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we classify in this category includes: Committee and Member requests; testimony at hearings; staff assigned to congressional committees; advice on pending legislation; accounting, auditing, and advisory services for House and Senate financial and administrative operations; and congressional liaison activities.

We do work for virtually all committees. Attachment 2 demonstrates this. Requests range from minor efforts, involving less than a staffyear, to major ones, requiring over 25 staff-years. While we get many requests from Members of Congress, they constitute only about onethird of the staff-year requirements for this program category. The rest stem largely from committee requests.

Many of the requests we receive from committees and Members deal with matters needed in both the congressional legislative and oversight roles. Many involve controversial matters affecting congressional districts and States. The appendix to our "Justification of Estimates" includes examples that show the range and diversity of the requests we receive.

When requests of particular committees or Members are for work in an area of general interest, we can often broaden the work to cover the needs of others. This has proved to be an effective way to fulfill different requests dealing with the same or similar subject matter. Increasingly, we are able to use work under requests to meet objectives that we would otherwise seek to achieve through our self-initiated work. Of course, any changes in the scope of requested work are discussed with the committees or Members involved. We want to be sure that our reports are not delayed to the point that their value to the requestor is reduced.

No small part of our assistance to committees is the testimony that we provide. We testified before congressional committees on 172 occasions last year, compared to 69 the previous year.

As I have mentioned, although our work in this category will increase by 10 staff-years from fiscal year 1977 to fiscal year 1978, we plan to meet this increase by reprograming from our claims settlement program category.

REVIEWS OF ECONOMY, EFFICIENCY, AND PROGRAM EFFECTIVENESS

These self-initiated reviews are designed to give the Congress information and recommendations to improve its oversight of executive agencies. They also give information on program results or program effectiveness and other analysis to help the Congress consider legislative proposals for new or changed programs. The Legislative Reorganization Act of 1970 and the Congressional Budget and Impoundment Control Act of 1974 emphasize GAO's role in aiding the Congress with its legislative as well as its oversight responsibilities. Both acts have had a major impact on our work.

In planning our self-initiated work, we first consider the needs and interest of the Congress. In this way we can provide reports that are both relevant and timely. Close, continuing contacts with congressional committees are an important way to assure the usefulness of our work products.

Our self-initiated work is as reflective of congressional interest as we can make it. For example, as we see it, zero-base budgeting and

"sunset" proposals-both of apparent current and continuing concern to the Congress-will greatly depend on effective program evaluation. Recognizing this, we plan increased efforts over the next several to develop better ways of making program evaluations and to assess the ability of Federal agencies to make good evaluations.

In planning our work-both self-initiated and in response to requests-we work closely with the other parts of the legislative branchthe Congressional Research Service, the Congressional Budget Office, and the Office of Technology Assessment-to exchange information and avoid duplication of effort.

In selecting areas for our self-initiated work, we consider: expressions of congressional interest; the importance of programs and activities in terms of public impact, amount of expenditures, investment in assets, and amount of revenues; the newness of programs and activities; public criticism indicating the need for corrective action; and the extent and recentness of prior work by GAO or by agency internal review and evaluation groups.

We have staff located throughout the Washington, D.C. area; in 35 offices and suboffices across the continental United States; and in four offices overseas. From these offices, our staff travels to wherever Government programs are carried out. We are, therefore, able to identify problems as they develop and to keep abreast of what is happening day-to-day in the planning and operation of Federal programs. Our Government-wide responsibilities give us the ability and responsibility to review programs that involve more than one agency. Thus we are able to identify program overlaps, duplication of effort, and the need to correct gaps in program coverage. We can also look at interagency and Government-wide relationships. Our objective in all this work is to point out to the Congress how program effectiveness, efficiency, and economy can be improved.

At present, we have 372 individual assignments in process covering work under this category. Each of these assignments has particular, defined objectives.

Increasingly through a family of assignments, we are examining major issues of highest concern to the Congress. As one way of doing this, we assign planning and coordination responsibilities for the review of some of the more significant issues, particularly those involving more than one Federal agency, to a single "lead" division. That division consults with congressional committees, CRS, CBO, and OTA. It gets advice and assistance throughout GAO, and from agency and nongovernmental sources. Based on all of this, the lead division plans how GAO can make the greatest contribution. Then, the lead division follows through and coordinates GAO-wide work related to the issue. Health, housing, energy, law enforcement, consumer and worker protection, and income security are some of the 29 areas for which we have assigned this type of lead responsibility.

The appendix to our "Justification of estimates" includes examples of our self-initiated work. They were selected not to detail our total effort, but to point up their range and their relevance to current national concerns.

In fiscal year 1978, we will devote 2,325 staff-years to work in this category. This is 44 staff-years more than we used for such work in fiscal year 1977. The increase is needed to meet our responsibilities in

fiscal year 1978 for new and greatly expanded programs. I have already discussed some of the new or changed programs that will affect GAO in fiscal year 1978.

Before requesting increases to provide the needed coverage of these programs, we first made all the adjustments among existing programs that we believe to be possible and still meet the significant responsibilities assigned to us. The increase that we are requesting is as small as we can make it.

COMMENTS ON OTHER PROGRAM CATEGORIES

All of our program categories are described in the "Justification of estimates." My comments thus far have covered the larger ones. I would like now to briefly highlight the others.

EXAMINATION OF AGENCIES' FINANCIAL SYSTEM, TRANSACTIONS,

ACCOUNTS, AND REPORTS

Under other program categories, we consider financial implications. Work under this category, however, is primarily directed to financial accountability. It emphasizes the completeness and accuracy of accounting records and statements, the validity of financial transactions, and the timeliness and usefulness of reports.

Under it, we review accounting systems as they actually operate in connection with agency programs throughout the Government. We audit and settle the accounts of accountable officers in both civil and military departments and agencies and at military finance centers. We also make audits of Government corporations as required by the Government Corporation Control Act of 1945.

Staff-years applied to this category will decrease slightly in fiscal year 1978 from the 229 staff-years to be used in fiscal year 1977. We will continue to emphasize audits of financial control systems rather than of individual transactions.

FINANCIAL MANAGEMENT IMPROVEMENT

This category brings together GAO-wide work directed to improving financial management in Government. In fiscal year 1978, we will: Continue to participate in the Joint Financial Management Improvement Program (with Treasury, OMB, and the Civil Service Commission).

Help Federal, State, and local governments to improve their accounting, auditing, and program evaluation standards and methods. Review and, where warranted, approve agency accounting systems. Our progress has been good and we still contemplate having all agency accounting systems approved by the end of fiscal year 1980.

Help committees to get the fiscal, budgetary, and program information they need and to effectively use the information they get. This is an increasingly important part of our work-one which got particular emphasis as a result of the Budget and Impoundment Control Act of

1974.

Staff-year requirements for this category in fiscal year 1978 will be the same as in fiscal year 1977.

Claims settlement and debt collection activities

This category includes our work in settling claims by and against the United States. Under it, we respond to claims presented to us for settlement. Our progress in handling the volume of workload in a reasonably timely manner has been good. Management improvements continue to permit us to do this job with less staff. In fiscal year 1978 we will require 103 staff-years for this function, 27 fewer staff-years than in fiscal year 1977.

Legal services and decisions

Our legal work covers virtually the full range of Government receipt and expenditure activity. This work involves:

Preparing legal decisions and questions within the jurisdiction of the Comptroller General,

Preparing legal decisions in response to requests of unsuccessful bidders,

Furnishing legal reference and legislative services,

Making legal reviews of audit reports,

Providing legal serivces to committees and Members of the Congress,

and

Providing legal services to GAO divisions and offices.

Resource requirements for this program category in fiscal year 1978-205 staff-years-will remain at the fiscal year 1977 level.

EXECUTIVE DIRECTION AND MANAGEMENT SERVICES

This program category includes activities of a number of offices which manage and support the work of our operating divisions. Over the past several years, we have worked to improve the support services provided. We have emphasized the training and staff development required to meet the needs of a GAO staff that has become highly interdisciplinary. Greatly needed expansion of our library and reference services to provide our audit and evaluation staff with a wider range of research and reference material has been a priority concern. Yet, we have still attempted to reduce the costs of our support functions wherever possible. Our work in the category will require 571 staff-years in fiscal year 1978, the same as in fiscal year 1977.

ACCOMPLISHMENTS

Before concluding my statement, I will summarize some of our recent accomplishments.

In fiscal year 1976 through the transition period, we issued 1,299 audit reports to the Congress, committees, members, and agency officials. In fiscal year 1977, through December 31, we have issued 223 such reports, and as of that date, work on 1,571 assignments was in process. During the same period we issued 4,067 legal decisions to heads of departments and agencies; to certifying, contracting, and disbursing officers; and to individual claimants. In that year, based on congressional requests, we provided 513 legal opinions and commented on 426 pieces of legislation.

As you know, we constantly try to identify opportunities to improve the economy and effectiveness of Government programs and operations. Where possible we identify collections received and estimate dol

lar savings that result directly from GAO actions. These totaled $532.2 million in fiscal year 1976 through the transition period.

Collections attributable directly to GAO efforts totaled $50.4 million. The significant reduction in collections below fiscal year 1975 resulted from transfer of transportation audit responsibilities to the General Services Administration. Collections include:

Collection of debts that other Federal agencies had been unable to collect.

Collection of excessive or erroneous payments made over a range of circumstances, including those resulting from defective computer programs and from overcharges for commercial transportation and other services provided to Government agencies.

During the same period savings directly attributable to GAO work totaled $481.8 million. Those savings resulted from a wide variety of improvements in the economy and efficiency of Government programs and operations. They include 117 actions involving 25 different departments and agencies. They cover Federal activities in such diverse areas as ADP operations, facilities construction, manpower training and utilization, transportation, communication, contracting, supply management, logistics, and energy conservation.

Beyond this, in fiscal year 1976 through the transition period GAO contributed directly and substantially to further Federal collections and savings of $1.6 billion. This includes GAO contributions to congressional and agency actions to terminate and deactivate major military weapons systems, standardize equipment, reduce the scope and funding requirements of evaluation of educational programs at Federal agencies, consolidate common agency support activities, improve accounting and financial management systems, revise Federal travel regulations, et cetera.

In addition, Federal agencies took many actions in response to GAO recommendations to achieve economies or make improvements in their operations which cannot be accurately quantified into dollar savings. For example, GAO reports contributed to the reduction of medicaid payments and administrative costs under the supplemental security income program; to the phaseout of U.S. economic assistance to Turkey; to the development of procedures to prevent SBA's lease guarantee from sustaining losses; and to improvements in mailing practices and the reduction of mailing costs.

Although the dollar collections, the savings, and the economies that result from our work are substantial, perhaps even more important are the many recommendations we make which, while not resulting in dollar savings, point out ways to make Federal programs more effective. These GAO actions often directly affect the well-being of individual citizens. A few examples follow:

Making highways safer.-A GAO report pointed up how-through legislation-Federal funding could be better used to further highway safety. The Highway Safety Act of 1976 provided funding arrangements along the lines we recommend.

Improving vehicle safety.-As a result of GAO recommendations, the National Highway Traffic Safety Administration established a followup procedure to help insure that dealers did not sell defective vehicles in inventory until they corrected the defects.

Fostering public participation in Government activities. In response to our recommendations, the Federal Highway Administration

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