Economies, Efficiencies, and Savings a Challenge for Comptrollers

The Comptroller General commented that the need to restore the public confidence in all levels of government is a pressing matter. Federal officials, especially Defense officials, must redouble their efforts to better manage their resources and reduce wasteful spending. GAO considers it imperative that any gaps in the Federal financial management spectrum be closed; separate and uncoordinated planning, budgeting, program management, auditing, accounting, and evaluation can no longer be tolerated. The Administration's recent action to streamline budget formulation by allowing agencies to depart from stringent zero-base budgeting procedures is a step in the right direction. A high-level budget study group is needed to act as a catalyst for changes in our budgeting concepts and procedures. Important oversight reform legislation was reintroduced in this Congress which would systematize congressional reviews and reauthorizations of Federal programs. A great need exists for more accurate, timely, and relevant accounting information to assist comptrollers in effective budget administration. The Accounting and Auditing Act sets forth the policy that executive agencies are required to: (1) establish and maintain systems of accounting and internal controls in conformance with requirements prescribed by the Comptroller General; and (2) obtain Comptroller General approval of these systems. According to GAO, the record of executive agency compliance with the Act has been dismal. Many agencies install and begin operating systems without GAO approval, although experience has shown that approved systems are generally better. Many accounting systems are operated improperly and, as a result, billions of dollars are not adequately managed. The apathy of Federal managers regarding internal controls is often appalling. Several steps to improve internal controls promise top management participation in the prevention of fraud. Proposed legislation would require agency heads to report annually to Congress on the adequacy of agency internal controls. However, despite the positive steps that have been taken and that are planned for improving internal controls, much remains to be done.