Maximizing the extent to whichgrants achieve their long-termperformance goals is critical tosuccessfully addressing thechallenges of the 21st century.While performance accountabilitymechanisms are fairly new tofederal grants, they have been usedin contracts for some time andlessons learned have begun toinform federal grant design. Giventhis, GAO was asked to examine(1) challenges to performanceaccountability in federal grants,(2) mechanisms being used toimprove grant performance, and(3) strategies the federalgovernment can use to encouragethe use of these mechanisms. GAOperformed a content analysis ofrelevant literature and interviewedexperts. To illustrate themechanisms and strategies foundin the literature, GAO usedexamples from the literature andselected additional caseillustrations-two federal grantprograms (vocational educationand child support enforcement)and two nonfederal contracts-forfurther study.

The U.S. Government Accountability Office (GAO) is an independent agency that works for Congress. The GAO watches over Congress, and investigates how the federal government spends taxpayers dollars. The Comptroller General of the United States is the leader of the GAO, and is appointed to a 15-year term by the U.S. President. The GAO wants to support Congress, while at the same time doing right by the citizens of the United States. They audit, investigate, perform analyses, issue legal decisions and report anything that the government is doing. This is one of their reports.

Government contracting is one of the most important issues facing federal, state, and local governments. As governments contend with lower tax revenues and a growing belief that smaller government is better government, contracting has become a fundamental means of providing goods and services to citizens. This volume, which is geared toward practitioners as well as students, addresses the broad range of issues that comprise government contracting – from the political, economic philosophy, and value of contracting – to the future of government contracting. Throughout the volume academic theory provides a foundation to address practical subjects, including the contract process, monitoring and evaluating contracts, ethics, and both federal and state local government contracting. Contributors to this volume are both academicians and practitioners, who together offer their scholarly expertise and practical experience, encouraging readers to ask the very question "What is the role of government in American society?" Through this approach, students will acquire the knowledge needed to understand the various aspects of government contracting, and practitioners will enhance their public procurement skills. Government Contracting is ideally suited to MPA students, practitioners in the public sector, and elected officials looking to enhance their understanding of privatization and contracting in order to provide public services more effectively.

While FG funding has been increasing, long-standing concerns remain about the fed. government's grants mgmt. and the lack of effective oversight tools to reasonably assure that FG are used for their intended purposes and that risks of fraud, waste, and abuse are minimized. The Admin. recognizes these concerns; it included improving grants mgmt. as a part of its initiative to eliminate waste in the U.S. gov't. and has various efforts underway to improve grants oversight. This testimony addresses the: (1) significance of FG funding; (2) risks and vulnerabilities in key controls in the FG life cycle; and (3) improvements needed to make the single audit process an effective accountability mechanism. Illustrations. This is a print on demand report.