Origins
The Government Accountability Office was established by the Budget and Accounting Act of 1921 as the General Accounting Office, part of Progressive Era reforms to modernize federal financial management. Before GAO, no independent body audited federal spending or evaluated whether agencies accomplished their statutory missions. The chaos of World War I financing and the executive branch’s resistance to congressional oversight created demand for a legislative branch watchdog.
The 1921 Act created GAO as an independent agency within the legislative branch, headed by a Comptroller General appointed by the President with Senate confirmation for a fifteen-year term. This long tenure, combined with removal only through congressional joint resolution or impeachment, insulated the Comptroller General from political pressure. The agency absorbed auditing functions previously scattered across the Treasury Department, consolidating financial oversight under congressional control.
GAO’s early decades focused on voucher auditing—examining individual financial transactions for compliance with law. This retrospective accounting work, while necessary, consumed resources without addressing whether programs achieved their purposes. Comptroller General Elmer Staats (1966-1981) transformed GAO into a program evaluation agency, assessing whether government activities actually worked. This shift from counting dollars to measuring results dramatically expanded GAO’s influence.
Structure & Function
GAO employs approximately 3,000 analysts, auditors, attorneys, and specialists, making it one of the largest congressional support agencies. The Comptroller General, currently serving as head of the agency, directs operations with substantial independence. Professional staff hold advanced degrees in fields ranging from accounting and public administration to engineering and economics, enabling analysis of complex programs across all government activities.
The agency conducts work at congressional request, under standing mandates, or on its own initiative. Most engagements begin when a committee chair or ranking member requests an audit, investigation, or evaluation. GAO produces several hundred reports annually, examining topics from weapons system costs to healthcare program effectiveness to cybersecurity vulnerabilities. Reports include findings, conclusions, and recommendations—though agencies are not legally required to implement them.
GAO’s powers extend beyond traditional auditing. The agency investigates fraud, waste, and abuse, sometimes working with inspectors general and law enforcement. It resolves bid protests when contractors challenge federal procurement decisions. It maintains the “High Risk List” identifying government programs vulnerable to waste or mismanagement. Legal opinions interpreting appropriations law guide agency spending across the executive branch. These diverse functions make GAO central to congressional oversight.
Historical Significance
GAO has documented waste, inefficiency, and program failures across every area of federal activity. Agency reports have exposed cost overruns in weapons systems, fraud in benefit programs, and management failures in agencies from the IRS to Veterans Affairs. The High Risk List, published since 1990, has focused attention on problems including Medicare improper payments, Department of Defense financial management, and government-wide IT security.
The agency’s independence has sometimes created tension with the executive branch. Presidents from Truman to Trump have resisted GAO access to documents and witnesses. Court battles over GAO’s authority to compel executive branch cooperation have produced mixed results, with the agency generally relying on congressional pressure rather than judicial enforcement. This tension reflects the constitutional struggle between legislative oversight and executive privilege.
GAO’s credibility rests on nonpartisanship and methodological rigor. Reports critical of programs championed by both parties demonstrate independence. Professional standards for evidence and analysis, developed through the “Yellow Book” (Government Auditing Standards), have become benchmarks for government auditing worldwide. This reputation enables GAO findings to influence policy debates even when recommendations are not formally binding.
Key Developments
- 1921: Budget and Accounting Act creates General Accounting Office
- 1921: John Raymond McCarl becomes first Comptroller General
- 1945: GAO begins comprehensive audits of government corporations
- 1950: Budget and Accounting Procedures Act modernizes financial management
- 1967: GAO begins program evaluation work under Comptroller General Staats
- 1970: Legislative Reorganization Act expands GAO’s analytical role
- 1980: Inspector General Act creates IGs; GAO coordinates oversight
- 1990: First High Risk List identifies programs vulnerable to waste
- 2004: Agency renamed Government Accountability Office
- 2008: GAO reports on financial crisis and government response
- 2010: GAO identifies billions in improper payments across government
- 2017: GAO added Census Bureau to High Risk List before 2020 count
- 2020: CARES Act oversight responsibilities dramatically expand GAO workload
- 2024: GAO continues oversight of pandemic relief spending