The “One VA” vision is to  create versatile new ways for veterans to obtain services and  information by streamlining interactions with customers and  integrating IT resources to enable VA employees to help customers  more quickly and effectively. Table 1 shows a breakdown of VA’s approximately $2.1 billion IT  budget request for fiscal year 2006. However, fully exploiting this  potential presents challenges to agencies. One of the ways in which the  Congress has addressed this issue was to establish the CIO position;  an agency’s CIO is to serve as the focal point for information and  technology management within an agency. At the major departments and  agencies included in our review, the median time in the position of  permanent CIOs whose time in office had been completed was  about 23 months. Success Factors and Challenges of CIOs

To allow CIOs to serve effectively in the key leadership role  envisioned by the Congress, federal agencies should use the full  potential of CIOs as information and technology management  leaders and active participants in the development of the agency’s  strategic plans and policies. ●  Effective IT management. The CIO Position in the Private Sector Has Similarities to the Federal CIO Position

In September 2005, we reported the results of our study of CIOs at  leading private-sector organizations, in which we described the  CIOs’ responsibilities and major challenges, as well as private-sector  approaches to information and technology governance. In most areas, there was  little difference between the private and federal sectors in the  percentage of CIOs who had or shared a particular responsibility. Improving various IT management processes was mentioned by  several private-sector CIOs (e.g., IT investment decision making) as  well as by federal CIOs, as was developing IT leadership and skills. In technology-related areas, both private-sector and federal CIOs  mentioned working with enterprise architectures and ensuring the  security of systems as challenges. Roles and Responsibilities of the CIO Position at VA Have Evolved over Time

Since enactment of the Clinger-Cohen Act in 1996, the roles and  responsibilities of VA’s Chief Information Officer have evolved. In August 2001, VA filled the CIO position. VA Proposed to Realign its IT Organization in Response to IT Management Challenges

Our prior work highlighted some of the challenges that the CIO  faced as a result of the way the department was organized to carry  out its IT mission. Among these challenges was that information  systems and services were highly decentralized, and the VA  administrations and staff offices controlled a majority of the  department’s IT budget. Although we have not reviewed the current status of this proposed  realignment or VA’s current organizational structure, it remains our  view that the proposed realignment held promise for building a  more solid foundation for investing in and improving the  department’s accountability over IT resources. In our view, the realignment of VA’s IT  organization proposed in 2002 held promise for improving  accountability and enabling the department to accomplish its  mission.
Why GAO Did This Study

In carrying out its mission of serving the nation's veterans and their dependents, the Department of Veterans Affairs (VA) relies extensively on information technology (IT), for which it is requesting about $2.1 billion in fiscal year 2006. VA's vision is to integrate its IT resources and streamline interactions with customers, so that it can provide services and information to veterans more quickly and effectively. Fully exploiting the potential of IT to improve performance is a challenging goal for VA, as it is throughout government. The Clinger-Cohen Act of 1996 addressed this challenge by, among other things, establishing the position of chief information officer (CIO) to serve as the focal point for information and technology management within departments and agencies. As agreed with Congress, GAO will discuss the role of CIOs in the federal government and in the private sector, as well as provide a historical perspective on the roles and responsibilities of VA's CIO. In developing this testimony, GAO relied on its previous work at VA and on the CIO role, including a 2004 review of CIOs at major departments and agencies and a 2005 review of CIOs at leading private-sector organizations.

What GAO Found

In the federal government and in the private sector, the responsibilities and challenges of CIOs are largely similar. In most management areas, the federal and private-sector organizations reviewed showed little difference in the percentage of CIOs who had or shared a particular responsibility. The challenges cited by private-sector CIOs were also similar to those of federal CIOs: both groups cited improving IT management processes, developing IT leadership and skills, working with enterprise architectures, and ensuring the security of systems. Over time, VA has increased its attention to the CIO position and to information and technology management. After several years with CIOs whose primary duty was not information and technology management or who were serving in an acting capacity, the department appointed a full-time permanent CIO in August 2001. VA also recognized that its decentralized computing environment presented challenges, with a large proportion of the department's IT budget controlled by its administrations and staff offices. As a result, in 2002, the department proposed a realignment to strengthen the department-level CIO position and centralize IT management under this official. GAO has not reviewed the current status of this proposed realignment or VA's current organizational structure, but its view is that the realignment held promise for improving accountability and helping to accomplish VA's mission by increasing the CIO's oversight over IT management and spending.