GAO United States

General Accounting Office

Washington, D.C. 20548

Health, Education, and

Human Services Division

B-277414 

July 11, 1997

The Honorable Richard K. Armey

Majority Leader

House of Representatives

The Honorable John R. Kasich

Chairman, Committee on the Budget

House of Representatives

The Honorable Dan Burton

Chairman, Committee on Government Reform

 and Oversight

House of Representatives

The Honorable Bob Livingston

Chairman, Committee on Appropriations

House of Representatives

Subject: The Results Act: Observations on Department of Labor’s

June 1997 Draft Strategic Plan

On June 12, 1997, you asked us to review the draft strategic plans

submitted by the cabinet departments and selected major agencies for

consultation with the Congress as required by the Government

Performance and Results Act of 1993 (the Results Act). This letter is our

response to that request concerning the Department of Labor (Labor).

Labor’s strategic plan consists of a department-level document, which it

designates as a “strategic plan overview,” supplemented by strategic plans

for 15 of its component offices or units. As agreed with your offices, this

letter includes our analysis of the overview and selected analyses of

individual plans. As you requested, we will provide additional detailed

analyses on individual plans submitted by the Employment and Training

Administration (ETA), the Occupational Safety and Health Administration

(OSHA), and the Employment Standards Administration (ESA) by the end of

July.

Objectives, Scope,

and Methodology

Our overall objective was to review and evaluate Labor’s draft strategic

plan overview, as submitted to congressional staff on June 11. As you

requested, we specifically (1) assessed compliance with the act’s

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requirements and the strengths and weaknesses of the elements of the

plan; (2) described Labor’s key statutory authorities and how they relate to

the mission and goals in the strategic plan; (3) identified Labor’s programs,

activities, and functions that are crosscutting in that they are similar to or

related to goals, activities, or functions of other agencies and assessed the

extent to which the plan reflects interagency cooperation; (4) discussed

the extent to which Labor’s management challenges were addressed in the

plan; and (5) described Labor’s capacity to provide reliable information

about performance.

As agreed, our assessment of the strategic plan overview was generally

based on our previous work. Our overall assessment of Labor’s draft

strategic plan overview was generally based on our knowledge of Labor’s

operations and programs, our numerous reviews of Labor, and other

existing information available at the time of our assessment. Specifically,

the criteria we used to determine whether Labor’s draft strategic plan

overview complied with the requirements of the Results Act were the

Results Act and the Office of Management and Budget’s (OMB) guidance on

developing the plans (Circular A-11, part 2). To make judgments about the

overall quality of the overview, we used our May 1997 guidance for

congressional review of the plans (GAO/GGD-10.1.16) as a tool. To determine

whether the plan contained information on interagency coordination and

addressed management problems previously identified, we relied on our

general knowledge of Labor’s operations and programs, and the results of

our previous reports. (See Related GAO Products at the end of this

correspondence.)

To describe Labor’s key statutory responsibilities and how they relate to

Labor’s mission and goals, we reviewed Labor’s overview strategic plan

and the supplemental unit plans. As requested, we coordinated our work

on Labor’s key statutory authorities and capacity to provide reliable

information with the Congressional Research Service and Labor’s

Inspector General, respectively.

In passing the Results Act, the Congress anticipated that several planning

cycles might be need to perfect the process of developing a strategic plan

and that the plan would be continually refined. Thus, our comments reflect

a “snapshot” of the status of the plan at a particular point. We recognize

that developing a strategic plan is a dynamic process and that Labor is

continuing to work to revise the draft with input from OMB, congressional

staff, and other stakeholders.

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Background Labor, established as a Department in 1913, administers and enforces a

variety of federal labor laws guaranteeing workers’ rights to a workplace

free from safety and health hazards, a minimum hourly wage and overtime

pay, family and medical leave, freedom from employment discrimination,

and unemployment insurance. Labor also protects workers’ pension rights;

provides job training programs; helps workers find jobs; works to

strengthen free collective bargaining; and keeps track of changes in

employment, prices, and other national economic measures.

Labor’s diversity of functions is carried out by different offices in a

decentralized organizational structure. It has 24 component offices or

units, with over 1,000 field offices, to support its various functional

responsibilities. (Fig. 1 shows the organizational structure of Labor.)

However, its many program activities fall into two major categories:

enhancing workers’ skills through job training and ensuring worker

protection. A third category relates to developing economic statistics, such

as the Consumer Price Index, which is used by business, labor, and

government in formulating fiscal and monetary policy and in making

cost-of-living adjustments.

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Figure 1: Department of Labor Organization

In fiscal year 1997, Labor has an estimated budget of $34.4 billion and is

authorized 16,614 full-time-equivalent staff-years. About three-fourths of

Labor’s budget is composed of mandatory spending on income

maintenance programs, such as the unemployment insurance program.

Results Act Requirements

and OMB Guidance on

Preparing and Submitting

Strategic Plans

The Results Act requires virtually every executive agency to develop a

strategic plan covering a period of at least 5 years from the fiscal year in

which it is submitted. The act is aimed at improving program performance.

It requires that agencies, in consultation with the Congress and other

stakeholders, clearly define their mission and articulate a comprehensive

mission statement that defines their basic purpose. It also requires that

they establish long-term strategic goals, as well as annual goals linked to

them. Agencies must then measure their performance against the goals

they have set and report publicly on how well they are doing. In addition

to monitoring ongoing performance, agencies are expected to perform

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evaluation studies of their programs and to use information obtained from

these evaluations to improve the programs.

OMB Circular A-11 provides additional guidance on the development of

agency strategic plans. The Circular strongly encourages agencies to

submit a single, agencywide strategic plan. It states, however, that an

agency with disparate functions, such as Labor, may prepare several

strategic plans for its major components or programs. When an agency

does prepare multiple strategic plans for component units, Circular A-11

further provides that these not be merely packaged together and submitted

as a single strategic plan because the size and detail of such a compilation

will reduce the plan’s usefulness. Moreover, the agency is to prepare an

agencywide strategic overview that will link individual plans by giving an

overall statement of the agency’s mission and goals.

Results in Brief To meet the Results Act requirement for an agency strategic plan, Labor

elected to submit individual plans from various agency component units

supplemented by “a strategic plan overview” that addresses some Results

Act requirements at the agency level. However, Labor’s overview does not

meet OMB guidance to provide an agencywide strategic overview that links

individual strategic plans. Furthermore, while Labor’s strategic plan

overview contains a mission statement for the agency, as required, the

statement itself does not appear to be sufficiently descriptive of Labor’s

basic purpose. Labor’s strategic plan overview also does not appear to

meet the requirement contained in Circular A-11 that it contain an overall

statement of departmental goals. Instead, Labor has excerpted and listed

the goals contained in the component unit plans. For example, goals of

Labor component units responsible for workplace safety, such as OSHA and

the Mine Safety and Health Administration (MSHA), are summarized in the

worker protections section of the overview but are not integrated into an

overall agency goal.

Although Labor did not include agency goals in its strategic overview, the

Department set forth agencywide goals in recent congressional testimony.

For example, the Secretary cited as a goals equipping every working

American with the skills needed to find and hold a good job, and helping

people move from welfare to work. In addition, Labor’s strategic plan

overview is organized around three major categories—lifelong learning,

worker protections, and statistics—that could serve as the basis from

which to develop crosscutting departmental goals.

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Labor’s five areas of major statutory responsibility—employment and

training, health and safety in the workplace, pension and welfare benefits,

employment standards, and labor statistics—are covered in its draft

overview and supplemental unit plans. The goals stated in the overview

and in individual unit plans are consistent with Labor’s statutory

responsibilities. In addition, the mission statements cover all of Labor’s

major functions and operations.

Labor’s strategic plan overview recognizes the roles of other organizations,

such as other federal agencies and state and local governments, and the

importance of establishing partnerships in carrying out such functions as

ensuring safe and healthful workplaces. Labor’s overview could be

improved, however, by recognizing the importance of other participants,

namely the other 14 federal agencies involved in one major area of

responsibility—job training. The overview does not acknowledge that the

nation’s federally funded employment training system is a patchwork of

multiple programs, many of which are in departments and agencies other

than Labor; nor does it set forth goals pertaining to the development of a

cohesive, integrated, and coordinated system.

Finally, Labor’s capacity to provide reliable information for use in its

agencywide management is questionable. Its overview plan recognizes the

importance of additional information to ensure timely and sound

evaluations to assess agency progress in meeting goals. However, its

overview does not describe its strategy for ensuring that such information

is collected and used to assess progress and performance. In addition,

Labor’s overview plan does not discuss with any specificity how Labor

plans to use information technology to achieve its mission, goals, and

objectives; nor does the plan describe with sufficient clarity how Labor

intends to use information technology to improve performance and reduce

costs. Furthermore, Labor’s strategic overview plan could be improved by

including a discussion of its technology investment control process, a

process that can help agencies reduce the risk and maximize the net

benefits from their information technology investments.

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Labor’s Agencywide

Plan Does Not

Contain All Elements

Required by Results

Act and OMB

Guidance

The Results Act requires that strategic plans include six components: (1) a

mission statement, (2) goals and objectives, (3) approaches or strategies to

achieve the goals and objectives, (4) a discussion of the relationship

between long-term goals and annual performance goals, (5) key external

factors affecting goals and objectives, and (6) evaluations used to establish

goals and objectives. OMB Circular A-11 provides guidance to agencies

submitting plans and, in particular, to agencies like Labor that comprise

disparate components or programs. As permitted by Circular A-11, Labor

elected to submit individual plans from its different components,

supplemented by an agency-level document intended to be the strategic

plan overview.

Labor’s overview does not integrate information from individual strategic

plans of its components into a single agencywide strategic overview

document, as stated in OMB guidance. Rather it is a compilation of excerpts

from individual plans that does not identify strategic departmental goals.

The overview plan also does not include the other elements of a strategic

plan identified by the act, such as strategies to achieve goals and

evaluations used to establish goals. Further, a majority of the individual

unit plans did not include all the elements required by the act, such as the

approaches or strategies to achieve the goals or key factors affecting

goals.

The overview plan could be a more useful document if it included all the

elements identified by the act—for example, crosscutting strategies used

to achieve departmental goals. According to OMB guidance, strategic plans,

because of their scope and importance, may be the best basis for

developing a comprehensive and integrated approach to performance

management.

The Results Act and OMB guidance require a comprehensive mission

statement for the agency. Labor’s strategic plan overview articulates its

overall mission as helping “assure opportunity and security for American

workers and their families in the changing and competitive global

marketplace.” This mission statement could be improved if it were more

descriptive about what the agency does. As pointed out in Circular A-11,

the mission statement should define the basic purpose of the agency, with

particular focus on its core programs and activities. The mission statement

could communicate more about Labor’s purpose if it referred to such basic

responsibilities as job skills development, job placement, and worker

protection.

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Labor’s plan does not appear to meet the requirement related to agency

goals and objectives. Circular A-11 states that strategic plans should set

out general goals and objectives of the agency, which should elaborate on

“how the agency is carrying out its mission and very often will be

outcome-type goals.” Labor’s overview does not contain departmental

strategic goals; instead Labor has excerpted and listed the goals contained

in the component unit plans. The overview does not include

departmentwide, overarching goals that would facilitate Labor’s

functioning as a unified organization with central direction. Agencywide

goals are important to allow a future assessment of the agency’s

performance overall, as discussed in Circular A-11.

Although Labor does not include agencywide goals in its strategic

overview, it did set forth agencywide goals in congressional testimony. In

June 1997, the Secretary of Labor testified before the Subcommittee on

Human Resources, House Committee on Government Reform and

Oversight, on the issues and challenges facing Labor. In that testimony, the

Secretary stated five goals for addressing these challenges:

“One, equip every working American with the skills to find and hold good jobs, with rising

incomes throughout their lives; [t]wo, help people move from welfare to work; [t]hree,

assure that working Americans enjoy secure pensions when they retire; [f]our, guarantee

every American a safe, healthy workplace free of employment-related discrimination; and,

[f]ive, help working people balance work and family.”

The Secretary further stated that Labor’s 1998 budget request included the

resources needed to pursue these goals.

In addition, Labor organizes its strategic plan overview around three

programmatic categories: lifelong learning, worker protections, and

statistics. While identifying these three broad categories as its fundamental

areas of activity and responsibility, Labor does not develop them into

goals. Instead, each of these three sections in the overview merely

summarizes the missions, goals, and activities of individual component

units with responsibilities related to the overall category. The Secretary’s

stated goals and the three categories organizing the plan could serve as the

basis from which to develop overarching departmental goals that are

results oriented and set out the long-term programmatic, policy, and

management goals of the agency.

A few Labor unit-level officials have had preliminary discussions with

congressional staff to consult on their individual unit plans. However,

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neither officials from the Office of the Secretary of Labor or from the

Office of the Assistant Secretary for Administration and Management, the

office responsible for implementation of the Results Act, have consulted

with congressional staff regarding the strategic plan overview or individual

unit plans. This level of consultation would probably be useful in helping

the Congress and Labor to ensure a more complete understanding of

departmental goals and how those goals guide programmatic, policy, and

management decisions.

Labor’s Strategic Plan

Contains 15 Unit/Subunit

Plans

Labor’s strategic plan consists of individual plans for 15 of its component

offices or subunits and a strategic plan overview. Although Labor has 24

offices/units, not all submitted strategic plans. Discretion is allowed by

Circular A-11, which states that agencies can submit strategic plans that

cover only major functions or operations; however, Labor provided no

indication as to why certain offices were included and others excluded.

Labor’s many program activities are carried out by its seven program

agencies. However, only six of these—the Bureau of Labor Statistics, ETA,

MSHA, OSHA, the Pension and Welfare Benefits Administration, and the

Veterans’ Employment and Training Service—submitted strategic plans.

The seventh, ESA, submitted separate plans for the four subunits under its

responsibility—the Office of Federal Contract Compliance Programs, the

Office of Workers’ Compensation Programs, the Office of Labor

Management Standards (OLMS), and the Wage and Hour Division (WHD).

However, it did not prepare an overall comprehensive plan that pulls

together the ESA strategy to be followed, as a single organizational unit, in

working toward achieving its desired results.

Two of Labor’s seven departmental staff and support offices also

submitted strategic plans—the Office of the Inspector General (OIG) and

the Office of the Chief Financial Officer (OCFO). Another support office, the

Office of the Assistant Secretary for Administration and Management

(OASAM), which has overall management responsibility for implementing

the Results Act, did not submit a strategic plan for its operations. Yet in

Labor’s overview plan, it was noted that the Department’s commitment to

the Results Act is specifically reflected in the strategic plans of OASAM, as

well as those of OIG and OCFO.

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Labor Has Traditionally

Operated With

Decentralized Management

Approach

Labor’s draft strategic plan submission reflects the current Department

management structure and operations; that is, the plan consists of a

number of discrete plans for carrying out Labor’s various responsibilities

largely independently and without a cohesive, overall plan. Our past work

indicates that Labor traditionally has operated as a conglomeration of

individual agencies/units, each working largely independently of the other

and with limited central direction and control. Our 1985 report on the

overall management of Labor pointed out that Labor had no systematic,

departmentwide, long-range policy planning process.1

 Instead,

departmental plans were essentially compilations of individual agencies’

2-year objectives. Furthermore, due to the lack of strong direction and

control, organizational components traditionally operated independently

with limited oversight from the Office of the Secretary. We recommended

a series of actions to deal with specific management problems, such as

developing a long-range planning process to help ensure that desired

program and policy decisions are achieved in a planned and orderly

fashion.

Labor has initiated actions in the past to develop more comprehensive

approaches to departmental management. The follow-up report to our

study of Labor’s overall management recognized action by the Secretary of

Labor to establish a system that integrated agency and departmentwide

goals and provided a mechanism for monitoring progress and providing

feedback to the component agencies.2

 It appears that Labor may not have

continued this integrated management approach. Our 1996 report

containing information on the field offices supporting Labor pointed out

that Labor does not centrally maintain information on its components’

field office locations, staffing, and costs.3

 Instead, each component

maintains such information itself and provides OASAM with information as

requested. Thus, in responding to our request for information we needed

for our 1996 study, OASAM had to go to individual components. To further

illustrate the decentralized nature of Labor’s management structure, OASAM

was uncertain, immediately after the Oklahoma City bombing, whether it

had field office staff located in the bombed federal building. To obtain this

information, Labor had to query staff in each of the major program

1

Strong Leadership Needed to Improve Management at the Department of Labor (GAO/HRD-86-12,

Oct. 21, 1985).

2

Department of Labor: Assessment of Management Improvement Efforts (GAO/HRD-87-27, Dec. 31,

1986).

3

Education and Labor: Information on the Departments’ Field Offices (GAO/HEHS-96-178, Sept. 16,

1996).

Page 10 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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divisions to ascertain whether the divisions had field offices in Oklahoma

City and the location of the offices.

Labor’s Plan

Addresses Statutory

Responsibilities

We identified the following areas of major statutory responsibility for

Labor: (1) employment and training, (2) health and safety in the

workplace, (3) pension and welfare benefits, (4) employment standards,

and (5) labor statistics. Labor has covered each of these in its draft

overview and supplemental unit plans, and the goals stated therein are

consistent with its statutory responsibilities.

As noted earlier, the overview plan does not contain agencywide goals or

strategies; rather, the goals and strategies in the plan are those of various

components of Labor. To determine whether the goals reflected Labor’s

statutory authority, we reviewed the individual unit plans as well as the

overview. We found that some of the goals for each of Labor’s component

agencies are established by law, either expressly or by implication; others,

while consistent with the law, cannot be directly linked to anything in the

laws dealing with Labor’s responsibilities. For example, OSHA’ s strategic

goal of “securing public confidence through excellence in the development

and delivery of its programs and services” is not based on specific

requirements in Labor statutes. Similarly, the goals of WHD, which include

“increase compliance with the laws and regulations administered and

enforced by WHD, increase customer satisfaction with the services

provided by WHD, and achieve a high performance workplace which

anticipates and is responsive to the needs of our customers and all our

employees,” are not based on specific statutory requirements.

Overall, the overview plan and supplemental unit plans cover all of Labor’s

major functions and operations. The enclosure discusses the goals and

related statutory responsibilities for each component/unit.

Description of

Crosscutting Program

Activities

Labor is responsible for a diversity of functions, many of which are also

carried out, at least in part, by other federal agencies and involve the

participation of state and local agencies as well as private sector

organizations. Labor’s strategic plan overview recognizes the roles of other

organizations and the importance of establishing partnerships in carrying

out some of these functions. For example, the overview points out, in the

worker protections area, that “OSHA does not have sole responsibility for

safety and health in the workplace. The Agency works closely with other

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partners in the Department, in the Federal government, with state and

local governments, and the private sector.”

Labor’s overview could be improved by recognizing the substantial

number of other participants involved in job training. The overview does

not acknowledge a key aspect of the nation’s federally funded employment

training system, namely, that it is not a cohesive, integrated, or

coordinated system. In 1995, we identified 163 employment training

programs spread across 15 federal departments and agencies, including

Labor.4

 By recognizing in the overview the substantial number of the

nation’s job training programs that are outside its purview, Labor could

then discuss how its programs could fit in with a broader national job

training strategy and the coordination required to develop and implement

such a strategy. The coordination strategy could focus on identifying and

taking advantage of opportunities to realize efficiencies through

coordination and, possibly, consolidation. Passage of the recent welfare

reform legislation puts even greater demands on an employment training

system that appears unprepared to respond. Labor’s overview does

provide a general reference to “working closely with other agencies,

states, and communities to leverage our resources to address the special

needs of welfare recipients” but does not provide more detailed

information on what Labor will be doing.

Labor Management

Challenges

The Results Act poses challenges to Labor to become more businesslike in

its operations. Labor’s strategic plan overview, however, does not fully

address these challenges and how Labor plans to respond.

Managing in the “businesslike” manner envisioned by the Results Act will

be a substantial challenge for Labor, but the experiences of one of its

component agencies as a pilot could be helpful. OSHA, as one of the Results

Act’s pilot agencies, has been involved in a number of activities geared

toward making the management improvements intended by the Results

Act.5

 It has been working to develop a comprehensive performance

measurement system that will focus on outcomes to measure its own

effectiveness. OSHA and state representatives have discussed the

application of this comprehensive system to OSHA’s monitoring of state

4

Multiple Employment Training Programs: Major Overhaul Needed to Create a More Efficient,

Customer-Driven System (GAO/T-HEHS-95-70, Feb. 6, 1995).

5

Under the Results Act, OMB designated approximately 70 pilot projects in performance measurement

for fiscal years 1994, 1995, and 1996. The pilot projects were to undertake the preparation of

performance plans and program performance reports for one or more of the major functions and

operations of the agency participating in the pilot.

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safety and health programs. Although not a requirement of the strategic

planning process, a discussion in Labor’s overview related to the

experiences gained from the OSHA pilot project—including lessons learned

and whether best practices or other lessons could be applied agencywide

or in units with similar functions—could be helpful in meeting the current

challenge of managing under the Results Act.

Labor’s Capacity to

Provide Reliable

Information for

Agency Management

Is Questionable

To efficiently and effectively operate, manage, and oversee its diversity of

functions, Labor needs reliable data. In past work, we have identified

weaknesses in Labor’s information management practices. For example,

our review of Labor’s field offices demonstrated the lack of centrally

located information on key departmental functions, such as field office

locations, staffing, and costs. In our report on Labor’s Davis-Bacon Act

wage determination process, we also identified limited computer

capabilities as a reason for the process’ vulnerability to use of fraudulent

or inaccurate data.6

 We found a lack of both computer software and

hardware that could assist wage analysts in their reviews. The OIG also

cited areas in which Labor needed to improve its information management

practices, especially those used to support financial accounting systems.

Given these past findings, it is important for Labor to delineate in its plan

how it as an agency, along with specific unit initiatives, will produce the

requisite information to assess its progress. In its overview plan, Labor

recognizes that if it is to ensure timely and sound evaluations to assess

agency progress in meeting goals required by the act, additional

information may need to be obtained from its stakeholders. However, its

statement—“Resources for such information collection and evaluation

activities will need to be addressed”—does not describe its strategy for

ensuring that information from evaluations and other ongoing systems will

be collected and used to assess progress and performance.

Labor has made some efforts to improve its information management

systems; for example, it has appointed a Chief Information Officer.

However, this individual also serves as the Assistant Secretary for

Administration and Management, and questions have been raised about

whether an individual can fulfill both responsibilities.

As we have noted in our past work, sound application and management of

information technology to support strategic program goals must be an

6

Davis-Bacon Act: Process Changes Could Raise Confidence That Wage Rates Are Based on Accurate

Data (GAO/HEHS-96-130, May 31, 1996).

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important part of any serious attempt to improve agency mission

performance, cut costs, and enhance responsiveness to the public. Labor’s

overview plan does not discuss with any specificity how Labor plans to

use information technology to achieve its mission, goals, and objectives,

nor does the plan describe with sufficient clarity how Labor intends to use

information technology to improve performance and reduce costs.

According to its draft plan, Labor is focusing on “employing innovative

uses of technology.” The plan states that “DOL [Labor] is expanding the

use of the Internet to make standards and interpretations more accessible”

and is testing software to allow the public to comment electronically

through the Internet. Also, the plan states that Labor is developing expert

systems to assist employers in complying with regulatory standards.

In addition, Labor—like many other federal agencies—faces a major

challenge in managing information resources to ensure that information

technology tools and resources are consistent with the agency’s mission.

While Labor’s draft overview cites information technology initiatives, it

does not contain a discussion of Labor’s information technology strategy.

This strategy should include how Labor plans to address the “year 2000

problem,” which involves the need for computer systems to be changed to

accommodate dates beyond the year 1999. In addition, the information

technology strategy should contain information on how Labor plans to

comply with the Clinger-Cohen Act of 1996. The act calls for agencies to

implement a framework of modern technology management based on the

practices followed by leading private- and public-sector organizations that

have successfully used technology to dramatically improve performance

and meet strategic goals.

Agency Comments In commenting on a draft of this correspondence, officials at Labor

generally disagreed with our observations. These disagreements related to

(1) an interpretation of what Labor’s strategic plan overview does or does

not include; (2) an interpretation of whether Labor’s strategic plan

overview adequately addresses what is required by the Results Act and

OMB guidance in preparing a strategic plan; and (3) whether it is

appropriate to include certain information in the overview, even though

such information is not required.

First, Labor officials disagreed with our statement that the overview does

not provide an agencywide strategic overview that links individual

strategic plans. These officials contend that the plan links individual

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strategic plans by presenting its major budget and program themes with

the appropriate agencies and their goals listed under each appropriate

theme. However, we believe that listing the three broad programmatic

categories and excerpting goals from individual plans and inserting them

under the appropriate category does not provide a sufficient linkage.

Second, Labor officials disagreed with our statement that the overview

does not include all the elements identified by the Results Act. In this

connection, Labor officials point out that agencies that use strategic

overviews are authorized by Circular A-11 to present them in either of two

forms; Labor officials say that although Labor used the second form, we

criticized the agency for failing to meet the requirement for the first form.

We believe, however, that Labor’s overview does not satisfy another

portion of Circular A-11 that applies regardless of which form is used: “The

overview links individual strategic plans by giving an overall statement of

the agency’s mission and goals.” We modified our correspondence to make

clearer the basis for our belief that the overview does not include all the

elements required by the Results Act and OMB guidance.

Third, officials at Labor disagreed with the appropriateness of including

certain information in the overview even though it is not required. For

example, they said that it is inappropriate to include a discussion of

management challenges and Labor’s capacity to provide reliable

information for Labor’s management. Our discussion of these two issues is

in direct response to this congressional request.

Finally, Labor officials did agree with some of our statements and agreed

to take corrective action. For example, they agreed to include an

explanation of why some Labor components prepared and submitted

strategic plans and others did not. Similarly, they agreed that the overview

did not include overarching goals and that these goals would be included

in future revisions of the plan.

We have incorporated Labor’s comments and made technical changes to

our correspondence where appropriate.

As arranged with your offices, unless you publicly announce its contents

earlier, we plan no further distribution of this correspondence until 30

days after its issue date. At that time, we will send copies to the Ranking

Minority Members of your Committees and to the Chairmen and Ranking

Minority Members of other Committees that have jurisdiction over

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Department of Labor activities; the Secretary of Labor; and the Director,

Office of Management and Budget. We will also send copies to others on

request.

Please contact me at (202) 512-7002 if you or your staffs have any

questions concerning this letter. Major contributors to this letter were

Harriet C. Ganson, Assistant Director; Thomas N. Medvetz,

Evaluator-in-Charge; Robert Crystal, Assistant General Counsel; Julian P.

Klazkin, Senior Attorney; David B. Alston, Assistant Director; and Thomas

L. Davies, Senior Evaluator.

Carlotta C. Joyner

Director, Education and Employment Issues

Enclosure

Page 16 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Page 17 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Enclosure 

Goals and Statutory Responsibilities of

Labor’s Component Units

Labor’s five major areas of statutory responsibility—employment and

training, employment health and safety, pension and welfare benefits,

employment standards, and labor statistics—are discussed below.

Employment and Training Labor’s major responsibilities in this area are covered by a number of

statutes administered by the Employment and Training Administration

(ETA) and the Veterans’ Employment and Training Service (VETS). Under

titles III and IX of the Social Security Act (42 U.S.C. 501, 1101), Labor

administers the Federal/State Unemployment Compensation Program. The

Wagner-Peyser Act (29 U.S.C. 49) provides authority for grants to states to

establish and maintain a system of local public employment offices.

Workers receive training and retraining under title III of the Job Training

Partnership Act (JTPA) (29 U.S.C. 1651) and other acts. Youth, adults, and

specific groups facing serious barriers to employment receive assistance

through grants to states under JTPA (29 U.S.C. 1501).

The mission of ETA, as expressed in the plan,7

 is to provide support to the

public and private sectors in response to changes in the labor market,

ensure that Americans have access to the information and resources

necessary to compete successfully in the job market, and assist businesses

in gaining access to skilled workers and training resources to compete

successfully in a global economy.

ETA’s goals are to (1) “[i]mprove systems to enhance and leverage

investments in service delivery for youth, adults and employers, and to

improve the functioning of labor markets”; (2) “[a]ssure that America’s

youth, particularly at risk youth, acquire the knowledge, skills, and

abilities they need to earn a decent living”; (3) “[p]rovide adult

unemployed, disadvantaged and dislocated workers the services which

will help them find and hold good jobs at decent wages with career

potential”; (4) ensure that “[e]mployers value the public workforce

development system managed by ETA and its partners as being integral to

their competitiveness strategies and are among its primary investors and

customers”; and (5) “[i]n partnership with employees and their

representatives, achieve greater operating efficiency, provide better

services at reduced costs and increase customer satisfaction.”

The first goal is consistent with the purpose of JTPA, as well as with the

purpose of the Wagner-Peyser Act, which authorizes funding to establish

7

The word “plan” as used in this enclosure encompasses both the overview plan and the component

plans.

Page 18 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Enclosure 

Goals and Statutory Responsibilities of

Labor’s Component Units

local public employment offices. The second and third goals reflect the

very purpose of JTPA, which is “to establish programs to prepare youth and

adults facing serious barriers to employment for participation in the labor

force . . .” (29 U.S.C. 1501). The fourth goal is consistent with various

statutes. The fifth goal is not based on a specific statutory requirement.

VETS’ goals are to provide (1) timely and fair resolution of complaints;

(2) employee development opportunities, supportive services, and job

openings; (3) timely and accurate information and direction to customers,

the Congress, and others regarding agency services and accomplishments;

(4) effective referrals of clients whose needs cannot be totally met by VETS

and its grantees; and (5) quality training to service provider staff.

VETS’ first goal is not based on a specific statutory requirement. The second

goal is specifically required under JTPA (29 U.S.C. 1721). Part of the third

goal is clearly envisioned in the statutory requirement that the Secretary

support outreach and public information activities to inform veterans

about services and jobs (29 U.S.C. 1721(a)(3)(c)). Reports of

accomplishments are to be included in an annual report to the Congress

(29 U.S.C.1579(d)). The fourth goal appears to come from the requirement

that Labor provide employment and training information to veterans that

is available under statutes and other provisions of law (29 U.S.C.

1721(a)(3)(C)). This is, in effect, a referral. The fifth goal is not based on a

specific statutory requirement.

Employment Health and

Safety

The Occupational Safety and Health Act (OSH Act) (29 U.S.C. 651), which is

carried out by the Occupational Safety and Health Administration (OSHA),

and the Federal Mine Safety and Health Act (FMSHA) (30 U.S.C. 801), which

is carried out by the Mine Safety and Health Administration (MSHA),

establish Labor’s major statutory responsibilities in this area.

The plan quotes the following specific mission from the OSH Act: “Assure

so far as possible every working man and woman in the Nation safe and

healthful working conditions.” It then sets out separate strategic goals for

OSHA and MSHA. OSHA’s goals are to (1) “ensure healthful and safe working

conditions for all workers, as evidenced by fewer hazards, reduced

exposures, and fewer injuries, illnesses and fatalities”; (2) “change

workplace culture to increase employer and worker awareness of,

commitment to, and involvement with safety and health”; and (3) “secure

public confidence through excellence in the development and delivery of

its programs and services.” The first goal reflects purposes declared in the

Page 19 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Enclosure 

Goals and Statutory Responsibilities of

Labor’s Component Units

OSH Act. Although the act does not explicitly require Labor to reduce

hazards, exposures, injuries, illnesses, or fatalities, such a goal is

consistent with the overall purpose of the act. The second goal also

reflects purposes declared in the act, and it is driven by the act, but it does

not reflect a specific mandate. The third goal does not appear to be based

on specific provisions of law.

MSHA’s goals are to (1) “reduce the number, rate and severity of accidents

and injuries”; (2) “reduce recurring accidents and injuries”; (3) “reduce

high incidence miner illnesses”; (4) “address safety and health issues

resulting from technological changes in the mining industry”; and

(5) “develop and implement site-specific training programs.” Although the

act does not specifically require any reductions, the first three goals reflect

the overall purpose, including declared purposes, of FMSHA. The fourth goal

is generally consistent with the act in that it relates to miners’ safety and

health, but the act does not mention technological changes. The fifth goal

reflects various requirements in the act related to training.

Pension and Welfare

Benefits

The Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C.

1001) establishes Labor’s major responsibilities in this area. The Pension

and Welfare Benefits Administration (PWBA) administers title I of ERISA. The

Pension Benefits Guaranty Corporation (PBGC) administers title IV of ERISA.

Under the plan, the mission of PWBA is to “protect the pension and welfare

benefits of the over 150 million participants and beneficiaries in private

sector employee benefit plans.” The goals of PWBA are to (1) “[e]nsure

workers get the information they need to protect their benefit rights”;

(2) “[a]ssist plan officials and service providers in understanding the

requirements of the relevant statutes in order to meet their legal

responsibilities”; (3) “[d]evelop policies and laws that encourage the

growth of employment-based benefit plans”; and (4) “[d]eter and correct

violations of the relevant statutes.” The first and fourth goals of PWBA are

statutory requirements. The second, although not specifically required by

statute, is consistent with ERISA. The third is stated in the law, which refers

only to “policies.”

The stated mission of PBGC is to protect participants’ benefits and promote

a healthy retirement system by encouraging continuation and maintenance

of private pension plans, protecting benefits, paying benefits in a timely

manner, and keeping costs and premiums low. The goals of PBGC are to

(1) “[p]rotect existing defined benefit plans and their participants, and

Page 20 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Enclosure 

Goals and Statutory Responsibilities of

Labor’s Component Units

encourage new plans”; (2) “[p]rovide high quality services, and accurate

and timely payment of benefits to participants”; (3) “[s]trengthen financial

programs and systems”; and (4) “[i]mprove internal management support

operations.” The first and second goals reflect the purposes of ERISA. The

latter two are not based on specific statutory requirements.

Employment Standards The following establish Labor’s major statutory responsibilities in this

area: the Fair Labor Standards Act (29 U.S.C. 201) and the Contract Work

Hours and Safety Standards Act (29 U.S.C. 327), which are carried out by

the Wage and Hour Division (WHD); acts such as the Davis-Bacon Act (40

U.S.C. 276a) and the Service Contract Act (41 U.S.C. 351), which establish

wage and other labor standards for government contracts also carried out

by WHD; and the Federal Employee’s Compensation Act (FECA) (5 U.S.C.

8101), the Longshore and Harbor Workers’ Compensation Act (33 U.S.C.

901), and the Black Lung Benefits Act (30 U.S.C. 901), which are carried

out by the Office of Workers’ Compensation Programs.

WHD’s goals are as follows: (1) “increase compliance with the laws and

regulations administered and enforced by WHD”; (2) “increase customer

satisfaction with the services provided by WHD”; and (3) “achieve a high

performance workplace which anticipates and is responsive to the needs

of our customers and all our employees.” These goals are not based on

specific statutory requirements.

The goals of the Office of Workers’ Compensation Programs are as

follows: (1) ensure that “[u]nder the FECA, employees return to work

following a work injury at the earliest appropriate moment”; (2) ensure

that “[t]he FECA program, employing agencies, and Federal unions work as

partners to improve the delivery of Federal employees’ compensation

benefits”; (3) “[a]pply tools and technology to expand FECA program

capabilities and enhance program effectiveness”; (4) “[c]ontinue to

organize and support national union/management reengineering teams as

vehicles for broad based participation in decisions”; (5) “[p]romote a more

efficient Black Lung benefit delivery system”; (6) “[p]rovide a secure,

effective, efficient and prompt compensation and service delivery system

for the Longshore Program”; (7) “[e]nhance adjudicatory efficiency and

quality”; (8) ensure that “[i]njured FECA workers are served by a fair, swift,

and people-oriented compensation system”; (9) “create a leaner Black

Lung organization that delivers improved program services and eases

stakeholder burdens by reinventing and reengineering”; (10) “[i]nsure fair,

swift, cost-effective and people-oriented services for Black Lung

Page 21 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Enclosure 

Goals and Statutory Responsibilities of

Labor’s Component Units

customers”; (11) “[r]educe the burden of reporting for Longshore’s

customers”; (12) “[e]nhance public awareness and voluntary compliance

with the provisions of the Longshore Act”; (13) “[m]aintain the fiscal

integrity of the FECA system and deliver cost-effective services”; and

(14) “[e]xercise fiscal responsibility in Black Lung while accomplishing the

mission.”

The first goal is not a specific statutory requirement but is consistent with

FECA, which allows Labor to require an injured employee to submit to a

physical examination as often as necessary (5 U.S.C. 8123). Goals two,

three, four, seven, eight, and thirteen are not linked to specific statutory

requirements but are consistent with the Secretary’s authority to

administer the FECA program (5 U.S.C. 8145). Goals five, nine, ten, and

fourteen deal with the Black Lung Program, and are not based on a

specific statutory requirement. Goals six, seven, eleven, and twelve all

relate to the Longshore and Harbor Workers’ Compensation Program. (As

noted above, goal seven also relates to FECA.) Although none of the goals is

required by law, each is consistent with the Longshore Act.

Labor Statistics The Bureau of Labor Statistics carries out Labor’s responsibilities for

collecting, analyzing, and disseminating labor statistics. The law that

establishes Labor’s major statutory responsibilities in this area appears at

29 U.S.C. 1.

The Bureau’s mission, as stated in the strategic plan, is to provide

comprehensive and timely labor market information to the American

public, the Congress, other federal agencies, state and local governments,

business, labor, and every agency within Labor. The Bureau has

established two strategic goals: (1) “[p]roduce and disseminate timely,

accurate, and relevant information in [the Bureau’s] areas of expertise”

and (2) “[i]mprove accuracy, efficiency, and relevancy of [the Bureau’s]

program outputs through increased application of state-of-the-art

statistical techniques, economic concepts, technology, and management

processes.” The first goal clearly reflects a statutory mandate. The second,

although not specifically required by the applicable law, is consistent with

it.

Page 22 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Page 23 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
Related GAO Products

Veterans’ Employment and Training Service: Focusing on Program Results

to Improve Agency Performance (GAO/T-HEHS-97-129, May 7, 1997).

Department of Labor: Challenges in Ensuring Workforce Development and

Worker Protection (GAO/T-HEHS-97-85, Mar. 6, 1997).

Managing for Results: Using GPRA to Assist Congressional and Executive

Branch Decisionmaking (GAO/T-GGD-97-43, Feb. 12, 1997).

Information Technology Investment: Agencies Can Improve Performance,

Reduce Costs, and Minimize Risks (GAO/AIMD-96-64, Sept. 30, 1996).

Education and Labor: Information on the Departments’ Field Offices

(GAO/HEHS-96-178, Sept. 16, 1996).

Information Management Reform: Effective Implementation Is Essential

for Improving Federal Performance (GAO/T-AIMD-96-132, July 17, 1996).

Executive Guide: Effectively Implementing the Government Performance

and Results Act (GAO/GGD-96-118, June 1996).

Davis-Bacon Act: Process Changes Could Raise Confidence That Wage

Rates Are Based on Accurate Data (GAO/HEHS-96-130, May 31, 1996).

Employment Training: Successful Projects Share Common Strategy

(GAO/HEHS-96-108, May 7, 1996).

OSHA: Potential to Reform Regulatory Enforcement (GAO/T-HEHS-96-42,

Oct. 17, 1995).

Job Corps: High Costs and Mixed Results Raise Questions About

Program’s Effectiveness (GAO/HEHS-95-180, June 30, 1995).

Multiple Employment Training Programs: Information Crosswalk on 163

Employment Training Programs (GAO/HEHS-95-85FS, Feb. 14, 1995).

Executive Guide: Improving Mission Performance Through Strategic

Information Management and Technology (GAO/AIMD-94-115, May 1994).

(205347) Page 24 GAO/HEHS-97-172R Labor’s Draft Strategic Plan
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