This is the accessible text file for GAO report number GAO-04-648R 
entitled 'NASA: Compliance with Cost Limits' which was released on 
April 02, 2004.

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April 2, 2004:

The Honorable John McCain:

Chairman:

The Honorable Ernest Hollings:

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:

Section 202 of the National Aeronautics and Space Administration 
(NASA):

Authorization Act of 2000 (P.L. 106-391) requires that GAO verify 
NASA's accounting for amounts obligated against established limits for 
the space station and related space shuttle support. Under the act, 
obligations are limited to $25 billion for the space station and $17.7 
billion for shuttle support. In the past, we reported that NASA was 
unable to provide detailed support for the amounts it had reported a  
obligated against the limits. Thus, we could not verify the amounts 
NASA reported to Congress in its fiscal year 2002 through 2004 budget 
requests.

NASA's did not report obligations to date against the space station and 
shuttle cost limits as part of its fiscal year 2005 budget request. 
Therefore, there was nothing for us to audit this year and we were 
unable to perform the audit called for by section 202 of the act. As a 
result, we have no basis for verifying NASA's charges against the 
limits. We have provided a copy of the slides to NASA officials and 
they agreed with our conclusion.

As discussed with your staff, the enclosed slides summarize current and 
past reporting issues on these legislative restrictions. If you or your 
staff have any questions about the slides, please contact me at (202) 
512-9505 or by e-mail at kutzg@gao.gov or Diane Handley, Assistant 
Director, at (404) 679-1986 or by e-mail at handleyd@gao.gov.

Signed by: 

Gregory D. Kutz:

Director, Financial Management and Assurance:

Enclosures:

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