HEALTH CARE REFORM: "REPORT CARDS" Report cards can be a useful tool to educate potential health care plan subscribers. Most experts believe that publishing cost and quality indicators and other information comparing performance of competing plans is a means of preserving the quality while lowering the cost of health care. The experts disagree, however, about the type and the amount of information to be published because the data sources and indicators may not be reliable or valid and may not reflect the needs of some users. (HEHS-94-219) INFORMATION SUPERHIGHWAY: ISSUES Competition in the long-distance telephone market has led to large investments in the long-distance infrastructure, which have provided the capacity likely to support the interstate portion of the information superhighway. Similar increases in the local infrastructure's capacity are needed to allow the services to reach homes, businesses, and schools but are expected to be more costly. Some upgrades have occurred through technological advances and emerging competition at the local level. Although Congress is considering legislation that would increase competition, which would accelerate investment in the local infrastructure, much of the debate has focused on how to protect consumers from anticompetitive behavior if it occurs during the transition to increased competition. (RCED-94-285) OVERVIEW OF This overview includes Ba description of GAO and its mission, a status report on some recent investments in productivity, Ja discussion of GAO's performance information, Ja review of quality control efforts and GAO's external Audit Advisory Ba commentary on GAO's financial resources and results of operations, Ba description of the scope of the audit of GAO's 1994 principal statements. Immediately following the overview are GAO's principal statements for fiscal years 1994 and 1993, GAO's Audit Advisory Committee's report, and the independent auditors' report. GAO AND ITS MISSION GAO assists Congress in its legislative oversight of the executive branch. Its resources. A commitment to quality is the single most important principle governing our work. GAO also highly values its people and the diversity and skills they bring to serve Congress and the public. GAO staff concentrate on specific issues that enable 89-838 98-9 them to become highly knowledgeable about the agencies and programs they audit. By maintaining expertise in key areas of interest, GAO can respond quickly and comprehensively to requests from Congress. About 77 percent of GAO's work during fiscal year 1994 was done at the specific request of Congress. GAO is required to do work requested by committee chairmen; as a matter of policy, GAO assigns equal status to requests from ranking minority members. To the extent possible, GAO also responds to requests from individual members. Finally, GAO undertakes assignments independently in accordance with its basic legislative responsibilities. GAO's work is managed through six divisions. The issues examined by GAO span the breadth of national concerns, including health care costs, national security, energy, the safety and soundness of financial institutions, protection of the environment, education, the space program, transportation, tax administration, income security, disaster assistance, financial management and accountability, and many others. While audits and evaluations are the most visible aspects of GAO's work and absorb the largest share of its resources, GAO has other important functions as well. GAO prescribes accounting standards for the entire federal government in conjunction with the Office of Management and Budget (OMB) and the Department of the Treasury, evaluates accounting systems and controls used by executive agencies, and issues generally accepted auditing standards for all levels of government and for independent public accountants that audit government entities. GAO also settles claims against the federal government when a settlement made by an executive agency is appealed. Finally, GAO issues legal decisions on matters involving government revenues and expenditures, such as protests against the award of federal ment contracts. govern DOWNSIZING AND CONSOLIDATION OF GAO OPERATIONS part to GAO understands the financial crisis our nation faces and has been doing its help the legislative branch reduce its size and control its costs. In fiscal year 1992, GAO implemented a plan, in close cooperation with its appropriations committees, to reduce the size of GAO. By the end of fiscal year 1994, GAO had already reduced its size by over 10 percent and is now at its lowest staff level since 1970. To manage this downsizing effectively, GAO imposed a hiring freeze in fiscal year 1992. GAO also sought and obtained the authority to offer separation incentive payments to staff that volunteered to retire from or leave GAO from October 1 through December 31, 1993. Over 400 staff members took advantage of this incentive plan and were paid $13.5 million. Using this systematic approach, GAO has reduced its size and at the same time avoided major disruptions to its operations. GAO has also reduced its field structure. When Congress directed GAO to review its field structure in 1994, GAO established an executive level steering committee to determine where GAO should locate its field staff to do future work. After reviewing information developed by the committee, GAO decided to close or consolidate the following field offices: The Boston and New York offices were consolidated into a single Northeast The Philadelphia and Albany offices were closed in August 1994. ■The Indianapolis office is scheduled to close in December 1994. ■The San Antonio, Oklahoma City, Albuquerque, and Honolulu offices are scheduled to close by mid-1995. ■The Cincinnati office is scheduled to close by mid-1996, with its Dayton suboffice remaining open. After completing these actions, GAO will have closed 20 of the 40 field offices it had in the early 1980s. INVESTMENTS TO IMPROVE PRODUCTIVITY In addition to its plans to further streamline its organizational structure, GAO continued to emphasize improvement of its operations. GAO increased staff effectiveness and organizational efficiency in the following ways: ■ Expanded a local area network pilot, both in headquarters and in the field, and began testing ways to use the network to streamline basic work processes, enhance capabilities, and improve overall productivity and efficiency in auditing and evaluating agencies' programs. ■Implemented a modern telecommunications system that includes voice messaging and videoconferencing capabilities to reduce travel costs and the time it takes to do GAO's work. Focused more intensively on improving work processes through a quality management program to identify more efficient ways to better serve GAO's customers. Changed GAO's travel advance system, reducing outstanding advances by 53 percent, and initiated a project to reimburse employees for travel expenses electronically. As a result, employees will be reimbursed more quickly, and the need for lengthy research of lost or stolen checks will be greatly reduced. ■Decentralized certain financial management functions to the field offices. ■Began implementing an Electronic Certification System to permit faster of invoices than is currently possible. payment ■Continued the removal of asbestos and the renovation of the 42-year-old GAO building, including the completion of the renovation of the fourth floor. PERFORMANCE INFORMATION GAO carefully monitors its performance, seeking to improve its services and efficiency. Several important performance measures are discussed earlier in this report, such as the measurable financial benefits resulting from GAO's work, the number of products produced, and the number of testimonies delivered. Additional GAO performance measures are addressed in a separate publication entitled 1994 Annual Report of Key Performance Indicators. GAO's ongoing quality management initiatives are expected to lead to further refinements and improvements in GAO's measurement system. Other publications provide summaries of GAO's work and the status of its recommendations, including Abstracts of Reports and Testimony: Fiscal Year 1994; Index of Reports and Testimony: Fiscal Year 1994; Supplement to the Comptroller General's 1994 Annual Report, which summarizes GAO staff assigned to congressional committees during fiscal year 1994; and the Annual Report to the Chairmen, House and Senate Committees on Appropriations, on the Status of Open Recommendations. QUALITY CONTROLS Quality is the hallmark of GAO's work. To ensure that GAO maintains a high level of quality, management maintains a quality control program and seeks advice and evaluation from outside sources. Through an internal review program, GAO ensures its quality control policies and procedures are providing reasonable assurance that its audit and evaluation work conforms with applicable professional requirements, including government auditing standards. The Comptroller General establishes auditing standards for all levels of government. The standards were updated in 1994 based on the advice of the Government Auditing Standards Advisory Council. GAO's Quality Control Review Board provides external perspectives and advice on the effectiveness of GAO's assessments of the quality of its audit and evaluation work. The Board meets periodically, confers with the Comptroller General, and provides advice on GAO's products and future work. The Board is comprised of the following distinguished individuals from outside GAO: ■Elliot L. Richardson (Chairman) is an attorney with Milbank, Tweed, Hadley & McCloy; former Secretary of Commerce, Defense, and Health, Education, and Welfare; former Attorney General; former Under Secretary of State; and former Ambassador-at-Large. |