A focus on the quality of program performance and effective  management is critical today, and now is the time to act. The President has identified five crosscutting management initiatives that  are interrelated and support each other. These five initiatives are:  strategic human capital management,   budget and performance integration,   expanded electronic government, and   competitive sourcing. Considerable progress has been made in this area  since we designated it as high risk in 2001. Serious human capital shortfalls, however, continue to erode the ability of  many agencies, and threaten the ability of others, to economically,  efficiently, and effectively perform their missions. Such efforts to  begin implementing a consistent and transparent framework for  performance budgeting and financial information are key steps needed to  provide a greater focus on performance and improve congressional  decision making as envisioned in GPRA, but the federal government has a  long way to go before it can meet these goals. Integrating management and performance issues with budgeting is  absolutely critical for progress in government performance and  management. Improved Financial Performance

The PMA initiative to improve financial performance is aimed at ensuring  that federal financial systems produce accurate and timely information to  support operating, budget, and policy decisions. Nevertheless, much  work remains to be done, given the magnitude of its challenges to  safeguard program payments. Expanded Electronic Government

Electronic government (e-government) offers many opportunities to better  serve the public, make government more efficient and effective, and reduce  costs. Although  substantial progress has been made, the government has not yet fully  reached its potential in this area. In order to help ensure the success of the President’s objective of  expanding e-government to improve the potential value of government to  citizens, we have recommended that the Director of OMB ensure that the  managing partners for all e-government initiatives (1) focus on customers  by soliciting input from the public and conducting user needs assessments,  (2) work with partner agencies to develop and document effective  collaboration strategies, and (3) provide OMB with adequate information to  monitor the cost, schedule, and performance. Competitive Sourcing

As part of the PMA initiative to achieve efficient and effective competition  between public and private sources, the administration has committed to  simplifying and improving the procedures for evaluating public and private  sources. As part of the administration’s efforts to advance this PMA initiative and  implement the recommendations of the Commercial Activities Panel, OMB  published proposed changes to Circular A-76 for public comment. There are several areas, however, where the proposed revisions to the  circular were not consistent with the principles or recommendations of the  panel. Congressional support has proven to be critical in sustaining interest in  management initiatives over time.
Why GAO Did This Study

As part of its work to improve the management and the performance of the federal government, GAO monitors progress and continuing challenges related to the five crosscutting initiatives in the President's Management Agenda (PMA). The President cited GAO's high-risk areas and major management challenges in developing these initiatives. GAO remains committed to working with the Congress and the Administration to help address these complex issues.

What GAO Found

There has been continuing progress in implementing the five crosscutting PMA initiatives to improve the management and performance of the federal government. However, progress has been uneven, and a continuing focus is needed to improve the management and performance of the federal government and ensure accountability. These five crosscutting PMA initiatives are interrelated and must be addressed in an integrated way. Strategic human capital management: Considerable progress has been made in this area since we designated it as high risk in 2001. Serious human capital shortfalls, however, continue to erode the ability of many agencies, and threaten the ability of others, to economically, efficiently, and effectively perform their missions. Budget and performance integration: The administration has set forth an ambitious agenda for performance budgeting but the federal government has a long way to go before it can meet its goals. More explicitly infusing performance information into resource allocation decisions is critical for further progress in government performance and management. Improved financial performance: This initiative is aimed at ensuring that federal financial systems produce accurate and timely information to support operating, budget, and policy decisions. Although a range of improvements is under way, much work remains to be done across government. Expanded electronic government: E-government offers many opportunities to better serve the public, make government more efficient and effective, and reduce costs. Although substantial progress has been made, the government has not yet fully reached its potential in this area. Competitive sourcing: The administration has committed to using competitions to determine whether public or private sources should provide commercial services. OMB has proposed changes to the procedures for conducting public-private competitions under its Circular A-76. However, some of the proposed changes are not consistent with sourcing principles or recommendations of the Commercial Activities Panel. Congressional support has proven to be critical in sustaining interest in management initiatives over time. A focus on the quality of program performance and effective management is critical today, and now is the time to act.