This is the accessible text file for CG presentation number GAO-14- 180CG entitled 'GAO: Ensuring Accountability Through Financial Auditing and Much More' which was released on November 6, 2013. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. GAO: Ensuring Accountability Through Financial Auditing and Much More: The Andrew D. Braden Lecture: Case Western Reserve University, Cleveland, Ohio: November 1, 2013: Gene L. Dodaro: Comptroller General of the United States: GAO-14-180CG: Outline: I. The U.S. Government Accountability Office – What We Do. II. Our Impact: * Financial Benefits and Other Improvements; * Program and Operational Benefits: Public Safety and Security; * Action on Improper Payments; * The Long-Term Fiscal Outlook; * High Risk List; * Fragmentation, Overlap, and Duplication Reports; * Financial Management Over Time. III. GAO--Past and Present: * How We Got Here; * Where We’re Headed. IV. The Importance of Public Service. [End of outline] What We Do: Support Congressional Oversight: * Mission: Support the Congress in meeting its constitutional responsibilities and help improve the performance and ensure the accountability of the federal government for the benefit of the American people. Examine Federal Programs and Policies: * Work is based on congressional mandates and requests, and the Comptroller General’s statutory authority. * Strategic planning and ongoing dialogue with Congress inform work priorities. Provide Oversight—Insight—Foresight: * With core values: accountability, integrity, reliability. Improve Government Transparency: * Make government performance information more available. Examining Federal Programs and Policies: GAO issues hundreds of reports and testimonies annually. Broad range of federal programs and policies, domestic and international, such as: * Mortgage foreclosures; * The debt limit; * 401(K) plan fees; * Wall Street Reform Act status; * Drug shortages; * Postal operations; * Cybersecurity; * Climate adaptation; * Major weapon systems; * Cell phone safety; * Intelligent transportation systems; * Virtual currencies; * Health Care Act preparedness; * Haiti reconstruction; * Afghanistan drawdown; * College textbook costs. Improving Government Transparency: * Goal: Keeping policymakers and the public informed about government performance. * We present our findings to Congress, and almost all GAO work is made publicly available and posted online. * To reach wider audiences, GAO has an expanding presence on digital and social media, including: * Facebook; * Twitter; * Flickr; * YouTube; * Live streaming video web chats; * Podcasts; * iPhone and Android mobile applications. Our Impact: GAO Accomplishments in Fiscal Year 2012: Achievements included, among others: * 55.8 billion in financial benefits; * 1,440 improvements in broad program and operational areas across government; * 159 congressional testimonies; * More than 1,800 new recommendations made; * 80 percent of recommendations GAO made were implemented. Examples of Major Financial Benefits in Fiscal Year 2012: GAO recommendations implemented by Congress or federal agencies led to: * $12.4 billion from legislated reductions in payments to Medicare Advantage plans; * $8.0 billion from cancellation of NASA’s Constellation program; * $3.1 billion from cancellation of DOD plans to lengthen South Korea tours of duty; * $4.5 billion from elimination of Ethanol Excise Tax Credit for Corn. Examples of Program and Operational Benefits: Public Safety and Security: Strengthening the Food and Drug Administration’s (FDA) ability to protect public health by: * taking a more risk-based approach in selecting foreign drug establishments for inspections; * improving oversight of medical device recalls; * enhancing FDA’s response to drug shortages; Addressing weaknesses in how agencies create and use the terrorist watchlist. Action on Improper Payments: Since the 1990s, GAO has drawn attention to federal agency improper payments – payments that should not have been made or were made in an incorrect amount. For fiscal year 2012, reported government-wide improper payments were estimated at $108 billion and attributed to 75 programs at 18 agencies. GAO’s work led to legislation and Office of Management and Budget guidance to reduce improper payments. Agencies must now: * carry out improper payment risk assessments; * use statistically valid estimation methodologies; * implement appropriate preventive and detective controls. GAO continues to review agencies’ preventive strategies and conduct forensic audits, targeting audit selection based on program risk assessment. Much of GAO’s work focuses on Medicare and Medicaid programs, which accounted for 59 percent of government-wide improper payments in fiscal year 2012. Long-Term Fiscal Outlook: The Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012 help in the near term. Currently face competing demands: * Need to sustain economic growth; * Need for significant actions to change the long-term fiscal path. Long-term path is still unsustainable: * Imbalance between spending and revenues; * Spending side driven by demographics and health care cost growth. Figure: CBO's May 2013 Baseline: [Refer to PFD for image: vertical bar graph] Percentage of GDP: Actual: 2000: 2.4%; 2001: 1.3%; 2002: -1.5%; 2003: -3.4%; 2004: -3.5%; 2005: -2.6%; 2006: -1.9%; 2007: -1.2%; 2008: -3.2%; 2009: -10.1%; 2010: -9.0%; 2011: -8.7%; 2012: -7.0%. Projected: 2013: -4%; 2014: -3.4%; 2015: -2.1%; 2016: -2.3%; 2017: -2.4%; 2018: -2.6%; 2019: -3%; 2020: -3.2%; 2021: -3.3%; 2022: -3.6%; 2023: -3.5%. Source: GAO analysis of data from the Congressional Budget Office. [End of figure] The Budget Control Act: Focus on Discretionary Spending: Figure: Discretionary Spending as a Share of GDP, 1991-2021: [Refer to PDF for image: vertical bar graph] Percentage of GDP: 20-year historical average = 7.5 percent. Historical: 1991: 9.0%; 1992: 8.6%; 1993: 8.2%; 1994: 7.8%; 1995: 7.4%; 1996: 6.9%; 1997: 6.7%; 1998: 6.4%; 1999: 6.2%; 2000: 6.3%; 2001: 6.3%; 2002: 7.0%; 2003: 7.5%; 2004: 7.7%; 2005: 7.8%; 2006: 7.7%; 2007: 7.5%; 2008: 7.9%; 2009: 8.9%; 2010: 9.4%; 2011: 9.0%; 2012: 8.3%. CBO baseline: 2013: 7.0%; 2015: 6.7%; 2016: 6.4%; 2017: 6.2%; 2018: 6.0%; 2019: 5.9%; 2020: 5.8%; 2021: 5.6%. Source: GAO analysis of data from the Congressional Budget Office. [End of figure] Figure: Federal Debt Held by the Public as a Share of GDP (1797-2012): [Refer to PDF for image: line graph] Percentage of GDP: 1797: 16.5%; 1810: 6.2%; 1820: 8.3%; 1830: 3.2%; 1840: 0.3%; 1850: 2.3%; 1860: 1.9%; 1870: 27.9%; 1880: 18.4%; 1890: 7.8%; 1900: 6.6%; 1910: 3.7%; 1920: 27.3%; 1930: 16.5%; 1940: 42.7%; 1950: 73.7%; 1960: 44.8%; 1970: 28%; 1980: 26%; 1990: 42%; 2000: 35%; 2001: 32%; 2002: 34%; 2003: 36%; 2004: 37%; 2005: 37%; 2006: 37%; 2007: 36%; 2008: 40%; 2009: 53%; 2010: 62.9%; 2011: 67.8%; 2012: 72.6%. [End of figure] Figure: Deficits and Debt Held by the Public Under CBO’s May 2013 Baseline: [Refer to PDF for image: 2 combined vertical bar and line graphs] (percentage of GDP) 2012: Deficit: $1.087 trillion (7.0; Debt held by public: $11.28 trillion (72.55%). 2013: Deficit: $642 billion (4.0; Debt held by public: $12.036 trillion (75.07%). 2014: Deficit: $560 billion (3.4; Debt held by public: $12.685 trillion (76.20%). 2015: Deficit: $378 billion (2.1; Debt held by public: $13.156 trillion (74.61%). 2016: Deficit: $432 billion (2.3; Debt held by public: $13.666 trillion (72.73%). 2017: Deficit: $482 billion (2.4%); Debt held by public: $14.223 trillion (71.26%). 2018: Deficit: $542 billion (2.6%); Debt held by public: $14.827 trillion (70.80%). 2019: Deficit: $648 billion (3.0%); Debt held by public: $15.537 trillion (70.98%). 2020: Deficit: $733 billion (3.2%); Debt held by public: $16.330 trillion (71.45%). 2021: Deficit: $782 billion (3.3%); Debt held by public: $17.168 trillion (72.01%). 2022: Deficit: $889 billion (3.6%); Debt held by public: $18.118 trillion (72.89%). 2023: Deficit: $895 billion (3.4%); Debt held by public: $19.070 trillion (73.60%). [End of figure] Figure: Debt Held by the Public Under Two Fiscal Policy Simulations: Debt Held by the Public under Two Fiscal Policy Simulations: [Refer to PDF for image: multiple line graph] Percent of GDP: Historical high: 109% in 1946. Fiscal year: 2000; Baseline extended: 34.7%; Alternative: 34.7%. Fiscal year: 2001; Baseline extended: 32.5%; Alternative: 32.5%. Fiscal year: 2002; Baseline extended: 33.6%; Alternative: 33.6%. Fiscal year: 2003; Baseline extended: 35.6%; Alternative: 35.6%. Fiscal year: 2004; Baseline extended: 36.8%; Alternative: 36.8%. Fiscal year: 2005; Baseline extended: 36.9%; Alternative: 36.9%. Fiscal year: 2006; Baseline extended: 36.6%; Alternative: 36.6%. Fiscal year: 2007; Baseline extended: 36.3%; Alternative: 36.3%. Fiscal year: 2008; Baseline extended: 40.5%; Alternative: 40.5%. Fiscal year: 2009; Baseline extended: 54.1%; Alternative: 54.1%. Fiscal year: 2010; Baseline extended: 62.9%; Alternative: 62.9%. Fiscal year: 2011; Baseline extended: 67.8%; Alternative: 67.8%. Fiscal year: 2012; Baseline extended: 72.5%; Alternative: 72.5%. Fiscal year: 2013; Baseline extended: 76.3%; Alternative: 76.5%. Fiscal year: 2014; Baseline extended: 77.7%; Alternative: 79%. Fiscal year: 2015; Baseline extended: 76.3%; Alternative: 78.9%. Fiscal year: 2016; Baseline extended: 74.6%; Alternative: 78.2%. Fiscal year: 2017; Baseline extended: 73.4%; Alternative: 78%. Fiscal year: 2018; Baseline extended: 73.1%; Alternative: 78.9%. Fiscal year: 2019; Baseline extended: 73.5%; Alternative: 80.5%. Fiscal year: 2020; Baseline extended: 74.2%; Alternative: 82.3%. Fiscal year: 2021; Baseline extended: 75%; Alternative: 84.3%. Fiscal year: 2022; Baseline extended: 76%; Alternative: 86.5%. Fiscal year: 2023; Baseline extended: 77%; Alternative: 88.7%. Fiscal year: 2024; Baseline extended: 78.2%; Alternative: 91.7%. Fiscal year: 2025; Baseline extended: 80%; Alternative: 95.5%. Fiscal year: 2026; Baseline extended: 82.1%; Alternative: 100%. Fiscal year: 2027; Baseline extended: 84.7%; Alternative: 105.3%. Fiscal year: 2028; Baseline extended: 87.8%; Alternative: 111.4%. Fiscal year: 2029; Baseline extended: 91.1%; Alternative: 118.1%. Fiscal year: 2030; Baseline extended: 94.7%; Alternative: 125.3%. Fiscal year: 2031; Baseline extended: 98.4%; Alternative: 132.9%. Fiscal year: 2032; Baseline extended: 102.3%; Alternative: 140.9%. Fiscal year: 2033; Baseline extended: 106.3%; Alternative: 149.2%. Fiscal year: 2034; Baseline extended: 110.4%; Alternative: 157.7%. Fiscal year: 2035; Baseline extended: 114.7%; Alternative: 166.4%. Fiscal year: 2036; Baseline extended: 119.2%; Alternative: 175.5%. Fiscal year: 2037; Baseline extended: 123.9%; Alternative: 184.8%. Fiscal year: 2038; Baseline extended: 128.6%; Alternative: 194.3%. Fiscal year: 2039; Baseline extended: 133.4%. Fiscal year: 2040; Baseline extended: 138.4%. Fiscal year: 2041; Baseline extended: 143.3%. Fiscal year: 2042; Baseline extended: 148.4%. Fiscal year: 2043; Baseline extended: 153.5%. Fiscal year: 2044; Baseline extended: 158.9%. Fiscal year: 2045; Baseline extended: 164.3%. Fiscal year: 2046; Baseline extended: 169.9%. Fiscal year: 2047; Baseline extended: 175.7%. Fiscal year: 2048; Baseline extended: 181.5%. Fiscal year: 2049; Baseline extended: 187.5%. Fiscal year: 2050; Baseline extended: 193.5%. Fiscal year: 2051; Baseline extended: 199.6%. Source: GAO. Note: Data are from GAO's Spring 2013 simulations based on the Trustees' assumptions for Social Security and the Trustees' and the CMS Actuary's assumptions for Medicare. [End of figure] Figure: Daily Average Number of People Turning 65 Each Year: [Refer to PDF for image: vertical bar graph] Daily Average Number of People Turning 65: [Refer to PDF for image: vertical bar graph] Fiscal year: 2000; Daily average number of people turning 65: 5,500. Fiscal year: 2001; Daily average number of people turning 65: 5,500. Fiscal year: 2003; Daily average number of people turning 65: 5,500. Fiscal year: 2003; Daily average number of people turning 65: 5,800. Fiscal year: 2004; Daily average number of people turning 65: 5,800. Fiscal year: 2005; Daily average number of people turning 65: 6,000. Fiscal year: 2006; Daily average number of people turning 65: 6,200. Fiscal year: 2007; Daily average number of people turning 65: 6,700. Fiscal year: 2008; Daily average number of people turning 65: 7,200. Fiscal year: 2009; Daily average number of people turning 65: 7,200. Fiscal year: 2010; Daily average number of people turning 65: 7,200. [Baby boomers turning 65] Fiscal year: 2011; Daily average number of people turning 65: 7,600. Fiscal year: 2012; Daily average number of people turning 65: 9,100. Fiscal year: 2013; Daily average number of people turning 65: 9,200. Fiscal year: 2014; Daily average number of people turning 65: 9,100. Fiscal year: 2015; Daily average number of people turning 65: 9,400. Fiscal year: 2016; Daily average number of people turning 65: 9,400. Fiscal year: 2017; Daily average number of people turning 65: 9,700. Fiscal year: 2018; Daily average number of people turning 65: 10,000. Fiscal year: 2019; Daily average number of people turning 65: 10,200. Fiscal year: 2020; Daily average number of people turning 65: 10,700. Fiscal year: 2021; Daily average number of people turning 65: 10,700. Fiscal year: 2022; Daily average number of people turning 65: 11,000. Fiscal year: 2023; Daily average number of people turning 65: 11,200. Fiscal year: 2024; Daily average number of people turning 65: 11,200. Fiscal year: 2025; Daily average number of people turning 65: 11,600. Fiscal year: 2026; Daily average number of people turning 65: 11,400. Fiscal year: 2027; Daily average number of people turning 65: 11,400. Fiscal year: 2028; Daily average number of people turning 65: 11,300. Fiscal year: 2029; Daily average number of people turning 65: 11,400. Source: GAO analysis of U.S. Census Bureau data. Note: Based on years ending July 1. [End of figure] Potential Fiscal Outcomes: Figure: Revenues and Composition of Spending in the Alternative Simulation: [Refer to PDF for image: combination stacked vertical bar and line graph] [Refer to PDF for image: stacked vertical bar and line graph] Percentage of GDP: Fiscal year: 2010; Net interest: 1.4%; Social Security: 4.9%; Medicare, Medicaid, CHIP, and exchange subsidies: 5.1%; All other spending: 12.8%; Revenue: 15.1%. Fiscal year: 22020; Net interest: 2.9%; Social Security: 5.2%; Medicare, Medicaid, CHIP, and exchange subsidies: 5.8%; All other spending: 8.3%; Revenue: 18.7%. Fiscal year: 22030; Net interest: 4.6%; Social Security: 6.2%; Medicare, Medicaid, CHIP, and exchange subsidies: 7.4%; All other spending: 7.9%; Revenue: 19.1%. Fiscal year: 22040; Net interest: 6.7%; Social Security: 6.3%; Medicare, Medicaid, CHIP, and exchange subsidies: 8.4%; All other spending: 7.9%; Revenue: 19.1%. Source: GAO. Notes: Data are from GAO's Spring 2013 simulations based on the Trustees' assumptions for Social Security and Medicare. [End of figure] Our Impact: Debt Limit: What it Is and What it Isn’t: Debt limit does not limit the ability to enact spending and tax laws; not a limit on running deficits or incurring obligations. Debt limit is an after-the-fact measure: it imposes a limit on ability to pay obligations already incurred. GAO analysis shows delays in raising debt limit have led to higher borrowing costs; delays in 2011—-$1.3 billion increase for the year. Treasury uses extraordinary actions to manage near the debt limit: where provided for under law, principal and interest is restored; GAO tests this as part of its routine annual audit of federal debt. We have suggested linking decisions about the debt limit with spending and revenue decisions that create debt—at the time those decisions are made. Putting Every Tax Dollar to Good Use: In a time of budgetary constraints, GAO is providing Congress and the executive branch with information and analyses to help establish priorities, improve government efficiency, and link resources with results. Bodies of GAO work focus specifically on efficiencies, cost savings, and revenue enhancement, such as: * High Risk List; * Overlap and Duplication Reports; * Government Performance and Results Act (GPRA) and government financial reform; * Strategies to reduce the tax gap. Examples of High Risk Areas: * Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks (new in 2013); * Mitigating Gaps in Weather Satellite Data (new in 2013); * Funding the Nation’s Surface Transportation System; * Restructuring the U.S. Postal Service to Achieve Sustainable Financial Viability; * Protecting Public Health through Enhanced Oversight of Medical Products; * Modernizing the U.S. Financial Regulatory System and Federal Role in Housing Finance; * Enforcement of Tax Laws. Mandate for GAO Duplication Reviews: Requirement Enacted in 2010. Reports issued in 2011, 2012, and 2013: identified 162 areas and about 380 suggested actions for executive branch agencies and Congress. * Collectively, these reports show that the government could save tens of billions of dollars by addressing the issues we identified. 2013 report issued in April. * Identified 31 new issues: 17 areas of fragmentation, overlap, and duplication and 14 areas of potential cost savings or revenue enhancement. * Described status of issues identified in 2011 and 2012 reports and introduced GAO’s Action Tracker. We will continue to look for new or emerging instances of fragmentation, overlap, and duplication, as well as cost savings and revenue enhancement opportunities. Examples of New 2013 Annual Duplication Report Areas: Areas of Fragmentation, Overlap, or Duplication: * Fragmentation in DOD’s acquisition of combat uniforms. * Duplicative federal geospatial investments. * Overlapping Department of Homeland Security research and development activities. * Overlap and potential duplication in the delivery of joint veterans and defense health care services. * Duplication among federal efforts to inspect catfish. Cost Saving or Revenue Enhancement Opportunities: * Reducing the cost of the Federal Crop Insurance program by reducing subsidies. * Cancelling the Medicare Advantage Quality Bonus Payment Demonstration. * Reducing improper Medicaid Supplemental Payments through enhanced oversight. * Reducing the cost of the government satellite program through innovative approaches. GAO’s Impact on Financial Management Over Time: Our Financial Management and Assurance Team (FMA): * More than 200 staff. * Areas of expertise: financial audits, accounting and auditing standards, and financial analysis. GAO is required to audit the U.S. government’s annual consolidated financial statements (CFS), which are prepared by Treasury in coordination with OMB. * First audit performed on the fiscal year 1997 CFS * Past 16 audits, GAO has been prevented from expressing opinions on the accrual-based Consolidated Financial Statements, primarily due to limitations relating to certain long-term material weaknesses in internal control over financial reporting. * GAO was prevented from expressing opinions on the 2012 Statement of Social Insurance and Statement of Social Insurance Amounts because of significant uncertainties primarily related to the achievement of projected reductions in Medicare cost growth reflected in the statements. * GAO reported that material weaknesses resulted in ineffective internal control over financial reporting for fiscal year 2012. * GAO reported that testing of compliance with selected provisions of significant laws and regulations for fiscal year 2012 were limited by the material weaknesses and other scope limitations. U.S. Government’s Consolidated Financial Statements – Progress in CFO Act Agencies’ Audited Financial Statements: 21 of the 24 Chief Financial Officer (CFO) Act agencies were able to attain unqualified audit opinions on their fiscal year 2012 accrual- based financial statements. In contrast, only six CFO Act agencies received unqualified opinions for fiscal year 1996. GAO also conducts other financial audits. Examples include: * IRS’s Financial Statements; * Bureau of the Public Debt’s (now the Bureau of the Fiscal Service) Schedule of Federal Debt; * Office of Financial Stability’s (Troubled Asset Relief Program) Financial Statements; * SEC’s Financial Statements; * Federal Housing Finance Agency’s Financial Statements; * Consumer Financial Protection Bureau’s Financial Statements; * FDIC’s Deposit Insurance Fund and Federal Savings and Loan Insurance Corporation Resolution Fund. Importance of Financial Statement Audits: The need for reliable, high-quality financial information has never been greater. Financial statement audits are not just about numbers, but also provide a framework for: * Assessing and improving internal controls and compliance with laws and regulations. * Developing effective, integrated financial management systems directed at providing reliable, useful, and timely information for decision making. * Demonstrating stewardship and accountability over federal programs and resources. * Enabling a greater focus on managing the costs of government. Contributed to enactment of key financial management legislation: * Chief Financial Officer’s Act (1990); * Government Management Reform Act (1994); * Accountability of Tax Dollars Act (2002); * Federal Financial Management Improvement Act (1996). Identified issues leading to enactment of legislation related to improper payments; Identified significant information security weaknesses, contributing to the passage of the Federal Information Security Management Act (2002); Developed federal financial audit and information security audit methodologies; Contributed to the establishment of the federal financial accounting standards, through support of the Federal Accounting Standards Advisory Board. Auditing Standards – “Yellow Book”: GAO has a statutory role in issuing government auditing standards. Known as Government Auditing Standards, or the Yellow Book, GAO regularly revises those standards. Latest update came out at the end of 2011. The Yellow Book provides: * Broad statements of auditors’ responsibilities; * An overall framework for ensuring that auditors have the competence, integrity, objectivity, and independence in planning, conducting, and reporting on their work; * Standards for financial audits and attestation engagements that incorporate and augment the AICPA standards (SASs and SSAEs); * Stand-alone standards for performance audits. GAO staff also serves on various boards, such as the AICPA Auditing Standards Board and the Federal Accounting Standards Advisory Board, that are involved in standard setting. Internal Control Standards –“Green Book”: Sound internal control is vital to: * Safeguarding government assets. * Carrying out government programs and activities effectively and efficiently. * Uncovering mistakes and fraud. Current version issued in 1999: * GAO is revising the Green Book to reflect changing environment and new COSO framework. * Exposure draft recently issued for public comment. How We Got Here: GAO’s Founding: The Budget and Accounting Act of 1921 established GAO as an independent agency. GAO’s Evolution: * Initial focus was on voucher auditing. * After World War II, a turn to financial audits. * Program evaluations began in the 1960s. * In the 1980s, established a team to investigate allegations of possible criminal and civil misconduct. Bringing GAO Into the Present: * In 2004, GAO changed its name from the General Accounting Office to the Government Accountability Office to reflect its modern role in government. * Accounting is still part of our portfolio, but our new name better captures who we are and what we do today. * GAO’s diverse staff of just under 2,900 employees now includes accountants, economists, scientists, public policy analysts, attorneys, and computer experts. We also have issue-area experts in subjects ranging from foreign policy to health care. * GAO is headquartered in Washington, DC, and has 11 offices across the country. Where We’re Headed: Strategic Plan for Serving Congress – A Roadmap for the Future: * GAO produces a 5-year plan to ensure the agency is able to anticipate and respond to congressional needs. The next one will be issued in 2014. * The current Strategic Plan highlights eight broad trends that will guide GAO’s future work: (1) national security threats; (2) fiscal sustainability and debt challenges; (3) economic recovery and restored job growth; (4) global interdependence; (5) science and technology; (6) networks and virtualization; (7) shifting roles of government; and; (8) demographic and societal change. New Roles for the Agency: In recent years, GAO has played a key role overseeing spending under the Troubled Asset Relief Program and the Stimulus Act. Going forward: * new and ongoing responsibilities regarding the Federal Reserve. * cost/benefit analysis of financial services regulations. * appointments to various health care advisory commissions. * technology assessments. Where We’re Headed: GAO’s Technology Assessment Collection: Cutting-edge Ongoing Work in Science and Technology: * A Comptroller General Forum on nanomanufacturing. * A technology assessment on freshwater resource conservation technologies for the energy sector. * Evaluations of technology development practices within major departments and agencies, such as advanced imaging screening systems, large-format next generation radiation detection systems, and biosecurity technologies. * A Technology Readiness Assessment Guide, the third in GAO’s guide series to help federal agencies manage their programs. Shaping the GAO of the Future: To ensure GAO remains an employer of choice, GAO is committed to: * A diverse workforce and an inclusive work environment. * A program of continuous improvement. * Continuing to enhance our progressive work environment. * Offering a wide range of benefits, such as a student loan repayment program. Working Across Borders: The International Association of Supreme Audit Institutions (INTOSAI): Represents the external government audit community. * More than 190 members. Objectives: * promote the development and transfer of knowledge; * improve government auditing worldwide; and, * enhance professional capacities, standing and influence of member SAIs in their respective countries. GAO actively participates in INTOSAI leadership positions and plays an important role in developing international auditing standards and related guidance. INTOSAI: Provides members a framework for public sector accounting world-wide: * International standards, guidelines and best practices for financial, compliance and performance audits. International Development Initiative (IDI): assists implementation * Includes audit tools, training, a web-based knowledge sharing forum. Donor Cooperation Initiative: promotes integrity and good government principles through support for developing country national audit offices Specific INTOSAI projects include: * Working Group on Financial Modernization and Regulatory Reform. * Taskforce on Strategic Planning. * Development of a Performance Measurement Framework tool. The Importance of Public Service: The Challenges Our Nation Faces: * Government needs talented people to help tackle the challenges we face. * Large numbers of federal retirements expected in the coming years. Figure: Agencies are Facing a Retirement Wave: [Refer to PDF for image: vertical bar graph] Percentage eligible to retire by 2016: Governmentwide eligibility rate is 29.6%. [Refer to PDF for image: vertical bar graph] Governmentwide retirement eligibility rate is 29.6%. Agency: Agriculture; Percentage eligible to retire by 2016: 33.8%. Agency: Agency for International Development; Percentage eligible to retire by 2016: 34.4%. Agency: Commerce; Percentage eligible to retire by 2016: 35.2%. Agency: Defense; Percentage eligible to retire by 2016: 27.7%. Agency: Education; Percentage eligible to retire by 2016: 33.2%. Agency: Energy; Percentage eligible to retire by 2016: 34.9%. Agency: Environmental Protection Agency; Percentage eligible to retire by 2016: 34.9%. Agency: General Services Administration; Percentage eligible to retire by 2016: 35.3%. Agency: Health and Human Services; Percentage eligible to retire by 2016: 29.9%. Agency: Homeland Security; Percentage eligible to retire by 2016: 19.6%. Agency: Housing and Urban Development; Percentage eligible to retire by 2016: 41.7%. Agency: Interior; Percentage eligible to retire by 2016: 35.9%. Agency: Justice; Percentage eligible to retire by 2016: 28.6%. Agency: Labor; Percentage eligible to retire by 2016: 33.5%. Agency: NASA; Percentage eligible to retire by 2016: 33.2%. Agency: Nuclear Regulatory Commission; Percentage eligible to retire by 2016: 33.9%. Agency: National Science Foundation; Percentage eligible to retire by 2016: 37.7%. Agency: Office of Personnel Management; Percentage eligible to retire by 2016: 37.2%. Agency: Small Business Administration; Percentage eligible to retire by 2016: 44.1%. Agency: Social Security Administration; Percentage eligible to retire by 2016: 31.7%. Agency: State; Percentage eligible to retire by 2016: 29.9%. Agency: Transportation; Percentage eligible to retire by 2016: 39.1%. Agency: Treasury; Percentage eligible to retire by 2016: 33.8%. Agency: Veteran's Affairs; Percentage eligible to retire by 2016: 31.3%. Agency: All Other Agencies; Percentage eligible to retire by 2016: 31.5%. Source: GAO analysis of Office of Personnel Management data. [End of figure] The Rewards of Public Service: * The public sector offers an opportunity to do important, challenging work. * It’s a chance to learn and develop professionally while making a difference for our country. * As a career public servant, I know the many contributions that federal employees can and do make. * At the end of the day, it’s knowing you’ve been of service to others. [hyperlink, http://www.gao.gov] [End of presentation]