1 Planning and Programming at GAO A Case Study Victor Rezendes Managing Director Strategic Issues

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Planning and Programming at GAO

A Case Study

Victor RezendesManaging Director

Strategic Issues

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GAO’s Role

• GAO’s role has been to support the Congress in carrying out its constitutional responsibilities and to help improve the performance and assure accountability of government for the benefit of the American people

• We do this in four fundamental ways: 

• Oversight–preventing and detecting fraud, waste, and abuse

• Insight–making government more efficient and effective

• Foresight–examining the role of government

• Adjudication–bid protest resolution, legal opinions (e.g. appropriations law)

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Annual Performance Measures (1998 and 2002)

Performance measure

FY 1998

FY 2002

Financial benefits (billions) $19.7 $37.7

Other benefits 537 906

Past recommendations implemented 69% 79%

Return on investment (ROI) 58:1 88:1

Financial benefits per employee (millions) Timeliness

$6.1 $11.7

Actual

96%93%

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The Nature of GAO’s Work

FY 1966 FY 1981

R& D Mandates Requests

1115

74

5

72

2333 2

65

90

10

FY 1998 FY 2002

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Transformation is about creating the future rather than perfecting the past

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The Evolving Role of the SAI

• Our rapidly changing world is changing expectations

• Increasing global interdependency

• Changing security threats

• Transition to knowledge-based economies

• Changing demographics and quality of life issues

• Rapidly evolving science and technology

• Rising health care costs and challenges

• Evolving governance structures

• Public expectations for improved government performance and accountability

• Long-range fiscal challenges

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31%

50%

13%6%

Source: Budget of the United States Government, FY 2004, Office of Management and Budget.

9%

34%25%

21%11% 9%

23%

17%32%

19%

1962 1982 2002

Defense Social Security

Net interest

Medicare & Medicaid

All other spending

Composition of Federal SpendingBy Budget Function

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Composition of Spending as a Share of GDP Assuming Discretionary Spending Grows with GDP after 2003

and the 2001 Tax Cuts Do Not Sunset

Percent of GDP

Note: Assumes currently scheduled Social Security benefits are paid in full throughout the simulation period.

Source: GAO’s January 2003 analysis.

0

10

20

30

40

50

2000 2015 2030 2050Fiscal year

Net interest Social Security Medicare & Medicaid All other spending

Revenue

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Federal Government:Doing More with Fewer People

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10

GAO’s Budget Authority and FTE LevelsFiscal Years 1992-2002

0

1000

2000

3000

4000

5000

6000

0

100

200

300

400

500

600

*Budget authority is shown in inflation-adjusted 1992 dollars

FTE level Dollars in millions

Full TimeEquivalents Budget authority*

Fiscal years

1992 1994 1996 1998 2000 2002

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Effects of Responses to BudgetaryCuts, Downsizing, and Outsourcing

• Lack of strategic alignment

• Inadequate accountability for performance

• Skills imbalances

• Workload imbalances for remaining skilled workers

• Succession planning challenges

• Outdated performance appraisal systems

• Reduced investments in people

Annual Planning• Annual Performance Plan• Budget Request (Resource Allocation)

Organizational Structure• Layers, units and locations• Horizontal and vertical axes

Capacity• Workforce Planning• Knowledge & Skills Inventory• Training• Information Technology

Accountability• Performance Measurement• Performance Management• P&A Report

Risk-Based Engagement Management Process (Portfolio Management)

• Quality Assurance

Strategic Planfor Serving the Congress

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Strategic Planning

• Six year plan is updated every 2 years to coincide with each new Congress

• First strategic plan prepared in 2000; first update issued June 2002 covering FY 2002-2007

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Strategic Planning

• Planning process based on model practices of other organizations

• Case study done on first cycle; update cycle incorporated lessons learned

• Planning process is ongoing and evolving

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Client Outreach and Consultation

• Plan begins and ends with the Congress

• Annual outreach effort prior to developing plan, involving all GAO teams and the Comptroller General:

• Determining agenda• Feedback on performance

• Systematic feedback on products

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Stakeholder Consultation

• Major GAO stakeholders = other congressional agencies, accountability organizations, federal agencies, public policy organizations

• Understanding stakeholders helps to identify our strengths and weaknesses

• Consultation can also lead to collaboration • Joint planning—identifying opportunities to pursue

common goals and objectives• Developing strategic relationships to accomplish common

goals

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External (Environmental) Scan

• Identification of emerging issues and trends

• “Theme team” originally, now institutionalizing process• “Knowledge stewards”• Special studies• Regional environmental scans• Speaker series

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Internal Scan

• Assessments of internal capacities: human capital, processes, technology, environment

• Sources• Employee feedback• Skills inventory• Concept of operations• Others

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• Both managers and staff develop and update plan

• Senior leaders — Overall mission, core values, and strategic goals and objectives

• Team managers and staff — Specific performance goals and key efforts

Developing and Updating the Plan

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Communication

• Draft plan reviewed internally and externally; posted to our Web site with electronic comment feature

• Strategic plan and performance and accountability plans and reports are online

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GAO’s Organization

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GAO’s Human Capital ProfileFY 1989, 1998, 2001, and Estimated FY

2002

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GAO’S Efforts to Develop a Skilled Workforce

• Self-assessment checklist• Human capital profile• Workforce & succession planning• Employee feedback survey &

suggestion program• Employee Advisory Council• Enhanced employee

communications & participation• Skills & knowledge inventory• Employee preference survey• Frequent flyer miles• Training/development

• Recruiting & college relations• Recognition & rewards• Flexitime & flexiplace• Business casual dress & business

cards• Enabling technologies• Opportunity/inclusiveness• Mentor/buddy programs• Commuting subsidy• College loan repayment • Competency-based employee

appraisal system

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• Clear link to our strategic plan and core values

• Fair, honest, accurate and non-discriminatory assessment of performance based on standards that are valid, properly applied, and transparent to employees

• Sound basis for enhancing the performance capacity of all staff, rewarding high-performing staff, and dealing with “below expected performers.”h with “below expected” performers

Competency-BasedPerformance Appraisal

2626

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Institutional Risk Management

• Congressional and agency protocols (policies, procedures, transparency)

• International accountability and other organizations protocols planned

• Domestic accountability protocols also being considered

• Partnering with other accountability organizations

• Constructive engagements with agencies

• Client feedback (e.g. surveys)

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Institutional Risk Management

• Seven step engagement management process

1. Formally accept engagement

2. Approve initiation of engagement

3. Commit to methodology and milestones

4. Stakeholders agree on message

5. Approval by senior managers

6. Receipt of comments by audited agency

7. Issue and distribute product publicly

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GAO High-Risk Program

• Started in 1990 with focus on fraud, waste, abuse, and mismanagement

• Evolved to include major economy, efficiency, effectiveness, and transformation challenges

• Updates issued at the start of each new Congress

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Identifying High Risk in Government Programs

Risk is seriously detrimental to

Health or safetyService deliveryNational securityNational defenseEconomic growthPrivacy or citizens’ rights

Risk could result in

Significantly impaired service or program failure

Significantly reduced effectiveness or reduced efficiency

Injury or loss of life

Unreliable decision-making data

Reduced confidence in government

Unauthorized disclosure, manipulation or misuse of sensitive information

Quantitative threshold: $1 billion in assets or revenues must be at risk.

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GAO’sHigh Risk

List

High Risk Areas Year Designated High Risk

Addressing Challenges in Broad-based TransformationsProtecting Information Systems Supporting the Federal Government and The

Nation’s Critical InfrastructuresStrategic Human Capital Management*U.S. Postal Service Transformation Efforts and Long-Term Outlook*Implementing and Transforming the New Department of Homeland SecurityModernizing Federal Disability Programs *Federal Real Property * Ensuring Major Technology Investments Improve ServicesFAA Air Traffic Control ModernizationIRS Business Systems ModernizationDOD Systems Modernization

Providing Basic Financial AccountabilityDOD Financial ManagementIRS Financial ManagementForest Service Financial ManagementFAA Financial ManagementReducing Inordinate Program Management RisksMedicare*Collection of Unpaid TaxesDOD Inventory ManagementStudent Financial Aid ProgramsHUD Single-Family Mortgage Insurance and Rental Assistance ProgramsEarned Income Credit NoncomplianceDOD Support Infrastructure ManagementMedicaid Program *

Managing Large Procurement Operations More EfficientlyDOD Weapon Systems AcquisitionDepartment of Energy Contract ManagementNASA Contract ManagementDOD Contract Management

1997

20012001200320032003

199519951995

1995199519991999

19901990199019901994199519972003

1990199019901992

* Additional authorizing legislation is likely to be required as one element of addressing this high-risk area.

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Next Steps

• Institutionalize environmental scan

• Build on stakeholder relationships

• Better align strategic planning with annual planning and budget processes

• Implement balanced scorecard of performance measures

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