The General Accounting Office (GAO) investigates problems and issues for members of Congress. The GAO examines the use of public funds, evaluates federal programs and activities, and provides analyses, options, recommendations, and other assistance to Congress. Where the Office of Management Budget (OMB) provides analytical support to the executive branch of government, the GAO works for the legislative branch of government. The GAO is sometimes called the “congressional watchdog,” investigating how the federal government spends taxpayer dollars. GAO reports are often used by members of Congress as a basis for drafting legislation, supporting or opposing legislation, and evaluating the economic impact of proposed policies. Companies doing business with the federal government monitor and attempt to influence GAO reports. Critical GAO reports can hinder business-favorable legislation or result in termination of current government contracts with a business. Since the U.S. Senate and House of Representatives contain members from both major political parties, the GAO faces challenges providing unbiased analyses. The GAO • evaluates how well government policies and programs are working • audits agency operations to determine whether federal funds are being spent efficiently, effectively and appropriately • investigates allegations of illegal and improper activities • issues legal decisions and opinions The GAO releases over 1,000 documents annually, often in the form of “blue book” reports, in response to requests for analysis of current issues being debated by Congress. The GAO was created in 1921 in response to financial management problems after World War I. The Budget and Accounting Act transferred AUDITING responsibilities, accounting, and claims from the Treasury Department to the new agency. The agency grew rapidly during the New Deal era of President Franklin Roosevelt and the expanded government spending associated with World War II. The GAO is directed by the Comptroller General, appointed for a 15-year term to insure the independence of the GAO from political pressures.