What Is the Government Accountability Office (GAO)?
Let me explain to you what the Government Accountability Office, or GAO, really is. It's an independent legislative agency that keeps a close eye on government spending and operations through monitoring and audits. I see it as the entity that scrutinizes how taxpayer dollars are used and offers straightforward recommendations on saving money or running things more responsibly from a fiscal standpoint. Founded back in 1921, people often refer to the GAO as the congressional watchdog. As a non-partisan outfit, it focuses on helping the government spot efficiencies in spending, which is why it essentially works for Congress.
Key Takeaways
Here's what you need to grasp about the GAO: it's an independent, non-partisan agency dedicated to monitoring and reviewing government spending. It supplies Congress and federal agencies with objective, reliable information to help save money and boost efficiency. The GAO tracks how taxpayer dollars are utilized and delivers reports along with recommendations to the government. Additionally, it's in charge of setting standards that streamline government audits and reviews. At the top, the comptroller general heads the GAO, appointed by the president for a 15-year term.
Understanding the Government Accountability Office (GAO)
To understand the GAO fully, know that it's an independent government agency responsible for tracking taxpayer dollar usage across the legislative and executive branches, reporting directly to Congress. In simple terms, it functions as a watchdog over government spending. It examines operating results, financial positions, and accounting systems of various agencies, performing routine audits on all government branches.
The main goals of the GAO include conducting audits of federal agencies to confirm proper fund allocation and prevent misappropriation—for instance, reviewing Pentagon spending on personnel and weapons. It also assesses government programs and policies to check if they're meeting their original purposes. Furthermore, it investigates claims of illegal government activities and issues legal opinions on proposed rules for other agencies.
On the legislative side, the GAO establishes standards known as the Yellow Book, or Generally Accepted Government Auditing Standards, which help standardize the auditing and reporting process. The agency is led by the comptroller general, who serves a 15-year term and is appointed by the president from a bipartisan congressional list.
Important Note on Leadership
You should note that Gene L. Dodaro stepped in as acting comptroller general in 2008 after David Walker's resignation, and he was officially confirmed by the Senate for his full 15-year term in 2010.
Special Considerations
The GAO holds broad authority to examine the Federal Reserve's functions and operations, as the U.S. central bank. This includes reviewing emergency lending programs post the 2007-2008 financial crisis and housing market collapse that triggered the Great Recession. However, it lacks the power to scrutinize individual Federal Reserve meetings or monetary policy decisions. As of May 2021, the Federal Reserve had implemented five out of eight priority recommendations from the GAO.
History of the Government Accountability Office (GAO)
The history of the GAO ties back to sharp rises in U.S. government spending and debt during World War I, which created a need for a formal system to review and control expenditures. This led to the Budget and Accounting Act of 1921, establishing the General Accounting Office to take over budget, accounting, and auditing duties from the U.S. Treasury. The act also mandated that the president prepare an annual federal budget.
In 2004, the name changed to Government Accountability Office following the GAO Human Capital Reform Act. Government programs and spending surged in the 1930s due to Roosevelt's New Deal in response to the Great Depression, elevating the GAO's role from just ensuring proper payments to greater importance. By the end of World War II in 1945, with another spike in spending, the GAO started auditing agencies to verify they operated as intended.
By the 1970s, the GAO's scope grew to include reviews of agency work in consumer protection, the environment, and social welfare. Initially staffed only by accountants, the personnel expanded to include scientists, healthcare professionals, and computer scientists. Today, the agency continues to assess government spending, such as the $4.8 trillion allocated for the COVID-19 pandemic.
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