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in 1978, but we understood about that. I think our main problem comes about because of the 5 percent cut, plus this big, unexpected workload increase that we have been hit with this last year, which we did not fully anticipate when we were here a year ago, and which no one could have anticipated. It has just been unprecedented.
Mr. BENJAMIN. I don't know if Mr. Stokes or Mr. Giamo have contacted you, since they also have had copies directed to them, but whatever response you share with us, would you please also direct copies to them?
UPPER LEVEL HIRES Mr. KELLER. Mr. Chairman, one of my staff just handed me statistics on upper level hires last year. I notice we had a total of 115 from October 1, 1977, through September 30. Of the 115, 48 were minorities.
Mr. BENJAMIN. How many were women?
Mr. KELLER. That is within the 48. It actually breaks down 10 blacks, 1 Hispanic, 6 Orientals, and 31 women.
Mr. BENJAMIN. We will wait until we receive your response to this. If we have any further questions we will direct them to you on that.
GAO HOTLINE : In January, a news article indicated that a problem existed between the GAO and OMB with regard to a telephone hotline on which citizens can report fraud, waste or abuse in Federal operations.
What is the status of this project? Have any problems been resolved between the two agencies?
Mr. STAATS. I don't think there is a problem, Mr. Chairman, at all. As a part of this anti-fraud effort that we have made, we instituted, at the suggestion of the Senate Appropriation Committee, a toll-free line, whereby a citizen or a government employee, anyone, could call in, anonymously or not, to offer any information they might have with respect to either fraud, abuse or allegations of such. This is, incidentally, paying off very well, much better than any of us thought it would. We can give you details on that if you would like.
Mr. BENJAMIN. Would you please. I ask that, Mr. Staats, because the FBI has apparently done it in three instances, and they are evaluating how successful it has been. Their preliminary report shows it wasn't as successful as they thought it might be.
Mr. STAATS. We find that over half of the calls that have been received have some substance behind them. In some cases they are sending forward documents. This is a higher figure than we thought it would be.
What is involved in the executive branch, and this item in the press is a garble, is the following: They are interested in implementing the so-called "whistleblower" provision in the Civil Service Reform Act. Some of the agencies are setting up not public toll-free lines but lines in the Federal tele communications system, whereby an employee can call in to the Inspector General of the agency. It is a very different kind of a function, but there is no problem or disagreement at all between us and OMB. IMPLEMENTATION OF INTERNAL AUDIT AGENCIES
RECOMMENDATIONS Mr. BENJAMIN. On October 25, 1978, the GAO issued a report which explained that more effective action was needed to imple ment recommendation contained in the audit reports of the executive branch's numerous internal audit agencies.
Could you explain what progress has been made in resolution and/or collection of questioned or unallowable costs? Do you have any suggestions as to how the Congress might act to improve this situation?
I ask that for the record. Mr. STAATS. All right. (The following responses were supplied for the record:] Subsequent to issuance of the report, OMB officials met with agency representatives concluding that there is indeed a problem. In a letter dated December 6, 1978, they requested agencies to provide additional information on unresolved audit findings and audit followup and resolution systems.
Recently OMB informed GAO that some agencies did not respond with information that was exactly as OMB wanted. As a result, OMB does not have a good measure at this time in the backlog of questioned or unallowable costs. OMB does believe, however, that the situation has improved since agencies have been reexamining and improving their audit resolution systems. OMB also is considering what changes are needed to its circulars containing guidance for resolving audit findings.
GAO has received agency replies to the draft and final report. Most of the replies agreed, at least in principle, with the audit findings and the need for improvement. In a general way, the Department of Defense felt that no changes were needed in their current system. Several other agencies disagreed with specific individual recommendations. In some cases, even when the agencies agreed, there is some question whether the corrective actions cited will correct the problems.
GAO staff is currently working with the House Government Operations Committee to prepare for hearings on the report. The hearings are expected in March.
BUDGET SCHEDULES AND JUSTIFICATIONS Mr. BENJAMIN. At this point in the record, we will insert the budget schedules, the organization chart, the narrative on pages B1 through B-12, and the summary tables on pages C-1 through C-8 of the justifications.
[The information follows:)
U.S. GENERAL ACCOUNTING OFFICF. PROCRAY AND PERFORMANCE
This section describes CAO's overall work plan and the staff resources required in FY 1980. Using an office-wide perspective, it:
--summarizes the status of CAO funding and staff year requirements
for FY 1979--as a backdrop to those for FY 1980;
- describes the need for additional staff resources in FY 1980 as
they stem from:
. legislatively mandated requirements for particular audits
· legislation creating new or expanding existing Federal programs,
specific requests of Committees and members for specific
--summarizes our planned work and application of resources
by Office-wide program categories; and
--describes our work plans for each of the program categories.
The staff requirements of the various divisions and offices by which GAO's work is carried out are detailed in sections following this one. Those sections identify specific division and office responsibilities and indicate the resources that will be required to fulfill then.
THE STATUS OF GAO FUNDING AND STAFF YEAR REQUIREMENTS FOR FY 1979
For FY 1979, GAO requested $187.8 million to fund 5,264 staff years, an increase of 120 staff years over those that we had been authorized for FY 1978. The appropriations committee authorized the 5,264 staff years that we had requested but approved only half-year funding for the 120 staff year increase over FY 1978 levels.
While this action called for a significant adjustment in our plans, we felt we could accommodate it because we would have the full benefit in the following year, t.e., FY 1980. However, the Fiscal Year 1979 Legislative Branch Appropriation Act withheld from obligation and expenditure 5 percent of the total amounts approved except for payments required by law. This action brought to $176.5 million the resources available to GAO in FY 1979--a level which would provide resources for only 5,100 staff years. This is 44 staff years less than FY 1978 levels.
This would, we believe, seriously jeopardize GAO's ability to carry out our responsibilities. Consequently, we have--in a separate Justification of Request for Supplemental Appropriations"--asked for a total of $5.5 million to provide the additional resources needed to fund 5.182 staff years in FY 1979.
While this staff year level will fall well short of our FY 1979 requirements, it will permit us to have 5,350 staff on rolls at the end of FY 1979 and provide a base permitting us to realize the 5,350 stafl years that constitute a minimum level of coverage in FY 1980.
NEED FOR ADDITIONAL STAFF RESOURCES IN FY 1980
New workload, occurring since GAO's last budget submission, will impose substantial additional FY 1980 requirements as follows:
--Specific Mandates. These are requirements for GAO audit and evaluation work included in recer.tly enacted legislation and congressional actions such as committee reports and House and Senate Resolutions. Workload requirements specifically mandated since our FY 1979 budget request was prepared will require 213 staff years in FY 1980.
--Legislation Creating New or Expanding Existing Federal Programs.
This increases GAO's audit and evaluation work under our existing
--Committee and Member Requests. Based on our present knowledge and
past experience, these requests for GAO to perform particular
Taken together, these new demands constitute a known FY 1980 workload increase of 350 staff years above those on which our FY 1979 budget request was based. Our actual FY 1980 increase in workload will, however, be greater than this. Between now and FY 1980 further new legislation will undoubtedly place additional signficant workload demands on GAO. Consistent with our long-standing policy, we have made no provision in our request for resources to meet requirements of any legislation that has not been enacted no matter how likely its passage now seems.
We are requesting funding to support 5,350 staff years in FY 1980. This is an increase of 86 staff years above the 5,264 authorized--but not wholly funded--for FY 1979 and 168 staff years over the 5,182 for which we are requesting supplemental funding in that year. It is a minimal request based on clearly established workload increases over which we have virtually no control.
UNCONTROLLABLE NATURE OF INCREASED WORKLOAD
As indicated above, even with the additional 168 staff years that we are requesting for FY 1980, we will need to absorb substantial workload increases by reprogramming from or further deferring work required by our basic statutes. We believe it is important that we receive the additional resources to fund the 168 staff years that we are requesting to meet those requiresents of increased workload which cannot be deferred and cannot be met in any other way.
GAO's responsibility for the audit and evaluation of virtually all Federal agencies and programs is a workload that continues from year to year. New legislation which adds, modifies or expands Federal programs is enacted each year. These Congressional actions expand GAO's total workload. They increase the total "universe" over which we are required, by our basic legislation, to provide adequate and effective audit coverage. When we do not receive the resources to meet additional requirements we dilute our ability to meet all of our responsibilities. In developing GAO's budget, we keep our resource requests as small as we can through effective planning and work scheduling. But this simply underscores the importance of receiving the resource increases that we do request.