This is the accessible text file for GAO report number GAO-11-3SP 
entitled 'Summary of GAO's Performance and Financial Information, 
Fiscal Year 2010' which was released on January 24, 2011. 

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. The published product may be 
reproduced and distributed in its entirety without further permission 
from GAO. However, 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-11-3SP: 

Front cover: 

Serving The Congress And The Nation: 

U.S. Government Accountability Office: 

Accountability -- Integrity -- Reliability: 

Summary of GAO's Performance and Financial Information, Fiscal Year 
2010: 

[End of front cover] 

Inside front cover: 

Serving The Congress And The Nation: 

Accountability: 

We help the Congress oversee federal programs and operations to ensure 
accountability to the American people. GAO’s analysts, auditors, 
lawyers, economists, information technology specialists, 
investigators, and other multidisciplinary professionals seek to 
enhance the economy, efficiency, effectiveness, and credibility of the 
federal government both in fact and in the eyes of the American people. 

Integrity: 

We set high standards for ourselves in the conduct of GAO’s work. Our 
agency takes a professional, objective, fact-based, nonpartisan, 
nonideological, fair, and balanced approach to all activities. 
Integrity is the foundation of our reputation, and the GAO approach to 
work ensures it. 

Reliability: 

We at GAO want our work to be viewed by the Congress and the American 
public as reliable. We produce high-quality reports, testimonies, 
briefings, legal opinions, and other products and services that are 
timely, accurate, useful, clear, and candid. 

Scope of work: 

GAO performs a range of oversight-, insight-, and foresight-related 
engagements, a vast majority of which are conducted in response to 
congressional mandates or requests. GAO’s engagements include 
evaluations of federal programs and performance, financial and 
management audits, policy analyses, legal opinions, bid protest 
adjudications, and investigations. 

[End of inside front cover] 

United States Government Accountability Office: 
Budget, Performance, and Financial Snapshot: 
Fiscal Year 2010: 

Who We Are: 

Mission: The Government Accountability Office, the audit, evaluation, 
and investigative arm of the Congress, 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. GAO examines the use of public 
funds; evaluates federal programs and policies; and provides analyses, 
recommendations, and other assistance to help the Congress make 
informed oversight, policy, and funding decisions. 

Organization and Strategic Focus: To fulfill its mission, GAO 
organizes and manages its resources to support four broad strategic 
goals. These include helping to address challenges to the well-being 
and financial security of the American people, responding to changing 
security threats and global interdependence, and transforming the 
federal government to address national challenges. Strategic goal 4 is 
an internal goal focused on enhancing GAO's value through improving 
its efficiency, effectiveness, and quality, and institutional 
stewardship and resource management. 

Human Capital: GAO maintains a workforce of highly trained 
professionals across a breadth of academic and scientific disciplines. 
About three-quarters of our approximately 3,200 employees are based at 
our headquarters in Washington, D.C.; the rest are deployed in 11 field 
offices across the country. 

Figure: Budget And Financial Snapshot: 

[Refer to PDF for image: vertical bar graph and associated data] 

GAO's Budgetary Resources: 

Fiscal year: 2006; 
Value: $497.2 million. 

Fiscal year: 2007; 
Value: $498.9 million. 

Fiscal year: 2008; 
Value: $519.0 million. 

Fiscal year: 2009; 
Value: $580.6 million. 

Fiscal year: 2010; 
Value: $613.0 million. 

Fiscal Year 2010: 
Clean opinion on financial statements: Yes; 
Timely financial reporting: Yes; 
Material weaknesses: None; 
Total assets: $122.3 million; 
Total liabilities: $111.3 million. 

Source: GAO. 

[End of figure: Budget and Financial Snapshot] 

Performance Snapshot: 

Accomplishments: In fiscal year 2010, GAO met or exceeded 14 of its 15 
annual performance targets by, for example, identifying $49.9 billion 
in financial benefits-—a return of $87 for every dollar GAO spent-—and 
1,361 improvements in laws and government programs and operations. The 
rate at which GAO's recommendations were implemented by federal 
agencies or the Congress was 82 percent, and over two-thirds of the 
products issued contained recommendations. GAO did not meet its 
testimony target but testified at 192 hearings before the Congress on 
a variety of topics across its body of work, over a third of which 
were on areas considered at high risk for fraud, waste, abuse, and 
mismanagement. Results for people measures, such as staff development 
and organizational climate, also met or exceeded our targets. (See 
table 1 on page 9 for information on all of GAO's performance 
measures.) 

Challenges: In fiscal year 2010, GAO continued to address three 
management challenges-—physical security, information security, and 
human capital. For example, to address the human capital challenge, 
GAO implemented several initiatives aimed at recruitment, retention, 
and promoting an inclusive and equitable work environment. 

Summary Of Key GAO Performance Results And Targets For FY 2006-2010: 

To help determine how well GAO is meeting the needs of the Congress 
and the nation and maximizing its value as a leading practices agency, 
GAO assesses its performance annually using a balanced set of 
quantitative measures. Below are 9 of the 15 annual performance 
measures that highlight the agency's performance in significant areas 
related to the implementation of its mission. 

To establish targets for all of its performance measures, GAO examines 
its past performance and the external factors that could influence its 
work and discusses with its senior executives what could be 
accomplished in the upcoming fiscal year. GAO may adjust these targets 
after they are initially published in its annual performance plan 
based on changes in planned work or level of funding. 

Table: Key GAO Performance Results And Targets For FY 2006-2010: 

Results: Financial benefits; 
2006 actual: $51.0 billion; 
2007 actual: $45.9 billion; 
2008 actual: $58.1 billion; 
2009 actual: $43.0 billion; 
2010 target: $42.0 billion; 
2010 actual: $49.9 billion. 

Results: Nonfinancial benefits; 
2006 actual: 1,342; 
2007 actual: 1,354; 
2008 actual: 1,398; 
2009 actual: 1,315; 
2010 target: 1,200; 
2010 actual: 1,361. 

Results: Past recommendations implemented; 
2006 actual: 82%; 
2007 actual: 82%; 
2008 actual: 83%; 
2009 actual: 80%; 
2010 target: 80%; 
2010 actual: 82%. 

Results: New products with recommendations; 
2006 actual: 65%; 
2007 actual: 66%; 
2008 actual: 66%; 
2009 actual: 68%; 
2010 target: 60%; 
2010 actual: 61%. 

Client: Testimonies; 
2006 actual: 240; 
2007 actual: 276; 
2008 actual: 298; 
2009 actual: 203; 
2010 target: 220; 
2010 actual: 192. 

People: Staff development[A,B]; 	
2006 actual: 76%; 
2007 actual: 76%; 
2008 actual: 77%; 
2009 actual: 79%; 
2010 target: 76%; 
2010 actual: 79%. 
					
People: Staff utilization[A,C]; 
2006 actual: 75%; 
2007 actual: 73%; 
2008 actual: 75%; 
2009 actual: 78%; 
2010 target: 75%; 
2010 actual: 77%. 

People: Effective leadership by supervisors[A,D]; 
2006 actual: 79%; 
2007 actual: 79%; 
2008 actual: 81%; 
2009 actual: 83%; 
2010 target: 80%; 
2010 actual: 83%. 

People: Organizational climate[A]; 
2006 actual: 73%; 
2007 actual: 74%; 
2008 actual: 77%; 
2009 actual: 79%; 
2010 target: 75%; 
2010 actual: 79%. 

Source: GAO. 

Note: Information explaining all of the measures included in this 
table appears in the Data Quality and Program Evaluations section in 
part II of our full fiscal year 2010 performance and accountability 
report. 

[A] This measure is derived from our annual agencywide employee 
feedback survey. From the staff who expressed an opinion, we 
calculated the percentage of those who selected favorable responses to 
the related survey questions. Responses of no basis to judge/not 
applicable" or no answer were excluded from the calculation. While 
including these responses in the calculation would result in a 
different percentage, our method of calculation is an acceptable 
survey practice, and we believe it produces a better and more valid 
measure because it represents only those employees who have an opinion 
on the questions. 

[B] Beginning in fiscal year 2006 we changed the way that the staff 
development people measure was calculated. Specifically, we dropped 
one question regarding computer-based training because we felt such 
training was a significant part of (and therefore included in) the 
other questions the survey asked regarding training. We also modified 
a question on internal training and changed the scale of possible 
responses to that question. 

[C] Our employee feedback survey asks staff how often the following 
occurred in the last 12 months: (1) my job made good use of my skills, 
(2) GAO provided me with opportunities to do challenging work, and (3) 
in general, I was utilized effectively. 

[D] In fiscal year 2009 we changed the name of this measure from 
"Leadership" to its current nomenclature to clarify that the measure 
reflects employees' satisfaction with their immediate supervisors' 
leadership. In fiscal year 2010, we changed one of the questions for 
this measure. 

[End of Table: Key GAO Performance Results And Targets For FY 2006-
2010] 

[End of Budget, Performance, and Financial Snapshot, Fiscal Year 2010] 

From The Comptroller General: 

January 2011: 

I am pleased to present GAO's summary of the performance and 
accountability report for fiscal year 2010. The year presented many 
opportunities for us to make meaningful contributions to improving the 
way government works in support of the Congress and the nation. Our 
products covered a wide spectrum of issues-—from national and homeland 
security to the environment and transportation, from cybersecurity to 
health care, banking, and housing. We continue to highlight high-risk 
areas and government challenges for the Congress and the executive 
branch and call attention to opportunities for cost savings and 
improvements in federal agency and program management. Throughout the 
year, we also regularly provided the Congress with the results of our 
work in carrying out our responsibilities related to the Troubled 
Asset Relief Program and the American Recovery and Reinvestment Act of 
2009. I am confident that the performance and financial information in 
this summary and in the full report is complete and reliable and meets 
our high standards for accuracy and transparency. 

We again received from independent auditors an unqualified or "clean" 
opinion on our financial statements for fiscal year 2010. We 
documented $49.9 billion in financial benefits—-a return of $87 for 
every dollar invested in us. We also recorded 1,361 nonfinancial 
benefits that helped to change laws, such as the Improper Payments 
Elimination and Recovery Act of 2010; improve services to the public; 
and promote sound management throughout government. The 111th Congress 
continued to rely on us to inform its work on national and 
international issues, with our senior officials testifying at 192 
hearings. Getting our message out is crucial; to better serve our 
clients and the public we developed a mobile Web site for access to 
GAO's work from smart phones and other small screen devices. We have 
also piloted an "e-report" format for faster and easier access to key 
aspects of our reports. The response from our readers has been very 
positive. 

We could not have achieved this level of performance without the 
outstanding efforts of our professional, diverse, and 
multidisciplinary staff. Through their hard work and dedication, we 
met our clients' needs with 95 percent on-time delivery. Our people 
and internal operations measures for fiscal year 2010 indicate that 
our employees feel they have the developmental and training 
opportunities, work experiences and work environment, and operational 
support they need to continue producing high-quality products. We met 
or exceeded all of the targets we set for our seven people measures—-
new hire rate, retention rate (with and without retirements), staff 
development, staff utilization, effective leadership by supervisors, 
and organizational climate. We ranked second among large agencies 
according to the 2010 Best Places to Work in the federal government 
rankings of the Partnership for Public Service and the Institute for 
the Study of Public Policy Implementation at American University. 

We have continued to focus on key internal management challenges-—
physical security, information security, and human capital—-and the 
external factors that affect them. For example, in fiscal year 2010, 
we strengthened our recruitment initiatives to reach a more diverse 
applicant pool, laid the groundwork for revamping our performance 
management systems, and issued an annual Workforce Diversity Plan. In 
addition, we strengthened our training on compliance with the 
Americans with Disabilities Act. We also improved physical security by 
beginning installation of upgraded electronic security systems in our 
field offices and information security by supplementing our data 
protection encryption. 

We maintained our productive working relationship with the employees’ 
union, GAO Employees Organization, International Federation of 
Professional and Technical Engineers, Local 1921, and we finalized 
negotiations toward completion of our first master collective 
bargaining agreement on November 1, 2010. We are also working with the 
Employee Advisory Council and the Diversity Advisory Council on a 
range of issues. 

Fiscal year 2010 was one of our most busy and challenging years—yet we 
succeeded at performing our mission, responding to mandates, and 
accomplishing many of our goals. 2011 brings more challenges with 
additional responsibilities to assess duplicative government programs 
and opportunities to improve operations and carry out studies and 
activities related to the implementation of new financial regulatory 
and health care reform legislation. Our new strategic plan for serving 
the Congress through fiscal year 2015 provides the framework for 
reporting on progress toward our institutional goals. We look forward 
to continuing to serve the Congress and the public with these and 
other new efforts in the coming year. 

Signed by: 

Gene L. Dodaro: 
Comptroller General of the United States: 

[End of From The Comptroller General] 

About GAO: 

GAO is an independent, nonpartisan professional services agency in the 
legislative branch of the federal government. Commonly known as the 
audit and investigative arm of the Congress or the “congressional 
watchdog,” we examine how taxpayer dollars are spent and advise 
lawmakers and agency heads on ways to make government work better. As 
a legislative branch agency, we are exempt from many laws that apply 
to the executive branch agencies. However, we generally hold ourselves 
to the spirit of many of the laws, including the Federal Managers’ 
Financial Integrity Act of 1982 (FMFIA), the Government Performance 
and Results Act of 1993 (GPRA), and the Federal Financial Management 
Improvement Act of 1996 (FFMIA). Accordingly, the full performance and 
accountability report for fiscal year 2010 (see [hyperlink, 
http://www.gao.gov/products/GAO-11-2SP]) provides what we consider to 
be information comparable to that reported by executive branch 
agencies in their annual performance and accountability reports. This 
report also fulfills our requirement to report annually on the work of 
the Comptroller General under 31 U.S.C. 719. 

Mission: 

Our mission is 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. We accomplish this by providing objective and 
reliable information and informed analysis to the Congress, to federal 
agencies, and to the public, and we recommend improvements, when 
appropriate, on a wide variety of issues. 

We use a strategic planning and management process that is based on a 
hierarchy of four elements-—strategic goals, strategic objectives, 
performance goals, and key efforts. In July 2010, we updated and began 
the transition to our strategic plan for fiscal years 2010 through 
2015. The plan describes our goals and strategies for supporting the 
Congress and the nation and identifies eight trends that provide 
context for the plan. These are highlighted in our strategic planning 
framework for serving the Congress (see figure 1). See our complete 
strategic plan at [hyperlink, http://www.gao.gov/products/GAO-10-559SP]. 

[Text box: GAO's History: The Budget and Accounting Act of 1921 
required the President to issue an annual federal budget and 
established GAO as an independent agency to investigate how federal 
dollars are spent. In the early years, we mainly audited vouchers, but 
after World War II we started to perform more comprehensive financial 
audits that examined the economy and efficiency of government 
operations. By the 1960s, GAO had begun to perform the type of work we 
are noted for today-—program evaluation—-which examines whether 
government programs are meeting their objectives. End of text box] 

Figure 1: GAO's Strategic Plan Framework: 

[Refer to PDF for image: illustration] 

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. 

Trends: 

* National Security Threats; 

* Fiscal Sustainability Challenges; 

* Economic Recover and Growth; 

* Global Interdependency; 

* Science & Technology; 

* Networks and Virtualization; 

* Shifting Roles of Government; 

* Demographic and Societal Change. 

Goals & Objectives: 

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

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

* Health care needs; 

* Lifelong learning; 

* Benefits and protections for workers, families, and children; 

* Financial security; 

* Effective system of justice; 

* Viable communities; 

* Stable financial system and consumer protection; 

* Stewardship of natural resources and the environment; 

* Infrastructure; 

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

* Homeland security; 

* Military capabilities and readiness; 

* U.S. foreign policy interests; 

* Global market forces. 

Help Transform the Federal Government to Address National Challenges 
by assessing: 

* Government’s fiscal position and options for closing gap; 

* Fraud, waste, and abuse; 

* Major management challenges and program risks. 

Maximize the Value of GAO by Enabling Quality, Timely Service to the 
Congress and Being a Leading Practices Federal Agency in the areas of: 

* Efficiency, effectiveness, and quality; 

* Diverse and inclusive work environment; 

* Professional networks and collaboration; 

* Institutional stewardship and resource management. 

Core Values: 

* Accountability; 

* Integrity; 

* Reliability. 

Source: GAO. 

[End of Figure 1, GAO's Strategic Plan Framework] 

Figure 2: How GAO Assisted the Nation: Fiscal Year 2010: 

[Refer to PDF for image: illustration] 

Goal 1: Address Current and Emerging Challenges to the Well-Being and 
Financial Security of the American People: 

* Identified ways for HHS to strengthen inspections of ambulatory 
surgical centers leading to a fourfold increase in the proportion of 
centers found to have deficient practices; 

* Facilitated expedited claims process for Labor’s black lung benefits 
program; 

* Increased EPA focus on environmental threats to children’s health; 

* Identified factors to consider in restructuring Fannie Mae and 
Freddie Mac; 

* Proposed changes to improve control of toxic chemicals in consumer 
products; 

* Identified hidden fees for air travel that should be disclosed to 
consumers. 

Goal 2: Respond to Changing Security Threats and the Challenges of 
Global Interdependence: 

* Exposed weaknesses in TSA’s behavior-based identification of high-
risk air passengers; 

* Recommended changes that FEMA implemented to better plan for 
national emergency response capabilities; 

* Contributed to a more robust missile defense acquisition policy; 

* Encouraged reforms in the United Nations’ procurement, internal 
oversight, and employment processes; 

* Provided insight to the Congress that led to expanding U.S. 
sanctions against Iran; 

* Informed development of a framework to reform the U.S. export 
control system. 

Goal 3: Help Transform the Federal Government to Address National 
Challenges: 

* Informed IRS’s decision to extend regulation of paid tax preparers, 
including requiring them to obtain an identifying number and be tested 
for competency; 

* Exposed Energy Star as a self-certification program by obtaining 
certification for bogus products which led DOE and EPA to adopt 
improvements in their approval process; 

* Surfaced weaknesses in VA outpatient scheduling IT systems; 

* Developed a methodology adopted by the Congress to efficiently 
target billions of dollars in Medicaid assistance through the Recovery 
Act; 

* Assessed IT risks for the 2010 Census to ensure successful execution. 

Goal 4: Maximize the Value of GAO by Enabling Quality, Timely Service 
to the Congress and Being a Leading Practices Federal Agency: 

* Implemented leading practices to attract a more diverse workforce 
and foster an inclusive work environment; 

* Leveraged technology to facilitate business process improvements in 
financial and administrative IT systems; 

* Improved access to our products with a new mobile Web site for users 
of small screen devices and a new electronic product format; 

* Collaborated with international accountability organizations to 
enhance their audit guidelines by incorporating private sector 
international auditing standards. 

Source: GAO. 

Note: Additional information on accomplishments by goal is highlighted 
in parts II, p.60, and V, p. 119, of the full report. 

[End of Figure 2: How GAO Assisted the Nation: Fiscal Year 2010] 

Our audit, evaluation, and investigative work is primarily aligned 
under the first three strategic goals, which span domestic and 
international issues affecting the lives of all Americans and 
influencing the extent to which the federal government serves the 
nation’s current and future interests. The fourth goal is focused 
internally on improving efficiency and effectiveness in performing our 
work, maintaining and enhancing a diverse workforce, expanding our 
networks and partnerships, and being a responsible steward of our 
resources. Figure 2 provides examples of this work. 

We maintain a multidisciplinary workforce with training in many 
disciplines, including accounting, law, engineering, public and 
business administration, economics, and the social and physical 
sciences. About three-quarters of our approximately 3,200 employees 
are based at our headquarters in Washington, D.C.; the rest are 
deployed in 11 field offices across the country. Staff in these field 
offices are aligned with our research, audit, investigative, and 
evaluation teams and perform work in tandem with our headquarters 
staff in support of our external strategic goals. 

Fiscal Year 2010 Performance: 

In fiscal year 2010, we monitored how well we performed our work and 
supported our staff using 15 annual performance measures. The results 
of our efforts are reflected in our solid performance in fiscal year 
2010—-we met or exceeded all but one of the performance targets we set 
for each of these measures (see table 1). We exceeded our financial 
benefits target of $42 billion for the fiscal year by $7.9 billion. 
This represents an $87 return on every dollar the Congress invested in 
us. In addition, we exceeded our target of 1,200 nonfinancial benefits 
by 161 benefits. We also exceeded our targets for past recommendations 
implemented by 2 percentage points and for new products with 
recommendations by 1 percentage point. We did not meet our target of 
220 hearings at which we were asked to testify, due to fewer-than-
anticipated hearings in a range of subject areas. We did meet the 
target for delivering our products and testimonies to our clients in a 
timely manner. We also met or exceeded our annual targets for all 
seven of our people measures. 

Concerning our two internal operations measures, we will assess our 
performance related to how well our internal administrative services 
(e.g., computer support, mail service, and Internet service) help 
employees get their jobs done or improve employees' quality of work 
life once data from our November 2010 annual customer satisfaction 
survey have been analyzed. These measures are directly related to our 
goal 4 strategic objectives of continuously enhancing our business and 
management processes and becoming a professional services employer of 
choice. There will always be a lag in reporting on this measure 
because our customer feedback survey is distributed after we issue the 
performance and accountability report. In fiscal year 2009, we 
exceeded our targets of 4.0 (a composite score based on employees' 
responses from an internal survey) for our measure to help get the job 
done and for our quality of work life measure. These scores indicate 
that our employees were satisfied with the internal administrative 
services they used during their workday. The survey asked staff to 
rank the importance of each service to them and indicate their 
satisfaction with it on a scale from 1 to 5, with 5 being the highest 
score. 

Table 1: Agencywide Summary of Annual Measures and Targets: 

Performance Measure: Results: Financial benefits; 
2006 Actual: $51.0 billion; 
2007 Actual: $45.9 billion; 
2008 Actual: $58.1 billion; 
2009 Actual: $43.0 billion; 
2010 Target: $42.0 billion; 
2010 Actual: $49.9 billion; 
Met/Not Met: Met; 
2011 Target: $42.0 billion. 

Performance Measure: Results: Nonfinancial benefits; 
2006 Actual: 1,342; 
2007 Actual: 1,354; 
2008 Actual: 1,398; 
2009 Actual: 1,315; 
2010 Target: 1,200; 
2010 Actual: 1,361; 
Met/Not Met: Met; 
2011 Target: 1,200. 

Performance Measure: Results: Past recommendations implemented; 
2006 Actual: 82%; 
2007 Actual: 82%; 
2008 Actual: 83%; 
2009 Actual: 80%; 
2010 Target: 80%; 
2010 Actual: 82%; 
Met/Not Met: Met; 
2011 Target: 80%. 

Performance Measure: Results: New products with recommendations; 
2006 Actual: 65%; 
2007 Actual: 66%; 
2008 Actual: 66%; 
2009 Actual: 68%; 
2010 Target: 60%; 
2010 Actual: 61%; 
Met/Not Met: Met; 
2011 Target: 60%. 

Performance Measure: Client: Testimonies; 
2006 Actual: 240; 
2007 Actual: 276; 
2008 Actual: 298; 
2009 Actual: 203; 
2010 Target: 220; 
2010 Actual: 192; 
Met/Not Met: Not Met; 
2011 Target: 200. 

Performance Measure: Client: Timeliness[A]; 
2006 Actual: 93%; 
2007 Actual: 95%; 
2008 Actual: 95%; 
2009 Actual: 95%; 
2010 Target: 95%; 
2010 Actual: 95%; 
Met/Not Met: Met; 
2011 Target: 95%. 

Performance Measure: People: New hire rate; 
2006 Actual: 94%; 
2007 Actual: 96%; 
2008 Actual: 96%; 
2009 Actual: 99%; 
2010 Target: 95%; 
2010 Actual: 95%; 
Met/Not Met: Met; 
2011 Target: 95%. 

Performance Measure: People: Retention rate: With retirements; 
2006 Actual: 90%; 
2007 Actual: 90%; 
2008 Actual: 90%; 
2009 Actual: 94%; 
2010 Target: 90%; 
2010 Actual: 94%; 
Met/Not Met: Met; 
2011 Target: 90%. 

Performance Measure: People: Retention rate: Without retirements; 
2006 Actual: 94%; 
2007 Actual: 94%; 
2008 Actual: 93%; 
2009 Actual: 96%; 
2010 Target: 94%; 
2010 Actual: 96%; 
Met/Not Met: Met; 
2011 Target: 94%. 

Performance Measure: People: Staff development[B,C]; 
2006 Actual: 76%; 
2007 Actual: 76%; 
2008 Actual: 77%; 
2009 Actual: 79%
2010 Target: 76%; 
2010 Actual: 79%; 
Met/Not Met: Met; 
2011 Target: 76%. 

Performance Measure: People: Staff utilization[B,D]; 
2006 Actual: 75%; 
2007 Actual: 73%; 
2008 Actual: 75%; 
2009 Actual: 78%; 
2010 Target: 75%; 
2010 Actual: 77%; 
Met/Not Met: Met; 
2011 Target: 75%. 

Performance Measure: People: Effective leadership by supervisors [B,C]; 
2006 Actual: 79%; 
2007 Actual: 79%; 
2008 Actual: 81%; 
2009 Actual: 83%; 
2010 Target: 80%; 
2010 Actual: 83%; 
Met/Not Met: Met; 
2011 Target: 80%. 

Performance Measure: People: Organizational climate[B]; 
2006 Actual: 73%; 
2007 Actual: 74%; 
2008 Actual: 77%; 
2009 Actual: 79%; 
2010 Target: 75%; 
2010 Actual: 79%; 
Met/Not Met: Met; 
2011 Target: 75%. 

Performance Measure: Internal operations[F]: Help get job done; 
2006 Actual: 4.1; 
2007 Actual: 4.05; 
2008 Actual: 4.0; 
2009 Actual: 4.03; 
2010 Target: 4.0. 
2010 Actual: N/A; 
Met/Not Met: N/A; 
2011 Target: 4.0. 

Performance Measure: Internal operations[F]: Quality of work life; 
2006 Actual: 4.0; 
2007 Actual: 3.98; 
2008 Actual: 4.01; 
2009 Actual: 4.01; 
2010 Target: 4.0. 
2010 Actual: N/A. 
Met/Not Met: N/A; 
2011 Target: 4.0. 

Source: GAO. 

[A] The timeliness measure is based on one question on a form sent out 
to selected clients. The response rate for the form in fiscal year 
2010 is 29 percent, and 99 percent of the clients who responded 
answered this question. The percentage shown in the table represents 
the percentage of respondents who answered favorably to this question 
on the form. 

[B] This measure is derived from our annual agencywide employee 
feedback survey. From the staff who expressed an opinion, we 
calculated the percentage of those who selected favorable responses to 
the related survey questions. Responses of “no basis to judge/not 
applicable” or “no answer” were excluded from the calculation. While 
including these responses in the calculation would result in a 
different percentage, our method of calculation is an acceptable 
survey practice, and we believe it produces a better and more valid 
measure because it represents only those employees who have an opinion 
on the questions. 

[C] Beginning in fiscal year 2006, we changed the way that the staff 
development people measure was calculated. Specifically, we dropped 
one question regarding computer-based training because we felt such 
training was a significant part of (and therefore included in) the 
other questions the survey asked regarding training. We also modified 
a question on internal training and changed the scale of possible 
responses to that question. 

[D] Our employee feedback survey asks staff how often the following 
occurred in the last 12 months: (1) my job made good use of my skills, 
(2) GAO provided me with opportunities to do challenging work, and (3) 
in general, I was utilized effectively. 

[E] In fiscal year 2009 we changed the name of this measure from 
“Leadership” to its current nomenclature to clarify that the measure 
reflects employees' satisfaction with their immediate supervisor’s 
leadership. 

[F] For our internal operations measures, we ask staff to rank 33 
internal services available to them and to indicate on a scale from 1 
to 5, with 5 being the highest, their satisfaction with each service. 
These measures are described in more detail on page 38 of the full 
report. We will report actual data for fiscal year 2010 once data from 
our November 2010 internal customer satisfaction survey have been 
analyzed. N/A indicates that the data are not yet available. 

[End of Table 1: Agencywide Summary of Annual Measures and Targets] 

When setting our target for the number of hearings at which our senior 
executives testify, we base our testimonies target largely on the 
cyclical nature of the congressional calendar, in addition to our 4-
year rolling averages and our past performance. Our experience has 
shown that during the fiscal year in which an election occurs, the 
Congress generally holds fewer hearings because the members usually 
only meet for a short session at the end of the calendar year, and 
then they reorganize in the following months, providing fewer 
opportunities for us to testify. In 2010, our experience was different 
than expected due to a congressional focus on a few key policy areas 
that did not encompass as many hearings on our broad scope of work as 
in recent years. 

Focusing on outcomes and the efficiency of the processes needed to 
achieve them is fundamental to accomplishing our mission. The 
following four annual measures-—financial benefits, nonfinancial 
benefits, past recommendations implemented, and new products 
containing recommendations-—indicate that we have fulfilled our 
mission and delivered results that benefit the nation. 

Financial Benefits and Nonfinancial Benefits: 

We describe many of the results produced by our work as either 
financial or nonfinancial benefits. Both types of benefits result from 
our efforts to provide information to the Congress that helped to (1) 
change laws and regulations, (2) improve services to the public, and 
(3) promote sound agency and governmentwide management. In many cases, 
the benefits we claimed in fiscal year 2010 are based on work we did 
in past years because it often takes the Congress and agencies time to 
implement our recommendations or to act on our findings. 

Financial Benefits: 

Our findings and recommendations produce measurable financial benefits 
for the federal government after the Congress acts on or agencies 
implement them and the funds are made available to reduce government 
expenditures or are reallocated to other areas. Figure 3 shows the 
distribution of fiscal year 2010 financial benefits resulting from 
changes in business operations and activities; the restructuring of 
federal programs; or modifications to entitlements, taxes, or user 
fees. 

Figure 3: Types of Financial Benefits Recorded in Fiscal Year 2010 from 
Our Work: 

[Refer to PDF for image: pie-chart] 

Financial Benefits: 
Total $49.9 billion. 

Categories: 

Agencies acted on GAO information to improve services to the public: 
$16.9 billion (34%); 

Information GAO provided to the Congress resulted in statutory or 
regulatory changes: $26.4 billion (53%); 

Core business processes improved at agencies and governmentwide 
management reforms advanced by GAO's work: $6.6 billion (13%). 

Source: GAO. 

[End of Figure 3: Types of Financial Benefits Recorded in Fiscal Year 
2010 from Our Work] 

To document financial benefits, our staff complete reports documenting 
accomplishments that are linked to specific recommendations or 
actions. Each accomplishment report for financial benefits is 
documented and reviewed by (1) another GAO staff member not involved 
in the work and (2) a senior executive in charge of the work, followed 
by additional internal GAO review. In fiscal year 2010, financial 
benefits of $100 million or more, which amounted to 95 percent of the 
total dollar value of benefits recorded in fiscal year 2010, were also 
reviewed by independent reviewers with knowledge of our accomplishment 
reporting policies and procedures. (See table 15, pp. 75-76 of the 
full report for more information on how we review financial benefits.) 

Selected Fiscal Year 2010 Financial Benefits: 

* Canceling the Manned Ground Vehicle Portion of the Army's Future 
Combat System: $3.7 billion. 

* Eliminating Seller-Funded Assistance for Federal Housing 
Administration Mortgages: $3.5 billion. 

* Enhancing Tax Compliance Involving Foreign Accounts: $3.0 billion. 

* Reducing Compensation to Federal Crop Insurance Providers: $2.8 
billion. 

Nonfinancial Benefits: 

Many of the benefits that result from our work cannot be measured in 
dollar terms. During fiscal year 2010, we recorded a total of 1,361 
nonfinancial benefits. We exceeded our target by over 13 percent due 
largely to a number of accomplishments we documented that related to 
the nation's defense and security, environmental, and national 
infrastructure programs. 

Figure 4 shows the distribution of our fiscal year 2010 nonfinancial 
benefits resulting from agencies acting on our information to improve 
services to the public, the Congress acting on our information to 
enact statutory or regulatory changes in fiscal year 2010, and 
agencies improving core business processes or governmentwide reforms 
as a result of our work. These actions covered a variety of issues, 
such as improving oversight of nursing home care, identifying fraud at 
the Small Business Administration’s business development program, and 
improving foreign service officers’ language skills. 

Figure 4: Types of Nonfinancial Benefits Documented in Fiscal Year 
2010 from Our Work: 

[Refer to PDF for image: pie-chart] 

Nonfinancial Benefits: 
Total 1,361. 

Categories: 

Agencies acted on GAO information to improve services to the public: 
645 (48%); 

Information GAO provided to the Congress resulted in statutory or 
regulatory changes: 43 (3%); 

Core business processes improved at agencies and governmentwide 
management reforms advanced by GAO's work: 673 (49%). 

Source: GAO. 

[End of Figure 4: Types of Nonfinancial Benefits Documented in Fiscal 
Year 2009 from Our Work] 

Selected Fiscal Year 2010 Nonfinancial Benefits That Helped to Change 
Laws: 

* Strengthening First-Time Homebuyer Credit Provisions. 

* Expediting Black Lung Benefits Claims. 

* Standardizing Governmentwide Policy on Contractor Personal Conflicts 
of Interest. 

Improve services to the public: 

* Oversight of Federal Oil and Gas Resources. 

* Oversight of Care in Nursing Homes. 

* Foreign Service Officers' Language Skills. 

Promote Sound Agency and Governmentwide Management: 

* Improved the Department of the Treasury's Debt Management. 

* Identified Vulnerabilities in the Energy Star Certification Process. 

* Assessed the Cost and Progress of the 2010 Census. 

Past Recommendations Implemented: 

One way we measure our effect on improving the government's 
accountability, operations, and services is by tracking the percentage 
of recommendations that we made 4 years ago that have since been 
implemented. At the end of fiscal year 2010, 82 percent of the 
recommendations we made in fiscal year 2006 had been implemented (see 
table 1), primarily by executive branch agencies. Agencies need time 
to act on recommendations, and we assess recommendations implemented 
after 4 years based on our experience that recommendations remaining 
open after that period of time are generally not implemented in 
subsequent years. 

New Products Containing Recommendations: 

In fiscal year 2010, about 61 percent of the 601 written products we 
issued (excluding testimonies) contained recommendations (see table 
1). We track the percentage of new products with recommendations 
because we want to focus on developing recommendations that when 
implemented by the Congress and agencies, produce financial and 
nonfinancial benefits for the nation. We slightly exceeded our target 
of 60 percent by 1 percentage point. We set our target at 60 percent 
because our products do not always include recommendations, and the 
Congress and agencies often find informational reports as useful as 
those that contain recommendations. Our informational reports have the 
same analytical rigor and meet the same quality standards as those 
with recommendations and, similarly, can help to bring about 
substantial financial and key nonfinancial benefits. Hence, this 
measure allows us some flexibility in responding to requests that 
result in reports without recommendations. 

Client Measures: 

To fulfill the Congress's information needs, we deliver the results of 
our work orally as well as in writing at a time agreed upon with our 
client. 

Testimonies: 

Our clients often invite us to testify on our current and past work as 
it relates to issues that committees are examining through the 
congressional hearing process. During fiscal year 2010, experts from 
our staff testified at 192 congressional hearings covering a wide 
range of complex issues. We missed our target of 220 hearings at which 
we testify (see table 1) by 28 hearings. This measure is client-driven 
based on invitations to testify and we cannot always anticipate our 
clients’ specific subject area interests. The 192 hearings at which 
the Congress asked our executives to testify in fiscal year 2010 
covered a broad range of issue areas. (See figure 5 for selected 
topics we testified on by strategic goal in fiscal year 2010.) Sixty- 
seven of the hearings at which our senior executives testified were 
related to high-risk areas and programs, which are listed on page 40 
of the full report. 

Timeliness: 

To be useful to the Congress, our products must be available when our 
clients need them. We outreach directly to our clients through several 
means, including an electronic feedback form. We use the results of 
our client feedback form as a primary source and barometer for whether 
we are getting our products to our congressional clients when they 
need the information. In fiscal year 2010, we met our timeliness 
target of 95 percent. 

People Measures: 

Our highly professional, multidisciplinary, and diverse staff were 
critical to the level of performance we demonstrated in fiscal year 
2010. Our ability to hire, develop, retain, and lead staff is a key 
factor to fulfilling our mission of serving the Congress and the 
American people. In fiscal year 2010, we met or exceeded all seven of 
our people measures. These measures are directly linked to our goal 4 
strategic objective of being a leading practices federal agency. 

New Hire Rate: 

Our new hire rate is the ratio of the number of people hired to the 
number we planned to hire. We develop an annual workforce plan that 
takes into account strategic goals; projected workload requirements; 
and other changes, such as retirements, other attrition, promotions, 
and skill gaps. The workforce plan specifies the number of planned 
hires for the upcoming year. In fiscal year 2010, our adjusted plan 
was to hire 260 staff. We were able to bring on board 248 staff by 
year-end, meeting our target of 95 percent of our goal for new hires 
(see table 1). This resulted from a continuation of the focused 
recruiting initiatives from last year to effectively address workload 
requirements and succession planning needs. 

Figure 5: Selected Testimony Topics: Fiscal Year 2010: 

[Refer to PDF for image: illustrated table] 

Goal 1: Address Current and Emerging Challenges to the Well-Being and 
Financial Security of the American People: 

* Unemployment Insurance Trust Funds; 
* Social Security Disability; 
* Underfunded Pension Plans; 
* Proprietary Schools; 
* Medicare High-Cost Drugs; 
* Toxic Substance Abuses Disease Registry; 
* Concussions in High School Athletes; 
* Children’s Access to Medicaid Dental Services; 
* Corporate Crime; 
* DOJ’s Civil Rights Division's Enforcement Efforts; 
* Fannie Mae & Freddie Mac; 
* Interior’s Oversight of Oil & Gas; 
* Clean Water Act Enforcement Efforts; 
* U.S. Postal Service Financial Viability; 
* Federal Facilities Security; 
* High-Speed Rail Projects. 

Goal 2: Respond to Changing Security Threats and the Challenges of 
Global Interdependence: 

* Financial Markets Regulation; 
* National Flood Insurance Program; 
* Climate Change; 
* Alien Smuggling Along U.S. Southwest Border; 
* Aviation Security Advanced Imaging Technology; 
* Terrorist Watchlist Screening; 
* Combating Nuclear Smuggling; 
* Iran Sanctions; 
* Counternarcotics and Anticrime Efforts in Mexico; 
* Global Food Security; 
* Intellectual Property Enforcement Efforts; 
* Afghanistan Security Force Capacity; 
* DOD Military and Civilian Employee Compensation; 
* Military Language Skills; 
* Warfighter Contract Support; 
* Joint Strike Fighter Challenge; 
* Defense Space Acquisitions. 

Goal 3: Help Transform the Federal Government to Address National 
Challenges: 

* Interagency Collaboration for National Security 
* NASA Management and Program Challenges; 
* Balancing the Government-to-Contractor Workforce; 
* Iraq and Afghanistan Contract and Grant Management; 
* Recovery Act Oversight; 
* First-Time Homebuyer Tax Credit; 
* 2010 Census Management Challenges; 
* U.S. Government Financial Statements; 
* Protecting Federal Information Systems; 
* Environmental Satellites; 
* Service Disabled Veteran-Owned Small Business Program Fraud 
Prevention; 
* Head Start Program Fraud; 
* Defense Contract Audit Agency Vulnerabilities. 

Source: GAO. 

Note: Additional information on selected testimonies can be found in 
part II, pp.64, 68, and 72, of the full report. 

[End of Figure 5: Selected Testimony Topics: Fiscal Year 2010] 

Retention Rate: 

We continuously strive to make GAO a place where people want to work. 
Once we have made an investment in hiring and training people, we 
would like them to stay with us. This measure is one indicator of 
whether we are attaining this objective. We calculate this measure by 
taking 100 percent minus the attrition rate, where attrition rate is 
defined as the number of separations divided by the average onboard 
strength. We calculate this measure with and without retirements. Our 
exit survey shows that staff who retire do so for family, life, or 
health considerations; whereas nonretirees leave for new opportunities 
to work elsewhere, family reasons, or to make better use of their 
skills. In fiscal year 2010, we exceeded our target rate for overall 
retention (with retirements) by 4 percentage points, and our target 
for retention without retirements by 2 percentage points. We attribute 
exceeding the target rate to the slowdown in the overall economy, which 
has caused some staff to delay retirement and reduced other attrition 
via resignations or transfers to other agencies. 

Staff Development and Utilization, Effective Leadership by 
Supervisors, and Organizational Climate: 

One way that we measure how well we are supporting our staff and 
providing an environment for professional growth is through our annual 
employee feedback survey. Through the survey, we encourage our staff 
to indicate what they think about our overall operations, work 
environment, and organizational culture and how they rate their 
immediate supervisors on key aspects of their leadership styles. 

In fiscal year 2010, about 70 percent of our employees completed the 
survey and we exceeded all four targets. Our fiscal year 2010 
performance on all of these measures was very consistent with our 
fiscal year 2009 results. Our performance on the staff development, 
leadership, and organizational climate measures was the same as last 
year, and staff utilization was lower by 1 percentage point (see table 
1). 

Internal Operations Measures: 

Our mission and people are supported by our internal administrative 
services, such as information management, facility management, 
knowledge services, human capital, and financial management. To assess 
our performance related to how well our internal administrative 
services help employees get their jobs done or improve employees' 
quality of work life, and to set targets, we use information from our 
annual customer satisfaction survey in which we ask staff to rank 33 
internal services available to them. Our internal operations measures 
are directly related to our goal 4 strategic objectives of 
continuously enhancing our business and management processes and 
becoming a professional services employer of choice. 

GAO's High-Risk Program: 

In 1990, we began our high-risk program to highlight long-standing 
challenges facing the federal government. Historically, we designated 
high-risk areas based on their increased susceptibility to fraud, 
waste, abuse, and mismanagement. As the program has evolved, we have 
increasingly used the high-risk designation to draw attention to the 
need for broad-based transformation to achieve greater efficiency, 
effectiveness, accountability, and sustainability of key government 
programs and operations. 

[Text box: Our 2010 high-risk area work: 

* 151 reports. 

* 67 testimonies. 

* $27 billion in financial benefits. 

* 522 nonfinancial benefits. End of text box] 

Issued to coincide with the start of each new Congress, our high-risk 
updates have helped sustain attention from members of the Congress who 
are responsible for oversight and from executive branch officials who 
are accountable for performance. For example, our focus on high-risk 
issues contributed to the Congress enacting a series of governmentwide 
reforms to address critical human capital challenges, strengthen 
financial management, improve information technology practices, and 
instill a more results-oriented focus. Overall, our high-risk program 
has served to identify and help resolve serious weaknesses in areas 
that involve substantial resources and provide critical services to 
the public. As of the end of fiscal year 2010, our high-risk list 
highlighted 31 troubled areas across government. More information on 
the series is available on our Web site at [hyperlink, 
http://www.gao.gov/highrisk]. 

The Troubled Asset Relief Program: 

The Congress created the $700 billion Troubled Asset Relief Program 
(TARP) in October 2008, passing the Emergency Economic Stabilization 
Act to restore liquidity and stability in the financial system. The 
act gave us a statutory oversight role with broad monitoring and 
reporting responsibilities, including a requirement to report at least 
every 60 days. The Dodd-Frank Wall Street Reform and Consumer 
Protection Act of July, 2010, set a new spending ceiling for TARP--in 
effect, prohibiting the Department of the Treasury (Treasury) from 
incurring any additional obligations for programs that were not 
initiated prior to June 25, 2010. 

In fiscal year 2010, we issued 17 products and made over 50 
recommendations on issues such as (1) the nature and purpose of 
activities that have been initiated under TARP and ongoing challenges, 
(2) the process for making decisions related to unwinding TARP 
programs, and (3) indicators of credit conditions in markets targeted 
by TARP programs. Recommendations from these reviews have generally 
followed three themes: monitoring the use of funds to meet the act’s 
objectives, articulating a better communication strategy, and ensuring 
effective Treasury management. For the second consecutive year, we 
audited the annual financial statements of the entity established to 
implement TARP—-Treasury's Office of Financial Stability within the 
Office of Domestic Finance. 

The American Recovery and Reinvestment Act: 

The Congress passed the American Recovery and Reinvestment Act of 2009
(Recovery Act) in February 2009 to address the nation's most serious 
economic crisis since the Great Depression. The act included 12 
mandates for GAO and required bimonthly reviews on the uses of and 
accountability for Recovery Act funds in selected states and 
localities. We have conducted in-depth reviews in 16 states, selected 
localities in those states, and the District of Columbia—-
jurisdictions containing about 65 percent of the U.S. population and 
receiving an estimated two-thirds of the intergovernmental Recovery 
Act assistance. In addition, we have commented quarterly on the 
required reports from nonfederal recipients of Recovery Act funds, 
including grants, contracts, and loans. These reports are to include a 
list of each project or activity for which Recovery Act funds were 
expended or obligated and information concerning the amount and use of 
funds and jobs created or retained by these projects and activities. 

Since our first bimonthly review in April 2009, we have made 63 
recommendations to improve management and strengthen accountability 
over Recovery Act funds at eight federal departments and agencies. Our 
recommendations covered several programs receiving Recovery Act funds, 
such as those related to highways, housing, job training, education, 
clean and safe drinking water, energy efficiency, and weatherization. 
We also made several recommendations to improve audit and program 
management oversight processes. In response, the agencies have 
implemented nearly half of our recommendations to date. Further, all
13 recommendations we made on carrying out the recipient reporting 
requirements have been implemented. In addition, we have made a number 
of suggestions to states and localities for improvement in their use 
of Recovery Act funds. Our presence in the selected states and 
localities has further heightened the level of vigilance, including 
influencing officials to make real-time improvements to head off 
problems before they could occur. 

Our oversight of Recovery Act programs has resulted in more than 60 
related products by several of our teams for the Congress. This year, 
our reports covered a wide spectrum of program and policy areas, 
including opportunities to strengthen oversight of the broadband 
stimulus programs, lessons and oversight for high-speed rail 
investment, improving the public's understanding of Recovery Act fund 
use and expected outcomes in education and other areas, improving 
contracting approaches and oversight, use of highway and transit 
funds, and ensuring adequate oversight for clean water projects. 

We maintain a page on our external Web site [hyperlink, 
http://www.gao.gov/recovery] where the public can find information on 
Recovery Act outlays, our bimonthly reviews and reports on each of the 
selected states and the District of Columbia, related podcasts, and 
how to report allegations of abuse of Recovery Act funds. 

Managing Our Resources: 

Resources Used to Achieve Our Fiscal Year 2010 Performance Goals: 

Our financial statements for the fiscal year ending September 30, 
2010, were audited by an independent auditor, Clifton Gunderson, LLP, 
and received an unqualified opinion. They found our internal controls 
to be effective-—which means that no material weaknesses were 
identified-—and reported that we substantially complied with the 
applicable requirements for financial systems in FFMIA. In addition, 
they found no instances of noncompliance with the laws or regulations 
in the areas tested. In the opinion of the independent auditor, our 
financial statements are presented fairly in all material respects and 
are in conformity with generally accepted accounting principles. The 
auditor's report, along with the statements and their accompanying 
notes, begin on page 94 of the full report. Table 2 summarizes key 
data. 

Table 2: GAO's Financial Highlights: Resource Information: 

Total budgetary resources[A]: 
Fiscal year 2010: $613.0 million; 
Fiscal year 2009: $580.6 million. 

Total outlays[A]: 
Fiscal year 2010: $593.8 million; 
Fiscal year 2009: $539.9 million. 

Net cost of operations: 

Goal 1: Well-being/financial security of the American people; 
Fiscal year 2010: $210.1 million; 
Fiscal year 2009: $191.3 million. 

Goal 2: Changing security threats/challenges of global interdependence; 
Fiscal year 2010: $173.5 million; 
Fiscal year 2009: $168.4 million. 

Goal 3: Transform the federal government to address national 
challenges; 
Fiscal year 2010: $196.5 million; 
Fiscal year 2009: $177.1 million. 

Goal 4: Maximizing the value of GAO; 
Fiscal year 2010: $29.4 million; 
Fiscal year 2009: $27.7 million. 

Less reimbursable services not attributable to goals: 
Fiscal year 2010: ($6.6 million); 
Fiscal year 2009: ($5.7 million). 

Total net cost of operation[A]: 
Fiscal year 2010: $602.9 million; 
Fiscal year 2009: $558.8 million. 

Actual full-time equivalents[B]: 
Fiscal year 2010: 3,347; 
Fiscal year 2009: 3,204. 

Source: GAO. 

[A] The net cost of operations figures include nonbudgetary items, 
such as imputed pension and depreciation costs, which are not included 
in the figures for total budgetary resources or total outlays. 

[B] This total includes full-time equivalents for our base budget as 
well as TARP and Recovery Act funding. 

[End of Table 2: GAO's Financial Highlights: Resource Information] 

We focus most of our financial activity on the execution of our 
congressionally approved budget with most of our resources devoted to 
the people needed for our mission. In fiscal year 2010, our budgetary 
resources included new appropriations of $558 million as well as $20.8 
million available through fiscal year 2010 to cover program reviews 
required by the Recovery Act. We also received $7.5 million in 
reimbursement from Treasury to support activities related to 
monitoring the implementation of TARP, including bimonthly reporting 
and conducting an annual audit of the Office of Financial Stability's 
financial statements for TARP. 

Our total assets were $122 million, consisting mostly of property and 
equipment (including the headquarters building, land and improvements, 
and computer equipment and software) and funds with the U.S. Treasury. 
The balance in funds with the U.S. Treasury decreased by $13.5 
million, a result of the combination of fully expending the remaining 
balance of the Recovery Act funds offset by an increase in 
reimbursable funds collected. Total liabilities of $111 million were 
composed largely of employees' accrued annual leave, employees' 
salaries and benefits, amounts owed to other government agencies, and 
nongovernmental accounts payable. The greatest change in our 
liabilities is an increase of $3.8 million in nongovernmental accounts 
payable due primarily to the timing of billings on service contracts 
resulting in a larger accrual this fiscal year compared to last 
fiscal year. The decrease in capital lease liability of $2.2 million 
is a result of paying down the existing leases. 

We report net cost of operations according to our four strategic 
goals, consistent with our strategic plan. Overall, our net costs of 
operations increased by $44 million, due primarily to increases in 
salaries and benefits. The increase in costs for goal 1 (Well-being 
and financial security of the American people) and goal 3 
(Transforming the federal government to address national challenges) 
can be substantially attributed to the increase in Recovery Act 
efforts this fiscal year. 

Financial Systems and Internal Controls: 

We recognize the importance of strong financial systems and internal 
controls to ensure our accountability, integrity, and reliability. To 
achieve a high level of quality, management maintains a quality 
control program and seeks advice and evaluation from both internal and 
external sources. 

We complied with the spirit of the Office of Management and Budget 
(OMB) Circular A-123, Management's Responsibility for Internal 
Control, which provides guidance for agencies' assessments of internal 
control over financial reporting. We performed this assessment by 
identifying, analyzing, and testing internal controls for key business 
processes. Based on the results of the assessment, we have reasonable 
assurance that internal control over financial reporting, as of 
September 30, 2010, was operating effectively and that no material 
control weaknesses exist in the design or operation of the internal 
controls over financial reporting. Additionally, our independent 
auditor found that we maintained effective internal controls over 
financial reporting and compliance with laws and regulations. 
Consistent with our assessment, the auditor found no material internal 
control weaknesses. 

We are also committed to fulfilling the internal control objectives of 
FMFIA. Our internal controls are designed to provide reasonable 
assurance that transactions are properly recorded, processed, and 
summarized to permit the preparation of financial statements, and that 
assets are safeguarded against loss from unauthorized acquisition, 
use, or disposition. Further, they are designed to ensure that 
transactions are executed in accordance with the laws governing the 
use of budget authority and other laws and regulations that could have 
a direct and material effect on the financial statements. We are also 
committed to fulfilling the objectives of FFMIA. We believe that we 
have implemented and maintained financial systems that comply 
substantially with federal financial management systems requirements, 
applicable federal accounting standards, and the U.S. Government 
Standard General Ledger at the transaction level as of September 30, 
2010. We made this assessment based on criteria established under 
FFMIA and guidance issued by OMB. 

Our Inspector General (IG) also conducts audits and investigations 
that are internally focused. During fiscal year 2010, the IG examined 
compliance with our policy and procedures for conflict-of-interest 
determinations and conducted reviews of our information security 
program. No material weaknesses were reported. 

In addition, our Audit Advisory Committee assists the Comptroller 
General in overseeing the effectiveness of our financial reporting and 
audit processes, internal controls over financial operations, and 
processes that ensure compliance with laws and regulations relevant to 
our financial operations. The committee's report appears on page 93 of 
the full report. 

Networks, Collaborations, and Partnerships: 

Achieving our strategic goals and objectives requires us to coordinate 
with other organizations with similar or complementary missions. We 
use advisory panels and other bodies to inform our planning and 
maintain strategic working relationships with other domestic and 
international government accountability and professional 
organizations, including the federal inspectors general, state and 
local audit organizations, and other countries' national audit offices. 

By collaborating with our domestic and global networks, we have 
acquired, expanded, and shared our knowledge and expertise, which 
continued to help to build capacity within our agency and among our 
collaborative partners. On the domestic front, collaboration has 
become increasingly important because monitoring Recovery Act spending 
through the federal, state, and local levels required increased 
coordination with federal inspectors general and state and local audit 
offices. The relationships built through these channels, as well as 
through the intergovernmental audit forums, have proven particularly 
valuable for our staff as they continue to conduct a wide range of 
audit work in the states. On the international front, coordination and 
collaboration have also been important since many of our domestic
challenges require global interaction and our staff are engaged in 
work that requires them to obtain information from foreign governments 
and officials. For example, the International Organization of Supreme 
Audit Institutions has provided a forum for us to stay abreast of 
international accounting, auditing, and reporting standards and to 
share information about the effect of the financial crisis globally. 

Internal Management Challenges and External Factors That Could Affect 
Our Performance: 

The Comptroller General, the Executive Committee, and other senior 
executives identify management challenges through the agency's 
strategic planning, management, internal controls, and budgeting 
processes. Under strategic goal 4, several performance goals focus 
on each of our management challenges. Each year, our IG examines 
management's assessment of the challenges and the agency's progress in 
addressing them (see p. 118 of the full report). 

In fiscal year 2010, we continued to address three priority management 
challenges—-physical security, information security, and human capital—-
each of which is affected by external factors that could impact our 
performance, requiring us to continuously identify ways to adapt and 
improve our internal operations. 

Physical Security Challenge: 

Domestic and international events, both ongoing and anticipated, 
present challenges in terms of physical security of our staff and 
facilities, emergency preparedness, and continuity of operations. To 
ensure our ability to protect our people and our assets, we must 
constantly assess our physical security profile to identify and 
implement improvements. To address this challenge in fiscal year 2010, 
we: 

* awarded a contract for encrypted mobile radios and radio antennas 
and repeaters for our contract security unit and emergency 
preparedness staff to support headquarters emergency operations; 

* strengthened our protective measures for our hearing impaired 
employees in headquarters by providing them with mobile devices to 
alert them of evacuations and adding procedures for ensuring their 
safe evacuation from the building; 

*enhanced our adherence to Homeland Security Presidential Directive 12 
standards for federal building access by conducting about 630 minimum 
background investigations of government and contractor staff; 

* strengthened our emergency preparedness through required annual 
continuity awareness training. 

Information Security Challenge: 

Through our physical and electronic information security programs, we 
continuously assess threats; identify enhancements to policy, 
procedures, and technology; and ensure that the steps we take to 
address these threats limit risks to the agency. Our overall goal is 
to ensure that information protection requirements extend across the 
life cycle of audit work from data collection, report production, and 
data transmission and storage to the eventual archiving and disposal 
of data. To address this challenge in fiscal year 2010, we: 

* provided better access control to our network and information 
through additional data protection encryption and identity management 
options; 

* increased our vigilance in the auditing of network servers and 
devices through the use of automated tools; 

* enhanced our configuration and change management capabilities by 
consolidating our automated monitoring process across all network 
systems; 

* enhanced initial security awareness training to better prepare new 
staff to properly handle and protect sensitive and classified 
government information. 

Human Capital Challenge: 

We depend on a talented and diverse, high-performing, knowledge-based 
workforce to accomplish our work and carry out our mission in support 
of the Congress. To sustain the quality of our services and the demand 
for our work, we must continue to focus our efforts on recruiting, 
developing, and retaining our workforce. We must also continue to 
build on our efforts to promote a work environment that is fair, 
unbiased, and inclusive, as well as one that offers opportunities for 
all employees to realize their full potential. To address this 
challenge in 2010, we: 

* negotiated the majority of the articles for our master collective 
bargaining agreement with the GAO Employees Organization, 
International Federation of Professional and Technical Engineers, 
Local 1921, using interest-based bargaining; 

* implemented actions in our Workforce Diversity Plan to improve 
recruitment, such as increasing the use of the student career 
experience program, establishing partnerships with intern 
programs representing diverse populations, and expanding outreach 
activities to campuses and professional associations with diverse 
members and affiliates; 

* enhanced our recruiting, hiring, and retention programs by 
developing a strategic recruiting framework, and streamlining the 
student loan repayment program process; 

* completed a review of our performance management system in response 
to concerns from staff that it was not working well, briefed all 
employees on the findings, and awarded a contract for development of a 
new performance management system; and; 

* expanded supervisory and leadership training to improve how managers 
and staff elicit, receive, and give feedback, and introduced new 
courses to develop and refine skills on teamwork, improving 
communication, and coaching. 

Mitigating External Factors: 

Other external factors that could affect our performance and progress 
toward our goals include shifts in congressional interests, the 
ability of other agencies to make improvements needed to implement our 
recommendations, resource constraints, and access to agency 
information. We mitigate these factors in several ways. 

While demand for our work is very high--with nearly 1,000 
congressional requests and new mandates in fiscal year 2010--as the 
Congress responds to current and unforeseen events, the mix of work we 
are asked to perform can and does change. To be prepared to address 
timely and relevant issues, we communicate frequently with our 
congressional clients to stay abreast of their interests. In addition, 
each year we conduct a limited number of evaluations under the 
Comptroller General's authority to address priority issues we 
identify. We also strive to maintain flexibility in deploying our 
resources in response to shifting priorities and have successfully 
redirected our resources when appropriate and maintained broad-based 
staff expertise. 

Federal funding and resource constraints could also affect our ability 
to serve the Congress and meet our performance targets. To improve our 
ability to work efficiently and make the best use of resources, we are 
focused on leveraging technology and enhancing our quality assurance 
processes. For example, in fiscal year 2010, we upgraded the 
capability of several information systems used by our engagement teams 
to manage their work. 

The extent to which we can obtain access to agency information also 
plays an essential role in our ability to report on issues of 
importance to the Congress and the American people. While we generally 
receive very good cooperation in response to our information requests, 
over time we have experienced access issues at certain departments and 
agencies. Some of these are agency specific, stemming from long-
standing processes and procedures that impede our access; others 
reflect misinterpretations of our authorities. We actively pursue 
access issues as they arise, and we are engaged in discussions and 
efforts across the executive branch to enhance our access to 
information. Access to information is described in more detail on 
pages 57-58 of the full report. 

[End of About GAO] 

Image Sources: 

This section contains credit and copyright information for images and 
graphics in this product, as appropriate, when that information was 
not listed adjacent to the image or graphic. 

Front cover: GAO (Capitol, Flag). 

Inside front cover: Corbis (Capitol dome interior). 

Page 3: Corbis (Columns), PhotoDisc (Flag). 

Page 5: PhotoDisc (Flag), GAO (Seal). 

Inside back cover: Comstock Images (Capitol at night). 

Providing Comments on This Report: 

To provide comments for improving this document, please contact our 
Chief Quality Officer, who can be reached at 02) 512-6100, at 
qci@gao.gov, or at the following address: 

U.S. Government Accountability Office: 
441 G Street NW, Room 6K17Q: 
Washington, D.C. 20548: 

Obtaining Copies of GAO Documents: 

The fastest and easiest way to obtain copies of GAO documents at no 
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each 
weekday afternoon, GAO posts on its Web site newly released reports, 
testimony, and correspondence. To have GAO e-mail you a list of newly 
posted products, go to [hyperlink, http://www.gao.gov] and select "E-
mail Updates." 

However, you can also order GAO documents by phone. The price of each 
GAO publication reflects GAO's actual cost of production and 
distribution and depends on the number of pages in the publication and 
whether the publication is printed in color or black and white. 
Pricing and ordering information is posted on GAO's Web site, 
[hyperlink, http://www.gao.gov/ordering.htm]. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 
TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card, 
MasterCard, Visa, check, or money order. Call for additional 
information. 

Inside Back Cover: 

This document and related products are available through our Web site 
at [hyperlink, http://www.gao.gov/sp.html]. Also linked to that page 
are our strategic plan and our past performance and accountability 
publications. 

Other Web pages of possible interest: 

Legal products: 

Download legal decisions and opinions about appropriations, bid 
protests, and major federal agency rules [hyperlink, 
http://www.gao.gov/legal.htm]. 

E-mail alerts: 

Get automatic updates on new GAO products [hyperlink, 
http://www.gao.gov/subscribe/index.php]. 

Careers at GAO: 

Review current job openings, apply online, and learn about GAO's teams 
and offices [hyperlink, http://www.gao.gov/jobopp.htm]. 

FraudNet: 

Report allegations of fraud, waste, abuse, or mismanagement of federal 
funds [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]. 

[End of Inside Back Cover] 

[End of Summary of GAO's Performance and Financial Information, Fiscal 
Year 2010]