Reports and Testimony: February 1995 (Other Written Prod., 02/95,
GAO/OPA-95-5).

GAO published its monthly digest of reports and testimonies issued in
February 1995.

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

 REPORTNUM:  OPA-95-5
     TITLE:  Reports and Testimony: February 1995
      DATE:  02/01/95
   SUBJECT:  Student loans
             Employment
             Budget administration
             National defense operations
             Program abuses
             International relations
             Law enforcement
             Fraud
             Financial management
             Railroad transportation operations
IDENTIFIER:  Bibliographies
             Superfund Program
             Medicare/Medicaid Coverage Data Bank
             Federal Family Education Loan Program
             Medicare Secondary Payer Program
             FAA Safety Performance Analysis System
             IRS Tax System Modernization Program
             NWS Modernization Program
             Generalized System of Preferences Program
             High Risk Series 1995
             District of Columbia
             TSM
             
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REPORTS AND TESTIMONY:
FEBRUARY 1995

GAO/OPA-95-5

GAO/OPA-95-5

GAO/OPA-95-5

Highlights

High-Risk Series

Many critical government programs remain vulnerable to waste, fraud,
abuse, and mismanagement.  In a 12-volume series of reports, GAO
highlights six broad categories that are the focus of concern and
discusses progress made since GAO began its effort to identify
high-risk programs in 1990.  Page 2. 

Amtrak

Amtrak's financial and operating conditions have deteriorated to the
point where its ability to offer nationwide service is seriously
threatened.  Debt, deferred maintenance, and reduced staffing have
helped Amtrak to survive but have also diminished the quality and
reliability of service.  Page 32. 

District of Columbia

The financial position of the District of Columbia is precarious. 
Continued spending above budgeted amounts leads GAO to conclude that
the District is insolvent and lacks enough cash to pay its bills. 
Page 14. 

GAO/OPA-95-5



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

  AFDC - x
  DCAA - x
  DOD - x
  DOE - x
  DOT - x
  DPS - x
  EPA - x
  FAA - x
  FCA - x
  GPO - x
  GSA - x
  HHS - x
  HMO - x
  HUD - x
  ICC - x
  IG - x
  INS - x
  IRS - x
  NASA - x
  NCUA - x
  NWS - x
  OSHA - x
  SSA - x
  SSI - x
  USDA - x

REPORTS AND TESTIMONY:  FEBRUARY
1995
=========================================================== Appendix 0


   SPECIAL REPORTS
--------------------------------------------------------- Appendix 0:1

High-Risk Series
Feb.  1995 (12 reports). 

In 1990, GAO began a special effort to identify federal programs at
high risk of waste, fraud, abuse, and mismanagement.  GAO issued a
series of reports in December 1992 on the fundamental causes of the
problems in the high-risk areas.  This second series updates the
status of those areas.  The Overview discusses the urgent need to
continue addressing critical high-risk problems, including such areas
as Defense Department (DOD) contract and inventory management,
revenue collections, major lending programs, and oversight of tens of
billion of dollars in contracts.  Also, GAO has designated new areas
as high risk, such as long-standing financial management weaknesses
in DOD, growing fraudulent tax filings, and several critical
information system modernization projects that are plagued with
problems.  In five areas, such as the Pension Benefit Guaranty
Corporation, improvement has been significant enough for GAO to
remove them from the high-risk list.  In only three areas--DOD
weapons system acquisition and inventory management and the Internal
Revenue Service's collection of delinquent receivables--has little
progress been made.  In addition to containing the Overview, the
high-risk series includes a Quick Reference Guide that discusses the
high-risk areas that GAO has been tracking during the past several
years.  For each area, the Guide summarizes the problems, the root
causes, the progress, and the outlook for the future; identifies a
key GAO contact person; and lists related GAO reports.  The series
also includes a separate report for each of 10 areas, detailing
continuing significant problems and needed corrective action. 
Readers have the following three options in ordering the high-risk
series:  (1) request any of the individual reports in the series,
including the Overview, the Guide, or any of the 10 issue area
reports; (2) request the Overview and the Guide as a package; or (3)
request the entire series as a package.  On the order form in the
back of this publication, please check the box marked HR-95-20SET for
the entire high-risk series or the box marked HR-95-21SET for the
Overview and the Guide.  Single reports may be ordered by checking
the boxes that correspond to the report numbers listed below. 

An Overview
GAO/HR-95-1, Feb.  1995 (89 pages). 

Quick Reference Guide
GAO/HR-95-2, Feb.  1995 (93 pages). 


Defense Contract Management
GAO/HR-95-3, Feb.  1995 (29 pages). 

Defense Weapons Systems Acquisition
GAO/HR-95-4, Feb.  1995 (31 pages). 

Defense Inventory Management
GAO/HR-95-5, Feb.  1995 (37 pages). 

Internal Revenue Service Receivables
GAO/HR-95-6, Feb.  1995 (41 pages). 

Asset Forfeiture Programs
GAO/HR-95-7, Feb.  1995 (33 pages). 

Medicare Claims
GAO/HR-95-8, Feb.  1995 (35 pages). 

Farm Loan Programs
GAO/HR-95-9, Feb.  1995 (23 pages). 

Student Financial Aid
GAO/HR-95-10, Feb.  1995 (46 pages). 

Department of Housing and Urban Development
GAO/HR-95-11, Feb.  1995 (41 pages). 

Superfund Program Management
GAO/HR-95-12, Feb.  1995 (30 pages). 


   AGRICULTURE AND FOOD
--------------------------------------------------------- Appendix 0:2

Conservation Reserve Program:
Alternatives Are Available for Managing Environmentally
Sensitive Cropland

GAO/RCED-95-42, Feb.  21 (68 pages). 

If not properly managed, agricultural production on the nation's 382
million acres of cropland can harm water and air quality, soil
productivity, and wildlife habitat.  Congress created the
Conservation Reserve Program in 1985 to temporarily remove highly
erodible surplus cropland from production.  The Agriculture
Department has agreed to pay farmers nearly $20 billion to take more
than 36 million acres out of production for 10 years.  These
contracts begin to expire in 1995, with the contracts for most of the
acres--22 million--expiring in 1996 and 1997.  This report estimates
the amount and the locations of land covered by the program and other
environmentally sensitive cropland that should be removed from
production for environmental reasons and discusses alternatives for
managing this land.  GAO also presents information on Conservation
Reserve Program land and other environmentally sensitive cropland
that can remain in production. 


      TESTIMONY
------------------------------------------------------- Appendix 0:2.1

Food Assistance:  Reducing Benefit Overpayments in the Food Stamp
Program, by Robert A.  Robinson, Associate Director of Food and
Agriculture Issues, before the House Committee on Agriculture. 
GAO/T-RCED-95-94, Feb.  1 (17 pages). 

Hundreds of millions of dollars in food stamp benefits are being paid
annually to persons who should not receive benefits or who receive
more benefits than they should.  Overpayments have increased in
recent years to the point that in fiscal year 1993, more than eight
percent of the $22 billion in benefits was inappropriately issued. 
Most of the errors were due to inaccurate information provided by
benefit recipients to state caseworkers.  The Agriculture
Department's (USDA) Food and Consumer Service and many states have
initiatives under way to reduce benefit overpayments.  Some states
have been so successful in reducing overpayments that they have
qualified for additional food stamp funding from USDA.  Although many
factors have contributed to states' success in reducing overpayments,
the single most critical factor seems to be aggressive pursuit of the
error rate problem by food stamp program managers.  USDA has also
worked with states to reduce error rates by granting states waivers
to a number of program regulations that tend to increase the number
of errors. 


   BUDGET AND SPENDING
--------------------------------------------------------- Appendix 0:3

Budget Issues:
The Role of Depreciation in Budgeting for Certain
Federal Investments

GAO/AIMD-95-34, Feb.  1995 (22 pages). 

This staff study explores the applicability and the usefulness of
depreciation in federal budgeting for spending on transportation
infrastructure, research and development, and human capital.  GAO's
review of professional literature and consultation with budget and
accounting experts did not support depreciating such investment in
federal budgeting as useful or appropriate because (1) it could
undermine budgetary control, (2) it would result in depreciating
assets the government does not own, and (3) determining the value and
the useful life of these investments would be difficult.  Although
GAO does not view depreciation for these types of federal investments
as an appropriate budgetary treatment, it does believe that federal
investments with long-term potential benefits for economic growth and
productivity should be considered differently than they now are in
the budget.  One option is to include an investment component in the
budget focusing on these areas of investment within the Budget
Enforcement Act framework, possibly with a separate floor for
investment spending, to help focus attention on areas needing
investment while preserving established controls in the existing
budget process. 


      TESTIMONY
------------------------------------------------------- Appendix 0:3.1

Fiscal Year 1996 Budget Estimates for the General Accounting Office,
by Charles A.  Bowsher, Comptroller General of the United States,
before the Subcommittee on Legislative, House Committee on
Appropriations.  GAO/T-OCG-95-3, Feb.  23 (12 pages). 

GAO is committed to being a model government agency of the
future--one that is smaller and at the same time achieves
efficiencies through effective use of technology and quality
management principles.  GAO began downsizing in 1992, when it had a
staff of about 5,325.  GAO now proposes further reductions that would
bring its staff level to 3,975 by 1997--a cumulative 25-percent
reduction from the 1992 level.  At that size, GAO would employ fewer
workers than at any time since the late 1930s.  Despite the
downsizing, GAO's productivity remains high.  The agency's work led
to $19 billion in measurable financial benefits to taxpayers in
fiscal year 1994 alone.  GAO's carefully phased reduction plan would
allow the agency to meet its core audit, evaluation, and
investigatory responsibilities while yielding personnel savings of
$130 million annually. 


   ECONOMIC DEVELOPMENT
--------------------------------------------------------- Appendix 0:4

Community Development:
Comprehensive Approaches Address Multiple Needs but Are Challenging
to Implement

GAO/RCED/HEHS-95-69, Feb.  8 (75 pages). 

The aspirations of people in distressed neighborhoods are
familiar--to have a home and a job, to live in a safe area, and to
have hope for their children's future.  Isolated by poverty,
residents of distressed neighborhoods may never realize their dreams. 
Some community-based nonprofit groups are using a multifaceted, or
comprehensive, approach to community development that relies on
residents' participation to address housing, economic, and social
service needs in distressed neighborhoods.  This report examines (1)
why community development experts and practitioners advocate this
approach, (2) what challenges they see to its implementation, and (3)
how the federal government might support comprehensive approaches. 
GAO reviewed four groups, located in Boston; Detroit; Pasadena; and
Washington, D.C., that have used comprehensive approaches in their
communities. 


   EDUCATION
--------------------------------------------------------- Appendix 0:5

School Facilities:
Condition of America's Schools

GAO/HEHS-95-61, Feb.  1 (65 pages). 

GAO surveyed school officials across the country on the physical
condition of their facilities.  The survey projects that the nations'
elementary and secondary schools need about $112 billion in repairs
and upgrades to restore them to good condition.  Although two-thirds
of America's schools are reported to be in good overall condition,
about 14 million students attend schools needing extensive repair or
replacement.  Also, problems with major building features, such as
plumbing, are widespread even among schools said to be in adequate
shape.  Nearly 60 percent of America's schools reported at least one
major building element in disrepair; most of these schools had
multiple problems.  In addition, about half the school officials
reported at least one environmental problem in their schools, such as
inadequate ventilation or poor heating and lighting; most of these
schools had multiple environmental problems.  Some school officials
attributed the physical decline of the nation's schools to decisions
by school districts to defer vital maintenance and repair
expenditures from year to year due to lack of money. 

Guaranteed Student Loans:
Actions to Ensure Continued Student Access to Subsidized Loans

GAO/HEHS-95-64, Feb.  24 (15 pages). 

Recent changes to the Federal Family Education Loan Program, formerly
the Guaranteed Student Loan Program, as well as the introduction of
the Federal Direct Student Loan Program, have raised concerns about
whether eligible borrowers will continue to have access to subsidized
loans.  Many lenders and guaranty agencies expect some eligible
students to have difficulty obtaining subsidized Stafford loans
during the next few years.  Guaranty agencies generally have
arrangements to provide loans to these students.  The Education
Department has arranged with Sallie Mae to make loans to students to
whom guaranty agencies cannot provide them.  The Department has also
arranged with a new agency to serve as a guarantor of last resort if
existing guaranty agencies cannot provide guarantees to lenders. 
Predicting how well these arrangements will ensure access to loans
after fiscal year 1995 is difficult, and the issue may need to be
revisited later. 


   EMPLOYMENT
--------------------------------------------------------- Appendix 0:6

Multiple Employment Training Programs:
Information Crosswalk on 163 Employment Training Programs

GAO/HEHS-95-85FS, Feb.  14 (51 pages). 

GAO compiled a list of 163 programs and funding streams that provide
about $20 billion in employment training assistance.  During recent
testimony before Congress (GAO/T-HEHS-95-53 and GAO/T-HEHS-95-70),
GAO indicated that the number of employment training programs had
risen to 193 since 1991 and that this fragmented "system" wasted
resources and confused and frustrated clients, employers, and
administrators.  To help Congress make hard choices about overhauling
and consolidating employment training programs, this fact sheet
provides a crosswalk of information for each program, including (1)
fiscal year 1995 appropriation, (2) summary of the program's purpose
as it relates to employment training activities, (3) authorizing
legislation and the U.S.  citation, (4) Catalog of Federal Domestic
Assistance program number, (5) budget account number, (6) target
group, and (7) type of employment training
assistance provided. 

Multiple Teacher Training Programs:
Information on Budgets, Services, and Target Groups

GAO/HEHS-95-71FS, Feb.  22 (35 pages). 

As employment in the United States changes from low-skilled assembly
work to occupations that require management of complex tasks and
continual updating of job skills, schools and teachers are
increasingly responsible for teaching students to learn and think
critically.  Congress has created many teacher-training programs that
fund preservice (preparation for teaching) and in-service (continuing
professional training for teachers) educational activities for the
nation's teachers.  Each program was created to meet a specific need;
however, collectively they constitute a patchwork of programs that
may not make the most efficient use of resources.  This fact sheet
discusses (1) the total number of federally funded teacher-training
programs (excluding student loans and grants that could be used for
teacher training), (2) total budget obligations for teacher-training
programs,(3) the number of teachers trained by the programs, and (4)
differences in services across the programs. 


      TESTIMONY
------------------------------------------------------- Appendix 0:6.1

Multiple Employment Training Programs:  Major Overhaul Needed to
Create a More Efficient, Customer-Driven System, by Clarence C. 
Crawford, Associate Director for Education and Employment Issues,
before the Subcommittee on Postsecondary Education, Training and
Lifelong Learning, House Committee on Economic and Educational
Opportunities.  GAO/T-HEHS-95-70, Feb.  6 (29 pages). 

The current fragmented "system" of federal employment training
programs adds unnecessary administrative costs and confuses and
frustrates clients, employers, and administrators.  These problems
have raised concerns about the efficiency of the existing system. 
Also, many agencies do not know whether their programs actually help
people get jobs.  GAO testified that a major overhaul and
consolidation of programs is needed to create a more efficient,
customer-drive system that would (1) provide clients and employers
easy access to services; (2) encourage the efficient use of resources
and simplify program implementation; (3) offer a variety of
employment training services to meet individual needs; and (4) hold
program administrators accountable for results but give states and
local agencies the flexibility to determine how best to meet their
community needs. 


   ENERGY
--------------------------------------------------------- Appendix 0:7

Nuclear Materials:
Plutonium Storage at DOE's Rocky Flats Plant

GAO/RCED-95-49, Dec.  29 (15 pages). 

The Energy Department (DOE) faces a variety of important, unresolved
safety problems with plutonium storage at the Rocky Flats Plant in
Colorado.  When the plant was shut down in 1989, DOE intended to
restart operations in a few months and plutonium was left in place or
packaged for short-term storage.  However, the operations were never
restarted and the plutonium stayed where it was, raising concerns
about plutonium liquid leaking from pipes and tanks, fire hazards,
and worker exposure to plutonium.  Although DOE has efforts under way
to address these problems, important decisions, such as what to do
with the plutonium residues, have yet to be made.  As a result,
estimating the time frames and the total cost for resolving the
concerns is difficult.  In any event, fully implementing DOE's
programs will take many years and will likely cost hundreds of
millions of dollars. 

Naval Petroleum Reserve:
Opportunities Exist to Enhance Its Profitability

GAO/RCED-95-65, Jan.  12 (12 pages). 

The Naval Petroleum Reserve in Elk Hills, California, is jointly
owned by the United States government and Chevron U.S.A., Inc.  It is
now operated by Bechtel Petroleum Operations, Inc., under a contract
that expires in July 1995.  Chevron believes that it can run the
reserve more profitably than the government can, and in May 1995 it
proposed taking over reserve operations.  Later, the Energy
Department (DOE) suspended negotiations with Chevron on this proposal
and recently began to solicit interest from other parties to operate
the reserve.  Like Chevron, DOE wants to lower the costs of operating
the reserve.  This report explores actions that DOE and Congress can
now take to improve the reserve's profitability. 


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

Department of Energy:  Research and Agency Missions Need
Reevaluating, by Victor S.  Rezendes, Director of Energy and Science
Issues, before the Subcommittee on Energy and Environment, House
Committee on Science.  GAO/T-RCED-95-105, Feb.  13 (12 pages). 

The priorities of the Energy Department (DOE) have changed
dramatically since it was created in 1977, leading GAO to conclude
that the agency and its mission should be reevaluated.  Weapons
production and environmental cleanup issues now overshadow DOE's
original focus on energy research and conservation.  New missions
have also emerged in science and industrial competitiveness.  At the
same time, DOE suffers from significant management problems, ranging
from poor environmental management of the nuclear weapons complex to
major internal inefficiencies involving poor contractor oversight,
inadequate information systems, and
workforce weaknesses. 

Uranium Enrichment:  Observations on the Privatization of the United
States Enrichment Corporation, by Victor S.  Rezendes, Director of
Energy and Science Issues, before the Subcommittee on Energy and
Power, House Committee on Commerce.  GAO/T-RCED-95-116, Feb.  24
(seven pages). 

This testimony presents GAO's observations on the possible
privatization of the United States Enrichment Corporation, which was
established by the Energy Policy Act of 1992.  For several years
before the act's passage, GAO urged restructuring the Energy
Department's (DOE) uranium enrichment program so that it could be run
in a more businesslike way.  This testimony describes GAO's
responsibilities to evaluate the privatization plan that the
Corporation must develop by July 1995.  It also briefly discusses the
criteria that GAO believes should be used to evaluate any proposed
draft amendments to the act. 


   ENVIRONMENTAL PROTECTION
--------------------------------------------------------- Appendix 0:8

Hazardous Waste Incinerators:
EPA's and OSHA's Actions to Better Protect Health and Safety
Not Complete

GAO/RCED-95-17, Jan.  25 (35 pages). 

The Environmental Protection Agency (EPA) became concerned about
worker safety at hazardous waste incinerators in 1990 because of the
possible health threat posed by waste-handling operations.  As a
result, EPA began working with the Occupational Safety and Health
Administration (OSHA) to evaluate compliance with health and safety
requirements at hazardous waste incinerators.  A 1991 joint task
force's report summarized the results of inspections at 29 facilities
and made recommendations to EPA and OSHA designed to correct
violations found during inspections, educate the combustion industry,
and prompt EPA to do research and revise incinerator permits as
necessary.  This report determines (1) what the status of the task
force report's recommendations is, (2) what the results of later
inspections and enforcement actions at the 29 facilities were, and
(3) whether EPA or OSHA have taken other actions beyond those
recommended by the task force to better protect health and safety at
hazardous waste incinerators. 


   FINANCIAL INSTITUTIONS
--------------------------------------------------------- Appendix 0:9

National Consumer Cooperative Bank:
Oversight Adequate But Federal Loan Repayment
Needs Monitoring

GAO/GGD-95-63, Feb.  24 (40 pages). 

Congress created the National Consumer Cooperative Bank to provide
financial and technical assistance to cooperatives to increase their
contribution to the nation's economy.  Although the Farm Credit
Administration (FCA) examines the Bank, which holds about $536
million in assets, Congress did not assign regulatory or enforcement
powers over the Bank to FCA or any federal financial regulator.  The
Treasury Department holds $183 million in debt that the Bank must
repay by 2020.  This report examines (1) the ability of the present
oversight arrangement to effectively monitor the Bank's safety and
soundness and (2) the Bank's obligation to repay the Treasury debt. 


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

Credit Unions:  The Failure of Capital Corporate Federal Credit
Union, by Charles A.  Bowsher, Comptroller General of the United
States, before the Senate Committee on Banking, Housing, and Urban
Affairs.  GAO/T-GGD-95-107, Feb.  28 (17 pages). 

Capital Corporate Federal Credit Union (Cap Corp), one of the largest
of the nation's 45 corporate credit unions, failed in January 1995
and was placed into conservatorship by the National Credit Union
Association (NCUA).  As interest rates rose sharply in February 1994,
many collateralized mortgage obligations in Cap Corp's portfolio
lengthened in expected maturity and dropped in value.  Rather than
liquidating these investments at a loss to meet member withdrawals,
Cap Corp borrowed in excess of regulatory limits.  GAO traces Cap
Corp's failure, in part, to inadequate board oversight of an
inappropriate investment strategy.  As of February 1995, the
projected total loss on Cap Corp's portfolio was estimated at $60
million.  The Comptroller General's testimony discusses the causes of
Cap Corp's failure, the effectiveness of NCUA's supervision of Cap
Corp, who bears the cost of the failure, and the extent of similar
problems in the credit union industry.  The Comptroller General also
recommends steps that NCUA and Congress can take to enhance the
safety and the soundness of the credit union industry. 


   GOVERNMENT OPERATIONS
-------------------------------------------------------- Appendix 0:10

Status of Open Recommendations:
Improving Operations of Federal Departments and Agencies

GAO/OP-95-1, Jan.  30 (266 pages). 

In fiscal year 1994, GAO made 1,450 recommendations.  More
importantly, about 4,400 GAO recommendations made during the past
five years have been implemented.  This report summarizes the status
of all GAO recommendations that have not been fully implemented and
highlights some of the key ones.  It also includes a set of computer
diskettes with details on all open recommendations.  The diskettes
have several menu options to help users find information easily. 

Block Grants:
Characteristics, Experience, and Lessons Learned

GAO/HEHS-95-74, Feb.  9 (55 pages). 

The 15 block grant programs in effect today, with funding of $32
billion, constitute a small portion of the overall federal aid to
states, which totaled $206 billion for 593 programs in fiscal year
1993.  In 1981, as part of the Omnibus Reconciliation Act, nine block
grants were created from about 50 of the 534 categorical programs in
effect at that time.  In general, the transition from categorical
programs to block grants was smooth.  Experience with the 1981 block
grants teaches three lessons.  First, accountability for results is
clearly needed, and the Government Performance and Results Act may
provide the appropriate framework.  Second, funding allocations based
on distributions under prior categorical programs may be inequitable
because they do not reflect need, ability to pay, and variations in
the cost of providing services.  Finally, the transition to block
grants may be more challenging today than in 1981 because the
programs being considered for inclusion in block grants are much
larger and, in some cases, are fundamentally different from programs
included in the 1981 block grants.  GAO summarized this report in
testimony before Congress; see: 

Block Grants:  Lessons Learned, by Linda G.  Morra, Director of
Education and Employment Issues, before the House Committee on
Economic and Educational Opportunities, House Subcommittee on
Oversight and Investigations.  GAO/T-HEHS-95-80, Feb.  9 (11 pages). 

Government Printing:
Comparison of DOD and GPO Prices for Printing and
Duplicating Work

GAO/NSIAD-95-65, Feb.  17 (103 pages). 

GAO examined the prices charged to customers for printing and
duplication work at the Government Printing Office (GPO) and the
Defense Printing Service (DPS).  GAO found that GPO prices for
printing work were about 9 to 11 percent lower than those of DPS. 
For printing requisitions of more than $500--about 78 percent of the
printing dollars--GPO's prices were about 21 percent lower than those
of DPS.  For requisitions of $500 and less--22 percent of the total
printing dollars--DPS' prices were about 31 percent lower than GPO's. 
GAO estimates that overall, GPO prices for DPS' fiscal year 1994
printing workload would have been about $2.4 million lower than those
of DPS.  DPS prices for duplicating requisitions were about four to
five percent lower than GPO prices.  For those requisitions priced at
more than $500, there was about 0.4-percent difference favoring GPO,
and for those of $500 or less, the difference was about 57 percent in
favor of DPS.  GAO estimates that overall, DPS prices for the DPS
fiscal year 1994 duplicating workload would have been about $9.3
million lower than the GPO prices. 

D.C.  Area Mail Delivery Service:
Resolving Labor-Relations and Operational Problems Key to
Service Improvement

GAO/GGD-95-77, Feb.  23 (59 pages). 

Since 1990, mail service in the Washington, D.C., metropolitan area
has been among the worst in the nation, and customer satisfaction has
generally been below the national average.  Both mail service and
customer satisfaction in the D.C.  area declined dramatically in
1994.  Postal Service officials attribute the deterioration in
service to an unexpected growth in mail volume in early 1994.  Local
units were unable to handle this growth due to employee shortages,
recent organizational change, mail-handling process problems, and
poor labor-management relations.  The Postal Service has made
progress toward restoring service to 1993 levels, but breakthrough
improvement will require postal management and labor unions to work
together to resolve long-standing employee relations problems that
are reported to be more severe in the D.C.  area than in most other
locations.  GAO summarized this report in testimony before
Congress; see: 

Postal Service:  Mail Delivery Service in the Washington Metropolitan
Area, by J.  William Gadsby, Director of Government Business
Operations Issues, before the Subcommittee on Treasury, Postal
Service, and General Government, House Committee on Appropriations. 
GAO/T-GGD-95-94, Feb.  28 (15 pages). 

Federal Office Space:
More Businesslike Approach Could Reduce Costs and
Improve Performance

GAO/GGD-95-48, Feb.  27 (76 pages). 

The General Services Administration (GSA) has a virtual monopoly over
the provision of federal office space.  GSA now spends $2 billion
annually for leased space and projects that these costs will rise to
$3 billion by 2002 unless the ratio of federally owned to leased
space is increased.  Also, federal agencies have been dissatisfied
with GSA's monopoly and the amount of time GSA takes to deliver
requested space.  GAO concludes that a more businesslike approach to
leasing could reduce costs and improve performance.  GAO makes
several recommendations to streamline GSA's leasing process, making
it less costly and time consuming, more responsive to the needs of
federal agencies, and a better value
for taxpayers. 


      TESTIMONY
------------------------------------------------------ Appendix 0:10.1

District of Columbia:  Financial Crisis, by John W.  Hill, Jr. 
Director of Financial Management Policies and Issues, before the
Subcommittee on the District of Columbia, House Committee on
Appropriations, and the Subcommittee on the District of Columbia,
House Committee on Government Reform and Oversight. 
GAO/T-AIMD-95-88, Feb.  22 (18 pages). 

The District of Columbia's financial situation continues to
deteriorate.  In December 1994, the District borrowed $250 million
from Wall Street to meet its critical cash needs, months earlier than
forecasts had shown.  In February 1995, two financial investment
services lowered the District's bond ratings, one of them to below
investment grade.  The District has abandoned earlier plans to close
the spending gap on its own and now seeks substantial federal
assistance.  According to the District's own estimates, fiscal year
1995 expenditures could reach nearly $3.9 billion, $631 million above
the $3.25 billion spending cap mandated by Congress.  Given the
continued spending levels, GAO predicts that the District will run
out of money this summer.  In fact, the District is today
insolvent--it does not have enough cash to pay all its bills.  GAO's
testimony discusses (1) the evolution of the District's crisis, (2)
congressional actions related to the fiscal year 1995 budget, (3)
GAO's own analysis of the District's fiscal year 1995 first quarter
financial report, (4) the District's recent actions to address the
financial crisis, and (5) the District's cash situation. 

District of Columbia:  Deteriorating Financial Condition, by John W. 
Hill, Jr., Director of Financial Management Policies and Issues,
before the Subcommittee on the District of Columbia, House Committee
on Appropriations.  GAO/T-AIMD-95-89, Feb.  24 (13 pages). 

This testimony builds on GAO's previous testimony (GAO/T-AIMD-95-88),
which points out that the District's financial situation has
continued to deteriorate to the point that the District is insolvent. 
This testimony focuses on four areas:  (1) the fiscal year 1994
comprehensive annual financial report and GAO's initial analysis of
the audit by Bert Smith and Co.  and Coopers & Lybrand, (2) the
District's information on unpaid bills, (3) problems with the
District's information on personnel and an initial analysis of some
of the data, and (4) the Mayor's February 1 fiscal year 1995 budget
proposal and GAO's preliminary analysis of the District's agency
spending plans. 

Postal Service:  Many Challenges in a Changing Environment, by
Michael E.  Motley, Associate Director for Government Business
Operations Issues, before the Subcommittee on the Postal Service,
House Committee on Government Reform and Oversight.  GAO/T-GGD-95-93,
Feb.  23 (18 pages). 

Major changes to the Postal Service could affect the quality, the
price, and the availability of mail service as well as the work of
more than 850,000 employees.  In that context, Congress needs
comprehensive and accurate information on postal operations in order
to carefully consider what changes should be made to improve this
important service.  This testimony (1) provides an overview of the
key characteristics of today's Postal Service and (2) discusses
challenges facing the Postal Service and Congress as they consider
how mail delivery will be provided in the future. 

Procurement Reform:  Further Opportunities for Change, by Robert P. 
Murphy, General Counsel, before the Subcommittee on Government
Management, Information, and Technology, House Committee on
Government Reform and Oversight.  GAO/T-OGC-95-16, Feb.  28 (13
pages). 

Last year, Congress sought to reform the government's acquisition
system by passing the Federal Acquisition Streamlining Act of 1994,
which established a simplified acquisition threshold and a preference
for commercial items.  It also reduced the administrative burden
associated with the government's specialized requirements.  As
momentous as this legislation was, many believe that it represented
only a first step rather than a culmination of reform.  A number of
reform proposals are now under discussion.  This testimony provides
GAO's preliminary views on proposals that it believes merit further
consideration and study.  These reform proposals support three
fundamental principles:  "buy smarter" (eliminate requirements that
hamper government's ability to take advantage of what industry has to
offer); "simplify" (further reduce the complexity of the acquisition
system); and "manage better" (further improve management of the
procurement process, including making needed investments in people
and systems). 


   HEALTH
-------------------------------------------------------- Appendix 0:11

Cholesterol Measurement:
Test Accuracy and Factors That Influence Cholesterol Levels

GAO/PEMD-95-8, Dec.  30 (69 pages). 

Knowing the amount of cholesterol in the blood is important to good
health, but GAO found that it was hard to learn the correct level
from a single test.  Given the wide range of instruments used to test
cholesterol and day-to-day variations in diet, exercise, and illness,
GAO believes that persons should consider being tested several times
to determine cholesterol levels.  Doctors and patients need to be
aware of fluctuations in cholesterol measurements and that any
decision to classify and treat a patient should be based on the
average of multiple measurements and an assessment of other risk
factors.  GAO summarized this report in testimony before Congress;
see: 

Cholesterol Measurement:  Variability in Methods and Test Results, by
Kwai-Cheung Chan, Director of Program Evaluation in Physical Systems
Areas, before the Subcommittee on Technology, House Committee on
Science.  GAO/T-PEMD-95-17, Feb.  14 (15 pages). 



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

Medicare:  High Spending Growth Calls for Aggressive Action, by
William J.  Scanlon, Associate Director for Health Financing and
Policy Issues, before the Subcommittee on Health, House Committee on
Ways and Means.  GAO/T-HEHS-95-75, Feb.  6 (10 pages). 

The government faces strong obstacles to bringing Medicare
expenditures under control.  Broad-based payment system reforms have
slowed overall spending, but Medicare growth rates remain higher than
overall inflation.  And although more reforms may be needed, their
nature is the subject of much debate.  There is less dispute,
however, that Medicare pays too much for some services and supplies. 
Fiscal pressures have led private and state-government payers
increasingly to negotiate discounts with providers and to manage the
form and the volume of care.  Medicare has not exercised its
potential market power in similar fashion when buying some services,
such as rehabilitation therapy.  GAO suggests that the government
change the reimbursement policies for these excessively costly
services to ensure that it is acting as a prudent buyer.  Also,
greater vigilance over wasteful or inappropriate payments could
better protect Medicare against fraudulent and abusive billings from
providers. 

Medicare:  Opportunities Are Available to Apply Managed Care
Strategies, by Janet L.  Shikles, Assistant Comptroller General for
Health, Education, and Human Services Programs, before the
Subcommittee on Health, House Committee on Ways and Means. 
GAO/T-HEHS-95-81, Feb.  10
(nine pages). 

Although the private sector quickly embraced managed care as an
effective way to control the growth of health care costs, Medicare
has moved more slowly.  GAO believes that Medicare could benefit from
the experience of the private sector and should test such managed
care strategies as competitive bidding for health maintenance
organizations (HMO).  Using market power to negotiate with HMOs over
price and increasingly over quality and the production of
report-card-type information, large employers are becoming more
prudent and sophisticated purchasers of health care.  The particulars
of these efforts may not be directly transferable to the federal
government, but their goals of using incentive-based solutions to
contain costs, guarantee quality, and inform consumers are worthy of
consideration and testing. 


Medicare Secondary Payer Program:  Actions Needed to Realize Savings,
by Sarah F.  Jaggar, Director of Health Financing and Policy Issues,
before the Subcommittee on Health, House Committee on Ways and Means. 
GAO/T-HEHS-95-92, Feb.  23 (seven pages). 

The Medicare secondary payer program ensures that other health and
accident insurers pay medical costs for covered beneficiaries before
Medicare kicks in.  The program is a major cost containment measure,
saving Medicare about $3 billion in fiscal year 1994.  GAO testified
that several measures could help maximize the savings available under
the program.  First, because program recovery efforts of already paid
Medicare claims have, in effect, been negated by a recent appeals
court ruling, legislation is needed to ensure effective recovery of
mistaken payments under the program.  Second, GAO continues to urge
that funding for the Medicare/Medicaid data bank be delayed until its
potential value can
be shown. 

Ryan White Care Act of 1990:  Opportunities Are Available to Improve
Funding Equity, by William J.  Scanlon, Associate Director for Health
Financing and Policy Issues, before the Senate Committee on Labor and
Human Resources.  GAO/T-HEHS-95-91, Feb.  22 (12 pages). 

The Ryan White Comprehensive AIDS Resources Emergency Act of 1990
makes federal funding available to cities that have been especially
hard hit by the AIDS epidemic.  In fiscal year 1994, $326 million in
act funds were distributed to 34 eligible metropolitan areas in 17
states, the District of Columbia, and Puerto Rico.  GAO testified
that the act's funding formulas have resulted in per case funding
disparities that are, to a great extent, unrelated to service costs
or to the ability of states and cities to pay for services from local
sources.  These funding disparities result from that fact that (1)
eligible metropolitan area cases are inappropriately double counted
under the act's formulas, (2) there is no indicator that reflects
differences in the the costs of providing services in both states and
eligible metropolitan areas, and (3) formula factors inappropriately
measure caseloads and funding capacity.  Greater funding equity could
be achieved by eliminating the inappropriate double counting of AIDS
cases and by using more appropriate measures of state and city needs. 



   HOUSING
-------------------------------------------------------- Appendix 0:12


      TESTIMONY
------------------------------------------------------ Appendix 0:12.1

Housing and Urban Development:  Reforms at HUD and Issues for Its
Future, by Judy A.  England-Joseph, Director of Housing and Community
Development Issues, before the Subcommittee on Human Resources and
Intergovernmental Relations, House Committee on Government Reform and
Oversight.  GAO/T-RCED-95-108, Feb.  22 (13 pages). 

The Department of Housing and Urban Development (HUD) suffers from
severe organizational and management problems that the agency is
still in the early stages of addressing.  Because HUD's programs
consist of large federal loan commitments and discretionary spending,
controlling HUD's spending will require a reexamination of federal
housing policies and HUD's mission.  Does HUD have the ability and
the resources to carry out its responsibilities?  To what extent is
the federal government able to support these efforts?  This testimony
discusses (1) long-standing management shortcomings at HUD that
hamper its effectiveness; (2) the problems that HUD and Congress face
in public and assisted housing programs, which account for the bulk
of HUD's outlays; (3) the progress HUD is making in addressing its
problems; (4) the challenges that HUD faces in restructuring its
programs and mechanisms for delivering programs; and (5) the
fundamental questions that need to be answered in considering future
housing and community development policy. 

Housing and Urban Development:  Reinvention and Budget Issues, by Jim
Wells, Associate Director for Housing and Community Development
Issues, before the House Committee on the Budget.  GAO/T-RCED-95-112,
Feb.  22 (12 pages). 

The Department of Housing and Urban Development's (HUD) budget
request for fiscal year 1996 totals $26.3 billion, a two percent
increase in budget authority and a two percent decrease in outlays
over fiscal year 1995 levels.  The budget reflects HUD's proposed
first steps in transitioning to the new agency envisioned in its
December 1994 reinvention blueprint.  This testimony focuses on the
(1) challenges facing HUD in implementing a budget based on the
reinvention blueprint within the time frames envisioned, (2)
potential impact of long-term management deficiencies on HUD's
ability to implement the blueprint, and (3) budgetary savings that
HUD proposes achieving during the next five years. 


   INCOME SECURITY
-------------------------------------------------------- Appendix 0:13

Social Security Administration:
Leadership Challenges Accompany Transition to an
Independent Agency

GAO/HEHS-95-59, Feb.  15 (20 pages). 

In 1994 Congress passed legislation making the Social Security
Administration (SSA) an independent agency.  As part of the
transition, GAO was required to evaluate the interagency agreement
for transferring personnel and resources from the Department of
Health and Human Services (HHS) to SSA.  GAO concludes that the two
agencies have developed an acceptable methodology for identifying the
functions; personnel; and other resources, such as furniture and
computer equipment, to be transferred to an independent SSA.  They
have also made good progress toward completing the initiatives
necessary for SSA to be a fully functional independent agency by
March 31, 1995.  However, SSA will continue to face serious policy
and management challenges, including the long-range shortfall in
funds to pay future Social Security benefits.  Also, questions have
been raised by GAO and others about the future growth of the
Disability Insurance program and recent increases in Supplemental
Security Income benefits. 


   INFORMATION MANAGEMENT
-------------------------------------------------------- Appendix 0:14

Aviation Safety:
Data Problems Threaten FAA Strides on Safety Analysis System

GAO/AIMD-95-27, Feb.  8 (30 pages). 

Overall, the Federal Aviation Administration (FAA) has done a
credible job analyzing and defining the requirements of the Safety
Performance Analysis System, an automated decision support system
that FAA is acquiring to help it target its limited inspection and
certification resources.  However, FAA's current estimates for system
software are subjective, not supported by verifiable analysis, and
therefore may be unreliable.  To identify aviation safety risk
precursors, the system depends on information from many databases,
including those compromising FAA's Aviation Safety Analysis System. 
As previously reported by GAO, FAA, and others, these Aviation Safety
Analysis System databases contain incomplete, inconsistent, and
inaccurate data.  If the data quality is poor, the system's input
into safety decisions will not be reliable and will not effectively
support FAA's inspection and certification system. 

Postal Service:
Automation Is Taking Longer and Producing Less Than Expected

GAO/GGD-95-89BR, Feb.  22 (56 pages). 

The U.S.  Postal Service must overcome difficult, if not
insurmountable, obstacles if it is to successfuly introduce optical
scanning into its operations by 1998.  Barcoding of letter mail and
automatic sorting of letters to homes and businesses, known as
"delivery point sequencing," has proven more difficult than the
Postal Service expected and lags behind schedule.  The savings from
automation continue to be small compared to overall labor costs and
more difficult to achieve than the Postal
Service anticipated. 


      TESTIMONY
------------------------------------------------------ Appendix 0:14.1

Government Reform:  Using Reengineering and Technology to Improve
Government Performance, by Charles A.  Bowsher, Comptroller General
of the United States, before the Senate Committee on Governmental
Affairs.  GAO/T-OCG-95-2, Feb.  2 (38 pages). 

Reengineering and modern technology offer great opportunities to
reduce federal costs while improving government services.  Yet after
having spent more than $200 billion on information systems during the
past 12 years, the federal government is in the worst possible
situation--having invested heavily in costly information system
projects that often fail to produce dramatic service improvements or
significant reductions in personnel and administrative costs. 
Moreover, Congress and federal managers remain information poor,
severely lacking in reliable data with which to measure the costs and
results of agency operations.  The Comptroller General's testimony
discusses the (1) critical risks in the government's management of
its $25 billion annual investment in information technology; (2)
management practices used by leading organizations to reduce the
risks of bad investments and increase the chances of successfully
exploiting technology opportunities; and (3) steps that Congress and
federal agencies can take now to bring about a government that is
smaller, works better, and costs less. 

Paperwork Reduction Act:  Reauthorization Can Strengthen Government's
Management of Information Technology, by Gene L.  Dodaro, Assistant
Comptroller General for Accounting and Information Management
Programs, before the Subcommittee on National Economic Growth,
Natural Resources, and Regulatory Affairs, House Committee on
Government Reform and Oversight.  GAO/T-AIMD/GGD-95-80, Feb.  7 (23
pages). 

This testimony discusses draft legislation reauthorizing the
Paperwork Reduction Act.  The act is a vital component of an overall
legislation framework designed to solve basic management problems
undermining the effectiveness of many government programs.  GAO
comments on several proposals in the draft legislation to improve the
information management and technology aspects of the act.  GAO also
summarizes its work on the government's role in limiting the
paperwork burden on individuals
and businesses. 

Tax Systems Modernization:  Unmanaged Risks Threaten Success, by
Hazel E.  Edwards, Director of Information Resources
Management/General Government Issues, before the Subcommittee on
Treasury, Postal Service, and General Government, House Committee on
Appropriations.  GAO/T-AIMD-95-86, Feb.  16 (23 pages). 

The Internal Revenue Service's (IRS) goal is a paperless work
environment in which tax returns are filed electronically and
information on paper returns and other documents is quickly converted
to electronic data that is immediately accessible to IRS employees. 
However, after spending almost $2 billion over eight years to
modernize the nation's tax system, IRS has realized only marginal
improvements in its operations, and future efforts are at risk of
failure.  Initial systems were not built to be integrated into IRS'
comprehensive Tax Systems Modernization program and they have yet to
deliver the expected increases in capability and customer service. 
Future efforts are at risk because of (1) the lack of technical and
management expertise to implement Tax Systems Modernization; (2) the
failure of ongoing systems development to take into account changes
arising from process improvements; and (3) the lack of set system
development priorities, established performance measures, or fully
established technical guidelines. 

Weather Service Modernization:  Despite Progress, Significant
Problems and Risks Remain, by Joel C.  Willemssen, Director of
Information Resources Management/Resources, Community, and Economic
Development, before the Subcommittee on Energy and Environment, House
Committee on Science.  GAO/T-AIMD-95-87, Feb.  21 (13 pages). 

The National Weather Service's (NWS) modernization program, at a cost
of about $4.5 billion, is one of the larger systems modernization
efforts in the federal government.  GAO believes that the
modernization, if properly executed, should improve the quality of
the agency's products and services, while also streamlining and
downsizing operations.  Moreover, despite some setbacks along the
way, the modernization can boast of some successes.  The Next
Generation Weather Radars, for example, represent a "quantum leap" in
capability over the radars they are replacing.  The modernization,
however, is far from over and the challenges that remain are
formidable.  If the modernization is to achieve its full potential,
known systems problems, such as those plaguing the Automated Surface
Observing System, must be overcome, and future system development
risks, such as those facing the Advanced Weather Interactive
Processing System, must be effectively managed.  Further, the
modernization's many interrelated and interdependent systems must be
developed and evolved according to a detailed blueprint, such as that
offered by a
systems architecture. 


   INTERNATIONAL AFFAIRS
-------------------------------------------------------- Appendix 0:15

Former Soviet Union:
U.S Bilateral Program Lacks Effective Coordination

GAO/NSIAD-95-10, Feb.  7 (56 pages). 

Since the Soviet Union was dissolved in late 1991, the newly
independent successor states have been trying to develop more
efficient, market-based economies and establish democratic
governments.  The United States has strongly supported this
transition, both diplomatically and financially.  The structure that
the executive branch established to coordinate, manage, and implement
U.S.  programs to help with this enormous undertaking is both unique
and complex.  This report (1) identifies the size, scope, and status
of the various U.S.  bilateral programs for the former Soviet Union;
(2) describes the structures established for coordinating and
managing these programs; and (3) describes some of the coordination
and structural problems the executive branch has faced. 

Honduras:
Continuing U.S.  Military Presence at Soto Cano Base Is Not Critical

GAO/NSIAD-95-39, Feb.  8 (23 pages). 

Since 1983, the United States has maintained a semipermanent military
presence at Honduras' Soto Cano Air Force Base.  The U.S.  presence
was established to support U.S.  military and political interests in
Central America, which were threatened by Communist expansion in the
region.  The cost to maintain the U.S.  presence there is projected
to be about $38 million in fiscal year 1994.  With the end of the
Cold War and political changes in the region, GAO examined the need
for a continuing U.S.  military presence in Honduras.  This report
assesses whether the U.S.  military presence is critical to U.S. 
activities and objectives. 

Peace Operations:
Information on U.S.  and U.N.  Activities

GAO/NSIAD-95-102BR, Feb.  13 (40 pages). 

Peace operations use military forces to help maintain or restore
international peace.  Peace operations fall into three categories: 
those seeking to prevent conflict from breaking out, those that seek
to compel countries to comply with international sanctions designed
to maintain or restore peace and order, and those designed to relieve
human misery and suffering.  This briefing report covers (1) the cost
and funding of peace operations, (2) the effectiveness of U.N. 
operations, (3) U.S.  policy and efforts to strengthen U.N. 
capabilities, and (4) the impact of peace operations on the U.S. 
military. 

Foreign Assistance:
Selected Donors' Approaches for Managing Aid Programs

GAO/NSIAD-95-37, Feb.  23 (55 pages). 

Congress and the executive branch have been deliberating on how to
reform the U.S.  foreign assistance program given the rapidly
changing global environment and recurring management problems.  This
report provides information on how six other bilateral
donors--Canada, Germany, Japan, Sweden, the Netherlands, and the
United Kingdom--and the European Union, a multilateral donor, manage
their foreign aid programs.  GAO discusses (1) the difficulty of
planning in an uncertain environment, (2) common structural dilemmas
in foreign aid programs, and (3) common management weaknesses. 


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

International Trade:  Reauthorization of the Generalized System of
Preferences Program, by Allan I.  Mendelowitz, Director of
International Trade, Finance, and Competitiveness Issues, before the
Subcommittee on Trade, House Committee on Ways and Means. 
GAO/T-GGD-95-104, Feb.  27
(16 pages). 

The Generalized System of Preferences Program is a unilateral effort
that extends duty-free entry to imports from developing countries. 
In 1994, $18.4 billion, or about three percent of total U.S. 
imports, entered duty free under the program.  This testimony draws
on a recent GAO report (GAO/GGD-95-9, Nov.  1994) that found that the
program has a generally well-structured administrative process for
considering petitions to add or remove products from program
coverage.  GAO did note opportunities to improve program
administration, however. 


   JUSTICE AND LAW ENFORCEMENT
-------------------------------------------------------- Appendix 0:16

Juvenile Justice:
Minimal Gender Bias Occurred in Processing Noncriminal Juveniles

GAO/GGD-95-56, Feb.  28 (90 pages). 

This report studies gender bias in state juvenile justice systems'
handling of status offenders, who are youths who have committed an
offense, such as truancy or ungovernable behavior, that would not be
a crime if committed by an adult.  GAO defines "gender bias" as
intentional or unintentional differences in the juvenile justice
system's outcomes of female and male status offenders who have
similar characteristics, such as age, status offense, and prior
offense history.  GAO (1) compares the outcome of the intake
decisions and the frequency and outcomes of detentions,
adjudications, and out-of-home placements of female and male status
offenders and (2) compares the availability of facilities and
services for female and male status offenders in selected
jurisdictions. 


      TESTIMONY
------------------------------------------------------ Appendix 0:16.1

INS:  Update of 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-95-82, Feb.  8
(18 pages). 

Immigration and Naturalization Service (INS) management needs to
develop a vision about how the agency should operate and correct
significant weaknesses in its delivery of services, budget
development, financial management, program-related information
management, and organizational structure.  INS efforts to overcome
management problems must proceed while it grapples with substantial
demands for services and enforcement.  These include (1) stemming the
flow of illegal aliens across the border, (2) deciding which aliens
to detain, (3) identifying and removing illegal and criminal aliens,
(4) enforcing the employment of only authorized workers, and (5)
processing aliens' requests for asylum.  The management problems at
IRS did not develop overnight, nor will they be solved overnight. 
Progress will require a sustained commitment from both INS and the
Justice Department.  Continuous congressional oversight will also be
needed. 


   NATIONAL DEFENSE
-------------------------------------------------------- Appendix 0:17

Acquisition Management:
Waivers to Workforce Training, Education, and
Experience Requirements

GAO/NSIAD-95-88, Feb.  1 (10 pages). 

The Defense Acquisition Workforce Improvement Act was intended to
professionalize the Defense Department's (DOD) acquisition workforce
by establishing education, training, and experience requirements that
were to take effect over three years beginning in October 1991.  The
act allows DOD to waiver qualification requirements if unusual
circumstances justify it or if the individual's qualifications
obviate the need for meeting the requirements.  This is GAO's fourth
report on DOD's compliance with the act's waiver provisions.  GAO
also provides information on DOD's use of fulfillments, which enable
individuals to receive credit when they already have the required
competencies instead of taking training classes. 

Whistleblower Protection:
Continuing Impediments to Protection of Military Members

GAO/NSIAD-95-23, Feb.  2 (17 pages). 

Under Pentagon procedures established to implement the Whistleblower
Protection Act, only whistleblowers who make allegations of reprisals
directly to the Defense Department's (DOD) Inspector General (IG) are
protected under the law.  Service members who make allegations of
reprisal to service or local IGs are not afforded such protection. 
At the time of GAO's review, the DOD IG had completed few cases
involving service members' claims that mental health evaluations had
been used in retaliation for whistleblowing.  Further, DOD had not
yet issued regulations to ensure that the services consistently
protect whistleblowers from reprisal.  GAO concludes that service
members may have been unaware of their rights and uninformed that the
law affords them protection only if they file their allegations of
reprisal with the DOD IG.  Service members who believe that they were
the subject of reprisals for whistleblowing before passage of the
1988 act may request relief from their service's Board for the
Correction of Military Records.  Although the law requires that
requests be made within three years after the discovery of an error
or injustice, the Board may waive the time limit. 

Federally Funded R&D Centers:
Executive Compensation at The Aerospace Corporation

GAO/NSIAD-95-75, Feb.  7 (17 pages). 

The Aerospace Corporation runs a federally funded research and
development center sponsored by the Air Force.  As of September 1994,
Aerospace employed 32 executives, 12 of whom were corporate officers. 
The officers' total compensation averaged about $240,000, and their
annual salary averaged about $176,000.  From September 1991 to
September 1994, total salary cost for all Aerospace executive rose 78
percent, primarily due to raises of up to 29 percent for individual
executives in 1992 and a 45-percent increase in the number of
executives from 1991 to 1994.  In addition, Aerospace paid executives
hiring bonuses of $30,000 each in 1993.  In an audit started in
response to Aerospace's June 1992 salary increases, the Defense
Contract Audit Agency (DCAA) initially questioned the reasonableness
of the salaries and fringe benefits.  In its final report, however,
DCAA no longer questioned the reasonableness of corporate officers'
salaries but recommended that Aerospace provide further support for
corporate officers' fringe benefits. 

DOD Budget:
Selected Categories of Planned Funding for Fiscal Years 1995-99

GAO/NSIAD-95-92, Feb.  17 (19 pages). 

GAO identified programs in the Defense Department's (DOD) future
funding plans for fiscal years 1995-99 for the following 13
categories:  environmental cleanup and restoration, defense
conversion, DOD dependents schools and Junior ROTC, basic research,
counter-drug efforts, humanitarian and foreign assistance programs,
civilians separation pay and military temporary early retirement
authority, grants to colleges and universities, operation of the 89th
Military Airlift Wing at Andrews Air Force Base, medical education
and noncombat-related medical research, support for foreign military
sales, antiterrorism activities, and pay and allowances to jailed
military personnel.  GAO notes that DOD planned to fund about $13
billion to $15 billion annually for programs in these 13 categories
when the President submitted his fiscal year 1995 budget in February
1994.  More than half of the funds are in the operations and
maintenance account, which traditionally has funded combat training
and other readiness-related items.  The largest part of the remaining
funds are in the research, development, test, and evaluation account. 

Military Bases:
Environmental Impact at Closing Installations

GAO/NSIAD-95-70, Feb.  23 (48 pages). 

Since 1988, the Defense Department (DOD) has been closing and
realigning military installations.  A major problem is the billions
of dollars it will cost to clean up hazardous waste at these bases. 
The estimated cost for cleaning up environmental problems at closing
military bases has risen to $5.4 billion, a figure that GAO believes
is understated.  Meanwhile, the full extent of cleanup actions may
not be known for years, and installations may not be cleaned up by
the time they close.  Delays in addressing groundwater pollution,
landfill contamination, and unexploded ordnance are hindering the
transfer of property to nonfederal users. 


      TESTIMONY
------------------------------------------------------ Appendix 0:17.1

Military Bases:  Challenges in Identifying and Implementing Closure
Recommendations, by Frank C.  Conahan, Senior Advisor to the
Comptroller General for Defense and International Affairs Programs,
before the Subcommittee on Military Installations and Facilities,
House Committee on National Security.  GAO/T-NSIAD-95-107, Feb.  23
(21 pages). 

This testimony provides an overview of GAO's work on the Defense
Department's (DOD) base realignment and closure process.  GAO (1)
provides a brief historical account of the realignment and closure
process, including GAO's role in the process; (2) summarizes some of
the conclusions GAO has drawn in assessing DOD's decision-making
process before base closing and realignment rounds and identifies
improvements that DOD and its components have made to the process;
(3) discusses the results of GAO's work on previous base closures,
including planned reuse and environmental cleanup of these
facilities; and (4) makes some preliminary observations about closure
and realignment issues that may extend beyond the life of the current
base closure and
realignment legislation. 


   NATURAL RESOURCES
-------------------------------------------------------- Appendix 0:18

National Parks:
Information on the Condition of Civil War Monuments at
Selected Sites

GAO/RCED-95-80FS, Feb.  1 (23 pages). 

National Park Service records show that 98 percent of the 2,510
monuments at the 11 Civil War battlefield parks GAO reviewed are in
good or fair condition, meaning that they need little or no repair. 
The remaining two percent--54 monuments--are in poor shape, with
statuary and pedestals suffering from the following problems:  broken
or missing parts, chips and cracks, and wear and erosion.  The most
common causes of these problems are weathering and vandalism.  Other
causes include erosion, structural deficiencies, and neglect.  Park
officials estimate the cost to repair 34 of the monuments at
$2,403,000.  Cost estimates were not provided for the other 20
monuments because officials were unsure what work was needed or how
much it would run. 


      TESTIMONY
------------------------------------------------------ Appendix 0:18.1

National Park Service:  Better Management and Broader Restructuring
Efforts Are Needed, by James Duffus III, Director of Natural
Resources Management Issues, before the Subcommittee on National
Parks, Forests, and Lands, House Committee on Resources, and the
Subcommittee on Interior, House Committee on Appropriations. 
GAO/T-RCED-95-101, Feb.  9
(13 pages). 

The National Park Service lacks necessary financial data, internal
controls, and performance measures that would allow the agency to
shift resources among competing goals, rank priorities so that the
most pressing issues receive attention, and link the agency's
planning process directly to budget decisions to better allocate
resources.  Although the Park Service's restructuring plan addresses
some of the challenges facing the agency, such as the need to meet
the demands of an expanding system, growing numbers of visitors, and
increasingly complex resource protection problems, the plan does not
address the potential to improve operations through land management
collaboration among Interior's three land management agencies and
Agriculture's Forest Service.  It also does not consider which
functions or programs could be eliminated or turned over to state or
local governments or to the private sector. 


   SCIENCE, SPACE, AND TECHNOLOGY
-------------------------------------------------------- Appendix 0:19

NASA Procurement:
Contract and Management Improvements at the Jet
Propulsion Laboratory

GAO/NSIAD-95-40, Dec.  30 (12 pages). 

The current contract for running NASA's Jet Propulsion Laboratory
contains improvements in several areas--award fee, selected cost
controls, scope of work, and number of contract deviations.  In
addition, steps have been taken to address internal control concerns. 
For example, policy changes have drastically curtailed the lending of
computer equipment to employees and greatly reduced meal and beverage
costs.  NASA has not yet reviewed the reasonableness of paying
college tuition for dependents of lab employees.  However, NASA has
asked the Defense Contract Audit Agency to review the lab's
compensation package, singling out the tuition assistance benefit for
special scrutiny.  The ultimate success of both the contractual and
oversight changes at the lab will depend on
effective implementation. 


   SOCIAL SERVICES
-------------------------------------------------------- Appendix 0:20

Welfare Reform:
Implications of Proposals on Legal Immigrants' Benefits

GAO/HEHS-95-58, Feb.  2 (23 pages). 

GAO found that the percentage of immigrants receiving public
assistance--specifically Supplemental Security Income (SSI) or Aid to
Families With Dependent Children (AFDC)--is higher than the
percentage of citizens receiving these benefits.  Six percent of all
immigrants receive benefits compared with 3.4 percent of all
citizens.  Most immigrant recipients live in four states: 
California, New York, Florida, and Texas; more than one-half of all
immigrant recipients live in California.  Between 1983 and 1993, the
number of immigrants receiving SSI more than quadrupled, increasing
from 151,000 to 683,000.  During this period, immigrants grew from
about four percent of all SSI recipients to more than 11 percent.  As
a percentage of all adult AFDC recipients, immigrants grew from about
five percent to eight percent.  In all, immigrants received an
estimated $3.3 billion in SSI benefits and $1.2 billion in AFDC
benefits in 1993.  Most immigrant recipients are lawful permanent
residents or refugees, but other characteristics of immigrants
receiving SSI and AFDC vary.  For example, the number of immigrants
receiving SSI aged benefits--available to those 65 years and
older--has increased dramatically.  According to the Congressional
Budget Office, a welfare reform proposal now before Congress (H.R. 
4) would save $9.2 billion from the SSI program and $1 billion from
the AFDC program over four years.  GAO estimates that 522,000 SSI
recipients and 492,000 AFDC recipients would become ineligible for
benefits under H.R.  4. 


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

Means-Tested Programs:  An Overview, Problems, and Issues, by Jane L. 
Ross, Director of Income Security Issues, before the Subcommittee on
Department Operations, Nutrition and Foreign Agriculture, House
Committee on Agriculture.  GAO/T-HEHS-95-76, Feb.  7 (29 pages). 

Nearly 80 means-tested programs have been created over the years for
low-income people.  In fiscal year 1992, the federal government spent
about $208 billion on these programs to meet the needs of poor
Americans of all ages.  The many means-tested programs are costly and
difficult to administer.  On the one hand, the programs sometimes
overlap one another; on the other hand, they are often so narrowly
focused that service gaps hinder clients.  GAO notes that although
advanced computer technology is essential to the programs operating
efficiently, it is not being effectively developed or used.  Due to
their size and complexity, many of these programs are vulnerable to
waste, fraud, and abuse.  Moreover, the welfare system is often
difficult for clients to use effectively.  Finally, administrators
have not articulated clear goals and objectives for some programs and
have not collected data on how well the programs
are working. 


   TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:21

Tax Policy and Administration:
1994 Annual Report on GAO's Tax-Related Work

GAO/GGD-95-66, Feb.  16 (112 pages). 

This report summarizes GAO's work in the tax area during fiscal year
1994.  It discusses actions taken on GAO's recommendations as of the
end of 1994, recommendations that GAO made to Congress before and
during fiscal year 1994 that remain open, and assignments for which
GAO was given access to tax information under the law.  GAO's key
recommendations for tax policy and administration related to the need
for improving compliance with the tax laws, increasing accounts
receivable collections, modernizing the Internal Revenue Service,
enhancing the effectiveness of tax incentives, helping taxpayers, and
improving financial management. 


      TESTIMONY
------------------------------------------------------ Appendix 0:21.1

Tax Administration:  Tax Compliance Initiatives and Delinquent Taxes,
by Jennie S.  Stathis, Director of Tax Policy and Administration
Issues, before the Subcommittee on Treasury, Postal Service, and
General Government, House Committee on Appropriations. 
GAO/T-GGD-95-74, Feb.  1 (21 pages). 

The Internal Revenue Service (IRS) faces some formidable enforcement
challenges, such as closing a tax gap that was last estimated at $127
billion in tax year 1992 and collecting tens of billions of dollars
of tax debt.  Congress recognizes these challenges, and every year
but one since 1990 it has provided compliance initiatives that would
add more staff.  The goal is to increase compliance and generate more
revenue.  This testimony discusses IRS' compliance initiatives and
its progress in collecting
tax debts. 

Tax Administration:  IRS' Fiscal Year 1996 Budget Request and the
1995 Filing Season, by Jennie S.  Stathis, Director of Tax Policy and
Administration Issues, before the Subcommittee on Oversight, House
Committee on Ways and Means.  GAO/T-GGD-95-97, Feb.  27 (30 pages). 

This testimony examines the administration's fiscal year 1996 budget
request for the Internal Revenue Service (IRS) and the status of the
1995 filing season.  GAO discusses four main issues--the status of
IRS' Tax Modernization program, IRS' efforts to control tax refund
fraud, the steps that might be taken to make the earned income credit
easier to administer and less susceptible to fraud, and the ability
of taxpayers to reach IRS
by telephone. 


   TRANSPORTATION
-------------------------------------------------------- Appendix 0:22

Intercity Passenger Rail:
Financial and Operating Conditions Threaten Amtrak's
Long-Term Viability

GAO/RCED-95-71, Feb.  6 (117 pages). 

Amtrak's financial condition, always precarious, has declined
steadily to the point that its ability to offer service over its
existing 25,000 mile system is seriously threatened.  It is unlikely
that Amtrak can overcome its problems in financing, capital
investments, and service quality without significant increases in
passenger revenues or subsidies from federal, state, and local
governments.  In recent years, Amtrak has responded to deteriorating
conditions by taking on debt, deferring maintenance, and cutting
staff.  Some of these measures have diminished the quality and
reliability of Amtrak service.  In December 1994, Amtrak announced an
aggressive plan to reduce expenses by $430 annually by eliminating
routes, retiring its oldest cars, cutting staff, and improving
productivity.  Although this plan is an aggressive first step, it
will not solve the railroad's long-term problems.  Amtrak and the
federal government face hard choices.  GAO believes that continuing
the present course--maintaining the same funding level and route
system, even with proposed service cuts--is neither feasible nor
realistic because Amtrak will continue to deteriorate.  GAO discusses
the implications of several alternatives, ranging from privatization
of the railroad to limiting service to routes that carry the largest
number of passengers in the most cost-effective manner.  GAO
summarized this report in testimony before Congress; see: 

Amtrak:  Deteriorated Financial and Operating Conditions Threaten
Long-Term Viability, by Kenneth M.  Mead, Director of Transportation
Issues, before the Subcommittee on Railroads, House Committee on
Transportation and Infrastructure.  GAO/T-RCED-95-98, Feb.  7 (15
pages). 


      TESTIMONY
------------------------------------------------------ Appendix 0:22.1

Surface Transportation:  Reorganization, Program Restructuring, and
Budget Issues, by Kenneth M.  Mead, Director of Transportation
Issues, before the Subcommittee on Transportation, House Committee on
Appropriations.  GAO/T-RCED-95-103, Feb.  13 (24 pages). 

The Transportation Department's (DOT) surface transportation programs
support building and maintaining the nation's highways and transit
systems, researching advanced technologies and new safety techniques,
and overseeing safety for roads and rail.  They collectively account
for more than $26 billion and 6,700 full-time-equivalent positions in
DOT's proposed fiscal year 1996 budget.  This testimony discusses (1)
the proposed reorganization of surface transportation within DOT, (2)
the proposed restructuring of DOT's grant delivery system, (3)
surface transportation budget issues, (4) federal funding of transit
operating assistance and new transit investments, and (5) the
financial and operating condition of Amtrak. 

Interstate Commerce Commission:  Budget and Other Impacts of
Eliminating or Transferring Functions, by Barry T.  Hill, Associate
Director for Transportation Issues, before the Subcommittee on
Railroads, House Committee on Transportation and Infrastructure. 
GAO/T-RCED-95-111, Feb.  22 (16 pages). 

If Congress were to repeal the Interstate Commerce Act and eliminate
the Interstate Commerce Commission (ICC), the budget savings would
total $39 million.  Virtually all the options GAO reviewed for
transferring ICC's functions offer opportunities for savings--ranging
from $16 million to $28 million.  Of potentially greater
significance, however, is the issue of how ICC's remaining regulatory
functions would be handled in the future.  If Congress decides that
there is still a need for a high degree of independence and the
application of substantial expertise in carrying out the remaining
regulatory processes, a merger with the Federal Maritime Commission
or incorporating the functions into the Transportation Department
under a Federal Energy Regulatory Commission-like model might be
preferable.  On the other hand, if Congress decides that an
independent regulatory agency is no longer necessary, then greater
savings might be realized by integrating the remaining ICC functions
into the Transportation Department or by dividing them among
several agencies. 

Air Traffic Control:  Issues Presented by Proposal to Create a
Government Corporation, by Kenneth M.  Mead, Director of
Transportation Issues, before the Subcommittee on Aviation, House
Committee on Transportation and Infrastructure.  GAO/T-RCED-95-114,
Feb.  23 (23 pages). 

In part due to the slow pace of the Federal Aviation Administration's
(FAA) program to modernize the air traffic control system, proposals
have been put forth to reform the system.  An administration proposal
would create a wholly-owned, nonprofit, self-sufficient government
corporation to operate and modernize the air traffic control system. 
Under this proposal, FAA would continue to provide safety oversight. 
This testimony discusses critical issues relating to the proposed
corporation's financial projections, oversight of safety, and
governance. 

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