	GAO’s Work Has Contributed to Significant Financial and Other Benefits, but Further Opportunities Exist to Save Money and Improve Government

Our work routinely leads to recommendations for improving efficiency and  effectiveness across the federal government’s programs, resulting in  measurable savings and improvements. Since fiscal year 2003, our work  has resulted in over ½ trillion dollars in financial benefits and about  17,000 program and operational benefits that helped to improve public  services and promote sound management throughout government. Management of the audited agencies has discretion on  whether to implement our recommendations, and executive branch  agencies have implemented an average of about 80 percent of our  recommendations, as reported in our performance and accountability  reports for fiscal years 2010 through 2015 (see table 1). Since fiscal year 2010, our work has resulted in over $330 billion in  financial benefits and over 8,000 program and operational benefits that  helped to change laws, improve public services, and promote sound  management throughout government. The following examples illustrate  the wide-ranging benefits from our work in several categories, including  (1) identifying cost savings and revenue opportunities to help to avoid  sequestration; (2) identifying legislative solutions; (3) achieving financial,  program, and operational benefits; (4) helping Congress oversee key  programs; (5) addressing high-risk areas; and (6) reducing fragmentation,  overlap, and duplication in government programs. For example, key decisions adopted by Congress in  the Bipartisan Budget Act of 2013 were linked to our work and helped  Congress achieve about $23 billion in savings and revenue  enhancements to avoid sequestration in fiscal years 2014 and 2015, such  as  improving the cost-effectiveness of filling the Strategic Petroleum  Reserve, estimated by the Congressional Budget Office (CBO) to  save $3.2 billion from 2014 to 2023;  increasing aviation security fees to cover 43 percent of aviation  security costs in 2014, estimated by CBO to save $12.6 billion from  2014 through 2023; expanding the risk-based element of the Pension Benefit Guaranty  Corporation’s premium rate structure, estimated by CBO to increase  revenues and offset direct spending by $7.9 billion from 2014 through  2023  limiting the amount of compensation contractors working on a federal  contract can charge to the government to $487,000 annually, a  decrease from the previous cap of $952,308;  and  improving the collection of unemployment insurance overpayment by  $159 million and reducing improper payments to inmates for disaster  relief and other assistance resulting in savings of $80 million from  2014 through 2023, according to CBO. Achieving Financial, Program, and Operational Benefits

In fiscal year 2015, our work yielded $74.7 billion in financial  accomplishments—a return of about $134 for every dollar invested in us. This progress has been possible  through the concerted actions and efforts of Congress and the leadership  and staff in executive branch agencies and the Office of Management and  Budget (OMB). Solving these high-risk problems has the potential to save billions of  dollars, improve service to the public, and strengthen the performance  and accountability of the U.S. government. As of November  12, 2015, about 4,800 of our recommendations to the executive branch  agencies and OMB remain open across the federal government. DOD’s portfolio of major defense acquisition programs, which has been  on our High-Risk List since 1990, consists of 78 programs with an  estimated cost of $1.4 trillion. Accordingly,  we recommended that DOD conduct a comprehensive affordability  analysis of the F-35 program’s procurement plan that reflects various  assumptions about future technical progress and funding availability. DOD agreed with our recommendation, although it maintains it  accomplishes this through its annual budget process. However,  without a more thorough analysis of possible future scenarios, DOD  may not be able to accurately account for the future technical and  funding uncertainty it faces, and thus may not fully understand the  affordability implications of increasing F-35 procurement funding at  the planned rates. For example, in January 2012, we recommended that the Centers’ for  Medicare & Medicaid Services (CMS) take steps to improve the accuracy  of the adjustment made for differences in diagnostic coding practices  between Medicare Advantage (MA) and Medicare Fee-For-Service. For  example, CMS could better account for additional beneficiary  characteristics, such as sex and residential location, and use more  current and refined data in determining MA payments. We made our  recommendation because we found that shortcomings in CMS’s  adjustment resulted in excess payments to MA plans totaling an  estimated $3.2 billion to $5.1 billion over a 3-year period from 2010  through 2012. GAO Uses Various Mechanisms to Encourage Implementation of Its Recommendations

We focus attention on following up on our recommendations to help  ensure that they are implemented effectively and in a timely manner. In addition to these processes, our high-risk and fragmentation, overlap,  and duplication work and efforts on priority recommendations highlight  critical unimplemented recommendations that we believe warrant  attention by agencies and Congress. We sent letters to the heads of key  departments and agencies identifying these high priority  recommendations and urging the agency head to continue to provide  attention to these issues. Working with Congress to address recommendations. These strategies include incorporating our  recommendations into legislation.
Why GAO Did This Study

GAO’s mission is to support Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the benefit of the American people. GAO provides nonpartisan, objective, and reliable information to Congress, executive branch agencies, and the public. To help Congress and the government, GAO recommends solutions across the broad spectrum of federal responsibilities to foster efficiency and effectiveness in federal programs and address high risks, management issues, and other challenges.
GAO’s work supports a broad range of interests throughout Congress. In fiscal year 2015, GAO received requests for work from 97 percent of the standing committees of Congress and 66 percent of their subcommittees.
Since fiscal year 2003, GAO’s work has resulted in over ½ trillion dollars in financial benefits and about 17,000 program and operational benefits that helped to improve public services and promote sound management throughout government. Executive branch cooperation and congressional oversight have been, and will continue to be, critical in helping realize the benefits of GAO’s recommendations.
This statement discusses (1) the status of GAO’s recommendations, including key outcomes and open issues and (2) mechanisms for focusing attention on implementing GAO’s open recommendations. It is based on GAO’s prior work spanning the federal government, including high-risk areas and ways to address fragmentation, overlap, and duplication.

What GAO Found

GAO's work routinely generates recommendations for improving the efficiency and effectiveness of government programs, resulting in measurable improvements. Since fiscal year 2010, GAO's work has resulted in over $330 billion in financial benefits and over 8,000 program and operational benefits. In fiscal year 2015 alone, GAO's work yielded $74.7 billion in financial accomplishments—a return of about $134 for every dollar invested in GAO. Other wide-ranging benefits include helping to avoid sequestration and identifying legislative solutions to federal performance and management issues. GAO has made an average of 1,800 recommendations a year with an average of about 80 percent implemented between fiscal years 2010 and 2015.
As of November 12, 2015, about 4,800 of GAO's recommendations to executive branch agencies and the Office of Management and Budget remain open across the federal government. If implemented, they could result in significant benefits, such as increased savings, better services to the public, and improved federal programs. A couple of examples to illustrate this potential follow:
Department of Defense (DOD) Weapon Systems Acquisition: On GAO's High Risk List since 1990, GAO's work has identified several opportunities for DOD to maximize its use of taxpayer dollars by improving its acquisition process. For example, given DOD's plans to increase F-35 funding by billions of dollars over the next 5 years, GAO recommended that DOD conduct a comprehensive affordability analysis of the program's procurement plan. DOD maintains that it accomplishes this through its annual budget process; however, without a more thorough and complete analysis, DOD may not fully understand the affordability implications of increasing funding at the planned rates.
Medicare Program Payment Policy: On GAO's High Risk List since 1990 due in part to its complexity and susceptibility to mismanagement, GAO has made many recommendations to improve Medicare, including improving the accuracy of the adjustment made for differences in diagnostic coding practices between Medicare Advantage (MA) and Medicare Fee-For-Service. For example, the Centers for Medicare & Medicaid (CMS) could better account for additional beneficiary characteristics, such as residential location, and use more current and refined data in determining MA payments. GAO made this recommendation because of shortcomings in CMS's adjustment, which resulted in excess payments to MA plans totaling an estimated $3.2 billion to $5.1 billion over a 3-year period from 2010 through 2012.
GAO continuously engages with executive branch agencies to ensure recommendations are implemented. For example, GAO regularly follows up with agencies on its recommendations and posts their status online. This year GAO sent letters to the heads of key executive branch agencies identifying unimplemented recommendations that warrant priority attention. GAO's high risk and fragmentation, overlap, and duplication work also highlights critical open recommendations for executive branch agencies and Congress. In addition, GAO works with Congress to further progress on recommendations, including incorporating GAO work into legislation.