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Governance, Leadership and Accountability: 

United Nations: 
Office of Internal Oversight Services Symposium: 
United Nations Headquarters, New York City: 
September 10, 2004: 

The Honorable David M. Walker: 
Comptroller General of the United States: 

Three Key Elements for Success: 

Incentives: 
Transparency: 
Accountability: 

Contributing Elements: 
Government Examples: 

Incentives: 

* Rule of law; 
* Civil Service; 
* Checks and balances. 

Transparency: 

* Financial disclosure; 
* Due process; 
* Free press. 

Accountability: 

* Enforcement of laws; 
* Oversight; 
* Independent judiciary. 

Contributing Elements: 
SAI Examples: 

Incentives: 

* Independence; 
* Resources. 

Transparency: 

* Protocols; 
* Public reporting. 

Accountability:

* Enforcement of access rights; 
* Peer review. 

Possible SAI Roles: 

[See PDF for image] – graphic text

Pyramid with 5 items, from bottom to top: 

Combating Corruption; 
Assuring Accountability; 
Enhancing Economy Efficiency, Transparency and Effectiveness; 
Increasing Insight; 
Facilitating Foresight. 

[End of figure]

GAO’s Strategic Plan: 

[See PDF for image] - graphic text: 

Serving the Congress and the Nation: GAO's Strategic Plan Framework: 

Mission: 

GAO exists to support the Congress in meeting its constitutional 
responsibilities and to help improve the performance and ensure the 
accountability of the federal government for the benefit of the 
American people.

Themes: 

* Long-term Fiscal Imbalance; 

* National Security; 

* Global interdependence; 

* Changing Economy; 

* Demographics; 

* Science and Technology; 

* Quality of Life; 

* Governance; 

Goals and Objectives:

Provide Timely, Quality Service to the Congress and the Federal 
Government to:

Address Current and Emerging Challenges to the Well-Being and 
Financial Security of the American People related to:

* Health care needs and financing; 

* Education and protection of children; 

* Work opportunities and worker protection; 

* Retirement income security; 

* Effective system of justice; 

* Viable communities; 

* Natural resources use and environmental protection; 

* Physical infrastructure; 

Respond to Changing Security Threats and the Challenges of Global 
Interdependence involving:

* Emerging threats; 

* Military capabilities and readiness; 

* Advancement of U.S. interests; 

* Global market forces; 

Help Transform the Federal Government’s Role and How It Does 
Business to Meet 21st Century Challenges by assessing:

* Roles in achieving federal objectives; 

* Government transformation; 

* Key management challenges and program risks; 

* Fiscal position and financing of the government; 

Maximize the Value of GAO by Being a Model Federal Agency and a 
World-Class Professional Services Organization in the areas of:

* Client and customer service; 

* Strategic leadership; 

* Institutional knowledge and experience; 

* Process improvement; 

* Employer of choice; 

Core Values: 

* Accountability; 

* Integrity; 

* Reliability; 

Source: GAO.

GAO Strategic Plan 2004-2009.

[End of strategic plan framework] 

Selected Key Concepts for GAO: 

MISSION: Improve performance and assure accountability, both for today 
and tomorrow; 
MEANS: Oversight, insight, and foresight; 
METHODS: Leading by example and promoting best practices: 
* Observing protocols; 
* Employing a constructive engagement approach with entities we audit 
and evaluate; 
* Partnering with fellow accountability and selected “good government” 
organizations. 

Four Key Success Elements: 
* Results; 
* Clients; 
* People; 
* Partnerships. 

Annual Performance Measures (1998 and 2003): 

Performance measure: Financial benefits (billions); 
Actual: FY 1998: $19.7; 
Actual: FY 2003: $35.4.

Performance measure: Other benefits; 
Actual: FY 1998: 537; 
Actual: FY 2003: 1043.

Performance measure: Past recommendations implemented; 
Actual: FY 1998: 69%; 
Actual: FY 2003: 82%.

Performance measure: Return on investment (ROI); 
Actual: FY 1998: 58:1; 
Actual: FY 2003: 78:1.

Performance measure: Financial benefits per employee (millions); 
Actual: FY 1998: $6.1; 
Actual: FY 2003: $10.8.

Performance measure: Timeliness; 
Actual: FY 1998: 93%; 
Actual: FY 2003: 97%.

[End of table]

Accountability Partnerships to Address Common Challenges: 

* Partnerships are a key enabler of change and help to leverage 
available resources: 

* Opportunities for collaboration/cooperation: 
- Professional Standards; 
- Methodologies; 
- Best practices; 
- Lessons learned; 
- Coordinated engagements. 

Key GAO Partnerships Evolving Challenges for Governments and SAIs: 

GAO: 

Partnerships: 

* INTOSAI; 
* National Audit Forum; 
* Good Government Organizations; 
* Professional Associations; 
* GAO Advisors Group; 
 
Evolving Challenges for Governments and SAIs: 

* Public expectations of government are changing:
– Zero tolerance for corruption; 
– Desire for enhanced results and improved responsiveness; 
– Selected trends and challenges that have no boundaries; 
* Long-Term Fiscal Imbalances; 
* Security Concerns; 
* Global Interdependence; 
* Changing Economy; 
* Demographics; 
* Science and Technology; 
* Quality of Life; 
* Governance. 

We Need a Multi-Faceted Approach to Close the Long-term Fiscal Gap: 

* Policy: 
– Restructure existing entitlement programs; 
– Reexamine the base of discretionary and other spending; 
– Review and revise our tax policy and enforcement programs; 

* Operations: 
– Reassess and revise how the government does business (e.g., 
management, planning and operational issues; 
– Consider who should provide government services (e.g., sourcing 
strategy); 

Transformation: 

Webster’s definition: An act, process, or instance of change in 
structure appearance, or character. 

A conversion, revolution, makeover, alteration, or renovation. 

Transformation is about CREATING the future rather than PERFECTING the 
past. Effective HUMAN CAPITAL strategy is key to any SUCCESSFUL 
transformation effort. 

In today’s world, organizations that do not change may find themselves 
headed for extinction. At the same time, every organization should 
have a set of core values that can stand the test of time. 

Selected GAO-Related Activities: 

* Speeches and Outreach Efforts; 
* Financial Literacy Efforts; 
* CG Forums; 
* High Risk Update Report; 
* 21st Century Challenges Report; 
* Various Congressional Consultation and Assistance Efforts; 
* Public Education Assistance; 
* Constructive engagement efforts (e.g., best practices guides, self 
assessment tools, benchmarking statistics); 
* Leading by example; 

GAO’s High Risk List

High Risk Areas: Designated High Risk Addressing Challenges in Broad-
based Transformations: 

Protecting Information Systems Supporting the Federal Government and 
The Nation’s Critical Infrastructures; 
Designated High Risk: 1997; 

Strategic Human Capital Management*; 
Designated High Risk: 2001; 

U.S. Postal Service Transformation Efforts and Long-Term Outlook*; 
Designated High Risk: 2001; 

Implementing and Transforming the New Department of Homeland Security; 
Designated High Risk: 2003; 

Modernizing Federal Disability Programs*; 
Designated High Risk: 2003; 

Federal Real Property*; 
Designated High Risk: 2003; 

Ensuring Major Technology Investments Improve Services FAA Air Traffic 
Control Modernization; 
Designated High Risk: 1995; 

IRS Business Systems Modernization; 
Designated High Risk: 1995; 

DOD Systems Modernization; 
Designated High Risk: 1995; 

Providing Basic Financial Accountability DOD Financial Management; 
Designated High Risk: 1995; 

IRS Financial Management; 
Designated High Risk: 1995; 

Forest Service Financial Management; 
Designated High Risk: 1999; 

FAA Financial Management; 
Designated High Risk: 1999; 

Reducing Inordinate Program Management Risks Medicare Program*; 
Designated High Risk: 1990; 

Collection of Unpaid Taxes; 
Designated High Risk: 1990; 

DOD Inventory Management; 
Designated High Risk: 1990; 

Student Financial Aid Programs; 
Designated High Risk: 1990; 

HUD Single-Family Mortgage Insurance and Rental Assistance Programs; 
Designated High Risk: 1994; 

Earned Income Credit Noncompliance; 
Designated High Risk: 1995; 

DOD Support Infrastructure Management; 
Designated High Risk: 1997; 

Medicaid Program*; 
Designated High Risk: 2003; 

Pension Benefit Guaranty Corporation Single-Employer Insurance 
Program*; 
Designated High Risk: 2003; 

Managing Large Procurement Operations More Efficiently DOD Weapon 
Systems Acquisition; 
Designated High Risk: 1990; 

Department of Energy Contract Management; 
Designated High Risk: 1990; 

NASA Contract Management; 
Designated High Risk: 1990; 

DOD Contract Management; 
Designated High Risk: 1992. 

*Additional authorizing legislation is likely to be required as one 
element of addressing this high risk area.

[End of table]

Transformation: A New Model for Government Organizations: 
Government organizations will need to:

* Become less hierarchical, process-oriented, stovepiped, and inwardly 
focused.
* Become more partnership-based, results-oriented, integrated, and 
externally focused.
* Achieve a better balance between results, customer, and employee 
focus.
* Work better with other governmental organizations, non-governmental 
organizations, and the private sector, both domestically and 
internationally, to achieve results.

Key Transformation Elements
* People; 
* Process; 
* Partnerships; 
* Technology; 
* Environment; 

The most important of the five is PEOPLE — an agency’s human capital.

GAO: Leading by Example: 

* Mission and vision clarification; 
* Core values: accountability, integrity, reliability; 
* Strategic planning;  
* Organizational realignment; 
* Definitions of success; 
* Multi-tasking and matrix management; 
* Procurement, contracting, and acquisition; 
* Human capital; 
* Knowledge management; 
* Financial management; 
* Client service/external agency relations and protocols; 
* Enhanced products and services; 
* Constructive engagement with agencies; 
* Information technology; 
* Partnering with other accountability and “good government” 
organizations; 

Accounting Profession Transformation Challenges: 

The collapse of Enron, Arthur Andersen and other recent events in 
the private sector have served to increase the visibility of and 
concerns relating to a range of issues, including:

* The effectiveness of current regulatory, oversight and 
enforcement activities.
* The adequacy of the current accounting and reporting model; 
* The independence and effectiveness of auditors; 
* The adequacy of existing pension rules; 
* The nature and reasonableness of executive compensation; 
* The roles of other key players (e.g., management, boards, analysts, 
attorneys, investment advisors); 
* The appropriateness of current corporate governance structures; 

* Definitive actions are needed by a range of parties to address 
legitimate concerns, better protect the public interest, and restore 
investor confidence (e.g., Congress, stock exchanges, management, 
boards, CPAs); 

* Government has both the need and the opportunity to lead by example 
in some important areas; 

Selected Government Accountability Issues Leading by Example: 

Definition of success in financial management: 

* Clean opinion on financial statements; 
* No major control weaknesses; 
* No major compliance issues; 
* Systems that produce timely, accurate, and useful financial and 
management information. 

Scope of audit: 

* Internal controls (current); 
* Compliance matters (current); 
* Performance and projection information (future). 

Additional issues: 

* Strengthen the capacity and independence of standard setters (e.g., 
FASAB); 
* Accelerated financial reporting; 
* Audit/financial management committees; 
* Auditor independence; 
* Established the audit standards coordinating forum.

GAO’s Work to Modernize the Accountability Profession: 

 GAO is actively working to modernize and transform the accountability 
profession both inside the government and in the private sector, and 
to lead by example in this area. 
– opinion on system of internal control; 
– Independence Standard issued in 2002; 
– assistance to the Congress in evaluating accountability profession 
issues and needed reforms prior to the Sarbanes-Oxley Act; 
– 2003 revision of Government Auditing Standards; 
– creation of the U.S Auditing Standards Coordinating Forum; 
– coordination with accountability organizations around the world; 
– comment on proposed standards; 
– monitor implementation of the Sarbanes-Oxley Act; 
– Sarbanes-Oxley studies on accounting firm consolidation from Big 8 to 
Big 4 and on mandatory audit firm rotation; 
– definition of success in financial management: clean opinion, no 
major weaknesses in controls or compliance, and financial systems that 
produce timely, accurate and useful information for management;  
– enhance federal financial management, reporting, and accountability; 

INTOSAI STRATEGIC PLAN FRAMEWORK 2005-2010:

MISSION:

INTOSAI is an autonomous. independent, professional, and nonpolitical 
organization established to provide mutual support; foster the exchange 
of ideas, knowledge, and experiences: act as a recognized voice of 
supreme audit institutions (SAIS) within the international community; 
and promote continuous improvement among diverse member SAIs.

VISION:

Promote good government by enabling SAIs to help their respective 
governments improve performance, enhance transparency, ensure 
accountability, maintain credibility, fight corruption, promote public 
trust, and foster the efficient and effective receipt and use of public 
resources for the benefit of their peoples.

STRATEGIC GOALS:

* Goal 1: Accountability and Professional Standards:

Promote strong, independent, and multidisciplinary SAIs by (1) 
encouraging SAIs to lead by example and (2) contributing to the 
development and adoption of appropriate and effective professional 
standards.

* Goal 2: Institutional Capacity Building:

Build the capabilities and professional capacities of SAIs through 
training, technical assistance. and other development activities.

* Goal 3. Knowledge Sharing and Knowledge Services:

Encourage SAI cooperation. collaboration and continuous improvement 
through knowledge sharing, including providing benchmarks, conducting 
host practice studies, and perfonning research on issues of mutual 
interest and concern.

* Goal 4: model international Organization:

Organize and govern INTOSAI in ways which promote economical efficient. 
and effective working practices. timely decision-making, and effective 
governance practices while maintaining due regard for regional balance 
and the different models and approaches of member SAIs.

CORE VALUES: 

Independence: 
Integrity: 
Progessional: 
Credibility: 
Inclusiveness: 
Cooperation: 
Innovation:

[End of INTOSAI Strategic Plan Framework]

Three Key Ingredients Needed for These Challenging and Changing Times: 
* Leadership; 
* Integrity; 
* Innovation; 

[End of slide presentation]