Fiscal Year 2009 Budget Request: U.S. Government Accountability  
Office (30-APR-08, GAO-08-707T).				 
                                                                 
The budget authority GAO is requesting for fiscal year		 
2009--$545.5 million--represents a prudent request of 7.5 percent
to support the Congress as it confronts a growing array of	 
difficult challenges. GAO will continue to reward the confidence 
Congress places in us by providing a strong return on this	 
investment. In fiscal year 2007 for example, in addition to	 
delivering hundreds of reports and briefings to aid congressional
oversight and decisionmaking, our work yielded: financial	 
benefits, such as increased collection of delinquent taxes and	 
civil fines, totaling $45.9 billion--a return of $94 for every	 
dollar invested in GAO; over 1,300 other improvements in	 
government operations spanning the full spectrum of national	 
issues, ranging from helping Congress create a center to better  
locate children after disasters to strengthening computer	 
security over sensitive government records and assets to	 
encouraging more transparency over nursing home fire safety to	 
strengthening screening procedures for VA health care		 
practitioners; and expert testimony at 276 congressional hearings
to help Congress address a variety of issues of broad national	 
concern, such as the conflict in Iraq and efforts to ensure drug 
and food safety.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-707T					        
    ACCNO:   A81926						        
  TITLE:     Fiscal Year 2009 Budget Request: U.S. Government	      
Accountability Office						 
     DATE:   04/30/2008 
  SUBJECT:   Accountability					 
	     Agency missions					 
	     Budget activities					 
	     Budget authority					 
	     Budget obligations 				 
	     Budget outlays					 
	     Budget updates					 
	     Financial analysis 				 
	     Financial futures					 
	     Financial management				 
	     Fiscal policies					 
	     Human capital management				 
	     Human capital policies				 
	     Mission budgeting					 
	     Mission essential operations			 
	     Performance measures				 
	     Program management 				 
	     Staff utilization					 
	     Strategic planning 				 
	     Budget requests					 
	     program goals or objectives			 
	     Program implementation				 
	     GAO High Risk Series				 

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GAO-08-707T

   

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Testimony: 

Before the Subcommittee on Legislative Branch, Committee on 
Appropriations, U.S. Senate: 

United States Government Accountability Office: 

GAO: 

For Release on Delivery Wednesday, April 30, 2008: 

Fiscal Year 2009 Budget Request: 

U.S. Government Accountability Office: 

Statement for the Record by Gene L. Dodaro Acting Comptroller General 
of the United States: 

GAO-08-707T: 

Madam Chair and Members of the Subcommittee: 

I appreciate the opportunity to present GAO's budget request for fiscal 
year 2009. I am proud to say that we serve the Congress and the 
American people well, and I want to publicly acknowledge the 
professionalism, talents, and dedication of the GAO workforce in 
supporting the Congress and improving government. We submit for your 
consideration a funding proposal that would ensure the GAO can continue 
to help Congress make informed oversight, policy, and funding 
decisions. 

At the outset, I want to thank the subcommittee for its support of GAO 
last year, especially in light of the overall budget pressures that the 
subcommittee faced when considering priorities. We ask for your 
continued support so that GAO can take on the issues of greatest 
interest to the Congress and address an increased demand for our 
services.[Footnote 1] 

The budget authority we are requesting for fiscal year 2009--$545.5 
million--represents a prudent request of 7.5 percent to support the 
Congress as it confronts a growing array of difficult challenges. We 
will continue to reward the confidence you place in us by providing a 
strong return on this investment. In fiscal year 2007 for example, in 
addition to delivering hundreds of reports and briefings to aid 
congressional oversight and decisionmaking, our work yielded: 

* financial benefits, such as increased collection of delinquent taxes 
and civil fines, totaling $45.9 billion--a return of $94 for every 
dollar invested in GAO; 

* over 1,300 other improvements in government operations spanning the 
full spectrum of national issues, ranging from helping Congress create 
a center to better locate children after disasters to strengthening 
computer security over sensitive government records and assets to 
encouraging more transparency over nursing home fire safety to 
strengthening screening procedures for VA health care practitioners; 
and: 

* expert testimony at 276 congressional hearings to help Congress 
address a variety of issues of broad national concern, such as the 
conflict in Iraq and efforts to ensure drug and food safety. 

Demand for GAO Services Is High and Increasing: 

Demand for GAO's analysis and advice remains strong across the 
Congress. During the past 3 years, GAO has received requests or 
mandated work from all of the standing committees of the House and the 
Senate and over 80 percent of their subcommittees. In fiscal year 2007, 
GAO received over 1,200 requests for studies. This is a direct result 
of the high quality of GAO's work that the Congress has come to expect 
as well as the difficult challenges facing the Congress where it 
believes having objective information and professional advice from GAO 
is instrumental. 

Not only has demand for our work continued to be strong, but it is also 
steadily increasing. The total number of requests in fiscal year 2007 
was up 14 percent from the preceding year. This trend has accelerated 
in fiscal year 2008 as requests rose 26 percent in the first quarter 
and are up 20 percent at the mid-point of this fiscal year from 
comparable periods in 2007. As a harbinger of future congressional 
demand, potential mandates for GAO work being included in proposed 
legislation as of February 2008 totaled over 600, or an 86 percent 
increase from a similar period in the 109TH Congress. 

The following examples illustrate this demand: 

* Over 160 new mandates for GAO reviews were imbedded in law, including 
the Consolidated Appropriations Act of 2008, the Defense Appropriations 
Act of 2008, and 2008 legislation implementing the 9/11 Commission 
recommendations; 

* New recurring responsibilities were given to GAO under the Honest 
Leadership and Open Government Act of 2007 to report annually on the 
compliance by lobbyists of registration and reporting requirements; 
and: 

* Expanded bid protest provisions applied to GAO that (1) allow federal 
employees to file protests concerning competitive sourcing decisions (A-
76), (2) establish exclusive bid protest jurisdiction at GAO over 
issuance of task and delivery orders valued at over $10 million, and 
(3) provide GAO bid protest jurisdiction over contracts awarded by the 
Transportation Security Administration. 

Further evidence of GAO's help in providing important advice to the 
Congress is found in the increased numbers of GAO appearances at 
hearings on topics of national significance and keen interest (see 
table 1). 

In fiscal year 2007 GAO testified at 276 hearings, 36 more than fiscal 
year 2006. The fiscal year 2007 figure was an all-time high for GAO on 
a per capita basis and among the top requests for GAO input in the last 
25 years. This up tempo of GAO appearances at congressional hearings 
has continued, with GAO already appearing at 140 hearings this fiscal 
year, as of April 4TH. 

Table 1: GAO's Selected Testimony Issues by Strategic Goal, Fiscal Year 
2007: 

Goal 1: Address challenges to the well-being and financial security of 
the American people. 

* Federal oversight of food safety; 
* Capacity and service gaps among homeless veterans programs; 
* Reauthorizing the State Children's Health Insurance Program; 
* Claims processing challenges for veterans' disability benefits; 
* FEMA payments on hurricane-damaged properties; 
* Nursing home oversight; 
* Private pension fees; 
* Small Business Administration's disaster preparedness efforts; 
* Improved safety for coal miners; 
* Federal actions to improve child welfare services; 
* Oil and gas royalties; 
* Medicare physician payments; 
* Effects of seller-funded down payments on home loans; 
* Status of the future air traffic control system; 
* USPS reform efforts; 
* Federal real property issues; 
* Emergency management plans for schools. 

Goal 2: Respond to changing security threats and the challenges of 
globalization. 

* Status of benchmarks for Iraqi government; 
* DOD's management of systems and assets; 
* Improving the military's supply chain; 
* Linking defense strategy with military personnel requirements; 
* Navy shipbuilding; 
* Using best practices for space acquisitions; 
* Vulnerabilities in U.S. export control systems; 
* Combating nuclear smuggling; 
* Securing radiological sources in foreign countries; 
* Improving the efficiency of U.S. food aid procedures; 
* National strategy to enforce intellectual property rights; 
* DHS's major mission and management functions; 
* Risk-management principles and homeland security; 
* Secure border initiative; 
* Bankruptcy reform and credit counseling; 
* National strategy to improve financial literacy; 
* VA's information security management. 

Goal 3: Help transform the federal government's role and how it does 
business. 

* Contracting and security challenges in Iraq; 
* Federal acquisitions and contracting challenges; 
* Acquisition challenges at DHS; 
* Security vulnerabilities at unmonitored border locations; 
* Incomplete reporting of federal improper payments; 
* Transforming DHS's financial management systems; 
* Challenges facing the polar satellite program; 
* Electronic voting; 
* Balancing individual privacy with homeland security needs; 
* Health information technology and privacy; 
* Long-term fiscal challenges; 
* Tax compliance; 
* Human capital challenges facing the federal government; 
* Rebuilding the Gulf Coast; 
* Preparations for the 2010 Census; 
* Fiscal stewardship challenges facing the United States; 
* Tax abuses by Medicare Part B providers. 

Source: GAO. 

[End of table] 

Modest Increase in Staffing Would Help Meet Demand: 

Our FTE level in fiscal year 2008 is 3,100--the lowest level ever for 
GAO. We are proud of the results we deliver to the Congress and our 
nation with this level, but with a slightly less than 5 percent 
increase in our FTEs to 3,251 we can better meet increased 
congressional requests for GAO assistance. While this increase would 
not bring GAO back to the 3,275 FTE level of 10 years ago, it would 
allow us to respond to the increased workload facing the Congress. 

GAO staff are stretched in striving to meet Congress's increasing 
needs. People are operating at a pace that cannot be sustained over the 
long run. I am greatly concerned that if we try to provide more 
services with the existing level of resources, the high quality of our 
work could be diminished in the future. But I will not allow this to 
occur. This is not in the Congress's nor GAO's interest. 

One consequence of our demand vs. supply situation is the growing list 
of congressional requests that we are not able to promptly staff. While 
we continue to work with congressional committees to identify their 
areas of highest priority, we remain unable to staff important 
requests. This limits our ability to provide timely advice to 
congressional committees dealing with certain issues that they have 
slated for oversight, including: 

* Safety concerns such as incorporating behavior-based security 
programs into TSA's aviation passenger screening process, updating our 
2006 study of FDA's post-market drug safety system, and reviewing state 
investigations of nursing home complaints. 

* Operational improvements such as the effectiveness of Border Security 
checkpoints to identify illegal aliens, technical and programmatic 
challenges in DOD's space radar programs, oversight of federally-funded 
highway and transit projects and the impact of the 2005 Bankruptcy 
Abuse Prevention and Consumer Protection Act. 

* Opportunities to increase revenues or stop wasteful spending 
including reducing potential overstatements of charitable deductions 
and curbing potential overpayments and contractor abuses in food 
assistance programs. 

GAO's Fiscal Year 2009 Budget Request: 

Our fiscal year 2009 budget request seeks to better position us to 
maintain our high level of support for the Congress and better meet 
increasing requests for help. This request would help replenish our 
staffing levels at a time when almost 20 percent of all GAO staff will 
be eligible for retirement. Accordingly, our fiscal year 2009 budget 
request seeks funds to ensure that we have the increased staff capacity 
to effectively support the Congress's agenda, cover pay and 
uncontrollable inflationary cost increases, and undertake critical 
investments, such as technology improvement. 

GAO is requesting budget authority of $545.5 million to support a staff 
level of 3,251 FTEs needed to serve the Congress. This is a fiscally 
prudent request of 7.5 percent over our fiscal year 2008 funding level, 
as illustrated in table 2. Our request includes about $538.1 million in 
direct appropriations and authority to use about $7.4 million in 
offsetting collections. This request also reflects a reduction of about 
$6 million in nonrecurring fiscal year 2008 costs. 

Table 2: Fiscal Year 2009 Summary of Requested Changes: 

Dollars in thousands. 

FY 2008 base; 
FTEs: 3,100; 
Amount: $507,239; 
Percent change: [Empty]. 

Subtotal-requested changes; 
FTEs: 151; 
Amount: $38,288; 
Percent change: 7.5. 

FY 2009 budget authority; 
FTEs: 3,251; 
Amount: $545,527; 
Percent change: [Empty]. 

Source: GAO. 

[End of table] 

Our request includes funds needed to: 

* increase our staffing level by less than 5 percent to help us provide 
more timely responses to congressional requests for studies; 

* enhance employee recruitment, retention, and development programs, 
which increase our competitiveness for a talented workforce; 

* recognize dedicated contributions of our hardworking staff through 
awards and recognition programs; 

* address critical human capital components, such as knowledge capacity 
building, succession planning, and staff skills and competencies; 

* pursue critical structural and infrastructure maintenance and 
improvements; 

* restore program funding levels to regain our lost purchasing power; 
and: 

* undertake critical initiatives to increase our productivity. 

Key elements of our proposed budget increase are outlined as follows: 

Pay and inflationary cost increases: 

We are requesting funds to cover anticipated pay and inflationary cost 
increases resulting primarily from annual across-the-board and 
performance-based increases and annualization of prior fiscal year 
costs. These costs also include uncontrollable, inflationary increases 
imposed by vendors as the cost of doing business. 

Rebuilding capacity: 

GAO generally loses about 10 percent of its workforce annually to 
retirements and attrition. This annual loss places GAO under continual 
pressure to replace staff capacity and renew institutional memory. In 
fiscal year 2007, we were able to replace only about half of our staff 
loss. In fiscal year 2008, we plan to replace only staff departures. 
Our proposed fiscal year 2009 staffing level of 3,251 FTEs would 
restore our staff capacity through a modest FTE increase, which would 
allow us to initiate congressional requests in a timelier manner and 
begin reducing the backlog of pending requests. 

Critical technology and infrastructure improvements: 

We are requesting funds to undertake critical investments that would 
allow us to implement technology improvements, as well as streamline 
and reengineer work processes to enhance the productivity and 
effectiveness of our staff, make essential investments that have been 
deferred year after year but cannot continue to be delayed, and 
implement responses to changing federal conditions. 

Human capital initiatives and additional legislative authorities: 

GAO is working with the appropriate authorization and oversight 
committees to make reforms that are designed to benefit our employees 
and to provide a means to continue to attract, retain, and reward a top-
flight workforce, as well as help us improve our operations and 
increase administrative efficiencies. Among the requested provisions, 
GAO supports the adoption of a "floor guarantee" for future annual pay 
adjustments similar to the agreement governing 2008 payment adjustments 
reached with the GAO Employees Organization, IFPTE. The floor guarantee 
reasonably balances our commitment to performance-based pay with an 
appropriate degree of predictability and equity for all GAO employees. 

At the invitation of the House federal workforce subcommittee, we also 
have engaged in fruitful discussions about a reasonable and practical 
approach should the Congress decide to include a legislative provision 
to compensate GAO employees who did not receive the full base pay 
increases of 2.6 percent in 2006 and 2.4 percent in 2007. We appreciate 
their willingness to provide us with the necessary legal authorities to 
address this issue and look forward to working together with you and 
our oversight committee to obtain necessary funding to cover these 
payments. The budget authority to cover the future impact of these 
payments is not reflected in this budget request. 

Establishing and Maintaining Constructive Union Relationships: 

As you know, on September 19, 2007, our Band I and Band II Analysts, 
Auditors, Specialists, and Investigators voted to be represented by the 
GAO Employees Organization, IFPTE, for the purpose of bargaining with 
GAO management on various terms and conditions of employment. GAO 
management is committed to working constructively with employee union 
representatives to forge a positive labor-management relationship. 

Since September, GAO management has taken a variety of steps to ensure 
it is following applicable labor relations laws and has the resources 
in place to work effectively and productively in this new union 
environment. Our efforts have involved: 

* delivering specialized labor-management relations training to our 
managers; 

* establishing a new Workforce Relations Center to provide employee and 
labor relations advice and services; 

* hiring a Workforce Relations Center director, who also serves as our 
chief negotiator in collective bargaining deliberations; and: 

* postponing work on several initiatives regarding our current 
performance and pay programs. 

In addition, we routinely notify union representatives of meetings that 
may qualify as formal discussions, so that a representative of the 
IFPTE can attend the meeting. We also regularly provide the IFPTE with 
information about projects involving changes to terms and conditions of 
employment over which the union has the right to bargain. 

We are pleased that GAO and the IFPTE reached a prompt agreement on 
2008 pay adjustments. The agreement was overwhelmingly ratified by 
bargaining unit members on February 14, 2008, and we have applied the 
agreed-upon approach to the 2008 adjustments to all GAO staff, with the 
exception of the SES and Senior Level staff, regardless of whether they 
are represented by the union. 

Fiscal Year 2007 Achievements: 

In fiscal year 2007, we addressed many difficult issues confronting the 
nation, including the conflict in Iraq, domestic disaster relief and 
recovery, national security, and criteria for assessing lead in 
drinking water. For example, GAO has continued its oversight on issues 
directly related to the Iraq war and reconstruction, issuing 20 
products in fiscal year 2007 alone--including 11 testimonies to 
congressional committees. These products covered timely issues such as 
the status of Iraqi government actions, the accountability of U.S.- 
funded equipment, and various contracting and security challenges. 
GAO's work spans the security, political, economic, and reconstruction 
prongs of the U.S. national strategy in Iraq. 

Highlights of the outcomes of GAO work are outlined below. See appendix 
II for a detailed summary of GAO's annual measures and targets. 
Additional information on our performance results can be found in 
Performance and Accountability Highlights Fiscal Year 2007 at 
[hyperlink, http://www.gao.gov]. 

Financial Benefits: 

GAO's work in fiscal year 2007 generated $45.9 billion in financial 
benefits. These financial benefits, which resulted primarily from 
actions agencies and the Congress took in response to our 
recommendations, included about $21.1 billion resulting from changes to 
laws or regulations, $16.3 billion resulting from improvements to core 
business processes, and $8.5 billion resulting from agency actions 
based on our recommendations to improve public services. 

Table 3: GAO's Selected Major Financial Benefits Reported in Fiscal 
Year 2007: 

Description: Helped to ensure funding for U.S. Postal Service 
retirement-related health care; 
Benefit (in billions): $5.4. 

Description: Improved the Internal Revenue Service's methodology for 
pursuing delinquent taxes; 
Benefit (in billions): 4.2. 

Description: Encouraged National Aeronautics and Space Administration 
decision to terminate the space launch initiative; 
Benefit (in billions): 3.7. 

Description: Helped to reduce food stamp fraud and abuse; 
Benefit (in billions): 3.4. 

Description: Recommended that the Department of Housing and Urban 
Development track and reallocate unspent housing funds; 
Benefit (in billions): 2.2. 

Description: Helped to increase collections of civil debt; 
Benefit (in billions): 1.7. 

Description: Recommended that the Congress reduce the Department of 
Defense (DOD) fiscal year 2007 operations and maintenance budget; 
Benefit (in billions): 1.5. 

Description: Identified an opportunity for DOD to reallocate funds to 
cover new initiatives; 
Benefit (in billions): 1.2. 

Source: GAO. 

[End of table] 

Other Improvements in Government: 

Many of the benefits that result from our work cannot be measured in 
dollar terms. During fiscal year 2007, we recorded a total of 1,354 
other improvements in government resulting from GAO work. For example, 
in 646 instances federal agencies improved services to the public, in 
634 other cases agencies improved core business processes or 
governmentwide reforms were advanced, and in 74 instances information 
we provided to the Congress resulted in statutory or regulatory 
changes. These actions spanned the full spectrum of national issues, 
from strengthened screening procedures for all VA health care 
practitioners to improved information security at the Securities and 
Exchange Commission. See table 4 for additional examples. 

Table 4: GAO's Selected Other Improvements in Government Reported in 
Fiscal Year 2007: 

...that helped to change laws: Department of Homeland Security 
Appropriations Act of 2007, Pub. L. No. 109-295. 
* developing a center to locate children after disasters; 
* improving Federal Emergency Management Agency (FEMA) information on 
the status of hurricane relief and recovery funds; 

Implementing Recommendations of the 9/11 Commission Act of 2007, Pub. 
L. No. 110-53; 
* re-examining inspection exemptions for inbound cargo; 
* re-examining inspection exemptions for domestic air cargo. 

...that helped enhance services to the public: 
* strengthened screening procedures for all VA health care 
practitioners; 
* tightened monitoring criteria in the Environmental Protection 
Agency's rule on lead in drinking water; 
* encouraged reporting of nursing home fire safety deficiencies; 
* improved information security at the Securities and Exchange 
Commission. 

...that helped to promote sound agency and governmentwide management. 
* FEMA establishes control to help limit disaster assistance payments 
to individuals with invalid Social Security numbers; 
* NASA establishes policies for reimbursement by nonofficial travelers 
on passenger aircraft; 
* Army requires credit card vendors to conduct credit checks before 
issuing individually billed travel cards. 

Source: GAO. 

[End of table] 

High Risk Series: 

In January 2007, we also issued our High-Risk Series: An Update, which 
identifies federal areas and programs at risk of fraud, waste, abuse, 
and mismanagement and those in need of broad-based transformations. 
Issued to coincide with the start of each new Congress, our high-risk 
list focuses on major government programs and operations that need 
urgent attention. Overall, this program has served to help resolve a 
range of serious weaknesses that involve substantial resources and 
provide critical services to the public. GAO added the 2010 Census as a 
high-risk area in March 2008. 

Table 5: GAO's High-Risk Areas as of March 2008: 

High-risk area: Addressing challenges in broad-based transformations: 
Strategic Human Capital Management[A]; 
Year designated high risk: 2001. 

High-risk area: Addressing challenges in broad-based transformations: 
Managing Federal Real Property[A]; 
Year designated high risk: 2003. 

High-risk area: Addressing challenges in broad-based transformations: 
Protecting the Federal Government's Information Systems and the 
Nation's Critical Infrastructures; 
Year designated high risk: 1997. 

High-risk area: Addressing challenges in broad-based transformations: 
Implementing and Transforming the Department of Homeland Security; 
Year designated high risk: 2003. 

High-risk area: Addressing challenges in broad-based transformations: 
Establishing Appropriate and Effective Information- Sharing Mechanisms 
to Improve Homeland Security; 
Year designated high risk: 2005. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]; 
Year designated high risk: 2005. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Business Systems 
Modernization; 
Year designated high risk: 1995. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Personnel Security 
Clearance Program; 
Year designated high risk: 2005. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Support 
Infrastructure Management; 
Year designated high risk: 1997. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Financial Management; 
Year designated high risk: 1995. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Supply Chain 
Management; 
Year designated high risk: 1990. 

High-risk area: Addressing challenges in broad-based transformations: 
DOD Approach to Business Transformation[A]: * DOD Weapon Systems 
Acquisition; 
Year designated high risk: 1990. 

High-risk area: Addressing challenges in broad-based transformations: 
FAA Air Traffic Control Modernization; 
Year designated high risk: 1995. 

High-risk area: Addressing challenges in broad-based transformations: 
Financing the Nation's Transportation System[A]; 
Year designated high risk: 2007. 

High-risk area: Addressing challenges in broad-based transformations: 
Effective Protection of Technologies Critical to U.S. National Security 
Interests[A]; 
Year designated high risk: 2007. 

High-risk area: Addressing challenges in broad-based transformations: 
Transforming Federal Oversight of Food Safety[A]; 
Year designated high risk: 2007. 

High-risk area: Addressing challenges in broad-based transformations: 
The 2010 Census (New); 
Year designated high risk: 2008. 

High-risk area: Managing federal contracting more effectively: DOD 
Contract Management; 
Year designated high risk: 1992. 

High-risk area: Managing federal contracting more effectively: DOE 
Contract Management; 
Year designated high risk: 1990. 

High-risk area: Managing federal contracting more effectively: NASA 
Contract Management; 
Year designated high risk: 1990. 

High-risk area: Managing federal contracting more effectively: 
Management of Interagency Contracting; 
Year designated high risk: 2005. 

High-risk area: Assessing the efficiency and effectiveness of tax law 
administration: Enforcement of Tax Laws[A]; 
Year designated high risk: 1990. 

High-risk area: Assessing the efficiency and effectiveness of tax law 
administration: IRS Business Systems Modernization; 
Year designated high risk: 1995. 

High-risk area: Assessing the efficiency and effectiveness of tax law 
administration: Modernizing and safeguarding insurance and benefit 
programs; 
Year designated high risk: [Empty]. 

High-risk area: Modernizing Federal Disability Programs[A]: Pension 
Benefit Guaranty Corporation Single-Employer Insurance Program; 
Year designated high risk: 2003. 

High-risk area: Modernizing Federal Disability Programs[A]: Medicare 
Program[A]; 
Year designated high risk: 1990. 

High-risk area: Modernizing Federal Disability Programs[A]: Medicaid 
Program[A]; 
Year designated high risk: 2003. 

High-risk area: Modernizing Federal Disability Programs[A]: National 
Flood Insurance Program[A]; 
Year designated high risk: 2006. 

Source: GAO. 

[A] Legislation is likely to be necessary, as a supplement to actions 
by the executive branch, to effectively address this high-risk area. 

[End of table] 

Concluding Remarks: 

GAO's achievements are of great service to the Congress and American 
taxpayers. With your support, we will be able to continue to provide 
the high level of performance that has come to be expected of GAO. 

[End of section] 

Appendix I: GAO's Strategic Plan Framework: 

Serving the Congress and the Nation: GAO's Strategic Plan Framework: 

Mission: 

GAO exists to support the Congress in meeting its constitutional 
responsibilities and to help improve the performance and ensure the 
accountability of the federal government for the benefit of the 
American people. 

Themes: 

* Changing Security Threats; 

* Sustainability Concerns; 

* Economic Growth and Competitiveness; 

* Global Interdependency; 

* Societal Change; 

* Quality of Life; 

* Science & Technology; 

Goals & Objectives: 

Provide Timely, Quality Service to the Congress and the Federal 
Government to...

Address Current and Emerging Challenges to the Well-being and Financial 
Security of the American People related to...

* Health care needs; 

* Lifelong learning; 

* Work benefits and protections; 

* Financial security; 

* Effective system of justice; 

* Viable communities; 

* Natural resources use and environmental protection; 

* Physical infrastructure; 

Respond to Changing Security Threats and the Challenges of f Global 
Interdependence involving...

* Homeland security; 

* Military capabilities and readiness; 

* Advancement of U.S. interests; 

* Global market force; 

Help Transform the Federal Governmentï¿½s Role and How It t Does Business 
to Meet 21st Century Challenges by assessing... 

* Roles in achieving federal objectives; 

* Government transformation; 

* Key management challenges and program risks; 

* Fiscal position and financing of the government; 

Maximize the Value of GAO by Being a Model Federal Agency and d a World-
Class Professional Services Organization in the areas of... 

* Client and customer satisfaction; 

* Strategic leadership; 

* Institutional knowledge and experience; 

* Process improvement; 

* Employer of choice; 

Core Values: 

* Accountability; 

* Integrity; 

* Reliability. 

[See PDF for image] 

Source: GAO. 

[End of figure] 

[End of section] 

Appendix II: Agencywide Summary of Annual Measures and Targets: 

Table: Agencywide Summary of Annual Measures and Targets: 

Performance measure: Results: Financial benefits (dollars in billions); 
2004 actual: $44.0; 
2005 actual: $39.6; 
2006 actual: $51.0; 
2007 actual: $45.9; 
2008 target: $40.0[A]; 
2009 target: $40.0. 

Performance measure: Results: Nonfinancial benefits; 
2004 actual: 1,197; 
2005 actual: 1,409; 
2006 actual: 1,342; 
2007 actual: 1,354; 
2008 target: 1,150; 
2009 target: 1,150. 

Performance measure: Results: Past recommendations implemented; 
2004 actual: 83%; 
2005 actual: 85%; 
2006 actual: 82%; 
2007 actual: 82%; 
2008 target: 80%; 
2009 target: 80%. 

Performance measure: Results: New products with recommendations; 
2004 actual: 63%; 
2005 actual: 63%; 
2006 actual: 65%; 
2007 actual: 66%; 
2008 target: 60%; 
2009 target: 60%. 

Performance measure: Client: Testimonies; 
2004 actual: 217; 
2005 actual: 179; 
2006 actual: 240; 
2007 actual: 276; 
2008 target: 220; 
2009 target: 200. 

Performance measure: Client: Timeliness[B]; 
2004 actual: 89%; 
2005 actual: 90%; 
2006 actual: 92%; 
2007 actual: 94%; 
2008 target: 95%; 
2009 target: 95%. 

Performance measure: Client: People; 
2004 actual: [Empty]; 
2005 actual: [Empty]; 
2006 actual: [Empty]; 
2007 actual: [Empty]; 
2008 target: [Empty]; 
2009 target: [Empty]. 

Performance measure: Client: New hire rate; 
2004 actual: 98%; 
2005 actual: 94%; 
2006 actual: 94%; 
2007 actual: 96%; 
2008 target: 95%; 
2009 target: 95%. 

Performance measure: Client: Acceptance rate; 
2004 actual: 72%; 
2005 actual: 71%; 
2006 actual: 70%; 
2007 actual: 72%; 
2008 target: 72%; 
2009 target: [C]. 

Performance measure: Retention rate: With retirements; 
2004 actual: 90%; 
2005 actual: 90%; 
2006 actual: 90%; 
2007 actual: 90%; 
2008 target: 90%; 
2009 target: 90%. 

Performance measure: Retention rate: Without retirements; 
2004 actual: 95%; 
2005 actual: 94%; 
2006 actual: 94%; 
2007 actual: 94%; 
2008 target: 94%; 
2009 target: 94%. 

Performance measure: Retention rate: Staff development; 
2004 actual: 70%; 
2005 actual: 72%; 
2006 actual: 76%; 
2007 actual: 76%; 
2008 target: 76%; 
2009 target: 76%. 

Performance measure: Retention rate: Staff utilization[D]; 
2004 actual: 72%; 
2005 actual: 75%; 
2006 actual: 75%; 
2007 actual: 73%; 
2008 target: 75%[E]; 
2009 target: 75%. 

Performance measure: Retention rate: Leadership; 
2004 actual: 79%; 
2005 actual: 80%; 
2006 actual: 79%; 
2007 actual: 79%; 
2008 target: 80%; 
2009 target: 80%. 

Performance measure: Retention rate: Organizational climate; 
2004 actual: 74%; 
2005 actual: 76%; 
2006 actual: 73%; 
2007 actual: 74%; 
2008 target: 75%[F]; 
2009 target: 75%. 

Performance measure: Retention rate: Internal Operations; 
2004 actual: [Empty]; 
2005 actual: [Empty]; 
2006 actual: [Empty]; 
2007 actual: [Empty]; 
2008 target: [Empty]; 
2009 target: [Empty]. 

Performance measure: Retention rate: Help get job done; 
2004 actual: 4.01; 
2005 actual: 4.10; 
2006 actual: 4.10; 
2007 actual: 4.05; 
2008 target: 4.00; 
2009 target: 4.0. 

Performance measure: Retention rate: Quality of work life; 
2004 actual: 3.96; 
2005 actual: 3.98; 
2006 actual: 4.00; 
2007 actual: 3.98; 
2008 target: 4.00; 
2009 target: 4.0. 

Source: GAO. 

[A] Our fiscal year 2008 target for financial benefits differs from the 
target we reported for this measure in our fiscal year 2008 performance 
budget in January 2007. Specifically, we decreased our financial 
benefits target by $1.5 billon based on (1) our assessment of our past 
recommendations that are likely to be implemented by federal agencies 
and the Congress in the coming fiscal year and (2) the impact that our 
budget could have on the work that leads to financial benefits. 

[B] Since fiscal year 2004 we have collected data from our client 
feedback survey on the quality and timeliness of our products, and in 
fiscal year 2006 we began to use the independent feedback from this 
survey as a basis for determining our timeliness. 

[C] N/A indicates that the data are not available yet or are not 
applicable because we did not collect the data during this period. 

[D] Our employee feedback survey asks staff how often the following 
occurred in the last 12 months (1) my job made good use of my skills, 
(2) GAO provided me with opportunities to do challenging work, and (3) 
in general, I was utilized effectively. 

[E] Our fiscal year 2008 target for staff utilization differs from the 
target we reported for this measure in our fiscal year 2008 performance 
budget in January 2007. We lowered the staff utilization target by 3 
percentage points because we determined that based on our past 
performance, the target was unrealistic, and we reset it at a level 
that is still challenging but more likely to be achieved. 

[F] Our fiscal year 2008 target for organizational climate differs from 
the target we reported for this measure in our fiscal year 2008 
performance budget in January 2007. We decreased the organizational 
climate target by a percentage point because we determined that based 
on our past performance, the target was unrealistic, and we reset it at 
a level that is still challenging but more likely to be achieved. 

[End of table] 

[End of section] 

Footnotes: 

[1] An overview of GAO's strategic plan for serving the Congress is 
included as appendix I. 

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