Reports and Testimony: June 1995 (Other Written Prod., 06/95,
GAO/OPA-95-9).

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

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

 REPORTNUM:  OPA-95-9
     TITLE:  Reports and Testimony: June 1995
      DATE:  07/01/95
   SUBJECT:  Federal agency reorganization
             Financial management
             Management information systems
             Loan defaults
             Housing programs
             Employment or training programs
             International relations
             Health care services
             Student loans
             Space exploration
IDENTIFIER:  USDA Peanut Program
             Superfund Program
             District of Columbia
             Civil Service Retirement System
             Federal Employees Retirement System
             CDC Vaccines for Children Program
             Medicaid Program
             Medicare Program
             RTC Affordable Housing Program
             HHS Child Support Enforcement Program
             AFDC
             Aid to Families with Dependent Children Program
             Federal Family Education Loan Program Information System
             Soviet Union
             Ukraine
             DOD Cooperative Threat Reduction Program
             Columbia
             Persian Gulf War
             MK-48 Advanced Capability Torpedo
             NASA Earth Observing System
             Food Stamp Program
             Earned Income Tax Credit
             NASA Space Station Program
             DOL Job Corps Program
             HUD Section 8 Rental Assistance Program
             
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REPORTS AND TESTIMONY:
JUNE 1995

GAO/OPA-95-9


Highlights

Resolution Trust Corporation

The Resolution Trust Corporation is preparing to go out of business
at the end of 1995 after taking control of 747 failed thrift
institutions and disposing of $445 billion in assets.  Meanwhile,
GAO's audit of RTC shows the Corporation's financial statements to be
reliable in all material respects.  Pages 10 and 11. 

Space Station

GAO estimates that it will cost about $94 billion to build the space
station and that the program faces formidable challenges in meeting
all its goals on time and within budget.  Moreover, low financial
reserves through fiscal year 1997 could lead to cost overruns and
force postponement of some activities.  Page 34. 

District of Columbia

The District of Columbia lacks the most basic financial data,
including amounts owed, the status of funds, and the balance of cash. 
Meanwhile, information on personnel, payroll, and budget systems is
error-ridden and inconsistent:  the District school system, for
example, regularly overspends its personnel budget and cannot
accurately count the number of students.  Pages 15
and 16. 

GAO/OPA-92-9



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

  AFDC - x
  AOUSC - x
  DOD - x
  DOE - x
  EEOC - x
  EOSDIS - x
  EPA - x
  FAA - x
  FDIC - x
  FHA - x
  GPRA - x
  HUD - x
  INS - x
  IRS - x
  MARPOL V - x
  NASA - x
  NIST - x
  OMB - x
  OPM - x
  RTC - x
  USDA - x
  VA - x
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REPORTS AND TESTIMONY:  JUNE 1995
=========================================================== Appendix 0


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

Consolidated Farm Service Agency:
Update on the Farm Loan Portfolio

GAO/RCED-95-223FS, June 23 (106 pages). 

This fact sheet provides information on the Agriculture Department's
direct and guaranteed farm loan programs.  In particular, GAO
discusses (1) levels of outstanding debt on active loans and amounts
owed by delinquent borrowers as of March 31, 1995; (2) losses on farm
loans from fiscal year 1989 through March 31, 1995; and (3) new loans
to borrowers who are delinquent and to borrowers whose past defaults
resulted
in losses. 

Animal Agriculture:
Information on Waste Management and Water Quality Issues

GAO/RCED-95-200BR, June 28 (85 pages). 

Pollution from animal waste runoff can foul surface water and
groundwater by introducing excess nutrients, organic matter, and
pathogens.  This report focuses on the management of wastes produced
by breeding and feeding operations--generally farms, ranches, and
feedlots--for beef cattle, dairy cows, hogs, broilers, laying hens,
and turkeys.  GAO discusses (1) water quality concerns linked to
animal agriculture sources of nonpoint pollution--pollution not
traceable to a specific point of origin, (2) consolidation trends and
geographical shifts in animal agriculture, (3) animal agriculture
production covered by point source permits, (4) commonly used animal
waste management practices and their costs, and (5) Agriculture
Department cost-share assistance for animal waste management. 

Agriculture and the Environment:
Information on and Characteristics of Selected Watershed Projects

GAO/RCED-95-218, June 29 (64 pages). 

Recent federal, state, and local studies on water quality have cited
agriculture as the nation's greatest source of nonpoint
pollution--that is, pollution that cannot be traced to a specific
point of origin.  Agriculture contributes more than half the
pollutants entering the nation's rivers and lakes.  The threat to
water quality posed by nonpoint sources of pollution has renewed
interest in watershed-based approaches to reducing such pollution. 
This report (1) determines the number, the purposes, the locations,
and the funding of federal watershed projects that address pollution
caused by agricultural production and (2) provides information on the
lessons learned from innovative or successful watershed projects. 

Meat and Poultry Inspection:
Impact of USDA's Food Safety Proposal on State Agencies and
Small Plants

GAO/RCED-95-228, June 30 (13 pages). 

In 1993, hamburger contaminated with the E.  coli bacteria killed
four children and made hundreds of people ill.  As a result, the
Agriculture Department (USDA) proposed that each meat and poultry
slaughter and processing plant adopt a system of preventive control
for food safety, known as the Hazard Analysis and Critical Control
Points system, to be monitored by USDA's Food Safety and Inspection
Service.  Federal and state meat and poultry inspection agencies
would be required to take on some additional monitoring activities
under this proposal.  This report (1) describes state meat and
poultry inspection programs, (2) provides information on the expected
effects of USDA's proposal on state inspection programs, and (3)
discusses the proposal's likely effects on small plants. 


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

Peanut Program:  Impact on Peanut Producers, Users, and the
Government, by Robert A.  Robinson, Associate Director for Food and
Agriculture Issues, before the Subcommittee on Risk Management and
Specialty Crops, House Committee on Agriculture.  GAO/T-RCED-95-215,
June 8 (eight pages). 

The peanut program has generally stabilized the U.S.  peanut supply
while supporting producers' income.  However, peanut farming, like
other U.S.  agricultural operations, has undergone profound changes
since the 1930s, when the program was created, including the
globalization of agricultural markets, the decline in the number of
peanut producers receiving most of the program's benefits, and cost
increases to U.S.  peanut buyers.  GAO recommends that Congress
restructure the peanut program to make it more responsive to market
forces.  GAO suggests that Congress (1) reduce the annual quota
support price to more closely parallel the cost of producing peanuts
and the world market price and (2) amend the peanut legislation to
allow the quota support price to rise and fall each year to reflect
fluctuations in production costs. 


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

Impoundments:
Proposed Rescissions of Justice, Transportation, and NASA Funds

GAO/OGC-95-21, May 31 (two pages). 

On May 2, 1995, the President submitted to Congress his fifth special
impoundment message for fiscal year 1995, which reports three
proposed rescissions of budget authority affecting the Departments of
Justice and Transportation as well as NASA.  GAO reviewed the
proposed rescissions and found them to be in accordance with the
Impoundment Control Act. 


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

Budget Structure:  Providing an Investment Focus in the Federal
Budget, by Paul L.  Posner, Director of Budget Issues, before the
House Committee on Government Reform and Oversight. 
GAO/T-AIMD-95-178, June 29 (10 pages). 

The nation's economic future depends largely on today's budget and
investment decisions.  Trends in economic investment, however, have
not been encouraging.  The pool of national savings available to
finance investment has been shrinking since the 1970s, the level of
gross private domestic investment as a percent of gross domestic
product has fallen during the same period, and many of the nation's
trading partners have significantly higher levels of investment.  The
most important contributions that the federal government can make to
a healthy and growing economy are to reduce the federal deficit and
make wise decisions on investments that will foster long-term
economic growth.  GAO believes that the creation of an investment
component in the federal budget could help Congress and the President
make more informed decisions on federal spending on consumption
versus investments for the future.  Separate targets for investment
spending within the existing discretionary spending caps could be set
to ensure that the investment was considered formally in the budget
process.  Such a component could be established within the context of
a unified budget framework that leads to a balanced unified budget
over an appropriate period. 


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

Small Business:
Construction Firms' Access to Surety Bonds

GAO/RCED-95-173FS, June 26 (61 pages). 

Small Business:
Responses to Survey on Construction Firms' Access to
Surety Bonds

GAO/RCED-95-173S, June 26 (92 pages). 

Federal law requires contractors to provide surety bonds on all
federal construction contracts worth more than $25,000.  Surety bonds
guarantee that should a bonded contractor default, a construction
project will be completed and the contractor's employees and material
suppliers will be paid.  Most state and local governments and some
private sector lenders also require construction firms to be bonded. 
Some small construction firms argue that surety companies' decisions
to approve or deny bonds can seem arbitrary and can impede the growth
of small firms, especially those owned by women and minorities. 
Because limited data exist on this issue, GAO surveyed a random
sample of 12,000 construction firms, of which about 98 percent were
small enough to qualify for Small Business Administration programs. 
GAO focused on the (1) firms' overall rate of obtaining bonds; (2)
characteristics of the small firms that did bonded work; (3) recent
experiences of these firms in obtaining bonds; and (4)
characteristics of those firms that did not perform bonded work,
including their reasons for not doing such work.  The first volume
(GAO/RCED-95-173FS) discusses the survey results in detail.  The
second volume (GAO/RCED-95-173S) provides detailed statistics on the
experiences of small construction firms. 


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

Student Loan Defaults:
Department of Education Limitations in Sanctioning
Problem Schools

GAO/HEHS-95-99, June 19 (17 pages). 

Some schools, particularly proprietary for-profit trade schools whose
profits come from student tuition, have enrolled students whose
education is heavily financed by federally guaranteed student loans. 
Some of these schools are not overly concerned about their students'
completing educational programs or the frequency of their students'
defaulting on student loans.  In 1994, the federal government paid
$2.4 billion to make good its guarantee on these defaulted loans.  In
1991, the Education Department began to bar postsecondary schools
from federally guaranteed student loan programs if their students had
exceptionally high loan default rates.  Many schools, however,
complained that the Department was using inaccurate information in
setting default rates.  Several schools filed administrative appeals
or sued to block the Department's denial of their participation in
federal loan programs.  This report answers the following questions: 
How many schools have contested the Department's decisions, and what
are the main points of their contention?  To what extent have the
schools' concerns been addressed by recent legislation and by the
Department?  What additional steps need to be taken to resolve
problems with the default reduction initiative? 

Teacher Training:
Status and Participants' Views of Delta Teachers Academy

GAO/RCED-95-208, June 29 (21 pages). 

The Delta Teachers Academy was established in 1992 to help improve
the quality of elementary and secondary school teaching in the Lower
Mississippi Delta, one of the poorest, least developed regions in the
nation.  Agriculture Department (USDA) financial support for the
Academy has nearly doubled from $2 million in fiscal year 1994 to
nearly $4 million in fiscal year 1995.  The Academy expects to
increase the number of teacher training days by 130 percent, from
more than 5,000 training days for 371 teachers in fiscal year 1994 to
more than 12,000 training days for 665 teachers in fiscal year 1995. 
Teachers participating in the program have generally given it high
marks. 


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

Job Corps:
High Costs and Mixed Results Raise Questions About
Program's Effectiveness

GAO/HEHS-95-180, June 30 (49 pages). 

Job Corps is an employment and training program that seeks to provide
severely disadvantaged youth with a comprehensive array of services,
generally in a residential setting.  Run by the Labor Department, Job
Corps directly funds public, private, and nonprofit groups that
operate local centers.  Job Corps is the most expensive federal youth
employment and training program, with current appropriations of about
$1 billion.  Although the administration has proposed expanding the
program, concerns have been raised by Congress, Labor's Inspector
General, and others about the program's effectiveness and high cost. 
This report provides information on (1) whom the program is serving
and the services provided, (2) the outcomes the program is achieving
in relation to the program's cost and employers' satisfaction with
Job Corps students they hire, and (3) Labor's use of national
contractors to provide vocational training. 


   ENERGY
--------------------------------------------------------- Appendix 0:6

Radioactive Waste:
Status of Commercial Low-Level Waste Facilities

GAO/RCED-95-67, May 5 (72 pages). 

Thousands of businesses, medical facilities, and universities along
with more than 100 nuclear power plants generate waste material
contaminated with radioactivity.  These waste products, called
commercially generated low-level waste, have typically been buried in
shallow trenches at a few sites around the country.  States plan to
construct 11 new disposal facilities.  These planned facilities are
the result of state efforts to implement federal legislation making
them responsible for developing new disposal facilities.  This report
assesses states' progress in developing new disposal facilities,
their potential economic and environmental effects, and alternatives
to the current approach to developing new facilities. 

Nuclear Facility Cleanup:
Centralized Contracting of Laboratory Analysis Would Produce
Budgetary Savings

GAO/RCED-95-118, May 8 (19 pages). 

The Energy Department (DOE), responsible for cleaning up the massive
contamination arising from more than 50 years of production at
nuclear weapons facilities, estimates that this effort could cost as
much as $1 trillion and take more than 30 years to complete. 
Laboratory analyses--of soil and water, for example--needed to assess
contamination at these facilities are expected to cost at least $15
billion.  Under DOE's decentralized approach, contractors
independently obtain such analyses through either commercial
laboratories or contractor-run laboratories.  In contrast, the
Environmental Protection Agency (EPA), which oversees the cleanup of
Superfund sites, contracts for these analyses on a centralized basis. 
DOE pays substantially higher prices than EPA does for the same types
of analyses at commercial laboratories.  GAO concludes that DOE
dilutes its massive buying power by procuring its commonly used
analyses on a piecemeal basis through its contractors.  The results
of DOE's contracting approach are higher prices and unnecessary costs
arising from duplication of the contractors' efforts.  Without
centralizing its laboratory analysis procurements, DOE will not reap
the cost benefits resulting from its enormous buying power. 

Department of Energy:
Information on DOE's Human Tissue Analysis Work

GAO/RCED-95-109FS, May 24 (45 pages). 

In 59 radiation studies, most of them dating to the 1950s or 1960s,
the federal government examined the effects of radiation, such as
nuclear fallout, on more than 15,000 human subjects.  Often, these
studies involved corpses or body parts for which consent was not
given by family members.  A few of the studies are still ongoing. 
The largest study obtained nearly 9,000 human bone samples to
determine the accumulation of radioactive elements in humans as a
result of nuclear fallout.  For at least a few of the studies, there
is little verifiable evidence that the subjects participated with
knowledge of the experiments or their risk.  In one experiment,
persons with short life expectancies were injected with plutonium to
study its effects on the body.  In another study, stillborn babies
were cremated to determine the content, in their ashes, of strontium
that resulted from atmospheric nuclear weapons testing. 


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

Department of Energy:  Framework Is Needed to Reevaluate Its Role and
Missions, by Victor S.  Rezendes, Director of Energy and Science
Issues, before the Subcommittee on Energy and Power, House Committee
on Commerce.  GAO/T-RCED-95-232, June 21 (17 pages). 

Now is an ideal time to reevaluate the Energy Department (DOE) and
its missions.  The agency's missions and priorities have changed so
dramatically over time that DOE is now very different from what it
was in 1977, when it was created in response to the energy crisis. 
Energy research, conservation, and policy-making were early DOE
priorities.  Today, weapons production and environmental cleanup
dominate its budget, and new missions in science and industrial
competitiveness have emerged.  Criteria developed by a DOE advisory
panel and the National Academy of Public Administration are available
for systematically evaluating DOE's missions and for determining if
DOE should remain a Cabinet-level department.  Because transferring
missions and their related statutory requirements from DOE to other
agencies would have broad impacts, any proposal to dismantle DOE
should be considered as part of an overall governmentwide
restructuring effort. 


   ENVIRONMENTAL PROTECTION
--------------------------------------------------------- Appendix 0:7


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

Superfund:  EPA's Use of Risk Assessments in Cleanup Decisions, by
Lawrence J.  Dyckman, Associate Director for Environmental Protection
Issues, before the Subcommittee on Water Resources and Environment,
House Committee on Transportation and Infrastructure. 
GAO/T-RCED-95-231, June 22 (11 pages). 

As it deliberates reauthorizing the Superfund program, Congress is
considering risk assessments as a way to control federal expenditures
in this multibillion-dollar program.  One important aspect of this
debate is how the Environmental Protection Agency (EPA) conducts
human health risk assessments and uses them in making cleanup
decisions at Superfund sites.  This testimony discusses the extent to
which EPA uses human health risk assessments and federal and state
standards in determining (1) whether to clean up a Superfund site and
(2) how extensive the cleanup should be.  GAO also discusses both its
ongoing work on whether federal and state standards are based on
estimates of risk and its completed work on the extent to which
Superfund risk assessments follow
EPA guidelines. 

Superfund:  Status of Natural Resource Damage Claims, 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-95-239, June 30 (19 pages). 

Under the Superfund statute, the Environmental Protection Agency
(EPA) is authorized to clean up hazardous waste sites and to force
responsible parties to either pay for or perform the cleanup.  The
statute also authorizes federal, state, and tribal authorities to
seek monetary damages for harm done to natural resources, such as
wetlands or wildlife habitat, resulting from releases of hazardous
substances.  Concerns have been raised that such damages could add
billions to the final tab for Superfund cleanups while imposing heavy
burdens on industry and the federal government.  GAO presents
information on the number and the value of claims for natural
resource damages.  GAO focuses on claims filed and settled.  GAO also
presents the views of government officials on the likely extent of
future damage claims, including those faced by federal agencies, such
as the Departments of Defense and Energy. 


   FINANCIAL INSTITUTIONS
--------------------------------------------------------- Appendix 0:8

1993 Bank Resolutions:
FDIC Further Improved Its Resolution Process

GAO/GGD-95-118, June 9 (20 pages). 

This report examines whether the Federal Deposit Insurance
Corporation (FDIC) complied with the requirement that it calculate
and document its evaluation of the costs of alternatives for
resolving a troubled depository institution and that it choose the
least costly resolution alternative.  From its review of 10 of the 42
banks that failed and were resolved during 1993, GAO found that FDIC
had continued to improve its resolution process, particularly the
documentation of its marketing strategies and the bases for its
resolution decisions.  GAO also found that FDIC had generally
conformed to its resolution process and had consistently made
decisions based on its determination of the least costly resolution
alternative available. 


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

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 Senate Committee on Banking, Housing, and Urban Affairs. 
GAO/T-GGD-95-188, June 20 (17 pages). 

This testimony focuses on the Resolution Trust Corporation's (RTC)
performance and the remaining challenges involved in RTC's transition
to the Federal Deposit Insurance Corporation (FDIC).  GAO discusses
(1) its recent report (GAO/GGD-95-109, May 1995) to the head of RTC
on the management improvements that led to RTC's removal from GAO's
list of government programs at high risk for waste, fraud, abuse, and
mismanagement; (2) the status of planning efforts for RTC's
transition to FDIC; and (3) some unresolved transition issues that
RTC and FDIC will be facing within the next few months. 


   FINANCIAL MANAGEMENT
--------------------------------------------------------- Appendix 0:9

Financial Audit:
Resolution Trust Corporation's 1994 and 1993
Financial Statements

GAO/AIMD-95-157, June 22 (44 pages). 

This report presents the results of GAO's audit of the Resolution
Trust Corporation's (RTC) 1994 and 1993 financial statements.  GAO
also provides its opinion on management's assertions about the
effectiveness of its system of internal controls and evaluates RTC
compliance with laws and regulations.  In addition, GAO discusses (1)
an internal control weakness GAO identified and its recommendation
for correcting it; (2) issues affecting estimated recoveries from
failed thrifts, including uncertainties and operating controls; (3)
the estimated unused loss funds after RTC's completion of all
resolution activities; and (4) progress made in
reducing risk. 

Inspector General Act:
Activities of the Federal Entities

GAO/AIMD-95-152FS, June 1 (23 pages). 

The Inspector General Act of 1978 requires the Office of Management
and Budget (OMB), in consultation with GAO, to identify federal
entities, including government corporations and independent
regulatory agencies, without offices of inspectors general and to
publish a list of such entities annually in the Federal Register. 
The act also requires these entities to report annually to Congress
and to OMB on the audit and investigative activities of their
organizations.  This fact sheet provides information on (1) whether
federal entities identified by OMB in fiscal year 1994 reported their
audit and investigative activity as required by law; (2) what audit
and investigative activities these entities reported during the past
three years; (3) what the status of audit recommendations for seven
entities under the jurisdiction of the Senate Appropriations
Subcommittee on Labor, Health and Human Services, and Education is;
(4) how these seven entities process allegations of fraud and
mismanagement; and (5) how they obtain their administrative services. 


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

Government Aircraft:
Observations on Travel by Senior Officials

GAO/NSIAD-95-168BR, June 5 (68 pages). 

GAO reviewed Defense Department and civilian agency aircraft used to
fly senior military and civilian personnel from October 1992 through
March 1995.  This briefing report discusses (1) whether the DOD
inventory of operational support airlift aircraft was excessive to
wartime requirements to support the current military strategy; (2)
whether the rules and the regulations governing the use of these
aircraft had recently been changed; (3) to what extent senior-level
travel was affected by the changes; (4) whether senior DOD officials'
trips to the most frequent destinations could have been made aboard
government contract carriers; (5) whether DOD helicopters used in the
Washington, D.C., area were justified on the basis of wartime
requirements; and (6) how often they were flown to nearby
destinations.  GAO also provides information on the inventory,
related costs, and the use of aircraft by civilian agencies. 

Federal Reorganization:
Congressional Proposal to Merge Education, Labor, and EEOC

GAO/HEHS-95-140, June 7 (132 pages). 

A congressional proposal to consolidate the Departments of Labor and
Education along with the Equal Employment Opportunity Commission
(EEOC) envisions saving billions of dollars and creating more
efficient services, but savings might be elusive if downsizing
proceeds too quickly or proceeds without careful planning.  The
proposal to create a new Department of Education and Employment could
yield savings of about $1.65 billion in administrative costs through
the year 2000.  The proposal's cost-saving goal, in addition to its
organizational requirements, would significantly change Education's
existing structure, program offerings, and processes.  The proposal
would also raise program consolidation, workforce, accountability,
implementation, and oversight issues that Congress, Education, and
other agencies would need to address to ensure that federal education
and training programs meet the nation's needs.  GAO summarized this
report in testimony before Congress; see: 


Federal Reorganization:  Proposed Merger's Impact on Existing
Department of Education Activities, by Linda G.  Morra, Director of
Education and Employment Issues, before the House Committee on
Economic and Educational Opportunities.  GAO/T-HEHS-95-188, June 29
(17 pages). 

Federal Employees' Compensation Act:
Redefining Continuation of Pay Could Result in Additional Refunds to
the Government

GAO/GGD-95-135, June 8 (16 pages). 

The federal government used to obtain refunds for continuation of pay
benefits when federal workers received damages from third parties who
were liable for work-related injuries that caused these employees to
be absent from work.  The government discontinued this practice in
1986 following decisions by the Employees' Compensation Appeals Board
and a federal appeals court.  This report examines the costs and the
benefits of the government reestablishing its former practice of
obtaining refunds of continuation of pay when employees recover
damages from responsible third parties. 

Federal Hiring:
Reconciling Managerial Flexibility With Veterans' Preference

GAO/GGD-95-102, June 16 (96 pages). 

The government's ability to serve the public depends directly on the
quality of the people it employs.  Past studies have shown, however,
that federal hiring procedures have often impeded managers' attempts
to hire quality people and have frustrated federal job applicants. 
This report determines which federal hiring procedures are working,
which are not, and whether current efforts to reform the hiring
process address the needs of both agencies and applicants.  GAO
recommends exploring alternatives that would better reconcile
managers' desire for greater discretion in the selection process with
the legal requirement to provide veterans with preferences in hiring. 
Any alternative should be developed in consultation with
representatives of veterans organizations, labor unions, and other
affected parties.  Any alternative tested should hold managers
responsible for enhancing veterans' employment opportunities as
required by law. 

Managing for Results:
The Department of Justice's Initial Efforts to Implement GPRA

GAO/GGD-95-167FS, June 20 (76 pages). 

The Government Performance and Results Act of 1993 was intended to
improve the effectiveness and the efficiency of federal programs by
establishing a system to set performance goals and measure results. 
This fact sheet reviews the Justice Department's implementation of
the act.  As GAO was systematically collecting information from each
Justice component about its implementation of the act, the Department
asked GAO to describe what it had found because this information had
not been consolidated at Justice.  This fact sheet provides
information that addresses questions from the Department's components
to help them develop performance measures and discusses the processes
used to develop the fiscal year 1996 exhibits, implementation
questions and concerns, and performance measures used in the
exhibits. 


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

Government Restructuring:  Identifying Potential Duplication in
Federal Missions and Approaches, by Susan J.  Irving, Associate
Director for Budget Issues, before the Senate Committee on
Governmental Affairs.  GAO/T-AIMD-95-161, June 7 (24 pages). 

The existing government structure is the result of the federal
government's response over time to new needs and problems, which lead
to new roles and responsibilities for agencies.  GAO's conclusion: 
Duplication of functions performed by federal agencies appears to be
endemic.  This testimony provides information on overall fiscal year
1994 obligations by agency and mission and identifies the
intersections between organizations and missions. 

Privatizing OPM Investigations:  Perspectives on OPM's Role in
Background Investigations, 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-95-185, June 14 (eight pages). 

The Office of Personnel Management (OPM) is considering privatizing
its Investigations Service by establishing a private corporation
owned by former Investigations Service employees through an employee
stock ownership plan.  This testimony focuses on OPM's role in
federal investigations and describes how the number and the scope of
investigations have altered with the changing personnel security
landscape in recent years. 

Privatizing OPM Investigations:  Implementation Issues, 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-95-186, June 15 (five
pages). 

The Office of Personnel Management (OPM) plans to privatize its
Investigative Service in order to (1) permit agencies more autonomy
in meeting their investigative needs and (2) achieve cost savings
through greater competition among providers of investigative
services.  This testimony addresses two basic questions about OPM's
privatization initiative.  First, should the investigative function
be considered "inherently governmental," or can it be performed
appropriately by a nonfederal organization?  Second, if it is
determined that this function can be carried out appropriately by a
non-federal organization, is conversion to an Employee Stock
Ownership Plan feasible? 

District of Columbia:  Weaknesses in Personnel Records and Public
Schools' Management Information and Controls, by Jeffrey C. 
Steinhoff, Director of Planning and Reporting in the Accounting and
Information Management Division, before the Subcommittee on the
District of Columbia, House Committee on Appropriations. 
GAO/T-AIMD-95-170, June 14 (17 pages). 

This testimony discusses the quality of the District of Columbia's
personnel and payroll information.  GAO focuses on the D.C.  public
schools, including their total expenditures, per pupil costs,
controls over personnel information and payments, data on the number
of students and controls over nonresident students, and funding for
the capital program.  GAO notes that District programs and agencies
are plagued with poor management information that hampers District
officials' ability to manage programs and make the hard choices
necessary to resolve the current fiscal crisis.  Nowhere is this more
true than with the situation regarding personnel information. 
Information on employees in personnel, payroll, and budget systems is
often erroneous and inconsistent.  Managing personnel costs in the
D.C.  public schools is particularly problematic:  Actual personnel
expenditures exceeded the budget in each of the last five fiscal
years.  The D.C.  public schools also have poor management
information on the number of students and lack an effective program
to identify nonresident students.  GAO makes several recommendations
to deal with these problems. 

District of Columbia:  Improved Financial Information and Controls
Are Essential to Address the Financial Crisis, by Jeffrey C. 
Steinhoff, Director of Planning and Reporting in the Accounting and
Information Management Division, before the Subcommittee on the
District of Columbia, House Committee on Appropriations. 
GAO/T-AIMD-95-176, June 21 (25 pages). 

The District of Columbia lacks the most basic financial data,
including the status of its funds, the amounts owed, and the balance
of cash.  As a result, District managers do not have fundamental
financial information necessary to help control costs and to estimate
budget and cash needs.  Although financial circumstances remain the
same, spending and cash projections have varied widely, causing GAO
to question the validity of the estimates, particularly the mayor's
$3.89 billion spending projection in February 1995.  During a
six-month period, District expenditure projections for fiscal year
1995 have ranged from $3.25 billion to $3.89 billion and year-end
cash balance projections have ranged from a positive balance of $50
million to a negative balance of $350 million.  Such wide
fluctuations make it difficult, if not impossible, to determine the
District's true financial condition.  This testimony focuses on the
following four areas:  the District's changing expenditure and cash
projections for fiscal year 1995, the status of the District's
request for borrowings from the U.S.  Treasury, the status of the
District's management initiatives to reduce spending, and the
District's serious financial information and
control weaknesses. 

District of Columbia:  City and State Privatization Initiatives and
Impediments, by L.  Nye Stevens, Director of Federal Management and
Workforce Issues, before the Subcommittee on the District of
Columbia, House Committee on Appropriations.  GAO/T-GGD-95-194, June
28 (24 pages). 

Privatization covers a wide variety of approaches in which government
functions can be shifted, in whole or in part, to the private sector. 
The District of Columbia is studying potential benefits of
privatizing government services and reinventing its government
operations.  Other city and state governments, facing fiscal
pressures, used privatization to help reinvent government, save
money, and improve service delivery.  Privatization can take various
forms, such as divestiture, contracting out, vouchers, and
public-private partnerships.  This testimony describes (1) current
trends and initiatives in privatization in city and state governments
and (2) impediments other government units have faced with
privatization programs that could apply to the District. 

Managing for Results:  Critical Actions for Measuring Performance, by
Johnny F.  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-95-187, June 20 (15
pages). 

Although some federal agencies are making progress in establishing
well-defined, meaningful, and sound performance measures, most have a
long way to go.  The experiences of leading state and foreign
governments, federal agencies, and businesses provide valuable
lessons for federal agencies as they begin to implement the
Government Performance and Results Act's performance assessment
requirements and redesign their critical work processes to achieve
significant improvements.  Agencies are confronted with the central
issue of developing performance measurement processes that focus on
outcomes that are important to key stakeholders while providing the
critical management information needed to improve processes to
achieve those outcomes.  Given the challenges that agencies face and
the need to make major performance improvements during a period of
severely limited resources, Congress has an essential role to play
through its oversight, appropriation, and authorization
responsibilities. 

Managing for Results:  Status of the Government Performance and
Results Act, 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-95-193, June 27 (12 pages). 

This testimony provides GAO's preliminary observations on the
implementation of the Government Performance and Results Act--the
federal government's central goal-setting and performance measurement
statutory initiative.  GAO discusses the following five emerging
challenges to the effective governmentwide implementation of the act: 
(1) developing and sustaining top management commitment to the act,
(2) building the capacity of agencies to implement the act and use
the resulting performance information, (3) creating incentives to
implement the act and change the focus of management and
accountability, (4) integrating the act into daily operations, and
(5) strengthening congressional oversight.  If the act is to achieve
its objectives, top federal officials must assume personal leadership
for its implementation.  Agencies will also need to build capacity
and provide incentives for focusing on results and to integrate the
act into their daily operations. 

Federal Retirement System Financing, by Johnny C.  Finch, Assistant
Comptroller General for General Government Programs, before the
Subcommittee on Civil Service, House Committee on Government Reform
and Oversight.  GAO/T-GGD-95-197, June 28 (six pages). 

Federal retirement system financing is a complex issue.  This
testimony seeks to bring some perspective to the subject by
describing how the government finances its retirement system and by
describing the budget implications of the financing methods being
used and possible changes to these methods.  GAO concentrates on the
Civil Service Retirement System and the Federal Employees Retirement
System because they are the largest retirement programs for federal
workers. 


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

Vaccines for Children:
Reexamination of Program Goals and Implementation Needed to Ensure
Vaccination

GAO/PEMD-95-22, June 15 (43 pages). 

More than 95 percent of the nation's children receive recommended
vaccinations by the time they enter school.  Preschool children were
overrepresented, however, in the widespread measles outbreaks of
1989-91, a situation attributed to underimmunization.  The Vaccines
for Children Program, created in 1993, is intended to boost
immunization coverage for children by reducing the costs of the
vaccines for their parents.  Yet GAO concludes that the cost of
vaccine for parents has not been a major barrier to childrens' timely
vaccination.  Moreover, the Centers for Disease Control cannot
guarantee that the program will reach pockets of need--areas or
populations in which immunizations rates are low and the risk of
disease is high.  GAO concludes that better use of Medicaid, public
health clinics, and other health providers may hold a better promise
of immunizing children against disease at a cost lower than that of
the program.  GAO summarized this report in testimony before
Congress; see: 

Vaccines for Children:  Refocusing the Program's Goals and
Implementation, by Kwai-Cheung Chan, Director of Program Evaluation
in Physical System Areas, before the Subcommittee on Health and
Environment, House Committee on Commerce.  GAO/T-PEMD-95-23, June 15
(18 pages). 

Nutrition Monitoring:
Data Serve Many Purposes; Users Recommend Improvements

GAO/PEMD-95-15, June 20 (62 pages). 

The National Nutrition Monitoring and Related Research Program
consists of a network of surveys, surveillance systems, and research
activities that serves various purposes.  It provides researchers and
decisionmakers with data for assessing the safety of the nation's
food supply, targeting food assistance to low-income families, and
studying the relationship between diet and disease.  The program has
been criticized, however, for the lack of coordination among the
various activities and its poor coverage of populations at risk of
nutritional problems.  GAO surveyed users of nutrition-monitoring
data.  This report (1) describes the users and the major uses of
nutrition-monitoring data and (2) summarizes user satisfaction with
nutrition-monitoring activities and the changes that users believe
are likely to increase their use of, or confidence in, the data. 


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

Medicare:  Modern Management Strategies Needed to Curb Program
Exploitation, by Jonathan Ratner, Associate Director for Health
Financing and Policy Issues, before the Subcommittee on Human
Resources and Intergovernmental Relations, House Committee on
Government Reform and Oversight.  GAO/T-HEHS-95-183, June 15 (16
pages). 

Medicare's vulnerability to provider exploitation of its billing
system stems from a combination of factors:  (1) higher-than-market
rates for some services, (2) inadequate checks for detecting fraud
and abuse, (3) superficial criteria for confirming the authenticity
of providers billing the program, and (4) weak enforcement efforts. 
Various health care management techniques help private payers avoid
these problems, but Medicare generally does not use these techniques. 
The program's pricing methods and controls over utilization have not
kept pace with changes in health care financing and delivery.  To
some extent, the predicament inherent in public programs--the
uncertain line between adequate managerial control and excessive
government intervention--helps explains the dissimilarity in the ways
in which Medicare and private health insurers run their respective
"plans." GAO believes that a viable strategy for remedying the
program's weaknesses consists of adapting the health care management
approach of private payers to Medicare's public payer role.  This
would entail (1) more competitively developed payment rates, (2)
beefed-up fraud and abuse detection that uses modern information
systems, and (3) more rigorous criteria for granting authorization to
bill the program. 

Medicaid:  Statewide Section 1115 Demonstrations' Impact on
Eligibility, Service Delivery, and Program Cost, by William J. 
Scanlon, Associate Director for Health Financing Issues, before the
Subcommittee on Health and Environment, House Committee on Commerce. 
GAO/T-HEHS-95-182, June 21 (six pages). 

The growth of Medicaid, which accounted for $142 billion in federal
and state outlays in 1994, is outpacing even the growth of Medicare. 
This is happening at a time when states are feeling pressured
financially and are seeking ways to care for their uninsured
populations.  In response, states are, one by one, reinventing their
Medicaid programs, using the authority of section 1115 waivers. 
Named for section 1115(a) of the Social Security Act, these waivers
free states from some Medicaid restrictions on the use of managed
care delivery systems.  They also allow states to expand
Medicaid-financed coverage to persons not normally eligible for
Medicaid.  This testimony presents a detailed look at Medicaid's
growing expenditures, describes states' efforts to obtain section
1115 waivers, and summarizes the expenditures forecast of programs
operating with waivers. 

Medicare:  Rapid Spending Growth Calls for More Prudent Purchasing,
by Jonathan Ratner, Associate Director for Health Financing Issues,
before the Subcommittee on Health and Environment, House Committee on
Commerce.  GAO/T-HEHS-95-193, June 28 (12 pages). 

Last year, federal spending for Medicare totaled $162 billion--more
than $440 million a day.  In March 1995, the Congressional Budget
Office estimated that these outlays would approach $350 billion by
2002.  In 2005, they could exceed $460 billion unless changes are
made.  This testimony discusses ways in which the Medicare program
could avoid excessive or unnecessary spending.  GAO examines areas of
rapid spending growth and ways to conserve program dollars--mainly by
revising reimbursement policies and better controlling unwarranted
use of services. 


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

HUD Management:
FHA's Multifamily Loan Loss Reserves and Default
Prevention Efforts

GAO/RCED/AIMD-95-100, June 5 (40 pages). 

In recent years, the number of defaults on Federal Housing
Administration (FHA)-insured loans for multifamily housing has
soared.  In 1994, FHA established loan loss reserves of $103 billion
for its multifamily portfolio.  This represents the amount that HUD
expects to lose from future defaults on FHA-insured loans.  This
report evaluates (1) the methodology that FHA used to set loan loss
reserves for its fiscal year 1993 multifamily portfolio; (2) the
relative benefit of creating a new, actuarially sound insurance fund
for all new multifamily housing insurance commitments; and (3) HUD's
current initiatives for preventing future defaults on FHA's
multifamily housing loans. 

Housing Finance:
Improving the Federal Home Loan Bank System's Affordable Housing
Program

GAO/RCED-95-82, June 9 (82 pages). 

Decent and affordable housing for every American family has been a
goal of national housing policy since 1949.  A shortage of affordable
housing has prompted Congress to expand the capital available to
finance such housing.  The Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 required that the Federal Home Loan Bank
System establish an Affordable Housing Program to help finance
housing for households with very low, low, and moderate incomes and
directed GAO to evaluate this program.  This report examines (1) how
program funds have been used to support affordable housing
initiatives, (2) how the program has been run, and (3) whether
opportunities exist to improve the program as a source of housing
finance. 

Public Housing:
Converting to Housing Certificates Raises Major Questions
About Cost

GAO/RCED-95-195, June 20 (26 pages). 

Proposed legislation submitted to Congress by the Department of
Housing and Urban Development (HUD) would change how the United
States has traditionally funded public housing.  Federal aid would no
longer flow to public housing authorities but instead would go to
households in the form of housing certificates, giving these families
the choice of remaining in public housing or moving to rental
apartments.  HUD believes that this shift in policy would save money
and solve several basic problems with public housing, including
residents' lack of choice in housing, the concentration of very poor
people in very poor neighborhoods, and a lack of discipline in
management of public housing because of its insulation from the
marketplace.  This report analyzes the proposed legislation and (1)
describes the cost implications and issues raised by switching from
the current public housing program to one using housing certificates
and (2) identifies key factors that may affect HUD's plan to provide
greater housing choice for public housing residents. 


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

Public Housing:  HUD's Takeover of the Chicago Housing Authority, by
Judy A.  England-Joseph, Director of Housing and Community
Development Issues, before the Subcommittee on Housing and Community
Opportunity, House Committee on Banking and Financial Services. 
GAO/T-RCED-95-222, June 7 (11 pages). 

The Chicago Housing Authority has a long history of troubled
management and poor housing conditions that arise from deficient
management systems; aging, deteriorated, and poorly designed stock;
and the extremely low incomes of residents.  The Department of
Housing and Urban Development's (HUD) ability to take over a troubled
housing authority has been hampered in the past by limited resources
and staff expertise.  In the past two years, however, key officials
with housing expertise have joined HUD, and the long-term benefits of
taking drastic action outweigh the costs of continued troubled
status.  Finally, proposed statutory changes, such as repealing the
one-for-one replacement requirement, reforming rent calculation
rules, and changing public housing eligibility criteria, could result
in better use of federal funds for assisted housing. 

Multifamily Housing:  HUD's Proposal to Restructure Its Portfolio, by
Jim Wells, Associate Director for Housing and Community Development
Issues, before the Subcommittee on Housing and Community Opportunity,
House Committee on Banking and Financial Services. 
GAO/T-RCED-95-226, June 13 (11 pages); and

Multifamily Housing:  HUD's Mark-to-Market Proposal, by Jim Wells,
Associate Director for Housing and Community Development Issues,
before the Subcommittee on Housing Opportunity and Community
Development, Senate Committee on Banking, Housing, and Urban Affairs. 
GAO/T-RCED-95-230, June 15 (14 pages). 

The Department of Housing and Urban Development (HUD) is proposing to
restructure its multifamily housing portfolio via an approach known
as "mark to market." About two million privately owned and managed
rental units benefit from mortgage insurance or rental subsidies
provided by HUD.  The proposal seeks to overcome problems plaguing
projects in HUD's multifamily portfolio that both have HUD-insured
mortgages and receive rental subsidies tied to units in the projects
under HUD's Section 8 rental assistance program.  The proposal calls
for decoupling rental subsidies and mortgage insurance at individual
projects and adjusting mortgage debt to help projects compete
effectively in the commercial rental market.  This testimony focuses
on the following questions:  (1) What problems affect the condition
of HUD's multifamily housing portfolio?  (2) How does HUD believe
that its mark-to-market proposal would solve these problems?  (3)
Which properties will be affected by HUD's proposal?  (4) What costs
and savings may result from the mark-to-market approach?  (5) What
key issues does Congress face in considering the proposal? 


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


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

Child Support Enforcement:  Opportunity to Reduce Federal and State
Costs, by Jane L.  Ross, Director of Income Security Issues, before
the Subcommittee on Human Resources, House Committee on Ways and
Means.  GAO/T-HEHS-95-181, June 13 (11 pages). 

The federal Child Support Enforcement Program supports state efforts
to obtain child support for recipients of Aid to Families With
Dependent Children (AFDC) and nonwelfare families.  Congress created
the program in 1975 with the belief that many families might avoid
applying for welfare if they could obtain the support due from the
noncustodial parent.  Preliminary data for fiscal year 1994 show that
the program collected more than $7.3 billion for about 8.2 million
nonwelfare clients.  This testimony focuses on four key points about
the non-AFDC child support program:  (1) growth in non-AFDC caseloads
and related administrative costs to provide collection and other
services; (2) income characteristics of non-AFDC
clients--specifically, GAO's finding that many are not the low-income
persons that Congress envisioned targeting; (3) alternatives for
boosting non-AFDC cost recovery; and (4) an alternative fee structure
based on child support collections and the flexibility that states
should have in implementing such a cost recovery system. 


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

National Fine Center:
Progress Made but Challenges Remain for Criminal Debt System

GAO/AIMD-95-76, May 25 (37 pages). 

This report reviews the efforts of Administrative Office of the
United States Courts (AOUSC) to centralize criminal debt accounting
and reporting within the National Fine Center.  AOUSC was required to
replace the existing fragmented approach to receiving criminal fine
payments with a centralized, automated criminal-debt-processing
system for all 94 judicial districts.  The new system was intended to
alleviate long-standing weaknesses in accounting for, collecting, and
reporting on monetary penalties imposed on federal criminals.  GAO
(1) provides information on AOUSC's latest efforts to establish the
National Fine Center and centralize criminal debt accounting and
reporting and (2) discusses additional steps AOUSC needs to take to
complete implementation of the National
Fine Center. 

Federal Family Education Loan Information System:
Weak Computer Controls Increase Risk of Unauthorized Access to
Sensitive Data

GAO/AIMD-95-117, June 12 (24 pages). 

Controls over the Federal Education Loan Program information system,
which is operated by a contractor for the Education Department, are
critical to safeguarding assets, maintaining sensitive loan data, and
ensuring the reliability of financial management information.  GAO
found that Education's general controls over the system failed to
adequately protect sensitive files, applications programs, and
systems software from unauthorized access, changes, or disclosure. 


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

Veterans Benefits Modernization:  Further Service Improvement Depends
on Coordinated Approach, by Frank W.  Reilly, Director of Information
Resources Management/Health, Education, and Human Services Issues,
before the Subcommittee on Compensation, Pension, Insurance, and
Memorial Affairs, House Committee on Veterans' Affairs. 
GAO/T-AIMD/HEHS-95-184, June 22 (13 pages). 

This testimony assesses efforts by the Department of Veterans Affairs
(VA) to reeingineer claims processing to improve service to veterans. 
GAO outlines and updates past problems it has identified in VA's
approach toward systems modernization, as well as other initiatives
to improve claims processing.  GAO also evaluates the findings and
the recommendations of a study of VA's modernization effort that was
recently completed by the Center for Naval Analyses Corporation. 


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

Foreign Housing Guaranty Program:
Financial Condition Is Poor and Goals Are Not Achieved

GAO/NSIAD-95-108, June 2 (84 pages). 

Since 1961, the Agency for International Development's Housing
Guaranty Program has guarantied more than $2.7 billion in loans in 44
countries for home construction, mortgages, home improvements, urban
infrastructure, and other shelter projects.  A fundamental program
goal is to increase housing for low-income families in developing
countries by motivating local institutions to provide investment
capital and other resources.  However, Congress should consider
terminating the program because it has failed to spur private-sector
investment in low-income housing in developing countries, its
benefits often go to higher-income persons, and its loan defaults may
ultimately cost the U.S.  government as much as $1 billion. 
Moreover, program assistance has gone increasingly to creditworthy
developing nations that have ready access to international financing. 
GAO summarized this report in testimony before Congress; see: 

Foreign Housing Guaranty Program:  Goals Are Not Achieved and
Financial Condition Is Poor, by Frank C.  Conahan, Senior Defense and
International Affairs Advisor to the Comptroller General, before the
Subcommittee on International Economic Policy and Trade, House
Committee on International Relations.  GAO/T-NSIAD-95-181, June 28
(11 pages). 

Foreign Assistance:
African Development Foundation's Overhead Costs Can
Be Reduced

GAO/NSIAD-95-79, June 2 (35 pages). 

The African Development Foundation was created by Congress in 1980 as
an independent public corporation to support local self-help
initiatives of the poor in Africa.  In response to congressional
concerns about whether the Foundation has used its resources
efficiently, GAO reviewed the Foundation's administrative and
financial management practices.  This report discusses whether the
Foundation (1) used program funds for administrative expenses, (2)
presented reliable data in its budget submissions to Congress, and
(3) complied with financial
reporting requirements. 

National Security:
Impact of China's Military Modernization in the Pacific Region

GAO/NSIAD-95-84, June 6 (50 pages). 

With the end of the Cold War, the Asia-Pacific region faces an
uncertain security environment.  China, once viewed as a
counterweight to Soviet aggression, is now seen as aspiring to fill
the role of the leading regional power.  China is pursuing long-range
military modernization that seeks to upgrade its air and naval power
and to realign its force structure.  As China's military capability
increases, so does regional anxiety about China's intentions.  This
report (1) assesses the nature and the purpose of China's military
modernization and (2) compares China's military modernization efforts
with those of other Asian nations. 

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

GAO/NSIAD-95-165, June 9 (78 pages). 

The U.S.  program to destroy weapons of mass destruction in the
former Soviet Union has succeeded in dismantling nuclear warheads in
Ukraine, but significant barriers remain, including the lack of
agreement on technology to be used in chemical weapons destruction. 
This report assesses the Cooperative Threat Reduction program's (1)
planning and funding status and (2) recent progress in addressing
program objectives in the former Soviet Union--that is, the safe and
secure elimination of nuclear, chemical, and other weapons of mass
destruction, including missiles and other strategic delivery
vehicles; the improvement of controls over nuclear weapons and
materials; and the promotion of
demilitarization projects. 

Food Aid:
Competing Goals and Requirements Hinder Title I Program Results

GAO/GGD-95-68, June 26 (101 pages). 

During the past 40 years, the United States has allocated more than
$88 billion in food assistance to developing countries under title I
of the 1954 Agricultural Trade Development and Assistance Act.  Under
the title I program, run by the Agriculture Department, U.S. 
agricultural commodities are sold on long-term credit terms at
below-market-rate interest.  Although the United States remains a
world leader in providing food aid, title I's share of both U.S. 
food aid and overall U.S.  agricultural exports has declined
dramatically since the program's inception.  This report evaluates
the impact of title I assistance on (1) broad-based, sustainable
economic development in recipient countries and (2) long-term market
development for U.S.  agricultural goods in those countries.  GAO
also reviews the effect of 1990 legislation on restructuring title I
program management and the program's ability to sustain economic and
market development. 


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

Agricultural Trade:  Competitor Countries' Foreign Market Development
Programs, by Allan I.  Mendelowitz, Director of International Trade,
Finance, and Competitiveness Issues, before the House Committee on
Agriculture.  GAO/T-GGD-95-184, June 14 (16 pages). 

As Congress develops the 1995 Farm Bill and decides what support to
provide for export programs, one consideration is the activities of
major competitors of the United States.  The multilateral trade
agreement of the Uruguay round of the General Agreement on Tariffs
and Trade will reduce agricultural subsidies but will not limit
funding for market development activities, such as advertising,
retail promotions, and market research.  This testimony discusses the
foreign market development activities of competitor countries and
their implications for U.S.  foreign market development.  GAO also
provides a status report on state
trading enterprises. 


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

Customs Service:
Passenger User Fee Collection Needs to Be Reevaluated

GAO/GGD-95-138, May 22 (24 pages). 

The U.S.  Customs Service is authorized to charge user fees for
processing passengers and conveyances, such as commercial vessels and
vehicles, entering the United States.  The fee for processing
international air and sea passenger arrivals in the United States,
called the passenger user fee, is set at $6.50 per passenger.  This
report (1) determines whether carriers have collected and remitted
the fee; (2) assesses any factors that may hamper the collection of
this fee, including statutory restrictions, internal control
weaknesses, and audit limitations; and (3) identifies options to
improve the collection and remittance of the fee. 

Money Laundering:
Needed Improvements for Reporting Suspicious Transactions
Are Planned

GAO/GGD-95-156, May 30 (45 pages). 

Money laundering involves disguising or concealing illicit income so
as to make it appear legitimate.  Banks, savings and loans, and
credit unions are in a unique position to help identify money
launderers by reporting suspicious transactions to federal and state
law enforcement authorities.  Financial institutions report tens of
thousands of suspicious transactions each year.  The reports have led
to investigations into various criminal activities.  However, because
there is no overall control or coordination of the reports, there is
no way of ensuring that the information is being fully used. 
Financial institutions report suspicious transactions on various
forms to provide different types of information that are filed with
different law enforcement and regulatory agencies.  The Treasury
Department, the financial regulatory agencies, and the Internal
Revenue Service have agreed to substantial changes in how suspicious
transactions are to be reported and how the information is to be
used.  These proposals, which were made with input from the financial
community, have the potential for significantly improving the
contribution that suspicious transaction reports make to law
enforcement. 

INS:
Information on Aliens Applying for Permanent Resident Status

GAO/GGD-95-162FS, June 8 (nine pages). 

This fact sheet provides information on aliens applying to the
Immigration and Naturalization Service (INS) to adjust their status
to lawful permanent residents.  Recent legislation allows aliens who
entered without inspection, worked illegally, or overstayed their
visas to apply for permanent resident status without leaving the
country.  GAO provides data on (1) the number of aliens applying for
permanent resident status under the legislation, (2) revenue that has
been received as a result of these aliens' applications, (3) denial
rates for these applications, and (4) the impact of these
applications on INS' workload. 

Juvenile Justice:
Representation Rates Varied as Did Counsel's Impact on
Court Outcomes

GAO/GGD-95-139, June 19 (91 pages). 

Some legal organizations and scholars have raised concerns about the
access to counsel afforded to young people in juvenile court
proceedings.  For example, the American Bar Association and
individual law professors testified before Congress in 1992 that half
of all juveniles in the United States waive their constitutionally
guaranteed right to counsel without speaking to attorneys.  This
report (1) reviews laws in 15 states to determine juveniles' right to
counsel, (2) determines how often juveniles have counsel in juvenile
courts in three states, (3) determines the likely impact of counsel
on juvenile justice outcomes, (4) determines whether juveniles who
are in adult court have counsel, and (5) provides insights on the
quality of counsel. 

U.S.  Attorneys:
More Accountability for Implementing Priority Programs
Is Desirable

GAO/GGD-95-150, June 23 (73 pages). 

U.S.  Attorneys litigate for the government in criminal and civil
proceedings.  They prosecute persons charged with violating federal
criminal law, represent the government in civil cases, and collect
money and property owed to the government.  In view of the
independence and the discretion exercised by U.S.  Attorneys in
determining which cases to prosecute and recent growth in the size
and the cost of their operations, this report determines (1) how the
Justice Department communicates national priorities to the U.S. 
Attorneys; (2) how selected U.S.  Attorneys establish their
priorities and coordinate them with law enforcement agencies in their
districts; and (3) what, if any, measures Justice uses to assess U.S. 
Attorneys' effectiveness in meeting national priorities. 


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

Bureau of Prisons:  Recent Concerns and Challenges for the Future, by
Norman J.  Rabkin, Director of Administration of Justice Issues,
before the Subcommittee on Crime, House Committee on the Judiciary. 
GAO/T-GGD-95-177, June 8 (10 pages). 

In response to congressional concerns about, and challenges to, the
Bureau of Prisons and correctional systems across the country, GAO's
federal corrections work during the past eight years has focused on
the following four areas:  prison crowding; options for expanding
prison capacity; privatization; and health care--including drug
treatment.  This testimony briefly describes the challenges and the
issues confronting the Bureau of Prisons, recaps GAO's key findings
and recommendations on these matters, and highlights concerns for the
future. 

Drug War:  Observations on the U.S.  International Drug Control
Strategy, by Joseph E.  Kelley, Director of International Affairs
Issues, before the Subcommittee on National Security, International
Affairs, and Criminal Justice, House Committee on Government Reform
and Oversight.  GAO/T-NSIAD-95-182, June 27 (13 pages). 

The government's strategy for stopping the production and the
trafficking of cocaine and heroin destined for the United States
suffers from a lack of interagency coordination, poor management of
funds, and a lack of commitment from some foreign governments to
combat the drug trade in their countries.  Although the United States
has changed its international strategy on cocaine from law
enforcement and drug seizures in the transit zone to stopping drugs
in the source countries, the executive branch has had difficulty
implementing a key part of the strategy--shifting resources from the
transit zone to source countries.  Also, a proposed heroin strategy
still awaits the President's approval.  Moreover, the willingness and
the ability of foreign governments to fight the drug trade in their
countries varies.  Recent steps taken by the government of Colombia,
such as the arrests of three high-level members of the Cali Cartel,
have been positive, but continuing commitment is needed.  Even when
foreign governments are willing to fully participate in
counternarcotics efforts, they often lack the necessary resources. 
Extensive corruption in some countries further weakens efforts to
counter the drug trade. 


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

Defense Inventory:
Opportunities to Reduce Warehouse Space

GAO/NSIAD-95-64, May 24 (40 pages). 

The Defense Department's (DOD) 600 million cubic feet of warehouse
space make DOD the world's largest inventory manager.  Although DOD
has substantially cut the number of its storage depots and the
inventory stored there--ranging from medical supplies to clothing to
spare parts--it could reduce inventory levels still further,
particularly among deteriorated or obsolete items.  DOD should focus
on getting rid of unneeded items that take up a lot of space and
involve more than 20 years' supply on hand.  This report determines
(1) the size of DOD's secondary inventory, (2) the amount of space
occupied by secondary inventory that DOD does not need to satisfy
current war reserve and operating requirements, (3) the cost of
storing this inventory, and (4) the time it will take to use it. 

Military Exports:
Recovery of Nonrecurring Research and Development Costs

GAO/NSIAD-95-147, May 31 (18 pages). 

Since 1967, the Defense Department (DOD) has been recovering
nonrecurring research and development and one-time production costs
on sales of weapon systems to foreign governments.  The intent of
this effort was to control U.S.  costs and the extent of weapons
sales to foreign governments.  In 1992, DOD canceled its policy of
recovering nonrecurring costs on direct commercial sales in an effort
to boost the competitiveness of U.S.  firms in the world market.  In
1995, several bills were introduced that could affect the recovery of
nonrecurring costs on military sales.  This report discusses (1) the
government's recovery of nonrecurring research and development costs
on sales of major defense equipment, (2) the effect of charging a
flat or standard fee rather than the current pro rata fee, and (3)
views from supporters and opponents of the recovery of these costs. 

Army National Guard:
Combat Brigades' Ability to Be Ready for War in 90 Days
Is Uncertain

GAO/NSIAD-95-91, June 2 (65 pages). 

The end of the Cold War and budgetary constraints have increased the
military's reliance on Army National Guard combat brigades. 
Shortcomings revealed during the combat brigades' mobilization for
the Persian Gulf War raised questions about the training strategies
used and the time required to be ready to deploy.  GAO found that
recruitment and training problems make it unlikely that these units
could meet a goal of combat readiness within 90 days of mobilization. 
This report discusses whether (1) the Bold Shift training strategy
has enabled combat brigades to meet peacetime training goals, (2) the
advisers assigned to the brigades are working effectively to improve
training readiness, and (3) prospects of having the brigades ready
for war within 90 days are likely. 

Military Personnel:
High Aggregate Personnel Levels Maintained
Throughout Drawdown

GAO/NSIAD-95-97, June 2 (43 pages). 

The largest military drawdown since the end of the Vietnam War is now
about 80 percent complete.  By the end of fiscal year 1999, the
Defense Department will have reduced its military and civilian
personnel by almost a third.  GAO found that despite these
substantial cuts, the military services generally kept more than 95
percent of their authorized positions filled throughout the drawdown. 
They also maintained high fill rates for most ranks and kept more
than 90 percent of authorized positions filled in most military
categories.  The major area of concern was a continuing shortage of
field grade officers, especially in the Army, where fill rates
generally hovered between 80 and 85 percent.  In addition to
discussing the extent to which the services were able to fill
authorized positions, this report discusses the factors contributing
to the personnel shortage at selected U.S.  installations and units
and the factors that could lead to personnel shortages in the future. 

Navy Torpedo Programs:
MK-48 ADCAP Upgrades Not Adequately Justified

GAO/NSIAD-95-104, June 12 (22 pages). 

As part of its ongoing work on Navy torpedo programs, GAO reviewed
the Navy's plans to upgrade both the propulsion and the guidance and
control systems of the MK-48 Advanced Capability torpedo.  Because
the program manager is seeking approval to begin low-rate initial
production, this report discusses (1) the need for the propulsion
system upgrade and (2) the appropriateness of approving low-rate
initial production of the guidance and control system. 

Weapons Acquisition:
Precision Guided Munitions in Inventory, Production,
and Development

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

The military services are spending billions of dollars to acquire new
and improved munitions whose technical sophistication allows guidance
corrections during their flight to the target.  These weapons are
known as precision-guided munitions.  GAO reviewed Air Force, Navy,
and Army munitions in inventory, production, and development that use
precision guidance to attack surface targets.  This report determines
(1) the costs and the quantities planned for the precision-guided
munitions, (2) the services' rationale for initiating
precision-guided munitions development programs, (3) options
available to the services to attack surface targets with
precision-guided munitions, and (4) the extent to which the services
were jointly developing and procuring such munitions. 


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

Operation Desert Storm:  Investigation of a U.S.  Army Fratricide
Incident, by Richard C.  Stiener, Director of the Office of Special
Investigations, before the Permanent Subcommittee on Investigations,
Senate Committee on Governmental Affairs.  GAO/T-OSI-95-11, June 29
(five pages). 

This testimony discusses GAO's April 1995 report (GAO/OSI-95-10) on
the events leading to a fratricide incident during the Persian Gulf
War in which one U.S.  soldier was killed and a second was wounded. 
In that report, GAO assessed the adequacy of U.S.  Army
investigations following the incident and discussed allegations that
Army officials had hindered those investigations or influenced their
outcome. 


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

National Parks:
Views on the Denver Service Center and Information on Related
Construction Activities

GAO/RCED-95-79, June 23 (25 pages). 

One of the major organizational units of the National Park Service is
the Denver Service Center, which supports construction activities
throughout the park system.  The Center works with individual parks
in planning, designing, and building projects, which range from
rehabilitating historic structures to building new visitor centers to
repairing and replacing utility systems.  Parks are expected to use
the Center's services for projects costing more than $250,000,
although exceptions are granted if the parks have the expertise
needed for the projects and they receive approval from Park Service
headquarters.  In response to congressional concerns about the
quality of services provided by the Center, GAO surveyed park
managers on the quality and the timeliness of those services.  This
report also (1) describes how the Park Service sets priorities for
funding construction projects and how the priorities may be modified
during congressional consideration of the Park Service's annual
appropriations requests, (2) describes the process the Park Service
uses to develop cost estimates for projects, and (3) provides
information on the makeup of projects' contingency and supervision
funds. 


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

Space Station:
Estimated Total U.S.  Funding Requirements

GAO/NSIAD-95-163, June 12 (22 pages). 

GAO estimates that it will cost about $94 billion to design and
launch the space station through 2012.  Although the program has made
great progress since last year in defining its requirements, meeting
its schedule milestones, and remaining within its annual operating
budgets, the program still faces formidable challenges in meeting all
its goals on time and within budget.  Moreover, low financial
reserves through fiscal year 1997 could lead to cost overruns and
force postponement of some activities.  In addition, the space
station's current launch and assembly schedule is ambitious, and the
shuttle program may have difficulty supporting it.  If the contractor
is unable to negotiate subcontractor agreements for the expected
price, the target cost for the prime contract could increase.  NASA
plans to complete an independent internal assessment of space station
costs later this fiscal year. 

Performance Measurement:
Efforts to Evaluate the Advanced Technology Program

GAO/RCED-95-68, May 15 (33 pages). 

The Advanced Technology Program, which is run by the National
Institute of Standards and Technology (NIST), seeks to provide
support on a cost-sharing basis to research and development projects
in industry.  These projects are intended to stimulate economic
growth and improve the competitiveness of U.S.  industry.  Funding
for the program has risen from $68 million in fiscal year 1993 to
$431 million in fiscal year 1995, more than doubling each year.  The
President has set a goal of $750 million in funding for the program
by 1997.  The agency has reported short-term results that it claims
show the program is making an impact.  This report (1) analyzes these
short-term results and (2) reviews NIST's plans for evaluating the
program in the future. 

Earth Observing System:
Funding Requirements for NASA's EOSDIS

GAO/AIMD-95-153FS, June 8 (23 pages). 

This fact sheet reviews NASA's Earth Observing System Data and
Information System (EOSDIS), which is intended to study global change
by gathering information on how the earth functions as a single,
integrated system.  GAO profiles estimated funding requirements for
the program on the basis of information provided by the Office of
Mission to Plant Earth, NASA Headquarters, and the Earth Science Data
and Information System Project Office at the Goddard Space Flight
Center. 

NASA's Earth Observing System:
Estimated Funding Requirements

GAO/NSIAD-95-175, June 9 (13 pages). 

The Earth Observing System, the centerpiece of NASA's Mission to
Planet Earth, seeks to understand the total earth system--air, water,
land, life, and their interactions--and the effects of natural and
human-induced change on the global environment.  The system has three
major components:  a system of satellites to collect 15 years worth
of climate data, a data and information system to run the satellites
and process the resulting data, and teams of scientists to develop
algorithms for converting sensor data into useful information and to
conduct research using the information.  GAO estimates that funding
needs for the Earth Observing System would total about $33 billion
for fiscal years 1991-2022.  NASA is studying ways to reduce future
system funding needs and expects to substantially change the baseline
program when these studies are completed in July 1995.  NASA
officials claim that technology development and operational
improvement could cut annual funding requirements for the second and
third satellites in each series by as much as 30 percent, which would
reduce GAO's estimate of total funding requirements to $27 billion. 
NASA officials believe the further reductions may be possible from
increased collaboration with other agencies, international partners,
and the commercial sector. 


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

Child Welfare:
Opportunities to Further Enhance Family Preservation and Support
Activities

GAO/HEHS-95-112, June 15 (88 pages). 

During the past 20 years, social, cultural, and economic
changes--such as increases in drug abuse, community violence, and
poverty--have increased the severity of problems plaguing American
families and the number of families that have come to the attention
of child welfare agencies.  From 1976 to 1992, the rates of child
abuse and neglect increased fourfold.  And from 1988 to 1993, the
number of foster children increased nearly one-third, to 450,000. 
States have struggled to keep up with the increased demand for child
welfare services, but worsening state fiscal difficulties have
further strained the child welfare system's ability to serve
vulnerable children and their families.  As part of the Omnibus
Budget Reconciliation Act of 1993, Congress authorized new funding
for family preservation and family support services.  More recently,
Congress has considered proposals to incorporate these funds, along
with other child welfare programs, into a block grant program for
states.  This report (1) describes the condition of child welfare in
America that precipitated the 1993 act, (2) assesses federal and
state efforts to implement its provisions, and (3) highlights areas
in which these efforts could
be enhanced. 

Food Assistance:
Reducing Food Stamp Benefit Overpayments and Trafficking

GAO/RCED-95-198, June 23 (67 pages). 

The Agriculture Department's (USDA) Food Stamp Program is one of the
nation's largest welfare programs, providing about $24 billion in
food stamps to more than 27 million recipients during fiscal year
1994.  Errors in determining recipients' eligibility and benefit
levels generate nearly $2 billion in benefit overpayments each year. 
Complex regulations governing the program and differences in
eligibility and benefit determination criteria between the Food Stamp
and the Aid to Families With Dependent Children Programs appear to be
the main sources of state caseworker errors.  Some errors also result
from Food Stamp recipients' inadvertently or fraudulently providing
inaccurate income information that affects their benefit levels. 
Despite the lack of complete data, illegal trafficking in food stamps
appears to be pervasive, with coupons often traded as a second
currency.  GAO believes that aggressive on-site monitoring, greater
enforcement, and stiffer penalties are needed to reduce the number of
retailers that traffic in food stamps. 


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

Reducing the Tax Gap:
Results of a GAO-Sponsored Symposium

GAO/GGD-95-157, June 2 (20 pages). 

Experts convened in January 1995 at a GAO symposium on the federal
"tax gap" agreed that major changes to the current tax system were
needed to improve taxpayer compliance with the tax laws.  Available
Internal Revenue Service (IRS) data suggest that taxpayers fail to
pay about 13 percent of the federal income taxes due on income from
legal sources.  Among the recommendations:  make tax laws simpler;
extend the reach of tax requirements, such as income tax withholding,
that promote taxpayer compliance; and improve IRS' ability to resolve
compliance problems quickly.  But as the panelists recognized, any
change that extended the reach of the tax system would also increase
the extent to which the tax system intruded into taxpayers' affairs
and must be carefully weighed. 

Tax Administration:
IRS' Partnership Compliance Activities Could Be Improved

GAO/GGD-95-151, June 16 (33 pages). 

In fiscal year 1992, the number of partnerships totaled about 1.5
million--about the same as in 1981.  During this period, however, the
number of partners nearly doubled from 9.1 million to 15.7 million,
partnership assets rose from $1 trillion to $1.9 trillion, and
partnership net income went from a net loss of $4.1 billion to a net
gain of $42.9 billion.  Between 1988 and 1992, IRS audits of
partnerships decreased by nearly half--from 0.93 percent to 0.50
percent--while audits of corporations more than doubled.  Meanwhile,
IRS in 1989 dropped its program to detect partnerships that have
stopped filing required returns.  This report determines the extent
of partnership compliance with federal tax laws and identifies any
steps IRS is taking to improve partnership compliance and additional
measures that IRS could take to improve
partnership compliance. 


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

Taxpayer Compliance:  Reducing the Income Tax Gap, by Jennie S. 
Stathis, Director of Tax Policy and Administration Issues, before the
House Committee on Ways and Means.  GAO/T-GGD-95-176, June 6 (14
pages). 

One of the biggest challenges facing the Internal Revenue Service
(IRS) is finding ways to reduce the income tax gap--the difference
between income taxes owed and taxes voluntarily paid.  This testimony
makes several points.  First, IRS estimates that taxpayers fail to
voluntarily pay in excess of $100 billion annually in taxes due on
income from legal sources.  IRS information suggests that U.S. 
taxpayers voluntarily pay 83 percent of the income taxes they owe--87
percent after IRS audits and other efforts.  Second, compliance
varies among taxpayers.  Wage earners report 97 percent of their
wages, whereas self-employed persons who operate on a cash basis
report just 11 percent of theirs.  Third, IRS data show that
compliance is highest where tax withholding exists, a little lower
where there is information reporting to IRS, and much lower where
there is neither.  The complexity of tax rules may also influence the
level of tax compliance.  Finally, some of the tax gap may not be
collectible at an acceptable cost.  GAO believes that it is very
important for IRS to invest agency resources in measuring
noncompliance and use that information to balance the competing goals
of (1) maximizing tax revenues, (2) promoting uniform compliance, and
(3) minimizing taxpayer burden. 

Earned Income Tax Credit:  Noncompliance and Potential Eligibility
Revisions, by Lynda D.  Willis, Associate Director for Tax Policy and
Administration Issues, before the Senate Finance Committee. 
GAO/T-GGD-95-179, June 8 (20 pages). 

The earned income tax credit is a major federal effort to help the
working poor.  As of May 1995, 17.3 million returns claimed nearly
$20 billion in earned income credit for tax year 1994.  Over the
years, the credit has been extended to (1) offset the impact of
social security taxes on low-income workers and (2) encourage
low-income persons to seek employment rather than welfare.  Overall
noncompliance with the credit's provisions has not been measured
since 1988.  Nonetheless, noncompliance appears to be a problem. 
Further, although the credit is intended to assist the working poor,
eligibility criteria have not considered all the resources recipients
may be able to draw on to support themselves and their families. 
Finally, no one knows how many illegal aliens receive the credit. 

Tax-Exempt Organizations:  Activities and IRS Oversight, by Natwar M. 
Gandhi, Associate Director for Tax Policy and Administration Issues,
before the Subcommittee on Social Security and Family Policy, Senate
Committee on Finance.  GAO/T-GGD-95-183, June 13 (23 pages); and

Tax-Exempt Organizations:  Additional Information on Activities and
IRS Oversight, by Natwar M.  Gandhi, Associate Director for Tax
Policy and Administration Issues, before the Subcommittee on National
Economic Growth, Natural Resources, and Regulatory Affairs, House
Committee on Government Reform and Oversight.  GAO/T-GGD-95-198, June
29 (27 pages). 

More than one million organizations are approved for tax-exempt
status mainly because of their charitable and educational, social
welfare, or member benefit purposes.  The Internal Revenue Code
allows exemption under 25 categories, including charities, labor
unions, social clubs, and credit unions.  Some, particularly larger
tax-exempt groups, have relied upon service fees and businesslike
activities to finance their operations.  In 1950, the unrelated
business income tax was introduced to address what was seen as
competition between tax-exempt organizations and taxable businesses. 
These two testimonies discuss the activities of tax-exempt
organizations, the revenue resulting from these activities, and the
extent to which the revenue may be subject to the unrelated business
income tax.  GAO focuses on the activities of charitable and
educational organizations and social welfare organizations. 


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

Coast Guard:
Enforcement Under MARPOL V Convention on Pollution Expanded, Although
Problems Remain

GAO/RCED-95-143, May 30 (29 pages). 

As much as 1 million metric tons of garbage and plastics are dumped
into the ocean each year, killing seabirds and marine mammals,
creating safety hazards for shippers and boaters, and polluting
shorelines and beaches.  To mitigate this uncontrolled ocean dumping,
the United States became a party to annex V of the International
Convention for the Prevention of Pollution From Ships--known as
MARPOL V--which restricts the discharge of garbage and plastics from
ships of signatory countries.  However, Congress has repeatedly
expressed concerns about the Coast Guard's enforcement of MARPOL V
provisions.  This report discusses the Coast Guard's progress in
enforcing MARPOL V and determines whether funds that Congress
earmarked for 100 enforcement positions are being used for
MARPOL-related ends.  This report also describes the Coast Guard's
educational and outreach efforts, which are intended to improve
compliance with MARPOL V. 


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

National Airspace System:  Assessment of FAA's Efforts to Augment the
Global Positioning System, by Kenneth M.  Mead, Director of
Transportation Issues, before the Subcommittee on Aviation, House
Committee on Transportation and Infrastructure.  GAO/T-RCED-95-219,
June 8 (14 pages). 

Global positioning system satellites transmit radio signals that
allow properly equipped air, land, and sea users to calculate the
time and their position and speed in any location and weather
condition.  Although the system was designed for military purposes,
the Federal Aviation Administration (FAA) intends to develop wide and
local area systems to augment the global positioning system, enabling
it to satisfy the requirements of civil air navigation.  This
testimony discusses (1) whether FAA will have enough time under its
milestones to augment the system, (2) what steps the agency has taken
to better manage its global positioning system efforts, and (3) what
the implications of delays in implementing the system are. 


Amtrak:  Early Progress Made in Implementing Strategic and Business
Plan, but Obstacles Remain, by Barry T.  Hill, Associate Director for
Transportation and Telecommunications Issues, before the Subcommittee
on Surface Transportation and Merchant Marine, Senate Committee on
Commerce, Science, and Transportation.  GAO/T-RCED-95-227, June 16
(15 pages). 

This testimony discusses Amtrak's progress in implementing its
strategic and business plan.  During the past year, GAO has issued
reports on Amtrak's financial and operating conditions and on the
status of the Northeast Corridor Improvement Project.  GAO also
testified repeatedly before Congress on Amtrak's financial condition
and the prospects for recovery.  GAO continues to monitor Amtrak's
progress as it tries to resolve its current financial crisis and to
reorganize its operations to become more efficient. 


   SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:23

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

GAO/HEHS-95-176W, June 1995 (65 pages). 

This booklet lists GAO documents on governments 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 testimony issued during the past two
months and summarizes key products.  Another section lists all
documents published during the past two years, organized
chronologically by subject.  Order forms are included. 

