Reports and Testimony: October 1996 (Other Written Prod., 10/01/96,
GAO/OPA-97-1).
GAO published its monthly digests of reports and testimony published in
October 1996.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: OPA-97-1
TITLE: Reports and Testimony: October 1996
DATE: 10/01/96
SUBJECT: Commercial aviation
Health care programs
Nuclear proliferation
Environmental monitoring
Income maintenance programs
Veterans benefits
Child support payments
International relations
Defense capabilities
Transportation operations
IDENTIFIER: Medicare Program
North Korea
South Korea
DOE Yucca Mountain Project (NV)
UN Conference on the Human Environment
USPS Express Mail Program
Medicaid Program
Minnesota
Missouri
Ohio
Washington
Bibliographies
Social Security Disability Insurance Program
Supplemental Security Income Program
FAA Computer Display Channel System
FAA Display Channel Complex Rehost Project
Japan
Vietnam
Asia
Hong Kong
Indonesia
Russia
BATF Out-of-Business Records System
BATF Multiple Sales Reports System
B-2 Aircraft
******************************************************************
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REPORTS AND TESTIMONY:
OCTOBER 1996
GAO/OPA-97-1
Highlights
Aviation Safety
Although both new and established airlines experience infrequent
accidents, new airlines have higher rates, on average, than do
established carriers. This does not mean that new airlines do not
provide safe transportation, but it does demonstrate the need for
better targeting of the Federal Aviation Administration's limited
inspection resources. Page 18.
Medicare HMO Data
Nearly 4 million Medicare beneficiaries have opted to join health
maintenance organizations, yet Medicare does not provide them with
comparative consumer guides that are routine with employer-based
health insurance plans. Comparative information is available and
should be packaged and distributed to help consumers choose among
competing Medicare HMOs. Page 4.
Nuclear Nonproliferation
The United States in 1994 formed an international consortium to
replace North Korea's nuclear reactors with a type that cannot be as
easily used to produce materials for nuclear weapons. GAO cautions
that the new reactors should not be commissioned until full liability
protection is in place to protect consortium members from damages in
case of a nuclear accident. Page 12.
GAO/OPA-97-1
Abbreviations
=============================================================== ABBREV
ATF - x
CPA - x
DCC - x
DOD - x
DOE - x
DOT - x
EPA - x
FAA - x
FHA - x
HCFA - x
HMO - x
NTSB - x
OIG - x
IRS - x
RDT&E - x
SSA - x
SSI - x
USDA - x
VA - x
REPORTS AND TESTIMONY: OCTOBER
1996
=========================================================== Appendix 0
EDUCATION
--------------------------------------------------------- Appendix 0:1
Intercollegiate Athletics:
Status of Efforts to Promote Gender Equity
GAO/HEHS-97-10, Oct. 25 (42 pages).
More than 100,000 American women now participate in intercollegiate
athletics each year--a four-fold increase since enactment of title IX
of the Education Amendments of 1972, which prohibits sex
discrimination in intercollegiate athletics at colleges and
universities receiving federal financial assistance. Some have seen
this increase as a move toward "gender equity" in athletics, while
others point out that a gap still remains in overall opportunity
between men's and women's programs. This report discusses (1) the
steps that the Department of Education and the National Collegiate
Athletic Association have taken since 1992 to promote equity between
men and women participating in intercollegiate athletics, (2) the
steps that states have taken to promote gender equity in athletic
programs at colleges, and (3) what existing studies show about the
progress made since 1992 in promoting gender equity in
intercollegiate athletics.
ENERGY
--------------------------------------------------------- Appendix 0:2
Department of Energy:
Unethical Conduct at DOE's Yucca Mountain Project
GAO/OSI-96-2, Sept. 30 (19 pages).
Congress created the Office of Civilian Radioactive Waste Management
within the Department of Energy (DOE) to manage the disposal of
highly radioactive waste generated at civilian nuclear power plants.
The centerpiece of the disposal program is the Yucca Mountain Site
Characterization Project, whose purpose is to determine whether the
Yucca Mountain site in Nevada is suitable for permanent disposal of
highly radioactive waste. Allegations have been raised about
conflicts of interest at the Yucca Mountain Project. A similar issue
surfaced in 1987 involving the Office's top management and the award
of the project's management contract. This report examines whether
DOE properly implemented or adequately enforced federal standards of
ethical conduct and DOE ethics regulations at the project.
ENVIRONMENTAL PROTECTION
--------------------------------------------------------- Appendix 0:3
Peer Review:
EPA's Implementation Remains Uneven
GAO/RCED-96-236, Sept. 24 (26 pages).
Peer review is the critical evaluation of scientific and technical
work products by independent experts. Senior officials at the
Environmental Protection Agency (EPA) have said that peer review is
an important mechanism for enhancing the quality, credibility, and
acceptability of products that may ultimately form the basis of
regulations and other key agency decisions. Properly implemented,
peer review can also save money by steering product development along
the most efficient, effective course, thereby avoiding costly and
time-consuming delays. EPA's current policy, issued in June 1995,
expands the agency's prior policies and practices and continues to
stress that major scientific and technical work products should be
peer reviewed. This report assesses EPA's (1) progress in
implementing its peer review policy and (2) efforts to improve the
peer review process.
International Environment:
U.S. Funding of Environmental Programs and Activities
GAO/RCED-96-234, Sept. 30 (40 pages).
In recent decades, nations have entered into an increasing number of
agreements to address environmental concerns, both regional and
global. Since 1972, when more than 130 countries took part in the
United Nations Conference on the Human Environment, the number of
such agreements in which the United State participates or in which it
has a significant interest has swelled from fewer than 50 to more
than 170. Accompanying the rise in the number of international
agreements has been an increase in spending by the world community to
deal with transboundary environmental issues. Members of Congress
have raised concerns about the absence of consolidated budget
information on the funding of international environmental activities
by the federal government. This report discusses the overall level
of federal funding for international environmental activities,
including specific programs, treaty negotiations, information
exchanges, conferences, and research. GAO identifies (1) funding by
individual federal agencies and (2) federal financial support for the
environmental programs and activities of the United Nations, the
World Bank, and other multilateral financial institutions.
GOVERNMENT OPERATIONS
--------------------------------------------------------- Appendix 0:4
Inspectors General:
Handling of Allegations Against Senior OIG Officials
GAO/OSI-97-1, Oct. 15 (26 pages).
This report reviews the handling of allegations of misconduct made
against senior officials between 1990 and 1995 at the 28 Offices of
Inspector General (OIG) with a presidentially appointed Inspector
General. Members of Congress have raised concerns about how the
President's Council on Integrity and Efficiency and the OIG have
handled allegations against senior OIG officials. GAO discusses
whether the Council or the OIGs had policies and procedures for
handling such allegations and whether the allegations and resulting
investigations were handled according to these policies and
procedures. Executive Order No. 12993--"Administrative Allegations
Against Inspectors General"--was signed in March 1996, and GAO notes
its effect on the handling of allegations against Inspectors General
and their senior staff.
U.S. Postal Service:
Revenue Losses From Express Mail Accounts Have Grown
GAO/GGD-97-3, Oct. 24 (27 pages).
The Postal Service's Express Mail corporate accounts allow customers
to deposit money with the Service for use as needed to pay for
Express Mail delivery services. Concerns have been raised in
Congress about the Service's controls over these accounts, in part
because some customers allegedly obtained Express Mail services using
bogus accounts that were not caught by the Service. This report
discusses (1) whether there is any basis for the allegation about
account abuse and (2) what steps the Service is taking and could take
to help avoid or minimize account revenue losses.
HEALTH
--------------------------------------------------------- Appendix 0:5
Medicare:
HCFA Should Release Data to Aid Consumers, Prompt Better
HMO Performance
GAO/HEHS-97-23, Oct. 22 (60 pages).
Until recent years, nearly all Medicare beneficiaries received care
through a fee-for-service arrangement, with benefits and cost-sharing
provisions standardized nationwide. Today, however, nearly 4 million
beneficiaries have opted for health maintenance organizations (HMO),
Medicare's leading managed care alternative. Although HMOs must
cover the benefits available under traditional fee-for-service
Medicare, they differ from one another in the provision of additional
benefits, required premiums, provider networks, and ability to
satisfy members. As a result, beneficiaries need reliable
information to pick the plan that is right for them. Some
beneficiaries do not understand even the basic difference between
traditional Medicare and HMOs and may confuse HMOs with supplemental
"Medigap" insurance. Moreover, some HMO sales agents have misled or
used other questionable marketing practices to enroll poorly informed
beneficiaries. This report reviews (1) the performance of the Health
Care Financing Administration (HCFA), which administers Medicare, in
providing beneficiaries with enough information on Medicare HMOs and
(2) the usefulness of readily available HCFA data to caution
beneficiaries about poorly performing HMOs.
Medicaid:
Oversight of Institutions for the Mentally Retarded Should
Be Strengthened
GAO/HEHS-96-131, Sept. 6 (32 pages).
Medicaid provides more than $5 billion each year to support state
institutions that house and care for the mentally retarded. Despite
federal standards, serious quality-of-care problems exist at some
institutions. Insufficient staffing, lack of treatments to enhance
patients' independence and functional ability, and deficient medical
and psychiatric care are some of the shortcomings that have been
cited most frequently. In a few cases, these practices have led to
injuries, illness, physical degeneration, and even death for some
residents. States, which play a key role in ensuring that these
institutions meet federal standards, do not always identify serious
deficiencies and sometimes do not take adequate enforcement measures
to prevent the recurrence of poor care. Although the Health Care
Financing Administration has tried to improve the process for
spotting serious deficiencies in these institutions and has sought to
make more efficient use of limited federal and state resources,
oversight weaknesses persist. Moreover, state surveys may lack
independence because states are responsible for surveying their own
institutions. This potential conflict of interest raises concern
given the decline in direct federal oversight of both care in these
facilities and the performance of state surveying agencies.
Medicaid:
States' Efforts to Educate and Enroll Beneficiaries in
Managed Care
GAO/HEHS-96-184, Sept. 17 (32 pages).
With managed care now being increasingly offered as an option for
Medicaid recipients, reports of marketing abuses by managed care
organizations have grown, prompting several states to restrict direct
marketing efforts by managed care organizations. GAO found that some
managed care organizations and their agents have engaged in
unscrupulous practices to maximize beneficiary enrollment--and
thereby boost plan revenues and commissions. These practices include
bribing public officials to obtain confidential information on
beneficiaries, paying beneficiaries cash and providing other
incentives to sign up, deliberately misinforming beneficiaries about
access to care, and enrolling ineligible beneficiaries--as many as
4,800 in one state. To avoid these problems, many states have banned
or restricted direct-marketing activities by managed care
organizations and have retained responsibility for enrolling or
disenrolling Medicaid beneficiaries. This report provides detailed
information on four states--Minnesota, Missouri, Ohio, and
Washington--with innovative education and enrollment programs.
Long-Term Care:
Some States Apply Criminal Background Checks to Home
Care Workers
GAO/PEMD-96-5, Sept. 27 (24 pages).
Persons needing assistance with daily activities generally prefer
home- and community-based services to nursing homes, and increasing
numbers of elderly and disabled persons are turning to paid home care
workers for such services. Home care workers have frequent,
unsupervised access to potentially vulnerable people and their
property. This report examines the federal and state provisions that
protect vulnerable elderly and disabled persons from home care
workers with histories of crime and patient abuse. GAO describes (1)
federal or state requirements for licensure, registration, or
certification that apply to home care workers and organizations; (2)
the extent to which states have used the federally mandated registry
for nursing home aides or a similar mechanism to identify home care
workers with past involvement in abuse, neglect, or misappropriation
of property; and (3) the extent to which states have required
criminal background checks of home care workers.
Drug and Alcohol Abuse:
Billions Spent Annually for Treatment and Prevention Activities
GAO/HEHS-97-12, Oct. 8 (68 pages).
Federal, state, and local governments, along with the private sector,
reported contributing several billion dollars annually to substance
abuse treatment and prevention programs, with a large part going to
treatment services. This estimate, however, probably understates
total contributions because these groups do not report their overall
giving to treatment and prevention efforts. A host of programs in 16
federal agencies cover a range of treatment and prevention services
and often target specific populations, such as youths, women, and
veterans. Generally, treatment services include diagnostic
assessment, detoxification, and counseling. Prevention activities
usually include education on the consequences of and alternatives to
alcohol abuse and illicit drug use. Examples of federal programs
that provide treatment and prevention services include the Pregnant
and Postpartum Women and Infants program and the Safe and Drug-Free
Schools and Communities program.
INCOME SECURITY
--------------------------------------------------------- Appendix 0:6
Social Security:
Union Activity at the Social Security Administration
GAO/HEHS-97-3, Oct. 2 (42 pages).
The Social Security Administration (SSA), like other federal agencies
and some private sector firms, pays for approved time spent by its
employees on union activities. SSA has a special fiduciary
responsibility to effectively manage and maintain the integrity of
the social security trust funds from which most of these expenses are
paid. In a time of shrinking budgets, it is crucial that SSA, as
well as other agencies, evaluate how resources are being spent and
have reliable monitoring systems to support this evaluation. To
ensure accurate tracking of time spent on union activities and the
staff conducting these activities, SSA has developed and is testing a
new time-reporting system for its field offices and teleservice
centers. GAO believes that the new system should be implemented
agencywide. With an improved agencywide system, SSA management
should have better information on where its money is being spent.
Private Pensions:
Most Employers That Offer Pensions Use Defined
Contribution Plans
GAO/GGD-97-1, Oct. 3 (38 pages).
In response to congressional interest in possibly changing the
structure of federal employee retirement plans, this report provides
information on the approaches that private sector employers are using
to provide their employees with retirement benefits and the extent to
which these approaches may be changing. GAO describes (1) the
numbers and types of pension plans sponsored nationwide by private
employers during 1984 to 1993, (3) the proportions of total
contributions made to these plans by employers and employees, (3) the
average administrative expense for the plans, and (4) the
explanations provided in retirement literature on why employers might
decide to sponsor a particular type of pension plan.
Social Security Disability:
Improvements Needed to Continuing Disability Review Process
GAO/HEHS-97-1, Oct. 16 (112 pages).
Social Security Disability:
Alternatives Would Boost Cost-Effectiveness of Continuing Disability
Reviews
GAO/HEHS-97-2, Oct. 16 (112 pages).
The Social Security Administration (SSA) is required to conduct
periodic examinations, called continuing disability reviews, to
determine whether the health of a person receiving disability
benefits has improved to the point where the person is no longer
considered disabled. Together, the disability insurance and the
supplemental security income programs pay about $60 billion annually
to 9 million disabled beneficiaries; another 1.6 million nondisabled
dependents of beneficiaries also receive benefits. GAO's analysis of
persons awaiting such reviews supports SSA's contention that there is
little chance that a large proportion of beneficiaries will show
enough medical improvement to no longer be considered disabled. As a
result, if SSA is to decrease long-term reliance on these programs as
the primary source of income for the severely impaired, it will need
to rely less on assessing medical improvement and more on
return-to-work programs to better gauge the potential for
self-sufficiency. GAO believes that a more cost-effective approach
to conducting reviews might involve (1) focusing on beneficiaries
with the greatest likelihood of benefit termination because of
medical improvement, (2) reviewing a random sample of all other
beneficiaries to correct a weakness in SSA's process, and (3)
contacting beneficiaries not selected for a review or a financial
eligibility redetermination to strengthen program integrity.
Child Support Enforcement:
States' Experience With Private Agencies' Collection of
Support Payments
GAO/HEHS-97-11, Oct. 23 (20 pages).
States are turning to private firms to collect child support payments
because they are finding it increasingly difficult to handle their
growing child support enforcement caseloads with existing staff and
budgets. Most states pay contractors only if collections are made,
and payments to contractors are often a fixed percentage of
collections. For example, in fiscal years 1994 and 1995, contractors
in nine states collected nearly $60 million and were paid about $6
million. For families receiving welfare, most of the child support
collected is kept by the government; in effect, the government is
reimbursed for welfare payments made to families. Families not on
welfare get most of the support collected. The split in collections
between the federal and state governments depends first of all on the
federal government's share of welfare payments within each state.
The more the federal government pays in relation to the state, the
more it gets back from child support collections. However, the net
amount actually returned to the federal government is also reduced by
performance incentives paid to the states and the share of child
support enforcement program administrative costs picked up by the
federal government. In the 11 contracts GAO reviewed, the federal
government's financial outcomes ranged from a net cost of about
$242,000 to revenues of $1.2 million.
Child Support Enforcement:
Reorienting Management Toward Achieving Better
Program Results
GAO/HEHS/GGD-97-14, Oct. 25 (48 pages).
Each year, millions of Americans seek help in obtaining child support
services from the Department of Health and Human Service's Office of
Child Support Enforcement and state child support programs. The
Office reported an estimated caseload of about 20 million custodial
parents seeking such services through the child support enforcement
program in 1995--a 50-percent increase over the 1991 caseload.
States collected nearly $11 billion in child support payments in 3.8
million cases, or about 19 percent of the caseload. GAO reported in
1994 that the child support enforcement program lacked essential
management tools that would allow it to improve its responsiveness to
the child support needs of children and families. GAO recommended
that the Office focus its program management on long-term outcomes by
(1) strengthening its partnership with state and local child support
enforcement programs, (2) developing its own management strategies
for achieving national program goals, (3) reorienting its audit
functions to assess state program results, and (4) redesigning the
federal incentive funding structure to provide greater incentives for
better state performance. This report assesses the Office's progress
in responding to GAO's recommendations.
Supplemental Security Income:
SSA Is Taking Steps to Review Recipients' Disability Status
GAO/HEHS-97-17, Oct. 30 (48 pages).
In response to frequent allegations of fraud, waste, and abuse in the
supplemental security income (SSI) program, Congress has become
concerned that ineligible persons may be receiving disability
benefits. For example, GAO confirmed that ineligible,
non-English-speaking applicants were illegally obtaining benefits
through the use of middlemen, who provide translation or other
services for a fee to help individuals apply for benefits. (See
GAO/HEHS-95-116, Aug. 1995.) Concerns about this program also stem
from sharp rises in the number of SSI recipients in recent years.
This report examines the Social Security Administration's (SSA)
strategy for conducting legally required continuing disability
reviews on SSI recipients. GAO answers the following questions:
What steps is SSA taking to conduct these reviews in fiscal years
1996 through 1998? What resources has SSA committed to meeting this
requirement, and what additional resources, if any, are needed? How
does SSA select recipients for SSI continuing disability reviews?
What are the potential benefits of conducting these reviews on the
SSI population? What options exist for improving the
review process?
INFORMATION MANAGEMENT
--------------------------------------------------------- Appendix 0:7
Air Traffic Control:
Good Progress on Interim Replacement for Outage-Plagued System, but
Risks Can Be Further Reduced
GAO/AIMD-97-2, Oct. 17 (37 pages).
During the past year, air traffic control centers have experienced a
series of outages, some of which were caused by the Display Channel
Complex (DCC)--a mainframe computer system that processes radar and
other data into images on controllers' screens. These outages, which
were traced to old, out-of-production equipment, have disrupted air
traffic, producing costly airline delays because air traffic control
centers must reduce traffic volumes to compensate for lost system
capability. These outages are likely to become increasingly
disruptive as the availability of DCC spare parts and repair
technicians shrink. The Federal Aviation Administration (FAA) has
made good progress in replacing DCC with an interim system, known as
DCC Rehost. Although key acquisition milestones, events, and risks
remain, FAA is now on track to deliver promised capabilities ahead of
schedule and within budget. FAA's success ultimately depends,
however, on how well it carries out key remaining tasks, such as
system-level testing, and how effectively it manages known
acquisition risks. Two risks associated with upcoming concurrent
system-level testing--contention for human test resources and test
baseline configuration change control--are not being formally
managed, and FAA has few assurances that either risk will be
carefully and effectively mitigated.
Information Technology:
Streamlining FHA's Single Family Housing Operations
GAO/AIMD-97-4, Oct. 17 (23 pages).
The Secretary of Housing and Urban Development has proposed a major
overhaul of the agency's programs and operations during the next
several years. One proposal is to cut staff at the Federal Housing
Administration (FHA) by more than 50 percent by the year 2000.
Information technology figures prominently in FHA's plans to
streamline its single family operations, boost efficiency, and meet
mandated staff reductions. Thus far, the planned actions are
consistent with, but are not as extensive as, efficiency improvements
taken by leading mortgage industry organizations. FHA's streamlining
efforts, however, are in the early stages and, as other efforts
continue, FHA will be deciding on specific operational changes,
information technology applications, and management controls that
will determine the efficiency and effectiveness of its operations and
the achievement of staff reductions. In doing so, it can use the
recently enacted Information Technology Management Reform Act of 1996
to establish an effective framework for making these information
technology decisions.
INTERNATIONAL RELATIONS
--------------------------------------------------------- Appendix 0:8
Nuclear Nonproliferation:
Implications of the U.S./North Korean Agreement on
Nuclear Issues
GAO/RCED/NSIAD-97-8, Oct. 1 (63 pages).
Unless adequate liability protections are put in place, the United
States, Japan, and South Korea--members of an international
consortium created in 1994 to replace North Korea's nuclear
reactors--could be pressured into paying nuclear damage claims
arising from an accident at a North Korean reactor. Recognizing the
importance of this issue, the consortium has laid the groundwork for
securing adequate liability coverage and has pledged not to deliver
the fuel and start up the reactors until consortium members are fully
protected. Under the "Agreed Framework," North Korea has agreed to
stop operating and constructing its reactors and eventually dismantle
them. In turn, the consortium will replace North Korea's
graphite-moderated reactors with light-water reactors, which are
preferred because they do not produce materials as easily used to
make nuclear weapons. The Agreed Framework is a nonbinding political
agreement. Therefore its pledges--including those involving
financial outlays--are not legally enforceable. Agreements of this
type do not require Congress' prior involvement or approval and, as
GAO has suggested in the past, can have the effect of pressuring
Congress to appropriate money to implement an agreement with which it
had little involvement. GAO notes that North Korea's existing
electricity distribution system will need to be modernized to
distribute the power generated by the two light-water reactors being
provided. Upgrading the power grid could cost as much as $750
million. The United States and the consortium contend that North
Korea is responsible, but North Korea has yet to legally obligate
itself to pay, leaving open the possibility that North Korea may try
to pressure others to pay for the upgrade in the future.
Vietnamese Asylum Seekers:
Refugee Screening Procedures Under the Comprehensive Plan
of Action
GAO/NSIAD-97-12, Oct. 21 (52 pages).
The United States has a continuing special interest in the protection
and welfare of many Vietnamese and other ethnic groups in Southeast
Asia (including former employees of the U.S. government and others
closely linked to the U.S. presence in Vietnam before 1975) and
family members of persons now in the United States. Since 1975, the
United States has resettled hundreds of thousands of asylum seekers
from the region, including nearly 13,000 Indo-Chinese refugees under
the Comprehensive Plan of Action (CPA), which was an arrangement for
achieving a long-lasting solution to the continuing flow of asylum
seekers in Southeast Asia. This report reviews the implementation of
the CPA. GAO (1) determines whether the first-asylum countries of
Hong Kong and Indonesia implemented CPA refugee status determination
procedures in accordance with international standards and criteria,
(2) provides information on alleged corruption in the program, and
(3) ascertains whether asylum seekers returning to Vietnam were
persecuted. GAO also discusses U.S. and United Nations High
Commissioner for Refugees costs associated with implementing the CPA.
TESTIMONY
------------------------------------------------------- Appendix 0:8.1
Nuclear Weapons: Russia's Request for the Export of U.S. Computers
for Stockpile Maintenance, statement for the record by Harold J.
Johnson, Associate Director for International Relations and Trade
Issues, before the Subcommittee on Military Procurement, House
Committee on National Security. GAO/T-NSIAD-96-245, Sept. 30 (five
pages).
This statement for the record provides information on proposed
exports of U.S. high performance computers to Russian nuclear
laboratories. GAO discusses the policies affecting cooperation
between the United States and Russia on nuclear warhead safety and
security under a Comprehensive Test Ban Treaty and Russian officials'
requests for access to U.S. high performance computer exports to
conduct work under this treaty.
JUSTICE AND LAW ENFORCEMENT
--------------------------------------------------------- Appendix 0:9
Federal Firearms Licensee Data:
ATF's Compliance With Statutory Restrictions
GAO/GGD-96-174, Sept. 11 (76 pages).
The Bureau of Alcohol, Tobacco and Firearms (ATF) issues various
categories of federal firearms licenses, including those for
manufacturers, importers, and dealers of firearms. Firearms dealers
licenses are granted to dealers and pawnbrokers who sell guns at
wholesale or retail and to gunsmiths who repair firearms. This
report, the last in a series of GAO reports on ATF, reviews ATF's
compliance with legislative restrictions on maintaining federal
firearms licensee data. Concerns have been raised that ATF has not
been complying with the restrictions on centralizing and
consolidating data from federal firearms licensee records. GAO (1)
identifies and describes the ATF data systems that contain retail
firearms purchaser data and (2) determines whether ATF's
Out-of-Business Records System and Multiple Sales System comply with
the legislative data restrictions. GAO also assesses ATF's overall
legal interpretation of the data restrictions.
NATIONAL DEFENSE
-------------------------------------------------------- Appendix 0:10
Defense Acquisition Infrastructure:
Changes in RDT&E Laboratories and Centers
GAO/NSIAD-96-221BR, Sept. 13 (39 pages).
In fiscal year 1994, the Pentagon spent more than $22 billion--about
eight percent of its total budget for fiscal year 1994--through 55
military service research, development, engineering, test, and
evaluation (RDT&E) laboratories and centers worldwide. These
facilities employ a workforce of nearly 115,000 personnel--95,000
civilian and 20,000 military. This report reviews the Defense
Department's (DOD) RDT&E infrastructure. GAO (1) discusses previous
studies on DOD's laboratory infrastructure to determine what steps
DOD has taken to implement earlier recommendations and (2) analyzes
data on RDT&E infrastructure funding, workforce composition, and
operating costs. GAO also provides preliminary observations on
lessons learned from successful consolidations that may apply to the
federal laboratory infrastructure.
Acquisition Reform:
The Government's Market Research Efforts
GAO/NSIAD-97-3, Oct. 11 (31 pages).
Market research is the process used to collect and analyze data about
capabilities in the market that could satisfy a government agency's
procurement needs. This report reviews (1) existing federal
government market research efforts regarding commercial items and
nondevelopmental items and (2) the feasibility of creating a
governmentwide database for storing, retrieving, and analyzing
market data.
B-2 Bomber:
Status of Efforts to Acquire 21 Operational Aircraft
GAO/NSIAD-97-11, Oct. 22 (31 pages).
Seeking to control the cost of its $45 billion B-2 bomber program,
the Air Force has scaled back combat testing of the radar-evading
aircraft in order to complete all flight tests by July 1997; however,
a host of factors still jeopardize the Air Force's ability to
complete flight testing on schedule. This is GAO's third report
discussing the Air Force's progress in acquiring B-2 aircraft. GAO
(1) highlights recent program changes; (2) discusses program funding
and current cost estimates; and (3) shows the progress achieved in
the flight test program, production, and modification efforts.
DOD Force Mix Issues:
Converting Some Support Officer Position to Civilian Status Could
Save Money
GAO/NSIAD-97-15, Oct. 23 (20 pages).
GAO recommended in 1994 that the Defense Department (DOD) study ways
to convert support positions from military to civilian status because
federal civilian personnel cost the military less than military
personnel of roughly equal grade and rank. Although DOD agreed with
GAO's recommendation, it converted no positions on the basis of this
work. DOD did convert about 3,200 positions by the end of fiscal
year 1996 to comply with the requirement in the Fiscal Year 1996
National Defense Authorization Act to convert at least 3,000
positions. This report presents the results of a similar analysis of
commissioned officer positions using fiscal year 1996 end strength
data. This is a first step toward identifying officer positions that
perform certain support and administrative functions as candidates
for civilian conversion.
Aviation Requirements:
DOD Should Reassess the Marine Corps' Helicopter
Modernization Decision
GAO/NSIAD-97-1, Oct. 30 (nine pages).
In deciding to modernize its fleet of utility helicopters, the Marine
Corps did not adequately consider the economic benefits of increased
commonality that could be achieved by buying an alternative utility
helicopter like the Blackhawk. The Marine Corps evaluated a
Blackhawk derivative and found it to be a desirable alternative to
the upgraded Huey, but concluded that the up-front procurement costs
would be a major impediment and the support costs would be too high.
GAO found that purchasing the Blackhawk derivative may be the
Pentagon's most cost-effective alternative. A May 1996 Defense
Department (DOD) study shows that the Blackhawk's life-cycle cost is
$200 million more than that of the Huey upgrade, and a September 1996
DOD study determined that the cost to acquire the Blackhawk
derivative would be about $450 million more than the Huey upgrade.
GAO's analysis, however, indicated that by increasing the total
annual buy of Blackhawk derivatives, DOD could save as much as $717
million in research and development and procurement costs. These
savings could be used to offset the Marine Corps' increased
procurement and life-cycle costs.
Acquisition Reform:
Implementation of Title V of the Federal Acquisition Streamlining Act
of 1994
GAO/NSIAD-97-22BR, Oct. 31 (27 pages).
Congress has long been concerned that acquisition practices at
federal agencies are wasteful and add billions to acquisition costs.
For example, cost overruns of more than 100 percent have been
reported in Defense Department (DOD) and Federal Aviation
Administration programs. This report reviews how DOD and civilian
agencies have implemented the performance-based acquisition and
management provisions of title V of the Federal Acquisition
Streamlining Act of 1994. Title V is intended to foster the
development of measurable cost, schedule, and performance goals as
well as incentives for acquisition personnel to reach these goals.
GAO discusses (1) the status of DOD's and civilian agencies'
implementation of title V requirements, (2) the agencies' progress in
implementing title V in the required time frames, and (3) significant
obstacles and barriers to effective implementation.
NATURAL RESOURCES
-------------------------------------------------------- Appendix 0:11
Bureau of Reclamation:
An Assessment of the Environmental Impact Statement on the Operations
of the Glen Canyon Dam
GAO/RCED-97-12, Oct. 2 (213 pages).
Since the Glen Canyon Dam, located in northern Arizona, was completed
by the Bureau of Reclamation in 1963, it has been used to generate
power during periods of high demand--commonly known as peaking power.
The fluctuating releases of water associated with the dam's peaking
power operations have raised concerns about the harmful effects such
flows have on downstream areas, particularly the Grand Canyon. In
1989, the Bureau of Reclamation was directed to prepare an
environmental impact statement that would reevaluate the Glen Canyon
Dam's operations. The purpose of the reevaluation was to determine
options for operating the dam that would minimize the harmful effects
on the downstream environmental and recreational resources, as well
as on Native American interests in the Glen and Grand canyons, while
still allowing the dam to produce hydropower. The Bureau issued its
final environmental impact statement in March 1995. This report
examines (1) whether the Bureau's impact determinations were
reasonable and (2) what concerns still exist about the Glen Canyon
Dam's final environmental impact statement.
TAX POLICY AND ADMINISTRATION
-------------------------------------------------------- Appendix 0:12
Tax Administration:
Alternative Filing Systems
GAO/GGD-97-6, Oct. 16 (48 pages).
Millions of Americans continue to file tax returns each year even
though most have fully paid their taxes through the withholding
system. Taxpayers in at least 36 other countries with tax
withholding systems are not required to prepare income tax returns
because these countries use alternative filing systems not currently
available in the United States. This report (1) estimates how many
U.S. taxpayers would not have to prepare returns under a tax agency
reconciliation filing system, (2) identifies the operational
characteristics of such a system, (3) discusses the pros and cons of
such a system for taxpayers and the Internal Revenue Service, and (4)
points out any major impediments to or costs associated with
establishing this type of filing system under the current federal tax
laws. GAO focuses on a tax agency reconciliation type system because
it would not require any tax law changes while a final withholding
type
system would.
Tax Administration:
FedState Efforts Offer Opportunities but Program
Needs Improvement
GAO/GGD-97-16, Oct. 31 (22 pages).
The income tax laws of many states are built upon the federal tax
code. Consequently, cooperation between the Internal Revenue Service
(IRS) and state tax agencies offers opportunities for achieving IRS'
strategic goals of increasing taxpayer compliance with tax laws,
improving taxpayer service, lessening the burden on taxpayers, and
increasing the efficiency of tax administration. IRS and the states
are aware of the advantages of working together and have been
involved in a federal/state (FedState) cooperative program for years.
This report discusses the potential benefits of the FedState program,
conditions that may jeopardize the program's success, and concerns
raised by state officials about the potential impact of IRS' latest
reorganization of the FedState program.
TRANSPORTATION
-------------------------------------------------------- Appendix 0:13
Aviation Safety:
New Airlines Illustrate Long-Standing Problems in FAA's
Inspection Program
GAO/RCED-97-2, Oct. 17 (48 pages).
New airlines, on average, have experienced higher accident rates and
more Federal Aviation Administration (FAA) enforcement actions than
have established airlines. This does not mean that new airlines are
unsafe, but it does argue for better targeting of FAA's limited
inspection resources. During the five-year period GAO reviewed, FAA
policies did not require new airlines to be monitored any differently
than established airlines, and actual inspection rates varied widely
among new airlines. GAO believes that the performance of new
airlines should be closely monitored during their first years of
operations and that airlines with greater safety risks should be
targeted for more comprehensive inspections. On a broader scale,
serious problems continue to hamper the effectiveness of FAA's safety
inspection program. Although FAA has tried to better target its
inspection resources and has reevaluated safety inspector training
and work assignments, several unresolved issues remain. Resource
constraints resulting from budget cuts in such areas as safety
inspector training present a continuing challenge for FAA. GAO
believes that recent FAA initiatives, such as its 90 Day Safety
Review, may significantly improve the inspection program, but only if
they are effectively implemented. Public concern about the safety of
the nation's aviation system has escalated recently as a result of
the ValuJet and TWA crashes, and several groups have urged FAA to
publish safety data for specific airlines. GAO agrees that the time
has come for FAA to begin the process that would lead to the
publishing of such information for use by the traveling public.
Aviation Safety:
FAA Generally Agrees With but Is Slow in Implementing
Safety Recommendations
GAO/RCED-96-193, Sept. 23 (59 pages).
The Federal Aviation Administration (FAA) is responsible for
promoting safety in civil air transportation. GAO and the
Transportation Department's Office of Inspector General review FAA's
safety programs, and the National Transportation Safety Board (NTSB)
investigates aviation accidents. The three organizations make
recommendations to FAA aimed at improving the efficiency and
effectiveness of FAA's activities and functions and at improving
aviation safety. This report answers the following two questions:
What is FAA's overall record in responding to, agreeing with, and
implementing significant recommendations made by GAO and the
Inspector General from 1990 to 1994, as well as recommendations made
by NTSB or added to NTSB's "Most Wanted" lists of safety
recommendations during that same period? To what extent have GAO's
recommendations concerning aircraft certification, airline
inspections, and oversight of foreign carriers and NTSB's
recommendations concerning safety on runways been fully implemented?
International Aviation:
DOT's Efforts to Promote U.S. Air Cargo Carriers' Interests
GAO/RCED-97-13, Oct. 18 (80 pages).
The value of U.S. exports and imports moving by air totaled $355
billion in 1995, accounting for 27 percent of all U.S. trade. U.S.
all-cargo airlines carried about 60 percent of the freight hauled by
U.S. airlines. But all-cargo airlines often face obstacles to
operating abroad that lessen their efficiency and effectiveness.
This report answers the following questions: What are the problems
that all-cargo airlines face in doing business overseas, and what
steps have the affected airlines and the U.S. government taken to
resolve these problems? To what extent has the U.S. government
addressed air cargo issues in policymaking and during bilateral
aviation negotiations, and what are the possibilities for separating
negotiations of air cargo services from broader negotiations that
include passenger services?
State Infrastructure Banks:
A Mechanism to Expand Federal Transportation Financing
GAO/RCED-97-9, Oct. 31 (36 pages).
Public spending on highways and bridges totaled about $40 billion in
1993, the most recent year for which data are available. The
Department of Transportation (DOT), however, believes that this
investment falls far short of what is needed. DOT estimates that an
additional $16 billion is needed each year simply to maintain--not
improve--the nation's highways at 1993 levels. Postponing investment
can increase costs. DOT estimates that deferring $1 in highway
resurfacing for just two years can require $4 in highway
reconstruction costs to repair the damage. To stretch limited
federal funds, Congress has authorized some innovative financing
mechanisms, including a State Infrastructure Bank Pilot Program in up
to 10 states. These banks are intended to complement traditional
transportation grant programs and provide states with greater
flexibility to offer many types of financial assistance, such as
loans and subsidized interest rates, and provide bonds or other
debt-financing security tailored to fit a project's specific needs.
This report provides an early snapshot of states' interest in
establishing these banks. GAO identifies (1) the degree of states'
interest in the pilot program and how states might use the banks and
(2) the benefits and the barriers to states' using the banks. GAO
also summarizes information on states' interest in using other
innovative financing mechanisms that are contained primarily in the
National Highway System Designation Act of 1995.
VETERANS AFFAIRS
-------------------------------------------------------- Appendix 0:14
Vocational Rehabilitation:
VA Continues to Place Few Disabled Veterans in Jobs
GAO/HEHS-96-155, Sept. 3 (31 pages).
Despite legislation requiring the Department of Veterans Affairs (VA)
to find suitable employment for disabled veterans and GAO reports
urging VA to implement this requirement, VA continues to place few
veterans in jobs. During the past five years, VA rehabilitated about
eight percent of the 74,000 veterans eligible for vocational
rehabilitation program services. Moreover, the characteristics of
program participants are changing. For example, only about one in
four veterans in the vocational rehabilitation program has a serious
employment handicap, and this ratio has been steadily declining.
Moreover, VA lacks data on the cost of providing rehabilitation
services to individual veterans. GAO's review of more than 100 case
files, however, showed that VA spent an average of about $20,000 on
each veteran who gained employment and about $10,000 on each veteran
who dropped out of the program. Generally, more than half of the
total costs consisted of payments covering veterans' basic living
expenses. GAO's analysis of data for the Department of Education's
state vocational rehabilitation program shows that, during the past
five years, state agencies rehabilitated 37 percent of the 2.6
million persons eligible for vocational rehabilitation services.
Moreover, most program participants had severe disabilities. The
states spent, on average, about $3,000 on each client who achieved
employment and about $2,000 on each client who dropped out of the
program; the state program does not cover client
living expenses.
VA Health Care:
Opportunities to Significantly Reduce Outpatient Pharmacy Costs
GAO/HEHS-97-15, Oct. 11 (55 pages).
All pharmacies run by the Department of Veterans Affairs (VA) provide
medications and medical supplies that are available over the counter
through other local outlets. The most frequently dispensed
over-the-counter products include (1) medications, such as aspirin
and insulin; (2) dietary supplements, including Sustacal and Ensure;
and (3) medical supplies, such as alcohol prep pads, lancets, and
glucose test strips. Unlike VA, public and private health plans
cover few, if any, over-the-counter products for their beneficiaries.
VA pharmacies dispensed over-the-counter products more than 15
million times during fiscal year 1995 at an estimated cost of $165
million, including handling costs of $48 million. VA recovered about
$7 million through veterans' copayments, or about four percent of its
total over-the-counter costs. Although many veterans shared a modest
portion of the costs and some paid the full amount, most veterans
paid nothing. GAO suggests several ways that VA could cut costs
associated with dispensing over-the-counter products or boost
revenues from copayments. First, VA could more narrowly define when
to provide over-the-counter products. Second, VA could more
efficiently dispense over-the-counter products and collect
copayments. Third, VA facilities could further reduce the number of
over-the-counter products available to veterans on an outpatient
basis. Finally, Congress could expand copayment requirements.
VA Health Care:
Improving Veterans' Access Poses Financial and Mission-Related
Challenges
GAO/HEHS-97-7, Oct. 25 (24 pages).
The Department of Veterans Affairs (VA) runs one of the nation's
largest health care delivery systems, including more than 170
hospitals and more than 200 free-standing clinics. Veterans must
often travel long distances, however, to receive care at these
facilities. VA has a policy encouraging its hospitals to improve
access to care for eligible veterans. As a result, many hospitals
have either planned or established new, fee-standing outpatient
clinics, known as "access points." Access points provide primary care
to veterans and generally refer those needing specialized services or
inpatient stays to VA hospitals. This report examines VA's policy
for establishing access points. GAO discusses the legal, financial,
and mission-related implications of VA's efforts to establish access
points.
SPECIAL PUBLICATIONS
-------------------------------------------------------- Appendix 0:15
GAO Reports:
Health, Education, Employment, Social Security, Welfare, and Veterans
Issues
GAO/HEHS-97-29W, Oct. 1996 (23 pages).
This monthly bibliography lists GAO documents on health, education,
employment, social security, disability, welfare, and veterans
issues. One section summarizes reports and testimony issued during
the past month. Another section lists the titles of all documents
issued during the past four months, organized chronologically by
subject. Order forms are included, as is a list of issue area
experts who can answer questions about
specific reports.
*** End of document. ***