GAO's Views on H.R. 3400 Management Initiatives
T-AIMD/GGD-94-97: Published: Feb 23, 1994. Publicly Released: Feb 23, 1994.
- Full Report:
Pursuant to a congressional request, GAO discussed the Government Reform and Savings Act, focusing on financial management, general management, and human resource management issues. GAO noted that: (1) the legislation's provisions require governmentwide financial statement audits to ensure government accountability and efficiency; (2) the costs of increased financial statement audits are expected to decline over time and the benefits of expanded financial statement audits outweigh their cost; (3) although the legislation seeks to establish franchise and innovation funds to encourage centralization and provide investment capital for administrative support services, the need for such funds remains questionable; (4) Congress needs to determine whether franchise and innovation funds can be adequately overseen or existing capital funds can be used for innovation and investment purposes; (5) the proposed legislation would require that the government strengthen its financial management systems by utilizing technology for financial and fund transfer services, improving its debt collection procedures, and streamlining management and financial reports; and (6) although the proposed legislation would limit the number of full time positions in the executive branch, Congress needs to ensure that workforce reductions do not adversely affect service administration.