This is the accessible text file for CG Presentation number GAO-09- 441CG entitled 'GAO: Promoting Accountability And Transparency In Government' which was released on April 6, 2009. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. GAO: Promoting Accountability And Transparency In Government: Before Lycoming College: James Harding Executive Speaker: Williamsport, PA: March 23, 2009: By Gene L. Dodaro: Acting Comptroller General: GAO-09-441CG: Outline: * About GAO: * Financial Markets and Economic Recovery: * Transition – New President and Congress: * Long Term Fiscal Outlook and Risks: About GAO: GAO’s mission is to support Congress and improve government: * An independent, nonpartisan agency in the legislative branch of the federal government. * 3,200 employees, i.e., economists, accountants, public policy analysts, attorneys and computer experts. * Issues hundreds of reports, congressional testimonies, and other products each year on breadth of federal responsibilities. GAO’s Strategic Plan Framework: provide timely, quality service to the Congress and the federal government to: * Address current and emerging challenges to the well-being and financial security of the American people; * Respond to changing security threats and the challenges of global interdependence; * Help transform the federal government’s role and how it does business to meet 21st century challenges; * Maximize the value of GAO by being a model federal agency and world- class professional services organization. Our Core Values: Accountability: Help the Congress oversee federal programs, policies, and operations to ensure accountability to the American people. Integrity: Ensure that our work is professional, objective, fact-based, nonpartisan, nonideological, balanced and fair. Reliability: Provide high-quality, timely, accurate, useful, clear, and candid information. Financial Markets and Economic Recovery: * Financial Regulatory System; * GAO Role in Financial Rescue; * Auditors of Bank Insurance Fund, FHFA, TARP, and U.S. Government Financial Statements; * American Recovery and Reinvestment Act. Modernizing the U.S. Financial Regulatory System: Financial Regulation: A Framework for Crafting and Assessing Proposals to Modernize the Outdated U.S. Financial Regulatory System. * Explains the origins of the current financial regulatory system; * Describes market developments and changes that pose challenges to the current system; * Presents an evaluation framework that Congress and others can use to craft or evaluate potential regulatory reform efforts; (GAO-09-216, Jan. 8, 2009) Outdated Regulatory System: Risks posed by: * Emergence of large, complex, and interconnected financial conglomerates; * Less-regulated entities are playing increasingly critical roles in the financial system; * New and complex products pose challenges to system stability and consumer protection. For Crafting or Assessing Regulatory Reform Proposals: GAO Framework — 9 Essential Characteristics: * Clearly defined regulatory goals in statute; * Appropriately comprehensive; * Systemwide focus; * Flexible and adaptable; * Efficient and effective; * Consistent consumer and investor protections; * Regulators provided with independence, prominence, authority, and accountability; * Consistent financial oversight; * Minimal taxpayer exposure. Financial Institutions and Markets: * Emergency Economic Stability Act of 2008 created $700 billion TARP in October 2008; * GAO given statutory oversight role; * GAO’s TARP reports recommendations follow 3 themes: - Monitoring the use of funds to meet the Act’s objectives; - Articulating a better communication strategy; - Ensuring effective Treasury management structure. American Recovery & Reinvestment Act: * Signed February 17, 2009; * Purposes: - preserve and create jobs and promote recovery; - assist those most impacted by the recession; - invest in science and health-care technology; - invest in infrastructure; - stabilize state and local government budgets. * Total cost, tax and spending: $787 billion, including: - over $580 billion in additional spending (CBO estimate). * Inspectors General: review federal program and agency implementation. * Recovery Accountability and Transparency Board. * GAO: responsibilities include: - conducting bimonthly reviews of selected state and localities; - commenting on the estimates of the number of jobs reviewing areas such as trade adjustment assistance, new education incentive grants, and efforts to increase small business lending. Global Financial Crisis Task Force: * Created by International Governing Board in November 2008. * Purpose: - enhance the knowledge base of NAOs on financial and economic matters related to the crisis; - be a source of information to help governments and the global community respond to the crisis. * Membership: U.S.A. is lead, other countries include: Austria; Canada; Chile; China; Cyprus; Denmark; Estonia; Hungary; Indonesia; Italy; Japan; Korea; Mexico; Morocco; Netherlands; Poland; Russia; Slovakia; Spain; Sweden; United Kingdom; Venezuela. Transition: Assisting The New Administration & The New Congress: Figure: Photographs of the White House and the U.S. Capitol buildings. [Refer to PDF for image] [End of figure] Figure: Screen shot of the home page of the GAO Website [hyperlink, http://www.gao.gov]. [Refer to PDF for image] Highlighted in the screen shot is the link to the 2009 Congressional and Presidential Transition page. [End of figure] Figure: Screen shot of the 2009 Congressional and Presidential Transition page of the GAO Website [hyperlink, http://www.gao.gov/transition_2009/]. [Refer to PDF for image] Links on the page include: * Urgent Issues. * Agency-by-Agency Issues. * Management Challenges Across the Government. * Major Cost-Saving Opportunities. * Upcoming Reports on Major Issues. * Long-Term Fiscal Outlook. * Working with GAO. [End of figure] Other Urgent Issues: Timely Action Is Critical: * U.S. efforts in Iraq, Afghanistan, and Pakistan; * Defense readiness, spending, and care for service members; * Protecting the homeland and preparing for public health emergencies; * Improving U.S. image abroad; * Food safety; * Transition to digital TV. Long-Term Challenges: * Today’s focus—understandably—is on: - Dealing with financial system stress; - Addressing the economic downturn; * But: Underlying long-term fiscal challenge still needs to be addressed. Figure: Long-Term Fiscal Challenge: [Refer to PDF for image] This figure is a multiple line graph depicting the following data in percent of GDP: Year: 2005; Federal Surplus/Deficit[A]: -2.6%; Combined Surplus/Deficit: -3.1%. Year: 2010; Federal Surplus/Deficit[A]: -5.04%; Combined Surplus/Deficit: -7%. Year: 2015; Federal Surplus/Deficit[A]: -5.19%; Combined Surplus/Deficit: -6.9%. Year: 2020; Federal Surplus/Deficit[A]: -6.77%; Combined Surplus/Deficit: -8.7%. Year: 2025; Federal Surplus/Deficit[A]: -9.23%; Combined Surplus/Deficit: -11.5%. Year: 2030; Federal Surplus/Deficit[A]: -12.02%; Combined Surplus/Deficit: -14.8%. Year: 2035; Federal Surplus/Deficit[A]: -15.07%; Combined Surplus/Deficit: -18.4%. Year: 2040; Federal Surplus/Deficit[A]: -18.25%; Combined Surplus/Deficit: -22.1%. Year: 2045; Federal Surplus/Deficit[A]: -21.55%; Combined Surplus/Deficit: -25.9%. Year: 2050; Federal Surplus/Deficit[A]: -25.02%; Combined Surplus/Deficit: -30%. Source: GAO January 2009 analysis. [A] Federal surplus/deficit is from GAO’s Alternative Simulation using the Trustees’ assumptions. [End of figure] Figure: Long-Term Fiscal Challenge Driven by Health Care Spending: [Refer to PDF for image] This figure is a stacked line graph depicting the following data in percent of GDP: Year: 2008; Social Security: 4.32%; Medicaid: 1.44%; Medicare: 3.24%; Total: 9.00%. Year: 2009; Social Security: 4.35%; Medicaid: 1.59%; Medicare: 3.28%; Total: 9.22%. Year: 2010; Social Security: 4.39%; Medicaid: 1.68%; Medicare: 3.32%; Total: 9.39%. Year: 2015; Social Security: 4.8%; Medicaid: 1.79%; Medicare: 3.71%; Total: 10.3%. Year: 2020; Social Security: 5.3%; Medicaid: 2.03%; Medicare: 4.45%; Total: 12.68%. Year: 2025; Social Security: 5.71%; Medicaid: 2.27%; Medicare: 5.35%; Total: 13.33%. Year: 2030; Social Security: 6%; Medicaid: 2.55%; Medicare: 6.26%; Total: 15.1%. Year: 2035; Social Security: 6.09%; Medicaid: 2.84%; Medicare: 7.00%; Total: 15.93%. Year: 2040; Social Security: 6.02%; Medicaid: 3.13%; Medicare: 7.58%; Total: 16.73%. Year: 2045; Social Security: 5.89%; Medicaid: 3.40%; Medicare: 8.01%; Total: 17.3%. Year: 2050; Social Security: 5.81%; Medicaid: 3.64%; Medicare: 8.40%; Total: 17.85%. Year: 2055; Social Security: 5.77%; Medicaid: 3.86%; Medicare: 8.78%; Total: 18.41%. Year: 2060; Social Security: 5.77%; Medicaid: 4.08%; Medicare: 9.21%; Total: 19.06%. Year: 2065; Social Security: 5.76%; Medicaid: 4.30%; Medicare: 9.63%; Total: 19.69%. Year: 2070; Social Security: 5.77%; Medicaid: 4.53%; Medicare: 10.03%; Total: 20.33%. Year: 2075; Social Security: 5.79%; Medicaid: 4.75%; Medicare: 10.38%; Total: 20.92%. Year: 2080; Social Security: 5.81%; Medicaid: 4.96%; Medicare: 10.69%; Total: 21.46%. Source: GAO analysis of data from the Office of the Chief Actuary, Social Security Administration, Office of the Actuary, Centers for Medicare and Medicaid Services, and the Congressional Budget Office. Note: Social Security and Medicare projections based on the intermediate assumptions of the 2008 Trustees’ Reports. Medicaid projections based on CBO’s January 2009 short-term Medicaid estimates and CBO’s December 2007 long-term Medicaid projections adjusted to reflect excess cost growth consistent with the 2008 Trustees intermediate assumptions. [End of figure] 2009 High-Risk List: 30 items grouped into four categories: * Broad-Based Transformation Challenges (e.g., DOD, DHS, surface transportation, food safety oversight); * Federal Contracting; * Tax Law Administration; * Insurance and Benefit Programs (e.g., Medicare, Medicaid, PBGC, flood insurance). Latest High-Risk List Additions: * Modernizing the Outdated U.S. Financial Regulatory System; * Protecting Public Health through Enhanced Oversight of Medical Products; * Transforming EPA’s Processes for Assessing and Controlling Toxic Chemicals. The Value Of Public Service. 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