    Assessment of Public Law 106-303: The Role of Personnel
    Flexibilities in Strengthening GAO's Human Capital (27-JUN-03,
    GAO-03-954SP).

    Leading public organizations here and abroud have found that
    strategic human capital management must be the centerpiece of any
    serious change management initiative and effort to transform the
    culture of government agancies. GAO is not immune to these
    challenges facing the federal government. Over the past 3 years,
    however, we have made considerable progress toward addressing a
    number of our major human capital challenges through various
    initiatives. While many of the initiatives were administrative in
    nature, the additional flexibilities that the Congress authorized
    in Public Law 106-303 have helped to ensure that we have the
    right staff, with the right skills, in the right locations to
    better meet the needs of the Congress and the American people.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-03-954SP
        ACCNO:   A07382
      TITLE:     Assessment of Public Law 106-303: The Role of Personnel
    Flexibilities in Strengthening GAO's Human Capital
         DATE:   06/27/2003
      SUBJECT:   Strategic planning
    	     Human resources utilization
    	     Federal law
    	     Labor force

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    GAO-03-954SP

    Report to Congressional Committees

    United States General Accounting Office

    GAO

    June 2003 ASSESSMENT OF PUBLIC LAW 106- 303

    The Role of Personnel Flexibilities in Strengthening GAO's Human Capital

    GAO- 03- 954SP

    Page i GAO- 03- 954SP Assessment of Public Law 106- 303 Letter 1
    Introduction 5

    Implementation of the Act 7 Public Law 106- 303 8 Section 1: Voluntary
    Early Retirement 8 Section 2: Voluntary Separation Incentive Payments 11
    Section 3: Reduction in Force 12 Section 4: Senior- Level Positions 13
    Employees*, Personnel Appeals Board*s, and Senior Executives* Assessments
    14

    Appendix I GAO Order 2831.1 16

    Appendix II GAO Order 2351.1 21

    Appendix III GAO Order 2319.1 51

    Table

    Table 1: Summary Data on Voluntary Early Retirements 9 Figure

    Figure 1: GAO*s Human Capital Profile 10 Contents

    This is a work of the U. S. Government and is not subject to copyright
    protection in the United States. It may be reproduced and distributed in
    its entirety without further permission from GAO. It may contain
    copyrighted graphics, images or other materials. Permission from the
    copyright holder may be necessary should you wish to reproduce copyrighted
    materials separately from GAO*s product.

    Page 1 GAO- 03- 954SP Assessment of Public Law 106- 303

    June 27, 2003 Congressional Committees Leading public organizations here
    and abroad have found that strategic human capital management must be the
    centerpiece of any serious change management initiative and effort to
    transform the culture of government agencies. GAO is not immune to these
    challenges facing the federal government. Over the past 3 years, however,
    we have made considerable progress toward addressing a number of our major
    human capital challenges through various initiatives. While many of the
    initiatives were administrative in nature, the additional flexibilities
    that the Congress authorized in Public Law 106- 303 have helped to ensure
    that we have the right staff, with the right skills, in the right
    locations to better meet the needs of the Congress and the American
    people. As we approach the third anniversary of Public Law 106- 303*s
    passage, we

    are submitting this assessment in accordance with section 6( b) of that
    law. This report contains information about our use of the flexibilities
    authorized by section 1, Voluntary Early Retirement; section 2, Voluntary
    Separation Incentive Payments; and section 3, Modified Reduction in Force
    Procedures; and presents our recommendations on the retention of sections
    1 and 2. We do not have any recommendations for modifying section 3 at
    this time. To the extent possible, we have provided our assessment of the
    effectiveness of the flexibilities in addressing the challenges we faced
    when we requested the legislation. We have also included information about
    our use of the law*s senior- level provision. Lastly, we have included a
    summary of the responses provided by the Personnel Appeals Board, GAO*s
    Employee Advisory Council and GAO*s senior executives with regard to this
    report and our recommendations.

    United States General Accounting Office Washington, DC 20548

    Comptroller General of the United States

    Page 2 GAO- 03- 954SP Assessment of Public Law 106- 303

    If you or members of your staff have any questions or comments about
    matters discussed in this report, please contact me at (202) 512- 5500 or
    walkerd@ gao. gov or Gene L. Dodaro, Chief Operating Officer, at (202)
    5125600 or dodarog@ gao. gov.

    Sincerely yours, David M. Walker Comptroller General of the United States

    Page 3 GAO- 03- 954SP Assessment of Public Law 106- 303

    List of Congressional Committees The Honorable Ted Stevens Chairman The
    Honorable Robert C. Byrd Ranking Minority Member Committee on
    Appropriations United States Senate

    The Honorable Ben Nighthorse Campbell Chairman The Honorable Richard J.
    Durbin Ranking Minority Member Subcommittee on the Legislative Branch
    Committee on Appropriations United States Senate

    The Honorable Susan M. Collins Chairman The Honorable Joseph I. Lieberman
    Ranking Minority Member Committee on Governmental Affairs United States
    Senate

    The Honorable Peter G. Fitzgerald Chairman The Honorable Daniel K. Akaka
    Ranking Minority Member Subcommittee on Financial Management,

    the Budget and International Security Committee on Governmental Affairs
    United States Senate

    The Honorable George V. Voinovich Chairman The Honorable Richard J. Durbin
    Ranking Minority Member Subcommittee on Oversight of

    Government Management, the Federal Workforce and the District of Columbia
    Committee on Governmental Affairs United States Senate

    Page 4 GAO- 03- 954SP Assessment of Public Law 106- 303

    The Honorable C. W. Bill Young Chairman The Honorable David Obey Ranking
    Minority Member Committee on Appropriations House of Representatives

    The Honorable Jack Kingston Chairman The Honorable James P. Moran Ranking
    Minority Member Subcommittee on Legislative Committee on Appropriations
    House of Representatives

    The Honorable Tom Davis Chairman The Honorable Henry A. Waxman Ranking
    Minority Member Committee on Government Reform House of Representatives

    The Honorable Jo Ann Davis Chairwoman The Honorable Danny K. Davis

    Ranking Minority Member Subcommittee on Civil Service

    and Agency Organization Committee on Government Reform House of
    Representatives

    Introduction Page 5 GAO- 03- 954SP Assessment of Public Law 106- 303

    The U. S. General Accounting Office exists to support the Congress in
    meeting its constitutional responsibilities and to help improve the
    performance and assure the accountability of the federal government for
    the benefit of the American people. Given GAO*s role as a key provider of
    information and analyses to the Congress, maintaining the right mix of
    technical knowledge and subject matter expertise as well as general
    analytical skills is vital to achieving the agency*s mission. GAO spends
    about 80 percent of its resources on its people. And yet, like other
    federal agencies, GAO has faced significant human capital challenges*
    challenges that if not effectively addressed, could impair the timeliness
    and quality of its work for its congressional clients and the American
    people they

    represent. A number of these challenges were created by the significant
    reduction in the size of GAO undertaken in the mid- 1990s. Specifically,
    from 1992 through 1997, GAO underwent budgetary cuts totaling 33 percent
    in constant fiscal 1992 dollars. To achieve those budgetary reductions
    while meeting other agency needs, GAO reduced the number of its employees
    39 percent through extensive field office closings and targeted reductions
    in

    headquarters staff. To conform to the reduced budgetary ceiling, GAO then
    instituted a virtual hiring freeze at the entry level, cut training for
    all staff, suspended agencywide incentive programs, and at times used mid-
    level promotions as a retention strategy. Because of the reduction in
    hiring, the average age of the agency*s workforce increased, and the
    retirement eligibility of staff accelerated. GAO*s analyses showed that by
    the end of fiscal 2004, about 34 percent of all GAO employees would be
    eligible to retire. For upper- level staff, the proportion eligible to
    retire was even larger* 48 percent of all band III management- level
    employees and 55 percent of all Senior Executive Service members.

    Thus, as at many federal agencies, GAO*s human capital profile reflected a
    workforce that was smaller, closer to retirement, and at increasingly
    higher- grade levels. In addition to the succession- related concerns
    raised by such a profile, GAO also faced a range of skills gaps. As major
    policy issues have become more complex and as technology has radically
    altered the way the federal government conducts business, the types of
    skills and

    knowledge needed by GAO staff have been evolving, and the need for
    sophisticated technical skills has been increasing. Early in his tenure,
    Comptroller General David Walker recognized that

    GAO*s human capital profile and selected skills gaps presented serious
    challenges to GAO*s future ability to serve the Congress. Comptroller
    General Walker also sought to have GAO become a model federal agency
    Introduction

    Introduction Page 6 GAO- 03- 954SP Assessment of Public Law 106- 303

    and a world- class professional services organization that focuses on
    delivering positive results for the Congress and the country. The agency*s
    ability to operate in an efficient, effective, and economical manner and
    meet the ever- changing and increasingly complex needs of the Congress
    could be seriously compromised if GAO*s human capital challenges were not
    effectively addressed. As a first step in addressing these concerns, GAO
    used its internal

    administrative authority to implement measures to improve the alignment of
    its human capital with the agency*s overall strategic goals and objectives
    as contained in GAO*s Strategic Plan. Subsequent to developing its first
    strategic plan, GAO undertook a number of major human capital

    initiatives, including an agencywide realignment and reorganization, an
    overall human capital self- assessment, the revitalization of its
    recruiting and college relations programs, an agencywide knowledge and
    skills inventory, the development of competency- based performance
    appraisal systems, the establishment of an Employee Advisory Council, the
    enhancement of GAO*s employee benefit programs, a comprehensive employee
    feedback survey, a workforce- planning process, and the establishment of a
    professional development program for entry- level analysts.

    In addition to these initiatives, GAO*s leadership recognized that
    additional steps to reshape the agency*s workforce were necessary and that
    preexisting personnel authorities did not allow the agency to address
    these challenges effectively. Therefore, GAO sought legislation
    establishing narrowly tailored flexibilities that would help to reshape
    the agency*s workforce and recruit and retain staff with needed technical
    skills. Based on a sound business case, Public Law 106- 303* known as the
    GAO Personnel Flexibilities Act* became law in October 2000. The act
    authorized the Comptroller General to implement the following personnel
    flexibilities:

    1. Offer voluntary early retirement to realign the workforce to meet
    budgetary constraints or mission needs; correct skill imbalances; or
    reduce high- grade, managerial, or supervisory positions.

    2. Offer separation incentive payments to realign the workforce to meet
    budgetary constraints or mission needs; correct skill imbalances; or
    reduce high- grade, supervisory, or managerial positions.

    Introduction Page 7 GAO- 03- 954SP Assessment of Public Law 106- 303

    3. Establish modified regulations for the separation of employees during a
    reduction or other adjustment in force. 4. Establish senior- level
    scientific, technical, and professional

    positions and provide those positions with the same pay and benefits
    applicable to the Senior Executive Service while remaining within GAO*s
    current allocation of super- grade positions.

    After the Congress passed the act in 2000 and the President signed it into
    law, GAO began the process of developing regulations to implement the four
    authorities it established. Because stakeholder involvement is a critical
    component of successful human capital management, particularly when
    initiatives are being introduced, GAO established a standard practice

    to ensure employee involvement in significant agency initiatives. GAO*s
    standard practice involves the initial discussion and presentation of
    draft proposals to members of GAO*s Employee Advisory Council* a panel of
    employees representing a variety of employee constituent groups* and also
    to the agency*s senior executives. The Comptroller General was personally
    involved in the vast majority of those exchanges, which afforded an
    opportunity for the direct communication of employees* and managers*
    reactions. After the views of employees and managers were considered,
    further changes were made, if needed, before the draft proposal was issued
    to all employees for their review and consideration. Materials were posted
    on GAO*s intranet home page, and employees were notified by E- mail that
    proposals were available for their review, comments, and suggestions for a
    period of 30 days. The documents were posted in a user- friendly format
    that allowed employees to access the documents and provide comments
    directly on any or all of the provisions. Generally, the regulations were
    accompanied by *Frequently Asked Questions,* which elaborated on and
    explained the details of the provisions. The agency received 60 comments
    on the voluntary early retirement order, 33 on the workforce restructuring
    order, and 12 on the senior- level order. These comments were collected,
    reviewed, and carefully considered by GAO*s Executive Committee prior to
    finalizing the regulations. The approaches that GAO took in implementing
    these four flexibilities as

    well as the results that the agency has achieved are described in the
    following four sections. Implementation of the

    Act

    Public Law 106- 303 Page 8 GAO- 03- 954SP Assessment of Public Law 106-
    303

    At the time the GAO Personnel Flexibilities Act was passed, GAO*s
    workforce was sparse at the entry level and plentiful at the midlevel. The
    agency was concerned about its ability to support the Congress with
    experienced and knowledgeable staff, given the significant percentage of
    the agency*s senior managers and analysts reaching retirement eligibility
    and the relatively small number of entry- level employees who were in
    training to replace more senior staff. The use of the voluntary early
    retirement authority provided in section 1 of the act is one of the tools
    that the agency has used to confront this serious issue* one that is
    facing much of the federal community.

    The act allows the Comptroller General to offer voluntary early retirement
    to up to 10 percent of the workforce when necessary or appropriate to
    realign the workforce to address budgetary or mission constraints; correct
    skill imbalances; or reduce high- grade, supervisory, or managerial
    positions. This flexibility represents a proactive use of early retirement
    to shape the workforce to prevent or ameliorate future problems. GAO Order
    2831. 1, Voluntary Early Retirement, containing the agency*s final
    regulations, was issued in April 2001 and is included in appendix I. Under
    the regulations, each time the Comptroller General approves a voluntary
    early retirement opportunity, he establishes the categories of employees

    who are eligible to apply. These categories are based on the need to
    ensure that those employees who are eligible to request voluntary early
    retirement are those whose separations are consistent with one or more of
    the three reasons for which the Comptroller General may authorize early
    retirements. Pursuant to GAO*s regulations, these categories are defined
    in terms of one or more of the following criteria:

     organizational unit or subunit,  occupational series,  grade or band
    level,  skill or knowledge requirements,  performance appraisal average,
     geographic location, or  other similar factors that the Comptroller
    General deems necessary

    and appropriate. Since it is essential that GAO retain employees with
    critical skills as well as its highest performers, certain categories of
    employees have been ineligible under the criteria. Some examples of
    ineligible categories are employees receiving retention allowances because
    of their unusually high or unique qualifications; economists, because of
    the difficulty that the

    agency has experienced in recruiting them; and staff in the information
    Public Law 106- 303

    Section 1: Voluntary Early Retirement

    Public Law 106- 303 Page 9 GAO- 03- 954SP Assessment of Public Law 106-
    303

    technology area. In addition, employees with performance appraisal
    averages above a specified level have not been eligible under the
    criteria. To give the fullest consideration to all interested employees,
    however, any

    employee may apply for consideration when an early retirement opportunity
    is announced, even if he or she does not meet the stated criteria. The
    Comptroller General may authorize early retirements for these applicants
    on the basis of the facts and circumstances of each case. The Comptroller
    General or his Executive Committee designee( s) considers each applicant
    and makes final decisions on the basis of the institutional needs of GAO.
    Only employees whose release is consistent with the law and GAO*s
    objective in allowing early retirement are authorized to retire early. In
    some cases, this has meant that employees* requests must be denied. GAO
    held its first voluntary early retirement opportunity in July 2001.

    Employees who were approved for early retirement were required to separate
    in the first quarter of fiscal 2002. As required by the act, information
    on the fiscal 2002 early retirements was reported in an appendix to our
    2002 Performance and Accountability Report. Another voluntary early
    retirement opportunity was authorized in fiscal 2003, and employees were
    required to separate by March 14, 2003. Table 1 provides

    the data on the number of employees separated by voluntary early
    retirement as of May 30, 2003.

    Table 1: Summary Data on Voluntary Early Retirements Fiscal year 2002
    Fiscal year 2003 Totals Applications/ Status of applications Number
    Percentage

    of total Number Percentage of total Number Percentage

    of total

    Total applications submitted 78 100.0 39 100.0 117 100.0 Approved
    applications 72 92.3 37 94.8 109 93.1 Disapproved applications 6 7. 7 2 5.
    1 8 6. 8 Approved applications withdrawn by employees 18 23.0 12 30.7 30
    25.6 Applicants separated by voluntary early retirement 54 69.3 25 64.1 79
    67.5 Source: GAO. Of the 79 employees who separated from GAO through
    voluntary early

    retirement, 66, or 83.5 percent, were high- grade, supervisory, or
    managerial employees. High- grade, supervisory, or managerial employees
    are those who are in grade GS- 13 or above, if covered by GAO*s General
    Schedule, in band II or above, if covered by GAO*s banded systems for

    Public Law 106- 303 Page 10 GAO- 03- 954SP Assessment of Public Law 106-
    303

    Analysts and Attorneys or in any position in GAO*s Senior Executive
    Service or Senior Level system.

    GAO*s transformation effort is a work- in- progress and, for that reason,
    the agency supports additional legislation to make the voluntary early
    retirement provision in section 1 of Public Law 106- 303 permanent. While
    the overall number of employees electing early retirement has been
    relatively small, GAO believes that careful use of voluntary early
    retirement has been an important tool in incrementally improving the
    agency*s overall human capital profile. Each separation has freed
    resources for another use, enabling GAO to fill an entry- level position
    or to fill a position that will reduce a skill gap or address other
    succession concerns. Importantly, these separations are accomplished
    voluntarily with the acquiescence of both the employee and the agency.
    Although GAO has made progress in improving its human capital profile,
    there is still work to do. GAO needs to retain its option to use this
    flexibility when necessary to address current and future concerns.

    In making this recommendation, GAO points to its progress in changing the
    overall shape of the organization. As illustrated in figure 1, by the end
    of fiscal year 2002, GAO had almost a 74 percent increase in the
    proportion of staff at the entry level (Band I) compared with fiscal year
    1998. Also, the proportion of the agency*s workforce at the midlevel (Band
    II) decreased by about 16 percent.

    Figure 1: GAO*s Human Capital Profile

    a Attorneys and criminal investigators. b Mission support includes both
    mission and mission support offices. Since the beginning of fiscal 2001, a
    total of 447 employees have retired

    from GAO; 79 (or 17.6 percent) of those retirements are the result of

    Public Law 106- 303 Page 11 GAO- 03- 954SP Assessment of Public Law 106-
    303

    GAO*s early retirement offerings, and as noted above, 83.5 percent of
    those retiring were high- grade, supervisory, or managerial employees. The
    loss of these higher- level staff, along with other employees whose skills
    are no longer essential to GAO has helped the agency address succession

    planning and skill imbalance issues, in addition to increasing the numbers
    of entry- level staff who can be hired. In addition to authorizing
    voluntary early retirement for GAO employees,

    the act permits the Comptroller General to offer voluntary separation
    incentive payments* also known as *buyouts** when necessary or appropriate
    to realign the workforce to meet budgetary constraints or mission needs;
    correct skill imbalances; or reduce high- grade, supervisory, or
    managerial positions. Under the act, up to 5 percent of employees could be
    offered such an incentive, subject to criteria established by the
    Comptroller General.

    The act requires GAO to deposit into the U. S. Treasury an amount
    equivalent to 45 percent of the final annual basic salary of each employee
    to whom a buyout is paid. The deposit is in addition to the actual buyout
    amount, which can be up to $25,000 for an approved individual. Given the
    many demands on agency resources, these costs present a strong financial
    incentive to use the provision sparingly, if at all. GAO anticipates
    little, if any, use of this authority because of the associated costs. For
    this reason, as well as to avoid creating unrealistic employee
    expectations, GAO has not developed and issued agency regulations to
    implement this section of the act.

    GAO also supports legislation making section 2*- authorizing the payment
    of voluntary separation incentives* permanent. GAO notes that the Homeland
    Security Act of 2002 provides most federal agencies with buyout authority.
    Agencies with preexisting legislative authority to offer buyouts retain
    their authority, although they may be covered under the Homeland Security
    Act provision as well. Although GAO has not yet used its buyout authority
    and has no plans to do so in the foreseeable future,

    GAO recommends the retention of this flexibility and the elimination of
    the expiration date of December 31, 2003. The continuation of this
    provision maximizes the options available to the agency to deal with
    future circumstances. Since GAO is also eligible to request buyouts under
    the provisions of the Homeland Security Act, the agency will consider its
    options under this provision as well. Section 2: Voluntary

    Separation Incentive Payments

    Public Law 106- 303 Page 12 GAO- 03- 954SP Assessment of Public Law 106-
    303

    Section 3 of the act allows the Comptroller General to prescribe
    regulations for the separation of GAO employees during a reduction in
    force or other adjustment in force consistent with those issued by the
    Office of Personnel Management under section 3502( a) of title 5. In the
    event that GAO is required to initiate involuntary job reductions,
    employees would compete for retention on the basis of the following
    factors in descending order of priority: tenure, veteran*s preference,
    performance ratings, and length of federal service. At the discretion of
    the Comptroller General, retention may also be based on other objective
    factors, including skills and knowledge in addition to the preceding
    criteria.

    After careful analysis and deliberation, GAO Order 2351.1, Workforce
    Restructuring Procedures for the General Accounting Office, containing
    final agency regulations, was issued in January 2003. Those regulations,
    which are included in appendix II, provide for establishing *zones of
    consideration,* which define the geographical and organizational
    boundaries within which employees compete for retention. All employees
    would be placed in *job groups* that comprise all positions within a zone

    of consideration that are at the same grade or band level and that perform
    the same duties and responsibilities. The highest priority would be placed
    on an employee*s tenure of employment and veteran*s preference. After
    consideration of those two factors, an employee would be ranked on the
    basis of his or her retention score. This score is based on the employee*s
    3- year appraisal average and his or her length of creditable federal
    service; greater weight is placed on performance than on length of
    service.

    GAO has not taken any actions under its workforce restructuring
    regulations and is sensitive to concerns that were expressed prior to the
    passage of Public Law 106- 303 about the potential impact of GAO*s
    modified reduction in force procedures on veterans. GAO is committed to
    protecting the rights of veterans in a manner consistent with title 5 and
    has retained all veterans* protections in GAO orders. Therefore, GAO does
    not foresee any impact on veterans that would differ from those at any
    other agency involved in realigning or reducing their workforce.

    Section 3, authorizing the Comptroller General to develop modified
    regulations for the conduct of a reduction or other adjustment in force,
    is a permanent authority. The act requires GAO to provide any
    recommendations for changes to the section at this time. GAO is unable to

    offer recommendations, however, because the procedures have not yet been
    used. Circumstances leading to the decision to separate employees
    involuntarily are infrequent, and it may be years before the agency has
    any Section 3: Reduction

    in Force

    Public Law 106- 303 Page 13 GAO- 03- 954SP Assessment of Public Law 106-
    303

    significant experience with the use of its procedures. Therefore, GAO has
    no recommendations for changes to section 3 at this time.

    To address a variety of complex issues, GAO needed to increase its skill
    base in such highly competitive hiring areas as economics, information
    technology, actuarial science, and evaluation methodology. Section 4 of
    the act permits GAO to establish senior- level positions to meet critical
    scientific, technical, or professional needs. To recruit and retain
    qualified individuals, the act allows GAO to extend the rights and
    benefits of Senior Executive Service employees to these positions. GAO
    Order 2319. 1,

    containing the agency*s regulations for the employment of senior- level
    staff, was issued in March 2001 and is included in appendix III.

    GAO has used this authority to fill eight senior- level positions,
    including that of a Chief Accountant, Chief Economist, Chief Statistician,
    and Chief Actuary. In addition, three senior- level technologists have
    been appointed as well as a senior- level technologist with expertise in
    cryptography. The expertise of these senior experts in highly specialized
    areas of economics, technology, statistics, and cryptography has
    contributed significantly to GAO*s efforts to support the Congress. The
    accomplishments achieved with the expertise and contributions of the
    agency*s senior- level employees include work on biometric technologies
    for U. S. border security, anthrax irradiation of U. S. mail, and National
    Missile Defense systems. These experts have also contributed to ensuring
    that GAO*s work is based on the most technically accurate methodologies
    for conducting cost- benefit studies and for utilizing appropriate data
    sources. GAO has found this flexibility to be a critical component in its
    efforts to ensure that the agency maintains the skills and knowledge
    necessary to address the many highly complex areas of interest to the
    Congress.

    The act does not require recommendations from GAO on section 4, which
    permits the agency to establish senior- level positions to meet critical
    scientific, technical, or professional needs. Section 4: SeniorLevel

    Positions

    Employees*, Personnel Appeals Board*s, and Senior Executives* Assessments

    Page 14 GAO- 03- 954SP Assessment of Public Law 106- 303

    When the act was under consideration, some GAO employees expressed their
    concerns about the legislation to their Congressional representatives. To
    ensure the active consideration of employees* views, the act requires that
    this report include any assessments or recommendations of the GAO
    Personnel Appeals Board and of any interested groups or associations
    representing officers or employees of GAO. GAO also agreed to include in
    this report information about any impact upon employees* attitudes and

    opinions, as measured by employee feedback survey responses. In response
    to these requirements, GAO*s Human Capital Officer sent a request
    soliciting recommendations for inclusion in this report to the Executive
    Director of the Personnel Appeals Board. The agency also alerted the
    members of GAO*s Employee Advisory Council by sending all members a
    memorandum notifying them of this provision. The topic was included on the
    agenda of the council*s quarterly meeting with the

    Comptroller General in March, and all members of the Employee Advisory
    Council were given a draft copy of the report for their review. GAO*s
    managing directors were also given a draft of this report for review. In
    addition, on May 21, 2003, a meeting of all GAO*s senior executives was
    held. At this meeting the Comptroller General solicited the views of
    senior staff on extending provisions of Public Law 106- 303.

    The Personnel Appeals Board did not submit a specific assessment of the
    act*s implementation. However, in letter to GAO*s Human Capital Officer,
    dated May 15, 2003, Beth Don, Executive Director of the Personnel Appeals
    Board, stated that the board would be *willing to do a more comprehensive
    report in a year or so, at which point we think there will be more
    information available on the implementation and effectiveness of the
    personnel flexibilities granted under the Act.* Importantly, Ms. Don
    indicated that no cases had been filed with the Personnel Appeals Board
    concerning the matters covered by the act. She also stated that the board
    did not believe it was appropriate to comment, among other things, on the
    substantive nature of the regulations promulgated by GAO, or the manner in
    which the regulations were promulgated since the Board may be called upon
    to adjudicate matters relating to the act and its implementation. The
    Employee Advisory Council responded on May 13, 2002, that it did not have
    any comments on the report at this time. Using electronic polling
    technology that allows for confidential responses, GAO*s senior executives
    were asked if the voluntary early retirement and voluntary separation
    incentive authorities should be made permanent. All but one of the 110
    respondents agreed or strongly agreed that GAO should seek legislation to
    make these provisions permanent. One respondent was undecided. Employees*,
    Personnel Appeals Board*s, and Senior Executives* Assessments

    Employees*, Personnel Appeals Board*s, and Senior Executives* Assessments

    Page 15 GAO- 03- 954SP Assessment of Public Law 106- 303

    As part of ongoing agency efforts to monitor progress in people measures,
    GAO conducted employee feedback surveys in 1999 and 2002* before and after
    the act*s passage. This survey asked employees for their agreement or
    disagreement with a variety of statements relating to their work life but
    was not designed to measure the impact of the act*s flexibilities on
    employee satisfaction. The 2000 survey elicited an 89 percent response
    rate, which was even better than the outstanding 87 percent achieved in
    1999. On the basis of a comparison of responses to key questions in 2002
    and 1999, employee satisfaction (as measured by the number of *strongly
    agree*/* agree* responses) was up in 50 of the 52 categories. Negative
    responses (as measured by the number of *strongly disagree*/* disagree*
    responses) also declined in 50 of 52 categories.

    GAO believes that the impact of the legislation on its employees has been
    positive. Clearly, the employees who requested and were approved for early
    retirement benefited from the act. Furthermore, the realignment of
    resources resulting from these retirements has had a positive impact on
    the remaining employees, as well. Ultimately, GAO*s efforts to improve the
    strategic management of GAO*s human capital, of which the legislation is a
    part, benefit all of GAO. Having the right people in the right places
    makes it easier for all GAO employees to be successful in accomplishing
    their part of the agency*s mission. In the final analysis, the agency*s
    efforts to maximize its value allow us to better serve the Congress and
    the American people.

    Appendix I: GAO Order 2831. 1 Page 16 GAO- 03- 954SP Assessment of Public
    Law 106- 303 Appendix I: GAO Order 2831.1

    Appendix II: GAO Order 2351.1 Page 21 GAO- 03- 954SP Assessment of Public
    Law 106- 303 Appendix II: GAO Order 2351.1

    Appendix III: GAO Order 2319. 1 Page 51 GAO- 03- 954SP Assessment of
    Public Law 106- 303 Appendix III: GAO Order 2319.1

    Appendix III: GAO Order 2319. 1 Page 62 GAO- 03- 954SP Assessment of
    Public Law 106- 303 (997250)

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