	Twenty-six New Areas Identified to Improve Efficiency and Effectiveness across the Federal Government

We identified 11 new areas in which we found evidence of fragmentation,  overlap, or duplication and present 19 actions to executive branch  agencies and Congress to address these issues. By not consolidating its  requirements, this facility missed the opportunity to achieve potential cost  savings and other efficiencies. According to the Congressional Budget Office (CBO), this action could  save $1.2 billion over 10 years in the Social Security Disability Insurance  program. In addition to areas of fragmentation, overlap, and duplication, our 2014  report identified 15 new areas where opportunities exist either to reduce  the cost of government operations or to enhance revenue collections for  the Treasury and suggest 45 actions that the executive branch and  Congress can take to address these issues. For example, to achieve cost savings, Congress may wish to consider  rescinding all or part of the remaining credit subsidy appropriations to the  Advanced Technology Vehicles Manufacturing (ATVM) loan program,  unless the Department of Energy (DOE) can demonstrate sufficient  demand for new ATVM loans and viable applications. We also identified multiple opportunities for the government to increase  revenue collections. Executive Branch and Congress Continue to Make Progress in Addressing Previously Identified Issues

In addition to the new actions identified for this year’s annual report, we  have continued to monitor the progress that executive branch agencies  and Congress have made in addressing the issues we identified in our  last three annual reports. As of March 6, 2014, the date we  completed our audit work, 19 percent of these areas were addressed, 62  percent were partially addressed, and 15 percent were not addressed  (see fig.1). Within these areas, we presented about 380 actions that the  executive branch agencies and Congress could take to address the  issues identified. We estimate that executive branch and congressional efforts to address  these and other actions from fiscal year 2011 through fiscal year 2013  have resulted in over $10 billion in realized cost savings to date, and  projections of these efforts have estimated that billions of dollars more in  savings will accrue over the next 10 years. More specifically, over 60 percent of actions directed to Congress and  executive branch agencies identified in 2011, 2012, and 2013 remain  partially addressed or not addressed. Without increased or renewed leadership focus, agencies may miss  opportunities to improve the efficiency and effectiveness of their programs  and save taxpayers’ dollars. Table 4  highlights selected opportunities that could result in cost savings or  enhanced revenues. Better Data and a Focus on Outcomes Are Essential to Improving Efficiency and Effectiveness

Even with sustained leadership, addressing fragmentation, overlap, and  duplication within the federal government is challenging because it may  require agencies and Congress to re-examine within and across various  mission areas the fundamental structure, operation, funding, and  performance of a number of long-standing federal programs or activities  with entrenched constituencies. Currently, no comprehensive list of federal programs exists,  nor is there a common definition for what constitutes a federal program. Without knowing the scope of programs or the full cost of implementing  them, it is difficult for executive branch agencies or Congress to gauge  the magnitude of the federal commitment to a particular area of activity or  the extent to which associated federal programs are effectively and  efficiently achieving shared goals. In addition, we have called attention to the need for improved and regular  performance information.
Why GAO Did This Study

As the fiscal pressures facing the government continue, so too does the need for executive branch agencies and Congress to improve the efficiency and effectiveness of government programs and activities. Opportunities to take action exist in areas where federal programs or activities are fragmented, overlapping, or duplicative.
To highlight these challenges and to inform government decision makers on actions that could be taken to address them, GAO is statutorily required to identify and report annually to Congress on federal programs, agencies, offices, and initiatives, both within departments and government-wide, which have duplicative goals or activities. GAO has also identified additional opportunities to achieve greater efficiency and effectiveness by means of cost savings or enhanced revenue collection.
This statement discusses the (1) new areas identified in GAO's 2014 annual report; (2) status of actions taken by the administration and Congress to address the 162 areas previously identified in GAO's 2011, 2012 and 2013 annual reports; and (3) opportunities to address the issues GAO identified. To identify what actions exist to address these issues and take advantage of opportunities for cost savings and enhanced revenues, GAO reviewed and updated prior work and recommendations for consideration.

What GAO Found

GAO's 2014 annual report identifies 64 new actions that executive branch agencies and Congress could take to improve the efficiency and effectiveness of 26 areas of government. GAO identifies 11 new areas in which there is evidence of fragmentation, overlap, or duplication. For example, under current law, individuals are allowed to receive concurrent payments from the Disability Insurance and Unemployment programs. Eliminating the overlap in these payments could save the government about $1.2 billion over the next 10 years. GAO also identifies 15 new areas where opportunities exist either to reduce the cost of government operations or enhance revenue collections. For example, Congress could rescind all or part of the remaining $4.2 billion in credit subsidies for the Advanced Technology Vehicles Manufacturing Loan program unless the Department of Energy demonstrates sufficient demand for this funding.
The executive branch and Congress have made progress in addressing the approximately 380 actions across 162 areas that GAO identified in its past annual reports. As of March 6, 2014, the date GAO completed its progress update audit work, nearly 20 percent of these areas were addressed, over 60 percent were partially addressed, and about 15 percent were not addressed, as shown in the figure below. Executive branch and congressional efforts to address these and other actions over the past 3 years have resulted in over $10 billion in cost savings with billions of dollars more in cost savings anticipated in future years.
Better data and a greater focus on outcomes are essential to improving the efficiency and effectiveness of federal efforts. Currently, there is not a comprehensive list of all federal programs and agencies often lack reliable budgetary and performance information about their own programs. Without knowing the scope, cost, or performance of programs, it is difficult for executive branch agencies or Congress to gauge the magnitude of the federal commitment to a particular area of activity or the extent to which associated federal programs are effectively and efficiently achieving shared goals.