This speech was given by the Comptroller General before the Elliot Richardson Lecture at the American Society for Public Administration National Conference in Milwaukee, Wisconsin on April 4, 2005. Washington's federal buildings, monuments, and museums are impressive any time of the year. But let's face it. It's the people who work in those buildings who really matter. As we all know, any organization is only as good as the people who comprise it. All too often, discussions about ethics in government tend to dwell on those familiar failings in character and judgment that give rise to waste, fraud, abuse, and mismanagement. Don't misunderstand me. Whether it's federal workers who abuse their government credit cards or contractors who try to over bill the government, the misuse of taxpayer dollars is unacceptable under any circumstances. We should have zero tolerance for waste, fraud, and abuse, no matter how small or large the dollar amounts in question. But in my view, the greatest ethical issues facing government today are the current lack of fiscal discipline in Washington and the continuing unwillingness of public officials to make difficult but known and necessary policy choices. The longer we postpone these difficult choices, the more we threaten our collective future. Right now, we need policy makers who have the courage to do the right thing and put the needs of the next generation ahead of the next election cycle. Probably the most urgent issue is our nation's worsening financial condition and long-range fiscal outlook. Clearly, the crunch is coming, and eventually all of government will feel its impact, including the Departments of Defense and Homeland Security. Many state and local governments also face serious long-range budget challenges. Don't forget, bad news flows downhill. Over time, the federal government's fiscal challenges are likely to exacerbate the challenges facing state and local governments. The 21st century is also being defined by new security threats, including terrorist networks and rogue nations armed with weapons of mass destruction. Most industrialized nations, including the United States, also face the challenge of caring for aging populations. Beyond Congress and the President, civil servants will also have an important role to play in this overall transformation effort.

Historically, Americans have shrugged off warnings about impending deficit and debt problems. Today, low interest rates and modest inflation have given many of us a false sense of security. This unrealistic outlook is reinforced by the government's financial statements and official budget projections, which fail to provide a full or fair view of our nation's current financial condition and future prospects. The truth is that America's finances are in far worse shape than advertised. By making tough choices sooner rather than later, we can minimize the need for drastic measures down the road. We can ensure that the miracle of compounding will eventually work for us rather than against us, as it is now. The truth is that the current burden for every American now works out to nearly $150,000. The numbers are even worse for full-time workers, something around $350,000 each. The financial management problems are particularly severe at the Pentagon, which, year after year, can't properly account for billions of dollars in property and equipment and various expenditures. Let's face facts - deficits do matter. It's also important how a nation keeps score. After all, if our government can't be honest with itself and with its citizens about its finances, then how will our elected officials ever make the tough choices that will enable us to meet the known challenges that lie ahead? Nothing less than a top-to-bottom review of federal activities is needed to determine whether they are meeting their objectives and to free up resources to meet pressing needs. To help in this effort, GAO recently published an unprecedented report that asks a series of illustrative questions about both mandatory and discretionary spending and tax policy. My hope is that this GAO report will encourage policymakers and the public to think more strategically about where we are, where we are headed, and where we should go from here. Any government that values ethics and integrity needs to have a system of checks and balances that ensures transparency and accountability. GAO is a strong advocate of these basic principles of "good government." By providing Congress with the best available information on federal programs and policies, GAO ensures that no one is above the law and that every government official, no matter who they are, must answer to the American people. GAO takes seriously its responsibility to speak out on a range of complex and sometimes controversial issues. We have only to look to the private sector to see what happens when individuals lack or stray from a set of core values. As many people have learned the hard way, it's not enough to do what is legally permissible. It's important to aim higher and do what is ethically and morally right. Today, all of us need to be part of the solution. My hope is that when you leave here today, you will spread the word among your friends and colleagues and start demanding the facts and insisting on action. In these challenging times, we need more leaders with three key attributes: courage, integrity, and innovation. We need leaders who have the courage to speak the truth and to do the right thing, even if it isn't popular. We need leaders who have the integrity to lead by example and to practice what they preach. We need leaders who can see new ways to address the many challenges facing us and who can help others to see the way forward.