Summary: The Comptroller General appeared before Congress to discuss some of the significant aspects of the work of the General Accounting Office during 1966.
The total impact of the Government's vast operations on the nation's economy is significant. In calendar year 1966, the Federal Government procured $77 billion worth of goods and services. This amounts to 10.4 percent of the Gross National Product, which was $739.5 in 1966. Federal procurement for defense purposes represented 8.1 percent, while nondefense purchases of goods and services equaled 2.3 percent of the GNP. The role of the GAO does not involve policy determinations as to the volume or purposes of Government spending. Our function is to evaluate the manner in which Government agencies carry out their authorized programs and to report our findings and recommendations to agencies and to Congress. Included in this duty is the responsibility for determining that financial transactions are carried out within the laws enacted by the Congress. It is our function also to prescribe proper principles and standards to be employed by executive agencies in accounting for the Government's financial and physical assets. Refunds, collections, and other measurable financial savings or additional revenues resulting from the recommendations of the General Accounting Office in fiscal year 1965 amounted to $186,780,000 and in fiscal year 1966, $130,637,000. Of the totals, actual refunds and collections made by or through our efforts during 1965 amounted to $24,949,000 and in 1966, $17,192,000. Substantial amounts of the savings or additional revenues are recurring in nature and will continue in future years. The principal area in which the greatest measurable financial savings were realized occurred in supply management of Government-owned materials. Audit and review work was performed by three of our operating divisions--the Civil Division, the Defense Division, and the International Division. The International division is our newest. Organized in 1963, it has the responsibility for audit of State Department programs and the oversea programs of all agencies and departments. The Civil Division is responsible for the audit of domestic programs and operations of all other agencies of Government except the Department of Defense; the Defense Division covers that department and the three military departments.
