Budget Issues: 1991 Budget Estimates: What Went Wrong
OCG-92-1
Published: Jan 15, 1992. Publicly Released: Jan 15, 1992.
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Highlights
GAO reviewed the factors contributing to the Office of Management and Budget's (OMB) large misestimate for the fiscal year (FY) 1991 budget deficit.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | The Secretary of the Treasury and the Director, OMB, should agree on a procedure to ensure the prompt reporting of an analysis of the causes of changes in budget estimates for the most recently completed fiscal year. Ideally, this information and analysis would be made available when the final Monthly Treasury Statement for the year is released. |
Closed – Implemented
Treasury's response reaffirms the previous practice of providing detailed analysis in February, not in October as GAO recommended. GAO anticipates followup of this issue in its audit work of fiscal year 1992 budget estimates.
|
| Office of Management and Budget | The Secretary of the Treasury and the Director, OMB, should agree on a procedure to ensure the prompt reporting of an analysis of the causes of changes in budget estimates for the most recently completed fiscal year. Ideally, this information and analysis would be made available when the final Monthly Treasury Statement for the year is released. |
Closed – Implemented
The OMB response reaffirms the previous practice of providing detailed analysis in February, no in October, as GAO recommended. GAO anticipates further followup of this issue in its audit work of fiscal year 1992 budget estimates.
|
| Office of Management and Budget | The Director, OMB, should review OMB procedures for assessing the accuracy of its budget estimates and the underlying estimating practices in order to better identify means of improving the accuracy of the budget estimates. This assesment should start with a systematic identification of areas in the budget in which the actual results departed materially from the original estimates. Each of these areas should then be examined in detail to determine the reasons for the variances and to identify improvements in the estimating procedures that would yield more reliable estimates in the future. |
Closed – Implemented
The OMB response assures that steps will be taken to improve its estimation record. GAO anticipates followup of OMB efforts and progress in its audit work of fiscal year 1992 budget estimates.
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Topics
Budget administrationBudget controllabilityBudget deficitBudget outlaysBudget reapportionmentDefense budgetsFederal fundsFuture budget projectionsMedicaidReporting requirements