Summary: GAO discussed major management issues facing the federal government. GAO noted that some progress has been made, but the management structure and systems supporting leaders are still far from what they need to be. Recent GAO management reviews at the Departments of Labor and Justice and the Defense Logistics Agency provided evidence of improvement efforts within individual departments. GAO believes that: (1) there is an urgent need for comprehensive reform of the federal government's financial management systems; (2) the government's antiquated processes often do not provide the timely and reliable program and financial information that policymakers and managers need; (3) some state and local governments, faced with major fiscal problems, have already undertaken comprehensive reform of their financial management systems, and many states have more modern systems than the federal government's, which has not fundamentally changed despite major opportunities for improvements with advances in computer and telecommunication technology; (4) at the end of 1984, federal agencies reported that over half of the government's 427 accounting systems were either not in conformance, or not known to be in conformance, with appropriate accounting principles and standards; and (5) because of inadequate control, the federal government continues to experience overcharges for goods and services, cost overruns, purchases of faulty equipment, and other problems, while budget deficits escalate. GAO also believes that the key elements for productivity improvement include: (1) sustaining top management interest; (2) fostering employee participation; (3) measuring progress against goals; and (4) holding managers accountable for improvements.
