Budgeting, Accounting, Program Analysis and Auditing: Roles and Relationships for the 1980's and Beyond

GAO has concluded that the Government's budget process must be strengthened and its inadequacies overcome. Strong policy and program decisions, effectively supported by improved financial management and analysis, are needed to restore public confidence in Government. Federal officials must redouble their efforts to better manage their resources and take decisive steps to reduce wasteful spending. Priority must be given to improving management systems and to encouraging the types of analysis that will help make hard choices in selecting the programs and activities that are to be reduced, terminated, or expanded. GAO described several options that can bring this about, including: (1) closing any existing gaps in the Federal financial management system; (2) breaking down the excessive compartmentalization of analysis and control functions in Federal agencies; and (3) using high-level study groups or commissions to act as catalysts for badly needed changes in budgetary concepts and procedures. GAO found that better congressional oversight of Federal programs would greatly encourage Federal managers to strengthen their financial management practices and develop more coordinated analyses and controls. GAO found that the budgetary process does not allow Congress adequate time to fully consider and debate many budget-related authorizing and appropriations actions. GAO recommended that Congress consider shifting the Government to a biennial budget cycle to permit more orderly, thoughtful, and timely actions.