades, and the
workforce morale because of limited       Army leased part of the arsenal to the    Land sales for the first three rounds of
career and promotion opportunities,       Shell Oil Company, which produced         military base closure totaled nearly
job insecurity, and longer working        herbicides and pesticides. A cost-        $180 million as of March 1996. There
hours. GAO found that the military        sharing arrangement between the           were only two sales in the 1993 round,
services lacked a long-term road map      Army and Shell does not provide for       for a total of $1.5 million. Although
to guide civilian reduction decisions     timely or efficient collection of what    private parties are not precluded from
to meet future mission requirements.      is expected to exceed $500 million in     buying surplus properties at the
Although the services are developing      cleanup costs from Shell. When the        closed military bases, they rarely have
comprehensive mission strategies to       government does not collect receiv-       a chance to bid on the properties
better determine future civilian          ables in a timely manner, it loses the    because communities are requesting
workforce requirements, most of the       opportunity to invest these funds until   the properties under public benefit
civilian reductions will have been        needed. Since the 1989 settlement         transfers, economic development
completed by the time these strategies    agreement with Shell, weak cash           conveyances, and noncompetitive
are in place.                             management practices have cost the        negotiated sale authorities. Communi-
                                          government more than a million            ties are planning industrial and office
                                          dollars. GAO noted three weaknesses       complexes, parks and recreational
                                          in cash management practices at the       facilities, residential housing, and
                                          arsenal. First, the Army bills Shell      prisons on this land. Developing and



GAO/OIMC-97-1ASubJcct Index               Page 108
implementing reuse and disposal           United States are not fully prepared to   subject to the same environmental,
plans, however, can be a lengthy          respond to a chemical emergency,          safety, and health laws as is private
process. Readily marketable proper-       fmancial management is weak, and          industry, as well as additional regula-
ties may decline in value as they sit     costs are mounting.                       tions governing federal facilities. The
idle and may require resources from                                                 day-to-day operations of a typical
the services' budgets for protection      NSlAD-96-11>3, June 10, 1996 (13          military installation mirror those of a
and maintenance. GAO recommends           pages). Basic Training: Services          small city. As a result, these installa-
that the Defense Departtnent (DOD),       Using a Variety of Approaches to          tions face many of the same environ-
to preserve the facilities' value while   Gender Integration.                       mental problems confronting the
reducing protection and maintenance                                                 industrial and commercial sectors.
costs, (1) set time limits on negotia-    The military services are using           DOD has organized its $5 billion
tions before offering properties for      various approaches to integrate men       environmental program into five
public sale and (2) when practical,       and women during basic training.          areas: cleanup, compliance, conserva-
rent unoccupied surplus housing and       These approaches range from using         tion, pollution prevention, and tech-
other facilities as a way to preserve     the same program to instruct both         nology. This report discusses three of
properties pending fmal disposal. To      sexes and integrating some training       these areas: (1) cleanup
help communities successfully             units to using different programs of      (remediation), which involves investi-
transform closed bases into new           instruction and providing separate        gating and cleaning up contamination
opportunities, federal agencies have      training. The costs associated with       from hazardous substances and waste
provided more than $780 million in        gender integration have been low. In      on land used by DOD; (2) compliance
direct assistance to areas affected by    fact, the Army is the only service that   with federal, state, and local environ-
the 1988, 1991, and 1993 realignment      has incurred expenses to accommo-         mental laws and regulations; and (3)
and closure rounds. DOD now reports       date gender-integrated basic training,    technology research and development.
that for the 60 bases GAO reviewed,       spending about $67,000 to modify
about 21 percent of the 88,000 DOD        barracks. No st.affing or curriculum      NSlAD-96-156, July 12, 1996 (32
civilian jobs lost have been replaced.    changes have been made to accommo-        pages). Inventory Management:
                                          date integrated basic training. Studies   Adopting Best Practices Could
NSlAD-96-1I>O, July 23, 1996 (81          of the impact of gender-integrated        Enhance Na>"y Efforts to Achieve
pages). Chemical Weapons Stockpile:       units have been done for the Navy and     Efficiencies and Savings.
Emergency Preparedness in Alabama         the Army. A 1993 study done for the
Is Hampered by Management Weak-           Navy reported no impact on objective      This report is part of a series compar-
nesses.                                   performance measures and improve-         ing the Defense Department's (DOD)
                                          ment in teamwork measures for both        logistics practices with those of the
Eight years after the inception of the    men and women training in gender-         private sector. Although DOD has
Army's Chemical Stockpile Emer-           integrated units. A recent Army study     introduced some innovative practices,
gency Preparedness Program, commu-        found that the performance of women       many opportunities exist for improv-
nities near the Anniston Army Depot       improved in gender-integrated training    ing the logistics system. This report
in Alabama are not prepared to            units while the performance of men        focuses on the Navy's logistics system
respond to a chemical stockpile           was not degraded. Although the Army       for aircraft parts. GAO (1) examines
emergency because they lack critical      introduced limited gender-integrated      the current performance of the Navy's
items, including communication            basic training in the late 1970s and      logistics system, (2) reviews the
warning systems and protective            early 1980s, the Army has no records      Navy's efforts to improve its logistics
equipment for emergency workers.          from that period to compare with its      system and reduce costs, and (3)
Alabama and six counties have yet to      cun'ent program.                          examines leading best practices used
spend $30.5 million-about two-thirds                                                by the airline industry that could
of the $46 million earmarked for          NSlAD-96-155 , Aug. 2, 1996 (32           potentially help the Navy bolster the
improvements in emergency prepared-       pages). EnvirOlunental Protection:        efficiency and effectiveness of its
ness. This lack of progress is the        Status of Defense Initiatives for         logistics operations.
result of management weaknesses at        Cleanup, Compliance, and Technol-
the federal level and inadequate          ogy.                                      NSlAD-96-11>7, June 21, 1996 (6
action by state and local agencies.                                                 pages). Operational Support Airlift:
The situation in Alabama may not be       The Defense Department (DOD)              Analysis of Joint Staff Estimate of
unique, however. GAO has found that       manages thousands of military             Military Wartime Requirements.
local communities near the eight          installations throughout the United
chemical weapons storage sites in the     States and overseas. Its operations are




                                          Page 109                                           GAO/OlMC-97-lA Subject Index
Operational support aircraft are used       NSlAD-96-159, July 9, 1996 (22             pressure on active duty tanker crews.
to meet short notice, generally smaller     pages). Intermodal Freight Transpor-       The reserve forces have been able to
cargo and passenger requirements            tation: Projects and Planning Issues.      assume more of the tanker workload
that cannot be met by regularly                                                        because many crew members have
scheduled tactical resupply aircraft. A     The Intermodal Surface Transporta-         volunteered extra time, thus exceed-
study by the Joint Chiefs of Staff          tion Efficiency Act set aside $155         ing the reserves' legal training require-
found that the joint wartime require-       billion to improve the nation's surface    ment of 38 days per year. In fact,
ment for operational support aircraft       transportation system during a six-        many have served more than 100 days
is 391 planes, or about 100 less than       year period ending in fIScal year 1997.    a year in training and flying sorties.
the fleet in existence at the time of the   Although the act mainly authorized
study. In response to a congressional       highway construction and improve-          NSlAD-96-161, July 15, 1996 (23
request that GAO determine if the           ments, it also encouraged intermodal       pages). Defense Depot Maintenance:
requirement for 391 aircraft was            connections as a way to enhance the        Commission on Roles and Mission's
excessive, this report (I) recalculates     transportation infrastructure.             Privatization Assumptions Are
the Joint Staff's estimate using the        Intermodal connections link the            Questionable.
same computerized model and (2)             various transportation modes-
determines how changes in the flight        highways, rail, air, and maritime          GAO questions the assumption made
frequency assumptions affected the          facilities. Economists and transporta-     by the Commission on Roles and
calculation of aircraft requirements.       tion planners believe that productivity    Missions that privatizing all Defense
                                            and efficiency gains can be achieved       Department (DOD) depot mainte-
NSlAD-96-158, July 15, 1996 ( 15            by improving intermodal connections.       nance activities would save 20 percent
pages). Military Bases: Potential           This report reviews (1) the Transpor-      and not harm readiness or
Reductions to the Fiscal Year 1997          tation Department's efforts to track       sustainability. The Commission's
Base Closure Budget.                        how states used funds made available       assumptions are based on conditions
                                            by the act to facilitate intermodal        that do not now exist for many depot
A review of the Defense Department's        transportation and the nature and          workloads. The extent to which
(DOD) Base Realignment and Closure          extent of funds used by states for         DOD's long-term privatization plans
(BRAC) accounts indicates that              intermodal freight projects, (2) how       and market forces will effectively
Congress has little assurance that          some local and regional areas that         create more favorable conditions for
appropriated BRAC funds will be used        handle a large volume of freight have      outsourcing is uncertain. The Com-
as requested in DOD budget submis-          considered intermodai freight trans-       mission assumed that a highly com-
sions. BRAC expenditures vary               portation issues as part of their          petitive and capable market exists or
substantially from budget submis-           planning process, and (3) the impedi-      would develop for most depot
sions. In past budget submissions,          ments some areas face in improving         workloads. However, most of the
environmental costs have been               freight transportation. GAO also           depot workloads contracted to the
understated while costs for other           provides information on intermodai         private sector are awarded
BRAC subaccounts, such as military          freight tra.nsport.:"l tion trends.        noncompetitively-mostly to the
construction and operation and                                                         original equipment manufacturer.
maintenance, have been overstated.          NSlAD-96-160, Aug. 8, 1996 (45             Moreover, several factors would likely
The DOD fiscal year 1997 budget             pages). U.S. Combat Air Power: Aging       limit private sector competition for
request can be reduced by about $148        Refueling Aircraft Are Costly to           many workloads now in the public
million (about 6 percent) because           Maintain and Operate.                      depots. Without highly competitive
funds from prior year appropriations                                                   and capable private sector markets,
will be available to fund future            The military's KC-135 tanker fleet         the cost and readiness risks of
expenditures. Additional reductions         used for air refueling is now 30 to 40     privatizing depot maintenance
are possible because mandated annual        years old, and these aircraft are taking   workloads may prove unacceptable.
DOD Inspector General (lG) audits of        longer and costing more to maintain        Furthermore, the Commission's
BRAC construction projects identify         and operate. Moreover, the Air Force       privatization savings do not reflect the
projects that can be eliminated or          could spend more than $6 billion on        cost impact of excess capacity in the
reduced in scope. If the fIScal year        modifications and structural repairs to    public depots. The Commission also
19971G audit identifies reductions in       keep the KC-135 fleet operational.         assumed that public-private competi-
the projects proportionate to the           Despite increasing demands on the          tions would be used in the absence of
reductions identified in 1996 and 1995,     tanker fleet, the Air Force has de-        private sector competition and would
the amount would be about $60               ferred a replacement program and is        be limited to only a few cases. GAO
million.                                    relying on reserve personnel to relieve    found that public-private depot



GAO/OIMC-97-lA Subject Index                Page 110
maintenance competitions have             direct U.S. assistance to Mexico has      policy's content, and (3) the inconsis-
resulted in savings and benefits and      been negligible because of Mexico's       tency of DOD's policy with current
can provide a cost-effective way to       1993 policy of refusing most U.s.         statutes and congressional direction
make depot workload allocation            counternarcotics assistance. Stafflng     on the use of public-private competi-
decisions for some workloads. The         reductions in the State Department's      tions.
beneficial use of such competitions       Narcotics Affairs Section at the U.S.
could have significantly more applica-    Embassy in Mexico City have limited       NSlAD-96-166, May 21, 1996 (23
bility than the Commission assumed.       monitoring of earlier U.S. assistance,    pages). Defense Depot Maintenance:
                                          mainly helicopters and spare parts.       More Comprehensive and Consistent
NSIAD-96-162, Aug. 26, 1996 (36           Since GAO's June 1995 testimony           Workload Data Needed for
pages). Best Practices: Comm ercial       before Congress (GAOrr-NSlAD-95-          Decisionmakers.
Quality Assurance Practices Offer         182), the U.S. embassy has elevated
Improvements for DOD.                     drug control issues in importance and     The National Defense Authorization
                                          has developed a drug control operat-      Act for Fiscal Year 1996 requires GAO
The Defense Department (DOD)              ing plan with measurable goals; the       to analyze the Defense Department's
spends about $1.5 billion extra per       Mexican government has indicated a        (DOD) report entitled Depot Mainte-
year on military-urrique quality          willingness to develop a mutual           nance and Repair Workload, which
assurance requirements for major          counternarcotics assistance program       was submitted to Congress in April
acquisitions. It spends billions more     and has taken action on important law     1996. GAO focuses on DOD's analysis
on cost and schedule overruns to          enforcement and money laundering          of ( 1) the need for and effect of the
correct problems caused by poor           legislation; and the United States and    60/40 legislative requirement concern-
quality practices. To help improve        Mexico have created a framework for       ing the allocation of depot mainte-
DOD's quality assurance program,          greater cooperation and are expected      nance workloads between the public
GAO reviewed world-class commer-          to develop a joint counternarcotics       and private sectors, (2) historical
cial organizations to detennine what      strategy by the end of the year.          public and private sector depot
practices they had adopted to more        Following through on these efforts is     maintenance workload allocations,
efficiently produce quality products.     critical to combatting drug trafficking   and (3) projected public and private
This report describes (I) the problems    in Mexico. GAO summarized this            depot maintenance workload alioca-
DOD has had historicaliy in improving     report in testimony before Congress;      tions.
quality assurance practices, (2) some     see: Drug Control: Observations on
private sector practices that could       Counternarcotics Efforts in Mexico,       NSlAD-96-169, July 9, 1996 (15
benefit DOD, and (3) a current plan       by Bel\jarnin F. Nelson, Director of      pages). Physically Demanding Jobs:
for improving quality assurance           International Relations and Trade         Services Have Little Data on Ability of
activities.                               Issues, before the Subcommittee on        Personnel to Perfonn.
                                          National Security, International
NSIAD-96-163, June 12, 1996 (29           Relations and Criminal Justice, House     This report reviews the use and
pages). Drug Control:                     Committee on Government Refonn            development of gender-neutral
Counternarcotics Efforts in Mexico.       and Oversight. GAOrr-NSlAD-96-182,        occupational perfonnance standards
                                          June 12 (10 pages).                       in the military. GAO (1) discusses the
Hampered by declining U.S. funding,                                                 military services' approaches to
staff cutbacks, and corruption among      NSIAD-96-165 , May 21, 1996 (20           implementing gender-neutral perfor-
key Mexican institutions, drug inter-     pages). Defense Depot Maintenance:        mance standards and screening
diction efforts in Mexico have failed     DOD's Policy Report Leaves Furure         service members to ensure that they
to stem the flow of illegal drugs         Role of Depot System Uncertain.           can meet the physical demands of
reaching the United States. Mexico                                                  their jobs, (2) discusses how the
remains the primary transit route for     The National Defense Authorization        military services identified the extent
cocaine, heroin, marijuana, and           Act for Fiscal Year 1996 requires GAO     to which service members had
methamphetamine smuggled into this        to analyze the Defense Department's       problems in accomplishing the
country. U.S. narcotics activities in     (DOD) report entitled Policy Regard-      physical demands of their jobs, and
Mexico and the transit zone have          ing Perfonnance of Depot-Level            (3) evaluated the Air Force's imple-
declined since 1992. U.S. funding for     Maintenance and Repair, which was         mentation of its strength aptitude
counternarcotics efforts in the transit   submitted to Congress in April 1996.      testing program.
zone and Mexico fell from $1 billion in   GAO focuses on (1) the likely future
fiscal year 1992 to $570 million in       role of the defense depots, (2) the
fIScal year 1995. Moreover, since 1992,   adequacy of the depot maintenance



                                          Page III                                           GAO/OIMC-97-1A Subject Index
NSlAD-96-170, June 21, 1996 (19           property. All of these options, how-      installation support portion of DOD's
pages). Bottom-Up Review: Analysis        ever, have the potential for adversely    infrastructure budget is projected to
of DOD War Game to Test Key               impacting the goals of the program.       decline between 1997 and 2001, but all
Assumptions.                                                                        other categories of infrastructure are
                                          NSlAD-96-173, June 28, 1996 (10           projected to increase. The combina-
This report, an unclassified version of   pages). Wartime Medical Care:             tion of operation and maintenance
an earlier classified GAO report.         Personnel Requirements Still Not          and military personnel appropriations
reviews the objectives, methodology,      Resolved.                                 fund about 80 percent of infrastruc-
and results of the Pentagon's war                                                   ture activities that can be clearly
game Nimble Dancer, which assessed        Since 1994, the Defense Department        identified in the Future Years Defense
the ability of the U.S. armed forces to   (DOD) and the military services have      Program. The upshot is that DOD
fight and win two nearly simultaneous     produced several estimates of war-        must look to these two appropriations
m~or regional conflicts. GAO also         time medical personnel requirements.      if it plans to spend less on infrastruc-
discusses the assumptions and data        The National Defense Authorization        ture activities.
used in Nimble Dancer relating to         Act of 1996 requires GAO to study the
several areas, such as readiness,         reasonableness of the models each         NSlAD-96-175, Sept 27, 1996 (16
threat, and force availability. GAO       military service uses to determine        pages). Electronic Warfare: Addi-
provides its observations on the          appropriate wartime medical person-       tional Buys of Sensor System Should
objectives, methodology, and results      nel force levels. DOD recently em-        Be Delayed Pending Satisfactory
of the exercise. It also provides         barked on, but has yet to complete,       Testing.
details on specific areas of interest.    another m~or wartime medical
                                          requirements study. This study is         The Army is spending $1.55 billion to
NSIAD-96-172 , Sept. 5,1996 (29           expected to modify the data contained     develop the Intelligence Electronic
pages). Military Base Closures:           in the service models and is intended     Warfare Common Sensor system,
Reducing High Costs of Environmen-        to produce a unified DOD position on      which is an antenna-like device to be
tal Cleanup Requires Difficult            medical requirements. This report         mounted on the backs of tanks and
Choices.                                  addresses the service models' results,    other vehicles. The system's purpose
                                          their methodologies, and their inclu-     is to intercept enemy communications
As of March 1996, the Defense Depart-     sion of active duty and reserve           signals, locate the source of those
ment (DOD) had set aside $3.4 billion     medical personnel. A separate report      signals, and jam them electronically.
for environmental cleanup at bases        will examine DOD's updated wartime        I t is also e,:pected to be able to locate
being closed under the base realign-      medical requirements study and, to        enemy radars. The Army has prema-
ment and closure process. However,        the extent needed, address any            turely committed to the low-rate
as more bases are closed and more         remaming issues associated with the       initial production of this unproven
cleanup efforts are undertaken,           service models.                           system and plans an additional low-
program costs are likely to rise                                                    rate initial production that is not
significantly. Available DOD data         NSlAD-96-174, May 31, 1996 (8             justified. Also, the Army plans to
suggest that program costs are likely     pages). Defense Infrastructure: Costs     approve additional production of the
to exceed $11 billion. The key reasons    Projected to Increase Between 1997        system and enter full-rate production
for the high cost of closing base         and 2001.                                 without showing that it can meet
cleanups are ( 1) the large number of                                               minimum acceptable performance
contaminated sites and difficulties       GAO analyzed the infrastructure           requirements. Unless this acquisition
arising from the types of contamina-      portion of the Defense Department's       strategy is changed, the Army risks
tion, (2) requirements of federal and     (DOD) 1997 Future Years Defense           procuring an unsatisfactory system
state laws and regulations, (3) lack of   Program, which covers fiscal years        that may require later redesigns and
cost-effective cleanup technology for     1997-2001, and found that infrastruc-     retrofits. Because the Defense Depart-
some contaminants, and (4) intended       ture costs are projected to rise from     ment has indicated an unwillingness
property reuse. Options for reducing      $146 billion in 1997 to $155 billion in   to take con'ective actions that GAO
cleanup costs at closing bases include    2001. Although the infrastructure         believes are necessary, Congress
deferring or extending cleanup            portion of DOD's budget is projected      should take steps to ensure that these
actions, modifying existing laws and      to decrease from 60 percent in 1997 to    problems are addressed.
regulations, adopting more-effective      57 percent in 2001, this is primarily
cleanup technologies, and sharing         because the total military budget is      NSlAD-96-176, Aug. 2, 1996 ( 15
costs with the ultimate user of the       expected to increase at a faster rate     pages). NASA Personnel: Challenges
                                          than the infrastructure portion. The      to Achieving Workforce Reductions.



GAOIOIMC-97-1A Subject lndex              Page 112
By the end of fIscal year 1996, NASA        have been raised about the                NSlAD-96-179, Sept. 23, 1996 (72
will be about halfway to its goal of        affordability of these plans. At the      pages). U.S. lnfonnation Agency:
reducing its workforce from 25,000          same time, the air defenses of poten-     Options for Addressing Possible
full-time-equivalent employees to           tial adversaries in the post-Cold War     Budget Reductions.
about 17,500. NASA's success is due         era have not been substantially
malnly to the use of buyouts to             improved and pose little threat to the    The U.S. lnfonnation Agency (USIA)
encourage employees to voluntarily          advanced capabilities of U.S. forces.     received $1.407 billion in fIScal year
resign or retire from the government.       GAO concludes that the Pentagon is        1995 and $1.077 billion in fJScal year
About two-thirds of the 4,000 people        proceeding with some major invest-        1996 for the conduct of public diplo-
who left NASA in 1994 and 1995 took         ments without clear evidence that the     macy. Fiscal year 1996 funding is
buyouts. Voluntary attrition should         programs are justified. The air power     about $200 million less that requested.
meet NASA's downsizing goals                components of the four services now       Bipartisan efforts to balance the
through fIscal year 1998, but the           focus on a strategy of fighting two       budget could result in further de-
agency doubts whether attrition             major regional conflicts versus a         creases by the year 2000. This report
would provide sufficient personnel          global war. In spite of congressional     examines USIA's cost-<:utting efforts
losses by fiscal year 1999. Thus, NASA      direction to manage the military from     and identifies options that could
intends to start planning for a reduc-      ajoint perspective rather than on a       enable USIA to a<ljust to reduced
tion-in-force during f'lScal year 1998 if   service-by-service basis, in many         budgets.
not enough NASA employees are               areas the services are undertaking
retiring or resigning voluntarily.          duplicative programs or are advocat-      NSlAD-96-188, July 9, 1996 (29
NASA's ability to reach its goal of         ing programs to fulfill a need that may   pages). Defense Budget: Trends in
17,500 employees is subject to major        not exist. Because DOD does not           Active Military Personnel Compensa-
uncertainties, including the shifting of    routinely develop infonnation on joint    tion Accounts for 1990-97.
program management from headquar-           mission needs and aggregate capabili-
ters to fIeld centers and the award of      ties, it has few assurances that          The Defense Department's (DOD)
a single prime contract for managing        decisions to buy, modify, or retire air   budget request for fIscal year 1997
the space shuttle at Kennedy Space          power systems are sound.                  includes nearly $70 billion for pay and
Center. Because of questions about                                                    allowances for military personnel.
NASA's ability to achieve major             NSlAD-96-178, Aug. 22, 1996 (23           This amount represents about 30
personnel reductions to meet likely         pages). School of the Americas: U.S.      percent of DOD's total budget request.
future budgets, Congress may want to        Military Training for Latin American      DOD projects that during the next five
consider requiring NASA to submit a         Countries.                                years, pay and allowances will remain
workforce-restructuring plan for                                                      about 30 percent of its total budget.
achieving its fIScal year 2000 goal.        The U.S. Anny School of the Americas      This report (1) identifIes the various
                                            has been training military students       pay categories included in the ac-
NSlAD-96-177, Sept. 20, 1996 (96            from Latin America for the past 50        counts, (2) describes the trends of
pages). Combat Air Power: Joint             years. This report provides infonna-      those pay categories, and (3) deter-
Mission Assessments Needed Before           tion on (I) how the Latin American        mines how changes in the budget
Making Program and Budget Deci-             political, military, and economic         compared with changes in service
sions.                                      environments in which the school          force levels. GAO also discusses the
                                            operates have changed in recent           reasons for some of the service trends
The Defense Department (DOD) plarlS         years; (2) who the School's attendees     and differences among the services.
to spend more than $300 billion during      are and how they are chosen; (3) how
the next 15 to 20 years to modernize        the School's curriculum has evolved;      NSlAD-96-184BR, June 27, 1996 (24
its combat air power capabilities, but      and (4) who provides the instruction.     pages). Contingency Operations:
it lacks sufficient information from a      GAO also provides infonnation on a        Update on DOD's Fiscal Year 1995
joint perspective to prioritize pro-        recent U.S. Anny study covering the       Cost and Funding.
grams, objectively weigh the merits of      School and a Defense Department
new programs, and decide whether            initiative to strengthen civilian         During fIScal year 1995, the Defense
current programs should receive             institutions involved in defense and      Department (DOD) participated in
continued funding. Hundreds of              security in Latin America                 contingency operations around the
billions of dollars more will likely be                                               globe, including Haiti, Southwest
needed for programs, such as the                                                      Asia, and the fonner Yugoslavia To
Joint Strike Fighter, that are still on                                               help cover the incremental costs of
the drawing board. Serious concerns                                                   these operations, Congress provided



                                            Page 113                                           GAO/OIMC-97-lA Subject Index
DOD with a supplemental appropria-         NSIAD-96-187, Sept. 9, 1996 (33           the Defense Fuel Supply Center and
tion. In an earlier report (GAOINSlAD-     pages). NASA Infrastructure: Chal-        fixed-base operators who provide jet
96-121BR), GAO found that although         lenges to Achieving Reductions and        fuel at contractually set prices. These
DOD ended fIScal year 1995 with            Efficiencies.                             prices are generally less than com-
supplemental funding of $12 million                                                  mercial prices charged at civilian
above its reported incremental costs,      Despite some progress in reducing its     airports. This report discusses (1) the
some of the military services and          infrastructure, NASA faces formidable     pricing policies, rules, and regulations
defense agencies had reported costs        challenges to successfully reaching its   used for both fuel programs and
that exceeded their supplemental           budget goals through fiscal year 2000.    whether the cost factors used for each
appropriations while other services        Ultimately, if NASA cannot find           are consistent with applicable poli-
had reported costs below their             enough infrastructure cost reductions     cies; (2) whether bulk fuel usage and
supplemental appropriations. GAO           to meet these goals, the agency will      into-plane sales have changed in
also indicated that costs surged in        likely have to once again adjust its      recent years and GAO's assessment of
September 1995. This briefing report       programs--stretching out, reducing        the reasons for any changes; and (3)
provides information on (1) how the        the scope, terminating current efforts,   the significance and validity of
services that reported costs in excess     and postponing new initiatives. Even      questions and complaints raised by
of supplemental funding covered their      with NASA management's commit-            into-plane contractors and the Na-
shortfalls and (2) why the surge           ment to meeting goals without making      tional Air Transportation Association
occurred.                                  such changes, the environment             about the effect on their businesses of
                                           confronting the agency will not allow     Defense Department changes in the
NSIAD-96-186, Sept. 19, 1996 ( Ill         it to readily overcome the many           pricing of into-plane jet fuel.
pages). Textile Trade: Operations of       obstacles it faces. GAO believes that
the Committee for the implementation       NASA should submit a plan to Con-         NSIAD-96-190, Sept. 11, 1996 (19
of Textile Agreements.                     gress on how it will meet the fiscal      pages). Battlefield Automation: Army
                                           year 2000 infrastructure targets. On      Land Warrior Program Acquisition
This report examines the role of the       the basis of that plan and any further    Strategy May Be Too Ambitious.
U.S. Committee for the implementa-         progress by NASA, Congress could
tion of Textile Agreements in adminis-     consider establishing an independent      The Army is attempting to automate
tering the U.S. textile program in light   process to facilitate closure and         several battlefield functions through
of the 1994 Uruguay Round Agree-           consolidation of NASA facilities. GAO     the creation of a vast network of
ment on Textiles and Clothing. The         summarized this report in testimony       computers, sensors, and communica-
Agreement caJls for the phaseouts of       before Congress; see: NASA Facilities:    tions systems that would provide a
quotas under the prior Multifiber          Challenges to Achieving Reductions        simultaneous picture of the battlefield
Arrangement. GAO (1) identifies the        and Efficiencies, by Thomas J. Schulz,    from soldier to commander. Included
Committee's authority, functions,          Associate Director for Defense            in this effort is the Army's Land
resource, and costs under the              Acquisitions Issues, before the           Warrior soldier system, which is
Multifiber Arrangement and the             Subcommittee on National Security,        estimated to cost upwards of $1.4
Agreement; (2) determines the              International Affairs, and Criminal       billion. Under the Land Warrior
Committee's decision-making process        Justice, House Committee on Govern-       Soldier program, the Army is develop-
for imposing quotas, including the         ment Reform and Oversight. GAOrr-         ing   a computer/radio , software,
level of openness in its process; (3)      NSIAD-96-238, Sept II (6 pages).          integrated headgear (including an
reviews the Committee's use of data                                                  imaging display), weapon subsystem,
to make quota decisions; and (4)           NSIAD-96-188, July 31 , 1996 (25          and protective clothing and equipment
evaluates the Committee's use in 1995      pages). Defense Management:               that will outfit the individual soldier.
of transitional safeguards provided by     Information on Selected Aspects of        This report (1) determines the status
the Agreement. GAO also examines           DOD's Jet Fuel Program.                   of various technology and human
the European Uruon, Canadian, and                                                    factor problems associated with
Japanese use of quotas under the           Under its bulk fuel program, the          system development, (2) evaluates the
Multifiber Arrangement and the             Defense Logistics Agency buys jet fuel    acquisition strategy for the Land
Agreement. In addition, GAO de-            from commercial suppliers and             Warrior system, and (3) assesses
scribes the safeguard process admin-       transports it via trucks, pipelines,      plans to integrate the system with the
istered by the U.S. International Trade    barges, and railroads to military         "digital battlefield."
Commission.                                installations for use by military
                                           aircraft. The into-plane program
                                           involves individual contracts between



GAO/OIMC-97-1A SUbject Index               Page 114
NSIAD-96-191, Sept. 5, 1996 (9              sesses (1) the basis for DOD's bomber      This updates GAO's March 1996 report
pages). Defense Restructuring Costs:        force requirements, including recent       on military readiness (GAOINSlAD-96-
Projected and Actual Savings From           DOD and Air Force studies supporting        ll1BR) and discusses significant
Martin Marietta Acquisition of GE           the planned force structure; (2) the       changes. From April 1995 through
Aerospace.                                  Air Force's progress in implementing       March 1996, readiness of the 87
                                            the conventional concepts of opera-        military units covered by the earlier
The Pentagon is restricted from             tions for using bombers; and (3) the       report was at levels consistent with
paying restructuring costs associated       cost to keep bombers in the force and      service goals in 80 percent of the
with defense contractor mergers.            bolster their conventional capabilities.   units. This represents a 12-percent
Restructuring costs cover a wide            GAO also evaluates the potential cost      improvement. Readiness reductions
range of expenses, including person-        savings and effects on military            were caused mainly by shortages of
nel relocations, severance pay, early       capability of four alternatives for        available personnel, particularly those
retirement incentives, equipment            reducing bomber costs, including           trained to do highly skilled military
relocations, and plant closings. The        retiring or reducing the B-1B force,       jobs. Of the 31 Army and five Air
law prohibits the payment of restruc-       and reviews information on the             Force units GAO reviewed that
turing costs until a senior Defense         procurement of additional 8-2s.            participated in the Bosnia operation,
Department official certifies in writing                                               five Army units and one Air Force unit
that projected savings from the             NSIAD-96-193BR, Sept. 4, 1996 (64          reported readiness reductions. The
restructuring are based on audited          pages). 1997 Defense Budget: Poten-        Army units had sent elements or key
data and should reduce overall costs        tial Reductions and Rescissions to         personnel to Bosnia, thus reducing
to DOD. This report discusses the 17        DOD's Procurement and RDT&E                resources available to the parent
restructuring projects proposed for         Programs.                                  units. The Air Force unit has histori-
payment by Martin Marietta COIpora-                                                    cally suffered from personnel short-
tion as a result of its acquisition of      GAO examined the Defense                   ages. The Bosnia operation did not
General Electric's aerospace business       Department's (DOD) fiscal year 1997        affect the readiness of either Navy or
segments. DOD has certified eight of        budget request and prior years'            Marine COIpS units because they were
the 17 projects. GAO reviewed in            appropriations for selected procure-       either already in the theater or had
detail the first five projects certified;   ment and research, development, test,      planned a forward presence deploy-
the other three projects are similar.       and evaluation (RDT&E) programs.           ment to the area.
GAO discusses whether the (1)               GAO identified opportunities to
certification for the five projects was     reduce fiscal year 1997 procurement        NSIAD-96-198, Aug. 28, 1996 (21
carned out in accordance with the           and RDT&E requests by $3.2 billion         pages). Mine Detection: Army
regulations, (2) savings were in line       and to rescind prior years' procure-       Detector's Ability to Find Low-Metal
with the original estimates, and (3)        ment and RDT&E appropriations by           Mines Not Clearly Demonstrated.
restructuring lowered DOD contract          nearly $455 million. These reductions
prices.                                     can be made because schedules              Land mines, especially those with
                                            slipped, requirements changed, and         little metal content, have been used
NSIAD-96-192, Sept. 30, 1996 (88            issues affecting program funding have      extensively by the warring factions in
pages). Air Force Bombers: Options          emerged since the budget request was       the former Yugoslavia, and up to
to Retire or Restructure the Force          developed. The potential rescissions       seven million mines are believed to be
Would Reduce Planned Spending.              include $35.6 million in excess prior      in the region. Before the deployment
                                            years' appropriations for which            of U.S. troops in the area, U.N. forces
Although bombers currently in the           obligational authority expires on          were involved in 174 land mine
force were initially intended to fight a    September 30, 1996. DOD has re-            incidents in Bosnia, which included
nuclear war, the Defense Department         quested congressional approval to          204 casualties and 20 deaths. The
(DOD) has since the end of the Cold         reprogram some of these excess funds       ability of the Army's ANIPSS-12
War placed greater emphasis on the          in its fiscal year 1996 omnibus repro-     portable mine detector to locate low-
role of bombers in conventional             gramming request and has considered        metal mines has not been clearly
conflicts. In recent years, Congress        using some of these excess funds to        demonstrated. The ANIPSS-12 per-
has raised concerns about the size and      pay for operations in Bosnia               formed poorly against low-metal
capabilities of the planned bomber                                                     targets in operational tests. The AN-
force and the long-term affordability       NSIAD-96-194, Aug. 2, 1996 (19             PSS-12's testing history suggests that
of DOD's plans to maintain and              pages). Military Readiness: Data and       the detector may have only limited
modernize airpower assets, including        Trends for April 1995 to March 1996.       application in Bosnia, where most of
the bomber force. This report as-                                                      the buried mines are of the low-metal



                                            Page 115                                            GAO/OIMC-97-1A Subject Index
variety. Although the Army claims          Thls report focuses on the Army's         installation will be relied on as the
that the AN-PSS-12 has performed           plans to reallocate depot maintenance     main source of housing and that
well in Bosnia, other sources raise        workloads from depots recommended         government quarters may be pro-
questions about the detector's abilities   for closure or realignment by the 1995    grammed when the communities
there. The Air Force recently cau-         Commission on Defense Base Realign-       cannot meet the military's need for
tioned its explosive ordnance techni-      ment and Closure. GAO reviewed the        acceptable and affordable family
cians in Bosnia that the ANIPSS-12 is      Army's plans to consolidate               housing. Also, government housing is
not sensitive enough to detect the         workloads at remaining military           provided for a small number of
low-metal mines that they may              depots and emerging plans to              personnel who live on an installation
encounter. In adclition, an Army report    privatize workloads in place or at        for reasons of military necessity. Thls
on U.S. operations in Somalia says         other private sector facilities to        report discusses whether (1) DOD's
that the detector could not find low-      determine the (1) impact on excess        policy of relying mainly on private
metal mines. In Bosnia, U.S. troops        depot capacity and operating costs at     housing to meet military family
have been able to pick routes that         the remaining defense depots, (2)         housing requirements is cost-effec-
avoid minefields or they use heavy         cost-effectiveness of planned             tive, (2) the military services are
equipment, such as vehicles equipped       privatization options, and (3) compli-    complying with this policy, and (3)
with rollers, to clear paths. The          ance with statutory requirements.         DOD's family housing policies result
resulting infrequent reliance on the                                                 in equitable treatment for all military
ANIPSS-12 helps explain why its            NSIAD-96-202, Sept. 18, 1996 (18          families.
shortcomings in testing may not have       pages). Navy Depot Maintenance:
been borne out in Bosnia.                  Cost and Savings Issues Related to        NSIAD-96-204BR, July 25, 1996 (36
                                           Privatizing-in-Place at the Louisville,   pages). Bosnia: Costs Are Exceecling
NSlAD-96-199, Sept. 26, 1996 (19           Kentucky, Depot.                          DOD's Estimate.
pages). Army Acquisition: Javelin Is
Not Ready for Multiyear Procurement.       The Defense Department (DOD) is           The costs of deploying U.S. troops in
                                           planning to reallocate depot mainte-      and around Bosnia as part of interna-
The Army is purchasing a new $4            nance workloads from depots recom-        tional peacekeeping operations
billion man portable, antiarmor            mended for closure or realignment by      spanning fiscal years 1996 and 1997
weapon system, known as the Javelin,       the 1995 Commission on Defense            could exceed the Defense
to replace its aging Dragon system.        Base Realignment and Closure. DOD         Department's (DOD) initial estimate
Javelin is a joint Army and Marine         is considering privatization-in-place     of $3 billion by more than $450
Corps program expected to strengthen       for several of these depots. The Navy     million, and further increases are
the infantry's ability to counter          notified Congress that it intends to      possible. DOD has so far deployed
advanced armor threats. In 1997, the       award contracts for the Louisville,       about 22,000 troops to Bosnia and
Army plans to award a three-year           Kentucky, workload using other than       surrouncling countries in an effort to
production contract and begin full-        competitive procedures. As a result,      end years of hostilities in the former
rate production. This report discusses     this report focuses on the Navy's         Yugoslavia. DOD's costs for fiscal
whether (1) the system meets criteria      plans to privatize in place its depot     year 1997 will likely exceed the
established for multiyear production       workload at Louisville, Kentucky.         current estimates and depend heavily
contracts, (2) the Army has ad-                                                      on upcoming decisions on force
equately tested the Javelin to deter-      NSIAD-96-203, Sept. 13, 1996 (46          requirements and redeployment.
mine its suitability for full-rate         pages). Military Family Housing:
production, and (3) the Army is using      Opportunities Exist to Reduce Costs       NSIAD-96-206, July 16, 1996 (14
sound economic judgment in purchas-        and Mitigate Inequities.                  pages). NASA Budget: Carryover
ing command launch units during                                                      Balances for Selected Programs.
limited production.                        The Defense Department (DOD)
                                           spends about $8 billion annually to       In response to concerns raised in an
NSlAD-96-201 , Sept. 18, 1996 (28          house members of the armed forces         oversight hearing, GAO reviewed the
pages). Army Depot Maintenance:            and their families, either by paying a    extent of carryover balances for the
Privatization Without Further              cash allowance to enable members to       Mission to Planet Earth and other
Downsizing increases Costly Excess         live in private-sector housing or by      NASA programs. Carryover balances
Capacity.                                  assigning farnilies to govemment-         consist of unobligated funds and
                                           owned or -leased quarters. DOD            uncosted obligations. Unobligated
                                           policy states that private housing in     balances represent the portion of its
                                           the neighborhoods around military         budget authority that NASA has not



GAO/OIMC-97-1A Subject Index               Page 116
obligated. Uncosted obligations           ued participation in the Bank is in the   engineering, test, and evaluation
represent the portion of its authority    U.S. interest. GAO assesses (1) the       (RDT&E) laboratories and centers
that NASA has obligated for goods and     Bank's role in enhancing the flow of      worldwide. These facilities employ a
services but for which it has not yet     international private investment          workforce of nearly ll5,000 person-
incurred costs. Carryover balances in     capital into developing countries, (2)    nel-95,000 civilian and 20,000
NASA's Human Space Flight and             the extent to which Bank projects         military. This report reviews the
Science, Aeronautics, and Technology      achieve their development objectives,     DeferlSe Department's (DOD) RDT&E
programs totaled $3.6 billion by the      (3) the Banks' progress in reforming      infrastructure. GAO (1) discusses
end of fiscal year 1995-an amount         its operations to improve effective-      previous studies on DOD's laboratory
equal to almost one-third of the          ness, and (4) the extent to which the     infrastructure to determine what steps
budget authority provided for these       Bank supports U.S. foreign policy         DOD has taken to implement earlier
programs in fIScal year 1995 that will    goals.                                    recommendations and (2) analyzes
be used to cover costs that will accrue                                             data on RDT&E infrastructure fund-
in fIScal year 1996 or beyond. indi-      NSIAD-96-220, Sept. 18, 1996 (22          ing, workforce composition, and
vidual programs carried over varying      pages). 1997 DOD Budget: Potential        operating costs. GAO also provides
amounts, ranging from the equivalent      Reductions to Operation and Mainte-       preliminary observations on lessons
of one month to 16 months of fiscal       nance Program.                            learned from successful consolida-
year 1995's new budget authority. The                                               tions that may apply to the federal
Mission to Planet Earth carried $695      This report evaluates the military        laboratory infrastructure.
million, or more than six months, of      services' and the Defense
budget authority into fiscal year 1996.   Department's (DOD) fIScal year 1997       NSIAD-96-222, Sept. 27, 1996 (35
GAO summarized this report in             operation and maintenance and             pages). Weapons of Mass Destruc-
testimony before Congress; see: NASA      budget requests, which total $79          tion: Status of the Cooperative Threat
Budget: Carryover Balances in Se-         billion. GAO's objective was to           Reduction Program.
lected Programs, by Thomas J. Schulz,     determine whether the operation and
Associate Director for Defense            maintenance accounts should be            Since 1992, the Defense Department's
Acquisitions Issues, before the           funded in the amounts requested.          cooperative threat reduction program
Subcommittee on Space and Aeronau-        GAO reviewed operation and mainte-        has sought to help the four newly
tics, House Committee on Science.         nance activities managed by the           independent states of Belarus,
GAOrr-NSIAD-96-207, July 18 (four         Army, the Navy, the Air Force, and        Kazakstan, Russia, and Ukraine
pages).                                   DOD. GAO also reviewed operation          control and reduce threats posed by
                                          and maintenance activities managed        weapons of mass destruction inher-
NSIAD-96-212, Sept. 26, 1996 (93          by U.S. Army, Europe; U.S. Force          ited from the former Soviet Union.
pages). World Bank: U.S. Interests        Command; Air Combat Command; and          This report evaluates (1) the draft
Supported, but Oversight Needed to        the Atlantic and Pacific Fleets. These    1996 multiyear cooperative threat
Help Ensure Improved Performance.         activities were selected for review       reduction program in terms of its
                                          because (1) operation and mainte-         scope, depiction of project status and
With the end of the Cold War, some        nance funding levels are increasing,      cost estimates, description of changes
political and economic analysts have      (2) ongoing and issued reports by         that occurred after the 1995 multiyear
questioned the underlying rationale       GAO and DOD audit agencies dis-           program plan, and release to Congress
for U.S. participation in multilateral    closed programmatic issues with           and (2) the progress, estimated costs,
institutions, such as the World Bank      operation and maintenance implica-        and potential impacts of the program's
The recent rapid increase in private      tions, or (3) congressional committees    efforts to help control nuclear weap-
investment in developing countries-       expressed interest.                       ons and materials, eliminate strategic
more than a threefold increase since                                                delivery vehicles, and destroy chemi-
1988-has raised questions about           NSIAD-96-221BR, Sept. 13, 1996 (39        cal weapons.
whether the Bank works to enhance         pages). Defense Acquisition Infra-
or inhibit this trend. Weaknesses in      structure: Changes in RDT&E Labora-       NSIAD-96-224, Sept. 25, 1996 (18
project effectiveness have raised         tories and Centers.                       pages). Wartime Medical Care: DOD
questions about the Bank's ability to                                               Is Addressing Capabllity Shortfalls,
spur economic development. Finally,       In fiscal year 1994, the Pentagon spent   but Challenges Remain.
the Bank has had difficulty demon-        more than $22 billion-about eight
strating the impact of reforms in-        percent of its total budget for fIScal    Operation Desert Storm revealed
tended to improve its effectiveness.      year 1994-through 55 military             many weaknesses in the medical
This report examines whether contin-      service research, development,            capabilities of U.S. armed forces.




                                          Page 117                                           GAO/OlMC-97-1ASubject Index
Later studies by GAO and the Defense        19 worded its judgments on foreign        U.S. government contracts, (2) how
Department (DOD) Inspector General          missile threats very differently than     Nr Force negotiation officials used
found shortcomings in DOD's ability         did the 1993 national intelligence        the Defense Contract Audit Agency's
to deliver adequate and timely medi-        estimate, even though the judgments       recommendation in negotiating the
cal support during wartime. This            in all three national intelligence        prime contract prices, and (3) if the
report examines whether efforts by          estimates were not inconsistent with      materials and subcontract costs
DOD and the military services to            each other. That is, although the         included in the prime contract prices
reassess and improve their medical          judgments were not synonymous,            were fair and reasonable. GAO also
capabilities have been properly             upon careful reading, they did not        reviewed the pricing of two selected
focused and coordinated to produce          contradict each other.                    subcontracts.
the most effective wartime medical
system. GAO reviews DOD's develop-          NSIAD-96-226, Sept. 19, 1996 (49          NSIAD-96-241BR, Sept. 24, 1996 (23
ment, management, and implementa-           pages). Defense Budget: Trends in         pages). Foreign Assistance: Status of
tion of its Medical Readiness Strategic     Reserve Components' Military Person-      USAlD's Reforms.
Plan and the military service's medi-       nel Compensation Accounts for 1990-
cal reengineering efforts. GAO also         97.                                       The U.S. Agency for International
examines DOD's ongoing project to                                                     Development (USAlD) has begun to
identify future wartime medical             The Defense Department's (DOD)            undertake reforms affecting the entire
system requirements.                        budget request for fiscal year 1997       agency, including organization,
                                            includes almost $70 billion for pay       management, and program operations.
NSIAD-96-225, Aug. 3D, 1996 (16             and allowances for active and reserve     USAlD's missions have largely reorga-
pages). Foreign Missile Threats:            military personnel, which represents      nized their activities around the
Analytic Soundness of Certain Na-           about 30 percent of DOD's total           agency's strategic objectives and are
tional Intelligence Estimates.              budget request. DOD estimates that in     reporting in a results-based format.
                                            200 1, pay and allowances will con-       According to USAlD officials, how-
This report evaluates national intelli-     tinue to represent about 30 percent of    ever, the fiscal year 1998 budget cycle
gence estimates prepared by the U.S.        the total budget. Because the military    will be the first test of the degree to
intelligence community on the threat        personnel accounts represent such a       which results are taken into account
to the United States posed by foreign       large share of the Pentagon's budget,     in making resource allocation deci-
missile systems. The main judgment          this report discusses (1) the various     sions. Further, personnel reforms are
of national intelligence estimate 95-19     pay categories included in the ac-        not as far along as other reforms and
(Emerging Missile Threats to North          counts, (2) the trends of those pay       may reflect long-standing difficulties
American During the Next 15 Year)-          categories, and (3) how changes in the    that USAlD has had in this area
"No country, other than the major           budget compared with changes in           Parallel to, and in support of, USAlD's
declared nuclear powers, will develop       service force levels. GAO also dis-       broad reform effort is development of
or otherwise acquire a ballistic            cusses the reasons for some of the        an integrated new management
missile in the next 15 years that could     service trends and differences among      system with worldwide access that is
threaten the contiguous 48 states or        the services and includes explana-        intended to consolidate a host of
Canada"-was worded with clear               tions.                                    existing systems. USAlD officials
certainty. GAO believes that this level                                               recognize that they face the challenge
of certainty is overstated. The esti-       NSIAD-96-232, Sept. 24, 1996 (25          of institutionalizing the gains that the
mate also had other shortcomings. It        pages). Contract Pricing: Pricing of F-   agency has made to ensure the long-
did not (I ) quantify the certainty level   16 Mid-Life Update Program Con-           term sustainability of refornlS. To
of nearly all of its key judgments, (2)     tracts.                                   accomplish this, USAlD needs to be
identify explicitly its critical assump-                                              able to show that it is managing
tions, and (3) develop alternative          The F-16 aircraft mid-life update         resources with greater efficiency and
futures. However, the estimate did          program is intended to develop and        transparency and show that it is
acknowledge dissenting views from           install upgrades to the F-16 fighter      achieving measurable results.
several agencies and also noted what        aircraft owned by Belgium, Denmark,
information the U.S. intelligence           and the Netherlands, thereby improv-      NS IADIRCE D-96-76BR, Mar. 27,
community does not know that bears          ing the planes' performance. This         1996 (22 pages). Terrorism and Drug
upon the foreign missile threat. The        report discusses (1) if the rates and     Trafficking: Threats and Roles of
1993 national intelligence estimates        factors used to price two selected        Explosives and Narcotics Detection
met more of the standards than 95-19        prime contracts were the same as          Technology.
did. National intelligence estimate 95-     those used to price contemporaneous



GAOIOIMC·97·1A Subje<t Index                Page 118
Even though conventional X-ray             stocks of this deadly material-which       Aviation security and drug interdic-
screening falls short in its ability to    are vulnerable to theft and diversion      tion depend on a complex and costly
reveal concealed narcotics and             because of antiquated security             mix of intelligence, procedures, and
explosives, the Federal Aviation           systems-got off to a slow start but        technologies. Since 1978, federal
Administration (FAA) and the U.S.          are now gaining momentum. Many             agencies have spent about $246
Customs Service have lagged in             independent states lack modern             million for research and development
introducing advanced technologies to       equipment to detect unauthorized           on explosives detection technologies
detect drugs and explosives smuggled       removal of highly enriched uranium         and nearly $100 million on narcotics
aboard commercial aircraft. The            and plutoniwn from nuclear facilities.     detection technologies. Most of this
intelligence community believes that       Seizures of nuclear material in Russia     spending has taken place since 1990,
the threat of terrorism within the         and Europe have heightened concerns        in response to congressional dh'ec-
United States has grown and that           about a possible black market for this     tives, and have been for technologies
commercial aircraft are likely to          material. The Defense Department           to screen checked baggage, trucks,
remain targets. According to the FBI,      (DOD) has obligated $59 million and        and containers. Difficult trade-ofCs
terrorist attacks could come from          spent about $4 million during fiscal       must be made when considering
groups that are hard to inftltrate and     years 1991-95 for security improve-        whether to use detection technologies
control. In January 1995, a plot to        ments in Russia, Ukraine, Kazakhstan,      for a given application-chief among
attack U.S. flights in Asia was discov-    and Belarus. Initially the program         them the extent to which intelligence-
ered. Narcotics trafficking is a con-      moved s lowly because Russian              gathering and procedures can substi-
tinuing problem. Although cocaine has      officials had refused access to their      tute for expensive technology. Some
been the main threat since 1985,           facilities, and DO D projects at facili-   technologies are very effective and
heroin is a growing concern. Traffick-     ties in Ukraine, Kazakstan, and            could be deployed today, but they are
ing is most active today along the         Belarus were just getting under way.       expensive, slow the flow of com-
southwest border of the United States.     The program gained momentum in             merce, and raise issues of worker
To counter these threats, FAA re-          January 1995 when U.S. and Russian         safety. Other technologies are more
cently certified an advanced auto-         officials agreed to upgrade nuclear        widely used but are less reliable,
mated explosive detection system, but      materials controls at five high-priority   while still others are in the develop-
has not required its deployment. The       facilities. The Energy Department          ment stage and may not be available
cost of buying and installing the          plans to request $400 million over         for years. Some countries have
equipment at the 75 busiest domestic       seven years to improve controls at         already deployed advanced explosive
airports could be as high as $2.2          nuclear facilities in the newly inde-      and narcotics detection equipment,
billion, according to preliminary FAA      pendent states. However, the ex-           and the United States may be able to
estimates. Customs has one truck X-        panded program faces uncertainties         learn from their experiences. The
ray system at the southwest border to      involving its overall costs and U.S.       Federal Aviation Administration
detect narcotics and plans to spend        ability to verify that the assistance is   estimates that use of the best avail-
$38 million to acquire others. Its plans   being used as intended. GAO summa-         able procedures and technologies to
for seaports and the use of mobile         rized this report in testimony before      beef up aviation security could cost as
systems have not been clearly de-          Congress; see; Nuclear Nonprolifera-       much as $6 billion during the next 10
fined. Other countries, including the      tion: U.S. Efforts to Help Newly           years---the equivalent of a $1.30
United Kingdom and France, are             Independent States Improve Their           surcharge on a one-way ticket.
already using advanced technologies        Nuclear Materials Controls, by Harold
to detect explosives and narcotics.        J. Johnson, Associate Director for         Testimony
                                           International Relations and Trade
NSIADIRCED-96-89, Mar. 8, 1996             Issues, before the Pernlanent Subcom-      T-NSIAD-96-78, Dec. 15, 1995 (13
(45 pages). Nuclear Nonproliferation:      mittee on Investigations, Senate           pages). Former Soviet Union: Assess-
Status of U.S. Efforts to Improve          Committee on Government Affairs.           ment of U.S. Bilateral Programs, by
Nuclear Material Controls in Newly         GAOfT-NSlAD-96-1l9, Mar. 13 (six           Jim Johnson, Associate Director,
Independent States.                        pages).                                    International Relations and Trade
                                                                                      Issues, before the House Committee
Over the years, the Soviet Union           NSIADIRCED-96-252 , Sept. 4, 1996          on International Relations.
produced about 1,200 metric tons of        (28 pages). Terrorism and Drug
highly enriched uraniunl and pluto-        Trafficking: Technologies for Detect-      Hampered at the outset by a lack of
nium. U.S. efforts to help the newly       ing Explosives and Narcotics.              coordination, U.S. aid to the fonner
independent states of the former                                                      Soviet Union is now better managed
Soviet Union better protect their                                                     and is achieving promising, although



                                           Page 119                                            GAO/OIMC-97-lA Subject Index
mixed, results in a variety of projects    gies that they can incorporate into      Congress in May 1995. In February
ranging from the promotion of eco-         domestically produced systems. In        1996, DOD updated the status of its
nomic refonns to the disposal of           this way, the countries can obtain       action plan. This testimony focuses on
nuclear weapons. This report provides      cutting~dge weapons systems              the following key issues presented in
infonnation on U.S. bilateral programs     without the expense of research and      the plan and discussed in the status
with the newly independent states of       development. The cutting-edge            update: (1) developing guidelines to
the fonner Soviet Union from fiscal        technologies not only provide superior   ensure that management fees pro-
year 1990 through December 1994 to         weapons systems for a country's use,     vided to the centers are based on need
help them make the transition to           but also make these products more        and detailed justification; (2) defining
democratic societies with market           marketable for export. This testimony    core work appropriate for the centers;
economies. GAO discusses (J) the           provides examples of several coun-       (3) establishing criteria for the
amount of funds obligated and spent;       tries involved in economic espionage     acceptance of work outside the core
(2) the amount of credits provided,        against the United States.               by the centers' parent corporation;
including subsidy costs; and (3) the                                                and (4) creating an independent
appropriation source and budget            T-NSIAD-96-116 , Mar. 6, 1996 (8         advisory committee to review DOD's
function for these funds. This infonna-    pages). Earth Observing System: Cost     management, use, and oversight of its
tion is categorized by agency, recipi-     and Research Issues, by Brad             centers.
ent country, and programmatic sector.      Hathaway, Associate Director,
                                           Defense Management Issues, before        T-NSIAD-96-122, Mar. 13, 1996 ( 15
T -NSIAD-96-85, Dec. 29, 1995 (7           the House Committee on Science.          pages). lnternational Trade: Imple-
pages). Travel of Government Offi-                                                  mentation Issues Concerning the
cials on Government Aircraft, by Mark      This testimony focuses on NASA's         World Trade Organization, by JayEtta
E. Gebicke, Director, Military Opera-      Earth Observing System, which will       Z. Hecker, Associate Director, lnterna-
tions and Capabilities Issues, before      use a network of satellites to collect   tional Relations and Trade Issues,
the Government Management, lnfor-          and distribute climate data Teams of     before the Trade Subcommittee,
mation and Technology Subcommit-           scientists will convert the data into    House Committee on Ways and
tee, House Committee on Government         useful infonnation and conduct           Means.
Refonn and Oversight.                      research using it. GAO discusses (I)
                                           its previous work on the investment      This testimony provides preliminary
This testimony discusses two recent        that will be required over the life of   observations on the implementation
GAO reports (GAOINSIAD-95-144,             the system and (2) its ongoing work      of the Uruguay Round agreements and
July 1995, and GAOINSlAD-95-168BR,         on NASA's strategy for maximizing        on the operations of the new World
June 1995) on (1) the White House          the scientific return on that invest-    Trade Organization. GAO discusses
staffs use of military helicopters and     ment by ensuring that an adequate        the implementation of the agree-
(2) government aircraft used to fly        research community will be available     ments, specific issues that are of
senior-level military and civilian         to analyze the large amount of data      particular concern to U.S.
officials. This testimony highlights the   expected to be generated by the          decisionmakers, and future World
key findings from these reports and        system.                                  Trade Organization endeavors.
then discusses each finding in detail.
                                           T-NSIAD-96-117, Mar. 5, 1996 (12         T-NSIAD-96-123, Mar. 12, 1996 (9
T-NSIAD-96-1l4, Feb. 28, 1996 (5           pages). Federally Funded R&D             pages). Chemical and Biological
pages). Economic Espionage: lnfor-         Centers: Observations on DOD             Defense: Emphasis Remains lnsuffi-
mation on Threat From U.S. Allies, by      Actions To Improve Management, by        cient to Resolve Continuing Problems,
David E. Cooper, Associate Director,       David E. Cooper, Associate Director,     by Mark E. Gebicke, Director, Military
Defense Acquisitions Issues, before        Defense Acquisition Issues, before the   Operations and Capabilities Issues,
the Senate Select Committee on             House Committee on National Secu-        before the Military Research and
Intelligence.                              rity,                                    Development Subcommittee, House
                                                                                    Committee on National Security.
U.S. intelligence agencies report a        The Defense Department (DOD)
continuing espionage threat from           established an internal advisory group   U.S. troops remain highly vulnerable
some close U.S. allies who actively        to review, and recommend improve-        to attack from biological and chemical
seek classified and technical infonna-     ments to, DOD's management of its        agents because the Defense Depart-
tion from the United States through        federally funded research and devel-     ment has yet to address many short-
unauthorized means. Often these            opment centers. Its work resulted in     comings identified during the Persian
countries seek U.S. defense technolo-      an action plan, which was provided to    Gulf War, including inadequate



GAO/OIMC-97-1A Subject Index               Page 120
training, a lack of decontamination       would require legislation authorizing a    public and the private sectors, includ-
kits and other equipment, and a           seven-year multiyear contract. The         ing ongoing privatization initiatives,
shortage of vaccine stocks. Problems      short time frame for congressional         such as privatization-in-place. GAO
in chemical and biological defense are    action-McDonnell's offer expires on        discusses (1) DOD's depot mainte-
likely to continue unless the Pentagon    June 1, 1996-also places an unusual        nance management model in the post-
designates this area a higher priority.   burden on decisionmakers. in GAO's         Cold War era, (2) the extent to which
The Defense Department has spent          view, the proposed C-17 multiyear          DOD's proposed depot maintenance
less than one percent of its budget on    contract presents the Air Force with       policy is consistent with congres-
chemical and biological warfare           the opportunity for savings, but the       sional direction and guidance, (3) the
defense, and from 1992 to 1995,           amounts involved are substantially         savings that DOD is anticipating from
funding in real terms feU by 30           less than the $896 million that has        privatization of depot maintenance
percent.                                  been publicized. Further, these            activities, and (4) the cost-effective-
                                          potential savings are not without both     ness of privatization-in-place as an
T-NSIAD-96-130, Mar. 21, 1996 (10         costs and risk. GAO believes that          alternative to closing depots.
pages). DOD Reserve Components:           Congress should allow the govern-
Issues Pertaining to Readiness, by        ment to have until the fIscal year 1999    T-NSIAD-96-148, Apr. 17, 1996 (21
Richard Davis, Director, National         authorization and appropriation cycle      pages). Defense Depot Maintenance:
Security Analysis, before the Readi-      to assess the contractor's ability to      Privatization and the Debate Over the
ness Subcommittee, Senate Commit-         produce the aircraft at the required       Public-Private Mix, by David R.
tee on Armed Services.                    rate. If the contractor's performance      Warren, Director, Defense Manage-
                                          is inadequate, the government could        ment Issues, before the Readiness
This testimony makes three main           revert to an annual buy contract           Subcommittee, Senate Committee on
points. First, the Army National Guard    without renegotiating the not-to-          Armed Services.
has considerable excess combat            exceed option prices for the remain-
forces at the same time that the Army     ing lots. Also, Ute Defense Department     The Pentagon's policy of shifting
has a substantial need for combat         should ensure that the contractor is       depot maintenance workloads to the
support units. Second, the readiness      ready to move to the higher produc-        private sector is unlikely to generate
of some Army National Guard combat        tion rate.                                 expected savings and could worsen
brigades for early deployment to                                                     excess capacity problems at
support the defense strategy is highly    T-NSIAD-96-146, Apr. 16, 1996 (21          underused repair facilities. Mean-
uncertain. As a result, GAO questions     pages). Defense Depot Maintenance:         while, the Defense Department (DOD)
whether the roles and the missions of     Privatization and the Debate Over the      could save ,$182 million annually by
the Army Guard need to be modified.       Public-Private Mix, by David R.            closing rather than privatizing-in-place
Third, the Army National Guard has        Warren, Director, Defense Manage-          the Sacramento and San Antonio Air
forces assigned to the continental air    ment Issues, before the Military           Logistics Centers. This testimony is a
defense. This dedicated force is not      Readiness Subcommirtee, House              preliminary analysis of DOD's March
needed today. Considerable money          Committee on National Security.            1996 report, mandated by Congress,
could be available for other critical                                                on the military's comprehensive depot
needs if the dedicated forces were        The Pentagon's policy of shifting          maintenance policy. GAO also ad-
eliminated and the mission was            depot maintenance workloads to the         dresses the allocation of the depot
assigned to existing forces.              private sector is unlikely to generate     maintenance workload between the
                                          expected savings and could worsen          public and the private sectors, includ-
T-NSIAD-96-137, Mar. 28, 1996 (8          excess capacity problems at                ing ongoing privatization initiatives,
pages). C-17 Aircraft: Comments on        underused repair facilities. Mean-         such as privatization-in-place. GAO
Air Force Request for Approval of         while, the Defense Department (DOD)        discusses (1) DOD's depot mainte-
Multiyear Procurement Authority, by       could save $182 million annually by        nance management model in the post-
Louis J. Rodrigues, Director, Defense     closing rather than privatizing-in-place   Cold War era, (2) the extent to which
Acquisitions Issues, before the           the Sacramento and San Antonio Air         DOD's proposed depot maintenance
Seapower Subcommirtee, Senate             Logistics Centers. This testimony is a     policy is consistent with congres-
Committee on Armed Services.              preliminary analysis of DOD's March        sional direction and guidance, (3) the
                                          1996 report, mandated by Congress,         savings that DOD is anticipating from
This testimony discusses the pro-         on the military's comprehensive depot      privatization of depot maintenance
posed multiyear procurement of the        maintenance policy. GAO also ad-           activities, and (4) the cost-effective-
C-17 aircraft. This is a particularly     dresses the allocation of the depot        ness of privatization-in-place as an
critical decision because this proposal   maintenance workload between the           alternative to closing depots.




                                          Page 121                                            GAOIOIMC-97-JA Subject Index
T-NSIAD-96-151, Apr. 24, 1996 (21           before the Presidential Advisory          Systems Agency and the White House
pages). Energy Department Trade             Committee on Gulf War Veterans'           Comm unications Agency have taken
Missions: Authority, Results, and           Illnesses.                                steps to overcome these shortcom-
Management Issues, by JayEtta Z.                                                      ings. Because these long-standing
Hecker, Associate Director, Interna-        U.s. troops remain highly vulnerable      problems cannot be solved immedi-
tional Relations and Trade issues,          to attack from biological and chemical    ately and areas of disagreement
before the Oversight and Investiga-         agents because the Defense Depart-        continue, GAO urges continued
tions Subcommittee, House Commit-           ment (DOD) has yet to address many        congressional monitoring.
tee on Commerce.                            shortcomings identified during the
                                            Persian Gulf War, including inad-         T-NSIAD-96-171, May 23,1996 (10
The Energy Department (DOE)                 equate training, a lack of decontami-     pages). Drug Control: Observations on
conducts trade missions to help             nation kits and other equipment, and a    U.S. Interdiction in the Caribbean, by
develop energy markets abroad. DOE          shortage of vaccine stocks. DOD has       Jess T. Ford, Associate Director,
has reported the results of these trips     spent less than one percent of its        International Relations and Trade
on the basis of the value of the            budget on chemical and biological         Issues, before the National Security,
business agreements signed The              warfare defense, and during 1992-         International Affairs, and Criminal
agency cited nearly $20 billion in          1995, funding in real terms fell by 30    Justice Subcommittee, House Com-
potential and finalized agreements          percent. Problems in chemical and         mittee on Government Reform and
signed during the Energy Secretary's        biological defense are likely to          Oversight.
four trade missions and follow-up           continue unless DOD designates this
trips, and it later reported more than      area a higher priority.                   Budget reductions and a lack of
$2 billion in finalized deals. In review-                                             resources among island nations have
ing the finalized deals, GAO found          T-NSIAD-96-168, May 16, 1996 (7           hampered efforts to intercept drug
that in some cases, U.S. exports            pages). Defense Communications:           traffickers in the Caribbean-the
appeared to be substantially less than      White House Communications Agency         transit route for nearly one-third of
50 percent of the projects' total           Activities and Funding, by Henry L.       the cocaine now entering the United
estimated exports. Company repre-           Hinton, Jr., Assistant Comptroller        States. As a result, cocaine seizures in
sentatives that participated in the         General, before the National Security,    the Caribbean fell from a peak of
missions generally supported the            International Affairs, and Criminal       70,000 kilograms in 1992 to 37,000
Secretary's efforts and the resulting       Justice Subcommittee, House Com-          kilograms in 1995. In recent years,
intangible benefits, such as greater        mittee on Government Reform and           drug traffickers in the Caribbean have
credibility, access, and acceleration of    Oversight.                                increasingly relied on ships rather
projects. Several company officials                                                   than planes to transport drugs.
said that their business agreements         Lax oversight of the White House          Traffickers are also using sophisti-
would have been completed without           Communications Agency, which              cated technologies, such as global
DOE involvement. In addition, several       provides the President with world-        positioning systems, to counter U.S.
management weaknesses plague the            wide communications support, has          efforts to monitor their activities.
DOE trade mission program. DOE              resulted in budgeting problems and        Although most Caribbean nations
process for acquiring aircraft; recover-    questionable procurements, including      have cooperated in fighting drug
ing e>'l'enses from, and approving          the acquisition of nonstandard,           trafficking, a lack of finances and
travel for, nonfederal travelers; and       redundant telephone and computer          effective law enforcement operations
documenting U.S. embassy expenses           equipment that did not interface and      have stymied their efforts. Corruption
was weak. New procedures have been          was costly to maintain. This testi-       has also been a concern. U.S. budget
in.t roduced to correct these shortcom-     mony discusses (1) GAO's 1994 effort      cuts have undermined the ability of
ings, but they have yet to be fully         to assess activities and funding of the   the Defense Department and law
tested in practice.                         agency and (2) events that led to the     enforcement agencies to track and
                                            separate review and reports by the        intercept drug traffickers. Funding for
T-NSIAD-96-154, May 1, 1996 (9              Defense Department (DOD) Inspector        drug interdiction declined from $1
pages). Chemical and Biological             General. In GAO's view, the Inspector     billion in fiscal year 1992 to $569
Defense: Emphasis Remains Insuffi-          General's work disclosed serious          million in fiscal year 1995. The
cient to Resolve Continuing Problems,       management issues that warrant the        executive branch has yet to develop a
by Mark E. Gebicke, Director, Military      attention of top management at both       regional plan to implement the U.S.
Operations and Capabilities Issues,         the White House and the Pentagon.         cocaine strategy in the transit zone,
                                            The Inspector General's staff told
                                            GAO that the Defense lnformation



GAO/OIMC-97-lA Subject Index                Page 122
fully staff interagency organizations,    strategy by the end of the year.          Despite shrinking defense budgets
or resolve issues on intelligence         Following through on these efforts is     and the diminished threat posed since
sharing.                                  critical to combatting drug trafficking   the collapse of the Soviet Union, the
                                          in Mexico.                                Defense Department (DOD) continues
T-NSIAD-96-182, June 12, 1996 (8                                                    to add new planes to its fleet of
pages). Drug Control: Observations on     T-NSIAD-96-195 , June 27, 1996 (6         combat aircraft without having
Counternarcotics Efforts in Mexico,       pages). State Department: Millions of     assessed its existing capabilities or
by Bel\iamin F. Nelson, Director,         Dollars Could Be Generated by Selling     the areas that would benefit most
International Relations and Trade         Unneeded Overseas Real Estate, by         from improvements in air power. DOD
Issues, before the National Security,     Bel\iamin F. Nelson, Director, interna-   needs to seek the greatest value in its
International Affairs, and Criminal       tional Relations and Trade Issues,        investment given the projections for
Justice Subcommittee, House Com-          before the International Operations       future defense spending. The question
mittee on Goverrunent Reform and          and Human Rights Subcommittee,            is whether, in the post-Cold War era,
Oversight.                                House Committee on International          the United States needs, or can afford,
                                          Relations.                                the current levels of overlap in air
Hampered by declining U.S. funding,                                                 power capabilities. DOD requires
staff cutbacks, and corruption among      The State Department owns millions        better information to decide how to
key Mexican institutions, drug inter-     of dollars worth of overseas proper-      prioritize competing programs,
diction efforts in Mexico have failed     ties that are unneeded or too expen-      whether programmed investments
to stem the flow of illegal drugs         sive to maintain. Proper management       should continue to be funded, and
reaching the United States. Mexico        of State's overseas property could        whether new investments should be
remains the primary tranSit route for     generate considerable revenue for         made.
cocaine, heroin, marijuana, and           higher priority uses. GAO recom-
methamphetamine smuggled into this        mends that State convene an indepen-      T-NSIAD-96-207, July 18, 1996 ( 18
country. U.S. narcotics activities in     dent panel to review and suggest the      pages). NASA Budget: Carryover
Mexico and the tranSit zone have          sale of excess property. In GAO's         Balances in Selected Programs, by
declined since 1992. U.S. funding for     view, such a panel could help reduce      Thomas J. Schulz, Associate Director,
counternarcotics efforts in the tranSit   the current property inventory and        Defense Acquisitions Issues, before
zone and Mexico fell from $1 billion in   ensure proper management in the           the Space and Aeronautics Subcom-
fiscal year 1992 to $570 million in       future. Further, to expeditiously         mittee, House Committee on Science.
ftscal year 1995. Moreover, since 1992,   resolve disagreements between the
direct U.s. assistance to Mexico has      Office of Foreign Buildings Opera-        In response to concerns raised in an
been negligible because of Mexico's       tions (FBO) and the embassies, GAO        oversight hearing, GAO reviewed the
1993 policy of refusing most U.S.         recommends that State prepare             extent of carryover balances for the
counternarcotics assistance. Staffmg      annual reports identifying all excess     Mission to Planet Earth and other
reductions in the State Department's      properties whose sale FBO and the         NASA programs. Carryover balances
Narcotics Affairs Section at the U.S.     embassies cannot agree on. GAO also       consist of unobligated funds and
Embassy in Mexico City have limited       suggests that State improve its           uncosted obligations. Unobligated
monitoring of earlier U.S. assistance,    accounting and reporting on the use of    balances represent the portion of its
mainly helicopters and spare parts.       sales proceeds.                           budget authority that NASA has not
Since GAO's June 1995 testimony                                                     obligated. Uncosted obligations
before Congress (GAOrr-NSlAI)..95-        T-NSIAD-96-196, June 27,1996 (17          represent the portion of its authority
182), the U.S. embassy has elevated       pages). Combat Air Power: Joint           that NASA has obligated for goods and
drug control issues in importance and     Mission Assessments Needed Before         services but for which it has not yet
has developed a drug control operat-      Making Program and Budget Deci-           incurred costs. Carryover balances in
ing plan with measurable goals; the       sions, by Richard Davis, Director,        NASA's Human Space Flight and
Mexican government has indicated a        National Security Analysis, before the    Science, Aeronautics, and Technology
willingness to develop a mutual           Military Research and Development         programs totaled $3.6 billion by the
counternarcotics assistance program       Subcommittee, House Committee on          end of ftscal year 1995-an amount
and has taken action on important law     National Security, and Military           equal to almost one-third of the
enforcement and money laundering          Procurement Subcommittee, House           budget authority provided for these
legislation; and the United States and    Committee on National Security.           programs in fIScal year 1995 that will
Mexico have created a framework for                                                 be used to cover costs that will accrue
greater cooperation and are expected                                                in fIScal year 1996 or beyond. indi-
to develop a joint counternarcotics                                                 vidual programs carried over varying




                                          Page 123                                           GAO/OIMC-97-1ASobjectlndex
amounts, ranging from the equivalent       orbiting laboratory used to conduct       stop shops," called U.S. E>..llort
of one month to 16 months of fiscal        scientific research under weightless      Assistance Centers. These shops are
year 1995's new budget authority, The      conditions. NASA estimates its share      intended to provide exporters with
Mission to Planet Earth carried $695       of the costs to build the space station   information on all U.S. government
million, or more than six months, of       at $17.4 billion. The space station is    export promotion and export fmance
budget authority into fiscal year 1996.    now scheduled to be completed by          services, help exporters identify
                                           2002. As of April 1996, the prime         which federal programs may be of
T -NSIAD-96-208, July 30, 1996 (8          contract for the space station was        greatest assistance, and help export-
pages). DOD Bulk Fuel: Budgeting for       nearly 590 million over cost and about    ers contact those federal programs.
Bulk Fuel and Other Operation and          $88 million behind schedule. Overall,     GAO discusses the benefits realized at
Maintenance Activities, by Sharon          the prime contract is 45-percent          the first four pilot centers, located in
Cekala, Associate Director, Military       complete and these variances are          Baltimore, Chicago, Los Angeles, and
Operations and Capabilities Issues,        within planned funding levels. How-       Miami, as well as opportunities to
before the National Security, Interna-     ever, many cost threats remain, and       improve their operations.
tional Affairs, and Crinlinal Justice      fmancial reserves needed for unex-
Subcommittee, House Committee on           pected contingencies remain limited       T-NSIAD-96-214, July 29, 1996 (11
Government Reform and Oversight.           during the next several years. If         pages). International Trade: Chal-
                                           available resources prove inadequate,     lenges and Opportunities for U.S.
The bulk fuel issues discussed in this     program managers either will be           Businesses in China, by JayEtta Z.
testimony may be symptomatic of a          forced to exceed the annual funding       Hecker, Associate Director, interna-
larger issue involving how the military    limitation or will have to defer or       tional Relations and Trade Issues,
services estimate requirements for         rephase other activities, potentially     before the House Committee on
operation and maintenance activities.      delaying the space station's schedule     Banking and Financial Services.
Past GAO work has shown that the           and increasing its overall cost. NASA
Defense Department repeatedly              has tried to ensure that the prime        After 15 years of economic reform,
estimates that it needs more money         development contractors and its           the Chinese economy has become one
than it obligates for some operation       major subcontractors implement            of the fastest-growing in the world.
and maintenance activities. This           effective performance measurement         However, although China has moved
testimony, which draws on the              systems for managing their contrac-       toward a quasi-market system,
fmdings of a March 1996 report (GAOl       tors, but a complete performance          significant trade barriers persist. This
NSlAD-96-96), addresses (1 ) the           measurement system is still not in        testimony discusses (1) China as a
military services' use of operation and    place. Also, NASA has made slower         potential market for U.S. businesses,
maintenance funds and their latitude       progress implementing effective           highlighting sectors in which eco-
in obligating the money, (2) specific      performance measurement systems           nomic expansion will require foreign
overestimating of funds needed for         on its contractors for developing         expertise and equipment; (2) chal-
bulk fuel, and (3) bulk fuel as one        ground-based and on-orbit capabilities    lenges U.S. businesses face in gaining
example of the services' overestimat-      for using and operating the space         market access to China, as well as the
ing their needs for some activities        station.                                  concerns of some firms now operating
within the operation and maintenance                                                 there; and (3) World Bank efforts to
account.                                   T-NSIAD-96-213, July 25, 1996 (11         help Chinese commercial standards
                                           pages). U.S. Export Assistance            meet international norms, with special
T-NSIAD-96-210, July 24, 1996 (4           Centers: Customer Service Enhanced,       emphasis on the importance of
pages). Space Station: Cost Control        But Potential to Improve Operations       refornling China's banking and
Difficulties Continue, by Thomas J.        Exists, by JayEtta Z. Hecker, Associ-     financial services sector.
Schulz, Associate Director, Defense        ate Director, International Relations
Acquisitions Issues, before the            and Trade Issues, before the Procure-     T-NSIAD-96-217, July 31, 1996 (20
Science, Technology, and Space             ment, Exports, and Business Opportu-      pages). International Relations: Food
Subcommittee, Senate Committee on          nities Subcommittee, House Commit-        Security in Africa, by Jim Johnson,
Commerce, Science and Transporta-          tee on Small Business.                    Associate Director, International
tion.                                                                                Relations and Trade Issues, before the
                                           This testimony discusses efforts by       African Affairs Subcommittee, Senate
The international space station, a joint   the Department of Commerce, the           Committee on Foreign Relations.
venture involving NASA, Japan,             U. S. Export-Import Bank, and the
Canada, the European Space Agency,         Small Business Administration to
and Russia, will be a permanently          create a nationwide network of ·one-



GAO/OlMC-97-1A Subject Index               Page 124
Food security exists when people           progress by NASA, Congress could          east asia, stemnting the flow of heroin
have physical and economic access to       consider establishing an independent      will be difficult because of a lack of a
enough food so that their dietary          process to facilitate closure and         meaningful U.S. program in Burma,
needs are met and they can lead            consolidation of NASA facilities.         the lack of Burmese government
productive and healthy lives. Food                                                   commitment to drug control efforts,
security includes several dimensiOns,      T-NSIAD-96-239, Sept. 12, 1996 (8         and ineffective U.N. drug control
including availability (when enough        pages). Drug Control: Observations on     efforts within Bunna The United
supplies of food of appropriate quality    Countemarcotics Activities in Mexico,     States increasingly relies on interna-
are consistently avajjable to all          by Jess T. Ford, Associate Director,      tional organizations, such as the
persons); access (when households          International Relations and Trade         United Nations, in countries such as
have adequate resources to buy foods       Issues, before the Coast Guard and        Burma where the United States faces
that are part of a nutritious diet); and   Maritime TrarlSportation Subcommit-       significant obstacles in providing
utilization (the proper biological uses    tee, House Committee on Transporta-       traditional bilateral counternarcotics
of food through adequate diet, water,      tion and Infrastructure, and Senate       assistance. The United States has
sanitation, and health care). This         International Narcotics Control           supported U.N. drug control projects
testimony discusses (1) the current        Caucus.                                   in Burma, but these efforts have been
status and future outlook for world                                                  unsuccessful in reducing opium
food security in general, (2) Africa's     This testimony, which is based on a       production because of the small scope
food security dilemma in particular,       June 1996 report (GAOINSIAD-96-           of the projects, lack of support from
(3) U.S. food aid and food aid pro-        163), focuses on counternarcotics         the Bunnese government, and inad-
grams, and (4) the World Food              efforts in Mexico. GAO discusses (1)      equate planning.
Summit scheduled for November              the nature of the drug trafficking
1996.                                      threat from Mexico, (2) Mexican           T-NSIAD-96-243, Sept. 27, 1996 (19
                                           efforts to counter drug-trafficking       pages). World Trade Organization:
T-NSIAD-96-238, Sept. 11, 1996 (5          activities, (3) U.S. strategy and         Status of Issues to Be Considered at
pages). NASA Facilities: Challenges to     programs intended to stem the flow of     Singapore Ministerial Meeting, by
Achieving Reductions and Efficien-         illegal drugs through Mexico, and (4)     JayEtta Z. Hecker, Associate Director,
cies, by Thomas J. Schulz, Associate       recent initiatives by the United States   International Relations and Trade
Director, Defense Acquisitions Issues,     and Mexico to beef up                     issues, before the Trade Subcommit-
before the National Security, interna-     counternarcotics activities.              tee, House Committee on Ways and
tional Affairs, and Criminal Justice                                                 Means.
Subcommittee, House Committee on           T-NSIAD-96-240, Sept. 19, 1996 (11
Government Refonn and Oversight.           pages). Drug Control: U.s. Heroin         The World Trade Organization (WTO)
                                           Control Efforts in Southeast Asia, by     is a multilateral organization that
Despite some progress in reducing its      Jess T. Ford, Associate Director,         serves as a forum for international
infrastructure, NASA faces fonnidable      International Relations and Trade         trade negotiations and oversees the
challenges to successfully reaching its    Issues, before the National Security,     administration of the Uruguay Round
budget goals through fIScal year 2000.     International Affairs, and Criminal       Agreements. This testimony provides
Ultimately, if NASA cannot find            Justice Subcommittee, House Com-          an overview of the issues to be raised
enough infrastructure cost reductions      mittee on Government Refonn and           at the upcoming Singapore ministerial
to meet these goals, the agency will       Oversight.                                meeting. GAO also discusses the
likely have to once again acijust its                                                status of (1) general implementation
programs-stretching out, reducing          Heroin use poses a growing threat to      issues, (2) issues related to WTO
the scope, terminating current efforts,    the United States. In recent years, the   agreement on textiles and clothing,
and postponing new initiatives. Even       number of heroin users in this country    (3) implementation of the agriculture
with NASA management's commit-             has increased, the purity level of        agreements, (4) ongoing negotiations
ment to meeting goals without making       heroin on the street is significantly     involving trade in services and market
such changes, the environment              higher, and the number of heroin-         access, (5) new issues that may be
confronting the agency will not allow      related hospital emergency room           taken up by the WTO in Singapore,
it to readily overcome the many            episodes has soared. The majority of      and (5) new member accessions to the
obstacles it faces. GAO believes that      heroin used in the United States          WTO.
NASA should submit a plan to Con-          originates in Southeast Asia, most of
gress on how it will meet the fIScal       which is produced in Burma Although       T-NSIAD-96-245, Sept 30, 1996 (5
year 2000 infrastructure targets. On       the U.S. heroin strategy calls for a      pages). Nuclear Weapons: Russia's
the basis of that plan and any further     regional approach focused on South-       Request for the Export of U.S. Com-



                                           Page 125                                           GAO/OIMC-97-1A Subject Index
puters for Stockpile Maintenance, by     moved slowly because Russian               fund DOE's cleanup. GAO discusses
Jim Johnson, Associate Director,         officials had refused access to their      (1) DOD's use of relative risk as a
International Relations and Trade        facilities, and DOD projects at facili-    major factor in ranking individual
Issues, before the Military Procure-     ties in Ukraine, Kazakhstan, and           cleanup sites and (2) how DOD
ment Subcommittee, House Commit-         Belarus were just getting under way.       priorities, plans, and budgets for its
tee on National Security.                The program gained momentum in             environmental compliance program.
                                         Januaty 1995 when U.S. and Russian
This statement for the record provides   officials agreed to upgrade nuclear        T-RCEDINSIAD-96-237, Aug. I, 1996
information on proposed exports of       materials controls at five high-priority   (13 pages). Aviation Security: Immedi-
U.S. high performance computers to       facilities. The Energy Department          ate Action Needed to Improve Secu-
Russian nuclear laboratories. GAO        plans to request $400 million over         rity, by Keith O. Fultz, Assistant
discusses the policies affecting         seven years to improve controls at         Comptroller General, before the
cooperation between the United           nuclear facilities in the newly inde-      Senate Committee on Commerce,
States and Russia on nuclear warhead     pendent states. However, the ex-           Science and Transportation.
safety and security under a Compre-      panded program faces uncertainties
hensive Test Ban Treaty and Russian      involving its overall costs and U.s.       The 1988 terrorist bombing of Pan
officials' requests for access to U.S.   ability to verify that the assistance is   Am flight 103, which killed 270
high performance computer exports        being used as intended.                    people, and the more recent, but as
to conduct work under this treaty.                                                  yet unexplained, explosion aboard
                                         T-RCEDINSIAD-96-127, Mar. 21,              TWA flight 800 have shaken the
T-NSIADIRCED-96-118, Mar. 13,            1996 (17 pages). Environmental             public's confidence in the safety and
1996 (4 pages). Nuclear Nonprolifera-    Protection: Issues Facing the Energy       the security of air travel. GAO testi-
tion: U.S. Efforts to Help Newly         and Defense Environmental Manage-          fied that the threat of terrorism
Independent States Improve Their         ment Programs, by Victor S.                against the United States has in-
Nuclear Material Controls, by Jim        Rezendes, Director, Energy, Re-            creased and that aviation is and will
Johnson, Associate Director, interna-    sources, and Science Issues, before        remain an attractive target for terror-
tional Relations and Trade Issues,       the Military Procurement Subcommit-        ists. Although the Federal Aviation
before the Permanent Subcommittee        tee, House Committee on National           Administration (FAA) has mandated
on Investigations, Senate Committee      Security, and Military Readiness           additional security procedures as the
on Governmental Affairs.                 Subcommittee, House Committee on           threat of terrorism has changed,
                                         National Security.                         domestic and international aviation
Over the years, the Soviet Union                                                    systems remain vulnerable. For
produced about 1,200 merric tons of      The Energy Department (DOE) has            example, conventional X-ray screen-
highly enriched uranium and pluto-       rried in recent years to make its          ing of checked baggage has limita-
nium. U.S. efforts to help the newly     nuclear weapons complex cleanup            tions and offers little protection
independent states of the former         more cost effective. Similarly, cleanup    against moderately sophisticated
Soviet Union better protect their        costs have been an issue at the            bombs. Explosive detection devices
stacks of this deadly material-which     Defense Department (DOD), but the          are commercially available for
are vulnerable to theft and diversion    cleanup effort is part of a larger         checked and carry-on luggage and
because of antiquated security           attempt to control the cost of environ-    could improve security, but all the
systems-got off to a slow start but      mental compliance now, while               devices have shortcomings. Some of
are now gaining momentum. Many           minimizing contamination and related       the devices are already in use in
independent states lack modem            costs in the future. At DOD, environ-      foreign counrries. Other devices are in
equipment to detect unauthorized         mental compliance activities have          various stages of development. A mix
removal of highiy enriched uranium       overtaken cleanup as the major             of technology and procedures will
and plutonium from nuclear facilities.   annual cost. With regard to DOE's          likely be needed to improve security.
Seizures of nuclear material in Russia   cleanup effort, this testimony dis-        FAA estimates that the cost of intro-
and Europe have heightened concerns      cusses ( 1) how the administration of      ducing new technology and other
about a possible black market for this   basic laws governing cleanup of the        methods to counteract terrorism, such
material. The Defense Department         weapons complex affects costs, (2)         as targeting for additional security
(DOD) has obligated $59 million and      how to cut DOE's costs, (3) which          checks those passengers who meet
spent about $4 million during fiscal     issues Congress should consider            profiles associated with terrorist
years 1991-95 for security improve-      regarding DOE privatization of its         groups, could cost as much as $6
ments in Russia, Ukraine, Kazakhstan,    cleanup, and (4) how excess                billion over 10 years. To improve
and Belarus. Initially, the program      carryover balances could be used to        security, Congress, FAA, the intelli-



GAO/OIMC-97-1A Subject Index             Page 126
gence agencies, and the aviation            on measures that need to be taken to
industry must agree on the steps to         protect the flying public from terror-
take to counter terrorism and how to        ists and how technology can improve
pay for the new security measures.          aviation safety. GAO discusses ( 1) the
                                            aviation security system and its
T-RCEDINSIAD-96-251 , Sept. 11,             vulnerabilities, (2) the availability and
1996 (14 pages). Aviation Security:         limitations of explosives detection
Urgent lssues Need to Be Addressed,         technology and other methods to
by Keith O. Fultz, Assistant Comptrol-      counter the threat, and (3) efforts
ler General, before the Aviation            under way to bolster aviation security.
Subcommittee, House Committee on            GAO also discusses the September
Transportation and Infrastructure.          1996 recommendations from the
                                            Presidential Commission on Aviation
The 1988 terrorist bombing of Pan Am        Security and Terrorism.
flight 103, which killed 270 people,
and the more recent, and as yet
unexplained, explosion aboard TWA
flight 800 have shaken public confi-
dence in the safety and security of air
travel The threat of terrorism against
the United States has increased, and
aviation remains an attractive target
for terrorists. This testimony focuses
on measures that need to be taken to
protect the flying public from terror-
ists and how technology can improve
aviation security. GAO discusses (1)
the aviation security system and its
vulnerabilities, (2) the availability and
limitations of explosives detection
technology and other methods to
counter the threat, and (3) efforts
under way to bolster aviation security.
GAO also discusses the September
1996 recommendations from the
Presidential Commission on Aviation
Security and Terrorism.

T -RCEDINSIAD-96-262, Sept. 19,
1996 (17 pages). Aviation Security:
Technology's Role in Addressing
Vulnerabilities, by Keith O. Fultz,
Assistant Comptroller General, before
the House Committee on Science.

The 1988 terrorist bombing of Pan Am
Flight 103, which killed 270 people,
and the more recent, and as yet
unexplained, explosion aboard TWA
flight 800 have shaken public conf.-
dence in the safety and security of air
travel. The threat of terrorism against
the United States has increased, and
aviation remains an attractive target
for terrorists. This testimony focuses




                                            Pa,.   127                                  GAO/OIMC-97-lA Subject Index
OCG                                      many improvements to government           T-OCG-96-4, May 23, 1996 (5 pages).
                                         operations. GAO's current staff of        GAO's Downsizing Efforts, by John H.
OCG-96-5, June 28, 1996 (239 pages).     3,700 employees--down from 5,325 in       Luke, Deputy Assistant Comptroller
Addressing the Deficit: Updating the     1992-is the agency's lowest staffing      General for Human Resources, before
Budgetazy Implications of Selected       level since before World War II. GAO      the Civil Service Subcommittee,
GAO Work.                                is meeting the challenge of doing a       House Committee on Government
                                         good job even better-and doing it         Reform and Oversight.
This report is part of GAO's continu-    faster, at less cost, and with fewer
ing effort to help Congress identify     people. The agency is constantly          This testimony discusses GAO's
options to reduce the deficit. It        seeking to improve productivity, take     downsizing efforts, including its
updates GAO's previous work in this      advantage of modem technology, and        reduction in force (RIF). It addresses
area and systematically identifies the   improve employee skills and exper-        (1) GAO's strategic planning process
budgetazy implications of selected       tise. Concerns have been raised,          to restructure GAO's workforce, (2)
program reforms discussed in GAO's       however, about GAO's lack of enough       the development and implementation
work but not yet implemented or          technical expertise to successfully       of GAO's new RlF rules, and (3)
enacted In this year's report, GAO       conduct a consolidated audit of the       differences between GAO's RlF rules
updates 96 of the 120 spending           executive branch-an important             and appeal rights and those for the
reduction and revenue gain options       requirement of the Chief Financial        executive branch. It also discusses the
that appeared in last year's report      Officers' Act.                            impact of the downsizing on veterans
(GAO/OCG-95-2). Under the Budget                                                   at GAO.
Enforcement Act, the spending and        T-OCG-96-2, Apr. 30, 1996 (21
revenue options included in this         pages). Congressional Oversight: The      T-OCG-96-6, June 14, 1996 (16
report may be used either to reduce      General Accounting Office, by Charles     pages). Fiscal Year 1997 Budget
the deficit or to free up funds for      A. Bowsher, Comptroller General of        Estimates for the U.S. General Ac-
other programs. GAO analyzes the         the United States, before the Govern-     counting Office, by Charles A.
following three options: reassess        ment Management, Information and          Bowsher, Comptroller General of the
objectives (reconsider whether to        Tecimology Subcommittee, House            United States, before the Legislative
terminate or change the services and     Committee on Government Reform            Branch Subcommittee, Senate Com-
the programs provided), redefine         and Oversight.                            mittee on Appropriations.
beneficiaries (reconsider a program's
intended population), and improve        In 1996, GAO celebrates 75 years of       During the past year, GAO again
efficiency (reconsider how a program     service to Congress. This testimony       demonstrated its worth to Congress
or a service should be delivered).       discusses the important role GAO has      and the taxpayer. Agency officials
                                         played over the years as the "nation's    testifIed nearly 250 times before
Testimony                                watchdog"-the agency responsible          congressional committees on issues
                                         for providing Congress with objective     ranging from budget savings, to waste,
T-OCG-96-1, Feb. 29, 1996 (9 pages).     and credible audits and evaluations of    fraud, and abuse, to proposals for
Fiscal Year 1997 Budget Estimates for    executive branch programs and             reengineering the federal government.
the U.S. General Accounting Office, by   management. Since 1992, GAO has           During fiscal year 1995 alone, GAO
Charles A. Bowsher, Comptroller          reduced its workforce by one-third to     identified fmancial benefits totaling
General of the United States, before     about 3,500 employees-its lowest          nearly $16 billion-a return of more
the Legislative Subcommittee, House      level since before World War II. Still,   than $35 for every dollar appropriated
Committee on Appropriations.             GAO, with its cadre of highly skilled     for GAO. GAO's current staff of 3,700
                                         professionals, remains a highly           employees--down from 5,325 in
During the past year, GAO again          productive and effective source of        1992-is the agency's lowest staffmg
demonstrated its worth to Congress       information for Congress. The Comp-       level since before World War II. GAO
and the taxpayer. Agency officials       troller General highlights GAO's          is meeting the challenge of doing a
testified nearly 250 times before        success in meeting its mission respon-    good job even better-and doing it
congressional committees on issues       sibilities in the midst of downsizing,    faster, at less cost, and with fewer
ranging from budget savings, to waste,   as well as recent steps GAO has taken     people. The agency is constantly
fraud, and abuse, to reengineering the   to continue to improve its seIVice to     seeking to improve productivity, take
federal government. During fiscal year   Congress.                                 advantage of modem tecimology, and
1995, GAO recommendations pro-                                                     upgrade employee skills and exper-
duced more than $15 billion in mea-                                                tise. Concerns have been raised,
surable fmancial benefits, as well as                                              however, that a lack of technical



GAO/OIMC-97-lA Subject Index             Page 128
expertise could hamper GAO's ability
to successfully carry out its responsi-
bilities under the Chief Financial
Officers Act and to support congres-
sional efforts to reform the federal
government's financial management
systems.

T-OCG-96-7, July 25, 1996 (18 pages).
Social Security Administration:
Effective Leadership Needed to Meet
Daunting Challenges, by Charles A
Bowsher, Comptroller General of the
United States, before the Social
Security Subcommittee, House
Committee on Ways and Means.

With a staff of 64,000, the Social
Security Administration (SSA) runs
the largest federal program-Social
Security-as well as the largest cash
welfare program-SupplementaJ
Security Income. The agency's expen-
ditures totaJ.e d $363 billion in fIScal
year 1995, almost one-fourth of the
$1.5 trillion federal budget This
testimony discusses the difficult
challenges facing SSA in the coming
decades: taking part in the debate
over future fInancing of Social Secu-
rity; encouraging disability recipients
to return to work; reducing fraud and
abuse; and managing workforce and
technology investments so that it can
meet the needs of America's retired,
disabled, and poor.




                                           Page 129   GAO/OIMC-97-1A Subject lndex
OGe                                       accordance with the same scope and         On April 12, 1996, the President
                                          methodology GAO used to compile its        submitted to Congress his sixth
OGC-96-1, Oct. 11, 1995 (3 pages).        previous tables.                           special impoundment message for
bnpoundments: Deferral of Fiscal                                                     fiscal year 1996, which reports 10
Year 1995 Economic Support Fund           OGC-96-S, Apr. 16, 1996 (6 pages).         proposed rescissions of budget
Budget Authority.                         bnpoundments: Comments on Pro-             authority affecting programs at the
                                          posed Deferrals of Fiscal Year 1996        Defense Department. GAO reviewed
On September 8, 1995, the President       Budget Authority.                          the proposed rescissions and found
submitted to Congress his sixth                                                      them to be in accordance with the
special impoundment message for           On February 21, 1996, the President        bnpoundmentControlAct
fIscal year 1995. The message report      submitted to Congress his second
one revised deferral of budget author-    special impoundment message for            OGC-96-19, June 18, 1996 (3 pages).
ity affecting the budget of the Eco-      fiscal year 1996. The message reports      bnpoundments: Revised Deferral of
nomic Support Fund and International      three rescissions of budget authority.     Fiscal Year 1996 Budget Authority.
Fund for Ireland. GAO reviewed the        On February 23, 1996, the President
deferral and found it to be in accor-     submitted to Congress his third            On May 14, 1996, the President
dance with the bnpoundment Control        special impoundment message for            submitted to Congress his seventh
Act.                                      fIScal year 1996. The message reports      special impoundment message for
                                          one revised deferral and three defer-      fiscal year 1996, which reports one
OGC-96-2, Nov. 21, 1995 (1 page).         rals of budget authority as well as four   revised deferral of budget authority
bnpoundments: Comments on Three           proposed rescissions of budget             affecting foreign military fInancing
Proposed Deferrals of Fiscal Year         authority. Also, on March 5, 1996, the     funds. GAO reviewed the revised
1996 Budget Authority.                    President submitted to Congress his        deferral and found it to be in accor-
                                          fourth special impoundment message         dance with the bnpoundment Control
On October 19, 1995, the President        for fiscal year 1996. The message          Act.
submitted to Congress his fIrst special   reports one revised deferral and two
impoundment message for fiscal year       proposed rescissions of budget             OGC-96-2S, July 26, 1996 (2 pages).
1996. The message reports three           authority. GAO reviewed the deferrals      bnpoundments: Proposed Deferral of
deferrals of budget authority affecting   and rescissions in the three special       Funds for SSA Administrative Ex-
the Economic Support Fund and             messages and found them to be in           penses.
International Fund for Ireland, the       accordance with the bnpoundment
Social Security Administration, and       Control Act.                               On June 24, 1996, the President
the United State Emergency Refugee                                                   submitted to Congress his eighth
and Migration Assistance Fund. GAO        OGC-96-7, Apr. 29, 1996 (3 pages).         special impoundment message for
reviewed the deferrals and found          bnpoundments: Comments on Pro-             fiscal year 1996, which affects admin-
them to be in accordance with the         posed Rescissions of Fiscal Year 1996      istrative expenses at the Social
bnpoundment Control Act.                  Budget Authority.                          Security Administration. GAO re-
                                                                                     viewed the revised deferral of budget
OGC-96-3 , Jan. 18, 1996 (5 pages).       On March 13, 1996, the President           authority in that message and found it
bnpoundments: Historical Information      submitted to Congress his flfth special    to be in accordance with the bn-
and Statistics on Proposed and            impoundment message for fiscal year        poundment Control Act
Enacted Rescissions, Fiscal Years         1996. The message reports fIve
1974-1995.                                rescissions of budget authority            Testimony
                                          affecting military construction. GAO
To keep Congress abreast of the           reviewed the proposed rescissions          T-GGD/OGC-96-132 , June 11, 1996
amount and frequency of proposed          and found them to be in accordance         (11 pages). Federal Downsizing:
and enacted rescissions, GAO has          with the bnpoundment Control Act.          Delayed Buyout Policy at DOE Is
updated its previous compilation of
                                                                                     Unauthorized, by Henry R. Wray,
historical data on rescissions pro-       OGC-96-10, June 10, 1996 (4 pages).        Senior Associate General Counsel,
posed by the executive branch and         bnpoundments: Comments on Pro-             before the Civil Service Subcommit-
rescissions enacted by Congress           posed Rescissions of Fiscal Year 1996      tee, House Committee on Government
through the close of the fIscal year.     Budget Authority.                          Reform and Oversight
These statistics were prepared in




GAO/OIMC-97-lASubjectlndex                Page 130
The Federal Workforce Restructuring       violations of the lobbying restrictions
Act authorized federal agencies to        found in 13 regular appropriation acts,
offer "buyouts" to employees who          (2) discusses H.R. 3078's ban on
retired or resigned from the govern-      lobbying by federal agencies in light
ment before April I, 1995. The legisla-   of its statutory model-section 303 of
tion contained an exception that          recent interior Department appropria-
allowed the payment of a buyout to an     tion acts-and GAO's decisions and
employee as late as March 31, 1997, if    interpretations interpreting and
the agency head determined that such      applying section 303, and (3) exam-
a delay was essential to the agency's     ines H.R. 3078's potential effect on
mission. The General Counsel at the       GAO's workload.
Department of Energy (DOE) con-
cluded in a July 1995 memorandum
that the act did not preclude DOE
from offering buyouts to employees
who had not applied for them before
April 1, 1995. He further stated that a
determination by the Secretary of
Energy to "conditionally approve"
delayed buyouts for all DOE employ-
ees in broad job categories who
applied before April I, 1995, was
permitted to later be amended to
cover employees who had not filed
buyout applications before that date.
GAO disagrees with the General
Counsel's position. GAO believes that
the plain language of the act, as well
as the fundamental logic and underly-
ing context of the statute, clearly
require that determinations to invoke
the exception and permit delayed
separation must be made in conjunc-
tion with approval of the buyouts
themselves. in GAO's view, the
authority of agencies to approve
buyouts ended on March 31, 1995. The
legislative history of the act supports
this opinion.

T -OGC-96-18, May 15, 1996 (18
pages). H.R. 3078, The Federal Agency
Anti-Lobbying Act, by Robert Murphy,
General Counsel, before the House
Committee on Government Reform
and Oversight.

fiR 3078 would prohibit federal
agencies from using appropriated
funds to lobby. GAO recommended a
similar restriction 12 years ago and
believes that the need remains for
permanent government-wide legisla-
tion. This testimony (1) explains
GAO's role in investigating alleged



                                          Page 131                                  GAO/OIMC-97-lA Subject ludex
oIMe
OIMClOPA-96-1A,OIMClOPA-96-
lB, Feb. 1, 1996 (595 pages). Ab-
stracts of Reports and Testimonies:
Fiscal Year 1995.

A two-volume set, this reference
publication provides an overview of
the agency's work during fiscal year
1995. The first volume summarizes
more than 1,000 "blue books" and
other publications issued between
October 1994 and September 1995.
The second volume contains indexes
that allow the reader to locate quickly
documents that are of interest.




GAO/OIMC-97· IA Subject Index             Page 132
OP
OP-96-1, Jan. 16, 1996 (179 pages).
Status of Open Recommendations:
Improving Operations of Federal
Deparonents and Agencies.

Each year, GAO's work contributes to
many legislative and executive branch
actions that yield significant flnancial
savings and other improvements in
government operations. Some, but not
aU, are identified through GAO's
system for periodically following up
to determine the status of actions
taken on the recommendations made
in GAO reports. About three out of
four recommendations made during
the past flve years have been imple-
mented This report highlights the
impact of GAO's work on various
issue areas and summarizes key open
recommendations. It also includes a
set of computer diskettes with details
on aU open recommendations. The
diskettes have several menu options
to help users find information easily.




                                           Page 133   GAOIOIMC-97·lASubjectlndex
OPA
OIMCJOPA·96·lA,OIMC/OPA·96·
lB, Feb. I, 1996 (595 pages). Ab-
stracts of Reports and Testimonies:
Fiscal Year 1995.

A two-volume set, this reference
publication provides an overview of
the agency's work during fIScal year
1995. The first volume summarizes
more than 1,000 "blue books" and
other publications issued between
October 1994 and September 1995.
The second volume contains indexes
that allow the reader to locate quickly
documents that are of interest.




GAOIOIMC·97·lA Subject Index              Page 134
OSI                                       mismanagement or misconduct may           government's losses as a result of E-
                                          have led to the liquidations or the       Systems' actions in the three previ-
051-96-2, Sept. 30, 1996 (19 pages).      bankruptcy of some of the SBICs and       ously mentioned hotline cases?
Department of Energy: Unethical           SSBICs, with the government picking
Conduct at DOE's Yucca Mountain           up the tab. Estimated losses for three    Testimony
Project.                                  of the five companies that have gone
                                          into liquidation or bankruptcy have       T-OSI-96-1, Dec. 13, 1995 (5 pages).
Congress created the Office of Civil-     exceeded $4 million. SBA now exam-        Small Business Adnlinistration: Case
ian Radioactive Waste Management          ines the performance of SBICs and         Studies mustrate 8(a) Program and
within the Department of Energy           SSBICs more often, has expanded the       Contractor Abuse, by Donald J.
(DOE) to manage the disposal of           comprehensiveness of those examina-       Wheeler, Acting Director, Office of
highly radioactive waste generated at     t ion, and has recently changed its       Special Investigations, before the
civilian nuclear power plants. The        licensing procedures so that new          House Committee on Small Business.
centerpiece of the disposal program is    SBres are more experienced and
the Yucca Mountain Site Characteriza-     capitalized. However, GAO has found       This testimony discusses program and
tion Project, whose purpose is to         that SBA had not responded in a           contractor abuses involving two of the
determine whether the Yucca Moun-         timely manner to serious regulatory       top 25 contractors participating in the
tain site in Nevada is suitable for       violations identified during examina-     Small Business Administration's
permanent disposal of highly radioac-     tions.                                    (SBA) 8(a) business development
tive waste. Allegations have been                                                   programs, , which is intended to
raised about conflicts of interest at     051-96-6 , May 16, 1996 (26 pages).       promote the development of small
the Yucca Mountain Project. A similar     Defense Procurement: E-Systems'           business owned by socially and
issue surfaced in 1987 involving the      Reporting of Alleged Wrongdoing to        economically disadvantaged persons.
Office's top management and the           Army's Fraud Division.                    GAO's investigation uncovered
award of the project's management                                                   program abuse and ineffective SBA
contract. This report examines            After the defense contractor E-           oversight of the two frrms-I-NET,
whether DOE properly implemented          Systems, Inc. , pleaded gUilty in 1990    Inc., of Bethesda, Maryland, and
or adequately enforced federal            to federal violations involving Army      TAMSCO of Calverton, Maryland.
standards of ethical conduct and DOE      contracts, the Army entered into a        During the application process, both
ethics regulations at the project.        three-year administrative settlement      fums provided information that gave
                                          agreement with the company. Among         rise to questions about their eligibility
051-96-3 , Apr. 3, 1996 (29 pages).       other things, the agreement required      to participate in the 8(a) program, but
Small Business Administration: SBA        E-Systems to repon all hotline            SBA did not fully resolve those
Monitoring Problems Identified in         allegations to the Army's Procurement     questions before admitting the firms
Case Studies of 12 SBICs and SSBICs.      Fraud Division. This report answers       to the program. Further, one firm
                                          the following questions: Did federal      misrepresented its qualification to
The Small Business Investment             law I regulations, or the agreement       enter and stay in the program. SBA
Companies (SBIC) and Specialized          require E-Systems to disclose sus-        did not, however, suspend the frrm's
Small Business Investment Compa-          pected violations of procurement law?     contracts or remove it from the
nies (SSBIC) that GAO reviewed            How many, and what types of hotline       program after it learned about the
engaged in such improper practices as     complaints were lodged against E-          misrepresentations. With regard to the
loans to associates, including officers   Systems' Greemille Division? Did E-       s econd firnl , GAO questioned the
and directors of the licensees; loans     Systems employees, contrary to            practices of the contracting agency-
for prohibited real estate purchases;     federal law. alter or reinvestigate        the Coast Guard. In a contract with
and loans to ineligible persons. In       hotline complaints and investigation       the s econd firm , Coast Guard officials
addition, the SBICs and SSBICs            results to avoid disclosing information    changed the contract's original
seldom took timely measures to            to tlle federal government; and what       classification code to one for which
correct violations after being notified   were the details behind three cases        the firm qualified and altered the
by the Small Business Administration      brought to the attention of Congress"      contract's minimum value to direct a
(SBA), nor did SBA ensure that the        Why didn't the Army debar E-Systems        contract to the firm , avoiding federal
violations it had identified during       from doing business with the govern-       competition requi rements.
examinations had been corrected           ment, given the serious accusations
promptly. Therefore, the same or          contained in a May 1994 AmlY "show
similar violations were identified        cause" letter? What were the
during later examinations. Such



                                           Page 135                                           GAO/OlMC-97 -lA Subject Index
PEMD                                       times and trends for medical device        mize the potential for accident
                                           applications varied widely between         prevention, information that facili-
PEMD-96-1, Oct. 20, 1995 (37 pages).       October 1988 through May 1995. For         tates prevention must be made
FDA Drug Approval: Review Time Has         510Ck) applications submitted, the         available and used by industry and
Decreased in Recent Years.                 review time remained stable from           communities.
                                           1989 to 1991, then rose sharply in 1992
New drugs marketed in the United           and 1993, before dropping in 1994. For     PEMD-96-4 , Apr. 2, 1996 (14 pages).
States must be approved fIrst by the       1994, the median was 152 days. The         Medicaid Long-Term Care: State Use
Food and Drug Administration (FDA).        mean time to a decision was higher-        of Assessment Instruments in Care
FDA grants its approval after it has       166 days-and this mean will continue       Planning.
detemtined from data submitted by a        to grow as the remaining open cases
drug's sponsor that the drug is safe       (13 percent) are completed. The            GAO exanlined how publicly funded
and effective and that the manufac-        review time trend for original             progranlS assess the need for home
turer can guarantee its quality. GAO       premarket approvals was less clear, in     and community-based long-term care
found a considerable reduction in          part because a large proportion of         for the elderly with disabilities. This
approval time for new drug applica-        applications had yet to be completed.      care is provided to persons living at
tions between 1987 and 1992. It took       Not all the time that elapsed between      home who, because of a chronic
an average of 33 months for new drug       an application's submission and its        condition or illness, cannot care for
applications submitted in 1987 to be       final determination was spent under        themselves. Services ranges from
approved but only 19 months on             FDA's review process. ln many cases,       skilled nursing to assistance with day-
average to approve new drug applica-       FDA had to wait for additional             to-day activities, such as bathing and
tions submitted in 1992. The priority      information.                               housekeeping. Under the Medicaid
that FDA assigns to a new drug                                                        progranl, 49 states have obtained
application and the experience of its      PEMD-96-3, June 27, 1996 (48 pages).       waivers to provide home and commu-
sponsors significantly affect the          Chemical Accident Safety: EPA's            nity-based services to low-income
likelihood of a quick decision. FDA        Responsibilities for Preparedness,         elderly persons who would otherwise
assigns priority status to drugs that      Response, and Prevention.                  need institutional care paid for by
are expected to provide therapeutic                                                   Medicaid. These states are respon-
benefIt to consumers beyond that of        More than a decade ago, a chemical         sible for developing a care plan
drugs already marketed. Priority           spill in Bhopal, India, killed or miured   tailored to a client's specific needs. A
status and sponsor e':perience are         thousands and displaced many more          well-<lesigned assessment instrument
also the two factors that predict the      from their homes and businesses. The       helps identify all appropriate needs-
likelihood of drug approval. Finally,      magnitude of this event, along with        increasing the likelihood that impor-
the limited data available on review       the potential for similar accidents in     tant aspects of the client's situation
time for FDA and its counterpart in        the United States, resulted in legisla-    will not be overlooked in care plan-
the United Kingdom paint a more            tion that gave the Environmental           ning. Standardized administration of
ambiguous picture than presented in        Protection Agency (EPA) a central          the assessment instrument increases
many recent reports. In fact, the latest   role in implementing chemical              the likelihood that the needs of all
data published by the regulatory           accident safety policy. GAO found          clients will be determined in the same
agency in the United Kingdom show          that EPA had vigorous programs for         way. This repon provides information
that it does not have faster approval      accident preparedness and response.        on the (1) comprehensiveness of
times than FDA                             Recent legislation, however, has           assessment instruments, (2) unifor-
                                           shifted the agency's primary focus to      mity of their administration, and (3)
PEMD-96-2, Oct. 30, 1995 (82 pages).       preventing chemical accidents.             training for staff who do the assess-
Medical Devices: FDA Review Time.          Through risk management planning,          ments.
                                           EPA has undertaken several efforts to
The Food and Drug Administration           further the prevention of accidents,       PEMD-96-5, Sept. 27, 1996 (24
(FDA) regulates the manufacture and        including collaboration with industry      pages). Long-Term Care: Some States
marketing of medical devices in the        and professional associations. EPA         Apply Criminal Background Checks to
United States. Some critics have           has developed a large repository of        Home Care Workers.
argued that FDA's review of medical        information on accident prevention. A
devices is excessively lengthy and can     major barrier to preventing accidents,     Persons needing assistance with daily
impose inordinate delays in the            though, remains the relative lack of       activities generally prefer home- and
introduction of new devices into the       involvement of community residents         community-based services to nursing
market. GAO found that FDA review          and some industry sectors. To mrud-        homes, and increasing numbers of



GAO/OIMC-97-1A Subject Index               Page 136
elderly and disabled persons are            coronary heart disease and found a           PEMD-96-16, Sept. 19, 1996 (46
twrung to paid home care workers for        significant reduction in total fatalities;   pages). CDC's Nationallrnmunization
such services. Home care workers            the other, which studied only men            Survey: Methodological Problems
have frequent, unsupervised access to       who did not have coronary heart              Limit Survey's Utility.
potentially vulnerable people and           disease, showed encouraging but not
their property. This report examines        statistically significant reductions in      Children should receive most of their
the federal and state provisions that       fatalities from coronary heart disease.      immunizations before they reach 19
protect vulnerable elderly and dis-                                                      months old. To monitor the extent to
abled persons from home care work-          PEMD-96-10, July 2, 1996 (26 pages).         which this goal is met nationwide, the
ers with histories of crime and patient     Operation Desert Storm: Operation            Centers for Disease Control and
abuse. GAO describes (1) federal or         Desert Storm Air War.                        Prevention (CDC) has, since 1991,
state requirements for licensure,                                                        administered a supplement to the
registration, or certification that apply   The 43-day air campaign during               National Health Interview Survey. In
to home care workers and organiza-          Operation Desert Storm was the first         1994, CDC decided to centralize the
tions; (2) the extent to which states       large use of U.S. air power since            collection of immunization coverage
have used the federally mandated            Vietnam. The Air Campaign employed           data for preschoolers in each state
registxy for nursing home aides or a        nearly every type of fixed-wing              and some urban areas. That year, CDC
similar mechanism to identify home          aircraft in the U.S. inventory, flying       initiated the Nationallmmunization
care workers with past involvement in       about 40,000 air-to-ground and 50,000        Survey, which was designed to
abuse, neglect, or misappropriation of      support sorties. About 1,600 U.S.            produce current and comparable
property; and (3) the extent to which       combat aircraft were deployed by the         immunization coverage estimates for
states have required criminal back-         end of the war. By historical stan-          children aged 19 to 35 months in each
ground checks of home care workers.         dards, the intensity of the air cam-         state and 28 urban areas receiving
                                            paign was subst:antial: The U.S. bomb        CDC funds. Unlike the National
PEMD-96-7, May 14, 1996 (107                tonnage dropped per day equaled 85           Health Interview Survey, which is a
pages). Cholesterol Treatment: A            percent of that dropped by the United        face-to-face household survey, the
Review of the Clinical Trials Evi-          States on Germany and Japan during           Nationallrnmunization Survey is
dence.                                      World War II. The air campaign               conducted by telephone. Although
                                            incurred minimal casualties and              national, antigen-specific immuniza-
Clinical trials and other scientific        resulted in the liberation of Kuwait         tion rates are generally high, some
studies have consistently shown that        and the collapse of Iraqi forces.            areas remain at continued risk of
cholesterol-lowering treatment              However, GAO's analysis of the air           disease outbreaks (sometimes called
benefits middie-aged white men with         campaign revealed several issues that        "pockets of need") because they have
high cholesterol levels and a history       should be addressed before the next          concentrations of children who have
of heart disease. Medical research          military campaign. For example,              not received timely vaccinations. This
also shows that men with moderate-          pilots found that infrared, electro-         report assesses (1) the cost of the
to-high cholesterol levels and no           optical, and laser systems were all          Nationallrnmunization Survey, (2) the
history of heart disease have lower         seriously affected by clouds, rain, fog,     methods used by CDC to conduct the
rates of nonfatal heart attacks but no      smoke, and even high humidity. Pilots        survey, and (3) the utility of the
statistically significant reductions in     said that they were sometimes unable         survey in identifying "pockets" of
death rates as a result of cholesterol-     to tell whether a presumed target was        children in need of more timely
lowering treatment. Clinical trials         a t:ank or a truck or whether it had         immunization.
generally have not evaluated the value      already been destroyed. Meanwhile,
of cholesterol-lowering treatment for       the Pentagon and defense contractors         Testimony
several important groups, including         have made overstated and misleading
women, the elderly, and minorities.         claims about the weapons used during         T-PEMD-96-6, Feb. 21, 1996 (17
Thus, they provide little or no evi-        the air campaign, particularly the F-        pages). FDA Review and Approval
dence of benefits or possible risks for     117 stealth fighter, the Tomahawk            Times, by Mary R. Hamilton, Director,
these groups. Two recent trials using       cruise missile, and laser-guided             Program Evaluation in Human Service
a new drug class-the statins-show           bombs. GAO questions the military's          Areas, before the Senate Committee
greater reductions in heart problems        increased reliance on precision guided       on Labor and Human Resources.
with their greater reductions in            munitions given their limited effec-
cholesterol and no increase in fatali-      tiveness during the Persian Gulf War.        New drug applications are moving
ties from coronary heart disease. One                                                    more quickly through the Food and
trial studied men and women with                                                         Drug Administration's (FDA) review



                                            Page 137                                             GAO/OIMC-97-1A Subject Index
and approval process, and the amount     prospects. However, it is still to early
of time to obtain an application is      to tell whether the EU approach will
about the same in this country and in    result in more efficient reviews while
the United Kingdom. GAO found that       ensuring product safety.
FDA review times for medical device
applications varied widely from one
year to the next. For all types of
applications, the median review time
rose dramatically in the early 1990s
and then began to decrease. Whether
the downturn will continue will
become clear as data for additional
years become available. Some aspects
of new systems introduced by the
European Union in 1995 for drug and
medical device review are quite
different from FDA's approach to
medical product review, and there is
great optimism within the European
community about their prospects. It is
too soon to know, however, whether
the European Union's approach will
result in more-efficient reviews while
guaranteeing product safety.

T-PEMD-96-9, May 2, 1996 ( 13
pages). FDA Review Times, by Mary
R. Hamilton, Director, Program
Evaluation in Human Services Areas,
before the Health and Environment
Subcommittee, House Committee on
Commerce.

New drug applications are moving
more quickly through the Food and
Drug Administration's (FDA) review
and approval process. [t now takes
about the same amount of time to
receive approval in the United States
as it does in the United Kingdom. FDA
review times for medical device
applications vary widely from one
year to the next. For all types of
applications, the median review tinle
rose dramatically in the early 1990s
and then began to fall. Whether this
downturn will continue will become
clear as data for additional years
become available. Some aspects of
the new drug and medical device
review systems introduced by the
European Union (EU) in 1995 differ
significantly from FDA's approach to
medical product review, and there is
great optimism in the EU about their




GAOIOIMC-97-lA Subj ect Index            Page 138
ReED                                       NSlADIRCED-96-89 , Mar. 8, 1996            Issues, before the Permanent Subcom-
                                           (45 pages). Nuclear Nonproliferation:      mittee on Investigations, Senate
NSlADIRCED-96-76BR, Mar. 27,               Status of U.S. Efforts to Improve          Committee on Government Affairs.
1996 (22 pages). Terrorism and Drug        Nuclear Material Controls in Newly         GAOff-NSlAD-9&-1I9, Mar. 13 (six
Trafficking: Threats and Roles of          Independent States.                        pages).
Explosives and Narcotics Detection
Technology.                                Over the years, the Soviet Union           NSlADIRCED-96-252 , Sept. 4, 1996
                                           produced about 1,200 metric tons of        (28 pages). Terrorism and Drug
Even though conventional X-ray             highly enriched uranium and pluto-         Trafficking: Technologies for Detect-
screening falls short in its ability to    nium . U.S. efforts to help the newly      ing Explosives and Narcotics.
reveal concealed narcotics and             independent states of the former
explosives, the Federal Aviation           Soviet Union better protect their          Aviation security and drug interdic-
Administration (FAA) and the U.S.          stocks of this deadly material-which       tion depend on a complex and costly
Customs Service have lagged in             are ,ulnerable to theft and diversion      mix of intelligence, procedures, and
introducing advanced technologies to       because of antiquated security             teclmologies. Since 1978, federal
detect drugs and explosives smuggled       systems-got off to a s low start but       agencies have spent about $246
aboard commercial aircraft. The            are now galning momentum. Many             million for research and development
intelligence community believes that       independent states lack modern             on explosives detection technologies
the threat of terrorism within the         equipment to detect unauthorized           and nearly $100 million on narcotics
United States has grown and that           removal of highly enriched uranium         detection technologies. Most of this
commercial aircraft are likely to          and plutonium from nuclear facilities.     spending has taken place since 1990,
remain targets. According to the FBI,      Seizures of nuclear material in Russia     in response to congressional direc-
terrorist attacks could come from          and Europe have heightened concerns        tives, and have been for technologies
groups that are hard to inftltrate and     about a possible black market for this     to screen checked baggage, trucks,
control. In January 1995, a plot to        material. The Defense Department           and containers. Difficult trade-offs
attack U.S. flights in Asia was discov-    (DOD) has obligated $59 million and        must be made when considering
ered. Narcotics trafficking is a con-      spent about $4 million during rlScal       whether to use detection technologies
tinuing problem. Although cocaine has      years 1991-95 for security improve-        for a given application-chief among
been the main threat since 1985,           ments in Russia, Ukraine, Kazakhstan,      them the extent to which intelligence-
heroin is a growing concern. Traffick-     and Belarus. Initially the program         gathering and procedures can substi-
ing is most active today along the         moved slowly because Russian               tute for expensive technology. Some
southwest border of the United States.     officials had refused access to their      technologies are very eITective and
To counter these threats, FAA re-          facilities, and DOD projects at facili-    could be deployed today, but they are
cently certified an advanced auto-         ties in Ukraine, Kazakstan, and            expensive, slow the now of com-
mated explosive detection system, but      Belarus were just getting under way.       merce, and raise issues of worker
has not required its deployment. The       The program gained momentum in             saJety. Other technologies are more
cost of buying and installing the          January 1995 when U.S. and Russian         widely used but are less reliable,
equipment at the 75 busiest domestic       officials agreed to upgrade nuclear        while still others are in the develop-
airports could be as high as $2.2          materials controls at five high-priority   ment stage and may not be available
billion, accorcling to preliminary FAA     facilitirs. The Energy Department          for years. Some countries have
estimates. Customs has one truck X-        plans to request $400 million over         already deployed advanced e..xplosive
ray system at the southwest border to      seven years to improve controls at         and narcotics detection equipment,
detect narcotics and plans to spend        nuclear facilities in the newly inde-      and the United States may be able to
538 million to acquire others. Its plans   pendent states. However, the ex-           learn from their experiences. The
for seaports and the use of mobile         panded program faces uncertainties         Federal Aviation Administration
systems have not been clearly de-          involving its overall costs and U.S.       estimates that use of the best avail-
fmed. Other countries, including the       ability to verify that the assistance is   able procedures and technologies to
United Kingdom and France, are             being used as intended. GAO summa-         beef up aviation security could cost as
already using advanced technologies        rized this report in testimony before      much as $6 billion during the next 10
to detect explosives and narcotics.        Congress; see; Nuclear Nonprolifera-       years-the equivalent of a $1.30
                                           tion: U.S. Efforts to Help Newly           surcharge on a one-way ticket.
                                           Independent States Improve Their
                                           Nuclear Materials Controls, by Harold      RCED-96-1, Nov. 17, 1995 (33 pages).
                                           J. Johnson, Associate Director for         Animas-La Plata Project: Status and
                                           International Relations and Trade          Legislative Framework.



                                           Page 139                                            GAO/OIMC-97-1A Subject Index
The Interior Department's Animas-La      fiscal year (FY) 1994. Their unpaid       ranchers, have limited effectiveness,
Plata Project was designed to store      principal balances total $3.7 billion.    and are impractical for field personnel
water and divert it to arid regions in   GAO found that the program has            to use.
southwestern Colorado and north-         helped borrowers avoid immediate
western New Mexico, mainly by            foreclosure , but it has not been fully   RCED-96-4, Nov. 7, 1995 (39 pages).
channelling water from the Animas        successful in helping borrowers avoid     Nuclear Safety: Concerns with
River to the La Plata River basin.       foreclosure and retain their homes on     Nuclear Facilities and Other Sources
Before beginning construction of the     a long-term basis. GAO estimates that     of Radiation in the Former So,iet
project, the Interior Depamnent is       52 percent of the nearly 68,000           Union.
required to determine whether the        borrowers who have entered the
project would jeopardize the contin-     program since IT 1989 will eventually     Although safety problems with
ued existence of any endangered          lose their homes through foreclosure.     nuclear reactors in the former Soviet
species. This report provides informa-   Moreover, program losses have             Union and eastern Europe have
tion on the history and status of the    exceeded those that would have been       received widespread attention, many
Animas-La Plata project, the legisla-    incurred had loans gone immediately       other nuclear facilities and other
tive framework provided for the          to foreclosure without assignment.        sources of radiation in the former
project by the 1988 Colorado Ute         Options to reduce program losses          Soviet Union also pose safety, health,
Indian Water Rights Settlement Act       include reducing the three-year relief    and environmental threats. For
and the Endangered Species Act, the      period provided to borrowers, setting     example, a 1993 accident at a pluto-
consultation between the Bureau of       a time limit on eliminating delinquen-    nium processing plant in Russia
Reclamation and the Fish and Wildlife    cies, and accepting only those borrow-    highlighted safety problems associ-
Service under the Endangered Species     ers into the program who can afford       ated with these types of facilities.
Act, and the project's relationship to   to pay at least half of their mortgage    This report provides information on
another congressionally authorized       payments.                                 (1) nuclear facilities (other than civil
project-the Navlijo Indian Irrigation                                              nuclear power reactors), nuclear-
Project.                                 RCED-96-3, Oct. 30, 1995 (15 pages).      powered vessels, and other sources of
                                         Animal Damage Control Program:            radiation in the former Soviet Union;
RCED-96-2, Oct. 18, 1995 (44 pages).     Efforts to Protect Livestock from         (2) the views of U.S. and international
Homeownership: Mixed Results and         Predators.                                experts on the safety of these facili-
High Costs Raise Concerns About                                                    ties and other sources of radiation;
HUD's Mortgage Assignment Program.       Efforts to protect livestock from         and (3) U.S. and international efforts
                                         predators, mainly coyotes, constitute     to address nuclear safety and environ-
During the 19-year period that ended     the mlijor activity of the Agriculture    mental problems with these facilities
in September 1993, the Department of     Depamnent's Aninlal Damage Control        and other sources of radiation.
Housing and Urban Development            Program. In 1994, more than 100,000
(HUD) incurred losses totalling $12.8    predators were killed by the              RCED-96-5, Oct. 24, 1995 (60 pages).
billion as a result of foreclosures on   program's field personnel. GAO fOWld      Restoring the Everglades: Public
homes that the Federal Housing           that Agriculture field personnel in       Participation in Federal Efforts.
Administration (FHA) had insured. As     California, Nevada, Texas, and
an alternative to foreclosure on such    Wyoming used lethal methods in            In central and southern Florida, where
properties, HUD operates a mortgage      essentially all instances to control      national parks and wildlife refuges
assignment progranl. For borrowers       livestock predators. Agriculture's        abut farmland , urban areas, and
accepted into the program, FHA pays      written policies and procedures call      Indian reservations, the boundaries
the mortgage debt, takes assignment      for field personnel to give preference    between pubHc and private lands and
of the mortgage from the lenders, and    to the use of nonlethal methods when      between federal, state, local, and
develops a new repayment plan for        practical and effective. However,         tribal jurisdictions overlay the eco-
the borrower under which monthly         according to program officials, this      logical boundaries created by the flow
mortgage payments can be reduced or      aspect of written guidance does not       of water. During the last half century,
suspended for up to 36 months. HUD       apply to the control of livestock         engineering projects have altered the
collects mortgage payments from the      predators. These officials said that in   quantity and timing of the water's
borrowers while allowing them to live    controlling livestock predators,          flow, agricultural runoff has altered
in their homes. The nunlber of FHA       nonlethal methods, such as fencing        water quality, and urbanization has
borrowers partiCipating in the pro-      and the use of herders and guard          fragmented the region's ecosystem. As
gram has tripled during the past six     dogs, are more appropriately used by      a result, South Florida-including the
years, reaching 71,500 at the end of                                               Everglades and Florida Bay-is



GAO/OIMC-97-1A Subject Index             Page 140
showing signs of ecological distress.     GAO's Energy and Science Issue Area        recoup only a small portion-less
Federal agencies began an effort in       examines the activities of a variety of    than one percent-<lf its costs for
1993 to coordinate environmental          entities, from the Nuclear Regulatory      those applicants that complete the
restoration in South Florida In           Commission to the Tennessee Valley         process. Although the government
addition, the Administration has          Authority to the National Science          recoups some of its certification costs
identified South Florida as a site for    Foundation. This work generally            through ticket and fuel taxes, these
testing a new approach to ensuring a      examines the role and continued need       funds are collected only from appli-
healthy environment and managing          for a federal presence in these areas,     cants that successful begin and
the nation's lands and natural re-        exposing incidences of waste and           sustain their operations. Requiring
sources. This approach, which             mismanagement and promoting a              applicants to pay a greater share of
recognizes the interrelationships         smaller, more efficient, and cost-         the certification costs could generate
between natural systems and healthy,      effective government. Organized into       revenue to help defray these ex-
sustainable economies, cuts across        four main sections-"Management             penses-a particularly important
the boundaries of ownership and           and Missions of Energy and Science         outcome during this period of declin-
jurisdiction. Central to this new         Agencies," "Consequences and               ing federal budgets.
approach is the need for federal and      Implications of the Nuclear Age,"
nonfederal stakeholders to collabo-       "Competition and Security in Energy        RCED-96-10, Oct. 3, 1995 (47 pages).
rate and build consensus on solutions     Supplies: and "Federal Role and            Nuclear Regulation: Wealmesses in
to problems of mutual concern. This       Investment in Science and Technol-         NRC's Inspection Program at a South
report (1) identifies the processes       ogy"-this five-year bibliography lists     Texas Nuclear Power Plant.
used by federal agencies to involve       GAO documents on science and
nonfederal stakeholders in environ-       energy topics issued from 1990             In February 1993, the operator of the
mental restoration efforts in South       through 1994. The documents are            South Texas Project Electric Generat-
Florida and (2) the lessons learned       listed chronologically, with the most      ing Station-a nuclear power plant-
about federal and nonfederal collabo-     recent reports flISt. A subject index is   shut down its two reactors because of
ration and consensus-building in          included.                                  continuing malfunctions with a
South Florida that may be applicable                                                 portion of the reactors' emergency
elsewhere.                                RCED-96-8, Jan. 11, 1996 (16 pages).       equipment. The plant, located near
                                          Certification of New Airlines: Depart-     Houston, Texas, was shut down for
RCED-96-6, Nov. 28, 1995 (70 pages).      ment of Transportation Has Taken           more than a year to correct these and
Highway Funding: Alternatives for         Action to Improve Its Certification        other problems. The plant had a long
Distributing Federal Funds.               Process.                                   history of problems in its design,
                                                                                     construction, and operation. This
Under the federal-aid highway pro-        The Department of Transportation's         report ( I) discusses the circum-
gram, billions of dollars are distrib-    certification process has added 90         stances surrounding the plant shut-
uted to the states each year for the      new carriers to the airline industry       down and the seriousness of the
construction and repair of highways       during the past 5-112 years. These new     incident, (2) determines whether the
and related activities. The Intermodal    carriers have increased competition        Nuclear Regulatory Commission
Surface Transportation Efficiency Act     among airlines and have reduced            (NRC) was aware of problems at the
of 1991 authorized about $120 billion     fares. However, about half of tile         plant before the s hutdown, and (3)
for this program for fIscal years 1992    applicants that applied to operate new     identifies factors that may have
through 1997. This report discusses       airlines did not complete the process,     prevented NRC from having complete
(1) the way the fornlU la works and the   mainly because they lacked the             and timely information about the
relevancy of the data used for the        fmancial resources. In some cases,         contractor's performance.
formula and (2) the major funding         the Federal Aviation Administration
objectives implicit in the formula and    spent considerable resources on            RCED-96-11, Nov. 16, 1995 (26
the implications of alternative formula   costly certification activities. Al-       pages). Rural Housing Programs:
factors for achieving them.               though the Department of Transporta-       Opportunities Exist for Cost Savings
                                          tion has taken steps to improve its        and Management Improvement.
RCED-96-7W, Dec. I, 1995 (2 10            certification process and reduce the
pages). Energy and Science: Five-         amount of money spent on unsuccess-        The Agriculture Department's Rural
Year Bibliography 1990-1994.              ful applications, it is too soon to lmow   Housing and Community Develop-
                                          how successful these measures will         ment Service provides about $2.85
                                          be. The fees that applicants pay for       billion each year [or rural housing
                                          certification allow the government to      loans. As of June 1995, the Service



                                          Page 141                                            GAO/OIMC-97-1A Subject Index
had an outstanding single-family and       some sites that could benefit from        Nations Environment Programme
multifanlily housing loan portfolio of     significant tecltnological advance-       concluded that emissions from methyl
about $30 billion, wttich represented a    ments.                                    bromide use contribute significantly
significant federal investment in                                                    to ozone depletion and should be
affordable housing for the rural poor.     RCED-96-15, June 21 , 1996 (60            controlled. In response, the Environ-
The largest portion of the loan portfo-    pages). Forest Service Reforestation      mental Protection Agency (EPA)
lio is for single-fantily direct and       Funding: Financial Sources, Uses, and     issued regulations that freeze the
guaranteed mortgage loans that are         Condition of Knutson-Vandenberg           production and importation of methyl
made to families or individuals who        Fund.                                     bromide at 1991 levels until 2002, at
are without adequate housing and                                                     wttich time the pesticide can no
who are unable to obtain loans from        The Forest Service is responsible for     longer be produced into the United
private lenders at reasonable costs.       reforesting areas harvested for timber    States for domestic use. However, a
Rural multifamily rental housing           or destroyed by natural causes in         phaseout of the substance could harm
loans, made to finance apartment-          national forests. The Forest Service,     U.S. agriculture and trade unless
style housing or to buy and rehabili-      wttich manages 191 million acres of       adequate-that is, environmentally
tate existing rental units, make up the    forests, rangelands, and grasslands,      acceptable, effective, and economi-
rest of the portfolio. This report         obligated about $163 million for          cal-alternatives are found before the
provides information on the Service's      reforestation during fiscal year 1994.    ban takes effect in five years. More
single- and multifantily housing loans     More than 70 percent of the money for     progress in identifying alternative is
programs and discusses suggestions         reforestation comes from the              being made for some uses of methyl
made by GAO and others that could          Knudson-Vandenberg Trust Fund.            bromide than for others. If adequate
yield cost savings or management           Although the Fund had a reported          alternatives are not ready by the time
improvement in these programs.             balance of about $338 million as of       the ban takes effect, exemptions from
                                           September 1995, not enough money          the ban may be needed for some
RCED-96-13, Dec. 29, 1995 (34              will be available to pay for all the      domestic uses until alternatives can
pages). Superfund: EPA Has Identi-         planned projects, whose cost is now       be developed. EPA now lacks the
fied Limited Alternatives to Incinera-     estimated at $942 million. The short-     authority, however, to grant exemp-
tion for Cleaning Up PCB And Dioxin        fall has occurred because during the      tions for the continued production
Contamination.                             1990s the Forest Service transferred      andlor importation of methyl bromide
                                           $420 million from the Fund to pay for     for domestic uses.
One of the most contentious issues         emergency ftrefighting. However, the
facing the Environmental Protection        Agriculture Department has yet to         RCED-96-18, Nov. 3, 1995 (18 pages).
Agency (EPA) is the use of incinera-       restore these funds, and the Forest       Fruit Juice Adulteration: Detection Is
tion to clean up Superfund sites           Service continues to run the program      Difficult, and Enhanced Efforts Would
contaminated by polychlorinated            as if the transfers had never occurred.   Be Costly.
biphenyls (PCB) or dioxin. Increas-        In addition, the Forest Service lacks
ingly, community groups are protest-       reliable fmancial management infor-       Nationwide, school districts serve
ing the use of incineration as a           mation and effective controls to          more than 56 million gallons of fruit
treatment remedy. Many people fear         ensure compliance with the Knutson-       juice each year. Unscrupulous proces-
that the incinerators will emit hazard-    Vandenberg Act's prohibition against      sors can gain an economic advantage
ous substances that could pose a           spending more trust funds on an           over legitimate competitors by adding
health risk for neighboring communi-       individual sale area than had been        water, sugar, and other ingredients to
ties. Although EPA encourages the          collected from that area                  fruit juice and labeling the product as
development of innovative technolo-                                                  pure. However, the extent to wttich
gies to dispose of hazardous wastes, it    RCED-96-16, Dec. 15, 1995 (38             adulteration takes place is uncertain
has not identified any technologies it     pages). Pesticides: The Phaseout of       and difficult to detect. Inspections of
believes to be as effective as incinera-   Methyl Bromide in the United States.      juice plants are not designed to spot
tion for most PCB- or dioxin-contami-                                                adulteration, and current laboratory
nated sites. Several innovative tech-      Methyl bromide had been used in           tests have limitations. Estimates of
nologies, however, have the potential      agriculture since the 1930s, mainly as    the problem's extent vary widely for
for future applications in treating        a fumigant to control pests in the soil   orange and apple juice, the two most
complex sites contantinated with           before planting seeds, to protect         frequently consumed juices. Govern-
PCBs and dioxin. Accordingly, GAO          stored crops, and to treat commodi-       ment and industry officials believe
agrees with EPA's recent proposal to       ties being sttipped abroad. World         that the adulteration rate for apple
revisit its decisions on remedies at       scientists participating in the United    juice is insignificant, but estimates of



GAO/OIMC-97-1A Subject Index               Page 142
the adulteration rate for orange juice    prevent the centers from using            RCED-96-24, Jan. 3, 1996 (48 pages).
ranges as high as 20 percent. Since the   privileged information in preparing       Motor Vehicle Safety: Comprehensive
mid-1980s, the Justice Department has     program proposals. Agency officials       State Programs Offer Best Opportu-
prosecuted seven cases of juice           expressed differing views on the          nity for Increasing Use of Safety Belts.
adulteration. These prosecutions          Technology Transfer Program 's effect
resulted in six convictions and one       on the Small Business Innovation          In late 1994, the Nationaillighway
acquittal. On the basis of these          Research Program and other agency         Traffic Safety Administration
convictions, the Agriculture Depart-      research and development, although        (NHTSA) did a special nationwide
ment has taken action against three       none of them suggested any negative       survey on the use of safety belts. This
companies that remain in business         effects, such as competition between      survey found the rate of safety belt
and against 21 individuals to prevent     the two programs for quality propos-      use to be 58 percent. NHTSA's survey
them from selling juice to the school     als. The similarity of the two pro-       suggests that although the use of
meal programs. Government and             grams, however, raised questions          safety belts has increased substan-
industry officials have identified two    about the need for a new program.         tially from the 11 percent reported in
main options for enhancing the                                                      1982, considerable progress is sti1l
detection of adulterated juice sold to    RCED-96-23, Mar. 20, 1996 (21             needed if the Department of Transpor-
schooJ.s.--<:onducting in-plant inspec-   pages). Water Pollution: Many             tation is to meet its current goal of 75-
tions and instituting either systematic   Violations Have Not Received Appro-       percent use of safety belts by 1997.
or risk-based juice-testing programs.     priate Enforcement Attention.             The four states-California, Hawaii,
Although both methods could enhance                                                 North CaroJina, and Washington-that
detection of adulterated juices, they     The quality of the nation's waters has    have achieved rates of more than 80-
would be costly.                          improved since the Clean Water Act        percent use of safety belts have
                                          was revised in 1972. The act bans         comprehensive programs, including
RCED-96-19, Jan. 24, 1996 (34             facilities from discharging pollutants    strong laws mandating use of safety
pages). Federal Research: Prelimi-        in amounts exceeding those autho-         belts, visible and aggressive enforce-
nary Information on the Small Busi-       rized in their discharge permits. But     ment of these laws, and vigorous
ness Technology Transfer Program.         GAO's analysis of the Environmental       programs to educate the public. An
                                          Protection Agency's (EPA) compli-         effective federal strategy to boost the
The nation's research institutions--its   ance data for fiscal years 1992-94        use of safety belts would be to
universities, federal laboratories, and   shows that major facilities often         encourage the states to establish
nonprofit research organizations--        violated their permits. For fiscal year   comprehensive programs that include
account for about a quarter of all the    1994, for example, about one in six of    all the elements that increase safety
scientists and engineers in the United    the nation's 7,000 major regulated        belt use-primary enforcement laws
States. To help move new knowledge        facilities significantly violated the     with aggressive enforcement, require-
from research institutions to industry,   discharge limits in their permits.        ments that all occupants of vehicles
Congress authorized the Small             However, EPA believes that the actual     that have belts installed use them,
Business Technology Transfer Pilot        number of major violations of dis-        fines that discourage noncompliance,
Program for three years, beginning in     charge permits may be nearly twice as     and public education. Current law
fiscal year 1994. Federal agencies        high as the compliance data suggest.      does not require the occupants of
rated the quality and commercial          In addition, violations that EPA has      cars' back seats or any occupant of a
potential of winning proposals            not identified may be as serious from     light truck or a van to use safety belts.
favorably in the program's first year.    an environmental perspective as those     Neither does the law specify primary
Technical experts, however, were          that it has identified. EPA does not      and secondary enforceme nt Given the
cautious about the commercial             identify all significant violations of    increased number of light trucks being
potential, possibly because of the        discharge limits because its criterion    sold and the low rate of seat belt use
newness of the program. Agencies          for screening violations has not          in these vehicles, measures are
have taken steps to avoid potential       remained consistent with the types of     needed to boost the rate of seat belt
conflicts of interest that might arise    discharge limits used in permits. In      use by the occupants of light trucks.
because of the close connection           September 1995, EPA expanded its
between federal agencies and re-          criterion for identifying cases of        RCED-96-30, Feb. 23, 1996 (15
search and development centers. In        significant noncompliance and, hence,     pages). Federal Land Management:
addition, the Departments of Defense      for assigning enforcement priorities.     Information on Efforts to Inventory
and Energy, which accounted for                                                     Abandoned Hard Rock Mines.
almost all of the awards involving
such centers, have taken steps to




                                          Page 143                                           GAO/OIMC-97-1A Subject Index
Thousands of hard rock mines lie            RCED-96-36, Dec. 27, 1995 (8 pages).       whether (1) DOE will keep option part
abandoned on federal lands. Many of         Energy Downsizing: Criteria for            of one disposal site to dispose of
these mines present physical safety         Community Assistance Needed                tailings unearthed during future work
hazards, and a smaller number cause                                                    on roads and utilities and (2) the
environmental problems through, for         Since the end of the Cold War, the         affected states will contribute their
example, acid drainage that carries         Energy Department (DOE) has been           100percent share of the groundwater
toxic concentrations of heavy metals.       downsizing and realigning its facili-      cleanup expenses. Depending on what
Many of these abandoned mines are           ties. As part of this effort, DOE closed   happens, these factors could add
found on federal lands in the West          its Pinellas plant, located in Largo,      millions of dollars and years of work
managed by the Bureau of Land               Florida, which had manufactured            to the cleanup effort.
Management, the National Park               components for nuclear weapons. in
Service, the Fish and Wildlife Service,     1995, DOE transferred to facility to       RCED-96-39, Dec. 28, 1995 (13
or the Forest Service. This report          the Pinellas County Industry Council       pages). Department of Energy:
focuses on these agencies because           to help alleviate the economic impact      Property Management Has Improved
they manage 623 million acres, or 95        of the closing on neighboring commu-       at DOE's Rocky Flats Site.
percent, of the federal lands in the        nities. DOE also provided funding to
United States. GAO discusses the (1)        help mitigate the effects of the           As of October 1995, the Energy
approximate number of abandoned             closing. GAO examined the criteria         Department (DOE) estimated that
hard rock mines on federally managed        DOE used to identify and evaluate the      only $4.5 million worth of property
lands, (2) types of hazards these           economic effects of closing the            was missing or could not be physi-
mines pose, and (3) approximate cost        Pinellas plant and found that DOE's        cally located at its Rocky Flats facility
to reclaim these mines.                     policy guidance supports economic          in Colorado. This amount is consider-
                                            development to minimize the impact         ably lower than the $29.3 million cited
RCED-96-31FS, Dec. 8, 1995 (28              on displaced workers and affected          in GAO's 1994 report (GAOIRCED-94-
pages). Federal Research: Informa-          communities of closing the                 77) primarily because DOE authorized
tion on Fees for Selected Federally         Department's former defense nuclear        the contractor to write off about $20.B
Funded Research and Development             weapons facilities. However, DOE has       million in missing or "unlocated"
Centers.                                    not established specific criteria for      property from the property records.
                                            identifying and evaluating the impact      Generally, GAO found that DOE had
Federally Funded Research and               of the closings; nor has it established    improved property management at
Development Centers fIrst came into         criteria for deciding what types and       Rocky Flats. For instance, DOE has
existence during World War II to meet       amounts of assistance are appropriate      acquired a new property-tracking
special research needs that federal         to offset that impact. Such criteria are   system more suited to property
and private-sector facilities were          important because DOE's downsizing         management. However, a ma,jor
unable to meet. Currently, 39 centers       ""ill likely continue to years and will    problem highlighted in GAO's 1994
are sponsored by eight federal agen-        cost millions of dollars.                  report has yet to be addressed: A large
cies-the Energy Department (DOE)                                                       percentage of the data in the site's
sponsors 1B, the Defense Department         RCED-96-37, Dec. 15, 1995 (47              property-tracking system are inaccu-
(DOD) sponsors 11, and NASA                 pages). Uranium Mill Tailings:             rate.
sponsors one. In 1992, a congressional      Cleanup Continues, but Future Costs
committee reported on variations in         Are Uncertain.                             RCED-96-40, Mar. 13, 1996 (44
the fees paid by sponsoring federal                                                    pages). Land Ownership: Information
agencies for management of the              For decades, uranium processing for        on the Acreage, Management, and Use
centers, the formulas used to calcu-        the nation's nuclear weapons and           of Federal and Other Lands.
late the fees, and the justifications for   energy programs continued to radio-
paying the fees provided by the             active contamination at 50 ore pro-        Data from the four primary agencies
sponsoring agencies. The committee          cessing sites and thousands of nearby      managing federal lands-the Forest
also indicated that because there were      areas. The Energy Department (DOE)         Service, the Bureau of Land Manage-
no governmentwide gujdelines for            now expects to spend more than $2.4        ment, the Fish and Wildlife Service,
setting the fees, evaluating their          billion during the next 20 years to        and the National Park Service-show
reasonableness was difficult. This          clean up surface and groundwater           that the total acreage under their
report provides information on federal      contamination at the sites. Various        control decreased from about 700
policies and practices governing the        factors could affect the future federal    million acres to 622.8 million acres
fees pair by DOE, DOD, and NASA for         costs and ultimate completion dates        between 1964 and 1994. Nearly 44
managing the centers.                       of the cleanups. These factors include     percent of the 622.8 million acres



GAO/OIMC-97-1A Subject llldex               Page 144
were managed primarily for conserva-      efficiency. Industry representatives      RCED-96-47, Jan. 11, 1996 (41
tion and had some limitations on their    also report positive results from this    pages). Measuring Perfonnance: The
use. As of September 1994, the federal    approach. Nonetheless, drawbacks          Advanced Technology Program and
government had obtained rights-of-use     exist. For example, performing            Private-Sector Funding.
for about 3 million acres of nonfederal   integrated inspections and promoting
land. The federal govenunent held         pollution prevention require inspec-      The Advanced Technology Program,
about 52.3 million acres in trust for     tors to have more expertise. Each of      which is run by the National Institute
Indians in 1995. Thirteen western         the three states has found it difficult   of Standards and Technology, seeks to
states owned a total of about 142         to fund its multimedia activities         provide support on a cost-sharing
million acres. Three nonprofit orgarti-   through the Environmental Protection      basis for industrial research and
zations-the Nature Conservancy, The       Agency's (EPA) grants for medium-         development projects-projects that
Conservation Fund, and The Trust for      specific programs. Although EPA has       have a significant potential for
Public Land-transferred about 3.2         worked with these states to resolve       stimulating economic growth and
million acres to other public and         the funding problems, the extensive       improving the competitiveness of U.S.
private groups between 1964 and           negotiations that were required could     industry. Federal funding for the
1994. GAO sununarized this report in      discourage other states from adopting     program has soared, from $68 million
testimony before Congress; see:           multimedia initiations. A new grant       in flSCal year 1993 to $341 million in
Federal Lands: Infonnation on the         program proposed by EPA holds the         flSCal year 1995. Recent budget
Acreage, Management, and Use of           potential for resolving such funding      proposals, however, have sought to
Federal and Other Lands, by Barry T.      and reporting issues.                     eliminate funding for the program in
Hill, Associate Director for Energy,                                                flSCaI year 1996. GAO's survey of
Resources, and Science Issues, before     RCED-96-42, Jan. 23, 1996 (31             program applicants found that the
the Subcommittee on National Parks,       pages). Water Pollution: Differences      program funds both projects that
Forests, and Lands, House Committee       Among the States in Issuing Permits       would have been funded in its ab-
on Resources. GAOrr-RCED-96-104,          Limiting the Discharge of Pollutants.     sence and projects that would not
Mar. 21 (7 pages).                                                                  have been funded. In addition, the
                                          The Environmental Protection Agency       program achieves other goals, such as
RCED-96-41, Jan. 31, 1996 (18             (EPA) has issued national guidance        aiding the formation of joint ventures
pages). Environmental Management:         and regulations to help the states        and helping comparties achieve
An Integrated Approach Could Reduce       establish standards to protect water      research milestones faster. These
Pollution and Increase Regulatory         quality and issue permits to facilities   results should be considered together
Efficiency.                               to limit the discharge of pollutants.     when assessing the program's impact.
                                          Although the Clean Water Act requires
The nation's environmental programs       all states to adopt water quality         RCED-96-49, Jan. 22, 1996 (21
have traditionally sought to control      standards, EPA authorizes qualified       pages). Agricultural Marketing: U.S.
the amount of pollution released to a     states to issue penn its. Currently, 40   Cotton Market Before and After
specific medium- air, water, or land.     states have obtained such authority; in   Import Assessments.
Although these programs have pro-         the remaining 10 states, EPA regional
duced environmental benefits, con-        offices issue the permits. In issuing     The cotton check-off program, which
cerns have been raised that the           the pennits, the states and EPA may       has coUected assessments on domes-
medium-specific approach encourages       impose limits on the discharges of        tic cotton since 1967, is intended to
"end-of-the-pipe" pollution controls to   specific pollutants, require the          strengthen cotton's competitive
treat, store, or dispose of waste,        facilities to monitor the levels of       position relative to synthetic fibers
rather than encouraging pollution         pollutants they discharge, or deter-      and maintain and expand domestic
prevention. Massachusetts, New York,      mine that no controls are warranted.      and foreign markets for U.S. cotton.
and New Jersey have experimented          This report (1) detennines whether        The program's promotion efforts have
with multimedia, or integrated,           differences exist in whether and how      probably contributed to cotton's
approaches to environmental manage-       the states and EPA control pollutants     growth in the U.S. market. In addition,
ment as alternatives to the traditional   in the discharge pennits they issue,      the U.S. consumption of cotton and
medium-specific approach. Although        (2) identifies the causes of any          the import share of the U.s. cotton
the three states have not fully as-       differences, and (3) provides infonna-    market continued to increase follow-
sessed the effectiveness of integrating   tion on EPA's oversight of the states'    ing the imposition of the assessment
environmental management, this            water quality standards and policies.     on imported textiles and apparel. The
approach shows potential for reducing                                               value of this assessment-about one-
pollution and increasing regulatory                                                 half cent for a man's cotton shirt-is




                                          Page 145                                           GAO/OIMC-97-IASubject Index
unlikely to slow consumer demand for      force; and (3) compares GAO's             cost neutral. To ensure cost neutral-
cotton. Furthermore, this assessment      estimate of the Fund's economic net       ity, the act requires the Agriculture
is in accord with U.S. international      worth with the estimate prepared for      Department and the state of Minne-
trade agreements. Although the            FHA by Price Waterhouse.                  sota to agree upon methodologies for
Agriculture Department has created                                                  estimating what the costs of the Food
an administrative framework for           RCED-96-52, Apr. 22, 1996 (9 pages).      Stamp Program for both benefits and
assessing imported cotton, two major      Property Disposition: HUD's Dlinois       administration would have been had
issues raised by importers have yet to    State Office Incurred Unnecessary         there been no project. This report (1)
be resolved The first of these is-        Management Expenses.                      describes the methodologies that
sues--double payments on assess-                                                    Minnesota agreed to use for estimat-
ments--may be addressed by current        Although the Department of Housing        ing Food Stamp Program costs that
efforts to identify foreign mills that    and Urban Development (HUD)               would have been incurred if the
use large amounts of U.S. cotton. The     cannot control all the costs associated   project had not been implemented; (2)
second issue, however, is harder to       with buying and selling foreclosed        determines if Minnesota implemented
resolve-the extent of the Cotton          single-family properties, it can avoid    these methodologies; (3) assesses the
Board's oversight over Cotton Incor-      or minimize some of the costs of          reasonableness of these methodolo-
porated. Although steps are being         managing them. GAO reviewed HUD's         gies, as implemented, for estimating
taken to ~ddress this matter, such        Single-Family Property Disposition        the cost of the Food Stamp Program
efforts de> not deal with importers'      Program in the Dlinois State Office       for fiscal year 1994; and (4) compares
lack of representation on Cotton          and found that the Dlinois State Office   the payments that would have been
Incorporated's board of directors.        had spent thousands of dollars            paid to Minnesota using the agreed-
                                          unnecessarily on water and sewer          upon methodologies with the actual
RCED-96-50, Apr. 12, 1996 (42             services, as well as for tax penalties,   payments in fIScal year 1994.
pages). Mortgage Financing: FHA Has       lost properties, and increased costs to
Achieved Its Home Mortgage Capital        recover properties from the new           RCED-96-56, Jan. 26, 1996 (22
Reserve Target.                           owners. Nationwide, HUD could be          pages). Nuclear Waste: Management
                                          wasting large amounts of money. GAO       and Technical Problems Continue to
Borrowers with mortgage IOarlS            supports efforts by the Dlinois State     Delay Characterizing Hanford's Tank
insured by the Federal Housing            Office to better track unpaid taxes,      Waste.
Administration (FHA) pay insurance        which would help avoid future tax
premiums, which are deposited into        liens and lost properties.                Delays in determinIng the specific
the Department of Housing and Urban                                                 nature of radioactive waste stored in
Development's Mutual Mortgage             RCED-96-54, Feb. 12, 1996 ( 14            underground tanks at the Energy
Insurance Fund. FHA-insured Fund          pages). Food Stamp Program: Achiev-       Department's (DOE) Hanford site
mortgages were valued at about $305       ing Cost NeutraJity in Minnesota's        could drive up costs beyond the
billion as of September 1994. Although    Family Investment Program.                current $36 billion and jeopardize the
the Fund has traditionally been self-                                               development of effective treatment
sufficient, it began to suffer substan-   In 1994, Minnesota began a five-year      processes and facilities. Some of the
tial losses during the 1980s, mainly      federally authorized welfare reform       Hanford tanks have leaked, and others
because foreclosures on single-family     project known as the Minnesota            hold potentially flammable waste.
homes supported by the Fund were          Family Investment Program. Aimed at       Characterization, the first major step
high in areas experiencing difficult      simpJifying the welfare system, the       in cleaning up tank wastes, involves
times economically. To help place the     project consolidates the food assis-      detemlining the contents of the tanks
Fund on a financially sound basis,        tance and the cash benefits provided      through sampling and other means.
legislative reforms, such as requiring    by three programs-Aid to Families         Westinghouse Hanford Company,
FHA borrowers to pay more in              With Dependent Children, the Food         DOE's contractor, has yet to charac-
premiunls, were made in November          Stamp Program, and Minnesota's            terize any of the 177 Hanford tanks
1990. This report (1) estimates, under    Family General Assistance Program-        sufficiently to declare them ready for
different economic scenarios, the         into a single monthly payment. The        remediation. In addition, DOE did not
Fund's economic net worth as of the       Food Stamp Act of 1977 requires that      meet its commitment to the Defense
end of fIScal year 1994; (2) assesses     the federal government spend no           Nuclear Facilities Safety Board to
the Fund's progress in achieving the      more for this project's food assistance   characterize the 54 tanks with known
legislatively mandated capital reserve    component in any fiscal year than it      safety problems by October 1995.
ratio that expresses economic net         would have spent for the Food Stamp       Although many factors have contrib-
worth as a percentage of insurance-in-    Program. That is, the project must be     uted to the delays, two stand out.



GAO/OIMC-97 -lA Subject Index             Page 146
First, despite more than 10 years of       RCED-96-58R, Dec. 28, 1995 (II             New Mexico, and Texas). Before then,
effort, DOE and Westinghouse have          pages). Unsubstantiated DOE Travel         the 11,000 trucks crossing daily from
had difficulty resolving such basic        Payments.                                  Mexico into the United States were
questions as how to take reliable top-                                                limited to commercial zones along the
to-bottom samples from the tanks and       Since the Secretary of Energy took         border. GAO found that Mexico and
how to reconcile conflicting informa-      office, she has taken more than 100        the United States had made progress
tion about a tank's contents. Second,      domestic and foreign trips. Because of     in developing compatible trucking
DOE and Westinghouse have not had          concerns about the extent of her trips     regulations. Compatibility is essential
effective management systems for           as well as their expense, GAO re-          because existing differences in the
detecting and addressing problems          viewed the Energy Department's             two nations' trucking regulations,
with the characterization program. In      (DOE) expenditures for selected            operating practices, and enforcement
some cases, managers were unaware          foreign trips. GAO found that DOE          efforts could affect highway safety
of technical and safety problems; in       lacked written procedures at the time      and harm the infrastructure. Compat-
others, they know about problems for       of these trips that specified either the   ibility in some trucking regulations,
a long time before taking action.          types of records to be kept or the         such as those on vehicle size and
                                           process to follow in obtaining support     weight, may never be reached;
RCED-96-57, Apr. 12, 1996 (44              for foreign travel from U.S. embassies.    therefore, the host country's regula-
pages). DOE Management: DOE                During GAO's audit of the Secretary's      tions must be complied with, and
Needs to lmprove Its Analysis of           trip to India, DOE officials could not     enforcement is the key for ensuring
Carryover Balances.                        provide records to substantiate about      compliance. The four U.S. border
                                           $80,000 of DOE's total cost of             states' readiness for enforcement
In recent years, Congress has reduced      $730,000. In addition, DOE inappropri-     varies widely. Te.xas faces the great-
the Energy Department's (DOE)              ately shifted the source of funding for    est enforcement burden but has
budget request for new obligational        some security travel costs from one        relatively limited resources- enforce-
authority and has recommended that         appropriation account to another           ment personnel and facilities-to
DOE use balances remaining from            during fiscal year 1995. DOE has           cope with increasing truck traffic
prior years' obligational authority that   taken several steps, including efforts     from Mexico. In addition to the
are carried over into the new fiscal       to substantiate all travel payments,       northbound traffic entering the four
year. DOE had $12 billion in such          and Congress has clarified which           U.S. border states, southbound and
"carryover balances" from prior years      appropriation DOE is to use for            east-west traffic will add to their
as it began fiscal year 1995. In fiscal    security travel costs. GAO summa-          enforcement burden.
year 1995, DOE used nearly $1 billion      rized this report in testimony before
in carryover balances to supplement        Congress; see: Energy Management:          RCED-96-63, Mar. 21, 1996 (26
its $18 billion in new obligational        Some Unsubstantiated Payments for          pages). Air Pollution: Limited New
authority. Although DOE needs some         the Secretary's Foreign Travel, by         Data on Inspection and Maintenance
carryover balances to pay for commit-      Victor S. Rezendes, Director of            Program's Effectiveness.
ments made in prior years that have        Energy, Resources, and Science
not yet been completed, the agency's       Issues, before the Subcommittee on         The Environmental Protection Agency
large and persistent carryover bal-        Oversight and Investigations, House        (EPA) issued a new rule in November
ances have raised concerns within          Committee on Commerce. GAOff-              1992 requiring 83 of the most seri-
DOE and Congress that the agency is        RCED-96-59, Jan. 4 (7 pages).              ously polluted areas in 23 states to
carrying balances that exceed the                                                     implement more-stringent programs
minimum needed to support its              RCED-96-61, Feb. 29, 1996 (49              to test for and reduce vehicle emis-
programs. This report discusses            pages) . Commercial Trucking: Safety       sions. EPA data collected before
whether (1) DOE has an effective           and Infrastructure Issues Under the        November 1992 suggested that test-
approach to identify the carryover         North American Free Trade Agree-           and-repair networks, in which inspec-
balances that exceed its programs'         ment.                                      tor/mechanics in the testing stations
requirements and may be available to                                                  were allowed to make repairs, were
reduce its budget request and (2)          According to the North American Free       less effective in controlling emissions
opportunities exist to develop a better    Trade Agreement (NAFTA), the U.S.-         than were test-only networks. Conse-
approach for analyzing these               Mexican border was to be opened in         quently, EPA decreased by 50 percent
carryover balances.                        December 1995 for increased com-           the number of credits assigned to test-
                                           mercial truck traffic within the border    and-repair networks. Test-only
                                           states in each country- four in the        networks continued to receive full
                                           United States (Arizona, California,        credit. Some states and other inter-



                                           Page 147                                            GAO/OIMC·97 -1A Subj ect Index
ested parties questioned the adequacy     to be diagnosed by medical specialists    Under the law, parties responsible for
of the supporting data behlnd the 50-     at distant urban hospitals. Some          the release of hazardous substances
percent decrease. This report dis-        states have already taken steps to        are liable for any resulting il\jury to
cusses (1) the results of any audits,     make these services more widely           natural resources, such as wildlife and
surveys, or studies done since Novem-     available. This report focuses on (1)     groundwater. Federal agencies, state
ber 1992 that have a bearing on this      how three states-Iowa, Nebraska,          governments, and tribal authorities
decrease and (2) the status of EPA        and North Carolina-have encouraged        have been designated natural resource
efforts to provide states greater         private investment in improving their     trustees and are authorized to make
flexibility in designing more-stringent   telecommunications infrastructure,        claims against responsible parties for
testing programs.                         (2) how they have provided for            natural resource damages. As of April
                                          increased and more-affordable access      1995, relatively few claims had been
RCED-96-67, May 3, 1996 (27 pages).       to advanced telecommunications            settled and their amount was small
Public Housing: HOD Takes Over the        services, and (3) what lessons their      compared with the cost of clearting up
Housing Authority of New Orleans.         experiences could hold for others.        sites, but some recent claims have
                                                                                    been quite sizable. These large claims
Operating more than 13,000 housing        RCED-96-70FS, Mar. 20, 1996 (25           have heightened concern over the
units and providing homes to nearly       pages). Superfund: How States             potential for future claims. This report
25,000 people, the Housing Authority      Establish and APPly Environmental         (1) provides information on the
of New Orleans is one of the largest      Standards When Cleaning Up Sites.         potential for future federal natural
public housing authorities in the                                                   resource damage claims, (2) deter-
country. For nearly two decades,          One issue being raised as part of the     mines total funds that federal agen-
however, New Orleans has been one         debate over Superfund reauthorization     cies have collected from natural
of the nation's poorest performing        is whether to revise or eliminate the     resource damage settlements and how
housing authorities. Moreover, its        requirement that hazardous waste site     these funds have been used, and (3)
performance has improved only             cleanups comply with federal and          describes the procedures that federal
marginally in recent years, despite       state standards protecting public         agencies use to set the amount of
federal grants, hands-on management       health and the environment. Among         damage claims.
assistance from professional property     these standards are numeric limits on
managers, and the personal involve-       the concentrations of toxic chemicals     RCED-96-72, Mar. 20, 1996 (35
ment of the Secretary of the Depart-      in the environment. Those responsible     pages). Nuclear Waste: Nevada's Use
ment of Housing and Urban Develop-        for cleaning up Superfund sites have      of Nuclear Waste Grant Funds.
ment (HUD). This report discusses the     raised concerns that complying with
(1) major operational problems at the     these standards can result in more-       The law prohibits Nevada from using
Housing Authority of New Orleans, (2)     extensive and costlier cleanups than      its nuclear waste grant funds for
underlying causes of these problems,      necessary to safeguard public health.     lobbying, litigation, and certain
and (3) steps HOD has taken to            This report discusses whether states,     multistate activities. Yet GAO found
improve the performance of the            (1) when setting numeric standards,       that Nevada had used this money to
Housing Authority of New Orleans          based them on estimates of the human      advance, on a national stage, its
and what success these measures           health risks posed by exposure to         opposition to a repository at Yucca
have had.                                 contaminants and (2) when using such      Mountain. In one case, a videotape
                                          standards, provided the flexibility to    produced by a contractor was in-
RCED-96-68, Mar. 12, 1996 (49             acljust the level of cleanup prescribed   tended to influence legislation pend-
pages). Telecommunications: Initia-       by the standards to take into account     ing before Congress. In another case,
tives Taken by Three States to Pro-       the conditions and risks found at         Nevada's use of grant funds to under-
mote Increased Access and Invest-         individual hazardous waste sites. GAO     write a multistate tour in 1993 was
ment.                                     also discusses the degree of corre-       inappropriate because the main goal
                                          spondence between the state and           of the tour appeared to be to generate
Advances in telecommunications can        federal standards governing the           public opposition in other states to
improve the public's access to various    cleanup of groundwater that could be      the repository project. Until 1992, the
services regardless of where they live.   a source of drinking water.               Energy Department (DOE) reviewed
For example, two-way communica-                                                     and approved the state's applications
tions can enable high-school students     RCED-96-71 , Apr. 16, 1996 (42            for grant funds and required the state
to participate in advanced science        pages). Superfund: Outlook for and        to give DOE periodic progress and
courses offered by other high school      Experience With Natural Resource          financial reports. Since then, DOE's
districts and patients at rural clinics   Damage Settlements.                       role in overseeing the state's grant has



GAOIOIMC-97-1ASubject Index               Page 148
diminished. The agency makes direct        codisposaJ landfill sites. Because          forgiven more than $6 billion in
grant payments to the state, and           EPA's data are incomplete, GAO's            unpaid principal and interest. More
Nevada must certify that the money         estimates are likely to be understated.     losses can be expected because 80
was spent in accordance with the law.                                                  percent of the $3 billion in outstand-
DOE has recovered about 575,000 of         RCED-96-79, Apr. 19, 1996 (81               ing loan principal is held by borrowers
the more than $1 million that GAO          pages). Airline Deregulation: Changes       who are delinquent or have had
previously reported as improperly          in Airfares, Service, and Safety at         difficulty repaying emergency or other
spent. DOE has decided that $670,000       Small, Medium-Sized, and Large              farm program loans. Although emer-
worth of expenditures was either           Communities.                                gency loans are inherently risky,
allowable or that it would not try to                                                  several lending policies have added to
recover the funds. DOE has no              The Airline Deregulation Act of 1978        the risk. For example, borrowers who
records of whether it ever decided to      phased out the federal government's         have received debt forgiveness on
recover the remaining $309,000 in          control over airfares and services,         past loans are not prohibited from
expenditures that GAO questioned.          relying instead on competitive market       obtaining new emergency loans. In
                                           forces to determine the price, the          addition, borrowers with minimal
RCED-96-75, Mar. 27, 1996 (10              quantity, and the quality of domestic       projected cash flows are eligible to
pages). Superfund: Number of               air service. In an earlier report (GAOl     obtain loans-as long as their ex-
Potentially Responsible Parties at         RCED-91-13), GAO indicated that             pected incomes equal their expected
Superfund Sites Is Difficult to Deter-     between 1979-the earliest year for          expenses, they qualify, and no cushion
mine.                                      which reliable data on fares are            is required for unforeseen problems.
                                           available-and 1988, the average fare        Besides having weak lending policies,
Parties responsible for contaminating      per passenger mile, adjusted for            the agency does not consistently
Superfund sites are liable for the costs   inflation, fell by nine percent at small-   implement lending policies designed
of cleaning them up. De minirnus           community airports, 10 percent at           to safeguard federal fmancial inter-
parties-those who have contributed         medium-sized-community airports,            ests. For example, the agency does
only a small amount of low-toxicity        and five percent at large-community         not always verify the accuracy of
waste at a location-can incur legal        aiIIlOrts. The largest decreases were       information in loan applications.
expenses that may exceed their share       at airports in the Southwest, regard-       Although crop insurance was gener-
of a site's cleanup costs. In addition,    less of the community's size. This          ally available, few recipients of
parties associated with municipal          report ( 1) updates GAO's analysis of       emergency loans took out coverage to
codisposal landfills-landfills that        airfare trends and (2) compares             protect their crops against the risk of
have received both municipal solid         changes in the quantity, the quality,       natural disaster. Instead, they relied
waste and industrial hazardous             and the safety of air service since         on the federal government for assis-
materials-can incur high legal             deregulation at airports serving small,     tance.
expenses when disputes over allocat-       medium-sized, and large communities.
ing costs arise at these sites. Congress   GAO summarized this report in               RCED-96-81, Mar. 27, 1996 (18
is now considering proposals that          testimony before Congress; see:             pages). Food Safety: New Initiatives
would provide relief from liability for    Domestic Aviation: Changes in               Would Fundamentally Alter the
site cleanup costs for de minirnus         Airfares, Service, and Safety Since         Existing System.
parties and parties associated with        Airline Deregulation, by John H.
municipal codisposaJ landfLlIs. GAO        Anderson, Jr., Director of Transporta-      In response to continuing outbreaks of
found that determining with any            tion and Telecommunications Issues,         food poisoning, Congress and federal
degree of certainty the munber of both     before the Senate Committee on              agencies are considering new ap-
types of parties is difficult because      Commerce, Science, and Transporta-          proaches to ensuring food safety. This
the Environmental Protection               tion. GAOrr-RCED-96-126, Apr. 25 (17        report discusses the federal food
Agency's data on the number of             pages).                                     safety system, particularly the current
parties at many sites are incomplete.                                                  responsibilities, budgets, staffing, and
On the basis of the limited informa-       RCED-96-80, Mar. 29, 1996 (29               workloads of the federal agencies
tion in EPA's database, GAO esti-          pages). Emergency Disaster Farm             involved and the changes in these
mates that as many as 25,000 de            Loans: Government's Financial Risk          areas since 1989, when GAO issued a
minirnus parties can be found at 175       Could Be Reduced.                           two-volume report on this subject
nonfederal Superfund sites and that as                                                 (GAOIRCED-91-19A and 19B). The
many as 40,000 potentially responsible     During the past seven years, the Farm       Food and Drug Administration (FDA)
parties Can be found at 245 nonfederal     Service Agency, under its emergency         and the Food Safety and Inspection
                                           disaster farm loan program, has             Service (FSIS), the lead agencies




                                           Page 149                                             GAO/OIMC-97-1A Subject Index
responsible for food safety, now rely      the Coast Guard's development of VTS       would require several changes to the
heavily on physical inspections to         2oo0? At ports being considered for        program to make it more market-like
prevent unsafe food from leaving           VTS 2000, to what extent do maJor          and efficient to run.
processing plants. Current proposals,      stakeholders support acquiring and
however, would shift the                   funding it? If maJor stakeholders do       RCED-96-90, May 17, 1996 (26
government's oversight role. Private       not support VTS 2000, to what extent       pages). National Park Service:
industry would become responsible          are they interested in acquiring and       Information on Special Account Funds
for identifying and controlling poten-     funding other VTS systems? What            at Selected Park Units.
tial hazards before they affected food     other issues could affect the establish-
products, while the government would       ment of VTS systems that are pri-          The national park system , which is
assess the effectiveness of each           vately funded? GAO summarized this         run by the Park Service, manages
plant's safety system. Such systems,       report in testimony before Congress;       nearly 370 units, including parks,
known as Hazard Analysis and Critical      see: Marine Safety: Current Status of      monuments, and historic sites. In
Control Point systems, are intended to     the VTS 2000 Program and Key               additional to annual appropriations,
identify the critical points in food       Stakeholders' Views on It, by Gerald       individual parks are allowed to keep
processing and establish controls to       L. Dillingham, Associate Director for      money from in-park activities and
prevent adulteration caused by             Transportation and Telecommunica-          accept other benefits from park
microbes, chemicals, or physical           tions Issues, before the Subcommittee      support groups or concessioners. The
hazards. Under the FDA and FSIS            on Coast Guard and Maritime Trans-         funds going to the parks from these
initiatives, such systems are to be up     portation, House Committee on              activities are not always subject to the
and running by 1997. Because of            Transportation and Infrastructure.         annual congressional appropriations
FDA's resources constraints and FSIS'      GAOIT-RCED-96-129, Apr. 25 (10             process. This report discusses (1) the
regulatory restrictions, however, the      pages).                                    sources and amounts of special
agencies are unlikely to inspect plants                                               account funds available throughout
on the basis of the risk they pose-        RCED-96-84, Apr. 22, 1996 (23              the Park Service system and, for a
even though this was recommended           pages). U.S. Forest Service: Fee           sample of parks, the amount of
by the National Academy of Sciences.       System for Rights-of-Way Program           special account funds that were
                                           Needs Revision.                            available to each of them and (2)
RCED-96-83, Apr. 22, 1996 (36                                                         whether the expenditures of funds in
pages). Marine Safety: Coast Guard         The Forest Service needs to update its     special accounts were consistent with
Should Address Alternatives as It          fees to reflect fair market value for      the purposes for which those ac-
Proceeds With VTS 2000.                    rights-of-way used by operators of oil     counts were established.
                                           and gas pipelines, power lines, and
Currently, the U.S. Coast Guard and        communications lines. In most cases,       RCED-96-92, Mar. 28, 1996 (91
private entities operate radar-based       nonfederallandowners charge higher         pages). Agricultural Research:
vessel traffic service (VTS) in several    fees for similar rights-of-way. To         Information on Research System and
U.S. ports. A VTS system employs           determine fees on the basis of fair        USDA's Priority Setting.
remote surveillance sensoIS, such as       market value, the Forest Service has
radar or closed-circuit television, that   several options, some of which have        For more than a century, U.S. agricul-
relay information on maritime traffic      advantages and disadvantages. The          tural research, education, and exten-
conditions to VTS personnel, who           initial cost of developing a new fee       sion activities have been maJor
pass it on to mariners and the mari-       system could be substantial because        catalysts in creating a vigorous
time industry by radio. The purpose of     of the need to do appraisals and           agricultural economy and a plentiful,
these systems is to improve the safe       collect the market data to establish       )ow-cost supply of food and fiber.
and efficient movement of ships            fair market value. These costs could       Although each has its own purpose-
around ports and to protect the            be mitigated, and in some instance         research, to discover solutions to food
environment. The Coast Guard is            negated, with administrative improve-      and agriculture problems; education,
considering installing VTS systems in      ments to the program. Given the tight      to formally teach future farmers and
as many as 17 ports. The federal           budgets at federal land management         others in the food and agricultural
government will spend as much as           agencies today, one option appears to      sector, and extension, to disseminate
$310 million to build the proposed         be particularly advantageous: obtain-      the results of agricultural research
expansion, known as VTS 2000, and          ing Site-specific appraisals that are      and other information to the public-
about $42 million annually to operate      paid for by the users of rights-of-way.    the functions are closely linked. The
it. The report answers the following       However, implementing this option          Agriculture Department (USDA) spent
four questions: What is the status of                                                 more than $2 billion in fiscal year



GAO/OlMC-97 -IA Subject Index              Page 150
1994 to support its agricultural           Robinson, Director of Food and            sold and harvested from these federal
research, education, and extension         Agriculture Issues, before the Sub-       timberlands has fallen because of
system. This report (1) provides an        committee on Human Reso urces and         increased efforts to protect habitat for
overview of the system, (2) provides       Intergovernmental Relations, House        threatened and endangered species
the views of users of agricultural         Committee on Government Reform            and to achieve a better balance of
research on the extent to which USDA       and Oversight. GAOIT-RCED-96-185,         multiple resource uses. The costs of
and the land grant universities are        May 23 (nine pages).                      federal timber sale programs have not
meeting their research needs and on                                                  decreased proportionately, however,
the effectiveness with which research      RCED-96-103, Apr. 3, 1996 (27             and recent studies have suggested
results are being disseminated, and        pages) . Economic Development:            that some states run their timber sale
(3) assesses USDA processes for            Limited Information Exists on the         programs at less cost than do federal
planning and establishing research         Impact of Assistance Provided by          agencies. This report compares the
priorities.                                Three Agencies.                           timber sale programs of the two
                                                                                     federal agencies with those of the
RCED-96-96, May 8, 1996 (29 pages).        The Appalachian Regional Commis-          states. GAO identifies (1) the mllior
Food Safety: Information on                sion, the Commerce Department's           differences among the timber pro-
Foodbome Dlnesses.                         Economic Development Administra-          grams of the Forest Service's Pacific
                                           tion, and the Tennessee Valley            Northwest Region, the Bureau of Land
Because most cases of foodhome             Authority are three of the federal        Management, and Oregon and Wash-
illness go unreported, existing data       agencies whose programs provide           ington and (2) the effect of these
may understate the extent of the           economic development assistance to        differences on the agencies' planning
problem. However, the best estimates       local communities. Recent congres-        processes.
indicate that millions of Americans        sional debate has centered on the
become sick and thousands die each         impact of the economic development        RCED-96-109, July 3, 1996 (80
year because of contaminated food.         aid provided by these three agencies      pages). Bureau of Reclamation:
Moreover, public health officials          and the "performance ratios· they         Information on Allocation and Repay-
believe that the risk of foodbome          calculate-a comparison of the total       ment of Costs of Constructing Water
illnesses has been on the rise during      dollars invested or planned for an        Projects.
the past 20 years. The precise cost of     economi.c development project with
foodbome illnesses is unknown, but         the dollars contributed by the agency     The federal government has spent
recent estimates place the cost as         itself. The performance ratio is seen     nearly $22 billion to build 133 water
high as $22 billion annually. Accord-      as a measure of the extent to which       projects in the west that provide
ing to Department of Agriculture           other federal, state, local, or private   water for various purposes, including
estimates, the cost of medical treat-      sector investment is attracted to a       irrigation. The beneficiaries of these
ment and lost productivity related to      project as a result of the agency's       projects are generally required to
foodbome illnesses from seven of the       investment. This report (1) reviews       repay the federal government their
most harmful bacteria approached $10       studies that evaluate the impact of       allocated share of the construction
billion in 1993. Public health and         economic development of these three       costs. However, as a result of various
safety officials believe that current      agencies' programs and (2) deter-         forms of fmancial assistance provided
data on foodbome illnesses do not          mines how the perfonnance ratios          by the federal government, some
provide a complete picture of the risk     used by the three agencies were           beneficiaries repay considerably less
level and do not sufficiently describe     calculated.                               than their full share of these costs.
the sources of contamination and the                                                 Among the beneficiaries, irrigators
populations at greatest risk. In 1995,     RCED-96-108, May 23, 1996 (16             generally receive the largest amount
federal and state agencies began to        pages). Public Timber: Federal and        of such financial assistance. This
collect more uniform and comprehen-        State Programs Differ Significantly in    report describes the (1) types of
sive data across the country. Because      Pacific Northwest.                        fmancial assistance received by
of budget constraints, federal officials                                             irrigators participating in the federal
are concerned that they may not be         The Bureau of Land Management and         water projects built by tbe BW'eau of
able to continue t his effort long         the Forest Service manage 12.5            Reclamation or for which the Bureau
enough to collect meaningful trend         million acres of timberland in Oregon     has water marketing responsibilities
data. GAO summarized this report in        and Washington. This acreage ac-          and (2) amount of these water
testimony before Congress; see: Food       counts for nearly 38 percent of the       projects' construction costs allocated
Safety: Reducing the Threat of             available timberland in those states.     to irrigators and their repayment of
Foodbome Dlness, by Robert A               In recent years, the volume of timber     these costs.



                                           Page lSI                                           GAO/OIMC-97 -lA Subject Index
RCED-96-113, May 23, 1996 (68               may be able to achieve further savings   RCED-96-123, Aug. 13, 1996 (120
pages). Disaster Assistance: lmprove-       by closing or consolidating county       pages). Homeo"nership: FHA's Role
ments Needed in Determining Eligibil-       offices.                                 in Helping People Obtain Home
ity for Public Assistance.                                                           Mortgages.
                                            RCED-96-121, June 27, 1996 (64
The Federal Emergency Management            pages). Motor Fuels: Issues Related      Many changes have occurred in the
Agency's (FEMA) public assistance           to Reformulated Gasoline, Oxygen-        single-family housing finance system
program funds the repair of public and      ated Fuels, and Biofuels.                since the Federal Housing Administra-
private nonprofit facilities, such as                                                tion (FHA) was established in the
roads, government buildings, utilities,     GAO was asked to summarize the           1930s to insure housing loans made by
and hospitals, that are damaged             results of studies on the cost effec-    private lenders. These changes
during natural disasters. Under the         tiveness of using reformulated gaso-     include the advent of modern private
program, FEMA has spent more than           line (a process in which oxygenates or   mortgage insurance, the emergence of
$6.5 billion for disasters that occurred    ethanol is added to gasoline to          a secondary mortgage market, and
during fiscal years 1989-94. This           enhance combustion and reduce            various public- and private-sector
report (1) reviews FEMA's criteria for      automotive emissions); the results of    initiatives to expand affordable
determining eligibility for public          studies estimating the potential for     housing for home buyers. Critics of
assistance, (2) examines how FEMA           oxygenates to reduce petroleum use;      FHA argue that other housing fmance
ensures that public assistance money        and ongoing federal research into        entities, such as private mortgage
is spent only for eligible items, and (3)   biofuels. Studies by the Environmen-     insurers, are filling the role FHA once
discusses changes in eligibility that       tal Protection Agency (EPA), the         filled exclusively. Supporters of FHA
could lower the costs of public             American Petroleunl Institute, and       contend that its single-family pro-
assistance in the future.                   others suggest that reformulated         gram, which has insured about 24
                                            gasoline may be cost effective com-      million home mortgages since its
RCED-96-116, May 22, 1996 (12               pared to some automotive emission        inception, remains the only way for
pages). Commodity Programs:                 control measures but less cost           some families to become homeowners
Freedom-to-Fann Approach Will               effective than others. The methodolo-    and should be expanded. This report
Reduce USDA's Personnel Costs.              gies used and the results showing the    discusses (1) the tenus of the mort-
                                            cost effectiveness of the control        gage insurance offered by FHA,
Under the provisions of the n ew fann       measures for these studies vary          private mortgage insurers, and the
bill, fanners receiving federal support     significantly, making comparisons        U.S. Department of Veterans' Affairs;
will operate with fewer controls over       very difficult. About 305,000 barrels    (2) the characteristics of borrowers of
which crops to plant and how much           per day of the petroleum used to         insured mortgages and the overlap
acreage to put into production. This        produce gasoline will be potentially     between FHA-insured mortgages and
new approach is generically lmown as        displaced by oxygenates in the year      privately insured mortgages; and (3)
"freedom to fann." This report dis-         2000 and about 311,000 barrels per       other methods used by the federal
cusses the personnel reductions that        day in 2010 according to projections     government to promote affordable
could have been achieved by imple-          of oxygenate use. The Department of      homeownership.
menting the freedom-to-fann ap-             Agriculture (USDA) is focusing
proach set forth in H.R. 2195 and the       research primarily on reducing the       RCED-96-124, May 23, 1996 (22
proposed Balanced Budget Act. As the        cost of growing and converting           pages). Nuclear Waste: Greater Use
fann bill was ulrimately enacted,           agricultural feedstocks , such as com,   of Removal Actions Could Cut Time
personnel reductions at the Agricul-        into ethanol. Data from USDA and the     and Cost for Cleanups.
ture Department (USDA) will still be        Department of Energy indicate that
possible b ut probably to a lesser          research has lowered the cost to         Since 1989, the Energy Department
degree than would have occurred             produce ethanol from both cellulosic     (DOE) has received about $10 billion
under the original provisions. The new      biomass and from corn. Although          to clean up more than 10,000 waste
act adopted various provisions that         demand for corn for other purposes       sites nationwide that contain every-
changed some of the assumptions             may limit cost reductions in produc-     thing from highly radioactive waste to
USDA used to esrimate workloads and         ing ethanol from corn, the demand for    common industrial chemicals and
delayed crop insurance changes that         ethanol made from cellulosic biomass     solvents. So far, much of the money
will reduce USDA staffing needs. On         for use as an oxygenate and as an        has gone to study waste sites and
the other hand, if USDA reduces its         alternative fuel could rise signifi-     develop an approach for their
staffmg under the new fann bill, it         cantly.                                  remediation, rather than for actual
                                                                                     cleanup. DOE has been criticized for




GAO/OIMC-97-1A Subject Index                Page 152
its lack of progress in remediation at    the environmental laws, they could be       RCED-96-131, May 10, 1996 (31
the same time as its appropriations       liable for cleaning up the contamina-       pages). Transportation Infrastructure:
for environmental restoration have        tion. Proposed legislation (S. 1285)        Central Arterytrunnel Project Faces
declined. In some cases, DOE has          would encourage local governments           Financial Uncertainties.
successfully placed more emphasis on      to redevelop brownfields by address-
remediation and less on planning by       ing two barriers to redevelopment:          At a cost of more than $1 billion per
using "removal actions: which             liability under the Superfund legisla-      mile, the Central Arterytrunnel
shorten or eliminate some of the steps    tion and the costs to assess sites. The     project-an Interstate Highway
normally required before remediation      bill would protect lenders and prop-        System project in Boston, Massachu-
can begin. Removal actions have been      erty purchasers from some Superfund         setts-ranks as one of the largest,
used for treating groundwater and         liability and would help with the costs     most complex, and expensive high-
surface water, excavating and dispos-     of assessing the sites by providing         way construction projects ever
ing of contaminated soil, and leaving     interest-free loans of $100,000 per         undertaken. About $4.7 billion in
waste in place and covering it with a     year, up to a total of $200,000 per site,   federal and state money has been
protective barrier. Removal actions       that local governments would be             obligated so far, but this amount is
have also been used at federal facili-    permitted to use to cover these costs.      less than half of the more than $10
ties to deal with emergencies, such as    This report discusses (1) what the          billion that will likely be needed to
removing leaking barrels that threat-     universe of potential brownfield sites      complete the project. To date, about
ened to contaminate the Colwnbia          is nationwide, (2) what legal barriers      86 percent of the funding for the
River. GAO concludes that more            Superfund presents for redeveloping         Central Arterytrunnel project has
extensive use of removal actions          brownfields, and (3) whether the            come from federal sources. This
would speed the planning process and      proposed loans to local governments         report evaluates (1) the estimated
allow DOE to devote more environ-         are likely to be enough for conducting      total cost of the Central Arteryffunnel
mental restoration dollars to site        site assessments.                           project and (2) the plans of the
remediation. GAO recognizes that not                                                  Commonwealth of Massachusetts for
every waste site is appropriate for the   RCED-96-130, Apr. 15, 1996 (8               financing it.
abbreviated planning that takes place     pages). Airport and Airway Trust
under removal actions; however, the       Fund: Effects of the Trust Fund             RCED-96-136, May 6, 1996 (24
successful use of removal actions at a    Taxes' Lapsing on FAA's Budget.             pages). Emergency Relief: Status of
variety of environmental restoration                                                  the Replacement of the Cypress
sites throughout the DOE complex          The Airport and Airway Trust Fund           Viaduct.
suggests that additional opportunities    was fmanced from taxes on domestic
exist to employ this cost- and time-      and international airline travel,           The Loma Prieta earthquake struck
saving approach.                          domestic cargo sent by air, and             northern California in October 1989,
                                          noncommercial aviation fuels. Al-           causing severe damage to the San
RCED-96-125, June 17, 1996 (15            though these taxes expired at the end       Francisco and Oakland area. In
pages). Superfund: Barriers to            of 1995, there is enough money in the       Oakland, the earthquake caused a
Brownfield Redevelopment.                 Trust Fund to pay for its portion of        two-tiered portion of Interstate 880
                                          the Federal Aviation Administration's       know as the Cypress viaduct to
In recent decades, the decline of         (FAA) fiscal year 1996 budget. FAA          collapse, killing 42 people. Because
manufacturing in many cities has left     estimates that with no tax receipts,        the viaduct was a key part of the
a legacy of abandoned and idled           the Trust Fund money available at the       area's transportation system its
                                                                                                                   I


factories commonly known as               end of fiscal year 1996 would total         destruction resulted in severe conges-
ubrownfields, which are sometimes
             II                           $600 million. FAA also estimates that       tion, mobility problems, and financial
contaminated with hazardous wastes.       the taxes must be reinstated no later       losses. Six and one-half years after the
The high cost of cleaning the sites up    than December 1996 to enable the            earthquake, the replacement of the
in accordance with federal and state      Trust Fund to fmance $6. 1 billion of       viaduct is still not complete. This
environmental laws has deterred           FAA's $8.1 billion fiscal year 1997         report discusses the (1) status of
some new businesses from locating in      budget as requested, with the General       construction, expected completion
brownfields, which, in rum, has           Fund paying for the rest. For each full     date, and reasons for any delays; (2)
deprived inner city neighborhoods of      month beyond December 1996 that             estimated cost of the project and
tax revenue and employment opportu-       passed with no tax receipts, an             reasons for any cost growth; and (3)
nities. Lenders and developers are        additional $550 million would be            guidance governing the Federal
often wary of investing in such           needed from the General Fund to             Highway Administration's use of
contaminated property because under       fmance FAA's fiscal year 1997 budget.       emergency relief funds.




                                          Page 153                                             GAO/OIMC-97 -lA Subject Index
RCED·96·141 , June 26, 1996 (32           billion is needed to bring the corridor    RCED·96·147, May 14, 1996 (19
pages). Energy Research: Opportuni·       up to a state of good repair. This         pages). Los Angeles Red Line:
ties Exist to Recover Federal1ovest·      report describes the (I) relative use of   Financing Decisions Could Affect This
ment in Technology Development            the corridor by Amtrak and the             and Other Los Angeles County Rail
Projects.                                 commuter and freight railroads, (2)        Capital Projects.
                                          sources of funding to operate and
The Energy Department (DOE)               maintain the corridor, and (3) armual      The federal government has agreed to
participates with the private sector in   funding required to keep the corridor's    pick up the tab for about half of the
many cost-shared technology develop-      infrastructure in a good state or repair   $5,5 billion in fmal design and con·
ment programs. A major objective of       and continue capital improvements at       struction costs for the Red Line
these programs is to promote the          their historical rate.                     subway project in Los Angeles. The
development and commercialization                                                    23.4-mile Red Line project consists of
of more-efficient, environmentally        RCED·96·146, July 16, 1996 (64             three segments, which are in varying
attractive, and affordable technologies   pages). Nuclear Waste: Uncertainties       states of completion. This report
that will better utilize the nation's     About Opening Waste Isolation Pilot        reviews (I) the project's estimated
energy resources and enhance oppor·       Plant.                                     cost and (2) the Los Angeles County
tunities for domestic economic                                                       Metropolitan Transportation
growth and employment. This report        The Energy Department (DOE) hopes          Authority's fmancing plans. GAO also
(1) determines the extent to which        to begin disposal of nuclear waste in      provides information on the Federal
DOE requires repayment of its invest·     New Mexico in 1998 but first must          Transit Administration's oversight of
ment in cost·shared technology            obtain a certificate of compliance         the project's quality control and
development, including the similari·      with regulations for disposal of           quality assurance practices.
ties and differences in the mecha·        radioactive waste from the Environ·
nisms used, and (2) weighs the            mental Protection Agency. Because of       RCED·96·150, June 7, 1996 (31
advantages and the disadvantages of       unresolved issues involving this           pages). Federal Facilities: Consistent
repayment. GAO focuses on four DOE        certificate, GAO believes that the         Relative Risk Evaluations Needed for
offices-Fossil Energy, Energy             prospects for opening the waste            Prioritizing Cleanups.
Efficiency and Renewable Energy,          isolation pilot plant by the target date
Environmental Management, and             are uncertain. Looking farther into the    Both the Environmental Protection
Nuclear Energy-because they fund          future, DOE estimates that it will cost    Agency (EPA) and federal agencies
most of DOE's costrshared technology      about $11 billion over several decades     that own or operate seriously con·
development programs and projects         to develop and operate the facilities      taminated facilities help assign
involving contracts and cooperative       and equipment needed to prepare            priorities for cleanup under regula·
agreements.                               transuranic waste for shipment to and      tions of the Superfund program. GAO
                                          disposal in the plant. DOE also plans      found that the Superfund program
RCED·96·144 , June 27, 1996 (45           to spend nearly 58 billion on waste        does not fully and consistently
pages). Northeast Rail Corridor:          transportation and disposal operations     identify the most contaminated
lnformation on Users, F\mding             at the plant over a 35-year period.        federal facilities as the highest
Sources, and Expenditures.                How soon these facilities will be up       priorities for clean ups. Some federal
                                          and running will depend in great           agencies have not finished identifying
The Northeast Corridor-the 46()..rnile    measure on DOE's ability to obtain         the universe of contaminated facilities
railway route between Washington,         funding in a period of budgetary           and preliminarily assessing the extent
D.C., and Boston-serves more than         constraints. Delays in developing          of their contamination. 10 addition,
100 million passengers each year and      these facilities could force DOE to        EPA regions have not completed their
is a transportation linchpin for eight    extend the period for shipping the         eva! uations of the facilities that the
states and the District of Columbia       waste to the plant and store the waste     agencies have reported to them, and
From 1988 through 1993, Amtrak and        in the repository beyond 35 years.         EPA headquarters has not developed
other users spent $3 billion to main·     Each additional year it takes to place     guidance to ensure that the regions
tain tracks, signal systems, and          waste at the plant could cost about        consistently evaluate the most se-
stations; dispatch trains; and make       $130 million.                              verely contaminated facilities first.
capital improvements to commuter                                                     Even after a region has evaluated a
and high-speed operations. Despite                                                   facility and determined that it war·
these outlays, the corridor's infra·                                                 rants inclusion on the National
structure has deteriorated, and                                                      Priorities List-EPA's list of the
Amtrak estimates that about $2.7                                                     nation's highest priorities for further



GAO/O IMC·97· lA Subj ect Index           Page 154
study and possible c1eanup--that            Initiative. It is too soon to know,         geographic isolation, take advantage
facility may be omitted if a state does     however, whether DOE will cut costs         of expertise in other communities,
not agree to the listing or the facility    to the extent plarUlcd in its budget        improve medical services, create new
is being cleaned up under another           reductions. Moreover. some overly           jobs. and improve access to educa-
legal authority.                            optimistic initial reports of cost          tion. This report ( I) identifies federal
                                            savings underscore the need for DOE         programs that rural areas can use to
RCED-96-151, June 27, 1996 (25              to be vigilant in validating such           fund telecommunications projects; (2)
pages). Human Factors: Status of            claims, lest managers believe that          identifies lessons learned by mral
Efforts to Integrate Research on            those savings are occurring in specific     ar·eas that have used these progranls
Human Factors Into FAA's Activities.        activities when, in fact, targeted          to establish such projects; and (3)
                                            reductions are being absorbed else-         provides the ';ews of e>'"perts, public
Human error has been a factor in            where. Discussions with DOE officials       and private officials, and program
about 80 percent of all fatal airplane      revealed opportunities to achieve           users on whether changes to these
crashes, according to the Federal           further cost savings by more broadly        programs are needed.
Aviation Administration (FAA). The          applying some aspects of the Initia-
study of human factors, which tries to      tive. For example, DOE could encour-        RCED-96-156, July 26, 1996 (56
reduce the chances for human error          age its contractors to sell more of the     pages). Transportation Enhance-
through better design of equipment          agency's excess assets by providing         ments: Status of the $2.4 Billion
and procedures and improved training        incentives and policies for the con-        Authorized for Nonmotorized Trans-
of pilots, air traffic controllers. and     tractors to identify and sell them.         portation.
others, has emerged as one of the           GAO summarized this report in
most promising ways to improve              testimony before Congress; see:             The Intermodal Surface Transporta-
aviation safety. This report describes      Department of Energy: Progress Made         tion Efficiency Act of 1991 included a
FAA's (1) organizational structure for      Under Its Strategic Aligrnnent and          $24 billion, six-year authorization that
incorporating the consideration of          Downsizing Initiative, by Bernice           created a new federal-aid highway
human factors in the agency's acquisi-      Steinhardt, Associate Director for          program-the surface transportation
tion of new systems and operation of        Energy, Resources, and Science              progranl. This program requires states
other systems and (2) aviation re-          Issues, before the Subcommittee on          to set aside at least 10 percent of the
search on human factors, including          Energy and Power, House Committee           $24 billion for various "trarlsportation
FAA's processes for identifying             on Commerce. GAOrr-RCED-96-197,             enhancemenL~ , " such as Sidewalks,
research issues, and methods for            June 12 (sLx pages).                        bike paths, scenic easements, and
allocating and coordinating resources                                                   historic preservation. This report
for internal and e>.1:emal research on      RCED-96-155 , June 14, 1996 (51             answers the following questions: How
human factors.                              pages). Rural Development: Steps            do the obligation rates for transporta-
                                            Towards Realizing the Potential of          tion enhancement funds for fiscal
RCED-96-154, May 13, 1996 (14               Telecommunications Technologies.            years 1992-95 compare with the
pages). Energy Downsizing: While                                                        obligation rates for other m~or
DOE Is Achieving Budget Cuts, It Is         Many mral areas today are stmggling         highway programs"! How do the
Too Soon to Gauge Effects.                  to overcome selious economic and            obligation rates for transportation
                                            social problems, s llch as a lack of        enhancement funds vary by state, and
Recognizing the need for a smaller,         access to higher education. sophisti-       what factors have affected the states'
less costly government, the Energy          cated medical treatment, and business       use of these funds? What types of
Department (DOE) last year unveiled         oPPoltwlities. that have arisen             projects are being funded with
its Strategic Alignment and                 because of remoteness from urban            transportation enhancement funds·'
Downsizing Initiative, which is             centers. Although improved roads            What are stakeholders' views on
intended to save $1. 7 billion over five    were once seen as the key to a              reauthorizing the transportation
years. The savings planned under the        brighter future for mral areas, e>'"perts   enhancement set-aside?
Initiative are on target. By amending       now believe that tclecommlU1ications
its fiscal year 1996 budget request and     technologies may prove much more            RCED-96-159, Aug. 22, 1996 (68
selling excess assets, DOE will reach       crucial to fostering development.           pages). Aviation Acquisition: A
its goal of $221 million in savings this    Advanced telecommunications                 Comprehensive Strategy ls Needed for
year. DOE is depending on process           technologies-the Internet,                  Cultural Change at FAA
improvements and reengineering              videoconferencing, and high-speed
efforts to fulfill its missions under the   data transmission-oITer rural areas
reduced budgets called for by the           the opportunity 10 overcome their



                                            Page 155                                             GAO/OIMC-97-1ASubject Index
Because of the steady growth in air         RCED-96-173, June 19, 1996 (64            tees to fund water, municipal sewage,
traffic operations and the failure of       pages). Water Quality: A Catalog of       and other environmental infrastruc-
aging equipment in the air traffiC          Related Federal Programs.                 ture projects along the U.S.-Mexican
control system, the Federal Aviation                                                  border, Mexican border towns and
Administration's (FAA) timely acquisi-      This catalog provides information on      U.S. rural areas known as "colonias"
tion of new equipment has become            federal programs and injtiatives to       face financial and administrative
increasingly critical for aviation safety   help states, munjcipalities, and          challenges to meeting their environ-
and efficiency. FAA estimates that it       individuals protect and improve           mental infrastructure needs. The
will need $13 billion during the next       surface and groundwater threatened        problem is particularly severe in many
seven years to continue its moderniza-      by pollution. GAO identifies 72 federal   Mexican communities, where infra-
tion program. Persistent acquisition        programs and initiatives that either      structure systems are often inad-
problems, however, raise questions          directly or indirectly support water      equate or nonexistent. Most environ-
about the agency's ability to field new     quality protection and enhancement.       mental needs on the U.S. side involve
equipment within cost, schedule, and        According to agency estimates, at         colonias-rural, uninco!J)orated
performance parameters. This report         least $4.6 billion was spent on these     subdivisions characterized by sub-
(1) reviews FAA's management of the         programs in fiscal year 1995.             standard housing, poor roads and
acquisition process, (2) discusses                                                    drainage, and inadequate water and
whether the organizational culture          RCED-96-176, May 31, 1996 (53             sewer facilities--or upgrades of
contributed to the agency's acquisi-        pages). Mass Transit: Actions Needed      existing community infrastructure.
tion problems, and (3) identifies ways      for the BART Ai!J)ort Extension.          TIlis report discusses the (1) financial
that FAA could improve its manage-                                                    and institutional challenges the United
ment of acquisitions through cultural       The Bay Area Rapid Transit District       States and Mexico face in overcoming
change.                                     (BART) intends to spend more than         environmental infrastructure prob-
                                            $1.1 billion, including $750 million in   lems and (2) way in which the Envi-
RCED-96-165W, Aug. 1, 1996 (125             federal funds, to extend mass transit     ronmental Protection Agency has
pages). Natural Resources: Five-Year        services to the San Francisco Interna-    identified and priOritized funding for
Bibliography 1991-1995.                     tional Ai!J)ort Controversy over the      environmental problems along the
                                            project, which centers on concerns        border.
GAO's Natural Resources Issue Area          over the project's environmental
examined the activities of a variety of     impact and cost, has resulted in two      RCED-96-184, July 9, 1996 (15
entities such as the Department of the      redesigns of the project since 1992.      pages). Energy Management: Tech-
Interior, the Department of                 Before the Federal Transit Adminis-       nology Development Program Taking
Agriculture's Forest Service, the           tration (FTA) can provide BART with       Action to Address Problems.
Commerce Department's National              the requested funds, ITA must ensure
Marine Fisheries Service, and the U.S.      that BART complies with federal           To help clean up and restore its
Anny CO!J)s of Engineers. This work         environmental laws and develops a         contanlinated sites in compliance
generally focuses on: (1) increasing        viable financing plan. This report        with federal and state environmental
revenues by obtaining a better return       describes (I) the actions that ITA        laws, the Energy Department (DOE)
for the sale or use of natural re-          must take before agreeing to fund the     established the Office of Environmen-
sources on federal lands or by elimi-       project; (2) the project's current        tal Management. Since 1989, the
nating federal subsidies; (2) improving     schedule and estimated cost and the       Office has spent $34 billion on clean-
efficiency within and coordination          factors that could affect them; and (3)   ups, but schedules have slipped and
among federal land management               the project's finance plan, including     progress has been s low. The Office
agencies; and (3) improving collabora-      assumptions that could affect its         projected in 1995 that the cleanups
tion and consensus building anlong          viability.                                could take another 75 years to com-
federal and nonfederal stakeholders to                                                plete at an additional cost of up to
address problems or issues related to       RCED-96-179, July 22,1996 (28             $350 billion. According to Office
natural resources. Organized into           pages). International Environment:        estimates, innovative cleanup tech-
seven areas, this bibliography lists the    Environmental Infrastructure Needs        nologies could reduce total cleanup
natural resources-related products,         in the U.S.-Mexican Border Region         costs by as much as $80 billion. The
issued from January 1991 through            Remain Unmet.                             Office began a major reorganization
December 1995, and it includes a                                                      last year to improve the coordination
subject index.                              Although the United States and            and management of the technology
                                            Mexico have committed up to 53            development program by creating five
                                            billion each in loans and loan guaran-    "focus areas." Yet concerns persist



GAO/OIMC-97-1A Subject Index                Page 156
that management wealmesses are             Industry, transportation, and agricul-    RCED-96-191, July 18, 1996 (44
undennining progress in environmen-        ture are all responsible for increasing   pages). School Lunch Program:
tal cleanup. This report discusses         amounts of carbon dioxide and other       Cafeteria Managers' Views on Food
whether the Office is managing its         heat-trapping "greenhouse gases" in       Wasted by Students.
technology development program to          the earth's atmosphere. Climate
prevent (1) unnecessary duplication        models project a rise in the earth's      Under the National School Lunch
and overlap and (2) an unwarranted         average surface temperature of            Program, about 26 million students
concentration of projects at some          between two and six degrees Fahren-       nationwide were served lunches daily
field offices.                             heit by 2100. To counter the poten-       during fIScal year 1995. Federal costs
                                           tially harmful consequences of            for the program totalled more than $5
RCED-96-187, July 24, 1996 (16             climate change, the United States,        billion that year-about $4.5 billion in
pages). Amtrak's Strategic Business        other developed nations, the former       cash reimbursements and more than
Plan: Progress to Date.                    Soviet Union, and other Eastern           $600 million in commodity foods,
                                           European states-collectively known        such as beef patties, flour, and canned
Since 1971, when Amtrak assumed            as the countries of Annex I to the 1992   vegetables. Although most cafeteria
responsibility for operating the           United Nations Framework Conven-          managers GAO surveyed reported that
nation's intercity passenger trains, the   tion on Climate Change-agreed to          plate waste in the public schools was
federal government has provided the        return to 1990 levels their emissions     not a concern, about one-quarter of
corporation with more than $18 billion     of greenhouse gases by the year 2000.     the managers characterized plate
to cover annual operating losses and       This report evaluates (1) the progress    waste as at least a "moderate prob-
to make capital investments. Despite       of the United States and other Annex I    lem"-particularly at the elementary
this support, by 1994 Amtrak's fman-       countries toward meeting their goal of    school level. Cafeteria managers
cial and operating condition had           reducing greenhouse gas emissions by      strongly agreed on some of the
declined to the point at which its long-   the year 2000 and (2) major factors       reasons for and ways to reduce plate
term survivability was seriously           that affect their ability to reach that   waste. For example, 78 percent of
threatened. At the same time, federal      goal.                                     cafeteria managers cited students'
budget constraints have made it more                                                 attention on recess, free time, or
difficult for Congress to provide its      RCED-96-190, July 15, 1996 (42            socializing as reasons for waste.
historic level of support. In response,    pages). Intellectual Property: En-        Almost 80 percent of these managers
Amtrak developed a Strategic Busi-         hancements Needed in Computing and        believed that allowing students to
ness Plan to boost revenues and cut        Reporting Patent Examination Statis-      select only what they want to eat
e"l"'nses. Its goal is to eliminate the    tics.                                     would reduce plate waste. Most
need for a federal operating subsidy                                                 cafeteria managers were satisfIed
by fIscal year 2002. Amtrak's success      This report provides information on       with the federal commodities they
in implementing the plan will go a         the operations of the Commerce            received for use in the school lunch
long way toward deciding the future        Department's Patent and Trademark         program.
of intercity passenger rail service in     Office. GAO (1) analyzes patent
the United States. This report (I)         dependency-the amount of time that        RCED-96-193, Sepl 23, 1996 (59
describes the actions that Amtrak          the Patent and Trademark Office           pages). Aviation Safety: FAA Gener-
plans to take and the expected results;    spends in examining an application to     ally Agrees With but Is Slow in
(2) reviews Amtrak's progress so far       determine whether an invention            Implementing Safety Recommenda-
in achieving fmancial improvements         should receive a patent; (2) compares     tions.
and its progress toward realizing the      the Patent and Trademark Office's
longer-term goal of operating self-        resources committed to the patent         The Federal Aviation Administration
sufficiency; and (3) describes             process, the trademark process, the       (FAA) is responsible for promoting
Amtrak's efforts to monitor the plan's     dissemination of information, and         safety in civil air transportation. GAO
implementation.                            executive direction and administra-       and the TrarlSportation Department's
                                           tion; and (3) compares the Patent and     Office of Inspector General review
RCED-96-188, Sept. 4, 1996 (33             Trademark Office's examination            FAA's safety programs, and the
pages). Global Warming: Difficulties       processes with those of other industri-   National TrarlSportation Safety Board
Assessing Countries' Progress Stabi-       alized countries.                         (NTSB) investigates aviation acci-
lizing Elnissions of Greenhouse                                                      dents. The three organizations make
Gases.                                                                               recommendations to FAA almed at
                                                                                     improving the efficiency and effective-
                                                                                     ness of FAA's activities and functions



                                           Page 157                                           GAO/OlMC·97-1A Subject Index
and at improving aviation safety. This     RCED-96-200, Sept. 17, 1996 (59            effects of park managers' actions (for
report answers the following two           pages). Urban Transportation:              example, the accumulation of under-
questions: What is FAA's overall           Metropolitan Plannmg Organizations'        growth because of past decisions to
record in responding to, agreeing          Efforts to Meet Federal Planning           suppress naturally caused fires, which
with, and implementing significant         Requirements.                              could result in a more serious fire).
recommendations made by GAO and                                                       Without systemwide data on these
the Inspector General from 1990 to         Key tlfban issues, such as traffic         threats, the Park SelVice is not fully
1994, as weU as recommendations            congestion, air poUution, and the          prepared to preselVe and protect its
made by NTSB or added to NTSB's            economic health of various neighbor-       resources. In times of austere budgets
"Most Wanted" lists of safety recom-       hoods, are significantly affected by       and multibillion-doUar needs, the
mendations dwing that same period?         decisions on how federal transporta-       agency must have this iniormation to
To what extent have GAO's recom-           tion funds are spent. These decisions,     identify and inventory the threats and
mendations concerning alrcraft             in turn , result from the transportation   set priorities for addressing them.
certification, alrline inspections, and    planning effort undertaken by 339          GAO makes several recommendations
oversight of foreign carriers and          metropolitan planning organizations        for identifying, mitigating, and moni-
NTSB's recommendations concerning          (MPO) in the Uruted States. MPOs are       toring internal threats.
safety on runways been fully imple-        not discrete decision-making groups
mented?                                    with real jurisdictional powers but        RCED-96-203, Aug. 16, 1996 (36
                                           could be viewed as a consortium of         pages). Federal Research: Changes in
RCED-96-199, Aug. 15, 1996 (73             government, transit agencies, and          Electricity-Related R&D Funding.
pages). Federal Employers' Liability       citizen groups, that join together for
Act: Issues Associated With Changing       cooperative transportation plannmg.        Congress earmarked about $ l billion
How Railroad Work-Related lI\iuries        GAO reviewed the metropolitan              for electricity-related research and
Are Compensated.                           transportation planning requirements       development (R&D) in fIScal year
                                           of the Intermodal Surface Transporta-      1996. Along with electric utilities,
Unlike most American workers,              tion Efficiency Act of 1991 and the        states, and manufacturers, the federal
railroad workers are not covered by        challenges that MPOs face in carrying      government has traditionally played a
state no-fault workers' compensation       them out. This report (I) discusses        major role in this R&D, which in-
insurance system when they are             the experiences of MPOs in meeting         cludes such technologies as solar
injured on the job. Instead, railroad      the act's requirements and (2) exam-       energy, fossil-fueled generating
workers must recover their losses          ines the extent to which the Transpor-     systems, and electric cars. The
under the provisions of the Federal        tation Department's certification          electric utility industry is undergoing
Employers' Liability Act, which            process ensures that MPOs in large         deregulation and is becoming more
requires an injured worker to negoti-      cities comply with t he act's plannmg      competitive. At the same time,
ate a settlement with the railroad. U      requirem ents.                             funding cuts are affecting electricity-
negotiations fail , the worker may file                                               related R&D. This report discusses (1)
a lawsuit alleging negligence by the       RCED-96-202 , Aug. 23, 1996 (32            the changes that have occurred in the
employer to recover losses. No-fault       pages). National Park SelVice:             levels of electricity-related R&D and
systems do not require that the parties    Activities Within Park Borders Have        the reasons for those changes and (2)
demonstrate negligence. This report        Caused Damage to Resources.                the impact of those changes on the
identifies the implications for railroad                                              types of R&D being funded. GAO
costs and railroad workers of (1)          The natural and cultural resources of      provides inionnation on the impact of
replacing the act with a no-fault          the national parks are being threat-       reduced funding on six technologies-
compensation system or (2) modifying       ened not only by sources outside the       fuel cells, coal gasification, advanced
the act. GAO also assesses how the         parks by also by activities originating    gas turbines, wind power, photovolta-
act affects small railroads-those          inside the park borders. These include     ics, and electricity storage-in which
with annual revenues of less than          the impact of private inholdings and       the Energy Department participated.
$250 million-and determines the            commercial development ,vithin the         GAO also discusses altemative
availability and affordability of          parks; the impact of nonnative             funding sources suggested by R&D
insurance to protect small railroads       wildlife or plants on native species or    managers and others.
against large payouts under the act.       other park resources; the damage
                                           caused by illegal activities, such as      RCED-96-204, July 8, 1996 (40
                                           poaching; the routine wear and tear        pages). Telecommurucations: Com-
                                           on park resources stemming from            petitive Impact of Restructuring the
                                           visitors; and the uruntended adverse       International Satellite Organizations.



GAO/OIMC-97-lA Subject Index               Page 158
At the initiative of the United States,     fuels. Members of Congress have            involved in performance contracting
the International Telecommunications        raised concern about whether the           and the administrative costs they
Satellite Organization (INTELSAT)           facilities that blend hazardous waste      incurred through their participation.
was created in 1964 to provide              fuel and the cement production
telephone and data services. The            facilities that burn these fuels are       RCED-96-216, July 31, 1996 (14
International Maritime Satellite            operating in a manner that protects        pages). Nuclear Weapons: Improve-
Organization was formed in 1979 to          human health and the environment.          ments Needed to DOE's Nuclear
provide maritime communications.            GAO provides information on its            Weapons Stockpile Surveillance
These treaty organizations faced little,    recent inspections of facilities in five   Program.
if any, competition for years after         states: Kansas, M issouri, Ohio,
their establishment. Now, technologi-       Pennsylvania, and Texas. These             The Energy Department (DOE) is
cal advances, such as enhancements          inspections assessed the facilities'       falling years behind schedule in
in satellite capacity and capabilities,     compliance with the Resource Con-          testing the nation's nuclear stockpile
as well as new applications and rising      servation and Recovery Act's (1)           for reliability and safety problems,
demand, have made it economically           treatment, storage, and disposal           and the agency has yet to develop
feasible for private companies to           regulations for processing hazardous       written plans detailing how it will get
provide satellite-based services and        waste fuels by fuel blenders and (2)       the testing program back on track.
expand the range of services being          boiler and industrial furnace regula-      DOE lags behind schedule in conduct-
offered, including new video broad-         tions for burning of these fuels by        ing many stockpile surveillance tests,
cast and mobile telephone se",;ces.         cement producers.                          including flight tests, nonnuclear
Although some believe that the                                                         systems laboratory tests, and labora-
organizations may no longer be              RCED-96-215, Sept. 16, 1996 (20            tory tests of key components. The
needed, others contend that the             pages). Energy Conservation: Energy        delay has been caused by several
organizations are still necessary to        Savings Performance Contracting in         factors. At one facility, testing was
guarantee safety at sea and services        Federal Civilian Agencies.                 suspended because the facility lacked
such as telephone and data transmis-                                                   an approved safety study required to
sion, especially for developing coun-       As the nation's single largest user of     disassemble and inspect one type of
tries. This report describes the            energy, the federal government has         weapon. Testing was suspended at
potential competitive impact of (I)         emphasized energy conservation             another facility because of concerns
different approaches to reforming the       through legislation and executive          about safety procedures. Testing
organizations; (2) an lnrnarsat affiliate   orders. Under performance contract-        delays also arose during the transfer
company, formed in 1994 to provide          ing, an agency enters into a multiyear     of testing functions to new facilities.
new services; and (3) proposals for         agreement with an energy service
restructuring INTELSAT.                     company, which installs improve-           RCED-96-217, Aug. 26, 1996 (62
                                            ments in government buildings. The         pages). School Lunch Program: Role
RCED-96-211, Aug. 30, 1996 (20              company assumes all up-front capital       and Impacts of Private Food Service
pages). Resource Conservation and           costs and, in retwn, receives a panion     Companies.
Recovery Act: Inspections of Facili-        of the annual savings attributable to
ties Treating and Using Hazardous           the improvements for the duration of       Under the National School Lunch
Waste Fuels Show Some Noncompli-            the contract. Perfonnance contracting      Program local school districts receive
                                                                                               l

ance.                                       allows the government to cut energy        federal funds for lunches that meet
                                            costs without appropriating funds and      the program's requirements for
To make cement, manufacturers use           without incurring capital costs for        nutritious, well-balanced meals.
large amounts of fuel to heat raw           energy-efficient upgrades. This report     Although these school districts have
materials, including limestone and          discusses (I) the civilian agencies that   traditionally run their own school
clay. In the 19705, these manufactur-       have awarded energy savings perfor-        meals programs, several have con-
ers realized that they could cut their      mance contracts, (2) the characteris-      tracted with private food service
fuel costs by supplementing the coal,       tics of films that the Energy Depan-       management companies to plan,
oil, and natural gas that they typically    ment has listed as qualified for           prepare, and serve school meals. Also,
burned with fuels derived from              performance contracts, (3) the rums        some school districts have purchased
hazardous waste. The manufacturers          that submitted project proposals but       brand-name fast foods to serve as part
could lower their costs because,            were not awarded contracts and the         of their school meals or as a la carte
instead of paying suppliers for fuels,      reasons why, and (4) the responsibili-     items. This report (1) discusses the
they were themselves paid by fuel           ties of the federal civilian agencies      extent to which food authorities use
blenders to burn hazardous waste                                                       food service companies to operate



                                            Page 159                                            GAOIOrMC-97-IA Subject Index
their school lunch program and the          mechanisms that schools and state         activities consistent with congres-
impact that the use of food service         agencies use to ensure compliance         sional direction? Is the Council
companies has had on the National           with batching restrictions.               following sound business practices
School Lunch Program; (2) describes                                                   and exercising adequate oversight of
the terms and the conditions in the         RCED-96-222, Sept 20, 1996 (60            its business operations?
contracts between food authorities          pages). Small Business: A Compari-
and food service companies; (3)             son of SBA's 7(a) Loans and Borrow-       RCED-96-229R, Aug. 8, 1996 (40
discusses the extent to which fast          ers With Other Loans and Borrowers.       pages). Team Nutrition Personnel and
foods and snack foods in vending                                                      Under Secretary's Travel.
machines are available in participat-       The Small Business AdmWstration's
ing schools; and (4) describes the          (SBA) General Business Loan Pro-          The Department of Agriculture
types, the brands, and the nutritional      gram-known as the "7(a)" program-         developed the Team Nutrition initia-
content of the fast foods most com-         is the agency's primary vehicle for       tive to teach children about choosing
monly offered.                              providing small businesses with           healthy foods in their diets and to help
                                            access to credit. With few exceptions,    elementary and secondary schools
RCED-96-220, Aug. 29, 1996 (12              SBA does not lend money directly          plan and prepare nutritious meals that
pages). Federally Donated Meat and          under the program, but rather guaran-     are attractive to students. The Wtia-
Poultry: Information on Extent and          tees up to 80 percent of each loan        tive is run by the Department's Food
Impact of States' Restrictions on           made by private lenders to small          and Consumer Services (FCS). This
Processors.                                 firms. This report discusses the role     report provides information on the
                                            that the 7(a) program plays in small      employment of Team Nutrition's
Each year, the Agriculture Depart-          business fmancing. GAO provides           former project manager, former
ment purchases and donates hundreds         information on (1) how the character-     assistant project manager, and project
of millions of dollars' worth of agricul-   istics-sizes, interest rates, and         coordinator. GAO discusses whether
tural commodities to various domestic       maturities-of 7(a) loans compare          (I) FCS complied with federal proce-
food assistance programs, including         with those of small businesses that       dures in establishing these jobs, (2)
the National School Lunch Program.          did not involve a guarantee from SBA      these employees were qualified for
Schools receive donated meat and            and (2) how the characteristics of 7(a)   these jobs, (3) FCS had an adequate
poultry in a finished form, such as         borrowers compare with small              basis for setting salaries for these
hamburger patties or chicken nuggets,       business borrowers that did not           employees, and (4) these employees
and either use the product immedi-          obtain 7(a) loans. GAO also examines      submitted fmancial disclosure state-
ately for school lunches or store it for    the reasons underlying private lend-      ments as required by law. GAO also
future use. Schools sometimes send          ers' decisions on whether to partici-     provides information on the official
fine-ground beef to a commercial            pate in the 7(a) program.                 travel of the Under Secretary between
processor, who might turn it into                                                     January 1994 and February 1996,
products such as barbecue-flavored          RCED-96-226, Aug. 30, 1996 (4             including the number of her trips,
hamburgers or meatballs. To gain            pages). Northwest Power Planning          their destinations, lodging costs, and
greater production efficiency, some         Council: Greater Public Oversight of      the extent to which she combined
large processors may combine                Business Operations Would Enhance         personal and business travel.
federally donated meat or pOUltry           Accountability.
received from multiple sources, a                                                     RCED-96-233, Sept. 6, 1996 (41
process known as "batching." How-           The Pacific Northwest Electric Power      pages). Surface Transportation:
ever, the contracts of some local           and Conservation Plarming Council, a      Research Funding, Federal Role, and
school food authorities and state           four-state body mandated by law,          Emerging Issues.
agencies restrict commercial proces-        oversees regional energy and fish and
sors from batching their products           wildlife policies. The eight-member       Spending on passenger and freight
under certain conditions. This report       Council, which is appointed by the        transportation exceeds $1 trillion
discusses the (I) reasons for and           governors of Idaho, Montana, Oregon,      annually, representing about 11
extent of batching restrictions among       and Washington, has a central staff of    percent of the nation's gross domestic
schools and state agencies; (2) impact      about 40. in response to congressional    product Decisions on surface trans-
that batching restrictions have on          concerns about a controversial            portation research have far-reaching
commercial processors, schools, and         severance package offered to the          consequences because research
the federal government; and (3)             Council's former executive director,      provides the knowledge, products,
                                            this report addresses the following       and technologies needed to make
                                            questions: Are the Council's program      transportation more efficient, efrec-



GAO/OIMC-97-1A Subject Index                Pag e 160
tive, and safe. TItis report discusses       RCED-96-236, Sept. 24, 1996 (26          assisted housing; mortgage financing
(1) the public and private funding for       pages). Peer Review: EPA's imple-        and home ownership; HUD manage-
surface transportation research, (2)         mentation Remains Uneven.                ment; community development;
the transportation community's views                                                  disaster assistance; and small busi-
on the federal role in surface transpor-     Peer review is the critical evaluation   ness.
tation research and the Transportation       of scientific and technical work
Department's ability to fulfill that role,   products by independent expertS.         RCED/AIMD-96-9FS, Oct. 13, 1995
and (3) the issues that the transporta-      Senior officials at the Environmental    (54 pages). Federal Electric Power.
tion community believes that Con-            Protection Agency (EPA) have said        Operating and Financial Status of
gress and the Transportation Depart-         that peer review is an important         DOE's Power Marketing Administra-
ment should consider during reautho-         mechanism for enhancing the quality,     tions.
rization of the Intermodal Surface           credibility, and acceptability of
Transportation Efficiency Act of 1991.       products that may ultimately form the    This fact sheet provides information
                                             basis of regulations and other key       on the Energy Department's (DOE)
RCED-96-234, Sept. 30, 1996 (40              agency decisions. Properly imple-        five power marketing administrations
pages). International Envirorunent:          mented, peer review can also save        (PMA). The first section of the
U.S. Funding of Envirorunental               money by steering product develop-       report-operating inforrnation-
Programs and Activities.                     ment along the most efficient, effec-    describes facilities used by the PMAs
                                             tive course, thereby avoiding costly     to sell power and the customers
In recent decades, nations have              and time-consuming delays. EPA's         served by the PMAs. The second
entered into an increasing number of         current policy, issued in June 1995,     section-financial information-
agreements to address environmental          expands the agency's prior policies      discusses the manner in which the
concerns, both regional and global.          and practices and continues to stress    PMAs finance their operations, the
Since 1972, when more than 130               that major scientific and technical      revenues and expenses associated
countries took part in the United            work products should be peer re-         with their operations, and the manner
Nations Conference on the Human              viewed. This report assesses EPA's       in which they repay their debts. The
Environment, the number of such              (1) progress in implementing its peer    [mal section-competitive issues--
agreements in which the United State         review policy and (2) effortS to         describes potential effect of these
participates or in which it has a            improve the peer review process.         markets on the PMAs.
significant interest has swelled from
fewer than 50 to more than 170.              RCED-96-248W, Aug. I , 1996 (32          Testimony
Accompanying the rise in the number          pages). Housing and Community
of international agreements has been         Development Products, 1995.              T-GGDIRCED-96-186, June 5, 1996
an increase in spending by the world                                                  (20 pages). Paperwork Reduction:
community to deal with                       GAO's Housing and Community              Burden Reduction Goal Unllkely To
transboundary envirorunental issues.         Development Issue Area conducts          Be Met, by Michael Brostek, Associate
Members of Congress have raised              studies of programs involved in          Director, Federal Management and
concerns about the absence of                providing affordable housing and         Workforce Issues, and Peter F.
consolidated budget information on           maintaining vital communities for all    Guerrero, Director, Environmenta.1
the funding of international environ-        Americans. Agencies administering        Protection issues, before the Senate
mental activities by the federal             these programs include the Depart-       Committee on Small Business.
goverrunent. This report discusses the       ment of Housing and Urban Develop-
overall level of federal funding for         ment, the Department of Veterans         The paperwork burden that the
international envirorunental activities,     Affairs, the Department of               federal goverrunent imposes on the
including specific programs, treaty          Agriculture's Rural Housing SeIVice,     public has increased significantly
negotiations, information exchanges,         the Small Business Administration,       since 1980. Under the Paperwork
conferences, and research. GAO               the Federal Emergency Management         Reduction Act of 1995, the Office of
identifies ( 1) funding by individual        Agency, and many private and non-        Management and Budget (OMB) is
federal agencies and (2) federal             profit community organizations. This     required to seek at least a lO-percent
fmancial support for the envirorunen-        bibliography includes information on     reduction in the govemmentwide
tal programs and activities of the           the products issued from January 1995    paperwork burden in fiscal year 1996
United Nations, the World Bank, and          through December 1995 that discuss       and to set reduction goals for each
other multilat.eral financial institu-       housing and community development        agency. TItis testimony discusses the
tions.                                       programs. It is organized into six       following issues: ( 1) what changes in
                                             broad subject areas: public and          the paperwork burden have occurred



                                             Page 161                                          GAOIOIMC-97-lA Subject Index
governmentwide and at the Internal       Independent States Improve Their           Director, Transportation and Tele-
Revenue SeNice, the Environmental        Nuclear Material Controls, by Jim          communications Issues, before the
Protection Agency, and the Occupa-       Johnson, Associate Director, Interna-      Oversight and Investigations Subcom-
tional Safety and Health Administra-     tional Relations and Trade Issues,         mittee, House Committee on Com-
tion; (2) what OMB's responsibility to   before the Permanent Subcommittee          merce.
get goals for reducing the burden is,    on Investigations, Senate Committee
and whether agencies will achieve the    on Governmental Affairs.                   Cellular telephone companies have
reductions envisioned by the legisla-                                               experienced an explosive growth in
tion; and (3) what actions each of the   Over the years, the Soviet Union           the number of subscribers during the
three agencies has taken since the       produced about 1,200 metric tons of        past decade. There were 340,000
act's passage. GAO also discusses        highly enriched uranium and pluto-         cellular subscribers in the United
measurement Issues that Congress         nium. U.S. efforts to help the newly       States in 1985 versus more than 25
should consider as it assesses agen-     independent states of the fonner           million by February of 1995. The
cies' progress in reducing the paper-    Soviet Union better protect their          growth rates in subscribership were
work burden.                             stocks of this deadly material-which       between 40 and 50 percent annually
                                         are vulnerable to theft and diversion      during each of the last five years. GAO
T-GGDIRCED-96-214, July 10, 1996         because of antiquated security             testified that the mobile telecommuni-
(16 pages). Managing for Results: Key    systems-got off to a slow start but        cations market could potentially
Steps and Challenges in Implementing     are now gaining momentum. Many             become more competitive in the near
GPRA in Science Agencies, by L. Nye      independent states lack modern             future. By taking and approach that
Stevens, Director, Federal Manage-       equipment to detect unauthorized           emphasizes competition, Congress
ment and Workforce Issues, and           removal of highly enriched uranium         and the Federal Communications
Victor S. Rezendes, Director, Energy.    and plutonium from nuclear facilities.     Commission are bringing beneficial
Resources, and Science Issues, before    Seizures of nuclear material in Russia     changes to this industry. ew per-
the House Committee on Science.          and Europe have heightened concerns        sonal communications service provid-
                                         about a possible black market for this     ers should enter the market in the
The landmark Government Perfor-          material. The Defense Department           next two years, and GAO is optimistic
mance and Results Act (GPRA)             (DOD) has obligated $59 million and        that as the market gains new provid-
requires federal agencies to set goals   spent about $4 million during fIScal       ers, consumers are likely to see new
and measure perfonnance. GAO work        years 1991-95 for security improve-        seNice offerings and lower prices.
has shown that the effectiveness of      ments in Russia, Ukraine, Kazakhstan,
the Energy Department. NASA, and a       and Belarus. lnitially, the program        T-RCED-96-22, Oct. 13, 1995 (13
host of other agencies has been          moved slowly because Russian               pages). Housing and Urban Develop-
hampered by unfocused missions and       officials had refused access to their      ment: Public and Assisted Housing
unclear goals. If successfully imple-    facilities, and DOD projects at facili-    Refonn, by Judy A EngJand.Joseph,
mented in civilian science agencies,     ties in Ukraine, Kazakhstan, and           Director, Housing and Community
GPRA should help Congress make the       Belarus were just getting under way.       Development Issues, before the
hard science policy and program          The program gained momentum in             Housing Opportunity and Community
choices. GPRA will also help agencies    January 1995 when U.S. and Russian         Development Subcommittee, Senate
better manage their programs and         officials agreed to upgrade nuclear        Committee on Banking, Housing and
provide the public with greater          materials controls at five high-priority   Urban Affairs.
assurance that tax dollars are being     facilities. The Energy Department
spent wisely. But the changes in         plans to request $400 million over         Current federal housing programs are
management and accountability            seven years to improve controls at         seen as overly regulated and leading
envisioned under GPRA are not            nuclear facilities in the newly inde-      to warehousing of the poor, and
coming quickly or easily, particularly   pendent states. However, the ex-           Congress is asking state and local
in the science agencies. Successful      panded program faces uncertainties         governments to assume a larger role
implementation of GPRA in those          involving its overall costs and U.S.       in defming how the programs work
agencies may well depend on contin-      ability to verify that the assistance is   Congress is now reconsidering the
ued congressional support and            being used as intended.                    most basic aspects of public housing
interest.                                                                           policy-whom it will house, the
                                         T-RCED-96-20, Oct. 12, 1995 (!O            resources devoted to it, the amount of
T-NSlADIRCED-96-118, Mar. 13,            pages). Telecommunications: Compe-         existing housing stock that will be
1996 (4 pages). Nuclear Nonprolifera-    tition in the Mobile Communications        retained, and the rules under which it
tion: U.S. Efforts to Help Newly         Industry, by John H. Anderson, Jr. ,       will operate. These statements




GAO/OIMC-97·lA Subject Index             Page 162
provide GAO's views on legislation       public housing to housing vouchers or       their jobs. Cuts in FAA's budget have
pending before Congress-S. 1260 and      tenant-based assistance when that           reduced the money available for
H.R. 2406-that would overhaul            makes the most sense. GAO also              technical training by 42 percent during
federal housing policy. GAO testified    supports provisions to signifIcantly        fIScal years 1993-96. FAA projects that
that the two bills contain provisions    beef up the Department of Housing           it will have a shortfall of $20 million
that will likely improve the long-tenn   and Urban Development's (HUD)               for technical training that FAA had
viability of public housing, such as     authority to intervene in the manage-       earlier deemed essential.
allowing mixed incomes in public         ment of troubled housing authorities,
housing and conversion of some           but GAO cautions that questions             T-RCED-96-29, Oct. 17, 1995 (15
public housing to housing vouchers or    remain about the reliability of the         pages). Multifamily Housing: Issues
tenant-based assistance when that        oversight system that HUD uses to           and Options to Consider in Revising
makes the most sense. GAO also           designate these agencies as                 HUD's Low-Income Housing Preserva-
supports provisions to significantly     "troubled. "                                tion Program, by Judy A England-
beef up the Department of Housing                                                    Joseph, Director, Housing and Com-
and Urban Development's (HUD)            T-RCED-96-26, Apr. 30, 1996 (11             munity Development Issues, before
authority to intervene in the manage-    pages). Aviation Safety: Targeting and      the Housing Opportunity and Commu-
ment of troubled housing authorities,    Training of FAA's Safety Inspector          nity Development Subcommittee,
but GAO cautions that questions          Workforce, by Gerald Dillingham,            Senate Committee on Banking,
remain about the reliability of the      Associate Director, Transportation          Housing and Urban Affairs.
oversight system that HUD uses to        and Telecommunications Issues,
designate these agencies as              before tlle Oversight of Government         The Department of Housing and
"troubled. "                             Management and the District of              Urban Development's (HUD) program
                                         Colwnbia Subcommittee, Senate               for preserving low-income housing
T-RCED-96-25, Oct. 13, 1995 (14          Committee on Governmental Affairs.          seeks to maintain the affordable low-
pages). Housing and Urban Develop-                                                   income housing that was created
ment: Public and Assisted Housing        Although accident rates for air travel      mainly under two federal housing
Refonn, by Judy A England-Joseph,        in the United States are among the          programs during the 1960s and 1970s.
Director, Housing and Community          lowest in the world and aviation            Under these programs, when owners
Development Issues, before the           remains one of the safest means of          received HUD-insured mortgages with
Housing and Community OppOltunity        transportation, recent fatal accidents      40-year repayment periods, they
Subcommittee, House Committee on         have raised concerns about the safety       entered into agreements with HUD
Banking and Financial Services.          of air travel. GAO testified that the       that imposed affordability restrictions,
                                         Federal Aviation Administration             such as limits on the income level of
Current federal housing programs are     (FAA) needs to target the resources of      tenants and on the rents that could be
seen as overly regulated and leading     its safety inspection program to the        charged at the properties. After 20
to warehousing of the poor, and          areas of greatest risk. Because of the      years, however, owners had the right
Congress is asking state and local       magnitude of inspectors' workloads,         to payoff their mortgages in full
governments to assume a larger role      targeting is essential because FAA          without prior HUD approval and
in defining how the programs work.       may never have enough resources to          tenninate the affordability restric-
Congress is now reconsidering the        inspect all pilots, aircraft, and facili-   tions. The preservation program has
most basic aspects of public housing     ties. Although FAA has been working         proven to be complex and costly,
policy-whom it will house, the           since 1991 to develop a $31 million         prompting recommendations from
resources devoted to it, the amount of   system to target resources for aviation     HUD and others to change or repeal
existing housing stock that ",ill be     inspections, data quality problems,         the program. This testimony focuses
retained, and the rules under which it   such as infonnation on the results of       on (1) how the current preservation
will operate. These statements           safety inspections, jeopardize the          program works, (2) the status of
provide GAO's views on legislation       system's potential benefits. During the     preservation eligible projects, (3)
pending before Congress-So 1260 and      past decade, GAO and others have            concerns that have been raised about
H.R. 2406-that would overhaul            reported on problems with the               the program, and (4) options for
federal housing policy. GAO testified    technical training of inspectors,           revising the program.
that the two bills contain provisions    including those performing inspec-
that will likely improve the long-tenn   tions for which they lacked proper          T-RCED-96-32, Mar. 14, 1996 (16
viability of public housing, such as     credentials. Inspectors have been           pages). International Aviation: DOT's
allowing mixed incomes in public         unable to take courses that they            Efforts to Increase U.S. Airlines'
housing and conversion of some           believe are necessary for them to do        Access to International Markets, by



                                         Page 163                                             GAO/OIMC-97-1ASubject Index
John H. Anderson, Jr., Director,          needed to oversee the inlplementation     T-RCED-96-43, Nov. 16, 1995 (6
Transportation and Telecommunica-         of the drinking water program; and (3)    pages). Global Wanning: Limitations
tions Issues, before the Aviation         financing infrastructure needs. GAO       of General Circulation Models, by
Subcommittee, Senate Committee on         comments on relevant sections of the      Peter F. Guerrero, Director, Environ-
Commerce, Science and Transporta-         proposed reauthorization bill.            mental Protection Issues, before the
tion.                                                                               Energy and Environment Subcommit-
                                          T-RCED-96-38, Nov. 29, 1995 (6            tee, House Committee on Science.
Of the 95 million passengers who flew     pages). Forest Service: Observations
on scheduled flights between the          on the Emergency Salvage Sale             When discussing the implications of
United States and the rest of the         Program, by James K Meissner,             global warming and the steps needed
world in 1995, nearly U .5 million flew   Associate Director, Natural Resources     to control greenhouse gas emissions,
to or from the United Kingdom,            Management Issues, before the House       one needs to consider the range of
making it the largest U.S. aviation       Committee on Resources and Forests        projected temperature increases and
trading partner overseas. Because of      and Public Land Management Sub-           the degree of uncertainty in these
the size of this market and the fact      committee, Senate Committee on            estimates. In July 1995, GAO reported
that the United Kingdom is a key          Energy and Natural Resources.             (see GAOIRCED-95-164) on the
gateway to Europe, Africa, and the                                                  limitations of general circulation
Middle East, U.S. airlines strongly       Salvage timber involves dead or dying     computer models used to make such
desire greater access to London's         trees, much of which would be             predictions. This testimony is based
Heathrow Airport. In recent years,        marketable if harvested before it rots.   on the fmdings of that report. AJ-
however, the Department of Transpor-      In the past, many sales of salvage        though the accuracy of general
tation (DOT) has had limited success      timber were delayed, altered, or          circulation models has improved
in negotiating increased opportunities    withdrawn, and some of the timber         during the past decade, these models
for U.S. airlines at this airPort. This   deteriorated and became unsalable. In     are still limited by incomplete and
testimony discusses (1) how limited       response to the millions of acres of      inaccurate representations of the
U.S. leverage affects current negotia-    salvage timber caused by the devastat-    processes affecting climate and by
tions with the United Kingdom and (2)     ing fires of 1994, Congress established   insufficient computing power. TIlese
the importance of data and economic       an emergency salvage timber sale          limitations do not change the likeli-
analysis in strengthening DOT's           program, which was designed to            hood that the climate will change as a
negotiating position and options to       increase the harvesting of salvage        result of increased greenhouse gas
improve the negotiating process.          timber by easing environment proce-       emissions. They do, however, limit
                                          dures and eliminating the administra-     the ability to predict with certainty
T-RCED-96-35, Nov. 1, 1995 (16            tive appeals process. GAO testified       how the climate will respond-how
pages). Drinking Water: Safe Drinking     that it is too early to say to what       much wanning will occur, how soon it
Water Act Reauthorization Issues, by      extent the changes introduced by the      will happen, and what the regional
Peter F. Guerrero, Director, Environ-     program will boost sales because few      effects will be. Efforts are under way
mental Protection Issues, before the      sales have been made since the            to collect and analyze data, improve
Senate Conunittee on Environment          program became effective. Some            representations of various climatic
and Public Works.                         salvage sale offerings have failed to     processes; and develop and use more
                                          receive bids mainly because of the        powerful computers. ll1ese effOlts,
In recent years, escalating costs and     terms and conditions of the sales,        which could take a decade or more,
serious implementation problems           such as the minimum bid or specific       should improve the accuracy of the
have affected the drinking water          logging requirements or the volume of     models.
program, particularly as it affects       timber being offered, were unaccept-
individual water systems and the          able to potential buyers. In addition,    T-RCED-96-45, Dec. 6, 1995 (9
states responsible for overseeing         because of the short-term nature of       pages). Superfund: Use of Innovative
them. The bill to reauthorize the Safe    the emergency salvage sale program,       Technologies for Site Cleanups, by
Drinking Water Act contains provi-        more comprehensive information on         Larry Dyckman, Associate Director,
sions that address these important        the universe of marketable salvage        Environmental Protection Issues .
issues. This testimony highlights some    timber may help Congress as it            before the Energy and Environment
of the key fmdings in past GAO work       assesses the program's impact and         Subcommittee, House Committee on
relating to (1) various managerial,       whether additional resources are          Science.
technical, and preventive approaches      needed to support it.
to dealing with water systems' compli-
ance problems; (2) state resources



GAO/OIMC·97-1A Subject Index              Page 164
Congressional debate over reauthori-       used to address housing, economic,         Land Management Subcommittee,
zation of Superfund may result in          and social service needs in distressed     Senate Committee on Energy and
change in such areas as how sites are      neighborhoods. GAO discusses (1)           Natural Resources.
cleaned up and how responsibility is       why community development experts
divided between the federal and state      advocate a comprehensive approach,         The Forest Selvice must manage its
governments. These changes, in turn,       (2) what challenges they see to            lands for multiple purposes, including
may call for modifications to              advocate a comprehensive approach,         timber, livestock forage, recreation,
Superfund's research and develop-          and (3) how the federal government         fISh and wildlife, wilderness, and
ment efforts. In past and ongoing          might support comprehensive ap-            water supply. To meet its legislative
work, GAO has assessed an important        proaches.                                  mandate, the Forest Service uses a
component of this effort-the Envi-                                                    decisiorunaking process that includes
ronmental Protection Agency's (EPA)        T-RCED-96-59, Jan. 4, 1996 (4              developing management plans for
promotion of innovative technologies       pages). Energy Management: Some            forests or for groups of small, adja-
at Superfund sites. GAO testified that     Unsubstantiated Payments for the           cent forests and reaching project-level
EPA has made progress in using             Secretary's Foreign Travel, by Victor      decisions for implementing these
innovative technology at Superfund         S. Rezendes, Director, Energy, Re-         plans for such activities as timber
sites, but these technologies are still    sources, and Science Issues, before        harvests, livestock grazing, recre-
used at only a relatively small number     the Oversight and Investigations           ational development, and habitat
of locations. Greater use of new           Subcommittee, House Committee on           improvement. Some project decisions
technologies, which can reduce             Commerce.                                  are challenged through the agency's
cleanup costs, has been prevented by                                                  administrative appeal process and the
such factors as regulatory standards,      Since the Secretary of Energy took         federal courts by parties seeking to
the absence of track records for these     office, she has taken more than 100        delay or stop a project with which
technologies, and uncertainties about      domestic and foreign trips. Because of     they disagree. Critics argue that the
future regulatory standards. Even          concerns about the extent of her trips     Forest Service could cut costs and
after Congress reauthorizes                as well as their expense, GAO re-          increase the efficiency of its
Superfund, it is likely that these         viewed the Energy Department's             decisionmaking process and improve
challenges to the development and          (DOE) expenditures for selected            its service to the public while still
use of new technologies will continue.     foreign trips. GAO found that DOE          meeting its basic legislative mandate.
                                           lacked written procedures at the time      This testimony discusses (1) issues
T-RCED-96-53, Dec. 5, 1995 (7              of these trips that specified either the   related to developing forest plans and
pages). Community Development:             types of records to be kept or the         reaching project-level decisions and
Comprehensive Approaches and Local         process to follow in obtaining support     (2) actions taken or proposed to
Flexibility Issues, by Judy A England-     for foreign travel from U.S. embassies.    address these matters.
Joseph, Director, Housing and Com-         During GAO's audit of the Secretary's
munity Development Issues, before          trip to India, DOE officials could not     T-RCED-96-73, Feb. 6, 1996 (8
the Senate Committee on Go