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For over 125 years, the Bureau of Engraving and Printing (BEP), within the Department of the Treasury, has relied on a single contractor to supply the paper for U.S. currency. Such a long-term contracting relationship could contribute to higher costs and other risks. Another federal agency that relied on a single contractor, the U.S. Mint, decided to obtain a second supplier for coin metal. In solicitations for currency paper contracts in 1999 and 2003, BEP took steps to address barriers to competition that GAO had identified in 1998 through a survey of paper manufacturers. This report updates GAO's 1998 report using data from a second survey. It addresses (1) the changes BEP made to encourage competition and the results of its efforts, (2) the steps BEP took to ensure that it paid fair and reasonable prices, and (3) the analysis BEP has done of the advantages and disadvantages of obtaining a second supplier. To encourage competition for the 1999 and 2003 contracts, BEP modified its solicitations to, among other things, indicate that it would provide bidders with the security thread that is inserted into most currency paper and extend the time for initial deliveries. For the 1999 contract, one additional supplier submitted an initial proposal but later withdrew it, and for the 2003 contract, only the current supplier submitted a proposal. This company remains the sole supplier of U.S. currency paper. According to paper manufacturers, several barriers to competition remain, including the high capital costs of and technological requirements for producing currency paper. BEP said it has not addressed these barriers because the requirements are either essential to preserve the security of currency paper or they are outside BEP's control (e.g., anticounterfeiting features are recommended by a federal committee). While some of the remaining barriers are outside BEP's control, BEP's outreach to paper manufacturers has been limited. For example, BEP does not meet regularly with them, as the Departments of Defense and Homeland Security meet with potential suppliers of their procurements, to identify additional steps that could be taken to encourage competition. To the extent that BEP has reached out to paper manufacturers, it has generally done so in conjunction with other BEP procurements. For the contracts awarded in 1999 and 2003, BEP took several steps, consistent with the Federal Acquisition Regulation's requirements, to determine that the prices it paid under these contracts were fair and reasonable. For the 1999 contract, it used price analysis (a comparison of two proposals) to determine that the two proposals it initially received were fair and reasonable. This analysis was sufficient because BEP had determined that adequate price competition existed. For the 2003 contract, BEP performed several cost analysis activities to ensure that the final agreed-to price was fair and reasonable, since the current supplier was the only company that submitted a proposal. For example, BEP obtained certified cost and pricing data from the current supplier, requested an audit review of the current supplier's price proposal, and established a technical analysis team to examine steps in the current supplier's manufacturing process that affect price. BEP also arranged for postaward audits of the current supplier. BEP has not analyzed the advantages and disadvantages of obtaining a second supplier of currency paper since 1996. At that time, it concluded that the costs would outweigh the benefits, but it did not analyze the long-term effects. As a result, it does not know how a second supplier would affect the costs, quality, security, and supply of currency paper over time. Analyzing the advantages and disadvantages of obtaining a second supplier would help BEP determine the need for one. [ABSTRACT FROM AUTHOR]

Since 1879, virtually all paper purchased by the Bureau of Engraving and Printing for U.S. currency production has come from one supplier--Crane & Co. Although Crane has consistently provided quality paper, the Bureau at times was forced to pay prices it was unable to determine were fair and reasonable because it had no other U.S. source for paper. The Bureau's assessment of Crane's proposed prices were hampered by several factors, including the lack of market prices for currency paper and the limited analyses of proposed costs and prices it performed, especially on earlier contracts in GAO's sample. In addition, some Bureau practices, such as understating the quantities of currency paper needed, caused the government to pay more for currency paper than it should have. The Bureau is responsible for ensuring that the government's supply of paper is not disrupted. Although no disruptions have occurred, the Bureau for many years did not maintain a reserve inventory of paper to provide for contingencies. As a result, it was more vulnerable to adverse consequences if a disruption had occurred and it was at a disadvantage in its contract negotiations because it lacked an alternative source for currency paper. The Bureau recently has been purchasing paper to build a three-month reserve supply and, under the law, could buy paper from a foreign source if no domestic source exists. [ABSTRACT FROM AUTHOR]

The article focuses on the effect of the elimination of paper U.S. saving bonds by the Department of the Treasury on the savings bond program and bond purchases. Topics include an online system TreasuryDirect, the Treasury's future plans for the Tax Time Savings Bond program, and challenges of lower-income households' savings.

The article discusses the need of the U.S. Internal Revenue Service (IRS) to improve its management of paper case files. Missing case files could cause a loss in revenue, create unnecessary taxpayer burden, and make case files unavailable for other units. Moreover, the agency acknowledged its historic difficulties in locating and retrieving case files and its attempts to recreate them by requesting information from taxpayers.

The article presents the October 2011 report from the U.S. Government Accountability Office (GAO) on electronic-filing (e-filing) individual tax returns in the country. The report highlights the country's Internal Revenue Service's (IRS) e-file mandate, its implementation, and the benefits of filing tax returns electronically. It also explores e-file rates and the experiences of tax preparers on the mandate, IRS's options for data digitalization, and data processing and e-file planning.

The United States Citizenship and Immigration Services (USCIS) relies on about 55 million paper-based files to adjudicate applications for immigration status and other benefits. Ensuring the currency and availability of these manual files, referred to as alien files, or A-Files, is a major challenge. To address this challenge, USCIS has initiated efforts, both long and near term, to automate the A-Files. The long-term effort is now being re-examined within the context of a larger USCIS organizational transformation initiative. In the near term, USCIS has begun a digitization program, which it estimates will cost about $190 million over an 8-year period to electronically scan existing paper files and store and share the scanned images. GAO was asked to determine whether USCIS was effectively managing its A-Files automation efforts. USCIS's effectiveness in managing its long-term effort for automating the A-Files cannot yet be determined because the scope, content, and approach for moving from paper-based to paperless A-Files has yet to be defined. Nevertheless, GAO believes that USCIS's recent decision to re-examine prior agency plans for a strategic A-Files automation solution within the context of an agencywide transformation strategy appropriately recognizes the integral support role that information technology plays in organizational and business transformation. GAO also believes that the success of USCIS's organizational transformation depends on other key supporting practices, such as having a comprehensive and integrated transformation plan (goals and schedules) and results-oriented performance measures. With respect to USCIS's near-term A-Files automation effort, known as the Integrated Digitization Document Management Program (IDDMP), effective planning is not occurring. In particular, USCIS has not developed a plan governing how it will manage this program and its contractors, and it has not developed an evaluation plan for its ongoing digitization concept of operations pilot test, even though it has either awarded or plans to award contracts totaling about $20 million for this pilot. In addition, USCIS officials told us they do not yet know which A-Files immigration forms will be scanned. Without a defined scope and adequate planning, this program is at risk of falling short of expectations. [ABSTRACT FROM AUTHOR]

The article looks at the report of the U.S. Government Accountability Office (GAO) that reviews the progress of the U.S. Bureau of Engraving and Printing (BEP) has made toward meeting the U.S. District Court for the District of Columbia order to provide meaningful access to U.S. currency to visually impaired persons. It mention that GAO recommends BEP evaluation of its currency reader program while developing a tactile feature in the next redesign of currency.

From fiscal years 1997 through 2000, the number of individual and business tax returns filed electronically increased from 23 million to 41 million. During the same period, the Internal Revenue Service's (IRS) expenditures for submission processing grew from $795 million to $924 million, an increase of 16 percent. Because it costs less to process an electronic return than a paper return, a growth in processing costs seemed improbable. Interviews with IRS officials and an analysis of relevant documentation identified several factors that limited the impact of electronic filing. Specifically, (1) the overall number of individual and business tax returns filed increased, and the resources needed to process that increase partially offset the resources saved by processing more electronic returns; (2) the number of the most costly to process individual income tax returns filed on paper essentially stayed the same; and (3) the number of individual income tax returns filed on paper and received during the peak filing period stayed relatively the same, and peak processing needs drive the resources needed to process individual paper returns. Although electronic filing increased, so did the demands placed on paper processing staff. In particular, (1) processing changes increased the workload for units responsible for reviewing returns for completeness and coding them for entry data, and correcting errors; (2) because most electronic filers still sent a paper signature document to IRS, the work done by paper processing staff was not entirely eliminated when taxpayers filed electronically; and (3) front-line paper processing staff spent increasing amounts of time on activities, including training, not specifically related to processing returns. Future reductions in processing costs as a result of electronic filing are possible. [ABSTRACT FROM AUTHOR]

The 1997 peer review of the Department of Defense (DOD) Inspector General (IG) done by the Environmental Protection Agency IG resulted in a qualified opinion. The peer review report questioned the quality assurance system used by the DOD IG and said that the reviewed audits did not fully comply with Government Auditing Standards. The 2000 peer review done by the Department of the Treasury IG for Tax Administration (TIGTA) also resulted in a unqualified opinion. Although TIGTA cited several problems, the peer review report concluded that the quality assurance system used by the DOD IG reasonably ensured compliance with auditing standards. However, after the peer review had been completed, a letter was sent to Congress, the press, and others questioning the integrity of the documentation that the DOD IG provided to the TIGTA peer review staff. A DOD IG internal investigation later confirmed that the work papers for one of the audits chosen for peer review had been altered and destroyed. The report concluded that these actions violated Government Auditing Standards, internal DOD IG audit policies, and the expectations of the external peer review staff. TIGTA then withdrew its 2000 peer review opinion and issued a disclaimer of opinion in May 2001, stating that it was unable to determine whether the substantiated allegations would materially affect the DOD IG's system of quality control. As a result, the DOD IG failed to meet the requirement that it obtain a peer review at least once every three years. The DOD IG began qualifying its audit reports to explain its lack of compliance with the peer review requirements set forth in Government Auditing Standards. The 2001 peer review done by the Department of Health and Human Services IG similarly resulted in a qualified opinion. The 2001 peer review report said that the DOD IG's quality assurance system needs improvement and that audits were not always in compliance with Government Auditing Standards. [ABSTRACT FROM AUTHOR]

The article presents the U.S. Government Accountability Office's review of reforms implemented by the U.S. Securities and Exchange Commission in its money market mutual fund (MMF) rules designed to reduce run risk at MMFs exposed by the 2007-2009 financial crisis. Topics discussed include the vulnerability of certain MMFs to runs as highlighted by the COVID-19 pandemic, and evidences showing the effectiveness of the reforms during the pandemic.

Some states and countries allow taxpayers to prepare and file tax returns on their Internet Web sites at no charge, an option not available to federal taxpayers. Such a service might mitigate the concerns taxpayers have about current electronic filing options, which require filing through a third party and may involve fees. Increased electronic filing would reduce IRS's paper processing costs, reduce transcription errors, and speed up refunds. However, the idea is controversial. IRS already has a Free File program which offers free return preparation and filing by private companies for some people via IRS's Web site. Some are opposed to IRS competing with tax preparation software companies. GAO was asked to (1) describe IRS's options for on-line preparation and filing (I-file) based on states' experiences; (2) determine the benefits and costs of I-file based on the experiences of the states; and (3) describe the potential for IRS to realize cost savings from I-file. GAO profiled 7 states and the District of Columbia, 2 foreign countries and 3 federal agencies to describe I-file options and determine their benefits and costs. The options available to IRS for implementing I-file system vary in technology, features, and eligibility. The states profiled all employed an interactive format on their Web sites for tax return preparation. The systems varied in whether they included features such as the ability to save and return. Systems also varied in eligibility, i.e. limiting income or residency. For the systems profiled, both reported benefits and costs were relatively modest and it is unclear whether benefits were greater than costs. I-file systems may generate benefits by increasing electronic filing and reducing filing fees for taxpayers. California and Pennsylvania estimated savings of $1.00 per return and $3.47 respectively per return converted from paper. However, the benefits were limited by low usage. I-file usage rates were less than 6 percent. Available data on I-file costs, while limited, shows costs are a very small percentage of state tax agencies' budgets. For example, California reported spending $700,000 to develop and operate CalFile from 2003 to 2005--less than 0.1 percent of the tax agency's annual budget. States kept I-file costs relatively modest by restricting eligibility and features. Several states used contractors to develop and operate their I-file system as well as provide the computer hardware. Low usage also contributed to modest costs. For example, some states said low usage meant they could use existing computer equipment. IRS's potential to realize net cost savings from an I-file system depends on the costs of developing the system and the number of taxpayers converted from paper to electronic filing. IRS's costs could be higher than the states'. First, the federal tax system is more complex. Second, unlike states which already had Web sites with Internet transaction capabilities, IRS would have to... [ABSTRACT FROM AUTHOR]

Over a trillion dollars in income was distributed in tax year 2002 by flow-through entities, such as partnerships, subchapter S corporations, and trusts, to their partners, shareholders, or beneficiaries, respectively. The Internal Revenue Service (IRS) estimates that from 6 to 15 percent of such income is unreported on individual tax returns. This income is reported to both IRS and to the recipients on a Schedule K-1 (K-1). IRS uses K-1 data in its document-matching program to identify noncompliance and for other purposes. GAO was asked to (1) assess the accuracy of K-1 data, specifically transcription errors and taxpayer identification numbers (TIN); (2) determine whether any limitations in the availability or accuracy of K-1 data have affected IRS's ability to identify noncompliance; and (3) identify the benefits and challenges of increasing e-filing of K-1s. The accuracy of paper-filed K-1 data is reduced by transcription errors; paper and e-filed K-1s have inaccurate TINs. IRS estimates that transcription errors for tax year 2002 ranged from 5 and 9.5 percent and is taking steps to address such errors. Although e-filed K-1s do not require transcription, for tax year 2002, the percentage of invalid TINs for e-filed K-1s and paper-filed K-1s were comparable (7 and 6 percent, respectively). Due to potential burden on flow-through entities and resource constraints, IRS does not notify the entities of invalid TINs on K-1s for correction. If IRS did so, this would likely give e-filing entities enough time to correct invalid TINs before IRS runs its document-matching program. Inaccurate or limited K-1 data have created problems for IRS researchers and examiners. IRS research staff indicated that inaccurate TINs adversely affected their analysis of flow-through entity networks. Further, because IRS captures limited data from flow-through entity returns, including the K-1, IRS staff lack data they consider helpful, such as "Other Income" to help identify tax shelters. In at least 40 percent of closed examination cases we sampled, IRS examiners found errors with return line items not entered into IRS's databases when returns are received. If these lines were available up front, researchers say they would be able to better identify returns with potential noncompliance. Increased e-filing of K-1s would provide benefits and challenges to both IRS and taxpayers. Benefits for IRS include faster, more complete information and millions in annual cost reductions. Benefits for taxpayers include fewer IRS contacts with them because IRS would have more accurate information in its systems. The primary challenge for IRS is its current inability to electronically process all flow-through entity returns and related forms, including the K-1. For taxpayers, the primary challenge is the cost of converting from paper to e-filing. [ABSTRACT FROM AUTHOR]

Pursuant to a congressional request, GAO reviewed whether the Electronic Funds Transfer 99 (EFT 99) program is interfering with the capacity of the Financial Management Service (FMS) and financial institutions to complete year 2000 remediation efforts. GAO noted that: (1) EFT 99 requirements are not expected to affect FMS' year 2000 remediation efforts; (2) FMS has made payments electronically for many years and thus the applications software and telecommunications infrastructure necessary for initiating electronic payments and transmitting them to financial institutions are already in place; (3) the process of converting recipients from paper to electronic payment is relatively easy and is done by the program agencies; (4) FMS does not expect to make any system changes in preparation for EFT 99; (5) EFT 99 requirements should also not affect FMS year 2000 efforts because converting benefit recipients from paper to electronic payment is a relatively easy process that is conducted by program agencies, not FMS; (6) the volume of unbanked benefit recipients who will need to be switched from paper to electronic payments is likely to be much less than originally planned because of the Department of the Treasury's recently announced waivers to the regulation; (7) initially, FMS and Treasury expected that when the electronic transfer accounts (ETA) became available, most benefit recipients without a bank account would be converted from paper to electronic payment; (8) FMS' Assistant Commissioner for Federal Finance said that given the new waiver policy, he estimates that prior to the year 2000 only 20 to 30 percent of recipients without bank accounts will switch to using ETAs; (9) like FMS, the year 2000 conversion efforts of financial institutions are not expected to be affected by EFT 99; (10) the systems infrastructure for receiving electronic payments from FMS through the Federal Reserve is already established and many institutions already offer accounts that are similar to those being proposed for the ETAs; (11) the financial institutions said that if conflicts do arise between completing year 2000 efforts or offering ETAs, they will not offer ETAs; (12) some financial institutions expressed concern that because the account structure for ETAs has not yet been announced, they cannot determine how much system development will be necessary to tailor their accounts to meet ETA account specifications; (13) these institutions said that the longer that the definition of ETAs is delayed, the more likely it is that banks will not initially offer the accounts; (14) Treasury originally expected to announce the ETA account structure in the spring of 1998, then delayed it until the summer of 1998; and (15) Treasury officials now expect to announce the structure in the fall of 1998 and estimate that accounts will become available in 1999. [ABSTRACT FROM AUTHOR]

This report focuses on three types of prescription drug labeling approved by the U.S. Food & Drug Administration (FDA). These include the prescribing information intended for health care practitioners, the medication guides intended to inform patients about drugs FDA has determined that pose a serious and significant public health concern, and patient package inserts required for oral contraceptives and estrogens. It discusses the merits and demerits of relying on electronic labeling.

The article presents the report of the U.S. Government Accountability Office on the accomplishments and postal opportunities on postal service and mailing industry mail-related recycling of the U.S. Postal Service (USPS). The report describes the recent initiatives of USPS, the mailing industry and other stakeholders with respect to four mail-related recycling topics. It conveys stakeholder-identified opportunities for USPS to engage in activities related to these topics.

As the frontline regulator of mutual funds, the Securities and Exchange Commission (SEC) plays a key role in protecting the nearly half of all U.S. households owning mutual funds, valued around $8 trillion in 2005. Mutual fund abuses raised questions about the integrity of the industry and quality of oversight provided by SEC and self-regulatory organizations (SRO) that regulate broker-dealers selling funds. This report assesses (1) changes SEC has made to, or is planning for, its mutual fund exam program; (2) key aspects of SEC's quality control framework for routine fund exams; and (3) the adequacy of SEC's oversight of NASD and the New York Stock Exchange in protecting shareholders from mutual fund sales abuses. SEC is initiating several changes intended to strengthen its mutual fund exam program but faces challenges overseeing the fund industry. In the wake of the fund abuses, SEC has revised its past approach of primarily conducting routine exams of all funds on a regular schedule. It concluded these exams were not the best tool for identifying emerging problems, since funds were not selected for examination based on risk. To quickly identify problems, SEC is shifting resources away from routine exams to targeted exams that focus on specific risks. It will conduct routine exams on a regular schedule but only of funds deemed high risk. SEC also is forming teams to monitor some of the largest groups of advisers and funds. Although SEC is seeking to focus its resources on higher risk funds and activities, the resource tradeoffs it made in revising its oversight approach raise significant challenges. The tradeoffs may limit SEC's capacity not only to examine funds considered lower risk within a 10-year period but also to accurately identify which funds pose higher risk and effectively target them for routine examination. Potentially taxing its resources further, SEC recently adopted a rule to require advisers to hedge funds (investment vehicles generally not widely available to the public) to register with it. This rule is expected to increase SEC's exam workload, but the precise extent is not yet known. SEC has integrated some quality controls into its routine exams, but certain aspects of its framework could be improved. It relies on experienced staff to oversee all exam stages but does not expressly require supervisors to review work papers or document their review. GAO found deficiencies in key SEC exam work papers, raising questions about the quality of supervisory review. SEC also does not require examiners to prepare written exam plans, though they use considerable judgment in customizing each exam. Written plans could serve as a guide for conducting exams and reviewing whether exams were completed as planned. As done by other regulators, SEC also could review a sample of work papers to test compliance with its standards. A primary tool that SEC uses to assess the adequacy of SRO oversight of broker-dealers offering mutual funds provides limited information for achieving its objective and imposes duplicative costs on firms. To assess SRO oversight, SEC reviews SRO exam programs and conducts oversight exams of broker-dealers, including their mutual fund sales practices. SEC's oversight exams take place 6 to 12 months after SROs conduct their exams and serve to assess the quality of SRO exams. However, GAO reported in 1991 that SEC's oversight exams provided limited information in helping SROs to improve their exam quality, because SEC and the SROs used different exam guidelines and their exams often covered different periods. GAO found that these problems remain, raising questions about the considerable resources SEC devotes to oversight exams. GAO also found that SEC has not developed an automated system to track the full scope of work done during its oversight exams. Thus, SEC cannot readily determine the extent to which these exams assess mutual fund sales practices. [ABSTRACT FROM AUTHOR]

The technology used to cast and count votes is one aspect of the multifaceted U.S. election process. GAO examined voting technology, among other things, in a series of reports that it issued in 2001 following the problems encountered in the 2000 election. In October 2002, the Congress enacted the Help America Vote Act, which, among other things, established the Election Assistance Commission (EAC) to assist in the administration of federal elections. The act also established a program to provide funds to states to replace older punch card and lever machine voting equipment. As this older voting equipment has been replaced with newer electronic voting systems over the last 2 years, concerns have been raised about the vulnerabilities associated with certain electronic voting systems. Among other things, GAO's testimony focuses on attributes on which electronic voting systems can be assessed, as well as design and implementation factors affecting their performance. GAO also describes the immediate and longer-term challenges confronting local jurisdictions in using any type of voting equipment, particularly electronic voting systems. An electronic voting system, like other automated information systems, can be judged on several bases, including how well its design provides for security, accuracy, ease of use, and efficiency, as well as its cost. For example, direct recording electronic systems offer advantages in ease of use because they can have features that accommodate voters with various disabilities, and they protect against common voter errors, such as overvoting (voting for more candidates than is permissible); a disadvantage of such systems is their capital cost and frequent lack of an independent paper audit trail. Advantages of optical scan voting equipment (another type of electronic voting system) include capital cost and the enhanced security associated with having a paper audit trail; disadvantages include lower ease of use, such as limited ability to accommodate voters with disabilities. One important determinant of voting system performance is how it is designed and developed, including the testing that determines whether the developed system performs as designed. In the design and development process, a critical factor is the quality of the specified system requirements as embodied in applicable standards or guidance. For voting technology, these voluntary standards have historically been problematic; the EAC has now been given responsibility for voting system guidelines, and it intends to update them. The EAC also intends to strengthen the process for testing voting system hardware and software. A second determinant of performance is how the system is implemented. In implementing a system, it is critical to have people with the requisite knowledge and skills to operate it according to well-defined and understood processes. The EAC also intends to focus on these people and process factors in its role of assisting in the administration of elections. In the upcoming 2004 national election and beyond, the challenges confronting local jurisdictions in using electronic voting systems are similar to those facing any technology user. These challenges include both immediate and more long term challenges. [ABSTRACT FROM AUTHOR]

By positively confirming identifications and linking relevant records of arrests and prosecutions, fingerprint analysis provides a basis for making fundamental criminal justice decisions regarding detention, charging, bail, and sentencing. In 1999, the FBI implemented the Integrated Automated Fingerprint Identification System (IAFIS)--a computerized system for storing, comparing, and exchanging fingerprint data in a digital format. The FBI's goal under IAFIS is to ultimately achieve paperless processing and to provide a response within 2 hours to users who submit criminal fingerprints electronically. Maximizing the benefits of rapid responses under IAFIS depends largely on how quickly criminal fingerprints are submitted by local and state law enforcement agencies. Concerns have been raised that, after arrests are made by some local or state law enforcement agencies, periods of up to 6 months may elapse before the criminal fingerprints are submitted for entry into IAFIS. GAO examined (1) the importance of IAFIS processing to local and state law enforcement agencies, (2) the progress these agencies have made toward the goal of paperless fingerprint processing, and (3) efforts being made to improve the timeliness of criminal fingerprint submissions. IAFIS processing of criminal fingerprints is important to local and state law enforcement not only for updating national databases but also for obtaining an individual's criminal history and, at times, for obtaining positive identification of arrestees. For a recent 8-month period (October 2002 through May 2003) that GAO reviewed, law enforcement agencies wanted a response from the FBI for 78 percent of the approximately 5.3 million sets of criminal fingerprints submitted to IAFIS. The extent to which these responses were used to either positively identify arrestees or obtain criminal history records is unknown. However, the FBI provided GAO with examples of how IAFIS responses prevented the premature release of individuals who had used false names at arrest and were wanted in other jurisdictions. Law enforcement agencies have made progress toward the FBI's goal of paperless processing of criminal fingerprints, although there is room for substantial improvement. The percentage of criminal fingerprints submitted electronically by state repositories to the FBI increased from 45 percent in 1999 to 70 percent in 2003. Also, for the recent 8-month period GAO reviewed, the overall average submission time for criminal fingerprints was 40 days (an average that encompasses both paper and electronic submissions)--whereas, before IAFIS, average submission times were much higher (e.g., 118 days in 1997). Although much progress has been made, many jurisdictions lack automation and have backlogs of paper fingerprint cards to be processed, in part because of competing priorities and resource constraints. Numerous efforts have been made to help improve the timeliness of criminal fingerprint submissions to IAFIS. To facilitate electronic processing, federal technical and financial assistance has encouraged law enforcement agencies to purchase optical scanning (Livescan) equipment for taking fingerprints and to establish automated systems compatible with FBI standards. GAO noted that the need for quick, fingerprint-based identifications--positively linking individuals to relevant criminal history records--is becoming increasingly important. Reasons for such importance are the mobility of criminals (many of whom have multistate records), the growing incidence of identity theft or identity fraud, the significance of homeland security concerns, and increasing demands stemming from background checksrequired for employment or other noncriminal justice purposes. [ABSTRACT FROM AUTHOR]

In June 2000, the House Committee on Science identified a significant discrepancy between an amount reported in the National Aeronautic and Space Administration's (NASA) audited financial statements for fiscal year 1999 and its submission in the President's Budget for fiscal year 2001. NASA's 1999 financial statement was misstated by a reported $644 million. The misstatement was in the "Recoveries of Prior Year Obligations" line of the statement. NASA had relied on an ad hoc process that included a data call from the reporting units' (nine centers and headquarters) separate systems and a compilation of reported amounts using a spreadsheet. In addition, when compiling these data, NASA headquarters mistakenly added amounts that were not relevant to the recoveries line. Headquarters officials said that the error resulted from their misinterpretation of the Office of Management and Budget (OMB) guidance on what to include in the recoveries line. NASA is now acquiring and implementing a single, commercial off-the-shelf core accounting system that it believes will solve the problem. In its audit of NASA's financial statements for fiscal year 1999, Arthur Andersen did not detect the error in NASA's Statement of Budgetary Resources (SBR). Evidence in Arthur Andersen's working papers was not adequate to support unqualified opinions on NASA's SBR and Statement of Financing in accordance with generally accepted government auditing standards (GAGAS). Arthur Andersen's working papers did not adequately document the evaluation of the internal controls related to the two budgetary statements or the independent validation of key amounts in the statements for fiscal year 1999. The NASA Inspector General (IG) did a quality control review of the audit by Arthur Andersen using a detailed checklist based on GAGAS. According to the checklist, the objectives of the NASA IG quality control review were to (1) ensure that the independent public accountant conducted the audit in accordance with applicable auditing standards and OMB bulletin requirements, (2) identify any follow-up work that needs to be done by the independent public accountant, and (3) identify issues that may require management attention. [ABSTRACT FROM AUTHOR]

A study on the electronic disclosure laws and regulations in the U.S. and the pros and cons of electronic disclosure, conducted by the U.S. Government Accountability Office (GAO), is presented, with focus on pension plans documentation. The study contains multiple appendices which include a graph, showing the availability of Internet access for individuals aged 15 and older, comments from the U.S. Department of Labor, and a table with examples of participant disclosures.

The article discusses a study by the U.S. Government Accountability Office (GAO) related to the practices of the National Research Program (NRP) sought to be incorporated by the Internal Revenue Service (IRS) to conduct audits of individual tax returns. As per the study, the NRP helps the examiners to record data from both paper and electronically filed-returns. It also compares the NRP with self-employed operational examinations in terms of objective, case building and computer validation.

The article reports on the U.S. Government Accountability Office's (GAO) review of the changes made by the U.S. Social Security Administration (SSA) to its delivery of key services and administration of its programs during the COVID-19 pandemic. Topics discussed include the funding received by the SSA to respond to the pandemic, the effect of the changes on the public, and the recommendations by GAO to the SSA.

The article presents the U.S. Government Accountability Office's (GAO) report concerning the Check Clearing for the 21st Century Act of 2003 (Check 21). It was designed to make check collection more efficient and less costly by a wider use of electronic check processing. GAO found that the consumers accepted the Act and banks progress to full adoption of check truncation. Consumers benefited from receiving simpler imaged account statements and immediate access to information check payments.

The article discusses a study investigating complaints related to alleged failures of some companies to comply with the U.S. government auditing standards (GAGAS) on the U.S. Defense Contract Audit Agency's (DCAA's) audits. The DCAA works under the U.S. Department of Defense (DOD), while the study was conducted by the U.S. Government Accountability Office (GAO). It was observed that the DCAA management pressures to complete audit work on time to meet performance metrics.

The article cites a report from the U.S. Government Accountability Office (GAO) to several Congressional committees on Defense Contract Audit Agency (DCAA) audits. GAO has investigated the alleged failure of DCAA to comply with generally accepted government auditing standards (GAGAS). Accordingly, it found that the allegations raised that certain audits at three locations did not meet professional standards were substantiated.

In 2007, the U.S. Census Bureau (Bureau) estimated the 2010 Census would cost $11.5 billion, including $3 billion on automation and technology. At a March hearing, the Department of Commerce (Commerce) stated that the Field Data Collection Automation (FDCA) program was likely to incur significant cost overruns and announced a redesign effort. At that time, GAO designated the 2010 Decennial Census as high risk, citing long-standing concerns in managing information technology (IT) investments and uncertain costs and operations. This testimony is based on past work and work nearing completion, including GAO's observation of the address canvassing dress rehearsal. For IT acquisitions, GAO analyzed system documentation, including deliverables, cost estimates, other acquisitions-related documents, and interviewed Bureau officials and contractors. This testimony describes the implications of redesign for (1) dress rehearsal and decennial operations, (2) IT acquisitions management, and (3) Decennial Census costs. The Decennial Census is at a critical stage in the 2008 Dress Rehearsal, in which the Bureau has its last opportunity to test its plans for 2010 under census-like conditions. On April 3, 2008, Commerce announced significant changes to the FDCA program. It also announced that it expected the cost of the decennial to be up to $3 billion greater than previously estimated. The redesign will have fundamental impacts on the dress rehearsal as well as 2010 Census operations. Changes this late in the decade introduce additional risks, making more important the steps the Bureau can take to manage those risks. The content and timing of dress rehearsal operations must be altered to accommodate the Bureau's design. For example, Commerce has selected an option that calls for the Bureau to drop the use of handheld computers (HHCs) during the nonresponse follow-up operation, and the Bureau may now be unable to fully rehearse a paper-based operation. Additionally, reverting to a paper-based nonresponse follow-up operation presents the Bureau with a wide range of additional challenges, such as arranging for the printing of enumerator forms and testing the systems that will read the data from these forms once completed by enumerators. Given the redesign effort, implementing GAO's recommendations associated with managing the IT acquisitions is as critical as ever. Specifically, the Bureau needs to strengthen its acquisition management capabilities, including finalizing FDCA requirements. Further, it also needs to strengthen its risk management activities, including developing risk mitigation plans for significant risks and improving its executive-level governance of these acquisitions. The Bureau also needs to plan and conduct key tests, including end-to-end testing, to help ensure that decennial systems perform as expected. According to the Bureau, the redesign and related revision of the FDCA program is expected to result in significant... [ABSTRACT FROM AUTHOR]

In 2007, the U.S. Census Bureau (Bureau) estimated the 2010 Census would cost $11.5 billion, including $3 billion on automation and technology. At a March hearing, the Department of Commerce (Commerce) stated that the Field Data Collection Automation (FDCA) program was likely to incur significant cost overruns and announced a redesign effort. At that time, GAO designated the 2010 Decennial Census as high risk, citing long-standing concerns in managing information technology (IT) investments and uncertain costs and operations. This testimony is based on past work and work nearing completion, including GAO's observation of the address canvassing dress rehearsal. For IT acquisitions, GAO analyzed system documentation, including deliverables, cost estimates, other acquisitions-related documents, and interviewed Bureau officials and contractors. This testimony describes the implications of redesign for (1) dress rehearsal and decennial operations, (2) IT acquisitions management, and (3) Decennial Census costs. The Decennial Census is at a critical stage in the 2008 Dress Rehearsal, in which the Bureau has its last opportunity to test its plans for 2010 under census-like conditions. Last week Commerce announced significant changes to the FDCA program. It also announced that it expected the cost of the decennial to be up to $3 billion greater than previously estimated. The redesign will have fundamental impacts on the dress rehearsal as well as 2010 Census operations. Changes this late in the decade introduce additional risks, making more important the steps the Bureau can take to manage those risks. The content and timing of dress rehearsal operations must be altered to accommodate the Bureau's design. For example, Commerce has selected an option that calls for the Bureau to drop the use of handheld computers (HHCs) during the nonresponse follow-up operation, and the Bureau may now be unable to fully rehearse a paper-based operation. Additionally, reverting to a paper-based nonresponse follow-up operation presents the Bureau with a wide range of additional challenges, such as arranging for the printing of enumerator forms and testing the systems that will read the data from these forms once completed by enumerators. Given the redesign effort, implementing GAO's recommendations associated with managing the IT acquisitions is as critical as ever. Specifically, the Bureau needs to strengthen its acquisition management capabilities, including finalizing FDCA requirements. Further, it also needs to strengthen its risk management activities, including developing risk mitigation plans for significant risks and improving its executive-level governance of these acquisitions. The Bureau also needs to plan and conduct key tests, including end-to-end testing, to help ensure that decennial systems perform as expected. According to the Bureau, the redesign and related revision of the FDCA program is expected to result in significant increases to the... [ABSTRACT FROM AUTHOR]

Hospitals submit data in electronic form on a series of quality measures to the Centers for Medicare & Medicaid Services (CMS) and receive scores on their performance. Increasingly, the clinical information from which hospitals derive the quality data for CMS is stored in information technology (IT) systems. GAO was asked to examine (1) hospital processes to collect and submit quality data, (2) the extent to which IT facilitates hospitals' collection and submission of quality data, and (3) whether CMS has taken steps to promote the use of IT systems to facilitate the collection and submission of hospital quality data. GAO addressed these issues by conducting case studies of eight hospitals with varying levels of IT development and interviewing relevant officials at CMS and the Department of Health and Human Services (HHS). The eight case study hospitals used six steps to collect and submit quality data: (1) identify the patients, (2) locate information in their medical records, (3) determine appropriate values for the data elements, (4) transmit the quality data to CMS, (5) ensure that the quality data have been accepted by CMS, and (6) supply copies of selected medical records to CMS to validate the data. Several factors account for the complexity of abstracting all relevant information in a patient's medical record, including the content and organization of the medical record, the scope of information and the clinical judgment required for the data elements, and frequent changes by CMS in its data specifications. Due in part to these complexities, most of the case study hospitals relied on clinical staff to abstract the quality data. Increases in the number of quality measures required by CMS led to increased demands on clinical staff resources. Offsetting the demands placed on clinical staff were the benefits that case study hospitals reported finding in the quality data, such as providing feedback to clinicians and reports to hospital administrators. GAO's case studies showed that existing IT systems can help hospitals gather some quality data but are far from enabling hospitals to automate the abstraction process. IT systems helped hospital staff to abstract information from patients' medical records, in particular by improving accessibility to and legibility of the medical record. The limitations reported by officials in the case study hospitals included having a mix of paper and electronic records, which required staff to check multiple places to get the needed information; the prevalence of data recorded as unstructured narrative or text, which made locating the information time-consuming because it was not in a prescribed place in the record; and the inability of some IT systems to access related data stored in another IT system in the same hospital, which required staff to access each IT system separately to obtain related pieces of information. Hospital officials expected the scope and functionality of their IT systems... [ABSTRACT FROM AUTHOR]

In 2006, the Internal Revenue Service (IRS) spent about 38 percent of its $10.8 billion budget on processing returns and providing taxpayer assistance. GAO was asked to (1) assess IRS's 2006 filing season performance processing paper and electronically filed tax returns and providing telephone, Web site, and face-to-face assistance relative to 2006 goals and prior years' performance; (2) identify potential cost savings or other improvements; and (3) report on the status of IRS's Taxpayer Assistance Blueprint (TAB). To address these issues, GAO collected relevant information from IRS and other sources, reviewed performance measures and past filing season assessments, and interviewed officials. IRS improved most filing season services in 2006, continuing improvements since 2001. IRS also generated efficiencies from increased electronic filing and benefits for taxpayers through systems modernization. IRS's processing of individual tax returns and refunds improved by most measures, but the growth rate of electronic filing continued to slow in part because of changes to the Free File Program, which reduced the number of taxpayers eligible to use it and the elimination of a program that allowed taxpayers to file via the telephone. Access to IRS's telephone assistors was comparable to last year. The accuracy of responses to telephone inquiries was 90 percent or over in 2006. Use of IRS's Web site increased substantially and IRS reconfigured the site to improve service. Continuing past trends, fewer taxpayers used IRS walk-in sites and more used less-costly volunteer sites. Also, IRS completed Phase I of the TAB, which identified strategic themes for improving taxpayer service; TAB Phase II is expected to be completed by early 2007. With the slowing growth rate in electronic filing, IRS is missing an opportunity to generate additional savings. Federal and state mandates for electronic filing have demonstrated success in increasing electronic filing; however, IRS currently lacks the authority to mandate electronic filing for certain income tax returns such as individual returns filed by paid tax preparers. Using IRS estimates, savings from such a mandate could be on the order of $60 million per year. IRS has another opportunity to generate savings because of excess space at its call sites. However, IRS lacks a strategy for eliminating that space by consolidating call sites. To replace its aging legacy computer system, IRS continues to implement a modernized system for processing tax returns and refunds. However, IRS does not report information on the chief benefit realized to date, faster refund issuance. Such information could be useful for the Congress when making decisions about funding the completion of the individual tax return processing part of the system, estimated by IRS to require at least another $500 million. [ABSTRACT FROM AUTHOR]

Every year, food stamp recipients exchange hundreds of millions of dollars in benefits for cash instead of food with retailers across the country, a practice known as trafficking. From 2000 to 2005, the Food Stamp Program has grown from $15 billion to $29 billion in benefits. During this period of time, the U.S. Department of Agriculture's (USDA) Food and Nutrition Service (FNS) replaced paper food stamp coupons with electronic benefit transfer (EBT) cards that work much like a debit card at the grocery checkout counter. Given these program changes and continuing retailer fraud, GAO was asked to provide information on (1) what is known about the extent and nature of retailer food stamp trafficking, (2) the efforts of federal agencies to combat such trafficking, and (3) program vulnerabilities. To do this, GAO interviewed agency officials, visited 10 field offices, conducted case file reviews, and analyzed data from the FNS retailer database. FNS's estimates suggest trafficking declined between 1995 and 2005 from 3.8 cents per dollar of benefits redeemed to 1.0 cent, resulting in an estimated $241 million in food stamps trafficked in 2005. The rate of trafficking in small grocery and convenience stores is 7.6 cents per dollar, significantly higher than the rate for large stores, where it is estimated to be 0.2 cents per dollar. In addition, the use of EBT cards has changed the way some benefits are trafficked, for example eliminating middlemen who used to collect and redeem large amounts of paper coupons from program participants willing to sell them. FNS has taken advantage of EBT data to improve its ability to detect and disqualify trafficking retailers, while law enforcement agencies have conducted a decreasing number of investigations. Cases using only EBT transaction data now account for more than half of trafficking disqualifications, supplementing traditional, but more time-consuming, undercover investigations. Other federal entities, such as the USDA's Inspector General and the U.S. Secret Service, have reduced the number of traffickers they pursue in recent years and focused their efforts on high-impact cases. This has resulted in fewer cases referred for federal prosecution and fewer federal convictions for retailer trafficking. Despite FNS progress, the program remains vulnerable because retailers can enter the program intending to traffic, often without fear of severe criminal penalties. FNS authorizes some stores with limited food supplies so that low-income participants in areas with few supermarkets have access to food, but may not inspect these stores again for 5 years unless there is some indication of a problem. Oversight of early operations is important because newly authorized retailers can quickly ramp up the amount of benefits they traffic. One location that FNS disqualified for trafficking redeemed almost $650,000 in 9 months. In addition, FNS has not conducted analyses to identify high risk areas and to... [ABSTRACT FROM AUTHOR]

The Office of Personnel Management (OPM) manages the systems that process retirement benefits for most federal civilian employees. In fiscal year 2003, over 198,000 claims were processed and over $50 billion in benefits was paid through OPM's retirement systems. OPM is trying to modernize these systems through a program called Retirement Systems Modernization (RSM). The conference report accompanying the fiscal year 2004 OPM appropriations act directed us to review the management of and challenges facing RSM. Specifically, our objectives were to determine (1) the current status of and plans for OPM's RSM program and (2) the challenges OPM faces in successfully managing the program. The Office of Personnel Management (OPM) is in the midst of an effort known as Retirement Systems Modernization (RSM). OPM's goals, through this program, are to improve customer service, reduce calculation errors, and reduce the amount of paper-based and manual processing. OPM expects RSM's total cost to be about $294 million from fiscal year 1997 to fiscal year 2008, when the agency expects to have most of RSM implemented and integrated. As currently envisioned, RSM comprises four major components: licensed technology for pension benefits administration, data conversion of paper files and development of electronic processes for capture and storage of data, coverage determination and other applications, and foundation and infrastructure elements. GAO's experience with major systems acquisitions such as RSM has shown that having sound systems acquisition, change management, and investment management processes in place increases the likelihood of the acquisitions meeting cost and schedule estimates as well as performance requirements. However, GAO found that many of the processes in these areas for RSM are not sufficiently developed, are still under development, or are planned for future development. For example, OPM lacks needed processes for developing and managing requirements, planning and managing project activities, managing risks, and providing sound information to investment decision makers. Without these processes in place, RSM is at increased risk of not being developed and delivered on time and within budget and falling short of promised capabilities. [ABSTRACT FROM AUTHOR]

Most taxpayers have their only contact with IRS during the filing season, with tens of millions filing their returns, getting refunds, and seeking assistance by calling or visiting IRS's offices or Web site. GAO was asked to assess IRS's performance in 2004 relative to goals and prior years' performance as well as initiatives or other factors that significantly affected performance for the following areas: (1) the processing of paper and electronic returns, (2) telephone service, (3) walk-in service, and (4) Web site service. During the 2004 filing season, IRS met many of its performance goals and continued a trend of improvement in recent years. However, IRS did not improve in all dimensions of its filing season services and lacks sufficient data to evaluate quality in others. IRS processed returns and issued refunds smoothly. The proportion of returns filed electronically is up to 47 percent. Despite this achievement and numerous initiatives to increase electronic filing, IRS does not expect to reach its long-term goal of having 80 percent of all individual tax returns filed electronically by 2007. A higher percentage of taxpayers was able to reach IRS assistors by telephone than last year and the accuracy rate for providing taxpayers with information about their accounts remained stable. However, the accuracy rate for answering tax law questions declined to 2001 levels. Consistent with IRS's strategy, the number of taxpayers visiting IRS walk-in sites declined, while the number having tax returns prepared at volunteer sites increased. Finally, although IRS continued to expand its Web site services, the site's feature for answering tax law questions raises some concerns. Despite the 2004 improvements, IRS has opportunities for further service improvements. For example, IRS has limited data with which to assess the quality of key services at its walk-in sites and sites staffed by volunteers. Although IRS has initiatives under way to measure quality at both types of sites, the initiatives have been delayed and important details have not yet been determined, which may undermine IRS's efforts to improve services in this area. In the meantime, some of IRS's quality data is likely to be biased. Until IRS fully implements its initiatives and gathers data on quality, it will have difficulty monitoring and improving performance at its walk-in sites and volunteer sites. [ABSTRACT FROM AUTHOR]

The technology used to cast and count votes is one aspect of the multifaceted U.S. election process. GAO examined voting technology, among other things, in a series of reports that it issued in 2001 following the problems encountered in the 2000 election. In October 2002, the Congress enacted the Help America Vote Act, which, among other things, established the Election Assistance Commission (EAC) to assist in the administration of federal elections. The act also established a program to provide funds to states to replace older punch card and lever machine voting equipment. As this older voting equipment has been replaced with newer electronic voting systems over the last 2 years, concerns have been raised about the vulnerabilities associated with certain electronic voting systems. Among other things, GAO's testimony focuses on attributes on which electronic voting systems can be assessed, as well as design and implementation factors affecting their performance. GAO also describes the immediate and longer term challenges confronting local jurisdictions in using any type of voting equipment, particularly electronic voting systems. An electronic voting system, like other automated information systems, can be judged on several bases, including how well its design provides for security, accuracy, ease of use, and efficiency, as well as its cost. For example, direct recording electronic systems offer advantages in ease of use because they can have features that accommodate voters with various disabilities, and they protect against common voter errors, such as overvoting (voting for more candidates than is permissible); a disadvantage of such systems is their capital cost and frequent lack of an independent paper audit trail. Advantages of optical scan voting equipment (another type of electronic voting system) include capital cost and the enhanced security associated with having a paper audit trail; disadvantages include lower ease of use, such as their limited ability to accommodate voters with disabilities. One important determinant of voting system performance is how it is designed and developed, including the testing that determines whether the developed system performs as designed. In the design and development process, a critical factor is the quality of the specified system requirements as embodied in applicable standards or guidance. For voting technology, these voluntary standards have historically been problematic; the EAC has now been given responsibility for voting system guidelines, and it intends to update them. The EAC also intends to strengthen the process for testing voting system hardware and software. A second determinant of performance is how the system is implemented. In implementing a system, it is critical to have people with the requisite knowledge and skills to operate it according to well-defined and understood processes. The EAC also intends to focus on these people and process factors in its role of assisting in the administration of elections. In the upcoming 2004 national election and beyond, the challenges confronting local jurisdictions in using electronic voting systems are similar to those facing any technology user. These challenges include both immediate and more long term challenges. [ABSTRACT FROM AUTHOR]

During the tax filing season, millions of taxpayers file their returns and seek assistance by calling or visiting IRS's offices or Web site. GAO was asked to assess IRS's 2003 filing season performance in five areas: processing returns, refunds and remittances; electronic filing; telephone service; walk-in assistance, and Web site. We assessed for each of those five areas (1) IRS's performance in 2003, including any factors that helped or impeded its efforts, (2) any new initiatives that were intended to improve IRS's performance in 2003, and (3) IRS's performance over past filing seasons. Available data for each of five key filing season activities indicates that IRS's performance showed some improvements in 2003 compared to 2002 and IRS met or exceeded many of its 2003 performance goals. IRS processed returns and issued refunds more timely and accurately and increased the rate of electronic filing, although not at a rate that would allow IRS to meet its long-term goal. While IRS provided significantly more accessible telephone service, the accuracy rate of IRS responses declined. The accuracy of tax law assistance provided at walk-in sites improved, although the number of taxpayers assisted at IRS's walk-in sites declined, in part because taxpayers made greater use of the return-preparation assistance offered by volunteer organizations. In addition, IRS did not consolidate or disseminate data on how long taxpayers waited for walk-in assistance, making it difficult to balance quality and service. Finally, IRS's Web site performed well and was more user friendly than last year. IRS attributes improved performance, in part, to (1) fewer tax law changes that affected taxpayers and (2) continued emphasis on performance measures, a key part of IRS's strategy to improve its performance in processing returns and providing taxpayer assistance. IRS implemented initiatives in 2003 intended to improve filing season performance. For example, IRS entered into an agreement with a consortium of 17 tax preparation companies to offer free on-line tax preparation, established new toll-free telephone numbers to better target different taxpayers, and began certifying walk-in staff to answer tax law questions. Over a longer period of time, available data, although limited in some areas, also show that IRS's filing season performance has improved. Since the mid-1990s, the growth of electronic filing has allowed IRS to close one paper processing center and the accuracy and accessibility of telephone assistance has improved. While the Congress and taxpayers expect further progress, the improvements to date are a payoff from IRS's ongoing modernization. [ABSTRACT FROM AUTHOR]

Pursuant to a congressional request, GAO examined the the Department of Defense's (DOD) initiatives to change export and procurement policies and procedures that relate to the transfer or sale of defense articles and services that may have national security implications. GAO noted that: (1) in 1999, DOD compiled a list of 81 initiatives designed to facilitate cross-border industrial relationships and address possible security risks; (2) at the time of this report, 43 of the initiatives are ongoing, 21 are completed, 17 have been terminated, placed on hold, duplicated other initiatives, or the status was uncertain; (3) 47 of the initiatives addressed disclosure of classified information, export controls, industrial base, and industrial security procedures and policies; (4) the remaining 34 initiatives focused on efforts to reinvent the Foreign Military Sales Program; (5) some of the initiatives were developed to improve the timeliness and effectiveness of internal business practices while others sought to change export and procurement policies; and (6) senior officials within the Office of the Secretary of Defense were responsible for developing the initiatives and invited high-level officials from the military departments and the Departments of State and Commerce to participate in their discussions. [ABSTRACT FROM AUTHOR]

Part Two presents the NAM publication Meeting the Moment: Addressing Barriers and Facilitating Clinical Adoption of Artificial Intelligence in Medical Diagnosis discussing the factors influencing the adoption of non-autonomous point-of-care AI technology that can assist in the diagnosing of a disease. Although GAO and NAM staff consulted with and assisted each other throughout this work, reviews were conducted by GAO and NAM separately and independently, and authorship of the text of Part One and Part Two of the report lies solely with GAO and NAM, respectively. [ABSTRACT FROM AUTHOR]

For years, the Internal Revenue Service (IRS) has allowed taxpayers to pay delinquent taxes in installments, primarily through a paper-based system in which IRS mails monthly statements to taxpayers who, in turn, mail monthly payments back to IRS. In fiscal year 1997, taxpayers defaulted on $6.5 billion in installment agreements--almost as much as the $6.7 billion that IRS collected through installments. This report examines a "best practice" used by delinquent debt collectors--electronic funds transfer (EFT)--to see whether it offers IRS any prospects for improving its collection efforts. GAO (1) describes some of the uses and benefits of EFT, (2) discusses the experiences of two states that use EFT in their tax installment agreement programs and the benefits that they have obtained, and (3) discusses the potential benefits that IRS might realize by increasing EFT use in its installment agreement program. [ABSTRACT FROM AUTHOR]

The article offers information on the U.S. government invests financial resources to produce and issue currency, paper notes and metal coins for use as a medium of exchange and store of value in the economy. It mentions making changes to U.S. currency, such as using less expensive metals in coins, could potentially save taxpayer funds; and also mentions the U.S. has taken some actions to reduce coin production costs, such as changing the metal composition of the penny.

The article discusses role of the return review program (RRP) of U.S. government agency Internal Revenue Service's (IRS). It highlights RRP's performance to improve detection and management of tax fraud and noncompliance in businesses. Also mentioned is the audit selection and underreporting detection to individual's tax liabilities.

The article investigates the capabilities of the return review program (RRP) of U.S. government agency Internal Revenue Service's (IRS). It depicts the role of RRP in checking and choosing suspicious returns and avert invalid refunds. Also emphasized is the use of advanced analytic techniques and data sources for the RRP.

The article presents a testimony before the U.S. House Subcommittee on Oversight, Committee on Ways and Means regarding data on investments activity and the U.S. Internal Revenue Service (IRS) challenges ensuring taxpayer compliance. It mentions that the U.S. Congress created Opportunity Zones tax incentive to spur investments in economically distressed communities. It informs that taxpayers who invest in Qualified Opportunity Funds could receive significant tax-related benefits.

The article discusses the report on the U.S. Internal Revenue System's performance in processing tax returns, delivering refunds and the need to add more self-service tools to assist the taxpayers in filing their taxes and refunds. Suggestions like offering an automated phone helpline as well as automating the taxpayer assistance center/volunteer income tax assistance location telephone lines for returns with benefits exceeding costs are cited.

The article presents a report on the Internal Revenue Service's (IRS) implementation of the electronic file (e-file) mandate in the U.S. It provides the assessment of the expected effect of the mandate on electronic filing rates and early mandate implementation issues that could affect IRS's administrative costs or rates of electronic filing. It mentions that the IRS Restructuring and Reform Act of 1998 established a goal that 80 percent of tax returns be filed electronically by 2007.

The article examines the effort of the Office of Personnel Management (OPM) to modernize the paper-intensive processes to support the retirement of federal employees in the U.S. In its effort, it states that the agency has integrated its database for retirement information, and enhanced customer service capabilities that support customer needs and provide self-service tools. However, it argues that OPM failed to develop a complete plan that will guide the program to proceed without the system.

The article presents several issue papers that focus on the U.S. efforts to combat terrorism in Pakistan's Federally Administered Tribal Areas (FATA) and the Western Frontier. It notes that the papers are based on reports provided by the Government Accountability Office (GAO) to the Congress in 2008. Topics include background information on Pakistan, the U.S. efforts to use various elements of national power, and oversight and accountability issues relating to U.S. funds provided to Pakistan.

The article focuses on the need of Internal Revenue Services (IRS) to evaluate the opportunities to reduce costs and increase tax compliance despite the improvement of its 2007 filing season by U.S. Government Accountability Office. It analyzes IRS performance data, reviewed IRS operations and interviewed IRS and paid preparer representatives. It recommends that IRS should develop estimates of the effectiveness of its volunteer program and the feasibility of using contract recording.

The Internal Revenue Service (IRS) most recently estimated that the gross tax gap--the difference between what taxpayers pay in taxes voluntarily and on time and what they should pay under the law--reached $345 billion for tax year 2001. The tax gap arises when taxpayers fail to comply with their individual income, corporate income, employment, estate, or excise tax obligations through (1) underreporting of tax liabilities on tax returns; (2) underpayment of taxes due from filed returns; or (3) nonfiling, which refers to the failure to file a required tax return altogether or on time. IRS's tax gap estimates are based on a variety of data sources. Recently, IRS studied individual taxpayer compliance through the National Research Program (NRP), and used the resulting compliance data to estimate the tax gap for individual income tax underreporting and the portion of employment tax underreporting attributed to self-employment taxes for tax year 2001. NRP, which involved reviewing around 46,000 individual tax returns, has yielded very important new information on taxpayer compliance for the first time since IRS's previous compliance measurement study was undertaken for tax year 1988. Compliance measurement studies such as NRP have the potential to identify ways to improve taxpayer compliance, which could in turn reduce the tax gap and improve the nation's fiscal stability. For example, each 1 percent reduction in the net tax gap would likely yield around $3 billion annually. Given its potential to improve individual taxpayer compliance, you asked us to review the results of the 2001 NRP study. In response, we agreed to identify (1) specific areas of individual taxpayer noncompliance that are promising targets for additional research to improve reporting compliance, and (2) opportunities, if any, found through the course of our work to improve future NRP studies. Areas of individual taxpayer noncompliance that are promising targets for additional research to improve reporting compliance include: income/losses from partnerships and S corporations, income/losses from rental real estate, sole proprietor income/losses, income/losses from farming, other income--net operating losses, gambling income/losses, capital gains for assets other than securities, other gains/losses, Earned Income Tax Credit, Additional Child Tax Credit, deduction for charitable contributions, deduction for medical and dental expenses, deduction for job expenses and most other deductions, and exemptions. IRS could benefit from electronically capturing complete NRP examination case files. Although IRS creates an electronic record for each tax return reviewed for NRP, these records do not contain all of the information contained in the corresponding hard copy examination case files. For example, information taxpayers provide to IRS during examinations is only included in the paper case file and not in the electronic records. Furthermore, some paper case files are not... [ABSTRACT FROM AUTHOR]

As the United States reviews its plans to secure, stabilize, and rebuild Iraq, GAO has enclosed a series of issue papers for Congressional consideration in developing its oversight agenda for the 110th Congress and analyzing the President's revised strategy for Iraq. These papers are based on the continuing work of the U.S. Government Accountability Office and the 67 Iraq-related reports and testimonies we have provided to the Congress since May 2003. Iraq has had three successful elections, adopted a constitution, and installed its first elected government. At the same time, since the initial ground offensive ended in 2003, the costs to secure and stabilize Iraq have grown substantially, as has the level of violence that afflicts Iraqi society. Such violence stems from an insurgency that has grown more complex and lethal over the past 3 and 1/2 years and the Sunni-Shi'a conflict, which escalated dramatically in 2006. This instability complicates meaningful political reconciliation among Iraq's religious and tribal groups, reduces the effectiveness of U.S. and Iraqi reconstruction and capacity-building efforts, and diminishes the hopes and expectations of an Iraqi people without adequate jobs, water, fuel, and electricity. Increasing Iraqi security forces and transferring security responsibilities to them have not resulted in reduced violence. Rather, attacks increased throughout 2006. Although more Iraqi troops have been trained and equipped, high absenteeism and divided loyalties have limited their overall effectiveness. At the same time, our service members are working with great courage and diligence to perform the roles the President has asked of them. Notwithstanding their noble efforts, the U.S. military has sustained significant casualties. In addition, wear and tear on military equipment and growing replacement costs have risen substantially. The resulting stress and strain on American forces have reduced troop readiness levels and the availability of reserve personnel. The U.S. rebuilding effort in Iraq has focused on helping the Iraqi government establish a sound economy with the capacity to deliver essential services. Although Iraq's economy has grown and U.S. efforts have helped restore portions of Iraq's infrastructure, the poor security environment and mismanagement have diminished the overall results of U.S. investments. Iraq will need U.S. and international support, including political and economic incentives, to strengthen its fragile government institutions, which have thus far failed to adequately deter corruption, stimulate employment, or deliver essential services. The enclosures discuss these issues and other critical challenges that the United States and its allies face in the ongoing struggle to help the Iraqis stabilize, secure, and rebuild Iraq. Forthright answers to the oversight questions we pose herein are needed from the U.S. agencies responsible for executing the President's strategy. Congress and... [ABSTRACT FROM AUTHOR]

The 2004 general election was the first presidential election that tested substantial changes states made to their election systems since the 2000 election, including some changes required by the Help America Vote Act of 2002 (HAVA). HAVA required some major changes in the nation's elections processes, not all which had to be implemented by the November 2004 election. HAVA addressed issues of people, processes, and technology, all of which must be effectively integrated to ensure effective election operations. GAO initiated a review under the authority of the Comptroller General to examine an array of election issues of broad interest to Congress. For each major stage of the election process, this report discusses (1) changes to election systems since the 2000 election, including steps taken to implement HAVA, and (2) challenges encountered in the 2004 election. For this report, GAO sent a survey to the 50 states and the District of Columbia (all responded) and mailed a questionnaire to a nationwide sample of 788 local election jurisdictions about election administration activities (80 percent responded). To obtain more detailed information about experiences for the 2004 election, GAO also visited 28 local jurisdictions in 14 states, chosen to represent a range of election system characteristics. In passing HAVA, Congress provided a means for states and local jurisdictions to improve upon several aspects of the election system, but it is too soon to determine the full effect of those changes. For example, 41 states obtained waivers permitted under HAVA until January 1, 2006, to implement a requirement for statewide voter registration lists. States also had discretion in how they implemented HAVA requirements, such as the identification requirements for first-time mail registrants. Some local election jurisdictions described different identification procedures for first-time mail registrants who registered through voter registration drives. Although states differed regarding where voters who cast provisional ballots for federal office must cast those ballots in order for their votes to be counted, provisional voting has helped to facilitate voter participation. HAVA also created the Election Assistance Commission, which has issued best practice guides and voluntary voting systems standards and distributed federal funds to states for improving election administration, including purchasing new voting equipment. The results of our survey of local election jurisdictions indicate that larger jurisdictions may be replacing older equipment with technology-based voting methods to a greater extent than small jurisdictions, which continue to use paper ballots extensively and are the majority of jurisdictions. As the elections technology environment evolves, voting system performance management, security, and testing will continue to be important to ensuring the integrity of the overall elections process. GAO found that states made... [ABSTRACT FROM AUTHOR]

The National Defense Authorization Act for Fiscal Year 2004 requires GAO to report on the timeliness of Department of Defense (DOD) payments made to small businesses. GAO's report focuses on (1) whether, at DOD payment centers for which data were available, small business invoices were more likely to be paid late; (2) whether systemic weaknesses in DOD payment processes result in late payments to contractors--including small business contractors; and (3) the impact of late payments on small businesses. To calculate timeliness rates, GAO used the data DOD was able to provide for 9 of its 20 vendor payment locations as well as its one contract pay location. GAO used a case study approach for the third objective because data limitations did not permit the use of statistically reliable sampling techniques for assessing the experiences of DOD small business contractors as a whole. Case study contractors were selected because they experienced a high frequency of late payments and may not be reflective of all small businesses. DOD paid small business invoices late more often than all invoices paid at the nine locations for which data were available. Ten percent of all invoices at these locations were paid late--compared with 14.5 percent of small business invoices. According to DOD officials, the disparity may have occurred because DOD's cash management and prioritization practices tend to favor paying larger vendors first. Although DOD has reported significant improvements in its metrics related to late payments, these improvements have come through dedicating additional resources to the problem and not through addressing the underlying weaknesses that cause late payments. Resolving the payment timing disparity will involve improving the overall timeliness of DOD payments to contractors regardless of size. Systemic weaknesses in DOD's payment processes result in late payments to contractors, including small business contractors. DOD continues to process mostly paper payment documents, which can often result in redundant data entry; misplaced documents; higher than necessary transaction processing fees; and ultimately, payment delays. To its credit, DOD has invested in a Web-based tool, WAWF, that could facilitate the electronic exchange of payment data and documents, but the initiative lacks the requisite management focus and strategic direction needed to be successful. For example, the WAWF program lacks performance metrics and does not have a clear strategy for ensuring that WAWF will be effectively utilized. Finally, in many cases, the military services and defense agencies are not required to acknowledge receipt and acceptance electronically. Instead, they submit paper documents that must be matched with contractor invoices to complete the payment transaction, which can lead to payment delays. Disruptions of cash flow caused by late payments--depending on the extent and duration--can significantly affect the day-to-day operations... [ABSTRACT FROM AUTHOR]