THE CONFERENCE HAS EMPHASIZED GOVERNMENT PROGRESS IN OVERCOMING FRAUD, ABUSE, AND ERROR, SUCH AS IN SAN FRANCISCO COUNTY WHERE WELFARE PAYMENT ERROR RATES HAVE BEEN REDUCED FROM 20 PERCENT IN EARLY 1975 TO 1.3 PERCENT IN EARLY 1977. THE HEALTH, EDUCATION, AND WELFARE DEPARTMENT'S PROJECT MATCH, A COMPUTER MATCHING PROGRAM TO MONITOR IMPROPER WELFARE PAYMENTS, HAD IDENTIFIED OVER 18,000 CASES FOR INVESTIGATION. TOTAL SAVINGS FROM THESE AND RELATED EFFORTS HAVE REACHED OVER $500 MILLION. A SYSTEM FOR SCREENING STUDENTS SEEKING LOANS WILL REDUCE COSTS BY AN ADDITIONAL $300 TO $500 MILLION THIS SCHOOL YEAR. ALSO, THE CONFERENCE SHOULD PROVE TO BE A SOURCE OF NEW INITIATIVES AND NEW PROGRAMS TO IMPROVE MANAGEMENT AND GUARD INTEGRITY AT THE STATE AND LOCAL LEVEL. RECENT FEDERAL GOVERNMENT INITIATIVES INCLUDE A NATIONAL IDENTIFICATION SYSTEM FOR RECIPIENTS OF AID TO FAMILIES WITH DEPENDENT CHILDREN FUNDS AND A PROGRAM TO AID COLLECTION OF STUDENT LOANS. THE CONFERENCE HAS EMPHASIZED THAT ERROR IS A BIGGER SOURCE OF WASTE THAN FRAUD. WASTE IS OFTEN DUE TO LEGISLATURES' FAILURES TO ENACT NEEDED PROGRAMS. MOREOVER, THE ATTACK ON FRAUD AND WASTE IS DIRECTED AT ALL GOVERNMENT PROGRAMS, NOT JUST HUMAN SERVICE PROGRAMS. FINALLY, THE CONFERENCE HAS HEIGHTENED ENTHUSIAM FOR THE WORK AHEAD. FOR THE TEXT OF CALIFANO'S OPENING ADDRESS TO THE CONFERENCE, SEE NCJ-64158. (CFW)