Fiscal Year 2015 Budget Request: U.S. Government Accountability Office
Published: 2014-03-05T00:00:00

Fast Facts:

Highlights:
section_title: What GAO Found
paragraphs: GAO's fiscal year (FY) 2015 budget request of $525.1 million seeks an increase of 3.9 percent to maintain staff capacity as well as continue necessary maintenance and improvements to our information technology (IT) and building infrastructure. Additionally, receipts and reimbursements, primarily from program and financial audits, and rental income, totaling $30.9 million are expected in FY 2015.
GAO recently issued our draft Strategic Plan for Serving Congress in FYs 2014-2019. The plan outlines our proposed goals and strategies for supporting Congress's top priority. I also have met with the Chairs and Ranking Members of many of the standing committees and their subcommittees to hear firsthand feedback on our performance, as well as prioritize requests for our services to maximize the return on investment.
In order to address Congressional priorities, and fulfill GAO's mission, a talented, diverse, high-performing, knowledgeable workforce is essential. Workforce and succession planning remain a priority for GAO. A significant proportion of our employees are currently retirement eligible, including 34 percent of our executive leadership and 21 percent of our supervisory analysts.
In 2014, through a targeted recruiting strategy to address critical skills gaps, GAO plans to boost our employment level for the first time in 3 years to 2,945 Full Time Equivalents (FTE). The requested FY 2015 funding level will preserve strides planned for FY 2014 to increase our staff capacity. In conjunction with the ongoing recruiting efforts and planning, we will revive our intern program and hire and train an increased number of entry level employees. This will reverse the downward staffing trajectory, develop a talented cadre of analyst and leaders for the future, achieve progress in reaching an optimal FTE level of 3,250 FTE, and assist GAO in meeting the high priority needs of Congress.
We also take great pride in reporting that we continue to be recognized as an employer of choice, and have been consistently ranked near the top on "best places to work" lists.
Improvements to our aging IT infrastructure will allow GAO to further streamline business operations, increase staff efficiency and productivity, as well as improve access to information. Planned investments in IT will address deferred upgrades and enhance our technology infrastructure to support an array of engagement management, human capital, and financial management systems.
We also plan to continue upgrading aging building systems to ensure more efficient operations and security. Areas of focus include, increasing the energy efficiency and reliability of the heating, ventilation, and air conditioning system; enhancing continuity planning and emergency preparedness capabilities; and addressing bomb blast impact mitigation efforts.

section_title: Letter
paragraphs: On behalf of the U.S. Government Accountability Office (GAO), I  appreciate the opportunity to discuss our fiscal year (FY) 2015 budget  request. I also want to thank the subcommittee for its continued support  of GAO and the confidence you have shown in our efforts to help support  the Congress.
With Congress’s support, our FY 2014 funding will allow GAO to increase  its staff capacity to 2,945 full-time equivalents (FTE). This level reverses a  downward FTE trajectory and allows us to make progress towards our  optimal FTE level of 3,250.
GAO’s FY 2015 budget request of $525.1 million represents an increase  of 3.9 percent that will preserve the 2,945 FTE level planned for FY 2014,  as well as allow for needed maintenance and improvements to our  information technology (IT) and building infrastructures. This will ensure  we have the staff capacity to support Congress in carrying out its  responsibilities and oversight.
subsections: section_title: Assisting Congress and the Nation
paragraphs: GAO remains one of the best investments in the federal government, and  our dedicated staff continues to deliver high quality results. In FY 2013  alone, GAO provided services that spanned the broad range of federal  programs and activities. We received requests for our work from 95  percent of the standing committees of Congress and almost two-thirds of  their subcommittees. We reviewed a wide range of government programs  and operations including those that are at high risk for fraud, waste,  abuse, and mismanagement. GAO also reviewed agencies’ budgets as  requested to help support congressional decision-making.
Last year, our work yielded significant results across the government,  including $51.5 billion in financial benefits—a return of about $100 for  every dollar invested in GAO. Also, in FY 2013, we issued 709 reports  and made 1,430 new recommendations. The findings of our work were  often cited in House and Senate deliberations and committee reports to  support congressional action, including improving federal programs on  our High Risk list; addressing overlap, duplication, and fragmentation; and  assessing defense, border security and immigration issues. Our findings  also supported the Bipartisan Budget Act of 2013, in areas such as  aviation security fees, unemployment insurance, improper payments to  inmates, the strategic petroleum reserve, and the contractor  compensation cap.
Senior GAO officials also provided testimony 114 times before 60  Committees or Subcommittees on a wide range of issues that touched  virtually all major federal agencies. A list of selected topics addressed is  included in Appendix I.
subsections: section_title: Financial Benefits
paragraphs: GAO’s findings and recommendations produce measurable financial  benefits through Congressional action or agency implementation.  Examples of FY 2013 financial benefits resulting from congressional or  federal agency implementation of GAO recommendations include: $8.7 billion from reducing procurement quantities of the Joint  Strike Fighter Program: DOD decreased near-term procurement  quantities in three successive budget submissions to lessen  concurrency and the associated cost risks in light of our numerous  recommendations citing the F-35 Joint Strike Fighter program’s very  aggressive and risky acquisition strategy, including substantial overlap  among development, testing, and production activities. $2.6 billion from revising the approach for the Navy’s Next  Generation Enterprise Network (NGEN) Acquisition: Our  recommendations led Navy to revise its NGEN acquisition strategy— which was riskier and potentially costlier than other alternatives  identified due to a higher number of contractual relationships—thus  significantly reducing program costs between 2013 and 2017. $2.5 billion from eliminating seller-funded payment assistance  for FHA-insured mortgages: The Department of Housing and Urban  Development and Congress took steps to prohibit seller-funded down  payment assistance, citing our findings that losses associated with  those loans had substantially higher delinquency and insurance claim  rates than similar loans without such assistance, and were  contributing to the Federal Housing Administration’s deteriorating  financial performance. $2.3 billion from consolidating U.S. Forces stationed in Europe:  DOD removed two brigade combat teams and support units from  Europe, allowing it to further consolidate and close facilities, based in  part on our work showing significant costs related to maintaining  permanent Army forces in Europe and our recommendations that  DOD identify alternatives that might lead to savings. $1.3 billion through improved tax compliance: Our  recommendations on the use of information reporting to reduce the  tax gap contributed to legislation requiring banks and others to report  income that merchants receive through credit cards, third-party  networks, and other means to help IRS verify information reported on  merchants’ income tax returns. The estimated increased revenue  through improved tax compliance is expected over the provision’s first  3 fiscal years.
GAO has generated recommendations that save resources, increase  government revenue, improve the accountability, operations, and services  of government agencies, increase the effectiveness of federal spending  as well as provide other benefits. Since FY 2003, GAO’s work has  resulted in substantial financial and other benefits for the American  people, including: over ½ trillion dollars in financial benefits; about 14,500 program and operational benefits that helped to change  laws, improve public services, and promote sound management  throughout government; and about 12,000 reports, testimony, and other GAO products that  included over 22,000 recommendations.
section_title: Program and Operational Benefits
paragraphs: In FY 2013, GAO also contributed to 1,314 program and operational  benefits that helped to change laws, improve public services, and  promote sound management throughout government. Thirty six percent of  these benefits are related to business process and management, 31  percent are related to public safety and security, 17 percent are related to  program efficiency and effectiveness, 8 percent are related to acquisition  and contract management, 5 percent are related to public insurance and  benefits, and 3 percent are related to tax law administration. Examples  include: enhancing coordination between DOD and the Social Security  Administration (SSA) on the more timely delivery of military medical  records through electronic transfer;  improving Veterans Affairs (VA) oversight of its medical equipment  and supply purchasing;  increasing collaboration between the Army and Veterans Affairs  through a joint working group to improve management of military  cemeteries and help eliminate burial errors and other past problems; updating Federal Emergency Management Administration (FEMA)
National Flood Insurance Program contract monitoring policies to  reduce the likelihood that contractor performance problems would go  unnoticed; and establishing National Oceanic and Atmospheric Administration  policies outlining the processes, roles and responsibilities for  transitioning tsunami research into operations at tsunami warning  centers.
section_title: Overlap, Duplication, and Fragmentation
paragraphs: In FY 2013 GAO issued its third annual report on overlap, duplication,  and fragmentation. In it, we identified 31 new areas where agencies may  be able to achieve greater efficiency or effectiveness. Within these 31  areas, we identified 81 actions that the executive branch and Congress  could take to reduce fragmentation, overlap, and duplication, as well as  other cost savings and revenue enhancement opportunities. This work  identifies opportunities for the federal government to save billions of  dollars.
We also maintain a scorecard and action tracker on our external website  where Congress, federal agencies, and the public can monitor progress in  addressing our findings. Federal agencies and Congress have made  some progress in addressing the 131 areas we identified and taking the  300 actions that we recommended in our 2011 and 2012 reports.
section_title: High Risk Programs
paragraphs: In February 2013 GAO issued the biennial update of our High Risk report,  which focuses attention on government operations that are at high risk of  fraud, waste, abuse, and mismanagement, or need transformation to  address economy, efficiency, or effectiveness challenges. This report,  which will be updated in 2015, offers solutions to 30 identified high-risk  problems and the potential to save billions of dollars, improve service to  the public, and strengthen the performance and accountability of the U.S.  government. Our 2013 High Risk work produced 164 reports, 35  testimonies, $17 billion in financial benefits, and 411 program and  operational benefits.
The major cross-cutting High Risk program areas identified as of  September 2013 range from transforming DOD program management  and managing federal contracting more effectively, to assessing the  efficiency and effectiveness of tax law administration and modernizing  and safeguarding insurance and benefit programs.
The complete list of high-risk areas is shown on Appendix II. Details on  each high risk area can be found at http://www.gao.gov/highrisk/overview.
section_title: Electronic Protest Docketing System
paragraphs: GAO’s FY 2014 budget request sought statutory authority for a new  electronic docketing system to be funded by a filing fee collected from  companies filing bid protests. The sole purpose of the filing fee would be  to offset the cost of developing, implementing, and maintaining the  system. We appreciate that the Consolidated Appropriations Act, 2014,  directed GAO to develop an electronic filing and document dissemination  system under which persons may electronically file bid protests and  documents may be electronically disseminated to the parties. GAO is  making progress in establishing the electronic protest docketing system.  We have convened an interdisciplinary team of experts within GAO to  examine matters such as technical requirements, the potential for  commercially available systems, fee structure, cost-benefit analysis, and  outreach to stakeholders, including representatives from the small  business community. GAO will be reporting regularly to the House and  Senate Committees on Appropriations on its progress in implementing the  system.
section_title: Watchdog Website
paragraphs: In September 2013, GAO launched the Watchdog website, which  provides information exclusively to Members and congressional staff  through the House and Senate intranets. The new site is designed to  provide a more interactive interface for Members and their staff to request  our assistance and to access our ongoing work. In addition, Watchdog  can help users quickly find GAO’s issued reports and legal decisions as  well as key contact information.
section_title: Strategic Plan for Serving Congress
paragraphs: In December 2013, Members and their staff were invited to comment on  our draft Strategic Plan for Serving Congress in FYs 2014-2019. The draft  plan was issued in February 2014 and outlines our proposed goals and  strategies for supporting Congress’s top priorities. Our strategic plan  framework (Appendix III) summarizes the global trends, as well as the  strategic goals and objectives that guide our work. GAO’s strategic goals  and objectives are shown in Figure 1.
The draft strategic plan also summarizes the trends shaping the United  States and its place in the world. The plan reflects the areas of work we  plan to undertake, including science and technology, weapons systems,  the environment, and energy. We also will increase collaboration with  other national audit offices to get a better handle on global issues that  directly affect the United States, including international financial markets;  food safety; and medical and pharmaceutical products. These trends  include:
U.S. National Security Interests;
Fiscal Sustainability and Challenges;
Global Interdependence and Multinational Cooperation;
Science and Technology;
Communication Networks and Information Technology;
Shifting Roles in Governance and Government; and
Demographic and Societal Changes.
In the upcoming decade, for example, the US will face demographic  changes that will have significant fiscal impacts both on the federal  budget and the economy. The number of baby boomers turning 65 is  projected to grow from an average of about 7,600 per day in 2011, to  more than 11,600 per day in 2025, driving spending for major health and  retirement programs.
To ensure the updated strategic plan reflects the needs of Congress and  the nation, we have solicited comments from stakeholders in addition to  Congress, including GAO advisory entities, the Congressional Budget  Office, and the Congressional Research Service.
section_title: Managing Workload by Focusing Resources on Congressional Priorities
paragraphs: To manage our congressional workload, we continue to take steps to  ensure our work supports congressional legislative and oversight  priorities and focuses on areas where there is the greatest potential for  results such as cost savings and improved government performance.  Ways that we actively work with congressional committees in advance of   include 1) identifying mandates real time as bills  new statutory mandatesare introduced; 2) participating in ongoing discussions with congressional  staff; and 3) collaborating to ensure that the work is properly scoped and  is consistent with the committee’s highest priorities.
In FY 2013, 35 percent of our audit resources were devoted to mandates  and 61 percent to congressional requests. I have met with the chairs and  ranking members of many of the standing committees and their  subcommittees to hear firsthand feedback on our performance, as well as  highlight the need to prioritize requests for our services to maximize the  return on investment.
subsections: section_title: Repeal or Revision of Mandates
paragraphs: GAO also appreciates Congress’s assistance in repealing or revising  statutory mandates that are either outdated or need to be revised. This  helps streamline GAO’s workload and ensure we are better able to meet  current congressional priorities. During the second session of the 112th  Congress, based on our input, 16 of GAO’s mandated reporting  requirements were revised or repealed because over time they had lost  relevance or usefulness. In addition, GAO worked with responsible  committees to have 6 more mandates repealed or revised as part of the  2014 National Defense Authorization Act.
GAO has identified 11 additional mandates for revision or repeal and is  currently working with the appropriate committees to implement these  changes. For example, our request includes language to repeal a  requirement for GAO to conduct bimonthly reviews of state and local use  of Recovery Act funds. As the vast majority of Recovery Act funds have  been spent, GAO’s reviews in this area are providing diminishing returns  for Congress.
section_title: Promoting Good Governance and Accountability
paragraphs: GAO is seeking authority to establish a Center for Audit Excellence to  improve domestic and international auditing capabilities. The Center also  will provide an important tool for promoting good governance,  transparency and accountability. There is a worldwide demand for an  organization with GAO’s expertise and stature to assume a greater  leadership role in developing institutional capacity in other audit offices  and provide training and technical assistance throughout the domestic  and international auditing communities. The proposed Center would  operate on a fee-basis, generating revenue to sustain its ongoing  operation, including the cost of personnel and instructors. The Center  would be primarily staffed with retired GAO and other auditors, and thus,  would not detract from or impact the service GAO provides to Congress.
In a similar vein, to provide staff from other federal agencies with  developmental experiences, GAO is requesting authority to accept staff  from other agencies on a non-reimbursable basis, who can learn about  GAO’s work. This would allow people to develop expertise and gain  experience that will enhance their work at their own agencies.
section_title: GAO Recognized as One of the “Best Places to Work”
paragraphs: We take great pride in reporting that we continue to be recognized as an  employer of choice, and have been consistently ranked near the top on  “best places to work” lists. In 2013, we ranked third overall among mid- sized federal agencies on the Partnership for Public Service’s “Best  Places to Work” list, and again ranked number one in our support of  diversity. Also, in November 2013, Washingtonian Magazine named us as  one of the “50 Great Places to Work” in the Washington, D.C. region  among public or private entities.
In addition, earlier this year, O.C. Tanner, a company that develops  employee recognition programs, cited us in its article, “Top 10 Coolest  Companies to Work for in Washington, D.C.” Our management continues  to work with our union (IFPTE, Local 1921), the Employee Advisory  Council, and the Diversity Advisory Council to make GAO a preferred  place to work.
section_title: Fiscal Year 2015 Requirements
paragraphs: GAO’s FY 2015 budget request will preserve staff capacity and continue  critical infrastructure investments. Offsetting receipts and reimbursements  primarily from program and financial audits and rental income totaling  $30.9 million are expected in FY 2015. The requested resources provide  the funds necessary to ensure that GAO can meet the highest priority  needs of Congress and produce results to help the federal government  deal effectively with its serious fiscal and other challenges. A summary of  GAO’s appropriations for our FY 2010 baseline and FYs 2013 to 2015 is  shown in Figure 2.
subsections: section_title: Staff Capacity
paragraphs: The requested funding supports a staffing level of 2,945 FTEs, and  provides funding for mandatory pay costs, staff recognition and benefits  programs, and activities to support congressional engagements and  operations. These funds are essential to ensure GAO can address  succession planning challenges, provide staff meaningful benefits and  appropriate resources, and compete with other agencies, nonprofit  institutions, and private firms who offer these benefits to the talent GAO  seeks.
In order to address the priorities of Congress, GAO needs a talented,  diverse, high-performing, knowledgeable workforce. However, a  significant proportion of our employees are currently retirement eligible,  including 34 percent of our executive leadership and 21 percent of our  supervisory analysts. Therefore, workforce and succession planning  remain a priority for GAO.
Moreover, for the first time in several years our budget allows us to  replenish the much needed pipeline of entry level and experienced  analysts to meet future workload challenges. In FY 2014, through a  targeted recruiting GAO plans to hire entry-level staff and student interns,  boosting our staff capacity for the first time in 3 years to 2,945 FTE. This  will allow GAO to reverse the downward trend in our FTEs and achieve  some progress in reaching our optimal staffing level of 3,250 FTE, and  develop a talent pool for the future.
Our FY 2015 budget request seeks funding to maintain the 2,945 FTE  level. In FY 2015, pending final OPM guidance, we also plan to  implement a phased retirement program to incentivize potential retirement  eligible staff to remain with GAO and assist in mentoring and sharing  knowledge with staff.
section_title: Improving Internal Operations
paragraphs: Efforts to address challenges related to GAO’s internal operations  primarily relate to our engagement efficiency, information technology and  building infrastructure needs.
To better serve Congress and the public, we expanded our presence in  digital and social media, releasing GAO iPhone and Android applications,  and launching streaming video web chats with the public. During the past  year, 7,600 additional people began receiving our reports and legal  decisions through our Twitter feed. More than 26,600 people now get our  reports, testimonies, and legal decisions daily on Twitter.
GAO remains focused on improving the efficiency of our engagements  through streamlining or standardizing processes without sacrificing  quality. In FYs 2012 and 2013, we continued our improvements in this  area. For example, with active involvement from GAO’s managing  directors, we identified changes to key steps and decision points in our  engagement process and now have a revised engagement process that  we began implementing on a pilot basis in January 2014. We also piloted  and revised a tool to help teams better estimate expected staff days  required for engagements. In FY 2014, we plan to implement a series of  process changes that will transform the management of engagements,  the use of resources, and message communication.
More Efficient Content Creation, Review, and Publication  GAO will strive to dramatically improve the efficiency of our content  creation and management processes by standardizing, automating, and  streamlining the currently cumbersome and manually intensive processes  for creating, fact-checking, and publishing GAO products. In FY 2014, we  plan to request proposals to acquire a technical solution and phase  implementation in FYs 2014 and 2015. The proposed system will  automate document routing and approvals, incorporate management and  quality assurance steps, and generate required documentation. To  ensure our message is available to both our clients and the public, the  proposed system capability will also enable GAO to routinely publish  content on GAO.gov, GAO’s mobile site, and various social media  platforms.
Greater Transparency of Engagement Information  To promote transparency, increase management capabilities, and reduce  duplicate data entry and costs, in FY 2014 GAO will begin implementing a  modernized, one-stop engagement management system. This system  automates key business rules and decision points, improves resource  management, eliminates rework, and provides increased visibility for all  participants. In FY 2015, we will retire legacy databases as the new  system becomes fully operational.
The FY 2015 budget also provides funds to maintain our information  technology (IT) systems, which are a critical element in our goal to  maintain efficient and effective business operations and to provide the  data needed to inform timely management decisions. Improvements to  our aging IT infrastructure will allow GAO to further streamline business  operations, reduce redundant efforts, increase staff efficiency and  productivity, improve access to information, and enhance our technology  infrastructure to support an array of engagement management, human  capital, and financial management systems.
GAO also plans to continue upgrading aging building systems to ensure  more efficient operations and security. To support these requirements our  FY 2015 budget request includes resources to: begin upgrading the heating, ventilation, and air conditioning system  to increase energy efficiency and reliability;  repair items identified in our long-range asset management plan, such  as the water heater, chiller plant, and cooling fans; enhance continuity planning and emergency preparedness address bomb blast impact mitigation efforts.
section_title: Concluding Remarks
paragraphs: In conclusion, GAO values the opportunity to provide Congress and the  nation with timely, insightful analysis. The FY 2015 budget requests the  resources to ensure that we can continue to address the highest priorities  of Congress.
Our request seeks an increase to maintain our staffing level and provide  employees with the appropriate resources and support needed to  effectively serve Congress. The funding level will also allow us to  continue efforts to promote operational efficiency, and begin addressing  long-deferred investments and maintenance.
This concludes my prepared statement. I appreciate, as always, your  continued support and careful consideration of our budget. I look forward  to discussing our FY 2015 request with you.
section_title: Appendix I: Selected Testimony Topics for FY 2013, by Strategic Goal
subsections: section_title: Goal 1:Address Current and Emerging Challenges to the Well-being and financial Security of the American People
section_title: • Water Infrastructure • Goal 2:Respond to Changing Security Threats and the Challenges of Global Interdependence
section_title: Appendix II: GAO’s 2013 High Risk List
subsections: section_title: Strengthening the Foundation for Efficiency and Effectiveness
paragraphs: Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks (new)
Management of Federal Oil and Gas Resources
Modernizing the U.S. Financial Regulatory System and Federal Role in Housing Finance
Restructuring the U.S. Postal Service to Achieve Sustainable Financial Viability  Funding the Nation’s Surface Transportation System  Strategic Human Capital Management
Managing Federal Real Property   Transforming DOD Program Management
DOD Approach to Business Transformation
DOD Business Systems Modernization
DOD Support Infrastructure Management
DOD Financial Management
DOD Supply Chain Management
DOD Weapon Systems Acquisition   Ensuring Public Safety and Security
Mitigating Gaps in Weather Satellite Data (new)
Appendix III: GAO’s Strategic Plan Framework This is a work of the U.S. government and is not subject to copyright protection in the  United States. The published product may be reproduced and distributed in its entirety  without further permission from GAO. However, because this work may contain  copyrighted images or other material, permission from the copyright holder may be  necessary if you wish to reproduce this material separately.