	High-Risk Areas Making Progress

Since our last high-risk update, while progress has varied, many of the 32  high-risk areas on our 2015 list have shown solid progress. As shown in table 1, 23 high-risk areas, or  two-thirds of all the areas, have met or partially met all five criteria for  removal from our High-Risk List; 15 of these areas fully met at least one  criterion. In two other areas,  enough progress was made that we removed a segment of the high-risk  area—Mitigating Gaps in Weather Satellite Data and Department of  Defense (DOD) Supply Chain Management. The other eight areas  improved in at least one criterion rating by either moving from “not met” to  “partially met” or from “partially met” to “met.”

			One High-Risk Designation Removed

We removed the area of Establishing Effective Mechanisms for Sharing  and Managing Terrorism-Related Information to Protect the Homeland  from the High-Risk List because the Program Manager for the Information  Sharing Environment (ISE) and key departments and agencies have  made significant progress to strengthen how intelligence on terrorism,  homeland security, and law enforcement, as well as other information  (collectively referred to in this section as terrorism-related information), is  shared among federal, state, local, tribal, international, and private sector  partners. Accordingly, there is  sufficient progress to remove this segment from the high-risk area. The IRIS program has made some progress on the capacity,  monitoring, and demonstrated progress criteria. Effective implementation of FITARA is  central to making progress in the Improving the Management of IT  Acquisitions and Operations government-wide area we added to the  High-Risk List in 2015. High-Risk Areas Highlighted for Significant Attention

In the 2 years since the last high-risk update, two areas—Mitigating Gaps  in Weather Satellite Data and Management of Federal Oil and Gas  Resources—have expanded in scope because of emerging challenges  related to these overall high-risk areas. DOD Financial Management. The effects of DOD’s financial  management problems extend beyond financial reporting and  negatively affect DOD’s ability to manage the department and make  sound decisions on mission and operations. Resolving the role of the federal  government in housing finance will require leadership commitment  and action by Congress and the administration. Ensuring the Security of Federal Information Systems and Cyber  Critical Infrastructure and Protecting the Privacy of Personally  Identifiable Information. New High-Risk Areas

For 2017, we are adding three new areas to the High-Risk List. Improving Federal Management of Programs That Serve Tribes and Their Members

We, along with inspectors general, special commissions, and others,  have reported that federal agencies have ineffectively administered Indian  education and health care programs, and inefficiently fulfilled their  responsibilities for managing the development of Indian energy  resources. In particular, we have found numerous challenges facing  Interior’s Bureau of Indian Education (BIE) and Bureau of Indian Affairs  (BIA) and the Department of Health and Human Services’ (HHS) Indian  Health Service (IHS) in administering education and health care services,  which put the health and safety of American Indians served by these  programs at risk. For fiscal year 2016,  the federal government’s estimated environmental liability was $447  billion—up from $212 billion for fiscal year 1997. Since 1994, we  have made at least 28 recommendations related to addressing the federal  government’s environmental liability. Of these, 13  recommendations remain unimplemented. Agencies spend billions each year on environmental cleanup efforts but  the estimated environmental liability continues to rise. This recommendation has not been  implemented. This recommendation  has not been implemented. Over the past 3 years, we have  made 30 recommendations to help the Bureau design and implement a  more cost-effective census for 2020; however, only 6 of them had been  fully implemented as of January 2017. The cost of the census, in terms of cost for counting each housing unit,  has been escalating over the last several decennials. The 2010 Census  was the costliest U.S. Census in history at about $12.3 billion, and was  about 31 percent more costly than the $9.4 billion cost of the 2000  Census (in 2020 dollars). The Bureau plans to implement several new innovations in its design of  the 2020 Census. What Needs to Be Done

To help the Bureau mitigate the risks associated with its fundamentally  new and complex innovations for the 2020 Census, the commitment of  top leadership is needed to ensure the Bureau’s management, culture,  and business practices align with a cost-effective enumeration.
Why GAO Did This Study

The federal government is one of the world's largest and most complex entities: about $3.9 trillion in outlays in fiscal year 2016 funded a broad array of programs and operations. GAO's high-risk program identifies government operations with greater vulnerabilities to fraud, waste, abuse, and mismanagement or the need for transformation to address economy, efficiency, or effectiveness challenges.
This biennial update describes the status of high-risk areas listed in 2015 and actions that are still needed to assure further progress, and identifies new high-risk areas needing attention by Congress and the executive branch. Solutions to high-risk problems potentially save billions of dollars, improve service to the public, and strengthen government performance and accountability.
GAO uses five criteria to assess progress in addressing high-risk areas: (1) leadership commitment, (2) agency capacity, (3) an action plan, (4) monitoring efforts, and (5) demonstrated progress.

What GAO Found

Since GAO's last high-risk update, many of the 32 high-risk areas on the 2015 list have shown solid progress. Twenty-three high-risk areas, or two-thirds of all the areas, have met or partially met all five criteria for removal from the High-Risk List; 15 of these areas fully met at least one criterion. Progress has been possible through the concerted efforts of Congress and leadership and staff in agencies. For example, Congress enacted over a dozen laws since GAO's last report in February 2015 to help address high-risk issues.
GAO removed 1 high-risk area on managing terrorism-related information, because significant progress had been made to strengthen how intelligence on terrorism, homeland security, and law enforcement is shared among federal, state, local, tribal, international, and private sector partners. Sufficient progress was made to remove segments of 2 areas related to supply chain management at the Department of Defense (DOD) and gaps in geostationary weather satellite data.
Two high-risk areas expanded—DOD's polar-orbiting weather satellites and the Department of the Interior's restructuring of offshore oil and gas oversight. Several other areas need substantive attention including VA health care, DOD financial management, ensuring the security of federal information systems and cyber critical infrastructure, resolving the federal role in housing finance, and improving the management of IT acquisitions and operations.
GAO is adding 3 areas to the High-Risk List, bringing the total to 34:
Management of Federal Programs That Serve Tribes and Their Members. GAO has reported that federal agencies, including the Department of the Interior's Bureaus of Indian Education and Indian Affairs and the Department of Health and Human Services' Indian Health Service, have ineffectively administered Indian education and health care programs and inefficiently developed Indian energy resources. Thirty-nine of 41 GAO recommendations on this issue remain unimplemented.
U.S. Government's Environmental Liabilities. In fiscal year 2016 this liability was estimated at $447 billion (up from $212 billion in 1997). The Department of Energy is responsible for 83 percent of these liabilities and DOD for 14 percent. Agencies spend billions each year on environmental cleanup efforts but the estimated environmental liability continues to rise. Since 1994, GAO has made at least 28 recommendations related to this area; 13 are unimplemented.
The 2020 Decennial Census. The cost of the census has been escalating over the last several decennials; the 2010 Census was the costliest U.S. Census in history at about $12.3 billion, about 31 percent more than the 2000 Census (in 2020 dollars). The U.S. Census Bureau (Bureau) plans to implement several innovations—including IT systems—for the 2020 Census. Successfully implementing these innovations, along with other challenges, risk the Bureau's ability to conduct a cost-effective census. Since 2014, GAO has made 30 recommendations related to this area; however, only 6 have been fully implemented.
GAO's 2017 High-Risk List

What GAO Recommends

This report contains GAO's views on progress made and what remains to be done to bring about lasting solutions for each high-risk area. Perseverance by the executive branch in implementing GAO's recommended solutions and continued oversight and action by Congress are essential to achieving greater progress.