Reports and Testimonies: November 1994 (Other Written Prod., 11/94,
GAO/OPA-95-2).

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

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

 REPORTNUM:  OPA-95-2
     TITLE:  Reports and Testimonies: November 1994
      DATE:  11/01/94
   SUBJECT:  Property disposal
             International relations
             Budget administration
             Financial management
             Breast cancer
             Health care services
             Environmental monitoring
             Military bases
             Submarines
             Agricultural policies
IDENTIFIER:  Bibliographies
             DOD Bottom-Up Review
             
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REPORTS AND TESTIMONY:
NOVEMBER 1994

GAO/OPA-95-2


Highlights

Attack Submarines

A GAO review showed that several alternatives are available that
would allow the Navy to maintain a fleet of between 45 and 55
nuclear-powered attack submarines, as recommended by the Defense
Department's bottom-up review, while saving as much as $17 billion in
procurement costs.  Page 15. 

Breast Cancer Survival

Breast cancer patients treated in regular medical practice who choose
breast conservation therapy over mastectomy do not diminish their
changes of survival, a finding that is consistent with survival rates
for patients treated in specialized single-center or multi-center
research facilities.  Page 11. 

Military Bases

Property sales at closed military bases were originally expected to
yield $4.1 billion, but sales so far have produced only about $92
million in revenue.  Most land is being transferred to other federal
agencies or to states at no cost, and many communities are seeking
grants or other assistance to make use of former military property. 
Page 16. 

GAO/OPA-95-2



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

  BIF -
  CHAMPUS -
  DCAA -
  DOD -
  DOE -
  EEO -
  EPA -
  FDA -
  FDIC -
  FmHA -
  GSP -
  HCFA -
  HIV -
  INS -
  NASA -
  RTC -
  SAIF -
  SSN -
  VA -

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


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

Farmers Home Administration:
The Guaranteed Farm Loan Program Could Be Managed
More Effectively

GAO/RCED-95-9, Nov.  16 (77 pages). 

Because it assists farmers who present less financial risk than
direct loan borrowers, the Farmers Home Administration's (FmHA)
guaranteed farm loan program has substantially lower rates of
delinquency and loan losses than its direct loan program. 
Nonetheless, FmHA has hundreds of millions of dollars in guaranteed
loans that are at risk, in part, because FmHA's lending policies
allow borrowers who defaulted on past loans to obtain new guaranteed
loans.  Also, FmHA's field office officials have not always followed
the agency's standards for servicing guaranteed loans, which are
meant to protect the government's financial interests.  The
guaranteed loan program has not been effectively used as a tool to
graduate direct loan borrowers to commercial credit.  As a result,
some borrowers may keep direct loans longer than justified, taking
advantage of the more favorable terms.  Commercial lenders told GAO
that changes are needed to FmHA's farm loan programs in order for
lenders to consider taking on more direct loan borrowers as clients. 
They suggest changing the direct loan program to provide incentives
for borrowers to seek commercial credit and changing the guaranteed
loan program to make it more attractive
to lenders. 

U.S.-Canadian Food Safety:
Opportunities for Sharing Information and Coordinating Inspections

GAO/RCED-95-45, Nov.  22 (10 pages). 

The United States and Canada are long-standing trading partners and
import large amounts of food from other countries.  The two countries
have also established similar systems to guarantee the safety of
imported foods.  Recent international trade agreements, such as the
General Agreement on Tariffs and Trade and the North American Free
Trade Agreement, are smoothing the way for increased trade in foods. 
GAO and Canada's Office of the Auditor General undertook concurrent
reviews to examine how the United States and Canada share information
on and coordinate activities regarding shipments of unsafe foods and
inspections of foreign food-processing plants.  The Canadian report,
entitled Federal Management of the Food Safety System:  Concurrent
Review of Third-Country Food Imports, accompanies this report.  The
joint survey concludes that although Canadian and U.S.  agencies
share information about food safety on an informal and ad hoc basis,
a more comprehensive system for sharing information about food
shipments and inspection of foreign food processing facilities would
help both countries better target food safety resources. 


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

Impoundments:
Historical Information on Proposed and Enacted Rescissions, Fiscal
Years 1974-95

GAO/OGC-95-1, Nov.  17 (six pages). 

To keep Congress abreast of the amount and frequency of rescissions,
GAO updated its previous compilation of historical information and
statistics on rescissions proposed by the executive branch and
rescissions enacted by Congress through the close of the fiscal year. 


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

Insurance Industry:
Chronology of F.T.  Riley's Activities and Related
Regulatory Actions

GAO/OSI-95-5, Oct.  26 (17 pages). 

In response to congressional concerns about fraud and abuse within
the insurance industry, GAO investigated the business practices of
Ferrell Travis Riley.  Before September 1994, no federal statutes
directly prohibited insurance fraud, and states having statutes
prohibiting fraud were often reluctant to investigate and prosecute
insurance fraud cases because of budget and jurisdictional problems. 
By taking advantage of this environment, Mr.  Riley and his companies
have continued to operate in a questionable manner by moving from
state to state.  In little more than a decade, Mr.  Riley and his
associates engaged in insurance activities in at least 18 states. 
This report presents a chronology of Mr.  Riley's activities, his
methods of operation, and regulatory actions taken by state
regulators against him and his companies. 


   CIVIL RIGHTS
--------------------------------------------------------- Appendix 0:4


      TESTIMONY
------------------------------------------------------- Appendix 0:4.1

Equal Employment Opportunity:  Immigration and Naturalization
Service's Equal Employment Opportunity Program, by Timothy P. 
Bowling, Associate Director for Federal Human Resource Management
Issues, before the Subcommittee on Legislation and National Security,
House Committee on Government Operations.  GAO/T-GGD-95-41, Nov.  17
(19 pages). 

As of August 1994, the Immigration and Naturalization Service (INS)
had eliminated its equal employment opportunity (EEO) complaint
backlog of cases filed before fiscal year 1993.  Although 141 of
these complaints remained in the inventory, all of these complaints
were either awaiting a hearing before the Equal Employment
Opportunity Commission or were awaiting a final agency decision at
the Justice Department.  INS consistently reduced the average number
of calendar days for processing EEO discrimination complaints during
fiscal years 1989 to 1993.  INS more than tripled EEO program
resources during fiscal years 1993 and 1995.  The INS EEO Task Force
made 36 recommendations for improving the representation of
African-Americans and other minorities.  According to the EEO
Director, 34 of these recommendations are being implemented.  Between
September 1992 and September 1994, INS promoted about 1,000 employees
to supervisory and managerial jobs.  Minority employees accounted for
about 40 percent of the promotions, while women accounted for about
32 percent.  African-American men and women accounted for about 11
percent of the promotions. 


   EMPLOYMENT
--------------------------------------------------------- Appendix 0:5

Garment Industry:
Efforts to Address the Prevalence and Conditions of Sweatshops

GAO/HEHS-95-29, Nov.  2 (16 pages). 

Sweatshop working conditions remain a major problem in the U.S. 
garment industry according to experts GAO contacted.  They say that
working conditions, in many cases, have worsened during recent years. 
In general, today's sweatshops differ little from those at the turn
of the century.  The Labor Department has made some progress in
combating the growth of sweatshops in the garment industry, but
better coordination of labor law enforcement continues to encounter a
variety of impediments.  Some of these stem from existing legislative
and administrative constraints on the Occupational Safety and Health
Administration and the Internal Revenue Service.  Further, although
Labor's Wage and Hour Division has achieved coordination with those
states that stress labor law enforcement, such as California and New
York, the potential for such coordination appears far less with
states with less vigorous enforcement, such as Florida and Texas. 
The Division also faces a huge and expanding regulatory mandate as
its enforcement resources continue to decline.  GAO applauds the
Division's recent efforts to work with garment industry manufacturers
to foster voluntary compliance of their contractors with federal and
state labor laws.  However, the Division recognizes that should these
voluntary efforts fail, legislative action, such as making
manufacturers jointly liable for back wages owed by bankrupt
contractors, may be needed to better protect garment workers from
exploitation.  GAO also issued a separate report in November on the
tax compliance of sweatshops.  (See page 20.)


   FINANCIAL INSTITUTIONS
--------------------------------------------------------- Appendix 0:6

Failed Financial Institutions:
RTC/FDIC Risk Fraud and Mismanagement by Employing Those Deemed
Culpable

GAO/OSI-95-1, Oct.  3 (22 pages). 

The Resolution Trust Corporation (RTC) and the Federal Deposit
Insurance Corporation (FDIC) may not always know when they about to
hire, or already employ, someone responsible for the losses that
caused a federally insured financial institution to fail.  Neither
agency systematically screens job applicants or workers to determine
their culpability in financial institution failures.  Their inability
to make informed decisions on the hiring or duties of such persons
increases FDIC's vulnerability to fraud, abuse, or mismanagement. 
Further, although RTC will transfer its assets and operations to FDIC
when RTC closes down at the end of 1995, GAO believes that both
agencies need to respond to the findings of this report as they
prepare for the upcoming transition.  Despite the dwindling number of
institutions now in conservatorship, the vulnerability of any failed
thrift to culpable individuals will remain a concern as long as
conservatorship is a resolution option. 

Deposit Insurance Funds:
Compliance With Obligation and Repayment Requirements as of March 31,
1994

GAO/AIMD-95-15, Nov.  4 (24 pages). 

The Federal Deposit Insurance Corporation's (FDIC) maximum obligation
limitation calculations show that as of March 31, 1994, (1) the Bank
Insurance Fund's (BIF) assets and other funding sources exceeded its
obligations by $48 billion and (2) the Savings Associations Insurance
Fund's (SAIF) assets and other funding sources exceeded its
obligations by $1.6 billion.  Nothing came to GAO's attention that
would lead it to question the reasonableness of the amounts reported. 
As of March 31, 1994, neither BIF nor SAIF had borrowed funds for
insurance losses from the U.S.  Treasury, although changing economic
conditions and other factors could affect the need for future
borrowings.  FDIC anticipates that neither BIF nor SAIF will need to
borrow money from Treasury to cover insurance losses through fiscal
year 1999 and that BIF and SAIF will achieve their designated ratios
of reserves to insured deposits of 1.25 percent by 1995 and 2002,
respectively.  FDIC borrowed no funds from the Federal Financing Bank
for working capital needs during the quarter ending March 31, 1994. 
FDIC repaid the outstanding balance of BIF's previous borrowings from
the Federal Financing Bank on August 6, 1993. 

Resolution Trust Corporation:
Better Data Could Improve Effectiveness of Nonperforming
Loan Auctions

GAO/GGD-95-1, Nov.  14 (36 pages). 

GAO reviewed the national nonperforming loan auction held in August
1993 in Kansas City, Missouri.  Incomplete and outdated loan data
hindered the Resolution Trust Corporation's (RTC) efforts to
identify, select, and dispose of nonperforming loans through the
August 1993 auction.  RTC's initial selection of loans was incorrect
because many of the loans (1) did not meet the auction's criteria,
(2) were involved in litigation, (3) had already been paid off or
sold, (4) had been designated for other sales, or (5) had loan files
that could not be located.  As a result, the 11,181 loans, with a
total book value of $673 million, offered and sold far short of the
60,000 loans initially planned for the August 1993 auction.  The loan
data RTC gave to investors before the August 1993 auction were not
always adequate, although RTC spent a great deal of time and money on
gathering detailed information about the loans to be offered for sale
at the auction.  Investors generally believed that RTC's data were
useful, but they found that important data were missing.  Some
investors said that this hampered their ability to evaluate the loans
and make bidding decisions, causing them to lower their bids or not
participate.  RTC is taking steps to address the issues GAO has
identified. 


   FINANCIAL MANAGEMENT
--------------------------------------------------------- Appendix 0:7

Battle of Normandy Foundation:
Uncertainties Surround Its Future Viability

GAO/AIMD-95-10, Nov.  4 (15 pages). 

The Battle of Normandy Foundation, a private, nonprofit organization
formed in 1985 to honor America's World War II veterans and teach
future generations about the war, has sought to build a memorial
garden in Normandy, France.  However, the Foundation has been plagued
by serious managerial and financial problems.  The Foundation
recently had to appoint its fourth president in six months and change
the leadership of its Board of Directors.  Also, the Foundation's
liabilities substantially exceed its assets.  Unless the Foundation
obtains enough funding and achieves management stability, it is
uncertain whether it can pay to run the memorial garden and whether
other projects will move forward.  GAO's audit found that the
Foundation spent the $3 million it received in 1993 from the U.S. 
Treasury for the design and construction of the memorial garden in
Normandy in accordance with the Coins Act.  The total recorded cost
of the memorial garden through June 1994 was $3.6 million; however,
about $400,000 was still owed to memorial garden contractors. 
Foundation officials concurred with a draft of this report. 

Financial Audit:
House Recording Studio Revolving Fund for the Periods Ended 9/30/93
and 9/30/92

GAO/AIMD-95-11, Nov.  8 (15 pages). 

GAO audited the financial statements of the House Recording Studio
Revolving Fund as of September 30, 1993, and September 30, 1992, and
the related statements of revenues and expenses and cash flows.  The
Studio makes photographic prints, as well as radio and television
tape recordings, for House Members and Committees.  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. 

Rural Telephone Bank:
Review of Fiscal Year 1994 Interest Rates on Rural Telephone Bank
Loans

GAO/AIMD-95-29, Nov.  18 (12 pages). 

GAO is required to review each year the interest rate charged to
borrowers, referred to as the cost of money rate, as set by the Rural
Telephone Bank for the preceding fiscal year.  The Rural Telephone
Bank now calculates the following two rates:  (1) the interest rate
used for advances made during fiscal year 1994 on loans approved
before fiscal year 1992 (referred to as loans from the liquidating
account) and (2) the interest rate used for advances made during
fiscal year 1994 on loans approved during or after fiscal year 1992
(referred to as loans from the financing account).  The Rural
Telephone Bank's fiscal year 1994 cost of money rates were pegged at
6.15 percent and 6.40 percent for advances from the liquidating
account and financing account, respectively.  GAO found these rate
determinations to be in accordance with the law. 

Financial Audit:
Congressional Award Foundation's Financial Statements for the Periods
Ended 9/30/93 and 12/31/92

GAO/AIMD-95-14, Nov.  25 (13 pages). 

GAO audited the Congressional Award Foundation's statements of
financial position as of September 30, 1993, and December 31, 1992,
and the related statements of revenues, expenses, and changes in fund
balance and statements of cash flows.  The Foundation was established
to promote achievement among youth in public service, personal
development, and physical fitness.  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 material to the financial statement
would be prevented or detected; and there was no material
noncompliance with laws and regulations.  GAO's last report, covering
financing statements for 1990 through 1992, noted that although the
Foundation had made some minor improvements to its internal controls,
serious problems remained.  Since then, management pursued additional
accounting expertise and aggressively implemented internal control
procedures, which yielded significant improvements and allowed GAO to
give an unqualified opinion on internal controls as of
September 30, 1993. 


   GOVERNMENT OPERATIONS
--------------------------------------------------------- Appendix 0:8

Radio Marti:
Program Review Processes Need Strengthening

GAO/NSIAD-94-265, Sept.  23 (12 pages). 

Radio Marti, a U.S.-funded radio station, was established in 1983 to
broadcast uncensored news and information to Cuba.  Radio Marti
programs are required to be objective and balanced and to present a
variety of views.  For several years, allegations have been made that
political bias has undermined the accuracy and objectivity of Radio
Marti's news and information broadcasts.  This report reviews the
implementation of the U.S.  Information Agency's plan for enhancing
the overall review of process of Radio Marti by (1) moving a program
review unit from the Office of Voice of America programs to the
Office of the Associate Director, Bureau of Broadcasting, and making
the unit responsible for overseeing the review process at Radio Marti
and (2) creating an external review panel to evaluate broadcast
practices at Radio Marti. 

Bid Protests:
Attorneys' Fees Paid to Bid Protesters by Federal Agencies

GAO/GGD-95-17FS, Nov.  7 (nine pages). 

In response to congressional consideration of the Federal Acquisition
Streamlining Act, which would limit attorneys' fees paid for bid
protests and exclude small businesses from the limitation, this
report discusses attorneys' fees paid to bid protesters by federal
agencies.  GAO focuses on bid protests sustained by GAO and the
General Services Administration Board of Contract Appeals during
fiscal years 1992 and 1993.  GAO provides information on the number
of sustained or granted bid protests, the number of bid protests in
which attorneys' fees were paid, the ranges of attorneys' hourly
rates, the average attorney fee per hour, the number of bid protests
in which the protester was a small business, and the number of bid
protests in which the contract awardee was a small business. 

District of Columbia:
Information on the District's Debt

GAO/AIMD-95-19, Nov.  22 (18 pages). 

As of September 30, 1994, the District of Columbia had $3.65 billion
in long-term general obligation debt and the debt service as a
percent of revenues was 11.42 percent.  GAO estimates that the
District's debt service percent will reach 13.84 percent by the year
2000--very close to the statutory 14-percent limit.  The District's
general obligation bond rating as of September 30, 1994, is the
lowest investment grade rating and is below that of any state and
nearly all of the largest cities.  The bond rating has not changed
since the District began issuing such bonds in 1984.  Various debt
indices are available to compare the District's debt levels with
those of other jurisdictions.  Two indices--debt per capita and debt
as a percentage of real property--suggest that the District has a
high level of debt when compared with other jurisdictions.  However,
the District is unique and such comparisons may not be meaningful
because the District has service responsibilities that include
elements of both city and state governments.  GAO also found that the
debt service percent calculations contained in the general obligation
bond offering documents are based on the method required by the Home
Rule Act.  However, the debt service percent calculations found in
the District's multiyear plans and annual financial statement plans
are not consistent with this methodology and could mislead users of
this information. 


      TESTIMONY
------------------------------------------------------- Appendix 0:8.1

U.S.  Postal Service:  The State of Labor-Management Relations, by
Michael E.  Motley, Associate Director for Government Business
Operations Issues, before the Subcommittee on Federal Services,
Senate Committee on Governmental Affairs.  GAO/T-GGD-95-46, Nov.  30
(14 pages). 

GAO testified that labor-management relations of Postal Service
facilities are poor and sometimes acrimonious.  These conditions have
persisted for years because labor and management leadership--both
national and local--have been unable to work together to find
solutions to their problems.  At the same time, mail delivery and
customer satisfaction, which are highly dependent on employee and
management commitment, have deteriorated.  Under Postmaster General
Marvin Runyon's direction, the Postal Service has taken significant
and promising steps to change its culture and improve its
performance.  However, lasting improvements will be realized only if
postal management, union, and management association leaders at all
levels are committed to changing their traditional practices.  This
may require modifying the national agreements to allow for workplace
flexibility; empowering employees through work teams; and linking
pay, in part, to organizational and unit performance. 


   HEALTH
--------------------------------------------------------- Appendix 0:9

Breast Conservation Versus Mastectomy:
Patient Survival in Day-to-Day Medical Practice and in
Randomized Studies

GAO/PEMD-95-9, Nov.  15 (48 pages). 

GAO's analysis indicates that--for the kinds of patients GAO
studied--the effectiveness of breast-conservation therapy has, on
average, been similar to that of mastectomy in community medical
practice as well as in randomized studies.  Specifically, for medical
practice cases, the adjusted five-year survival rates (averaged
across all selected patients) were 86.3 percent for
breast-conservation patients and 86.9 percent for mastectomy
patients.  These results clearly correspond to the results of
multicenter randomized studies (88 percent five-year survival for
breast conservation and 88 percent for mastectomy).  Single-center
studies reported somewhat higher survival for both treatment groups. 
Thus, on average, for breast cancer patients of doctors in regular
medical practice who are similar to patients in randomized studies,
there appears to be no appreciable risk linked to choosing
breast-conservation therapy rather than mastectomy. 

Family Planning Clinics:
Strain of Norplant's High Up-Front Costs Has Subsided

GAO/HEHS-95-7, Oct.  7 (eight pages). 

When Norplant was first introduced in the United States in 1990, its
high up-front costs made it difficult for federally funded family
planning clinics to provide Norplant to all clients requesting it. 
Because the demand for Norplant has since leveled off and in some
cases declined, the price of Norplant in the United States is no
longer a major budgetary issue for these clinics.  The demand for
Norplant appears to have declined because Norplant lasts five years
and is reported to have adverse side effects.  Further, women have
turned to another more recently introduced injectable contraceptive
that does not involve surgery and costs $30 plus physician fees for
three months of contraceptive protection.  Comparing Norplant's U.S. 
price to its international prices is difficult because different
pharmaceutical companies distribute the implant in the United States
and abroad.  Wyeth-Ayerst Laboratories, Norplant's U.S.  and Canadian
distributor, sells Norplant for $365--about $100 more than Roussel
Uclaf sells it for in Great Britain.  Also, the contents of the
Norplant package vary widely among distributors. 

Medicare:
Referrals to Physician-Owned Imaging Facilities Warrant
HCFA's Scrutiny

GAO/HEHS-95-2, Oct.  20 (61 pages). 

Because Florida had the only statewide information then available on
doctors with a financial stake in imaging center joint ventures, GAO
analyzed 1990 Medicare claims for imaging services ordered by
physicians in that state.  GAO found that Florida doctors with a
financial interest in such centers ordered about $10 million more in
Medicare-paid imaging services than other doctors in 1990.  Florida
physicians with imaging facilities in their offices, group practices,
or other practice settings also had high imaging rates compared with
those of other physicians.  The Department of Health and Human
Services has not yet finalized the regulations and procedures needed
to implement and enforce federal self-referral restrictions that
would apply to doctors with a financial interest in joint ventures. 
Moreover, the Health Care Financing Administration (HCFA) has no
system to check physician-referral patterns to identify abusive
overutilization of self-referrals. 

Telecommunications:
Status of Research on the Safety of Cellular Telephones

GAO/RCED-95-32, Nov.  4 (40 pages). 

On the basis of present scientific knowledge, federal agencies have
no reason to take regulatory action on the use of portable cellular
telephones because no research has been completed on long-term human
exposure to the low levels of radiation generated by these phones and
research findings on exposure to other sources of low-level
radio-frequency radiation are inconclusive.  According to the Food
and Drug Administration (FDA) and the National Science Foundation,
both epidemiological and laboratory studies are needed to determine
any link between cellular telephone use and human diseases.  The
cellular telecommunications industry plans to do both types of
studies.  If federal regulators want to use this research, they need
assurances that it will be carried out objectively.  FDA is working
with cellular telephone manufacturers on the possibility of
redesigning portable cellular telephone and on providing users with
instructions for proper use.  The Federal Communications Commission
has proposed revising standards set by the American National
Standards Institute for radio-frequency radiation; this standard may
be applied to cellular telephones. 


   INFORMATION MANAGEMENT
-------------------------------------------------------- Appendix 0:10

High Performance Computing and Communications:
New Program Direction Would Benefit From a More Focused Effort

GAO/AIMD-95-6, Nov.  4 (40 pages). 

The federal High Performance Computing and Communications program
seeks to accelerate research and development of high performance
computers and networks and to promote their use in both the federal
government and the private sector.  If successful, the program could
significantly extend U.S.  technological leadership and enhance
national competitiveness.  This report examines the (1) effectiveness
of the program's management structure in setting goals and measuring
progress and (2) extent to which private industry has been involved
in the program's planning and execution.  GAO also identifies
opportunities to improve the program and makes recommendations to
focus the program on its new role in developing new technology in
support of the national information infrastructure. 


   INTERNATIONAL AFFAIRS
-------------------------------------------------------- Appendix 0:11

Cargo Preference:
Effects of U.S.  Export-Import Cargo Preference Laws on Exporters

GAO/GGD-95-2BR, Oct.  31 (27 pages). 

This report examines the frequency with which exemptions from cargo
preference requirements for exports financed by the U.S. 
Export-Import Bank were granted between 1990 and 1992.  GAO found
that in 1990 and 1991, the number of general waivers that the
Maritime Administration granted held steady at seven, but that in
1992, they more than doubled to 15.  From 1990 to 1992, the number of
statuary waivers, granted when U.S.-flag vessels were unavailable,
more than tripled from 28 to 102.  GAO did not find any situations in
which cargo preference requirements were causing U.S.  exporters to
lose sales; however, exporters did raise other concerns resulting
from their compliance with the requirements.  GAO did not find any
evidence that midwestern exporters were uniquely affected by the
requirements. 

International Trade:
Assessment of the Generalized System of Preferences Program

GAO/GGD-95-9, Nov.  9 (154 pages). 

The Generalized System of Preferences (GSP) Program, which provides
duty-free access to the United States for products of developing
countries, awaits congressional reauthorization.  This program
eliminates tariffs on some imports from developing countries in order
to promote development through trade rather than traditional aid
programs.  Concerns have been raised as to whether program
administration adequately considers the impact of GSP imports on
domestic producers and effectively enforces beneficiary country
obligations.  This report analyzes (1) benefits provided to
beneficiary developing countries, (2) limitations on GSP imports, (3)
administration of the program for adding or removing products from
GSP coverage, and (4) administration of program requirements that
countries follow certain intellectual property and worker rights
practices. 

International Trade:
Issues Regarding Imposition of an Oil Embargo Against Nigeria

GAO/GGD-95-24, Nov.  10 (14 pages). 

The U.S.  House of Representatives has condemned the effort of
Nigeria's military government to thwart that country's return to
civilian and democratic rule and to jail prominent human rights
activists and democratic political leaders.  This report assesses the
potential economic impact of a multilateral oil embargo on Nigeria,
the world oil market, and the U.S.  economy.  GAO also examines the
political viability of undertaking such an action.  Finally, GAO
assesses the potential economic impact of a U.S.  unilateral oil
embargo on Nigeria, the world market, and the U.S.  economy, as well
as its potential political impact on Nigeria. 

Food Aid:
Private Voluntary Organizations' Role in Distributing Food Aid

GAO/NSIAD-95-35, Nov.  23 (36 pages). 

The United States has provided food assistance to developing
countries since passage of the Agricultural Trade Development and
Assistance Act of 1954.  Congress has directed that at least 76
percent of the legislated minimum amounts of agricultural commodities
provided under the act be used for nonemergency development
activities of U.S.  private voluntary organizations or such
multilateral organizations as the World Food Program.  GAO reviewed
private voluntary organizations' food aid projects in Ghana,
Honduras, and Indonesia and extensively reviewed the literature on
private voluntary organizations' food aid and development efforts. 
This report describes (1) the role of private voluntary organizations
in distributing food aid and (2) the impact of direct-feeding
programs on enhancing the long-term food security of recipient
countries, including how well projects are targeted to people
vulnerable to malnutrition and whether food-for-work projects
significantly improve infrastructure. 


   NATIONAL SECURITY
-------------------------------------------------------- Appendix 0:12

Attack Submarines:
Alternatives for a More Affordable SSN Force Structure

GAO/NSIAD-95-16, Oct.  13 (45 pages). 

Faced with a changed world threat, a new defense posture, and
shrinking budgets, the Navy is reducing the size of its
nuclear-powered attack submarine (SSN) fleet.  To maintain a force of
45 to 55 SSN submarines, as directed in the Defense Department's
bottom-up review budgets, the Navy plans to extend the amount of time
SSNs operate between major maintenance periods, allow no more than
three costly SSN-688 submarine refuelings per year, and operate the
submarines for their service life of 30 years.  At the same time, the
Navy plans to buy 31 SSNs through 2014 at an estimated cost of $48
billion.  GAO identified several alternatives that would allow the
Navy to free up money and still maintain the minimum force structure
of 45 SSNs.  For example, if the Navy acquired only 25 SSNs through
2014, it would save $9 billion and maintain close to 55 SSNs through
2013, but decline to 45 SSNs by 2020--still within the range directed
by the bottom-up review.  Under another alternative, the Navy could
operate some SSN-688s beyond 30 years and defer spending an
additional $8 billion in procurement costs.  A third alternative
would be to defer new construction of SSNs and free up billions of
dollars in the near term.  Further, studies have shown that the
estimated costs to restart submarine construction in 2003 are less
than the potential $9 billion in savings, suggesting that a deferral
strategy warrants further study. 

Military Bases:
Reuse Plans for Selected Bases Closed in 1988 and 1991

GAO/NSIAD-95-3, Nov.  1 (32 pages). 

Revenues from property sales at closed military bases will be far
less than the Defense Department's (DOD) original estimate of $4.1
billion.  Most land is being kept by DOD or is being transferred to
other federal agencies or to the states at no cost.  Sales so far
have yielded only about $92 million in revenue.  DOD plans to sell
another 9,400 acres, so additional revenues may be realized. 
Meanwhile, many communities acquiring former military property are
seeking grants or other federal assistance, including building and
infrastructure upgrades.  They have also sought marketable
cash-producing properties, such as golf courses and housing units. 
GAO noted several reasons for delays in the transfer of the property
to the communities.  Disagreements between federal agencies, groups
that serve the homeless, Indian groups, and local community interests
over reuse plans have caused delays at some bases.  Changing laws and
regulations have also created uncertainties for some communities
planning to convert surplus base properties.  In addition,
environmental contamination at some bases will delay their transfer
until they are cleaned up. 

Military Readiness:
DOD Needs to Develop a More Comprehensive Measurement System

GAO/NSIAD-95-29, Oct.  27 (26 pages). 

The Defense Department (DOD) definition and indicators for measuring
readiness provide valuable information, but this information is
limited and cannot signal an impending change in readiness. 
Moreover, the Status of Resources and Training System, which measures
whether individual service units possess the required resources and
are trained to do their wartime missions, was never intended to
provide the comprehensive assessment of overall military readiness
that has become increasingly important in today's national security
environment.  To supplement data reported in DOD's system and
facilitate readiness assessments at the unit level, the military
commands independently monitor many additional

indicators.  These indicators are generally not reported to higher
command levels.  GAO visited 39 military commands and other DOD
agencies and compiled a list of more than 650 such indicators. 
Military commanders and outside defense experts said that many of
these indicators not only were critical to a comprehensive readiness
assessment at the unit level but also had predictive value.  The
indicators do require, however, some refinement to improve their
usefulness. 

Army Armored Systems:
Advanced Field Artillery System Experiences Problems With
Liquid Propellant

GAO/NSIAD-95-25, Nov.  2 (18 pages). 

In developing its Advanced Field Artillery system, the Army decided
to use a liquid propellant rather than a solid or powder propellant,
which has traditionally been used in such guns.  GAO found that the
Army's most advanced liquid propellant gun had been severely damaged
during a recent test firing.  The Army has suspended all live-fire
testing with its most advanced gun until the cause of the explosion
is found and corrected.  However, to maintain the current schedule,
the Army has decided to seek the Defense Acquisition Board's approval
to proceed into the next development phase without additional
live-fire test data and has requested nearly $61 million to do this. 
This approach will allow the gun to go into the demonstration and
validation phase even though the Army (1) has not corrected the
problem that caused the explosion and (2) uses a technology that
cannot now meet the system's required rate-of-fire.  The Army's
current acquisition strategy calls for the concurrent development of
the unicharge gun as a prudent risk management backup for the
Advanced Field Artillery system.  However, the Army's current budget
request states that funding for this alternative will end after
fiscal year 1995. 

Pollution Prevention:
The Navy Needs Better Plans for Reducing Ship Waste Discharges

GAO/NSIAD-95-38, Nov.  4 (18 pages). 

Despite 15 years of research, the Navy has made little progress in
developing equipment to process solid waste aboard ships, though
required by a 1973 treaty.  The Navy has spent more than $50 million
to develop four types of shipboard solid-waste-processing
equipment--a vertical trash compactor, a solid waste pulper, a
plastics processor, and a metal and glass shredder.  However,
development of only the plastics processor is moving ahead at this
time.  Prior planning to reduce the discharge of ships' solid waste
was not well-coordinated and did not include interim milestones for
measuring progress toward minimizing waste.  Coordination for the
Navy's expected November 1996 plan has improved but still suffers
from a lack of tasks and milestones. 

Ready Reserve Force:
Ship Readiness Has Improved, but Other Concerns Remain

GAO/NSIAD-95-24, Nov.  8 (64 pages). 

Ships move about 90 percent of all dry cargo needed to support U.S. 
forces.  The Ready Reserve Force--a government-owned inactive fleet
of former commercial ships of various types--is the government's
largest source of strategic sealift capability.  During the Persian
Gulf War, 75 percent of the Ready Reserve Force ships could not be
made ready by their specified deadlines, mainly because of the ships'
poor conditions and because of crewing problems.  This report
discusses whether (1) program changes to address these problems have
improved the ships' overall readiness, (2) the readiness level of the
highest priority ships exceeds that of other strategic mobility
components, and (3) a further decline in the number of available U.S. 
merchant mariners would have a long-term effect on crewing Ready
Reserve Force ships. 


   NATURAL RESOURCES
-------------------------------------------------------- Appendix 0:13

Forest Service:
Land Acquisitions Within the Lake Tahoe Basin

GAO/RCED-95-22, Oct.  31 (34 pages). 

The Santini-Burton Act, enacted in 1980, authorized the sale of about
7,000 acres of federal lands within Clark County, Nevada, to allow
more orderly development of the communities there.  The federal lands
were owned by the Bureau of Land Management.  The act also required
the bulk of the proceeds from the land sales to be used for a buyout
program in which the government would purchase environmentally
sensitive private lands around Lake Tahoe in an effort to stem
further degradation of the lake.  Concerns have been raised about
whether property owners in the Lake Tahoe Basin were treated fairly
when the lands were acquired under the act.  This report determines
the extent to which (1) the Forest Service acquired lands within the
basin under the buyout program, (2) the classification of lands
within the basin as environmentally sensitive may have harmed their
value, and (3) the Forest Service's acquisition of environmentally
sensitive land in the basin may have involved a taking of private
property by the government under the Fifth Amendment to the
U.S.  Constitution. 


   SCIENCE, SPACE, AND TECHNOLOGY
-------------------------------------------------------- Appendix 0:14

NASA Contract Management:
Improving the Use of DCAA's Auditing Services

GAO/NSIAD-94-229, Sept.  30 (27 pages). 

This report examines NASA's management and use of audit support
provided by the Defense Department's Defense Contract Audit Agency
(DCAA).  NASA relies extensively on DCAA to provide audit and
financial advisory services on the billions of dollars' worth of
contracts NASA awards.  GAO assesses NASA's (1) need for an
enforcement mechanism to deter contractors from claiming unallowable
costs, (2) use of DCAA proposal audit services, (3) involvement in
audit planning, (4) oversight of contract audit and administration
services, and (5) backlog of contracts
awaiting closeout. 


   SOCIAL SERVICES
-------------------------------------------------------- Appendix 0:15

Long-Term Care:
Diverse, Growing Population Includes Millions of Americans of
All Ages

GAO/HEHS-95-26, Nov.  7 (24 pages). 

Contrary to popular perception, not all Americans needing long-term
care are elderly or institutionalized.  Of the 12 million Americans
requiring such care, 5 million are working-age adults and about half
a million are children; the vast majority--10 million--live at home
or in community residential facilities.  The long-term care needs of
this population vary considerably, from around-the-clock nursing care
to occasional assistance with household chores, such as cooking and
housecleaning.  The aging of the baby boom generation means that
long-term care needs will increase well into the next century, as
much as doubling among the elderly population in the next 25 years. 
Meaningful projections of the nation's future long-term care needs,
however, are clouded by uncertainty about whether baby boomers will
live longer, healthier lives than preceding generations and by a lack
of good estimates on the future size of the nonelderly disabled
population.  Further, researchers believe that the number of younger
disabled has grown in recent decades and will continue to do so, in
part because of changing medical technology and other factors that
may allow more low-birth-weight infants to reach childhood or more
young adults to survive disabling accidents.  The diverse ages,
needs, and conditions of the long-term care population mean that
greater flexibility is needed in the design and the administration of
programs to meet individual needs. 

Illegal Aliens:
Assessing Estimates of Financial Burden on California

GAO/HEHS-95-22, Nov.  28 (36 pages). 

Concerns about the financial burden of providing public benefits and
services to illegal aliens have prompted several states, including
California, to sue the federal government for repayment of these
costs.  To help Congress evaluate California's request for federal
reimbursement, GAO examined estimates of the fiscal impact of illegal
aliens living in California.  GAO examined estimates presented in the
Governor of California's 1994-95 budget published in January 1994,
the state's revised estimates published in September 1994, and
estimates by Urban Institute researchers published in September 1994. 
This report (1) reviews the studies' cost estimates for elementary
and secondary education, Medicaid benefits, and adult imprisonment;
(2) reviews the studies' estimates of revenues attributable to
illegal aliens; and (3) summarizes current federal efforts to improve
estimates of the public fiscal impact of illegal aliens.  GAO
concludes that the credibility of such estimates is likely to be a
persistent issue, given the limited data available on the population
of illegal aliens and differences in key assumptions and
methodologies used to develop the estimates.  For example, the
studies differed in their treatment of capital costs, the age groups
they used to estimate education costs, and their methodologies for
projecting revenues. 


   TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:16

Tax Administration:
Data on the Tax Compliance of Sweatshops

GAO/GGD-94-210FS, Sept.  23 (18 pages). 

The problem of sweatshops in the garment industry has not improved in
recent years, due largely to weaknesses in labor laws, a decrease in
enforcement resources, and an increase in the number of employers. 
Further, sweatshops often fail to comply with federal and state tax
laws.  This report focuses on the tax issue.  GAO identifies (1) the
extent to which sweatshops in this industry complied with federal and
state tax laws and (2) the efforts and the resources that the
Internal Revenue Service and states used to correct sweatshop
noncompliance.  GAO also issued a separate report in November on the
prevalence of and the conditions in sweatshops.  (See page 4.)

Tax Administration:
Earned Income Credit--Data on Noncompliance and Illegal
Alien Recipients

GAO/GGD-95-27, Oct.  25 (12 pages). 

For tax year 1993, 14.7 million low-income taxpayers claimed about
$15 billion in earned income credit benefits.  Congress and the
Internal Revenue Service (IRS) have long been concerned about
noncompliance with earned income credit requirements.  This report
includes IRS' preliminary data on the extent of noncompliance with
earned income credit requirements in tax year 1993 and describes the
data available on the number of illegal aliens who received the
earned income
credit benefits. 


   TRANSPORTATION
-------------------------------------------------------- Appendix 0:17

Highway Safety:
Factors Affecting Involvement in Vehicle Crashes

GAO/PEMD-95-3, Oct.  27 (46 pages). 

GAO found that driver characteristics far outweighed vehicle factors
in predicting crashes for passenger cars.  For example, the odds of a
20-year-old driver's being involved in a single-vehicle nonrollover
crash were about four times as great as those of a 50-year-old.  By
comparison, a 4,000-pound automobile was only 1.06 times as likely to
be involved in this type of crash as a 2,000 pound car.  Similarly,
drivers with histories of traffic violations were more likely to be
in crashes, and men were more likely to be in single-vehicle crashes
than were women.  A car's weight had little effect on the likelihood
of a two-vehicle crash or a single-vehicle crash that did not involve
a rollover.  However, light cars were as much as three times more
likely to be involved in single-vehicle rollover crashes as were
heavy cars.  GAO found that in other types of crashes, car-size
measures other than weight, such as wheelbase or engine size, were
better predictors of crash involvement.  GAO found similar results
when it applied its methodology to crashes involving light trucks and
vans. 


   VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:18

VA/DOD Health Care:
More Guidance Needed to Implement CHAMPUS-Funded
Sharing Agreements

GAO/HEHS-95-15, Oct.  28 (20 pages). 

Congress has encouraged the Defense Department and the Department of
Veterans Affairs (VA) to enter into resource-sharing agreements to
exchange hospital and other services.  At the end of fiscal year
1993,
332 military and VA hospitals, using hospital operating funds, had
entered into about 600 agreements representing 3,500 shared services. 
To improve efficiency and access to care in the DOD and VA health
care system, Congress passed legislation in 1989 and 1992 authorizing
the use of Civilian Health and Medical Program of the Uniformed
Services (CHAMPUS) funds to reimburse VA for providing health care
services to CHAMPUS beneficiaries.  It also authorized VA to treat
all categories of CHAMPUS beneficiaries.  This report determines the
extent to which CHAMPUS funds are being used for health care
resource-sharing agreements both inside and outside catchment
areas--generally a 40-mile radius around a military treatment
facility. 

VA Health Care:
Purchases of Safer Devices Should Be Based on Risk of Injury

GAO/HEHS-95-12, Nov.  17 (38 pages). 

Every day, health care workers suffer cuts, punctures, nicks, and
gashes from needles and other sharp instruments used in taking care
of patients.  These injuries can result in the transmission of the
hepatitis B virus, the human immunodeficiency virus (HIV), and other
bloodborne diseases.  Safer needles and sharps devices are being
marketed by companies claiming that their products can reduce the
number of accidental injuries.  Such devices eliminate the need for
needles, maintain protective covers over needles, provide an
alternative to resheathing needles after use, or use some other
safety mechanism.  This report discusses (1) the incidence of needle
and sharps injuries among health care workers in the Department of
Veterans Affairs (VA); (2) the extent to which VA health care workers
have tested positive for hepatitis B or HIV after needle or sharps
injuries; (3) the safety procedures and devices now used to minimize
these injuries; (4) the extent to which VA is adopting new, safer
technologies to prevent needle and sharps injuries; and (5) the cost
of screening and treating personnel who have received needle and
sharps injuries. 


   SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:19

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

GAO/HEHS-95-33W, Nov.  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 testimony
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. 

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