Suggested Areas for Oversight for the 110th Congress (17-NOV-06,
GAO-07-235R).
GAO is pleased to offer three sets of recommendations for
consideration of the agenda of the 110th Congress. The first
suggests targets for near-term oversight; the second proposes
policies and programs that are in need of fundamental reform and
re-engineering; and the third lists governance issues that should
be addressed to help ensure an economical, efficient, effective,
ethical, and equitable federal government capable of responding
to the various challenges and capitalizing on related
opportunities in the 21st century. Details on each of these
recommendations can be found in the enclosure. GAO has three key
roles to play in making a difference for the Congress and the
American people: oversight, insight, and foresight. The attached
lists reflect those missions and represent an effort to
synthesize GAO's institutional knowledge and special expertise
for the benefit of you and your colleagues in your planning
efforts. In this regard, GAO believes that to be effective,
congressional oversight needs to be constructive. For example,
related hearings and other activities should offer opportunities
for leading federal agencies to share best practices and
facilitate governmentwide transformation. They should also hold
people accountable for delivering positive results in an
economical, efficient, effective, ethical, and equitable manner.
This balanced approach is likely to help accelerate progress
while avoiding a further erosion of the public's trust and
confidence in government.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-235R
ACCNO: A63564
TITLE: Suggested Areas for Oversight for the 110th Congress
DATE: 11/17/2006
SUBJECT: Accountability
Congressional oversight
Productivity in government
Risk assessment
Risk management
Strategic planning
Policies and procedures
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GAO-07-235R
* [1]GAOHQ-1751213-v13-OVERSIGHT_ISSUES_2006.pdf
* [2]Key Topics Needing Congressional Oversight
* [3]PDF6-Ordering Information.pdf
* [4]Order by Mail or Phone
* [5]GAOHQ-1751213-v13-OVERSIGHT_ISSUES_2006.pdf
* [6]Key Topics Needing Congressional Oversight
November 17, 2006
Subject: Suggested Areas for Oversight for the 110th Congress
Congressional Leadership:
As I publicly announced in early September, I am pleased to offer three
sets of recommendations, based on the work of the U.S. Government
Accountability Office (GAO), for your consideration for the agenda of the
110th Congress. The first suggests targets for near-term oversight; the
second proposes policies and programs that are in need of fundamental
reform and re-engineering; and the third lists governance issues that
should be addressed to help ensure an economical, efficient, effective,
ethical, and equitable federal government capable of responding to the
various challenges and capitalizing on related opportunities in the 21st
century. Details on each of these recommendations can be found in the
enclosure.
As you know, GAO has three key roles to play in making a difference for
the Congress and the American people: oversight, insight, and foresight.
The attached lists reflect those missions and represent an effort to
synthesize GAO's institutional knowledge and special expertise for the
benefit of you and your colleagues in your planning efforts. In this
regard, I believe that to be effective, congressional oversight needs to
be constructive. For example, related hearings and other activities should
offer opportunities for leading federal agencies to share best practices
and facilitate governmentwide transformation. They should also hold people
accountable for delivering positive results in an economical, efficient,
effective, ethical, and equitable manner. This balanced approach is likely
to help accelerate progress while avoiding a further erosion of the
public's trust and confidence in government.
We at GAO stand ready to assist the 110th Congress in meeting its
constitutional responsibilities, just as we have assisted the 109th
Congress. For example, during fiscal year 2006, GAO witnesses testified at
240 hearings and provided 17 additional statements for the record. As you
know, we are preparing updates of our Strategic Plan and High-Risk List
for publication early in calendar year 2007. However, I also wanted to
offer these sets of recommendations in order to give you and other leaders
a jump-start on your planning for the next Congress.
There are two general themes that support our recommendations. First, we
cannot afford to continue business as usual in Washington, given our
current deficit and growing long-term fiscal challenges. Second, most of
the federal government's current policies, programs, functions, and
activities are based on conditions that existed decades ago, are not
results-based, and are not well aligned with 21st century realities.
Therefore, there is a need to engage in a fundamental review,
reprioritization, and re-engineering of the base of government. These
themes provided the foundation for our February 2005 report 21st Century
Challenges: Re-examining the Base of the Federal Government
(GAO-05-325SP).
I would be pleased to discuss these recommendations with you and other
members of the leadership team at your earliest convenience. GAO's Office
of Congressional Relations will be contacting your staff to schedule a
meeting. In the meantime, I will be sharing these ideas with your
colleagues on both sides of the aisle in both chambers.
Thank you in advance for your time and consideration.
Sincerely yours,
David M. Walker
Comptroller General
of the United States
Enclosure
List of Addressees
The Honorable Bill Frist
Majority Leader
United States Senate
The Honorable Harry Reid
Minority Leader
United States Senate
The Honorable J. Dennis Hastert
Speaker of the House of Representatives
The Honorable John Boehner
Majority Leader
House of Representatives
The Honorable Nancy Pelosi
Minority Leader
House of Representatives
The Honorable Thad Cochran
Chairman
The Honorable Robert C. Byrd
Ranking Minority Member
Committee on Appropriations
United States Senate
The Honorable Wayne Allard
Chairman
The Honorable Richard J. Durbin
Ranking Minority Member
Subcommittee on Legislative Branch
Committee on Appropriations
United States Senate
The Honorable Susan M. Collins
Chairman
The Honorable Joseph I. Lieberman
Ranking Minority Member
Committee on Homeland Security and Governmental Affairs
United States Senate
The Honorable Jerry Lewis
Chairman
The Honorable David Obey
Ranking Minority Member
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
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Enclosure
Page
Targets for Near-Term Oversight
1. Reduce the Tax Gap 7
2. Address Governmentwide Acquisition and Contracting Issues 8
3. Transform the Business Operations of the Department of 9
Defense, Including Addressing All Related "High-Risk" Areas
4. Ensure the Effective Integration and Transformation of the 10
Department of Homeland Security
5. Enhance Information Sharing, Accelerate Transformation, and 11
Improve Oversight Related to the Nation's Intelligence Agencies
6. Enhance Border Security and Enforcement of Existing 12
Immigration Laws
7. Ensure the Safety and Security of All Modes of Transportation 13
and the Adequacy of Related Funding Mechanisms
8. Strengthen Efforts to Prevent the Proliferation of Nuclear, 14
Chemical, and Biological Weapons and Their Delivery Systems
(Missiles)
9. Ensure a Successful Transformation of the Nuclear Weapons 15
Complex
10. Enhance Computer Security and Deter Identity Theft 16
11. Ensure a Cost Effective and Reliable 2010 Census 17
12. Transform the Postal Service's Business Model 18
13. Ensure Fair Value Collection of Oil Royalties Produced from 19
Federal Lands
14. Ensure the Effectiveness and Coordination of U.S. 20
International Counterterrorism Efforts
15. Review the Effectiveness of Strategies to Ensure Workplace 21
Safety
Policies and Programs That Are in Need of Fundamental Reform and
Re-Engineering
1. Review U.S. and Coalition Efforts to Stabilize and Rebuild 22
Iraq and Afghanistan
2. Ensure a Strategic and Integrated Approach to Prepare for, 23
Respond to, Recover, and Rebuild from Catastrophic Events
3. Reform the Tax Code, Including Reviewing the Performance of 24
Tax Preferences
4. Reform Medicare and Medicaid to Improve Their Integrity and 25
Sustainability
5. Ensure the Adequacy of National Energy Supplies and Related 26
Infrastructure
6. Reform Immigration Policy to Ensure Equity and Economic 27
Competitiveness
7. Assess Overall Military Readiness, Transformation Efforts, and 28
Existing Plans to Assure the Sustainability of the All-Volunteer
Force
8. Assure the Quality and Competitiveness of the U.S. Education 29
System
9. Strengthen Retirement Security Through Reforming Social 30
Security, Increasing Pension Saving and Promoting Financial
Literacy
10. Examine the Costs, Benefits, and Risks of Key Environmental 31
Issues
11. Reform Federal Housing Programs and Related Financing and 32
Regulatory Structures
12. Ensure the Integrity and Equity of Existing Farm Programs 33
13. Review Federal Efforts to Improve the Image of the United 34
States
Governance Issues That Should be Addressed to Help Ensure an
Economical, Efficient, Effective, Ethical, and Equitable Federal
Government Capable of Responding to the Various Challenges and
Capitalizing on Related Opportunities in the 21st Century
1. Review the Need for Various Budget Controls and Legislative 35
Process Revisions in Light of Current Deficits and Our Long-Range
Fiscal Imbalance
2. Pursue the Development of Key National Indicators 36
3. Review the Impact and Effectiveness of Various Management 37
Reforms Enacted in Recent Years (e.g., GPRA, CFO Act, FFMIA,
Clinger-Cohen, etc.)
4. Review the Effectiveness of the Federal Audit and 38
Accountability Community, Including the Oversight, Structure, and
Division of Responsibility
5. Modernize the Federal Government's Organizational and Human 39
Capital Models
6. Re-examine the Presidential (Political) Appointment Process 40
7. Ensure Transparency over Executive Policies and Operations 41
8. Monitor and Assess Corporate Financial Reporting and Related 42
Standards for Public Companies Accountability
Reduce the Tax Gap
The tax gap--the difference between the amounts taxpayers pay voluntarily
and on time and what they should pay under the law--has been a
long-standing problem. Most recently, the Internal Revenue Service (IRS)
estimated a gross tax gap for tax year 2001 of $345 billion and, after
enforcement efforts and late payments, a net tax gap of $290 billion. When
some taxpayers fail to comply, the burden of funding the nation's
commitments falls more heavily on compliant taxpayers. Reducing the tax
gap would help improve the nation's fiscal stability. Based on IRS's
estimate, each 1 percent reduction in the net tax gap would likely yield
$3 billion annually. The gap can be reduced, though not eliminated,
through a multiprong strategy of better service and enforcement of
existing tax laws, plus legislative actions.
Key Topics Needing Congressional Oversight
o Provide IRS with additional tools, such as enhanced withholding
and information returns authorities for sources of income like
capital gains on securities sales.
o Require IRS to obtain data on the extent of, and reasons for,
noncompliance.
o Ensure that IRS leverages technology to improve efficiency and
effectiveness in its taxpayer service and enforcement efforts.
o Examine how IRS seeks to optimize the allocation of its
resources, including how it balances enforcement and service
efforts.
o Assess whether IRS's tax-gap reduction goals are adequate and
whether it has a data-based strategy for achieving its goals.
o Simplify the tax code and broaden the base by, for example,
consolidating existing tax preferences (e.g., retirement).
Selected GAO Products
Capital Gains Tax Gap: Requiring Brokers to Report Securities Cost Basis
Would Improve Compliance if Related Challenges Are Addressed. GAO-06-603.
June 13, 2006.
Tax Gap: Making Significant Progress in Improving Tax Compliance Rests on
Enhancing Current IRS Techniques and Adopting New Legislative Actions.
GAO-06-453T. February 15, 2006.
Tax Compliance: Better Compliance Data and Long-term Goals Would Support a
More Strategic IRS Approach to Reducing the Tax Gap. GAO-05-753. July 18,
2005.
Primary GAO Contacts
Michael Brostek, Director, Strategic Issues, (202) 512-9110,
[email protected].
James White, Director, Strategic Issues, (202) 512-9110, [email protected].
Address Governmentwide Acquisition and Contracting Issues
The acquisition of products and services from contractors consumes about a
quarter of the government's discretionary spending. In fiscal year 2005,
federal agencies spent over $388 billion on such contracts. The work of
the government is increasingly being performed by contractors, including
emergency and large-scale logistics operations such as hurricane response
and recovery and the war in Iraq. Many agencies rely extensively on
contractors to carry out their basic missions. At the same time, GAO's
list of government high-risk areas includes acquisition and contract
management issues that collectively expose hundreds of billions of
taxpayer dollars to potential waste and misuse. The Congress should
continue to monitor agencies' efforts to address existing problems, while
facilitating a re-examination of the rules and regulations that govern the
government-contractor relationship in an increasingly blended workforce.
Key Topics Needing Congressional Oversight
o Require agencies to report on mechanisms in place to ensure that
contractors are playing appropriate roles and that agencies have
retained sufficient workforce capacity to monitor contractor cost,
quality, and performance, particularly in such critical operations
as responding to Hurricane Katrina and rebuilding Iraq.
o Assess agencies' efforts to ensure that acquisitions are
performance- and outcome-based, with appropriate risk-sharing
contracts in place.
o Require agencies with significant acquisition budgets, such as
the Department of Defense (DOD) and the National Aeronautics and
Space Administration (NASA), to better align requirements, budget,
and acquisition processes to reconcile the differences between
wants, needs, affordability, and sustainability, given current and
future demands and resources.
o Monitor the implementation of agency action plans to address the
GAO high-risk areas related to acquisition and contract
management. These include contracting at DOD, the Department of
Energy, and NASA, as well as interagency contracting practices
through the General Services Administration and other means.
Selected GAO Products
Highlights of a GAO Forum: Federal Acquisition Challenges and
Opportunities in the 21st Century. GAO-07-45SP. October 6, 2006.
DOD Acquisitions: Contracting for Better Outcomes. GAO-06-800T. September
7, 2006.
High-Risk Series: An Update. GAO-05-207. January 2005.
Primary GAO Contact
Katherine Schinasi, Managing Director, Acquisition and Sourcing
Management, (202) 512-4841, [email protected].
Transform the Business Operations of the Department of Defense, Including
Addressing All Related "High-Risk" Areas
Of the 26 areas on GAO's 2005 high-risk list of federal programs or
activities that are at risk for waste, fraud, abuse, or mismanagement, 8
are Department of Defense (DOD) programs or operations and 6 are
government high-risk areas for which DOD shares some responsibility. These
high-risk areas relate to DOD's major business operations intended to
support the warfighter, including DOD's overall management approach to
business transformation, business systems modernization, financial
management, the personnel security clearance process, supply chain
management, support infrastructure management, weapon systems acquisition,
and contract management. Billions of dollars have been wasted annually
because of the lack of adequate transparency and appropriate
accountability across DOD's business areas. We have consistently reported
and testified on the need for DOD to develop an integrated, enterprisewide
business transformation plan and establish a chief management official
position to lead the department's overall business transformation efforts.
To its credit, DOD has established management structures such as the
Defense Business Systems Management Committee (DBSMC)--intended by DOD to
be its primary transformation leadership and oversight mechanism--and the
Business Transformation Agency to support the DBSMC. DOD has also
established and updated its Business Enterprise Architecture and
Enterprise Transition Plan, as well as a Financial Improvement and Audit
Readiness Plan. To date, however, DOD's primary focus has been on business
systems modernization.
Key Topics Needing Congressional Oversight
o Require DOD to establish management accountability at an
appropriate level of the organization with significant authority,
experience, and tenure to provide sustained leadership needed to
achieve successful and sustainable transformation.
o Require DOD to develop and implement a viable strategic plan
with goals, objectives, key milestones, and measures to monitor
and report on progress in transforming its key business
operations.
o Evaluate DOD's progress in complying with legislative
requirements to improve its business systems modernization and
financial management modernization efforts.
o Require DOD to develop and implement plans to address its
high-risk areas.
Selected GAO Products
Defense Business Transformation: A Comprehensive Plan, Sustained
Leadership, and Integrated Efforts at All Levels Are Needed to Maintain
Progress. GAO-07-229T. November 16, 2006.
Business Systems Modernization: DOD Continues to Improve Institutional
Approach, but Further Steps Needed. GAO-06-658. May 15, 2006.
High-Risk Series: An Update. GAO-05-207. January 2005.
Primary GAO Contacts
Henry L. Hinton, Jr., Managing Director, Defense Capabilities and
Management, (202) 512-4300, [email protected].
Randy Hite, Director, Information Technology, (202) 512-6256,
[email protected].
Ensure the Effective Integration and Transformation
of the Department of Homeland Security
After its creation in 2003, the Department of Homeland Security (DHS) had
to transform 22 agencies--several with major management challenges--into
one department. This is a high-risk endeavor because failure to
effectively address its management challenges and program risks could have
serious consequences for our national security. The areas GAO identified
as at risk include planning and priority setting; accountability and
oversight; and a broad array of management, programmatic, and partnering
challenges.
Key Topics Needing Congressional Oversight
o Evaluate the progress of DHS and its components in strategic
planning, particularly whether strategic plans conform to best
practices and link performance goals to resource requirements.
o Assess the progress of DHS in developing and integrating key
management functions--financial, acquisition, information, and
human capital--across its components.
o Review the progress of DHS and its components in performing risk
assessments--particularly in the mission areas like border and
transportation security and critical infrastructure protection--as
part of a risk management approach to the allocation of resources.
o Examine the progress of DHS and its components in improving
partnering with other federal, state and local governments, and
private entities in the fulfillment of its homeland security and
non-homeland security missions.
Selected GAO Products
Risk Management: Further Refinements Needed to Assess Risks and Prioritize
Protective Measures at Ports and Other Critical Infrastructure.
[13]GAO-06-91 . December 15, 2005.
Results-Oriented Government: Improvements to DHS's Planning Process Would
Enhance Usefulness and Accountability. [14]GAO-05-300 . March 31, 2005.
Department of Homeland Security: A Comprehensive and Sustained Approach
Needed to Achieve Management Integration. GAO-05-139. March 16, 2005.
Primary GAO Contacts
Cathleen Berrick, Director, Homeland Security and Justice, (202) 512-3404,
[email protected].
Bernice Steinhardt, Director, Strategic Issues, (202) 512-6543,
[email protected].
Enhance Information Sharing, Accelerate Transformation, and Improve Oversight
Related to the Nation's Intelligence Agencies
Since September 11, 2001, the nation has made some progress in fixing a
major vulnerability--intelligence and law enforcement agencies' failure to
"connect the dots" and share information on the terrorists. Key
legislation, presidential directives, and several commissions have focused
on enhancing the management of the intelligence community's budgets and
activities and information sharing within the community and beyond. But
progress has been slow in some key areas, including implementing the
policies needed to govern information sharing. The December 2004
Intelligence Reform and Terrorism Prevention Act and several presidential
directives established the Director of National Intelligence (DNI), which
absorbed the functions of the previous Director of Central Intelligence.
Following the March 2005 report of the President's Commission on Weapons
of Mass Destruction Intelligence Capabilities, the DNI further created
numerous offices intended to enhance and transform the intelligence
community's functions and operations through a variety of initiatives
throughout the intelligence community. These include improved central
oversight of the National and Military Intelligence Program budgets, use
of open sources, intelligence fusion centers, human capital policies and
practices, and intelligence collection, analysis, and reporting. Moreover,
the March 2005 report also recommended improvements in internal and
external oversight to make sure reform occurs. Without continued
congressional oversight of these issues, the progress and results of the
many requirements and initiatives will remain unclear.
Key Topics Needing Congressional Oversight
o Assess the progress in transforming the intelligence community
across the wide range of current initiatives.
o Review how well the National Counter Terrorism Center and the
Counter Proliferation Center have improved the quality of
intelligence and how it is shared within the intelligence
community and beyond.
o Evaluate how well the Program Manager for the Information
Sharing Environment responsible for implementing the policy and
technological road map for sharing has achieved this objective.
Selected GAO Products
Information Sharing: The Federal Government Needs to Establish Policies
and Processes for Sharing Terrorism-Related and Sensitive but Unclassified
Information. GAO-06-385. March 17, 2006.
High-Risk Series: An Update. GAO-05-207. January 2005
Primary GAO Contacts
Eileen Larence, Director, Homeland Security and Justice, (202) 512-6510,
[email protected].
Davi M. D'Agostino, Director, Defense Capabilities and Management, (202)
512-5431, [email protected].
Enhance Border Security and
Enforcement of Existing Immigration Laws
The terrorist attacks of September 11, 2001, showed how weak border
security measures and ineffective enforcement of our nation's immigration
laws could be exploited to a tragic end. Although enhancing passport and
visa security procedures, securing the borders and enforcing immigration
laws have received increased funding and attention, millions of aliens
live and work in the United States after entering the country illegally or
overstaying the terms of a visa. This may present a significant national
security challenge and could adversely affect citizens who compete with
illegal aliens for jobs and bear immigration-related costs. The
Departments of State and Homeland Security (DHS) have taken some steps to
address these challenges, such as deploying additional personnel and
technology overseas and at the borders, and using computer verification
systems to detect fraudulent documents and reduce employment of
unauthorized foreign workers. However, successful implementation of these
steps has often been hampered by inadequate planning and guidance,
misaligned priorities and resources, and outdated information technology
systems. Additional congressional oversight can help ensure that travel
document, border security, and immigration enforcement initiatives are
yielding improved national and economic security for our nation's
citizens.
Key Topics Needing Congressional Oversight
o Assess DHS progress in implementing the multibillion-dollar
Secure Border Initiative program to secure the borders.
o Assess existing enforcement of laws that prohibit the employment
of illegal aliens.
o Require DHS to better balance its resources devoted to border
security and enforcing immigration laws in the interior.
o Assess DHS efforts to provide high-quality and timely services
to legal immigrants.
o Assess DHS and State Department efforts to improve passport and
visa security procedures and in mitigating risks in the visa
waiver program.
Selected GAO Products
Border Security: US-VISIT Program faces Strategic, Operational, and
Technological Challenges at Land Ports of Entry. GAO-07-56. November 13,
2006.
Border Security: Stronger Actions Needed to Assess and Mitigate Risks of
the Visa Waiver Program. GAO-06-854. June 28, 2006.
Immigration Benefits: Improvements Needed to Address Backlogs and Ensure
Quality of Adjudications. GAO-06-20. November 21, 2005.
Immigration Enforcement: Weaknesses Hinder Employment Verification and
Worksite Enforcement Efforts. GAO-05-813. August 31, 2005.
Overstay Tracking: A Key Component of Homeland Security and a Layered
Defense. GAO-04-82. May 21, 2004.
Primary GAO Contacts
Richard M. Stana, Director, Homeland Security and Justice, (202) 512-8816,
[email protected].
Jess T. Ford, Director, International Affairs and Trade, (202) 512-4268,
[email protected].
Ensure the Safety and Security of All Modes of Transportation and
the Adequacy of Related Funding Mechanisms
The nation's economic vitality and the quality of life of its citizens
depend greatly on the safety, security, and efficiency of its
transportation infrastructure, and major challenges exist in all three of
these areas. Safety continues to be a concern, with an average of over
40,000 traffic deaths, 6 commercial airline, and over 350 general aviation
fatal crashes annually, and over 2,200 major pipeline accidents over a
recent 10-year period. Regarding security, despite significant progress in
securing commercial aviation, the Transportation Security Administration
must continue to adapt to changing threats, while coordinating efforts
with international partners. Nonaviation transportation modes also remain
vulnerable given their easy accessibility and many potential targets. On
efficiency, between 2000 and 2010, travel on roads is expected to increase
by 25 percent and freight traffic by 43 percent. Further, forecasted
continuing growth in air traffic is straining both airport and air traffic
control infrastructure. While addressing these challenges will likely
require substantial resources, federal transportation trust fund revenues
are eroding and long-term trust fund viability is questionable.
Key Topics Needing Congressional Oversight
o Alternative mechanisms to increase revenues for infrastructure
improvements, including user fees and alternatives to stimulate
private investment.
o The extent to which funding allocation methods ensure the
equity, efficiency, accountability, and performance of
transportation investments.
o Effectiveness of federal grants, incentives, and regulation to
improve transportation safety.
o Efforts of the federal government to find new technologies and
solutions for increasing the safety and security of the
transportation system.
o The extent to which homeland security resources are being
allocated across the entire transportation network based on a
common risk-managed framework.
o Federal and private-sector efforts to ensure the security of
surface transportation modes, and federal efforts in developing
and enforcing related security requirements.
Selected GAO Products
Aviation Safety: FAA's Safety Efforts Generally Strong but Face
Challenges. GAO-06-1091T. September 20, 2006.
Highway Trust Fund: Overview of Highway Trust Fund Estimates. GAO-06-572T.
April 4, 2006.
Aviation Security: Significant Management Challenges May Adversely Affect
Implementation of the Transportation Security Administration's Secure
Flight Program. GAO-06-374T. February 9, 2006.
Passenger Rail Security: Enhanced Federal Leadership Needed to Prioritize
and Guide Security Efforts. GAO-05-851. September 2005.
Primary GAO Contacts
Patricia Dalton, Managing Director, Physical Infrastructure Issues, (202)
512-2834, [email protected]. Norm Rabkin, Managing Director, Homeland
Security and Justice, (202) 512-8777, [email protected].
Strengthen Efforts to Prevent the Proliferation of Nuclear, Chemical,
and Biological Weapons and Their Delivery Systems (Missiles)
On February 11, 2004, the President stated that "the greatest threat
before humanity today is the possibility of secret and sudden attack with
chemical or biological or radiological or nuclear weapons." He also stated
that these weapons are becoming easier to acquire, build, hide, and
transport. U.S. policy is to stop the spread of weapons of mass
destruction (WMD) and their delivery systems, such as missiles, and the
executive branch has initiated or expanded several activities to address
this threat. In recognition of these threats, the Congress provided the
Departments of Defense (DOD), Energy (DOE), and State more than $8 billion
since 1992 to prevent the proliferation of weapons of mass destruction
material and expertise. The U.S. has also played a leading role
strengthening multilateral efforts to control trade in WMD materials.
Additional congressional oversight can help assess the effectiveness of
these activities and how U.S. resources might be better planned and
managed to achieve nonproliferation goals. A failure to effectively
implement nonproliferation programs could result in wasted resources or,
at worst, a devastating WMD attack on the United States or its allies.
Key Topics Needing Congressional Oversight
o Ensure that DOD, DOE, and State integrate their various
nonproliferation programs to ensure they are efficiently
addressing the most significant needs.
o Evaluate U.S. efforts to support and enhance nonproliferation
activities of individual nations and multilateral regimes.
o Require DOD and State to develop management controls on
Proliferation Security Initiative activities and a strategy to
work with foreign governments on issues beyond the control of the
United States.
Selected GAO Products
Nonproliferation: Better Controls Needed to Plan and Manage Proliferation
Security Initiative Activities. GAO-06-937C. September 28, 2006.
Nuclear Nonproliferation: IAEA Has Strengthened Its Safeguards and Nuclear
Security Programs, but Weaknesses Need to Be Addressed. GAO-06-93. October
7, 2005.
Weapons of Mass Destruction: Nonproliferation Programs Need Better
Integration. GAO-05-157. January 28, 2005.
Primary GAO Contacts
Gene Aloise, Director, Natural Resoures and Environment, (202) 512-6870,
[email protected].
Joseph A. Christoff, Director, International Affairs and Trade, (202)
512-8979, [email protected].
Ensure a Successful Transformation of the Nuclear Weapons Complex
Over the past several years, there has been a serious reevaluation of how
the United States maintains its nuclear deterrent. The National Nuclear
Security Administration (NNSA), a separately organized agency within the
Department of Energy (DOE), is responsible for overseeing the weapons
complex, which comprises three nuclear weapons design laboratories, four
production plants, and the Nevada Test Site, at an annual cost of over $6
billion. Recently, NNSA offered a proposal to the Congress for
transforming the weapons complex over the next 25 years. NNSA's proposal
calls for building a consolidated plutonium processing center, removing
weapons-grade nuclear material from the laboratories, and modernizing the
remaining production facilities at their existing locations. NNSA's
preliminary analysis estimates its proposal will cost over $150 billion.
The proposal largely depends on the successful design of a Reliable
Replacement Warhead (RRW) to replace some of the existing weapons in the
stockpile. Given the importance of the nation's nuclear deterrent, the
large amount of funding required, and DOE's history of poor project
management, it is vital that the Congress closely oversee NNSA's
implementation of its proposal.
Key Topics Needing Congressional Oversight
o Require the Department of Defense to establish clear, long-term
requirements for the nuclear stockpile by determining the types
and quantities of weapons needed for our nation's nuclear
deterrent.
o Require NNSA to develop accurate cost estimates of its proposal,
as well as alternative proposals, for transforming the weapons
complex.
o Evaluate NNSA's proposed need, cost, and schedule for the RRW
and compare with plans to refurbish the existing weapons in the
stockpile.
o Ensure that NNSA develops a clear plan containing measurable
milestones for its proposed transformation of the weapons complex.
Selected GAO Products
Nuclear Weapons: Views on Proposals to Transform the Nuclear Weapons
Complex. GAO-06-606T. April 26, 2006.
Nuclear Weapons: NNSA Needs to Refine and More Effectively Manage Its New
Approach for Assessing and Certifying Nuclear Weapons. GAO-06-261.
February 3, 2006.
Nuclear Security: DOE Needs to Resolve Significant Issues Before It Fully
Meets the New Design Basis Threat. GAO-04-623. April 27, 2004.
Primary GAO Contact
Gene Aloise, Director, Natural Resources and Environment, (202) 512-6870,
[email protected].
Enhance Computer Security and Deter Identity Theft
Over the last several years, identity theft and the need to protect
personal information has received heightened national attention. Recent
incidents of data theft and loss at federal agencies expose Americans to
increased risk of identity theft and raise concern about how well the
federal government is securing its computer systems; protecting sensitive
information from unauthorized use, disclosure, and modification; and
notifying the public when data breaches occur. Moreover, the aggregation
of personal information and Social Security Numbers (SSN), in large
corporate databases and the display of SSNs in public records have
provided opportunities for identity thieves. Thus, SSNs are a valuable
commodity for persons seeking to assume another individual's identity or
to commit financial crimes. Fraudulent and stolen SSNs are also frequently
used by noncitizens to work illegally in the United States. Although the
Congress has passed a number of laws to address this issue, the continued
reliance on SSNs by private and public-sector entities underscores the
need for increased vigilance.
Key Topics Needing Congressional Oversight
o Establish accountability measures for implementing effective
information security programs at federal agencies, including
effective policies and practices for detecting, responding, and
reporting information on security incidents.
o Provide the Social Security Administration (SSA) with additional
tools to further strengthen its processes for issuing SSNs and
replacement cards and continue to assess options for making Social
Security cards and other identity documents less vulnerable to
alteration and counterfeiting.
o Enhance data sharing between SSA, other federal agencies, and
the states to better verify information submitted by individuals
seeking public benefits or services and require that SSA, the
Department of Homeland Security, and the Internal Revenue Service
work collaboratively on to deter SSN abuse and violations of
immigration laws.
o Reduce the presence and display of SSNs in state and local
public records.
o Re-examine current gaps in federal requirements for safeguarding
SSNs and other personal information used by private sector
companies.
Selected GAO Products
Information Security: The Centers for Medicare & Medicaid Services Needs
to Improve Controls Over Key Communication Network. GAO-06-750. August 30,
2006.
Personal Information: Key Federal Privacy Laws Do Not Require Information
Resellers to Safeguard All Sensitive Data. GAO-06-674. June 26, 2006.
Information Security: Leadership Needed to Address Weaknesses and Privacy
Issues at Veterans Affairs. GAO-06-897T. June 20, 2006.
Social Security Administration: Improved Agency Coordination Needed for
Social Security Card Enhancement Efforts. GAO-06-303. March 29, 2006.
Primary GAO Contacts
Gregory Wilshusen, Director, Information Security Issues, (202) 512-6244,
[email protected].
Daniel Bertoni, Acting Director, Education, Workforce, and Income Security
Issues, (202) 512-5988, [email protected].
Ensure a Cost-Effective and Reliable 2010 Census
The 2010 Census is an estimated $11.3 billion, constitutionally mandated
enterprise with many interdependent activities, immutable deadlines, and
high stakes. The Census produces data used to reapportion the seats of the
U.S. House of Representatives and to allocate about $200 billion yearly in
federal financial assistance. To contain costs, the Census Bureau (Bureau)
has re-engineered the 2010 Census toward a more automated approach rather
than relying as extensively on paper-based processes as in the past, and
has deployed contractors to assist with these reforms. Given the size and
complexity of the Census, new processes being introduced, and interrelated
nature of those processes, sound risk management can promote a successful
Census. GAO's work on Census matters over several decades has also shown
that a shortcoming in one operation could cause other operations to spiral
downward. For example, reduced reliability in hand-held mobile computing
devices could imperil the success of operations to update key address
files and follow up on nonresponses to survey forms.
Key Topics Needing Congressional Oversight
o Ensure that the Bureau maximizes coverage and accuracy while
managing costs.
o Oversee the overall cost of the Census, including the emergence
of unforeseen operational and managerial challenges; and the
Bureau's ability to identify, diagnose, and devise cost-effective
solutions to those challenges as well as to integrate refinements
and fixes for evaluation during the 2008 Dress Rehearsal.
o Monitor the Bureau's management of risks associated with key
programs.
o Assess the reliability and utility of the Bureau's hand-held
mobile computing devices to avoid the possibility of having to
revert to the costly paper-based Census used in 2000 and prior
years.
o Examine the Bureau's ability to effectively monitor contracts
(about $1.9 billion of the $11.3 billion life-cycle costs will be
spent on seven major contracts).
Selected GAO Products
2010 Census: Redesigned Approach Holds Promise, but Census Bureau Needs to
Annually Develop and Provide a Comprehensive Project Plan to Monitor
Costs. [15]GAO-06-1009T . July 27, 2006.
2010 Census: Costs and Risks Must Be Closely Monitored and Evaluated with
Mitigation Plans in Place. [16]GAO-06-822T . June 6, 2006.
2010 Census: Planning and Testing Activities Are Making Progress.
[17]GAO-06-465T . March 1, 2006.
Primary GAO Contact
Mathew J. Scire, Acting Director, Strategic Issues, (202) 512-6794,
[email protected].
Transform the Postal Service's Business Model
The U.S. Postal Service is under increasing financial pressure as the
Internet, electronic bill payment, and growing competition from private
delivery companies change the nation's communication and delivery sectors
and negatively impact mail volumes. These changes raise questions about
the role of the federal government in providing postal services and
whether the Postal Service can remain a self-financing government provider
of affordable universal postal services in the 21^st century. The Postal
Service's business model, established when it was reorganized in 1970,
relies upon growth in mail volume to cover the costs of its
ever-increasing nationwide delivery network to all homes and businesses.
This business model is increasingly outmoded as First-Class Mail volume
declines and the changing mail mix provides less revenue contribution,
which has put the Postal Service's financial viability at risk. The
Service is working to cut costs, improve productivity, reduce its
workforce, and make other changes under its existing authority. However,
comprehensive postal reform legislation is needed to provide the necessary
incentives and flexibilities needed for the Service to transition to a
modernized business model so that it can continue providing high-quality,
universal postal services.
Key Topics Needing Congressional Oversight
o Ensure that the Postal Service maintains services consistent
with its standards as it implements changes to reduce costs
related to providing postal services.
o Assess the Postal Service's changes to its mail processing and
transportation networks to ensure that they are reasonable,
transparent, and coordinated with affected stakeholders, and that
they achieve intended cost savings and efficiencies.
o Adopt flexible, performance-oriented, and market-based
compensation systems for postal employees.
Selected GAO Products
U.S. Postal Service: Delivery Performance Standards, Measurement, and
Reporting Need Improvement. GAO-06-733. July 27, 2006.
U.S. Postal Service: Despite Recent Progress, Postal Reform Legislation Is
Still Needed. GAO-05-453T. April 14, 2005.
U.S. Postal Service: The Service's Strategy for Realigning Its Mail
Processing Infrastructure Lacks Clarity, Criteria, and Accountability.
GAO-05-261. April 8, 2005.
Primary GAO Contact
Katherine Siggerud, Director, Physical Infrastructure Issues, (202)
512-2834, [email protected].
Ensure Fair Value Collection of Oil Royalties Produced from Federal Lands
The United States consumes over 21 million barrels of oil per day, and
about 40 percent of this is produced in the United States. About 35
percent of the oil and 26 percent of the natural gas produced in the
United States come from federal and Native American lands. Companies that
lease these lands pay royalties to the Department of the Interior's
Minerals and Management Service (MMS). MMS collected about $8 billion in
royalty payments in fiscal year 2005--an 8 percent increase over 2001, far
below the 90 percent increase in oil and 30 percent in gas prices between
2001 and 2005, raising questions about whether these royalties reflect the
full value these companies should pay.
A number of royalty relief collection provisions have been designed to
assist the oil and gas industry in exploring and producing energy. These
have included reducing the amount of royalties paid to the U.S. government
and states, particularly in the drilling of deep waters in the Gulf of
Mexico. According to MMS preliminary estimates, these royalty relief
provisions could result in up to $60 billion in foregone revenues on oil
and gas production over the next 25 years. Additional oversight would help
ensure that the calculation and collection of royalties yield the maximum
possible revenue based on fair market value.
Key Topics Needing Congressional Oversight
o Assess the reliability of data on oil production volume, price,
and royalty rates.
o Determine the financial impacts of royalty relief on Federal
lands and waters.
o Determine the extent to which royalty provisions reflect
changing market conditions.
Selected GAO Products
Royalty Revenues: Total Revenues Have Not Increased at the Same Pace as
Rising Oil and Natural Gas Prices due to Decreasing Production Sold.
GAO-06-786R. June 21, 2006.
Motor Fuels: Understanding the Factors That Influence the Retail Price of
Gasoline. GAO-05-525SP. May 2, 2005.
Energy Markets: Mergers and Other Factors that Affect the U.S. Refining
Industry. GAO-04-982T. July 15, 2004.
Primary GAO Contact
Robert A. Robinson, Managing Director, Natural Resources and Environment,
(202) 512-3841, [email protected].
Ensure the Effectiveness and Coordination of
U.S. International Counterterrorism Efforts
After the events of September 11, 2001, combating terrorism became a
central focus of the U.S. national security policy. The 9/11 Commission
made numerous recommendations and the Congress passed several acts
(including the Intelligence Reform and Terrorism Prevention Act of 2004)
focused on U.S. efforts to combat terrorism overseas. In response, the
U.S. took several steps to respond to potential terrorist-related threats
to the homeland and U.S. interests abroad such as increasing and
realigning resources devoted to this effort and taking steps to revise
diplomatic, military, intelligence, and law enforcement priorities at home
and abroad. As such, the Congress has an important role to play in
overseeing the implementation of these recommendations and in assessing
the effectiveness and coordination of U.S. diplomatic, military,
intelligence, and law enforcement efforts to combat terrorism abroad.
Key Topics Needing Congressional Oversight
o Evaluate the management and effectiveness of U.S. programs
designed to train and equip foreign countries to prevent, combat,
and respond to terrorism.
o Assess U.S. efforts to protect overseas personnel, facilities,
and interest from terrorist attack.
o Assess the effectiveness and coordination of U.S. international
programs focused on combating and preventing the growth of
terrorism.
Selected GAO Products
Foreign Assistance: Recent Improvements Made, but USAID Should Do More to
Help Ensure Aid Is Not Provided for Terrorist Activities in West Bank and
Gaza GAO-06-1062R. September 29, 2006.
Terrorist Financing: Agencies Can Improve Efforts to Deliver
Counterterrorism-Financing Training and Technical Assistance Abroad.
GAO-06-632T. April 06, 2006.
Overseas Security: State Department Has Not Fully Implemented Key Measures
to Protect U.S. Officials from Terrorist Attacks Outside of Embassies.
GAO-05-688T. May 10, 2005.
Primary GAO Contacts
Jacquelyn Williams-Bridgers, Managing Director, International Affairs and
Trade,
(202) 512-3101, [email protected].
Charles Michael Johnson, Acting Director, International Affairs and Trade,
(202) 512-7331, [email protected].
Review the Effectiveness of Strategies to Ensure Workplace Safety
Regulations and activities designed to provide protections for workers may
need to be revised to reflect dramatic changes in the demographics of the
national workforce and changes in the nature of work itself. For example,
traditional work arrangements are giving way to alternatives such as
temporary employment, blended workforces, and teleworking. Industries such
as meatpacking have had large increases in the number of immigrant
workers, and membership in organized labor has declined. The federal
government has greater dependencies on a total multi-sector workforce. In
addition to these changing conditions, some industries, such as
underground coal mining, face inherent long-term challenges that threaten
the safety and health of workers. Now more than ever, it is important to
find the right balance between ensuring the safety and health of workers
and employers' needs to increase productivity in an increasingly
competitive global environment.
Key Topics Needing Congressional Oversight
o Determine how well the Department of Labor's Occupational Safety
and Health Administration's (OSHA's) enforcement program has
adapted to changes in the workforce, including demographic
changes, work arrangements, and the use of new technology.
o Assess the effectiveness of OSHA's recent efforts to provide
assistance to employers in improving the safety and health of
workers through compliance assistance programs, such as the
Voluntary Protection Program and alliances with employers.
o Examine the impact of recent efforts by the Department of
Labor's Mine Safety and Health Administration (MSHA) to protect
the safety and health of mine workers, particularly those who work
in underground coal mines.
o Assess the preparedness of federal agencies to protect their
employees in emergencies, such as a pandemic, while relying on a
multi-sector workforce to perform its essential operations and
return to normal operations.
Selected GAO Products
Workplace Safety and Health: Safety in the Meat and Poultry Industry,
while Improving, Could Be Further Strengthened. GAO-05-96. January 12,
2005.
Workplace Safety and Health: OSHA's Voluntary Compliance Strategies Show
Promising Results, but Should Be Fully Evaluated before They Are Expanded.
GAO-04-378. March 19, 2004.
Mine Safety: MSHA Devotes Substantial Effort to Ensuring the Safety and
Health of Coal Mines, but Its Programs Could Be Strengthened. GAO-03-945.
September 5, 2003.
Primary GAO Contacts
Cynthia Fagnoni, Managing Director, Education Workforce and Income
Security Issues, (202) 512-7202, [email protected].
Daniel Bertoni, Director, Education Workforce and Income Security Issues,
(202) 512-5988, [email protected].
Review U.S. and Coalition Efforts to Stabilize and Rebuild
Iraq and Afghanistan
The Congress has provided the Department of Defense and other federal
agencies more than $320 billion to stabilize and rebuild Iraq and
Afghanistan between fiscal years 2001 and 2006. Guiding U.S. efforts in
Iraq are the National Strategy for Victory in Iraq, along with the Joint
Campaign Plan issued by the U.S.-led Multinational Force-Iraq and the U.S.
embassy in Baghdad. The overall strategy calls for integrated political,
economic, and security measures to stabilize and rebuild the country.
After 3 years of effort, the security situation in Iraq continues to
deteriorate, Iraqi security forces have limited capabilities and divided
loyalties, the central government has limited ability to govern the
country, and reconstruction lags. In Afghanistan, the NATO-led
International Security Assistance Force has recently expanded its mission
and assumed some security responsibilities from U.S. military forces in
the country. This transition is occurring as security conditions
deteriorate and undermine efforts to rebuild Afghanistan, the Taliban is
becoming resurgent in some areas, and drug trafficking is dramatically
increasing.
Key Topics Needing Congressional Oversight
o Re-examine the strategies, campaign plans, and programs for
stabilizing Iraq and Afghanistan, including changing missions of
international forces in each country.
o Assess progress in achieving the political, economic, and
security conditions required for stabilizing Iraq and Afghanistan.
Assess
o Trends in the security situation nationwide and in
key cities,
o Readiness and logistics capabilities of security
forces,
o Capabilities of local and national government
institutions,
o Progress in rebuilding the economy and key sectors,
and
o Status of basing arrangements in Iraq.
o Identify current and future U.S. costs for efforts in Iraq and
Afghanistan.
Selected GAO Products
Afghanistan Drug Control: Despite Improved Efforts, Deteriorating Security
Threatens Success of U.S. Goals. GAO-07-78. November 2006.
Stabilizing Iraq: An Assessment of the Security Situation. GAO-06-1094T.
September 11, 2006.
Global War on Terrorism: Observations on Funding, Costs, and Future
Commitments. GAO-06-885T. July 18, 2006.
Rebuilding Iraq: More Comprehensive National Strategy Needed to Help
Achieve U.S. Goals. GAO-06-788. July 11, 2006.
Rebuilding Iraq: Governance, Security, Reconstruction, and Financing
Challenges. GAO-06-697T. April 25, 2006.
Primary GAO Contacts
Joseph A. Christoff, Director, International Affairs and Trade, (202)
512-8979, [email protected] .
William Solis, Director, Defense Capabilities and Management, (202)
512-8365, [email protected] .
David Gootnick, Director, International Affairs and Trade, (202) 512-3149,
[email protected].
Ensure a Strategic and Integrated Approach to Prepare for, Respond to,
Recover, and Rebuild from Catastrophic Events
Recent events--notably Hurricane Katrina and the threat of an influenza
pandemic--have illustrated the importance of ensuring a strategic and
integrated approach to catastrophic disaster management. Disaster
preparation and response that is well planned and coordinated can save
lives and mitigate damage, and an effectively functioning insurance market
can substantially reduce the government's exposure to postcatastrophe
payouts. Managing risk is also a key component of GAO's model for managing
risk provides a tool to assist the Congress, Department of Homeland
Security, and other key players in preparing for and responding to such
events. Lessons learned from past national emergencies provide an
opportunity for the Congress to look at actions that could mitigate the
effects of potential catastrophic events. Similarly, the Congress could
also consider how the federal government can work with other nations,
other levels of government, and nonprofit and private-sector
organizations, such as the Red Cross and private insurers, to help ensure
the nation is well prepared and recovers effectively. Given the billions
of dollars dedicated to preparing for, responding to, and
recovering/rebuilding from catastrophic disasters, congressional oversight
is critical.
Key Topics Needing Congressional Oversight
o Ensure that leadership, roles, responsibilities, and authorities
are clear, well communicated, and understood and the capacity of
the nation to prepare for, respond to, and recover/rebuild from
catastrophic events is effectively assessed and exercised.
o Determine the extent to which relevant federal and state
organizations consider risk-based factors when making management
and resource decisions relating to catastrophic events.
o Identify and track the types and amount of federal assistance
provided for addressing catastrophic events and develop metrics to
inform congressional oversight.
o Examine the availability of private insurance for catastrophes
and identify ways that the National Flood Insurance Program can
improve the sufficiency of its financial resources and funding
mechanism, mitigate repetitive losses, increase compliance with
mandatory purchase requirements, and expedite the Federal
Emergency Management Agency's flood map modernization efforts.
Selected GAO Products
Influenza Pandemic: DOD Has Taken Important Actions to Prepare, but
Accountability, Funding, and Communications Need to Be Clearer and Focused
Departmentwide. GAO-06-1042. September 21, 2006.
Catastrophic Disasters: Enhanced Leadership, Capabilities, and
Accountability Controls Will Improve the Effectiveness of the Nation's
Preparedness, Response, and Recovery System. GAO-06-618. September 6,
2006.
Primary GAO Contacts
Stan Czerwinski, Director, (202) 512-6806, [email protected] (Gulf Coast
rebuilding).
William O. Jenkins, Director, (202) 512-8757, [email protected] (disaster
preparedness and response).
Bernice Steinhardt, Director, (202) 512-6543, [email protected]
(pandemic influenza).
Orice M. Williams, Director, (202) 512-8678, [email protected] (insurance
issues).
Reform the Tax Code, Including Reviewing the Performance of Tax
Preferences
Our complex income tax system causes individuals and businesses to change
behaviors in ways that reduce economic efficiency and thereby taxpayers'
well-being. The system fails to follow some common principles for good tax
systems, such as raising sufficient revenue over time to fund current and
future expected national expenditures. Further, a large, persistent annual
gap--caused, in part, by the complexity of the tax code--exists between
the taxes that should be and are paid. Additionally, since 1974, credits,
deductions, and other tax preferences, statutorily defined as tax
expenditures, more than doubled in number and the sum of their revenue
loss estimates tripled in real terms to about $775 billion in 2005. These
tax expenditures add to the tax system's complexity and cause tax rates to
be higher than they otherwise would be to raise a given amount of revenue.
Given our current and projected fiscal imbalance, we must re-examine
federal spending and tax policies, including tax expenditures, to ensure
that they achieve their purposes; appropriately balance economic impacts,
equity, transparency, simplicity, and administrability; and fit the needs
of the 21^st century.
Key Topics Needing Congressional Oversight
o Consider establishing a credible, capable, and bipartisan
commission to examine options for a combination of selected
entitlement, transformation, and tax reform issues.
o Simplify the tax code by eliminating, consolidating, or
simplifying tax expenditures, thereby broadening the tax base and
possibly lowering tax rates.
o Ensure that the Office of Management and Budget develops
guidance on incorporating tax expenditures in agency strategic
plans, annual performance plans, and performance and
accountability reports and ensures performance reviews of tax
expenditures are conducted.
o Increase, to the extent consistent with other objectives, tax
system neutrality related to economic decisions, such as whether,
where, when and how to work, save and invest.
Selected GAO Products
Business Tax Reform: Simplification and Increased Uniformity of Taxation
Would Yield Benefits. GAO-06-1113T. September 20, 2006.
Individual Income Tax Policy: Streamlining, Simplification, and Additional
Reforms are Desirable. GAO-06-1028T. August 3, 2006.
Government Performance and Accountability: Tax Expenditures Represent a
Substantial Federal Commitment and Need to Be Reexamined. GAO-05-690.
September 23, 2005.
Primary GAO Contact
James White, Director, Strategic Issues, (202) 512-9110, [email protected].
Reform Medicare and Medicaid to Improve Their Integrity and Sustainability
Absent reform, Medicare's and Medicaid's long-term fiscal sustainability
for supporting health care for elderly, disabled, and low-income Americans
is in jeopardy. In 2006, Medicare spending is estimated to be 3.2 percent
of Gross Domestic Product; it is expected to increase to 7.3 percent by
2035. With about 42 million beneficiaries and $330 billion in 2005
spending, and the addition of a new prescription drug benefit in 2006, the
program's size and complexity make it vulnerable to improper payments and
inefficient payment systems. Medicaid, the federal-state program that
covers acute health and long-term care services for about 56 million
low-income Americans, is also at risk of increased and inappropriate
federal spending. Medicaid consists of more than 50 distinct "state"
programs; joint federal/state expenditures for fiscal year 2004 are
estimated to be $298 billion, and federal expenditures are projected to
double in a decade. By law, the federal government pays from 50 percent to
83 percent of each state's reported Medicaid expenditures.
Key Topics Needing Congressional Oversight
o Modernize Medicare payment policies to reward quality and
efficiency and foster fiscal discipline while preserving access to
care.
o Assess the Centers for Medicare & Medicaid Services' (CMS)
managerial oversight of Medicare, including efforts to ensure
program integrity and provide information to assist beneficiaries
in making choices about the prescription drug benefit.
o Reform Medicaid to curtail states' use of financing schemes to
inappropriately obtain federal matching funds by limiting Medicaid
payments to government facilities to the costs of providing
services.
o Ensure that initiatives to restructure Medicaid eligibility and
benefits are consistent with the administration's goal of budget
neutrality for the federal government.
o Assess CMS's efforts to improve financial management oversight
of Medicaid.
Selected GAO Products
Medicare Integrity Program: Agency Approach for Allocating Funds Should Be
Revised. GAO-06-813. September 6, 2006.
Medicare Physician Payments: Trends in Service Utilization, Spending, and
Fees Prompt Consideration of Alternative Payment Approaches. GAO-06-1008T.
July 25, 2006.
Medicaid Financial Management: Steps Taken to Improve Federal Oversight
but Other Actions Needed to Sustain Efforts. GAO-06-705. June 22, 2006.
Medicare: Communications to Beneficiaries on the Prescription Drug Benefit
Could Be Improved. [20]GAO-06-654 . May 3, 2006.
Medicaid: States' Efforts to Maximize Federal Reimbursements Highlight
Need for Improved Federal Oversight. GAO-05-836T. June 28, 2005.
Long-Term Care Financing: Growing Demand and Cost of Services Are
Straining Federal and State Budgets. GAO-05-564T. April 27, 2005.
Primary GAO Contacts
Marjorie Kanof, Managing Director, Health Care, (202) 512-5055,
[email protected].
Kathryn G. Allen, Director, Health Care, (202) 512-7059, [email protected].
Bruce Steinwald, Director, Health Care, (202) 512-7681,
[email protected].
Ensure the Adequacy of National Energy Supplies and Related Infrastructure
The energy systems that have made America prosperous are showing
increasing signs of strain and instability, and the consequences of our
energy choices on the natural environment and national security are
becoming more apparent. U.S. demand for energy and our dependence on oil
in recent decades have begun to outpace supply. As a result, the country
has witnessed rising energy imports (oil about 60 percent) and exposure to
unstable international energy markets (e.g., Venezuela), rapid price
increase, and volatility in natural gas markets and reliability problems
in others, such as gasoline price spikes and the recent Northeast blackout
that left millions in the dark. Additional federal government leadership
and oversight of the nation's energy systems would help ensure that they
continue to meet the nation's needs in the 21^st century.
Looking forward, the country faces many difficult choices with regard to
its energy future. The Energy Information Administration estimates that,
based on current trends, U.S. energy demand could increase by about
another 30 percent over the next 20 years (with imports of natural gas
potentially increasing by 140 percent). Meeting this rising demand could
require significant investments into infrastructure such as power plants,
transmission lines, refineries, and other key equipment and technologies.
However, U.S. energy policy is largely determined by markets that reflect
a chorus of individual market choices--decisions by policymakers,
consumers, producers, and sellers of energy technologies--and these
choices will shape how much energy is needed and how it is supplied.
Therefore, federal oversight of our energy systems and markets, through
examination of policies, regulatory rules, incentives, and investment
decisions will be fundamental to determining what changes are needed and
whether solutions are realized.
Key Topics Needing Congressional Oversight
o Evaluate the risks, benefits, and implications for national
security of investments that deepen our ties to international
energy markets (e.g. overseas refineries, oil imports).
o Examine the Nuclear Regulatory Commission's licensing process
for new power plants.
o Examine the implications of the Department of Energy's R&D
portfolio.
o Assess development of evolving renewable energy markets.
o Evaluate programs that encourage energy efficiency and reduced
energy demand.
Selected GAO Products
Natural Gas: Factors Affecting Prices and Potential Impacts on Consumers.
GAO-06-420T. February 13, 2006.
Electricity Restructuring: Key Challenges Remain. GAO-06-237. November 15,
2005.
Motor Fuels: Understanding the Factors That Influence the Retail Price of
Gasoline. GAO-05-525SP. May 2, 2005.
Meeting Energy Demand in the 21st Century: Many Challenges and Key
Questions. GAO-05-414T. March 16, 2005.
Primary GAO Contact
Robert A. Robinson, Managing Director, Natural Resources and Environment,
(202) 512-3841, [email protected].
Reform Immigration Policy to Ensure Equity
and Economic Competitiveness
Our current immigration system is difficult to enforce and does not serve
the national interest. While opportunities to legally immigrate to the
United States are limited, ineffective border security and immigration
enforcement measures have resulted in millions of aliens entering the
country to find employment and remaining here illegally. The lack of
effective enforcement coupled with the lack of management controls has led
to a substantial reliance on unauthorized and mainly unskilled foreign
workers in many industries. Moreover, it created an underground population
which could exacerbate security concerns and tensions between citizens and
illegal aliens. The Departments of Homeland Security (DHS) and Labor also
have done little to anticipate global economic forces or match the needs
of the domestic labor market with legal alien skills. Remaining
competitive in the global economy will require the U.S. to attract higher
skilled immigrants and their families and provide legal avenues for
workers to temporarily meet unskilled labor needs. The Congress will need
to ensure that any immigration reform proposal is structured within a
reliable enforcement framework that promotes system integrity and the
interests of employers, workers, and humanitarian needs.
Key Topics Needing Congressional Oversight
o Assess DHS's capacity to control the borders and enforce
immigration laws within the country.
o Ascertain the lessons learned from prior immigration reform
experiences about the need for enforcement, management controls,
and social integration.
o Determine DHS's capacity to adjudicate naturalization and work
authorization requests from aliens currently residing in the U.S.
Selected GAO Products
Foreign Workers: Information on Selected Countries' Experiences.
GAO-06-1055. September 8, 2006.
H-1B Visa Program: Labor Could Improve Its Oversight and Increase
Information Sharing with Homeland Security. GAO-06-720. June 22, 2006.
Immigration Benefits: Improvements Needed to Address Backlogs and Ensure
Quality of Adjudications. GAO-06-20. November 21, 2005.
Primary GAO Contacts
Richard M. Stana, Director, Homeland Security and Justice, (202) 512-8816,
[email protected].
Sigurd R. Nilsen, Director, Education, Workforce, and Income Security
Issues, (202) 512-7003, [email protected] Overall Military Readiness,
Transformation Efforts, and Existing Plans to Assure the Sustainability of
the All-Volunteer Force
To adapt to the new security environment, the Department of Defense (DOD)
is embarking on an effort to transform its warfighting capabilities while
maintaining near-term readiness of its all-volunteer force to sustain
ongoing operations in support of the global war on terrorism. Since
September 11, 2001, U.S. forces, both active duty and reserves, continue
to experience a high pace of operations, requiring many units and
personnel to redeploy for second and third tours and, in some cases, to
remain for extended tours. Given the duration and intensity of current
operations, DOD faces challenges in maintaining readiness levels and
sustaining deployments, particularly with respect to repairing and
replacing equipment, and providing units and personnel with specialized
skills, such as military police and civil affairs. Amid these commitments,
DOD and the military services are embarked on an effort to transform
military capabilities, including acquiring next-generation weaponry. For
example, the Army is restructuring its entire operational force from large
Cold War-era divisions to smaller, more agile, brigade-based forces. In
addition, the services are undertaking expensive and complex efforts, such
as the Army's Future Combat System, the Air Force's Joint Strike Fighter,
and the Navy's advanced-design ships and submarines. At the same time,
personnel costs are climbing dramatically, with compensation costs growing
nearly 30 percent, inflation-adjusted, between fiscal years 2000 and 2004.
Given the competing demands and fiscal realities facing the military and
the nation, we have consistently reported on the need for DOD to
realistically assess needs and develop affordable investment plans.
Key Topics Needing Congressional Oversight
o Require DOD to assess the readiness impacts of operational
demands, and realistic and affordable plans and funding
requirements to address these impacts.
o Require DOD to develop an affordable investment strategy that
strikes a balance between maintaining near-term readiness and
addressing future needs.
o Re-examine recruitment, retention, and compensation systems to
determine whether changes are needed to assure the sustainability
of the all volunteer force.
Selected GAO Products
Defense Management: Additional Actions Needed to Enhance DOD's Risk-Based
Approach for Making Resource Decisions. GAO-06-13. November 2006.
Defense Logistics: Preliminary Observations on Equipment Reset Challenges
and Issues for the Army and Marine Corps. GAO-06-604T. March 2006.
Military Personnel: DOD Needs to Improve the Transparency and Reassess the
Reasonableness, Appropriateness, Affordability, and Sustainability of Its
Military Compensation System. GAO-05-798. July 2005.
Primary GAO Contacts
Butch Hinton, Managing Director, Defense Capabilities and Management,
(202) 512-9619, [email protected].
Katherine Schinasi, Managing Director, Acquisition and Sourcing
Management, (202) 512-4841, [email protected].
Assure the Quality and Competitiveness of the U.S. Education System
In the coming years, the United States will continue to face increased
economic competition from countries around the world. The shift to a
global economy and technological advances, and the changing population
demographics are converging, challenging existing federal approaches to
ensuring an educated citizenry that can effectively compete in a world
economy. To compete in a knowledge-based economy, our educational systems
must equip children with the appropriate skills to meet high standards and
provide the means for an increasingly diverse citizenry to pursue new
skills and enhance existing ones. Yet, large achievement gaps between
school-age students of different backgrounds persist, and many of the
federal government's higher education policy tools, designed decades ago,
may not be as well suited for an increasingly diverse population.
Moreover, the United States has long been one of the most desired higher
education destinations for international students, and these students fill
important skill gaps in the domestic workforce after they graduate.
However, international student enrollment has slowed in recent years, and
stricter U.S. student visa policies may be making it more difficult for
students who want to study here. Against this backdrop, other countries
are improving their educational capacities and have implemented
coordinated national strategies to recruit students worldwide.
Key Topics Needing Congressional Oversight
o Assess the impact of efforts to close achievement gaps among
disadvantaged populations in K-16+ education.
o Assess the effectiveness of education programs in meeting the
needs of the 21st century workforce.
o Assess the efficiency and effectiveness of programs designed to
promote access to and affordability of postsecondary education.
o Assure a proper balance between immigration policies--such as
work and student visa programs to address the nation's need for
people with skills, particularly math and science--and the
nation's homeland security requirements.
Selected GAO Products
No Child Left Behind Act: Assistance from Education Could Help States
Better Measure Progress of Students with Limited English Proficiency.
[21]GAO-06-815 . July 26, 2006.
No Child Left Behind Act: States Face Challenges Measuring Academic Growth
That Education's Initiatives May Help Address. GAO-06-661. July 17, 2006.
Higher Education: Science, Technology, Engineering, and Mathematics Trends
and the Role of Federal Programs. [22]GAO-06-702T . May 3, 2006.
Student Aid And Postsecondary Tax Preferences: Limited Research Exists on
Effectiveness of Tools to Assist Students and Families through Title IV
Student Aid and Tax Preferences. [23]GAO-05-684 . July 29, 2005.
Primary GAO Contacts
Cornelia Ashby, Director, Education, Workforce and Income Security Issues,
(202) 512-8403, [email protected].
George Scott, Director, Education, Workforce and Income Security Issues,
(202) 512-5932, [email protected].
Strengthen Retirement Security Through Reforming Social Security, Increasing
Pension Saving and Promoting Financial Literacy
The future fiscal imbalances in the Social Security program and the
increased insecurity of other traditional sources of retirement income
suggest the need for public policies that restore fiscal solvency and
stability to Social Security and assure the security of employer pension
promises. Also, the rise of self-directed saving plans such as 401(k)s and
IRAs suggests the need for policies to better inform Americans about their
retirement prospects and how to improve them. Americans must learn not
only the importance of accumulating adequate retirement savings and
understanding the retirement benefits their employers may offer, but also
how to invest such assets wisely, to preserve them for the future, and,
ultimately, to husband them effectively in retirement; failure to do so
could result in additional calls for federal income support. Yet many
Americans, especially those with less education and lower incomes, lack a
basic understanding of how to manage money and make wise financial
decisions. Many do not save adequately for retirement or preserve the
savings they accumulate; those who do save do not always make good
investment choices; and Americans may not have the information needed to
manage their savings prudently during retirement.
Key Topics Needing Congressional Oversight
o Take actions to restore fiscal solvency and sustainability to
the Social Security programs.
o Monitor the effectiveness of recent pension legislation designed
to strengthen plan funding and reduce reliance on the federal
pension insurance program.
o Examine adequacy of 401(k) balances and other forms of
self-directed saving
o Improve federal agencies' efforts to inform American workers
about the importance of saving, the amounts that will be necessary
for an adequate retirement, and the importance of annuitizing
retirement balances.
o Evaluate and improve federal agencies' coordinated leadership of
financial literacy initiatives to enhance such programs'
effectiveness.
o Identify and estimate the cost of ways of evaluating financial
literacy programs to determine if they promote positive behavioral
change.
Selected GAO Products
Baby Boom Generation: Retirement of Baby Boomers Is Unlikely to
Precipitate Dramatic Decline in Market Returns, but Broader Risks Threaten
Retirement Security. GAO-06-718. July 28, 2006.
Social Security Reform: Early Action Would Be Prudent. [24]GAO-05-397 T.
March 9, 2005.
Highlights of a GAO Forum: The Federal Government's Role in Improving
Financial Literacy. [25]GAO-05-93SP . November 15, 2004.
Pension Benefit Guaranty Corporation: Single-Employer Pension Insurance
Program Faces Significant Long-Term Risks. [26]GAO-04-90 . October 29,
2003.
Primary GAO Contacts
Cynthia Fagnoni, Managing Director, Education, Workforce and Income
Security Issues, (202) 512-7202, [email protected].
Richard Hillman, Managing Director, Financial Markets and Community
Investment, (202) 512-9073, [email protected].
Examine the Costs, Benefits, and Risks of Key Environmental Issues
One of the greatest challenges confronting the new Congress will be the
conflict between the nation's social and economic goals and the recognized
need to assure the long-term sustainability of it's natural resources and
the environment. The United States has enacted a broad array of
environmental laws and regulations to protect human health and the
environment, but given the gravity of the issues, oversight of their
implementation has been limited. Thoughtful policymaking on these issues
has been impeded by (1) gaps in the knowledge of environmental stressors
and their effects on ecological conditions and human health, (2) limited
information on the economic benefits of environmental protection, and (3)
reluctance to act without more complete information. GAO has consistently
reported on the lack of quality information needed to understand the state
of the nation's environment, the extent of compliance by the regulated
community, and the need to consider the full costs and benefits associated
with alternative regulatory and management strategies in policymaking.
Without this kind of information, the nation's environmental policy and
priorities will continue to be driven by anecdote and perception, rather
than fact.
Key Topics Needing Congressional Oversight
o Assess implementation of laws and compliance, as well as
opportunities for enhancing the cost-effectiveness and efficiency
of environmental programs.
o Identify information needed to better assess the state of the
environment, emerging problems, and social and economic impacts of
environmental programs.
o Prioritize activities to fill knowledge gaps and strengthen the
information needed for assessing existing and emerging
environmental risks, as well as evaluating the costs and benefits
of alternative approaches to achieving environmental outcomes.
o Determine whether changes to statutes and regulations could help
ensure that the nation's environmental, social, and economic goals
are being achieved in a balanced and sustainable manner.
Selected GAO Products
Clean Air Act: Observations on EPA's Cost-Benefit Analysis of Its Mercury
Control Options. GAO-05-252. February 28, 2005.
Environmental Indicators: Better Coordination Needed to Develop
Environmental Indicator Sets That Inform Decisions. GAO-05-52. November
17, 2004.
Watershed Management: Better Coordination of Data Collection Efforts
Needed to Support Key Decisions. GAO-04-382. June 7, 2004.
Environmental Information: EPA Needs Better Information to Manage Risks
and Measure Results. GAO-01-97T. October 3, 2000.
Primary GAO Contact
John Stephenson, Director, Natural Resources and Environment, (202)
512-6225, [email protected].
Reform Federal Housing Programs and Related Financing and Regulatory Structures
The federal government promotes homeownership and rental housing for
lower-income households through various housing finance programs,
incentives, and requirements. The federal agencies and
government-sponsored enterprises (GSE) responsible for advancing national
housing goals have faced a number of challenges in recent years. First,
the Federal Housing Administration's (FHA) single-family mortgage
insurance programs have experienced higher-than-expected insurance claims
and a sharp decline in participation due partly to the wide availability
of subprime mortgage products. These factors have prompted proposals to
modernize and broaden the customer base for FHA's programs. Second, risk
management and accounting deficiencies at the GSEs have called into
question the effectiveness of the regulatory structure for these entities.
Legislation on reforming the structure has been intensely debated. Third,
the rising cost of rental housing assistance programs and large backlog of
public housing capital needs have made it increasingly difficult to keep
rental units affordable and available to lower-income households. Recent
reform efforts have focused on giving state and local program
administrators the flexibilities and incentives to operate the programs
more efficiently and leverage private financing for capital improvements.
Key Topics Needing Congressional Oversight
o Evaluate potential changes to the GSE regulatory framework and
determine how new regulatory authorities and responsibilities
would help in GSE oversight.
o Assess how proposed FHA reforms are likely to affect the
agency's role in the mortgage market and the extent to which FHA
has the risk management capabilities necessary to implement the
reforms.
o Assess federal agencies' efforts to ensure that federally
assisted rental housing is effectively managed, remains in good
physical and financial condition and, to the extent practicable,
remains available for lower-income households.
Selected GAO Products
Rental Housing Assistance: Policy Decisions and Market Factors Explain
Changes in the Costs of the Section 8 Programs. GAO-06-405. April 28,
2006.
Mortgage Financing: Additional Action Needed to Manage Risks of
FHA-Insured Loans with Down Payment Assistance. GAO-06-24. November 9,
2005.
Housing Government-Sponsored Enterprises: A New Oversight Structure Is
Needed. GAO-05-576T. April 21, 2005.
Primary GAO Contact
William Shear, Director, Financial Markets and Community Investment, (202)
512-4325, [email protected].
Ensure the Integrity and Equity of Existing Farm Programs
The federal government spends more than $25 billion each year on subsidies
and disaster and conservation payments for farmers. The largest farming
entities--10 percent of the recipients--collect about 70 percent of the
benefits. While the United States farm sector continues to provide the
American people with ample quantities of low cost food, our work has shown
that the U.S. Department of Agriculture's (USDA) enforcement of support
program rules is not always effective. For example, we have found that
each year, thousands of producers falsely collect crop insurance payments,
and individuals with limited involvement in farming have qualified for
payments and evaded payment limits. USDA support programs may also have
unintended consequences, including incentives for producers to grow crops
on land prone to drought or erosion. The Congressional Budget Office
estimated that eliminating support for marginal lands could save $1.4
billion. Without better oversight to ensure that farm program funds are
spent as economically, efficiently, and effectively as possible, there is
little assurance that they benefit the agricultural sector as intended or
protect rural areas from land degradation and diminished water quality.
Key Topics Needing Congressional Oversight
o Increase the monitoring of the compliance provisions in the farm
bill.
o Strengthen internal controls in the federal crop insurance
program to weed out fraud, waste, and abuse.
o Eliminate loopholes in the agriculture subsidy programs that
allow recipients to avoid payment limitations and annually collect
millions of dollars in payments.
o Assess financial incentives for producers to convert native
rangeland to produce crops, resulting in increased program costs
and lost environmental benefits.
Selected GAO Products
Conservation Security Program: Despite Cost Controls, Improved USDA
Management Is Needed to Ensure Proper Payments and Reduce Duplication with
Other Programs. GAO-06-312. April 28, 2006.
Crop Insurance: Actions Needed to Reduce Program's Vulnerability to Fraud,
Waste, and Abuse. GAO-05-528. September 30, 2005.
Farm Program Payments: USDA Needs to Strengthen Regulations and Oversight
to Better Ensure Recipients Do Not Circumvent Payment Limitations.
GAO-04-407. April 30, 2004.
Agricultural Conservation: USDA Needs to Better Ensure Protection of
Highly Erodible Cropland and Wetlands. GAO-03-418. April 21, 2003.
Primary GAO Contact
Lisa Shames, Acting Director, Natural Resources and Environment, (202)
512-2649, [email protected].
Review Federal Efforts to Improve the Image of the United States
The U.S. government has failed to implement a strategic, coordinated
approach to counter increasingly negative foreign public opinion. U.S.
strategic communication efforts, led by the State Department and supported
by U.S. Agency for International Development, the Broadcasting Board of
Governors, and the Department of Defense, support a number of national
security interests, including countering terrorism and promoting
democracy. Of particular interest and concern is the growing consensus
that the United States is engaged in a "war of ideas" with extremists that
must be countered with "soft power" assets, strategies, and programs.
Failure to win this war of ideas will jeopardize the ability of the United
States to limit the growth of terrorist networks and their operational
effectiveness.
Key Topics Needing Congressional Oversight
o Monitor State Department efforts to develop a comprehensive
strategic communication plan--integrated with other U.S.
departments and agencies--with clear goals and strategies for
improving overseas public opinion of the United States.
o Assess State Department efforts to develop country-level public
diplomacy and communications plans, particularly in nations that
are considered key in the global war on terror.
o Examine the extent to which the State Department has the
organizational structure and human resources necessary to carry
out its public diplomacy and strategic communication goals.
o Assess the implementation of the Department of Defense's 2006
Quadrennial Strategic Communication Execution Roadmap, which is
intended to institutionalize a strategic communications process to
improve the department's ability to fight the global war on
terrorism.
o Assess the Broadcasting Board of Governor's actions to document
the audience reach of Radio Sawa and the Alhurra satellite
television network--the United States' two primary vehicles for
communicating with mass audiences in the Muslim world.
Selected GAO Products
U.S. International Broadcasting: Management of Middle East Broadcasting
Services Could Be Improved. GAO-06-762. August 4, 2006.
U.S. Public Diplomacy: State Department Efforts to Engage Muslim Audiences
Lack Certain Communication Elements and Face Significant Challenges.
GAO-05-323. May 3, 2006.
Primary GAO Contact
Jess T. Ford, Director, International Affairs and Trade, (202) 512-4268,
[email protected].
Review the Need for Various Budget Controls and Legislative Process Revisions in
Light of Current Deficits and Our Long-Range Fiscal Imbalance
Fiscal policy is on an unsustainable path. GAO's long-term simulations
show that absent a change in policy, the nation faces escalating deficits
and debt. This outlook is largely driven by health care costs and
demographics. Failure to grapple with these challenges will result in a
government unable to respond to any new challenges and a crushing fiscal
burden for future generations.
The budget controls that restrained expansion of the deficit have expired
without being replaced. Future budget controls and enforcement mechanisms
and legislative processes will need to move beyond the previous regimes to
facilitate difficult choices and attention to the long term.
Key Topics Needing Congressional Attention
o Reimpose caps on discretionary spending.
o Under caps, consider special rules for well-defined
"emergency" designations.
o Consider whether there should be an explicit
allocation between investment and consumption within
discretionary spending.
o Reintroduce pay-as-you-go (PAYGO) requirements--on both the
spending and revenue side of the ledger--and examine ways of
moving from "do no harm" to facilitating a change in direction.
o Consider budget triggers that would signal the need for action
when there is significant growth in mandatory programs.
o Require estimates of long-term cost implications of major policy
proposals (tax and spending) before they are acted upon.
o Require information on tax expenditures--cost implications,
performance goals, etc. (See the suggested oversight issue on
"Reform the Tax Code, Including Reviewing the Performance of Tax
Preferences" p.24).
o Review the use of supplementals and earmarks in order to
determine needed reforms.
o Consider biennial budgeting and other broader reforms.
Selected GAO Products
The Nation's Long-Term Fiscal Outlook: September 2006 Update.
GAO-06-1077R. September 15, 2006.
Budget Process: Better Transparency, Controls, Triggers, and Default
Mechanisms Would Help to Address Our Large and Growing Long-Term Fiscal
Challenge. GAO-06-761T. May 25, 2006.
Mandatory Spending: Using Budget Triggers to Constrain Growth. GAO-06-276.
January 31, 2006.
Budget Process: Long-Term Focus Is Critical. GAO-04-585T. March 23, 2004.
Primary GAO Contact
Susan J. Irving, Director for Federal Budget Analysis, Strategic Issues,
(202) 512-8288, [email protected].
Pursue the Development of Key National Indicators
As the pace of change accelerates, the nation is faced with new and more
complex challenges, including globalization, emerging scientific and
technological changes, public health, and environmental issues. One tool
to help address these challenges is the development of key national
indicators to measure progress toward national outcomes, assess conditions
and trends, and help communicate complex issues. Some other countries have
key national indicator systems, but not the United States.
Congressional attention is needed. The Key National Indicators Initiative,
under the auspices of the National Academies, has begun efforts to develop
a national indicator system to inform strategic planning, enhance
performance and accountability reporting, inform congressional oversight
and decision making, facilitate oversight, and stimulate greater citizen
engagement. GAO's work has pointed to the need for a governmentwide
strategic plan, supported by key national indicators to assess
performance, position, and progress. A governmentwide strategic plan could
provide an additional tool for re-examining existing programs and
proposing new programs. GAO has also called for a governmentwide
performance report linked to key indicators to articulate the government's
accomplishments. A key national indicator system for the United States,
however, cannot be fully developed without the interest and critical
attention that congressional involvement provides.
Key Topics Needing Congressional Oversight
o Encourage awareness and education through public hearings. The
Congress could take a leadership role in highlighting the need for
a U.S. national indicator system.
o Strengthen partnerships to enhance the dissemination of quality
information, including engaging with citizens and local indicator
systems in congressional districts across the country to ensure
that proposals for the State of the USA system are configured to
effectively and efficiently meet national information needs.
o Focus attention on the role and contributions of the federal
statistical system in providing key data and assessing areas where
improvements are needed.
o Examine the possible role of a public-private partnership to
further develop and operate a system of key national indicators.
Selected GAO Products
Environmental Indicators: Better Coordination Is Needed to Develop
Environmental Indicator Sets That Inform Decisions. GAO-05-52. November
17, 2004.
Informing Our Nation: Improving How to Understand and Assess the USA's
Position and Progress. GAO-05-1. November 10, 2004.
Primary GAO Contact
Bernice Steinhardt, Director, Strategic Issues, (202) 512-6543,
[email protected].
Review the Impact and Effectiveness of Various Management Reforms Enacted in
Recent Years (e.g., GPRA, CFO Act, FFMIA, Clinger-Cohen, etc.)
The Congress and the executive branch have implemented a statutory
framework to improve the performance and accountability of the executive
branch and to enhance executive branch and congressional decision making.
This framework includes as its key elements: results-oriented management
reforms, especially the Government Performance and Results Act (GPRA);
financial management reforms, including the Chief Financial Officers (CFO)
Act, the Federal Financial Management Improvement Act (FFMIA), and other
related legislation; and information technology reforms, such as the
Clinger-Cohen Act.
As a result of this framework, there has been substantial progress in
establishing the basic infrastructure needed to create high-performing
organizations across the federal government. However, agencies are still
in the early stages of using this statutory framework to transform their
organizational cultures, inform their decision making, improve their
performance, and strengthen their accountability. Sustained congressional
attention has been and will continue to be a critical factor to ensuring
achievement of various management reforms, such as the goals and
objectives of key legislative reforms.
Key Topics Needing Congressional Oversight
o Examine the progress federal agencies are making in integrating
these reforms to drive a broader transformation of their cultures
to be more results-oriented, high performing organizations.
o Oversee federal agency efforts to implement modern financial
management systems that routinely produce information that is
timely, useful, and reliable for decision-making.
o Review agencies' delivery of information technology to improve
mission performance by determining whether major provisions of the
Clinger-Cohen Act are being effectively addressed (e.g., capital
planning and investment control processes, enterprise
architecture, information technology leadership and human
capital).
Selected GAO Products
Enterprise Architecture: Leadership Remains Key to Establishing and
Leveraging Architectures for Organizational Transformation. GAO-06-831.
August 14, 2006.
CFO Act of 1990: Driving the Transformation of Federal Financial
Management. GAO-06-242T. November 17, 2005.
Results-Oriented Government: GPRA Has Established a Solid Foundation for
Achieving Greater Results. GAO-04-38. March 10, 2004.
Primary GAO Contact
J. Christopher Mihm, Managing Director, Strategic Issues, (202) 512-6806,
[email protected].
Review the Effectiveness of the Federal Audit and Accountability Community,
Including the Oversight, Structure, and Division of Responsibility
Current national and global issues and a challenging fiscal outlook make
the oversight role of government auditors especially important to help
ensure that public functions are carried out efficiently, economically,
effectively, ethically, and legally and to limit exposure to fraud, waste,
mismanagement, and abuse. The current federal audit oversight structure
includes GAO, 62 statutory inspector general (IG) offices, and about 6,000
CPA firms that annually perform more than 34,000 audits of entities
receiving federal funding (single audits). While the Single Audit Act has
provided oversight of more than $300 billion in annual federal grants,
questions have been raised about the usefulness and effectiveness of
oversight for federal funds. Given the current challenges, government
auditing must be focused and coordinated in order to provide the most
effective oversight of federal programs and funds. Finally, there are
numerous federally established entities receiving significant federal
funding that lack statutory requirements for accountability oversight and
should be included in the federal audit oversight structure.
Key Topics Needing Congressional Oversight
o Require GAO and the IGs to evaluate the current structure and
division of responsibilities to develop reform proposals to
achieve more effective audit oversight of federal programs and
funding in the 21^st century.
o Establish a governmentwide accountability council to establish
priorities and develop strategies to address federal
accountability issues among GAO, the Office of Management and
Budget, the President's Council on Integrity and Efficiency and
the Executive Council on Integrity and Efficiency, and other
oversight organizations.
o Review the Single Audit Act and propose reforms to ensure
continuing effective oversight of the more than $300 billion in
annual federal grants awarded to nonfederal entities to meet the
needs for oversight of federally funded programs.
o Schedule a series of oversight hearings to deliberate GAO's and
the IGs federal audit reform proposals and the council's
priorities and strategies.
Selected GAO Products
Highlights of the Comptroller General's Panel on Federal Oversight and the
Inspectors General. GAO-06-931SP. September 11, 2006.
Inspectors General: Office Consolidation and Related Issues. GAO-02-575.
August 15, 2002.
Single Audit: Single Audit Act Effectiveness Issues. GAO-02-877T. June 26,
2002.
Primary GAO Contact
Jeanette M. Franzel, Director, Financial Management and Assurance, (202)
512-9471, [email protected].
Modernize the Federal Government's Organizational and Human Capital Models
The federal government is faced with new and more complex economic,
demographic, social, technological, security, and other challenges that it
alone cannot address. In fact, achieving meaningful national results and
outcomes increasingly requires the coordinated efforts of various federal
agencies, other governments both internationally and as well as at the
state and local levels, nongovernment organizations, for-profit and
not-for-profit contractors, the private sector, and others. To respond to
current and emerging demands, federal agencies must become more
partnership-based, results-oriented, integrated, and externally focused.
In that regard, strategic human capital management must be the centerpiece
of any serious change management and transformation effort. Yet, as amply
shown by GAO's long-standing work on human capital issues--including the
designation of strategic human capital management as a governmentwide
high-risk area--federal agencies do not consistently have the modern,
effective, economical, and efficient human capital programs, policies, and
procedures they need to respond to current and emerging governance
challenges.
Key Topics Needing Congressional Oversight
o Require the Office of Management and Budget to develop an
executive branch annual performance plan--as already mandated by
the Government Performance and Results Act--and issue annual
summary reports of the financial results and performance outcomes
of the federal government.
o Authorize agencies to implement market-based and
performance-oriented compensation reform, based on a "show me"
test; that is, an agency may not implement new authorities until
it has demonstrated it has in place a modern, effective, and
credible performance management system with adequate safeguards.
o Ensure that agencies' strategic workforce plans and accompanying
succession plans incorporate the critical transformation and
governance challenges each agency faces and do not merely seem to
replicate a status quo that is outmoded, ineffective, and not
sustainable in the future.
o Review the efforts at the Departments of Defense and Homeland
Security to ensure that they effectively implement their new human
capital systems.
Selected GAO Products
Human Capital: Principles, Criteria, and Processes for Governmentwide
Federal Human
Capital Reform. GAO-05-69SP. December 1, 2004.
Human Capital: Key Principles for Effective Strategic Workforce Planning.
GAO-04-39. December 11, 2003.
Highlights of a GAO Forum: Mergers and Transformation: Lessons Learned for
a
Department of Homeland Security and Other Federal Agencies. GAO-03-293SP.
November 14, 2002.
Primary GAO Contact
J. Christopher Mihm, Managing Director, Strategic Issues, (202) 512-6806,
[email protected].
Re-examine the Presidential (Political) Appointment Process
The presidential (political) appointment process does not distinguish
among the different types of responsibilities inherent in the appointed
positions. Further, the positions generally do not require any particular
set of qualifications, even though the appointees may be responsible for
non-policy related functions. In addition, some federal agencies,
particularly those agencies with political appointees in positions with
operational and management responsibilities may benefit from term
appointments. For example, there is proposed legislation to implement
deputy secretaries for management/chief management officer (CMO) positions
at the Departments of Defense and Homeland Security. If put in place,
these CMOs would be at an Executive Level II position in these agencies
and would have term appointments and statutory qualifications.
Key Topics Needing Congressional Oversight
o Examine whether Presidential (political) appointees can be
categorized by the differences in their roles and
responsibilities, such as by the following categories:
o Appointees that have responsibility for various
policy issues;
o Appointees that have leadership responsibility for
various operational and management matters; and
o Appointees that require an appropriate degree of
professional competence, objectivity, and
independence (e.g., judges, the comptroller general,
inspectors general).
o Review which appointee positions should be
Presidentially-Appointed-Senate Confirmed (PAS) versus
Presidentially-Appointed (PA). (For example, those appointees that
have policy leadership responsibility should be PAS, while many of
those with operational and management responsibility could be PA,
with an appropriate advance appointment congressional notification
requirement).
o Assess appropriate qualifications for selected positions
(including the possibility of establishing specific statutory
qualifications criteria for certain categories of appointees).
o Review the use of tenures and term appointments (i.e. for
Inspectors General and selected Executive Level II positions in
federal agencies).
o Examine a variety of compensation schemes, given the different
roles noted above.
Selected GAO Products
Highlights of the Comptroller General's Panel on Federal Oversight and the
Inspectors General. GAO-06-931SP. September 11, 2006.
Human Capital: Trends in Executive and Judicial Pay. GAO-06-708. June 21,
2006.
Highlights of a GAO Roundtable: The Chief Operating Officer Concept: A
Potential Strategy to Address Federal Governance Challenges. GAO-03-192SP.
October 4, 2002.
Primary GAO Contact
J. Christopher Mihm, Managing Director, Strategic Issues, (202) 512-6806,
[email protected].
Ensure Transparency over Executive Policies and Operations
A fundamental principle of democratic government is that its policies and
operations be reasonably transparent to the press and the public and
subject to effective oversight to ensure they are achieving the will of
the Congress and American people. Key oversight and transparency
mechanisms include requests from the Congress, GAO, and the Offices of
Inspectors General (IG) for information from executive agencies that
demonstrates how well policies and operations are achieving agencies'
missions and using taxpayer dollars. In addition, similar information is
sought by members of the press and public through the Freedom of
Information Act (FOIA). Executive agencies, in turn, are responsible for
ensuring that they respond to requests for information in a manner
consistent with national security interests. To achieve this balance,
agencies may determine that the information requested must be classified,
or designated as sensitive but unclassified. The tradeoff, however, is
that the Congress, GAO, and IGs may be restricted in the further
dissemination of this information and the public may be denied timely
access. Thus, agencies' processes for deciding how to respond to such
requests for information and whether to restrict it are critical to
transparency and oversight. From time to time, agencies' processes have
come under scrutiny because they appear to limit timely access and
interfere with legislative oversight.
Key Topics Needing Congressional Oversight
o Compare and contrast how agencies respond to requests from the
Congress, GAO, IGs, and the public under FOIA, for information on
agency policies and operations.
o Determine how responsive agencies have been to these requests.
o Review how agencies determine that the response involves
information that needs to be classified or designated as sensitive
but unclassified, and determine the impact this had on agencies'
ability to respond.
Selected GAO Products
Managing Sensitive Information: DOJ Needs a More Complete Staffing
Strategy for Managing Classified Information and a Set of Internal
Controls for Other Sensitive Information. GAO-07-83. October 22, 2006.
Managing Sensitive Information: Actions Needed to Ensure Recent Changes in
DOE Oversight Do Not Weaken an Effective Classification System.
GAO-06-785. June 30, 2006.
Managing Sensitive Information: DOD Can More Effectively Reduce the Risk
of Classification Errors. GAO-06-706. June 30, 2006.
Managing Sensitive Information: Departments of Energy and Defense Policies
and Oversight Could Be Improved. GAO-06-369. March 7, 2006.
Primary GAO Contact
Eileen Larence, Director, Homeland Security and Justice, (202) 512-6510,
[email protected].
Monitor and Assess Corporate Financial Reporting and Related Standards
for Public Companies Accountability
Investor confidence in reliable financial reporting is at the core of the
effective functioning of the capital markets. The significant corporate
failures that occurred due to corporate mismanagement and fraud caused a
loss of investor confidence and resulted in the Congress passing the
Sarbanes-Oxley Act of 2002, to reform corporate financial reporting and
auditing. The act has improved the quality of auditing and the quality of
corporate financial reporting and related internal controls. Many larger
companies experienced challenges and high costs associated with
implementing the internal control requirements of the act. As smaller
public companies, about 60 percent of total public companies, begin to
implement these requirements it is crucial that the Securities and
Exchange Commission (SEC) and the Public Company Accounting Oversight
Board (PCAOB) resolve implementation issues in order to achieve effective
reforms. In addition, as financial markets continue to globalize, the U.S.
and international accounting standard setters must work to improve
relevance, usefulness, consistency, and efficiency of financial reporting.
Finally, the accounting and auditing profession needs to develop
well-defined objectives and business practices that are widely shared and
accepted so that reliable and useful financial reporting and auditor
assurance can be accomplished in an effective and efficient manner.
Key Topics Needing Congressional Oversight
o Require SEC and PCAOB to assess the Sarbanes-Oxley Act's
internal control-related guidance and standards to determine their
sufficiency and how management and auditors can achieve economical
and effective implementation.
o Require periodic SEC assessment of progress on improving the
usefulness, effectiveness, and efficiency of financial reporting,
including related internal control requirements, as well as
identification of current and emerging issues that could impact
financial reporting, accountability, and investor confidence.
o Require GAO assessment of the progress of the accounting and
auditing standard setters and regulators in addressing issues
impacting efficiency and effectiveness of corporate financial
reporting, internal control, and auditing.
Selected GAO products
Financial Restatements: Update of Public Company Trends, Market Impacts,
and Regulatory Enforcement Activities. GAO-06-678. July 24, 2006.
Sarbanes-Oxley Act: Consideration of Key Principles Needed in Addressing
Implementation for Smaller Public Companies. GAO-06-361. April 13, 2006.
Public Accounting Firms: Required Study on the Potential Effects of
Mandatory Audit Firm Rotation. GAO-04-216. November 21, 2003.
Public Accounting Firms: Mandated Study on Consolidation and Competition.
GAO-03-864. July 30, 2003.
Primary GAO contact
Jeanette M. Franzel, Director, Financial Management and Assurance, (202)
512-9471, [email protected].
(450552)
References
Visible links
13. http://www.gao.gov/cgi-bin/getrpt?GAO-06-91
14. http://www.gao.gov/cgi-bin/getrpt?GAO-05-300
15. http://www.gao.gov/new.items/d061009t.pdf
16. http://www.gao.gov/new.items/d06822t.pdf
17. http://www.gao.gov/new.items/d06465t.pdf
20. http://www.gao.gov/cgi-bin/getrpt?GAO-06-654
21. http://www.gao.gov/new.items/d06702t.pdf
22. http://www.gao.gov/new.items/d06702t.pdf
23. http://www.gao.gov/new.items/d05684.pdf
24. http://www.gao.gov/new.items/d0593sp.pdf
25. http://www.gao.gov/new.items/d0593sp.pdf
26. http://www.gao.gov/new.items/d0490.pdf
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