Reports and Testimony: July 1996 (Other Written Prod., 07/01/96,
GAO/OPA-96-10).

GAO published its monthly digests of reports and testimonies issued in
July 1996.

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

 REPORTNUM:  OPA-96-10
     TITLE:  Reports and Testimony: July 1996
      DATE:  07/01/96
   SUBJECT:  Energy research
             Financial institutions
             Financial statement audits
             Information resources management
             International relations
             Defense operations
             Currency and coinage
             Managed health care
             Natural resources
             Budget administration
IDENTIFIER:  Bibliographies
             National School Lunch Program
             Postal Service Fund
             Federal Family Education Loan Program
             Pell Grant
             DOL Job Corps Program
             Superfund Program
             EPA National Priorities List
             Capitol Preservation Fund
             Bank Insurance Fund
             Savings Association Insurance Fund
             Federal Savings and Loan Insurance Corporation Resolution 
             Fund
             Social Security Program
             Supplemental Security Income Program
             Medicaid Program
             Federal Telecommunications System 2000
             FTS 2000
             Desert Storm
             F-117 Stealth Fighter
             Tomahawk Cruise Missile
             SDI Theater High Altitude Area Defense System
             Army Chemical Stockpile Emergency Preparedness Program
             Knutson-Vandenberg Trust Fund
             NASA Mission to Planet Earth Program
             Aid to Families with Dependent Children Program
             
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REPORTS AND TESTIMONY:
JULY 1996

GAO/OPA-96-10


Highlights

Resolution Trust Corporation

With the Resolution Trust Corporation's mission to close hundreds of
insolvent thrift institutions now virtually complete, GAO includes in
its annual audit of the RTC a discussion of the historical
perspective and financial implications of the savings and loan
crisis.  Page 9. 

Operation Desert Storm

In an extensive survey of airpower used in Operation Desert Storm,
GAO found that tactical and strategic objectives were best met with a
mix of weapons with a range of capabilities.  GAO also found that
success claims for "smart weapons" were often overstated and
misleading and that infrared, electro-optical, and laser systems were
often degraded by rain, smoke, and fog. 
Page 27. 

Pennies

Should the United States continue to manufacture pennies?  It costs
less than one cent to mint a new penny, but the government loses
money after distribution costs are taken into account.  Other factors
for Congress to consider in deciding the penny's future include the
costs of withdrawing the penny from circulation and job losses for
contractors who supply penny blanks.  Page 15. 

GAO/OPA-96-10



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

  BRAC - x
  CFO - x
  DOD - x
  DOE - x
  EIC - x
  EPA - x
  FDIC - x
  FTS - x
  FORM - x
  GPRA - x
  GSA - x
  HUD - x
  IG - x
  IRS - x
  ITMRA - x
  NASA - x
  NIH - x
  OFHEO - x
  RM&A - x
  RTC - x
  SSA - x
  THAAD - x
  USDA - x
  VA - x

REPORTS AND TESTIMONY:
JULY 1996
=========================================================== Appendix 0


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

School Lunch Program:
Cafeteria Managers' Views on Food Wasted by Students

GAO/RCED-96-191, July 18 (44 pages). 

Under the National School Lunch Program, about 26 million students
nationwide were served lunches daily during fiscal year 1995. 
Federal costs for the program totaled more than $5 billion that
year--about $4.5 billion in cash reimbursements and more than $600
million in commodity foods, such as beef patties, flour, and canned
vegetables.  Although most cafeteria managers GAO surveyed reported
that plate waste in the public schools was not a concern, about
one-quarter of the managers characterized plate waste as at least a
"moderate problem"--particularly at the elementary school level. 
Cafeteria managers strongly agreed on some of the reasons for and
ways to reduce plate waste.  For example, 78 percent cited students'
attention on recess, free time, or socializing rather than eating as
a reason for waste.  Almost 80 percent believed that allowing
students to select only what they want to eat would reduce plate
waste.  Most cafeteria managers were satisfied with the federal
commodities they received for use in the school lunch program. 


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

Budget Issues:
Inventory of Accounts With Spending Authority and Permanent
Appropriations, 1996

GAO/AIMD-96-79, May 31 (173 pages). 

This report updates GAO's 1987 inventory of accounts with spending
authority and permanent appropriations, commonly known as "backdoor
authority." GAO provides information on such accounts and analyzes
the changes in the number and dollar amounts of accounts with
backdoor authority.  It also provides information on each reported
account's status under the Balanced Budget and Emergency Deficit
Control Act--that is, whether it is subject to or exempt from
sequestration or subject to any special rules or limitations. 

Compendium of Budget Accounts:
Fiscal Year 1997

GAO/AIMD-96-113, July 1996 (149 pages). 

Each year, the President submits a budget to Congress.  The
President's budget is not a single object or device but an analysis
and compilation of separate presentations of hundreds of budget
accounts, covering all fiscal activities of the federal government,
including "off-budget" accounts, such as the Social Security trust
funds and the Postal Service fund.  The budget comprises a wealth of
information in a daunting array of schedules, tables, graphs, and
narrative summaries.  The comprehensiveness of the President's budget
is its principal strength, but its sheer size and complexity can be
overwhelming for many readers.  For example, the President's fiscal
year 1997 budget spanned six volumes and contained more than 2,100
pages.  GAO developed this compendium of accounts to give readers a
convenient way to sort through the fiscal structure of the federal
government and to determine the level of budgetary resources--used,
estimated, or requested by fiscal year--for
individual accounts. 


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

Budget Process:  Evolution and Challenges, by Susan J.  Irving,
Associate Director for Budget Issues, before the House Committee on
the Budget.  GAO/T-AIMD-96-129, July 11 (23 pages). 

Everyone involved in the budget process shares some frustration with
it.  The public finds the process confusing.  Executive branch
agencies complain that it is burdensome and time-consuming.  Members
of Congress say that it is too lengthy, with its many votes on
authorizations, the budget resolution, reconciliation,
appropriations, and the debt limit.  And, too often, the results are
not what was expected or hoped for.  This testimony discusses how the
budget process evolved into what it is today and the challenges
Congress faces in the near term.  GAO also discusses some broad
objectives and policy criteria that could be used to analyze the
design of or changes to any budget process. 

Budget Process:  Issues in Biennial Budget Proposals, by Susan J. 
Irving, Associate Director for Budget Issues, before the Subcommittee
on Financial Management and Accountability, Senate Committee on
Governmental Affairs.  GAO/T-AIMD-96-136, July 24 (11 pages). 

GAO believes that multiyear fiscal policy agreements and multiyear
authorizations make a great deal of sense, but they do not require
changing the appropriations decision cycle from annual to biennial. 
Although biennial appropriations could save time for agencies, they
would also result in a shift in congressional control and oversight. 
Proposals to change the process should be viewed partly in the
context of their effect on the relative balance of power in this
debate.  Budgeting always involves forecasting, which is by nature
uncertain.  The longer the period of the forecast, the greater the
uncertainty.  Increased difficulty in forecasting was one of the main
reasons states gave for changing from biennial to annual cycles. 
Dramatic changes in program design or agency structure, such as those
Congress is considering in many areas, will make budget forecasting
harder.  Moving from an annual to a biennial appropriations cycle at
the same time may not be wise because of potential program changes
that could, in turn, create a need for budgeting changes in the
second year of a biennium.  If this happens, biennial budgeting would
exist only in theory.  Biennial appropriations would be neither the
end of congressional control nor the solution to many budget
problems.  The questions for Congress are (1) how does it wish to
exercise its constitutional authority over appropriations?  and (2)
in what forum will it conduct its oversight responsibilities? 


   EDUCATION
--------------------------------------------------------- Appendix 0:3

Department of Education:
Status of Actions to Improve the Management of Student
Financial Aid

GAO/HEHS-96-143, July 12 (108 pages). 

Each year, the Department of Education provides students with
billions of dollars in loans and grants for postsecondary education. 
Concerns have been raised over the years about fraud and abuse in
these student aid programs, especially the Federal Family Education
Loan Program and the Pell Grant Program.  Concerns have also been
expressed about the inadequacy of the Department's procedures for
gatekeeping--determining which schools can participate in these
programs--and program review.  In total, a Senate committee, the
Department's Office of Inspector General, and GAO have made more than
200 recommendations to the Department.  This report discusses (1) the
Department's response to these recommendations and whether the
Department's actions address the recommendations and (2) the reasons
the Department gave for not acting on some recommendations. 



   EMPLOYMENT
--------------------------------------------------------- Appendix 0:4

Job Corps:
Where Participants are Recruited, Trained, and Placed in Jobs

GAO/HEHS-96-140, July 17 (52 pages). 

The Job Corps, a national employment training program run by the
Labor Department, serves about 66,000 participants at 112 centers in
46 states, the District of Columbia, and Puerto Rico.  GAO found that
the Job Corps has the capacity to serve 81 percent of program
participants in their home states--52,000 of 64,000 participants from
states with Job Corps centers could have been assigned to a center in
their state of residence.  About 59 percent of participants were
assigned to centers in their home state; the remaining participants
were sent to centers outside their home state and traveled an average
of more than four times as far as they would have had they been
assigned to the closest center in their state of residence. 
Regardless of where they were trained, however, about 83 percent of
those participants who got jobs were employed in their home state. 


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

Energy Research:
Opportunities Exist to Recover Federal Investment in Technology
Development Projects

GAO/RCED-96-141, June 26 (32 pages). 

The Energy Department (DOE) participates with the private sector in
many cost-shared technology development programs.  A major objective
of these programs is to promote the development and commercialization
of more-efficient, environmentally attractive, and affordable
technologies that will better utilize the nation's energy resources
and enhance opportunities for domestic economic growth and
employment.  This report (1) determines the extent to which DOE
requires repayment of its investment in cost-shared technology
development, including the similarities and differences in the
mechanisms used, and (2) weighs the advantages and the disadvantages
of repayment.  GAO focuses on four DOE offices--Fossil Energy, Energy
Efficiency and Renewable Energy, Environmental Management, and
Nuclear Energy--because they fund most of DOE's cost-shared
technology development programs and projects involving contracts and
cooperative agreements. 

Motor Fuels:
Issues Related to Reformulated Gasoline, Oxygenated Fuels,
and Biofuels

GAO/RCED-96-121, June 27 (64 pages). 

GAO was asked to summarize the results of studies on the cost
effectiveness of using reformulated gasoline (a process in which
oxygenates or ethanol is added to gasoline to enhance combustion and
reduce automotive emissions); the results of studies estimating the
potential for oxygenates to reduce petroleum use; and ongoing federal
research into biofuels.  Studies by the Environmental Protection
Agency (EPA), the American Petroleum Institute, and others suggest
that reformulated gasoline may be cost effective compared to some
automotive emission control measures but less cost effective than
others.  The methodologies used and the results showing the cost
effectiveness of the control measures for these studies vary
significantly, making comparisons very difficult.  About 305,000
barrels per day of the petroleum used to produce gasoline will be
potentially displaced by oxygenates in the year 2000 and about
311,000 barrels per day in 2010 according to projections of oxygenate
use.  The Department of Agriculture (USDA) is focusing research
primarily on reducing the cost of growing and converting agricultural
feedstocks, such as corn, into ethanol.  Data from USDA and the
Department of Energy indicate that research has lowered the cost to
produce ethanol from both cellulosic biomass and from corn.  Although
demand for corn for other purposes may limit cost reductions in
producing ethanol from corn, the demand for ethanol made from
cellulosic biomass for use as an oxygenate and as an alternative fuel
could rise significantly. 

Energy Management:
Technology Development Program Taking Action to
Address Problems

GAO/RCED-96-184, July 9 (14 pages). 

To help clean up and restore its contaminated sites in compliance
with federal and state environmental laws, the Energy Department
(DOE) established the Office of Environmental Management.  Since
1989, the Office has spent $34 billion on cleanups, but schedules
have slipped and progress has been slow.  The Office projected in
1995 that the cleanups could take another 75 years to complete at an
additional cost of up to $350 billion.  According to Office
estimates, innovative cleanup technologies could reduce total cleanup
costs by as much as $80 billion.  The Office began a major
reorganization last year to improve the coordination and management
of the technology development program by creating five "focus areas."
Yet concerns persist that management weaknesses are undermining
progress in environmental cleanup.  This report discusses whether the
Office is managing its technology development program to prevent (1)
unnecessary duplication and overlap and (2) an unwarranted
concentration of projects at some field offices. 

Nuclear Waste:
Uncertainties About Opening Waste Isolation Pilot Plant

GAO/RCED-96-146, July 16 (64 pages). 

The Energy Department (DOE) hopes to begin disposal of nuclear waste
in New Mexico in 1998 but first must obtain a certificate of
compliance with regulations for disposal of radioactive waste from
the Environmental Protection Agency.  Because of unresolved issues
involving this certificate, GAO believes that the prospects for
opening the waste isolation pilot plant by the target date are
uncertain.  Looking farther into the future, DOE estimates that it
will cost about $11 billion over several decades to develop and
operate the facilities and equipment needed to prepare transuranic
waste for shipment to and disposal in the plant.  DOE also plans to
spend nearly $8 billion on waste transportation and disposal
operations at the plant over a 35-year period.  How soon these
facilities will be up and running will depend in great measure on
DOE's ability to obtain funding in a period of budgetary constraints. 
Delays in developing these facilities could force DOE to extend the
period for shipping the waste to the plant and store the waste in the
repository beyond 35 years.  Each additional year it takes to place
waste at the plant could cost about $130 million. 


      TESTIMONY
------------------------------------------------------- Appendix 0:5.1

Federal Power:  Outages Reduce the Reliability of Hydroelectric Power
Plants in the Southeast, by Victor S.  Rezendes, Director of Energy,
Resources, and Science Issues, before the Subcommittee on Water and
Power Resources, House Committee on Resources.  GAO/T-RCED-96-180,
July 25 (28 pages). 

Over a large part of the country, hydroelectric plants run by the
U.S.  Army Corps of Engineers and the Interior Department's Bureau of
Reclamation generate electricity that is sold by the Energy
Department's five power marketing administrations.  This testimony
discusses the extent to which (1) these power plants are experiencing
outages and (2) the current planning and budgeting processes allow
the Corps to perform timely and effective repairs and rehabilitations
of these plants.  GAO focuses on 11 of the Corps' 23 hydroelectric
power plants that generate power marketed by the Southeastern Power
Administration. 


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

Federal Facilities:
Consistent Relative Risk Evaluations Needed for
Prioritizing Cleanups

GAO/RCED-96-150, June 7 (31 pages). 

Both the Environmental Protection Agency (EPA) and federal agencies
that own or operate seriously contaminated facilities help assign
priorities for cleanup under regulations of the Superfund program. 
GAO found that the Superfund program does not fully and consistently
identify the most contaminated federal facilities as the highest
priorities for cleanups.  Some federal agencies have not finished
identifying the universe of contaminated facilities and preliminarily
assessing the extent of their contamination.  In addition, EPA
regions have not completed their evaluations of the facilities that
the agencies have reported to them, and EPA headquarters has not
developed guidance to ensure that the regions consistently evaluate
the most severely contaminated facilities first.  Even after a region
has evaluated a facility and determined that it warrants inclusion on
the National Priorities List--EPA's list of the nation's highest
priorities for further study and possible cleanup--that facility may
be omitted if a state does not agree to the listing or the facility
is being cleaned up under another legal authority. 


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


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

Federal Reserve System:  Current and Future Challenges Require
Systemwide Attention, by Charles A.  Bowsher, Comptroller General of
the United States, before the Senate Committee on Banking, Housing,
and Urban Affairs.  GAO/T-GGD-96-159, July 26 (six pages). 

This testimony discusses GAO's recent report (GAO/GGD-96-128) on the
Federal Reserve System, the most comprehensive review that GAO had
ever undertaken of the Fed's operations.  Fed operating expenses rose
48 percent from 1988 to 1994--double the rate of inflation.  About 70
percent of the Fed's operating expenses were for financial services
to banks and government agencies, such as check clearing and
transfers--services that have no connection with the central bank's
monetary policy.  Monetary and economic policy activities and the
Board of Governors staff accounted for only about 2,300
employees--less than 10 percent of the Fed's total workforce.  The
Fed's main workload today is neither policymaking nor bank
supervision but rather financial services, which include currency
processing, massive check-clearing operations, and funds transfer
systems.  And it is precisely these businesses in which the Fed is
facing growing competition from the private sector.  In fact, the
Fed's market share in the check-clearing business has declined while
its expenses have continued to rise. 

Housing Enterprises:  Assessment of OFHEO's Interest Rate Analysis,
by James L.  Bothwell, Director of Financial Institutions and Markets
Issues, before the Subcommittee on Capital Markets, Securities and
Government Sponsored Enterprises, House Committee on Banking and
Financial Services.  GAO/T-GGD-96-173, July 31 (six pages). 

In July 1996, a congressional committee asked the Office of Federal
Housing Enterprise Oversight (OFHEO) to analyze the potential effects
of a large and rapid increase in interest rates, accompanied by
otherwise unfavorable economic conditions, on the financial health of
Fannie Mae and Freddie Mac.  This testimony reviews OFHEO's analysis
and assesses the reasonableness of the approach and the key
assumptions that OFHEO used in its analysis. 


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

Financial Audit:
Resolution Trust Corporations' 1995 and 1994
Financial Statements

GAO/AIMD-96-123, July 2 (48 pages). 

GAO audited the Resolution Trust Corporation's (RTC) financial
statements for 1995 and 1994 and the related statements of revenues,
expenses, accumulated deficit, and cash flows for those years.  GAO
found that RTC's financial statements were reliable in all material
respects.  Although internal controls could be improved, RTC
management fairly stated that its internal controls effectively
safeguarded assets from material loss, ensured material compliance
with laws and regulations, and ensured that no material misstatements
appeared in the financial statements.  GAO found no reportable
noncompliance with laws and regulations.  Because RTC's mission of
resolving hundreds of insolvent thrifts is coming to an end, GAO also
presents a historical perspective of the savings and loan crisis,
including its financial implications. 

Financial Audit:
Capitol Preservation Fund for Years Ended September 30, 1995 and 1994

GAO/AIMD-96-97, July 5 (13 pages). 

The Capitol Preservation Commission was established in 1988 to help
preserve and make improvements to the United States Capitol. 
Operations of the Commission are paid for out of the Capitol
Preservation Fund, which is sustained through charitable
contributions and the sale of commemorative coins.  GAO audited the
Fund's financial statements for the fiscal years ending September 30,
1995 and 1994 and found that they were reliable in all material
respects.  In addition, there was no material weakness in the Fund's
internal control structure and its operations for those years, and
the Fund complied with laws and regulations. 

CFO Act Financial Audits:
Navy Plant Property Accounting and Reporting Is Unreliable

GAO/AIMD-96-65, July 8 (26 pages). 

In March 1996, GAO reported that the Navy's fiscal year 1994
consolidated financial reports on general fund operations--which
included $78 billion for the Navy's plant property--were
substantially inaccurate because of at least $225 billion in errors,
including upwards of $25.6 billion in errors involving the Navy's
plant property account balances.  (See GAO/AIMD-96-7.) GAO made more
than a dozen recommendations to avoid the mistakes made in preparing
the Navy's fiscal years 1994 consolidated financial reports on
general fund operations.  This report describes in greater detail the
factors contributing to inaccurate reporting of the Navy's plant
property account balance.  The report also recommends additional
measures to ensure that the Navy has reliable information with which
to effectively manage and control the billions of dollars the
government has invested in Navy plant property. 

Financial Audit:
Examination of IRS' Fiscal Year 1995 Financial Statements

GAO/AIMD-96-101, July 11 (70 pages). 

As in earlier years, GAO found it impossible to provide an
affirmative opinion on IRS' principal financial statements for 1995,
internal controls, and IRS' compliance with laws and regulations. 
The following financial management problems prevented GAO from
rendering an opinion:  (1) The amounts of total revenue ($1.4
trillion) and tax refunds ($122 billion) cannot be verified or
reconciled to accounting records maintained for individual taxpayers
in the aggregate.  (2) The amounts reported for taxes collected
(social security, income, and excise taxes, for example) cannot be
substantiated.  (3) The reliability of reported estimates of $113
billion for valid accounts receivable and $46 billion for collectible
accounts receivable cannot be determined.  (4) A significant portion
of the agency's reported $3 billion in nonpayroll operating expenses
cannot be verified.  (5) The amounts IRS reported as appropriations
available for expenditure for operations cannot be reconciled fully
with Treasury's central accounting records showing these amounts, and
hundreds of millions of dollars in differences have been found. 

Financial Audit:
Federal Deposit Insurance Corporation's 1995 and 1994
Financial Statements

GAO/AIMD-96-89, July 15 (79 pages). 

GAO audited the 1995 and 1994 financial statements for three funds
administered by the Federal Deposit Insurance Corporation (FDIC): 
the Bank Insurance Fund, the Savings Association Insurance Fund, and
the Federal Savings and Loan Insurance Corporation Resolution Fund. 
GAO found that the financial statements of each fund, taken as a
whole, were reliable in all material respects.  Although some
internal controls should be improved, FDIC management fairly stated
that its internal controls effectively safeguarded assets from
material loss, ensured compliance with laws and regulations, and
ensured that there were no material misstatements in the financial
statements of the three funds.  There was no reportable noncompliance
with laws and regulations.  FDIC has addressed several internal
control weaknesses GAO identified in its 1994 audits.  However, FDIC
has not fully addressed GAO's concerns regarding weaknesses in
documentation maintained to support asset recovery estimates.  GAO's
1995 audits found continued weaknesses in (1) controls over FDIC's
process for estimating recoveries from failed institution assets, (2)
FDIC's time and attendance reporting process, and (3) FDIC's
electronic data processing controls.  This report also discusses the
recent development of a significant premium rate differential between
insured institutions of the Bank Insurance Fund and the Savings
Association Insurance Fund as a result of the Bank Insurance Fund
attaining its designated capitalization level.  GAO discusses the
impact this premium rate differential may have on the thrift
industry's ability to finance obligations arising from the thrift
crisis of the 1980s and on future deposit insurance premium rates. 


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

U.S.  Postal Service:
Stronger Mail Acceptance Controls Could Help Prevent
Revenue Losses

GAO/GGD-96-126, June 25 (35 pages). 

The Postal Service derived almost half ($23 billion) of its total
mail revenue from bulk business mail in fiscal year 1994.  Mailers
compute the postage owed on each bulk business mailing.  To guard
against accepting improperly prepared mailings, Postal Service clerks
are supposed to verify the accuracy of bulk business mailings. 
Because of weak controls for accepting bulk business mail, however,
the Postal Service cannot be sure that significant amounts of postal
revenue due are received when mailers claim presort/barcode
discounts.  The Postal Service took steps in 1989 and 1990 to manage
its bulk mail acceptance system more effectively.  However, the
system deteriorated after a 1992 reorganization.  With an estimated
$8 billion in discounts allowed in fiscal year 1994, and larger
amounts expected as the Postal Service reclassifies its postage rates
and moves closer to full automation in 1997, sustained top-level
management attention is needed to establish and maintain adequate
controls over bulk business mail acceptance.  Recently, the Postal
Service launched several initiatives to improve the bulk business
mail acceptance system.  Although it is too soon to know whether
these initiatives will correct the Postal Service's internal control
problems, GAO believes that if they are implemented as planned and
monitored appropriately, the initiatives can improve bulk mail
acceptance operations. 


Federal Statistics:
Principal Statistical Agencies' Missions and Funding

GAO/GGD-96-107, July 1 (16 pages). 

Many federal agencies collect and disseminate statistical
information.  Of the federal agencies that spend at least $500,000
per year on statistical activities, 11 collect, analyze, and produce
statistics as their primary mission.  This report identifies (1) the
missions of the principal federal statistical agencies and (2) these
agencies' funding and sources of funding for fiscal years 1994 and
1995. 

Statistical Agencies:
Statutory Requirements Affecting Government Policies
and Programs

GAO/GGD-96-106, July 17 (40 pages). 

GAO was asked to provide a list of legislatively mandated reports
that statistical agencies are to produce for Congress on a regular
basis and the statutory authority for the reports.  The information
was requested to assist congressional consideration of proposals to
consolidate statistical agencies.  This report provides a listing of
authorizing statutes establishing the agencies and confidentiality or
disclosure provisions for the 11 principal statistical agencies, a
listing of these agencies' mandated reporting requirements to
Congress, and a listing of the uses of the agencies' statistical
products in the administration of federal programs. 

Fire-Safe Accommodations:
Information on Federal Agencies' Compliance With P.L.  101-391
Lodging Requirements

GAO/GGD-96-135, July 29 (11 pages). 

Because more than 400 Americans had lost their lives in multistory
hotel fires during the preceding five years, in 1990 Congress passed
the Hotel and Motel Fire Safety Act (P.L.  101-391), which seeks to
save lives and protect property by promoting fire safety in hotels
and motels.  The legislation requires the Federal Emergency
Management Agency to compile a national master list of public
accommodations that meet fire safety guidelines.  Beginning in fiscal
year 1995, federal agencies must ensure that their civilian employees
on official travel spend a certain percentage of nights in these
"approved" accommodations.  Seventy-six of 96 federal agencies
responded to GAO's request for information on their compliance with
that requirement.  Fifty-six agencies reported meeting or exceeding
the 65-percent requirement.  Six agencies reported that they did not
meet that threshold.  Fourteen agencies reported that, for various
reasons, they did not gather the data needed to determine and report
their approved accommodations percentage for fiscal year 1995. 
Twenty agencies did not respond to GAO's request for information.


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

District Government:  Information on Its Fiscal Condition and the
Authority's First Year of Operations, by Gregory M.  Holloway,
Director of Governmentwide Audits, before the Subcommittee on the
District of Columbia, House Committee on Appropriations. 
GAO/T-AIMD-96-126, July 9
(60 pages). 

This testimony focuses on the District of Columbia's financial
condition and the efforts of the D.C.  Financial Responsibility and
Management Assistance Authority to resolve the financial and
management problems confronting the District.  GAO discusses (1)
financial and budget trends in the District's revenue flows and
expense patterns, comparing and contrasting the District's historical
experience through fiscal year 1995 with its enacted and proposed
budgets for fiscal years 1996 and 1997; (2) the District's current
cash position; and (3) the experiences of the New York City and the
Philadelphia control boards and the Authority.  GAO also provides
background information and its preliminary thoughts on the District's
financial management system. 

Governmentwide Travel Management:  Views on the Proposed Travel
Reform and Savings Act, by Jack L.  Brock, Jr., Director of
Information Resources Management Issues, before the Subcommittee on
Government Management, Information and Technology, House Committee on
Government Reform and Oversight.  GAO/T-AIMD-96-127, July 9 (six
pages). 

Travel is one of the many government functions that, through the
adoption of best private sector practices and aggressive
streamlining, can yield substantial savings to taxpayers.  The
proposed Travel Reform and Savings Act takes a major step toward
adopting the best practices of other organizations.  Not only will
the legislation improve service to government travelers, it will also
help reduce travel costs.  This testimony highlights the
legislation's key provisions, summarizes earlier GAO work and
discusses how it relates to the legislation, and provides GAO's views
on the legislation and raises concern about a provision found in the
Senate version. 

Managing for Results:  Key Steps and Challenges in Implementing GPRA
in Science Agencies, by L.  Nye Stevens, Director of Federal
Management and Workforce Issues, before the House Committee on
Science.  GAO/T-GGD/RCED-96-214, July 10 (15 pages). 

The landmark Government Performance and Results Act (GPRA) requires
federal agencies to set goals and measure performance.  GAO work has
shown that the effectiveness of the Energy Department, NASA, and a
host of other agencies has been hampered by unfocused missions and
unclear goals.  If successfully implemented in the civilian science
agencies, GPRA should help Congress make the hard science policy and
program choices.  GPRA will also help agencies better manage their
programs and provide the public with greater assurance that tax
dollars are being spent wisely.  But the changes in management and
accountability envisioned under GPRA are not coming quickly or
easily, particularly in the science agencies.  Successful
implementation of GPRA in those agencies may well depend on continued
congressional support and interest. 

Future of the Penny:  Options for Congressional Consideration, by
J.  William Gadsby, Director of Government Business Operations
Issues, before the Subcommittee on Domestic and International
Monetary Policy, House Committee on Banking and Financial Services. 
GAO/T-GGD-96-153, July 16 (25 pages). 

In reviewing whether the United States should continue to produce the
penny, GAO found that several factors, including government costs,
public attitudes, budgetary and operational consequences for the Mint
and its contractors, and the fairness of rounding prices to the
nearest 5-cent increment, warrant congressional consideration.  Among
key findings, GAO found that although it costs less than a penny to
mint a penny, the government in 1994 lost between $8 million and $9
million after costs involved in distributing pennies were taken into
account.  Public opinion on the penny is mixed:  a GAO poll found
that most Americans prefer rounding to using pennies, but a similar
number believe that the penny is useful and should be retained. 

Civil Service Reform:  Redress System Implications of the Omnibus
Civil Service Reform Act of 1996, by Timothy P.  Bowling, Associate
Director for Federal Management and Workforce Issues, before the
Subcommittee on Civil Service, House Committee on Government Reform
and Oversight.  GAO/T-GGD-96-160, July 16 (12 pages). 

In commenting on an outline of proposed legislation to reform the
redress system for federal employees, GAO noted that the current
system--which is designed to protect federal workers against
arbitrary agency actions and such prohibited personnel practices as
discrimination or retaliation for whistleblowing--has become
increasingly complex, with overlapping jurisdiction among four
adjudicatory agencies.  The current system provides substantially
greater employment protection to federal workers than those accorded
to private sector employees, and federal employees file workplace
discrimination complaints at six times the per capita rate of private
sector workers.  The pending legislation would eliminate the current
ability of federal employees to have two agencies review an appeal
rather than one; would bring discrimination complaint processes more
in line with the private sector model; and would encourage federal
workers to use alternative dispute resolution as a way to avoid the
time and expense of employee litigation. 

General Services Administration:  Observations on GSA's
Implementation of the Federal Operations Review Model, by J.  William
Gadsby, Director of Government Business Operations Issues, before the
Subcommittee on Public Buildings and Economic Development, House
Committee on Transportation and Infrastructure.  GAO/T-GGD-96-151,
July 18 (6 pages). 

GAO was asked to monitor the General Services Administration's (GSA)
implementation of the Federal Operations Review Model (FORM), which
GSA developed to help identify the most cost-effective methods of
carrying out each of its 16 major mission-support functions or
business lines.  GAO found no reason to question the view of the GSA
Office of Inspector General (IG) that, although GSA's implementation
of the preliminary phase generally followed the prescribed FORM
process, it contained several weaknesses involving the consistent
application of assumptions, the sufficiency of--and in some cases the
absence of--relevant data, the appropriateness of cost estimates, and
financial calculation errors.  Similarly, the IG's observation that
the data in initial FORM analysis reports should not be relied upon
as the primary basis for making final decisions about privatizing or
outsourcing specific business lines seems reasonable--particularly
because phase one was to be followed by a more in-depth second
analysis. 

District of Columbia:  Information on Its Fiscal Condition, by
Gregory M.  Holloway, Director for Governmentwide Audits, before the
Subcommittee on the District of Columbia, House Committee on
Government Reform and Oversight.  GAO/T-AIMD-96-133, July 19 (33
pages). 

This testimony discusses the results of GAO's review of the financial
condition of the District of Columbia.  It compares and contrasts the
District's historical experience through fiscal year 1995 with its
enacted and proposed budgets for fiscal years 1996 and 1997.  Also
discussed is the District's current cash position.  GAO focused
specifically on the District's cash position at the end of fiscal
year 1995, as adjusted through March 31, 1996.  GAO also reviewed
what actions New York City (beginning in June 1975) and Philadelphia
(beginning in June 1991) and their respective control boards took to
respond to their cash shortages. 


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

Practice Guidelines:
Managed Care Plans Customize Guidelines to Meet Local Interests

GAO/HEHS-96-95, May 30 (16 pages). 

Inappropriate use of medical services can be costly and raise quality
of care concerns.  For example, a 1988 study found that 14 percent of
bypass surgeries were performed inappropriately.  To narrow the gap
between current and optimal practice, some federal agencies and other
groups develop clinical practice guidelines on the best practices for
effective and appropriate care.  Managed care plans, which employ
various techniques intended to reduce inappropriate care, are likely
sites of guideline use.  This report discusses (1) the purposes
clinical practice guidelines serve and (2) how health plans make use
of already published guidelines developed by federal agencies and
other groups. 

NIH Extramural Research:
Internal Controls Are Key to Safeguarding Phase III Trials
Against Misconduct

GAO/HEHS-96-117, July 11 (22 pages). 

In fiscal year 1995, the National Institutes of Health (NIH)
sponsored about $9 billion in extramural research--research done by
groups outside of NIH.  About $1.2 billion was spent on Phase III
clinical trials, which usually involve hundreds of human participants
to evaluate experimental treatments.  In the early 1990s, disclosure
that falsified data had been used in a large Phase III trial looking
at alternative treatments for breast cancer raised concern that the
results of this multimillion dollar trial had been compromised.  This
report discusses NIH's oversight responsibilities and internal
controls used to prevent and detect misconduct in Phase III clinical
trial research.  GAO also reviews NIH's approach to monitoring
performance of its institutes that sponsor clinical trials and
efforts to implement agencywide policy on misconduct in research. 

Medicaid:
Waiver Program for Developmentally Disabled Is Promising But Poses
Some Risks

GAO/HEHS-96-120, July 22 (48 pages). 

More than 300,000 adults with developmental disabilities--typically
mental retardation--receive long-term care paid for by Medicaid or,
to a lesser extent, state and local programs.  Such long-term care
often involves supervision and assistance with everyday activities,
such as dressing or managing money.  Persons with developmental
disabilities receive more than $13 billion annually in public funding
for long-term care, second only to the elderly.  Recently, states
have begun to significantly expand the use of the Medicaid waiver
program, which seeks to provide alternatives to institutional care
for persons with developmental disabilities.  The waiver program has
two advantages.  First, it helps states to control costs by allowing
them to limit the number of recipients being served.  In contrast,
states must serve all eligible persons in the regular Medicaid
program.  Second, it permits states to meet the needs of many persons
with developmental disabilities by offering them a broader range of
services in less restrictive settings, such as group or family homes,
rather than in an institutional setting.  This report examines (1)
expanded state use of the waiver program, (2) the growth in long-term
care costs for individuals with developmental disabilities, (3) how
costs are controlled, and (4) strengths and limitations in states'
approaches to ensuring quality in community settings. 

Medicaid Managed Care:
Serving the Disabled Challenges State Programs

GAO/HEHS-96-136, July 31 (66 pages). 

With its emphasis on primary care, restricted access to specialists,
and control of services, managed care is seen as a way to control
spiraling Medicaid costs, which totaled $159 billion in fiscal year
1995.  So far, states have extended prepaid care largely to
low-income families--about 30 million persons--but to few of the
additional six million Medicaid beneficiaries who are mentally or
physically disabled.  Managed care's emphasis on primary care and
control of services is seemingly at odds with the care requirements
of disabled beneficiaries, many of whom need extensive services and
access to highly specialized providers.  However, because more than
one-third of all Medicaid payments go for the care of the disabled,
policymakers have been exploring the possibility of enrolling
disabled persons in managed care plans.  These efforts affect three
key groups:  disabled beneficiaries, who include a small number of
very vulnerable persons who may be less able to effectively advocate
on their own behalf for access to needed services; prepaid care
plans, which are concerned about the degree of financial risk in
treating persons with extensive medical needs; and the state and
federal governments, which run Medicaid.  This report examines (1)
the extent to which states are implementing Medicaid prepaid managed
care programs for disabled beneficiaries and (2) the steps that have
been taken to safeguard the interests of all three groups.  GAO's
review of safeguards focuses on two areas:  efforts to ensure quality
of care and strategies for setting rates and sharing financial risk. 


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


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

Public Housing:  HUD's Takeover of the Housing Authority of New
Orleans, by Judy A.  England-Joseph, Director of Housing and
Community Development Issues, before the Subcommittee on Housing
Opportunity and Community Development, House Committee on Banking,
Housing, and Urban Affairs.  GAO/T-RCED-96-212, July 8 (10 pages). 

This testimony discusses the operational problems at the Housing
Authority of New Orleans, some of the causes of those problems, and
the Department of Housing and Urban Development's (HUD) attempts over
the years to correct them.  This testimony summarizes GAO's May 1996
report (GAO/RCED-96-67) that described the events leading to HUD's
takeover of the Housing Authority of New Orleans. 

Multifamily Housing:  Issues Facing the Congress in Assessing HUD's
Portfolio Reengineering Proposal, 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-96-231, July 26 (24
pages); and

Multifamily Housing:  HUD's Portfolio Reengineering Proposal--Cost
and Management Issues, by Judy A.  England-Joseph, Director of
Housing and Community Development Issues, before the Subcommittee on
Human Resources and Intergovernmental Relations, House Committee on
Government Reform and Oversight.  GAO/T-RCED-96-232, July 30 (33
pages). 

Congress is considering proposals to reengineer about 8,600
properties from the Department of Housing and Urban Development's
(HUD) multifamily rental housing portfolio.  These 8,600
properties--known as the insured Section 8 portfolio--receive
mortgage insurance through HUD and Section 8 rental subsidies that
are tied directly to the properties.  Last year, HUD proposed a
process called "mark-to-market" that was aimed at addressing such
problems as high Section 8 assistance costs and the poor physical
condition of many properties.  In early 1996, HUD modified that
process in response to stakeholders' concerns and renamed it
"portfolio reengineering." This testimony discusses (1) the problems
afflicting the portfolio, (2) HUD's plans for overcoming these
problems, (3) a HUD-contracted study by Ernst & Young LLP that
estimates how the properties are likely to be affected by HUD's
reengineering proposal, (4) GAO's preliminary assessment of Ernst &
Young's study, and (5) issues that Congress should consider in
deciding how to respond to
HUD's proposal. 


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

SSA Disability:
Return-to-Work Strategies From Other Systems May Improve Federal
Programs

GAO/HEHS-96-133, July 11 (88 pages). 

Between 1985 and 1994, the number of working-age people in the Social
Security Administration's (SSA) disability insurance and supplemental
security income programs rose 59 percent, from 4 million to 6.3
million.  Concern about such growth has been compounded by the fact
that less than half of one percent of disability insurance
beneficiaries ever leave the disability rolls and return to work.  A
recent GAO report (GAO/HEHS-96-62)
urged SSA to place more emphasis on return-to-work efforts.  If an
additional one percent of the 6.3 million beneficiaries were to leave
SSA's disability rolls and return to work, lifetime cash benefits
would be reduced by nearly $3 billion.  The magnitude of disability
costs in the workplace has spurred companies to develop strategies to
return disabled employees to the workplace--an effort that can help
businesses reduce costs, such as disability benefit payments and
disability insurance premiums.  This report discusses (1) key
practices used in the U.S.  private sector to return disabled
employees to the workplace and (2) examples of how other countries
implement return-to-work strategies for disabled persons. 


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

Social Security Administration:  Effective Leadership Needed to Meet
Daunting Challenges, by Charles A.  Bowsher, Comptroller General of
the United States, before the Subcommittee on Social Security, House
Committee on Ways and Means.  GAO/T-OCG-96-7, July 25 (19 pages). 

With a staff of 64,000, the Social Security Administration (SSA) runs
the largest federal program--Social Security--as well as the largest
cash welfare program--Supplemental Security Income.  The agency's
expenditures totaled $363 billion in fiscal year 1995, almost
one-fourth of the $1.5 trillion federal budget.  This testimony
discusses the difficult challenges facing SSA in the coming decades: 
taking part in the debate over future financing of Social Security;
encouraging disability recipients to return to work; reducing fraud
and abuse; and managing workforce and technology investments so that
it can meet the needs of America's retired, disabled, and poor. 


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

Prescription Drugs and Medicaid:
Automated Review Systems Can Help Promote Safety, Save Money

GAO/AIMD-96-72, June 11 (31 pages). 

Inappropriate use of prescription drugs can lead to drug-induced
illness, hospitalization, and even death.  Inappropriate drug use can
also prove expensive for the Medicaid program.  As a result, Congress
mandated that states establish utilization review programs--called
prospective reviews--to review Medicaid prescriptions before drugs
are dispensed.  Automated prospective drug utilization review systems
are proving a low-cost way for states to help both doctors and
pharmacies safeguard Medicaid recipients from potentially harmful
medical reactions.  Although the main emphasis of these
systems--appropriately--has been safety, both safety benefits and
dollar savings accrue from their use.  Because results vary on the
basis of how such systems are administered, it is important that
states share their experiences.  Absent any analysis of data from the
Iowa demonstration project or any concerted effort by the Health Care
Financing Administration to collect and share other states'
experiences, states have had only limited access to both safety and
cost data--information that is critical to informed decisionmaking
and to maximizing the effectiveness and efficiency of automated
prospective drug utilization review systems. 

Telecommunications:
Costs Reported by Federal Organizations for Fiscal Year 1995

GAO/AIMD-96-105, June 17 (70 pages). 

In a May 1996 report (GAO/AIMD-96-95), GAO identified agencies that
are using the Federal Telecommunications System (FTS) 2000 and
compared telecommunications costs between agencies that used FTS 2000
and those that did not.  This report provides additional information
on governmentwide telecommunications costs.  GAO surveyed 42 federal
agencies and totaled their fiscal year 1995 telecommunications costs,
broken out by the following five categories:  FTS 2000 services,
non-FTS 2000 long-distance services, local telecommunications
services, wireless services, and telecommunications support contract
services.  GAO also discusses reported local access costs generally
associated with FTS 2000 telephone calls and the government's
reported fiscal year 1995 costs for the Purchase of
Telecommunications and Services. 

Information Management:
Energy Lacks Data to Support Its Information System
Streamlining Effort

GAO/AIMD-96-70, July 23 (17 pages). 

In the past, GAO reported that the Energy Department (DOE) had spent
considerable sums to develop and operate duplicate information
systems that supported its environmental management and other
programs.  This report discusses problems that could impair DOE's
ability to eliminate duplicate information systems as it streamlines
its information systems.  DOE has developed a baseline inventory of
data on specific systems used by the Department and its contractors. 
However, the inventory is substantially incomplete and lacks enough
information describing the systems' functional capabilities.  As a
result, the inventory will not be adequate to help eliminate
duplicate information systems as part of the streamlining effort. 
The data deficiencies exist largely because DOE has allowed its
contractors wide latitude in developing and implementing software
inventory procedures and standards and has not required them to
follow its software management guidance.  As a result, these
contractors do not consistently develop and maintain information on
their systems and use varying methods to classify systems according
to their functions
and capabilities. 

Consumer Health Informatics:
Emerging Issues

GAO/AIMD-96-86, July 26 (42 pages). 

Technology has increased the amount of health information available
to the public, allowing consumers to become better educated and more
involved in their own health care.  Government and private health
care organizations rely on a variety of technologies to disseminate
health information on preventive care, illness and injury management,
treatment options, post-treatment care, and other topics.  This
report discusses consumer health informatics--the use of computers
and telecommunications to help consumers obtain information, analyze
their health care needs, and make decisions about their own health. 
GAO provides information on (1) the demand for health information and
the expanding capabilities of technology; (2) users' and developers'
views on potential systems advantages and issues surrounding systems
development and use; (3) government involvement--federal, state, and
local--in developing these technologies; and (4) the status of
related efforts by the Department of Health and Human Services.  As
part of this review, GAO surveyed consumer health informatics experts
and presents their views on issues that need to be addressed when
developing consumer health information systems.  GAO summarized this
report in testimony before Congress; see: 

Consumer Health Informatics:  Emerging Issues, by Patricia T. 
Taylor, Director of Information Resources Management Issues, before
the Subcommittee on Human Services and Intergovernmental Relations,
House Committee on Government Reform and Oversight. 
GAO/T-AIMD-96-134, July 26 (13 pages). 


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

Information Management Reform:  Effective Implementation Is Essential
for Improving Federal Performance, by Christopher Hoenig, Director
for Information Resources Management Policies and Issues, before the
Subcommittee on Oversight of Government Management and the District
of Columbia, Senate Committee on Governmental Affairs. 
GAO/T-AIMD-96-132, July 17 (12 pages). 

On the whole, the federal government's track record in delivering
high value information technology solutions at acceptable cost is not
good.  Federal agencies lack adequate processes and reliable data to
manage investments in information technology.  The Information
Technology Management Reform Act (ITMRA) of 1996 requires significant
changes in the way that government agencies manage and acquire
information technology.  The act emphasizes senior executive
involvement in information management decisions, the establishment of
Chief Information Officers as members of executive management teams,
investment control and capital planning, process reengineering, and
the use of performance measures to ensure accountability for spending
on information technology.  Once agencies begin to implement ITMRA,
Congress should have a much clearer understanding of how information
technology expenditures can benefit agencies' performance. 
Governmentwide, success rates should be higher for information
technology projects completed within reasonable time frames, at
acceptable costs, and with positive net rates of return on
investment. 


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

Haiti:
U.S.  Assistance for the Electoral Process

GAO/NSIAD-96-147, July 5 (30 pages). 

This report reviews U.S.  efforts to foster democratic elections and
greater respect for human rights in Haiti.  GAO discusses (1) how the
elections in Haiti were conducted, (2) the nature and the extent of
U.S.  support for these elections, and (3) whether election
assistance funds for Haiti were properly controlled and spent.  GAO
also assesses Haiti's progress in investigating allegations of
politically motivated killings. 

Bosnia:
Costs Are Exceeding DOD's Estimate

GAO/NSIAD-96-204BR, July 25 (36 pages). 

The costs of deploying U.S.  troops in and around Bosnia as part of
international peacekeeping operations spanning fiscal years 1996 and
1997 could exceed the Defense Department's (DOD) initial estimate of
$3 billion by more than $450 million, and further increases are
possible.  DOD has so far deployed about 22,000 troops to Bosnia and
surrounding countries in an effort to end years of hostilities in the
former Yugoslavia.  DOD's costs for fiscal year 1997 will likely
exceed the current estimates and depend heavily on upcoming decisions
on force requirements and redeployment. 


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

U.S.  Export Assistance Centers:  Customer Service Enhanced, but
Potential to Improve Operations Exists, by JayEtta Z.  Hecker,
Associate Director for International Relations and Trade Issues,
before the Subcommittee on Procurement, Exports and Business
Opportunities, House Committee on Small Business. 
GAO/T-NSIAD-96-213, July 25 (21 pages). 

This testimony discusses efforts by the Department of Commerce, the
U.S.  Export-Import Bank, and the Small Business Administration to
create a nationwide network of "one-stop shops," called U.S.  Export
Assistance Centers.  These shops are intended to provide exporters
with information on all U.S.  government export promotion and export
finance services, help exporters identify which federal programs may
be of greatest assistance, and help exporters contact those federal
programs.  GAO discusses the benefits realized at the first four
pilot centers, located in Baltimore, Chicago, Los Angeles, and Miami,
as well as opportunities to improve
their operations. 

International Trade:  Challenges and Opportunities for U.S. 
Businesses in China, by JayEtta Z.  Hecker, Associate Director for
International Relations and Trade Issues, before the House Committee
on Banking and Financial Services.  GAO/T-NSIAD-96-214, July 29 (19
pages). 

After 15 years of economic reform, the Chinese economy has become one
of the fastest-growing in the world.  However, although China has
moved toward a quasi-market system, significant trade barriers
persist.  This testimony discusses (1) China as a potential market
for U.S.  businesses, highlighting sectors in which economic
expansion will require foreign expertise and equipment; (2)
challenges U.S.  businesses face in gaining market access to China,
as well as the concerns of some firms now operating there; and (3)
World Bank efforts to help Chinese commercial standards meet
international norms, with special emphasis on the importance of
reforming China's banking and financial services sector. 

International Relations:  Food Security in Africa, by Harold J. 
Johnson, Associate Director for International Relations and Trade
Issues, before the Subcommittee on African Affairs, Senate Committee
on Foreign Relations.  GAO/T-NSIAD-96-217, July 31 (29 pages). 

Food security exists when people have physical and economic access to
enough food so that their dietary needs are met and they can lead
productive and healthy lives.  Food security includes several
dimensions, including availability (when enough supplies of food of
appropriate quality are consistently available to all persons);
access (when households have adequate resources to buy foods that are
part of a nutritious diet); and utilization (the proper biological
uses of food through adequate diet, water, sanitation, and health
care).  This testimony discusses (1) the current status and future
outlook for world food security in general, (2) Africa's food
security dilemma in particular, (3) U.S.  food aid and food aid
programs, and (4) the World Food Summit scheduled for November 1996. 


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

Preventing Child Sexual Abuse:
Research Inconclusive About Effectiveness of Child
Education Programs

GAO/GGD-96-156, July 26 (21 pages). 

A growing number of studies are being done on the effectiveness of
child sexual abuse education programs.  The most optimistic reviews
have concluded that education programs showed some promise for
informing children about sexual abuse, as well as teaching them
personal safety skills to help them avoid being abused.  However,
nearly all these reviews reported that definitive conclusions could
not be drawn because no study had yet developed measures of whether
these programs succeeded in reducing the incidence of child sexual
abuse.  There was general agreement that more and better research was
needed to demonstrate the effectiveness of sexual abuse education
programs.  GAO issued a related report in June 1996 on the
effectiveness of treatment programs for sex offenders
(GAO/GGD-96-137). 


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

Operation Desert Storm:
Evaluation of the Air War

GAO/PEMD-96-10, July 2 (26 pages). 

The 43-day air campaign during Operation Desert Storm was the first
large use of U.S.  air power since Vietnam.  The Air Campaign
employed nearly every type of fixed-wing aircraft in the U.S. 
inventory, flying about 40,000 air-to-ground and 50,000 support
sorties.  About 1,600 U.S.  combat aircraft were deployed by the end
of the war.  By historical standards, the intensity of the air
campaign was substantial:  The U.S.  bomb tonnage dropped per day
equaled 85 percent of that dropped by the United States on Germany
and Japan during World War II.  The air campaign incurred minimal
casualties and resulted in the liberation of Kuwait and the collapse
of Iraqi forces.  However, GAO's analysis of the air campaign
revealed several issues that should be addressed before the next
military campaign.  For example, pilots found that infrared,
electro-optical, and laser systems were all seriously affected by
clouds, rain, fog, smoke, and even high humidity.  Pilots said that
they were sometimes unable to tell whether a presumed target was a
tank or a truck or whether it had already been destroyed.  Meanwhile,
the Pentagon and defense contractors have made overstated and
misleading claims about the weapons used during the air campaign,
particularly the F-117 stealth fighter, the Tomahawk cruise missile,
and laser-guided bombs.  GAO questions the military's increased
reliance on precision guided munitions given their limited
effectiveness during the Persian Gulf War. 

Ballistic Missile Defense:
Issues Concerning Acquisition of THAAD Prototype System

GAO/NSIAD-96-136, July 9 (16 pages). 

The Ballistic Missile Defense Organization and the Army plan to
acquire a Theater High Altitude Area Defense (THAAD) User Operational
Evaluation System--an early prototype version of the final THAAD
system.  The Army now plans to buy 40 interceptors well before
testing ensures the User Operational Evaluation System's
capabilities, even though the THAAD program has already experienced
significant cost, schedule, and technical performance problems.  As a
result, the Defense Department risks acquiring a system that might
not be worth deploying in an emergency.  GAO also found that (1) the
contractor's cost estimate for the interceptors has more than doubled
since 1992 and is likely to increase further and (2) test schedule
slippage, increase delivery lead times, and funding limitations have
delayed the availability of the interceptors by about two years. 
Furthermore, airborne deployment of the Use Operational Evaluation
System may be difficult because it must compete with other military
hardware for scarce airlift resources. 

Defense Budget:
Trends in Active Military Personnel Compensation Accounts
for 1990-97

GAO/NSIAD-96-183, July 9 (29 pages). 

The Defense Department's (DOD) budget request for fiscal year 1997
includes nearly $70 billion for pay and allowances for military
personnel.  This amount represents about 30 percent of DOD's total
budget request.  DOD projects that during the next five years, pay
and allowances will remain about 30 percent of its total budget. 
This report (1) identifies the various pay categories included in the
accounts, (2) describes the trends of those pay categories, and (3)
determines how changes in the budget compared with changes in service
force levels.  GAO also discusses the reasons for some of the service
trends and differences among the services. 

Defense Research and Development:
Federal Centers' 1993 Compensation in Relation to Federal Levels

GAO/NSIAD-96-140, July 10 (19 pages). 

This report provides information on the professional staff, managers,
and executives of the Defense Department's Federally Funded Research
and Development Centers.  GAO reviews fiscal year 1993 costs for
salaries, other cash compensation, and benefits to determine total
compensation for the centers and identifies the federal levels that
contained the average compensation paid by the centers to their
personnel. 

Physically Demanding Jobs:
Services Have Little Data on Availability of Personnel to Perform

GAO/NSIAD-96-169, July 9 (15 pages). 

This report reviews the use and development of gender-neutral
occupational performance standards in the military.  GAO (1)
discusses the military services' approaches to implementing
gender-neutral performance standards and screening servicemembers to
ensure that they can meet the physical demands of their jobs, (2)
discusses how the military services identified the extent to which
servicemembers had problems in accomplishing the physical demands of
their jobs, and (3) evaluated the Air Force's implementation of its
strength aptitude testing program. 

Inventory Management:
Adopting Best Practices Could Enhance Navy Efforts to Achieve
Efficiencies and Savings

GAO/NSIAD-96-156, July 12 (32 pages). 

This report is part of a series comparing the Defense Department's
(DOD) logistics practices with those of the private sector.  Although
DOD has introduced some innovative practices, many opportunities
exist for improving the logistics system.  This report focuses on the
Navy's logistics system for aircraft parts.  GAO (1) examines the
current performance of the Navy's logistics system, (2) reviews the
Navy's efforts to improve its logistics system and reduce costs, and
(3) examines leading best practices used by the airline industry that
could potentially help the Navy bolster the efficiency and
effectiveness of its logistics operations. 

Military Bases:
Potential Reductions to the Fiscal Year 1997 Base Closure Budget

GAO/NSIAD-96-158, July 15 (15 pages). 

A review of the Defense Department's (DOD) Base Realignment and
Closure (BRAC) accounts indicates that Congress has little assurance
that appropriated BRAC funds will be used as requested in DOD budget
submissions.  BRAC expenditures vary substantially from budget
submissions.  In past budget submissions, environmental costs have
been understated while costs for other BRAC subaccounts, such as
military construction and operation and maintenance, have been
overstated.  The DOD fiscal year 1997 budget request can be reduced
by about $148 million (about 6 percent) because funds from prior year
appropriations will be available to fund future expenditures. 
Additional reductions are possible because mandated annual DOD
Inspector General (IG) audits of BRAC construction projects identify
projects that can be eliminated or reduced in scope.  If the fiscal
year 1997 IG audit identifies reductions in the projects
proportionate to the reductions identified in 1996 and 1995, the
amount would be about $60 million. 

Defense Depot Maintenance:
Commission on Roles and Mission's Privatization Assumptions
Are Questionable

GAO/NSIAD-96-161, July 15 (23 pages). 

GAO questions the assumption made by the Commission on Roles and
Missions that privatizing all Defense Department (DOD) depot
maintenance activities would save 20 percent and not harm readiness
or sustainability.  The Commission's assumptions are based on
conditions that do not now exist for many depot workloads.  The
extent to which DOD's long-term privatization plans and market forces
will effectively create more favorable conditions for outsourcing is
uncertain.  The Commission assumed that a highly competitive and
capable market exists or would develop for most depot workloads. 
However, most of the depot workloads contracted to the private sector
are awarded noncompetitively--mostly to the original equipment
manufacturer.  Moreover, several factors would likely limit private
sector competition for many workloads now in the public depots. 
Without highly competitive and capable private sector markets, the
cost and readiness risks of privatizing depot maintenance workloads
may prove unacceptable.  Furthermore, the Commission's privatization
savings do not reflect the cost impact of excess capacity in the
public depots.  The Commission also assumed that public-private
competitions would be used in the absence of private sector
competition and would be limited to only a few cases.  GAO found that
public-private depot maintenance competitions have resulted in
savings and benefits and can provide a cost-effective way to make
depot workload allocation decisions for some workloads.  The
beneficial use of such competitions could have significantly more
applicability than the Commission assumed. 

Chemical Weapons Stockpile:
Emergency Preparedness in Alabama Is Hampered by
Management Weaknesses

GAO/NSIAD-96-150, July 23 (81 pages). 

Eight years after the inception of the Army's Chemical Stockpile
Emergency Preparedness Program, communities near the Anniston Army
Depot in Alabama are not prepared to respond to a chemical stockpile
emergency because they lack critical items, including communication
warning systems and protective equipment for emergency workers. 
Alabama and six counties have yet to spend $30.5 million--about
two-thirds of the $46 million earmarked for improvements in emergency
preparedness.  This lack of progress is the result of management
weaknesses at the federal level and inadequate action by state and
local agencies.  The situation in Alabama may not be unique, however. 
GAO has found that local communities near the eight chemical weapons
storage sites in the United States are not fully prepared to respond
to a chemical emergency, financial management is weak, and costs are
mounting. 

C-17 Aircraft:
RM&A Evaluation Less Demanding Than Initially Planned

GAO/NSIAD-96-126, July 26 (22 pages). 

The Air Force reported that the C-17 transport aircraft met or
exceeded 10 of the 11 contract specification requirements during its
reliability, maintainability, and availability (RM&A) evaluation. 
However, the evaluation was less demanding than the one called for in
a draft 1992 plan.  The reduced rigor stemmed primarily from changes
in the number of aircraft sorties, average sortie length, and total
flying hours.  The evaluation was also less demanding because it had
fewer airdrops and landings at small, austere airfields than
originally planned and flew cargo loads that were significantly
lighter than projected in the contract specifications.  The RM&A
evaluation was not a statistically valid test for determining C-17
wartime utilization rates and did not prove what a mature C-17 fleet
would do during 45 days of wartime surge operations.  It simply
demonstrated that a high utilization rate could be achieved during a
48-hour period.  Finally, in awarding the incentive fee, the Air
Force credited the C-17 aircraft with meeting the full mission
capable rate goal.  During the RM&A evaluation, however, the aircraft
was restricted from performing formation personnel airdrop under
realistic conditions and was rated not functionally effective for
aeromedical evacuation.  As a result, the $5.91 million incentive fee
was $750,000 higher than justified. 

Defense Management:
Information on Selected Aspects of DOD's Jet Fuel Programs

GAO/NSIAD-96-188, July 31 (20 pages). 

Under its bulk fuel program, the Defense Logistics Agency buys jet
fuel from commercial suppliers and transports it via trucks,
pipelines, barges, and railroads to military installations for use by
military aircraft.  The into-plane program involves individual
contracts between the Defense Fuel Supply Center and fixed-base
operators who provide jet fuel at contractually set prices.  These
prices are generally less than commercial prices charged at civilian
airports.  This report discusses (1) the pricing policies, rules, and
regulations used for both fuel programs and whether the cost factors
used for each are consistent with applicable policies; (2) whether
bulk fuel usage and into-plane sales have changed in recent years and
GAO's assessment of the reasons for any changes; and (3) the
significance and validity of questions and complaints raised by
into-plane contractors and the National Air Transportation
Association about the effect on their businesses of Defense
Department changes in the pricing of into-plane jet fuel. 


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

DOD Bulk Fuel:  Budgeting for Bulk Fuel and Other Operation and
Maintenance Activities, by Sharon A.  Cekala, Associate Director for
Military Operations and Capabilities Issues, before the Subcommittee
on National Security, International Affairs, and Criminal Justice,
House Committee on Government Reform and Oversight. 
GAO/T-NSIAD-96-208, July 30 (13 pages). 

The bulk fuel issues discussed in this testimony may be symptomatic
of a larger issue involving how the military services estimate
requirements for operation and maintenance activities.  Past GAO work
has shown that the Defense Department repeatedly estimates that it
needs more money than it obligates for some operation and maintenance
activities.  This testimony, which draws on the findings of a March
1996 report (GAO/NSIAD-96-96), addresses (1) the military services'
use of operation and maintenance funds and their latitude in
obligating the money, (2) specific overestimating of funds needed for
bulk fuel, and (3) bulk fuel as one example of the services'
overestimating their needs for some activities within the operation
and maintenance account. 


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

Forest Service's Reforestation Funding:
Financial Sources, Uses, and Condition of the
Knutson-Vandenberg Fund

GAO/RCED-96-15, June 21 (60 pages). 

The Forest Service is responsible for reforesting areas harvested for
timber or destroyed by natural causes in national forests.  The
Forest Service, which manages 191 million acres of forests,
rangelands, and grasslands, obligated about $163 million for
reforestation during fiscal year 1994.  More than 70 percent of the
money for reforestation comes from the Knuston-Vandenberg Trust Fund. 
Although the Fund had a reported balance of about $338 million as of
September 1995, not enough money will be available to pay for all the
planned projects, whose cost is now estimated at $942 million.  The
shortfall has occurred because during the 1990s the Forest Service
transferred $420 million from the Fund to pay for emergency
firefighting.  However, the Agriculture Department has yet to restore
these funds, and the Forest Service continues to run the program as
if the transfers had never occurred.  In addition, the Forest Service
lacks reliable financial management information and effective
controls to ensure compliance with the Knutson-Vandenberg Act's
prohibition against spending more trust funds on an individual sale
area than had been collected from that area. 

Bureau of Reclamation:
Information on Allocation and Repayment of Costs of Constructing
Water Projects

GAO/RCED-96-109, July 3 (80 pages). 

The federal government has spent nearly $22 billion to build 133
water projects in the west that provide water for various purposes,
including irrigation.  The beneficiaries of these projects are
generally required to repay the federal government their allocated
share of the construction costs.  However, as a result of various
forms of financial assistance provided by the federal government,
some beneficiaries repay considerably less than their full share of
these costs.  Among the beneficiaries, irrigators generally receive
the largest amount of such financial assistance.  This report
describes (1) the types of financial assistance received by
irrigators participating in the federal water projects built by the
Bureau of Reclamation or for which the Bureau has water marketing
responsibilities and (2) the amount of these water projects'
construction costs allocated to irrigators and their repayment of
these costs. 


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

Federal Lands:  Concession Reform is Needed, by Victor S.  Rezendes,
Director of Energy, Resources, and Science Issues, before the
Subcommittee on National Parks, Forests, and Lands, House Committee
on Resources.  GAO/T-RCED/GGD-96-223, July 18 (11 pages). 

Concession activity on federal lands is a large industry, with
civilian agencies managing more than 11,000 concession agreements
throughout the federal government during 1994.  Concessioners
operating under these agreements generated about $2.2 billion in
gross revenue.  More than 90 percent of concession agreements and the
concession gross revenues were from concessioners in the six land
management agencies.  For agreements that were either initiated or
extended during fiscal year 1994, concessioners in the land
management agencies paid the government an average of about three
percent of their gross revenue.  In contrast, concessioners in other
agencies paid fees of about nine percent of their gross revenues. 
The key factors affecting the rate of return to the government were
whether the fees were established through competition, whether the
agency was allowed to keep most of the concession fees it generated,
and whether an incumbent concessioner had a preferential right in
renewing its agreement with the government.  Throughout the
government, rates of return from concessioners were higher when
established through competition.  Agencies which had authority to
retain fees and which did not grant preferential rights of renewal
generally obtained higher rates of return from concessioners. 


   SCIENCE, SPACE, AND TECHNOLOGY
-------------------------------------------------------- Appendix 0:18

Intellectual Property:
Enhancements Needed in Computing and Reporting Patent Examination
Statistics

GAO/RCED-96-190, July 15 (42 pages). 

This report provides information on the operations of the Commerce
Department's Patent and Trademark Office.  GAO (1) analyzes patent
dependency--the amount of time that the Patent and Trademark Office
spends in examining an application to determine whether an invention
should receive a patent; (2) compares the Patent and Trademark
Office's resources committed to the patent process, the trademark
process, the dissemination of information, and executive direction
and administration; and (3) compares the Patent and Trademark
Office's examination processes with those of other industrialized
countries. 

NASA Budget:
Carryover Balances in Selected Programs

GAO/NSIAD-96-206, July 16 (14 pages). 

In response to concerns raised in an oversight hearing, GAO reviewed
the extent of carryover balances for the Mission to Planet Earth and
other NASA programs.  Carryover balances consist of unobligated funds
and uncosted obligations.  Unobligated balances represent the portion
of its budget authority that NASA has not obligated.  Uncosted
obligations represent the portion of its authority that NASA has
obligated for goods and services but for which it has not yet
incurred costs.  Carryover balances in NASA's Human Space Flight and
Science, Aeronautics, and Technology programs totaled $3.6 billion by
the end of fiscal year 1995--an amount equal to almost one-third of
the budget authority provided for these programs in fiscal year 1995
that will be used to cover costs that will accrue in fiscal year 1996
or beyond.  Individual programs carried over varying amounts, ranging
from the equivalent of one month to 16 months of fiscal year 1995's
new budget authority.  The Mission to Planet Earth carried $695
million, or more than six months, of budget authority into fiscal
year 1996.  GAO summarized this report in testimony before
Congress; see: 


NASA Budget:  Carryover Balances in Selected Programs, by Thomas J. 
Schulz, Associate Director for Defense Acquisitions Issues, before
the Subcommittee on Space and Aeronautics, House Committee on
Science.  GAO/T-NSIAD-96-207, July 18 (four pages). 

Space Station:
Cost Control Difficulties Continue

GAO/NSIAD-96-135, July 17 (38 pages). 

The international space station, a joint venture involving NASA,
Japan, Canada, the European Space Agency, and Russia, will be a
permanently orbiting laboratory used to conduct scientific research
under weightless conditions.  NASA estimates its share of the costs
to build the space station at $17.4 billion.  The space station is
now scheduled to be completed by 2002.  As of April 1996, the prime
contract for the space station was nearly $90 million over cost and
about $88 million behind schedule.  Overall, the prime contract is
45-percent complete and these variances are within planned funding
levels.  However, many cost threats remain, and financial reserves
needed for unexpected contingencies remain limited during the next
several years.  If available resources prove inadequate, program
managers either will be forced to exceed the annual funding
limitation or will have to defer or rephase other activities,
potentially delaying the space station's schedule and increasing its
overall cost.  NASA has tried to ensure that the prime development
contractors and its major subcontractors implement effective
performance measurement systems for managing their contractors, but a
complete performance measurement system is still not in place.  Also,
NASA has made slower progress implementing effective performance
measurement systems on its contractors for developing ground-based
and on-orbit capabilities for using and operating the space station. 
GAO summarized this report in testimony before Congress; see: 

Space Station:  Cost Control Difficulties Continue, by Thomas J. 
Schulz, Associate Director for Defense Acquisitions Issues, before
the Subcommittee on Science, Technology, and Space, Senate Committee
on Commerce, Science, and Transportation.  GAO/T-NSIAD-96-210, July
24
(six pages). 



   SOCIAL SERVICES
-------------------------------------------------------- Appendix 0:19

Welfare Waivers Implementation:
States Work to Change Welfare Culture, Community Involvement, and
Service Delivery

GAO/HEHS-96-105, July 2 (56 pages). 

In the wake of growing dissatisfaction with the welfare system,
Congress and the President have been considering welfare reform on a
national level.  Meanwhile, many states have undertaken far-reaching
reforms through waivers of federal provisions governing the program
most Americans think of as welfare--Aid to Families With Dependent
Children.  For example, states have required welfare recipients to
work; set limits on lifetime benefits; and denied cash benefits for
additional children born to families already receiving welfare. 
Believing that the findings would be useful to states dealing with
the challenge of welfare reform, Congress asked GAO to review some
states' early experiences with implementing reforms.  This report
examines efforts by Florida, Indiana, New Jersey, Virginia, and
Wisconsin to implement three key reforms:  time-limited benefits,
work requirements, and family caps. 


   TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:20

Earned Income Credit:
Profile of Tax Year 1994 Credit Recipients

GAO/GGD-96-122BR, June 13 (44 pages). 

Total Earned Income Credit (EIC) program costs have risen
dramatically in recent years as Congress has extended EIC coverage
and increased credit rates.  From tax year 1990 to tax year 1994, EIC
program costs (in 1994 dollars) increased by about 150 percent. 
During that same period, the number of EIC recipients increased by
about 50 percent.  Much of the recent growth in the number of
taxpayers claiming the EIC can be attributed to the extension of the
credit to childless adults beginning in tax year 1994.  About 15
million families with children received $20.5 billion of EIC in tax
year 1994; another four million childless adults received an
additional $0.7 billion.  The refundable portion of the EIC for tax
year 1994 was $16.7 billion, or 79 percent of the total EIC. 


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

Managing IRS:  IRS Needs to Continue Improving Operations and
Service, by Lynda D.  Willis, Director of Tax Policy and
Administration Issues, before the National Commission on
Restructuring the Internal Revenue Service.  GAO/T-GGD/AIMD-96-170,
July 29 (31 pages). 

This testimony was intended to assist the National Commission
restructure the Internal Revenue Service (IRS).  GAO makes the
following points:  (1) One of IRS' biggest problems has been the
inefficient way in which its processes most tax returns.  IRS needs
to reduce the volume of paper returns.  (2) IRS' strategy for
improving customer service appears promising.  However, the agency
needs to develop a plan to overcome significant technical,
managerial, and other obstacles to achieving its customer service
vision.  (3) Longstanding problems continue to undermine the
effectiveness of IRS' collection problems.  Significant changes are
needed in the way IRS does business.  (4) Although IRS has made some
progress in resolving issues that have prevented GAO from expressing
an opinion on the reliability of IRS' financial statements, serious
management problems remain uncorrected.  (5) IRS needs to improve its
ability to make sound investment decisions in information technology. 
IRS' reengineering efforts could generate new business requirements
that are not addressed by tax systems modernization or that make some
of those projects obsolete. 


   TRANSPORTATION
-------------------------------------------------------- Appendix 0:21

Intermodal Freight Transportation:
Projects and Planning Issues

GAO/NSIAD-96-159, July 9 (22 pages). 

The Intermodal Surface Transportation Efficiency Act set aside $155
billion to improve the nation's surface transportation system during
a six-year period ending in fiscal year 1997.  Although the act
mainly authorized highway construction and improvements, it also
encouraged intermodal connections as a way to enhance the
transportation infrastructure.  Intermodal connections link the
various transportation modes--highways, rail, air, and maritime
facilities.  Economists and transportation planners believe that
productivity and efficiency gains can be achieved by improving
intermodal connections.  This report reviews (1) the Transportation
Department's efforts to track how states used funds made available by
the act to facilitate intermodal transportation and the nature and
extent of funds used by states for intermodal freight projects, (2)
how some local and regional areas that handle a large volume of
freight have considered intermodal freight transportation issues as
part of their planning process, and (3) the impediments some areas
face in improving freight transportation.  GAO also provides
information on intermodal freight transportation trends. 

Amtrak's Strategic Business Plan:
Progress to Date

GAO/RCED-96-187, July 24 (16 pages). 

Since 1971, when Amtrak assumed responsibility for operating the
nation's intercity passenger trains, the federal government has
provided the corporation with more than $18 billion to cover annual
operating losses and to make capital investments.  Despite this
support, by 1994 Amtrak's financial and operating condition had
declined to the point at which its long-term survivability was
seriously threatened.  At the same time, federal budget constraints
have made it more difficult for Congress to provide its historic
level of support.  In response, Amtrak developed a Strategic Business
Plan to boost revenues and cut expenses.  Its goal is to eliminate
the need for a federal operating subsidy by fiscal year 2002. 
Amtrak's success in implementing the plan will go a long way toward
deciding the future of intercity passenger rail service in the United
States.  This report (1) describes the actions that Amtrak plans to
take and the expected results; (2) reviews Amtrak's progress so far
in achieving financial improvements and its progress toward realizing
the longer-term goal of operating self-sufficiency; and (3) describes
Amtrak's efforts to monitor the plan's implementation. 


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

Central Artery/Tunnel Project:  Cost and Financing, by John H. 
Anderson, Jr., Director of Transportation and Telecommunications
Issues, before the Massachusetts Joint Committee on Transportation. 
GAO/T-RCED-96-218, July 11 (five pages). 

The total cost of the Central Artery/Tunnel Project is estimated at
$10.4 billion, and this amount could increase if containment goals
are not met.  Furthermore, state and federal funding available to
Massachusetts might not be enough to complete the project as
scheduled by 2004.  Although the amount of funding available to
Massachusetts after fiscal year 1997 is unknown, shortfalls exist
under all scenarios modeled in the Massachusetts Highway Department's
1996 project finance plan.  The finance plan discusses options for
addressing the shortfall, but state officials said that a plan has
not been selected so far, pending completion of the feasibility
study.  In selecting a plan, the state faces challenges to both
maintain its commitment to its statewide road and bridge improvement
program and build the Central Artery/Tunnel project. 


   VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:22

Readjustment Counseling Service:
Vet Centers Address Multiple Client Problems, but Improvement
Is Needed

GAO/HEHS-96-113, July 17 (42 pages). 

The Department of Veterans Affairs (VA) operates 205 community-based
facilities known as Vet Centers to help veterans make a successful
transition from military to civilian life.  Vet Center counselors
reported visiting with about 138,000 veterans during fiscal year
1995, 84,000 of whom were new to Vet Centers.  Most veterans do not
establish long-term relationships with Vet Center counselors;
however, those who do represent a core group who use services over
extended periods for serious psychological problems, such as
post-traumatic stress disorder.  Other veterans usually visit Vet
Center counselors only once or twice for social concerns, such as
employment or benefit needs. 

VA Health Care:
Opportunities for Service Delivery Efficiencies Within
Existing Resources

GAO/HEHS-96-121, July 25 (64 pages). 

The Department of Veterans Affairs (VA), which operates one of the
nation's largest health care systems, faces increasing pressure to
contain or reduce spending as part of governmentwide efforts to
balance the budget.  This report discusses ways VA could operate more
efficiently and reduce the resources needed to meet the needs of
veterans in what is commonly referred to as the mandatory care
category.  GAO addresses (1) VA's forecasts of future resource needs,
(2) opportunities to run VA's system more efficiently, (3)
differences between VA and the private sector in efficiency
incentives, and (4) recent VA efforts to reorganize its health care
system and create efficiency incentives.  GAO concludes that
successful implementation of a range of reforms, coupled with reduced
demand for services, could save the VA health care system billions of
dollars during the next seven years.  The success of these efforts,
however, depends on introducing efficiency incentives at VA that have
long existed in the private sector. 


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

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

GAO/HEHS-96-183W, July 1996 (19 pages). 

This monthly bibliography lists GAO documents on health, education,
employment, social security, disability, welfare, and veterans
issues.  One section summarizes reports and testimony issued during
the past month.  Another section lists the titles of all documents
issued during the past four months, organized chronologically by
subject.  Order forms are included, as is a list of subject area
experts who can answer questions about
specific reports. 


*** End of document. ***