	District’s Performance Management Efforts Remain a Work in Progress

Congress, and this Subcommittee in particular, has demonstrated a sustained interest in working with the District government to ensure that a sound performance management system is in place. Since then, the District has taken a number of actions to implement a performance management process, and Congress has continued to provide oversight directed at strengthening the District’s ability to efficiently and effectively deliver results to its taxpayers. The District’s fiscal year 2000 performance report, issued on March 22 of this year, included several initiatives to address issues raised in congressional hearings on the District’s management and performance. On the other hand, the fiscal year 2000 performance report addressed other key legislatively mandated reporting requirements that were not met in the fiscal year 1999 report. As of April 2001, the District had no timetable or comprehensive plan for fully implementing its financial management system. District Will Request Rescission of Contracting Funds

The District of Columbia Appropriations Act for fiscal year 2001 provided a $250,000 payment to the District Mayor for a contract “for the study and development of a plan to simplify the compensation systems, schedules, and work rules applicable to employees of the District government.” However, the act placed several conditions on the appropriation.
Why GAO Did This Study

The District of Columbia has taken various steps to implement a performance management process, and Congress has continued to provide oversight to strengthen the District's ability to efficiently and effectively deliver results to its taxpayers. This testimony discusses GAO's (1) ongoing review of the District's fiscal year 2000 performance report; (2) report issued in April 2001 on the implementation of the District's new financial management system; and (3) report being issued in May 2001 on the District's decision not to use money that Congress provided to help simplify the District's compensation systems, schedules, and work rules.

What GAO Found

GAO found that although the fiscal year 2000 report more fully met statutory requirements than did the 1999 report, performance planning, measurement and reporting is still a work in progress in the District. The District continues to face significant challenges in its efforts to put in place a financial management framework that ensures timely and reliable data on the cost of the District's operations. Finally, the District no longer plans to use the $250,000 appropriated by Congress for reform of the District's classification and compensation systems because doing so would delay their reform effort. This testimony summarizes two GAO reports ( GAO-01-489 and GAO-01-690R).