# Presentation: 731381

## Federal Budget: 

 Opportunities for Oversight and Improved Use of Taxpayer Funds

David M. Walker
House Budget Committee
June 18, 2003

-  Opportunities for Oversight and Improved Use of Taxpayer Funds
- David M. Walker
- House Budget Committee
- June 18, 2003

## Composition of Federal Spending

- Note:  Includes $41 billion in discretionary spending and about $1 billion in mandatory spending for the Iraq war supplemental.  Includes $11 billion in mandatory spending for the 2003 tax cut package.
- Source: GAO analysis of data from the* *Congressional Budget Office.

## Examples of Other Entitlements, Mandatories & Direct Spending

- Crop insurance
- Commodity Credit Corporation
- Food stamps
- Child Nutrition
- Federal Military & Civilian retirement
- Federal Unemployment benefits

- Social Services Block Grant [entitlement to the states]
- Vaccine injury compensation
- Veterans pension &  compensation
- Payments to states from forest service receipts

## Talk about 3 levels of review

- Addressing Vulnerabilities to Fraud, Waste, Abuse & Mismanagement
- Improving Economy, Efficiency & Effectiveness
- Reassessing what government does:  fundamental re-examination of programs, policies, activities & processes

## Addressing Vulnerabilities to Fraud Waste, Abuse & Mismanagement

## GAO’sHigh RiskList

**GAO’s****High Risk****List**

**High Risk Areas**

**Year Designated High Risk**

**Addressing Challenges in Broad-based Transformations**
- Protecting Information Systems Supporting the Federal Government and The Nation’s Critical Infrastructures
- Strategic Human Capital Management*
- U.S. Postal Service Transformation Efforts and Long-Term Outlook*
- Implementing and Transforming the New Department of Homeland Security
- Modernizing Federal Disability Programs *
- Federal Real Property *
**Ensuring Major Technology Investments Improve Services**
- FAA Air Traffic Control Modernization
- IRS Business Systems Modernization
- DOD Systems Modernization
**Providing Basic Financial Accountability**
- DOD Financial Management
- IRS Financial Management
- Forest Service Financial Management
- FAA Financial Management
**Reducing Inordinate Program Management Risks**
- Medicare*
- Collection of Unpaid Taxes
- DOD Inventory Management
- Student Financial Aid Programs
- HUD Single-Family Mortgage Insurance and Rental Assistance Programs
- Earned Income Credit Noncompliance
- DOD Support Infrastructure Management
- Medicaid Program *
**Managing Large Procurement Operations More Efficiently**
- DOD Weapon Systems Acquisition
- Department of Energy Contract Management
- NASA Contract Management
- DOD Contract Management

**1997**
**2001**
**2001**
**2003**
**2003**
**2003**
**1995**
**1995**
**1995**
**1995**
**1995**
**1999**
**1999**
**1990**
**1990**
**1990**
**1990**
**1994**
**1995**
**1997**
**2003**
**1990**
**1990**
**1990**
**1992**

- * Additional authorizing legislation is likely to be required as one element of addressing this high-risk area.

## Improving Economy, Efficiency & Effectiveness

- Key Questions for Program Oversight

## Key Questions

- Is the program targeted appropriately?
- Does it duplicate or even work at cross-purposes with related programs & tools?
- Is it financially sustainable? Are there opportunities for instituting appropriate cost sharing & recovery from nonfederal parties including private entities that benefit from federal activities?
- Can efficiency be increased through reengineering or streamlining processes or restructuring organizational roles & responsibilities?
- Are there clear goals, measures & data with which to track progress, benefits & costs?

## Fundamental Reassessment

- What does the government do?
- How does the government do business?
- Who does the government’s business?

## Relative Reliance on Tools in the Education & Labor Budget Function (FY 2000),

- Note:  Includes $41 billion in discretionary spending and about $1 billion in mandatory spending for the Iraq war supplemental.  Includes $11 billion in mandatory spending for the 2003 tax cut package.
- Source: GAO analysis of data from the* *Congressional Budget Office.

## Relative Reliance on Policy Tools in theHealth Care Budget Functions (FY2000)

- Note:  Loan Guarantees account for about $5 million, or about .001 percent, of the approximately $447 billion in total federal health care resources.
- Source:  *Budget of the United states Government, FY 2002, *Office of Management and Budget.