Most of the initiatives do not have direct  appropriations but rely instead on a variety of alternative funding  strategies. Table 1 summarizes the funding strategies employed by the 25  OMB-sponsored e-gov initiatives in fiscal years 2003 and 2004. Although Agencies Generally Contributed Amounts as Planned, Shortfalls Nevertheless Occurred

For fiscal years 2003 and 2004, agencies generally made funding  contributions in the amounts originally planned by the managing partners  of the 10 initiatives that relied on funding contributions. Although most contributions were made in the amounts planned, 6 of the  10 initiatives experienced funding shortfalls from their planned budgets in  fiscal year 2003, and 9 experienced shortfalls in fiscal year 2004. The  rationale provided by agencies for contributions that were less than  planned included (1) substitution of in-kind resources in lieu of funds,  (2) lack of budget guidance from OMB reflecting the original planned  amounts, (3) inability to obtain congressional approval to reprogram funds  from other accounts, and (4) organizational realignments associated with  creation of DHS in fiscal year 2003. The e-Rulemaking initiative,  managed by EPA, received only $5,850,208 (51 percent) of its planned  fiscal year 2004 budget of $11,505,000 in partner agency contributions. In  providing a rationale for contributions made late in the fiscal year, officials  from both managing and funding partner agencies reported that the  administrative burden associated with drafting, negotiating, and signing  interagency agreements, as well as the timing of appropriations bill  enactment, contributed to these delays. Officials from 5 of the 10 initiatives that relied on  funding contributions from partner agencies specifically cited the  administrative burden as a factor in interagency agreements being reached  in the third and fourth quarters of the fiscal year. Appendix I: Objectives, Scope, and Methodology

Our objectives were, for fiscal years 2003 and 2004, to (1) determine  whether federal agencies made contributions in the amounts planned to  the 10 e-gov initiatives that relied on such contributions, and (2) determine  the timing of these contributions and reasons for any contributions made  late in each fiscal year. E-Rulemaking officials reported that the resulting shortfall in funds,  compounded with delays in receiving funds from other agencies, required  them to scale back agency migration to the Federal Docket Management  System (FDMS), the centerpiece of the initiative. According to OMB officials, the planned allocation for GovBenefits was  erroneously not included in its annual budget guidance to DHS.
Why GAO Did This Study

In accordance with the President's Management Agenda, the Office of Management and Budget (OMB) has sponsored initiatives to promote electronic government--the use of information technology, such as Web-based Internet applications, to enhance government services. Generally, these "e-gov" initiatives do not have direct appropriations but depend on a variety of funding sources, including monetary contributions from participating agencies. GAO was asked to review the funding of e-gov initiatives that relied on such contributions: specifically, to determine, for fiscal years 2003 and 2004, whether agencies made contributions in the amounts planned and to determine the timing of these contributions.

What GAO Found

Most federal agencies contributed funds as originally planned by the managing partners of the 10 initiatives that relied on such contributions in fiscal years 2003 and 2004. Nevertheless, 6 of the 10 initiatives experienced shortfalls from their funding plans in fiscal year 2003 and 9 in 2004. The rationale provided by agencies for contributions that were less than planned included: (1) substitution of in-kind resources in lieu of funds, (2) lack of budget guidance from OMB reflecting planned funding amounts, (3) inability to obtain permission to reprogram funds from other accounts, and (4) organizational realignments associated with creation of the Department of Homeland Security in fiscal year 2003. For example, the e-Rulemaking initiative (managed by the Environmental Protection Agency) received only 51 percent of its planned fiscal year 2004 contributions. Although the initiative's funding plan called for adding new funding partners in that year, OMB did not reflect this expansion when it issued its annual budget guidance to agencies. As a result, the newly added agencies generally did not contribute. According to E-Rulemaking officials, the resulting shortfall in funds, along with delays in receiving funds from other agencies, required them to significantly scale back their plans. In most cases, fiscal year 2003 and 2004 contributions from partner agencies were made in the third and fourth quarters of the fiscal year. Agency officials identified the administrative burden associated with drafting, negotiating, and signing interagency agreements, as well as the delayed enactment of the fiscal year 2003-2004 appropriations bills, as contributing to this timing of contributions. However, according to officials from several agencies, although the administrative burden is still high, agencies have become more accustomed to funding strategies based on partner agency contributions.