United States Government Accountability Office

GAO Testimony 

Before the Subcommittee on Oversight of Government 

Management, the Federal Workforce, and the District of 

Columbia, Committee on Homeland Security and 

Governmental Affairs, U.S. Senate

HUMAN CAPITAL 

Greater Focus on Results in 

Telework Programs Needed

Statement of Bernice Steinhardt 

Director, Strategic Issues 

For Release on Delivery

Expected at 2:30 p.m. EDT

Tuesday, June 12, 2007

 

GAO-07-1002T 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

June 12, 2007

HUMAN CAPITAL

Greater Focus on Results in Telework 

Highlights of GAO-07-1002T, a testimony Programs Needed 

before the Subcommittee on Oversight of 

Government Management, the Federal 

Workforce, and the District of Columbia, 

Committee on Homeland Security and 

Governmental Affairs, U.S. Senate 

Telework continues to receive

attention within Congress and 

federal agencies as a human capital

strategy that offers various

flexibilities to both employers and 

employees, including the capacity

to continue operations during

emergency events, as well as

benefits to society, such as

decreased energy use and

pollution. 

This statement highlights some of 

GAO’s prior work on federal 

telework programs, including key 

practices for successful

implementation of telework

initiatives, identified in a 2003 GAO

report and a 2005 GAO analysis of

telework program definitions and 

methods in five federal agencies. In 

addition, the statement discusses 

GAO observations on the Telework

Enhancement Act of 2007, S. 1000. 

What GAO Recommends

This statement makes no new

recommendations but reiterates 

that Congress should determine 

ways to promote more consistent

telework definitions and measures. 

In particular, Congress might want 

to have the Office of Personnel

Management (OPM) and the Chief 

Human Capital Officers Council 

develop definitions and measures

that would allow for a more

meaningful assessment of progress 

in agency telework programs. 

Through a number of legislative actions, Congress has indicated its desire 

that agencies create telework programs to accomplish a number of positive 

outcomes. Many of the current federal programs were developed in response 

to a 2000 law that required each executive branch agency to establish a 

telework policy under which eligible employees may participate in 

telecommuting to the maximum extent possible without diminishing 

employee performance. The legislative framework has provided the OPM 

and the General Services Administration (GSA) with lead roles for the 

governmentwide telework initiative, providing services and resources to 

support and encourage telework. Although agency telework policies meet 

common requirements and often share characteristics, each agency is 

responsible for developing its own policy to fit its mission and culture. 

In a 2003 report, GAO identified a number of key practices that federal

agencies should implement in developing their telework programs. Four of 

these were closely aligned with managing for program results: (1) developing 

a business case for telework, (2) establishing measurable telework program 

goals, (3) establishing systems to collect data for telework program 

evaluation, and (4) identifying problems and making appropriate 

adjustments. None of the four agencies we reviewed, however, had 

effectively implemented any of these practices. In a related review of five

other agencies in 2005, GAO reported that none of the agencies had the 

capability to track who was actually teleworking or how frequently, relying 

mostly on the number of telework agreements as the measure of program 

participation. 

S. 1000 is intended to enhance the existing legislative framework and 

provides that all employees of the executive, judicial, and legislative

branches are eligible for telework except in some circumstances related to 

an employee’s duties and functions. The bill also recognizes the importance 

of leadership in promoting an agency’s telework program by requiring the 

appointment of a senior-level management official to perform several 

functions to promote and enhance telework opportunities. GAO's statement 

suggests changes to the assignment of responsibilities for rating and 

reporting along with changes to make the responsibilities for heads of 

agency and entities in the legislative and judicial branches more consistent 

with those of executive branch officials. The statement also points out 

several provisions of S. 1000 that are not clear in relation to existing 

legislation. 

www.gao.gov/cgi-bin/getrpt?GAO-07-1002T.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Bernice 

Steinhardt at (202) 512-6806 or 

steinhardtb@gao.gov. 
Mr. Chairman and Members of the Subcommittee: 

I am pleased to be here today to discuss our observations of federal 

telework policies based on our past work and to provide additional 

observations that relate to the provisions of S. 1000, the Telework 

Enhancement Act of 2007. Telework is a human capital strategy which 

offers flexibilities to both employers and employees. It is increasingly 

recognized as an important means to achieving a number of federal efforts, 

including effective strategic human capital management of the federal 

workforce, and a greater capability to continue operations during 

emergency events, as well as affording environmental, energy, and other 

benefits to society. 

Congress has demonstrated its keen interest in promoting the use of 

telework in the federal government by establishing a wide-ranging 

statutory framework. This framework has included provisions directed at 

increasing employee eligibility for telework, requiring reporting and 

evaluation of telework implementation, establishing agency telework 

coordinators to lead the program, setting goals for the application of 

telework provisions to the federal workforce, and even withholding funds 

from some agencies that fail to show progress. S. 1000 is intended to 

advance this framework and the implementation of telework programs 

and to increase the eligibility of federal employees for telework as well as 

its use. 

My statement today will describe first the statutory framework that drives

the agency telework programs and processes. We will also share 

observations from our past work that relate to agency telework 

methodologies, as well as our views of the specific legislation under 

consideration. And finally, we will offer some suggested next steps to 

advance the purposes of the bill. 

My comments are based on previously issued GAO reports that were 

developed in accordance with generally accepted government auditing 

standards. 

Page 1 GAO-07-1002T Greater Focus on Telework Results 
Through a number of legislative actions, Congress has indicated its desire 

that agencies create telework programs to accomplish a number of 

positive outcomes. These actions have included recognizing the need for 

program leadership within the agencies; encouraging agencies to think 

broadly in setting eligibility requirements; requiring that employees be

allowed, if eligible, to participate in telework, and requiring tracking and 

reporting of program results. Some legislative actions have provided for 

funding to assist agencies in implementing programs, while other 

appropriations acts withheld appropriated funds until the covered 

agencies certified that telecommuting opportunities were made available 

to 100 percent of each agency’s eligible workforce. The Telework 

Enhancement Act of 2007, S. 1000, continues the efforts of Congress to 

achieve greater participation. 

Congress Has 

Established a 

Statutory Framework 

to Promote Agency 

Telework Programs 

and Increase 

Employee 

Participation 

The most significant congressional action related to telework was the 

enactment of Section 359 of Public Law No. 106-346 in October 2000, 

which provides the current mandate for telework in the executive branch

of the federal government by requiring each executive agency to establish 

a policy under which eligible employees may participate in telework to the 

maximum extent possible without diminishing employee performance. 

The conference report language further explained that an eligible 

employee is any satisfactorily performing employee of the agency whose 

job may typically be performed at least one day per week by teleworking. 

In addition, the conference report required the Office of Personnel 

Management (OPM) to evaluate the effectiveness of the program and 

report to Congress. 

The legislative framework has provided both the General Services 

Administration (GSA) and OPM with lead roles for the governmentwide 

telework initiative, to provide services and resources to support and 

encourage telework, including providing guidance to agencies in 

developing their program procedures.1

 In addition, Congress required 

certain agencies to designate telework coordinators to be responsible for 

overseeing the implementation of telework programs and serve as points 

of contact on such programs for the Committees on Appropriations. 

 1

GAO reported that the efforts of OPM and GSA, with lead roles in implementation of

telework in the federal government, had not been well coordinated and, in response, the

two agencies took a number of actions to improve coordination, including developing and

signing a joint memorandum of understanding. GAO, Human Capital: Key Practices to 

Increasing Federal Telework, GAO-04-950T (Washington, D.C.: July 8, 2004). 

Page 2 GAO-07-1002T Greater Focus on Telework Results 
GSA and OPM provide services and resources to support the 

governmentwide telework implementation. OPM publishes telework 

guidance, which it recently updated, and works with the agency telework 

coordinators to guide implementation of the programs and annually report 

the results achieved. GSA offers a variety of services to support telework, 

including developing policy concerning alternative workplaces, managing 

the federal telework centers, maintaining the mail list server for telework 

coordinators, and offering technical support, consultation, research, and 

development to its customers. Jointly, OPM and GSA manage the federal

Web site for telework, which was designed to provide information and 

guidance. The site provides access for employees, managers, and telework

coordinators to a range of information related to telework, including 

announcements, guides, laws, and available training. 

Although agency telework policies meet common requirements and often 

share some common characteristics, each agency is responsible for 

developing its own policy to fit its mission and culture. According to OPM, 

most agencies have specified occupations that are eligible for telework 

and most apply employee performance-related criteria in considering 

authorizing telework participation. In addition, OPM guidance states that 

eligible employees should sign an employee telework agreement and be 

approved to participate by their managers. The particular considerations 

in regard to these requirements and procedures will differ among agencies. 

In our 2003 study of telework in the federal government,2

 we identified 25 

key practices that federal agencies should implement in developing their 

telework programs. A full list of the key practices appears in appendix I.

Among those were several practices closely aligned with managing for 

program results, including: 

• developing a business case for implementing a telework program; 

• establishing measurable telework program goals; 

• establishing processes, procedures, and/or a tracking system to collect 

data to evaluate the telework program; and 

Better Performance 

Measures and 

Program Evaluations 

Could Improve 

the Assessment of 

Telework in 

the Federal 

Government 

 2

GAO, Human Capital: Further Guidance, Assistance, and Coordination Can Improve

Federal Telework Efforts, GAO-03-679 (Washington, D.C.: July 18, 2003).

Page 3 GAO-07-1002T Greater Focus on Telework Results 
• identifying problems and/or issues with the telework program and making 

appropriate adjustments. 

Yet, in our assessment of the extent to which four agencies—the 

Department of Education, GSA, OPM, and the Department of Veterans 

Affairs—followed the 25 key practices, we found these four practices to be

among the least employed. 

In discussing the business case key practice in our 2003 study, we cited the 

International Telework Association and Council, which had stated that 

successful and supported telework programs exist in organizations that 

understand why telework is important to them and what specific 

advantages can be gained through implementation of a telework program. 

A business case analysis of telework can ensure that an agency’s telework 

program is closely aligned with its own strategic objectives and goals. 

Such an approach can be effective in engaging management on the 

benefits of telework to the organization. For example, making a case for 

telework as a part of an agency’s Continuity of Operations (COOP) plan 

can help organizations understand why they support telework, address 

relevant issues, minimize business risk, and make the investment when it 

supports their objectives. Through business case analysis, organizations 

have been able to identify cost reductions in the telework office 

environment that offset additional costs incurred in implementing 

telework and the most attractive approach to telework implementation. 

None of the four agencies we reviewed, however, had effectively 

implemented this practice. 

Moreover, none of the four agencies had established measurable telework 

program goals. As we noted in our report, OPM’s May 2003 telework guide3

discussed the importance of establishing program goals and objectives for 

telework that could be used in conducting program evaluations for 

telework in such areas as productivity, operating costs, employee morale, 

recruitment, and retention. However, even where measurement data are

collected, they are incomplete or inconsistent among agencies, making 

comparisons meaningless. For example, in our 2005 report of telework 

programs in five agencies—the Departments of State, Justice, and 

Commerce; the Small Business Administration; and the Securities and 

 3

U.S. Office of Personnel Management, Telework: A Management Priority—A Guide for 

Managers, Supervisors, and Telework Coordinators (Washington, D.C.: May 2003). 

Page 4 GAO-07-1002T Greater Focus on Telework Results 
Exchange Commission—measuring eligibility was problematic.4

 Three of 

the agencies excluded employees in certain types of positions (e.g., those

having positions where they handle classified information) when counting 

and reporting the number of eligible employees, while two of the agencies

included all employees in any type of position when counting and 

reporting the number of eligible employees, even those otherwise 

precluded from participating. 

With regard to the third key practice aligned with managing for results—

establishing processes, procedures and/or a tracking system to collect data 

to evaluate the telework program—in our 2003 review we found that none 

of the four agencies studied were doing a survey specifically related to 

telework or had a tracking system that provided accurate participation 

rates and other information about teleworkers and the program. At that 

time, we observed that lack of such information not only impeded the 

agencies in identifying problems or issues related to their programs but 

also prevented them from providing OPM and Congress with complete and 

accurate data. Also, in our 2005 study at five agencies, we found that four

of the five agencies measured participation in telework on the basis of 

their potential to telework rather than their actual usage. The fifth agency 

reported the number of participants based on a survey of supervisors who 

were expected to track teleworkers. According to OPM, most agencies 

report participation based on telework agreements, which can include 

both those for employees teleworking on a continuing basis as well as 

those for episodic telework. None of the five agencies we looked at had 

the capability to track who was actually teleworking or how frequently, 

despite the fact that the fiscal year 2005 consolidated appropriations act 

covering those agencies required each of them to provide a quarterly 

report to Congress on the status of its telework program, including the 

number of federal employees participating in its program. At that time, 

two of the five agencies said they were in the process of implementing 

time and attendance systems that could track telework participation, but

had not yet fully implemented them. The other three agencies said that 

they did not have time and attendance systems with the capacity to track 

telework. 

 4

GAO, Agency Telework Methodologies: Departments of Commerce, Justice, State, the 

Small Business Administration, and the Securities and Exchange Commission, 

GAO-05-1055R (Washington, D.C.: Sept . 27, 2005). 

Page 5 GAO-07-1002T Greater Focus on Telework Results 
Based on our findings, the following language was included for those five 

agencies in their fiscal year 2006 appropriations act’s conference report: 

“The conferees are troubled that many of the agencies’ telework programs do not even

have a standardized manner in which to report participation. The conferees expect each of 

these agencies to implement time and attendance systems that will allow more accurate 

reporting.” 

Despite this language, officials at four of the five agencies said that they

have not yet developed such systems and are still measuring participation 

as they did in 2005. For the fifth agency—the Department of Justice 

(DOJ)—an official told us that the department has now implemented a 

Web-based time and attendance system in most bureaus and that this 

system allows DOJ to track actual telework participation in those bureaus. 

According to this official, the Federal Bureau of Investigation is the major 

exception, but DOJ is working towards having all bureaus use this system. 

As for the fourth key practice closely related to managing for program 

results—identifying problems and/or issues with the telework program 

and making appropriate adjustments—none of the four agencies we 

reviewed for our 2003 study had fully implemented this practice and one 

of the four had taken no steps to do so despite the importance of using 

data to evaluate and improve telework programs. An OPM official told us, 

for example, that she did not use the telework data she collected to 

identify issues with the program; instead, she relied on employees to bring 

problems to her attention. 

To help agencies better manage for results through telework programs, in 

our 2005 study, we said that Congress should determine ways to promote 

more consistent definitions and measures related to telework. In 

particular, we suggested that Congress might want to have OPM, working

through the Chief Human Capital Officers Council, develop a set of terms, 

definitions, and measures that would allow for a more meaningful 

assessment of progress in agency telework programs. Some information 

could be improved by more consistent definitions, such as eligibility. Some 

information may take additional effort to collect, for example, on actual 

usage of telework. Some of this information may already be available 

through existing sources. The Federal Human Capital Survey, for example, 

which is administered biennially, asks federal employees about their 

satisfaction with telework. In the latest survey, only 22 percent indicated

they were satisfied or very satisfied, while 44 percent indicated they had 

no basis to judge—certainly there seems to be room for improvement 

there. In any case, OPM and the Chief Human Capital Officers Council are 

Page 6 GAO-07-1002T Greater Focus on Telework Results 
well-situated to sort through these issues and consider what information 

would be most useful. The council and OPM could also work together on 

strategies for agencies to use the information for program improvements, 

including benchmarking. 

S. 1000 is intended to enhance the existing legislative framework and 

provides that all employees of executive agencies are eligible for telework 

except in some circumstances related to an employee’s duties and 

functions. In addition, the bill addresses the coverage of employees in the 

legislative and judicial branches and provides that within 1 year from the 

date of enactment, policies shall be established to allow such employees, 

unless otherwise excluded, to participate in telework to the maximum 

extent possible without diminishing employee performance or legislative 

or judicial branch operations. The bill further recognizes the importance of 

leadership in promoting an agency’s telework program by requiring the 

appointment of a senior-level management official to perform several 

functions to promote and enhance telework opportunities. 

We have several observations to offer on the bill. As we have discussed 

with your staff, we have specific concerns about section 5 of the bill, 

which would require GAO to establish and implement a rating system for 

agency compliance with and participation in telework initiatives and 

report the results. For executive branch agencies, we believe this function 

is more appropriately placed with OPM. A GAO rating system that does 

not have the benefit of a full GAO evaluation of the underlying information 

would raise concerns that our independence is compromised if we were 

asked at a future time to evaluate telework programs in the federal 

government. Accordingly, we have provided Committee staff with 

substitute language that would place these rating and report functions in 

OPM, the agency that is currently responsible for reporting on most 

telework activities and participation in the executive branch. Our 

substitute language would have the Comptroller General instead provide 

his views on the OPM report to the Senate Committee on Homeland 

Security and Governmental Affairs and the House Committee on Oversight 

and Government Reform within 6 months of the report. 

We would also like to bring several other issues to your attention. The bill 

would extend coverage of these telework initiatives to the legislative and 

judicial branches. We suggest substituting a reference to “the head of each

legislative branch entity” in sections 2(c)(3) and 4(a) of the bill so that the 

heads of the Library of Congress, the Government Printing Office, and 

GAO, for example, would be responsible for developing agency policies on

The Telework 

Enhancement Act of 

2007, S. 1000, 

Addresses Key 

Telework Issues, but 

Some Provisions 

Merit Additional 

Consideration 

Page 7 GAO-07-1002T Greater Focus on Telework Results 
telework, determining which employees are eligible for telework, and 

designating senior-level employees to serve as telework managing officers. 

This approach would be consistent with the coverage of the executive

branch under the bill where the head of each agency would perform 

similar functions. 

With regard to the bill’s requirement to appoint a telework managing 

officer in each executive branch agency, it is not clear how that 

employee’s duties would relate to the duties of the agency officials 

currently designated as telework coordinators pursuant to the provisions 

of section 627 of Public Law No. 108-199. Another provision of the bill 

would define telework as occurring on at least 2 business days per week,

leaving unclear how this would relate to the broader definitions of 

telework currently defined in existing legislation and OPM guidance,

which includes episodic or occasional instances. It is also unclear whether 

the bill intends to allow agencies to consider employee performance in 

making telework eligibility decisions. Current legislation and agency 

practice requires employees to be performing satisfactorily. 

The bill also provides for “productivity awards” for teleworking 

employees, but it is not clear whether nonteleworking employees would 

also be eligible to receive productivity awards and would be evaluated on

the same performance standards. We would note that one of the key 

practices identified in our 2003 report was ensuring that the same 

performance standards are used to evaluate both teleworkers and 

nonteleworkers. The perception that care had not been taken to establish 

fair and equitable eligibility criteria could present performance and morale

issues. Finally, the bill includes among the duties of the telework 

managing officer assisting the head of the agency in designating employees 

to telework in order to continue agency operations in the event of a major 

disaster as defined under the Stafford Act, 42 U.S.C. § 5122. We would 

note, however, that telework can be effective in a variety of emergency 

conditions not limited to those emergencies defined under the Stafford 

Act. For example, we reported that GAO’s telework capability was 

significant to assisting the House of Representatives and minimizing the 

disruption to its own operations when anthrax bacteria were released on 

Capitol Hill in 2001.5

 5

GAO, Human Capital: Opportunities to Improve Federal Continuity Planning

Guidance, GAO-04-384 (Washington, D.C.: April 20, 2004). 

Page 8 GAO-07-1002T Greater Focus on Telework Results 
In conclusion, telework is a key strategy to accomplish a variety of federal 

purposes. Telework is an investment in both an organization’s people and 

the agency’s capacity to perform its mission. We continue to believe that 

OPM and the Chief Human Capital Officers Council are well-positioned to 

help agencies better manage for results through telework. Mr. Chairman 

and members of the subcommittee, this completes my statement. I would 

be pleased to respond to any questions that you might have.

For further information on this testimony, please contact Bernice 

Steinhardt, Director, Strategic Issues, (202) 512-6806 or at

steinhardtb@gao.gov. Individuals making key contributions to this 

testimony include William J. Doherty, Joyce D. Corry, Allen Lomax, and 

Michael Volpe. 

Contacts and 

Acknowledgements 

Page 9 GAO-07-1002T Greater Focus on Telework Results 
Page 10 GAO-07-1002T Greater Focus on Telework Results 

Appendix I: Key Telework Practices for 

Implementation of Successful Federal 

Telework Programs 

(450608) 
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