Preface 

-he ability of GA.) to help 

the Congress impro\ e govc’rrlmcnt operations depends on t ho 

evidence obtained, the objoc%vity of our work, and the quality 

and timeliness of our reports. 

GAUs greatest strength lies in 

the competence, dedication, and 

enthusiasm of its staff; their 

ability to go wherever necessary 

to obtain needed information; 

and their careful application 

of professional standards. 

‘I‘he ~mr-posc of Ihis bt;c,kl(xt is 

to I’oster~ a better ut~tie~~slallc~iil~ 

of how we c;irry oul 01lr rtlission. It sumrnarti(5 

what t ;A0 tlocs. 

how GAO ensures the quality of 

its work, 

how GAO communicatcbs the 

results of its work, and 

how to obtain GAO services. 

Vhat GAO Does 

7 

>upporting the Congress is 

AO’s fundamental responsibility. 

re do this by providing a variety 

F services-the most prominent of 

rhich are audits and evaluations 

#eviews) of federal programs and 

ztivities. With the increasing delands by the Congress on our 

flite resources, it is critical in 

bday’s environment that the 

ongress have a thorough underianding of how GAO conducts 

Mews. 

Many GAO reviews are made in 

:sponse to specific congressional 

:quests. We are required to do 

rork requested by committee 

hairmen, and, as a matter of pol7, we assign equal status to reuests from ranking minority memers. To the extent possible, GAO 

lso responds to individual memers’ requests, Other reviews are 

ritiated pursuant to standing comtitments to congressional commit- 

!es, and some reviews are specifitiy required by law. Finally, some 

!views are independently underken in accordance with our basic 

Ngislative responsibilities. 

GAO examines virtually every 

federal program, activity, and function. Coverage ranges from missiles 

to medicine, from inventory control 

to arms control, from outer space 

to inner city. 
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hajor Subject Areas 

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-.- -“_ 

Accounting ;-bnancial Institutions Information Management 

Agriculture i- lnancial Management International 

Defense Iiealth Procurement 

Energy -causing Taxes 

Environment income Security Transportation 

Types of Questions GAO 

Answers 

Are government programs being 

carried out in compliance with applicable laws and regulations, and 

are data furnished to the Congress 

on these programs accurate? 

Do opportunities exist to 

eliminate waste and inefficient use 

of public funds? 

Are funds being spent legally, and 

is accounting for them accurate? 

Are programs achieving desired 

results, or are changes needed 

in government policies or 

management? 

Are there better ways of 

accomplishing the programs’ 

objectives at lower costs? 

What emerging or key issues 

should the Congress consider? 

Multidisciplined Staff Go 

Wherever Necessary 

The ability to review practically 

any government function or program requires a multidisciplined 

staff able to conduct assignments 

throughout the world. 

GAO’s staff have expertise in a variety of disciplines-accounting, 

law, public administration, the social and physical sciences, economics, and others. 

Many staff members have advanced degrees, including doctoral 

degrees, and are professionally certified and licensed. They keep up 

with current developments as members of professional societies, and 

many contribute to professional 

journals. 

4 
GAO in organized $(I that staff 

members concentrate: or specific 

subject areas, enabling them to de 

velop a detailed level of knowledge. 

(See “Major Subject Areas.” A complete list is included on t,he back 

cover.) When an assignnrent requires specialized experience unavailable within GAO, outside experts are called in to assist the 

permanent staff. 

About half of GAO’s 5,000 staff 

members are located in regional 

and overseas olftces, and the other 

half are at headquartthrs, On ke) assignments, the;: go wherever necessary, working on-site to gather data, 

test transactiorIs, and observe lirsthand how federal programs and activities are carried out. Our work 

generally takes us to locations in all 

50 states and many foreign 

countries. 

GAO’s Basic Authority 

GAO was created by the Budget 

and Accounting Act of 1921, which 

provides, in part, that 

“The Comptroller General shall investigate, at the seat of government 

or elsewhere, all matters relating to 

the receipt, disbursement, and application of public funds. . . .” 

Since then a variety of legislation 

has expanded GAO’s responsibilities for providing audit and evaluation services to the Congress. 

5 

hsuring Quality Work 

&ur goal is to meet the 

Leeds of the Congress by furlishing audit and evaluation 

;ervices that are useful, objecive, accurate, and available 

vhen needed. We pursue this 

;oal through open and frequent 

:ommunication with congreslional requesters and their staffs 

md by following rigorous profeslional standards. 

Trequent Communication 

Good communication between 

;A0 and the Congress is imporant on all assignments. Commuiication is also essential to en- 

*ure that our long-range plans 

ecus on issues of greatest interst to the Congress. 

Before starting a specific conressional request assignment, 

iA0 staff generally meet with 

he requester to discuss the 

ssignment’s objectives; its feasibility given the availability of 

taff, the extent, or scope, of 

he work needed; the date when 

vork results are desired; and the 

ype of final product that is 

nost appropriate. 

Assignment objectives. We 

work closely with requesters to 

ensure that our assignment 

objectives adequately address the 

requesters’ concerns. We also help 

frame the request so that the 

assignment can be done in 

accordance with GAO standards. 

This enhances the credibility of 

the assignment and its usefulness 

to the requester. 

Scope. We may propose 

alternative schedules and 

methods of doing a proposed 

assignment to ensure that we use 

our resources effectively in 

meeting the requester’s needs. 
-.--. ._-. -----.- 

hwfingx. test,moxq ,tni; wrlttc>rl 

rc.tporis. Wrilt ‘11 tc~~rcuk- baIy in formatJ and cont4 lnt I lq~~~~ling on the 

complexity oi thts assigrun~~nt. 

If agreclment s rt+;u.hed during 

wrly discussions dill’cr substantially from thlh original rthquest, 

GAO often confirms c’hanges in 

writing to ensure a muhal understanding about the assignment. 

Sometimes, agreements need to 

be altered as an assignment 

progresses. For example, the 

requester’s needs may change, the 

required data may be unavailable or 

unobtainable in the time allowed, 

or the methodology may need to be 

changed. In these cases, GAO 

works with the requester to revise 

the assignment. 

Early communication with the 

requester also is important because: 

Similar or duplicate requests 

may be received. We try to consolidate the assignments and 

provide copies of the report to 

each requester. 

An ongoing review may 

address (or may be revised to 

address) the requester’s concerns. GAO works with the 

requester to ensure a satisfactory and prompt response. 

A recently completed review may 

adequately address the requester’s 

concerns and make starting a new 

assignment unnecessary. 
GAO may not be the most :ipprj,- 

priat e agency to perform the a+ 

signment. In those CXWS, we will 

suggest referring the assignment 10 

the Congressional Budget Office. 

the Congressional Research Service, or the Office of Technology 

Assessment (our sister legislative 

agencies); to the Inspector General 

of a particular agency; or to the 

agency itself. GAO remains available to help the requester if the information provided does not meet 

the requesters needs. 

GAO strives to use its budget and 

staff resources effectively. On occasion, the resources required by congressional requests exceed the supply of talent available within GAO. 

Also, in some cases, the GAO staff 

most knowledgeable of a request’s 

subject matter are engaged in other 

assignments and are not immediately available. In either case, we 

will do everything possible to rest)ond lo the new c~orrgrc~sional request, E~owccer, 11 may lw necessary 

t.c Idelay starting hom(’ requests. In 

those cases, (;A( 1 srcbks the requesters’ help in setting priorities. 

Occasionally, GAI 1 may be unable 

t,o respond to a request in a timely 

fashion and may ask t.hat it be 

withdrawn. 

In addition to communicating 

on specific assignments, we consult closely with the Congress in 

developing our long-range plans. 

These plans identify potential 

review areas. They focus resources on the most important 

national issues and ensure that 

GAO’s work will be consistent 

with present and future congressional needs. Finished plans are 

discussed with, and available to, 

the Congress. 

_. _- . . . -.._-.. ..- I-.... 
Professional Standards: 

Key to Reliable. Products 

GAO’s comrrlitmc~r~t tr I quality 

means adhering to vor> demanding professiol~al standards. 

These standards require: that staff 

be qualified and not sut).jcc‘t to 

undue influences, that they 

carry out the assigmncnt in a 

professional manner, and that 

the work be of sufficient depth 

to answer the assignment’s 

objectives. The work must be 

soundly planned and supervised 

to ensure that sufficient, reliable, and competent evidence is 

developed. Reports based on this 

work must be timely, accurate, 

and objective and must present 

fairly the results of the work. 

Over the years, GAO has been 

in the forefront in developing 

professional standards for audits 

and evaluations. GAO’s prescribed 

standards are widely recognized 

and followed by federal, state, 

local, and many foreign government auditing organizations. 

Independence and evidence are 

two key factors in the reliability of 

GAO’s products. Obtaining agency 

rx)mment s serves as a final check 

f )n the c’( mplcteness of our 

product5 

Our goal is to 

provide 11sefu1 and credible 

analyses and information to the 

(Congress. To do this, it is important, that we @an, perform, and 

report the results of our work 

independently and objectively. 

Thus, GAO must have discretion 

in determining how and by whom 

the audit or evaluation work 

is to be performed as well as in 

deciding what is to be included in 

the report. 

During the review, we 

gather the evidence necessary to 

assess the issues in question. GAO 

collects, tests, and analyzes data to 

ensure that sufficient, competent, 

and relevant evidence supports the 

final product. Additional data and 

evidence obtained during an assignment may lead to a reassessment of 

prior evidence and/or GAO’s tentative position. Therefore, GAO prefers not to release evidence until 

the assignment is complete and all 

data and evidence are thoroughly 

evaluated. 

Prior to completing an assignment, a senior GAO manager usu10 
ally meets with responsiblc~ offic iaI+ 

of the organization whose prop 

gram,s or activities are to be addressed in a report to discuss thr: 

facts developed and the implications that flow from them. Such discussions are important. to ensurf’ 

the correctness and completeness 

of the information to be reported. 

Before issuance, the final product 

and the evidence are independently 

reviewed within GAO to ensure that 

the evidence supports the report, 

the information is clearly and objectively presented, and any conclusions and recommendations are 

appropriate. 

Providing 

agencies and other adversely affected parties the opportunity to 

comment on a draft report can enhance the usefulness of the final report and provide added assurance 

that we are being as objective as 

possible. Obtaining written comments on a draft report is espe,- 

cially desirable when the issues involved are sensitive or controversial 

or when it includes a recommendation for action by the agency head 

or the Congress that is particularly 

wide-ranging. In some cases, however, the non-controversial nature of 

the issues in~L,olv~1, ~Ioq~t her with 

the discussions ht+i (luring our exit 

r~onfercnces may 4imirlate the need 

to obtain writlen c~onrn~ents. 

(;A0 will advise thta rcaquester 

when it believes the circumstances 

warrant the additional I ime required to obtain writ,ten comments 

and seek to reach advance agreement on the specific approach to 

be followed. GAO will also agree to 

send a copy of the draft to the 

requester when it is sent to the 

agency for comment. The recipients 

of draft reports are advised that 

these reports are not final and are 

subject to change. Accordingly, 

recipients are cautioned to avoid releasing draft reports prematurely. If 

due to urgency or other reasons, a 

congressional requester asks GAO 

to issue a report without getting 

written comments, we will generally comply, but note the circumstances in the final report. 

Providing Data 

Without Analysis 

Sometimes requesters ask us to 

provide information or documents 

obtained from an executive agency 

without further review or analysis. 

GAO encourages requesters to obtain such information or documents directly. 

11 

he effectiveness of our - 

products derives from their quality 

and the way requesters and agency 

officials use them to improve government operations. GAO offers a 

range of products to communicate 

the results of its work. The type of 

product resulting from a particular 

assignment depends on the assignment’s objectives and the requester’s needs. In selecting a type 

of product, trade-offs may be necessary in scope, detail, or time, 

Product Types 

Testimony. We testify frequently 

before congressional committees 

and subcommittees. The extent of 

detail we provide is tailored to the 

complexity of the subject, the time 

available for preparation, and the 

users’ needs. Usually, testimony on 

work already completed can be 

provided on short notice. 
14 

1 i 4i 1 ~~~urages Our final 

staff t,o keep r-equc~ (t ,rb advised written ])roducts vary in format, 

through pcriodir~ brlc*fi t ~gs during content, and compltlxity. They 

the course of a rwirw. lkcx~~se of are addressed to the Congress, a 

the inttrim nature (11’ briefings, re- requester, or an agency. 

questers are c.autionc:d that they are The reports range from a strict 

indicative of the status of our work statement of the facts to a 

at that time. detailed analysis of the data \ 

obtained, including any conclu- t 

B 

sions and recommendations. I 

4 

Regardless of the reporting format z 

selected, the work performed and E 

the resulting products meet 

I 

our quality tests. Moreover, any 

j 

deviations from standards are 

1 

i 

carefully disclosed in the report. 
Rupcxts on broadl> scoped assign-. 

ments generally contain eonclu 

sions and rt’commelldat.ions and 

are issued in either rhe chapter or 

letter format, depending on the 

amount of detailed information to 

he conveyed. The results of more 

narrowly scoped reviews can usw 

ally be issued more quickly as briefing reports, fact sheets, or, if appropriate , correspondence. 

15 
Our Products Made Public 

All of our unc*lassilit~d audit and 

evaluation reports arc’ a~dilable to 

the public. A few reports contain 

classifkd or otherwise sensitive information that must Iw restricted 

by law. ( ;A0 tries to issue an unrestricted version of the report or, at 

a minimum, an unrestricted executive summary. 

GAO will honor a requester’s desire to postpone releasing a report 

for up to 30 days. The report is 

made public automatically after 30 

days, or earlier if the requester publicly announces its contents. 

16 
If GAO learns that othtbr committees or rnember~~ have a need 

for information in an utrreleased 

report (such as for voting on 

pending legislation or hearings 

scheduled concerning the issues 

discussed), we will ask the initial requester to release the report to them. If the requester declines to release it, we will advise 

the other affected congressional 

parties of the report’s existence. 

Monthly and yearly listings of 

issued reports are available so 

that the Congress and the public 

can obtain reports of particular 

interest to them. 

Summary Reports 

Throughout I he year, (;A() issues 

several summary repl )rt.s about its 

work and activities. The Comptroller General’s Annual Report, for 

instance, provides the Congress and 

the public an overview of GAO’s activities in the preceding fiscal year 

It highlights GAO’s work on major 

national issues, summarizes our 

major issued reports, and identifies 

various contributions, including financial and other benefits resulting 

from GAO’s work. 

GAO also publishes a yearly 

report on recommendations that 

it has made but that, for various 

reasons, have not been adopted. 

17 

Additional Services 

,_“,,, , A0 provides many other serices in addition to its audits and 

valuations. They include establishng financial policies, conducting 

pecial investigations, providing 

egal assistance, participating in acivities to strengthen the skills and 

lbilities of audit/evaluation profesQonals, and providing staff support 

0 congressional committees. 

Pccounting and Financial 

Management policy 

GAO helps ensure that the ConFess has available for its use 

current, accurate, and complete 

inancial management data. The 

:omptroller General, together with 

he Secretary of the ‘Ikeasury and 

#he Director of the Office of Manlgement and Budget, prescribes ac- 

:ounting principles and standards 

‘or the executive branch. 

*C.-P a -.*. 

.%* it: 

Special Investigations 

In addition to its audit and 

evaluation capability, GAO has a 

staff of trained investigators. They 

conduct special investigations and 

assist auditors and evaluators who 

encounter possible criminal and 

civil misconduct. The work of this 

unit typically involves conflicts of 

interest, questions of ethics, or 

procurement and contract fraud. 

GAO is not a law enforcement 

agency. When warranted, it refers 

the results of its investigations to 

the Department of Justice and 

other law enforcement authorities. 
.---.. ..--.-- _ 

Legal Services 

1 M.> provides v lrious II &gal 

srhrvices to the (:~rngrt~+s In 

r(sponsc to inquiries from 

c:c)mmitl,ees and members, the 

L’omptroller Genctral provides 

advice on legal issues involving 

government programs and 

activities. We are also available to 

assist in drafting legislation and 

reviewing Iegislative proposals 

before the Congress. In addition, 

we review and report to the 

Congress on proposed rescissions 

or deferrals of government funds. 

Other services include resolving 

bid protests that challenge 

government contract awards, 

assisting government agencies in 

interpreting the laws governing 

the expenditure of public funds, 

and adjudicating claims for and 

against the government. 

Audit/Evaluation Support 

In addition to prescribing accounting and auditing standards, GAO 

issues implementing guidance, and 

GAO staff are involved in forums 

and professional meetings, both as 

participants and presenters. GAO 

encourages staff to participate in 

such activities. GAO also sponsors 

an international auditor fellowship 

program to help other nations 

develop effective audit/evaluation 

organizations. 

Committee Support 

Occasionally, GAO assigns staff 

for no more than I year to 

work directly for congressional 

committees. In these cases, the 

staff assigned represent the 

committee and not GAO. 

20 

*.- ongrc~s:~ior~al IX (11 I{*SI (‘rs ; UT ~~nc~~urageti 1~1 conlact GAO on 

an informal t);Lsls pril )r LO submitting a writtrkn rrqucst. GAO 

staff iire av,Gt)l( to c~)nsult wilh rcqucstcrs or their staffs and 

help them f r;ml(> clucst ions and issues and formulate strategies 

and approaches PATTI hefore a request letter is written. 

We f’ncouragt the continuation of close working relationships 

hctwccn recluc:sters or their staffs and GAO. Our Office of Congressional Relations (275-538X) can help requcstcrs identify an 

appropriate GAO point for contact. 7’0 formally request GAO 

assistance, writtl to: 

The Honorable Charles A. Bowsher 

Comptroller General of the llnited States 

441 G Street NW 

Washington, DC 205411 
- Accounting and Financial Management Division (275-9461) 

Divisions/ .------- 

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Revised 4/91