United States
GAO General Accounting Office
Washington, D.C. 20548
Health, Education, and
Human Services Division
B-277414
July 11, 1997
The Honorable Richard K. Armey
Majority Leader
House of Representatives
The Honorable John R. Kasich
Chairman, Committee on the Budget
House of Representatives
The Honorable Dan Burton
Chairman, Committee on Government Reform
and Oversight
House of Representatives
The Honorable Bob Livingston
Chairman, Committee on Appropriations
House of Representatives
Subject: The Results Act: Observations on Department of Labor’s
June 1997 Draft Strategic Plan
On June 12, 1997, you asked us to review the draft strategic plans
submitted by the cabinet departments and selected major agencies for
consultation with the Congress as required by the Government
Performance and Results Act of 1993 (the Results Act). This letter is our
response to that request concerning the Department of Labor (Labor).
Labor’s strategic plan consists of a department-level document, which it
designates as a “strategic plan overview,” supplemented by strategic plans
for 15 of its component offices or units. As agreed with your offices, this
letter includes our analysis of the overview and selected analyses of
individual plans. As you requested, we will provide additional detailed
analyses on individual plans submitted by the Employment and Training
Administration (ETA), the Occupational Safety and Health Administration
(OSHA), and the Employment Standards Administration (ESA) by the end of
July.
Our overall objective was to review and evaluate Labor’s draft strategic
Objectives, Scope, plan overview, as submitted to congressional staff on June 11. As you
and Methodology requested, we specifically (1) assessed compliance with the act’s
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requirements and the strengths and weaknesses of the elements of the
plan; (2) described Labor’s key statutory authorities and how they relate to
the mission and goals in the strategic plan; (3) identified Labor’s programs,
activities, and functions that are crosscutting in that they are similar to or
related to goals, activities, or functions of other agencies and assessed the
extent to which the plan reflects interagency cooperation; (4) discussed
the extent to which Labor’s management challenges were addressed in the
plan; and (5) described Labor’s capacity to provide reliable information
about performance.
As agreed, our assessment of the strategic plan overview was generally
based on our previous work. Our overall assessment of Labor’s draft
strategic plan overview was generally based on our knowledge of Labor’s
operations and programs, our numerous reviews of Labor, and other
existing information available at the time of our assessment. Specifically,
the criteria we used to determine whether Labor’s draft strategic plan
overview complied with the requirements of the Results Act were the
Results Act and the Office of Management and Budget’s (OMB) guidance on
developing the plans (Circular A-11, part 2). To make judgments about the
overall quality of the overview, we used our May 1997 guidance for
congressional review of the plans (GAO/GGD-10.1.16) as a tool. To determine
whether the plan contained information on interagency coordination and
addressed management problems previously identified, we relied on our
general knowledge of Labor’s operations and programs, and the results of
our previous reports. (See Related GAO Products at the end of this
correspondence.)
To describe Labor’s key statutory responsibilities and how they relate to
Labor’s mission and goals, we reviewed Labor’s overview strategic plan
and the supplemental unit plans. As requested, we coordinated our work
on Labor’s key statutory authorities and capacity to provide reliable
information with the Congressional Research Service and Labor’s
Inspector General, respectively.
In passing the Results Act, the Congress anticipated that several planning
cycles might be need to perfect the process of developing a strategic plan
and that the plan would be continually refined. Thus, our comments reflect
a “snapshot” of the status of the plan at a particular point. We recognize
that developing a strategic plan is a dynamic process and that Labor is
continuing to work to revise the draft with input from OMB, congressional
staff, and other stakeholders.
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Labor, established as a Department in 1913, administers and enforces a
Background variety of federal labor laws guaranteeing workers’ rights to a workplace
free from safety and health hazards, a minimum hourly wage and overtime
pay, family and medical leave, freedom from employment discrimination,
and unemployment insurance. Labor also protects workers’ pension rights;
provides job training programs; helps workers find jobs; works to
strengthen free collective bargaining; and keeps track of changes in
employment, prices, and other national economic measures.
Labor’s diversity of functions is carried out by different offices in a
decentralized organizational structure. It has 24 component offices or
units, with over 1,000 field offices, to support its various functional
responsibilities. (Fig. 1 shows the organizational structure of Labor.)
However, its many program activities fall into two major categories:
enhancing workers’ skills through job training and ensuring worker
protection. A third category relates to developing economic statistics, such
as the Consumer Price Index, which is used by business, labor, and
government in formulating fiscal and monetary policy and in making
cost-of-living adjustments.
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Figure 1: Department of Labor Organization
In fiscal year 1997, Labor has an estimated budget of $34.4 billion and is
authorized 16,614 full-time-equivalent staff-years. About three-fourths of
Labor’s budget is composed of mandatory spending on income
maintenance programs, such as the unemployment insurance program.
Results Act Requirements The Results Act requires virtually every executive agency to develop a
and OMB Guidance on strategic plan covering a period of at least 5 years from the fiscal year in
Preparing and Submitting which it is submitted. The act is aimed at improving program performance.
It requires that agencies, in consultation with the Congress and other
Strategic Plans stakeholders, clearly define their mission and articulate a comprehensive
mission statement that defines their basic purpose. It also requires that
they establish long-term strategic goals, as well as annual goals linked to
them. Agencies must then measure their performance against the goals
they have set and report publicly on how well they are doing. In addition
to monitoring ongoing performance, agencies are expected to perform
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evaluation studies of their programs and to use information obtained from
these evaluations to improve the programs.
OMB Circular A-11 provides additional guidance on the development of
agency strategic plans. The Circular strongly encourages agencies to
submit a single, agencywide strategic plan. It states, however, that an
agency with disparate functions, such as Labor, may prepare several
strategic plans for its major components or programs. When an agency
does prepare multiple strategic plans for component units, Circular A-11
further provides that these not be merely packaged together and submitted
as a single strategic plan because the size and detail of such a compilation
will reduce the plan’s usefulness. Moreover, the agency is to prepare an
agencywide strategic overview that will link individual plans by giving an
overall statement of the agency’s mission and goals.
To meet the Results Act requirement for an agency strategic plan, Labor
Results in Brief elected to submit individual plans from various agency component units
supplemented by “a strategic plan overview” that addresses some Results
Act requirements at the agency level. However, Labor’s overview does not
meet OMB guidance to provide an agencywide strategic overview that links
individual strategic plans. Furthermore, while Labor’s strategic plan
overview contains a mission statement for the agency, as required, the
statement itself does not appear to be sufficiently descriptive of Labor’s
basic purpose. Labor’s strategic plan overview also does not appear to
meet the requirement contained in Circular A-11 that it contain an overall
statement of departmental goals. Instead, Labor has excerpted and listed
the goals contained in the component unit plans. For example, goals of
Labor component units responsible for workplace safety, such as OSHA and
the Mine Safety and Health Administration (MSHA), are summarized in the
worker protections section of the overview but are not integrated into an
overall agency goal.
Although Labor did not include agency goals in its strategic overview, the
Department set forth agencywide goals in recent congressional testimony.
For example, the Secretary cited as a goals equipping every working
American with the skills needed to find and hold a good job, and helping
people move from welfare to work. In addition, Labor’s strategic plan
overview is organized around three major categories—lifelong learning,
worker protections, and statistics—that could serve as the basis from
which to develop crosscutting departmental goals.
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Labor’s five areas of major statutory responsibility—employment and
training, health and safety in the workplace, pension and welfare benefits,
employment standards, and labor statistics—are covered in its draft
overview and supplemental unit plans. The goals stated in the overview
and in individual unit plans are consistent with Labor’s statutory
responsibilities. In addition, the mission statements cover all of Labor’s
major functions and operations.
Labor’s strategic plan overview recognizes the roles of other organizations,
such as other federal agencies and state and local governments, and the
importance of establishing partnerships in carrying out such functions as
ensuring safe and healthful workplaces. Labor’s overview could be
improved, however, by recognizing the importance of other participants,
namely the other 14 federal agencies involved in one major area of
responsibility—job training. The overview does not acknowledge that the
nation’s federally funded employment training system is a patchwork of
multiple programs, many of which are in departments and agencies other
than Labor; nor does it set forth goals pertaining to the development of a
cohesive, integrated, and coordinated system.
Finally, Labor’s capacity to provide reliable information for use in its
agencywide management is questionable. Its overview plan recognizes the
importance of additional information to ensure timely and sound
evaluations to assess agency progress in meeting goals. However, its
overview does not describe its strategy for ensuring that such information
is collected and used to assess progress and performance. In addition,
Labor’s overview plan does not discuss with any specificity how Labor
plans to use information technology to achieve its mission, goals, and
objectives; nor does the plan describe with sufficient clarity how Labor
intends to use information technology to improve performance and reduce
costs. Furthermore, Labor’s strategic overview plan could be improved by
including a discussion of its technology investment control process, a
process that can help agencies reduce the risk and maximize the net
benefits from their information technology investments.
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The Results Act requires that strategic plans include six components: (1) a
Labor’s Agencywide mission statement, (2) goals and objectives, (3) approaches or strategies to
Plan Does Not achieve the goals and objectives, (4) a discussion of the relationship
Contain All Elements between long-term goals and annual performance goals, (5) key external
factors affecting goals and objectives, and (6) evaluations used to establish
Required by Results goals and objectives. OMB Circular A-11 provides guidance to agencies
Act and OMB submitting plans and, in particular, to agencies like Labor that comprise
disparate components or programs. As permitted by Circular A-11, Labor
Guidance elected to submit individual plans from its different components,
supplemented by an agency-level document intended to be the strategic
plan overview.
Labor’s overview does not integrate information from individual strategic
plans of its components into a single agencywide strategic overview
document, as stated in OMB guidance. Rather it is a compilation of excerpts
from individual plans that does not identify strategic departmental goals.
The overview plan also does not include the other elements of a strategic
plan identified by the act, such as strategies to achieve goals and
evaluations used to establish goals. Further, a majority of the individual
unit plans did not include all the elements required by the act, such as the
approaches or strategies to achieve the goals or key factors affecting
goals.
The overview plan could be a more useful document if it included all the
elements identified by the act—for example, crosscutting strategies used
to achieve departmental goals. According to OMB guidance, strategic plans,
because of their scope and importance, may be the best basis for
developing a comprehensive and integrated approach to performance
management.
The Results Act and OMB guidance require a comprehensive mission
statement for the agency. Labor’s strategic plan overview articulates its
overall mission as helping “assure opportunity and security for American
workers and their families in the changing and competitive global
marketplace.” This mission statement could be improved if it were more
descriptive about what the agency does. As pointed out in Circular A-11,
the mission statement should define the basic purpose of the agency, with
particular focus on its core programs and activities. The mission statement
could communicate more about Labor’s purpose if it referred to such basic
responsibilities as job skills development, job placement, and worker
protection.
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Labor’s plan does not appear to meet the requirement related to agency
goals and objectives. Circular A-11 states that strategic plans should set
out general goals and objectives of the agency, which should elaborate on
“how the agency is carrying out its mission and very often will be
outcome-type goals.” Labor’s overview does not contain departmental
strategic goals; instead Labor has excerpted and listed the goals contained
in the component unit plans. The overview does not include
departmentwide, overarching goals that would facilitate Labor’s
functioning as a unified organization with central direction. Agencywide
goals are important to allow a future assessment of the agency’s
performance overall, as discussed in Circular A-11.
Although Labor does not include agencywide goals in its strategic
overview, it did set forth agencywide goals in congressional testimony. In
June 1997, the Secretary of Labor testified before the Subcommittee on
Human Resources, House Committee on Government Reform and
Oversight, on the issues and challenges facing Labor. In that testimony, the
Secretary stated five goals for addressing these challenges:
“One, equip every working American with the skills to find and hold good jobs, with rising
incomes throughout their lives; [t]wo, help people move from welfare to work; [t]hree,
assure that working Americans enjoy secure pensions when they retire; [f]our, guarantee
every American a safe, healthy workplace free of employment-related discrimination; and,
[f]ive, help working people balance work and family.”
The Secretary further stated that Labor’s 1998 budget request included the
resources needed to pursue these goals.
In addition, Labor organizes its strategic plan overview around three
programmatic categories: lifelong learning, worker protections, and
statistics. While identifying these three broad categories as its fundamental
areas of activity and responsibility, Labor does not develop them into
goals. Instead, each of these three sections in the overview merely
summarizes the missions, goals, and activities of individual component
units with responsibilities related to the overall category. The Secretary’s
stated goals and the three categories organizing the plan could serve as the
basis from which to develop overarching departmental goals that are
results oriented and set out the long-term programmatic, policy, and
management goals of the agency.
A few Labor unit-level officials have had preliminary discussions with
congressional staff to consult on their individual unit plans. However,
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neither officials from the Office of the Secretary of Labor or from the
Office of the Assistant Secretary for Administration and Management, the
office responsible for implementation of the Results Act, have consulted
with congressional staff regarding the strategic plan overview or individual
unit plans. This level of consultation would probably be useful in helping
the Congress and Labor to ensure a more complete understanding of
departmental goals and how those goals guide programmatic, policy, and
management decisions.
Labor’s Strategic Plan Labor’s strategic plan consists of individual plans for 15 of its component
Contains 15 Unit/Subunit offices or subunits and a strategic plan overview. Although Labor has 24
Plans offices/units, not all submitted strategic plans. Discretion is allowed by
Circular A-11, which states that agencies can submit strategic plans that
cover only major functions or operations; however, Labor provided no
indication as to why certain offices were included and others excluded.
Labor’s many program activities are carried out by its seven program
agencies. However, only six of these—the Bureau of Labor Statistics, ETA,
MSHA, OSHA, the Pension and Welfare Benefits Administration, and the
Veterans’ Employment and Training Service—submitted strategic plans.
The seventh, ESA, submitted separate plans for the four subunits under its
responsibility—the Office of Federal Contract Compliance Programs, the
Office of Workers’ Compensation Programs, the Office of Labor
Management Standards (OLMS), and the Wage and Hour Division (WHD).
However, it did not prepare an overall comprehensive plan that pulls
together the ESA strategy to be followed, as a single organizational unit, in
working toward achieving its desired results.
Two of Labor’s seven departmental staff and support offices also
submitted strategic plans—the Office of the Inspector General (OIG) and
the Office of the Chief Financial Officer (OCFO). Another support office, the
Office of the Assistant Secretary for Administration and Management
(OASAM), which has overall management responsibility for implementing
the Results Act, did not submit a strategic plan for its operations. Yet in
Labor’s overview plan, it was noted that the Department’s commitment to
the Results Act is specifically reflected in the strategic plans of OASAM, as
well as those of OIG and OCFO.
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Labor Has Traditionally Labor’s draft strategic plan submission reflects the current Department
Operated With management structure and operations; that is, the plan consists of a
Decentralized Management number of discrete plans for carrying out Labor’s various responsibilities
largely independently and without a cohesive, overall plan. Our past work
Approach indicates that Labor traditionally has operated as a conglomeration of
individual agencies/units, each working largely independently of the other
and with limited central direction and control. Our 1985 report on the
overall management of Labor pointed out that Labor had no systematic,
departmentwide, long-range policy planning process.1 Instead,
departmental plans were essentially compilations of individual agencies’
2-year objectives. Furthermore, due to the lack of strong direction and
control, organizational components traditionally operated independently
with limited oversight from the Office of the Secretary. We recommended
a series of actions to deal with specific management problems, such as
developing a long-range planning process to help ensure that desired
program and policy decisions are achieved in a planned and orderly
fashion.
Labor has initiated actions in the past to develop more comprehensive
approaches to departmental management. The follow-up report to our
study of Labor’s overall management recognized action by the Secretary of
Labor to establish a system that integrated agency and departmentwide
goals and provided a mechanism for monitoring progress and providing
feedback to the component agencies.2 It appears that Labor may not have
continued this integrated management approach. Our 1996 report
containing information on the field offices supporting Labor pointed out
that Labor does not centrally maintain information on its components’
field office locations, staffing, and costs.3 Instead, each component
maintains such information itself and provides OASAM with information as
requested. Thus, in responding to our request for information we needed
for our 1996 study, OASAM had to go to individual components. To further
illustrate the decentralized nature of Labor’s management structure, OASAM
was uncertain, immediately after the Oklahoma City bombing, whether it
had field office staff located in the bombed federal building. To obtain this
information, Labor had to query staff in each of the major program
1
Strong Leadership Needed to Improve Management at the Department of Labor (GAO/HRD-86-12,
Oct. 21, 1985).
2
Department of Labor: Assessment of Management Improvement Efforts (GAO/HRD-87-27, Dec. 31,
1986).
3
Education and Labor: Information on the Departments’ Field Offices (GAO/HEHS-96-178, Sept. 16,
1996).
Page 10 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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divisions to ascertain whether the divisions had field offices in Oklahoma
City and the location of the offices.
We identified the following areas of major statutory responsibility for
Labor’s Plan Labor: (1) employment and training, (2) health and safety in the
Addresses Statutory workplace, (3) pension and welfare benefits, (4) employment standards,
Responsibilities and (5) labor statistics. Labor has covered each of these in its draft
overview and supplemental unit plans, and the goals stated therein are
consistent with its statutory responsibilities.
As noted earlier, the overview plan does not contain agencywide goals or
strategies; rather, the goals and strategies in the plan are those of various
components of Labor. To determine whether the goals reflected Labor’s
statutory authority, we reviewed the individual unit plans as well as the
overview. We found that some of the goals for each of Labor’s component
agencies are established by law, either expressly or by implication; others,
while consistent with the law, cannot be directly linked to anything in the
laws dealing with Labor’s responsibilities. For example, OSHA’ s strategic
goal of “securing public confidence through excellence in the development
and delivery of its programs and services” is not based on specific
requirements in Labor statutes. Similarly, the goals of WHD, which include
“increase compliance with the laws and regulations administered and
enforced by WHD, increase customer satisfaction with the services
provided by WHD, and achieve a high performance workplace which
anticipates and is responsive to the needs of our customers and all our
employees,” are not based on specific statutory requirements.
Overall, the overview plan and supplemental unit plans cover all of Labor’s
major functions and operations. The enclosure discusses the goals and
related statutory responsibilities for each component/unit.
Labor is responsible for a diversity of functions, many of which are also
Description of carried out, at least in part, by other federal agencies and involve the
Crosscutting Program participation of state and local agencies as well as private sector
Activities organizations. Labor’s strategic plan overview recognizes the roles of other
organizations and the importance of establishing partnerships in carrying
out some of these functions. For example, the overview points out, in the
worker protections area, that “OSHA does not have sole responsibility for
safety and health in the workplace. The Agency works closely with other
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partners in the Department, in the Federal government, with state and
local governments, and the private sector.”
Labor’s overview could be improved by recognizing the substantial
number of other participants involved in job training. The overview does
not acknowledge a key aspect of the nation’s federally funded employment
training system, namely, that it is not a cohesive, integrated, or
coordinated system. In 1995, we identified 163 employment training
programs spread across 15 federal departments and agencies, including
Labor.4 By recognizing in the overview the substantial number of the
nation’s job training programs that are outside its purview, Labor could
then discuss how its programs could fit in with a broader national job
training strategy and the coordination required to develop and implement
such a strategy. The coordination strategy could focus on identifying and
taking advantage of opportunities to realize efficiencies through
coordination and, possibly, consolidation. Passage of the recent welfare
reform legislation puts even greater demands on an employment training
system that appears unprepared to respond. Labor’s overview does
provide a general reference to “working closely with other agencies,
states, and communities to leverage our resources to address the special
needs of welfare recipients” but does not provide more detailed
information on what Labor will be doing.
The Results Act poses challenges to Labor to become more businesslike in
Labor Management its operations. Labor’s strategic plan overview, however, does not fully
Challenges address these challenges and how Labor plans to respond.
Managing in the “businesslike” manner envisioned by the Results Act will
be a substantial challenge for Labor, but the experiences of one of its
component agencies as a pilot could be helpful. OSHA, as one of the Results
Act’s pilot agencies, has been involved in a number of activities geared
toward making the management improvements intended by the Results
Act.5 It has been working to develop a comprehensive performance
measurement system that will focus on outcomes to measure its own
effectiveness. OSHA and state representatives have discussed the
application of this comprehensive system to OSHA’s monitoring of state
4
Multiple Employment Training Programs: Major Overhaul Needed to Create a More Efficient,
Customer-Driven System (GAO/T-HEHS-95-70, Feb. 6, 1995).
5
Under the Results Act, OMB designated approximately 70 pilot projects in performance measurement
for fiscal years 1994, 1995, and 1996. The pilot projects were to undertake the preparation of
performance plans and program performance reports for one or more of the major functions and
operations of the agency participating in the pilot.
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safety and health programs. Although not a requirement of the strategic
planning process, a discussion in Labor’s overview related to the
experiences gained from the OSHA pilot project—including lessons learned
and whether best practices or other lessons could be applied agencywide
or in units with similar functions—could be helpful in meeting the current
challenge of managing under the Results Act.
To efficiently and effectively operate, manage, and oversee its diversity of
Labor’s Capacity to functions, Labor needs reliable data. In past work, we have identified
Provide Reliable weaknesses in Labor’s information management practices. For example,
Information for our review of Labor’s field offices demonstrated the lack of centrally
located information on key departmental functions, such as field office
Agency Management locations, staffing, and costs. In our report on Labor’s Davis-Bacon Act
Is Questionable wage determination process, we also identified limited computer
capabilities as a reason for the process’ vulnerability to use of fraudulent
or inaccurate data.6 We found a lack of both computer software and
hardware that could assist wage analysts in their reviews. The OIG also
cited areas in which Labor needed to improve its information management
practices, especially those used to support financial accounting systems.
Given these past findings, it is important for Labor to delineate in its plan
how it as an agency, along with specific unit initiatives, will produce the
requisite information to assess its progress. In its overview plan, Labor
recognizes that if it is to ensure timely and sound evaluations to assess
agency progress in meeting goals required by the act, additional
information may need to be obtained from its stakeholders. However, its
statement—“Resources for such information collection and evaluation
activities will need to be addressed”—does not describe its strategy for
ensuring that information from evaluations and other ongoing systems will
be collected and used to assess progress and performance.
Labor has made some efforts to improve its information management
systems; for example, it has appointed a Chief Information Officer.
However, this individual also serves as the Assistant Secretary for
Administration and Management, and questions have been raised about
whether an individual can fulfill both responsibilities.
As we have noted in our past work, sound application and management of
information technology to support strategic program goals must be an
6
Davis-Bacon Act: Process Changes Could Raise Confidence That Wage Rates Are Based on Accurate
Data (GAO/HEHS-96-130, May 31, 1996).
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important part of any serious attempt to improve agency mission
performance, cut costs, and enhance responsiveness to the public. Labor’s
overview plan does not discuss with any specificity how Labor plans to
use information technology to achieve its mission, goals, and objectives,
nor does the plan describe with sufficient clarity how Labor intends to use
information technology to improve performance and reduce costs.
According to its draft plan, Labor is focusing on “employing innovative
uses of technology.” The plan states that “DOL [Labor] is expanding the
use of the Internet to make standards and interpretations more accessible”
and is testing software to allow the public to comment electronically
through the Internet. Also, the plan states that Labor is developing expert
systems to assist employers in complying with regulatory standards.
In addition, Labor—like many other federal agencies—faces a major
challenge in managing information resources to ensure that information
technology tools and resources are consistent with the agency’s mission.
While Labor’s draft overview cites information technology initiatives, it
does not contain a discussion of Labor’s information technology strategy.
This strategy should include how Labor plans to address the “year 2000
problem,” which involves the need for computer systems to be changed to
accommodate dates beyond the year 1999. In addition, the information
technology strategy should contain information on how Labor plans to
comply with the Clinger-Cohen Act of 1996. The act calls for agencies to
implement a framework of modern technology management based on the
practices followed by leading private- and public-sector organizations that
have successfully used technology to dramatically improve performance
and meet strategic goals.
In commenting on a draft of this correspondence, officials at Labor
Agency Comments generally disagreed with our observations. These disagreements related to
(1) an interpretation of what Labor’s strategic plan overview does or does
not include; (2) an interpretation of whether Labor’s strategic plan
overview adequately addresses what is required by the Results Act and
OMB guidance in preparing a strategic plan; and (3) whether it is
appropriate to include certain information in the overview, even though
such information is not required.
First, Labor officials disagreed with our statement that the overview does
not provide an agencywide strategic overview that links individual
strategic plans. These officials contend that the plan links individual
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strategic plans by presenting its major budget and program themes with
the appropriate agencies and their goals listed under each appropriate
theme. However, we believe that listing the three broad programmatic
categories and excerpting goals from individual plans and inserting them
under the appropriate category does not provide a sufficient linkage.
Second, Labor officials disagreed with our statement that the overview
does not include all the elements identified by the Results Act. In this
connection, Labor officials point out that agencies that use strategic
overviews are authorized by Circular A-11 to present them in either of two
forms; Labor officials say that although Labor used the second form, we
criticized the agency for failing to meet the requirement for the first form.
We believe, however, that Labor’s overview does not satisfy another
portion of Circular A-11 that applies regardless of which form is used: “The
overview links individual strategic plans by giving an overall statement of
the agency’s mission and goals.” We modified our correspondence to make
clearer the basis for our belief that the overview does not include all the
elements required by the Results Act and OMB guidance.
Third, officials at Labor disagreed with the appropriateness of including
certain information in the overview even though it is not required. For
example, they said that it is inappropriate to include a discussion of
management challenges and Labor’s capacity to provide reliable
information for Labor’s management. Our discussion of these two issues is
in direct response to this congressional request.
Finally, Labor officials did agree with some of our statements and agreed
to take corrective action. For example, they agreed to include an
explanation of why some Labor components prepared and submitted
strategic plans and others did not. Similarly, they agreed that the overview
did not include overarching goals and that these goals would be included
in future revisions of the plan.
We have incorporated Labor’s comments and made technical changes to
our correspondence where appropriate.
As arranged with your offices, unless you publicly announce its contents
earlier, we plan no further distribution of this correspondence until 30
days after its issue date. At that time, we will send copies to the Ranking
Minority Members of your Committees and to the Chairmen and Ranking
Minority Members of other Committees that have jurisdiction over
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Department of Labor activities; the Secretary of Labor; and the Director,
Office of Management and Budget. We will also send copies to others on
request.
Please contact me at (202) 512-7002 if you or your staffs have any
questions concerning this letter. Major contributors to this letter were
Harriet C. Ganson, Assistant Director; Thomas N. Medvetz,
Evaluator-in-Charge; Robert Crystal, Assistant General Counsel; Julian P.
Klazkin, Senior Attorney; David B. Alston, Assistant Director; and Thomas
L. Davies, Senior Evaluator.
Carlotta C. Joyner
Director, Education and Employment Issues
Enclosure
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Enclosure
Goals and Statutory Responsibilities of
Labor’s Component Units
Labor’s five major areas of statutory responsibility—employment and
training, employment health and safety, pension and welfare benefits,
employment standards, and labor statistics—are discussed below.
Employment and Training Labor’s major responsibilities in this area are covered by a number of
statutes administered by the Employment and Training Administration
(ETA) and the Veterans’ Employment and Training Service (VETS). Under
titles III and IX of the Social Security Act (42 U.S.C. 501, 1101), Labor
administers the Federal/State Unemployment Compensation Program. The
Wagner-Peyser Act (29 U.S.C. 49) provides authority for grants to states to
establish and maintain a system of local public employment offices.
Workers receive training and retraining under title III of the Job Training
Partnership Act (JTPA) (29 U.S.C. 1651) and other acts. Youth, adults, and
specific groups facing serious barriers to employment receive assistance
through grants to states under JTPA (29 U.S.C. 1501).
The mission of ETA, as expressed in the plan,7 is to provide support to the
public and private sectors in response to changes in the labor market,
ensure that Americans have access to the information and resources
necessary to compete successfully in the job market, and assist businesses
in gaining access to skilled workers and training resources to compete
successfully in a global economy.
ETA’s goals are to (1) “[i]mprove systems to enhance and leverage
investments in service delivery for youth, adults and employers, and to
improve the functioning of labor markets”; (2) “[a]ssure that America’s
youth, particularly at risk youth, acquire the knowledge, skills, and
abilities they need to earn a decent living”; (3) “[p]rovide adult
unemployed, disadvantaged and dislocated workers the services which
will help them find and hold good jobs at decent wages with career
potential”; (4) ensure that “[e]mployers value the public workforce
development system managed by ETA and its partners as being integral to
their competitiveness strategies and are among its primary investors and
customers”; and (5) “[i]n partnership with employees and their
representatives, achieve greater operating efficiency, provide better
services at reduced costs and increase customer satisfaction.”
The first goal is consistent with the purpose of JTPA, as well as with the
purpose of the Wagner-Peyser Act, which authorizes funding to establish
7
The word “plan” as used in this enclosure encompasses both the overview plan and the component
plans.
Page 18 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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Goals and Statutory Responsibilities of
Labor’s Component Units
local public employment offices. The second and third goals reflect the
very purpose of JTPA, which is “to establish programs to prepare youth and
adults facing serious barriers to employment for participation in the labor
force . . .” (29 U.S.C. 1501). The fourth goal is consistent with various
statutes. The fifth goal is not based on a specific statutory requirement.
VETS’ goals are to provide (1) timely and fair resolution of complaints;
(2) employee development opportunities, supportive services, and job
openings; (3) timely and accurate information and direction to customers,
the Congress, and others regarding agency services and accomplishments;
(4) effective referrals of clients whose needs cannot be totally met by VETS
and its grantees; and (5) quality training to service provider staff.
VETS’ first goal is not based on a specific statutory requirement. The second
goal is specifically required under JTPA (29 U.S.C. 1721). Part of the third
goal is clearly envisioned in the statutory requirement that the Secretary
support outreach and public information activities to inform veterans
about services and jobs (29 U.S.C. 1721(a)(3)(c)). Reports of
accomplishments are to be included in an annual report to the Congress
(29 U.S.C.1579(d)). The fourth goal appears to come from the requirement
that Labor provide employment and training information to veterans that
is available under statutes and other provisions of law (29 U.S.C.
1721(a)(3)(C)). This is, in effect, a referral. The fifth goal is not based on a
specific statutory requirement.
Employment Health and The Occupational Safety and Health Act (OSH Act) (29 U.S.C. 651), which is
Safety carried out by the Occupational Safety and Health Administration (OSHA),
and the Federal Mine Safety and Health Act (FMSHA) (30 U.S.C. 801), which
is carried out by the Mine Safety and Health Administration (MSHA),
establish Labor’s major statutory responsibilities in this area.
The plan quotes the following specific mission from the OSH Act: “Assure
so far as possible every working man and woman in the Nation safe and
healthful working conditions.” It then sets out separate strategic goals for
OSHA and MSHA. OSHA’s goals are to (1) “ensure healthful and safe working
conditions for all workers, as evidenced by fewer hazards, reduced
exposures, and fewer injuries, illnesses and fatalities”; (2) “change
workplace culture to increase employer and worker awareness of,
commitment to, and involvement with safety and health”; and (3) “secure
public confidence through excellence in the development and delivery of
its programs and services.” The first goal reflects purposes declared in the
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Goals and Statutory Responsibilities of
Labor’s Component Units
OSH Act. Although the act does not explicitly require Labor to reduce
hazards, exposures, injuries, illnesses, or fatalities, such a goal is
consistent with the overall purpose of the act. The second goal also
reflects purposes declared in the act, and it is driven by the act, but it does
not reflect a specific mandate. The third goal does not appear to be based
on specific provisions of law.
MSHA’s goals are to (1) “reduce the number, rate and severity of accidents
and injuries”; (2) “reduce recurring accidents and injuries”; (3) “reduce
high incidence miner illnesses”; (4) “address safety and health issues
resulting from technological changes in the mining industry”; and
(5) “develop and implement site-specific training programs.” Although the
act does not specifically require any reductions, the first three goals reflect
the overall purpose, including declared purposes, of FMSHA. The fourth goal
is generally consistent with the act in that it relates to miners’ safety and
health, but the act does not mention technological changes. The fifth goal
reflects various requirements in the act related to training.
Pension and Welfare The Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C.
Benefits 1001) establishes Labor’s major responsibilities in this area. The Pension
and Welfare Benefits Administration (PWBA) administers title I of ERISA. The
Pension Benefits Guaranty Corporation (PBGC) administers title IV of ERISA.
Under the plan, the mission of PWBA is to “protect the pension and welfare
benefits of the over 150 million participants and beneficiaries in private
sector employee benefit plans.” The goals of PWBA are to (1) “[e]nsure
workers get the information they need to protect their benefit rights”;
(2) “[a]ssist plan officials and service providers in understanding the
requirements of the relevant statutes in order to meet their legal
responsibilities”; (3) “[d]evelop policies and laws that encourage the
growth of employment-based benefit plans”; and (4) “[d]eter and correct
violations of the relevant statutes.” The first and fourth goals of PWBA are
statutory requirements. The second, although not specifically required by
statute, is consistent with ERISA. The third is stated in the law, which refers
only to “policies.”
The stated mission of PBGC is to protect participants’ benefits and promote
a healthy retirement system by encouraging continuation and maintenance
of private pension plans, protecting benefits, paying benefits in a timely
manner, and keeping costs and premiums low. The goals of PBGC are to
(1) “[p]rotect existing defined benefit plans and their participants, and
Page 20 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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Goals and Statutory Responsibilities of
Labor’s Component Units
encourage new plans”; (2) “[p]rovide high quality services, and accurate
and timely payment of benefits to participants”; (3) “[s]trengthen financial
programs and systems”; and (4) “[i]mprove internal management support
operations.” The first and second goals reflect the purposes of ERISA. The
latter two are not based on specific statutory requirements.
Employment Standards The following establish Labor’s major statutory responsibilities in this
area: the Fair Labor Standards Act (29 U.S.C. 201) and the Contract Work
Hours and Safety Standards Act (29 U.S.C. 327), which are carried out by
the Wage and Hour Division (WHD); acts such as the Davis-Bacon Act (40
U.S.C. 276a) and the Service Contract Act (41 U.S.C. 351), which establish
wage and other labor standards for government contracts also carried out
by WHD; and the Federal Employee’s Compensation Act (FECA) (5 U.S.C.
8101), the Longshore and Harbor Workers’ Compensation Act (33 U.S.C.
901), and the Black Lung Benefits Act (30 U.S.C. 901), which are carried
out by the Office of Workers’ Compensation Programs.
WHD’s goals are as follows: (1) “increase compliance with the laws and
regulations administered and enforced by WHD”; (2) “increase customer
satisfaction with the services provided by WHD”; and (3) “achieve a high
performance workplace which anticipates and is responsive to the needs
of our customers and all our employees.” These goals are not based on
specific statutory requirements.
The goals of the Office of Workers’ Compensation Programs are as
follows: (1) ensure that “[u]nder the FECA, employees return to work
following a work injury at the earliest appropriate moment”; (2) ensure
that “[t]he FECA program, employing agencies, and Federal unions work as
partners to improve the delivery of Federal employees’ compensation
benefits”; (3) “[a]pply tools and technology to expand FECA program
capabilities and enhance program effectiveness”; (4) “[c]ontinue to
organize and support national union/management reengineering teams as
vehicles for broad based participation in decisions”; (5) “[p]romote a more
efficient Black Lung benefit delivery system”; (6) “[p]rovide a secure,
effective, efficient and prompt compensation and service delivery system
for the Longshore Program”; (7) “[e]nhance adjudicatory efficiency and
quality”; (8) ensure that “[i]njured FECA workers are served by a fair, swift,
and people-oriented compensation system”; (9) “create a leaner Black
Lung organization that delivers improved program services and eases
stakeholder burdens by reinventing and reengineering”; (10) “[i]nsure fair,
swift, cost-effective and people-oriented services for Black Lung
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Goals and Statutory Responsibilities of
Labor’s Component Units
customers”; (11) “[r]educe the burden of reporting for Longshore’s
customers”; (12) “[e]nhance public awareness and voluntary compliance
with the provisions of the Longshore Act”; (13) “[m]aintain the fiscal
integrity of the FECA system and deliver cost-effective services”; and
(14) “[e]xercise fiscal responsibility in Black Lung while accomplishing the
mission.”
The first goal is not a specific statutory requirement but is consistent with
FECA, which allows Labor to require an injured employee to submit to a
physical examination as often as necessary (5 U.S.C. 8123). Goals two,
three, four, seven, eight, and thirteen are not linked to specific statutory
requirements but are consistent with the Secretary’s authority to
administer the FECA program (5 U.S.C. 8145). Goals five, nine, ten, and
fourteen deal with the Black Lung Program, and are not based on a
specific statutory requirement. Goals six, seven, eleven, and twelve all
relate to the Longshore and Harbor Workers’ Compensation Program. (As
noted above, goal seven also relates to FECA.) Although none of the goals is
required by law, each is consistent with the Longshore Act.
Labor Statistics The Bureau of Labor Statistics carries out Labor’s responsibilities for
collecting, analyzing, and disseminating labor statistics. The law that
establishes Labor’s major statutory responsibilities in this area appears at
29 U.S.C. 1.
The Bureau’s mission, as stated in the strategic plan, is to provide
comprehensive and timely labor market information to the American
public, the Congress, other federal agencies, state and local governments,
business, labor, and every agency within Labor. The Bureau has
established two strategic goals: (1) “[p]roduce and disseminate timely,
accurate, and relevant information in [the Bureau’s] areas of expertise”
and (2) “[i]mprove accuracy, efficiency, and relevancy of [the Bureau’s]
program outputs through increased application of state-of-the-art
statistical techniques, economic concepts, technology, and management
processes.” The first goal clearly reflects a statutory mandate. The second,
although not specifically required by the applicable law, is consistent with
it.
Page 22 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Page 23 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Related GAO Products
Veterans’ Employment and Training Service: Focusing on Program Results
to Improve Agency Performance (GAO/T-HEHS-97-129, May 7, 1997).
Department of Labor: Challenges in Ensuring Workforce Development and
Worker Protection (GAO/T-HEHS-97-85, Mar. 6, 1997).
Managing for Results: Using GPRA to Assist Congressional and Executive
Branch Decisionmaking (GAO/T-GGD-97-43, Feb. 12, 1997).
Information Technology Investment: Agencies Can Improve Performance,
Reduce Costs, and Minimize Risks (GAO/AIMD-96-64, Sept. 30, 1996).
Education and Labor: Information on the Departments’ Field Offices
(GAO/HEHS-96-178, Sept. 16, 1996).
Information Management Reform: Effective Implementation Is Essential
for Improving Federal Performance (GAO/T-AIMD-96-132, July 17, 1996).
Executive Guide: Effectively Implementing the Government Performance
and Results Act (GAO/GGD-96-118, June 1996).
Davis-Bacon Act: Process Changes Could Raise Confidence That Wage
Rates Are Based on Accurate Data (GAO/HEHS-96-130, May 31, 1996).
Employment Training: Successful Projects Share Common Strategy
(GAO/HEHS-96-108, May 7, 1996).
OSHA: Potential to Reform Regulatory Enforcement (GAO/T-HEHS-96-42,
Oct. 17, 1995).
Job Corps: High Costs and Mixed Results Raise Questions About
Program’s Effectiveness (GAO/HEHS-95-180, June 30, 1995).
Multiple Employment Training Programs: Information Crosswalk on 163
Employment Training Programs (GAO/HEHS-95-85FS, Feb. 14, 1995).
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
(205347) Page 24 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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Address Correction Requested
The Results Act: Observations on Department of Labor's June 1997 Draft Strategic Plan
Published by the Government Accountability Office on 1997-07-11.
Below is a raw (and likely hideous) rendition of the original report. (PDF)