oversight

Major Management Challenges and Program Risks: Department of Homeland Security

Published by the Government Accountability Office on 2003-01-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

               United States General Accounting Office

GAO            Performance and Accountability Series




January 2003
               Major Management
               Challenges and
               Program Risks
               Department of
               Homeland Security




GAO-03-102
               a
A Glance at the Agency Covered in This Report
The Department of Homeland Security (DHS) was established on January 24,
2003. This new cabinet department’s primary mission is to prevent terrorist
attacks within the United States, reduce the vulnerability of the United States to
terrorism, and minimize the damage and assist in the recovery from attacks that
do occur. The new department combines 22 federal agencies specializing in
various disciplines, such as law enforcement, border security, biological research,
computer security, and disaster mitigation. With an anticipated budget of almost
$40 billion and an estimated 170,000 employees, DHS is expected to be the third
largest government agency. DHS will be organized into four divisions:
●   Border and Transportation Security;
●   Emergency Preparedness and Response;
●   Chemical, Biological, Radiological, and Nuclear Countermeasures; and
●   Information Analysis and Infrastructure Protection.
The Coast Guard and Secret Service will report directly to the Secretary for
Homeland Security. The new department also will be responsible for the non-
homeland security functions of the agencies being merged into DHS, including the
Customs Service’s trade enforcement mission, the Coast Guard’s marine safety
responsibilities, and the Federal Emergency Management Agency’s natural
disaster recovery efforts.




This Series
This report is part of a special GAO series, first issued in 1999 and updated in
2001, entitled the Performance and Accountability Series: Major Management
Challenges and Program Risks. The 2003 Performance and Accountability Series
contains separate reports covering each cabinet department, most major
independent agencies, and the U.S. Postal Service. The series also includes a
governmentwide perspective on transforming the way the government does
business in order to meet 21st century challenges and address long-term fiscal
needs. The companion 2003 High-Risk Series: An Update identifies areas at high risk
due to either their greater vulnerabilities to waste, fraud, abuse, and
mismanagement or major challenges associated with their economy, efficiency, or
effectiveness. A list of all of the reports in this series is included at the end of
this report.
                                                    January 2003


                                                    PERFORMANCE AND ACCOUNTABILITY SERIES

                                                    Department of Homeland Security
Highlights of GAO-03-102, a report to
Congress included as part of GAO’s
Performance and Accountability Series




The new Department of Homeland                      DHS faces enormous challenges to protect the nation from terrorism. DHS
Security (DHS) faces unique                         must effectively combine 22 agencies with an estimated 170,000 employees
opportunities and risks for                         specializing in various disciplines, including law enforcement, border
ensuring the nation’s homeland                      security, biological research, computer security, and disaster mitigation.
security. The implementation and                    Further, DHS will oversee a number of non-homeland security activities.
transformation of DHS will be
complex, and the components
being merged into the new                           GAO has designated the implementation and transformation of DHS as a
department already face a wide                      high risk for three reasons. First, the size and complexity of the effort make
array of existing challenges. The                   the challenge especially daunting, requiring sustained attention and time to
information GAO presents in this                    achieve the department’s mission in an effective and efficient manner.
report is intended to sustain                       Second, components being merged into DHS already face a wide array of
congressional attention and a                       existing challenges that must be addressed. Finally, DHS’s failure to
departmental focus on addressing                    effectively carry out its mission exposes the nation to potentially very
these challenges. This report is                    serious consequences.
part of a special series of reports
on governmentwide and agency-                       Building an effective department will require sustained leadership from top
specific issues.
                                                    management to ensure the transformation of disparate agencies, programs,
                                                    and missions into an integrated organization. DHS leadership can learn from
                                                    the best practices of the private and public sectors to become a high-
                                                    performance organization. Achieving the national homeland security
DHS must effectively integrate                      strategy will require the current transition plan to be more comprehensive by
disparate agencies and activities                   addressing the full transition period and by identifying key activities and
into a cohesive organization to                     milestones. Critical aspects of DHS’s success will depend on well-
achieve the synergy for providing                   functioning relationships with third parties that will take time to establish
better homeland security against                    and maintain, including those with states and local governments, the private
terrorism. DHS should adopt                         sector, and other federal agencies with homeland security responsibilities.
public and private sector best                      DHS’s leadership will also need to focus on certain critical success factors,
practices, and build necessary
                                                    including human capital, information technology management, acquisition
management capacity and
oversight mechanisms to                             management, and financial management to create a results-oriented and
implement and transform the new                     accountable department for the long term.
department. DHS also must create
and maintain a structure that can                   The new department is being formed from components with a wide array of
leverage partners and stakeholders                  existing major management challenges and program risks. In fact, many of
to effectively implement the                        the major components merging into the new department, including the
national homeland security                          Immigration and Naturalization Service, the Transportation Security
strategy. Finally, DHS must                         Administration, Customs Service, Federal Emergency Management Agency,
confront a wide array of existing                   and the Coast Guard, face at least one major problem such as strategic
major management challenges and                     human capital risks, information technology management challenges, or
program risks in its incoming
                                                    financial management vulnerabilities; they also confront an array of program
agencies.
                                                    operations challenges and risks.

www.gao.gov/cgi-bin/getrpt?GAO-03-102.              In the final analysis, the success of DHS’s implementation and
                                                    transformation will depend largely on its ability to attract and retain the right
To view the full report, click on the link above.
For more information, contact Randall Yim at        people; set the appropriate priorities for the department; and build effective
(202) 512-3580 or yimr@gao.gov or Patricia          partnerships with the appropriate public, private, and not-for-profit sector
Dalton at (202) 512-6806 or                         entities.
daltonp@gao.gov.
Contents



Transmittal Letter                                                                                                1


Major Performance                                                                                                  2

and Accountability
Challenges

GAO Contacts                                                                                                      35


Related GAO Products                                                                                              36


Performance and                                                                                                   51
Accountability and
High-Risk Series




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                       Page i                                          GAO-03-102 Homeland Security Challenges
A
United States General Accounting Office
Washington, D.C. 20548
                                                                                            Comptroller General
                                                                                            of the United States




           January 2003                                                                                             T
                                                                                                                    ransmL
                                                                                                                         ta
                                                                                                                          ileter




           The President of the Senate
           The Speaker of the House of Representatives

           This report addresses the major management challenges and program risks facing the Department of
           Homeland Security (DHS) as it is formed through one of the largest, most complex mergers ever
           undertaken. The government has a unique opportunity to transform a disparate group of agencies
           into a strong and effective cabinet department.

           The implementation and transformation of this new department is an enormous undertaking that
           comes with significant risk. GAO has designated the implementation and transformation of DHS as a
           high-risk area for three reasons. First, the size and complexity of the effort make the challenge
           especially daunting. Second, the components being merged into DHS already face a wide array of
           existing challenges that must be addressed. Finally, DHS’s failure to effectively carry out its mission
           exposes the nation to potentially very serious consequences.

           This report provides an overview of the new department’s challenges and program risks as it seeks to
           simultaneously establish itself and protect the nation from terrorism. This analysis should help the
           new Congress and the administration carry out their responsibility and improve government for the
           benefit of the American people. For additional information about this report, please contact Randall
           Yim, Managing Director, National Preparedness Team at (202) 512-3580, or at yimr@gao.gov, or
           Patricia A. Dalton, Director, Strategic Issues, at (202) 512-6806, or at daltonp@gao.gov.




           David M. Walker
           Comptroller General
           of the United States




                                     Page 1                                   GAO-03-102 Homeland Security Challenges
Major Performance and Accountability
Challenges

              The November 2002 enactment of legislation creating the Department of
              Homeland Security (DHS) represents a historic moment of almost
              unprecedented action by the federal government to fundamentally
              transform how the nation will protect itself from terrorism.1 Rarely in the
              country’s past has such a large and complex reorganization of government
              occurred or been developed with such a singular and urgent purpose. The
              government now has a unique opportunity to transform a disparate group
              of agencies with multiple missions, values, and cultures into a strong and
              effective cabinet department whose goal will be to, among other things,
              protect U.S. borders, improve intelligence- and information-sharing
              activities, and prevent and respond to potential terrorists acts. Together
              with this unique opportunity, however, also comes significant risk to the
              nation that could occur if this implementation and transformation is not
              successful. A DHS that does not swiftly meet expectations for protecting
              America could increase the vulnerability of our borders, citizens, and
              economy, and not achieve anticipated effectiveness in operations.

              This Performance and Accountability Series report on DHS provides an
              overview of the new department’s challenges as it seeks to simultaneously
              establish itself and protect the nation from terrorism. This report is being
              issued as part of a special series of reports that discuss major management
              challenges and program risks across the government, including other
              reports highlighting issues affecting homeland security. This report raises
              issues that deal with both the broad transition and transformation concerns
              the department faces, and also the many specific program operational and
              management challenges that DHS will inherit from its component parts in
              such areas as border security and disaster mitigation.




              1
                  Pub. L. 107-296, Nov. 25, 2002.




              Page 2                                  GAO-03-102 Homeland Security Challenges
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                            Performance and
                            Accountability Challenges

                                DHS's implementation and transformation is high risk

                                DHS faces challenges in implementing an effective transformation process,
                                developing partnerships, and building management capacity

                                DHS faces inherited operational and management challenges




Implementing and       We believe that the implementation and transformation of DHS is a high
                       risk, and we have added it to our 2003 High Risk List. This designation is
Transforming the New   based on three factors. First, the implementation and transformation of
Department of          DHS is an enormous undertaking that will take time to achieve in an
                       effective and efficient manner. Second, DHS’ prospective components
Homeland Security Is   already face a wide array of existing management and operational
High Risk              challenges. Finally, failure to effectively carry out its mission exposes the
                       nation to potentially very serious consequences.

                       In the aftermath of September 11, 2001, invigorating the nation’s homeland
                       security missions has become one of the federal government’s most
                       significant challenges. DHS, with an anticipated budget of almost $40
                       billion and over 170,000 employees, will be the third largest government
                       agency; not since the creation of the Defense Department more than 50
                       years ago has the government sought to integrate and transform something
                       of this magnitude. In the Defense Department’s case, the effective
                       transformation took many years to achieve and, even today, the department
                       continues to face enduring management challenges and high risk areas that
                       are, in part, legacies to its unfinished integration.

                       Effectively implementing and transforming DHS may be an even more
                       daunting challenge. The Defense Department, at least, was formed almost
                       entirely from agencies whose principal mission was national defense. DHS
                       will combine 22 agencies specializing in various disciplines, including law



                       Page 3                                           GAO-03-102 Homeland Security Challenges
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enforcement, border security, biological research, computer security, and
disaster mitigation, for instance. Further, DHS will take on some non-
homeland security activities, such as the Coast Guard’s marine safety
responsibilities and the Federal Emergency Management Agency’s (FEMA)
natural disaster response functions. Yet, only in the effective integration
and collaboration of these entities will the nation achieve the synergy that
can help provide better security against terrorism. The magnitude of the
responsibilities, combined with the challenge and complexity of the
transformation, underscore the perseverance and dedication that will be
required of all of DHS' leaders, employees, and stakeholders to achieve
success.

Further, it is well recognized that mergers of this magnitude in the public
and private sector carry significant risks, including lost productivity and
inefficiencies. Generally, successful transformations of large
organizations, even those undertaking less strenuous reorganizations and
with less pressure for immediate results, can take from 5 to 7 years to
achieve. Necessary management capacity, communication and information
systems, as well as oversight mechanisms must be established. Moreover,
critical aspects of DHS’ success will depend on well-functioning
relationships with third parties that will take time to establish and
maintain, including those with other federal agencies with homeland
security responsibilities, such as the State Department, the Federal Bureau
of Investigation (FBI), the Central Intelligence Agency (CIA), the Defense
Department, and the Departments of Health and Human Services (HHS)
and Transportation (DOT); state and local government; and the private
sector. Creating and maintaining a structure that can leverage partners and
stakeholders will be necessary to effectively implement the national
homeland security strategy.

The new department also is being formed from components with a wide
array of existing major management challenges and program risks. For
instance, one DHS directorate’s responsibility includes the protection of
critical information systems—an area that GAO already considers a high
risk. In fact, many of the major components merging into the new
department, including the Immigration and Naturalization Service (INS),
the Transportation Security Administration (TSA), Customs Service,
FEMA, and the U.S. Coast Guard, face at least one major management
problem such as strategic human capital risks, information technology
management challenges, or financial management vulnerabilities. They
also confront an array of program operations challenges and risks. For
example, TSA has had considerable challenges in meeting deadlines for



Page 4                                  GAO-03-102 Homeland Security Challenges
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                     screening baggage, and the agency has focused most of its initial security
                     efforts primarily on aviation security and is working with other agencies
                     towards defining the roles and responsibilities for surface transportation
                     security. INS has had difficulty tracking aliens due to unreliable address
                     information. Customs must meet challenges from the potential threats of
                     weapons of mass destruction smuggled in cargo arriving at U.S. ports, and
                     the Coast Guard faces the challenges inherent in a massive fleet
                     modernization.

                     DHS’s national security mission is of such importance that the failure to
                     address its management challenges and programs risks could have serious
                     consequences on our intergovernmental system, our citizens’ health and
                     safety, and our economy. Overall, our designation of DHS as a high risk
                     area and its inclusion on the 2003 High Risk List stems from the importance
                     of its mission and the nation’s reliance on the department’s effectiveness in
                     meeting its challenges for protecting the country against terrorism.



Implementation and   The creation of DHS is an enormous management challenge. The size,
                     complexity, and importance of the effort make the challenge especially
Transformation       daunting and incomparably critical to the nation’s security. Building an
Challenges           effective department will require consistent and sustained leadership from
                     top management to ensure the needed transformation of disparate
                     agencies, programs, and missions into an integrated organization. To
                     achieve success, the end result should not simply be a collection of
                     components in a new department, but the transformation of the various
                     programs and missions into a high performance, focused organization. The
                     new department will need to build a successful transformation that instills
                     the organization with important management principles, rapidly
                     implements a phased-in transition plan, leverages the new department and
                     other agencies in executing the national homeland security strategy, and
                     builds collaborative partnerships with federal, state and local, and private
                     sector organizations. Management capacity and an accountability
                     structure should be built to ensure continuity and achieve goals. Actions
                     that must be taken to ensure the success of DHS over the long term
                     include:

                     • a comprehensive transformation process,

                     • strong partnerships,

                     • management capacity, and



                     Page 5                                   GAO-03-102 Homeland Security Challenges
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                         Challenges




                         • performance, objectives, key milestones and an oversight structure.



Comprehensive            The creation of DHS represents one of the largest and most complex
Transformation Process   restructurings in the federal government. To improve opportunities for
                         success, DHS's leadership can gain important perspectives from the
                         lessons learned and best practices of other organizations that have been
                         involved in significant mergers and transformations. Indeed, major
                         mergers and acquisitions in the private sector often do not live up to their
                         expectations or potential. Moreover, in the short term, the experience of
                         major private sector mergers and acquisitions is that productivity and
                         effectiveness actually decline. This happens for a number of reasons. For
                         example, attention is concentrated on critical and immediate integration
                         issues and diverted from longer-term mission issues. In addition,
                         employees and managers inevitably worry about their place in the new
                         organization. The key is to adopt practices that minimize the duration and
                         the significance of factors that reduce productivity and effectiveness and
                         ultimately to create an organization that is more than the “sum of its parts.”

                         On September 24, 2002, GAO convened a forum of public and private sector
                         leaders to discuss useful practices from major private and public sector
                         organizational mergers, acquisitions, and transformations that federal
                         agencies could learn from to successfully transform their cultures and DHS
                         could use to merge its various originating components.2 The results of this
                         forum provide insights into the challenges facing the federal government in
                         forming a new cabinet department and in building a high performance
                         organization.

                         Figure 1 below and the following sections outline key practices identified
                         in the forum that can serve as a guide to DHS as it seeks to transform and
                         meld disparate cultures in response to governance challenges.




                         2
                           U.S. General Accounting Office, Highlights of a GAO Forum: Mergers and
                         Transformation: Lessons Learned for a Department of Homeland Security and Other
                         Federal Agencies, GAO-03-293SP (Washington, D.C.: Nov. 14, 2002).




                         Page 6                                      GAO-03-102 Homeland Security Challenges
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Figure 1: Lessons Learned Regarding Mergers and Transformations for DHS

  • Ensure top leadership drives the transformational change.

  • Establish a coherent mission and integrated strategic goals to guide the
    transformation.

  • Focus on a key set of principles and priorities at the outset of the transformation.

  • Set implementation goals and a timeline to build momentum and show progress from
    day one.

  • Dedicate an implementation team to manage the transformation process.

  • Use the performance management system to define responsibility and assure
    accountability for change.

  • Establish a communication strategy to create shared expectations and report related
    progress.

  • Involve employees to obtain their ideas and gain their ownership for the
    transformation.

  • Build a world-class organization.
Source: GAO.


Leadership, mission and goals, and priorities: Leadership is critical. By
its very nature, the transformation process entails fundamental change.
Consistent leadership helps the transformation process stay on course and
can help bridge the differences in leadership and management styles
among the originating components. Top leadership must set priorities and
focus on the most critical issues. While top leadership is indispensable, it
also will be important to have a management team dedicated to the
transformation process to ensure changes are thoroughly implemented and
sustained over time.




Page 7                                             GAO-03-102 Homeland Security Challenges
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The mission and strategic goals of an organization must become the focus
of the transformation, define the culture, and serve as a vehicle to build
employee and organizational identity and support. Mission clarity and a
clear articulation of priorities will be critical, and strategic goals must align
with and support the mission and serve as the continuing, visible
guideposts for decision making. The Homeland Security Act of 20023 states
that the DHS mission includes preventing terrorist attacks within the
United States, reducing America’s vulnerability to terrorism, and
minimizing the damage and assisting in the recovery from attacks that do
occur. In addition, DHS will assume many non-homeland security
responsibilities, making it important for the department to clearly
articulate short- and long-term goals and integrate these diverse missions
into a strategic goal framework. Top leaders have a critical role in setting
policy and goals, but management and employees must also be involved
and support the strategic goals in order to effectively understand and work
to achieve the department’s mission.

In establishing DHS’ strategic goals, the new department’s leadership also
needs to address the National Strategy for Homeland Security, which
articulates the administration’s plans for preventing and responding to
terrorism. DHS has a key role to play in implementing the national strategy,
which provides a definition of homeland security and sets forth
overarching goals. Although the strategy is an important contribution to
homeland security efforts, many of the implementation plans and activities
for achieving these goals are not yet developed, such as establishing
meaningful performance measures and articulating clear roles and
responsibilities. Through its own goal and priority setting, DHS can make
the national strategy much more robust and comprehensive.

In bringing together various programs and missions, the new organization
must have a clear set of principles and priorities that serve as a framework
to help the organization create a common culture and establish
organizational and individual expectations. Principles are the core values
of an organization—they can help DHS to define the attributes that are
intrinsically important to what the new organization does and how it will
do it. Additionally, priorities related to both the mission and the transition
must be developed, to ensure appropriate sequencing of activities and
alignments. These priorities provide the direction for implementing the
new organization and for DHS’ initial mission accomplishments.


3
    Pub. L. 107-296, Nov. 25, 2002.




Page 8                                     GAO-03-102 Homeland Security Challenges
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Implementation goals, timeline, and resources: Since a successful
transformation process often takes 5 or more years to complete, it is
essential to establish action-oriented implementation goals and a timeline
with milestone dates to track the organization’s progress towards its
intermediate and long-term transformation goals. By demonstrating
progress towards these transformation goals, the organization builds
momentum and demonstrates that real progress is being made. In addition,
having implementation goals and milestone dates helps pinpoint
performance shortfalls and gaps and suggests midcourse corrections,
including any needed adjustments to the organization’s future goals and
milestones.

Dedicated resources are critical to the successful management of the
transformation process. A strong and stable implementation team that will
be responsible for the transformation’s day-to-day management can be an
important vehicle to ensuring that the implementation and transformation
of the new department receive the focused, full-time attention needed to
sustain a successful effort. The implementation team can ensure that the
various change initiatives are sequenced and implemented in a coherent
and integrated way and that employees and other stakeholders are kept
informed. Such a team must have direct access and be accountable to top
leadership. At the same time, the team must be given the necessary
authority and resources to carry out its responsibilities.




Page 9                                 GAO-03-102 Homeland Security Challenges
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Transition planning efforts for DHS have been started, but more sustained
efforts will be necessary. In November 2002, the administration, as
required by law, submitted a Department of Homeland Security
Reorganization Plan to the Congress.4 The plan provides information on
the transfer of agencies, personnel, assets, and obligations to DHS and any
consolidation, reorganization, and streamlining of agencies transferred to
DHS as a result of the legislation. In complying with the legislation
requiring the reorganization plan, the administration has identified the
basic functions that will be transferred to DHS and provided some initial
dates for transferring the incoming organizational entities. However, the
transition plan is limited in its description of actions and activities that will
be necessary, and it does not reflect the full range of actions that must
occur in order to achieve an effective integration of agencies, programs,
and missions into the new department. More comprehensive planning is
needed that addresses the specifics of melding the new department’s
people, strategies, systems, and processes in a smooth and integrated
manner. Issues that need to be addressed range from how the department
will move to a single payroll system and what that system will be; to how
border entry points should function—who operates the entry points, what
do they do, what are their support systems. We believe that a more
comprehensive transition plan will be necessary, one that addresses the full
transition period and includes the identification of key activities and
milestones to transform DHS into a fully integrated, high performance
organization, and establishes accountability for achieving results.5

Employee involvement, communication, and performance: People will
determine the success of DHS and the transformation that must be
achieved. A change of culture is at the heart of a successful
transformation—and DHS is no exception. The importance of redefining
the organizational culture should not be avoided, but rather must be
aggressively addressed at the outset and throughout the transformation
process. Employee involvement, communication, and performance
management will be critical to this process.

Employee involvement is critical from the beginning of the transformation
process in order to achieve employee ownership of the changes. Further, it

4
 Department of Homeland Security Reorganization Plan (The White House, Washington,
D.C.: Nov. 25, 2002).
5
  U.S. General Accounting Office, Homeland Security: Management Challenges Facing
Federal Leadership, GAO-03-260 (Washington, D.C.: Dec. 20, 2002).




Page 10                                      GAO-03-102 Homeland Security Challenges
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strengthens the transformation process by including frontline perspectives
and experiences. However, organizations and their employees must guard
against being so involved in implementing their transformation initiatives
that they lose sight of the fundamental reason for the transformation—
improved results.

An effective and ongoing internal and external communication strategy is
essential to making the transformation occur. Communication is not just
about “pushing the message out,” but it should facilitate a two-way honest
exchange with and allow for feedback from employees, customers, and
stakeholders. This communication is central to forming the effective
internal and external partnerships that are vital to the success of any
organization.

A communication strategy is especially crucial in the public sector, where
policymaking and program management demand transparency and a full
range of stakeholders and interested parties are concerned not only with
what results are to be achieved, but also what processes are to be used to
achieve those results. This demand for transparency is a fact that needs to
be accepted in any public sector transformation.

Finally, a performance management system can help manage and direct the
transformation process. The performance management system must
create a “line of sight” showing how team, unit, and individual performance
can contribute to overall organization results. The system serves as the
basis for setting expectations for employees’ roles in the transformation
process. It also evaluates individual performance and contributions to the
success of the transformation process and ultimately, organizational
results.

Building a world-class organization: The formation of DHS is an
important step in the federal government’s effort to improve homeland
security. In establishing a results-oriented culture that can reach its full
potential, the organization and its leaders should carefully select the best
solution for the new organization. It will be important to have key
positions filled with people who possess the critical competencies needed
by the organization. Further, systems and processes need to be tailored to
the organization. Best practices in systems and processes should be sought
wherever they may be found. The best solution may not be to adopt the
approaches or systems used by the largest component.




Page 11                                 GAO-03-102 Homeland Security Challenges
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Building Strong   The consolidation of many agencies, programs, and missions into DHS is
Partnerships      designed, in part, to improve coordination and collaboration of
                  organizations with homeland security missions. DHS must establish
                  effective mechanisms to strengthen the ability of its many entities to share
                  information and build partnerships that yield results and help meet national
                  homeland security objectives.

                  Even with the consolidation of many entities into DHS, there still remain a
                  significant number of federal agencies or mission areas that are not being
                  incorporated into the new department but which still need to be integrated
                  into the overall homeland security strategy. Agencies such as the FBI, CIA,
                  and the U.S. Marshals Service, for example, have important roles to play—
                  especially in information sharing and intelligence activities—and their
                  efforts must be coordinated with DHS to ensure effective and efficient
                  action. DHS must effectively coordinate with the State Department on visa
                  processing, with HHS on smallpox vaccination preparations and public
                  health preparedness, and with many other agencies that are not being
                  incorporated into the new organization.

                  Likewise, DHS will need to establish effective collaboration with the
                  Defense Department, which also has a growing role to play in homeland
                  security. In 2002, the President approved the latest Defense Department
                  Unified Command Plan intended to realign and streamline the U.S. military
                  structure to better address 21st century threats. Characterized as the most
                  significant reform of the nation’s military command structure since the first
                  command plan was issued shortly after World War II, the plan, among other
                  things, establishes the U.S. Northern Command (NORTHCOM), responsible
                  for land, aerospace, and sea defenses of the United States. Its geographic
                  area includes the continental United States, Alaska, Canada, Mexico,
                  portions of the Caribbean, and the contiguous waters in the Atlantic and
                  Pacific oceans.

                  Achieving national preparedness and response goals hinges on the federal
                  government’s ability to form effective partnerships with nonfederal
                  entities. Although collaboration with state and local governments and the
                  private sector is increasing, more needs to be done in order to enhance its
                  effectiveness. DHS has a strong role to play in achieving this objective.
                  Prior to September 11, 2001, the public and private sectors collaborated on
                  homeland security activities, but the catastrophic events heightened the
                  recognition that more concrete and long-term approaches were necessary.
                  The new department needs to gain the full participation and buy-in of




                  Page 12                                  GAO-03-102 Homeland Security Challenges
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                      partners in both policy formulation and implementation to develop
                      effective partnerships.

                      The new DHS legislation contains provisions that should help maintain
                      coordination among public sector entities by establishing within the DHS’
                      Office of the Secretary an Office for State and Local Coordination that will
                      coordinate DHS activities relating to state and local government. In
                      addition, this office is tasked with developing a process for receiving
                      meaningful input from state and local governments on furthering the
                      national strategy for combating terrorism and other homeland security
                      activities. DHS also includes an Information Analysis and Infrastructure
                      Protection Directorate that will have responsibility for assessments and
                      protection plans for key resources and critical infrastructure. Part of that
                      effort will include consultation and cooperation with state and local
                      governments and the private sector. For example, the directorate will
                      recommend protection measures in cooperation with state and local
                      government agencies and authorities and the private sector.

                      The DHS legislation and existing coordinating mechanisms provide a base
                      for fully developing a partnership structure that provides maximum
                      leverage of resources and information. Effectively implementing a strong
                      partnership network is critical to accomplishing DHS’ homeland security
                      mission.



Building Management   The multiple mission responsibilities of the new department will require
Capacity              significant management capacity to ensure that DHS can successfully
                      transform the various agencies, programs, and missions into a strong and
                      effective organization. The new department must grapple not only with
                      operational issues that will require immediate attention to better secure
                      our borders or to enhance information sharing, but to also create a well
                      run, sustainable department for the long term.

                      In our July 17, 2002, testimony entitled Homeland Security: Critical
                      Design and Implementation Issues (GAO-02-957T), we identified certain
                      critical success factors a new organization such as DHS should emphasize
                      in its initial implementation phase. Over the years GAO has made
                      observations and recommendations about many of these success factors,
                      including human capital, information technology management, acquisition
                      management, financial management, and several other important tools
                      critical to building and sustaining effective organizations. The full list of
                      success factors is described on page 32.



                      Page 13                                  GAO-03-102 Homeland Security Challenges
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The DHS legislation created an Under Secretary for Management, who will
be responsible for the management and administration of the department.
The effectiveness of this position will be critical to the department’s
performance. Essentially, the person should function as a chief operating
officer (COO). A COO can provide the sustained management attention
essential for addressing key infrastructure and stewardship issues, while
helping to facilitate the transition and transformation process. This
position can be the focal point for building and sustaining management
capacity. The Secretary and Deputy Secretary can then focus their efforts
on policy and strategic issues. To be successful, the Under Secretary must
be given the necessary authority to successfully lead departmentwide
initiatives. Further, the person filling this position should have the
demonstrated leadership skills in managing large and complex
organizations and experience achieving results in connection with “good
government” responsibilities and initiatives.

With respect to human capital, DHS will face significant challenges that will
require a comprehensive strategy capable of ensuring the new department
can acquire, develop, and retain the skills and talents needed to prevent
and protect against terrorism. This will require identifying skill needs;
attracting people with scarce skills, such as language proficiency, into
government jobs; melding diverse compensation systems that can support
the new department’s many needs; and establishing a results-oriented,
accountable culture that can meet national goals and priorities. An
environment that promotes employee involvement and empowerment, as
well as constructive and cooperative labor-management relations, will be
critically important. The various unions whose members are slated to
become employees of DHS will, together with the department’s leadership,
need to work in unity of purpose to achieve the goals of transforming DHS
and strengthening national security.




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Moreover, agencies slated to move into DHS have long-standing human
capital problems that will need to be addressed. One of these challenges
has been the ability to hire and retain a talented and motivated staff. For
example, We have reported that INS has been unable to reach its program
goals in large part because of such staffing problems as hiring shortfalls
and agent attrition.6 Several INS functions have been impacted by the lack
of a staff resource allocation model to identify staffing needs.7 Therefore, it
is likely that increased attention to the enforcement of immigration laws
and border control will test the capacity of DHS to hire large numbers of
inspectors for work at our nation’s border entry points. Other agencies
being integrated into DHS are also expected to experience challenges in
hiring security workers and inspectors. For example, the Agriculture
Department’s Animal and Plant Health Inspection Service (APHIS) has
been seeking to increase the size of its inspection force by 50 percent at the
same time that the Customs Service, INS, and other agencies are increasing
the size of their inspection staffs.8

The DHS legislation provided certain human capital flexibilities in order to
establish a contemporary human capital system to better meet the needs of
the new department. These flexibilities can be important tools in
addressing the department’s pressing human capital needs, including
recruiting, retaining, and aligning staff. DHS should consider the six key
practices for the effective use of human capital flexibilities that we
identified as part of a recent review.9 In addition, DHS should look to other
agencies that have been given flexibilities in the past—the Defense
Department, the Internal Revenue Service, TSA—to learn and build on their
experiences to achieve the maximum benefit. As required by the
legislation, there also needs to be transparency and accountability in
designing the system, involving stakeholders—particularly employees—
and keeping the Congress informed. These human capital flexibilities can
greatly benefit the department, but only if properly used.



6
  U.S. General Accounting Office, Immigration Enforcement: Challenges to Implementing
the INS Interior Enforcement Strategy, GAO-02-861T (Washington, D.C.: June 19, 2002).
7
  U.S. General Accounting Office, Immigration and Naturalization Service: Overview of
Recurring Management Challenges, GAO-02-168T (Washington, D.C.: Oct. 17, 2001).
8
GAO-03-260.
9
  U.S. General Accounting Office, Human Capital: Effective Use of Flexibilities Can Assist
Agencies in Managing Their Workforces, GAO-03-2 (Washington, D.C.: Dec. 6, 2002).




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Improving information technology management will also be critical to
transforming the new department. Not only will DHS face considerable
challenges in integrating the many systems and processes that provide
management with decision information, but it must sufficiently identify its
future needs in order to build effective systems that can support the
national homeland security strategy in the coming years. The Office of
Management and Budget (OMB), in its current reexamination of ongoing
technology and management information systems, has taken an initial first
step to evaluate the new department’s component systems. Much more
needs to be done, however, before DHS can achieve the needed systems
integration, including the development and implementation of an
enterprise architecture, or corporate blueprint, to guide its information
technology investments. Other key information technology management
capacities that DHS will need to establish include effective computer
security, investment management processes, and system and service
acquisition management practices.

Several of the agencies being incorporated into DHS will bring the new
department inherited information technology problems. For instance, INS
has had long-standing difficulty developing and fielding information
systems to support its program operations. Since 1990, we have reported
that INS managers and field officials did not have adequate, reliable, and
timely information to effectively carry out the agency’s mission. For
example, INS’ benefit fraud investigations have been hampered by a lack of
integrated information systems.10 Because INS’ four service centers
investigating benefit fraud operate different information systems that do
not interface with each other, INS officers may be making decisions
without routine access to significant information, resulting in benefits
being granted to individuals not entitled to receive them. More recently,
INS’s alien address information could not be fully relied on to locate many
aliens who were believed to be in the country and who might have
knowledge that would assist the nation in its antiterrorism efforts.11
Contributing to this situation was INS’ lack of written procedures and
automated controls to help ensure that reported changes of address by
aliens are recorded in all of INS’ automated databases. Our work has


10
 U.S. General Accounting Office, Immigration Benefit Fraud: Focused Approach Is
Needed to Address Problems, GAO-02-66 (Washington, D.C.: Jan. 31, 2002).
11
  U.S. General Accounting Office, Homeland Security: INS Cannot Locate Many Aliens
Because It Lacks Reliable Address Information, GAO-03-188 (Washington, D.C.: Nov. 21,
2002).




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identified weaknesses in INS’ information technology management
capacities as the root cause of its system problems, and we have made
recommendations to correct the weaknesses. INS has made progress in
addressing our recommendations.

Much also remains to be done to strengthen the government’s ability to
leverage information sharing between and among important government
and private sector stakeholders. The success of the national homeland
security strategy relies on the ability of all levels of government and the
private sector to communicate effectively with one another. Activities that
are hampered by organizational fragmentation, technological impediments,
or ineffective collaboration blunt the nation’s collective efforts to prevent
or minimize terrorist acts.

DHS will be faced with the challenge of integrating the procurement
functions of many of its constituent programs and missions. Early
attention to strong systems and controls for acquisition and related
business processes will be critical both to ensuring success and
maintaining integrity and accountability. Several of the incoming agencies,
such as Customs and the Coast Guard, have major procurement programs
under way that must be closely managed to ensure they achieve
expectations. Inherited challenges exist in several agencies. Despite some
progress, Customs still lacks important acquisition management controls.12
For its new import processing system, Customs has not begun to establish
process controls for determining whether acquired software products and
services satisfy contract requirements before acceptance, nor to establish
related controls for effective and efficient transfer of acquired software
products to the support organization responsible for software
maintenance. Agreeing with one of our recommendations, Customs
continues to make progress and plans to establish effective acquisition
process controls.




12
  U.S. General Accounting Office, Customs Service Modernization: Management
Improvements Needed on High-Risk Automated Commercial Environment Project, GAO-
02-545 (Washington, D.C.: May 13, 2002).




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With respect to financial management, the new department has a
stewardship obligation to prevent fraud, waste, and abuse, to use tax
dollars appropriately, and to ensure financial accountability to the
President, the Congress, and the American people. DHS can only meet
these goals if it establishes systems, processes, and controls that help to
ensure effective financial management. DHS must also insist on the
adherence of strong financial principles for its incoming agencies, many of
which have ongoing challenges in their systems, processes, or internal
controls over financial information. For instance, FEMA received a
qualified opinion on its financial statements following its fiscal year 2001
financial audit, and it has a number of material internal control
weaknesses.13 For fiscal year 2001, INS received its first unqualified
opinion on its financial statements. However, it took significant effort to
achieve this opinion and the auditors reported several material internal
control weaknesses. DOT, from which several DHS agencies are coming,
has financial management deficiencies, including with its accounting
system. In addition to addressing the many ongoing challenges existing in
the programs of incoming agencies, DHS will need to focus on building
future systems as part of its enterprise architecture approach to ensure an
overarching framework for the agency’s integrated financial management
processes. Plans must be developed and implemented to bridge the many
financial environments in which incoming agencies currently operate to an
integrated DHS system.

Successful financial management of homeland security will also be
dependent on greater budgetary transparency and a level of detail that
provides useful information for congressional budget deliberations and
executive decision making. Collaboration and coordination will be critical
to avoiding duplicative or wasteful spending on homeland security, both
within DHS as well as among other agencies that have homeland security
missions. DHS will need to work with OMB and the Congress to achieve
the needed level of transparency as funding is transferred or merged to
ensure that intended results are achieved and funds are effectively
leveraged.

DHS is also expected to extensively utilize third parties, including state and
local governments and the private sector, to meet national homeland


13
 U.S. General Accounting Office, U.S. Government Financial Statements: FY 2001 Results
Highlight the Continuing Need to Accelerate Federal Financial Management Reform,
GAO-02-599T (Washington, D.C.: Apr. 9, 2002).




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                           security goals. Through a variety of important tools, including grants and
                           regulations, tax incentives, and other activities, as well as the purchase of
                           goods and services, the new department must not only ensure that the tools
                           it uses are the most appropriate for the situation but that it also receives
                           the intended benefit. Through effective program and financial
                           management, DHS will need to build strong oversight mechanisms to
                           ensure that third party obligations are met.



Establishing Performance   The new department, in fulfilling its broad mandate, has the challenge of
Milestones and Oversight   developing a national homeland security performance focus, which relies
                           on related national and agency strategic and performance planning efforts
for DHS
                           of the Office of Homeland Security (OHS), OMB, and other departments
                           and agencies. Indeed, the planning activities of the various departments
                           and agencies represent a good start in the development of this focus;
                           however, our past work on implementation of the Government
                           Performance and Results Act has highlighted ongoing difficulty with many
                           federal departments and agencies setting adequate performance goals,
                           objectives, and targets. Accordingly, attention is needed to developing and
                           achieving appropriate homeland security performance expectations and
                           measures and in ensuring that there is linkage between DHS, other agency
                           plans, and the national strategy. Ensuring these capabilities and linkages
                           will be vital in establishing a comprehensive homeland security planning
                           and accountability framework that will not only guide the nation’s
                           homeland security efforts but also help assess how well they are really
                           working.

                           The new DHS legislation does require some specific planning efforts that
                           include goals and measures. For example, the Directorate of Science and
                           Technology is to develop a national policy and strategic plan for developing
                           countermeasures to weapons of mass destruction. The directorate must
                           develop comprehensive, research-based definable goals and annual
                           measurable objectives and specific targets to evaluate the goals.

                           Accountability is also a critical factor in ensuring the success of the new
                           department. The oversight entities of the executive branch, including OMB
                           and OHS, will have a vital role to play in ensuring expected performance
                           and accountability. As stated in the President’s June 2002 DHS proposal,
                           OHS is seen as continuing to play a key role in advising the President and
                           coordinating a simplified interagency process. Likewise, congressional
                           committees, with their long-term and broad institutional roles, will also
                           play a role in overseeing the transformation of the federal government as it



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                            meets the demands of its homeland security mission. The creation of DHS
                            has raised questions regarding how the Congress can best meet its
                            oversight, authorization, and appropriations responsibilities for the new
                            department. DHS will be comprised of some 22 federal agencies or their
                            components overseen by numerous congressional committees of
                            jurisdiction. In recognizing this complexity, the DHS legislation instructs
                            both Houses of Congress to review their committee structures in light of
                            the reorganization of homeland security responsibilities within the
                            executive branch. As a result, the Congress has begun to explore ways to
                            facilitate conducting its responsibilities in a more consolidated and
                            integrated manner. During this period of transformation, the Congress may
                            need to periodically reassess its structure to maximize the effectiveness of
                            its DHS oversight.



Addressing Significant      In addition to the high risk associated with implementing and transforming
                            a new department from the multitude of agencies and activities, DHS’
Program Operational         leadership will be confronted with a number of operational and
and Management              management challenges emanating from the functions and organizations
                            being transferred to it. We have identified a number of major operational
Challenges                  and management challenges in the programs and missions being
                            transferred into the department. These challenges are discussed in depth
                            in our Performance and Accountability reports on their current
                            departments and in other GAO work on homeland security. However, to
                            provide a comprehensive assessment of the new department, summaries of
                            these risks and challenges follow.



Information Analysis and    Within DHS, a new directorate is responsible for accessing, receiving, and
Infrastructure Protection   analyzing law enforcement information, intelligence information, and other
                            information from agencies of federal, state, and local governments and the
                            private sector, and to integrate such information to identify and assess the
                            nature and scope of terrorist threats. The new directorate’s role also
                            includes the protection of the nation’s critical information systems. In a
                            separate report, we have designated protecting information systems
                            supporting the federal government and the nation’s critical infrastructures
                            as a governmentwide high risk. Because of the new department’s central
                            role in this issue, resolution of this high risk will, in part, be a responsibility
                            and significant challenge for DHS.




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Since 1997, we have designated information security as a governmentwide
high-risk issue. This year, we have expanded the high-risk issue to
emphasize the increased importance of protecting the information systems
that support critical computer infrastructure such as national defense,
power distribution, and water supply.14 Terrorist attacks and threats have
further underscored the need to manage critical infrastructure protection
(CIP) activities that enhance the security of the cyber and physical public
and private infrastructures that are essential to national security, national
economic security, and/or national public health and safety.

At the federal level, cyber CIP activities are perhaps the most critical
component of a department or agency’s overall information security
program. In addition, although the government has made steady progress
in working with the private sector to better secure critical infrastructures,
this issue is also designated as part of our information security high-risk
issue because:

• the failure to adequately protect these infrastructures could have
  consequences for national and economic security and /or national
  public health and safety,

• terrorist groups and others have stated their intentions of attacking our
  critical infrastructures,

• federal influence over the private sector’s management of our nation’s
  critical infrastructure poses unique challenges, and

• further actions on GAO’s CIP recommendations are needed.




14
  U.S. General Accounting Office, High-Risk Series: An Update, GAO-03-119 (Washington,
D.C.: January 2003).




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                            A number of significant actions have taken place to better position the
                            nation to protect our critical infrastructures, including issuance of
                            (1) Presidential Decision Directive 63, which described a strategy for
                            cooperative efforts by government and the private sector and established
                            organizations to provide central coordination and support, (2) Executive
                            Order 13231, which established the President’s Critical Infrastructure
                            Protection Board, and (3) a comment draft of a National Strategy to Secure
                            Cyberspace.15

                            Although the actions taken to date are major steps to more effectively
                            protect our nation’s critical infrastructures, we have identified and made
                            numerous recommendations over the last several years concerning CIP
                            challenges that still need to be addressed. For each of these challenges,
                            improvements have been made and continuing efforts are in progress.
                            However, much more needs to be done. These challenges include
                            developing a national CIP strategy, improving analysis and warning
                            capabilities, and improving information sharing on threats and
                            vulnerabilities.

                            Moreover, the transformation of the FBI at the same time as the formation
                            of DHS will add an additional level of complexity to the challenge of
                            ensuring effective coordination, communication, and sharing of
                            information. In previous work, we have noted that changes in the FBI must
                            be part of, and consistent with, broader governmentwide transformations
                            that are taking place.16 As a result, the FBI needs to develop a
                            comprehensive transformation plan with key milestones and assessment
                            points to guide its overall transformation efforts. With the FBI as a key
                            partner, it will be important for DHS to be aware of ongoing changes at the
                            FBI and assess their impact on its operations and the integration of
                            activities between the two agencies.



Border and Transportation   The new Border and Transportation Security Directorate faces
Security                    considerable challenges and its success will require sustained attention



                            15
                             The President’s Critical Infrastructure Protection Board, The National Strategy to Secure
                            Cyberspace—For Comment Draft, September 2002.
                            16
                             U.S. General Accounting Office, FBI Reorganization: Initial Steps Encouraging but
                            Broad Transformation Needed, GAO-02-865T (Washington, D.C.: June 21, 2002).




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from the new department’s leadership. The operational and management
challenges include:

• Customs Service: As a result of the homeland security legislation, the
  Customs Service will be transferred to DHS from the Treasury
  Department. However, the Secretary of the Treasury will retain
  authority over customs revenue functions. The splitting of revenue
  functions from other authorities will initially pose a challenge to
  developing clarity in roles and responsibilities and effective, efficient,
  and seamless operations. Further, in our report on the Treasury
  Department, we have identified improving Customs’ management of
  multiple missions as a performance and accountability challenge.
  Customs has the dual missions of enforcing laws to safeguard borders
  against illegal entry of goods and of regulating legitimate commercial
  activity. While September 11 has focused Customs on keeping out of the
  country any “implements of terrorism,” such as chemical, biological, or
  nuclear materials that could be used as weapons, the agency still faces
  challenges associated with trade compliance and overall border
  security.

      Our recently completed and ongoing work has identified additional
      challenges that directly or indirectly affect Customs’ efforts to improve
      security at U.S. borders to safeguard against the illegal entry of goods,
      including potentially harmful, hazardous, or otherwise illegal
      commodities. These challenges include improving different
      international mail and package inspections processes, ensuring that
      various illegal items, including weapons of mass destruction, do not
      enter the country in cargo containers at seaports, and acquiring a new
      import processing system. According to Customs, the inspection of
      incoming foreign mail remains largely a manual process that relies
      primarily on physical examination. One courier is working with
      Customs to pilot test an advance manifest system, a computerized
      database that receives cargo manifest information. The database will
      allow Customs to analyze incoming package information and make
      more informed decisions about what packages to inspect. Since our
      work on international mail and containerized cargo processing17
      involves information that Customs considers to be law enforcement
      sensitive, we are precluded from further discussing the challenges
      posed by mail and cargo processing in this unclassified report.


17
     The Committee on Energy and Commerce, House of Representatives requested this work.




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      Whatever their nature, Customs’ challenges could likely be complicated
      during its proposed transition to the new Department of Homeland
      Security.

• Transportation Security Administration: We have identified
  transportation security as a performance and accountability challenge
  for the Departments of Homeland Security and Transportation. As
  discussed in our DOT report, the transformation of transportation
  security in order to reduce the vulnerability of the nation’s surface and
  air transportation systems to terrorism and other disruptions represents
  a significant challenge to the new department.18 On November 19, 2001,
  the Aviation and Transportation Security Act19 was enacted, which
  created TSA and defined its primary responsibility as ensuring security
  in all modes of transportation. DOT has worked to make urgent security
  improvements throughout its modal administrations while
  simultaneously organizing TSA to meet the longer-term challenge of
  implementing security improvements that will not excessively inhibit
  commerce and travel or interfere with other critical missions. Since its
  creation in November 2001, TSA has focused primarily on aviation
  security challenges and is working towards defining the roles and
  responsibilities for surface transportation security. Specifically, TSA is
  developing memoranda of understanding with the other modal
  administrations within DOT that are expected to delineate the lines of
  authority between the parties and establish the specific responsibilities
  of various parties for transportation security. TSA plans to complete the
  memoranda by March 1, 2003.




18
 U.S. General Accounting Office, Major Management Challenges and Program Risks:
Department of Transportation, GAO-03-108 (Washington, D.C.: January 2003).
19
     Pub. L. 107-71.




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     There are also continuing challenges for aviation security. Despite an
     impressive start in building the infrastructure of a large organization,
     TSA still faces formidable short- and long-term challenges in aviation
     security. According to TSA, it met the November 2002 deadline by
     hiring and deploying over 40,000 passenger screeners to screen
     passengers at 429 commercial airports. In addition, TSA reports that it
     met the December 31, 2002, deadline to screen all checked baggage.
     TSA reports that it hired and deployed more than 20,000 of an estimated
     22,000 baggage screeners as of mid-December 2002 to screen all
     checked baggage and that as of December 31, 2002, about 90 percent of
     all checked baggage will be screened using explosive detection systems
     or explosive trace detection equipment, and the remaining checked
     baggage will be screened using alternative means such as canine teams,
     hand searches, and passenger-bag matching. Nevertheless, significant
     challenges remain. As of mid-December 2002, TSA has installed only
     239 of the estimated 1,100 explosive detection machines and 1,951 of
     the estimated 6,000 trace detection machines needed to screen baggage
     to meet baggage screening requirements in the Aviation and
     Transportation Security Act.

     In addition to securing passenger carry-on luggage and checked
     luggage TSA faces other immediate challenges in securing cargo aboard
     commercial passenger and all-cargo aircraft. To address these
     challenges, we recommended that TSA develop a comprehensive plan
     for air cargo security that incorporates a risk management approach,
     includes a list of security priorities, and sets deadlines for completing
     actions. TSA agreed with this recommendation.20

     TSA faces numerous transportation security challenges over the long
     term. The agency must ensure that transportation security funding
     needs are identified and prioritized and costs are controlled. Moreover,
     TSA believes its current funding levels are inadequate. The agency
     estimates that it will need about $4.8 billion in fiscal year 2003, but that
     revenues from the new passenger security fee will pay for only about
     one third ($1.7 billion) of that amount. As a result, TSA will need a
     major cash infusion at a time when federal budget deficits are growing.
     TSA needs to establish effective coordination among the many public
     and private entities responsible for transportation security. The agency


20
  U.S. General Accounting Office, Aviation Security: Vulnerabilities and Potential
Improvements for the Air Cargo System, GAO-03-344 (Washington, D.C.: Dec. 20, 2002).




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     must also ensure adequate workforce competence and staffing levels.
     TSA has experienced difficulty in hiring and training its screening
     workforce and continues to face issues with its compensation and
     performance management systems. Finally, standards define the level
     of security that is needed and the safeguards that should be in place to
     meet the identified needs. New standards are being developed in some
     modes and are being considered in other modes. In addition to
     continuing challenges in standard development, there also are
     challenges in standards’ implementation.

• Visa processing: Another important element in border and
  transportation security is the improvement of the nation’s visa
  processing system. In our report on the Department of State, we
  identify strengthening the visa process to help prevent terrorism as a
  performance and accountability challenge.21 Since the September 11
  attacks, some changes have been introduced to strengthen visa
  processing. For example, State has, with the help of other agencies,
  almost doubled the names and information on persons in the lookout
  system. Although these actions have strengthened the visa process,
  opinions and practices among overseas posts continue to diverge
  regarding the authority of consular officers to deny questionable
  applicants a visa and the role of the visa process in ensuring national
  security. Opinions and practices also differ regarding the appropriate
  changes to individual posts’ visa policies and procedures that need to be
  made given the need for heightened border security. We have made a
  number of recommendations to State to address urgent and
  fundamental operational and coordination issues, and the department
  has indicated that it has taken steps to implement a number of our
  recommendations. However, more needs to be done. In the creation of
  DHS, the Secretary for DHS has been given certain visa policy-making
  responsibilities. It will be critical for DHS and State to work together to
  address the underlying challenge in visa processing, ensure a smooth
  transfer of certain responsibilities, and integrate visa processing
  activities to maximize effectiveness as an antiterrorism tool.

• Immigration: Numerous challenges also face INS, which is being
  integrated into the new department. The Congress has continued to
  express concern about INS’ ability to carry out its enforcement and


21
 U.S. General Accounting Office, Major Management Challenges and Program Risks:
Department of State, GAO-03-107 (Washington, D.C.: January 2003).




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   service functions. Over the last several years the Congress has
   significantly increased budget and staffing at INS to help the agency deal
   with its considerable workload. In creating DHS, the Congress
   established within DHS the Bureau of Citizenship and Immigration
   Services to help improve the performance of these activities. Further,
   the Bureau of Border Security has responsibility for enforcement
   functions.

   These actions have resulted in a significant change in responsibilities for
   carrying out immigration functions. However, additional challenges
   remain, and will have to be addressed by DHS. In a memorandum dated
   November 8, 2002, the DOJ Inspector General enumerated the top
   management challenges for INS. Many of these challenges parallel our
   reporting. In our performance and accountability report on DOJ, we
   identify the following challenges:

   • effective use of INS resources is necessary to fully implement a
     border control strategy,

   • fragmented and unfocused INS efforts must be improved to combat
     immigration benefit fraud,

   • impediments to reducing unauthorized employment need to be
     overcome,

   • improvements are needed in identifying and removing criminal
     aliens,

   • shortcomings in alien anti-smuggling efforts need to be eliminated,

   • problems managing INS’s application workload must be corrected,

   • problems coordinating with State Department’s visa operations need
     attention, and

   • weaknesses in information technology management must be
     corrected.

    Our report on DOJ contains an extensive discussion of these issues and
    our related recommendations. However, several are highlighted here.




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                              The Border Patrol has been responsible for preventing and deterring
                              aliens from illegally entering the United States between ports of entry.
                              We reported in August 2001 that INS’s preliminary estimates indicated
                              that gaining control of the southwest border could take at least 5 more
                              years and between 11,700 and 14,000 Border Patrol agents, additional
                              support personnel, and hundreds of millions of dollars in technology
                              and infrastructure.22 Further, the Justice Department’s Inspector
                              General reported in 2002 that INS developed a northern border strategy
                              in 2000, but implementation was initially delayed because of changes in
                              administration and in INS leadership, and then overwhelmed by the
                              events of September 11.23 In response to September 11, INS
                              accelerated deployment of personnel and resources to the northern
                              border, including increasing the number of Border Patrol agents from
                              24 to 245 in fiscal year 2001.

                              Despite years of increasing budgets and staff, INS has continued to
                              experience significant problems managing its workload of processing
                              applications. As of October 2002, INS had an application backlog of 5.2
                              million applications, an almost five-fold increase since October 1994.
                              We reported in May 2001 that better automation capability and a more
                              streamlined application process would enable INS to provide improved
                              levels of service.24 In 2002, the President announced a $50 million
                              initiative to eliminate backlogs. It should be noted that despite the
                              importance and prevalence of information technology (IT) systems in
                              accomplishing organizational core missions, INS has not yet fully
                              implemented effective controls for managing its IT resources, although
                              it is working to do so. This will provide an added level of difficulty in
                              addressing other management problems.



Emergency Preparedness   The new department will include a directorate for emergency preparedness
and Response             and response and will inherit challenges from FEMA and HHS. FEMA will


                         22
                           U.S. General Accounting Office, INS’ Southwest Border Strategy: Resource and Impact
                         Issues Remain After Seven Years, GAO-01-842 (Washington, D.C.: Aug. 2, 2001).
                         23
                           U.S. Department of Justice, Office of the Inspector General, Follow-up Report on Border
                         Patrol’s Efforts to Improve Northern Border Security (Redacted Version). Report No. I-
                         2002-004 (Washington, D.C.: February 2002).
                         24
                          U.S. General Accounting Office, Immigration Benefits: Several Factors Impede
                         Timeliness of Application Processing, GAO-01-488 (Washington, D.C.: May 4, 2001).




                         Page 28                                         GAO-03-102 Homeland Security Challenges
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be transferred to DHS, thus the department will have responsibility for
both FEMA’s homeland security and non-homeland security
responsibilities. Currently a stand-alone agency, we have issued a separate
report on FEMA in which four mission and management challenges are
identified. These challenges are: (1) ensuring effective coordination of
preparedness and response efforts, (2) enhancing provision and
management of disaster assistance for efficient and effective response,
(3) reducing the impact of natural hazards by improving the efficiency of
mitigation and flood programs, and (4) resolving financial management
weaknesses to ensure fiscal accountability.

The first challenge deals with preparing for and responding to terrorism
and nonterrorism-related disasters. Although FEMA and its missions will
be transferred to DHS, its homeland security and nonhomeland security
missions will be under separate DHS directorates. Specifically,
preparedness for terrorism disasters will be placed in the Border and
Transportation Security Directorate and other preparedness and response
efforts will be located in the Emergency Preparedness and Response
Directorate. This divisional separation could complicate FEMA’s historical
all-hazards approach—a comprehensive approach focused on preparing for
and responding to all types of disasters, either natural or manmade.
Separation of preparedness and response activities among differing federal
entities has been a recurring problem in the past, and while consolidation
of these activities within DHS does achieve a measure of consolidation, the
separation of disaster and emergency responsibilities across two
directorates of the new department will present coordination challenges
for the appropriate DHS undersecretaries.

With respect to enhancing the provision and management of disaster
assistance for efficient and effective response, FEMA will be challenged to:

• improve its criteria for determining state and local eligibility to receive
  federal disaster assistance;

• assess whether broadened determinations of federal disaster assistance
  in response to the terrorist attacks may establish precedent for future
  disasters;

• build on lessons learned from charities’ response to September 11, and
  enhance disaster assistance training and resource planning;

• enhance oversight of disaster assistance; and



Page 29                                   GAO-03-102 Homeland Security Challenges
Major Performance and Accountability
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• improve an existing information system before it is used as a building
  block for a multiagency disaster management web site.

With respect to natural hazards, two of FEMA’s major efforts have been its
mitigation programs and the National Flood Insurance Program. Concerns
have been raised regarding the demonstration of cost effectiveness of some
mitigation projects in these programs. For the National Flood Insurance
Program, cumulative program costs exceeded income by about $1.3 billion
during fiscal years 1993 through 2001 because the program is not
actuarially sound.

Finally, FEMA faces challenges in resolving financial management
weaknesses. FEMA’s financial management effectiveness has become a
concern because it received a qualified audit opinion on its most recent
financial statements due to inadequate accounting for property and
unliquidated obligations. Additionally, auditors identified material internal
control weaknesses and compliance issues requiring correction.

In addition to FEMA, HHS’ Office of Emergency Response will be
transferred to DHS. In our report on HHS, we identify strengthening
preparedness for public health emergencies, including bioterrorism, as a
performance and accountability challenge.25 Ensuring that every
community and each of the approximately 3,000 local health departments
across the nation meets a basic standard of preparedness is a significant
challenge. Our reports have found significant weaknesses in key elements
of the public health infrastructure that are critical to emergency response
at the state and local level. In addition, we have noted a lack of
coordination among programs with responsibility for public health
emergency preparedness at the local, state, and federal levels. The
creation of DHS has the potential to streamline overall funding and
oversight responsibilities for preparedness and response. However, key
public health preparedness functions will remain with HHS, and will
present coordination challenges to DHS.

Further, we note that HHS faces challenges in strengthening the public
health infrastructure, as well as related aspects of the private-sector health
care system. Areas requiring strengthening include laboratory capacity,
infectious disease surveillance, hospital surge capacity, blood supply,


25
 U.S. General Accounting Office, Major Management Challenges and Program Risks:
Department of Health and Human Services, GAO-03-101 (Washington, D.C.: January 2003).




Page 30                                      GAO-03-102 Homeland Security Challenges
                         Major Performance and Accountability
                         Challenges




                         communications, human capital, and research and development. Clearly,
                         addressing these challenges will impact the success of DHS in achieving its
                         mission. Coordination between the two departments will be critical.



Science and Technology   The new department’s Directorate of Science and Technology will have a
                         diverse set of responsibilities and its effectiveness will depend upon strong
                         relationships with other federal departments. Several components of the
                         Department of Energy will be transferred to the new directorate, as will the
                         Department of Agriculture’s Plum Island Animal Disease Center and the
                         Defense Department’s National Bio-Weapons Defense Analysis Center. In
                         addition to its own research activities, DHS will have to collaborate with
                         HHS, the Department of Energy, and others to ensure essential research is
                         accomplished for homeland security activities. Achieving balance among
                         competing priorities will present unique challenges. Science and
                         technology activities often serve multiple purposes and, as we have
                         indicated in recent testimony before the Congress,26 collaboration between
                         and among federal agencies will be important to the success of missions
                         that serve dual purposes.

                         The integration of these components will present unique challenges,
                         particularly as DHS moves to address important needs of homeland
                         security. For instance, one potential area where the new department will
                         play a role is biometric technology, which can be used in associating a
                         person with travel documents such as visas and passports. When used at a
                         border inspection, the biometric comparison can be used to help decide
                         whether to admit a traveler into the United States. Before any decision is
                         made to implement biometrics in a border control system, the benefits of
                         the system must be weighed against its costs. The purpose of any
                         biometrics initiative is to prevent the entry of travelers who are
                         inadmissible to the United States. The costs of a biometric border control
                         system will not be trivial. Important policy implications must be addressed
                         in trade-offs between increasing security and the impact on areas such as
                         privacy, economy, traveler convenience, and international relations.




                         26
                           U.S. General Accounting Office, Homeland Security: Critical Design and
                         Implementation Issues, GAO-02-957T (Washington, D.C.: July 17, 2002).




                         Page 31                                       GAO-03-102 Homeland Security Challenges
                   Major Performance and Accountability
                   Challenges




Coast Guard        The Coast Guard will also be transferred to DHS, but it will remain as an
                   independent unit and will not be incorporated into any of the new
                   directorates. In recent reports and testimonies, we raise issues regarding
                   the need for the Coast Guard to balance multiple missions.27 Additionally,
                   in our report on DOT, we identify a performance and accountability
                   challenge of enhancing aviation and Coast Guard acquisition management
                   to maximize returns from investment of public funds in large, complex,
                   high-cost procurements.28 Our report noted that aging and obsolete
                   equipment has limited the Coast Guard’s ability to achieve its safety and
                   security missions, and that the agency is undertaking a costly, complex, and
                   long-term program, called the Deepwater Capability Replacement Project,
                   to modernize and replace its aging ships and aircraft. In 2002, the Coast
                   Guard awarded a $17 billion contract and projected sustained funding
                   needs of $500 million a year (in 1998 dollars) over the next 2 to 3 decades to
                   develop the Integrated Deepwater System. The Coast Guard is addressing
                   many of the concerns we reported in our 2001 Performance and
                   Accountability Series29 report, but uncertainties still exist in key areas such
                   as attaining stable, sustained funding over a 20- to 30-year period, and
                   controlling costs, especially in the contract’s later years.



Critical Success   In our July 17, 2002, report entitled Homeland Security: Critical Design
                   and Implementation Issues9 (GAO-02-957T), we identified certain critical
Factors for New    success factors a new organization such as DHS should emphasize in its
Organizations      initial implementation phase. These factors are:

                   • Strategic planning: Leading results-oriented organizations focus on the
                     process of strategic planning that includes involvement of stakeholders,

                   27
                     U.S. General Accounting Office, Coast Guard: Strategy Needed for Setting and
                   Monitoring Levels of Effort for All Missions, GAO-03-155 (Washington, D.C.: Nov. 12, 2002);
                   U.S. General Accounting Office, Homeland Security: Proposal for Cabinet Agency Has
                   Merit, But Implementation Will be Pivotal to Success, GAO-02-886T (Washington, D.C.
                   June 25, 2002); U.S. General Accounting Office, Coast Guard: Budget and Management
                   Challenges for 2003 and Beyond, GAO-02-538T (Washington, D.C.: Mar. 19, 2002); U.S.
                   General Accounting Office, Coast Guard: Actions Needed to Mitigate Deepwater Project
                   Risks, GAO-01-659T (Washington, D.C.: May 3, 2001).
                   28
                    U.S. General Accounting Office, Major Management Challenges and Program Risks:
                   Department of Transportation, GAO-03-108 (Washington, D.C.: January 2003).
                   29
                    U.S. General Accounting Office, Major Management Challenges and Program Risks:
                   Department of Transportation, GAO-01-253 (Washington, D.C.: January 2001).




                   Page 32                                         GAO-03-102 Homeland Security Challenges
Major Performance and Accountability
Challenges




   assessment of internal and external environments, and an alignment of
   activities, core processes, and resources to support mission-related
   outcomes.

• Organizational alignment: The organization of a new department should
  be aligned to be consistent with the goals and objectives established in
  the strategic plan.

• Communications: Effective communication strategies are key to any
  major consolidation or transformation effort.

• Building partnerships: One of the key challenges of this new
  department will be the development and maintenance of homeland
  security partners at all levels of the government and the private sector,
  both in the United States and overseas.

• Performance management: An effective performance management
  system fosters institutional, unit, and individual accountability.

• Human capital strategy: A new department must ensure that its
  missions are not adversely impacted by the government's pending
  human capital crisis, and that it can recruit, retain, and reward a
  talented and motivated workforce, which has required core
  competencies, to achieve its mission and objectives. The people factor
  is a critical element in any major consolidation or transformation.

• Information technology management: A new department should
  leverage enabling technology to enhance its ability to transform
  capabilities and capacities to share and act upon timely, quality
  information about terrorist threats.

• Knowledge management: A new department must ensure it makes
  maximum use of the collective body of knowledge that will be brought
  together in the consolidation.

• Financial management: A new department has a stewardship obligation
  to prevent fraud, waste, and abuse; to use tax dollars appropriately; and
  to ensure financial accountability to the President, the Congress, and
  the American people.

• Acquisition management: Early attention to strong systems and controls
  for acquisition and related business processes will be critical both to



Page 33                                 GAO-03-102 Homeland Security Challenges
Major Performance and Accountability
Challenges




   ensuring success and maintaining integrity and accountability. As one of
   the largest federal departments, DHS will potentially have some of the
   most extensive acquisition requirements in government.

• Risk management: In setting goals, priorities, and implementation plans,
  risks must be understood and managed. The new department must be
  able to maintain and enhance current states of homeland security
  readiness while transitioning and transforming itself into a more
  effective and efficient structural unit. DHS will also need to
  immediately improve the government's overall ability to perform risk
  management activities that can help to prevent, defend against, and
  respond to terrorist acts.

• Change management: Assembling a new organization out of separate
  pieces and reorienting all of its processes and assets to deliver the
  desired results while managing related risks will take an organized,
  systematic approach to change. A new department will both require an
  executive and operational capability to encourage and manage change.




Page 34                                 GAO-03-102 Homeland Security Challenges
GAO Contacts




               Subjects covered in this report               Contact person
               National preparedness                         Randall Yim, Managing Director
                                                             National Preparedness
                                                             (202) 512-3580
                                                             yimr@gao.gov
               Management challenges for homeland            Patricia A. Dalton, Director
               security                                      Strategic Issues
                                                             (202) 512-6806
                                                             daltonp@gao.gov
               Transforming transportation security          John H. Anderson, Jr. Managing Director
                                                             Physical Infrastructure Issues
                                                             (202) 512-2834
                                                             andersonj@gao.gov
               Information security issues and critical      Robert F. Dacey, Director
               infrastructure protection                     Information Technology
                                                             (202) 512-3317
                                                             daceyr@gao.gov
               Better manage programs designed to            Laurie E. Ekstrand, Director
               support state and local efforts to reduce     Justice Issues
               crime                                         (202) 512-8777
                                                             ekstrandl@gao,gov
               Strengthen the visa process of as an          Jess T. Ford, Director
               antiterrorism tool                            International Affairs and Trade
                                                             (202) 512-4268
                                                             fordj@gao.gov
               Coordination of preparedness and              JayEtta Hecker, Director
               response efforts                              Physical Infrastructure
                                                             (202) 512-2834
               Enhancing the management of the U.S.          heckerj@gao.gov
               Coast Guard acquisitions
               Public health emergency preparedness          Janet Heinrich, Director
                                                             Health Care—Public Health Issues
                                                             (202) 512-7119
                                                             henrichj@gao.gov
               INS’ information technology management        Randolph C. Hite, Director
               weaknesses                                    Information Technology Architecture and
                                                             Systems Issues
                                                             (202) 512-6204
                                                             hiter@gao.gov
               Building human capital strategies             J.C. Mihm, Director
                                                             Strategic Issues
                                                             (202) 512-3236
                                                             mihmj@gao.gov
               Efforts to combat immigration benefit fraud   Richard M. Stana, Director
                                                             Tax Administration
                                                             (202) 512-8777
                                                             stanar@gao.gov



               Page 35                                          GAO-03-102 Homeland Security Challenges
Related GAO Products



Homeland Security   Homeland Security: Management Challenges Facing Federal Leadership.
                    GAO-03-260. Washington, D.C.: December 20, 2002.

                    Highlights of a GAO Forum: Mergers and Transformation: Lessons
                    Learned for a Department of Homeland Security and Other Federal
                    Agencies. GAO-03-293SP. Washington, D.C.: November 14, 2002.

                    Building Security: Security Responsibilities for Federally Owned and
                    Leased Facilities. GAO-03-8. Washington, D.C.: October 31, 2002.

                    Homeland Security: Department of Justice's Response to Its
                    Congressional Mandate to Assess and Report on Chemical Industry
                    Vulnerabilities. GAO-03-24R. Washington, D.C.: October 10, 2002.

                    Homeland Security: Information Sharing Activities Face Continued
                    Management Challenges. GAO-02-1122T. Washington, D.C.: October 1,
                    2002.

                    Homeland Security: OMB's Temporary Cessation of Information
                    Technology Funding for New Investments. GAO-03-186T. Washington,
                    D.C.: October 1, 2002.

                    Mass Transit: Challenges in Securing Transit Systems. GAO-02-1075T.
                    Washington, D.C.: September 18, 2002.

                    Building Security: Interagency Security Committee Has Had Limited
                    Success in Fulfilling Its Responsibilities. GAO-02-1004. Washington,
                    D.C.: September 17, 2002.

                    September 11: Interim Report on the Response of Charities. GAO-02-1037.
                    Washington, D.C.: September 3, 2002.

                    National Preparedness: Technology and Information Sharing
                    Challenges. GAO-02-1048R. Washington, D.C.: August 30, 2002.

                    Homeland Security: Effective Intergovernmental Coordination Is Key to
                    Success. GAO-02-1013T. Washington, D.C.: August 23, 2002.

                    Homeland Security: Effective Intergovernmental Coordination Is Key to
                    Success. GAO-02-1012T. Washington, D.C.: August 22, 2002.




                    Page 36                               GAO-03-102 Homeland Security Challenges
Related GAO Products




Homeland Security: Effective Intergovernmental Coordination Is Key to
Success. GAO-02-1011T. Washington, D.C.: August 20, 2002.

Chemical Safety: Emergency Response Community Views on the
Adequacy of Federally Required Chemical Information. GAO-02-799.
Washington, D.C.: July 31, 2002.

Homeland Security: Critical Design and Implementation Issues. GAO-02-
957T. Washington, D.C.: July 17, 2002.

Homeland Security: Title III of the Homeland Security Act of 2002. GAO-
02-927T. Washington, D.C.: July 9, 2002.

Homeland Security: Intergovernmental Coordination and Partnership
Will Be Critical to Success. GAO-02-901T. Washington, D.C.: July 3, 2002.

Homeland Security: Intergovernmental Coordination and Partnerships
Will Be Critical to Success. GAO-02-899T. Washington, D.C.: July 1, 2002.

Homeland Security: New Department Could Improve Coordination but
May Complicate Priority Setting. GAO-02-893T. Washington, D.C.: June 28,
2002.

Homeland Security: Proposal for Cabinet Agency Has Merit, But
Implementation Will Be Pivotal to Success. GAO-02-886T. Washington,
D.C.: June 25, 2002.

Homeland Security: Key Elements to Unify Efforts Are Underway but
Uncertainty Remains. GAO-02-610. Washington, D.C.: June 7, 2002.

National Preparedness: Integrating New and Existing Technology and
Information Sharing into an Effective Homeland Security Strategy.
GAO-02-811T. Washington, D.C.: June 7, 2002.

Review of Studies of the Economic Impact of the September 11, 2001,
Terrorist Attacks on the World Trade Center. GAO-02-700R. Washington,
D.C.: May 29, 2002.

Homeland Security: Responsibility and Accountability for Achieving
National Goals. GAO-02-627T. Washington, D.C.: April 11, 2002.




Page 37                                 GAO-03-102 Homeland Security Challenges
                      Related GAO Products




                      National Preparedness: Integration of Federal, State, Local, and Private
                      Sector Efforts Is Critical to an Effective National Strategy for Homeland
                      Security. GAO-02-621T. Washington, D.C.: April 11, 2002.

                      Homeland Security: Progress Made, More Direction and Partnership
                      Sought. GAO-02-490T. Washington, D.C.: March 12, 2002.

                      Homeland Security: Challenges and Strategies in Addressing Short- and
                      Long-Term National Needs. GAO-02-160T. Washington, D.C.: November 7,
                      2001.

                      Homeland Security: A Risk Management Approach Can Guide
                      Preparedness Efforts. GAO-02-208T. Washington, D.C.: October 31, 2001.

                      Homeland Security: Need to Consider VA’s Role in Strengthening Federal
                      Preparedness. GAO-02-145T. Washington, D.C.: October 15, 2001.

                      Homeland Security: Key Elements of a Risk Management Approach.
                      GAO-02-150T. Washington, D.C.: October 12, 2001.

                      Homeland Security: A Framework for Addressing the Nation’s Issues.
                      GAO-01-1158T. Washington, D.C.: September 21, 2001.



Combating Terrorism   Combating Terrorism: Actions Needed to Guide Services' Antiterrorism
                      Efforts at Installations. GAO-03-14. Washington, D.C.: November 1, 2002.

                      Nonproliferation: Strategy Needed to Strengthen Multilateral Export
                      Control Regimes. GAO-03-43. Washington, D.C.: October 25, 2002.

                      Chemical Weapons: Organization for the Prohibition of Chemical
                      Weapons Needs Comprehensive Plan to Correct Budgeting
                      Weaknesses. GAO-03-5. Washington, D.C.: October 24, 2002.

                      Combating Terrorism: Actions Needed to Improve Force Protection for
                      DOD Deployments through Domestic Seaports. GAO-03-15. Washington,
                      D.C.: October 22, 2002.

                      Chemical and Biological Defense: Observations on DOD's Risk
                      Assessment of Defense Capabilities. GAO-03-137T. Washington, D.C.:
                      October 1, 2002.




                      Page 38                                GAO-03-102 Homeland Security Challenges
Related GAO Products




Chemical Weapons: Lessons Learned Program Generally Effective but
Could Be Improved and Expanded. GAO-02-890. Washington, D.C.:
September 10, 2002.

Combating Terrorism: Department of State Programs to Combat
Terrorism Abroad. GAO-02-1021. Washington, D.C.: September 6, 2002.

Export Controls: Department of Commerce Controls over Transfers of
Technology to Foreign Nationals Need Improvement. GAO-02-972.
Washington, D.C.: September 6, 2002.

Nonproliferation R&D: NNSA's Program Develops Successful
Technologies, but Project Management Can Be Strengthened. GAO-02-904.
Washington, D.C.: August 23, 2002.

Diffuse Security Threats: USPS Air Filtration Systems Need More Testing
and Cost Benefit Analysis before Implementation. GAO-02-838.
Washington, D.C.: August 22, 2002.

Nuclear Nonproliferation: U.S. Efforts to Combat Nuclear
Smuggling. GAO-02-989T. Washington, D.C.: July 30, 2002.

Combating Terrorism: Preliminary Observations on Weaknesses in Force
Protection for DOD Deployments Through Domestic Seaports. GAO-02-
955TNI. Washington, D.C.: July 23, 2002.

Diffuse Security Threats: Technologies for Mail Sanitization Exist, but
Challenges Remain. GAO-02-365. Washington, D.C.: April 23, 2002.

Combating Terrorism: Intergovernmental Cooperation in the
Development of a National Strategy to Enhance State and Local
Preparedness. GAO-02-550T. Washington, D.C.: April 2, 2002.

Combating Terrorism: Enhancing Partnerships Through a National
Preparedness Strategy. GAO-02-549T. Washington, D.C.: March 28, 2002.

Combating Terrorism: Critical Components of a National Strategy to
Enhance State and Local Preparedness. GAO-02-548T. Washington, D.C.:
March 25, 2002.




Page 39                                GAO-03-102 Homeland Security Challenges
Related GAO Products




Combating Terrorism: Intergovernmental Partnership in a National
Strategy to Enhance State and Local Preparedness. GAO-02-547T.
Washington, D.C.: March 22, 2002.

Combating Terrorism: Key Aspects of a National Strategy to Enhance
State and Local Preparedness. GAO-02-473T. Washington, D.C.: March 1,
2002.

Combating Terrorism: Considerations for Investing Resources in
Chemical and Biological Preparedness. GAO-01-162T. Washington, D.C.:
October 17, 2001.

Combating Terrorism: Selected Challenges and Related
Recommendations. GAO-01-822. Washington, D.C.: September 20, 2001.

Combating Terrorism: Actions Needed to Improve DOD’s Antiterrorism
Program Implementation and Management. GAO-01-909. Washington,
D.C.: September 19, 2001.

Combating Terrorism: Comments on H.R. 525 to Create a President’s
Council on Domestic Preparedness. GAO-01-555T. Washington, D.C.: May
9, 2001.

Combating Terrorism: Observations on Options to Improve the Federal
Response. GAO-01-660T. Washington, D.C.: April 24, 2001.

Combating Terrorism: Comments on Counterterrorism Leadership and
National Strategy. GAO-01-556T. Washington, D.C.: March 27, 2001.

Combating Terrorism: FEMA Continues to Make Progress in
Coordinating Preparedness and Response. GAO-01-15. Washington, D.C.:
March 20, 2001.

Combating Terrorism: Federal Response Teams Provide Varied
Capabilities; Opportunities Remain to Improve Coordination.
GAO-01-14. Washington, D.C.: November 30, 2000.

Combating Terrorism: Issues in Managing Counterterrorist
Programs. GAO/T-NSIAD-00-145. Washington, D.C.: April 6, 2000.




Page 40                               GAO-03-102 Homeland Security Challenges
Related GAO Products




Combating Terrorism: Need to Eliminate Duplicate Federal Weapons of
Mass Destruction Training. GAO/NSIAD-00-64. Washington, D.C.: March
21, 2000.

Combating Terrorism: Observations on the Threat of Chemical and
Biological Terrorism. GAO/T-NSIAD-00-50. Washington, D.C.: October 20,
1999.

Combating Terrorism: Need for Comprehensive Threat and Risk
Assessments of Chemical and Biological Attack. GAO/NSIAD-99-163.
Washington, D.C.: September 7, 1999.

Combating Terrorism: Observations on Growth in Federal Programs.
GAO/T-NSIAD-99-181. Washington, D.C.: June 9, 1999.

Combating Terrorism: Analysis of Potential Emergency Response
Equipment and Sustainment Costs. GAO/NSIAD-99-151. Washington, D.C.:
June 9, 1999.

Combating Terrorism: Use of National Guard Response Teams Is
Unclear. GAO/NSIAD-99-110. Washington, D.C.: May 21, 1999.

Combating Terrorism: Issues to Be Resolved to Improve
Counterterrorism Operations. GAO/NSIAD-99-135. Washington, D.C.: May
13, 1999.

Combating Terrorism: Observations on Federal Spending to Combat
Terrorism. GAO/T-NSIAD/GGD-99-107. Washington, D.C.: March 11, 1999.

Combating Terrorism: Opportunities to Improve Domestic Preparedness
Program Focus and Efficiency. GAO/NSIAD-99-3. Washington, D.C.:
November 12, 1998.

Combating Terrorism: Observations on the Nunn-Lugar-Domenici
Domestic Preparedness Program. GAO/T-NSIAD-99-16. Washington, D.C.:
October 2, 1998.

Combating Terrorism: Threat and Risk Assessments Can Help Prioritize
and Target Program Investments. GAO/NSIAD-98-74. Washington, D.C.:
April 9, 1998.




Page 41                               GAO-03-102 Homeland Security Challenges
                      Related GAO Products




                      Combating Terrorism: Spending on Governmentwide Programs Requires
                      Better Management and Coordination. GAO/NSIAD-98-39. Washington,
                      D.C.: December 1, 1997.



Border Security and   Border Security: Implications of Eliminating the Visa Waiver Program.
Immigration           GAO-03-38. Washington, D.C.: November 22, 2002.

                      Homeland Security: INS Cannot Locate Many Aliens Because It Lacks
                      Reliable Address Information. GAO-03-188, November 21, 2002.

                      Container Security: Current Efforts to Detect Nuclear Materials, New
                      Initiatives, and Challenges. GAO-03-297T. Washington, D.C.: November 18,
                      2002.

                      Technology Assessment: Using Biometrics for Border Security. GAO-03-
                      174. Washington, D.C.: November 15, 2002.

                      Coast Guard: Strategy Needed for Setting and Monitoring Levels of Effort
                      for All Missions. GAO-03-155. Washington, D.C.: November 12, 2002.

                      Border Security: Visa Process Should Be Strengthened as an
                      Antiterrorism Tool. GAO-03-132NI. Washington, D.C.: October 21, 2002.

                      Port Security: Nation Faces Formidable Challenges in Making New
                      Initiatives Successful. GAO-02-993T. Washington, D.C.: August 5, 2002.

                      Immigration Enforcement: Challenges to Implementing the INS Interior
                      Enforcement Strategy. GAO-02-861T. Washington, D.C.: June 19, 2002.

                      Customs Service Modernization: Management Improvements Needed on
                      High-Risk Automated Commercial Environment Project. GAO-02-545.
                      Washington, D.C.: May 13, 2002.

                      Immigration Benefit Fraud: Focused Approach Is Needed to Address
                      Problems. GAO-02-66. Washington, D.C.: January 31, 2002.

                      Immigration and Naturalization Service: Overview of Recurring
                      Management Challenges. GAO-02-168T. Washington, D.C.: October 17,
                      2001.




                      Page 42                                GAO-03-102 Homeland Security Challenges
                Related GAO Products




                INS’ Southwest Border Strategy: Resource and Impact Issues Remain
                After Seven Years. GAO-01-842. Washington, D.C.: August 2, 2001.

                Immigration Benefits: Several Factors Impede the Timeliness of
                Application Processing. GAO-01-488. Washington, D.C.: May 4, 2001.

                Coast Guard: Actions Needed to Mitigate Deepwater Project Risks. GAO-
                01-659T. Washington, D.C.: May 3, 2001.



Public Health   Homeland Security: CDC's Oversight of Select Agent Programs. GAO-03-
                315R. Washington, D.C.: November 22, 2002.

                Public Health: Maintaining an Adequate Blood Supply Is Key to
                Emergency Preparedness. GAO-02-1095T. Washington, D.C.: September 10,
                2002.

                Homeland Security: New Department Could Improve Coordination but
                Transferring Control of Certain Public Health Programs Raises
                Concerns. GAO-02-954T. Washington, D.C.: July 16, 2002.

                Homeland Security: New Department Could Improve Biomedical R&D
                Coordination but May Disrupt Dual-Purpose Efforts. GAO-02-924T.
                Washington, D.C.: July 9, 2002.

                Homeland Security: New Department Could Improve Coordination but
                May Complicate Public Health Priority Setting. GAO-02-883T.
                Washington, D.C.: June 25, 2002.

                Bioterrorism: The Centers for Disease Control and Prevention’s Role in
                Public Health Protection. GAO-02-235T. Washington, D.C.: November 15,
                2001.

                Bioterrorism: Review of Public Health and Medical Preparedness.
                GAO-02-149T. Washington, D.C.: October 10, 2001.

                Food Safety and Security: Fundamental Changes Needed to Ensure Safe
                Food. GAO-02-47T. Washington, D.C.: October 10, 2001.

                Bioterrorism: Public Health and Medical Preparedness. GAO-02-141T.
                Washington, D.C.: October 9, 2001.




                Page 43                               GAO-03-102 Homeland Security Challenges
                    Related GAO Products




                    Bioterrorism: Coordination and Preparedness. GAO-02-129T. Washington,
                    D.C.: October 5, 2001.

                    Bioterrorism: Federal Research and Preparedness Activities. GAO-01-915.
                    Washington, D.C.: September 28, 2001.

                    Chemical and Biological Defense: Improved Risk Assessments and
                    Inventory Management Are Needed. GAO-01-667. Washington, D.C.:
                    September 28, 2001.

                    West Nile Virus Outbreak: Lessons for Public Health Preparedness.
                    GAO/HEHS-00-180. Washington, D.C.: September 11, 2000.

                    Need for Comprehensive Threat and Risk Assessments of Chemical and
                    Biological Attacks. GAO/NSIAD-99-163. Washington, D.C.: September 7,
                    1999.

                    Chemical and Biological Defense: Program Planning and Evaluation
                    Should Follow Results Act Framework. GAO/NSIAD-99-159. Washington,
                    D.C.: August 16, 1999.

                    Combating Terrorism: Observations on Biological Terrorism and Public
                    Health Initiatives. GAO/T-NSIAD-99-112. Washington, D.C.: March 16,
                    1999.



Aviation Security   Transportation Security Administration: Actions and Plans to Build a
                    Results-Oriented Culture. GAO-03-190. Washington, D.C.: January 13, 2003.

                    Aviation Security: Vulnerabilities and Potential Improvements for the
                    Air Cargo System. GAO-03-344. Washington, D.C.: December 20, 2002.

                    Aviation Security: Transportation Security Administration Faces
                    Immediate and Long-Term Challenges. GAO-02-971T. Washington, D.C.:
                    July 25, 2002.

                    Aviation Security: Vulnerabilities in, and Alternatives for, Preboard
                    Screening Security Operations. GAO-01-1171T. Washington, D.C.:
                    September 25, 2001.




                    Page 44                                GAO-03-102 Homeland Security Challenges
                          Related GAO Products




                          Aviation Security: Weaknesses in Airport Security and Options for
                          Assigning Screening Responsibilities. GAO-01-1165T. Washington, D.C.:
                          September 21, 2001.

                          Aviation Security: Terrorist Acts Illustrate Severe Weaknesses in
                          Aviation Security. GAO-01-1166T. Washington, D.C.: September 20, 2001.

                          Aviation Security: Terrorist Acts Demonstrate Urgent Need to Improve
                          Security at the Nation's Airports. GAO-01-1162T. Washington, D.C.:
                          September 20, 2001.

                          Aviation Security: Long-Standing Problems Impair Airport Screeners'
                          Performance. GAO/RCED-00-75. Washington, D.C.: June 28, 2000.

                          Aviation Security: Slow Progress in Addressing Long-Standing Screener
                          Performance Problems. GAO/T-RCED-00-125. Washington, D.C.: March 16,
                          2000.

                          Aviation Security: Progress Being Made, but Long-term Attention Is
                          Needed. GAO/T-RCED-98-190. Washington, D.C.: May 14, 1998.

                          Aviation Security: FAA's Procurement of Explosives Detection Devices.
                          GAO/RCED-97-111R. Washington, D.C.: May 1, 1997.

                          Aviation Security: Commercially Available Advanced Explosives
                          Detection Devices. GAO/RCED-97-119R. Washington, D.C.: April 24, 1997.

                          Aviation Security: Technology's Role in Addressing Vulnerabilities.
                          GAO/T-RCED/NSIAD-96-262. Washington, D.C.: September 19, 1996.

                          Aviation Security: Urgent Issues Need to Be Addressed.
                          GAO/T-RCED/NSIAD-96-251. Washington, D.C.: September 11, 1996.

                          Aviation Security: Immediate Action Needed to Improve Security.
                          GAO/T-RCED/NSIAD-96-237. Washington, D.C.: August 1, 1996.



Critical Infrastructure   Computer Security: Progress Made, But Critical Federal Operations and
Protection                Assets Remain at Risk. GAO-03-303T. Washington, D.C.: November 19,
                          2002.




                          Page 45                                GAO-03-102 Homeland Security Challenges
Related GAO Products




Critical Infrastructure Protection: Commercial Satellite Security Should
Be More Fully Addressed. GAO-02-781. Washington, D.C.: August 30, 2002.

Critical Infrastructure Protection: Significant Challenges Need to Be
Addressed. GAO-02-961T. Washington, D.C.: July 24, 2002.

Critical Infrastructure Protection: Federal Efforts Require a More
Coordinated and Comprehensive Approach to Protecting Information
Systems. GAO-02-474. Washington, D.C.: July 15, 2002.

Critical Infrastructure Protection: Significant Homeland Security
Challenges Need to Be Addressed. GAO-02-918T. Washington, D.C.: July 9,
2002.

Information Sharing: Practices That Can Benefit Critical Infrastructure
Protection. GAO-02-24. Washington, D.C.: October 15, 2001.

Critical Infrastructure Protection: Significant Challenges in
Safeguarding Government and Privately Controlled Systems from
Computer-Based Attacks. GAO-01-1168T. Washington, D.C.: September 26,
2001.

Critical Infrastructure Protection: Significant Challenges in Protecting
Federal Systems and Developing Analysis and Warning Capabilities.
GAO-01-1132T. Washington, D.C.: September 12, 2001.

Critical Infrastructure Protection: Significant Challenges in Developing
Analysis, Warning, and Response Capabilities. GAO-01-1005T.
Washington, D.C.: July 25, 2001.

Critical Infrastructure Protection: Significant Challenges in Developing
Analysis, Warning, and Response Capabilities. GAO-01-769T.
Washington, D.C.: May 22, 2001.

Critical Infrastructure Protection: Significant Challenges in Developing
National Capabilities. GAO-01-323. Washington, D.C.: April 25, 2001.

Critical Infrastructure Protection: Challenges to Building a
Comprehensive Strategy for Information Sharing and Coordination.
GAO/T-AIMD-00-268. Washington, D.C.: July 26, 2000.




Page 46                                GAO-03-102 Homeland Security Challenges
                        Related GAO Products




                        Critical Infrastructure Protection: Comments on the Proposed Cyber
                        Security Information Act of 2000. GAO/T-AIMD-00-229. Washington, D.C.:
                        June 22, 2000.

                        Critical Infrastructure Protection: National Plan for Information
                        Systems Protection. GAO/AIMD-00-90R. Washington, D.C.: February 11,
                        2000.

                        Critical Infrastructure Protection: Comments on the National Plan for
                        Information Systems Protection. GAO/T-AIMD-00-72. Washington, D.C.:
                        February 1, 2000.

                        Critical Infrastructure Protection: Fundamental Improvements Needed
                        to Assure Security of Federal Operations. GAO/T-AIMD-00-7. Washington,
                        D.C.: October 6, 1999.

                        Critical Infrastructure Protection: Comprehensive Strategy Can Draw on
                        Year 2000 Experiences. GAO/AIMD-00-1. Washington, D.C.: October 1,
                        1999.



Disaster Assistance     September 11: Small Business Assistance Provided in Lower Manhattan
                        in Response to the Terrorist Attacks. GAO-03-88. Washington, D.C.:
                        November 1, 2002.

                        Disaster Assistance: Improvement Needed in Disaster Declaration
                        Criteria and Eligibility Assurance Procedures. GAO-01-837. Washington,
                        D.C.: August 31, 2001.

                        Chemical Weapons: FEMA and Army Must Be Proactive in Preparing
                        States for Emergencies. GAO-01-850. Washington, D.C.: August 13, 2001.

                        Federal Emergency Management Agency: Status of Achieving Key
                        Outcomes and Addressing Major Management Challenges. GAO-01-832.
                        Washington, D.C.: July 9, 2001.



Budget and Management   Human Capital: Effective Use of Flexibilities Can Assist Agencies in
                        Managing Their Workforces. GAO-03-2. Washington, D.C.: December 6,
                        2002.




                        Page 47                               GAO-03-102 Homeland Security Challenges
Related GAO Products




Highlights of a GAO Roundtable: The Chief Operating Officer Concept: A
Potential Strategy to Address Federal Governance Challenges. GAO-03-
192SP. Washington, D.C.: October 4, 2002.

Program Evaluation: Strategies for Assessing How Information
Dissemination Contributes to Agency Goals. GAO-02-923. Washington,
D.C.: September 30, 2002.

Results-Oriented Cultures: Using Balanced Expectations to Manage
Senior Executive Performance. GAO-02-966. Washington, D.C.: September
27, 2002.

Performance Budgeting: Opportunities and Challenges. GAO-02-1106T.
Washington, D.C.: September 19, 2002.

Electronic Government: Proposal Addresses Critical Challenges.
GAO-02-1083T. Washington, D.C.: September 18, 2002.

Results-Oriented Cultures: Insights for U.S. Agencies from Other
Countries' Performance Management Initiatives. GAO-02-862.
Washington, D.C.: August 2, 2002.

Acquisition Workforce: Agencies Need to Better Define and Track the
Training of Their Employees. GAO-02-737. Washington, D.C.: July 29,
2002.

Managing for Results: Using Strategic Human Capital Management to
Drive Transformational Change. GAO-02-940T. Washington, D.C.: July 15,
2002.

U.S. Government Financial Statements: FY 2001 Results Highlight the
Continuing Need to Accelerate Federal Financial Management Reform.
GAO-02-599T. Washington, D.C.: April 9, 2002.

Coast Guard: Budget and Management Challenges for 2003 and Beyond.
GAO-02-538T. Washington, D.C.: March 19, 2002.

Managing for Results: Building on the Momentum for Strategic Human
Capital Reform. GAO-02-528T. Washington, D.C.: March 18, 2002.

A Model of Strategic Human Capital Management. GAO-02-373SP.
Washington, D.C.: March 15, 2002.



Page 48                               GAO-03-102 Homeland Security Challenges
                 Related GAO Products




                 Budget Issues: Long-Term Fiscal Challenges. GAO-02-467T. Washington,
                 D.C.: February 27, 2002.

                 Managing for Results: Agency Progress in Linking Performance Plans
                 with Budgets and Financial Statements. GAO-02-236. Washington, D.C.:
                 January 4, 2002.

                 Results-Oriented Budget Practices in Federal Agencies. GAO-01-1084SP.
                 Washington, D.C.: August 2001.

                 Managing for Results: Federal Managers’ Views on Key Management
                 Issues Vary Widely Across Agencies. GAO-01-592. Washington, D.C.: May
                 2001.

                 High-Risk Series: An Update. GAO-01-263. Washington, D.C.: January
                 2001.

                 Major Management Challenges and Program Risks: A Governmentwide
                 Perspective. GAO-01-241. Washington, D.C.: January 2001.

                 Major Management Challenges and Program Risks: Department of
                 Transportation. GAO-01-253. Washington, D.C.: January 2001.

                 Determining Performance and Accountability Challenges and High
                 Risks. GAO-01-159SP. Washington, D.C.: November 2000.

                 Managing for Results: Using the Results Act to Address Mission
                 Fragmentation and Program Overlap. GAO/AIMD-97-156. Washington,
                 D.C.: August 29, 1997.

                 Government Restructuring: Identifying Potential Duplication in Federal
                 Missions and Approaches. GAO/T-AIMD-95-161. Washington, D.C.: June 7,
                 1995.



Reorganization   FBI Reorganization: Initial Steps Encouraging but Broad
                 Transformation Needed. GAO-02-865T. Washington, D.C.: June 21, 2002.

                 Environmental Protection: Observations on Elevating the Environmental
                 Protection Agency to Cabinet Status. GAO-02-552T. Washington, D.C.:
                 March 21, 2002.




                 Page 49                              GAO-03-102 Homeland Security Challenges
               Related GAO Products




               Implementation: The Missing Link in Planning Reorganizations.
               GAO/GGD-81-75. Washington, D.C.: March 20, 1981.



Grant Design   Grant Programs: Design Features Shape Flexibility, Accountability, and
               Performance Information. GAO/GGD-98-137. Washington, D.C.: June 22,
               1998.

               Federal Grants: Design Improvements Could Help Federal Resources Go
               Further. GAO/AIMD-97-7. Washington, D.C.: December 18, 1996.

               Block Grants: Issues in Designing Accountability Provisions.
               GAO/AIMD-95-226. Washington, D.C.: September 1, 1995.




               Page 50                               GAO-03-102 Homeland Security Challenges
Performance and Accountability and High-
Risk Series

              Major Management Challenges and Program Risks: A Governmentwide
              Perspective. GAO-03-95.

              Major Management Challenges and Program Risks: Department of
              Agriculture. GAO-03-96.

              Major Management Challenges and Program Risks: Department of
              Commerce. GAO-03-97.

              Major Management Challenges and Program Risks: Department of
              Defense. GAO-03-98.

              Major Management Challenges and Program Risks: Department of
              Education. GAO-03-99.

              Major Management Challenges and Program Risks: Department of
              Energy. GAO-03-100.

              Major Management Challenges and Program Risks: Department of
              Health and Human Services. GAO-03-101.

              Major Management Challenges and Program Risks: Department of
              Homeland Security. GAO-03-102.

              Major Management Challenges and Program Risks: Department of
              Housing and Urban Development. GAO-03-103.

              Major Management Challenges and Program Risks: Department of the
              Interior. GAO-03-104.

              Major Management Challenges and Program Risks: Department of
              Justice. GAO-03-105.

              Major Management Challenges and Program Risks: Department of
              Labor. GAO-03-106.

              Major Management Challenges and Program Risks: Department of State.
              GAO-03-107.

              Major Management Challenges and Program Risks: Department of
              Transportation. GAO-03-108.




              Page 51                             GAO-03-102 Homeland Security Challenges
Performance and Accountability and High-
Risk Series




Major Management Challenges and Program Risks: Department of the
Treasury. GAO-03-109.

Major Management Challenges and Program Risks: Department of
Veterans Affairs. GAO-03-110.

Major Management Challenges and Program Risks: U.S. Agency for
International Development. GAO-03-111.

Major Management Challenges and Program Risks: Environmental
Protection Agency. GAO-03-112.

Major Management Challenges and Program Risks: Federal Emergency
Management Agency. GAO-03-113.

Major Management Challenges and Program Risks: National
Aeronautics and Space Administration. GAO-03-114.

Major Management Challenges and Program Risks: Office of Personnel
Management. GAO-03-115.

Major Management Challenges and Program Risks: Small Business
Administration. GAO-03-116.

Major Management Challenges and Program Risks: Social Security
Administration. GAO-03-117.

Major Management Challenges and Program Risks: U.S. Postal Service.
GAO-03-118.

High-Risk Series: An Update. GAO-03-119.

High-Risk Series: Strategic Human Capital Management. GAO-03-120.

High-Risk Series: Protecting Information Systems Supporting the
Federal Government and the Nation’s Critical Infrastructures.
GAO-03-121.

High-Risk Series: Federal Real Property. GAO-03-122.




Page 52                                    GAO-03-102 Homeland Security Challenges
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