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entitled 'Major Management Challenges and Program Risks: Department of 
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Performance and Accountability Series:



January 2003:



Major Management Challenges and Program Risks:



Department of Commerce:



GAO-03-97:



A Glance at the Agency Covered in This Report:



The Department of Commerce’s programs include:



* conducting the decennial census and over 200 other demographic 

and economic

censuses and surveys;



* monitoring hundreds of international trade agreements and 

supporting export

policies that affect millions of domestic jobs;



* providing assistance to distressed communities;



 helping stop the proliferation of weapons of mass destruction and 

providing

technical assistance to other countries concerning export controls;



* warning the public about severe weather, such as hurricanes and 

tornadoes;



* supporting the management of living marine resources, including 

300 marine

species in 2,000,000 square miles of ocean;



* fostering telecommunications policies that promote economic and 

technical

advancement; and



* protecting patents, trademarks, and intellectual property rights.



Figure: The Department of Commerce’s Budgetary and Staff Resources:



[See PDF for image]



[End of figure]



This Series:



This report is part of a special GAO series, first issued in 1999 

and updated 

in 2001, entitled the Performance and Accountability Series: Major 

Management

Challenges and Program Risks. The 2003 Performance and Accountability 

Series

contains separate reports covering each cabinet department, most 

major

independent agencies, and the U.S. Postal Service. The series also 

includes a

governmentwide perspective on transforming the way the government 

does

business in order to meet 21st century challenges and address 

long-term fiscal

needs. The companion 2003 High-Risk Series: An Update identifies 

areas at high 

riskdue to either their greater vulnerabilities to waste, fraud, 

abuse, and

mismanagement or major challenges associated with their economy, 

efficiency, or

effectiveness. A list of all of the reports in this series is 

included at the 

end ofthis report.



GAO Highlights:



Highlights of GAO-03-97, a report to Congress included as part of 

GAO’s 

Performance and Accountability Series:



January 2003: 



Performance and Accountability Series: Department of Commerce:



Why GAO Did This Report:



In its 2001 performance and accountability report on the 

Department of 

Commerce, GAO identified important trade, export, weather 

prediction, and 

other issues facing the department.  The information GAO 

presents in this 

report is intended to help to sustain congressional attention 

and a 

departmental focus on continuing to make progress in addressing 

these 

challenges. The majority of these challenges reflect the 

diverse and complex 

nature of the department’s work and the difficult, long-term 

problems the 

department is working to manage. This report is part of a 

special series of 

reports on governmentwide and agency-specific issues.



What GAO Found:



Commerce has taken steps to address the challenges that GAO 

previously 

identified. Because they reflect the complex nature of 

Commerce’s work, 

these challenges continue.  In addition, GAO has identified 

planning and 

conducting an accurate, cost-effective 2010 census and 

improving other 

commerce statistical programs as a new challenge for Commerce.  

 

* Census 2010 and other statistical programs. In general, 

Commerce’s 

implementation of the 2000 census was consistent with its 

operational plans. 

Now it must plan and implement a cost-effective 2010 census 

of an increasingly 

large and diverse population as well as ensure the accuracy 

of its other 

statistical products.



* Promoting and liberalizing trade while creating jobs. 

Commerce has 

mproved the accuracy and completeness of its trade agreement 

archive and 

has met performance targets related to creating jobs. In 

helping U.S. 

exporters gain access to foreign markets, Commerce needs to 

continue to 

support negotiations on trade agreements, monitor and 

enforce these agreements, 

and assist potential exporters. Commerce also needs to 

continue its 

assistance in areas of the nation experiencing high 

unemployment, low income, 

or severe economic distress.



* Strengthening export controls while facilitating global 

enterprise. In 

response to GAO’s concerns, Commerce established a group 

to monitor trends 

in exports of controlled items to Hong Kong. Commerce needs 

to continue to 

control and require licenses for exporting items that may 

pose a national 

security risk or foreign policy concern.



* Improving predictions of weather and climate and 

management of key 

natural resources. Commerce reported that it met many of 

its performance 

targets for improving weather predictions and forecasts. 

Continuing to provide 

scientific, technical, and managerial expertise to monitor 

and predict 

changes in the Earth’s environment and to conserve and 

manage U.S. marine 

and coastal resources are important for Commerce.  



* Improving financial management functions. Commerce has 

made substantial 

progress in its financial management activities in recent 

years. In order 

to comply with applicable laws and safeguard its assets, 

Commerce should 

continue to emphasize improvements in financial management 

and complete 

its planned financial system.





What Remains to be Done:



GAO believes that Commerce should continue to 



* take steps to maximize achievement of its mission, 

especially as it 

relates to statistical programs, trade, exports, job 

creation, weather 

prediction, and natural resources; and



* improve its financial management systems and correct 

its remaining 

internal control weaknesses. 



www.gao.gov/cgi-bin/getrpt?GAO-03-97.



To view the full report, click on the link above.



For more information, contact Thomas J. McCool at (202) 512-8678 or 

mccoolt@gao.gov.



Contents:



Transmittal Letter:



Major Performance and Accountability Challenges:



GAO Contacts:



Related GAO Products:



Performance and Accountability and High-Risk Series:



This is a work of the U.S. Government and is not subject to 

copyright protection in the United States. It may be 

reproduced and distributed  in its entirety without further 

permission from GAO. It may contain copyrighted graphics, 

images or other materials. Permission from the copyright 

holder may be necessary should you wish to reproduce 

copyrighted materials separately from GAO’s product.



Transmittal Letter:



January 2003:



The President of the Senate

The Speaker of the House of Representatives:



This report addresses the major management challenges and program risks 

facing the Department of Commerce as it seeks to promote job creation 

and improve living standards for all Americans by creating 

infrastructure that supports economic growth, technological 

competitiveness, and sustainable development. The report discusses the 

actions that Commerce has taken and that are under way to address the 

challenges that GAO identified in its Performance and Accountability 

Series 2 years ago, and major events that have occurred and 

significantly influence the environment in which Commerce carries out 

its mission. Also, GAO summarizes the challenges that remain, describes 

new challenges that have emerged, and further actions that GAO believes 

are needed.



This analysis should help the new Congress and the administration carry 

out their responsibilities and improve government for the benefit of 

the American people. For additional information about this report, 

contact Thomas J. McCool, Managing Director, Financial Markets and 

Community Investment, at (202)-512-8678 or at mccoolt@gao.gov.



David M. Walker

Comptroller General

of the United States:



Signed by David M. Walker:



[End of section]



Major Performance and Accountability Challenges:



In January 2001, we reported that the Department of Commerce faced five 

performance and accountability challenges.[Footnote 1] These 

challenges were

(1) increasing the access of U.S. businesses to international trade; 

(2) ensuring that the United States is secure from the proliferation of 

dual-use commodities and chemical weapons; (3) ensuring that weather 

forecasts and severe weather warnings are accurate and timely; 

(4) improving the economy in distressed areas; and (5) addressing other 

challenges that included improving financial management, completing 

evaluations of the 2000 Census, and pursuing cost-effective 

alternatives for managing the research fleet used to acquire marine 

data.



Since our January 2001 report, the terrorist attacks of September 11, 

2001, have had an immediate and long-term impact on Commerce’s 

operations and Commerce has taken some specific steps to address the 

agency’s challenges. In its accountability report, Commerce noted that 

it supported search and recovery efforts at the World Trade Center site 

and at the Pentagon with mapping, remote sensing, aerial photography, 

and other technology-related services and expertise available through a 

number of its bureaus, and provided grants to assist with economic 

recovery.[Footnote 2] For the long term, Commerce states that, while 

the terrorist attacks did not alter its mission, several of its 

component agencies will have a continued role in protecting U.S. 

security. For example,



* The National Institute of Standards and Technology is conducting 

research and standards development projects related to safer 

structures, secure information systems, threat detection and 

protection, and law enforcement.



* The Bureau of Industry and Security[Footnote 3] continues to assist 

federal agencies with identifying physical and cyber assets that are 

essential to protecting the national and economic security of the 

United States and implementing appropriate export controls over those 

assets.



* The National Oceanic and Atmospheric Administration (NOAA) provides 

information to the Coast Guard and others to ensure port and maritime 

security.



Furthermore, Commerce has made progress in addressing the performance 

and accountability challenges that it faces. In its fiscal year 2001 

accountability report, Commerce indicated that it has initiated steps 

to address information security weaknesses that we and others had 

identified, continued to improve its financial management systems, and 

met or exceeded many of its performance targets for fiscal year 2001. 

For example, Commerce reported that, among other things, it met or 

exceeded performance targets for detecting illegal export transactions 

and assisting firms who exported goods for the first time, creating 

jobs and making private sector investments in distressed communities, 

and issuing flash flood warnings. In addition, Commerce has made 

improvements related to recommendations that we have included in our 

reports. For example, Commerce implemented actions to improve the 

accuracy and completeness of its trade agreement archive and 

established a group to monitor trends in exports of controlled items to 

Hong Kong.



The majority of Commerce’s performance and accountability challenges 

reflect the diverse and complex nature of the department’s work and the 

difficult, long-term problems the department is working to manage. 

Consequently, these challenges have generally remained the same since 

our 2001 report. Because of the anticipated cost and planning 

difficulties associated with the 2010 Census, we have added “planning 

and conducting an accurate, cost-effective 2010 Census and improving 

other Commerce statistical programs” as a major challenge. Unless this 

challenge is aggressively addressed, the 2010 Census may become a high-

risk area as happened with the 2000 Census. Three other challenges--

those related to export, trade, and weather--encompass four of the 

challenges that we described in our 2001 report. We combined the 

challenges of increasing the access of U.S. businesses to international 

trade and improving the economy in distressed areas into one challenge-

-promoting and liberalizing trade while creating jobs. In addition, we 

describe the challenges related to exports and weather more broadly 

and, thus, include more activities. These changes make the challenges 

more equivalent to each other in their importance to the agency’s 

mission and align them with Commerce’s strategic plan. The fifth 

challenge has been reduced to only include improving financial 

management because Commerce has nearly completed its efforts related to 

the 2000 Census and has explored alternatives related to managing its 

research fleet. While we do not identify them as agency performance and 

accountability challenges, this report describes challenges that 

Commerce faces in the areas that we have identified as governmentwide 

high-risk areas--strategic human capital management, information 

security weaknesses, and managing federal real property.



Figure:



Performance and Accountability Challenges:



* Plan and conduct an accurate, cost-effective 2010 Census and improve 

other Commerce statistical programs:



* Help U.S. exporters gain access to foreign markets, and continue to 

help generate and retain jobs and stimulate business growth in areas of 

the nation experiencing high unemployment, low income, or severe 

economic distress:



* Continue to control and require licenses for exporting items that may 

pose a national security risk or foreign policy concern:



* Provide scientific, technical, and managerial expertise to monitor 

and predict changes in the Earth’s environment and to conserve and 

manage U.S. marine and coastal resources:



* Improve financial management departmentwide and complete 

implementation of financial systems:



Planning and Conducting an Accurate, Cost-Effective 2010 Census and 

Improving Other Commerce Statistical Programs:



Commerce is one of the nation’s principal statistical agencies. The 

department’s Bureau of the Census (Census) and Bureau of Economic 

Analysis (BEA), along with its other statistical programs, accounted 

for about 17 percent of the estimated $4.3 billion spent on federal 

statistical programs in 2002. Essential for providing demographic, 

economic, and other data critical to the nation’s well being, several 

department programs face significant management challenges.



One of our long-standing concerns has been the decennial census. A 

successful head count is critical because the Constitution requires a 

census to reapportion the House of Representatives. Census data are 

also used to redraw congressional districts, allocate billions of 

dollars in federal assistance to state and local governments, and for 

many other public and private sector purposes.



We named the 2000 Census a high-risk area in February 1997 because 

formidable challenges surrounded key census-taking operations. 

Although we removed the high-risk designation in 2001 when Census 

generally implemented the 2000 tally consistent with its operational 

plans, our addition of the 2010 Census to the current list of 

performance and accountability challenges reflects our growing concern 

over the numerous obstacles to a cost-effective head count. Indeed, as 

Census plans for 2010, it confronts many of the same difficulties it 

faced in 2000, as well as some newly emerging uncertainties. We will 

continue to review the planning and execution of the 2010 Census over 

the remainder of the decade, paying particular attention to how Census 

responds to these issues. Unless significant progress is made in 

addressing them, we may again designate the decennial census a high-

risk area.



The principal challenge Census faces in 2010 is the near-daunting task 

of cost-effectively counting an ever-larger and increasingly diverse 

population with a design that must be responsive to the needs and 

interests of a broad spectrum of stakeholders that include Congress, 

federal agencies, state and local governments, advocacy groups, and the 

scientific community. However, as we reported in December 2001, the 

cost of the decennial census has escalated dramatically, rising from 

$13 per housing unit in 1970 to $56 per housing unit for the 2000 

Census (in constant fiscal year 2000 dollars).[Footnote 4] Further, the 

$6.5 billion spent on the 2000 Census was nearly double the $3.3 

billion spent on the 1990 Census, and initial Census estimates of the 

cost of the 2010 tally range from $10 billion to $12 billion.



Census attributes the cost increase to its efforts to secure a complete 

count in the face of ever-rising enumeration challenges such as 

achieving an acceptable response rate to the mail-back questionnaire. 

Although Census achieved similar response rates in 1990 and 2000 (65 

percent in 1990 and 64 percent in 2000), it spent far more money on 

outreach and promotion in 2000: about $3.19 per household in 2000 

compared with $0.88 in 1990 (in constant fiscal year 2000 dollars), an 

increase of 260 percent. For 2010, Census confronts the prospect of 

having to invest far more resources simply to match the 2000 Census 

response rates.



Census’s experience in planning the 2000 Census points to areas on 

which management should focus. Key among them is reaching early 

agreement with Congress on the design for the 2010 Census to ensure 

adequate planning, testing, and funding levels. As late as 1995, Census 

did not have a design sufficiently developed to undergo full-scale 

testing for the 2000 Census. The various tests that Census conducted in 

the 1990s, including a “dress rehearsal” in 1998, did not reveal 

several problems that occurred during the actual census.[Footnote 5] 

Other procedures were developed too late to test in an operational 

environment. Moreover, because the administration and Congress 

disagreed over Census’s planned use of sampling, Census was not able to 

finalize the 2000 design until 1999, little more than a year before 

Census Day. Census’s failure to provide Congress with sufficiently 

detailed data on the impact of sampling added to the controversy.



Adding to its planning difficulties, Census lacks comprehensive data on 

specific quality measures for the 2000 Census such as the size and 

nature of the undercount and the quality of its master address list, 

which could complicate efforts to identify best practices and to target 

resources for 2010. Census also needs to strategically manage its human 

capital to meet future requirements. For example, three senior census 

managers left Census in 2002; in the years ahead, other key employees 

will become eligible for retirement, making sound succession planning 

essential.



To help address these challenges facing Census, in our recent report on 

lessons learned for planning a more cost-effective 2010 Census, we 

recommended that the Secretary of Commerce direct Census to document in 

its future funding requests critical planning information such as:



* specific performance goals for the 2010 Census and how key procedures 

and projects would contribute to those goals;



* detailed information on project feasibility, priorities, and 

potential risks;



* key implementation issues and decision milestones; and:



* performance measures.



Commerce agreed with our recommendation.[Footnote 6]



Other Commerce statistical programs face challenges as well. For 

example, the new Census American Community Survey (ACS), estimated to 

cost $120 million to $150 million a year, is to provide more timely 

household information than previously obtained every 10 years by the 

census long-form questionnaire. Census believes that replacing the long 

form with ACS will improve overall participation in the census because, 

historically, the long form has had a lower response rate compared to 

the short form. Consequently, Census believes a short-form-only census 

in 2010 would produce better quality data while holding down the cost 

of following up with nonrespondents.



Additionally, federal agencies that rely on census data for 

distributing funds and determining program eligibility would benefit 

because information for states and other large geographic areas would 

be available annually, and information for the smaller areas would be 

available every 5 years. Although the information will be more timely, 

because of a smaller sample size, it will be less accurate than that 

produced by the long form. Indeed, Census has been testing ACS since 

1996, but has not yet analyzed ACS quality based on comparisons with 

corresponding data from the 2000 Census to determine that ACS quality 

will meet federal program and state and local government needs. If 

these needs are not met, Census may not be able to justify the 

elimination of the long form in 2010. In September 2002, we recommended 

that, in order to facilitate the transition by federal agencies from 

the use of 2000 decennial census data to the ACS, the Secretary of 

Commerce direct Census to revise and expand the quality-testing and 

evaluation component of the ACS development program. While Census 

generally agreed with the direction of our recommendation, it expressed 

a number of concerns about some of the detailed findings.[Footnote 7]



Commerce also faces challenges in improving other statistical products 

such as BEA’s national economic accounts. BEA’s recent revisions to 

preliminary estimates of gross domestic product (GDP), personal income, 

and corporate profits have indicated a significantly different picture 

of U.S. economic activity since the end of the twentieth century. This 

year’s regular annual revision paints a picture of a much weaker 

economy, raising concerns about the reliability and integrity of BEA’s 

preliminary estimates. For example, in its midyear reestimation of 

earlier forecasts of federal government receipts and expenditures, the 

Congressional Budget Office noted several consequences of this year’s 

annual GDP revisions: among them, an almost 1-percent lower projection 

for GDP in 2012 and a reduction in revenues due to a lower national 

income attributable to wages and salaries as well as to profits. 

Because of these and other critical uses of GDP, the reliability of 

BEA’s estimates warrants continued focus by Commerce.



Promoting and Liberalizing Trade While Creating Jobs:



As the largest importer and exporter of both goods and services in the 

world, the United States has a major stake in building and maintaining 

a system of open markets. With U.S. exports growing more than twice as 

fast as total U.S. output (see figure 1), exports have become 

increasingly important to the U.S. economy. Commerce is responsible for 

helping U.S. exporters gain access to foreign markets. The range of 

Commerce’s activities includes (1) supporting negotiations on market-

opening trade agreements, (2) monitoring and enforcing such trade 

agreements, and 

(3) assisting potential exporters, especially small-and medium-sized 

businesses, to take advantage of export opportunities. In addition, 

through its Economic Development Administration (EDA), Commerce has 

both an agency-level and a governmentwide responsibility for improving 

the economy in distressed areas by, among other things, supporting job 

creation and retention and stimulating industrial and commercial growth 

in rural and urban areas of the nation experiencing high unemployment, 

low income, or severe economic distress.



Figure 1: Growth in U.S. Exports Compared to Overall Output (Gross 

Domestic Product):



[See PDF for image] 



[End of figure] 



Promoting and Liberalizing Trade:



Commerce supports the negotiation of trade agreements in part by co-

administering, with the U.S. Trade Representative, the majority of 

private-sector trade advisory committees, authorized in the Trade Act 

of 1974 to provide industry input needed for trade negotiations. In a 

September 2002 report, we identified the need to revise this 

system.[Footnote 8] We noted that the system has not been updated to 

reflect changes in U.S. trade policy and the economy, with the result 

that the system has gaps in its coverage of industry sectors, trade 

issues, and stakeholders. We also noted that the leadership and 

administrative support provided by Commerce and the U.S. Trade 

Representative has not been sufficient to ensure that the system works 

reliably. Commerce’s limited staff, for example, have needed to focus 

on processes for rechartering the advisory committees and appointing 

members and have not been able to meet their responsibilities to attend 

all of the advisory committees’ meetings. We made several 

recommendations aimed at making the system’s private sector 

consultation process more meaningful and reliable. While Commerce 

characterized the report as thorough and fair, it urged us to make a 

number of modifications with which we generally disagreed.[Footnote 9]



Commerce also faces challenges in helping to monitor and enforce the 

several hundred trade-related agreements already on the books. In March 

2000, we reported that the creation of a vast array of U.S. trade 

agreements since the early 1980s had caused dramatic increases in the 

trade monitoring and enforcement workloads at Commerce and other trade 

agencies.[Footnote 10] We also found that these agencies’ ability to 

monitor and enforce trade agreements was limited due to a lack of 

sufficient staff with appropriate expertise, inadequate support from 

other agencies, and difficulty obtaining comprehensive input from the 

private sector. Since our report was issued, Commerce has received 

significant increases in funding for staff to monitor and enforce trade 

agreements. However, due to the recent nature of the increases, we 

believe it is too early to determine fully whether these additions have 

been effective in resolving these issues.



Commerce is also the lead federal agency in conducting export promotion 

programs aimed at helping U.S. businesses sell their products and 

services abroad, with about 2,500 people stationed throughout the 

United States and in 84 countries. Eight other federal agencies also 

play important roles in the export process, and the Secretary of 

Commerce, as Chairman of the interagency Trade Promotion Coordinating 

Committee, has a mandate to coordinate these agencies’ varied 

activities.[Footnote 11] Among other tasks, the Secretary is to (1) 

develop an annual, governmentwide strategic plan for carrying out 

federal export promotion and financing programs, and 

(2) identify areas of overlap and duplication among federal export 

activities. However, our work evaluating the coordination of export 

promotion services has indicated that Commerce has been inconsistent in 

its leadership role, and that it is unclear whether the agencies are 

using export promotion resources most productively. In September 2002, 

we reported that the committee’s annual strategic plans have provided 

neither clear guidance concerning export agencies’ specific goals and 

responsibilities nor an assessment of progress made from year to year, 

and we recommended that the committee undertake such actions.[Footnote 

12] In the same report, we noted that some of the committee’s long-

standing recommendations regarding the provision of export services 

remain to be implemented, and we recommended that the committee 

regularly analyze progress in these areas. In response, the committee 

noted its intention to address our recommendations and to make periodic 

reports to Congress on the implementation of the committee’s 

recommendations.



In its export assistance programs, Commerce seeks to increase the 

number of small-and medium-sized businesses participating in 

international trade by identifying export-capable firms and providing 

them with export training. Our September 2001 report on small business 

export training programs noted that Commerce has experienced 

difficulties in recruiting qualified training participants and in 

following their progress in the export process.[Footnote 13] It also 

noted that Commerce and the Small Business Administration were 

providing virtually identical export training programs and that the 

Trade Promotion Coordinating Committee had not fully met its mandate to 

eliminate duplication of export programs. We recommended that these 

programs be combined and that Commerce follow up on training 

participants’ progress to assess exporter needs and consider program 

adjustments. Commerce has since acted to combine the two export 

training programs and has stated its intention to begin conducting 

follow-up surveys of training participants.



Creating Jobs:



Through EDA, Commerce has both an agency-level and a governmentwide 

responsibility for improving the economy in distressed areas. 

Specifically, EDA was created to generate jobs, help retain existing 

jobs, and stimulate industrial and commercial growth in rural and urban 

areas of the nation experiencing high unemployment, low income, or 

severe economic distress. EDA provides grants to economically 

distressed communities for specific projects. In addition, through 

legislation and accompanying reports, the Congress has urged EDA to 

aggressively pursue efforts to increase the efficiency of the federal 

response to distressed communities by working with other agencies.



EDA has made some progress in meeting the two fiscal year 2001 

performance goals related to improving the economy in distressed areas-

-promoting private enterprise and job creation in economically 

distressed communities and building local capacity to achieve and 

sustain economic growth. For example, EDA reported that it met its 

targets for state and local dollars committed to EDA-funded projects 

that are intended to create jobs and exceeded its target for the 

percentage of EDA investments in areas of highest distress. EDA stated 

that it will discontinue reporting on certain interim and process 

measures in fiscal year 2002 because it will have performance data for 

some of the long-term results of its investments.



EDA also has taken steps to coordinate its work with that of other 

agencies. In particular, Commerce’s fiscal year 2003 performance plan 

identifies other agencies--both inside and outside of Commerce--that 

share crosscutting issues with EDA. However, EDA has not yet taken the 

important next step of collaborating with other agencies to develop 

common or complementary goals for improving performance in addressing 

crosscutting issues.[Footnote 14] Commerce’s responsibilities in this 

area derive from a mandate in the Economic Development Administration 

and Appalachian Regional Development Reform Act of 1998 (Pub. L. 105-

393, 112 Stat. 3596), which requires that other federal agencies 

cooperate with Commerce in its efforts to assist distressed 

communities. Furthermore, the Senate report accompanying the 

legislation states that EDA should aggressively pursue efforts to 

increase the efficiency of the federal response to distressed 

communities by working with other agencies. As we reported in September 

2000, at least nine agencies other than the Department of Commerce fund 

economic development activities.[Footnote 15] These include the 

Departments of Agriculture, Housing and Urban Development, Defense, 

Health and Human Services, Interior, and Transportation; as well as the 

Environmental Protection Agency, the Small Business Administration, and 

the Appalachian Regional Commission. These agencies, along with EDA, 

operate over 70 programs that can be used to support economic 

development by funding activities that include constructing roads, 

streets, water and sewer systems, nonresidential buildings, and 

industrial parks.



Strengthening Export Controls While Facilitating Global Enterprise:



At the same time that it encourages trade, Commerce, through the Bureau 

of Industry and Security, is one of two primary agencies that 

administer the nation’s export control system.[Footnote 16] Under U.S. 

law, the President has the authority to control and require licenses 

for exporting items that may pose a national security risk or foreign 

policy concern. The risk level can vary depending on the item being 

exported and the country of destination; therefore, exports of some 

items involve less risk than other items and exports to some countries 

involve less risk than to other countries.



Among other things, the Bureau of Industry and Security helps 

administer the nation’s export control system by processing license 

applications for exports of items having both military and civilian 

applications, such as chemical, biological, nuclear, and missile 

technology items. Our reports have consistently identified numerous 

problems in the administration of this system, including noncompliance 

with the law, a weak analytical basis for making licensing decisions, 

and increased processing times. In one of these reports, we recommended 

that the Secretary of Commerce use available immigration data to 

identify foreign nationals who could be subject to deemed export 

licensing requirements and work with the other departments to develop a 

risk-based program for monitoring compliance with deemed export 

licenses.[Footnote 17] Commerce stated that it would explore the 

practicality of our recommendation. In another report, we recommended 

that the Secretaries of Commerce, State, and Defense improve the 

transparency, consistency, and timeliness of the commodity 

classification and commodity jurisdiction processes.[Footnote 18] 

While Commerce disagreed with our findings and conclusions, it agreed 

to work with other agencies and companies to implement our 

recommendations.



Our August 2002 report on high-performance computers found that the 

President’s justification for raising export control thresholds did not 

fully meet the requirements of law and was based on inaccurate 

information provided by the computer industry and an inadequate 

assessment of national security issues.[Footnote 19] Thus, we concluded 

that the decision to raise the export control threshold was 

analytically weak and premature, given market conditions. Similarly, in 

April 2002, we found that the U.S. agencies had not conducted the 

analyses necessary to create a sound basis for its licensing decisions 

on exports of advanced semiconductor manufacturing equipment to 

China.[Footnote 20] Our report stated that U.S. policies and practices 

to control the export of advanced semiconductor technology to China are 

unclear and inconsistent, leading to uncertainty among U.S. industries 

about the rationale for some licensing decisions. We concluded that the 

current export control system needs to be reexamined because it has not 

slowed China’s ability to obtain billions of dollars worth of advanced 

semiconductor equipment. Consequently, we recommended that the 

Secretaries of Commerce, Defense, and State reassess, document, and 

update U.S. policy and practices on exporting semiconductor 

manufacturing equipment and materials to China. The agencies disagreed 

with our recommendation, stating that their current policies and 

practices are sufficient for making export licensing decisions to 

China. However, we disagreed because U.S. export regulations governing 

China contain inherent inconsistencies and are based on outdated 

government assessments of the availability of technology from non-U.S. 

sources, and our recommendation remained unchanged.



In addition, our June 2001 report assessing Commerce processing times 

found that license applications that took more than the maximum 90 

days[Footnote 21] to review increased from about 7 percent of total 

applications in fiscal year 1997 to about 13 percent in fiscal year 

2000.[Footnote 22] In May 2001, we reported that Commerce’s regulations 

regarding U.S. licensing requirements for missile-related exports to 

Canada had been inconsistent with the amended Export Administration Act 

for over 10 years.[Footnote 23] We recommended that Commerce revise its 

regulations or seek a statutory change to specifically allow for 

licensing exemptions. Commerce did not agree with our recommendation, 

but said it would consult with other departments and its congressional 

authorizing committees on the usefulness of revising its regulations in 

light of pending legislation. Since the issuance of this report, 

Commerce has solicited input to proposed changes to its regulations, 

but has not yet finalized the changes.



Improving Predictions of Weather and Climate and Management of Key 

Natural Resources:



NOAA provides scientific, technical, and managerial expertise to 

monitor and predict changes in the Earth’s environment and to conserve 

and manage U.S. marine and coastal resources. Its goals include 

improving short-term weather warnings and forecasts, improving the use 

of fishery resources, and preserving marine biological diversity by 

balancing the use of natural resources with the management of protected 

species.



Predictions of Weather and Climate:



Almost two decades ago, NOAA’s National Weather Service (NWS) decided 

to improve its weather warnings and forecasts through a nationwide 

modernization program to upgrade weather observing systems such as 

satellites and radars, design and develop advanced computer 

workstations for forecasters, and reorganize its field office 

structure. NWS recognized that improved warnings and forecasts were 

essential to enhancing public safety and our nation’s economic 

productivity. However, the initial modernization effort faltered 

because of schedule delays, cost overruns, and technical problems on 

key systems. In reviewing these efforts in the mid-to late-1990s, we 

made numerous recommendations to address these difficulties, and NWS 

has acted to implement them. For example, in response to our 

recommendations, NWS established an overall systems architecture, 

improved the availability of its Next Generation Weather Radar, and 

enhanced its Advanced Weather Interactive Processing System software 

development processes.



Through modernization, NWS has achieved improvements in the accuracy 

and timeliness of some weather warnings. For example, in October 1998, 

we reported that the accuracy and timeliness of flash flood warnings 

improved in Ventura and Los Angeles counties in California after the 

Next Generation Weather Radar program was commissioned in 

1996.[Footnote 24] For fiscal year 2001, NWS reported that the lead 

time for flash flood warnings increased by 3 minutes over the lead time 

in fiscal year 2000, and that the accuracy of winter storm warnings 

increased by 5 percent over the accuracy in fiscal year 2000.



Since 2001, NWS has made plans to further improve weather forecasts and 

warnings through upgrades to its supercomputer and future enhancements 

to weather satellites. In addition, for fiscal year 2003, NWS has 

increased some key targets for lead times and accuracy rates and 

lowered or maintained targets for false alarm rates. These goals will 

continue to challenge the agency as it moves to implement new weather-

observing technologies and strives to effectively use increased volumes 

of weather data. For example, in July 2002, we reported on challenges 

in effectively incorporating future volumes of satellite data into 

weather models.[Footnote 25] While NWS plans to build its capacity to 

handle increased volumes of data, more can be done to coordinate and 

focus these plans.



Management of Key Natural Resources:



Part of NOAA’s mission is to conserve and manage the U.S. marine and 

coastal resources. NOAA’s efforts in this area are centered around 

three performance goals: building sustainable fisheries, sustaining 

healthy coasts, and recovering protected species. In its fiscal year 

2001 annual performance report, Commerce states that it met the targets 

for its performance measures related to sustaining healthy coasts and 

recovering protected species. Commerce did not set targets for 

performance related to building sustainable fisheries because the 

measures were newly developed. In its March 2002 semiannual report to 

the Congress, the Office of Inspector General included increasing the 

effectiveness of fishery management as one of Commerce’s top 10 

management challenges. And in its fiscal year 2001 accountability 

report, Commerce included this area as one of the major issues, 

challenges, and concerns for the future.



Improving Financial Management Functions:



In the financial management area, Commerce has made substantial 

progress in recent years, but continues to face challenges in both 

financial statement reporting and financial management systems. 

Specifically, in 1996, Commerce’s Inspector General issued a disclaimer 

of opinion on Commerce’s financial statements due to management’s 

inability to support certain account balances and deficiencies noted in 

Commerce’s internal controls. The auditors identified 39 reportable 

conditions that represented significant deficiencies in the design or 

operation of the internal control structure, of which 37 were 

considered to be material internal control weaknesses. In contrast, 

Commerce received an unqualified audit opinion on its financial 

statements for fiscal year 2001--the third year in a row it received an 

unqualified opinion. In addition, Commerce officials strengthened 

Commerce’s internal control structure so that the number of reportable 

conditions identified by the auditors dropped to two for fiscal year 

2001, of which one was a material weakness. Despite this progress, 

Commerce’s auditors identified financial management and reporting 

weaknesses at three Commerce bureaus. Commerce’s Chief Financial 

Officer has agreed that a diligent effort is needed to continue to 

receive unqualified audit opinions on future Commerce financial 

statements and to resolve the remaining internal control weaknesses.



In the financial systems area, Commerce’s auditors continue to report 

the lack of a single, integrated financial system as a material 

weakness. Furthermore, the auditors reported that their testing of 

Commerce’s financial management systems disclosed instances where the 

systems did not substantially comply with requirements of the Federal 

Financial Management Improvement Act. Commerce recognizes the 

shortcomings of its financial management systems. In its fiscal year 

2001 accountability report, Commerce noted that, taken as a whole, 

Commerce’s financial systems do not comply with GAO principles and 

standards, Chief Financial Officers Act requirements, Joint Financial 

Management Improvement Program requirements, or Office of Management 

and Budget requirements. The accountability report further noted that 

Commerce’s existing systems are not sufficiently integrated, lack 

security controls, and do not provide reliable and timely information. 

Commerce reports that it has made progress in addressing this material 

weakness and will continue its efforts to improve in this area. 

Specifically, Commerce plans to continue its phased implementation of 

the Commerce Administrative Management System, which it expects to 

complete by October 2003. In order to comply with applicable laws and 

safeguard its assets against waste, loss, unauthorized use, or 

misappropriation, Commerce must continue to emphasize financial 

management improvements and correct the remaining internal control 

weaknesses.



Governmentwide Challenges:



Commerce also faces challenges in the areas that we have identified as 

governmentwide high-risk areas--strategic human capital management, 

information security weaknesses, and managing federal real property. In 

general, we identified these areas as high-risk either because of their 

greater vulnerabilities to waste, fraud, abuse, and mismanagement or 

because of major challenges associated with their economy, efficiency, 

or effectiveness.



Strategic Human Capital Management:



In addition to the human capital issues related to trade and the 

census, we have identified human capital issues in other areas of 

Commerce. Specifically, in our 2002 report on the telecommunications 

spectrum, we noted that Commerce’s National Telecommunications and 

Information Administration is facing serious staffing 

problems.[Footnote 26] Specifically, the agency has vacancies in 21 of 

its 122 staff positions for spectrum management, and 40 percent of its 

staff are eligible for retirement by 2006. We recommended that the 

agency develop a strategy for enhancing its oversight of federal 

spectrum use and define its human capital needs for carrying out this 

strategy. Commerce generally agreed with our recommendation, and said 

that it would review its human capital needs and current resources in 

spectrum management and develop a strategy for addressing any 

shortcomings.



In its fiscal year 2001 accountability report, Commerce acknowledges 

that it must take steps to ensure that it retains vital knowledge, 

skills, and management capabilities in an era where many existing 

employees will be eligible to retire, and new employees are hard to 

attract and retain. Commerce states that, among other things, it has 

developed a departmentwide approach to analyzing workforce needs and 

planning recruitment and outreach efforts and will continue to focus on 

this area in the future.



Information Security Weaknesses:



In our August 2001 report on computer security at Commerce, we 

identified significant and pervasive computer security weaknesses in 

the information systems of seven of Commerce’s bureaus.[Footnote 27] We 

also identified weaknesses in the management of Commerce’s overall 

information security program and noted that these computer security 

weaknesses put Commerce’s data and operations at serious risk. Based on 

our findings, we recommended that Commerce develop and execute a 

centrally managed information security program that includes a risk-

based approach, up-to-date security policies, security awareness and 

training, and continuous monitoring of the bureaus’ compliance with 

established policies and the effectiveness of implemented controls. We 

also recommended that Commerce bureaus address the logical access 

control weaknesses identified during the audit. Our follow-up work 

indicates that Commerce has made significant progress in implementing 

our recommendations. Agency officials told us that they plan to address 

all of our recommendations within fiscal year 2003.



In its fiscal year 2001 accountability report, Commerce included 

inadequate controls in information technology security as a new 

material weakness. As a result, Commerce reports that it has taken a 

number of corrective actions. For example, the Secretary initiated 

actions that led to a framework for addressing information technology 

security issues, issuing security alerts for specific problems, and 

establishing a compliance group to define parameters for reviewing 

programs and systems on a continuing basis.



Managing Federal Real Property:



Commerce still faces ongoing physical infrastructure problems. As we 

reported in April 2001, a heating, ventilation, and air conditioning 

system that is incapable of providing proper air circulation or 

maintaining desired temperatures plagues the Census Bureau’s Federal 

Office Building 3, located in Suitland, Maryland.[Footnote 28] The 

building contains levels of carbon dioxide that exceed industry 

standards, thereby exposing tenants to unacceptable conditions. Also, 

the water in the building is not drinkable due to the building’s 

deteriorated infrastructure. We recommended that the Administrator of 

the General Services Administration, which manages the building, ensure 

that sufficient priority consideration is given to projects that would 

effectively prevent or resolve significant health and safety concerns. 

The General Services Administration generally agreed with the 

recommendation.



Commerce plans to focus on the modernization of the facilities used by 

the National Institute of Standards and Technology. According to 

Commerce, new facilities and equipment are needed in order for this 

agency to meet stringent industry measurement requirements. 

Consequently, Commerce has completed or planned new facilities such as 

the Advanced Chemical Sciences Laboratory in Gaithersburg, Maryland 

(which is completed), and the Advanced Measurement Laboratory, also 

located in Gaithersburg, (scheduled for completion in 2004).



[End of section]



GAO Contacts:



Subject(s) covered in this report: Planning and conducting an accurate, 

cost-effective 2010 Census and improving other Commerce statistical 

programs; Contact person: Patricia A. Dalton, Director; Strategic 

Issues; (202) 512-6737; daltonp@gao.gov.



Subject(s) covered in this report: Planning and conducting an accurate, 

cost-effective 2010 Census and improving other Commerce statistical 

programs; Contact person: Robert Parker, Chief Statistician; (202) 512-

9750; parkerr@gao.gov.



Subject(s) covered in this report: Promoting and liberalizing trade 

while creating jobs; ; Strengthening export controls while facilitating 

global enterprise; Contact person: Susan Westin, Managing Director; 

International Affairs and Trade; (202) 512-4128; westins@gao.gov.



Subject(s) covered in this report: Promoting and liberalizing trade 

while creating jobs; Contact person: Thomas J. McCool, Managing 

Director; Financial Markets and Community Investment; (202) 512-8678; 

mccoolt@gao.gov.



Subject(s) covered in this report: Improving predictions of weather and 

climate and management of key natural resources; ; Information security 

weaknesses; Contact person: Joel C. Willemssen, Managing Director; 

Information Technology; (202) 512-6408; willemssenj@gao.gov.



Subject(s) covered in this report: Improving predictions of weather and 

climate and management of key natural resources; Contact person: Robert 

Robinson, Managing Director; Natural Resources and Environment; (202) 

512-3841; robinsonr@gao.gov.



Subject(s) covered in this report: Improving financial management 

functions; Contact person: Jeffrey C. Steinhoff, Managing Director; 

Financial Management and Assurance; (202) 512-2600; 

steinhoffj@gao.gov.



Subject(s) covered in this report: Strategic human capital management; 

Contact person: J. Christopher Mihm, Director; Strategic Issues; (202) 

512-6806; mihmj@gao.gov.



Subject(s) covered in this report: Information security weaknesses; 

Contact person: Robert F. Dacey, Director; Information Technology; 

(202) 512-3317; daceyr@gao.gov.



Subject(s) covered in this report: Managing federal real property; 

Contact person: Bernie Ungar, Director; Physical Infrastructure; (202) 

512-8024; ungarb@gao.gov.



[End of section]



Related GAO Products:



[End of section]



Planning and Conducting an Accurate, Cost-Effective 2010 Census and 

Improving Other Commerce Statistical Programs:



2000 Census: Lessons Learned for Planning a More Cost-Effective 2010 

Census. GAO-03-40. Washington, D.C.: October 31, 2002.



The American Community Survey: Accuracy and Timeliness Issues. GAO-02-

956R. Washington, D.C.: September 30, 2002.



2000 Census: Refinements to Full Count Review Program Could Improve 

Future Data Quality. GAO-02-562. Washington, D.C.: July 3, 2002.



2000 Census: Coverage Evaluation Matching Implemented as Planned, but 

Census Bureau Should Evaluate Lessons Learned. GAO-02-297. Washington, 

D.C.: March 14, 2002.



2000 Census: Best Practices and Lessons Learned for More Cost-Effective 

Nonresponse Follow-up. GAO-02-196. Washington, D.C.: February 11, 

2002. :



2000 Census: Coverage Evaluation Interviewing Overcame Challenges, but 

Further Research Needed. GAO-02-26. Washington, D.C.: December 31, 

2001.



2000 Census: Analysis of Fiscal Year 2000 Budget and Internal Control 

Weaknesses at the U.S. Census Bureau. GAO-02-30. Washington, D.C.: 

December 28, 2001.



2000 Census: Significant Increase in Cost Per Housing Unit Compared to 

1990 Census. GAO-02-31. Washington, D.C.: December 11, 2001.



2000 Census: Better Productivity Data Needed for Future Planning and 

Budgeting. GAO-02-4. Washington, D.C.: October 4, 2001. :



2000 Census: Review of Partnership Program Highlights Best Practices 

for Future Operations. GAO-01-579. Washington, D.C.: August 20, 2001.



Record Linkage and Privacy: Issues in Creating New Federal Research and 

Statistical Information. GAO-01-126SP. Washington, D.C.: April 2001.



Decennial Censuses: Historical Data on Enumerator Productivity Are 

Limited. GAO-01-208R. Washington, D.C.: January 5, 2001. :



Promoting and Liberalizing Trade While Creating Jobs:



International Trade: Advisory Committee System Should be Updated to 

Better Serve U.S. Policy Needs. GAO-02-876. Washington, D.C.: September 

24, 2002.



Human Capital: Major Human Capital Challenges at SEC and Key Trade 

Agencies. GAO-02-662T. Washington, D.C.: April 23, 2002.



Export Promotion: Mixed Progress in Achieving a Governmentwide 

Strategy. GAO-02-850. Washington, D.C.: September 4, 2002.



Export Promotion: Government Agencies Should Combine Small Business 

Export Training Programs. GAO-01-1023. Washington, D.C.: September 21, 

2001.



Trade Adjustment Assistance: Experiences of Six Trade-Impacted 

Communities. GAO-01-838. Washington, D.C.: August 24, 2001. :



Strengthening Export Controls While Facilitating Global Enterprise:



Nonproliferation: Strategy Needed to Strengthen Multilateral Export 

Control Regimes. GAO-03-43. Washington, D.C.: October 25, 2002.



Export Controls: Processes for Determining Proper Control of Defense-

Related Items Need Improvement. GAO-02-996. Washington, D.C.: September 

20, 2002.



Export Controls: Department of Commerce Controls over Transfers of 

Technology to Foreign Nationals Need Improvement. GAO-02-972. 

Washington, D.C.: September 6, 2002.



Export Controls: More Thorough Analysis Needed to Justify Changes in 

High Performance Computer Controls. GAO-02-892. Washington, D.C.: 

August 2, 2002.



Export Controls: Rapid Advances in China’s Semiconductor Industry 

Underscore Need for Fundamental U.S. Policy Review. GAO-02-620. 

Washington, D.C.: April 19, 2002. :



Export Controls: Issues to Consider in Authorizing a New Export 

Administration Act. GAO-02-468T. Washington, D.C.: February 28, 2002. :



Nuclear Nonproliferation: Coordination of U.S. Programs Designed to 

Reduce the Threat Posed by Weapons of Mass Destruction. GAO-02-180T. 

Washington, D.C.: November 14, 2001. :



Export Controls: Clarification of Jurisdiction for Missile Technology 

Items Needed. GAO-02-120. Washington, D.C.: October 9, 2001. :



Export Controls: State and Commerce Department License Review Times Are 

Similar. GAO-01-528. Washington, D.C.: June 1, 2001. :



Export Controls: Regulatory Change Needed to Comply with Missile 

Technology Licensing Requirements. GAO-01-530. Washington, D.C.: May 

31, 2001. :



Export Controls: Inadequate Justification for Relaxation of Computer 

Controls Demonstrates Need for Comprehensive Study. GAO-01-534T. 

Washington, D.C.: March 15, 2001.



Improving Predictions of Weather and Climate and Management of Key 

Natural Resources:



Polar-Orbiting Environmental Satellites: Status, Plans, and Future Data 

Management Challenges. GAO-02-684T. Washington, D.C.: July 24, 2002.



Water Infrastructure: Information on Federal and State Financial 

Assistance. GAO-02-134. Washington, D.C.: November 30, 2001. :



Invasive Species: Obstacles Hinder Federal Rapid Response to Growing 

Threat. GAO-01-724. Washington, D.C.: July 24, 2001. :



Wetlands Protection: Assessments Needed to Determine Effectiveness of 

In-Lieu-Fee Mitigation. GAO-01-325. Washington, D.C.: May 4, 2001.



Improving Financial Management Functions:



Department of Commerce: Status of Achieving Key Outcomes and Addressing 

Major Management Challenges. GAO-01-793. Washington, D.C.: June 15, 

2001.



Governmentwide Challenges:



Telecommunications: Better Coordination and Enhanced Accountability 

Needed to Improve Spectrum Management. GAO-02-906. Washington, D.C.: 

September 30, 2002.



Critical Information Protection: Significant Challenges Need to Be 

Addressed. GAO-02-961T. Washington, D.C.: July 24, 2002.



Information Security: Additional Actions Needed to Implement Reform 

Legislation. GAO-02-470T. Washington, D.C.: March 6, 2002.



Computer Security: Improvements Needed to Reduce Risk to Critical 

Federal Operations and Assets. GAO-02-231T. Washington, D.C.: November 

9, 2001.



Information Security: Weaknesses Place Commerce Data and Operations at 

Serious Risk. GAO-01-751. Washington, D.C.: August 13, 2001.



Information Security: Weaknesses Place Commerce Data and Operations at 

Serious Risk. GAO-01-1004T. Washington, D.C.: August 3, 2001.



Federal Buildings: Funding Repairs and Alterations Has Been a 

Challenge--Expanded Financing Tools Needed. GAO-01-452. Washington, 

D.C.: April 12, 2001.



[End of section]



Performance and Accountability and High-Risk Series:



Major Management Challenges and Program Risks: A Governmentwide 

Perspective. GAO-03-95.



Major Management Challenges and Program Risks: Department of 

Agriculture. GAO-03-96.



Major Management Challenges and Program Risks: Department of Commerce. 

GAO-03-97.



Major Management Challenges and Program Risks: Department of Defense. 

GAO-03-98.



Major Management Challenges and Program Risks: Department of Education. 

GAO-03-99.



Major Management Challenges and Program Risks: Department of Energy. 

GAO-03-100.



Major Management Challenges and Program Risks: Department of Health and 

Human Services. GAO-03-101.



Major Management Challenges and Program Risks: Department of Homeland 

Security. GAO-03-102.



Major Management Challenges and Program Risks: Department of Housing 

and Urban Development. GAO-03-103.



Major Management Challenges and Program Risks: Department of the 

Interior. GAO-03-104.



Major Management Challenges and Program Risks: Department of Justice. 

GAO-03-105.



Major Management Challenges and Program Risks: Department of Labor. 

GAO-03-106.



Major Management Challenges and Program Risks: Department of State. 

GAO-03-107.



Major Management Challenges and Program Risks: Department of 

Transportation. GAO-03-108.



Major Management Challenges and Program Risks: Department of the 

Treasury. GAO-03-109.



Major Management Challenges and Program Risks: Department of Veterans 

Affairs. GAO-03-110.



Major Management Challenges and Program Risks: U.S. Agency for 

International Development. GAO-03-111.



Major Management Challenges and Program Risks: Environmental Protection 

Agency. GAO-03-112.



Major Management Challenges and Program Risks: Federal Emergency 

Management Agency. GAO-03-113.



Major Management Challenges and Program Risks: National Aeronautics and 

Space Administration. GAO-03-114.



Major Management Challenges and Program Risks: Office of Personnel 

Management. GAO-03-115.



Major Management Challenges and Program Risks: Small Business 

Administration. GAO-03-116.



Major Management Challenges and Program Risks: Social Security 

Administration. GAO-03-117.



Major Management Challenges and Program Risks: U.S. Postal Service. 

GAO-03-118.



High-Risk Series: An Update. GAO-03-119.



High-Risk Series: Strategic Human Capital Management. GAO-03-120.



High-Risk Series: Protecting Information Systems Supporting the Federal 

Government and the Nation’s Critical Infrastructures. 

GAO-03-121.



High-Risk Series: Federal Real Property. GAO-03-122.



FOOTNOTES



[1] U.S. General Accounting Office, Major Management Challenges and 

Program Risks: Department of Commerce, GAO-01-243 (Washington, D.C.: 

January 2001).



[2] U.S. Department of Commerce: FY 2001 Accountability Report: 

Charting Our Course for a Stronger America, March 2002.



[3] The Bureau of Industry and Security was formerly called the Bureau 

of Export Administration.



[4] U.S. General Accounting Office, 2000 Census: Significant Increase 

in Cost Per Housing Unit Compared to 1990 Census, GAO-02-31 

(Washington, D.C.: Dec. 11, 2001).



[5] See U.S. General Accounting Office, 2000 Census: Preparations for 

Dress Rehearsal Leave Many Unanswered Questions, GGD-98-74 

(Washington, D.C.: Mar. 26, 1998).



[6] U.S. General Accounting Office, 2000 Census: Lessons Learned for 

Planning a More Cost-Effective 2010 Census, GAO-03-40 (Washington , 

D.C.: Oct. 31, 2002).



[7] For a more complete discussion of the Bureau’s comments see U.S. 

General Accounting Office, The American Community Survey: Accuracy and 

Timeliness Issues, GAO-02-956R (Washington, D.C.: Sept. 30, 2002).



[8] U.S. General Accounting Office, International Trade: Advisory 

Committee System Should be Updated to Better Serve U.S. Policy Needs, 

GAO-02-876 (Washington, D.C.: Sept. 24, 2002).



[9] For a more complete description of the comments see GAO-02-876.



[10] U.S. General Accounting Office, International Trade: Strategy 

Needed to Better Monitor and Enforce Trade Agreements, GAO/NSIAD-00-76 

(Washington, D.C.: Mar. 14, 2000). 



[11] The Export Enhancement Act of 1992 created the Trade Promotion 

Coordinating Committee to coordinate the delivery of federal export 

promotion services and to eliminate the areas of overlap and 

duplication among federal export promotion programs. The U.S. 

Departments of Agriculture, Commerce, Defense, Energy, the Interior, 

Labor, State, Transportation, and the Treasury; the Agency for 

International Development; the Council of Economic Advisers; the 

Environmental Protection Agency; the U.S. Export-Import Bank; National 

Economic Council; the Office of Management and Budget; the Overseas 

Private Investment Corporation; the Small Business Administration; the 

U.S. Trade and Development Agency; and the U.S. Trade Representative 

comprise the Trade Promotion Coordinating Committee.



[12] U.S. General Accounting Office, Export Promotion: Mixed Progress 

in Achieving a Governmentwide Strategy, GAO-02-850 (Washington, D.C.: 

Sept. 4, 2002).



[13] U.S. General Accounting Office, Export Promotion: Government 

Agencies Should Combine Small Business Export Training Programs, GAO-

01-1023 (Washington, D.C.: Sept. 21, 2001).



[14] The June 2002 Office of Management and Budget Circular No. A-11, 

Preparation, Submission, and Execution of the Budget, which provides 

guidance to executive branch agencies for, among other things, 

preparing performance plans, states that some general goals may relate 

to cross-agency functions, programs, or activities. In such instances, 

the circular notes that agencies may have a shared responsibility for 

defining and achieving general goals for these crosscutting areas and 

states that agencies should ensure that appropriate and timely 

consultation occurs with other agencies during development of strategic 

plans with crosscutting goals.



[15] U.S. General Accounting Office, Economic Development: Multiple 

Federal Programs Fund Similar Economic Development Activities, GAO/

RCED/GGD-00-220 (Washington, D.C.: Sept. 29, 2000).



[16] The State Department licenses defense items through its Office of 

Defense Trade Controls.



[17] U.S. General Accounting Office, Export Controls: Department of 

Commerce Controls over Transfers of Technology to Foreign Nationals 

Need Improvement, GAO-02-972 (Washington, D.C.: Sept. 6, 2002). 



[18] U.S. General Accounting Office, Export Controls: Processes for 

Determining Proper Control of Defense-Related Items Need Improvement, 

GAO-02-996 (Washington, D.C.: Sept. 20, 2002). 



[19] U.S. General Accounting Office, Export Controls: More Thorough 

Analysis Needed to Justify Changes in High Performance Computer 

Controls, GAO-02-892 (Washington, D.C.: Aug. 2, 2002).



[20] U.S. General Accounting Office, Export Controls: Rapid Advances in 

China’s Semiconductor Industry Underscore Need for Fundamental U.S. 

Policy Review, GAO-02-620 (Washington, D.C.: Apr. 19, 2002).



[21] Executive Order 12981 requires that the license review process be 

completed in 90 days, but allows the review “clock” to be stopped at 

certain points such as when more information is needed from the 

applicant.



[22] U.S. General Accounting Office, Export Controls: State and 

Commerce Department License Review Times Are Similar, GAO-01-528 

(Washington, D.C.: June 1, 2001).



[23] U.S. General Accounting Office, Export Controls: Regulatory Change 

Needed to Comply with Missile Technology Licensing Requirements, GAO-

01-530 (Washington, D.C.: May 31, 2001). 



[24] U.S. General Accounting Office, National Weather Service: Sulphur 

Mountain Radar Performance, GAO/AIMD-99-7 (Washington, D.C.: Oct. 16, 

1998).



[25] U.S. General Accounting Office, Polar-Orbiting Environmental 

Satellites: Status, Plans, and Future Data Management Challenges, GAO-

02-684T (Washington, D.C.: July 24, 2002).



[26] U.S. General Accounting Office, Telecommunications: Better 

Coordination and Enhanced Accountability Needed to Improve Spectrum 

Management, GAO-02-906 (Washington, D.C.: Sept. 30, 2002).



[27] U.S. General Accounting Office, Information Security: Weaknesses 

Place Commerce Data and Operations at Serious Risk, GAO-01-751 

(Washington, D.C.: Aug. 13, 2001).



[28] U.S. General Accounting Office, Federal Buildings: Funding Repairs 

and Alterations Has Been a Challenge--Expanded Financing Tools Needed, 

GAO-01-452 (Washington, D.C.: Apr. 12, 2001).



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