What is the Government Accountability Office (GAO)?
The independent and legislative GAO analyzes and audits government expenditures and operations. The institution analyzes government spending and suggests ways to cut costs or be more economically responsible. Founded in 1921, GAO is the congressional watchdog. Working for Congress, this non-partisan institution identifies budget efficiencies for the government.
Understanding the GAO
The GAO is an independent body that monitors the use of public funds by the legislative and executive branches and reports to Congress. The GAO monitors federal expenditures for Congress. The agency oversees government agencies’ performance, finances, and accounting systems, including routine audits of all branches.
GAO’s main aims are:
- Audit federal government entities like the Pentagon, particularly U.S. military spending on personnel and weapons equipment, to guarantee fiscal responsibility.
- Review them to assess if government programs and policies are meeting their aims.
- Investigate government misconduct and rule on suggested rules for other agencies.
Establishing standards, or the Yellow Book is another legislative duty. These principles, often known as the Generally Accepted Government Auditing Standards, expedite government audits and reporting.
The comptroller general has overseen the department for 15 years. The president chooses from bipartisan congressional suggestions.
When David Walker resigned in 2008, Gene L. Dodaro became acting comptroller general. Dodaro received Senate confirmation for his 15-year tenure in 2010.
Special Considerations
The GAO has extensive power to probe the Federal Reserve and the U.S. central bank.
The organization evaluates emergency financing schemes implemented during the housing market collapse and the 2007–2008 financial crisis, which contributed to the Great Recession. However, it lacks the authority to examine Fed meetings and monetary policy decisions.
The Federal Reserve adopted five of eight GAO priority recommendations by May 2021.
Government Accountability Office history
The U.S. government spent and borrowed much throughout WWI. The need for a structured mechanism to examine, monitor, and manage government expenditures arose. The Budget and Accounting Act of 1921 created the General Accounting Office, taking over budget, accounting, and auditing duties from the U.S. Treasury.
The statute mandated the president to create an annual federal budget. The GAO Human Capital Reform Act of 2004 renamed the agency the Government Accountability Office.
In reaction to the Great Depression, President Roosevelt’s New Deal social initiatives led to significant government programs and expenditure growth in the 1930s. GAO’s role, which first centered on payment accuracy, increased. Federal expenditure rose again after World War II, and the GAO began reviewing federal agencies to ensure they served their mission.
By the 1970s, the GAO had expanded to assess agency consumer protection, environmental, and social welfare programs. The agency solely employed accountants. Soon, scientists, care experts, and computer scientists joined.
The agency is reviewing government spending, including how it allocated $4.8 trillion for the COVID-19 pandemic.
Conclusion
- The impartial, non-partisan Government Accountability Office investigates and assesses government spending.
- Congress and federal agencies receive objective, trustworthy information to save money and improve efficiency.
- The GAO reports and advises the government on taxpayer spending.
- The GAO also sets guidelines to expedite federal audits and reviews.
- The president appoints the comptroller general to lead the GAO for 15 years.
