Summary: Testimony was given on the GAO budget request of $339.6 million for fiscal year (FY) 1986 to fund 5,250 staff-years. Since GAO is responsible for responding to congressional needs as it makes difficult decisions on ways to trim deficits and improve effectiveness in government programs, it continually returns considerably more in savings than is appropriated to the agency. Over the past year, GAO has established an Information Management and Technology Division to evaluate the application of information management resources in federal agency operations and has provided an increased focus on the growing defense establishment. GAO has also made some changes in its Accounting and Financial Management Division to address significant financial management issues. In addition, it has established an Office of Quality Assurance and has established functions to assist in planning and strengthening GAO review policies. Future GAO work will focus on changes occurring in the financial services industry, ways to improve food and agricultural programs, health care cost containment, improved social security services, and methods of reducing the tax shortfall which the Internal Revenue Service is presently experiencing. Finally, GAO reported on: (1) the progress it has made in developing a Consolidated Administrative Management Information System; and (2) work with the General Services Administration in GAO building renovation.
