In fiscal year 2003, GAO served the  Congress and the American people by helping to  identify steps to reduce improper payments and credit card fraud in  government programs; restructure government and improve its processes and systems to  maximize homeland security;   prepare the financial markets to continue operations if terrorism    update and strengthen government auditing standards;  improve the administration of Medicare as it undergoes reform;   encourage and help guide federal agency transformations;    contribute to congressional oversight of the federal income tax system;  identify human capital reforms needed at the Department of Defense,  the Department of Homeland Security, and other federal agencies; raise the visibility of long-term financial commitments and imbalances  in the federal budget; reduce security risks to information systems supporting the nation’s  critical infrastructures;   oversee programs to protect the health and safety of today’s workers;    ensure the accountability of federal agencies through audits and    serve as a model for other federal agencies by modernizing our  approaches to managing and compensating our people. In fiscal year 2003, our work generated $35.4 billion in financial benefits— a $78 return on every dollar appropriated to GAO. Many of the benefits that flow to the American people from our work  cannot be measured in dollar terms. This is especially important in light of the nation’s large and growing long- term fiscal imbalance. With the Congress’s support, we  have demonstrated that becoming world class does not require substantial  staffing increases, but rather maximizing the efficient and effective use of  the resources available to us. We have worked with you to make  changes in areas where we were facing longer-term challenges when I  came to GAO, such as in the critical human capital, information  technology, and physical security areas. GAO’s Fiscal Year 2005 Request to Support the Congress

GAO is requesting budget authority of $486 million for fiscal year 2005. The funding we received in fiscal year 2004 is allowing us to  conduct work that addressed many difficult issues confronting the nation. By providing professional, objective, and nonpartisan information and  analyses, we help inform the Congress and executive branch agencies on  key issues, and covered programs that continue to involve billions of  dollars and touch millions of lives. I am proud of the outstanding contributions made by GAO employees as  they work to serve the Congress and the American people. In keeping with  my strong belief that the federal government needs to exercise fiscal  discipline, our budget request for fiscal year 2005 is modest, but would  maintain our ability to provide first class, effective, and efficient support  to the Congress and the nation to meet 21st century challenges in these  critical times. Enhancing Quality of Care in Nursing Homes.
Why GAO Did This Study

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. GAO's work covers virtually every area in which the federal government is or may become involved, anywhere in the world. Perhaps just as importantly, our work sometimes leads us to sound the alarm over problems looming just beyond the horizon--such as our nation's enormous long-term fiscal challenges--and help policymakers address these challenges in a timely and informed manner. This testimony focuses on GAO's (1) fiscal year 2003 performance and results; (2) efforts to maximize our effectiveness, responsiveness, and value; and (3) budget request for fiscal year 2005 to support the Congress and serve the American people.

What GAO Found

In summary, the funding GAO received in fiscal year 2003 allowed it to conduct work that addressed many of the difficult issues confronting the nation, including diverse and diffuse security threats, selected government transformation challenges, and the nation's long-term fiscal imbalance. Perhaps the foremost challenge facing the government decision makers this year was ensuring the security of the American people. By providing professional, objective, and nonpartisan information and analyses, GAO helped inform the Congress and the executive branch agencies on key security issues, such as the nature and scope of threats confronting the nation's nuclear weapons facilities, its information systems, and all areas of its transportation infrastructure, as well as the challenges involved in creating the Department of Homeland Security. Its work was also driven by changing demographic trends, which led it to focus on such areas as the quality of care in the nation's nursing homes and the risks to the government's single-employer pension insurance program. Its work in these and other areas covered programs that involve billions of dollars and touch millions of lives. Importantly, in fiscal year 2003, GAO generated a $78 return for each $1 appropriated to the agency. With the Congress's support, GAO has demonstrated that becoming world class does not require a substantial increase in the number of staff authorized, but rather maximizing the efficient and effective use of the resources available to us. GAO has worked with Congress to obtain targeted funding for areas critical to GAO such as information technology, security, and human capital management. In keeping with the Comptroller General's belief that the federal government needs to exercise a greater degree of fiscal discipline, GAO has kept its request to $486 million, an increase of only 4.9 percent over fiscal year 2004. In keeping with the Congress' intent, GAO is continuing its efforts to revamp its budget presentation to make the linkages between funding and program areas more clear.