NAATS Exhibit 26

Selected GAO Reports and Testimony
Title	Date	Findings

FAA Alaska: Weak Controls Resulted in Improper and Wasteful Purchases GAO-02-606	May 30, 2002	Airway Facilities Division of FAA, which is responsible for maintaining airway navigation and communication equipment in Alaska, implemented new program in 1997 for equipment maintenance certification requirements. GAO found that the highly decentralized operating environment made it susceptible to internal control weaknesses and improper or wasteful purchases. GAO reviewed 150 purchases made in fiscal years 1999 to 2001 and found that 118 did not comply with one or more FAA purchasing requirements.

Major Management Challenges and Program Risks, Department of Transportation GAO-01-253	January 2001	The ambitious air traffic control modernization that was initiated in 1981 is now expected to cost $45 billion through fiscal 2005. "The modernization effort has experienced cost overruns, schedule delays, and performance shortfalls of large proportions. Because of its size, complexity, cost, and problem-plagued past, we designated this program as a high-risk information technology initiative in 1995. Many of the issues we reported then remain today, and we continue to believe this program remains at high risk." The FAA "lacks a cost accounting system or an alternative means to meaningfully accumulate and report its costs... [which limits the] ability to make effective decisions about resource needs and to adequately control major projects (p. 39)." Though the Agency has been making progress in improving and modernizing its accounting systems, the GAO notes that "the applications being placed into service are not fully integrated with other systems within DOT and FAA... [and] as a result, the systems do not provide the reliable up-to-date data needed for making decisions (p.40)."

FAA: Challenges in Modernizing the Agency. Testimony by Gerald L. Dillingham before the Committee on the Budget and the Subcommittee on Transportation, Committee on Appropriations, U.S. Senate	February 3, 2000	Modernization program initiated in 1981, which is expected to cost $40 billion through fiscal year 2004, has "experienced cost overruns, delays and performance shortfalls of large proportions". Problems caused primarily by design and implementation factors, such as underestimating the complexity of developing systems and inadequate management oversight.

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