	DHS Strategically Planned Its Homeland Security Missions Departmentwide through the QHSR, but Stakeholder Consultations Could Be Enhanced

DHS’s primary strategic planning effort in recent years has been the  QHSR. DHS  reported on the results of this second phase in the July 2010 BUR  report. In December 2010, we issued a report on the extent to which the QHSR  addressed the 9/11 Commission Act’s required reporting elements. In September 2011, we reported on the extent to which DHS consulted  with stakeholders in developing the QHSR. DHS solicited input from  various stakeholder groups in conducting the first QHSR, but DHS  officials, stakeholders GAO contacted, and other reviewers of the QHSR  noted concerns with time frames provided for stakeholder consultations  and outreach to nonfederal stakeholders. DHS consulted with  stakeholders—federal agencies; department and component officials;  state, local, and tribal governments; the private sector; academics; and  policy experts— through various mechanisms, such as the solicitation of  papers to help frame the QHSR and a web-based discussion forum. DHS  and these stakeholders identified benefits from these consultations, such  as DHS receiving varied perspectives. However, stakeholders also  identified challenges in the consultation process. For example:
Sixteen of 63 stakeholders who provided comments to GAO noted  concerns about the limited time frames for providing input into the  QHSR or BUR. By providing more time for obtaining feedback and examining  mechanisms to obtain nonfederal stakeholders’ input, DHS could  strengthen its management of stakeholder consultations and be better  positioned to review and incorporate, as appropriate, stakeholders’ input  during future reviews. We recommended that DHS provide more time for  consulting with stakeholders during the QHSR process and examine  additional mechanisms for obtaining input from nonfederal stakeholders  during the QHSR process, such as whether panels of state, local, and  tribal government officials or components’ existing advisory or other  groups could be useful. DHS Did Not Prioritize QHSR Missions or Use Risk Assessments to Help Set Strategic Priorities and Could Improve Departmentwide Performance Measures

The 9/11 Commission Act called for DHS to prioritize homeland security  missions in the QHSR. DHS Could Strengthen Its Use of Risk Information in Prioritizing Initiatives and Planning and Investment Decision Making

DHS considered various factors in identifying high-priority BUR initiatives  for implementation in fiscal year 2012 but did not include risk information  as one of these factors as called for in our prior work and DHS’s risk  management guidance. Through the BUR, DHS identified 43 initiatives  aligned with the QHSR mission areas to help strengthen DHS’s activities  and serve as mechanisms for implementing those mission areas (see  app. Risk information  was not included as an element in any of these three criteria, according to  DHS officials, because of differences among the initiatives that made it  difficult to compare risks across them, among other things. Consideration of risk information during  future implementation efforts could help strengthen DHS’s prioritization of  mechanisms for implementing the QHSR, including assisting in  determinations of which initiatives should be implemented in the short or  longer term. In our September 2011 report, we recommended that DHS  examine how risk information could be used in prioritizing future QHSR  initiatives. DHS Has Established Performance Measures, but Has Not Yet Fully Developed Outcome-Based Measures for Many of Its Mission Functions

In September 2011, we reported that DHS established performance  measures for most of the QHSR objectives and had plans to develop  additional measures. While DHS had made progress in strengthening performance  measurement, our work across the department has shown that a number  of programs lacked outcome goals and measures, which may have  hindered the department’s ability to effectively assess results or fully  assess whether the department was using resources effectively and  efficiently. DHS Has Taken Action to Implement, Strengthen, and Integrate Its Management Functions, but Needs to Demonstrate Sustainable Progress

In 2003, GAO designated the transformation of DHS as high risk because  DHS had to transform 22 agencies—several with major management  challenges—into one department, and failure to effectively address DHS’s  management and mission risks could have serious consequences for  U.S. national and economic security. DHS also put in place common policies,  procedures, and systems within individual management functions, such  as human capital, that help to integrate its component agencies. Specifically, the strategy  contained details on the implementation and transformation of DHS, such  as corrective actions to address challenges within each management  area, and officials responsible for implementing those corrective actions.
Why GAO Did This Study

The Implementing Recommendations of the 9/11 Commission Act of 2007 (9/11 Commission Act) requires that beginning in fiscal year 2009 and every 4 years thereafter the Department of Homeland Security (DHS) conduct a review that provides a comprehensive examination of the homeland security strategy of the United States. In February 2010, DHS issued its first Quadrennial Homeland Security Review (QHSR) report, outlining a strategic framework for homeland security. In July 2010 DHS issued a report on the results of its Bottom-Up Review (BUR), a departmentwide assessment to implement the QHSR strategy by aligning DHSs programmatic activities, such as inspecting cargo at ports of entry, and its organizational structure with the missions and goals identified in the QHSR. This testimony addresses DHSs efforts to (1) strategically plan its homeland security missions through the QHSR, (2) set strategic priorities and measure performance, and (3) build a unified department. This testimony is based on GAO reports issued in December 2010, February 2011, and September 2011.

What GAO Found

DHSs primary strategic planning effort in recent years has been the QHSR. In September 2011, GAO reported on the extent to which DHS consulted with stakeholders in developing the QHSR. DHS solicited input from various stakeholder groups in conducting the first QHSR, but DHS officials, several stakeholders GAO contacted, and other reviewers of the QHSR noted concerns with time frames provided for stakeholder consultations and outreach to nonfederal stakeholders. Specifically, DHS consulted with stakeholdersfederal agencies; department and component officials; state, local, and tribal governments; the private sector; academics; and policy expertsthrough various mechanisms, such as the solicitation of papers to help frame the QHSR. DHS and these stakeholders identified benefits from these consultations, such as DHS receiving varied perspectives. However, stakeholders also identified challenges in the consultation process, such as concerns about the limited time frames for providing input into the QHSR or BUR and the need to examine additional mechanisms for including more nonfederal stakeholders in consultations. By providing more time for obtaining feedback and examining mechanisms to obtain nonfederal stakeholders input, DHS could strengthen its management of stakeholder consultations and be better positioned to review and incorporate, as appropriate, stakeholders input during future reviews.
DHS considered various factors in identifying high-priority BUR initiatives for implementation in fiscal year 2012 but did not include risk information as one of these factors, as called for in GAOs prior work and DHSs risk-management guidance. Through the BUR, DHS identified 43 initiatives aligned with the QHSR mission areas to serve as mechanisms for implementing those mission areas. According to DHS officials, DHS did not consider risk information in prioritizing initiatives because of differences among the initiatives that made it difficult to compare risks across them, among other things. In September 2011, GAO reported that consideration of risk information during future implementation efforts could help strengthen DHSs prioritization of mechanisms for implementing the QHSR. Further, GAO reported that DHS established performance measures for most of the QHSR objectives and had plans to develop additional measures. However, with regard to specific programs, GAOs work has shown that a number of programs and efforts lack outcome goals and measures, hindering the departments ability to effectively assess results.
In 2003, GAO designated the transformation of DHS as high risk because DHS had to transform 22 agenciesseveral with major management challengesinto one department, and failure to effectively address DHSs management and mission risks could have serious consequences for U.S. national and economic security. DHS has taken action to implement, transform, and strengthen its management functions, such as developing a strategy for addressing this high-risk area and putting in place common policies, procedures, and systems within individual management functions, such as human capital, that help to integrate its component agencies. However, DHS needs to demonstrate measurable, sustainable progress in implementing its strategy and corrective actions to address its management challenges.

What GAO Recommends

GAO made recommendations in prior reports for DHS to, among other things, provide more time for consulting with stakeholders during the QHSR process, examine additional mechanisms for obtaining input from nonfederal stakeholders, and examine how risk information could be used in prioritizing future QHSR initiatives. DHS concurred and has actions planned or underway to address them.