Summary: Testimony was given on the fiscal year (FY) 1986 appropriations of $339.6 million, which GAO has requested to fund 5,250 staff-years to respond to congressional needs. GAO has continually returned considerably more in savings than has been appropriated to the agency. In FY 1984, GAO identified over $5 billion in measurable savings which was over 19 times the amount appropriated to the agency in that year. GAO is directing its work toward improving automatic data processing and telecommunications operations in individual agencies and governmentwide over the next 2 to 4 years. In the defense area, GAO will continue to have both a service-oriented and a defense-wide focus. In the area of financial management, GAO will concentrate its work on: (1) strengthening accounting, auditing, and reporting; (2) improving planning and programming; (3) streamlining the budget process; and (4) systematically measuring performance. Future GAO work will also focus on changes occurring in the financial services industry and ways to improve the farm financial condition, the administration of crop assistance programs, markets and trade opportunities, and food assistance programs. In addition, GAO plans to work on health care cost containment and the quality of health care, as well as studying social security operations and program financing. GAO also plans to study the tax shortfall resulting from taxpayer noncompliance. Finally, GAO reported on the steps which it has taken to build its information resources capabilities, improve its economic analysis capability, and meet the technical training needs of senior GAO staff.