Reports and Testimony: October 1994 (Other Written Prod., 10/94,
GAO/OPA-95-1).

GAO published its monthly digest of reports and testimonies issued in
October 1994.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  OPA-95-1
     TITLE:  Reports and Testimony: October 1994
      DATE:  10/01/94
   SUBJECT:  Labor-management relations
             Health care services
             International relations
             Financial management
             Inventory control systems
             Missiles
             Transportation operations
             Energy industry
             Environmental monitoring
             National defense operations
IDENTIFIER:  Bibliographies
             
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REPORTS AND TESTIMONY:  OCTOBER
1994

GAO/OPA-95-1


Highlights

Handheld Missile Security

Among other discrepancies, 40 deadly Stinger missiles shipped to the
Middle East during the Persian Gulf War could not be accounted for
when GAO visited storage sites to check the inventory of handheld
missiles--the Stinger, the Redeye, and the Dragon.  In all, inventory
records differed from GAO's physical count by thousands of missiles. 
Page 22. 

Postal Labor-Management Relations

Poor labor-management relations at U.S.  Postal Service facilities
are long-standing and have multiple causes that are related to an
autocratic management style, adversarial employee and union
attitudes, and inappropriate and inadequate performance management
systems.  Page 13. 

Soviet-Designed Nuclear Reactors

Fifty-eight Soviet-designed civilian nuclear power reactors are still
operating, including 15 of the type that exploded at Chernobyl. 
Despite an internationally funded effort to close the reactors down
or improve their safety, the West faces formidable challenges in
securing closure because countries operating the reactors depend on
the power they generate.  Page 4. 

GAO/OPA-95-1



Abbreviations
=============================================================== ABBREV

  CBO -
  CIM -
  DOD -
  DOE -
  EPA -
  FAA -
  FCC -
  FHA -
  FmHA -
  HUD -
  INS -
  IRS -
  NAFTA -
  NTSB -
  OMB -
  PBGC -
  RTC -
  VA -

REPORTS AND TESTIMONY:  OCTOBER
1994
=========================================================== Appendix 0


   AGRICULTURE AND FOOD
--------------------------------------------------------- Appendix 0:1

Debt Settlements:
FmHA Can Do More to Collect on Loans and Avoid Losses

GAO/RCED-95-11, Oct.  18 (23 pages). 

The Farmers Home Administration (FmHA) wrote off nearly $3 billion in
farm debt between 1991 and 1993, even though the borrowers may have
had assets that could have been applied to bad loans.  Meanwhile,
borrowers who benefitted from such debt relief continued to obtain
new loans.  FmHA's field offices did not always follow the agency's
own debt collection procedures, which are intended to mitigate the
federal government's losses.  For example, FmHA's internal reviews
show that field officials often did not develop a complete inventory
of borrower's financial assets.  Furthermore, even when FmHA had a
complete inventory of borrowers' financial resources, it did not
always use them to offset losses.  In fiscal years 1991-93, FmHA
approved new loans totaling $13 million to 86 borrowers who, through
debt settlements, had received $20 million in debt relief. 


   BUDGET AND SPENDING
--------------------------------------------------------- Appendix 0:2

Budget Process:
Issues Concerning the 1990 Reconciliation Act

GAO/AIMD-95-3, Oct.  7 (45 pages). 

When the Omnibus Budget Reconciliation Act of 1990 was passed,
overall savings from the multiyear deficit reduction agreement were
pegged at about $500 billion.  However, the deficit has not dropped
to expected levels.  For example, the Congressional Budget Office
(CBO) projections in late 1990 showed that the fiscal year 1993
deficit would be $170 billion, but the actual deficit was $255
billion.  This report focuses on issues surrounding one component of
the deficit reduction agreement--$98.8 billion in mandatory spending
program reductions and increases in user fee collections.  GAO (1)
examines the reasons for the shortfall between deficits projected at
the time of the act and actual deficits experienced since then, (2)
ascertains whether the actual results of the act's 38 individual
provisions that GAO examined were achieved, and (3) describes CBO and
agency roles and responsibilities in the act's reconciliation process
as they affected the act's contribution to
deficit reduction. 


   BUSINESS, INDUSTRY, AND
   CONSUMERS
--------------------------------------------------------- Appendix 0:3

Insurance Ratings:
Comparison of Private Agency Ratings for Life/Health Insurers

GAO/GGD-94-204BR, Sept.  29 (32 pages). 

Private rating agencies can play an important role in providing
consumers with information about insurers' financial health. 
Concerns have arisen, however, about the usefulness of these ratings
to consumers.  This report (1) compares the rating systems of the
five major raters of life/health insurers--A.M.  Best, Duff & Phelps,
Moody's, Standard and Poor's, and Weiss Research--over the period
August 1989 to June 1992 and (2) determines which raters were first
to report the vulnerability of financially impaired or insolvent
insurers. 


   EDUCATION
--------------------------------------------------------- Appendix 0:4

Precollege Math and Science Education:
Department of Energy's Precollege Program Managed Inefficiently

GAO/HEHS-94-208, Sept.  13 (26 pages). 

Public policymakers and U.S.  industrial leaders have expressed grave
concern about precollege students in other industrialized countries
significantly outperforming American students on recent international
mathematics and science tests.  In recognition of the Energy
Department's (DOE) world-class scientists and engineers as well as
its state-of-the-art research facilities, Congress made mathematics
and science education a major mission for DOE in fiscal year 1991. 
DOE's precollege mathematics and science budget has grown about 1,250
percent--reaching $27 million in fiscal year 1993.  In the early
1990s, DOE did not effectively manage this program.  First, DOE
jeopardized the program's success by not using a risk management
strategy to run program projects.  Second, DOE forfeited an
invaluable management tool by taking a lax approach to program
evaluation.  Third, DOE greatly reduced its chances of helping
achieve National Education Goal 5--"By the year 2000, U.S.  students
will be first in the world in mathematics and science
achievement"--by launching a variety of projects that did not clearly
seek to improve student achievement.  DOE has announced steps to
substantially improve the program's management and evaluation
functions; however, the depth of executive support for these measures
and their subsequent staying power are uncertain. 

Education Finance:
Extent of Federal Funding in State Education Agencies

GAO/HEHS-95-3, Oct.  14 (117 pages). 

In fiscal year 1993, although the federal government provided only
about seven percent of elementary and secondary school funding,
states relied on federal support for about 41 percent of the funding
and 41 percent of the staff for their state education agencies.  This
may give the impression that the federal government was providing
more than what might be considered its fair share of state education
agency operating funds.  However, comparisons among state education
agencies solely on the basis of their total federal share of funding
and staff can be misleading.  The ratio of federal-to-state support
at each state education agency depends on the individual combination
of federal and state programs run by that particular agency. 
Although 10 federal programs are common to nearly all state education
agencies, no two states have the same mix of federal and state
programs.  Some state education agencies keep funding to operate
large programs, which can greatly increase the federal or state share
of funding and staff.  Despite the variety in the mix of programs and
federal funds kept, the state education agency officials GAO
interviewed gave similar descriptions of the way that they use
federal money and many said that federal programs had more
administrative and regulatory requirements than did state programs. 


   ENERGY
--------------------------------------------------------- Appendix 0:5

Nuclear Safety:
International Assistance Efforts to Make Soviet-Designed
Reactors Safer

GAO/RCED-94-234, Sept.  29 (43 pages). 

The United States and other nations have serious concerns about the
safety of 58 Soviet-designed nuclear power reactors in Russia and
eastern Europe.  These reactors do not meet international nuclear
safety standards.  Twenty-five of these reactors, because they are of
the oldest design, pose the greatest safety risk; fifteen of these
reactors are the type that exploded at Chernobyl in 1986.  In July
1992, the Group of Seven--the major industrialized nations--announced
a multimillion-dollar plan to improve the safety of these nuclear
power reactors.  This report describes (1) the goals and the scope of
the international assistance, (2) the United States' planned and
ongoing assistance efforts, (3) the impact of the assistance
provided, and (4) the potential for closing the highest-risk
reactors. 

Energy Management:
Modest Reforms Made in University of California Contracts, but Fees
Are Substantially Higher

GAO/RCED-94-202, Aug.  25 (52 pages). 

The Energy Department (DOE) provides the University of California
about $2.5 billion a year for research and development activities at
the Los Alamos, Lawrence Livermore, and Lawrence Berkeley
Laboratories.  In the past, these contracts contained many special,
nonstandard clauses that reduced or eliminated DOE's authority to
direct the University's actions and contributed to management
problems that led to losses of millions of dollars' worth of
government property, excessive subcontracting costs, and the loss of
classified documents.  In 1992, DOE and the University of California
negotiated new five-year contracts.  This report discusses (1) DOE's
efforts to add standard clauses typical of DOE's other contracts and
eliminate requirements that weakened DOE's authority, (2) the
compensation that DOE negotiated for the current contracts, and (3)
proposed changes in contracting policy announced by DOE in February
1994 that may apply to these contracts with the University. 

DOE Management:
Contract Provisions Do Not Protect DOE From Unnecessary
Pension Costs

GAO/RCED-94-201, Aug.  26 (32 pages). 

The Energy Department (DOE) funds the employer retirement
contribution for about 18,300 University of California employees who
work at DOE's three laboratories.  Before October 1992 revisions, no
limits were placed on the amount of DOE's pension fund contributions
and the university was not required to obtain DOE approval of changes
to pension benefits.  Although the University of California
retirement plan reached full funding in 1986, the university regents
continued to require employer contributions until November 1990. 
This report examines (1) whether DOE can recover unneeded pension
fund payments and (2) whether the provisions in the revised contracts
will allow DOE to control its future pension costs and prevent
unneeded payments.  GAO recommends renegotiating several contract
provisions to minimize future payments and better protect the
government's interest. 

Nuclear Cleanup:
Completion of Standards and Effectiveness of Land Use Planning Are
Uncertain

GAO/RCED-94-144, Aug.  26 (29 pages). 

During 50 years of nuclear weapons production, the Energy Department
(DOE) and its predecessor agencies have generated huge amounts of
radioactive wastes that have contaminated soil and groundwater.  As a
result, DOE faces a massive, complex, and costly cleanup effort. 
During the next several years, DOE and the Environmental Protection
Agency (EPA) will decide on methods to be used for environmental
cleanup at DOE sites.  Standards for "how clean is clean enough" and
information about future land uses of DOE sites would help in
selecting appropriate remedial actions.  Past efforts to develop
cleanup standards for radioactive substances have been unsuccessful. 
This report determines (1) how cleanup levels are now determined for
DOE sites, (2) the status and the likelihood of success of EPA's
efforts to develop cleanup standards for radioactive substances, (3)
the status of DOE's land use planning efforts, and (4) what hurdles
would need to be overcome if land use planning were to be used
effectively in determining cleanup levels. 

Nuclear Health and Safety:
Consensus on Acceptable Radiation Risk to the Public Is Lacking

GAO/RCED-94-190, Sept.  19 (32 pages). 

Differences exist in the limits on human exposure to radiation set by
federal agencies, such as the Nuclear Regulatory Commission and the
Environmental Protection Agency.  These differences raise questions
about the precision, credibility, and overall effectiveness of
federal radiation standards and guidelines in protecting public
health.  Taken together, the radiation standards that have been
developed reflect a lack of overall interagency agreement on how much
radiation risk to the public is acceptable.  GAO found at least 26
different draft or finalized federal radiation standards or
guidelines.  Agencies also do not agree on how to calculate radiation
protection standards. 

Energy Supply:
Energy Potential of Municipal Solid Waste Is Limited

GAO/RCED-94-200, Sept.  20 (28 pages). 

More than 195 million tons of municipal solid waste--basically
household and commercial garbage--were generated in the United States
in 1990.  Yet only a small portion of solid waste is now used for
energy production, mainly through the use of (1)
electricity-generating facilities that burn municipal waste as a fuel
and (2) engines fueled by waste gases from landfills.  GAO concludes
that energy recovery from municipal solid waste holds limited
potential to contribute to the nation's overall energy production,
not only because of the volume and energy content of the waste
itself, but also because of factors affecting the use of waste
disposal, including public opposition and the availability of
financing.  This report also discusses (1) the environmental impact
of producing energy from waste, (2) the Energy Department's research
and development efforts to use waste as a viable energy source, and
(3) the potential energy savings from and environmental impact of
recycling waste material. 


   ENVIRONMENTAL PROTECTION
--------------------------------------------------------- Appendix 0:6

Superfund:
Status, Cost, and Timeliness of Hazardous Waste Site Cleanups

GAO/RCED-94-256, Sept.  21 (43 pages). 

In fiscal years 1987-93, 60 percent of the $10 billion earmarked for
the Superfund program went to contractors for site cleanups.  The
largest portion of cleanup spending went toward remedial or long-term
cleanup efforts, including site studies, remedial designs, and
construction of the cleanup remedy.  During this period, spending on
the construction phase overtook spending for site studies.  Forty
percent of the funds obligated for construction went to 13
sites--just seven percent of the sites receiving such funding during
the period.  Although cleanup work has been fully completed for only
52 sites, about half of the 1,320 Superfund sites have moved beyond
the initial study phase and into the design and construction phases
of the cleanup.  Nevertheless, 150 of the sites that have been in the
Superfund program for at least eight years have not progressed beyond
the initial study phase; at nine of these sites, the study phase has
not yet begun.  GAO's analysis of Environmental Protection Agency
(EPA) data shows little time difference in the cleanup work financed
by EPA and that financed by parties responsible for the
contamination.  Attorneys at the Justice Department and EPA believe
that the limits on the timing of judicial review of EPA's cleanup
decisions have been effective in discouraging or quickly eliminating
legal challenges that might otherwise have
delayed cleanups. 

Superfund:
EPA Has Opportunities to Increase Recoveries of Costs

GAO/RCED-94-196, Sept.  28 (21 pages). 

The Environmental Protection Agency's (EPA) efforts to force
responsible parties to clean up hazardous waste sites have been
successful.  In fiscal year 1993, EPA entered into settlements with
responsible parties for cleanups valued at $910 million.  However,
the agency's attempts to recover costs from responsible parties when
it has already cleaned up a site have not been as productive.  EPA
has reached agreements with responsible parties to recover only $1.2
billion of the $8.7 billion it spent on the Superfund program through
fiscal year 1993.  Several factors account for EPA's low rate of cost
recovery.  First, EPA has defined recoverable indirect costs
narrowly, thus excluding from its recovery efforts $2.9 billion of
the money it spent.  Second, EPA has not set goals for taking prompt
action on cost recovery cases or for recovering a specified
percentage of its costs.  In addition, EPA has not developed
information that would lead to better program management, such as
data on cost recovery efforts and negotiation results.  In addition
to recovering a larger portion of its costs, EPA could charge higher
interest rates on the costs it recovers if the law was changed.  EPA
is now losing millions of dollars annually because of caps on the
interest that EPA can charge. 

Water Pollution:
Information on the Use of Alternative Wastewater
Treatment Systems

GAO/RCED-94-109, Sept.  26 (48 pages). 

The costs of treating the nation's wastewater are huge and rapidly
rising.  According to the Environmental Protection Agency (EPA), the
cost of municipalities' unmet needs for wastewater treatment
facilities rose about $17.7 billion from 1988 to 1992 and totaled
$108 billion in 1992.  This report examines whether the wastewater
treatment costs could be reduced through the use of alternative
treatment systems.  GAO discusses (1) cost-effective alternatives to
conventional systems for collecting and treating wastewater, (2)
barriers limiting the use of these alternatives, and (3) how EPA is
addressing the development of future technologies. 

Toxic Substances:
Status of EPA's Efforts to Reduce Toxic Releases

GAO/RCED-94-207, Sept.  22 (14 pages). 

To get industry to identify and voluntarily reduce the amounts of
toxic substances released into the air, ground, and water, the
Environmental Protection Agency (EPA) has undertaken several
initiatives.  The Toxic Release Inventory records the releases of
more than 300 toxic chemicals reported to EPA and to the state in
which a releasing facility is located.  Under the 33/50 Program, EPA
has encouraged industry to reduce releases of 17 toxic chemicals by
33 percent before the end of 1992 and by 50 percent before the end of
1995.  The Early Reductions Program seeks to reduce emissions into
the air before EPA proposes emission standards by giving industry a
six-year extension for meeting the standards as they are developed
during a 10-year period.  This report determines (1) the validity of
the reductions in releases of toxic substances reported in the Toxic
Release Inventory, (2) the progress of the 33/50 Program in meeting
its targets for reductions in toxic releases, and (3) the status of
participation in the Early Reductions Program. 

Toxic Substances:
EPA Needs More Reliable Source Reduction Data and
Progress Measures

GAO/RCED-94-93, Sept.  23 (34 pages). 

In 1990, Congress passed the Pollution Prevention Act, which
authorizes the Environmental Protection Agency (EPA) to help
companies implement source reduction techniques.  The act also
requires companies to report their results to EPA's Toxic Release
Inventory, which includes data on releases of more than 300 toxic
chemicals.  This report reviews EPA's (1) progress in implementing
source reduction reporting requirements, (2) results under a
voluntary program to reduce emissions of 17 highly toxic chemicals,
and (3) activities to disseminate source reduction information to
meet state and industrial needs. 

Toxic Substances Control Act:
Legislative Changes Could Make the Act More Effective

GAO/RCED-94-103, Sept.  26 (68 pages). 

Thousands of toxic chemicals are in commercial use.  Although these
chemicals are important in producing goods and services, they are
often toxic and can harm human health and the environment.  Congress
passed the Toxic Substances Control Act in 1976 to enable the
Environmental Protection Agency (EPA) to obtain more information on
chemicals and to control those that pose an unreasonable risk.  In
response to congressional concerns that EPA has been slow to
implement the act, this report evaluates EPA's efforts to (1) assess
chemicals under the act, (2) control those found to be harmful, and
(3) make the act's information on chemical risks publicly available
by reducing the amount of information that the chemical industry
claims as confidential. 


   FINANCIAL INSTITUTIONS
--------------------------------------------------------- Appendix 0:7

Resolution Trust Corporation:
Affordable Housing Disposition Program Achieving Mixed Results

GAO/GGD-94-202, Sept.  28 (26 pages). 

The Resolution Trust Corporation's (RTC) Affordable Housing
Disposition Program has achieved mixed results in providing
affordable home ownership and rental opportunities to very low-,
lower-, and moderate-income families.  Progress continues in the
sales of both single- and multifamily properties and the development
of procedures governing the single-family program.  Additionally, RTC
and the Federal Deposit Insurance Corporation have developed a plan
to unify their respective programs.  However, program oversight would
be strengthened if RTC obtained complete information on the occupancy
status of each multifamily property, set specific time frames for
property owners to comply with occupancy requirements, determined if
stiffer penalties for noncompliance are needed, and ensured that land
use restriction agreements are properly recorded. 

Depository Institutions:
Divergent Loan Loss Methods Undermine Usefulness of
Financial Reports

GAO/AIMD-95-8, Oct.  31 (80 pages). 

Loan loss reserves are a major indicator of a depository
institution's loss exposure from problem loans and are critical to
understanding the entity's financial condition.  From 1980 to 1992,
about 2,700 federally insured institutions failed, at a substantial
cost to taxpayers and the insurance funds.  Loan losses were behind
many of these failures.  Past GAO reports have shown that
institutions inadequately estimated loan losses prior to failure and
that regulatory examiners have lacked a consistent framework to
quantify loan portfolio risks and assess reserve adequacy.  In
reviewing the methods used by federally insured depository
institutions to establish loss reserves for loans that are likely to
be uncollectible, GAO found that neither authoritative accounting
standards nor regulatory guidance provided sufficiently detailed
direction to depository institutions for establishment of loan loss
reserves.  As a result, institutions used widely diverse methods that
produced reserves that could not be meaningfully compared among such
institutions and may not have reflected the true loss exposure in the
institutions' loan portfolios. 


      TESTIMONY
------------------------------------------------------- Appendix 0:7.1

Corporate Credit Unions:  Condition, Issues, and Concerns, by Thomas
J.  McCool, Associate Director for Financial Institutions and Markets
Issues, before the House Committee on Banking, Finance, and Urban
Affairs.  GAO/T-GGD-95-15, Oct.  6 (26 pages). 

Thousands of insured credit unions have placed about $30 billion--a
substantial part of their unloaned deposits--in the 44 corporate
credit unions for investment purposes.  Because this concentration of
credit union assets represents a large potential risk to the National
Credit Union Share Insurance Fund, the safe and sound operation of
corporate credit unions is a necessity.  This testimony highlights
the combined financial condition of these institutions, their
investment policies and practices, and current issues they are
facing.  GAO also discusses potential problems that could affect the
financial health of the corporate credit unions, the credit union
industry, and the Insurance Fund. 


   FINANCIAL MANAGEMENT
--------------------------------------------------------- Appendix 0:8

OMB's High-Risk Program:
Comments on the Status Reported in the President's Fiscal Year 1995
Budget

GAO/AIMD-94-136, Sept.  20 (22 pages). 

GAO examined the Office of Management and Budget's (OMB) update of
its high-risk program, as presented in the President's fiscal year
1995 budget submission.  For the 1995 budget submission, OMB decided
to delete 26 areas from the program.  GAO disagrees with OMB's
deletion decision in three areas--contract administration controls at
the Defense Department, the Energy Department's weapons complex
reconfiguration, and staffing at the Bureau of Prisons.  Of the 84
active areas on OMB's high-risk list, GAO disagrees with OMB's
progress assessment for three areas--the Federal Employees Health
Benefits Program, Superfund program controls, and financial
management at the Treasury Department. 

Financial Management:
Status of Defense Efforts to Correct Disbursement Problems

GAO/AIMD-95-7, Oct.  5 (20 pages). 

Despite numerous audit reports during the past 14 years that
repeatedly cited internal control weaknesses, the Defense Department
(DOD) continues to experience problems in accounting for
disbursements.  Not being able to properly match a disbursement to an
obligation is a serious, fundamental breakdown in internal controls
and DOD's fund control systems.  Although DOD has taken some initial
steps to overcome its disbursement problems, serious weaknesses still
plague DOD's systems, as evidenced by the nearly $25 billion in
problem disbursements identified as of June 1994.  Intensified and
sustained top-level management commitment, as called for by the DOD
Comptroller, will be needed to resolve the disbursement problems.  In
the short term, DOD's efforts, such as its manual research of problem
disbursement transactions to correct errors, will likely reduce the
amount of disbursements not properly matched to obligations. 
However, the disbursement problem will not be adequately resolved
until weaknesses in control procedures that allow problem
disbursements to occur are corrected and improvements are made to
DOD's contract pay and accounting systems. 

Financial Audit:
Senate Restaurants Revolving Fund for Fiscal Years 1993 and 1992

GAO/AIMD-95-1, Oct.  12 (16 pages). 

GAO audited the balance sheets of the Senate Restaurants Revolving
Fund for fiscal years 1993 and 1992 and the related statements of
operations and cash flows.  The Fund operates restaurants for
Senators, Senate employees, and the public.  GAO found that the
financial statements were reliable in all material respects; internal
controls reasonably ensured that losses, noncompliance with laws and
regulations, and misstatements affecting the financial statements
would be prevented or detected; and there was no material
noncompliance with laws and regulations. 

Financial Audit:
House Child Care Center--Fiscal Years Ended 9-30-93, 9-30-92, and
Month Ended 9-30-91

GAO/AIMD-95-2, Oct.  14 (19 pages). 

GAO audited the balance sheets of the House Child Care Center (the
Center) for fiscal years 1993 and 1992 and the related statements of
revenues, expenses, and fund balances and statements of cash flows. 
GAO also audited the balance sheet and related statements of the
House Child Care Center, Inc.  (the Corporation) as of September 30,
1991.  The Center provides preschool child care for children of House
Members and staff.  At the beginning of fiscal year 1992, the
Corporation's activities, except for its fund-raising activities,
were transferred to the Center.  GAO found that the financial
statements were reliable in all material respects; internal controls
reasonably ensured that losses, noncompliance with laws and
regulations, and misstatements affecting the financial statements
would be prevented or detected; and there was no material
noncompliance with laws
and regulations. 


   GOVERNMENT OPERATIONS
--------------------------------------------------------- Appendix 0:9

U.S.  Postal Service:
Labor-Management Problems Persist on the Workroom Floor

GAO/GGD-94-201A and GAO/GGD-94-201B, Sept.  29 (23 pages and 152
pages). 

More than 800,000 people work for the U.S.  Postal Service, making it
the nation's largest civilian employer.  During the Postal Service's
history, relations between labor unions and postal management have
often been confrontational.  Postal employees work under a highly
structured system of rules and an autocratic management style. 
Working conditions at plants and post offices reportedly have
contributed to tension and frustration, and the number of violent
incidents involving postal employees has increased since 1983.  The
results of GAO's review of labor-management relations at the Postal
Service are presented in two volumes.  The first volume summarizes
(1) the labor-management conflicts that exist on the workroom floor
of the vast mail processing plants and post offices and (2) past and
current efforts by the Postal Service, employee unions, and
management associations to end the conflict.  GAO makes
recommendations concerning the adversarial labor-management relations
at the national level and long-standing quality of worklife issues on
the workroom floor.  The second volume discusses in more detail the
labor-management environment in the Postal Service.  Included are (1)
postal management, union, and management association views on the
underlying causes of workroom conflict; (2) employee opinions about
the Postal Service on a wide range of topics; (3) descriptions of the
work climate in mail processing plants and post offices that GAO
visited; and (4) descriptions of past and current initiatives to
change that climate. 

Training Procurement:
Weaknesses Identified in NTSB Procurement Practices

GAO/OSI-94-20, July 26 (seven pages). 

GAO investigated the National Transportation Safety Board's (NTSB)
procurement of leadership and management courses taught by the firm
of Miller & Friends.  In fiscal years 1990 through 1993, NTSB
employees attended at least 18 courses provided by Miller & Friends
at a total cost of $167,000, exclusive of travel and per diem
expenses.  The NTSB kept incomplete records on the training courses
obtained from Miller & Friends.  Available records indicate that NTSB
did not seek competition for the Miller & Friends training courses
and did not provide any justification for not seeking competition. 
Available records also show that the total billing for one of the
training courses was split between several purchase orders.  Further,
NTSB officials did not investigate questions about Mr.  Miller's
qualifications.  Although some NTSB employees objected to attending
courses and to the training techniques used by Miller & Friends,
other described the courses positively.  In one instance, Mr. 
Timothy Forte, the Director of Aviation Safety, failed to properly
report reimbursement that he had received for travel expenses from an
NTSB vendor. 

U.S.  Government Aid to Business:
Federal Programs That Provide Management and
Technical Assistance

GAO/GGD-95-3FS, Oct.  14 (eight pages). 

This fact sheet provides information on federal government programs
that give management and technical assistance to businesses.  GAO (1)
identifies, given the limited time constraints of the assignment, as
many federal government programs that provide such help as was
possible; (2) briefly describes these programs and identifies the
target customers that these programs were designed to serve; and (3)
reports the current funding levels for these programs. 

Postal Service:
Service and Cost Aspects of the Dakota Central Area Mail Processing
Center

GAO/GGD-95-16, Oct.  18 (18 pages). 

This report reviews mail service in the communities served by the
Dakota Central Area Mail Processing Center in Huron, South Dakota. 
GAO assesses the validity of concerns of postal customers that the
new center, which opened in July 1993, would not be able to maintain
overnight mail service in the area.  GAO compares mail service in
Aberdeen, South Dakota, which processes its own mail, with service in
and between other communities whose mail is processed at the center. 
GAO also compares (1) the cost of the center with the projected costs
and (2) the number of personnel and work hours devoted to mail
processing before and after the consolidation. 


      TESTIMONY
------------------------------------------------------- Appendix 0:9.1

Government Contractors:  Contracting Out Implications of Streamlining
Agency Operations, by L.  Nye Stevens, Director of Planning and
Reporting in the General Government Division, before the Subcommittee
on Civil Service, House Committee on Post Office and Civil Service. 
GAO/T-GGD-95-4, Oct.  5 (10 pages). 

To help the government work better and cost less, the Vice
President's National Performance Review has proposed greater
competition in the provision of public service.  The Administration
has also set an objective of downsizing the federal workforce by more
than 270,000 positions.  One possible effect of this objective could
be an increase in the use of contractors to provide various services
to the government.  This testimony discusses how agencies can go
about making these decisions to ensure that the public receives the
best possible service at the most
reasonable cost. 


   HEALTH
-------------------------------------------------------- Appendix 0:10

Long-Term Care:
Other Countries Tighten Budgets While Seeking Better Access

GAO/HEHS-94-154, Aug.  30 (44 pages). 

In the United States, the number of people age 65 and older will
exceed 20 percent of the total population by the year 2030, up from
12.5 percent in 1990.  Public and private spending for long-term care
has risen dramatically during the past decade--exceeding $100 billion
in fiscal year 1993--and is projected to continue this upward trend. 
At the same time, there is considerable consumer dissatisfaction with
the cost of and access to this care.  To varying degrees, other
countries also face aging populations, cost pressures, and service
delivery problems.  This report reviews the provision of long-term
care in Canada, Germany, Sweden, and the United Kingdom.  GAO
examines (1) the financing and cost-containment measures these
countries use to control public spending for long-term care and (2)
administrative and delivery approaches the countries use to expand
the range of and access to services. 

Health Care Reform:
Considerations for Risk Adjustment Under Community Rating

GAO/HEHS-94-173, Sept.  22 (24 pages). 

As part of the debate over health care reform, some have proposed
prohibiting insurers from denying coverage or charging different
premiums to persons on the basis of their health status.  Under such
a "community rating" system, an insurer would have to charge each
potential beneficiary the same premium for a given insurance plan. 
However, community rating could create financial incentives for
insurers to attract only healthy clients because these people would,
on average, pay more in premiums than they generate in claims. 
Insurers' profits would depend more on the plan's ability to attract
healthy beneficiaries and would be less responsive to efforts to
deliver high-quality service at the lowest price.  Risk adjustment
can mitigate the undesirable effects of community rating on insurers'
incentives.  This report describes how the federal government's
previous experience with risk adjustment is relevant to implementing
risk adjustment under health care reform and identifies features of
health care reform that could affect the ability to adequately risk
adjust. 

Health Care:
Employers Urge Hospitals to Battle Costs Using Performance
Data Systems

GAO/HEHS-95-1, Oct.  3 (47 pages). 

Many large employers have become increasingly concerned about the
wide variation in hospital costs across their communities.  They
believe that they may be paying for care that is not being delivered
in the most efficient way.  At the same time, they contend that they
lack the information needed to assess the value of health care they
are paying for.  To meet this need, some employers, such as Walt
Disney World in Orlando and Proctor and Gamble in Cincinnati, have
organized health care coalitions to help them make better purchasing
decisions.  By developing and sharing comparable information on
hospital performance in their communities, they hope to make health
care providers more accountable for the services they deliver.  This
report examines (1) the reasons why employer coalitions and hospitals
are using comparative performance measurements systems and (2)
whether these systems report the information employers and hospitals
need to compare outcomes. 

Medical Education:
Curriculum and Financing Strategies Need to Encourage Primary Care
Training

GAO/HEHS-95-9, Oct.  21 (50 pages). 

The number of active doctors who are primary care physicians--family
and general practice physicians, general internists, and
pediatricians--has dropped from 53 percent to 35 percent since 1960. 
The Department of Health and Human Services predicts a shortage of
35,000 primary care physicians by the year 2000.  GAO analyzed
student characteristics associated with choosing primary care and
surveyed medical schools and residency programs.  GAO concludes that
reversing this trend would require changes in medical school
curricula to expose students to more primary care medicine, as well
as changes in residency financing, which now discourages teaching
hospitals from sponsoring primary care training. 


   HOUSING
-------------------------------------------------------- Appendix 0:11

Housing Finance:
Implications of Alternative Methods of Adjusting the Conforming Loan
Limit

GAO/RCED-95-6, Oct.  5 (34 pages). 

The Housing and Community Development Act of 1980 caps the size of
mortgages that can be purchased by either Fannie Mae or Freddie Mac. 
The act allows the conforming loan limit to be adjusted annually so
that Fannie Mae and Freddie Mac can respond to changing conditions. 
For 1994, the conforming loan limit is $203,150.  This report reviews
the methodology used to adjust the conforming loan limit.  GAO (1)
assesses the effect on the loan limit of using alternative adjustment
methods, (2) determines the implications of Fannie Mae's and Freddie
Mac's decisions not to adjust the loan limit for 1994, and (3)
provides information on how users of the Finance Board's data view
the
data's accuracy. 

Mortgage Financing:
Financial Health of FHA's Home Mortgage Insurance Program
Has Improved

GAO/RCED-95-20, Oct.  18 (35 pages). 

Through its Federal Housing Administration (FHA), the Department of
Housing and Urban Development insures private lenders against losses
on home mortgages financed through its Mutual Mortgage Insurance
Fund.  These mortgages are now valued at nearly $270 billion. 
Although the Fund has historically been financially self-sufficient,
it began to experience substantial losses during the 1980s, mainly
because of high foreclosure rates on single-family homes supported by
the fund in economically depressed areas.  This report (1) summarizes
GAO's assessment of the economic net worth of the Fund at the end of
fiscal year 1993 and (2) describes GAO's econometric and cash flow
modeling approach for forecasting the economic net worth of the Fund. 


      TESTIMONY
------------------------------------------------------ Appendix 0:11.1

Federally Assisted Housing:  Expanding HUD's Options for Dealing with
Physically Distressed Properties, by Judy A.  England-Joseph,
Director of Housing and Community Development Issues, before the
Subcommittee on Employment, Housing, and Aviation, House Committee on
Government Operations.  GAO/T-RCED-95-38, Oct.  6 (24 pages). 

Under its Section 8 project-based assisted housing programs, the
Department of Housing and Urban Development (HUD) pays part of the
rent for low-income families living in privately owned rental
housing.  HUD provides this assistance for more than 20,000 privately
owned properties nationwide at an estimated annual cost of $5.8
billion.  The mortgages for about half of these properties are also
insured or held by HUD.  This testimony (1) compares the costs of
rehabilitating two properties in poor physical condition--Edgewood
Terrace Apartments in Washington, D.C., and 6000 South Indiana
Apartments in Chicago--with the costs of other alternatives for
housing the tenants, (2) discusses the views of tenants and community
leaders on these options, and (3) identifies legislative and
administrative factors limiting HUD's discretion in dealing with
physically distressed properties. 


   INCOME SECURITY
-------------------------------------------------------- Appendix 0:12

Private Pensions:
Funding Rule Change Needed to Reduce PBGC's Multibillion
Dollar Exposure

GAO/HEHS-95-5, Oct.  5 (64 pages). 

In 1990, GAO flagged 17 federal programs areas as "high risk,"
including the Pension Benefit Guaranty Corporation (PBGC), which is
plagued by a mounting deficit and a large exposure to potential
claims from underfunded plans.  PBGC recently reported that
underfunding in the single employer defined benefit plans it insures
grew from $38 billion in 1991 to $53 billion in 1992--this despite
more stringent funding requirements that the Pension Protection Act
mandated for underfunded plans in 1987.  GAO concludes that the
current funding rules for underfunded plans are not working well. 
Despite the act's goal of reversing plan underfunding, most sponsors
of underfunded plans made no additional contributions to reduce
underfunding in 1990.  This is partly due to an unanticipated design
flaw that yields offsets that are too large for many plans.  In
addition to describing the act's weaknesses in reducing underfunding,
this report describes the potential impact of the proposed Pension
Funding Improvement Act of 1993 and the administration's proposed
Retirement Protection Act of 1993 on improving plan funding. 



   INFORMATION MANAGEMENT
-------------------------------------------------------- Appendix 0:13

Telecommunications:
FCC Procedures Delay Release of Decision Documents

GAO/RCED-94-242, Sept.  28 (24 pages). 

Regulatory decisions made by the Federal Communications Commission
(FCC) affect everything from network and cable television programming
to telephone services and rates.  Once a vote has been taken by the
five-member Commission, a decision document, such as a rulemaking
published in the Federal Register or a letter in response to a
petition, is released to the public.  In response to congressional
concerns that FCC has been taking too long to release decision
documents after the Commissioners have voted, this report examines
(1) the timeliness of public releases of FCC decisions, (2) whether
FCC's procedures for releasing documents contribute to delays in
these releases and how FCC's procedures compare to those of the
Nuclear Regulatory Commission and the Securities and Exchange
Commission, and (3) FCC's controls to ensure that decisions voted on
by the Commissioners are not revised without their approval.  GAO
also provides information on FCC's circulation voting process and on
ex parte contacts. 


   INTERNATIONAL AFFAIRS
-------------------------------------------------------- Appendix 0:14

State Department:
Overseas Staffing Process Not Linked to Policy Priorities

GAO/NSIAD-94-228, Sept.  20 (19 pages). 

In staffing its overseas posts, the State Department does not use an
objective, quantifiable methodology that ranks posts on the basis of
U.S.  foreign policy priorities.  Several internal State Department
studies since 1988 have expressed concern about this situation. 
Senior State Department officials have acknowledged that the current
personnel resources planning and allocation processes fail to
adequately link personnel resources with policy priorities.  This
report discusses State's efforts to improve this process and the
process State used to identify the 17 posts to close in 1993 and
1994. 

U.S.-Chilean Trade:
Pesticide Standards and Concerns Regarding Chilean
Sanitary Rules

GAO/GGD-94-198, Sept.  28 (50 pages). 

The United States and Chile are preparing to negotiate a free trade
agreement that would lift tariffs and other import barriers and
should promote more bilateral trade.  Agricultural products account
for a major portion of U.S.-Chilean bilateral trade, although Chile
exports far more agricultural products to the United States than it
imports from this country.  This report (1) compares U.S.  and
Chilean processes for registering pesticides, setting pesticide
residue tolerances (maximum legal limits) on foods, and monitoring
compliance with these tolerances and (2) determines whether Chilean
sanitary and animal and plant health rules restrict potential U.S. 
agricultural exports. 

Weapons of Mass Destruction:
Reducing the Threat From the Former Soviet Union

GAO/NSIAD-95-7, Oct.  6 (62 pages). 

In 1991, Congress authorized the Defense Department (DOD) to
establish a Cooperative Threat Reduction program to help the former
Soviet Union destroy nuclear, chemical, and other weapons; transport
and store these weapons in connection with their destruction; and
prevent their proliferation.  So far, DOD has more than $1 billion in
spending authority for the program.  This report examines the
program's (1) progress in implementing projects and obligating funds,
(2) overall planning, (3) potential impact, and (4) use of funds for
nonpriority objectives. 

North American Free Trade Agreement:
Structure and Status of Implementing Organizations

GAO/GGD-95-10BR, Oct.  7 (46 pages). 

In January 1994, the North American Free Trade Agreement (NAFTA)
between the United States, Canada, and Mexico went into effect.  The
most comprehensive free trade agreement ever negotiated, NAFTA is
expected to create the world's largest free trade zone when it is
gradually implemented during the next decade.  This briefing report
provides information on the establishment of organizations to carry
out NAFTA's goals and the extent to which a new bureaucracy is being
created to manage the terms of the agreement.  GAO identifies (1) the
design and composition of the various organizations created by NAFTA
and its related agreements, (2) the status of staffing and
budget-related issues for these organizations, and (3) any instances
of the expansion of NAFTA's bureaucracy. 


   JUSTICE AND LAW ENFORCEMENT
-------------------------------------------------------- Appendix 0:15


      TESTIMONY
------------------------------------------------------ Appendix 0:15.1

INS:  Management Problems and Program Issues, by Laurie E.  Ekstrand,
Associate Director for Administration of Justice Issues, before the
Subcommittee on International Law, Immigration and Refugees, House
Committee on the Judiciary.  GAO/T-GGD-95-11, Oct.  5 (16 pages). 

This testimony discusses the management and program problems that
confronted the Commissioner of the Immigration and Naturalization
Service (INS) when she took office in November 1993.  For instance,
the backlog of aliens requesting asylum is large and growing.  The
demand for naturalization and other benefits is such that INS cannot
meet its own processing time goal in some districts.  In fiscal year
1993, almost 500 million people were processed for entry into the
United States.  The identification and removal of criminal and
illegal aliens remains an enormous problem.  The flow of aliens
across the Southwest border continues.  Crises that INS must respond
to, such as the recent influx of Haitians and Cubans, add to its
workload.  Many of these problems persist; however, INS seems to be
aware of them and is making progress in addressing them. 

Drug Control:  U.S.  Drug Interdiction Issues in Latin America, by
Joseph E.  Kelley, Director of International Affairs Issues, before
the Subcommittee on Legislation and National Security, House
Committee on Government Operations.  GAO/T-NSIAD-95-32, Oct.  7 (four
pages). 

This testimony discusses the impact in Peru of the May 1994 U.S. 
decision to stop sharing with some countries real-time detection and
monitoring information that could be used to shoot down civilian
aircraft suspected of transporting illegal drugs.  GAO also discusses
its past reviews of drug interdiction. 


   NATIONAL DEFENSE
-------------------------------------------------------- Appendix 0:16

Inventory Management:
Handheld Missiles Are Vulnerable to Theft and Undetected Losses

GAO/NSIAD-94-100, Sept.  16 (36 pages). 

Among other discrepancies, 40 deadly Stinger missiles shipped to the
Middle East during the Persian Gulf War could not be accounted for
when GAO visited military storage sites to check the inventory of
handheld missiles--the Stinger, the Redeye, and the Dragon.  In all,
inventory records differed from GAO's physical count by thousands of
missiles.  The military services do not know how many of these
missiles they have in their possession because they have not
established systems to track the missiles produced, fired, destroyed,
sold, and transferred by serial number.  Lax military oversight and
record-keeping have left these missiles, which are in demand by
terrorists and drug dealers, vulnerable
to theft. 

U.S.  Navy/Military Sealift Command:
Weak Contract Administration Led to Unsafe and Poorly Maintained
Ships

GAO/OSI-94-27, Aug.  31 (25 pages). 

The Navy depends upon a privately run sealift tanker fleet to
transport jet fuel and other petroleum products to ports worldwide. 
A GAO review found understaffed and unqualified crews--some with
felony records; deteriorating vessels plagued by everything from
massive oil leaks to inoperable life boats; and poor oversight by the
Military Sealift Command.  The lack of maintenance, which harmed the
ship's safety and mission readiness, ended up costing the federal
government an additional $20 million.  Weaknesses in the Command's
contract administration included the absence of (1) a program
manager, (2) a written designation of departmental responsibilities
for the program, and (3) a Contracting Officer's Technical
Representative to monitor the performance of the contractor operating
the nine tankers from 1990 until 1993.  GAO summarized this report in
testimony before Congress; see: 

Military Sealift Command Contracts:  Contract Abuses Resulted in
Poorly Maintained Ships, Unqualified Crews, and Increased Cost to
Government, by Richard C.  Stiener, Director of the Office of Special
Investigations, before the Subcommittee on Oversight of Government
Management, Senate Committee on Governmental Affairs. 
GAO/T-OSI-95-3, Oct.  12
(eight pages). 

Commercial Practices:
Opportunities Exist to Enhance DOD's Sales of Surplus
Aircraft Parts

GAO/NSIAD-94-189, Sept.  23 (27 pages). 

In fiscal year 1993, the Defense Department's (DOD) proceeds from the
sale of commercial-type surplus aircraft parts averaged less than one
percent of what DOD paid for them.  In contrast, commercial airlines
realized proceeds on the order of 40 to 50 percent from the sale of
comparable parts.  The large difference in proceeds reflects the
different incentives and marketing practices at work within DOD and
the private sector.  DOD's system for selling surplus aircraft parts
is largely driven by policies designed to dispose of the parts
quickly.  Maximizing sales proceeds is of lesser importance. 
Although not always directly comparable to DOD, commercial airlines
have a system for selling surplus aircraft parts that reflects the
profit incentive.  Progressive commercial airlines provide the tools
for their staff to maximize sale proceeds in the form of both the
training and resources needed to effectively sell the property. 
Commercial companies also use marketing techniques that substantially
enhance the visibility and marketability of their parts.  Although it
may not be practical for DOD to duplicate commercial marketing
techniques, it appears that DOD could substantially increase its
proceeds by adopting some basic marketing practices.  Critical to the
success of such practices, however, will be some establishment or
realignment of incentives. 

Household Goods:
Administrative Changes Would Improve DOD's Do-It-Yourself Moving
Program

GAO/NSIAD-94-226, Sept.  27 (30 pages). 

GAO reviewed the Defense Department's (DOD) Do-It-Yourself Moving
program, a voluntary program in which military personnel move their
own household goods or arrange to have them moved by a private
company.  Under the program, service members receive 80 percent of
what it would have cost the government to ship the goods by a
commercial carrier.  The program is intended to save the government
money while also providing extra income, in the form of a cash
incentive, to participating members.  GAO (1) assesses the extent to
which service members were using the program, (2) determines whether
DOD was adequately making service members aware of the program's
benefits, and (3) ascertains whether DOD has sufficient controls to
ensure that the program is cost-effective. 

Environment:
DOD's New Environmental Security Strategy Faces Barriers

GAO/NSIAD-94-142, Sept.  30 (14 pages). 

According to Defense Department (DOD) officials, the United States
today confronts a wide range of threats to environmental security,
including ozone depletion, environmental terrorism, risks to public
health and the environment from military activities, and a variety of
contaminants at DOD installations.  DOD's revised strategy for
protecting the environment calls for creating environmental
partnerships, matching environmental and economic opportunities,
expediting cleanup at all DOD sites, preventing pollution rather than
controlling pollution, and targeting technology to meet U.S. 
environmental needs.  This report provides information on the new
strategy and the changes made to DOD's organizational structure for
environmental management.  GAO also reviews portions of the
administrative operations and controls over funding of the Office of
the Deputy Assistant Secretary of Defense (Environment). 

Acquisition Reform:
DOD Begins Program to Reform Specifications and Standards

GAO/NSIAD-95-14, Oct.  11 (22 pages). 

Pentagon officials consider acquisition reform an imperative, and
they view eliminating unnecessary reliance on military specifications
and standards as critical to this effort.  However, the Defense
Department (DOD) has been trying to reduce its reliance on military
specifications and standards for more than 20 years with only modest
success.  DOD has developed a new reform program, which the military
services and DOD agencies were directed in June 1994 to implement. 
This report presents the results of GAO's self-initiated review of
this key aspect of acquisition reform.  GAO discusses whether the
current program (1) goes further than earlier attempts to advance
military specifications and standards reform and (2) gives adequate
attention to key issues and concerns. 

Aviation Continuation Pay:
Some Bonuses Are Inappropriate Because of Prior
Service Obligations

GAO/NSIAD-95-30, Oct.  14 (17 pages). 

In 1989, the House Armed Services Committee expressed concern about
the large number of pilots who had testified at hearings that they
had accepted aviation retention bonuses--known as aviation
continuation pay--because the obligations they incurred ran
concurrently with existing service commitments.  Despite
congressional directives that such payments should be avoided, DOD
continues to pay bonuses for time that service members already have
commitments.  In fiscal years 1992 and 1993, 58 percent and 69
percent, respectively, of the new aviation continuation pay
contractors went to aviators with preexisting commitments. 
Overlapping commitments averaged 15 months and cost DOD about $15
million in fiscal year 1992 and $11 million in fiscal year 1993. 
Payment of such bonuses is not only inconsistent with congressional
direction but is not a prudent use of taxpayer dollars. 

Naval Aviation:
F-14 Upgrades Are Not Adequately Justified

GAO/NSIAD-95-12, Oct.  19 (10 pages). 

The Navy has not made a compelling case for its $2.5 billion upgrade
of the F-14 fighter plane.  The upgrade offers few improvements over
existing capabilities and may not be available before the F/A-18E/F,
the next generation strike fighter, is scheduled for deployment at
the turn of the century.  Although the Navy argued that the F-14
upgrade was needed to replace some capability that will be lost when
it retires all A-6E attack aircraft by fiscal year 1998, the planned
upgrade will not include an air-to-ground radar for precision ground
mapping that would permit crews to locate and attack targets in bad
weather and poor visibility.  In addition, no F-14s will be able to
launch current or planned precision munitions or stand-off weapons,
except for laser guided bombs. 

DOD Force Mix Issues:
Greater Reliance on Civilians in Support Roles Could Provide
Significant Benefits

GAO/NSIAD-95-5, Oct.  19 (55 pages). 

In the wake of the Defense Department's (DOD) continuing efforts to
downsize, this report identifies ways for the military services to
achieve operational efficiencies and budget savings through greater
use of civilian personnel in support positions.  GAO concludes that
by replacing more military forces in support roles with civlians, DOD
could significantly reduce personnel costs--on average, each civilian
support employee costs $15,000 less per year than a comparably graded
military person--and release military personnel for combat duties. 
In addition, this report addresses the need to include requirements
for civilian employees and contractors in contingency planning
processes to ensure that they will be fully prepared to deploy to
future conflicts when needed.  GAO also follows up on steps taken to
correct problems identified after DOD and the services assessed
civilian deployments to the Persian Gulf. 

Navy Ships:
Lessons of Prior Programs May Reduce New Attack Submarine Cost
Increases and Delays

GAO/NSIAD-95-4, Oct.  20 (18 pages). 

Lessons learned from prior submarine programs, particularly the
Seawolf, could help the Navy save as much as $100 million in
acquisition costs while improving design quality and construction for
the SSN, the latest class of nuclear-powered attack submarine. 
Specifically, the Navy may want to (1) contract with a single
shipyard to both design and build the lead submarine, (2) delay lead
ship construction until the ship's design is substantially mature,
(3) strengthen the specification development and approval process,
(4) identify critical components and supply vendors early in the
program, and (5) reduce submarine combat system development risks. 
Because of the importance of applying both management and technical
lessons, GAO believes that the formal Defense Department approved
acquisition strategy should spell out specifically how the Navy will
avoid repeating the problems of earlier programs. 

Defense Management:
Impediments Jeopardize Logistics Corporate Information Management

GAO/NSIAD-95-28, Oct.  21 (80 pages). 

In 1992, the Defense Department (DOD) projected that its Corporate
Information Management (CIM) initiative would help it to save $36
billion by fiscal year 1997.  According the Joint Logistics Systems
Center, which was created to help achieve CIM goals, as much as $28
billion would be saved by improving DOD's logistics functions. 
Today, however, DOD is neither projecting nor tracking CIM savings. 
DOD officials acknowledge that the CIM initiative will be difficult
to implement, and it may be years before most of the savings
materialize.  As part of GAO's review of the CIM initiative, this
report focuses on the DOD logistics function of materiel management. 
GAO discusses (1) improvements made to business processes and
supporting information systems and (2) impediments to achieving CIM
results. 


   NATURAL RESOURCES
-------------------------------------------------------- Appendix 0:17

Forest Service:
Factors Affecting Timber Sales in Five National Forests

GAO/RCED-95-12, Oct.  28 (29 pages). 

In recent years, debate about the future of the national forest
system has focused on ensuring that timber harvests do not exceed the
forests' ability to replenish the available supply of timber.  An
important component of managing forests on a sustained-yield basis is
each forest's "allowable sale quantity"--an estimate of the maximum
volume of timber that can be sold from each forest over a 10-year
period without impairing other uses of the forest, such as recreation
or wildlife habitat.  GAO reviewed the allowable sale quantities and
the timber sales at five national forests--the Deschutes and Mt. 
Hood in Oregon, Gifford Pinchot in Washington, Ouachita in Arkansas,
and Chattahoochee-Oconee in Georgia.  The Forest Service did not meet
allowable sale quantities in the five forests for a variety of
reasons, including (1) limitations in the data and estimating
techniques on which the allowable sale quantities were originally
based, (2) new forest management issues and changing priorities, and
(3) rising or unanticipated costs associated with preparing timber
sales and administering harvests.  Although forest officials believed
that they used the best information available to develop the
allowable sale quantities, they later failed to meet these levels. 
As a result, timber sales for each of the five forests between fiscal
years 1991 and 1993 were significantly below the average annual
allowable sale quantity. 


   SOCIAL SERVICES
-------------------------------------------------------- Appendix 0:18

Early Childhood Programs:
Multiple Programs and Overlapping Target Groups

GAO/HEHS-95-4FS, Oct.  31 (34 pages). 

This report responds to a congressional request for information on
early childhood programs--that is, preschool and child care programs
for children from birth through age five.  In summary, GAO found that
in fiscal years 1992 and 1993, the federal government funded more
than 90 early childhood programs in 11 federal agencies and 20
offices.  Of these programs, 34 were key programs--early childhood
programs for which early childhood education or child care is the key
to the program's mission.  These key programs delivered services to
at least two million children below age five and spent at least $3.66
billion in fiscal year 1992.  However, data are limited on the exact
number of children served and the dollars spent on children below age
five.  Although these programs have some similarities, they may
target different populations, use different eligibility criteria, and
provide a different mix of services to children and their families. 


   TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:19

Tax Administration:
Compliance Measures and Audits of Large Corporations
Need Improvement

GAO/GGD-94-70, Sept.  1 (201 pages). 

Although the nation's 1,700 largest corporations pay billions of
dollars in taxes, do they pay all they owe?  To address this matter,
the Internal Revenue Service (IRS) audits these companies under its
Coordinated Examination Program.  Of the sizable sums that IRS
auditors recommend in additional taxes, how much is collected after
appeals and litigation?  What factors reduce amounts collected?  And
what is the status of IRS's ongoing changes to the program to address
those factors?  This report seeks to answer these questions. 

Tax Administration:
Continuing Problems Affect Otherwise Successful 1994
Filing Season

GAO/GGD-95-5, Oct.  7 (26 pages). 

The 1994 tax filing season was successful in many respects.  The
number of returns filed increased after an unexpected decline in
1993, and more taxpayers used alternatives to the traditional paper
filing method.  Tax refunds were generally processed accurately and
issued promptly, and IRS improved the accuracy of its return
processing, reducing the amount of rework.  IRS computers generally
worked well with minimal downtime.  Taxpayers looking for tax forms
and publications at IRS walk-in sites could reasonably expect to find
them, and taxpayers calling IRS' toll-free telephone lines with tax
law questions could generally expect to get accurate answers. 
However, there were some significant problems.  The number of
IRS-detected fraudulent refund claims continued the steady increase
that has troubled the agency for the past several years.  The ability
of taxpayers to reach IRS by telephone has been a problem for several
years and deteriorated even further in 1994.  The earned income
credit was the source of many errors by taxpayers and tax
practitioners preparing returns. 

Tax Administration:
IRS Can Strengthen Its Efforts to See That Taxpayers Are
Treated Properly

GAO/GGD-95-14, Oct.  26 (59 pages). 

Several initiatives have been undertaken in recent years to better
protect taxpayers--particularly the enactment of the Taxpayer Bill of
Rights in 1988 and the Internal Revenue Service's (IRS) continuing
efforts to improve its operations and treat taxpayers as customers. 
IRS also has a wide range of procedures and oversight governing the
behavior of its employees in the millions of contacts they have with
taxpayers each year.  However, because IRS has failed to define or
track taxpayer abuse, it is hard to assess IRS efforts to protect
taxpayers from abusive enforcement, unnecessarily long conflict
resolution, or unauthorized "snooping" into taxpayers' files. 


   TRANSPORTATION
-------------------------------------------------------- Appendix 0:20

Air Traffic Control:
Status of FAA's Plans to Close and Contract Out
Low-Activity Towers

GAO/RCED-94-265, Sept.  12 (25 pages). 

From fiscal year 1994 through fiscal year 1997, the Federal Aviation
Administration (FAA) plans to close low-activity air traffic control
towers that do not meet its benefit-cost criteria, contract out the
operations of all remaining towers, and relocate controllers from
towers that are closed or contracted out to other FAA facilities. 
FAA does not believe that safety will be jeopardized by closing or
contracting out low-activity towers.  FAA's benefit-cost criteria
include an assessment of safety, and FAA has not experienced safety
problems with towers that are already run by contractors.  This
report (1) determines the reasonableness of FAA's plans to close
low-activity towers and contract out the operations of others, (2)
assesses the reasonableness of the potential savings generated by
such actions, (3) identifies factors that could impede FAA's plans to
close and contract out towers, and (4) identifies steps that FAA can
take to enhance its strategy for reassigning controllers from closed
out or contracted
out towers. 

Global Positioning Technology:
Opportunities for Greater Federal Agency Joint Development
and Use

GAO/RCED-94-280, Sept.  28 (28 pages). 

Recent technology has made it possible to greatly improve the
accuracy of global positioning information available from satellites. 
This technology, called Differential Global Positioning Systems,
allows pilots, surveyors, and others using satellite positioning
information for civil uses to determine their position on earth to
within a few meters--or even a few centimeters.  Many civilian
federal agencies, such as the Federal Aviation Administration, are
actively pursuing the use of this technology.  GAO looked into
whether federal agencies are taking full advantage of opportunities
to share or jointly develop their systems so as to minimize the cost
to taxpayers.  This report discusses (1) the extent to which agencies
have been developing joint systems or sharing equipment and (2)
additional steps that may be needed to enhance joint development or
sharing of Differential Global Positioning Systems equipment,
facilities, and information. 

New Denver Airport:
Impact of the Delayed Baggage System

GAO/RCED-95-35BR, Oct.  14 (51 pages). 

The automated baggage handling system at the new Denver International
Airport has been plagued by serious mechanical and software problems
and has yet to successfully pass the tests necessary for it to be
certified operational.  In previous tests of the system, bags were
misloaded, were misrouted, or fell out of telecarts, causing the
system to jam.  Although the contractor is making changes to the
system to overcome these problems, the airport is installing an
alternative, conventional baggage-handling system that can be used
until the automated system is operating.  The alternative system is
estimated to cost about $51 million.  This briefing report discusses
(1) problems with the baggage-handling system that delayed the
airport's opening, (2) the added costs resulting from the delay, and
(3) the adequacy of expected revenues at the new airport to cover the
cost of running the facility and to service its debt. 


      TESTIMONY
------------------------------------------------------ Appendix 0:20.1

Aviation Safety:  FAA's Efforts to Improve Oversight of Foreign
Carriers, by Allen Li, Associate Director for Transportation Issues,
before the Subcommittee on Investigations and Oversight, House
Committee on Public Works and Transportation.  GAO/T-RCED-95-33, Oct. 
4 (eight pages). 

Although the Federal Aviation Administration (FAA) has taken several
steps to strengthen its oversight of foreign countries' civil
aviation programs and their individual carriers, GAO believes that
FAA could do more.  The agency has finished assessments of the
oversight capabilities of the civil aviation authorities of 30
foreign governments, and the Transportation Department has announced
the results of these assessments.  Also, FAA is working with foreign
aviation authorities to improve their safety oversight programs and
is increasing the frequency of its inspections of carriers with known
safety deficiencies.  FAA and the State Department have also
developed better ways to track enforcement cases referred to foreign
governments for action.  However, these oversight efforts could be
further refined if FAA implemented GAO's recommendations that the
agency (1) do more comprehensive inspections of foreign carriers with
safety problems, (2) inspect U.S.-registered, foreign-operated
aircraft before they return to service in this country, and (3)
follow up to determine whether identified safety deficiencies have
been corrected. 


   VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:21

Veterans' Health Care:
Use of VA Services by Medicare-Eligible Veterans

GAO/HEHS-95-13, Oct.  24 (24 pages). 

Medicare-eligible veterans make substantial use of Department of
Veterans Affairs (VA) services not extensively covered under
Medicare.  GAO found that many of these veterans turn to VA
specifically to obtain such services, particularly prescription
drugs, inpatient psychiatric care, and long-term nursing care.  Also,
many Medicare-eligible veterans who use VA health care facilities
have lower incomes and less private insurance than those who rely
solely on Medicare, suggesting that out-of-pocket costs may have
influenced veterans to turn to VA for health care.  Changes to
Medicare or veterans health benefits made as a result of health care
reform could significantly affect future demand for VA health care
services.  Medicare changes that would add benefits, such as
outpatient prescription drugs, or reduce beneficiary cost sharing
could lower demand for VA health care services.  On the other hand,
VA benefit changes, such as the elimination of restrictions on access
to outpatient services, improved access to care, and expanded
entitlement to free care, could boost demand for VA health care. 
Finally, the historic reluctance of Medicare beneficiaries to enroll
in health maintenance organizations could reduce their willingness to
enroll in VA health plans as long as traditional fee-for-service care
remains available under Medicare. 


   SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:22

GAO Reports:
Health, Education, Employment, Social Security, Welfare, and Veterans
Issues

GAO/HEHS-95-17W, Oct.  1994 (60 pages). 

This booklet lists GAO documents issued on government programs
related to health, education, employment, social security, welfare,
and veterans affairs issues, which are primarily run by the
Departments of Health and Human Services, Labor, Education, and
Veterans Affairs.  One section identifies reports and testimonies
issued during the past two months and summarizes key products. 
Another section lists all documents published during the past two
years, organized chronologically by subject.  Order forms are
included. 
