FINANCIAL MANAGEMENT IMPROVEMENT Pursuant to the Budget and Accounting Procedures Act of 1950, the General Accounting Office: о Prescribes accounting principles and standards for Cooperates with agencies in the development and Determines the adequacy of the agencies' principles • works with the Office of Management and Budget, the Treasury Department, and the Civil Service Commission in the Joint Financial Management Improvement Program, a Government-wide program for stimulating improvements in accounting and other financial management practices. To effectively carry out these activities in fiscal year 1976, we estimate we will need 111 average positions. of the 149 systems of civil and international departments and agencies subject to approval, 91 designs had been approved as of December 31, 1972. In the Department of Defense there are 170 systems and only 8 of them have been approved by our Office. Most of the remainder are scheduled for submission over the next eight years. We are working cooperatively with DOD officials to try to bring their accounting systems up to our standards. Measuring and Enhancing Federal Productivity In a major financial management project, we have beer working with other agencies to measure and enhance productivity in the Federal sector. The report issued on June 30, 1972, stated that a workable technique, capable of measuring trends in productivity of 54 percent of Federal civilian employees, from year to year, on a consistent basis had been developed. It stated the changes in the productivity of the measured work force for the period from 1967 to 1971 and recommended that the Bureau of Labor Statistics be asked to assess the data and methodology and to propose plans for assuming future collection It also recommended improve and publication responsibilities. ments to enhance productivity in the Federal Government, including actions to expand the uses of measurement systems and to reduce disincentives to improved Federal productivity. The project has been extended for one year. During this period an attempt will be made to further refine and improve the initial productivity indices and their uses, and to expand their coverage to additional Federal employees and to functions common to the Federal, State, and local levels of government. Auditing Standards In June 1972, we published a new statement of standards for auditing governmental organizations, programs, activities, and functions. This project was begun in 1970 under GAO leadership with assistance from major Federal agencies involved in grant-in-aid programs. The standards are intended for application by Federal, State, and local government auditors and public accountants engaged in the audit of governmental activities. Our efforts in this field now and for an indefinite period in the future are directed toward obtaining acceptance and use of these standards by State and local auditing authorities as one means of improving the auditing as well as the management of governmental activities where Federal financial assistance is involved. LEGAL SERVICES AND DECISIONS The legal work of the Office extends, with certain exceptions, to virtually the full range of the Government's receipt and expenditure activity. This work involves: Preparation of legal decisions on questions within Preparation of legal decisions in response to requests Furnishing legal reference and library services Officewide. Legal review of audit reports and other legal services. Legal services to committees and Members of Congress. A significant segment of our legal work which has been increasing significantly involves bid protests, in which we decide the validity of proposed or actual contract awards. The Commission on Government Procurement has recommended that the GAO continue as a protest-resolving forum. The volume of this work had expanded significantly over the last several years. The number of bid protests handled has risen from 391 in calendar year 1967 to 1227 in fiscal year 1972. In each intervening year there was an increase in workload over the preceding year. In addition to the increase in numbers, the proportion of protests involving negotiated procurements, which are usually much larger in dollar volume and present more complex legal questions, has risen steadily from less than 25 percent in fiscal year 1968 to more than 35 percent in fiscal year 1972. We expect these trends to continue throughout FY 1973 and FY 1974. To provide the required legal services and decisions at the projected workload levels will require 202 manyears in FY 1974. CLAIMS SETTLEMENT AND DEBT COLLECTION GAO settlement of claims against the United States provides aggrieved parties an impartial and independent settlement of their claims, at little or no expense to them, by a forum that is completely independent of the agencies out of whose operations the claims arise. It also significantly reduces the burden of the courts and the Department of Justice in that possible litigation is avoided. Claims against the United States referred to GAO for settlement are (1) those required by statute to be paid on settlement of this Office and (2) those involving doubtful questions of law or fact. During the first half of fiscal year 1973, we settled 3,321 claims, resulting in the total amount of $118.7 million being allowed. Due largely to the demobilization of military forces, we anticipate an increase in payment claims from 8,066 in FY 1972 to 8,670 for the whole of FY 1973. Our disposals of such claims will be in excess of 7,800 or about the same as in FY 1972. We examine and adjudicate claims made by the United States which are referred to us because of administrative doubt as to the liability of the debtor or the amount of the debt. Other claims are referred to us because debt collection efforts have proven to be unsuccessful. During fiscal year 1973 we expect to receive 28,000 claims which is 9,315 or 50 We will continue to (1) intensify our reviews of agency claims settlement and debt collection activities with the objective of improving executive agency operations and (2) streamline our procedures to enable the processing of a greater number of claims with fewer personnel. We plan to use 152 manyears in this program category in FY 1974. FEDERAL ELECTION ACTIVITIES This category involves GAO performance of functions required by the Federal Election Campaign Act of 1971 and the Presidential Election Campaign Act approved on December 10, 1971. The more immediate requirements for our expenditure of resources is in connection with the extensive duties imposed by the Federal Election Campaign Act of 1971. No The Presidential Election Campaign Fund Act permits tax payers to check off $1 ($2 on joint returns) of their Federal income tax payments to a political party of their choice. payments from the campaign fund created by the check-off plan will be made before 1976. However, sometime prior to that time, it will be necessary for GAO to draft and promulgate regulations and forms and plan the operations required by the Act. we To meet our responsibilities under this category, estimate that 33 average positions will be required in Washington, D.C., in fiscal year 1974. It seems likely that future audits of political committees throughout the country can best be performed by increases in our field staff. We estimate that this requirement will be fairly substantial; however, until our requirements can be better determined we will not ask for such additional staff. EXECUTIVE DIRECTION AND MANAGEMENT SERVICES Our program category of Executive Direction and Manage ment Services includes: • Direction and control of the operations of the General Accounting Office by the Office of the Comptroller General. • The functions of the Office of Policy, the Office of • General administrative services, accounting, and records management. • Personnel management, recruiting, and staff development. |