Reports and Testimony: March 1996 (Other Written Prod., 03/01/96,
GAO/OPA-96-6).

GAO published its monthly digest of reports and testimonies issued in
March 1996.

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

 REPORTNUM:  OPA-96-6
     TITLE:  Reports and Testimony: March 1996
      DATE:  03/01/96
   SUBJECT:  Tax administration systems
             Transportation operations
             Military operations
             Law enforcement
             Environmental monitoring
             Financial management
             Health care services
             Natural resources
             Deficit reduction
             Veterans
IDENTIFIER:  IRS Tax System Modernization Program
             FAA Military Airport Program
             Bosnia
             FSIS Hazard Analysis and Critical Control Point System
             USDA Emergency Disaster Farm Loan Program
             NIST Manufacturing Extension Partnership
             DOL Job Corps Program
             California Conservation Corps
             Seaborne Conservation Corps (Galveston, TX)
             Small Business Technology Transfer Pilot Program
             DOE Nuclear Weapons Stockpile Surveillance Program
             FAA Airport Improvement Program
             FAA State Block Grant Program
             Heathrow Airport (United Kingdom)
             DOD TRICARE Program
             Medicare Program
             Medicaid Program
             IRS Cyberfile
             DOJ National Asset Seizure and Forfeiture Program
             JCS Status of Resources and Training System
             DOD Depot Maintenance Program
             Air Force Two Level Maintenance Concept
             Air Force Civil Reserve Air Fleet Program
             C-17 Aircraft
             NASA Earth Observing System
             
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REPORTS AND TESTIMONY:  MARCH 1996

GAO/OPA-96-6


Highlights

Tax System Modernization

The Internal Revenue Service has spent more than $2.5 billion since
1986 on tax system modernization (TSM)--an effort jeopardized by
persistent and pervasive management and technical weaknesses.  Unless
it corrects these problems, IRS will spend billions more on TSM with
little assurance of success.
Page 18. 

Bosnian Peacekeeping

Although the costs of participation in the Bosnian peacekeeping
operation are uncertain, they will likely exceed Defense Department
estimates.  At present, the costs for deployment of forces and for
the support of contractors are running significantly higher than
original estimates.  Page 19. 

Managing for Results

Congress passed the Government Performance and Results Act (GPRA) to
encourage federal agencies to set strategic goals and better measure
performance.  In testimony, GAO reports that changes anticipated by
GPRA will not come quickly or easily and that strong and sustained
congressional attention to implementation of the new law is critical
to its success.  Page 13. 

GAO/OPA-96-6CIA



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

  CFO - x
  CIA - x
  DFAS - x
  DIA - x
  DOD - x
  DOE - x
  DOT - x
  EPA - x
  EU - x
  FAA - x
  FDA - x
  FSIS - x
  GPRA - x
  HUD - x
  INS - x
  IRS - x
  MEP - x
  NASA - x
  NPR - x
  NSA - x
  TSM - x
  TRICARE - x
  USDA - x
  VA - x

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


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

FDA Laboratories:
Magnitude of Benefits Associated With Consolidation
Is Questionable

GAO/HEHS-96-30, Mar.  19 (47 pages). 

Because many of the Food and Drug Administration's (FDA) 18 testing
laboratories across the country are old and need repair, the agency
plans to replace the old labs with five "megalabs" and four
special-purpose facilities.  GAO found, however, that projected cost
savings of about $91 million may be based on assumptions that inflate
the cost of replacing the existing labs.  Moreover, current FDA
workload data indicate that medium-sized labs--those having about 50
analysts per lab--are more efficient and effective than existing
larger labs.  In selecting sites for its megalabs, FDA did little
analysis of the relative efficiency of alternative sites.  FDA placed
little emphasis on such factors as proximity to ports of entry and
quantity of nearby food and other relevant businesses.  Instead, the
agency's site selections were based mainly on where FDA thought it
would receive congressional funding approval. 

Food Safety:
New Initiatives Would Fundamentally Alter the Existing System

GAO/RCED-96-81, Mar.  27 (21 pages). 

In response to continuing outbreaks of food poisoning, Congress and
federal agencies are considering new approaches to ensuring food
safety.  This report discusses the federal food safety system,
particularly the current responsibilities, budgets, staffing, and
workloads of the federal agencies involved and the changes in these
areas since 1989, when GAO issued a two-volume report on this subject
(GAO/RCED-91-19A and 19B).  The Food and Drug Administration (FDA)
and the Food Safety and Inspection Service (FSIS), the lead agencies
responsible for food safety, now rely heavily on physical inspections
to prevent unsafe food from leaving processing plants.  Current
proposals, however, would shift the government's oversight role. 
Private industry would become responsible for identifying and
controlling potential hazards before they affected food products,
while the government would assess the effectiveness of each plant's
safety system.  Such systems, known as Hazard Analysis and Critical
Control Point systems, are intended to identify the critical points
in food processing and establish controls to prevent adulteration
caused by microbes, chemicals, or physical hazards.  Under the FDA
and FSIS initiatives, such systems are to be up and running by 1997. 
Because of FDA's resources constraints and FSIS' regulatory
restrictions, however, the agencies are unlikely to inspect plants on
the basis of the risk they pose--even though this was recommended by
the National Academy
of Sciences. 

Emergency Disaster Farm Loans:
Government's Financial Risk Could Be Reduced

GAO/RCED-96-80, Mar.  29 (36 pages). 

During the past seven years, the Farm Service Agency, under its
emergency disaster farm loan program, has forgiven more than $6
billion in unpaid principal and interest.  More losses can be
expected because 80 percent of the $3 billion in outstanding loan
principal is held by borrowers who are delinquent or have had
difficulty repaying emergency or other farm program loans.  Although
emergency loans are inherently risky, several lending policies have
added to the risk.  For example, borrowers who have received debt
forgiveness on past loans are not prohibited from obtaining new
emergency loans.  In addition, borrowers with minimal projected cash
flows are eligible to obtain loans--as long as their expected incomes
equal their expected expenses, they qualify, and no cushion is
required for unforeseen problems.  Besides having weak lending
policies, the agency does not consistently implement lending policies
designed to safeguard federal financial interests.  For example, the
agency does not always verify the accuracy of information in loan
applications.  Although crop insurance was generally available, few
recipients of emergency loans took out coverage to protect their
crops against the risk of natural disaster.  Instead, they relied on
the federal government for assistance. 


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

Budget Issues:
Selected GAO Work on Federal Financial Support of Business

GAO/AIMD/GGD-96-87, Mar.  7 (18 pages). 

The federal government provides financial benefits to businesses as a
way to fulfill a wide range of public policy goals.  These benefits
are spread throughout the budget, including programs in international
affairs, energy, natural resources and environment, agriculture, and
transportation.  In those cases in which programs are poorly
designed, including those benefiting businesses, the federal
government may spend more money or lose more revenue than necessary
to reach its intended audience and achieve program goals.  This
document summarizes earlier GAO work on spending programs and tax
benefits available to businesses.  GAO presents many examples of
federal programs from GAO work published since 1992 in which GAO
identified efficiency or effectiveness concerns.  GAO also discusses
program design and implementation. 

Budget Issues:
Privatization Practices in Argentina

GAO/AIMD-96-55, Mar.  19 (13 pages). 

This report, part of GAO's ongoing work related to privatization
practices in other nations, focuses on the divestiture experiences of
Argentina.  In a December 1995 report (GAO/AIMD-96-23), GAO examined
the divestiture experiences of Canada, France, Mexico, New Zealand,
and the United Kingdom.  For Argentina, GAO focused on policies and
procedures for the divestiture of entities, as it did in its reviews
of the above countries.  GAO also examined the policies and the
procedures used to award concessions--the process by which the
government gives a private firm the right to operate a government
entity.  Between 1990 and 1993, more than half of the privatizations
in Argentine occurred through the awarding of concessions. 
Specifically, this report discusses (1) the privatization process in
Argentina, (2) the valuation and the preparation of assets for sale,
and (3) the use of the sale proceeds. 


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

Budget Issues:  Deficit Reduction and the Long Term, by Paul L. 
Posner, Director of Budget Issues, before the House Committee on the
Budget.  GAO/T-AIMD-96-66, Mar.  13 (16 pages). 

GAO has long argued that deficit reduction is crucial to America's
future economic health.  The surest way to increase the resources
available for investment is to boost national savings, and the surest
way to accomplish this is to reduce the deficit.  Today, the
relationship of the deficit to the nation's long-term economic
interest is more broadly recognized.  Both Congress and the President
have put forth plans to reverse earlier fiscal trends and balance the
budget.  The debate is no longer about whether to balance the budget,
but rather when and how.  This testimony describes GAO's simulations
of the economic impact of different fiscal policies over the long
term and discusses several matters relating to deficit reduction,
particularly the important benefits to be gained from shifting to a
new fiscal policy; the importance of how the deficit is reduced,
including both the composition of federal spending and the need to
address the drivers of the deficit; and the experiences of other
industrialized nations. 


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

Manufacturing Extension Programs:
Manufacturers' Views About Delivery and Impact of Services

GAO/GGD-96-75, Mar.  14 (54 pages). 

Manufacturing extension programs help companies modernize or upgrade
their operations, often with state and federal funding.  The National
Institute of Standards and Technology manages federal funding for the
program through its Manufacturing Extension Partnership Program
(MEP).  In the current climate of government downsizing, Congress is
reconsidering MEP funding.  One issue Congress is evaluating is
whether MEP services have helped businesses improve their
performance.  GAO did a national survey of manufacturers that had
received MEP services in 1993.  The survey results, described in a
1995 report (GAO/GGD-95-216BR), indicate that 73 percent of
respondents viewed MEP assistance as having a positive effect on
their overall business performance.  In addition, most respondents
found that MEP assistance had had a positive effect on their use of
technology in the workplace, the quality of their products, and
customer satisfaction.  This report further analyzes GAO's national
survey results.  GAO (1) identifies factors that may have contributed
to the positive impact on overall business performance reported by
the majority of respondents; (2) determines whether MEP assistance
met companies' expectations for specific performance indicators, such
as manufacturing time frames and labor productivity; and (3)
determines whether companies thought that MEP had actually
demonstrated attributes that they valued most, such as MEP staff
expertise, timely assistance, and reasonably priced fees. 


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

Job Corps:
Comparison of Federal Program With State Youth
Training Initiatives

GAO/HEHS-96-92, Mar.  28 (22 pages). 

State or locally established youth-training programs are offered in
most states.  Although many have characteristics similar to those of
the Job Corps program, state and local youth corps programs most
closely resemble the Job Corps program.  Two such programs--the
California Conservation Corps and the Seaborne Conservation Corps in
Galveston, Texas--contain all four features that, taken together,
characterize the Job Corps:  they serve disadvantaged youth, provide
basic education, offer vocational training, and provide services in a
residential setting.  However, even these two programs differ from
the Jobs Corps in the ways that they run their programs.  For
example, the California program does not specifically target the
disadvantaged, and Seaborne's vocational training is geared toward a
single industry. 


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

Nuclear Waste:
Nevada's Use of Nuclear Waste Grant Funds

GAO/RCED-96-72, Mar.  20 (35 pages). 

The law prohibits Nevada from using its nuclear waste grant funds for
lobbying, litigation, and certain multistate activities.  Yet GAO
found that Nevada had used this money to advance, on a national
stage, its opposition to a repository at Yucca Mountain.  In one
case, a videotape produced by a contractor was intended to influence
legislation pending before Congress.  In another case, Nevada's use
of grant funds to underwrite a multistate tour in 1993 was
inappropriate because the main goal of the tour appeared to be to
generate public opposition in other states to the repository project. 
Until 1992, the Energy Department (DOE) reviewed and approved the
state's applications for grant funds and required the state to give
DOE periodic progress and financial reports.  Since then, DOE's role
in overseeing the state's grant has diminished.  The agency makes
direct grant payments to the state, and Nevada must certify that the
money was spent in accordance with the law.  DOE has recovered about
$75,000 of the more than $1 million that GAO previously reported as
improperly spent.  DOE has decided that $670,000 worth of
expenditures was either allowable or that it would not try to recover
the funds.  DOE has no records of whether it ever decided to recover
the remaining $309,000 in expenditures that
GAO questioned. 


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

Health and Safety:  Environmental Oversight of Classified Federal
Research, by Bernice Steinhardt, Associate Director for Energy,
Resources, and Science Issues, before the Senate Committee on
Governmental Affairs.  GAO/T-RCED-96-99, Mar.  12 (16 pages). 

In October 1995, a presidential committee reported a troubling legacy
of secret Cold War government radiation research on human subjects
and experimental radiation releases into the environment.  The
committee criticized the government's research ethics and raised the
possibility that events similar to the past secret environmental
releases could occur today.  To guard against this, the committee
recommended creating an independent group to oversee the
environmental consequences of classified research and a broader
oversight role for the Environmental Protection Agency (EPA).  This
testimony discusses (1) EPA's ability to conduct environmental
oversight of classified federal research and (2) the extent to which
federal facilities and activities have been exempted from compliance
with environmental laws. 

Nuclear Weapons:  Status of DOE's Nuclear Stockpile Surveillance
Program, by Victor S.  Rezendes, Director of Energy, Resources, and
Science Issues, before the Subcommittee on Strategic Forces, Senate
Committee on Armed Services.  GAO/T-RCED-96-100, Mar.  13 (11 pages). 

The Energy Department's (DOE) nuclear stockpile surveillance program
uses various tests to detect problems in the U.S.  nuclear weapons
stockpile, including defects and failures in nuclear weapons systems
and components.  This program is increasingly critical as weapons in
the stockpile age beyond their originally planned lifespan.  However,
DOE has not done all the tests that it believes are necessary to
ensure the reliability of the nuclear weapons in the stockpile.  For
some types of weapons, the tests are far behind schedule and DOE's
confidence in the reliability of these weapons is diminished.  DOE
has not done the scheduled tests for various reasons, including
equipment problems, lack of space on missiles for testing, the
absence of a required safety study, and delays in testing while
testing operations were being transferred to new locations.  Although
DOE plans to get some tests back on schedule within a few years,
other tests may not be back on schedule for the foreseeable future. 


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

Water Pollution:
Many Violations Have Not Received Appropriate
Enforcement Attention

GAO/RCED-96-23, Mar.  20 (23 pages). 

The quality of the nation's waters has improved since the Clean Water
Act was revised in 1972.  The act bans facilities from discharging
pollutants in amounts exceeding those authorized in their discharge
permits.  But GAO's analysis of the Environmental Protection Agency's
(EPA) compliance data for fiscal years 1992-94 shows that major
facilities often violated their permits.  For fiscal year 1994, for
example, about one in six of the nation's 7,000 major regulated
facilities significantly violated the discharge limits in their
permits.  However, EPA believes that the actual number of major
violations of discharge permits may be nearly twice as high as the
compliance data suggest.  In addition, violations that EPA has not
identified may be as serious from an environmental perspective as
those that it has identified.  EPA does not identify all significant
violations of discharge limits because its criterion for screening
violations has not remained consistent with the types of discharge
limits used in permits.  In September 1995, EPA expanded its
criterion for identifying cases of significant noncompliance and,
hence, for assigning enforcement priorities. 


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

Environmental Protection:  Issues Facing the Energy and Defense
Environmental Management Programs, by Victor S.  Rezendes, Director
of Energy, Resources, and Science Issues, before the Subcommittees on
Military Procurement and Military Readiness, House Committee on
National Security.  GAO/T-RCED/NSIAD-96-127, Mar.  21 (23 pages). 

The Energy Department (DOE) has tried in recent years to make its
nuclear weapons complex cleanup more cost effective.  Similarly,
cleanup costs have been an issue at the Defense Department (DOD), but
the cleanup effort is part of a larger attempt to control the cost of
environmental compliance now, while minimizing contamination and
related costs in the future.  At DOD, environmental compliance
activities have overtaken cleanup as the major annual cost.  With
regard to DOE's cleanup effort, this testimony discusses (1) how the
administration of basic laws governing cleanup of the weapons complex
affects costs, (2) how to cut DOE's costs, (3) which issues Congress
should consider regarding DOE privatization of its cleanup, and (4)
how excess carryover balances could be used to fund DOE's cleanup. 
GAO also discusses (1) DOD's use of relative risk as a major factor
in ranking individual cleanup sites and (2) how DOD prioritizes,
plans, and budgets for its environmental compliance program. 

Environmental Protection:  Assessing EPA's Progress in Paperwork
Reduction, by Stanley J.  Czerwinski, Associate Director for
Environmental Protection Issues, before the House Committee on Small
Business.  GAO/T-RCED-96-107, Mar.  21 (eight pages). 

In March 1995, as part of the administration's effort to eliminate
some federal regulations and improve others, the Environmental
Protection Agency (EPA) pledged to reduce by 25 percent the paperwork
burden imposed by its environmental regulations.  The agency plans to
meet this goal by June 1996.  Given EPA's January 1995 baseline of
about 81 million hours spent on such paperwork per year, this
commitment translates to a reduction of slightly more than 20 million
hours.  This testimony discusses (1) the status of EPA's efforts to
reach its goal; (2) the way that EPA has calculated reductions in the
paperwork burden, specifically those it has claimed for two of its
program offices--the Office of Prevention, Pesticides, and Toxic
Substances and the Office of Solid Waste and Emergency
Response--which account for about 75 percent of EPA's estimated
reduction as of February 1996; and (3) EPA's current
paperwork burden. 


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

Federal Reserve Banks:
Internal Control, Accounting, and Auditing Issues

GAO/AIMD-96-5, Feb.  9 (17 pages). 

GAO's work at the Federal Reserve Bank of Dallas, its three branches,
and the Federal Reserve Automation Services has found internal
control issues significant enough to warrant management's attention. 
These issues include how (1) the accounting records of the Dallas
Federal Reserve Bank and its branches are reconciled, reviewed,
maintained, and reported on; (2) accountability over assets is
maintained; and (3) automated systems are used by the Dallas Federal
Reserve Bank and its branches.  GAO also identified an opportunity
for the Federal Reserve to improve the consistency and the efficiency
of its note-accounting procedures.  The Board has contracted with a
public accounting firm for annual audits of the Federal Reserve
Banks' combined financial statements for each of the next five years. 
The firm is also required to audit each of the individual Federal
Reserve Banks once during this period.  GAO concurs in this audit
strategy.  The auditor, however, faces significant challenges arising
from (1) the lack of independent parties to confirm the ownership and
the original cost of U.S.  Treasury securities, which results from
the Federal Reserve Banks' unique role as Treasury's fiscal agent;
(2) the impossibility of confirming amounts held by hundreds of
millions of note holders; and (3) the notes' unusual characteristics
(for example, they never mature or expire and can be destroyed by
events not under the control of the Federal Reserve Banks). 

CFO Act Financial Audits:
Increased Attention Must Be Given to Preparing Navy's
Financial Reports

GAO/AIMD-96-7, Mar.  27 (53 pages). 

After performing a broad-based review of the Navy's financial
management operations, GAO concludes that the Navy has made little
progress in improving its general funds financial management and
reporting since passage of the Chief Financial Officers Act in 1990. 
Top military officials must make achievement of the act's objectives
a higher priority.  Preparing reliable financial statements is
critical to (1) safeguarding and effectively managing the public's
substantial investment in Navy operations; (2) providing the Navy,
the Defense Department (DOD), and Congress with a clear understanding
of the Navy's financial condition so that they can control costs
while maintaining military readiness; and (3) ensuring the
reliability of agencywide consolidated financial statements that DOD
must prepare beginning with fiscal year 1996.  The Navy, including
the Marine Corps, accounts for about one-third of DOD's gross budget
authority, controls nearly half of DOD's assets, and employs
one-third of all DOD personnel.  This report focuses on the
challenges that the Navy and the Defense Finance and Accounting
Service (DFAS) face to strengthen the Navy's financial management and
reporting and to adequately plan for preparing auditable financial
statements for the Navy within the required time frame.  It also
recommends ways to improve the Navy's and DFAS' financial management
and reporting processes and internal controls. 

Financial Audit:
Independent Counsel Expenditures for the Six Months Ended September
30, 1995

GAO/AIMD-96-67, Mar.  29 (34 pages). 

GAO audited the statements of expenditures by eight independent
counsel offices--Arlin M.  Adams/Larry D.  Thompson; David M. 
Barrett; Joseph E.  diGenova; Robert B.  Fiske, Jr.; Daniel S. 
Pearson; Donald C.  Smaltz; Kenneth W.  Starr; and Lawrence E. 
Walsh--for the six months ended September 30, 1995.  Independent
counsels may be appointed when the Attorney General determines that
reasonable grounds exist to warrant further investigation of
high-ranking government officials for alleged crimes.  The Justice
Department is responsible for paying all costs relating to
establishment and operation of independent counsel offices.  GAO
found the statements to be reliable in all material respects.  GAO's
consideration of internal controls disclosed no material weaknesses. 
Further, GAO's audit disclosed no reportable noncompliance with the
laws and regulations
GAO tested. 

Financial Audit:
Panama Canal Commission's 1995 and 1994 Financial Statements

GAO/AIMD-96-61, Mar.  29 (35 pages). 

This report presents the results of GAO's audits of the Panama Canal
Commission's financial statements for fiscal years 1995 and 1994.  In
GAO's opinion, the Commission's financial statements present fairly,
in all material respects, its financial position for those fiscal
years, and the results of its operations, changes in capital, and
cash flows in conformity with generally accepted accounting
principles.  GAO believes that although improvements are needed in
internal controls governing the review of the classification of
obligations for consultant services under congressional spending
limitations, internal controls reasonably ensured that losses,
noncompliance, or misstatements material to the financial statements
would be prevented or detected.  GAO did find an Antideficiency Act
violation related to noncompliance with a congressional spending
limitation.  But the noncompliance was not material to the financial
statements, and management has instituted internal controls that
should prevent future noncompliance. 


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

Single Audit:  Refinements Can Improve Usefulness, by Gene L. 
Dodaro, Assistant Comptroller General for Accounting and Information
Management Issues, before the Subcommittee on Government Management,
Information, and Technology, House Committee on Government Reform and
Oversight.  GAO/T-AIMD-96-77, Mar.  29 (six pages). 

The Single Audit Act of 1984 is an important means by which Congress,
federal oversight officials, and program managers can obtain
information on whether recipients of federal assistance properly
account for the money they receive, maintain adequate internal
controls of those funds, and comply with program requirements.  The
single audit, which is widely accepted today, has helped foster basic
financial management improvements and has strengthened accountability
at state and local governments and nonprofit groups receiving federal
aid.  Twelve years' worth of experience with the act has shown that
refinements can be made to improve the usefulness of single audits
while reducing the burden on state and local governments and
nonprofit groups.  Proposed amendments, which GAO strongly supports,
address the need for refinements.  This testimony provides some
perspective on the act, highlights GAO's most recent assessment of
the act's implementation, and discusses specific amendments now being
considered. 


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

U.S.  Postal Service:
Unresolved Issues in the International Mail Market

GAO/GGD-96-51, Mar.  11 (48 pages). 

This report provides information on the U.S.  Postal Service's
participation in the international mail market, which includes letter
mail, express, and parcel delivery service.  GAO discusses (1) the
Postal Service's authority and responsibility for delivering and
receiving international mail; (2) the competition for international
mail delivery, including Postal Service plans to increase its
competitiveness; and (3) legal and regulatory issues arising out of
the competition for the delivery of international mail services. 

Management Reform:
Status of Agency Reinvention Lab Efforts

GAO/GGD-96-69, Mar.  20 (157 pages). 

The National Performance Review (NPR), a major government reform
effort under the direction of Vice President Gore, has established
"reinvention labs" to test ways for federal agencies to improve their
performance and customer service by reengineering work processes and
eliminating unnecessary regulations.  Lab officials throughout the
country indicated that the labs addressed a variety of topics. 
Although nearly half of those surveyed reported that customer service
was their labs' main goal, they often said that the labs' customers
were other government organizations, not the public as the Vice
President originally suggested.  At the time of GAO's survey, about
half of the labs were up and running, while the rest were still in
the planning stage.  About two-thirds of the respondents said that
they collected data on their labs' performance, and more than 80
percent said that this information indicated that the labs had
improved service, productivity, and employee morale.  In GAO's view,
the labs' results suggest several promising approaches to improving
agency work processes.  However, the labs' real value will be
realized only when the improvements they initiated, tested, and
validated are widely adopted. 


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

Managing for Results:  Achieving GPRA's Objectives Requires Strong
Congressional Role, by Charles A.  Bowsher, Comptroller General of
the United States, before the Senate Committee on Governmental
Affairs and the House Committee on Government Reform and Oversight. 
GAO/T-GGD-96-79, Mar.  6 (24 pages). 

The Government Performance and Results Act (GPRA) requires federal
agencies to set strategic goals, measure performance, and report to
the President and Congress on their accomplishments.  The intent of
the legislation is to fundamentally shift the focus of federal
management and accountability from a preoccupation with staffing and
activity levels to a focus on program "outcomes"--the difference that
federal programs can make in people's lives, such as a boost in real
wages earned by graduates of an employment program or a reduction in
on-the-job injuries.  GPRA is being implemented through 71 pilot
projects during fiscal years 1994-96 before being introduced
governmentwide in the fall of 1997.  A growing number of federal
agencies are discovering that a focus on outcomes can dramatically
improve effectiveness.  In the case of the marine safety program,
which seeks to prevent marine accidents, the Coast Guard found that
although it had traditionally concentrated on inspections, two-thirds
or more of all reported casualties had been caused by human error. 
As a result, the Coast Guard began to work with the towing industry
to strengthen the knowledge and the skills of towing industry
employees.  The result was a significant reduction in the towing
industry fatality rate.  However, the changes anticipated by GPRA
will not come quickly or easily, and strong and sustained
congressional attention to implementation of the new law is critical
to its success.  Some agency officials believe that evidence of real
interest on the part of Congress in using performance goals and
information would help build support for the act within
their agencies. 

U.S.  Postal Service:  Challenges in Improving Performance and
Meeting Competition, by Michael E.  Motley, Associate Director for
Government Business Operations Issues, before the Subcommittee on the
Postal Service, House Committee on Government Reform and Oversight. 
GAO/T-GGD-96-90, Mar.  13 (10 pages). 

This testimony focuses on three major areas that continue to
challenge the Postal Service in providing prompt, reliable, and
efficient mail services and thus hinder it from becoming more
competitive in the marketplace.  These are (1) improving
labor-management relations, (2) setting competitive rates and
providing competitive service, and (3) controlling operating costs. 

Government Statistics:  Proposal to Form a Federal Statistical
Service, by L.  Nye Stevens, Director of Federal Management and
Workforce Issues, before the Subcommittee on Government Management,
Information and Technology, House Committee on Government Reform and
Oversight.  GAO/T-GGD-96-93, Mar.  22 (19 pages). 

This testimony discusses the creation proposed by H.R.  2521 of a new
Federal Statistical Service, which would be formed by consolidating
the Census Bureau, the Bureau of Economic Analysis, and the Bureau of
Labor Statistics.  The new independent agency would be headed by an
administrator appointed by the President and confirmed by the Senate. 
GAO applies five key principles that it has identified as useful to
consider when reorganizing or streamlining government agencies. 


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

Medical Device Regulation:
Too Early to Assess European Systems' Value as Model for FDA

GAO/HEHS-96-65, Mar.  6 (48 pages). 

The European Union's (EU) system for regulating medical devices is
not only new--it is not yet fully in place.  Therefore, it is too
early to evaluate its success in ensuring the safety of medical
devices and bringing them to market efficiently.  Because the major
players in the EU system have not had enough time to establish a
track record, it will be some time before important questions about
the new system can be answered.  U.S.  government officials who want
to consider integrating features of the EU approach into the U.S. 
device review system will be better able to judge the merits of the
EU system after it has been in operation for several years.  The U.S. 
medical device industry has urged giving private third parties a role
in the review of medical devices, and the Food and Drug
Administration is exploring this possibility in a pilot project. 
Ensuring that private reviewers were independent, had the requisite
expertise, and had sufficient resources would strengthen the
confidence of Congress and the public in the integrity of the device
review process.  Such assurances would carry even more weight if
private review organizations were given the added authority to clear
new devices for marketing. 


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

Defense Health Care:  TRICARE Progressing, but Some Cost and
Performance Issues Remain, by Stephen P.  Backhus, Associate Director
for Health Care Delivery and Quality Issues, before the Subcommittee
on Military Personnel, House Committee on National Security. 
GAO/T-HEHS-96-100, Mar.  7 (nine pages). 

The Defense Department's (DOD) nationwide managed health care
program--TRICARE--represents a sweeping reform of the $15 billion per
year military health care system.  TRICARE seeks to improve access to
care and ensure high-quality, consistent health care benefits for the
1.7 million active-duty service members and some 6.6 million
non-active-duty beneficiaries.  It also seeks to preserve choice for
non-active-duty beneficiaries by allowing them to choose whether to
enroll in TRICARE Prime, which resembles a health maintenance
organization; use a preferred provider organization; or use civilian
health care providers under a fee-for-service arrangement.  Despite
initial beneficiary confusion caused by education and marketing
problems, early implementation of the program is progressing
consistent with congressional and DOD goals.  Measures may be
necessary now, however, such as gathering cost and access-to-care
data, to help Congress and DOD better assess the program's future
success.  In addition, retirees, who make up half of those eligible
for military health care, remain concerned about TRICARE's effect on
their access to medical services. 

Prescription Drugs and the Elderly:  Many Still Receive Potentially
Harmful Drugs Despite Recent Improvements, by Sarah F.  Jaggar,
Director of Health Financing and Public Health Issues, before the
Senate Special Committee on Aging.  GAO/T-HEHS-96-114, Mar.  28 (six
pages). 

GAO's analysis of 1992 data found that 17.5 percent of nearly 30
million Medicare recipients were still being prescribed drugs that
were generally unsuitable for their age group.  Although this is an
improvement over the almost 25 percent reported for 1987 data, the
inappropriate use of prescription drugs remains a major health
problem for the elderly.  Insufficient coordination of patient drug
therapies and weaknesses in communication between providers,
pharmacists, and patients have compounded the problem.  Inappropriate
prescribing practices and the ensuing drug use have caused many
elderly persons to suffer harmful effects that, according to the Food
and Drug Administration, have resulted in hospitalizations costing
$20 billion annually.  The costs are partly covered by Medicare and
Medicaid.  States, advocacy groups, and physician and pharmacy
organizations have, however, taken steps to reduce inappropriate drug
use.  In addition, managed care, pharmacy benefit management, and
other coordinated health care systems have features designed to
reduce inappropriate prescription drug use among
the elderly. 


   HOUSING
-------------------------------------------------------- Appendix 0:10


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

Housing and Urban Development:  Limited Progress Made on HUD Reforms,
by Judy A.  England-Joseph, Director of Housing and Community
Development Issues, before the Subcommittee on VA, HUD, and
Independent Agencies, House Committee on Appropriations. 
GAO/T-RCED-96-112, Mar.  27 (23 pages). 

Despite the promise of reform, reinvention, and transformation
initiatives aimed at solving problems at the Department of Housing
and Urban Development (HUD), much more remains to be done.  HUD is
very much an agency in limbo:  Few of the proposals in HUD's
reinvention blueprint have been adopted.  This testimony addresses
HUD's difficulties in addressing (1) its long-standing management
shortcomings, (2) its portfolio of multi- and single-family housing
insured by the Federal Housing Administration, (3) budget and
management problems plaguing the public housing program, (4) the
spiraling cost of assisted housing programs, and (5) the need for
consensus on HUD reforms. 


   INCOME SECURITY
-------------------------------------------------------- Appendix 0:11

Public Pensions:
Summary of Federal Pension Plan Data

GAO/AIMD-96-6, Feb.  16 (232 pages). 

This report--one in a series of three reports on the status of public
pension plan funding--provides summary data on federal government
pension plans.  The other two reports in the series address state and
local government pension plans.  GAO focuses on federally sponsored
defined benefit and defined contribution plans. 


   INFORMATION MANAGEMENT
-------------------------------------------------------- Appendix 0:12

Telecommunications:
Initiatives Taken by Three States to Promote Increased Access
and Investment

GAO/RCED-96-68, Mar.  12 (50 pages). 

Advances in telecommunications can improve the public's access to
various services regardless of where they live.  For example, two-way
communications can enable high-school students to participate in
advanced science courses offered by other high school districts and
patients at rural clinics to be diagnosed by medical specialists at
distant urban hospitals.  Some states have already taken steps to
make these services more widely available.  This report focuses on
(1) how three states--Iowa, Nebraska, and North Carolina--have
encouraged private investment in improving their telecommunications
infrastructure, (2) how they have provided for increased and
more-affordable access to advanced telecommunications services, and
(3) what lessons their experiences could hold for others. 


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

IRS Operations:  Significant Challenges in Financial Management and
Systems Modernization, by Gene L.  Dodaro, Assistant Comptroller
General for Accounting and Financial Management Issues, before the
Subcommittee on Government Management, Information and Technology,
House Committee on Government Reform and Oversight. 
GAO/T-AIMD-96-56, Mar.  6 (21 pages). 

This testimony discusses the results of GAO's fiscal year 1994
financial audit of the Internal Revenue Service (IRS)--GAO's most
recently completed audit--and GAO's reports on IRS' Tax System
Modernization effort.  Last year, GAO issued two reports
(GAO/AIMD-95-156, July 1995, and GAO/AIMD-95-141, Aug.  1995) on IRS'
guardianship of federal revenues and its ability to function
efficiently in an increasingly high technology environment.  These
reports highlight several serious technical and managerial problems
that IRS must address to make progress in both of these areas,
discusses steps being taken by IRS to strengthen its operations, and
makes recommendations for additional improvements. 


Governmentwide Travel Management:  Federal Agencies Have
Opportunities for Streamlining and Improving Their Travel Practices,
by Christopher W.  Hoenig, Director of Information Resource
Management Issues, before the Subcommittee on Oversight of Government
Management and the District of Columbia, Senate Committee on
Governmental Affairs.  GAO/T-AIMD-96-60, Mar.  8 (18 pages). 

Federal executives operating in the current environment of change and
downsizing face the difficult challenge of cutting costs while
maintaining, if not improving, operations.  One area with great
potential for reengineering is governmentwide travel management.  In
fiscal year 1994, the federal government reported travel obligations
for individuals of about $7.6 billion--about $5 billion for the
Defense Department and about $2.6 billion for civilian agencies.  GAO
testified that federal agencies, by emulating the practices of
private organizations, could save millions of dollars by streamlining
the administrative procedures that now cost the government hundreds
of millions of dollars to process travel vouchers for federal
workers.  The General Services Administration, as the government's
lead manager of travel policy, should spearhead efforts to oversee
the various travel improvement efforts that are planned or under way. 

Tax Systems Modernization:  Management and Technical Weaknesses Must
Be Overcome to Achieve Success, by Gene L.  Dodaro, Assistant
Comptroller General for Accounting and Information Management Issues,
before the Senate Committee on Governmental Affairs. 
GAO/T-AIMD-96-75, Mar.  26 (26 pages). 

The Internal Revenue Service (IRS) has spent more than $2.5 billion
on Tax Systems Modernization through fiscal year 1995.  In addition,
it plans to spend up to $8 billion on this effort through 2001.  Tax
Systems Modernization is central to IRS' vision of a paper-free work
environment in which taxpayer account updates are rapid and taxpayer
information is readily available to IRS employees responding to
taxpayer inquiries.  Over the years, GAO has reported that IRS'
effort to modernize tax processing is jeopardized by persistent and
pervasive management and technical weaknesses.  IRS attempts to
correct these problems have so far met with little success.  This
testimony focuses on (1) IRS' efforts to correct management and
technical weaknesses that have impeded Tax Systems Modernization and
(2) analogous technical weaknesses in the recent Cyberfile project,
which will allow taxpayers to file their returns electronically from
personal computers, suggesting that IRS continues to risk millions of
dollars in undisciplined systems development. 


   INTERNATIONAL AFFAIRS
-------------------------------------------------------- Appendix 0:13

Bosnia:
Costs Are Uncertain but Seem Likely to Exceed DOD's Estimate

GAO/NSIAD-96-120BR, Mar.  14 (34 pages). 

The Defense Department's (DOD) cost to send almost 27,000 troops to
Bosnia as part of peacekeeping operations is uncertain at this time
but could well exceed DOD's estimate.  Army costs, which are
estimated at two-thirds of total operation costs, are likely to
exceed DOD projections, while Air Force costs are likely to be less
than estimated.  DOD estimated deployment transportation costs at
nearly $73 million, but through the end of January 1996, DOD had
spent about $157 million on deployment transportation.  DOD estimated
the cost of contractor support at $192 million; through February
1996, however, the Army had spent more than $247 million on
contractor services, and Army officials said that contractor costs
could go as high as $500 million.  Several major cost areas remain
uncertain.  They involve the operating tempo of the forces in Bosnia,
the cost of redeploying the implementation force, and the expense of
reconstituting equipment used in the operation. 

Contingency Operations:
Defense Cost and Funding Issues

GAO/NSIAD-96-121BR, Mar.  15 (36 pages). 

The Defense Department (DOD) participated in contingency operations
in several places during fiscal year 1995, including Haiti, Southwest
Asia, and the former Yugoslavia.  To help cover the incremental costs
of these operations, Congress provided DOD with a supplemental
appropriation.  This report provides information on (1) the extent to
which the supplemental appropriation fully covered DOD's incremental
costs and the impact that funding shortages or overages may have had
on the services and (2) the accuracy of the methods used to estimate
incremental costs compared with actual costs and ways to improve the
method of
estimating costs. 

Peace Operations:
U.S.  Costs in Support of Haiti, Former Yugoslavia, Somalia,
and Rwanda

GAO/NSIAD-96-38, Mar.  6 (13 pages). 

The United States paid more than $6.6 billion to support United
Nations peacekeeping operations in Haiti, the former Yugoslavia,
Rwanda, and Somalia between fiscal years 1992 and 1995.  Slightly
more than half of these costs were incurred by the Defense
Department, which sent troops and equipment to support the missions
in these countries.  The State Department's costs were about $1.8
billion, while costs for the U.S.  Agency for International
Development--the lead agency responsible for providing humanitarian
assistance, including food donated by the Agriculture
Department--were about $1.3 billion.  The Departments of Justice,
Commerce, the Treasury, Transportation, and Health and Human Services
reported costs totaling about $91 million to support peace
operations. 

State Department:
Actions Needed to Improve Embassy Management

GAO/NSIAD-96-1, Mar.  12 (32 pages). 

The State Department has not acted on recommendations by GAO and
Congress to improve the management of its overseas posts.  GAO
suggested that each diplomatic post establish a proactive management
improvement program.  Although State has taken steps to improve
embassy management controls, these initiatives were inconsistently
implemented at embassies GAO visited.  As a result, long-standing
management deficiencies continue to hinder the efficiency and the
effectiveness of many embassies' operations.  By contrast, three
embassies--those in Ankara, Turkey; Dhaka, Bangladesh; and Tunis,
Tunisia--have implemented management practices to improve
administrative operations.  These practices, which include tracking
accounts receivables and automating travel vouchers, have
strengthened internal controls, improved compliance with regulations,
reduced costs, and led to more efficient and effective operations. 
In addition, these embassies differed from other posts GAO visited
because of the active involvement of senior management and the use of
existing reporting mechanisms.  These management practices could be
replicated at other embassies. 

Nuclear Nonproliferation:
Status of U.S.  Efforts to Improve Nuclear Materials Controls in
Newly Independent States

GAO/NSIAD/RCED-96-89, Mar.  8 (46 pages). 

Over the years, the Soviet Union produced about 1,200 metric tons of
highly enriched uranium and plutonium.  U.S.  efforts to help the
newly independent states of the former Soviet Union better protect
their stocks of this deadly material--which are vulnerable to theft
and diversion because of antiquated security systems--got off to a
slow start but are now gaining momentum.  Many independent states
lack modern equipment to detect unauthorized removal of highly
enriched uranium and plutonium from nuclear facilities.  Seizures of
nuclear material in Russia and Europe have heightened concerns about
a possible black market for this material.  The Defense Department
(DOD) has obligated $59 million and spent about $4 million during
fiscal years 1991-95 for security improvements in Russia, Ukraine,
Kazakhstan, and Belarus.  Initially, the program moved slowly because
Russian officials had refused access to their facilities, and DOD
projects at facilities in Ukraine, Kazakstan, and Belarus were just
getting under way.  The program gained momentum in January 1995 when
U.S.  and Russian officials agreed to upgrade nuclear materials
controls at five high-priority facilities.  The Energy Department
plans to request $400 million over seven years to improve controls at
nuclear facilities in the newly independent states.  However, the
expanded program faces uncertainties involving its overall costs and
U.S.  ability to verify that the assistance is being used as
intended.  GAO summarized this report in testimony before Congress;
see: 

Nuclear Nonproliferation:  U.S.  Efforts to Help Newly Independent
States Improve Their Nuclear Material Controls, by Harold J. 
Johnson, Associate Director for International Relations and Trade
Issues, before the Permanent Subcommittee on Investigations, Senate
Committee on Governmental Affairs.  GAO/T-NSIAD/RCED-96-118, Mar.  13
(six pages). 


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

International Trade:  Implementation Issues Concerning the World
Trade Organization, by JayEtta Z.  Hecker, Associate Director for
International Relations and Trade Issues, before the Subcommittee on
Trade, House Committee on Ways and Means.  GAO/T-NSIAD-96-122, Mar. 
13 (20 pages). 

This testimony provides preliminary observations on the
implementation of the Uruguay Round agreements and on the operations
of the new World Trade Organization.  GAO discusses the
implementation of the agreements, specific issues that are of
particular concern to U.S.  decisionmakers, and future World Trade
Organization endeavors. 


   JUSTICE AND LAW ENFORCEMENT
-------------------------------------------------------- Appendix 0:14

Border Patrol:
Staffing and Enforcement Activities

GAO/GGD-96-65, Mar.  11 (71 pages). 

The Violent Crime Control and Law Enforcement Act of 1994 increased
funding for the Border Patrol to help stem the flow of illegal aliens
crossing the southwest border.  The legislation authorized increases
in the number of Border Patrol agents and support staff to carry out
the Immigration and Naturalization Service's (INS) new border
enforcement strategy of "prevention through deterrence." Under this
strategy, more Border Patrol agents are to be stationed directly on
the border to discourage aliens from entering the United States
illegally.  GAO analyzed the Border Patrol's enforcement activities
nationwide.  This analysis is intended for use in congressional
deliberations on the number of Border Patrol agents to patrol the
southwest border.  Further, GAO's analysis provides baseline data on
the (1) locations where the Border Patrol carried out its enforcement
duties, (2) number of Border Patrol staff at each location, (3)
specific enforcement activities carried out at each location, (4)
views of INS officials on the contributions of the Border Patrol to
INS enforcement activities, and (4) factors that could affect
decisions on hiring or relocating agents for assignment to the
southwest border. 


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

Asset Forfeiture:  Historical Perspective on Asset Forfeiture Issues,
by Laurie E.  Ekstrand, Associate Director for Administration of
Justice Issues, before the Permanent Subcommittee on Investigations,
Senate Committee on Governmental Affairs.  GAO/T-GGD-96-40, Mar.  19
(21 pages). 

As asset forfeiture programs grew during the 1980s, GAO found that
property was not being properly cared for after it was seized,
resulting in revenue lost to the government when the items were sold. 
Much has been accomplished in this area since then, but significant
problems remain.  In addition, the Justice and Treasury Departments
continue to run two similar seized asset management and disposal
programs despite legislation requiring them to coordinate and
consolidate postseizure administration of certain properties. 
Further, Treasury is establishing a separate asset-tracking system
but plans to continue sharing information with Justice.  This
testimony provides a historical perspective on the programs at
Justice and Treasury, including why GAO flagged the programs as "high
risk"; discusses problems that were identified; and discusses efforts
to solve the problems. 


   NATIONAL DEFENSE
-------------------------------------------------------- Appendix 0:15

Military Readiness:
Data and Trends for January 1990 to March 1995

GAO/NSIAD-96-111BR, Mar.  4 (23 pages). 

This is an unclassified version of an earlier classified GAO report
on military readiness.  GAO analyzed military readiness data found in
the Defense Department's Status of Resources and Training System to
determine if the information showed significant changes in readiness
since 1990--a year of peak readiness.  This report provides readiness
information for all four military services.  Specifically, GAO (1)
summarizes the reported overall readiness status of all military
units from January 1990 to March 1995, (2) assesses the readiness
trends of selected units from each service for the same period and
discusses any readiness problems experienced, and (3) explains
significant changes in reported readiness of selected units. 

Closing Maintenance Depots:
Savings, Workload, and Redistribution Issues

GAO/NSIAD-96-29, Mar.  4 (68 pages). 

The Defense Department (DOD) spends $15 billion annually to maintain
aircraft, ships, tracked and wheeled vehicles, and other equipment. 
However, it believes that it can reduce maintenance costs by better
matching its depots' workload capacity with current maintenance
requirements.  Accordingly, as part of the ongoing base closures and
realignments, DOD is closing 15 of its major maintenance depots and
is transferring their workloads to other depots or the private
sector.  This report (1) assesses the reliability of DOD's depot
closure cost and savings estimates, (2) provides information on the
policies and the programs used to provide employment and training to
employees at depots being closed, (3) determines if the military can
increase savings by using competitions between DOD depots or between
depots and the private sector when redistributing the workloads of
closed depots, and (4) determines if the military services adequately
consider other services' depots when they use methods other than
competition to redistribute the workloads. 

Depot Maintenance:
Opportunities to Privatize Repair of Military Engines

GAO/NSIAD-96-33, Mar.  5 (53 pages). 

In recent years, Congress has expressed continuing interest in the
Pentagon's management of its $15 billion depot maintenance program. 
One area of particular interest has been the allocation of depot
maintenance workload between the public and private sectors,
including various privatization initiatives.  This report addresses
the depot maintenance workload mix for an essential military
commodity--gas turbine engines.  GAO discusses (1) the rationale
supporting the continued need for DOD to be able to repair engines at
its own maintenance depots, (2) opportunities to privatize additional
engine workloads, and (3) the impact that excess capacity within
DOD's depot system has on the cost-effectiveness of decisions to
privatize additional workloads. 

Intelligence Agencies:
Personnel Practices at CIA, NSA, and DIA Compared With Those of Other
Agencies

GAO/NSIAD-96-6, Mar.  11 (68 pages). 

Intelligence agencies employ thousands of people who, for reasons of
national security, are not covered by federal personnel statutory
protections.  Members of Congress have raised concerns that
intelligence agency employees lack the same protections afforded
other federal workers.  GAO found that the Central Intelligence
Agency, the National Security Agency, and the Defense Intelligence
Agency have equal employment opportunity practices similar to those
of other federal agencies.  In contrast, adverse action practices at
the intelligence agencies vary by agency and by type of employee. 
The external appeals procedures at the intelligence agencies differ
from the procedures at other federal agencies in that most employees
may not appeal adverse actions to the Merit Systems Protection Board. 
GAO's review indicated that with the retention of summary removal
authorities, these intelligence agencies could follow standard
federal practices, including the right to appeal adverse actions to
the Merit Systems Protection Board, without undue risk to national
security.  GAO sees no justification for treating employees at these
intelligence agencies differently from employees at other federal
agencies except in rare national security cases. 

Navy Mine Warfare:
Budget Realignment Can Help Improve Countermine Capabilities

GAO/NSIAD-96-104, Mar.  13 (52 pages). 

Operation Desert Storm revealed major weaknesses in the Navy's
ability to detect and disarm enemy mines.  The Navy possessed only
limited capability at the time to conduct mine countermeasures at
various water depths.  In addition, two Navy warships struck Iraqi
mines in open waters in the Persian Gulf, causing $21.6 million worth
of damage.  By contrast, one of the mines was believed to cost
$10,000 and the other $1,500.  This report examines the steps the
Navy is taking to ensure a viable, effective naval force that will be
ready to conduct countermeasures in two nearly simultaneous regional
wars.  GAO evaluates the (1) status of the Navy's research and
development projects, (2) readiness of the Navy's on-hand mine
countermeasure assets, and (3) match between the Navy's planned and
on-hand mine countermeasures assets and its mine
countermeasures requirements. 

Army National Guard:
Validate Requirements for Combat Forces and Size Those
Forces Accordingly

GAO/NSIAD-96-63, Mar.  14 (14 pages). 

Although the Army National Guard has come down in size since the end
of the Cold War, the Guard's combat strength still exceeds what the
Defense Department needs to fight two major regional wars--the basic
goal of U.S.  military strategy today.  GAO recommends that the Army
validate the size and the structure of all the Guard's combat forces
and develop a plan to bring the size and the structure of these
forces in line with validated requirements.  Depending on the study's
conclusions, the Army should consider converting some Guard combat
forces to support roles.  To the extent that Guard forces exceed
validated requirements, the Army should consider eliminating them. 

Defense Logistics:
Requirement Determinations for Aviation Spare Parts Need to
Be Improved

GAO/NSIAD-96-70, Mar.  19 (20 pages). 

The Air Force and the Navy budgeted $132 million more than needed for
aviation spare parts because of questionable policies governing the
determination of requirements and the accountability for depot
maintenance assets.  The Air Force, in preparing its fiscal year 1996
budget for aviation parts, did not consider $72 million worth of
on-hand assets.  In computing its fiscal year 1997 requirements for
aviation parts, the Navy counted $60 million in depot maintenance
requirements twice.  GAO found that the Air Force and the Navy had
made other errors in computing their requirements because of poor
management oversight and internal controls.  The Air Force and the
Navy used unsupported or incorrect maintenance replacement rates,
demand rates, planned program requirements, repair costs, lead times,
due-out quantities, and asset quantities on hand and on order.  These
inaccuracies totaled $35 million for the items in GAO's sample alone
and resulted in some requirements' being overstated by $25 million
and others' being understated by $10 million. 

Air Force Maintenance:
Two Level Maintenance Program Assessment

GAO/NSIAD-96-86, Mar.  27 (21 pages). 

The Air Force's Two Level Maintenance program, which seeks to save
money by reducing maintenance staffing, equipment, and base-level
support without sacrificing force readiness, is not fully achieving
its intended benefits.  The estimated costs to implement the program
have increased, and the expected net savings have decreased--from
$385 million to $258 million.  In addition, not all program costs
have been included in the cost-savings analyses.  Under the program,
the turnaround time to repair avionics items generally have met Air
Force standards.  For engines, however, the turnaround times have
exceeded the standard by as many as 87 days.  The use of the program
to support troops during wartime will add to the airlift burden. 
Because the deployed forces will not have in-country intermediate
maintenance capability, the forces will have to depend on airlift for
spare and repair parts.  However, the theater commander, not the Air
Force, controls airlift priorities.  As a result, the theater
commander could decide that the need for combat power in the early
stages of a conflict outweighed the return of unserviceable items to
depot repair facilities and the movement of items from the depots to
the battlefront. 

DOD Bulk Fuel:
Services' Fuel Requirements Could Be Reduced and Funds Used for Other
Purposes

GAO/NSIAD-96-96, Mar.  28 (nine pages). 

For fiscal year 1996, bulk fuels requests by the Army, the Navy, and
the Air Force totaled $4.12 billion.  The three services planned to
spend $107 million of this amount, or 2.6 percent, on fuel from
commercial sources.  The rest was used to buy fuel from the Defense
Fuel Supply Center, which buys fuel from commercial sources and sells
it to the military services.  On the basis of historical usage data,
the Center estimates that the services' fuel purchases in fiscal year
1996 would total $3.57 billion, or about $440 million less than the
amount the services had requested in their budgets.  This estimate is
lower than the estimate made when the services submitted their budget
requests in January 1995.  At the time, the Center projected that the
services would buy $3.68 billion worth of fuel in fiscal year 1996,
or about $330 million less than the amount requested.  Because the
services' bulk fuel budgets are still overstated by about $440
million--$440 million less than the $100 million congressional
reduction--GAO suggests that Congress rescind the $340 million and
apply it to other unfunded needs. 

Military Airlift:
Observations on the Civil Reserve Air Fleet Program

GAO/NSIAD-96-125, Mar.  29 (six pages). 

This report provides information on the Civil Reserve Air Fleet
Program, which augments military airlift during emergencies. 
According to Air Mobility Command documents, fleet aircraft played a
vital role in Operations Desert Storm and Desert Shield by providing
62 percent of the Air Force's passenger airlift capability and 27
percent of its its cargo airlift capability.  GAO discusses the (1)
extent to which participation by commercial carriers in the program
meets wartime requirements, (2) Defense Department's efforts to
ensure future carrier participation, and (3) recent review of the
program that was directed by the C-17 Defense Acquisition Board. 

DOD Research:
Acquiring Research by Nontraditional Means

GAO/NSIAD-96-11, Mar.  29 (22 pages). 

With considerable support from Congress, the Defense Department (DOD)
has made acquisition reform one of its top priorities as it tries to
reduce the cost of maintaining technological superiority in an era of
tighter military budgets.  Acquisition reform has generally focused
on measures affecting DOD procurements.  However, DOD is also
investigating new approaches in its science and technology efforts,
including using cooperative agreements and other transaction
instruments to enter into research projects with commercial firms and
consortia.  DOD has cited the use of cooperative agreements and other
transaction instruments as a way to (1) reduce barriers to
integrating the defense and civilian sectors of the industrial base,
(2) promote new relationships and practices within the defense
industry, and (3) allow the government to leverage for defense
purposes the private sectors' financial investments in research and
development of commercial products and processes.  This report
discusses DOD's use of these instruments to further these three
objectives.  GAO also discusses issues concerning the selection and
the structure of
the instruments. 

DOD Training:
Opportunities Exist to Reduce the Training Infrastructure

GAO/NSIAD-96-93, Mar.  29 (20 pages). 

One source of funds to pay for the acceleration of the Defense
Department's (DOD) modernization is to reduce infrastructure.  This
report summarizes the status of DOD's efforts to reduce its formal
training infrastructure--a small but important part of the total
infrastructure.  DOD defines its training infrastructure to include
billeting, mess facilities, classrooms, equipment, software packages,
and instructors.  This report determines (1) the size of the active
forces' formal training infrastructure and (2) actions to reduce or
streamline it. 


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

Federally Funded R&D Centers:  Observations on DOD Actions to Improve
Management, by David E.  Cooper, Associate Director for Defense
Acquisition Issues, before the Subcommittee on Military Research and
Development, House Committee on National Security. 
GAO/T-NSIAD-96-117, Mar.  5 (12 pages). 

The Defense Department (DOD) established an internal advisory group
to review, and recommend improvements to, DOD's management of its
federally funded research and development centers.  Its work resulted
in an action plan, which was provided to Congress in May 1995.  In
February 1996, DOD updated the status of its action plan.  This
testimony focuses on the following key issues presented in the plan
and discussed in the status update:  (1) developing guidelines to
ensure that management fees provided to the centers are based on need
and detailed justification; (2) defining core work appropriate for
the centers; (3) establishing criteria for the acceptance of work
outside the core by the centers' parent corporation; and (4) creating
an independent advisory committee to review DOD's management, use,
and oversight of its centers. 

Chemical and Biological Defense:  Emphasis Remains Insufficient to
Resolve Continuing Problems, by Mark E.  Gebicke, Director of
Military Operations and Capabilities Issues, before the Subcommittee
on Military Research and Development, House Committee on National
Security.  GAO/T-NSIAD-96-123, Mar.  12 (eight pages). 

U.S.  troops remain highly vulnerable to attack from biological and
chemical agents because the Defense Department has yet to address
many shortcomings identified during the Persian Gulf War, including
inadequate training, a lack of decontamination kits and other
equipment, and a shortage of vaccine stocks.  Problems in chemical
and biological defense are likely to continue unless the Pentagon
designates this area a higher priority.  The Defense Department has
spent less than one percent of its budget on chemical and biological
warfare defense, and from 1992 to 1995, funding in real terms fell by
30 percent. 

DOD Reserve Components:  Issues Pertaining to Readiness, by Richard
Davis, Director of National Security Analysis Issues, before the
Subcommittee on Readiness, Senate Committee on Armed Services. 
GAO/T-NSIAD-96-130, Mar.  21 (10 pages). 

This testimony makes three main points.  First, the Army National
Guard has considerable excess combat forces at the same time that the
Army has a substantial need for combat support units.  Second, the
readiness of some Army National Guard combat brigades for early
deployment to support the defense strategy is highly uncertain.  As a
result, GAO questions whether the roles and the missions of the Army
Guard need to be modified.  Third, the Army National Guard has forces
assigned to the continental air defense.  This dedicated force is not
needed today.  Considerable money could be available for other
critical needs if the dedicated forces were eliminated and the
mission was assigned to existing forces. 


C-17 Aircraft:  Comments on Air Force Request for Approval of
Multiyear Procurement Authority, by Louis J.  Rodrigues, Director of
Defense Acquisition Issues, before the Subcommittee on Seapower,
Senate Committee on Armed Services.  GAO/T-NSIAD-96-137, Mar.  28 (11
pages). 

This testimony discusses the proposed multiyear procurement of the
C-17 aircraft.  This is a particularly critical decision because this
proposal would require legislation authorizing a seven-year multiyear
contract.  The short time frame for congressional action--McDonnell's
offer expires on June 1, 1996--also places an unusual burden on
decisionmakers.  In GAO's view, the proposed C-17 multiyear contract
presents the Air Force with the opportunity for savings, but the
amounts involved are substantially less than the $896 million that
has been publicized.  Further, these potential savings are not
without both costs and risk.  GAO believes that Congress should allow
the government to have until the fiscal year 1999 authorization and
appropriation cycle to assess the contractor's ability to produce the
aircraft at the required rate.  If the contractor's performance is
inadequate, the government could revert to an annual buy contract
without renegotiating the not-to-exceed option prices for the
remaining lots.  Also, the Defense Department should ensure that the
contractor is ready to move to the higher production rate. 


   NATURAL RESOURCES
-------------------------------------------------------- Appendix 0:16

Federal Land Management:
Information on Efforts to Inventory Abandoned Hard Rock Mines

GAO/RCED-96-30, Feb.  23 (18 pages). 

Thousands of hard rock mines lie abandoned on federal lands.  Many of
these mines present physical safety hazards, and a smaller number
cause environmental problems through, for example, acid drainage that
carries toxic concentrations of heavy metals.  Many of these
abandoned mines are found on federal lands in the West managed by the
Bureau of Land Management, the National Park Service, the Fish and
Wildlife Service, or the Forest Service.  This report focuses on
these agencies because they manage 623 million acres, or 95 percent,
of the federal lands in the United States.  GAO discusses the (1)
approximate number of abandoned hard rock mines on federally managed
lands, (2) types of hazards these mines pose, and (3) approximate
cost to reclaim these mines. 

Land Ownership:
Information on the Acreage, Management, and Use of Federal and Other
Lands

GAO/RCED-96-40, Mar.  13 (48 pages). 

Data from the four primary agencies managing federal lands--the
Forest Service, the Bureau of Land Management, the Fish and Wildlife
Service, and the National Park Service--show that the total acreage
under their control decreased from about 700 million acres to 622.8
million acres between 1964 and 1994.  Nearly 44 percent of the 622.8
million acres were managed primarily for conservation and had some
limitations on their use.  As of September 1994, the federal
government had obtained rights-of-use for about 3 million acres of
nonfederal land.  The federal government held about 52.3 million
acres in trust for Indians in 1995.  Thirteen western states owned a
total of about 142 million acres.  Three nonprofit organizations--the
Nature Conservancy, The Conservation Fund, and The Trust for Public
Land--transferred about 3.2 million acres to other public and private
groups between 1964 and 1994.  GAO summarized this report in
testimony before Congress; see: 

Federal Lands:  Information on the Acreage, Management, and Use of
Federal and Other Lands, by Barry T.  Hill, Associate Director for
Energy, Resources, and Science Issues, before the Subcommittee on
National Parks, Forests, and Lands, House Committee on Resources. 
GAO/T-RCED-96-104, Mar.  21 (seven pages). 


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

Forest Service:  Issues Related to Managing National Forests for
Multiple Uses, by Barry T.  Hill, Associate Director for Energy,
Resources, and Science Issues, before the Subcommittee on National
Parks, Forests, and Lands, House Committee on Resources. 
GAO/T-RCED-96-111, Mar.  26
(13 pages). 

The Forest Service is required to manage its lands for multiple uses,
including timber, livestock forage, recreation, fish and wildlife,
wilderness, and water supply.  To carry out this mandate, the Forest
Service uses a decisionmaking process that includes developing
management plans, commonly called forest plans, and reaching
decisions on implementing these plans.  GAO's work on the Forest
Service during the past several years has underscored the lack of (1)
adequate scientific and socioeconomic data to make the necessary
trade-offs among various values and concerns, (2) adequate
coordination within the Forest Service and between federal agencies
to address matters that transcend the boundaries of ownership and
jurisdiction, and (3) incentives for federal and nonfederal
stakeholders to cooperate in resolving their differences. 

Federal Lands:  Views on H.R.  2941--A Bill to Improve Housing for
Employees of Land Management Agencies, by Barry T.  Hill, Associate
Director for Energy, Resources, and Science Issues, before the
Subcommittee on National Parks, Forests, and Lands, House Committee
on Resources.  GAO/T-RCED-96-110, Mar.  26 (10 pages). 

Proposed legislation before Congress--H.R.  2941--would improve
employee housing within the federal land management agencies.  This
testimony focuses on the National Park Service, which, with 4,700
units, is the largest of all the land management agencies.  GAO
testified that about 11 percent of the Park Service's housing
inventory was in poor or obsolete condition.  Moreover, the Park
Service's backlog of repair, maintenance, and replacement needs may
exceed $500 million.  Insufficient rental income from employees and
competing demands for limited operating funds are the main reasons
for the backlog.  H.R.  2941 contains provisions that would help
address some of these problems by providing the Park Service with
greater authority to enter into alternative financing arrangements
and by requiring the agency to obtain more-detailed information on
the scope, the depth, and the justification for its
housing needs. 


   SCIENCE, SPACE, AND TECHNOLOGY
-------------------------------------------------------- Appendix 0:17

Scientific Research:
Continued Vigilance Critical to Protecting Human Subjects

GAO/HEHS-96-72, Mar.  8 (46 pages). 

Experiments ranging from the 40-year Tuskegee study, in which
treatment was withheld from black men with syphilis, to the recently
disclosed Cold War radiation experiments have revealed breakdowns in
the protection of human subjects in government research.  Questions
have been raised about whether study participants understood what
they would be subjected to and had an adequate opportunity to decline
to participate.  GAO found that better oversight of tens of thousands
of research projects funded by the Department of Health and Human
Services and drug studies regulated by the Food and Drug
Administration appears to have reduced the likelihood of serious
abuses of human subjects.  The conspicuous activity of local
institutional review boards and human subject protection efforts by
federal agencies have heightened the research community's awareness
of ethical conduct standards, increased compliance with federal
regulations, and served as deterrents to abuse of subjects' rights
and welfare.  However, little data exist that directly measure the
effectiveness of human subject protection regulations.  At the same
time, no practical level of oversight can guarantee that each
researcher will protect subjects with complete integrity.  Time,
resource, and other pressures threaten to reduce the effectiveness of
local review board and federal agency oversight.  As a result,
continued vigilance over human subject research must remain a
priority for the research community and the oversight agencies.  GAO
summarized this report in testimony before Congress; see: 

Scientific Research:  Continued Vigilance Critical to Protecting
Human Subjects, by Sarah F.  Jaggar, Director of Health Financing and
Public Health Issues, before the Senate Committee on Governmental
Affairs.  GAO/T-HEHS-96-102, Mar.  12 (nine pages). 

Space Shuttle:
Need to Sustain Launch Risk Assessment Process Improvements

GAO/NSIAD-96-73, Mar.  26 (64 pages). 

The 1986 explosion aboard the space shuttle Challenger underscored
the risks inherent in human space flight.  The Presidential
Commission investigating the accident found that it had been caused
by poor rocket motor design, but the Commission also cited as a
contributing factor shortcomings in NASA's processes for identifying,
assessing, and managing risk.  This report reviews the steps that
NASA has taken to improve the free flow of information in launch
decisions and the progress NASA has made in adopting quantitative
methods for assessing risk. 


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

Earth Observing System:  Cost and Research Issues, by Brad Hathaway,
Associate Director for Defense Management Issues, before the House
Committee on Science.  GAO/T-NSIAD-96-116, Mar.  6 (14 pages). 

This testimony focuses on NASA's Earth Observing System, which will
use a network of satellites to collect and distribute climate data. 
Teams of scientists will convert the data into useful information and
conduct research using it.  GAO discusses (1) its previous work on
the investment that will be required over the life of the system and
(2) its ongoing work on NASA's strategy for maximizing the scientific
return on that investment by ensuring that an adequate research
community will be available to analyze the large amount of data
expected to be generated by the system. 

Federal Research:  Interim Assessment of the Small Business
Innovation Research and Technology Transfer Programs, by Victor S. 
Rezendes, Director of Energy, Resources, and Science Issues, before
the House Committee on Small Business.  GAO/T-RCED-96-93, Mar.  6
(eight pages). 

The Small Business Innovation Research and Technology Transfer
Programs were created to further technological innovation and to help
small businesses translate research and development into new
products.  Both programs appear favorable, although it is too early
to make a conclusive judgment about the long-term quality of the
research.  In addition, the agencies have taken steps to address such
concerns as duplicative funding of Small Business Innovation Research
projects and potential conflicts in the Technology Transfer Program. 
Overall, the Technology Transfer Program so far appears to be
promising.  More time will be needed, however, to know whether the
program is meeting a unique need or duplicating the work of the Small
Business Innovation Research Program.  Key questions about the
transfer of technology from research institutions to the marketplace
need to be answered before determining the need for the Technology
Transfer Program. 


   SOCIAL SERVICES
-------------------------------------------------------- Appendix 0:18

At-Risk and Delinquent Youth:
Multiple Federal Programs Raise Efficiency Questions

GAO/HEHS-96-34, Mar.  6 (98 pages). 

The federal government now runs 131 programs in 16 agencies to
benefit delinquent youth.  Many of the programs GAO has examined
provide a range of services--from counseling to job training to
research and evaluation.  The services most commonly authorized are
substance abuse intervention and training and technical assistance. 
Many programs also have multiple target groups, ranging from poor
youth to abused and neglected youth to school dropouts.  The current
system of federal programs for at-risk or delinquent youth creates
the potential for overlap of services.  GAO identifies many instances
of two or more programs' offering similar services to the same target
groups, raising questions about the overall efficiency of federal
efforts to help these youngsters. 


   TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:19

Tax Policy and Administration:
1995 Annual Report on GAO's Tax-Related Work

GAO/GGD-96-61, Mar.  8 (98 pages). 

This report summarizes GAO's work in the tax area during fiscal year
1995.  It discusses actions taken on GAO's recommendations as of the
end of 1995, recommendations that GAO made to Congress before and
during fiscal year 1995 that have not been acted upon, and
assignments for which GAO was given access to tax information under
the law.  GAO's key recommendations for tax policy and administration
relate to the need for improving compliance with the tax laws,
assisting taxpayers, enhancing the effectiveness of tax incentives,
improving Internal Revenue Service management, and improving the
processing of returns and receipts.  GAO highlights notable reports
and testimony from fiscal year 1995. 

Tax Administration:
Making IRS' Telephone Systems Easier to Use Should
Help Taxpayers

GAO/GGD-96-74, Mar.  11 (20 pages). 

Three prototype interactive telephone systems--designed to reduce
correspondence between the Internal Revenue Service (IRS) and
taxpayers and to make IRS more accessible--suffer from too many menu
options and other problems.  Resolving these shortcomings is
essential if IRS is to achieve its goal of handling 45 percent of
taxpayer calls by using interactive phone systems.  IRS'
telephone-routing system requires taxpayers to remember up to eight
menu options, even though the contractor guidelines called for no
more than four, and does not allow taxpayers to return to the main
menu when they make a mistake or want to resolve other issues.  IRS
has yet to do a cost-benefit analysis of the use of multiple
toll-free numbers, which IRS officials had recommended as a solution
to the problem of too many menu options.  Providing taxpayers with a
written, detailed step-by-step description on how to use the menu
options might be another way to make the telephone systems more user
friendly.  IRS complied with government security requirements when
developing its first three interactive telephone systems.  However,
future interactive systems will allow taxpayers greater access to tax
information, and more-secure features, such as a personal
identification number, may be needed to protect taxpayer data. 

Tax Administration:
IRS Can Improve Information Reporting for Original Issue
Discount Bonds

GAO/GGD-96-70, Mar.  15 (26 pages). 

Information reporting is a vital tool for the Internal Revenue
Service (IRS) in promoting voluntary compliance with U.S.  income tax
laws.  This reporting, which is done through a series of returns
designed to report nonwage income on IRS Forms 1099, is intended to
ensure that taxpayers know of and report investment and other income
on their tax returns.  This report focuses on IRS efforts to ensure
that investment income earned from bonds sold at "original issue
discount" is reported.  Those efforts center on an IRS
publication--List of Original Issue Discount Instruments--that
furnishes data for use in preparing Form 1099.  GAO discusses (1)
whether the publication provides a complete list of existing original
issue discount bonds, (2) how IRS ensures that the list is complete,
and (3) whether the publication's target audience uses the
publication in preparing Form 1099. 


      TESTIMONY
------------------------------------------------------ Appendix 0:19.1

Status of Tax Systems Modernization, Tax Delinquencies, and the
Potential for Return-Free Filing, by Lynda D.  Willis, Director of
Tax Policy and Administration Issues, and Dr.  Rona B.  Stillman,
Chief Scientist, Computer and Telecommunication Issues, before the
Subcommittee on Treasury, Postal Service, and General Government,
House Committee on Appropriations.  GAO/T-GGD/AIMD-96-88, Mar.  14
(38 pages). 

Regarding the Internal Revenue Service's (IRS) Tax Systems
Modernization effort, GAO is concerned about various weaknesses
involving the electronic-filing strategy, software development, and
other factors that jeopardize the success of this multimillion-dollar
project.  Until these deficiencies are corrected, IRS' ability to
successfully complete Tax Systems Modernization seems doubtful.  In
addition to more-effective use of technology, increased filing
options could benefit both taxpayers and IRS.  For example, if
certain obstacles can be overcome, return-free filing can ease the
burden for taxpayers while reducing the amount of paper IRS must
process.  In tax collection, IRS has made little progress in solving
its accounts receivable problems.  IRS continues to grapple with (1)
inaccurate and unreliable information, (2) antiquated computers and a
rigid collection process, (3) unintended problems with safeguards
against potential taxpayer abuses, (4) a lack of accountability in
its organizational structure, and (5) staffing imbalances.  As a
result, IRS cannot be sure how much money the government is owed or
how much of the debt is collectible. 

Tax Administration:  IRS' Fiscal Year 1996 and 1997 Budget Issues and
the 1996 Filing Season, by Lynda D.  Willis, Director of Tax Policy
and Administration Issues, before the Subcommittee on Oversight,
House Committee on Ways and Means.  GAO/T-GGD-96-99, Mar.  28 (30
pages). 

The Internal Revenue Service's (IRS) 1996 appropriation totaled $7.3
billion--$860 million less than what the President had requested and
$160 million less than IRS' fiscal year 1995 appropriation.  To cover
the resulting labor cost shortfall, IRS reduced travel and overtime
costs, cash awards, hours for seasonal staff, and the number of
nonpermanent staff.  IRS wanted to ensure that it had enough staff to
process returns and issue refunds, so most of the cuts were absorbed
by compliance programs.  The 1996 filing season seems to be going
more smoothly than last year's in some key respects.  Most
importantly, IRS is delaying fewer refunds this year while it
validates social security numbers and earned income credit claims. 
Also, taxpayers appear to be having an easier time reaching IRS by
telephone this year, and more taxpayers are using alternative filing
methods.  However, concerns still exist.  For example, the percentage
of calls IRS answers compared with the number it receives is still
low.  Also, IRS closed many walk-in sites this year.  IRS is
requesting nearly $8 billion for fiscal year 1997.  The largest
increases are for compliance initiatives and Tax Systems
Modernization, two areas that have been plagued by problems in the
past.  GAO doubts whether IRS can make effective use of Tax Systems
Modernization development funds at this time. 


   TRANSPORTATION
-------------------------------------------------------- Appendix 0:20


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

Railroad Safety:  DOT Faces Challenges in Improving Grade Crossing
Safety, Track Inspection Standards, and Passenger Car Safety, by
Phyllis F.  Scheinberg, Associate Director for Transportation and
Telecommunications Issues, before the Subcommittee on Railroads,
House Committee on Transportation and Infrastructure. 
GAO/T-RCED-96-114, Mar.  5 (19 pages). 

Recent rail accidents at Cajon Pass, California; Silver Spring,
Maryland; and Weyauwega, Wisconsin, have heightened concern about the
safety of passenger and freight lines in the United States.  Since
1987, GAO has issued many reports describing safety problems on the
nation's rail lines.  This statement draws on recent GAO reports
discussing safety at highway railroad crossings, the adequacy of
track safety inspections and enforcement, and the safety of passenger
cars operated by commuter railroads and Amtrak. 

DOT's Budget:  Challenges Facing the Department in Fiscal Year 1997
and Beyond, by John H.  Anderson, Jr., Director of Transportation
Issues, before the Subcommittee on Transportation, House Committee on
Appropriations.  GAO/T-RCED-96-88, Mar.  7 (49 pages). 

The Department of Transportation (DOT), which received more than $35
billion in appropriations for fiscal year 1996, is responsible for
ensuring the safe and the efficient movement of people and goods and
cost-effective investment in the nation's transportation and
infrastructure, including its highway and transit systems, airports,
airways, ports, and waterways.  Pressures to reduce federal spending
will increase competition among the various transportation
administrations for scarce federal dollars.  This testimony focuses
on the challenges facing DOT and its various modal administrations
during fiscal year 1997 and beyond, particularly as they affect
surface transportation, the Federal Aviation Administration, and the
Coast Guard. 

Airport Improvement Program:  Military Airport Program and Reliever
Set-Aside Update, by John H.  Anderson, Jr., Director of
Transportation and Telecommunications Issues, before the Subcommittee
on Aviation, House Committee on Transportation and Infrastructure. 
GAO/T-RCED-96-94, Mar.  13 (seven pages). 

The Military Airport Program set-aside fund was created to help
current and former military airports in congested metropolitan areas
convert to civilian aviation use.  Congress established the reliever
airport set-aside fund to reduce congestion at commercial airports as
well as provide general aviation with greater access to airports. 
This testimony provides an overview of GAO's work on the Military
Airport Program and the reliever set-aside--in particular, two June
1994 reports (GAO/RCED-94-209 and GAO/RCED-94-226)--and updates the
status of each program. 


Airport Improvement Program:  State Block Grant Pilot Program Is a
Success, by Gerald L.  Dillingham, Associate Director for
Transportation Issues, before the Subcommittee on Aviation, House
Committee on Transportation and Infrastructure.  GAO/T-RCED-96-86,
Mar.  14 (18 pages). 

The Federal Aviation Administration (FAA) has traditionally provided
Airport Improvement Program funds directly to airports.  In 1987,
Congress authorized FAA to begin a pilot program using state block
grants to provide program funds to small airports.  Under the pilot
program, FAA provides program funds directly to states that, in turn,
select and fund projects at small airports.  Participating states
have assumed FAA's inspection and oversight role at these airports. 
Seven states were selected to participate in the current program,
which will expire at the end of 1996 unless it is reauthorized.  This
testimony discusses the (1) extent to which the seven states are
providing the same level of services to small airports that FAA
provided, (2) factors that have enhanced the states' ability to
perform effectively, (3) benefits that have accrued from the states'
participation, (4) problems that have arisen during the pilot
program, and (5) level of interest that other states have shown in
the program. 

International Aviation:  DOT's Efforts to Increase U.S.  Airlines'
Access to International Markets, by John H.  Anderson, Jr., Director
of Transportation and Telecommunications Issues, before the
Subcommittee on Aviation, Senate Committee on Commerce, Science, and
Transportation.  GAO/T-RCED-96-32, Mar.  14 (21 pages). 

Of the 95 million passengers who flew on scheduled flights between
the United States and the rest of the world in 1995, nearly 11.5
million flew to or from the United Kingdom, making it the largest
U.S.  aviation trading partner overseas.  Because of the size of this
market and the fact that the United Kingdom is a key gateway to
Europe, Africa, and the Middle East, U.S.  airlines strongly desire
greater access to London's Heathrow Airport.  In recent years,
however, the Department of Transportation (DOT) has had limited
success in negotiating increased opportunities for U.S.  airlines at
this airport.  This testimony discusses (1) how limited U.S. 
leverage affects current negotiations with the United Kingdom and (2)
the importance of data and economic analysis in strengthening DOT's
negotiating position and options to improve the negotiating process. 


   VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:21

Veterans' Health Care:
VA's Approaches to Meeting Veterans' Home Health Care Needs

GAO/HEHS-96-68, Mar.  15 (24 pages). 

In fiscal year 1994, the Department of Veterans Affairs (VA) provided
home health care to more than 40,000 veterans at a cost of $64
million to VA and millions more to Medicare.  By providing them with
home health care, VA allows these veterans to continue living at home
and in their communities, rather than receive care in institutions. 
Veterans may need home health care for various reasons.  Some
veterans may have chronic health problems, such as heart disease, and
require periodic visits, while others may be discharged from VA
medical centers following surgery and need dressings changed or
medications administered.  The number of veterans needing home health
care is expected to grow as the veteran population ages and as VA
discharges patients from its hospitals to reduce the costs of
hospitalization.  This report provides information on (1) the
characteristics and the services of the home health care programs
that VA uses, (2) the available data on program costs, and (3) the
way in which VA ensures that veterans receive quality service. 


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

VA Health Care:  Opportunities to Increase Efficiency and Reduce
Resource Needs, by David P.  Baine, Director of Health Care Delivery
and Quality Issues, before the Subcommittee on VA, HUD, and
Independent Agencies, Senate Committee on Appropriations. 
GAO/T-HEHS-96-99, Mar.  8 (25 pages). 

With a fiscal year 1995 appropriation of $16.2 billion, the
Department of Veterans Affairs (VA) health care system faces mounting
pressure to contain or reduce spending as part of governmentwide
efforts to reach a balanced budget.  This testimony addresses (1)
VA's forecasts of future resource needs, (2) opportunities to run the
VA system more efficiently, (3) differences between VA and the
private sector in terms of initiatives to become more efficient, and
(4) recent VA efforts to reorganize its health care system and create
incentives to operate more efficiently. 

VA Health Care:  Approaches for Developing Budget-Neutral Eligibility
Reform, by David P.  Baine, Director of Health Care Delivery and
Quality Issues, before the Senate Committee on Veterans' Affairs. 
GAO/T-HEHS-96-107, Mar.  20 (43 pages). 

Reforming eligibility for health care benefits offered by the
Department of Veterans Affairs (VA) would pose a major challenge even
with unlimited resources.  But with Congress and VA facing mounting
pressure to limit VA health care spending as part of governmentwide
efforts to reduce the deficit, this challenge has become even
greater.  This testimony discusses (1) the problems that VA's current
eligibility and contracting provisions create for veterans and
providers, (2) the relationship between inappropriate admissions to
VA hospitals and VA eligibility provisions, (3) proposals to reform
VA eligibility and contracting rules and their potential impact on
the deficit, and (4) options to achieving budget-neutral eligibility
reform. 


   SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:22

Abstracts of Reports and Testimony:
Fiscal Year 1995

GAO/OIMC/OPA-96-1A and GAO/OIMC/OPA-96-1B (indexes), Feb.  1996 (199
pages and 396 pages). 

Copies are now available of this comprehensive guide to GAO reports
and testimony.  A two-volume set, this reference publication provides
an overview of the agency's work during fiscal year 1995.  The first
volume summarizes more than 1,000 "blue books" and other publications
issued between October 1994 and September 1995.  The second volume
contains indexes that allow the reader to locate quickly documents
that are
of interest. 

Aging Issues:
Related GAO Reports and Activities in Fiscal Year 1995

GAO/HEHS-96-82, Mar.  6 (54 pages). 

This booklet provides a compilation of GAO's fiscal year 1995
products and ongoing work on older Americans.  Because the elderly
are one of the fastest-growing segments of American society today,
Congress faces a host of issues--from health care to social security
to pensions--in which the federal government will play an important
role.  This booklet is divided into three sections, which summarize
different types of GAO products relating to older Americans:  reports
and correspondence, testimony before Congress, and ongoing work. 
Overall, health, income security, and veterans issues were the areas
most frequently addressed by GAO work on older Americans. 

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

GAO/HEHS-96-97W, Mar.  1996 (41 pages). 

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


*** End of document. ***