	Fiscal Year 2002 Performance and Results

Fiscal year 2002 was a year of challenges, not just for GAO but also for the  Congress and the nation. In fiscal year 2002, GAO also served the Congress and the American  people by helping to:    Contribute to a national preparedness strategy at the federal, state, and  local levels that will make Americans safer from terrorism    Protect investors through better oversight of the securities industry and    Ensure a safer national food supply    Expose the inadequacy of nursing home care    Make income tax collection fair, effective, and less painful to taxpayers    Strengthen public schools’ accountability for educating children    Keep sensitive American technologies out of the wrong hands    Protect American armed forces confronting chemical or biological  weapons  Identify the risks to employees in private pension programs  Identify factors causing the shortage of children’s vaccines    Assist the postal system in addressing anthrax and various management  challenges  Identify security risks at ports, airports, and transit systems    Save billions by bringing sound business practices to the Department of    Foster human capital strategic management to create a capable, effective,    Ensure that the armed forces are trained and equipped to meet the  nation’s defense commitments    Enhance the safety of Americans and foreign nationals at U.S.
Assess ways of improving border security through biometric technologies    Reduce the international debt problems faced by poor countries    Reform the way federal agencies manage their finances    Protect government computer systems from security threats    Enhance the transition of e-government—the new “electronic connection”  between government and the public During fiscal year 2002, GAO’s analyses and recommendations contributed  to a wide range of legislation considered by the Congress, as shown in the  following table. 1). 2). Maximizing GAO’s Effectiveness, Responsiveness and Value

The results of our work were possible, in part, because of changes we  have made to maximize the value of GAO. We had already realigned GAO’s  structure and resources to better serve the Congress in its legislative,  oversight, appropriations, and investigative roles. Over the past year, we  cultivated and fostered congressional and agency relations, better refined  our strategic and annual planning and reporting processes, and enhanced  our information technology infrastructure. We also continued to provide  priority attention to our management challenges of human capital,  information security, and physical security. Changes we made in each of  these areas helped enable us to operate in a constantly changing  environment. GAO’s Fiscal Year 2004 Budget Request

GAO is requesting budget authority of $473 million for fiscal year 2004 to  maintain current operations for serving the Congress as outlined in our  strategic plan and to continue initiatives to enhance our human capital,  support business processes, and ensure the safety and security of GAO  staff, facilities, and information systems. Our requested increase of $18.4 million in direct appropriations represents  a modest 4.1 percent increase, primarily for mandatory pay and  uncontrollable costs. Our fiscal year 2004 budget includes $4.8 million for safety  and security needs that are also included in the supplemental. If the  requested fiscal year 2003 supplemental funds are provided, our fiscal year  2004 budget could be reduced by $4.8 million. The performance goals lay out the work we plan to do in fiscal years  2002 and 2003 to help achieve our strategic goals and objectives.
Why GAO Did This Study

GAO is a key source of objective information and analyses and, as such, plays a crucial role in supporting congressional decision-making and helping improve government for the benefit of the American people. This testimony focuses on GAO's (1) fiscal year 2002 performance and results, (2) efforts to maximize our effectiveness, responsiveness and value, and (3) our budget request for fiscal year 2004 to support the Congress and serve the American public.

What GAO Found

In fiscal year 2002, GAO's work informed the national debate on a broad spectrum of issues including helping the Congress answer questions about the associated costs and program tradeoffs of the national preparedness strategy, including providing perspectives on how best to organize and manage the new Transportation Security Administration and Department of Homeland Security. GAO's efforts helped the Congress and government leaders achieve $37.7 billion in financial benefits--an $88 return on every dollar invested in GAO. The return on the public's investment in GAO extends beyond dollar savings to improvements in how the government serves its citizens. This includes a range of accomplishments that serve to improve safety, enhance security, protect privacy, and increase the effectiveness of a range of federal programs and activities. The results of our work in fiscal year 2002 were possible, in part, because of changes we have made to transform GAO in order to meet our goal of being a model federal agency and a world-class professional services organization. We had already realigned GAO's structure and resources to better serve the Congress in its legislative, oversight, appropriations, and investigative roles. Over the past year, we cultivated and fostered congressional and agency relations, better refined our strategic and annual planning and reporting processes, and enhanced our information technology infrastructure. We also continued to provide priority attention to our management challenges of human capital, information security, and physical security. We have made progress in addressing each of these challenges, but we still have work to do and plan to ask for legislation to help address some of these issues. GAO is requesting budget authority of $473 million for fiscal year 2004. Our request represents a modest 4.1 percent increase in direct appropriations, primarily for mandatory pay and uncontrollable costs. This budget will allow us to maintain current operations for serving the Congress as outlined in our strategic plan and continue initiatives to enhance our human capital, support business processes, and ensure the safety and security of GAO staff, facilities, and information systems. Approximately $4.8 million, or about 1 percent, of our request relates to several safety and security items that are included in our fiscal year 2003 supplemental request. If this supplemental request is granted, our fiscal year 2004 request could be reduced accordingly.