Our first objective was to  assess AOC’s progress over the 6-month period from December 1, 2003,  through May 31, 2004, on eight key issues that deserve near-term attention  and focus: (1) stakeholder involvement, (2) employee communications,   (3) auditable financial statements and related internal controls,   (4) financial reporting for operating units and cost accounting,   (5) information security management, (6) worker safety performance  measures, (7) Capitol complex master planning, and (8) strategic  management of recycling. Our second objective, which was mandated by  the Consolidated Appropriations Resolution, 2003 (Public Law 108-7), was  to assess AOC’s COO action plan that was issued in December 2003. For example, AOC has not reached  agreement with Congress on how best to develop a clear, transparent, and  documented understanding of how AOC sets project priorities and how  progress will be assessed. AOC has taken some steps to involve congressional and other  stakeholders; however, it has yet to fully engage these stakeholders. As we reported in January 2004, AOC planned  to begin issuing a complete set of audited financial statements for fiscal  year 2004. In addition, AOC has made progress in  institutionalizing its policies on inventory management and control. Recommendations for Agency Actions

To enhance the successful development of useful financial, cost, and  performance reporting for major operating units and appropriate cost  accounting, we recommend that the Architect of the Capitol direct the  Chief Operating Officer and the Chief Financial Officer to   work with operating managers to assess the usefulness of financial- statement-level information, take an active role in AOC near-term efforts  to develop agencywide performance measures, and review all available  options to determine whether substantial work can begin, prior to fiscal  year 2006, on the analyses needed to identify changes necessary to  implement useful cost accounting at AOC, and  have senior management visibly demonstrate its continuing  commitment to and support for making AOC-wide system, procedural,  and cultural changes necessary to provide managers with timely  financial, cost, and performance information by monitoring the efforts’  implementation and related milestones, ensuring the commitment to  and support for the efforts by participating AOC units, and acting to  resolve any impediments that may arise. Since then, AOC has continued to make progress in implementing our  recommendations, but important work remains in five basic areas of  information security management. Over the 6 months we reviewed, AOC made progress in developing  performance measures to track the agency’s worker safety efforts, but the  implementation of these measures is a work in progress. AOC Has Taken Steps to Develop a Capitol Complex Master Plan, but Lack of Congressional and Other Stakeholder Involvement and Delays Hamper Additional Progress

Developing a Capitol complex master plan is critical to strategic project  management because it would help facilitate consistent management and  oversight of projects and establish long-term priorities. AOC has made progress toward developing a mission and goals for its  recycling programs in accordance with our January 2003 recommendation. The COO Action Plan,  however, was not submitted to the committees until December 22, 2003— 59 days late. Overall, the plan’s high-level description of the action items assumes that  Congress and other users have a deep and detailed knowledge of AOC’s  goals, internal operations, and management functions—a level of  knowledge that is not reasonable to expect. As part of this effort, the Architect and the COO  should work with Congress to determine Congress’ information needs and  the timing and format of delivery of that information that will best meet  Congress’ needs. AOC has made progress in addressing the  eight key management control issues and the corresponding  recommendations outlined in this report; however, AOC management will  need to build on its efforts to date and more fully engage congressional and  other stakeholders to ensure that their interests and expectations are  incorporated into AOC’s organizational transformation.
Why GAO Did This Study

The Conference Report on the Consolidated Appropriations Resolution, 2003, directed GAO to monitor AOC's progress in implementing recommendations contained in GAO's management review of AOC's operations, issued in January 2003. This is the second status report in which GAO examines the actions taken by AOC to implement selected GAO recommendations. Additionally, the Consolidated Appropriations Resolution, 2003, mandated GAO to assess AOC's Chief Operating Officer's (COO) action plan. This report provides that assessment.

What GAO Found

AOC has made progress on key management control issues, but substantial work remains to achieve sustained, long-term management improvements and organizational transformation. These key issues include (1) stakeholder involvement, (2) employee communications, (3) auditable financial statements and related internal controls, (4) financial reporting for operating units and cost accounting, (5) information security management, (6) worker safety performance measures, (7) Capitol complex master planning, and (8) strategic management of recycling. For example, AOC has not fully engaged its congressional and other stakeholders in developing a clear, transparent, and documented understanding of how AOC sets project priorities and how progress will be assessed. AOC has taken some steps to involve its stakeholders by delivering planning documents and responding to requests for information. AOC has made progress addressing employee communications issues and can maintain momentum by fully and effectively implementing its planned initiatives. AOC has made progress in preparing auditable agencywide financial statements; however, it has deferred the audit of a complete set of financial statements from fiscal year 2004 to fiscal year 2005. Also, substantial work remains before AOC can provide its managers with the meaningful financial, cost, and performance information needed to enhance their management of operating units. AOC has continued to make some progress establishing the management foundation for effective information security management, but much remains to be accomplished, such as completing system risk assessments and monitoring and evaluating its security policies and controls. Additionally, AOC has developed performance measures to track worker safety, but work remains to ensure successful implementation of these measures. In regard to project management, AOC has taken steps to develop a Capitol complex master plan and expects it to be available for stakeholder comment in February 2006. Given the importance of the master plan, stakeholder involvement early in and throughout its development is key to the plan's ultimate acceptance and value. Similarly, AOC has made progress developing a mission statement and goals for its recycling program as part of its broader Environmental Program Plan, although AOC does not expect to obtain congressional input until after the plan has been completed--an important omission. The Architect and the COO need to work with Congress to determine Congress' information needs--with a specific focus on AOC's project management--and the timing and format of delivery of that information that will best meet Congress' needs. The COO Action Plan was submitted to Congress on December 22, 2003--59 days late. Overall, the plan's high-level description of action items assumes that Congress and other users have a deep and detailed knowledge of AOC's goals, internal operations, and management functions--a level of knowledge that is not reasonable to expect.