Agencies collect this  information to ensure that the public is kept safe from harm, that qualified  recipients receive benefits to which they are entitled, and that agencies  otherwise fulfill their respective missions. Public Comment and Consultation

The PRA requires agencies to solicit public input on their ICRs as a  means of validating their burden estimates. Among our four agencies, IRS was the only one  to report gathering original data on public burden through surveys of  individual taxpayers and businesses to help inform the estimates for its  two largest ICRs. In cases where data did not exist to inform burden hour estimates, such  as for average burden time per response, the selected agencies relied on  their professional judgment to develop estimates, informed in some  instances by internal consultation or public input. Of the 200 ICRs reviewed (including the 8 largest ICRs), 76  ICRs did not include respondent time cost estimates. Specifically, of the 50 ICRs with the largest burden hours at each agency,  we found agencies did not include total annual respondent time costs for  IRS—all 50, including its 2 largest ICRs;
DOT—19, including its 2 largest ICRs;
HHS—5, including its second-largest ICR; and
USDA—2 ICRs. OMB requires agencies to include estimated respondent time costs in the  ICR supporting statements. Such underestimation could  contribute to inconsistent implementation of Executive Order 13771. Agencies’ Independent Review Processes Did Not Detect Errors in Burden and Cost Estimates or Other Discrepancies

While our selected agencies reported having multiple levels of  independent review processes in place as part of the overall process for  preparing ICR burden estimates, we found instances where USDA, HHS,  and DOT did not detect math errors or inconsistencies. In the examples above, both OMB and agencies reviewed and approved  the ICRs—including some of the largest ICRs at each of the agencies— but did not detect or address the math errors in the supporting  statements, inconsistencies between published estimates in supporting  statements and Reginfo.gov, or missing supporting statements during the  review process, allowing incorrect burden hour and cost estimates to be  publicly released. Agencies Did Not Always Consult with the Public beyond Public Notices and Did Not Solicit Input about Burden Estimates

The agencies we reviewed did not always consult with the public on  information collections beyond Federal Register notices, as required by  the PRA and regulations. However, only 6 of these 113 ICR  supporting statements—4 at USDA and 2 at DOT—indicated that public  outreach was related to the burden hour estimates, despite OMB’s  guidance. However, given OMB’s continued disagreement with our 2005  recommendation, congressional action may be needed to clarify the  language in the PRA to more explicitly require federal agencies to consult  with potential respondents on each information collection beyond the  publication of Federal Register notices. If the agencies’ and OMB’s  review processes do not detect mathematical errors and inconsistencies,  then Congress and the public may have inaccurate or incomplete  information on the estimated burden imposed by an information collection  may result in less confidence in agencies’ abilities to accurately compute  and report the burden and as such, less confidence in agencies’ ability to  effectively manage and minimize the burden they impose on the public. OMB could help ensure that agencies more consistently obtain valuable  public input on each of their ICRs by providing guidance directing  agencies to consult with the public beyond the Federal Register notices  on every ICR, as required in the PRA and as we previously  recommended. However, while we consider the PRA requirement  regarding public consultation in addition to the 60-day Federal Register  notice for each ICR to be clear, OMB continues to believe that additional  consulting should occur for those ICRs where important information may  be missed by the public notice and comment period. The Director of OMB should ensure the consistent application of the  requirement for respondent time costs, including clarifying instructions for  when and how to include fringe benefits. In response to our recommendation on providing the public with sufficient  information in its public notices to allow the public to evaluate an ICR’s  burden, IRS acknowledged that public notices issued before February  2017 may not have included all the elements needed by the public to be  able to evaluate the burden estimates (number of respondents, frequency  of response, and average burden time per response). At that time, we will send copies to the appropriate  congressional committees, the Director of the Office of Management and  Budget; the Secretaries of the Departments of Agriculture, Health and  Human Services, and Transportation; and the Commissioner of the  Internal Revenue Service, and other interested parties. Key contributors to  this report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

This report examines (1) how agencies estimate both the burden hours  and costs of their information collections, and any limitations of their  approaches, and (2) the extent to which agencies consult with and  receive comments from the public on the collections’ estimated burden. We interviewed agency  officials and OMB staff about the discrepancies between these two  information sources.
Why GAO Did This Study

Federal agencies collect a wide variety of information to ensure the public is kept safe from harm, receives benefits to which they are entitled, and fulfill their missions. Such collections can also impose significant burdens on the public. The goal of the PRA is to minimize the burden of these collections and maximize their utility. To help accomplish this, the PRA requires agencies to estimate the burden, and consult with the public on these estimates.
This report examines (1) how agencies estimate burden hours and costs of their collections, and any limitations of agencies' approaches; and (2) the extent to which agencies consult with the public on estimated burden. To address these objectives, GAO selected four agencies with the largest burden hour estimates, reviewed the 50 ICRs with the largest burden hour estimates at each agency, with a focus on the 2 largest ICRs at each as case studies, and interviewed agency officials and OMB staff.

What GAO Found

Agencies GAO reviewed—the Departments of Agriculture (USDA), Health and Human Services (HHS), and Transportation (DOT), and the Internal Revenue Service (IRS)—generally used existing data, such as historical data, to estimate the time, or “burden hours,” it takes for the public to complete an information collection request (ICR). IRS reported gathering original data on public burden through surveys of taxpayers to help estimate the burden for its two largest ICRs. When data were unavailable for one or more elements of the burden calculation (e.g., average time per response), agencies relied on professional judgment, informed in some instances by internal consultation with issue area experts.
GAO found two limitations with the agencies' current approaches for estimating burden. First, 76 of 200 ICRs that GAO reviewed, including the 2 largest ICRs at IRS and DOT, did not translate burden hours into dollars, or estimated “respondent time costs.” Although the Office of Management and Budget (OMB) requires agencies to include these costs, it reviewed and approved all 76 ICRs. ICRs that included respondent time costs did not consistently include fringe benefits, such as insurance contributions, in part because of a lack of clear guidance from OMB. Inconsistencies in estimating respondent time costs could lead to inconsistent implementation of new requirements under Executive Order 13771 that agencies offset the incremental costs of new regulations with reductions in regulatory burden, including paperwork burden, elsewhere.
Second, while all agencies and OMB reported having independent review processes in place, as required by the Paperwork Reduction Act (PRA), GAO found instances where 3 of the 4 selected agencies—USDA, HHS, and DOT—did not detect math errors through these review processes or inconsistencies among estimates provided on Reginfo.gov, and in the more detailed ICR supporting statements. For example, GAO found that one ICR underestimated burden by as much as $270 million, and another overestimated burden time by more than 12 million hours. Agencies acknowledged they followed their review processes but not detect the errors and inconsistencies. OMB also did not detect the errors and inconsistencies in its review of the ICRs. Until agencies ensure that their review processes detect errors or inconsistencies, the public may have less confidence in agencies' ability to effectively manage and minimize burden.
While the agencies solicited public comments through the Federal Register , as required by the PRA, IRS and DOT did not always provide the level of information in the notices (e.g., the frequency of the collection) needed to allow the public to evaluate the burden estimates. Also, agencies did not always consult with the public beyond these notices, as required under the PRA. Of the 200 ICRs GAO reviewed, 113 contained information in their supporting statements indicating public consultation beyond the Federal Register notices. Only 6 of these 113 indicated that public outreach was related to the burden hour estimates. OMB could help ensure that agencies consistently obtain public input by directing agencies to consult with the public beyond the Federal Register notices on each ICR, as required in the PRA. However, OMB continues to believe that additional consulting should occur only for ICRs where important information may be missed by the public notice and comment period. Congressional action to clarify the PRA requirement may be needed.

What GAO Recommends

Congress should consider more explicitly requiring agencies to consult with the public beyond the Federal Register notices. GAO is also making 11 recommendations: 1 to OMB on ensuring consistent application of the requirement for estimating respondent time costs; 4 on reexamining processes for reviewing ICRs to OMB, USDA, HHS, and DOT; 2 on improving public notices to IRS and DOT; and 4 on better leveraging existing public consultation to USDA, HHS, DOT, and IRS. USDA, HHS, DOT, and IRS agreed with the recommendations. OMB staff did not agree or disagree.