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GAO-02-504R 1 (2002-04-10)

handle is hein.gao/gaobaalyi0001 and id is 1 raw text is: £ Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 April 10, 2002 The Honorable Ernest Hollings Chairman The Honorable John McCain Ranking Minority Member Committee on Commerce, Science, and Transportation United States Senate The Honorable Sherwood L. Boehlert Chairman The Honorable Ralph Hall Ranking Minority Member Committee on Science House of Representatives Subject: NASA: Compliance With Cost Limits Cannot Be Verified Section 202 of the National Aeronautics and Space Administration's (NASA) Authorization Act for Fiscal Year 2000 (P.L. 106-391) limits the agency's obligations, through substantial completion of the space station,' to $25 billion for space station development and $17.7 billion for shuttle launches in connection with space station assembly. The act further requires that NASA, as part of its annual budget request, (1) account for and report amounts obligated to date against the cost limits, (2) identify the amounts needed for future development and completion of the space station, and (3) arrange for GAO to verify the accounting submitted to the Congress within 60 days after submission of the budget request. This is our second letter to you reporting on the problems we have encountered in attempting to verify NASA's compliance with the general cost limits as required. In August 2001, we reported that NASA, as part of its fiscal year 2002 budget request, did not comply with the act's requirement to use obligations as its basis for reporting against the cost limits but instead used budget authority. We also reported that the agency was unable to provide detailed support for amounts obligated against the limits for us to evaluate and meet the 60-day reporting requirement. However, NASA 'According to the act, the space station is considered to be substantially complete in the fiscal year that NASA's development costs compose 5 percent or less of the total international space station costs for that year. NASA estimates that this will occur in fiscal year 2004. 2U.S. General Accounting Office, NASA: International Space Station and Shuttle Support Cost Limits, GAO-01-1000R (Washington, D.C.: Aug. 31, 2001). GAO-02-504R NASA Space Station Cost Limits

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