	DHS Has Made Progress in Strengthening Its Management Functions, but Considerable Work Remains

		DHS Progress in Meeting Criteria for Removal from the High-Risk List

DHS’s efforts to strengthen and integrate its management functions have  resulted in progress addressing our criteria for removal from the high-risk  list. DHS subsequently met an additional criterion—establishing a  framework for monitoring progress—and therefore as of March 2016, has  met three criteria and partially met the remaining two criteria, as shown in  table 1. We found that DHS has established a plan for  addressing this high-risk area. For example, the January  2016 strategy update includes an initiative focused on financial systems  modernization and an initiative focused on IT human capital  management. DHS Progress in Achieving Key High-Risk Actions and Outcomes

Key to addressing the department’s management challenges is DHS  demonstrating the ability to achieve sustained progress across the 30  actions and outcomes we identified and DHS agreed were needed to  address the high-risk area. We made 14 recommendations to  DHS to, among other things, address HRIT’s poor progress and  ineffective management. In doing so, it will be important for DHS  to maintain its current level of top leadership support and sustained  commitment to ensure continued progress in executing its corrective  actions through completion;  continue to implement its plan for addressing this high-risk area and  periodically report its progress to us and Congress; identify and work to mitigate any resource gaps and prioritize  initiatives as needed to ensure it can implement and sustain its  corrective actions; closely track and independently validate the effectiveness and  sustainability of its corrective actions and make midcourse  adjustments as needed; and make continued progress in achieving the 20 actions and outcomes it  has not fully addressed and demonstrate that systems, personnel,  and policies are in place to ensure that results can be sustained over  time. DHS Continues to Strengthen Acquisition Management, Though Key Efforts Need to Be Completed

Each year, DHS invests billions of dollars in its major acquisition  programs to help execute its many critical missions. In fiscal year 2015  alone, DHS reported that it planned to spend approximately $7.2 billion  on these acquisition programs, and the department expects it will  ultimately invest more than $180 billion in them. 2012 to 2015: DHS Continued to Strengthen Acquisition Management, Which Highlighted Remaining Issues

DHS has concurred with and presented plans for addressing all of the  acquisition management recommendations that we have addressed to  the Secretary since September 2012, the implementation of which will  enhance acquisition management. DHS has since implemented this  recommendation. DHS concurred with these recommendations and is taking  actions to implement them. To ensure that recent efforts are sustained, the department must continue  to implement its sound acquisition policy consistently and effectively  across all components. Key contributors for the previous work  that this testimony is based on are listed in each product. GAO-16-253. Department of Homeland Security: Progress Made; Significant Work  Remains in Addressing High-Risk Areas.
Why GAO Did This Study

In 2003, GAO designated implementing and transforming DHS as high risk because the failure to address risks associated with transforming 22 agencies into one department could have serious consequences for U.S. national and economic security. While challenges remain, DHS has made considerable progress. As a result, in 2013 GAO narrowed the scope of the high-risk area to focus on strengthening and integrating DHS management functions (human capital, acquisition, financial, and information technology). This statement discusses DHS's progress and actions remaining in addressing these functions with a focus on acquisition management. In fiscal year 2015 alone, DHS reported that it planned to spend approximately $7.2 billion on its major acquisition programs to help execute its many critical missions. This statement is based on GAO's 2015 high-risk update, GAO products from 2005 through 2016, and selected updates from ongoing work. To conduct past and ongoing work we reviewed key documents such as DHS strategies and interviewed agency officials.

What GAO Found

The Department of Homeland Security's (DHS) efforts to strengthen and integrate its management functions have resulted in it meeting three and partially meeting two of GAO's criteria for removal from the high-risk list (see table).
For example, DHS has established a plan for addressing the high-risk area and a framework for monitoring its progress in implementing the plan. However, DHS needs to show additional results in other areas, including demonstrating the ability to achieve sustained progress across 30 outcomes that GAO identified and DHS agreed were needed to address the high-risk area. As of March 2016, DHS had fully addressed 10 of these outcomes but work remained in 20.
GAO has reported on DHS's acquisition management for over 10 years. The department has struggled to effectively manage its major programs, including ensuring that all major acquisitions had approved baselines and that they were affordable. GAO has noted significant progress in recent reviews (see table). This progress is largely attributable to sustained senior leadership attention.
Source: GAO analysis of DHS documents, interviews, and prior GAO reports. | GAO-16-507T
To ensure that recent efforts are sustained, the department must continue to implement its sound acquisition policy consistently and effectively across all components. GAO has made numerous recommendations in this regard, which DHS has concurred with and is taking actions to implement.

What GAO Recommends

This testimony contains no new recommendations. GAO has made about 2,400 recommendations to DHS since 2003 to strengthen management efforts, among other things. DHS has implemented more than 70 percent of these recommendations, including those related to acquisition management, and has actions under way to address others.