Summary: Testimony was presented regarding the GAO budget request for fiscal year (FY) 1985 and recent GAO initiatives and accomplishments. Organizational changes in the past 2 years include the designation of new Assistant Comptrollers General to concentrate top management attention on areas which are vital to effective GAO operations and to direct personnel activities. Three new divisions were created: the Information Management and Technology Division, the National Security and International Affairs Division, and the Resources, Community, and Economic Development Division. Further, the Accounting and Financial Management Division was restructured to foster the development of a comprehensive financial management system and to better focus GAO resources, and the Institute for Program Evaluation was refocused to emphasize assisting other divisions in program evaluation and training GAO staff. GAO is modifying its planning system so that issue area plans will cover a longer time period, and a new office was created with the purpose of ensuring that quality and timeliness of work are achieved. GAO has made significant progress in overhauling its recruiting, selection, training, and staff evaluation processes. The Comptroller General estimated that, to fully meet its responsibilities to Congress, GAO will need to have an additional 500 staff years authorized for FY 1985. These additional staff years, along with the training, equipment, travel, and other support that will be required, will cost an estimated $56 million over the FY 1984 budget. Of this increase, $15.5 million will be spent in areas generally beyond the control of GAO, such as inflation and legislatively mandated pay raises. The staff-year increase will account for about $25.3 million of the budget increase, and the remaining $15.2 million will fund increases in computer and communications equipment for use by GAO auditors and support staff, in personnel training, and in the travel needed for effective job performance. GAO stated that, although the requested budget increase is large, the savings resulting from GAO work are many times the amount appropriated to it.