DOT’s Performance Plan Provides a Clear Picture of Intended Performance Across the Department

DOT’s performance plan provides a clear statement of the performance goals and measures that address program results. For example, the OIG reported that the Department’s accounting system could not be used as the only source of financial information to prepare its financial statements. The fiscal year 2000 plan does not address this issue. Comparison With the Fiscal Year 1999 Plan

The discussion of performance goals and measures in DOT’s fiscal year 2000 performance plan is a moderate improvement over the discussion in the fiscal year 1999 performance plan and shows some degree of progress in addressing the weaknesses that we identified in the fiscal year 1999 plan. We observed that the fiscal year 1999 plan could have been improved by (1) explaining how the management challenges are related to the rest of the performance plan and by including goals and specific measures for addressing the challenges; (2) consistently linking strategic goals, program activities, and performance goals; and (3) indicating interagency coordination for the crosscutting programs and consistently discussing the Department’s contribution to these programs. DOT’s Performance Plan Provides a Specific Discussion of the Strategies and Resources the Department Will Use to Achieve Its Goals

DOT’s plan provides a specific discussion of the strategies and resources that the Department will use to achieve its performance goals. For each performance goal, the plan lists an overall strategy for achieving it, as well as specific activities and initiatives. DOT’s Performance Plan Provides General Confidence That the Performance Information Will Be Credible

The Department’s fiscal year 2000 performance plan generally provides a clear and comprehensive discussion of the performance information. For most measures, information about the data’s quality was lacking. Progress in Implementing Performance-Based Management

DOT has clearly made good progress in implementing performance-based management. According to the plan, DOT has incorporated all of its fiscal year 1999 performance goals into performance agreements between the administrators of DOT’s agencies and the Secretary. Challenges in Implementing Performance-Based Management

A key challenge that DOT faces in implementing performance-based management is the lack of accountability for its financial activities. DOT is taking actions to correct the financial reporting deficiencies that were identified by the OIG. A-11, part 2; and other relevant documents. In December 1998, the Department’s Office of Inspector General (OIG) issued a similar report on the Department.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the Department of Transportation's (DOT) performance plan for fiscal year (FY) 2000, focusing on: (1) the usefulness of DOT's plan in providing a clear picture of intended performance across the Department; (2) the strategies and resources that DOT will use to achieve its goals; and (3) whether DOT's performance information will be credible.

What GAO Found

GAO noted that: (1) overall, DOT's performance plan for FY 2000 should be a useful tool for decisionmakers; (2) it provides a clear picture of intended performance across the Department, a specific discussion of the strategies and resources that the Department will use to achieve its goals, and general confidence that the Department's performance information will be credible; (3) DOT's FY 2000 performance plan represents a moderate improvement over the FY 1999 plan in that it indicates some degree of progress in addressing the weaknesses that GAO identified in an assessment of the FY 1999 plan; (4) GAO observed that the FY 1999 plan did not: (a) sufficiently address management challenges facing the Department; (b) consistently link strategic goals, program activities, and performance goals; (c) indicate interagency coordination for crosscutting areas; or (d) provide sufficient information on external factors, the processes and resources for achieving the goals, and the performance data; (5) among the improvements in the FY 2000 plan are more consistent linkages among the program activities and performance goals, additional information on external factors and strategies for achieving the goals, and a more comprehensive discussion of the data's quality; (6) these improvements and other activities indicate that DOT has clearly made good progress in implementing performance-based management; (7) for example, the plan indicates that the Department is incorporating the performance goals into performance agreements between the administrators of DOT's agencies and the Secretary; (8) however, the plan still needs further improvement, especially in explaining how certain management challenges, such as financial management weaknesses, will be addressed; (9) for example, DOT's Office of Inspector General (OIG) reported that the Department's accounting system could not be used as the only source of financial information to prepare its financial statements; (10) while the FY 2000 plan does not address this issue, the Department has recognized the financial reporting deficiencies identified by the OIG and is taking actions to correct them; and (11) the lack of accountability for financial activities is a key challenge that DOT faces in implementing performance-based management.