GAO assists the Congress in its legislative oversight of the executive branch. We see our mission as seeking to achieve honest, efficient management and full accountability throughout government. To accomplish this mission, we are prepared to follow the federal dollar wherever it goes and to evaluate the efficiency and effectiveness of federal programs. We serve the public interest by providing Members of the Congress and other policymakers with accurate information, unbiased analysis and objective

recommendations on how to best use public resources.

Both GAO and the Bureau of the Budget (now the Office of Management and Budget) were created in 1921, the outgrowth of efforts at that time to modernize federal budgeting and accounting practices after World War I. In return for creation of the Budget Bureau, which centralized the budget authority of the executive branch in the Office of the President, Congress insisted upon creation of GAO within the legislative branch to monitor and audit federal expenditures.

GAO has always existed to serve the needs of the Congress. At first, in an era of limited government, this involved simple auditing of vouchers to make certain that federal payments were correct. But just as Congress adapted to an increasingly complex

d as the decades passed, so AC changed to help

grapple with more difficult and complex issues.

GAO is a nonpartisan agency staffed with specialists in many disciplines--accountants, computer scientists, public administrators, business school graduates, engineers, statisticians, lawyers, actuaries, economists and others.

GAO's authorized staff level for the current fiscal year is 4,700, down from 5,325 employed by the agency in 1992. As I will discuss later in this statement, GAO is prepared to implement further reductions that would bring down our staff level to 3,975 in 1997. At that size, GAO would employ fewer workers than at any time since the late 1930s--and far below the 14,000 people employed by GAO during World War II.

At this year's authorized staff level of 4,700, GAO is about the same size as it was in 1963, when the federal budget was just approaching $100 billion for the first time. In comparison, the federal budget today is more than $1.5 trillion, a 15-fold increase, and many agencies audited by GAO have grown several times over since the early 1960s. GAO has worked hard to keep pace with the increasing demands placed upon it in those intervening years. By continually working to increase productivity, to take advantage of modern technology, and to improve the skills and expertise of its staff, GAO has been able to keep pace with the added

ements and r

to now faces as 三

the growth in size and complexity of the federal government.

And we are proud of the results of our efforts. Although total audit coverage has never been possible, we have contributed significantly over the years to saving billions of dollars for the American taxpayer. In 1994 alone, GAO contributed to legislative

and executive branch decisions and actions that resulted in more than $19 billion in measurable financial benefits. This means we returned $43 dollars in savings for every dollar appropriated.

FY1996 BUDGET REQUEST

The General Accounting Office is committed to being a model government agency of the future--smaller and at the same time achieving efficiencies through effective use of technology and quality management principles.

GAO began downsizing in 1992 when

It had a staff of about 5,325. we were able to offer retirement incentives in FY 1994 which resulted in the elimination of over 400 positions. This, combined with early out authority, a hiring freeze that has been in place since 1992, and a reduction in our field structure, has brought GAO to its lowest staffing level in a quarter of a century. Our FY1996 budget estimates were originally based on the assumption that we would continue to downsize to a level of 4,626. However, as a result of our discussions, Mr. Chairman, we have revised our

With the support of this committee,

estimates to support a

of 3,975 by 1997.

the agency

We believe that we can accomplish this reduction by maintaining our existing hiring freeze, offering additional early retirements, and consolidating and streamlining functions. This will result in a cumulative 25 percent reduction from the 1992 level. While these further staff cuts will necessitate reductions in some of our work, we will still be able to meet our core audit, evaluation, and investigatory responsibilities. In the final analysis, we believe GAO can demonstrate it is possible for federal agencies to absorb significant personnel reductions and at the same time still perform their assigned missions with some efficiency gains.

This plan will save millions of dollars. The recurring salary and benefit savings realized by a 25 percent staff reduction are nearly $130 million each fiscal year. In 1996 it will require a budget of $413 million for staff of 4,225, and in 1997 about $389 million for a staff of 3,975 plus whatever amount, if any, Congress mandates in the meantime for salary and benefit increases for federal employees. GAO's fiscal year 1995 budget, by contrast is $443 million.

GAO has already invested considerable resources in a number of state-of-the art technologies. It has installed voice mail

to a video conferencing network, which allows the agency to save tens of thousands of dollars in travel costs. GAO is now in the process of installing computer networks to allow rapid exchange of data without paper. The agency also plans to implement a fullscale program for computerized data collection and analysis, which will enable it to work more efficiently and with less staff. Complementing the technology program is GAO's facility modernization plan which stems from the need to remove miles of asbestos duct work in the agency's headquarters building. Completion of this effort will result in upgrading heating, air conditioning and electrical systems and will allow GAO to

consolidate its Washington staff in a modern, functional, and safer building, while saving millions of dollars in costs for leased

space.

If the agency is required to undergo too precipitous a drop In its budget and staff, our ability to meet our audit and investigatory responsibilities would be crippled and billions of dollars of financial benefits that flow from GAO's work each year might well be jeopardized.

If GAO's budget were to be cut by 25 percent in one year, wide-spread reductions-in-force would be required. This would seriously impair the agency's ability to provide essential audit coverage of federal programs and meet our statutory and other