Reports and Testimony: May 1995 (Other Written Prod., 06/95,
GAO/OPA-95-8).

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

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

 REPORTNUM:  OPA-95-8
     TITLE:  Reports and Testimony: May 1995
      DATE:  06/01/95
   SUBJECT:  Medicare programs
             Federal agency reorganization
             Export regulation
             Financial management
             National defense operations
             Transportation operations
             Welfare services
             International relations
             Billing procedures
             Health care services
IDENTIFIER:  USDA Export Enhancement Program
             1995 Farm Bill
             Medicaid Program
             California
             China
             Yugoslavia
             Comanche Helicopter
             Colorado River Basin
             NASA Cassini Saturn Probe Program
             JOBS Program
             Job Opportunities and Basic Skills Training Program
             AFDC
             FAA Air Traffic Control Modernization Program
             Denver International Airport (CO)
             Markets and Trading Reorganization and Reform Act
             Federal Acquisition Reform Act of 1995
             Desert Storm
             Persian Gulf War
             IRS Installment Agreement Program
             
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REPORTS AND TESTIMONY:  MAY 1995

GAO/OPA-95-8


Highlights

Medicare Billing Abuse

With an investment of only $20 million in off-the-shelf commercial
software to detect fraudulent claims by physicians--primarily
manipulation of billing codes--Medicare could save nearly $4 billion
over five years.  Page 29. 

Government Reorganization

With increasing attention being focused on government reform, GAO
sets forth several useful principles to deal with federal
reorganization--including the need for an integrated approach; plans
that are designed to achieve specific goals; finding the right
vehicle to accomplish goals; implementation; and oversight.
Page 22. 

Export Controls

Lax export controls and unclear jurisdiction at federal agencies may
permit the export of sensitive stealth technology, allowing foreign
governments to acquire the knowledge to build weapons capable of
evading detection by U.S.  radar systems.  Page 33. 

GAO/OPA-95-8



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

  AFDC - x
  CFTC - x
  CPI - x
  DLA - x
  DOD - x
  DOE - x
  DOT - x
  EEOC - x
  EPA - x
  FAA - x
  FBI - x
  FDIC - x
  FTS - x
  GSE - x
  HCFA - x
  HMO - x
  HUD - x
  IHS - x
  IRS - x
  JOBS - x
  NAPA - x
  NASA - x
  NEXRAD - x
  NHTSA - x
  NRC - x
  NSF - x
  RTC - x
  SBA - x
  SEC - x
  SSA - x
  SNN - x
  USDA - x
  VA - x
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REPORTS AND TESTIMONY:
MAY 1995
=========================================================== Appendix 0


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

Agricultural Marketing:
Comparative Analysis of U.S.  and Foreign Promotion and
Research Programs

GAO/RCED-95-171, Apr.  28 (65 pages). 

U.S.  producers, importers, and others handling a variety of
agricultural products pay millions of dollars each year for programs
to increase domestic and foreign sales of these products.  These
programs are known as check-off programs because of the way that they
are funded:  A small amount is deducted from the revenues that
producers or other members of an industry receive from the sale of
their products.  The programs are run by check-off boards, such as
the National Dairy Promotion and Research Board.  This report
provides information on (1) how U.S.  check-off programs are
organized and the kinds of activities they carry out; (2) what
factors the check-off boards consider in planning future program
activities:  and (3) how comparable marketing organizations in
Australia, Germany, New Zealand, and the United Kingdom are organized
and carry out their activities. 

U.S.  Department of Agriculture:
Foreign-Owned Exporters' Participation in the Export Enhancement
Program

GAO/GGD-95-127, May 11 (26 pages). 

This report reviews the participation of foreign-owned companies in
the Export Enhancement Program, which is run by the Agriculture
Department's Foreign Agricultural Service.  The program is intended
to discourage unfair trade practices of other countries and boost the
competitiveness of U.S.  agricultural commodities.  GAO discusses
whether (1) providing bonuses to foreign-owned exporters is
consistent with program goals and objectives and (2) restricting
foreign-owned exporters from participation would harm the program. 
GAO also discusses whether current Foreign Agricultural Service
controls adequately protect against unauthorized diversion of program
shipments to countries other than those originally targeted. 



      TESTIMONY
------------------------------------------------------- Appendix 0:1.1

Farm Loans:  Actions Needed to Safeguard Taxpayers' Interests, by
John W.  Harman, Director of Food and Agriculture Issues, before the
Subcommittee on Resource Conservation, Research, and Forestry, House
Committee on Agriculture.  GAO/T-RCED-95-194, May 18 (10 pages). 

The Consolidated Farm Service Agency's farm loan programs have
generated huge losses--$12.5 billion during fiscal years 1989-94. 
About 98 percent of the losses, or $12.2 billion, has occurred in the
direct loan program.  Additional losses can be expected because
delinquent borrowers held about 26 percent of the agency's $18
billion direct and guaranteed loan portfolio as of September 30,
1994.  Most of these delinquencies--$4.6 billion out of $4.8
billion--were in the direct loan program.  Several factors have
contributed to the direct farm loan program's financial
vulnerability.  First, the agency's field offices have not
consistently implemented lending, servicing, and property management
standards intended to protect the government's loan interests. 
Second, some of the agency's loan policies expose the program to
losses.  For example, a borrower may obtain a new loan despite being
delinquent on another loan.  A third, and perhaps more fundamental,
source of problems is conflicting program objectives.  The agency's
mission--to provide temporary credit to high-risk farmers--is often
at odds with normal fiscal controls designed to minimize risk and
financial losses.  GAO recommends strengthening loan policies as well
as further clarifying the agency's
basic mission. 

Food Assistance:  Alternatives for Delivering Benefits, by Robert A. 
Robinson, Associate Director for Food and Agriculture Issues, before
the Senate Committee on Agriculture, Nutrition, and Forestry. 
GAO/T-RCED-95-202, May 23 (14 pages). 

This testimony summarizes two recent reports on the Agriculture
Department's (USDA) food assistance program.  A December 1994 report
(GAO/RCED-95-13) compared the current coupon-based system for
delivering food stamp benefits with two alternative systems being
tested by USDA--electronic benefit transfer and providing benefits
via check.  GAO reported that no one system was clearly superior to
the other two in all areas.  A February 1995 report
(GAO/RCED-95-115R) identified several alternatives for food
assistance programs.  These included consolidating multiple programs
with similar objectives, improving how benefits to low-income persons
are targeted, and eliminating programs that have not proven to be
effective. 


Milk Marketing Orders:  Issues for Consideration in Reauthorizing the
Farm Bill in 1995, by John W.  Harman, Director of Food and
Agriculture Issues, before the Subcommittee on Livestock, Dairy, and
Poultry, House Committee on Agriculture.  GAO/T-RCED-95-203, May 23
(five pages). 

The market conditions that led to the creation of the federal
dairy-pricing system have changed, and the premises for milk pricing
under federal orders are outdated.  As a result, milk-marketing
orders have led to excess production and inequitable treatment of
some producers.  This situation exists because the orders guarantee
producers in some areas of the country higher prices than producers
in other areas, even though production costs might be the same or
less.  Two pricing components of federal milk-marketing orders
contribute to these conditions:  (1) an incentive to boost production
of higher-quality milk for drinking purposes (grade A) and (2) an
incentive to make it profitable for traditional surplus milk
production areas to ship milk to traditional areas of insufficient
production.  Options exist to address these matters. 

Sugar Program:  Impact on Sweetener Users and Producers, by
John W.  Harman, Director of Food and Agriculture Issues, before the
Subcommittee on Risk Management and Specialty Crops, House Committee
on Agriculture.  GAO/T-RCED-95-204, May 24 (seven pages). 

The U.S.  sugar program, through its price support loans and
tariff-rate import quotas, protects sugar producers from lower world
prices but boosts domestic sugar prices, costing users an estimated
$1.4 billion annually.  Benefits are concentrated among a relatively
small percentage of sugarcane and sugar beet farms, and there is no
limit to the size of an individual's benefits.  GAO estimates that 42
percent of the sugar growers' benefits went to one percent of all
sugar farms in 1991.  GAO recommends that Congress consider
legislation to move the industry toward a more open market.  GAO
suggests that, as part of this transition, Congress gradually lower
the loan rate for sugar and direct the Agriculture Department to
adjust import quotas accordingly.  Reducing the loan rate gradually
would give producers time to make orderly adjustments. 


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

Budget Function Classification:
Agency Spending and Personnel Levels for Fiscal Years 1994
and 1995

GAO/AIMD-95-115FS, Apr.  11 (133 pages). 

This fact sheet examines the functions performed by federal agencies. 
GAO identifies those functions that are uniquely associated with each
agency and those performed by two or more agencies.  This fact sheet
also provides financial information and civilian personnel levels
associated with each function.  GAO presents actual fiscal year 1994
and estimated fiscal year 1995 information from the President's 1996
budget.  This fact sheet contains (1) a matrix of federal agencies
according to budget function classifications developed by the Office
of Management and Budget, (2) a separate presentation for each agency
depicting obligation and employment levels by budget function, and
(3) a separate presentation for each budget function showing
obligation and employment levels
by agency. 

Budget Function Classification:
Agency Spending by Subfunction and Object Category, Fiscal
Year 1994

GAO/AIMD-95-116FS, May 10 (117 pages). 

This fact sheet is the third in a series of GAO reports examining the
functions performed by federal agencies.  GAO identifies those
functions that are uniquely associated with each agency and those
performed by two or more agencies.  In particular, this fact sheet
provides an "accounting of expenditures" so that both administrative
and mission-oriented operations are identified.  GAO describes fiscal
year 1994 obligations by subdepartment and subfunction and by
focusing on objects of expenditure within each subfunction.  This
enables GAO to more precisely describe federal activities by
characterizing obligations according to the nature of the service or
the article procured. 


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

Program Consolidation:  Budgetary Implications and Other Issues, by
Paul L.  Posner, Director of Budget Issues, before the Subcommittee
on Government Management, Information, and Technology, House
Committee on Government Reform and Oversight.  GAO/T-AIMD-95-145, May
23 (27 pages). 

The federal government runs a host of programs that often are
duplicative and overlapping, reducing the efficiency and the
effectiveness of government services.  Program consolidation is a
promising alternative.  During the past year, GAO issued several
reports documenting fragmentation and duplication in education
programs.  This testimony discusses some of the issues that GAO
believes are important to efforts to consolidate education programs,
emphasizing grant program consolidations.  However, Congress has also
shown great interest in program consolidations and streamlining
across many areas of the federal budget--from defense and
international affairs to transportation and welfare.  Some
consolidations will undoubtedly bring together activities that are
entirely federal in nature.  Yet many program consolidations being
debated would merge smaller, more narrowly defined federal grant
programs into larger programs of state and locally run federal
assistance.  It is expected that the new programs will operate as
partnerships with state and local governments in which federal
funding will be reduced.  Accordingly, this testimony stresses the
budgetary and other implications of grant consolidations for the
federal government. 

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 Branch, Senate Committee on
Appropriations.  GAO/T-OCG-95-5, May 26 (17 pages). 

A strong GAO is critical to congressional oversight of the executive
branch.  GAO is uniquely posited with staff and expertise to watch
for accelerating costs in big programs, alert Congress to emerging
problems, help pursue efficiency and effectiveness in government, and
ensure accountability and integrity in the use of scarce federal
dollars.  In this era of government downsizing, GAO is prepared to
work with Congress in defining the agency's appropriate size and to
help develop and implement plans to reach that level.  Properly
managed, a phased reduction will allow GAO to maintain its core
audit, investigatory, and evaluative functions that serve the needs
of Congress and the taxpayers. 


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

Small Business:
Information on Eight Small and Disadvantaged Business
Utilization Offices

GAO/RCED-95-137, Apr.  14 (14 pages). 

To increase opportunities for small and disadvantaged businesses to
obtain federal contracts, Congress passed legislation establishing an
Office of Small and Disadvantaged Business Utilization in each
federal agency with procurement powers.  These offices are
responsible for overseeing the agency's awarding of contracts and
subcontracts to small and disadvantaged businesses.  This report
reviews offices at the following eight federal agencies:  the
Departments of Defense and Energy; the General Services
Administration; NASA; and, within the Defense Department, the
Departments of the Air Force, the Army, and the Navy.  GAO (1)
determines whether office directors report to the appropriate agency
official as required by law and (2) describes the activities that the
offices perform to help small and disadvantaged businesses obtain
federal contracts. 

Small Business:
Information on SBA's Small Business Investment
Company Programs

GAO/RCED-95-146FS, May 12 (40 pages). 

The Small Business Investment Act of 1958 created a program to help
small businesses obtain financing for starting, maintaining, and
expanding operations.  Under the program, small business investment
companies fund small businesses by purchasing their stock or issuing
them loans.  In 1972, Congress amended the act to establish
specialized small business investment companies to fund small
businesses owned by socially or economically disadvantaged persons. 
This fact sheet provides information on (1) the performance of the
programs between 1990 and 1994, including trends in the number, the
funding, the losses, the capitalization, and the size of the
investment companies, as well as specialized small business
investment companies' participation in the Three Percent Preferred
Stock Repurchase Program; (2) investment companies' investment
activities during that period; and (3) the educational backgrounds
and work experiences of personnel in the Small Business
Administration who manage the program. 


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

Federal Affirmative Employment:
Progress of Women and Minority Criminal Investigators at Selected
Agencies

GAO/GGD-95-85, Apr.  24 (39 pages). 

This report examines the career progression of women and minorities
in the criminal investigator occupation--the most populous of the law
enforcement positions.  GAO limited its analysis to four federal law
enforcement agencies:  the FBI; the Drug Enforcement Administration;
the Bureau of Alcohol, Tobacco and Firearms; and the Inspection
Service of the U.S.  Postal Service.  GAO discusses (1) whether the
representation of women and minorities in the criminal investigator
occupation has improved since 1982, (2) whether the career
progression of women and minority criminal investigators is similar
to that of white male criminal investigators, and (3) what reasons
there may be for any different career
progression patterns. 


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

EEOC:  Burgeoning Workload Calls for New Approaches, by Linda C. 
Morra, Director of Education and Employment Issues, before the Senate
Committee on Labor and Human Resources.  GAO/T-HEHS-95-170, May 23
(15 pages). 

By law, the Equal Employment Opportunity Commission (EEOC) must
accept every charge of employment discrimination.  Today, however,
EEOC is burdened with a growing and aging inventory of pending
charges.  In addition, because employees are more aware of their
rights and the number of nondiscrimination laws is sizeable, EEOC
faces a growing inflow of new charges.  To handle this workload, EEOC
would need a large number of new staff--an unlikely development given
the current environment of budgetary constraints.  EEOC's new
Chairman recognizes this dilemma.  He has discontinued EEOC's
long-standing policy of fully investigating every charge in favor of
a policy that targets investigative resources on the basis of the
strength of the evidence of discrimination behind discrimination
claims.  He also directed EEOC to provide selected cases an
opportunity to attempt settlement through mediation before resorting
to the traditional charge process.  Although it believes that these
are steps in the right direction, GAO doubts that these efforts alone
can solve EEOC's charge-processing problem.  Instead, it may be time
for EEOC, with the help of Congress and others, to reexamine its
mission and how it is carried out. 


   ECONOMIC DEVELOPMENT
--------------------------------------------------------- Appendix 0:5

Rural Development:
Patchwork of Federal Water and Sewer Programs Is Difficult
to Use

GAO/RCED-95-160BR, Apr.  13 (44 pages). 

This briefing report provides additional information on issues raised
in a July 1994 GAO report entitled Rural Development:  Patchwork of
Federal Programs Needs to Be Reappraised (GAO/RCED-94-165).  GAO
discusses (1) the federal programs providing assistance to rural
areas for building, expanding, or repairing water and wastewater
facilities; (2) similarities in and differences between the programs'
objectives and eligibility criteria; (3) problems that rural areas
have encountered in dealing with these federal programs; and (4)
views of groups representing rural areas concerning the possible
consolidation or elimination of some of
these programs. 


   EDUCATION
--------------------------------------------------------- Appendix 0:6

School Safety:
Promising Initiatives for Addressing School Violence

GAO/HEHS-95-106, Apr.  25 (46 pages). 

Many schools throughout the United States are struggling with rising
levels of youth violence.  Schools have adopted a broad range of
solutions to curb violence.  The four programs GAO visited--in
California, Ohio, and New York--are examples of some of the promising
approaches schools have initiated to address violence.  Research
suggests that the most promising school-based violence-prevention
programs involve at least some of seven key characteristics,
including a comprehensive approach, starting early, and involving
parents.  Although few prevention programs have been evaluated, some
federal agencies are now funding evaluations to examine various
violence-prevention program approaches.  The results, which should be
available in three to five years, will help determine which programs
work best at curbing violence. 


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

Nuclear Regulation:
Slow Progress in Identifying and Cleaning Up NRC's Licensees'
Contaminated Sites

GAO/RCED-95-95, Apr.  24 (28 pages). 

For years, the Nuclear Regulatory Commission (NRC) and its
predecessor, the Atomic Energy Commission, paid little attention to
how licensees using radioactive materials were cleaning up their
sites after ending research, manufacturing, and other operations. 
Some sites were ignored for years, often decades, before cleanup was
begun.  At sites where cleanup was attempted, it was often done
improperly, leaving harmful levels of radiation.  This report
evaluates NRC's progress in (1) identifying all former materials
licensees' sites that require additional cleanup and (2) ensuring
that sites in NRC's Site Decommissioning Management Plan--those
facing difficult or prolonged cleanups--are addressed in a timely
manner.  This report also discusses factors that impede the timely
cleanup of sites. 

Electricity Supply:
Consideration of Environmental Costs in Selecting Fuel Sources

GAO/RCED-95-187, May 19 (29 pages). 

Electricity rates do not take into account all the costs of the
harmful environmental effects of electricity production.  In meeting
federal environmental requirements, utilities incur costs--for
pollution control equipment, for example--that are considered
internalized environmental costs because they are included in
electricity rates.  However, other costs--those for residual
pollution emission, which are not controlled--are not reflected in
electricity rates.  The environmental and health consequences of
these residual emissions are considered external costs, which are
referred to as externalities.  Many states require utilities to
consider these externalities for different energy sources (such as
coal, nuclear energy, natural gas, and renewable energy) in deciding
how to produce electricity.  This report reviews whether the
consideration of externalities affected the use of renewable energy,
such as wind, solar, or geothermal power.  GAO also discusses how the
states consider externalities in planning for electricity needs and
what the Energy Department's role in this activity is.  GAO provides
more-detailed information on California, a leader in the generation
of electricity from renewable energy, and New York, a leader in the
consideration
of externalities. 


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

EPA and the States:
Environmental Challenges Require a Better Working Relationship

GAO/RCED-95-64, Apr.  3 (58 pages). 

Congress designed most federal environmental programs so that they
could be administered at the state and local levels.  Once a state
shows that it is capable of implementing an environmental program,
the Environmental Protection Agency (EPA) delegates most day-to-day
responsibilities to the state.  After delegation, EPA regions, with
guidance from headquarters, continue to set goals for the states,
provide them with grants, and monitor their performance.  This report
examines (1) whether EPA and the states have had difficulty
implementing federal environmental requirements; (2) the extent to
which they have had difficulty, and the reason for the difficulty;
and (3) how they can better implement
the requirements. 

Environmental Auditing:
A Useful Tool That Can Improve Environmental Performance and Reduce
Costs

GAO/RCED-95-37, Apr.  3 (94 pages). 

As the estimated cost of cleaning up contamination on federal lands
rises to hundreds of billions of dollars, environmental auditing is
increasingly viewed as a way to foster better environmental practices
in operating federal facilities.  Environmental audits are
comprehensive and systematic reviews of environmental performance
used to improve compliance with environmental laws and minimize
future environmental damage and cleanup costs.  This report (1)
examines the experiences of organizations that are leaders in
environmental auditing and identifies characteristics that
distinguish their programs, (2) determines the extent to which
federal agencies use environmental auditing and the benefits that
could accrue from its wider use, and (3) identifies obstacles and
disincentives to the more-effective use of environmental auditing by
these agencies. 


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

Superfund:  Natural Resource Damage Claims, by Keith O.  Fultz,
Assistant Comptroller General for Resources, Community, and Economic
Development Programs, before the Subcommittee on Superfund, Waste
Control, and Risk Assessment, Senate Committee on Environment and
Public Works.  GAO/T-RCED-95-182, May 11 (13 pages). 

This testimony focuses on settlements for damages to natural
resources under the Superfund statute.  Concerns have arisen that
monetary damages for natural resources, such as wetlands and wildlife
habitat, caused by releases of hazardous substances could add
billions to the cost of Superfund cleanups and impose heavy burdens
on industry and the federal budget.  To date, natural resource damage
settlements have been relatively low--accounting for a small
percentage of what responsible parties have agreed to pay for
Superfund cleanups.  However, federal and state officials have
alerted GAO to three future settlements that could involve hundreds
of millions of dollars.  They have also said that there may be other
instances in which claims will exceed $50 million per geographic
area.  Further, the federal government faces the potential for large
amounts in damages at some of its most contaminated facilities. 

Environmental Protection:  EPA's Problems With Collection and
Management of Scientific Data and Its Efforts to Address Them, by
Peter F.  Guerrero, Director of Environmental Protection Issues,
before the Subcommittee on VA, HUD, and Independent Agencies, Senate
Committee on Appropriations.  GAO/T-RCED-95-174, May 12 (11 pages). 

The federal government's efforts to protect human health and the
environment in an affordable way depend on understanding the risks
posed by various pollutants, the manner in which they affect people
and the environment, and the costs and the benefits of alternative
strategies to prevent pollution or mitigate its effects.  Sound
scientific information is essential in this regard.  This testimony
discusses (1) the Environmental Protection Agency's (EPA) problems in
gathering and managing environmental data needed to do risk
assessments, develop defensible pollution limits, and develop other
regulations and (2) the status of EPA's responses to recommendations
made by GAO and other organizations concerning the agency's
scientific peer review process. 

Environmental Protection:  Current Environmental Challenges Require
New Approaches, by Peter F.  Guerrero, Director of Environmental
Protection Issues, before the Subcommittee on VA, HUD, and
Independent Agencies, Senate Committee on Appropriations. 
GAO/T-RCED-95-190, May 17 (17 pages). 

The recent National Academy of Public Administration (NAPA) review of
the Environmental Protection Agency (EPA) provides a comprehensive
and accurate analysis of EPA's central role in protecting the
nation's environment and provides a good foundation for charting the
future course of environmental management.  This testimony focuses on
two major issues raised in the NAPA report:  (1) EPA's ability to
target its resources to the nation's highest environmental priorities
and (2) EPA's relationship with the states. 

Federal Hazardous Waste Sites:  Opportunities for More Cost-Effective
Cleanups, by Peter F.  Guerrero, Director of Environmental Protection
Issues, before the Subcommittee on Superfund, Waste Control, and Risk
Assessment, Senate Committee on Environment and Public Works. 
GAO/T-RCED-95-188, May 18 (18 pages). 

The federal effort to clean up contaminated hazardous waste sites is
expected to cost hundreds of billions of dollars and take decades to
complete.  Despite outlays of billions of taxpayer dollars so far,
only two sites on the National Priorities List have been completely
cleaned up.  Given continuing budgetary constraints, it is critical
for federal agencies to find the most effective ways to use their
resources.  During the current congressional debate on reauthorizing
Superfund, it is important to address the following issues: 
identifying the full inventory of federal hazardous waste sites,
establishing a priority-setting process for federal cleanups based on
relative risks, better controlling cleanup costs through better
management of cleanup contracts, and exploring incentives to promote
the use of innovative cleanup technologies. 

Superfund:  Information on Operations and Maintenance Activities and
Costs, by Peter F.  Guerrero, Director of Environmental Protection
Issues, before the Subcommittee on Commerce, Trade and Hazardous
Materials, House Committee on Commerce.  GAO/T-RCED-95-201, May 23
(13 pages). 

Even after cleanups at Superfund sites are completed, additional
efforts may be necessary to ensure that the cleanup remedy works and
protects human health and the environment.  For example, if
contaminated soil is contained with a waterproof cover, the cover
must be maintained indefinitely to prevent erosion.  Similarly,
treatment systems for contaminated groundwater may have to be
operated for decades before reaching and maintaining acceptable
levels of water quality.  This testimony focuses on (1) the extent to
which operations and maintenance activities are necessary at National
Priorities List sites; (2) projected costs to the federal government,
states, and responsible parties to carry out these activities; and
(3) EPA's efforts to ensure that sites requiring operating and
maintenance activities adequately protect human health and the
environment. 

Superfund:  Risk Assessment Assumptions and Issues, by Peter F. 
Guerrero, Director of Environmental Protection Issues, before the
Subcommittee on Commerce, Trade, and Hazardous Materials, House
Committee on Commerce.  GAO/T-RCED-95-206, May 24 (13 pages). 

The Environmental Protection Agency's (EPA) assessments of the health
risks posed by Superfund hazardous waste sites, which can determine
the cost of site cleanups, have been a source of great controversy
because they are often based on limited data and therefore often rely
on assumptions about the health effects of waste sites.  This
testimony (1) presents an overview of EPA's risk assessment process
that highlights where risk assumptions are made and (2) summarizes
comments from reports prepared by GAO and others on some of the more
controversial aspects of this process. 


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

Resolution Trust Corporation:
Efforts Under Way to Address Management Weaknesses

GAO/GGD-95-109, May 12 (28 pages). 

As part of GAO's 1992 series of reports on federal programs at high
risk for waste, fraud, and abuse, GAO discussed the cleanup of the
thrift industry and steps that the Resolution Trust Corporation (RTC)
could take to minimize the risks involved.  This report analyzes
RTC's efforts to address the weaknesses that GAO identified in 1992
and during subsequent reviews.  RTC efforts reflect a significant
commitment to implement the needed management improvements, and
coupled with intervening legislation, they have addressed many of the
identified shortcomings.  Therefore, GAO has removed the high-risk
designation.  Despite this progress, however, some risks related to
the thrift industry cleanup still require attention.  Chief among
these are (1) the long-term viability of the thrift insurance fund
and (2) the winding down of RTC and the disposition of its remaining
operations and workload. 

1993 Thrift Resolutions:
RTC's Resolution Process Generally Adequate to Determine Least Costly
Resolutions

GAO/GGD-95-119, May 15 (11 pages). 

The Resolution Trust Corporation (RTC) has improved its resolution
process so that it can better comply with the least-cost provisions
of the Federal Deposit Insurance Corporation Improvement Act of 1991. 
GAO found that RTC had chosen the least costly resolution alternative
for the three resolutions GAO reviewed and that RTC had adequately
documented the bases for those decisions.  GAO also found that RTC
had effectively changed its corporate policies on the treatment of
uninsured depositors and the timing of when it sold the assets of
thrifts in conservatorship.  These changes brought RTC into
compliance with the act's uninsured depositor requirements and better
provided for RTC's conformance with the requirement that it evaluate
other resolution methods before selling assets.  In addition, RTC
changed the timing of its liquidation cost estimates.  Its current
practice is to make an initial liquidation cost estimate at the time
a failed thrift is placed in conservatorship to determine the amount
of estimated losses to be absorbed by uninsured depositors.  This
practice, along with RTC's intention to resolve any additional
failing thrifts through its accelerated resolution program, will
better provide for RTC's conformance with the act. 

Government-Sponsored Enterprises:
Development of the Federal Housing Enterprise
Financial Regulator

GAO/GGD-95-123, May 30 (29 pages). 

GAO is required to audit the operations of the Office of Federal
Housing Enterprise Oversight, which was established in 1992 as an
independent financial regulator of the nation's two largest
government-sponsored enterprises--the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation.  As of
December 1994, the enterprises held combined assets and
mortgage-backed securities of more than $1.3 trillion.  This report
examines the Office's development, focusing on the progress made in
designing and instituting key management systems.  These include the
Office's administrative infrastructure systems--the human resources
and accounting and financial management systems--and the major
mission-related systems--examinations and capital adequacy.  The
report also provides an overview of the Office's compliance with
other operational and reporting requirements. 


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

Financial Market Regulation:  Benefits and Risks of Merging SEC and
CFTC, by James L.  Bothwell, Director of Financial Institutions and
Markets Issues, before the Subcommittee on Capital Markets,
Securities, and GSEs, House Committee on Banking and Financial
Services.  GAO/T-GGD-95-153, May 3 (14 pages). 

This testimony discusses the Markets and Trading Reorganization and
Reform Act--H.R.  718.  GAO strongly believes that Congress needs to
modernize the financial services regulatory system.  H.R.  718 seeks
to improve the effectiveness and the efficiency of financial services
regulation by merging the Securities and Exchange Commission and the
Commodity Futures Trading Commission, the two agencies that regulate
U.S.  domestic equity and futures markets.  Although GAO believes
that this is a logical step for Congress to consider as part of its
continuing modernization effort, Congress must ultimately decide
whether the potential benefits of a merger outweigh the risks.  GAO
briefly discusses the major benefits and risks that Congress needs to
consider.  GAO also discusses specific issues related to H.R.  718
that Congress should address if it proceeds with the merger. 

Resolution Trust Corporation:  Management Improvements Reduce Risks
but Transition Challenges Remain, by Gaston L.  Gianni, Jr.,
Associate Director for Government Business Operations Issues, before
the Subcommittee on General Oversight and Investigations, House
Committee on Banking and Financial Services.  GAO/T-GGD-95-163, May
16 (14 pages). 

This testimony focuses on the Resolution Trust Corporation's (RTC)
performance and the remaining challenges facing RTC's transition to
the Federal Deposit Insurance Corporation (FDIC).  GAO discusses (1)
its recent report on management improvements that led to RTC's
removal from GAO's high-risk list, (2) the status of planning efforts
for RTC's transition to FDIC, and (3) some of the unresolved
transition issues that RTC and FDIC will be facing within the next
few months. 


   FINANCIAL MANAGEMENT
-------------------------------------------------------- Appendix 0:10

Financial Audit:
U.S.  Senate Health Promotion Revolving Fund for the Periods Ended
9/30/93 and 12/31/92

GAO/AIMD-95-105, May 3 (11 pages). 

GAO audited the financial statements of the Senate Health Promotion
Revolving Fund for the periods ended September 30, 1993, and December
31, 1992, and the related statements of revenues, expenses, and cash
flows.  The Office of Senate Health Promotion provides health
promotion education and classes, such as aerobics and weight loss
programs, for Senate employees on a fee basis.  GAO found that the
financial statements were reliable in all material respects; internal
controls reasonably ensured that losses, noncompliance with laws and
regulations, and misstatements affecting the financial statements
would be prevented or detected; and there was no material
noncompliance with laws
and regulations. 

Financial Management:
Control Weaknesses Increase Risk of Improper Navy Civilian Payroll
Payments

GAO/AIMD-95-73, May 8 (14 pages). 

GAO's tests of 225,000 Navy payroll and personnel records for one pay
period found overpayments to 134 Navy civilians, which represented
less than one-tenth of one percent of the accounts tested.  Although
GAO tallied $62,500 in overpayments to these persons, the total
amount overpaid is likely to be far greater because some of these
erroneous payments continued for nearly one year.  The causes of
these overpayments included the following:  (1) The Defense Finance
and Accounting Service did not check to see whether civilian
employees were paid from multiple databases for the same time period
and (2) reconciliations between civilian payroll and personnel
systems were infrequent and did not provide for systematic follow-ups
to investigate and correct discrepancies.  Navy payroll operations
are susceptible to additional improper payments because (1) a large
number of payroll personnel are granted virtually unrestricted access
to both pay and personnel data, (2) ineffective audit trails do not
always identify who made data changes, and (3) inactive payroll
accounts are maintained on the active payroll database. 


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

Financial Management:  Challenges Confronting DOD's Reform
Initiatives, by Charles A.  Bowsher, Comptroller General of the
United States, before the Subcommittee on Readiness, Senate Committee
on Armed Services.  GAO/T-AIMD-95-143, May 16 (22 pages); and

Financial Management:  Challenges Confronting DOD's Reform
Initiatives, by Charles A.  Bowsher, Comptroller General of the
United States, before the Subcommittee on Defense, Senate Committee
on Appropriations.  GAO/T-AIMD-95-146, May 23 (24 pages). 

The Pentagon's efforts to reform its financial management operations
will play a critical role in ensuring that every possible defense
dollar goes toward maintaining the readiness of fighting forces while
reducing the costs of the Defense Department's (DOD) support
operations.  Today, DOD must have good financial management
information to make sound resource allocation decisions, safeguard
its huge investment in assets, and control its operating costs.  DOD
now recognizes the seriousness of its financial management problems
and the urgent need for corrective measures.  However, truly
improving DOD's financial management operations is a major
undertaking.  In fiscal year 1994, DOD was accountable for more than
$1 trillion in assets, more than three million military and civilian
personnel, and $272 billion in expenditures, which represented about
half of the government's discretionary spending.  DOD has serious,
long-standing problems in correctly disbursing billions of dollars in
payments to vendors and providing reliable financial and cost
information to those responsible for carrying out and overseeing
DOD's missions and programs.  The Comptroller General's testimony
discusses DOD's plans for reform and makes suggestions to build on
these efforts. 


   GOVERNMENT OPERATIONS
-------------------------------------------------------- Appendix 0:11

Government Corporations:
Profiles of Recent Proposals

GAO/GGD-95-57FS, Mar.  30 (56 pages). 

Government corporations are federally chartered entities created to
serve a public function of a predominantly business nature.  As used
in this fact sheet, a "proposed government corporation" meets one of
the following criteria:  (1) it was contained in legislation
introduced in Congress, (2) it was proposed in executive agency
reorganizations, or (3) it was recommended in National Academy of
Public Administration studies commissioned by federal agencies.  This
fact sheet identifies proposals to create government corporations
between November 1993 and December 1994.  GAO also discusses the
Community Development Financial Institutions Fund--a new government
corporation created by the Riegle Community Development and
Regulatory Improvement Act of 1994. 

Economic Statistics:
Measurement Problems Can Affect the Budget and
Economic Policymaking

GAO/GGD-95-99, May 2 (24 pages). 

Press reports have asserted that problems with economic statistics
were hindering the formulation of economic policy.  Studies reviewed
by GAO indicate that technical problems could cause the Consumer
Price Index (CPI) to overstate inflation, which could affect federal
benefits and taxes tied to changes in the CPI.  There is no
agreement, however, on a specific estimate of the CPI's possible
misstatement of inflation. 

Managing for Results:
Experiences Abroad Suggest Insights for Federal
Management Reforms

GAO/GGD-95-120, May 2 (76 pages). 

This report identifies approaches taken by other governments in
introducing management reforms that federal agencies may want to
consider as they implement similar reforms mandated by the Government
Performance and Results Act of 1993.  The act requires federal
agencies to implement such results-oriented management reforms as
strategic planning, setting program goals and objectives, measuring
their progress in meeting those goals, and reporting publicly on that
progress.  GAO focuses on the experiences of Australia, Canada, New
Zealand, and the United Kingdom, which are recognized as leaders in
government management reform.  A December 1994 report (GAO/GGD-95-22)
discusses the reform experiences of six leading state governments. 

Federal Retirement:
Benefits for Members of Congress, Congressional Staff, and
Other Employees

GAO/GGD-95-78, May 15 (43 pages). 

The retirement benefits provided by the Civil Service Retirement
System for Members of Congress are generally more generous than those
provided for other federal employees.  The major differences are
found in the eligibility requirements for retirement and the formulas
used to calculate benefits.  The Member benefit formula applies to
congressional staff, but they are covered by the general employee
retirement eligibility requirements.  Law enforcement officers and
firefighters may retire earlier than general employees and are
covered by a more-generous benefit formula than are general
employees.  Under the Civil Service Retirement System, the provisions
for air traffic controllers fall between those for law enforcement
officers and firefighters and those for general employees.  Many of
the advantages afforded to Members of Congress and congressional
staff under the Civil Service Retirement System were continued under
the Federal Employees Retirement System, which covers workers hired
in 1985 and thereafter.  But under the Federal Employee Retirement
System, provisions for law enforcement officers, firefighters, and
air traffic controllers are very similar to provisions for Members. 
GAO summarized this report in testimony before Congress; see: 

Congressional Retirement Issues, by Johnny C.  Finch, Assistant
Comptroller General for General Government Programs, before the
Subcommittee on Post Office and Civil Service, Senate Committee on
Governmental Affairs.  GAO/T-GGD-95-165, May 15 (13 pages). 

Sunday Premium Pay:
Millions of Dollars in Sunday Premium Pay Are Paid to Employees on
Leave

GAO/GGD-95-144, May 19 (14 pages). 

The Sunday premium pay law provides that "an employee who performs
work during a regularly scheduled eight-hour period of service ...  a
part of which is performed on Sunday is entitled to pay for the
entire period of service at the rate of his basic pay, plus premium
pay at a rate equal to 25 percent of his basic pay." A 1993 court
decision held that federal workers who took leave on a Sunday for
which they were scheduled to work were entitled to premium pay even
though they did not work.  The five agencies GAO reviewed--the
Federal Aviation Administration (FAA); the U.S.  Customs Service; and
the Departments of Defense, Justice, and Veterans Affairs--paid $146
million in Sunday premium pay in fiscal year 1994.  At FAA, Congress
banned payment of Sunday premium pay to employees on leave, which
will yield an estimated $6 million in savings during fiscal year
1995.  Additional savings could be achieved at other agencies if
Sunday premium pay was limited to employees who worked as scheduled
on Sunday. 


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

Government Reform:  GAO's Comments on the National Performance
Review, by Charles A.  Bowsher, Comptroller General of the United
States, before the Subcommittee on Government Management,
Information, and Technology, House Committee on Government Reform and
Oversight.  GAO/T-GGD-95-154, May 2 (12 pages). 

The first phase of the National Performance Review began in March
1993 and focused on ways to make government "work better and cost
less." The second phase began in December 1994 and focuses primarily
on what government should do.  The Comptroller General's testimony
provides GAO's perspectives on each phase of the National Performance
Review, relying on previous GAO reports on GAO's limited assessment
of the National Performance Review proposals, arising from phase two,
that have been recently announced. 

One-Dollar Coin:  Reintroduction Could Save Millions If It Replaced
the One-Dollar Note, by L.  Nye Stevens, Director of Planning and
Reporting in the General Government Division, before the Subcommittee
on Domestic and International Monetary Policy, House Committee on
Banking and Financial Services.  GAO/T-GGD-95-146, May 3 (eight
pages). 

Australia, Canada, Japan, and the major Western European economies
all now use a coin for monetary transactions at, and in many cases
well above, the same level for which Americans use the paper dollar. 
Although the United States introduced the Susan B.  Anthony
one-dollar coin in 1979, it was poorly accepted.  The dollar note
lasts about 1.4 years in circulation before requiring replacement,
while coins last about 30 years.  This report summarizes GAO's
earlier work on the proposed reintroduction of the one-dollar coin. 

Personnel Practices:  An Overview of Ramspeck Act Appointments, by
Nancy R.  Kingsbury, Director of Federal Human Resource Management
Issues, before the Subcommittee on Post Office and Civil Service,
Senate Committee on Governmental Affairs.  GAO/T-GGD-95-155, May 8
(16 pages). 

This testimony discusses GAO's May 1994 report (GAO/GGD-94-66) on the
use of Ramspeck authority during the recent presidential transition
period and recommendations GAO made for modifying the act.  GAO also
outlines its current efforts to track Ramspeck Act appointments both
before and after the recent congressional elections.  GAO notes that
the expertise that employees gain while working for Congress can be
transferred to executive branch agencies and help them to better
carry out their missions.  Similarly, White House employees are
eligible for noncompetitive appointments after two years of service
and can bring their expertise to executive branch agencies.  However,
GAO continues to believe that more oversight over Ramspeck Act
appointments is needed and that the act needs to be amended to
specify more clearly the circumstances under which its use is
inappropriate. 

Personnel Practices:  Selected Characteristics of Recent Ramspeck Act
Appointments, by Timothy P.  Bowling, Associate Director for Federal
Human Resource Management Issues, before the Subcommittee on Civil
Service, House Committee on Government Reform and Oversight. 
GAO/T-GGD-95-173, May 24 (14 pages). 

In this testimony on the use of the Ramspeck Act to noncompetitively
appoint congressional employees to career positions in the executive
branch, GAO focuses on the following:  (1) the number, locations,
positions, and other characteristics of Ramspeck Act appointments;
(2) long-term trends related to the use of the Ramspeck Act hiring
authority; and (3) differences between Ramspeck Act hiring authority,
competitive procedures, and other excepted hiring authorities in
terms of skills required for positions.  GAO also discusses the
extent to which former congressional staff have recently attained
federal jobs through other
hiring mechanisms. 

Managing for Results:  Steps for Strengthening Federal Management, by
Johnny C.  Finch, Assistant Comptroller General for General
Government Programs, before the Subcommittee on Government
Management, Information and Technology, House Committee on Government
Reform and Oversight.  GAO/T-GGD/AIMD-95-158, May 9 (23 pages). 

During the past decade, GAO has identified many opportunities for
improving management in the federal government.  The following four
basic management issues consistently emerged:  (1) developing
more-precise program and business goals and better measuring
performance against them, (2) improving operational effectiveness by
taking fuller advantage of reengineering opportunities and
investments in modern technology, (3) strengthening financial
management to instill accountability and control costs, and (4)
building the capacity of the federal workforce to more effectively
and efficiently implement and manage programs.  Congress, through the
Government Performance and Result Act, the Chief Financial Officers
Act, the Paperwork Reduction Act, and other initiatives, has
established a basic management framework focusing on the outcomes of
federal programs.  As agencies streamline their programs and
processes in order to do more with less, the key is to do so in a
focused and planned way that holds modern management systems
accountable for producing results. 

Government Reorganization:  Issues and Principles, by Charles A. 
Bowsher, Comptroller General of the United States, before the Senate
Committee on Governmental Affairs.  GAO/T-GGD/AIMD-95-166, May 17
(27 pages). 

Much attention today is being focused on improving the delivery of
services to the American people by identifying and eliminating
inefficiencies in the way the executive branch is organized.  This
challenge will be made even more complicated by ongoing government
downsizing and budgetary constraints.  Although budget reductions and
eliminating redundancy are driving the reorganization agenda for the
moment, hard choices remain to define both the role of government and
determine the right organizational structures for delivering services
to the public.  Recent GAO reports relating agency spending and
personnel levels to budget functions (GAO/AIMD-95-115FS and
GAO/AIMD-95-116FS) show just how complex the delivery of services has
become.  The Comptroller General's testimony identifies a number of
useful principles that Congress may want to keep in mind as it
reorganizes the federal government. 

Federal Downsizing:  Observations on Agencies' Implementation of the
Buyout Authority, by Timothy P.  Bowling, Associate Director for
Federal Human Resource Management Issues, before the Subcommittee on
Civil Service, House Committee on Government Reform and Oversight. 
GAO/T-GGD-95-164, May 17 (22 pages). 

How have federal agencies used the buyout authority provided under
the Federal Workforce Restructuring Act of 1994?  This testimony
provides information on the results of the buyouts, the management
strategy used to implement the buyout authority, the restructuring
plans developed by those agencies that offered buyouts while also
being authorized staff increases, the effects of the workforce
reductions on agencies, and restructuring initiatives at the State
Department.  GAO concludes that the buyout program has helped
agencies meet their workforce reduction goals while reducing the need
for costly and disruptive reductions in force.  Although agency
officials described both positive and negative effects of the
buyouts, their full impact will not be apparent for some time. 
Because further cuts in the federal workforce are expected, adequate
strategic and workforce planning will be essential if agencies with
fewer employees are to maintain--and even boost--their productivity
and performance levels. 

Overview of Federal Retirement Programs, by Johnny C.  Finch,
Assistant Comptroller General for General Government Programs, before
the Subcommittee on Post Office and Civil Services, Senate Committee
on Governmental Affairs.  GAO/T-GGD-95-172, May 22 (21 pages). 

This testimony describes how the federal retirement systems work, the
benefits they provide, and how they compare with private sector
programs.  GAO concentrates on the Civil Service Retirement System
and the Federal Employees Retirement System because they are the
largest retirement systems for federal civilian personnel.  GAO
describes the history of the two retirement systems and discusses
four issues that are often raised in connection with federal
retirement:  (1) retirement eligibility provisions, (2) benefit
formulas, (3) cost-of-living adjustments, and (4) system financing. 

Procurement Reform:  H.R.  1670, Federal Acquisition Reform Act of
1995, by Robert P.  Murphy, General Counsel, before the House
Committee on Government Reform and Oversight and the House Committee
on National Security.  GAO/T-OGC-95-22, May 25 (12 pages). 

This testimony provides GAO's views on H.R.  1670, the proposed
Federal Acquisition Reform Act of 1995.  This legislation is grounded
in a single theme:  the complexity of the government's procurement
systems has resulted in unacceptably high transaction costs and user
dissatisfaction.  Among the bill's provisions:  (1) to allow agencies
to obtain "maximum practicable" competition rather than full and open
competition, (2) to exempt all commercial items as defined in the
Federal Acquisition Streamlining Act of 1994 from certified data and
audit requirements of the Truth in Negotiations Act and from the
corresponding requirements of the cost accounting standards, and (3)
to consolidate two administrative forums--GAO's bid protest office
and the General Services Board of Contract Appeals, along with the 10
other boards of contracts appeals--into a single, all-inclusive
board. 


   HEALTH
-------------------------------------------------------- Appendix 0:12

Long-Term Care:
Current Issues and Future Directions

GAO/HEHS-95-109, Apr.  13 (33 pages). 

Today, an increasing number of Americans need long-term care. 
Unprecedented growth in the elderly population is projected for the
21st century, and the population age 85 and older--those most in need
of long-term care--is expected to outpace the rate of growth for the
entire elderly population.  In addition to the dramatic rise in the
elderly population, a large portion of the long-term care population
consists of younger people with disabilities.  The importance of
long-term care was underscored by the 1994 congressional debate over
health care reform and, more recently, by the "Contract with
America," which proposed assistance such as tax deductions for
long-term-care insurance and tax credits for family caregiving.  This
report (1) defines what is meant by "long-term care" and discusses
the conditions that give rise to long-term care need, how such need
is measured, and which groups--young and old--require long-term care;
(2) examines the long-term care costs that are borne by federal and
state governments as well as by families; (3) addresses strategies
that states and foreign countries are pursuing to contain public
long-term-care costs; and (4) discusses predictions by experts on the
future demand for long-term care. 

Indian Health Service:
Improvements Needed in Credentialing Temporary Physicians

GAO/HEHS-95-46, Apr.  21 (43 pages). 

Indian Health Service (IHS) facilities, which provide medical care to
more than one million American Indians and Alaskan Natives,
supplement their staffs with temporary physicians.  But weak policies
have led IHS to unknowingly hire doctors who have been disciplined
for such offenses as gross and repeated malpractice and
unprofessional conduct.  IHS does not explicitly require verifying
all active and inactive state medical licenses that a temporary
physician may have.  Further, most IHS facilities that have contracts
with companies that supply temporary physicians do not require the
companies to inform IHS of the status of all medical licenses a
physician may hold.  In addition, IHS facilities do not have a formal
system for sharing information on temporary physicians who have
worked within the IHS medical system.  This report also discusses
what happens when requested medical services are delayed. 

Prescription Drug Prices:
Official Index Overstates Producer Price Inflation

GAO/HEHS-95-90, Apr.  28 (27 pages). 

During the 1980s and 1990s, the prices of prescription drugs rose on
average at triple the rate of inflation, according to U.S. 
government statistics.  As Congress debated whether to curb drug
price increases, research questioning the accuracy of the price
statistics--especially the producer price index for prescription
drugs published by the Bureau of Labor Statistics--was in its early
stages.  Today, a body of research urges the reexamination of the
accuracy of the producer price index for prescription drugs.  This
report (1) reviews the accuracy of the producer price index for
prescription drugs as a measure of drug price inflation, (2)
describes whether the index could be changed to more accurately
measure changes in the cost of buying drugs, and (3) provides
guidance on appropriate uses and common misuses of price indexes. 

Medicaid Managed Care:
More Competition and Oversight Would Improve California's Expansion
Plan

GAO/HEHS-95-87, Apr.  28 (39 pages). 

The Medicaid program was established to make health care more
accessible to the poor.  In many communities, however, beneficiaries'
access to quality care is far from guaranteed.  Too few doctors and
other health care providers choose to participate in Medicaid because
of low payment rates and administrative burdens.  To address the
access problem, as well as rising costs and enrollment in its $15
billion Medi-Cal program (which serves about 5.4 million
beneficiaries), California intends to increase its reliance on
managed-care delivery systems.  This report (1) describes
California's current Medicaid managed-care program, (2) reviews the
state's oversight of managed-care contractors with a focus on
financial incentive arrangements and the provision of preventive care
for children, (3) describes the state's plans for expansion, and (4)
identifies key issues the state will face as it implements the
expanded program. 

Community Health Centers:
Challenges in Transitioning to Prepaid Managed Care

GAO/HEHS-95-138, May 4 (42 pages). 

As states move to prepaid managed care to control costs and improve
access for their Medicaid clients, the number of participating
community health centers continues to grow.  Medicaid prepaid managed
care is not incompatible with health centers' mission of delivering
health care to medically underserved populations.  However, health
centers face substantial risks and challenges as they move into these
arrangements.  Such challenges require new knowledge, skills, and
information systems.  Centers lacking expertise and systems face an
uncertain future, and those in a vulnerable financial position are at
even greater risk.  Today's debate over possible changes in federal
and state health programs heightens the concern over the financial
vulnerability of centers participating in prepaid managed care.  If
this funding source continues to grow as a percentage of total health
center revenues, centers must face building larger cash reserves
while not compromising services to vulnerable populations.  GAO
summarized this report in testimony before Congress; see: 

Community Health Centers:  Challenges in Transitioning to Prepaid
Managed Care, by Mark V.  Nadel, Associate Director for Health
Financing and Policy Issues, before the Senate Committee on Labor and
Human Resources.  GAO/T-HEHS-95-143, May 4 (eight pages). 


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

Vaccines for Children:  Barriers to Immunization, by Kwai-Cheung
Chan, Director for Program Evaluation in Physical System Areas,
before the Senate Committee on Finance.  GAO/T-PEMD-95-21, May 4
(nine pages). 

Available studies did not contain enough evidence for GAO to conclude
that vaccine cost--a major focus of the Vaccines for Children
Program--has been a significant barrier to immunization.  It appears
that efforts to overcome various other barriers may be equally or
more important in improving immunization levels.  GAO has discussed
its findings with officials at the Centers for Disease Control, and
they generally agree that there is not enough evidence to conclude
that vaccine cost is a major barrier to immunization. 

Medicare:  Reducing Fraud and Abuse Can Save Billions, by Sarah F. 
Jaggar, Director of Health Financing and Policy Issues, before the
Subcommittee on Oversight and Investigations and the Subcommittee on
Health and Environment, House Committee on Commerce. 
GAO/T-HEHS-95-157, May 16 (10 pages). 

Medicare is overwhelmed in its efforts to keep pace with, much less
stay ahead of, those bent on cheating the system.  Various factors
converge to create a particularly rich environment for profiteers. 
These include the following:  (1) weak fraud and abuse controls to
detect questionable billing practices, (2) few limits on those who
may bill--companies using post office box numbers have qualified to
bill the program for virtually unlimited amounts--and (3) overpayment
for services.  This testimony describes how providers exploit the
system, why they are able to do so, and what steps Medicare has taken
and what remains to be done to protect the program and the taxpayers
against fraudulent reimbursement schemes and abusive billing
practices. 

Medicare Managed Care:  Program Growth Highlights Need to Fix HMO
Payment Problems, by Jonathan Ratner, Associate Director for Health
Financing and Policy Issues, before the Subcommittee on Health, House
Committee on Ways and Means.  GAO/T-HEHS-95-174, May 24 (16 pages). 

Rapid growth in the number of Medicare beneficiaries enrolled in
health maintenance organizations (HMO) increases the urgency of
correcting rate-setting flaws that undermine the cost-saving
potential of managed care for Medicare.  Medicare has paid HMOs much
more than it would have paid traditionally more expensive
fee-for-service providers.  Two lessons can be learned from GAO's
review of ways to fix Medicare's HMO capitation payments.  First, a
multipronged approach to rate setting makes sense.  The large
disparities in market conditions between states--from California to
Maine--call for solutions keyed to market conditions.  Second, with
respect to achieving the promise of such initiatives, details matter. 
How these strategies are designed and implemented could mean the
difference between success and failure.  GAO believes that in the
short term, the Health Care Financing Administration (HCFA) can
overcome its capitation rate problem by introducing a better health
status risk adjuster.  HCFA should also promptly test competitive
bidding and other promising approaches to setting HMO rates that
reduce Medicare costs. 


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


      TESTIMONY
------------------------------------------------------ Appendix 0:13.1

Disability Insurance:  Broader Management Focus Needed to Better
Control Caseload, by Jane L.  Ross, Director of Income Security
Issues, before the Subcommittee on Social Security, House Committee
on Ways and Means.  GAO/T-HEHS-95-164, May 23 (16 pages). 

Rising numbers of applicants for disability benefits have increased
workloads at the Social Security Administration (SSA) and lead to
growing backlogs of claims.  As a result, applicants are waiting
longer to find out if they have been awarded benefits.  Applicants
wait almost 90 days to learn whether they have been awarded benefits,
while persons who appeal their claims to SSA's administrative law
judges wait more than a year.  These long waits can impose
substantial hardship on applicants, particularly those with limited
incomes and no medical insurance.  SSA has undertaken several
short-term initiatives to address the backlog problem.  It has also
begun a long-term effort to redesign its disability determination
process.  GAO shares congressional concerns that these changes may
sacrifice decisional accuracy for faster processing.  SSA is also
addressing its workload increases while dealing with substantial
resource constraints.  Nonetheless, SSA needs to focus more attention
on terminating benefits for those who are no longer eligible and
encouraging beneficiaries to return to work.  SSA, now an independent
agency, also needs to provide more data and advice to Congress on
matters affecting disability insurance policy. 


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

Medicare Claims:
Commercial Technology Could Save Billions Lost to Billing Abuse

GAO/AIMD-95-135, May 5 (37 pages). 

With an investment of only $20 million in off-the-shelf commercial
software, Medicare could save nearly $4 billion over five years by
detecting fraudulent claims by physicians--primarily manipulation of
billing codes.  On the basis of a test in which four commercial firms
reprocessed samples of more than 20,000 paid Medicare claims, GAO
estimates that the software could have saved $603 million in 1993 and
$640 million in 1994.  In addition, GAO estimates that because
beneficiaries are responsible for about 22 percent of the payment
amounts--mainly in the form of deductibles and copayments--Medicare
could have saved an additional $134 million in 1993 and $142 million
in 1994.  The test results indicate that only a small proportion of
providers are responsible for most of the abuses:  less than 10
percent of providers in the sample had miscoded claims.  GAO
summarized this report in testimony before Congress; see: 

Medicare Claims Billing Abuse:  Commercial Software Could Save
Hundreds of Millions Annually, by Frank W.  Reilly, Director of
Information Resources Management in the Health, Education, and Human
Services Area, before the Subcommittee on Labor, Health and Human
Services, Education, and Related Agencies, Senate Committee on
Appropriations.  GAO/T-AIMD-95-133, May 5 (eight pages). 

USDA Telecommunications:
Missed Opportunities to Save Millions

GAO/AIMD-95-97, Apr.  24 (25 pages). 

To its credit, the Agriculture Department (USDA) has identified
opportunities to significantly reduce telecommunications costs by
consolidating and optimizing its FTS 2000 telecommunications
services.  However, USDA has not pursued all those options and, as a
result, is wasting millions of dollars each year.  USDA has hundreds
of field offices where multiple USDA agencies, located in the same
building or geographic site, obtain and use separate, and often
redundant, telecommunications services.  USDA officials estimate that
the agency could, during the next four years, save up to $800,000
each month--as much as 26 percent of the agency's total annual FTS
2000 telecommunications costs--or a total of $40 million.  USDA's
Office of Information Resources Management, which manages the
agency's telecommunications resources, has not effectively carried
out its responsibility to reduce telecommunications costs. 

Weather Forecasting:
Radar Availability Requirement Not Being Met

GAO/AIMD-95-132, May 31 (48 pages). 

Doppler radar systems are enabling weather forecasters to better see
the makeup and the movement of weather and to quickly warn the public
about severe storms, such as tornadoes.  The National Weather Service
is collaborating with the Federal Aviation Administration and the Air
Force in acquiring Doppler radar technology.  This $1.4 billion radar
project, known as the Next Generation Weather Radar (NEXRAD), will
establish a constellation of radars to increase the accuracy, the
timeliness, and the credibility of hazardous weather warnings.  This
report discusses (1) the NEXRAD units that were dropped from the
original deployment plan and the reasons why they were dropped, (2)
the feasibility and the estimated cost of extending the NEXRAD
contract to buy additional radars, (3) the Air Force NEXRAD's
contribution to the national NEXRAD network and the accessibility of
the Air Force NEXRAD data to civilian forecasters, and (4) the
availability of the Air Force and National Weather Service NEXRADs. 


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

Peace Operations:
Update on the Situation in the Former Yugoslavia

GAO/NSIAD-95-148BR, May 8 (44 pages). 

This briefing report provdes an update on the situation in the former
Yugoslavia.  GAO assesses (1) progress in resolving the conflict in
Croatia and Bosnia-Herzegovina and (2) the effectiveness of the
United Nations in carrying out Security Council mandates in these
countries. 

State Department:
Additional Actions Needed to Improve Overseas Real Property
Management

GAO/NSIAD-95-128, May 15 (16 pages). 

In February 1995, GAO removed overseas real property management from
its list of federal programs most vulnerable to waste, fraud, abuse,
and mismanagement.  GAO based that decision on several factors,
including steps taken by the State Department to strengthen real
property programs.  However, State's management of overseas property
still needs to be monitored closely.  This report (1) discusses the
progress made and some of the problems still facing State in real
property management and (2) contains recommendations on ways to
strengthen management
by State. 


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

Export Promotion:  Rationales for and Against Government Programs and
Expenditures, by Allan I.  Mendelowitz, Director of International
Trade, Finance, and Competitiveness Issues, before the Subcommittee
on Procurement, Exports, and Business Opportunities, House Committee
on Small Business.  GAO/T-GGD-95-169, May 23 (20 pages). 

The U.S.  government currently has several trade promotion programs
that provide business counseling, training, market research
information, export subsidies, and export finance assistance and
sponsor trade missions and fairs.  In today's tight budget
environment, Congress is carefully reviewing all government programs
and expenditures.  Export promotion programs are receiving close
scrutiny because they involve, at a minimum, government intervention
in markets and, in the most expansive form, provide subsidies to the
private sector.  This testimony addresses the following issues:  What
are the justifications for such programs?  Can money be saved and the
programs made more cost effective?  Are such programs, irrespective
of whether they are cost effective and are grounded in an
analytically defensible rationale, worthy of the expenditure of
taxpayer dollars, given the extent of proposed cuts in a whole range
of government programs? 


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

Federal Fugitive Apprehension:
Agencies Taking Action to Improve Coordination and Cooperation

GAO/GGD-95-75, May 2 (41 pages). 

The percentage of fugitive cases involving interagency coordination
problems, such as interagency duplication, jurisdictional disputes,
and noncooperation, does not appear to be large.  Nevertheless,
agency coordination problems have harmed efforts to apprehend federal
fugitives.  These problems involved mainly the FBI's and the U.S. 
Marshals Service's (1) failure to participate on each other's
fugitive task forces; (2) disagreements over responsibility for
prison escapes involving possible conspiracy charges; and (3)
failure, at times, to cooperate when involved with the apprehension
of other countries' fugitives.  Officials from the FBI and the U.S. 
Marshals Service believe that these problems will be resolved as a
result of (1) specific efforts by the two agencies, (2) the planning
and the coordination that will be done under the Justice Department's
Anti-Violent Crime Initiatives, (3) mandates from the Attorney
General and their agency heads that interagency squabbles and
noncooperation will not be tolerated, and (4) the establishment of
the Office of Investigative Agency Policies.  In addition, the U.S. 
Marshals Service is taking steps to resolve problems involving
non-Justice agencies through direct negotiations, and, if
unsuccessful, plans to ask for help from the Office of Investigative
Agency Policies. 

Drug Courts:
Information on a New Approach to Address Drug-Related Crime

GAO/GGD-95-159BR, May 22 (69 pages). 

This briefing report examines a new approach used by state and local
governments to address drug-related crime--drug courts, which monitor
the treatment and the behavior of drug-using defendants.  GAO
gathered information on drug courts in existence before the awarding
of grants under the 1994 Crime Act, assessed evaluations of these
courts, and reviewed the Justice Department's responsibilities and
plans for implementing the federal drug court grant program. 


   NATIONAL SECURITY
-------------------------------------------------------- Appendix 0:17

Export Controls:
Concerns Over Stealth-Related Exports

GAO/NSIAD-95-140, May 10 (26 pages). 

Lax export controls and unclear jurisdiction at federal agencies may
put sensitive stealth technology into the hands of foreign
governments, enabling them to build weapons capable of evading
detection by U.S.  radar systems.  Also, under current interagency
referral practices, the Defense Department does not review most
license applications for stealth technology processed by the Commerce
Department.  This report (1) determines how control over stealth
technology is split between the State Department's U.S.  Munitions
List and the Commerce Department's Control List, (2) identifies the
impact of shared jurisdiction over stealth-related items, and (3)
assesses whether current referral procedures enable the Defense
Department to review all stealth-related exports.  GAO summarized
this report in testimony before Congress; see: 

Export Controls:  Issues Concerning Sensitive Stealth-Related Items
and Technologies, by David E.  Cooper, Director of Acquisition
Policy, Technology, and Competitiveness Issues, before the Senate
Committee on Armed Services.  GAO/T-NSIAD-95-158, May 11 (13 pages). 

Export Controls:
Some Controls Over Missile Related Technology Exports to
China Are Weak

GAO/NSIAD-95-82, Apr.  17 (29 pages). 

Because of inadequate export controls over shipments of U.S.  missile
technology to China--ostensibly for use in satellite projects--and
weaknesses in monitoring such shipments after export to China, the
United States has no guarantee that such sensitive equipment will not
be used for military purposes.  This report discusses (1) the nature
and the extent of U.S.  dual-use and missile technology exports to
the Peoples Republic of China and the extent to which the items are
exported to sensitive end users, (2) the ability of the United States
to monitor Chinese compliance with conditions attached to U.S. 
missile technology exports and with the terms of U.S.-China
understanding on Missile Technology Control Regime, (3) the terms of
the U.S.-China understanding on the Regime and the degree to which
the understanding requires China to adhere to the full range of
commitments, and (4) the effectiveness of U.S.  sanctions imposed on
China. 

Best Practices Methodology:
A New Approach for Improving Government Operations

GAO/NSIAD-95-154, May 1995 (25 pages). 

Private sector organizations recognize that in order to survive, they
have to undertake major changes to make themselves more productive
and to reduce costs.  Today, many federal agencies face that same
reality.  The Defense Department (DOD) is a prime example of an
agency facing the challenge of streamlining for efficiency and lower
costs while maintaining quality.  DOD has accomplished that goal in
several areas.  For example, the Defense Logistics Agency (DLA) has
since 1992 had private sector vendors supply personnel items directly
to military facilities in lieu of the traditional military supply
system.  As a result, DLA expects a 53-percent reduction in its 1992
inventory level of these items by 1997.  What is behind these
improvements?  In large measure, these organizations have benefitted
from GAO studies highlighting "best practices"--processes, practices,
and systems--that organizations have adopted in a particular area,
such as inventory management.  These best practices provide a model
for other organizations with similar missions.  Frequently,
benchmarking is used to gather information on these practices from
several organizations, which is then applied to improving operations. 
The best practices approach need not be confined to defense issues,
however.  This report explains how others could go about using the
same principles and techniques to promote and implement improved
processes. 

Peace Operations:
DOD's Incremental Costs and Funding for Fiscal Year 1994

GAO/NSIAD-95-119BR, Apr.  18 (32 pages). 

The Defense Department (DOD) participated in peace operations in
several locales, including Somalia, Bosnia, Haiti, and Southwest
Asia, during fiscal year 1994.  To help cover the incremental costs
of these operations, Congress provided DOD with two supplemental
appropriations.  DOD also received reimbursements from the United
Nations for incremental costs incurred in Somalia.  This report
provides information on (1) whether the supplemental appropriations
fully covered DOD's incremental costs, (2) what the impacts on the
services were from funding shortages and overages, and (3) how DOD
spent the reimbursements received from the United Nations. 

Peace Operations:
Estimated Fiscal Year 1995 Costs to the United States

GAO/NSIAD-95-138BR, May 3 (31 pages). 

Several U.S.  agencies have participated in peace operations during
fiscal year 1995, such as those in Haiti, Bosnia, and Southwest Asia. 
The Defense (DOD) and State Departments are the two lead agencies
involved in U.S.  peace operations.  The U.S.  Agency for
International Development is the lead agency that provides
humanitarian assistance and coordinates U.S.  donations of food with
the Agriculture Department.  This briefing report provides
information on (1) agencies' potential fiscal year 1995 costs of
peace operations, (2) the potential U.S.  share of United Nation
assessments for peace operations, and (3) the manner in which the
annual defense budget enables DOD to participate in peace operations. 

Defense Downsizing:
Selected Contractors Business Unit Reactions

GAO/NSIAD-95-114, May 3 (17 pages). 

This report examines how the recent decline in defense spending has
affected individual business units of major defense contractors.  GAO
selected business units from six of the top 10 defense contractors in
1993--General Dynamics, General Motors, Lockheed, Martin Marietta,
McDonnell Douglas, and United Technologies.  These units were engaged
primarily in defense work, an important part of their corporations'
total government sales.  GAO compares defense expenditures over
several years and changes in the business units' (1) sales and
employment levels and (2) spending on independent research and
development, bid and proposal preparation, capital improvements, and
facilities. 

Overhead Costs:
Defense Industry Initiatives to Control Overhead Rates

GAO/NSIAD-95-115, May 3 (17 pages). 

Senior Pentagon officials have expressed concern that contractor
overhead rates may drive up procurement costs as a result of declines
in Defense Department spending.  Declining defense spending since the
late 1980s has reduced sales by defense contractors and has reduced
the business bases against which they charge overhead.  This report
reviews (1) initiatives taken by six individual business units of
large defense contractors--General Dynamics, General Motors,
Lockheed, Martin Marietta, McDonnell Douglas, and United
Technologies--to reduce overhead costs and (2) the issue of whether
the units' actions would avoid increases in overhead rates. 

DOD Household Goods:
Increased Carrier Liability for Loss and Damage Warranted

GAO/NSIAD-95-48, May 8 (119 pages). 

The Defense Department (DOD) spends more than $700 million each year
to move the household goods of military service members and DOD
civilian employees.  DOD shares liability with carriers for loss and
damage to these shipments.  During mid-1987, DOD increased carrier
liability for domestic household goods shipments, a change that the
carrier industry opposed.  In March 1993, DOD proposed that carrier
liability be similarly increased for international household goods
shipments, a change that carriers objected to as well.  This report
evaluates DOD household goods shipment programs to determine (1) the
impact of the 1987 increase in carrier liability on domestic
shipments and (2) the level and the type of carrier liability that
DOD should adopt for international shipments. 

Military Bases:
Letters and Requests Received on Proposed Closures
and Realignments

GAO/NSIAD-95-133S, May 9 (50 pages). 

This is a supplement to GAO's 1995 report on military base closures
and realignments (GAO/NSIAD-95-133).  Many interested parties,
including Members of Congress, sent GAO correspondence on base
closures.  In some instances, the letters and the material provided
useful leads.  In other cases, the material added support to issues
that GAO was actively pursuing.  GAO could not follow up on many of
the points raised because of the limited time available to GAO. 
However, GAO believes that the letters and the materials may be
helpful to the Base Closure and Realignment Commission in making
future decisions.  Consequently, GAO is providing all the letters and
the materials to the Commission.  This supplement contains copies of
the letters and some of the materials. 

Operation Desert Storm:
Health Concerns of Selected Indiana Persian Gulf War Veterans

GAO/HEHS-95-102, May 16 (43 pages). 

Many Persian Gulf War veterans have raised concerns that their
service in the Middle East may have resulted in chronic health
problems.  The severity of the problems varies; some veterans report
relatively mild symptoms, while others report debilitating illness. 
The cause of these problems is unknown, but many factors have been
suggested, ranging from toxic substances to parasites to medications
administered to combat possible exposure to nerve agents.  This
report provides information on the current military and health status
of 125 Gulf War veterans from the 123rd Army Reserve Command,
headquartered in Indianapolis.  These veterans were among the first
to raise these health concerns.  GAO also presents the veterans'
opinions on the health care they have received. 

Comanche Helicopter:
Testing Needs to Be Completed Prior to Production Decisions

GAO/NSIAD-95-112, May 18 (29 pages). 

Under the restructured program to produce the Comanche helicopter,
production decisions will be made before operational testing of the
Comanche starts, thereby continuing the risky practice of concurrent
development and production.  Because of the Comanche's high costs and
technical risks, GAO believes that the Army should complete
operational testing before making decisions on long-lead and low-rate
initial production.  The Comanche will be a much more expensive
helicopter than the one originally justified to Congress.  The
Comanche's acquisition unit cost has almost tripled in 10 years--from
$12.1 million in 1985 to $34.4 million in 1995.  Cost and program
schedule will again be affected because of the program restructuring. 
After a decade of developing the Comanche, the Army continues to
experience technical difficulties, including software problems, and
key aircraft maintainability requirements for the Comanche may not be
achievable--calling into question the Comanche's ability to meet its
wartime availability requirements and its objective of lower
operating and support cost.  On the positive side, the program is
meeting its goals of reducing maintenance levels and keeping within
acceptable limits of overall weight growth for the Comanche. 

Military Exports:
A Comparison of Government Support in the United States and Three
Major Competitors

GAO/NSIAD-95-86, May 18 (32 pages). 

Declining U.S.  defense spending has placed defense-related jobs and
some domestic industrial capabilities at risk.  U.S.  defense
companies are using various strategies to adjust to the decline.  One
strategy is to boost defense export sales.  Export proponents point
out that such sales maintain industrial base capabilities and lower
the cost of weapons to the U.S.  government.  They also argue that
more government support for exports is needed to level the playing
field against foreign competitors.  Opponents of such support argue
that it could delay restructuring of the defense industry and
increase global weapons proliferation.  This report reviews (1)
conditions in the international defense export market and (2) the
tools used by France, Germany, the United Kingdom, and the United
States to enhance the competitiveness of their defense exports.  GAO
compares the U.S.  position in the global defense market with those
of its major competitors and analyzes the factors that can contribute
to a sale. 

Naval Surface Fire Support:
Navy's Near-Term Plan Is Not Based on Sufficient Analysis

GAO/NSIAD-95-160, May 19 (16 pages). 

The Navy's decision to upgrade existing 5-inch, 54-caliber guns and
develop 5-inch precision-guided munitions, at an estimated cost of
$246 million, was made without enough analysis.  As a result, the
Navy is unable to show that this decision will meet naval surface
fire support requirements or provide the most cost-effective
solution.  On the basis of its cost and operational analysis, the
Navy initially proposed a $360 million research and development
program to (1) develop 155-millimeter, 60-caliber guns; (2) develop
155-millimeter precision-guided munitions with the Army; and (3)
research advanced propellants.  The Navy also proposed providing
limited upgrades to existing 5-inch guns until 155-millimeter,
60-caliber guns became operational.  However, the Navy later
determined that this plan was unaffordable and decided to limit the
program to upgrading existing 5-inch guns and developing 5-inch
precision-guided munitions. 


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

Navy Shipbuilding Programs:  Nuclear Attack Submarine Issues, by
Richard Davis, Director of National Security Analysis Issues, before
the Subcommittee on Seapower, Senate Committee on Armed Services. 
GAO/T-NSIAD-95-162, May 16 (10 pages). 

This testimony on production of the Navy's nuclear attack submarines
makes three main points.  First, alternatives to the Navy's approach
to maintain the required SSN force structure could save billions of
dollars and meet the Navy's force structure and threat requirements. 
Second, there is agreement within the intelligence community that
Russia's frontline submarines are for the first time as quiet as or
quieter than the SSN-688I and that Russia plans to continue reducing
radiated noise levels on its submarines.  Third, although the Navy
argues that maintaining two nuclear shipbuilders preserves
competition and hedges against future uncertainties, GAO concludes
that consolidating production at a single shipyard would cut costs
dramatically. 

Technology Reinvestment Project:  Recent Changes Place More Emphasis
on Military Needs, by David E.  Cooper, Director of Acquisition
Policy, Technology, and Competitiveness Issues, before the
Subcommittee on Acquisition and Technology, Senate Committee on Armed
Services.  GAO/T-NSIAD-95-167, May 17 (15 pages). 

This testimony focuses on the Technology Reinvestment Project, an
important Part of the Pentagon's dual-use technology strategy, which
seeks to maintain technologically superior U.S.  military forces at
an affordable cost.  Given declining defense budgets and rapid
advances in commercial technology, the Defense Department believes
that it must take advantage of cost-conscious, market-driven,
commercial production and leverage the huge investments in
leading-edge technologies made by private industry.  DOD's dual-use
strategy marks a significant change in the military's procurement
philosophy--to move away from reliance on specialized suppliers
serving only the defense market and rely as much as possible on other
commercial suppliers.  This testimony examines the difference between
the Technology Reinvestment Project and other dual-use programs, the
military relevance of selected projects, and changes in the
Technology Reinvestment Project to place more emphasis on military
needs. 


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

Water Quality:
Information on Salinity Control Projects in the Colorado
River Basin

GAO/RCED-95-58, Mar.  29 (25 pages). 

Through fiscal year 1994, the Interior and Agriculture Departments
(USDA) spent $362 million on salinity control projects in six states. 
Interior's Bureau of Reclamation and USDA estimate that they will
spend about $428 million more for additional projects, while
Interior's Bureau of Land Management expects to spend $800,000 in
fiscal year 1995.  In selecting salinity control methods, the
agencies consider several factors, key among them the methods'
effectiveness and cost.  According to Interior's measurements of the
salinity control program's effectiveness, salinity levels in the
Colorado River since 1974 have been below limits set by the Clean
Water Act.  With completion of the projects under construction or
planned, salinity levels should stay within the established limits
beyond 2010.  GAO summarized this report in testimony before
Congress; see: 

Water Quality:  Information on Salinity Control Projects in the
Colorado River Basin, by James Duffus III, Director of Natural
Resources Management Issues, before the Subcommittee on Water and
Power Resources, House Committee on Resources.  GAO/T-RCED-95-185,
May 11 (eight pages). 


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

Cassini Mission:
Estimated Launch Costs for NASA's Mission to Saturn

GAO/NSIAD-95-141BR, May 8 (31 pages). 

In April 1994, NASA estimated that it would cost about $475 million
for a Titan IV-Centaur launch of its Cassini spacecraft.  NASA plans
to launch its Cassini spacecraft to Saturn in October 1997. 
Following a voyage of more than six years, the spacecraft will orbit
Saturn for four years, observing the planet's atmosphere, rings, and
moons.  In response to congressional concerns about cost, this
briefing report provides information on the current estimated cost
for the Cassini launch and determines the extent of cost-saving
opportunities. 

NASA Budgets:
Gap Between Funding Requirements and Projected Budgets Has Been
Reopened

GAO/NSIAD-95-155BR, May 12 (33 pages). 

Recent events have reopened a gap between NASA's program plans and
its likely budgets.  NASA has not yet developed plans for closing
this $5.3 billion gap projected for fiscal years 1996-2000.  NASA
closed the gap that GAO reported in 1992 primarily by changing and
deleting some of its major programs.  As a result of these changes,
NASA increased the risks in several of its largest programs. 

National Science Foundation:
Need for Additional Icebreaking Research Vessel
Not Demonstrated

GAO/RCED-95-77, May 12 (28 pages). 

Although the Arctic Ocean is one of the least explored regions of the
world, this area is believed to play a key role in global climate
systems, world fishery production, and other phenomena.  The U.S. 
Coast Guard operates four icebreakers in support of the nation's
Arctic research program.  Although research needs in the Arctic have
evolved since 1990, the National Science Foundation (NSF) and the
scientific community have not shown an increase in icebreaker
requirements that would justify a proposed $120 million fifth
icebreaker.  The existing icebreaker fleet is underused, and no
research cruises in the Arctic are planned for 1995 or 1996,
primarily because of tight budgets.  Many Arctic scientists argue
that the proposed vessel is needed because the Coast Guard is
unwilling and unable to provide efficient and reliable support to
research activities in the Arctic.  These criticisms are not
convincing given recent improvements in the Coast Guard's commitment
and ability to support research in
the Arctic. 


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

Welfare Dependency:
Coordinated Community Efforts Can Better Serve Young At-Risk Teen
Girls

GAO/HEHS/RCED-95-108, May 10 (36 pages). 

Although poverty and the erosion of families and neighborhoods have
put many teenage girls at risk of pregnancy, school failure, and
substance abuse, programs aimed at helping them are often too little,
too late.  However, GAO found that some communities are organizing
coalitions with private and public agencies to integrate services and
reach more young women at risk.  This report (1) describes the health
and the well-being of young at-risk teen girls and their families and
the condition of the urban neighborhoods where they live; (2)
presents local service providers' views on what the needs of these
girls are; how they are addressing those needs; and what obstacles
service providers may face in working with the girls, their families,
and their communities; and (3) describes how the communities where
these girls live are responding to the service needs of this group. 

Welfare to Work:
Participants' Characteristics and Services Provided in JOBS

GAO/HEHS-95-93, May 2 (32 pages). 

GAO found that most adult welfare recipients do not participate in
the Job Opportunities and Basic Skills (JOBS) training program
because of allowable exemptions and minimum participation standards. 
JOBS still reached only about 13 percent of single-female-headed
households receiving welfare each month in 1992; about 60 percent
were exempt from participation.  Most of the 1.95 million exempt
adult welfare recipients were excused from participation because they
were caring for children under three years old.  The low level of
participation raises questions as to whether a program serving
relatively few participants can bring about a widespread
transformation of the welfare culture.  In addition to discussing who
is and is not being served under the JOBS training program, this
report discusses (1) the range of services that JOBS participants are
receiving and the extent to which participants' needs are being met
and (2) the implication of servicing participants in a system of
time-limited benefits. 

Welfare to Work:
Most AFDC Training Program Not Emphasizing Job Placement

GAO/HEHS-95-113, May 19 (96 pages)

In 1988, Congress strengthened the work requirements for welfare
recipients by creating the Job Opportunities and Basic Skills
Training (JOBS) program.  Although the JOBS program is designed to
move welfare recipients from dependence to work, GAO found that a
majority of JOBS programs lacked a strong employment focus.  However,
five welfare-to-work programs visited by GAO show promise because
they focus on the importance of employment and forge links with
employers.  This report (1) provides examples of county or local JOBS
or JOBS-like programs that emphasize job placement, subsidized
employment, or work-experience positions for welfare recipients; (2)
discusses the extent to which county JOBS programs nationwide use
these employment-focused activities; and (3) examines factors that
hinder program administrators' efforts to move welfare recipients
into jobs. 

Foster Care:
Health Needs of Many Young Children Are Unknown and Unmet

GAO/HEHS-95-114, May 26 (36 pages). 

Foster children are among the most vulnerable persons in the welfare
population.  As a group, they are sicker than homeless children and
children living in the poorest sections of inner cities.  Of
particular concern is the health of young foster children because
conditions left untreated during the first three years of life can
have an impact into adulthood and impede a child's ability to become
self-sufficient later in life.  Understanding the ability of state
child welfare agencies to meet the needs of foster children is
critical as policymakers consider restructuring federal welfare
policies and responsibilities.  Federal money is not used to help
states with the cost of foster care.  Legislation now being
considered by Congress would give states even greater responsibility
for foster children through block grants.  GAO examined foster care
programs in California, New York, and Pennsylvania.  GAO also
analyzed random samples of case files from Los Angeles, New York
City, and Philadelphia.  This report discusses (1) the health
services needed and received by young children in foster care, (2)
the relationship between the receipt of health services and foster
care placements with relatives versus placements with nonrelatives,
and (3) agencies efforts to ensure that these children are receiving
needed health services. 

Welfare Programs:
Opportunities to Consolidate and Increase Program Efficiencies

GAO/HEHS-95-139, May 31 (47 pages). 

The federal government provides billions of dollars in public
assistance each year through an inefficient welfare system that is
increasingly cumbersome for program administrators to manage and
difficult for eligible clients to access.  Program consolidation may
be one strategy to reduce the inefficiency of the current system of
overlapping and fragmented programs.  This report (1) describes
low-income families' participation in multiple welfare programs; (2)
examines program inefficiencies, such as program overlap and
fragmentation; and (3) identifies issues to consider in deciding
whether, and to what extent, to consolidate welfare issues. 
Regardless of how the welfare system is restructured, ensuring that
federal funds are used efficiently and that programs focus on
outcomes remains important.  Without a focus on outcomes, concerns
and the effectiveness of welfare programs will not be adequately
addressed. 


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

International Taxation:
Transfer Pricing and Information on Nonpayment of Tax

GAO/GGD-95-101, Apr.  13 (45 pages). 

This report provides recent data on transfer pricing issues and on
tax compliance by foreign- and U.S.-controlled corporations.  GAO
discusses (1) the Internal Revenue Service's (IRS) recent experience
in dealing with transfer pricing issues through its examinations,
appeals, and litigation functions and (2) IRS' use of available
regulatory and procedural tools.  GAO also used 1990 and 1991 tax
data to update its analysis of how many U.S.-controlled corporations
and foreign-controlled corporations did not pay U.S.  income taxes. 

Tax Administration:
Administrative Improvements Possible in IRS' Installment Agreement
Program

GAO/GGD-95-137, May 2 (26 pages). 

This report evaluates the Internal Revenue Service's (IRS) use of
installment agreements as a means for individual taxpayers to pay
their tax debts.  IRS changed the rules for installment agreements in
April 1992 to streamline the process for taxpayers to request
installment agreements and for IRS to approve them.  GAO discusses
(1) the increase in installment agreements following the April 1992
changes, (2) the effect that these changes had on IRS' collection
activity, (3) concerns raised by IRS' internal auditors regarding
these changes, and (4) information that IRS provides taxpayers on
their liability under installment agreements.  GAO also notes
administrative practices that may provide opportunities to improve
the installment agreement program and provide descriptive information
on taxpayers who elect to pay past-due taxes through installment
agreement procedures. 


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

Tax Policy:  Additional Information on the Research Tax Credit, by
Natwar M.  Gandhi, Associate Director for Tax Policy and
Administration Issues, before the Subcommittee on Oversight, House
Committee on Ways and Means.  GAO/T-GGD-95-161, May 10 (42 pages). 

Given the lack of empirical information for evaluating the research
tax credit's net benefit to society, GAO has not taken a position as
to whether the credit should be made a permanent part of the tax code
or allowed to expire.  GAO has, however, concluded that if Congress
decides to extend the credit in its current form, it may also want to
ensure that the credit provides an attractive incentive to most
recipients at an acceptable revenue cost.  One way this could be done
is to require that the base be reviewed and adjusted as needed. 


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

International Aviation:
Airline Alliances Produce Benefits, but Effect on Competition
Is Uncertain

GAO/RCED-95-99, Apr.  6 (68 pages). 

For U.S.  airlines, growth in the international sector in recent
years has far outpaced domestic growth.  Between 1987 and 1993, the
number of passengers traveling on U.S.  airlines between the United
States and foreign destinations increased by 47 percent, while
domestic traffic increased by only six percent.  The airlines'
ability to respond to this demand is limited, however, by
intergovernmental restrictions and cost constraints.  As a result,
the airlines have increasingly entered into alliances with foreign
airlines, rather than starting new service to additional foreign
cities.  Likewise, foreign carriers have entered into alliances with
U.S.  airlines to increase their access to the U.S.  market.  This
report (1) examines the effects of marketing alliances between U.S. 
and foreign airlines on airlines' traffic flows and revenues and on
consumers and (2) identifies key issues concerning such alliances
that need to be addressed by the
Transportation Department. 

Highway Safety:
Reliability and Validity of DOT Crash Tests

GAO/PEMD-95-5, May 5 (76 pages). 

Between 1980 and 1992, the annual death toll on America's highways
dropped from more than 50,000 to less than 40,000.  Over time, the
mean risk of frontal crashes, as measured by the National Highway
Traffic Safety Administration (NHTSA), declined, mirroring the trend
in annual highway fatalities.  Although GAO cannot state with
certainty that NHTSA crash tests are a causal factor in improved
crashworthiness, GAO believes that efforts by automobile
manufacturers to produce vehicles that score well on these tests have
improved the overall safety of vehicles.  At the very least, test
results suggest that the vehicle fleet, on the whole, has become
safer during the past 15 years.  These trends in the mean score of
crash tests, however, do not necessarily mean that individual
vehicles have well-defined safety levels, nor do they suggest that
the relative rankings of two vehicles would be the same if subsequent
trials were done.  They also do not suggest that differing test
results are reflected in the data derived from real-world traffic
collisions. 

Highway Safety:
Causes of Injury in Automobile Crashes

GAO/PEMD-95-4, May 9 (80 pages). 

Not surprisingly, the speed upon impact and crash types are the most
important factors in the risk of injury to drivers.  Driver age and
safety belt use are also important, although automobile weight and
driver gender have less influence.  Safety belts greatly reduce
injury risk, but their effectiveness is not the same in all crashes;
they are more effective in single-car crashes than in multivehicle
collisions.  Air bags reduce injury risk in frontal impacts, but air
bags alone are less effective than safety belts alone.  In equivalent
car crashes, women drivers and older drivers are more likely to be
harmed than men and younger drivers.  GAO found that safety belts are
less effective overall for women drivers than for
men drivers. 

Amtrak:
Information on Subsidies in Thruway Bus Operations

GAO/RCED-95-138, May 9 (15 pages). 

Since 1976, Amtrak has contracted with bus companies to provide
connector service to its network of intercity passenger trains.  This
feeder bus service--referred to as the Amtrak Thruway Bus--operates
on 44 routes in 23 states, carries about three-quarters of a million
passengers annually, and generates about 3.5 percent of the nearly $1
billion in revenues that Amtrak takes in each year from intercity
passenger services.  This report reviews whether and to what extent
Amtrak might be using its federal operating grant to subsidize its
Thruway Bus services.  GAO also compares the contributions of Thruway
Bus passengers to covering the costs of their train trip with those
of other Amtrak passengers. 

National Airspace System:
Comprehensive FAA Plan for Global Positioning System Is Needed

GAO/RCED-95-26, May 10 (24 pages). 

The Federal Aviation Administration (FAA) is enhancing the Defense
Department's Global Positioning System.  When fully integrated as a
navigation aid in the air traffic control system, this
satellite-based system will be superior to the ground-based
navigation aid now used, enabling civil aircraft to fly more
fuel-efficient routes.  Government and industry groups recommended
that FAA accelerate some of the milestones for introducing the
enhancements to enable civil aviation to fully use the system as soon
as possible.  FAA modified its schedule for using the global
Positioning System by accelerating several milestones from 2000 to
1997.  This report determines whether FAA will have enough time under
the new milestones to augment the Global Positioning System and
whether the agency has taken appropriate measures to better manage
its Global Positioning System efforts. 

Air Traffic Control:
Status of FAA's Modernization Program

GAO/RCED-95-175FS, May 26 (90 pages). 

This annual report provides information on the status of the Federal
Aviation Administration's efforts to modernize the air traffic
control system, which now include 158 projects funded through the
facilities and equipment appropriation account.  This information
includes changes in total modernization costs, number of completed
projects, and trends for unobligated funds.  GAO also provides
detailed information on cost and schedules estimated for 15 major
modernization projects that account for more than 40 percent of FAA's
1996 facilities and equipment budget request.  FAA is seeking $1.9
billion in its budget request, or nine percent below its 1995
appropriation. 


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

Denver International Airport, by Michael Gryszkowiec, Director of
Planning and Reporting in the Resources, Community, and Economic
Development Division, before the Subcommittee on Aviation, House
Committee on Transportation and Infrastructure.  GAO/T-RCED-95-184,
May 11 (20 pages). 

Since 1991, GAO has issued three reports on various aspects of the
financing, the construction, and the automated baggage-handling
system at Denver International Airport.  This testimony, which draws
on these reports and ongoing work, focuses on the airport's (1)
development, including that of the automated baggage system; (2)
cost; and
(3) airfield construction. 

Aviation Research:  Perspectives on FAA's Efforts to Develop New
Technology, by Gerald L.  Dillingham, Associate Director for
Transportation and Telecommunications Issues, before the Subcommittee
on Technology, House Committee on Science.  GAO/T-RCED-95-193, May 16
(13 pages). 

The Federal Aviation Administration's (FAA) research and development
activities pay an important role in producing new technology to
enhance the efficiency and the safety of the U.S.  air traffic
control system.  But the agency continues to face challenges in
developing new air traffic control and security technologies.  Its
overall program to develop new technology is in transition.  Although
GAO is encouraged by the reforms and the initiatives under way at
FAA, it remains to be seen if they will improve the agency's ability
to develop and ultimately deploy new technology. 

International Aviation:  Better Data on Code-Sharing Needed by DOT
for Monitoring and Decisionmaking, by Kenneth M.  Mead, Director of
Transportation Issues, before the Subcommittee on Aviation, Senate
Committee on Commerce, Science, and Transportation. 
GAO/T-RCED-95-170, May 24 (16 pages). 

The Transportation Department's (DOT) recent successes have created
momentum and renewed hope that U.S.  airlines will have better access
to key foreign markets in the future.  However, the challenges facing
DOT are stiff as foreign governments are often unwilling to permit
greater competition between their national airlines and lower-cost
U.S.  airlines, although U.S.  airlines often disagree as to what
DOT's strategy should be.  The international environment has also
become increasingly dynamic, with airlines forming a growing number
of alliances to create global and regional route networks.  Given the
success of such alliances, it is likely that code-sharing will
continue to play a large role in bilateral negotiations and any
increased rights of direct access or relaxation of foreign investment
limits will be linked to the value that governments and airlines
place on code-sharing.  Unless it solves its data problems, DOT will
be limited in its ability to effectively negotiate increased U.S. 
access to foreign markets and keep abreast of the increasingly global
industry, monitor code-sharing's impact on competition and fares, and
equitably accommodate competing U.S.  airlines. 


   VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:23


      TESTIMONY
------------------------------------------------------ Appendix 0:23.1

VA Health Care:  Challenges and Options for the Future, by David P. 
Baine, Director of Federal Health Care Delivery Issues, before the
Subcommittee on Human Resources and Intergovernmental Relations,
House Committee on Government Reform and Oversight. 
GAO/T-HEHS-95-147, May 9 (29 pages). 

The Department of Veterans Affairs (VA) lags far behind the private
sector in improving the efficiency of its hospitals.  During the past
decade, GAO has highlighted a series of management problems limiting
VA's ability to (1) improve the efficiency and the effectiveness of
its hospitals and (2) shift more of its inpatient care to less costly
ambulatory settings.  Although VA plans a major reorganization and
other initiatives to improve its management capabilities, GAO remains
concerned that some of the actions may not go far enough.  Even if it
improves the efficiency of its hospitals, VA is at a crossroads in
the evolution of its health care system.  The average daily work load
in its hospitals dropped about 56 percent during the past 25 years,
and further decreases are likely.  At the same time, however, demand
for outpatient care, nursing home care, and some specialized services
is expanding, taxing VA's ability to meet veterans' needs.  GAO
concludes that a complete reevaluation of the VA health care system
is needed.  Absent such an effort, use of VA hospitals will likely
continue to decline to a point at which VA's ability to provide
quality care and support its secondary missions will be jeopardized. 


   SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:24

GAO Reports:
Housing and Community Development Products, 1992-94

GAO/RCED-95-61W, May 1995 (98 pages). 

GAO's Housing and Community Development Issue Area studies programs
that seek to deliver affordable housing and maintain vital
communities for all Americans.  This index provides information on
GAO products issued between 1992 and 1994 on housing and community
development programs.  The index also includes studies done by other
GAO issue areas on related topics.  The index is divided into broad
subject areas that should be helpful in locating material.  Order
forms are included. 

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

GAO/HEHS-95-145W, May 1995 (67 pages). 

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