	2012 Annual Report Identified 51 Opportunity Areas

Our 2012 annual report identified 51 areas where unnecessary  duplication, overlap, or fragmentation exists as well as additional  opportunities for potential cost savings or enhanced revenues. We found  instances where multiple government programs or activities have led to  inefficiencies, and we determined that greater efficiencies or effectiveness  might be achievable. In many cases, the existence  of unnecessary duplication, overlap, or fragmentation can be difficult to  determine with precision due to a lack of data on programs and activities. In some instances  of duplication, overlap, or fragmentation, it may be appropriate for multiple  agencies or entities to be involved in the same programmatic or policy  area due to the nature or magnitude of the federal effort. These  limitations have diminished and HUD programs can be used in all areas  of the country. The GPRA  Modernization Act of 2010 also envisions such an approach for selected  cross-cutting areas. We plan to track the extent to which progress has been made to address  our recommendation. The agencies  agreed with our recommendation. Since 2005, when we first reported on this issue, we  have found that the majority of programs have not conducted  comprehensive evaluations of how well their programs are working. The Office of Science and Technology Policy said  it would address our recommendations in the 5-year Federal STEM  Education Strategic Plan, which will be released in spring 2012. In addition, in February 2012, we suggested DHS work with  federal agencies to determine their reasons for duplicating the activities  included in FPS’s risk assessments and identify measures to reduce this  duplication. Our 2012 annual report also summarized 19 areas—beyond those  directly related to duplication, overlap, or fragmentation—describing other  opportunities for agencies or Congress to consider taking action that  could either reduce the cost of government operations or enhance  revenue collection for the Treasury. These cost saving and revenue- enhancing opportunities also span a wide range of federal government  agencies and mission areas (see table 2). We  found that better informed decisions were needed to ensure a more cost- effective acquisition approach for the Navy’s NGEN program. Status of Actions Taken to Address the Areas Identified in 2011 Annual Report

In our 2011 annual report, we suggested a wide range of actions for the  Congress and the executive branch to consider such as developing  strategies to better coordinate fragmented efforts, implementing executive  initiatives to improve oversight and evaluation of overlapping programs,  considering enactment of legislation to facilitate revenue collection and  examining opportunities to eliminate potential duplication through  streamlining, collocating, or consolidating efforts or administrative services. As of February 10, 2012, the majority of 176 actions needed within the 81  areas identified by GAO have been partially addressed. In addition to the actions reported above, Congress has held a number of  hearings and OMB has provided guidance to executive branch agencies  on areas that we identified that could benefit from increased attention and  ongoing oversight. Since the issuance of our March 2011 report, we have  testified numerous times on our first annual report and on specific issues  highlighted in the report. Both Congress and the executive branch have recognized  this, and in January 2011, the GPRA Modernization Act of 2010 (the Act)  was enacted, updating the almost two-decades-old Government  Performance and Results Act. The Act requires OMB to coordinate with agencies to establish outcome- oriented goals covering a limited number of crosscutting policy areas as  well as goals to improve management across the federal government,  and to develop a governmentwide performance plan for making progress  toward achieving those goals. The performance plan is to, among other  things, identify the agencies and federal activities—including spending  programs, tax expenditures, and regulations—that contribute to each  goal, and establish performance indicators to measure overall progress  toward these goals as well as the individual contribution of the underlying  agencies and federal activities. The President’s budget for fiscal year  2013 includes 14 such crosscutting goals. Aspects of several of these  goals—including Science, Technology, Engineering, and Math Education,  Entrepreneurship and Small Businesses, Job Training, Cybersecurity,  Information Technology Management, Procurement and Acquisition  Management, and Real Property Management—are discussed in our  2011 or 2012 annual report. GAO’s Approach to Identifying Potential Areas for Examination

The areas identified in our annual reports are not intended to represent  the full universe of duplication, overlap, or fragmentation within the federal  government, but we have conducted a systematic examination across the  federal government to ensure that we have identified major instances of  potential duplication, overlap, and fragmentation governmentwide by the  time we issue our third annual report in 2013. Our examination involved a multiphased approach. In conclusion Mr. Chairman, Ranking Member Cummings, and Members  of the Committee, opportunities exist for the Congress and federal  agencies to continue to address the identified actions needed in our 2011  and 2012 annual reports. Collectively, these reports show that, if the  actions are implemented, the government could potentially save tens of  billions of dollars annually. Appendix I: Overall Progress Made in Each of the 81 Areas Identified in GAO’s 2011 Annual Report

This appendix presents a summary of GAO’s assessment of the overall  progress made in each of the 81 areas that we identified in our March  2011 report in which the Congress and the executive branch could take  actions to reduce or eliminate potential duplication, overlap, and  fragmentation or achieve other potential financial benefits.
Why GAO Did This Study

This testimony discusses our 2012 annual report, which presents 51 areas where programs may be able to achieve greater efficiencies or become more effective in providing government services by reducing potential duplication, overlap, or fragmentation in federal programs and activities. We have also continued to monitor developments in the 81 areas that we identified a year ago in the first report we issued in this series. Our 2011 follow-up report released today describes the extent to which progress has been made to address these areas.
This testimony is based on our 2012 annual and 2011 follow-up reports. Specifically, it addresses: (1) federal programs or functional areas where unnecessary duplication, overlap, or fragmentation exists, as well as other opportunities for potential cost savings or enhanced revenues; (2) status of actions taken by Congress and the executive branch to address the areas we identified in our 2011 report; (3) aspects of the GPRA Modernization Act of 2010 that may contribute to addressing and preventing duplication, overlap and fragmentation among federal programs; and (4) our approach to identifying duplication or cost savings in federal programs and activities. We conducted our work in accordance with generally accepted government auditing standards or with our quality assurance framework, as appropriate. For issues where information is being reported on for the first time in this report, we sought comments from the agencies involved, and incorporated those comments as appropriate. In updating the actions we identified in the 2011 annual report, we asked the agencies involved and the Office of Management and Budget (OMB) for their review and incorporated comments as appropriate.

What GAO Found

We identified 51 areas in our 2012 annual report, including 32 areas of potential duplication, overlap, or fragmentation as well as 19 opportunities for agencies or Congress to consider taking action that could either reduce the cost of government operations or enhance revenue collections for the Treasury. These areas involve a wide range of government missions including agriculture, defense, economic development, education, energy, general government, health, homeland security, international affairs, science and the environment, and social services. Within and across these missions, the 2012 annual report touches on virtually all major federal departments and agencies. We expanded the scope of our work for this years report to focus on areas where a mix of federal approaches is used, such as tax expenditures, direct spending, and federal grant or loan programs.
In our 2011 follow-up report, we assessed the extent to which Congress and the executive branch addressed the 81 areasincluding a total of 176 actionsto reduce or eliminate unnecessary duplication, overlap, or fragmentation or achieve other potential financial benefits. As of February 10, 2012, Congress and the executive branch have made some progress in addressing the majority of the 81 areas we identified; however, additional steps are needed to fully implement the remaining actions. Specifically, our assessment found that all actions had been addressed in 4 areas, partially addressed in 60 areas, and not addressed in 17 areas. In addition, OMB has instructed agencies to consider areas of duplication or overlap identified in our 2011 report and by others in their fiscal year 2013 budget submissions and management plans. The OMB guidance also advised agencies to take a number of other steps to enhance efficiency, such as identifying and including in their budget submissions cost-saving efforts that will improve operational efficiency and taxpayers rate of return, including program integration, reorganizations within and between agency components, and resource realignment to improve public services.
Under requirements established by the GPRA Modernization Act of 2010 (the Act). OMB is also required to coordinate with agencies to establish outcome-oriented goals covering a limited number of crosscutting policy areas as well as goals to improve management across the federal government, and develop a governmentwide performance plan for making progress toward achieving those goals. The Presidents budget for 2013 includes 14 such crosscutting policy goals. Aspects of several of these goalsincluding Science, Technology, Engineering, and Math Education, Entrepreneurship and Small Businesses, Job Training, Cybersecurity, Information Technology Management, Procurement and Acquisition Management, and Real Property Managementare discussed in our March 2011 and February 2012 reports. The Acts requirements provide a much needed basis for more fully integrating a wide array of potentially duplicative, overlapping, or fragmented federal activities as well as a cohesive perspective on the long-term goals of the federal government focused on priority policy areas.
Opportunities exist for the Congress and federal agencies to continue to address the needed actions identified in our March 2011 and February 2012 reports. Collectively, these reports show that, if the actions are implemented, the government could potentially save tens of billions of dollars annually. Cost savings related to reducing or eliminating duplication, overlap, and fragmentation can be difficult to estimate because the portion of agency budgets devoted to certain programs or activities is often unclear, or needed information on program performance or costs is not readily available. In some cases, there is sufficient information to estimate potential savings or other benefits if actions are taken to address individual issues. In other cases, estimates of cost savings or other benefits would depend upon what congressional and executive branch decisions were made, including how certain of our recommendations are implemented. Nevertheless, considering the amount of program dollars involved in the issues we have identified, even limited adjustments could result in significant savings. Additionally, we have found that agencies can often realize other kinds of benefits, such as improved customer service and decreased administrative burdens.