Most importantly our work was instrumental in causing the Departmetn to propose new regulations on the Type A meal pattern; the most major change in the program for the last 40 years. Navigation Satellite System We concluded from our recently completed review of the proliferation of navigation systems that the military's planned NAVSTAR navigation satellite system has the potential for replacing nine systems for which planned Government spending of $360 million is contemplated. Our draft report, which recommended that much of this planned spending be deferred, was given to the House Subcommittee on Transportation, Aviation and Weather, Committee on Science and Technology, who requested our testimony on this matter during the annual program review of FAA's research and development programs. Navy Force Structure The composition and size of the Navy is one of the most difficult subjects facing decisionmakers because the Navy has several widely varying missions and ships must be multi-mission capable. We have issued a series of reports regarding the Naval warfare mission. The reports have involved a mix of qualitative and quantitative evaluations, including air, surface and underseas platforms for anti-submarine warfare. This opened up the whole question of the role of the aircraft carrier for debate by the committees. The National Security Council (NSC) recently studied Navy force structure and we are issuing a report commenting on the significant aspects of that study. Navy Ship Overhaul Practices The Senate Committee Report on the Department of Defense Appropriation Bill for fiscal year 1978 (95-325) cites our report of April 8, 1977-"Changes in Navy Ship Overhaul Practices Could Improve Fleet Capability and Crew Effectiveness." Based on our study, the Committee directed the Secretary of Defense to prepare a one-time special analysis that costs out the manpower and dollar savings that would accrue from implementation of the recommendations contained in our report. New DOD Profit Policy The Department of Defense established a new DOD profit policy, effective October 1, 1976. This policy is intended to help reduce production costs by encouraging contractors to make more investments in capital assets. The basic formula for establishing a prenegotiation profit objective was revised to place a lesser emphasis on cost and more emphasis on risk and investment. We are planning to review the implementation of the new policy to determine whether it is achieving desired results--the motivation of defense contractors to make investments which will increase productivity and reduce contract costs. We also want to determine whether the new policy is resulting in increased profits to contractors contrary to the Department's proclaimed intentions that overall profits will not be increased. We plan to report on the results of our work toward the end of fiscal year 1978. Noise Pollution Under this self-initiated assignment GAO concluded that although some progress had been made in controlling noise pollution since passage of the Noise Control Act, the implementation of many of its provisions had been slow and ineffective. We recommended that Congress hold hearings on the effectiveness of the Federal noise program. Hearings were held on April 4, 1977, by the Subcommittee on Environment, Energy, and Natural Resources, House Committee on Government Operations and on April 19, 1977, by the Subcommittee on Transportation and Commerce, House Committee on Interstate and Foreign Commerce. GAO testified at both hearings on the results of our review. The latter Subcommittee subsequently requested GAO to monitor the Federal noise program for one year to determine if any improvement in program operation and effectiveness is achieved by the responsible agencies. Occupational Safety and Health Administration Reviews of Occupational Safety and Health Administration programs are in process to examine (1) the identification and elimination of occupational health hazards in Federal workplaces; (2) how well Federal and State programs to enforce occupational health standards are protecting workers from chemicals that cause cancer and other health problems; (3) the effectiveness of Federal and State efforts to identify and correct workplace health hazards; and (4) the effectiveness of the Department of Health, Education, and Welfare's health hazard evaluation program. Organized Crime We completed our review of Federal efforts to fight organized crime. In our report issued in March 1977, we pointed out that the Government's primary vehicle for combating organized crime is its organized crime and racketeering strike forces. The strike force approach to fighting organized crime began in 1967, however, our report discloses that (1) the Government has still not developed a national strategy to direct Government efforts, (2) there is no agreement on what organized crime is and consequently, who the government is after, (3) there is no centralized direction of the effort, and (4) there is no system for evaluating the effectiveness of the National effort or of individual strike forces. Pension Funds We also expect to issue an analysis of the potential burden on State and local governments imposed by unfunded liability and costs of pensions. This subject is important because many Federal programs operate through State and local governments. The size of this burden threatens their financial stability. Congress is expected to consider legislation in this field. Petroleum Reserve The Energy Policy and Conservation Act required the Federal Energy Administration (now part of the Department of Energy) to create a Strategic Petroleum Reserve containing up to one billion barrels of crude oil and products by December 1982 to help diminish U.S. vulnerability to the effects 99-100 - 78-74 of a severe interruption in energy supplies. In December 1976, FEA Post Exchange Transportation Support We reported to the Congress that the Department of Defense has improperly spent over $7 million for transportation support that should have been funded by non-appropriated-fund activities (post exchanges, liquor stores, clubs and recreational facilities). These improper expenditures were in addition to support authorized by the Department. The Department of Defense concurred with several of our recommendations and has billed the exchanges about $3.6 million, of which $2 million has been collected. It has taken no action as yet to bill $1.1 million of the unreimbursed costs, does not concur that $2.3 million spent for shipping foreign-made merchandise to Vietnam and Thailand should be billed, and said that other issues were being studied. Procurement Practices of Grantees We have recently completed two significant efforts on procurement practices of grantees. State and local governments spend about $120 billion annually for the procurement of goods and services, and over $20 billion of this amount of Federal grant funds. Radiation Hazards We are currently reviewing the Environmental Protection Agency's programs to protect the American people and the environment from the hazards of radiation. We found that the Agency had largely ignored its authority to provide guidelines for the various Federal agencies involved with the radiation area. The Agency's program in this area has not been provided with an adequate commitment of staff and funding to enable it to adequately fulfill its responsibilities. After 6 years of operation, the Agency had issued only one environmental standard and had not yet defined the scope of radiation dangers to be addressed by the Agency. We are recommending that the Agency's role in the radiation area be reasserted and that the Congress provide the necessary legislative incentives. Regulation of Imported Products On July 5, 1977, we issued a report to the Congress on FDA's program for the regulation of imported products. Our report points out that the lack of information on food, drug, cosmetic, biological, medical device, and radiation emitting electronic products entering the United States limits the effectiveness of FDA's efforts to regulate these imported products and makes several recommendations for improving FDA's program for regulating imported products. Rural and Urban Development In March 1977, we reported to the Congress that the sound and orderly development of rural and urban areas was not being attained because many federally assisted planning activities in the areas were not being coordinated. We recommended that the Congress establish a national policy on area wide planning. References were made to our report when legislation was introduced in both the Senate and House to establish a national policy and provide for coordinated area wide planning. Setting Pay for Nonappropriated Fund Employees About 200,000 employees, both blue collar and white collar, who work for the Departments of Defense and Transportation and the Veterans Administration are paid from nonappropriated funds. These employees conduct programs to improve the morale, welfare, and recreation opportunities of present and former military personnel. We reviewed the methods used for setting pay at nonappropriated fun activities and reported our findings to the Congress in December 1977. We reported that several different employee pay and benefit systems are used by the activities. The report described differences and similarities among the systems, compared them with appropriated fund pay and benefits, and included recommendations for improving the nonappropriated fund pay systems. Social Research Our work on methods of audit and reanalysis of social research will produce a GAO guidance document on guidelines covering audit and reanalysis of social researchers. This guidance should be issued in draft by the end of fiscal year 1978, supporting the demonstration jobs which should then be in progress for completion in fiscal year 1979. Student Loan Collections In August 1977, GAO reported to the Secretary of Health, Education, and Welfare that by the end of fiscal year 1977, the Office of Education will have paid about $436 million to lending institutions under the Federal component of the guaranteed student loan program because of defaults on student loans. Through that date, collections from students will total only about $33.8 million. The difference of over $400 million represents potential losses to the Government. Collectors cannot handle their present workloads, and the trend is toward ever larger, less manageable workloads. Prompt actions are especially important for older cases, on which collection through suit may soon be impractical because of the 6-year statute of limitations. GAO recommended changes in policy and emphasis to improve collections through both voluntary payments and legal actions and to reduce collectors' workloads by providing for the systematic termination of collection action on cases with little or no collection potential. These recommendations included: (1) increased regional participation in a program for direct (2) improved techniques for collecting from former and current (3) establishment of a system for monitoring regional office HEW generally agreed with our recommendations and commented that its collection resources have been woefully inadequate. HEW said, however, that computerizaton and anticipated collection assistance from a private business concern will gradually eliminate the backlog of uncollected defaults. GAO expressed concern that, although the contractor will undoubtedly lend additional resources to the collection effort, OE must still monitor contractor performance and must process cases to final conclusions rather than returning them to inventory. Supplemental Security Income During our self-initiated review of the deinstitutionalization of the mentally disabled (HRD 76-152, January 7, 1977) we identified several problems with the Supplemental Security Income (SSI) program. We met on several occasions with a subcommittee of the House Ways and Means Committee. Reports we had issued on our work in each of the five States we reviewed were used in showing the need for legislative changes. We also assisted the subcommittee staff in drafting the legislative language. Swine Influenza Vaccine On June 27, 1977, we issued a report to a Congressman who requested information on the swine influenza vaccine. Our report included information on (1) the Department of Health, Education, and Welfare's estimate of the effectiveness of swine flu vaccine, (2) evaluations of long-term effects of this vaccine, (3) consideration of benefits and risks from the Department's swine flu program, and (4) studies on the potential for a pandemic from swine virus. Use of Special Travel Fares On August 25, 1977, we notified the heads of departments and agencies that their employees were not using excursion, group and other special fares when flying on Government business. We pointed out that, as a result, the Government unnecessarily spent millions of dollars annually on travel because discount rates were from 15 to 35 percent lower than normal fares. We suggested that employees be encouraged to use the discount fares when possible and that greater use be made of existing agency travel offices because of their knowledge about available discounts. Veterans Administration A self-initiated review of the Veterans Administration's (VA's) internal audit activities resulted in a report to the Administrator which has resulted in two actions which will improve VA's internal control. The report pointed out that VA's Internal Audit Service ranked last among Federal audit organizations in the ratios of auditors to agency employees and auditors to agency appropriations and was farthest removed organizationally from its agency head. |