	Improving Performance and Accountability Across Government

My testimony today focuses on the major challenges faced by government in improving its performance and strengthening accountability. They are
Adopting an effective results orientation. Improving the use of information technology to achieve results. Strengthening financial management for decision-making and accountability. Building, maintaining, and marshaling the human capital needed to achieve results. Many agencies continue to struggle to implement basic tenets of performance-based management called for by the Government Performance and Results Act. The uneven pace of progress across government is not surprising; agencies are in the early years of undertaking the changes that performance-based management entails. (GAO/OCG-99-14)

		Aligning Activities to Meet Demands

Ineffective and outmoded organizational and program structures frequently have undermined agencies’ effectiveness. Challenges agencies confront range from the need for clearer lines of accountability to streamlining organizations in response to changing circumstances. Addressing the Urgent Year 2000 Computing Challenge

Resolving the Year 2000 computing problem is the most pervasive, time-critical risk facing government today. Over the past 2 years, preparedness has improved markedly, but significant challenges remain and time is running out. Resolving Serious Information Security Weaknesses

Continuing computer security weaknesses put critical federal operations and assets at great risk. Much more needs to be done to ensure that systems and data supporting essential federal operations are adequately protected. Widespread financial system weaknesses, problems with fundamental recordkeeping, incomplete documentation, and weak internal controls—including computer controls—prevented the government from accurately reporting a large portion of its assets, liabilities, and costs. These deficiencies undermine agencies’ ability to accurately measure costs and effectively safeguard federal assets and manage operations. Providing cost information also remains a key challenge. New standards require agencies to develop measures of the full costs of carrying out a mission, producing products, or delivering services to promote comparison of the costs of various programs and results. (GAO/OCG-99-8)

		Developing Staff to Meet Critical Needs

The rapid pace of social and technological change and shifts in agency strategies to achieve their missions pose continuing challenges to attract and develop skilled staff. Skills gaps in critical areas undermine agencies’ effectiveness and efforts to address high-risk areas. (GAO/OCG-99-19)
Overall, human capital must become a more prominent issue for the government as agencies become more performance-based.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the major challenges faced by the government in improving its performance and strengthening accountability, focusing on agencies' need to: (1) adopt an effective results orientation; (2) improve the use of information technology to achieve results; (3) strengthen financial management decision-making and accountability; and (4) build, maintain, and marshal the human capital needed to achieve results.

What GAO Found

GAO noted that: (1) many agencies continue to struggle to implement basic tenets of performance-based management called for by the Government Performance and Results Act; (2) the uneven pace of progress across government is not surprising; agencies are in the early years of undertaking the changes that performance-based management entails; (3) ineffective and outmoded organizational and program structures frequently have undermined agencies' effectiveness; (4) challenges agencies confront range from the need for clearer lines of accountability to streamlining organizations in response to changing circumstances; (5) resolving the year 2000 computing problem is the most pervasive, time-critical risk facing the government; (6) over the past 2 years, preparedness has improved markedly, but significant challenges remain and time is running out; (7) continuing computer security weaknesses put critical federal operations at great risk; (8) much more needs to be done to ensure that systems and data supporting essential federal operations are adequately protected; (9) widespread financial system weaknesses, problems with fundamental recordkeeping, incomplete documentation, and weak internal controls prevented the government from accurately reporting a large portion of its assets, liabilities, and costs; (10) these deficiencies undermine agencies' ability to accurately measure costs and effectively safeguard federal assets and manage operations; (11) providing cost information also remains a key challenge; (12) new standards require agencies to develop measures of the full costs of carrying out a mission, producing products, or delivering services to promote comparison of the costs of various programs and results; (13) the rapid pace of social and technological change and shifts in agency strategies to achieve their missions pose continuing challenges to attract and develop skilled staff; (14) skills gaps in critical areas undermine agencies' effectiveness and efforts to address high-risk areas; and (15) overall, human capital must become a more prominent issue for the government as agencies become more performance-based.