DEPARTMENT OF 

HOMELAND SECURITY

Progress Made and Work 

Remaining after Nearly 

10 Years in Operation

Statement of Cathleen A. Berrick, Managing Director

Homeland Security and Justice

Testimony

Before the Subcommittee on Oversight 

and Management Efficiency, Committee 

on Homeland Security, House of 

Representatives

For Release on Delivery 

Expected at 9:00 a.m. EDT

Friday, February 15, 2013

GAO-13-370T

United States Government Accountability Office

GAO
United States Government Accountability Office

Highlights of GAO-13-370T, a testimony 

before the Subcommittee on Oversight and 

Management Efficiency, Committee on 

Homeland Security, House of Representatives

February 15, 2013 

DEPARTMENT OF HOMELAND SECURITY

Progress Made and Work Remaining after Nearly 10 

Years in Operation

Why GAO Did This Study

The Department of Homeland Security 

began operations nearly 10 years ago 

on March 1, 2003. Around that time, 

GAO designated implementing and 

transforming DHS as high risk because 

DHS had to transform 22 agencies—

several with major management 

challenges—into one department.

Further, failure to effectively address 

DHS’s management and mission risks 

could have serious consequences for 

U.S. national and economic security.

Since 2003, GAO has evaluated 

numerous departmental programs and 

operations and issued over 1,300 

products in such areas as border 

security and immigration, 

transportation security, and emergency 

management, among others. 

This testimony addresses (1) DHS’s 

progress implementing and

strengthening its mission functions, 

and (2) crosscutting issues that have 

affected the department’s 

implementation efforts. This testimony 

is based on products GAO has issued

assessing DHS’s progress in 

implementing its homeland security 

missions and work remaining. 

What GAO Recommends

While this testimony contains no new 

recommendations, GAO has previously 

made about 1,800 recommendations to 

DHS designed to strengthen its 

programs and operations. DHS has 

addressed more than 60 percent of 

them, has efforts underway to address 

others, and has taken additional action 

to strengthen the department.

What GAO Found

Since the Department of Homeland Security (DHS) began operations in 2003, it 

has implemented key homeland security operations and achieved important 

goals and milestones in many areas to create and strengthen a foundation to 

reach its potential. As it continues to mature, however, more work remains for 

DHS to address gaps and weaknesses in its current operational and 

implementation efforts, and to strengthen the efficiency and effectiveness of 

those efforts. 

In its assessment of DHS’s progress and challenges 10 years after the terrorist 

attacks of September 11, 2001, as well as its more recent work, GAO reported 

that DHS had, among other things, developed strategic and operational plans 

across its range of missions; established new, or expanded existing, offices and 

programs; and developed and issued policies, procedures, and regulations to 

govern its homeland security operations. However, GAO also identified that 

challenges remained for DHS to address across its missions. Examples of 

progress made and work remaining include the following: 

Aviation security. DHS developed and implemented Secure Flight, a program 

through which the federal government now prescreens all passengers on all 

commercial flights to, from, and within the United States. However, DHS did not 

validate the science supporting its behavior detection program before deploying 

behavior detection officers at airports, including determining whether such 

techniques could be successfully used to detect threats. 

Border security/immigration enforcement. DHS reported data indicating it had 

met its goal to secure the land border because of a decrease in apprehensions, 

attributed in part to changes in the U.S. economy and achievement of DHS

strategic objectives. However, DHS has not developed a process to identify and 

analyze program risks, such as a process to evaluate prior and suspected cases 

of fraud, in its Student and Exchange Visitor Program, a program intended to, 

among other things, ensure that foreign students studying in the United States 

comply with the terms of their admission into the country. 

Emergency preparedness and response. DHS issued the National Response 

Framework, which outlines disaster response guiding principles. However, GAO

reported that DHS could reduce the costs to the federal government related to 

major disasters declared by the President by updating the principal indicator on 

which disaster funding decisions are based and better measuring a state’s 

capacity to respond without federal assistance. 

GAO has identified three key themes—leading and coordinating the homeland 

security enterprise, implementing and integrating management functions for 

results, and strategically managing risks and assessing homeland security 

efforts—that DHS needs to address from a departmentwide perspective to 

effectively and efficiently position the department for the future. DHS has made 

progress in all three areas by, among other things, providing leadership and 

coordination. However, DHS has continued to face challenges in all of these 

areas. For example, GAO reported that improving research and development 

could help DHS reduce, among other things, cost overruns and performance 

shortfalls by reducing inefficiencies and costs for homeland security.

View GAO-13-370T. For more information, 

contact Cathleen A. Berrick, 202-512-3404, 

berrickc@gao.gov 
Page 1 GAO-13-370T 

United States Government Accountability Office 

Washington, DC 20548

Chairman Duncan, Ranking Member Barber, and Members of the 

Subcommittee:

I am pleased to be here today to discuss our work on progress made by 

the Department of Homeland Security (DHS) and work remaining in 

implementing its homeland security missions since it began operations 

almost 10 years ago on March 1, 2003. This milestone provides an 

opportunity to reflect on the progress DHS has made since it began 

operating as a single department and the challenges it has faced in 

implementing its missions, as well as to identify issues that will be 

important for the department to address as it moves forward, based on 

work we have completed on DHS programs and operations in key areas.

Since DHS began operations, we have evaluated numerous departmental 

programs and issued more than 1,300 reports and congressional 

testimonies in areas such as border security and immigration, 

transportation security, and emergency management, among others. We 

have made approximately 1,800 recommendations to DHS designed to 

strengthen its operations. DHS has implemented more than 60 percent of 

these recommendations, has actions under way to address others, and 

has taken additional steps to strengthen its mission activities. However, 

the department has more to do to ensure that it conducts its missions 

efficiently and effectively while simultaneously preparing to address future 

challenges that face the department and the nation.

In 2003, we designated implementing and transforming DHS as high risk 

because DHS had to transform 22 agencies—several with major 

management challenges—into one department.1

 

1

GAO, High-Risk Series: An Update, 

Further, failure to 

effectively address DHS’s management and mission risks could have 

serious consequences for U.S. national and economic security. Since 

2003, we have identified additional high-risk areas where DHS has 

primary or significant responsibilities, including protecting the federal 

government’s information systems and the nation’s critical cyber 

infrastructure, establishing effective mechanisms for sharing and 

GAO-03-119 (Washington, D.C.: January 2003). 

 
 

Page 2 GAO-13-370T 

managing terrorism-related information to protect the homeland, and the 

National Flood Insurance Program.2

In September 2011, we issued a report summarizing progress made by 

DHS in implementing its homeland security missions 10 years after the 

terrorist attacks of September 11, 2001.3

My statement today is based on these and associated products, and 

addresses (1) DHS’s progress implementing and strengthening its 

mission functions, and (2) crosscutting issues that have affected the 

department’s implementation efforts.

We reported that DHS had 

implemented key homeland security operations and achieved important 

goals in many areas to create and strengthen a foundation to reach its 

potential. We also reported, however, that as DHS continues to mature, 

more work remains for it to strengthen the efficiency and effectiveness of 

those efforts to achieve its full potential.

For these past reports, among other things, we analyzed DHS 

documents; reviewed and updated our past reports, supplemented by 

DHS Office of Inspector General (IG) reports, issued since DHS began its 

operations in March 2003; and interviewed DHS officials. We conducted 

this work in accordance with generally accepted government auditing 

standards. More detailed information on the scope and methodology from 

our previous work can be found within each specific report.

 

2

GAO, High-Risk Series: An Update, GAO-13-283 (Washington, D.C.: February 2013). 

The National Flood Insurance Program is a key component of the federal government’s 

efforts to limit the damage and financial impact of floods.

3

GAO, Department of Homeland Security: Progress Made and Work Remaining in 

Implementing Homeland Security Missions 10 Years after 9/11, GAO-11-881 

(Washington, D.C.: Sept. 7, 2011). 
 

Page 3 GAO-13-370T 

Since DHS began operations in March 2003, it has developed and 

implemented key policies, programs, and activities for implementing its 

homeland security missions and functions that have created and 

strengthened a foundation for achieving its potential as it continues to 

mature. We reported in our assessment of DHS’s progress and 

challenges 10 years after the September 11 attacks, as well as in our 

more recent work, that the department has implemented key homeland 

security operations and achieved important goals in many areas. These 

included developing strategic and operational plans across its range of 

missions; hiring, deploying, and training workforces; establishing new, or 

expanding existing, offices and programs; and developing and issuing 

policies, procedures, and regulations to govern its homeland security 

operations.4

• DHS successfully hired, trained, and deployed workforces, including 

the federal screening workforce to assume screening responsibilities 

at airports nationwide, and about 20,000 agents to patrol U.S. land 

borders.

For example:

• DHS also created new programs and offices, or expanded existing 

ones, to implement key homeland security responsibilities, such as 

establishing the National Cybersecurity and Communications 

Integration Center to, among other things, coordinate the nation’s 

efforts to prepare for, prevent, and respond to cyber threats to 

systems and communications networks.

 

4

GAO-11-881. 

DHS Continues to 

Implement and 

Strengthen Its Mission 

Functions, but Key 

Operational and 

Management 

Challenges Remain

Progress Implementing 

and Strengthening DHS’s 

Mission Functions
 

Page 4 GAO-13-370T 

• DHS issued policies and procedures addressing, among other things, 

the screening of passengers at airport checkpoints, inspecting 

travelers seeking entry into the United States, and assessing 

immigration benefit applications and processes for detecting possible 

fraud.

• DHS issued the National Response Framework, which outlines 

disaster response guiding principles, including major roles and 

responsibilities of government, nongovernmental organizations, and 

private sector entities for response to disasters of all sizes and 

causes.

• After initial difficulty in fielding the program, DHS developed and 

implemented Secure Flight, a passenger prescreening program 

through which the federal government now screens all passengers on 

all commercial flights to, from, and within the United States. 

• In fiscal year 2011, DHS reported data indicating it had met its interim 

goal to secure the land border with a decrease in apprehensions. Our 

data analysis showed that apprehensions decreased within each 

southwest border sector and by 68 percent in the Tucson sector from 

fiscal years 2006 through 2011. Border Patrol officials attributed this 

decrease in part to changes in the U.S. economy and achievement of 

Border Patrol strategic objectives.5

• We reported in September 2012 that DHS, through its component 

agencies, particularly the Coast Guard and U.S. Customs and Border 

Protection (CBP), has made substantial progress in implementing 

various programs that, collectively, have improved maritime security.6

 

5

GAO, Border Patrol: Key Elements of New Strategic Plan Not Yet in Place to Inform 

Border Security Status and Resource Needs, 

For example, in November 2011, we reported that the Coast Guard’s 

risk assessment model generally met DHS criteria for being complete, 

GAO-13-25 (Washington D.C.: Dec. 10, 

2012). Border Patrol, within U.S. Customs and Border Protection, is the federal agency 

with primary responsibility for securing the national borders between designated U.S. land 

border ports of entry. 

6

GAO, Maritime Security: Progress and Challenges 10 Years after the Maritime 

Transportation Security Act, GAO-12-1009T (Washington, D.C.: Sept. 11, 2012).
 

Page 5 GAO-13-370T 

reproducible, documented, and defensible.7

• DHS has taken important actions to conduct voluntary critical 

infrastructure and key resources (CIKR) security surveys and 

vulnerability assessments, provide information to CIKR stakeholders, 

and assess the effectiveness of security surveys and vulnerability 

assessments.

Coast Guard units 

throughout the country use this risk model to improve maritime 

domain awareness and better assess security risks to key maritime 

infrastructure.

8

DHS has made progress in implementing its homeland security missions, 

but more work remains for DHS to address gaps and weaknesses in its 

current operational and implementation efforts, and to strengthen the 

efficiency and effectiveness of those efforts to achieve its full potential. 

Our recent work has shown that many DHS programs and investments 

continue to experience cost overruns, schedule delays, and performance 

problems, and can be better coordinated to reduce overlap and the 

potential for unnecessary duplication, and achieve cost savings.9

• DHS needs better project information and coordination to identify and 

prevent potential unnecessary duplication among four overlapping 

grant programs that in total constituted $20 billion in grants from fiscal 

years 2002 through 2011. We also found that DHS has not 

implemented outcome-based performance measures for any of the 

For 

example:

 

7

GAO, Coast Guard: Security Risk Model Meets DHS Criteria, but More Training Could 

Enhance Its Use for Managing Programs and Operations, GAO-12-14 (Washington, D.C.: 

Nov. 17, 2011).

8

GAO, Critical Infrastructure Protection: DHS Could Better Manage Security Surveys and 

Vulnerability Assessments, GAO-12-378 (Washington, D.C.: May 31, 2012).

9

GAO, Department of Homeland Security: Actions Needed To Reduce Overlap and 

Potential Unnecessary Duplication, Achieve Cost Savings, and Strengthen Mission 

Functions, GAO-12-464T (Washington, D.C.: Mar. 8, 2012).

Challenges Implementing 

DHS’s Missions
 

Page 6 GAO-13-370T 

four programs, which hampers its ability to fully assess the 

effectiveness of these grant programs.10

• DHS has not developed a process to identify and analyze program 

risks in its Student and Exchange Visitor Program, such as a process 

to evaluate prior and suspected cases of school noncompliance and 

fraud. The program is intended to ensure that foreign students 

studying in the United States comply with the terms of their admission 

into the country and to certify schools as authorized to accept foreign 

students in academic and vocational programs. The program’s budget 

authority in fiscal year 2012 was $120 million.11

• DHS did not validate the science supporting the Screening of 

Passengers by Observation Techniques program or determine if 

behavior detection techniques could be successfully used across the 

aviation system to detect threats before deploying the program. The 

program has an annual cost of over $200 million.12

• DHS experienced schedule delays and performance problems with its 

information technology program for securing the border between ports 

of entry—the Secure Border Initiative Network (SBInet)—which led to 

its cancellation after 5 years and about $1 billion after deploying 53 

miles of SBInet systems to the Arizona border.

We are currently 

reviewing DHS’s efforts to assess the effectiveness of the program 

and ensure that behavior detection officers are consistently 

implementing program protocols, and we expect to report on the 

results of our work later this year.

13

 

10GAO, Homeland Security: DHS Needs Better Project Information and Coordination 

among Four Overlapping Grant Programs, 

DHS has adopted a 

new approach for developing a technology plan for surveillance at the 

remainder of the Arizona border, referred to as the Arizona Border 

Surveillance Technology Plan (Plan), with an estimated life cycle cost 

GAO-12-303 (Washington, D.C.: 

Feb. 28, 2012).

11GAO, Student and Exchange Visitor Program: DHS Needs to Assess Risks and 

Strengthen Oversight Functions, GAO-12-572 (Washington, D.C.: June 18, 2012). 

12GAO, Aviation Security: Efforts to Validate TSA’s Passenger Screening Behavior 

Detection Program Underway, but Opportunities Exist to Strengthen Validation and 

Address Operational Challenges, GAO-10-763 (Washington, D.C.: May 20, 2010).

13GAO, Arizona Border Surveillance Technology: More Information on Plans and Costs Is 

Needed before Proceeding, GAO-12-22 (Washington, D.C.: Nov. 4, 2011).
 

Page 7 GAO-13-370T 

of $1.5 billion. To develop the Plan, DHS conducted an analysis of 

alternatives and outreach to potential vendors, and took other steps to 

test the viability of the current system. However, DHS has not 

documented the analysis justifying the specific types, quantities, and 

deployment locations of border surveillance technologies proposed in

the Plan, or defined the mission benefits or developed performance 

metrics to assess its implementation of the Plan. We are reviewing 

DHS’s efforts to implement the Plan, and we expect to report on the 

results of our work later this year.

• DHS spent more than $200 million on advanced spectroscopic 

portals, used to detect smuggled nuclear or radiological materials, 

without issuing an accurate analysis of both the benefits and the 

costs—which we later estimated at over $2 billion—and a 

determination of whether additional detection capabilities were worth 

the additional costs. DHS subsequently canceled the advanced 

spectroscopic portals program as originally conceived.14

• Each year DHS processes millions of applications and petitions for 

more than 50 types of immigrant- and nonimmigrant-related benefits 

for persons seeking to study, work, visit, or live in the United States, 

and for persons seeking to become U.S. citizens. DHS embarked on a 

major initiative in 2005 to transform its current paper-based system 

into an electronic account–based system that is to use electronic 

adjudication and account- based case management tools, including 

tools that are to allow applicants to apply online for benefits. However, 

DHS did not consistently follow the acquisition management approach 

outlined in its management directives in developing and managing the 

program. The lack of defined requirements, acquisition strategy, and 

associated cost parameters contributed to program deployment 

delays of over 2 years. In addition, DHS estimates that through fiscal 

year 2011, it spent about $703 million, about $292 million more than 

the original program baseline estimate.15

• We found that DHS could reduce the costs to the federal government 

related to major disasters declared by the President by updating the 

 

14GAO-12-464T. 

15GAO, Immigration Benefits: Consistent Adherence to DHS’s Acquisition Policy Could 

Help Improve Transformation Program Outcomes, and GAO-12-66 (Washington, D.C.: 

Nov. 22, 2011).
 

Page 8 GAO-13-370T 

principal indicator on which disaster funding decisions are based and 

better measuring a state’s capacity to respond without federal 

assistance. From fiscal years 2004 through 2011, the President 

approved 539 major disaster declarations at a cost of $78.7 billion.16

Our work on DHS’s mission functions and crosscutting issues has 

identified three key themes—leading and coordinating the homeland 

security enterprise, implementing and integrating management functions 

for results, and strategically managing risks and assessing homeland 

security efforts—that have impacted the department’s progress since it 

began operations.17 As these themes have contributed to challenges in 

the department’s management and operations, addressing them can 

result in increased efficiencies and effectiveness. For example, DHS can 

help reduce cost overruns and performance shortfalls by strengthening 

the management of its acquisitions, and reduce inefficiencies and costs 

for homeland security by improving its research and development (R&D) 

management. These themes provide insights that can inform DHS’s 

efforts as it works to implement its missions within a dynamic and 

evolving homeland security environment. DHS made progress and has 

had successes in all of these areas, but our work found that these themes 

have been at the foundation of DHS’s implementation challenges, and 

need to be addressed from a department-wide perspective to effectively 

and efficiently position the department for the future.

DHS is one of a number of entities with a role in securing the homeland 

and has significant leadership and coordination responsibilities for 

managing efforts across the homeland security enterprise. To satisfy 

these responsibilities, it is critically important that DHS develop, maintain, 

and leverage effective partnerships with its stakeholders while at the 

same time addressing DHS-specific responsibilities in satisfying its 

 

16GAO, Federal Disaster Assistance: Improved Criteria Needed to Assess a Jurisdiction’s 

Capability to Respond and Recover on Its Own, GAO-12-838 (Washington, D.C.: Sept. 

12, 2012). This total includes obligations made as of September 30, 2011, for major 

disasters declared from fiscal years 2004 through 2011.

17DHS defines the homeland security enterprise as the federal, state, local, tribal, 

territorial, nongovernmental, and private-sector entities, as well as individuals, families, 

and communities, who share a common national interest in the safety and security of the 

United States and the American population.

DHS Can Strengthen 

the Efficiency and 

Effectiveness of Its 

Operations by 

Continuing to Address 

Cross-cutting Issues 

That Have Impacted 

Its Progress

Leading and Coordinating 

the Homeland Security 

Enterprise
 

Page 9 GAO-13-370T 

missions. DHS has made important strides in providing leadership and 

coordinating efforts across the homeland security enterprise, but needs to 

take additional actions to forge effective partnerships and strengthen the 

sharing and utilization of information. For example, DHS has improved 

coordination and clarified roles with state and local governments for 

emergency management. DHS also strengthened its partnerships and 

collaboration with foreign governments to coordinate and standardize 

security practices for aviation security. The department has further 

demonstrated leadership by establishing a governance board to serve as 

the decision-making body for DHS information-sharing issues.18

Although DHS has made important progress, more work remains. We 

designated terrorism-related information sharing as high risk in 2005 

because the government faces significant challenges in analyzing and 

disseminating this information in a timely, accurate, and useful manner.

The 

board has enhanced collaboration among DHS components and 

identified a list of key information-sharing initiatives.

19

In our most recent high-risk update, we reported that the federal 

government’s leadership structure is committed to enhancing the sharing 

and management of terrorism-related information and has made 

significant progress defining a governance structure to implement the 

Information Sharing Environment—an approach that is intended to serve 

as an overarching solution to strengthening sharing.20

 

18GAO, Information Sharing: DHS Has Demonstrated Leadership and Progress, but 

Additional Actions Could Help Sustain and Strengthen Efforts, 

However, we also 

reported that the key departments and agencies responsible for 

information-sharing activities, including DHS, need to continue their 

efforts to share and manage terrorism-related information by, among 

other things, identifying technological capabilities and services that can 

be shared across departments and developing metrics that measure the 

performance of, and results achieved by, projects and activities. DHS 

officials explained that its information-sharing initiatives are integral to its 

mission activities and are funded through its components’ respective 

GAO-12-809 (Washington, 

D.C.: Sept. 18, 2012). DHS has established a decision-making body—the Information 

Sharing and Safeguarding Governance Board—that demonstrates senior executive–level 

commitment to improving information sharing. The board has identified informationsharing gaps and developed a list of key initiatives to help address those gaps.

19GAO, High-Risk Series: An Update, GAO-05-207 (Washington, D.C.: January 2005). 

20GAO-13-283. 
 

Page 10 GAO-13-370T 

budgets. However, in September 2012 we reported that five of DHS’s top 

eight priority information-sharing initiatives faced funding shortfalls, and 

DHS had to delay or scale back at least four of them.21

Following its establishment, DHS focused its efforts primarily on 

implementing its various missions to meet pressing homeland security 

needs and threats, and less on creating and integrating a fully and 

effectively functioning department. As the department matured, it has put 

into place management policies and processes and made a range of 

other enhancements to its management functions, which include 

acquisition, information technology, financial, and human capital 

management. However, DHS has not always effectively executed or 

integrated these functions.

While challenges remain for DHS to address across its range of missions, 

the department has made considerable progress in transforming its 

original component agencies into a single cabinet-level department and 

positioning itself to achieve its full potential. Important strides have also 

been made in strengthening the department’s management functions and 

in integrating those functions across the department, particularly in recent 

years. However, continued progress is needed in order to mitigate the 

risks that management weaknesses pose to mission accomplishment and 

the efficient and effective use of the department’s resources. In particular, 

the department needs to demonstrate continued progress in 

implementing and strengthening key management initiatives and 

addressing corrective actions and outcomes that GAO identified, and 

DHS committed to taking actions address this high-risk area. For 

example:

• Acquisition management: Although DHS has made progress in 

strengthening its acquisition function, most of the department’s major 

acquisition programs continue to cost more than expected, take 

longer to deploy than planned, or deliver less capability than 

promised. We identified 42 programs that experienced cost growth, 

schedule slips, or both, with 16 of the programs’ costs increasing from 

a total of $19.7 billion in 2008 to $52.2 billion in 2011—an aggregate 

increase of 166 percent. We reported in September 2012 that DHS 

 

21GAO-12-809. 

Implementing and 

Integrating Management 

Functions for Results
 

Page 11 GAO-13-370T 

leadership has authorized and continued to invest in major acquisition 

programs even though the vast majority of those programs lack 

foundational documents demonstrating the knowledge needed to help 

manage risks and measure performance.22

• Information technology management: DHS has defined and begun 

to implement a vision for a tiered governance structure intended to 

improve information technology (IT) program and portfolio 

management, which is generally consistent with best practices. 

However, the governance structure covers less than 20 percent 

(about 16 of 80) of DHS’s major IT investments and 3 of its 13 

portfolios, and the department has not yet finalized the policies and 

procedures associated with this structure. In July 2012, we 

recommended that DHS finalize the policies and procedures and 

continue to implement the structure. DHS agreed with these 

recommendations and estimated it would address them by September 

2013.

We recommended that 

DHS modify acquisition policy to better reflect key program and 

portfolio management practices and ensure acquisition programs fully 

comply with DHS acquisition policy. DHS concurred with our 

recommendations and reported taking actions to address some of 

them.

23

• Financial management: DHS has, among other things, received a 

qualified audit opinion on its fiscal year 2012 financial statements.

24

DHS is working to resolve the audit qualification to obtain an 

unqualified opinion for fiscal year 2013.25

 

22GAO, Homeland Security: DHS Requires More Disciplined Investment Management to 

Help Meet Mission Needs, 

However, DHS components 

GAO-12-833 (Washington D.C.: Sept. 18, 2012).

23GAO, Information Technology: DHS Needs to Further Define and Implement Its New 

Governance Process, GAO-12-818 (Washington, D.C.: July 25, 2012). 

24A qualified opinion states that, except for the effects of the matter(s) to which the 

qualification relates, the audited financial statements present fairly, in all material respects, 

the financial position, results of operations, and cash flows of the entity in conformity with 

generally accepted accounting principles. DHS’s auditors issued their audit qualification 

due to DHS’s inability to support certain components of property, plant, and equipment 

and heritage and stewardship assets. DHS’s complete set of financial statements consist 

of the Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, 

Statement of Budgetary Resources, and Statement of Custodial Activity.

25An unqualified opinion states that the audited financial statements present fairly, in all 

material respects, the financial position, results of operations, and cash flows of the entity 

in conformity with generally accepted accounting principles.
 

Page 12 GAO-13-370T 

are currently in the early planning stages of their financial systems 

modernization efforts, and until these efforts are complete, their 

current systems will continue to inadequately support effective 

financial management, in part because of their lack of substantial 

compliance with key federal financial management requirements. 

Without sound controls and systems, DHS faces challenges in 

obtaining and sustaining audit opinions on its financial statement and 

internal controls over financial reporting, as well as ensuring its 

financial management systems generate reliable, useful, and timely 

information for day-to-day decision making.

• Human capital management: In December 2012, we identified 

several factors that have hampered DHS’s strategic workforce 

planning efforts and recommended, among other things, that DHS 

identify and document additional performance measures to assess 

workforce planning efforts.26 DHS agreed with these 

recommendations and stated that it plans to take actions to address 

them. In addition, DHS has made efforts to improve employee morale, 

such as taking actions to determine the root causes of morale 

problems. Despite these efforts, however, federal surveys have 

consistently found that DHS employees are less satisfied with their 

jobs than the government-wide average. In September 2012, we 

recommended, among other things, that DHS improve its root cause 

analysis efforts of morale issues. DHS agreed with these 

recommendations and noted actions it plans to take to address 

them.27

Forming a new department while working to implement statutorily 

mandated and department-initiated programs and responding to evolving 

threats, was, and is, a significant challenge facing DHS. Key threats, such 

as attempted attacks against the aviation sector, have impacted and 

altered DHS’s approaches and investments, such as changes DHS made 

to its processes and technology investments for screening passengers 

and baggage at airports. It is understandable that these threats had to be 

 

26GAO, DHS Strategic Workforce Planning: Oversight of Departmentwide Efforts Should 

Be Strengthened, GAO-13-65 (Washington D.C.: Dec. 3, 2012). 

27GAO, Department of Homeland Security: Taking Further Action to Better Determine 

Causes of Morale Problems Would Assist in Targeting Action Plans, GAO-12-940 

(Washington, D.C.: Sept. 28, 2012).

Strategically Managing 

Risks and Assessing 

Homeland Security Efforts
 

Page 13 GAO-13-370T 

addressed immediately as they arose. However, limited strategic and 

program planning by DHS, as well as assessment to inform approaches 

and investment decisions, has contributed to programs not meeting 

strategic needs or not doing so in an efficient manner.

Further, DHS has made important progress in analyzing risk across 

sectors, but it has more work to do in using this information to inform 

planning and resource-allocation decisions. Risk management has been 

widely supported by Congress and DHS as a management approach for 

homeland security, enhancing the department’s ability to make informed 

decisions and prioritize resource investments. Since DHS does not have 

unlimited resources and cannot protect the nation from every conceivable 

threat, it must make risk-informed decisions regarding its homeland 

security approaches and strategies. We reported in September 2011 that 

using existing risk assessment tools could assist DHS in prioritizing its 

Quadrennial Homeland Security Review (QHSR) implementation 

mechanisms.28

Our work has also found that DHS continues to miss opportunities to 

optimize performance across its missions due to a lack of reliable 

performance information or assessment of existing information; 

evaluation among possible alternatives; and, as appropriate, adjustment 

of programs or operations that are not meeting mission needs. For 

example, we reported in February 2013 that the government’s strategy 

documents related to Information Systems and the Nation’s Cyber Critical 

Infrastructure Protection included few milestones or performance 

measures, making it difficult to track progress in accomplishing stated 

goals and objectives.

For example, examining the extent to which risk 

information could be used to help prioritize implementation mechanisms 

for the next QHSR could help DHS determine how to incorporate and use 

such information to strengthen prioritization and resource allocation 

decisions. DHS officials plan to implement a national risk assessment in 

advance of the next QHSR, which DHS anticipates conducting in fiscal 

year 2013.

29

 

28GAO, Quadrennial Homeland Security Review: Enhanced Stakeholder Consultation and 

Use of Risk Information Could Strengthen Future Reviews, 

In addition, in September 2012, we reported that 

GAO-11-873 (Washington, 

D.C.: Sept. 15, 2011). The Quadrennial Homeland Security Review outlined a strategic 

framework for homeland security to guide the activities of homeland security partners, 

including federal, state, local, and tribal government agencies; the private sector; and 

nongovernmental organizations.

29GAO-13-283. 
 

Page 14 GAO-13-370T 

DHS had approved a third generation of BioWatch technology—to further 

enhance detection of certain pathogens in the air—without fully evaluating 

viable alternatives based on risk, costs, and benefits.30 As the department 

further matures and seeks to optimize its operations, DHS will need to 

look beyond immediate requirements; assess programs’ sustainability 

across the long term, particularly in light of constrained budgets; and 

evaluate trade-offs within and among programs across the homeland 

security enterprise. Doing so should better equip DHS to adapt and 

respond to new threats in a sustainable manner as it works to address 

existing ones.

Given DHS’s role and leadership responsibilities in securing the 

homeland, it is critical that the department’s programs and activities are 

operating as efficiently and effectively as possible; are sustainable; and 

continue to mature, evolve, and adapt to address pressing security 

needs. Since it began operations in 2003, DHS has implemented key 

homeland security operations and achieved important goals and 

milestones in many areas. DHS has also made important progress in 

strengthening partnerships with stakeholders, improving its management 

processes and sharing of information, and enhancing its risk 

management and performance measurement efforts. Important strides 

have also been made in strengthening the department’s management 

functions and in integrating those functions across the department, 

particularly in recent years. Senior leaders at the department have also 

continued to demonstrate strong commitment to addressing the 

department’s management challenges across the management functions. 

These accomplishments are especially noteworthy given that the 

department has had to work to transform itself into a fully functioning 

cabinet department while implementing its missions—a difficult 

undertaking for any organization and one that can take years to achieve 

even under less daunting circumstances.

Impacting the department’s efforts have been a variety of factors and 

events, such as attempted terrorist attacks and natural disasters, as well 

as new responsibilities and authorities provided by Congress and the 

administration. These events collectively have forced DHS to continually 

 

30GAO, Biosurveillance: DHS Should Reevaluate Mission Need and Alternatives before 

Proceeding with BioWatch Generation-3 Acquisition, GAO-12-810 (Washington, D.C.: 

Sept. 10, 2012). 

Concluding 

Observations
 

Page 15 GAO-13-370T 

reassess its priorities and reallocate resources as needed, and have 

impacted its continued integration and transformation. Given the nature of 

DHS’s mission, the need to remain nimble and adaptable to respond to 

evolving threats, as well as to work to anticipate new ones, will not 

change and may become even more complex and challenging as 

domestic and world events unfold, particularly in light of reduced budgets 

and constrained resources. Our work has shown that to better position 

itself to address these challenges, DHS should place an increased 

emphasis on and take additional action in supporting and leveraging the 

homeland security enterprise; managing its operations to achieve needed 

results; and strategically planning for the future while assessing and 

adjusting, as needed, what exists today. DHS also needs to continue its 

efforts to address the associated high-risk areas that we have identified 

which have affected its implementation efforts. Addressing these issues 

will be critically important for the department to strengthen its homeland 

security programs and operations. DHS has indeed made significant 

strides in protecting the homeland, but has yet to reach its full potential.

Chairman Duncan, Ranking Member Barber, and Members of the 

Subcommittee, this concludes my prepared statement. I would be pleased 

to respond to any questions you may have at this time.

For further information regarding this testimony, please contact Cathleen 

A. Berrick at (202) 512-3404 or berrickc@gao.gov. In addition, contact 

points for our Offices of Congressional Relations and Public Affairs may 

be found on the last page of this statement. Individuals who made key 

contributions to this testimony are Scott Behen, Adam Hoffman, and 

David Maurer. Key contributors for the previous work that this testimony is 

based on are listed within each individual product.

GAO Contacts and 

Staff 

Acknowledgments

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