	GAO: A Unique Agency with a Hybrid System

As an arm of the legislative branch, GAO exists to support the 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. Unlike many executive  branch agencies, which have either recently received or are just requesting  new broad-based human capital tools and flexibilities, GAO has had certain  human capital tools and flexibilities for over two decades. Key Elements of GAO’s Proposal

GAO’s proposal combines diverse initiatives that, collectively, should  further GAO’s ability to enhance our performance, assure our  accountability, and help ensure that we can attract, retain, motivate, and  reward a top quality and high-performing workforce currently and in future  years. Specifically, we are  requesting that the Congress provide us the following additional human  capital tools and flexibilities:   make permanent GAO’s 3-year authority to offer voluntary early  retirement and voluntary separation payments;   allow the Comptroller General to adjust the rates of basic pay of GAO on  a separate basis than the annual adjustments authorized for employees  of the executive branch;   permit GAO to set the pay of an employee demoted as a result of  workforce restructuring or reclassification at his or her current rate  with no automatic annual increase to basic pay until his or her salary is  less than the maximum rate of  their new position;   provide authority in appropriate circumstances to reimburse employees  for some relocation expenses when that transfer does not meet current  legal requirements for entitlement to reimbursement but still benefits  GAO;   provide authority to put upper-level hires with less than 3 years of  federal experience in the 6-hour leave category;   authorize an executive exchange program with private sector  organizations working in areas of mutual concern and involving areas in  which GAO has a supply-demand imbalance; and  change GAO’s legal name from the “General Accounting Office” to the  “Government Accountability Office.”
I will go into more detail later in my testimony on the details and rationale  for each of these proposals. Nature of GAO Employee Concerns

Based on feedback from GAO employees, there is little or no concern  relating to most of the provisions in our proposal. As addressed below, we do believe, however, that these employee  concerns, have been reduced considerably due to the clarifications,  changes, and commitments resulting from our extensive outreach and  consultation effort. We have used the  narrowly tailored flexibilities the Congress provided us previously in Public  Law 106-303 responsibly, prudently, and strategically to help posture GAO  to ensure the accountability of the federal government for the benefit of the  Congress and the American people. Although some elements of our initial  straw proposal were controversial, we have made a number of changes,  clarifications, and commitments to address various comments and  concerns raised by GAO employees. However, we believe that it is vitally important to GAO’s future that we  continue modernizing and updating our human capital policies and system  in light of the changing environment and anticipated challenges ahead. Given our  human capital infrastructure and our unique role in leading by example in  major management areas, including human capital management, the  federal government could benefit from GAO’s experience with pay for  performance systems. Overall, we believe that this proposal represents a  logical incremental advancement in modernizing GAO’s human capital  policies, and with your support, we believe that it will make a big difference  for the GAO of the future.
Why GAO Did This Study

The Subcommittee on Civil Service and Agency Organization, House Committee on Government Reform seeks GAO's views on its latest human capital proposal that is slated to be introduced as a bill entitled the GAO Human Capital Reform Act of 2003.

What GAO Found

As an arm of the legislative branch, GAO exists to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the American people. Unlike many executive branch agencies, which have either recently received or are just requesting new broad-based human capital tools and flexibilities, GAO has had certain human capital tools and flexibilities for over two decades. GAO's latest proposal combines diverse initiatives that, collectively, should further GAO's ability to enhance its performance, assure its accountability, and help ensure that it can attract, retain, motivate, and reward a top-quality and high-performing workforce currently and in future years. Specifically, GAO is requesting that the Congress (1) make permanent GAO's 3-year authority to offer early outs and buyouts, (2) allow GAO to set its own annual pay adjustment system separate from the executive branch, (3) permit GAO to set the pay of an employee demoted as a result of workforce restructuring or reclassification to keep his/her basic pay but to set future increases consistent with the new position's pay parameters, (4) provide authority to reimburse employees for some relocation expenses when that transfer has some benefit to GAO but does not meet the legal requirements for reimbursement, (5) provide authority to place upper-level hires with fewer than 3 years of federal experience in the 6-hour leave category, (6) authorize an executive exchange program with the private sector, and (7) change GAO's legal name from the "General Accounting Office" to the "Government Accountability Office." GAO has used the narrowly tailored flexibilities granted by the Congress previously in Public Law 106-303, the GAO Personnel Flexibilities Act, responsibly, prudently, and strategically. GAO believes that it is vitally important to its future to continue modernizing and updating its human capital policies and system in light of the changing environment and anticipated challenges ahead. GAO's proposal represents a logical incremental advancement in modernizing GAO's human capital policies. Based on employee feedback, there is little or no concern relating to most of the proposal's provisions. Although some elements of GAO's initial straw proposal were controversial (e.g., GAO's pay adjustment provision), the Comptroller General has made a number of changes, clarifications, and commitments to address employee concerns. While GAO believes that some employees remain concerned about the pay adjustment provision, GAO also believes that employee concerns have been reduced considerably due to the clarifications, changes, and commitments the Comptroller General has made. Given GAO's human capital infrastructure and unique role in leading by example in major management areas, the rest of the federal government can benefit from GAO's pay system experience.