The General Accounting Office(GAO)is the supreme auditing institution in the United States. It is well known in the world for its ability to make the Federal government as transparent and clean as possible. It had even brought American Vice President Dick Cheney to court. In this July it has been surprisingly renamed into the Government Accountability Office, a practice quite rare among American Government agencies. What is behind the name change? What makes a good auditing institution and a good comptroller general? How does GAO think of China's nation-wide Auditing Storm unfolding at the moment? What suggestions does GAO have for auditing and government accountability reform in China today?

With these questions in mind, Yong Tang, a Washington-based People's Daily correspondent has recently conducted an exclusive interview with Comptroller General David M. Walker just a few days after he returned to Washington DC from his trip to China.

Yong Tang: Why has the General Accounting Office been renamed into the Government Accountability Office?

Walker: We made this change after 83 years because our old name, as familiar and reassuring as it was, hadn't kept pace with GAO's changing role in government. The truth is that "accounting" was never our central mission.

Frankly, our old name also confused people. Some college students we were trying to recruit mistakenly assumed that you needed an accounting degree to work at GAO. New members of Congress, cabinet-level officials, and prominent journalists have, because of our name, thought that GAO's main job was to keep the government's books.

In fairness, GAO did primarily scrutinize government vouchers and receipts in its early years. But the days of accountants in green eyeshades are long gone. Although GAO serves as the lead auditor of the U.S. government's consolidated financial statements, financial audits represent only about 15 percent of GAO's current workload. Most of our work involves performance audits, program evaluations, policy analyses, and legal opinions and decisions on a broad range of government programs and activities, both at home and abroad.

Today, GAO is a modern, multidisciplinary professional services organization whose 3,200 employees include economists, social scientists, attorneys, actuaries, and computer experts as well as specialists in areas from health care to homeland security.

We'll still be known as GAO, but our new name will make it clear that our first priority is to improve the performance of the federal government and ensure its accountability to Congress and the American people.

Yong Tang: How does the American auditing system work?

Walker: Every major department in the federal government has its own Inspector General, whose job is to fight waste, fraud, abuse, and mismanagement within its department. They also do the financial statement audits for their respective agencies. Unlike the Inspectors General, GAO deals with broader, more complex, strategic, and long-range issues that often cut across agency lines. Once GAO identifies a problem, it makes recommendations to the agency and Congress. If the relevant federal agency fails to respond to those recommendations, Congress can take steps to force the agency to act.

Yong Tang: GAO is a legislative branch agency whose chief mission is to ensure the accountability of the federal government. But who ensures the accountability of Congress and the Supreme Court?

Walker: Under current law, only the executive branch is subject to annual financial statement audits. Although the executive branch comprises the vast majority of the federal government's 2.2 trillion (U.S. dollars) in annual expenditures, it's fair to say that the American taxpayer is also interested in spending by the legislative and judicial branches. So these two branches have their own Inspectors General for inside auditing and they both voluntarily subject themselves to independent outside auditing on a regular basis. For example, every year GAO undergoes an independent, external financial audit, the results of which are publicly reported. I'm pleased to say that GAO consistently receives an unqualified opinion with no material control weaknesses and no major compliance problems.

Yong Tang: GAO announced in June that the Pentagon had misused about $100 million in public funds during the last six years to buy airline tickers for its employees. Some Defense Department officials even used taxpayer dollars to pay for their girlfriends' breast implants. What penalties did GAO impose on the Pentagon?

Walker: Under the U.S. Constitution, GAO has no authority to impose penalties on the executive branch. Instead, we identify problems and make constructive recommendations to resolve them. The relevant federal agencies are responsible for acting on those recommendations in a meaningful way. If they fail to do so, Congress can hold hearings or take other measures to compel agencies to act. Congress can also refer matters to the Department of Justice for prosecution.

Yong Tang: Has the Pentagon taken steps to correct its problems?

Walker: Yes, they have, but much more remains to be done. The Pentagon spends more than $400 billion each year and has more than 2 million military and civilian employees. Obviously, it's one of the biggest institutions in the world. So GAO keeps a fairly close eye on what's going on there. Currently, nine of 25 problem areas in government that make up GAO's high-risk list are at the Department of Defense.

Yong Tang: Does the federal government take your recommendations seriously?

Walker: Yes, more than 80 percent of GAO's recommendations are eventually adopted. That's a very high percentage. It's also a good indicator of the value of our work. Last year, we made more than 2,000 specific recommendations to improve government operations. To give you a sense of the scope and breadth of GAO's work, this list includes suggestions on everything from improving the government's contracting and acquisition practices to strengthening security at federal buildings to improving the quality of care at nursing homes. We carefully track the status of all open recommendations.

Yong Tang: GAO also found recently that several federal agencies have misused and even abused their government credit cards. These agencies include the Department of Agriculture, the Army, the Navy, the Air Forces, the Department of the Interior, the Department of Justice, and the Department of Transportation. In the fiscal year of 2001, at least 2000 active-duty soldiers used their government credit cards to pay for access to gentlemen's clubs. Could it be that the federal government is not as clean and efficient as it claims?

Walker: The federal government is the largest; most complex; and, arguably, the most important entity on earth. By definition, waste, fraud, abuse, and mismanagement will never be zero in such an enormous entity. But everything's relative, and I think it's safe to say that the U.S. government has much less waste, fraud, abuse, and mismanagement than do most governments.

Although such obvious misuse of taxpayer dollars cannot be tolerated, I think it's also essential that we focus on ways to improve the economy, efficiency, and effectiveness of government. After all, that's where the biggest savings will come from in the future. For instance, we must come to grips with the problem of mounting federal deficits and the government's long-term fiscal imbalance. When I attended the General Assembly of the International Social Security Association in Beijing this September, I discussed with other participants how governments around the world need to take seriously emerging demographic trends and rising health care costs-both of which have become global challenges.

Yong Tang: That means prevention is better than cure?

Walker: Yes. Our goal is not simply to hold individuals accountable but to help prevent problems before they occur.

Yong Tang: GAO announced in May that 28 high-ranking federal employees had fake diplomas or academic credentials. Why should GAO care whether a government official has a fake degree?

Walker: It has to do with integrity. Someone without integrity shouldn't be in a position of public trust. I don't know the exact number of government officials involved, but I do know that a number of fake credentials have been confiscated.

Yong Tang: You sued American Vice President Dick Cheney over access to the records of his energy task force. What was the final outcome of this case?

Walker: The Washington District Court dismissed the case on procedural grounds but did not rule on the merits of the case. We thought that the court's decision was incorrect, but for various reasons we decided not to appeal.

Yong Tang: How did you feel about taking on such an important figure?

Walker: I don't like suing people, and I don't like being sued. This was the first time GAO took the Executive Branch to court. I think it's very important to ensure that all government officials, including the President and the Vice President, work for the people. All government officials should be held to a reasonable degree of transparency and an appropriate degree of accountability for their actions.

Yong Tang: You worked at Arthur Andersen LLP, where you were a partner and a global managing director of the human capital services practice in Atlanta, Georgia. How did this background affect the Walker v. Cheney lawsuit?

Walker: I worked at Arthur Andersen from 1989 until 1998, before they had problems. My responsibilities at Arthur Andersen had nothing to do with Enron, Worldcom, or other problem accounts. And my work experience there had no bearing at all on GAO's lawsuit against the Vice President.

Yong Tang: In 1998, you were nominated as Comptroller General by former President Bill Clinton and approved by the Senate. Your term of office is 15 years. Why is your tenure so long?

Walker: The head of GAO does serve a 15-year term of office, which gives my agency a continuity of leadership that is rare in the federal government. I should point out that the Comptroller General can be removed from office only by impeachment or by a joint resolution of Congress signed by the President, and then only for very specific reasons. As a result, he or she can afford to take a long-term view and address a range of complex and sometimes controversial issues.

It's important to have people in government who are able to consider long-range challenges and to tackle issues that can take some time to address effectively. The long tenure also allows the Comptroller General to speak truth to power and to promote truth and transparency in government operations-without regard to his or her own job security.

Yong Tang: So, it's hard to fire the Comptroller General. You may be the happiest official in the United States. But your work must make a lot of bureaucrats unhappy. Have you ever been intimidated?

Walker: No. People do occasionally express their displeasure with GAO's reports and recommendations, but I have great confidence in our work and I let the facts speak for themselves.

Yong Tang: According to media reports, the two people you admire most are Theodore Roosevelt and John F. Kennedy. Why do you admire them?

Walker: Actually, there are four other people I also look to for inspiration: George Washington, Thomas Jefferson, Abraham Lincoln, and Robert E. Lee. Let's talk about Theodore Roosevelt. He was an internationalist, a fiscal conservative, and a social progressive. He was a man of great ability and solid character. He did what he thought was right, not what was popular at the time. He won the Nobel Peace Prize and received the Congressional Medal of Honor for valor in combat. In my view, Theodore Roosevelt was one of our greatest Presidents.

Yong Tang: Do you think these individuals would make a good comptroller general?

Walker: Yes. People in positions with important responsibilities need a good education and solid professional skills. But they also need to have well-developed sense of personal values to guide their actions. I believe that core values are the key to making sound decisions during a time of rapid change and increasing complexity. My own personal core values are leadership, integrity, and innovation. GAO's institutional core values are accountability, integrity, and reliability. Accountability is what we do, integrity is how we do it, and reliability is how we'd like our work to be received.

Yong Tang: According to news accounts, in your office you have a carpet with three words woven into it: accountability, integrity, and reliability. I understand you've set extremely high standards for your 3,200 employees. Is it true that you expect them to get every figure accurate to the fourth digit after the decimal point?

Walker: I do have such a carpet in my office. It was made in Asia, but I'm not sure which country. I can't check the label right now. (Laughter.) I have to say that in most cases I don't expect our people to be precise to the fourth digit. Anyway, GAO enjoys an outstanding reputation because we have outstanding people who do great work that stands the test of time. We not only strive to do the right thing but we strive to get things right. Mistakes can tarnish GAO's reputation and diminish our effectiveness, so we do our best to avoid them.

Yong Tang: From an historical perspective, how would you characterize GAO's impact?

Walker: GAO is becoming more and more important. Washington, D.C. is a city full of interest groups with competing agendas. GAO's strength is its ability to provide Congress with professional, objective, fact-based, nonpartisan, and nonideological information when it is needed. GAO regularly consults with lawmakers and agency heads on ways to make government work better, whether it's adopting best practices or consolidating or eliminating redundant federal programs.

People listen to what we have to say, and we get results. Since 2000, GAO has issued an annual report that explains what the agency has accomplished with its resources and what it expects to achieve in the coming year. For example, our work last year generated $35 billion in measurable financial benefits-a $78 return on every dollar invested in GAO. GAO's latest performance and accountability report will be published on the agency's website shortly.

Yong Tang: You have been to China this month. What have you talked about with your Chinese counterpart? What have you achieved during this China journey?

Walker: I attended the 28th General Assembly of the International Social Security Association in Beijing on September 17. I also spoke with Chinese Auditor General Li Jinhua about a number of issues of mutual interest and concern. For example, we discussed what steps each of our offices are taking to fight corruption, improve government performance and assure accountability to our respective citizens. We discussed the proposed strategic plan for the International Organization of Supreme Audit Institutions that is scheduled to be adopted in October at our international Congress in Budapest. We also discussed the positive actions that resulted from our meeting with former Premier Zhu Rongji three years ago. For example, as a result of that meeting the government decided to make the reports of the CNAO available to the public.

Interestingly, the National People's Congress was in session during my visit. I was pleased to see that, according to a CNN report, the Congress was openly discussing the need to fight corruption, promote transparency and assure accountability in government. This report and

my discussions with Li Jinhua serve as evidence that progress is being made in the area of government reform.

In addition to sharing knowledge and experiences, during our visit we were able to strengthen our personal relationship. This is important and should prove to be very helpful in future bi-lateral and multi-lateral activities. We also agreed to meet again in November at an OECD meeting to discuss a variety of issues, including the need to develop a set of key national indicators to assess the position and progress of various nations in selected key areas.

During my visit, I was impressed by Beijing's growth and development since my last visit three years ago. At the same time, the traffic has gotten much worse.

On a different note, I'm sure that China is looking forward to the 2008 Olympics. I had the good fortune of living in Atlanta during the 1996 Olympics. It was a great experience and one that I will never forget.

Yong Tang: Have you ever heard about the nation-wide auditing storm unfolding in China today?

Walker: A little bit. I've read a few articles on that. I know that Dr. Li Jinhua is trying very hard to fight corruption, promote transparency, and ensure accountability in the Chinese government. Auditing is an important job, but it can also be very controversial.

Yong Tang: How do you think of your Chinese counterpart Li Jinhua?

Walker: I've only met him once before but I was very impressed with him. During my first visit, we met with Premier Zhu Rongji to discuss issues of mutual interest and concern, such as the need to increase transparency in government programs and activities. It was a lengthy and productive meeting. Dr. Li seems like someone who takes his job very seriously and who's committed to improving the performance and ensuring the accountability of the Chinese government. He strikes as someone of ability and integrity. Of course, it takes more than one person to build a strong national audit office. But having the right leader is extremely important.

Yong Tang: Are there any cooperative programs between China and the United States in the auditing field?

Walker: Both the Chinese National Auditing Office and GAO are members of the International Organization of Supreme Audit Institutions, which is a professional association that promotes knowledge sharing. We're having our global Congress this October-an event held once every three years. I hope Dr. Li will be able to attend and that we have an opportunity to talk further. We've also participated in several bilateral training and information exchange programs.

Yong Tang: Do you have any suggestions when it comes to auditing and accountability reforms in China?

Walker: I can't stress enough the importance of promoting openness and transparency in how a government and its officials do business. Another area my Chinese colleagues may want to focus on is the state of internal controls within various government departments and agencies. Finally, it's vital that a supreme audit institution have an appropriate degree of independence and adequate authorities and resources to get the job done. (END)

Biography

David M. Walker became the seventh Comptroller General of the United States and began his 15-year term when he took his oath of office on November 9, 1998. As Comptroller General, Mr. Walker is the nation's chief accountability officer and head of the U.S. Government Accountability Office (GAO), a legislative branch agency founded in 1921.

Before his appointment as Comptroller General, Mr. Walker had extensive executive level experience in both government and private industry. Between 1989 and 1998, Mr. Walker worked at Arthur Andersen LLP, where he was a partner and global managing director of the human capital services practice based in Atlanta, Georgia. He was also a member of the board of Arthur Andersen Financial Advisors, a registered investment advisor. While a partner at Arthur Andersen, Mr. Walker served as a Public Trustee for Social Security and Medicare from 1990 to 1995. Before joining Arthur Andersen, Mr. Walker was Assistant Secretary of Labor for Pension and Welfare Benefit Programs from 1987 to 1989 and in 1985, was Acting Executive Director of the Pension Benefit Guaranty Corporation. His earlier technical, professional, and business experience was with Price Waterhouse, Coopers & Lybrand and Source Services Corporation, an international human resources consulting and search firm.

Mr. Walker serves as Chair of the U.S. Intergovernmental Audit Forum, the U.S. Joint Financial Management Improvement Program, and the Center for Continuous Auditing. He is on the Board of the International Organization of Supreme Audit Institutions and various educational and not-for-profit entities. He is a Fellow of the National Academy of Public Administration and an active member of various professional public service, and other organizations. Mr. Walker is also listed in Who's Who in the World and Who?ˉs Who in America.

Mr. Walker is the author of Retirement Security: Understanding and Planning Your Financial Future (John Wiley & Sons, 1996) and a co-author of Delivering on the Promise: How to Attract, Manage and Retain Human Capital (Free Press, 1998). He has also written numerous articles and opinion letters on a variety of subjects. Mr. Walker is frequently quoted on a range of government and management issues and has been the subject of several cover stories in various national, professional and governmental journals.

Mr. Walker is a certified public accountant. He has a B.S. degree in accounting from Jacksonville University, a Senior Management in Government Certificate in public policy from the John F. Kennedy School of Government at Harvard University, and a Honorary Doctorate in Business Administration from Bryant College. He is married to the former Mary Etheredge, and they have two adult children-a daughter, Carol, and a son, Andy.(END)

By Yong Tang, Washington-based People's Daily correspondent