oversight

Department of Homeland Security: Continued Progress Made Improving and Integrating Management Areas, but More Work Remains

Published by the Government Accountability Office on 2012-09-20.

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

                               United States Government Accountability Office

GAO                            Testimony
                               Before the Committee on Homeland
                               Security, House of Representatives


                               DEPARTMENT OF
For Release on Delivery
Expected at 10:00 a.m. EST
Thursday, September 20, 2012

                               HOMELAND SECURITY
                               Continued Progress Made
                               Improving and Integrating
                               Management Areas, but
                               More Work Remains
                               Statement of David C. Maurer, Director
                               Homeland Security and Justice Issues




GAO-12-1041T
United States Government Accountability Office
Washington, DC 20548




                                   Chairman King, Ranking Member Thompson, and Members of the
                                   Committee:

                                   I am pleased to be here today to discuss the Department of Homeland
                                   Security’s (DHS) efforts to strengthen and integrate its management
                                   functions. DHS now has more than 200,000 employees and an annual
                                   budget of almost $60 billion, and its transformation is critical to achieving
                                   its homeland security and other missions. Since 2003, GAO has
                                   designated the implementation and transformation of DHS as high risk
                                   because DHS had to combine 22 agencies—several with major
                                   management challenges—into one department, and failure to effectively
                                   address DHS’s management and mission risks could have serious
                                   consequences for our national and economic security. 1 This high-risk
                                   area includes challenges in strengthening DHS’s management
                                   functions—financial management, acquisition management, human
                                   capital, and information technology (IT)—the effect of those challenges on
                                   DHS’s mission implementation, and challenges in integrating
                                   management functions within and across the department and its
                                   components.

                                   In November 2000, we published our criteria for removing areas from the
                                   high-risk list. 2 Specifically, agencies must have (1) a demonstrated strong
                                   commitment and top leadership support to address the risks; (2) the
                                   capacity (that is, the people and other resources) to resolve the risks; (3)
                                   a corrective action plan that identifies the root causes, identifies effective
                                   solutions, and provides for substantially completing corrective measures
                                   in the near term, including but not limited to steps necessary to implement
                                   solutions we recommended; (4) a program instituted to monitor and
                                   independently validate the effectiveness and sustainability of corrective
                                   measures; and (5) the ability to demonstrate progress in implementing
                                   corrective measures.




                                   1
                                    GAO, High-Risk Series: An Update, GAO-03-119 (Washington, D.C.: January 2003);
                                   GAO High-Risk Series: An Update, GAO-09-271 (Washington, D.C.: January 2009); High-
                                   Risk Series: An Update, GAO-07-310 (Washington, D.C.: January 2007); and High-Risk
                                   Series: An Update, GAO-05-207 (Washington, D.C.: January 2005).
                                   2
                                    GAO, Determining Performance and Accountability Challenges and High Risks,
                                   GAO-01-159SP (Washington, D.C.: November 2000).




                                   Page 1                                                                 GAO-12-1041T
On the basis of our prior work, in a September 2010 letter to DHS, we
identified, and DHS agreed to achieve, 31 actions and outcomes that are
critical to addressing the challenges within the department’s management
areas and in integrating those functions across the department to address
the high-risk designation. 3 These key actions and outcomes include,
among others, obtaining and then sustaining unqualified audit opinions for
at least 2 consecutive years on the departmentwide financial statements;
validating required acquisition documents in accordance with a
department-approved, knowledge-based acquisition process; and
demonstrating measurable progress in implementing its IT human capital
plan and accomplishing defined outcomes. 4 In January 2011, DHS issued
its initial Integrated Strategy for High Risk Management, which included
key management initiatives (e.g., financial management controls, IT
program governance, and procurement staffing model) to address
challenges and the outcomes we identified for each management area.
DHS provided updates of its progress in implementing these initiatives in
later versions of the strategy—June 2011, December 2011, and June
2012. Achieving and sustaining progress in these management areas
would demonstrate the department’s ability and ongoing commitment to
addressing our five criteria for removing issues from the high-risk list.

My testimony this morning, as requested, will discuss our observations,
based on prior and ongoing work, on DHS’s progress in achieving
outcomes critical to addressing its high-risk designation for the
implementation and transformation of the department.

This statement is based on prior reports and testimonies we issued from
June 2007 through September 2012 and letters we submitted to DHS in
March and November 2011 providing feedback on the department’s
January and June 2011 versions of its Integrated Strategy for High Risk
Management. 5 For the past products, among other methodologies, we
interviewed DHS officials; analyzed DHS strategies and other documents
related to the department’s implementation and transformation high-risk
area; and reviewed our past reports, issued since DHS began its


3
    See appendix I for a summary of the 31 actions and outcomes.
4
 An unqualified opinion states that the audited financial statements present fairly, in all
material respects, the financial position, results of operations, and cash flows of the entity
in conformity with generally accepted accounting principles.
5
    See the related products list at the end of this statement.




Page 2                                                                          GAO-12-1041T
                      operations in March 2003. All of this work was conducted in accordance
                      with generally accepted government auditing standards; more-detailed
                      information on the scope and methodology from our prior work can be
                      found within each specific report. This statement is also based on
                      observations from our ongoing work related to DHS IT investments. 6 For
                      this work, we analyzed recent cost and schedule performance for DHS’s
                      major IT investments as reported to the Office of Management and
                      Budget as of March 2012. We will report on the final results of this review
                      later this month. We are conducting this work in accordance with
                      generally accepted government auditing standards. Those standards
                      require that we plan and perform the audit to obtain sufficient, appropriate
                      evidence to provide a reasonable basis for our findings and conclusions
                      based on our audit objectives. We believe that the evidence obtained
                      provides a reasonable basis for our findings and conclusions based on
                      our audit objectives.


                      Since we designated the implementation and transformation of DHS as
DHS Has Made          high risk in 2003, DHS has made progress addressing management
Progress in           challenges and senior department officials have demonstrated
                      commitment and top leadership support for addressing the department’s
Addressing Its        management challenges. However, the department has significant work
Management            ahead to achieve positive outcomes in resolving high-risk issues. For
Challenges, but Has   example, DHS faces challenges in modernizing its financial systems,
                      implementing acquisition management controls, and improving employee
Significant Work      satisfaction survey results, among other things. As DHS continues to
Ahead to Achieve      mature as an organization, it will be important for the department to
                      continue to strengthen its management functions, since the effectiveness
High-Risk Outcomes    of these functions affects its ability to fulfill its homeland security and
                      other missions.

                      Financial management. DHS has made progress in addressing its
                      financial management and internal controls weaknesses, but has been
                      unable to obtain an unqualified audit opinion on its financial statements




                      6
                       This review is being conducted at the request of this Committee’s Subcommittee on
                      Oversight, Investigations, and Management; and Senator Thomas Carper, Chairman,
                      Subcommittee on Federal Financial Management, Government Information, Federal
                      Services and International Security of the Senate Committee on Homeland Security and
                      Governmental Affairs.




                      Page 3                                                                   GAO-12-1041T
since the department’s creation and faces challenges in modernizing its
financial management systems. DHS has, among other things,

•   reduced the number of material weaknesses in internal controls from
    18 in 2003 to 5 in fiscal year 2011; 7

•   achieved its goal of receiving a qualified audit opinion on its fiscal year
    2011 consolidated balance sheet and statement of custodial activity
    for the first time since the department’s creation; 8

•   established a goal of obtaining an audit opinion on all of its fiscal year
    2012 financial statements; and

•   expanded the scope of the annual financial audit to the complete set
    of fiscal year 2012 financial statements, which DHS believes will help
    it to obtain an unqualified opinion for fiscal year 2013. 9

However, DHS continues to face challenges in financial management. For
example, DHS anticipates difficulties in providing its auditors transaction-
level detail to support balances reported in its fiscal year 2012 financial
statements in order to obtain an opinion on its financial statements. This
is due to, among other things, components not retaining original
acquisition documentation or enforcing policies related to recording
purchases and making payments. DHS also anticipates its auditors


7
 A material weakness is a significant deficiency, or a combination of significant
deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or combination of
deficiencies, in internal control that is less severe than a material weakness, yet important
enough to merit attention by those charged with governance. A deficiency in internal
control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis.
8
 A qualified opinion states that, except for the effects of the matter(s) to which the
qualification relates, the audited financial statements present fairly, in all material respects,
the financial position, results of operations, and cash flows of the entity in conformity with
generally accepted accounting principles. The matter(s) to which the qualification relates
could be due to a scope limitation, or the audited financial statements containing a
material departure from generally accepted accounting principles, or both.
9
 DHS’s complete set of financial statements consist of the Balance Sheet, Statement of
Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, and
Statement of Custodial Activity.




Page 4                                                                            GAO-12-1041T
issuing a disclaimer in their fiscal year 2012 report on internal controls
over financial reporting due to material weaknesses in internal controls,
such as lack of effective controls over the recording of financial
transactions related to property, plant, and equipment.

In addition, in December 2011, DHS reported that the Federal Emergency
Management Agency (FEMA), U.S. Coast Guard (USCG), and U.S.
Immigration and Customs Enforcement (ICE) have an essential business
need to replace their financial management systems, but DHS has not
fully developed its plans for upgrading existing or implementing new
financial systems at these agencies. According to DHS’s June 2012
version of its Integrated Strategy for High Risk Management, the
department plans to extend the useful life of FEMA’s current system by
about 3 years, while FEMA proceeds with a new financial management
system solution, and is in the process of identifying the specific approach,
necessary resources, and time frames for upgrading existing or
implementing new financial systems at USCG and ICE. Without sound
processes, controls, and systems, DHS faces long-term challenges in
obtaining and sustaining an unqualified opinion on both its financial
statements and internal controls over financial reporting, and ensuring its
financial management systems generate reliable, useful, timely
information for day-to-day decision making. We currently have ongoing
work related to DHS’s efforts to improve its financial reporting that we
expect to report on in the spring of 2013. 10

Acquisition management. DHS has made progress in the acquisition
management area by enhancing the department’s ability to oversee major
acquisition programs. For example:

•    DHS has established eight Centers of Excellence for cost estimating,
     systems engineering, and other disciplines to bring together program
     managers, senior leadership staff, and subject matter experts to
     promote best practices, provide expert counsel, technical guidance,
     and acquisition management tools; and each DHS component has
     established a Component Acquisition Executive (CAE) to provide
     oversight and support to programs within the component’s portfolio.



10
 We are doing this work at the request of the Subcommittee on Federal Financial
Management, Government Information, Federal Services and International Security of the
Senate Committee on Homeland Security and Governmental Affairs.




Page 5                                                                   GAO-12-1041T
     According to DHS, as of June 2012, 75 percent of the core CAE
     support positions were filled.

•    In March 2012, DHS completed the development of a Procurement
     Staffing Model to determine optimal numbers of personnel to properly
     award and administer contracts. In June 2012, DHS reported that it is
     taking steps to implement the staffing model throughout headquarters
     and the components.

•    DHS included a new initiative (strategic sourcing) in its December
     2011 Integrated Strategy for High Risk Management to increase
     savings and improve acquisition efficiency by consolidating contracts
     departmentwide for the same kinds of products and services. The
     Office of Management and Budget’s Office of Federal Procurement
     Policy has cited DHS’s efforts among best practices for implementing
     federal strategic sourcing initiatives. Earlier this month, we reported
     that the department has implemented 42 strategically sourced efforts
     since the department’s inception. 11 According to DHS data, the
     department’s spending through strategic sourcing contract vehicles
     has increased steadily from $1.8 billion in fiscal year 2008 to almost
     $3 billion in fiscal year 2011, representing about 20 percent of DHS’s
     procurement spending for that year.

However, DHS continues to face significant challenges in managing its
acquisitions. For example:

•    Earlier this week, we reported that 68 of the 71 program offices we
     surveyed from January through March 2012 responded that they
     experienced funding instability, workforce shortfalls, and/or changes
     to their planned capabilities over the programs’ duration. 12 We have
     previously reported that these challenges increase the likelihood
     acquisition programs will cost more and take longer to deliver
     capabilities than expected. 13



11
 GAO, Homeland Security: DHS Has Enhanced Procurement Oversight Efforts, but
Needs to Update Guidance, GAO-12-947 (Washington, D.C.: Sept. 10, 2012).
12
 GAO, Homeland Security: DHS Requires More Disciplined Investment Management to
Help Meet Mission Needs, GAO-12-833 (Washington, D.C.: Sept. 18, 2012).
13
 GAO, Department of Homeland Security: Assessments of Complex Acquisitions,
GAO-10-588SP (Washington, D.C.: June 30, 2010).




Page 6                                                               GAO-12-1041T
•     Our recent review of DHS acquisition management also identified that
      while DHS’s acquisition policy reflects many key program
      management practices that could help mitigate risks and increase the
      chances for successful outcomes, it does not fully reflect several key
      portfolio management practices, such as allocating resources
      strategically. 14 DHS plans to develop stronger portfolio management
      policies and processes, but until it does so, DHS programs are more
      likely to experience additional funding instability, which will increase
      the risk of further cost growth and schedule slips. We recommended
      that DHS take a number of actions to help mitigate the risk of poor
      acquisition outcomes and strengthen the department’s investment
      management activities. DHS concurred with all of our
      recommendations and noted actions it had taken or planned to
      address them.

Human capital management. DHS has taken a number of actions to
strengthen its human capital management. For example:

•     DHS issued human capital-related plans, guidance, and tools to
      address its human capital challenges, including a Workforce Strategy
      for 2011-2016; a revised Workforce Planning Guide, issued in March
      2011, to help the department plan for its workforce needs; and a
      Balanced Workforce Strategy tool, which some components have
      begun using to help achieve the appropriate mix of federal and
      contractor skills.

•     The department implemented two programs to address senior
      leadership recruitment and hiring, as we reported in February 2012. 15
      While DHS’s senior leadership vacancy rate was as high as 25
      percent in fiscal year 2006, it varied between 2006 and 2011 and
      declined overall to 10 percent at the end of fiscal year 2011. 16

•     DHS developed outreach plans to appeal to veterans and other
      underrepresented groups.




14
    GAO-12-833.
15
  GAO, DHS Human Capital: Senior Leadership Vacancy Rates Generally Declined, but
Components’ Rates Varied, GAO-12-264 (Washington, D.C.: Feb. 10, 2012).
16
    GAO-12-264.




Page 7                                                                GAO-12-1041T
While these initiatives are promising, DHS continues to face challenges in
human capital management. For example:

•    As we reported in March 2012, based on our preliminary observations
     of DHS’s efforts to improve employee morale, federal surveys have
     consistently found that DHS employees are less satisfied with their
     jobs than the government-wide average. 17 DHS has taken steps to
     identify where it has the most significant employee satisfaction
     problems and developed plans to address those problems, such as
     establishing a departmentwide Employee Engagement Executive
     Steering Committee, but has not yet improved employee satisfaction
     survey results. We plan to issue a final report on our findings later this
     month. 18

•    As we reported in April 2012, changes in FEMA’s workforce,
     workload, and composition have created challenges in FEMA’s ability
     to meet the agency’s varied responsibilities and train its staff
     appropriately. 19 For example, FEMA has not developed processes to
     systematically collect and analyze agencywide workforce and training
     data that could be used to better inform its decision making. We
     recommended that FEMA, among other things, identify long-term
     quantifiable mission-critical goals, establish lines of authority for
     agencywide workforce planning and training efforts, and develop
     systematic processes to collect and analyze workforce and training
     data. DHS concurred with our recommendations and reported actions
     underway to address them.

Information technology management. DHS has made progress in
strengthening its IT management, but the department has much more
work to do to fully address its IT management weaknesses. Among other
accomplishments, DHS has:




17
  GAO, Department of Homeland Security: Preliminary Observations on DHS’s Efforts to
Improve Employee Morale. GAO-12-509T (Washington, D.C.: Mar. 22, 2012).
18
  We are doing this work at the request of this Committee’s Subcommittee on Oversight,
Investigations, and Management; and Senator Susan Collins, Ranking Member of the
Senate Committee on Homeland Security and Governmental Affairs.
19
  GAO, Federal Emergency Management Agency: Workforce Planning and Training
Could Be Enhanced by Incorporating Strategic Management Principles, GAO-12-487
(Washington, D.C.: Apr. 26, 2012).




Page 8                                                                    GAO-12-1041T
•     strengthened its enterprise architecture; 20

•     defined and begun to implement a vision for a tiered governance
      structure intended to improve program and portfolio management, as
      we reported in July 2012; 21 and

•     established a formal IT Program Management Development Track
      and staffed Centers of Excellence with subject matter experts to assist
      major and non-major programs.

Based on preliminary observations from our review of DHS’s major at-risk
IT acquisitions we are performing for the committee, these improvements
may be having a positive effect. Specifically, as of March 2012,
approximately two-thirds of the department’s major IT investments we
reviewed (47 of 68) were meeting current cost and schedule
commitments (i.e. goals).

DHS has made progress, but the department has much more work to do
to fully address its IT management weaknesses. For example, the
department needs to:

•     finalize the policies and procedures associated with its new tiered
      governance structure and continue to implement this structure, as we
      recommended in our July 2012 report; 22

•     continue to implement its IT human capital plan, which DHS believed
      would take 18 months to fully implement as of June 2012; and

•     continue its efforts to enhance IT security by, among other things,
      effectively addressing material weaknesses in financial systems
      security, developing a plan to track and promptly respond to known
      vulnerabilities, and implementing key security controls and activities.




20
  An enterprise architecture can be viewed as a blueprint for organizational transformation
and IT modernization.
21
  GAO, Information Technology: DHS Needs to Further Define and Implement Its New
Governance Process, GAO-12-818 (Washington, D.C.: July 25, 2012).
22
    GAO-12-818.




Page 9                                                                       GAO-12-1041T
Management integration. DHS has made progress in integrating its
individual management functions across the department and its
component agencies. For example, DHS has put into place common
policies, procedures, and systems within individual management
functions, such as human capital, that help to integrate its component
agencies, as we reported in September 2011. 23 To strengthen this effort,
in May 2012, the Secretary of Homeland Security modified the
delegations of authority between the Management Directorate and their
counterparts at the component level. According to DHS, this action will
provide increased standardization of operating guidelines, policies,
structures, and oversight of programs. Additionally, DHS has taken steps
to standardize key data elements for the management areas across the
department to enhance its decision-making. For example, in April 2012,
the Under Secretary for Management appointed an executive steering
committee and tasked this committee with creating a “Data Mart” to
integrate data from disparate sources and allow the dissemination of
timely and reliable information by March 2013. Further, consistent with
our prior recommendations, DHS has implemented mechanisms to
promote accountability for management integration among department
and component management chiefs by, among other things, having the
department chiefs develop written objectives that explicitly reflect
priorities and milestones for that management function. 24

Although these actions are important, DHS needs to continue to
demonstrate sustainable progress in integrating its management
functions within and across the department and its components and take
additional actions to further and more effectively integrate the department.
For example, DHS recognizes the need to better integrate its lines of
business. The Integrated Investment Life Cycle Model (IILCM), which the
department is establishing to manage investments across the
department’s components and management functions, is an attempt at
doing that. DHS identified the IILCM as one of its most significant
management integration initiatives in January 2011. However, the June
2012 update reported that this initiative is in its early planning stages, will


23
  GAO, Department of Homeland Security: Progress Made and Work Remaining in
Implementing Homeland Security Missions 10 Years after 9/11, GAO-11-881 (Washington
D.C.: Sept. 7, 2011).
24
  GAO, Department of Homeland Security: Actions Taken Toward Management
Integration, but a Comprehensive Strategy Is Still Needed, GAO-10-131 (Washington,
D.C.: Nov. 20, 2009).




Page 10                                                                  GAO-12-1041T
be phased in over multiple budget cycles, and requires additional
resources to fully operationalize. In September 2012, DHS reported that it
has developed draft policy and procedural guidance to support
implementation of the IILCM and now plans to begin using aspects of this
new approach to develop portions of the department’s fiscal years 2015
through 2019 budget.

DHS strategy for addressing GAO’s high-risk designation. In January
2011, DHS issued an agencywide management integration strategy—the
Integrated Strategy for High Risk Management—as we recommended in
our March 2005 report on DHS’s management integration efforts. 25 DHS’s
most recent version of the strategy, issued in June 2012, greatly
improved upon prior versions and addressed feedback we previously
provided by, for example, identifying key measures and progress ratings
for the 18 initiatives included in the strategy and the 31 outcomes. 26 We
believe the June 2012 strategy, if implemented and sustained, provides a
path for DHS to address our high-risk designation.

DHS can further strengthen or clarify its Integrated Strategy for High Risk
Management to better enable DHS, Congress, and GAO to assess the
department’s progress in implementing its management initiatives by,
among other things: determining the resource needs for all of the
corrective actions in the strategy; communicating to senior leadership
critical resource gaps across all initiatives; and identifying program and
project risks in a supporting risk mitigation plan for all initiatives.

Going forward, DHS needs to continue implementing its Integrated
Strategy for High Risk Management and show measurable, sustainable
progress in implementing its key management initiatives and corrective
actions and achieving outcomes. We will continue to monitor, assess, and
provide feedback on DHS’s implementation and transformation efforts
through our ongoing and planned work, including the 2013 high-risk
update that we expect to issue in January 2013.




25
 GAO, Department of Homeland Security: A Comprehensive and Sustained Approach
Needed to Achieve Management Integration, GAO-05-139 (Washington, D.C.: Mar. 16,
2005).
26
     GAO-10-131.




Page 11                                                               GAO-12-1041T
                  Chairman King, Ranking Member Thompson, and Members of the
                  Committee, this concludes my prepared statement. I would be pleased to
                  respond to any questions that you may have.


                  For questions about this statement, please contact David C. Maurer at
GAO Contact and   (202) 512-9627 or maurerd@gao.gov. Contact points for our Offices of
Staff             Congressional Relations and Public Affairs may be found on the last page
                  of this statement. Individuals making key contributions to this statement
Acknowledgments   include Maria Strudwick, Assistant Director; Victoria Miller, Analyst-in-
                  Charge; and Chloe Brown. Other contributors include: David Alexander,
                  Michael LaForge, Tom Lombardi, Anjalique Lawrence, Gary Mountjoy,
                  Sabine Paul, and Katherine Trimble. Key contributors for the previous
                  work that this testimony is based on are listed within each individual
                  product.




                  Page 12                                                       GAO-12-1041T
Appendix I: Summary of Actions and
             Appendix I: Summary of Actions and
             Outcomes for Addressing the Implementing
             and Transforming the Department of Homeland

Outcomes for Addressing the Implementing
             Security High-Risk Area



and Transforming the Department of
Homeland Security High-Risk Area
             On the basis of our prior work, in a September 2010 letter to the
             Department of Homeland Security (DHS), we identified 31 actions and
             outcomes that are critical to addressing the challenges within the
             department’s management areas and in integrating those functions
             across the department, thus addressing the high-risk designation. This
             appendix provides a summary of the 31 actions and outcomes.

             Financial management

             1. Maintain top management commitment to correcting weaknesses
             2. Address internal control, business process, and systems weaknesses
             3. Commit sufficient resources to implement financial system
                modernization and complete a full-scope audit of the department’s
                basic financial statements
             4. Expand scope of financial statement audit to include an opinion on all
                of the department’s basic financial statements
             5. Sustain clean opinions for at least 2 consecutive years
             6. Comply with the Federal Financial Management Improvement Act of
                1996
             7. Embrace best practices for financial system modernization
             8. Establish contractor oversight mechanisms for financial system
                modernization
             9. Successfully implement new or upgrade existing financial systems as
                needed throughout the department, including the U.S. Coast Guard
                (USCG), Federal Emergency Management Agency (FEMA), and U.S.
                Immigration and Customs Enforcement (ICE)

             Acquisition management

             1. Validate required acquisition documents in a timely manner at major
                milestones, including life-cycle cost estimates, in accordance with a
                department-approved, knowledge-based acquisition process
             2. Improve component acquisition capability
             3. Establish a Joint Requirements Council or a similar body
             4. Ensure a sufficient number of trained acquisition personnel are in
                place at the department and component levels




             Page 13                                                        GAO-12-1041T
Appendix I: Summary of Actions and
Outcomes for Addressing the Implementing
and Transforming the Department of Homeland
Security High-Risk Area




5. Establish and demonstrate measurable progress in achieving goals
   that improve programs’ compliance with the department’s established
   processes and policies. For major acquisitions, demonstrate that
   actual cost and schedule performance are within baseline thresholds.

Human capital management

1. Implement a human capital strategic plan
2. Link workforce planning to other department planning efforts
3. Enhance recruiting to meet current and long-term needs
4. Base human capital decisions on competencies and performance
5. Seek employees’ input to strengthen human capital approaches and
   activities
6. Improve scores on the Office of Personnel Management’s Federal
   Employee Viewpoint Survey
7. Assess and improve training, education, and development programs

Information technology management

1. Demonstrate achievement of stage 4 of GAO’s Enterprise
   Architecture Management Maturity Framework (that is, completing
   and using an enterprise architecture for targeted results)
2. Establish and implement information technology (IT) investment
   management best practices
3. Establish and implement IT system acquisition management
   processes
4. Show progress in implementing the IT strategic human capital plan
5. Demonstrate for at least two consecutive investment increments that
   cost and schedule performance is within the established threshold
   baseline for major investments
6. Enhance the security of internal IT systems and networks




Page 14                                                       GAO-12-1041T
Appendix I: Summary of Actions and
Outcomes for Addressing the Implementing
and Transforming the Department of Homeland
Security High-Risk Area




Management integration

1. Implement actions and outcomes in each management area
2. Revise management integration strategy to address characteristics
   we previously recommended, such as set implementation goals and a
   timeline to monitor progress
3. Establish performance measures to assess progress made in
   achieving departmentwide management integration
4. Promote accountability for management integration among
   department and management chiefs through the performance
   management system




Page 15                                                   GAO-12-1041T
Related GAO Reports
             Related GAO Reports




             Homeland Security: DHS Requires More Disciplined Investment
             Management to Help Meet Mission Needs. GAO-12-833. Washington,
             D.C.: September 18, 2012.

             Department of Homeland Security: Oversight and Coordination of
             Research and Development Should Be Strengthened. GAO-12-837.
             Washington, D.C.: September 12, 2012.

             Homeland Security: DHS Has Enhanced Procurement Oversight Efforts,
             but Needs to Update Guidance. GAO-12-947. Washington, D.C.:
             September 10, 2012.

             Information Technology: DHS Needs to Further Define and Implement Its
             New Governance Process. GAO-12-818. Washington, D.C.: July 25,
             2012.

             Federal Emergency Management Agency: Workforce Planning and
             Training Could Be Enhanced by Incorporating Strategic Management
             Principles. GAO-12-487. Washington, D.C.: April 26, 2012.

             Department of Homeland Security: Preliminary Observations on DHS’s
             Efforts to Improve Employee Morale. GAO-12-509T. Washington, D.C.:
             March 22, 2012.

             Department of Homeland Security: Continued Progress Made Improving
             and Integrating Management Areas, but More Work Remains.
             GAO-12-365T. Washington, D.C.: March 1, 2012.

             Information Technology: Departments of Defense and Energy Need to
             Address Potentially Duplicative Investments. GAO-12-241. Washington
             D.C.: February 17, 2012.

             DHS Human Capital: Senior Leadership Vacancy Rates Generally
             Declined, but Components’ Rates Varied. GAO-12-264. Washington,
             D.C.: February 10, 2012.

             Department of Homeland Security: Additional Actions Needed to
             Strengthen Strategic Planning and Management Functions.
             GAO-12-382T. Washington D.C.: February 3, 2012.

             Department of Homeland Security: Progress Made and Work Remaining
             in Implementing Homeland Security Missions 10 Years after 9/11.
             GAO-11-881. Washington D.C.: September 7, 2011.


             Page 16                                                    GAO-12-1041T
Related GAO Reports




High-Risk Series: An Update. GAO-11-278. Washington, D.C.: February
2011.

Information Security: Federal Agencies Have Taken Steps to Secure
Wireless Networks, but Further Actions Can Mitigate Risk. GAO-11-43.
Washington, D.C.: November 30, 2010.

Department of Homeland Security: Assessments of Selected Complex
Acquisitions. GAO-10-588SP. Washington, D.C.: June 30, 2010.

Information Security: Agencies Need to Implement Federal Desktop Core
Configuration Requirements. GAO-10-202. Washington, D.C.: March 12,
2010.

Financial Management Systems: DHS Faces Challenges to Successfully
Consolidating Its Existing Disparate Systems. GAO-10-76. Washington,
D.C.: December 4, 2009.

Department of Homeland Security: Actions Taken Toward Management
Integration, but a Comprehensive Strategy Is Still Needed. GAO-10-131.
Washington, D.C.: November 20, 2009.

Homeland Security: Despite Progress, DHS Continues to Be Challenged
in Managing Its Multi-Billion Dollar Annual Investment in Large-Scale
Information Technology Systems. GAO-09-1002T. Washington, D.C.:
September 15, 2009.

Department of Homeland Security: Billions Invested in Major Programs
Lack Appropriate Oversight. GAO-09-29. Washington, D.C.: November
18, 2008.

Department of Homeland Security: Better Planning and Assessment
Needed to Improve Outcomes for Complex Service Acquisitions.
GAO-08-263. Washington, D.C.: April 22, 2008.

Homeland Security: Departmentwide Integrated Financial Management
Systems Remain a Challenge. GAO-07-536. Washington, D.C.: June 21,
2007.

Information Technology Investment Management: A Framework for
Assessing and Improving Process Maturity, version 1.1. GAO-04-394G.
Washington, D.C.: March 2004.



Page 17                                                     GAO-12-1041T
           Related GAO Reports




           High-Risk Series: Strategic Human Capital Management. GAO-03-120.
           Washington, D.C.: January 2003.

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




(441110)
           Page 18                                                    GAO-12-1041T
This is a work of the U.S. government and is not subject to copyright protection in the
United States. The published product may be reproduced and distributed in its entirety
without further permission from GAO. However, because this work may contain
copyrighted images or other material, permission from the copyright holder may be
necessary if you wish to reproduce this material separately.
GAO’s Mission         The Government Accountability Office, the audit, evaluation, and
                      investigative arm of Congress, exists to support Congress in meeting its
                      constitutional responsibilities and to help improve the performance and
                      accountability of the federal government for the American people. GAO
                      examines the use of public funds; evaluates federal programs and
                      policies; and provides analyses, recommendations, and other assistance
                      to help Congress make informed oversight, policy, and funding decisions.
                      GAO’s commitment to good government is reflected in its core values of
                      accountability, integrity, and reliability.

                      The fastest and easiest way to obtain copies of GAO documents at no
Obtaining Copies of   cost is through GAO’s website (http://www.gao.gov). Each weekday
GAO Reports and       afternoon, GAO posts on its website newly released reports, testimony,
                      and correspondence. To have GAO e-mail you a list of newly posted
Testimony             products, go to http://www.gao.gov and select “E-mail Updates.”

Order by Phone        The price of each GAO publication reflects GAO’s actual cost of
                      production and distribution and depends on the number of pages in the
                      publication and whether the publication is printed in color or black and
                      white. Pricing and ordering information is posted on GAO’s website,
                      http://www.gao.gov/ordering.htm.
                      Place orders by calling (202) 512-6000, toll free (866) 801-7077, or
                      TDD (202) 512-2537.
                      Orders may be paid for using American Express, Discover Card,
                      MasterCard, Visa, check, or money order. Call for additional information.
                      Connect with GAO on Facebook, Flickr, Twitter, and YouTube.
Connect with GAO      Subscribe to our RSS Feeds or E-mail Updates. Listen to our Podcasts.
                      Visit GAO on the web at www.gao.gov.
                      Contact:
To Report Fraud,
Waste, and Abuse in   Website: http://www.gao.gov/fraudnet/fraudnet.htm
                      E-mail: fraudnet@gao.gov
Federal Programs      Automated answering system: (800) 424-5454 or (202) 512-7470

                      Katherine Siggerud, Managing Director, siggerudk@gao.gov, (202) 512-
Congressional         4400, U.S. Government Accountability Office, 441 G Street NW, Room
Relations             7125, Washington, DC 20548

                      Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800
Public Affairs        U.S. Government Accountability Office, 441 G Street NW, Room 7149
                      Washington, DC 20548




                        Please Print on Recycled Paper.