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Federal Reports Act

The Chairman, Subcommittee on Civil Service and General Services, Senate Committee on Governmental Affairs, requested that we evaluate how the Office of Management and Budget (OMB) was carrying out its responsibilities under the Federal Reports Act. Our report pointed out that a lack of information and staff limitations precluded OMB from adequately assessing the agencies' need for data. We also determined that statistics relating to the paperwork burden and to the President's reporting reduction program were subject to error, and users of these statistics should be aware of their limitations.

Federal Retirement Systems

A major review is underway involving Federal retirement systems. This study was requested by the Chairman, House Armed Services Committee; House Committee on Banking, Currency, and Housing; and Subcommittee on Retirement and Employee Benefits, House Post Office and Civil Service Committee in this work, we are looking into the desirability of integrating the various Federal retirement programs. We expect to issue our report to the committee/subcommittee chairmen during early 1978.

Fishing Industry

At the request of the Chairmen and ranking minority members of the House Committee on Merchant Marine and Fisheries and its Subcommittee on Fisheries and Wildlife Conservation and the Environment, we reported to Congress on the present condition and future of the U.S. marine fishing industry. We identified, and proposed solutions to, problems which must be resolved to revitalize this industry. The Committee plans to use this report in formulating legislation for the development and use of fish and shellfish resources and a national fisheries policy.

As requested by the Committee we are conducting a similar study of the Great Lakes commercial fishing industry.

Fossil Energy

At the request of the Chairman, Subcommittee on Energy and Power, Committee on Interstate and Foreign Commerce, we reviewed ERDA's Coalcon Project--the first Federal attempt to demonstrate a synthetic fossil energy technology by converting coal to a clean burning liquid fuel. We found that the project was plagued by technical and managerial problems from the beginning, failed in its initial phase despite a $10 million cost overrun (211 percent) and a 14 month schedule slippage, and was terminated on June 15, 1977.

Loan Guarantee Practices

On July 21, 1977, the Subcommittee asked us to report on the Economic Development Administration's loan guarantee practices with emphasis on determining the full extent of the Covernment's commitment in relation to the funds that have been authorized and appropriated for the loan guarantee program. We also are to advise the Subcommittee of the desirability and feasibility of including limitations in authorizing and appropriating legislation on the amount of loans that could be guaranteed.

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Microwave Radiation

In January 1977 we were asked by a congressman and a committee chairman to review the possible biological hazards posed to the public by microwave radiation. We were requested to provide information on (1) HEW's implementation of pertinent legislative requirements, (2) health hazards posed by microwave radiation, (3) the basis for Federal standards, (4) FDA's enforcement of standards, and (5) coordination between FDA and other Federal agencies. We expect to issue a report on this matter in late 1978.

National Energy Plan

At the request of the Chairman of the Subcommittee on Energy and Power, House Committee on Interstate and Foreign Commerce, we analyzed the Administration's National Energy Plan. The National Energy Plan combines proposed legislative, administrative, and budgetary actions aimed at solving the Nation's energy problems. The Plan is an important first step toward developing a national energy policy. We prepared an analysis of and comments on the National Energy Plan and issued it as a report to the Congress. The report was intended to assist the Congress in considering the legislation that the administration proposed to implement the plan.

National Productivity

In the area of productivity we are working on a request from the Chairman Senate Committee on Banking, Housing and Urban Affairs, to examine the Department of Defense's capitol investment program and advise the committee as to whether or not it has been successful in the past and to submit recommendations for the future. We are also working on a request from the Chairman, Task Force on Expenditures, House Committee on the Budget, to study the potential for use of productivity data in the budget process.

Nazi War Criminals

As a result of a Congressional request we are reviewing actions taken against alleged Nazi war criminals in the United States by the Immigration and Naturalization Service. This is an extensive review to determine if Immigration personnel deliberately obstructed active prosecution of cases or engaged in a conspiracy to withhold or squash any information in its possession against alleged Nazi war criminals living in the U.S. The review was initiated because of Congressional concern about allegations that the Service has not rapidly proceeded with deportation or extradition actions against alleged Nazi war criminals.

Outer Continental Shelf Leasing Sales

At the request of a senator we evaluated two Outer Continental Shelf (OCS) leasing sales, used as a means to increase our domestic oil and natural gas production, and concluded that the Department of the Interior's policy of leasing OCS lands has not been adequately evaluated. We recommended to the Congress to favorably consider pending OCS legislation and to the Department of the Interior to direct an exploration program to develop and implement a plan for appraising OCS resources.

Overseas Private Investment Corporation

Our review and evaluation of the Overseas Private Investment Corporation's insurance operations was made in response to the October 13, 1976, request of the Chairman of the Senate Subcommittee on Multinational Corporations, Committee on Foreign Relations. This report, "The Investment Insurance Program Managed by the Overseas Private Investment Corporation" summarizes our evaluation of the Overseas Private Investment Corporation's success in obtaining private participation in its insurance program and the likelihood of the private sector's assumption of the program by December 21, 1980, and addresses (1) the extent of insurance concentration in certain less-developed countries, extractive industries, and larger U.S. firms, (2) claims experience and exposure, and (3) the extent of U.S. Government involvement in claims settlements.

Ownership of Mutual Savings

and Loan Associations

GAO reported to the Chairman, Senate Committee on Banking, Housing and Urban Affairs, that it had reviewed 8 of the 22 mutual savings and loan associations that have converted in the last 2 years from mutual to stock form of ownership to raise additional equity capital. GAO found that:

--The Board did not adequately monitor conversion activities.

--Board regulations conflict with conversion objectives regarding
rights under subsequent stock issues, stock transfer agents,
and acquisitions of newly converted associations.

--It was not possible to assess the accuracy and fairness of appraisal valuations.

--There are alternatives to the sale-of-stock method for raising
additional equity capital.

GAO recommended that the Congress consider limiting the number of conversions through September 30, 1979. The time extension is needed to determine whether conversions are desirable and can be achieved on an equitable basis.

Post-Employment Restrictions

We have been requested by the Ranking Minority Member of the Senate Committee on Governmental Affairs, to do additional work relating to the committee's study on, "The Regulatory Appointments Process." In this regard, we have been specifically requested to:

-Analyze the likely effects of the study's five recommendations
on the Federal regulatory system.

--Examine the effects on the subject agencies of current post-
employment restrictions found in the Federal Reserve Act, the
Federal Communications Act, and Public Law 92-573 concerning
the Consumer Product Safety Commission.

--Determine the effectiveness of any comparable restrictions on other regulatory agencies and how Executive Departments handle postgovernment employment.

--Determine the type of post-employment restrictions used by other
governments--Canada, Great Britain, West Germany, France, and

Japan.

We plan to report on the results of our work in March 1978.

Pricing Foreign Military Training

In response to a request from the Chairman, House Appropriations Committee, we reviewed the Department of Defense's accounting systems for pricing foreign military training and in December 1976 we reported that the Department was losing millions of dollars because its pricing policy for foreign military training did not provide for the recovery of the full cost of training as intended by law.

Subsequently we were asked by a Congressman to determine the impact of the Department of Defense's pricing policies for training on fiscal year 1977 reimbursements. Our February 23, 1977, report which responded to his request was used by the House and Senate Appropriations Committees to reduce the Department's funding levels of fiscal year 1977 Supplemental Appropriations by $21,480,000.

The Department of Defense took action to revise its pricing policy to require that tuition rates more closely recover the full cost of training. We estimate that this action will result in increased reimbursement from foreign governments of about $40 million each year.

The Department also took actions on several of our recommendations to correct accounting and billing errors and to make recoupments from foreign governments. Savings resulting from this action will amount to an estimated $69.2 million.

Procurement and Use of Data Processing Systems

We continued our work in procurement and use of automatic data processing systems during fiscal year 1977. In March 1977 we issued a report summarizing the work done in the past 11 years during which time we had issued reports on computer problems. In September 1977 we reported that millions could be saved by the government in the costs of converting from an old computer to a new one through better planning and greater standardization. On November 7, 1977, we completed a study on the Government's system of assuring itself that proposed payments were legal, proper and correct. The study showed that the payment approval process was inadequate in today's world of the computer and we suggested that greater emphasis be placed on regular review of the efficacy of computer systems that process such payments.

Also, at the request of the Chairman of the House Committee on Government Operations we examined a number of proposed procurements of ADP systems and reported our finds to the committee. Our work helped the committee resolve disputed procurement requests.

Proposed VA Computer System

In a report to a congressman, GAO stated that the Veteran's Administration's (VA's) proposed computer system, the Target System, is intended to modernize the processing of claims for benefits and to improve services to veterans. VA estimates that the system will cost over $100 million to develop and over $12 million to operate annually. GAO recommends that VA demonstrate that the Target System is the most cost-effective system before awarding a contract to procure equipment.

Smithsonian Institute

The Senate Committee on Appropriations, Subcommittee on Interior and Related Agencies, asked us to look into the Smithsonian's fiscal practices and policies and its private funds banking practices.

In a March 1977 report to the Committee, we stated that the Smithsonian (1) distributed Federal funds to private, nonprofit corporations therby avoiding fiscal year and civil service restrictions, (2) reprogramed appropriated funds without approval of the appropriation committees,

and (3) needed to inform the Congress of its planned use of private funds.

In line with our recommendations, the appropriation act for fiscal year 1978 prohibited distribution of the Federal funds to one of the private corporations, and the appropriation committees issued joint guidelines clearing up the confusion about approval of reprograming actions.

The Senate appropriations subcommittee also asked us to look into the fiscal practices and policies of the National Gallery of Art. That work was in process at the end of the year.

Speedy Trials

In August 1977, at the request of the Chairman, Subcommittee on Crime, House Committee on the Judiciary, we began reviewing the U.S. district courts' implementation of the Title I timeframes of the Speedy Trial Act of 1974. The objective of our review is to evaluate the progress made in implementing the act's requirements and to identify the problems and tradeoffs courts are expecting and experiencing in complying with the act.

Telecommunication Services for the Deaf

By congressional request, we are evaluating alternative means for providing telecommunications services for the deaf so they may obtain information on and receive benefits from available local, state, and Federal Government health and rehabilitation programs. The evaluation will be based on our best estimate of the deaf population, their geographical dispersion and the type of interactive communciations that will satisfy their needs.

Timber Shortages

At the request of the House Committee on Interior and Insular Affairs we are making a critique of a number of studies concerned with the prospects of a future timber shortage in the Pacific Northwest. In addition to

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