The act defined the department’s missions to include  preventing terrorist attacks within the United States; reducing U.S.  vulnerability to terrorism; and minimizing the damages and assisting in the  recovery from attacks that occur within the United States. DHS began operations in March 2003. We also reported on broad themes that have underpinned  DHS’s implementation efforts, such as agency transformation, strategic  planning, and risk management. DHS Has Made Progress in Implementing Its Management and Mission Functions but Has Faced Challenges in Its Implementation Efforts

DHS has made progress in implementing its management and mission  functions in the areas of acquisition, financial, human capital, information  technology, and real property management; border security; immigration  enforcement; immigration services; aviation, surface transportation, and  maritime security; emergency preparedness and response; critical  infrastructure and key resources protection; and science and technology. Overall, DHS made more progress in implementing its mission functions  than its management functions, reflecting an initial focus on implementing  efforts to secure the homeland. Mission Areas

Border Security. Surface Transportation Security. Although DHS has made progress in these areas, it has  faced challenges in sharing information and warnings on attacks, threats,  and vulnerabilities and in providing and coordinating incident response  and recovery planning efforts. DHS has taken steps to coordinate  and share homeland security technologies with federal, state, local, and  private sector entities. We have reported that  while it is important that DHS continue to work to strengthen each of its  core management and mission functions, it is equally important that these  key issues be addressed from a comprehensive, departmentwide  perspective to help ensure that the department has the structure and  processes in place to effectively address the threats and vulnerabilities  that face the nation. Agency Transformation

DHS has faced an enormous management challenge in its transformation  efforts as it works to integrate 22 component agencies. Nevertheless, in 2007 we reported that DHS’s  implementation and transformation remained high-risk because DHS had  not yet developed a comprehensive management integration strategy and  its management systems and functions⎯especially related to acquisition,  financial, human capital, and information management⎯were not yet fully  integrated and wholly operational. According to the Homeland Security  Act of 2002, as amended, DHS is required to develop a transition and  succession plan to guide the transition of management functions to a new  Administration by December 2008. DHS is working to develop and  implement plans and initiatives for managing the transition. Since the issuance of our  August 2007 report, DHS has begun to develop performance goals and  measures for some areas in an effort to strengthen its ability to measures  its progress in key management and mission areas. We commend DHS’s  efforts to measure its progress in these areas and have agreed to work  with the department to provide input to help strengthen established  measures. Such a  transformation is a difficult undertaking for any organization and can take,  at a minimum, 5 to 7 years to complete even under less daunting  circumstances. Nevertheless, DHS’s 5-year anniversary provides an opportunity for the  department to review how it has matured as an organization. As part of  our broad range of work reviewing DHS management and mission  programs, we will continue to assess in the coming months DHS’s progress  in addressing high-risk issues. In particular, we will continue to assess the  progress made by the department in its transformation and information  sharing efforts.
Why GAO Did This Study

The Department of Homeland Security (DHS) began operations in March 2003 with missions that include preventing terrorist attacks from occurring within the United States, reducing U.S. vulnerability to terrorism, minimizing damages from attacks that occur, and helping the nation recover from any attacks. GAO has reported that the implementation and transformation of DHS is an enormous management challenge and that the size, complexity, and importance of the effort make the challenge especially daunting and critical to the nation's security. GAO's prior work on mergers and acquisitions found that successful transformations of large organizations, even those faced with less strenuous reorganizations than DHS, can take at least 5 to 7 years to achieve. This testimony is based on GAO's August 2007 report evaluating DHS's progress between March 2003 and July 2007, selected reports issued since July 2007, and our institutional knowledge of homeland security issues.

What GAO Found

Since its establishment, DHS has made progress in implementing its management and mission functions in the areas of acquisition, financial, human capital, information technology, and real property management; border security; immigration enforcement and services; aviation, surface transportation, and maritime security; emergency preparedness and response; critical infrastructure protection; and science and technology. In general, DHS has made more progress in its mission areas than in its management areas, reflecting an initial focus on protecting the homeland. While DHS has made progress in implementing its functions in each management and mission area, we identified challenges remaining in each of these areas. These challenges include providing appropriate oversight for contractors; improving financial management and controls; implementing a performance-based human capital management system; implementing information technology management controls; balancing trade facilitation and border security; improving enforcement of immigration laws, enhancing transportation security; and effectively coordinating the mitigation and response to all hazards. Key issues that have affected DHS's implementation efforts are agency transformation, strategic planning and results management, risk management, information sharing, partnerships and coordination, and accountability and transparency. For example, GAO designated DHS's implementation and transformation as high-risk. While DHS has made progress in transforming its component agencies into a fully functioning department, it has not yet addressed key elements of the transformation process, such as developing a comprehensive transformation strategy. The Homeland Security Act of 2002, as amended, requires DHS to develop a transition and succession plan to guide the transition of management functions to a new Administration; DHS is working to develop and implement its approach for managing the transition. DHS has begun to develop performance goals and measures in some areas in an effort to strengthen its ability to measure its progress in key areas. We commend DHS's efforts and have agreed to work with the department to provide input to help strengthen established measures. DHS also has not yet fully adopted and applied a risk management approach in implementing its mission functions. Although some DHS components have taken steps to do so, this approach has not yet been implemented departmentwide. DHS's 5-year anniversary provides an opportunity for the department to review how it has matured as an organization. As part of our broad range of work reviewing DHS's management and mission programs, GAO will continue to assess DHS's progress in addressing high-risk issues. In particular, GAO will continue to assess the progress made by the department in its transformation and information sharing efforts.