Department of Homeland Security: Actions Needed to Reduce Overlap and Potential Unnecessary Duplication, Achieve Cost Savings, and Strengthen Mission Functions
Published: 2012-03-08T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The terrorist attacks of September 11, 2001, led to profound changes in government agendas, policies, and structures to confront homeland security threats facing the nation. Most notably, DHS began operations in 2003 with missions that included preventing terrorist attacks in the United States, reducing the nations vulnerability to terrorism, and minimizing damages from attacks. DHS is now the third-largest federal department, with more than 200,000 employees, and has an annual budget of almost $60 billion. Since 2003, GAO has issued over 1,200 products on DHSs operations in such areas as transportation security and emergency management, among others. Moreover, GAO has reported that overlap and fragmentation among government programs, including DHS, can cause potential unnecessary duplication, and reducing it could save billions of tax dollars annually and help agencies provide more efficient and effective services. As requested, this testimony addresses (1) opportunities for DHS to reduce potential unnecessary duplication in its programs, save tax dollars, and enhance revenue, and (2) crosscutting and management issues that have affected DHSs implementation efforts. This testimony is based on GAO reports issued from March 2011 through February 2012.
section_title: What GAO Found
paragraphs: In March 2011 and February 2012, GAO reported on 6 areas where the Department of Homeland Security (DHS) or Congress could take action to reduce overlap and potential unnecessary duplication, and 9 areas to achieve cost-savings. Of the 22 actions GAO suggested be taken in March 2011 to address such issues, 2 were fully implemented, 14 were partially implemented, and 6 have not been addressed. GAOs February 2012 report identified 18 additional actions to address overlap, potential duplication, and costs savings.
In September 2011, GAO reported on three key themes that should be addressed to enhance the effectiveness and efficiency of DHSs operations.
Leading and coordinating the homeland security enterprise. DHS has made important strides in providing leadership and coordinating efforts among its stakeholders. However, DHS needs to take additional action to forge effective partnerships and strengthen the sharing and utilization of information, which has affected its ability to effectively satisfy its missions, such as sharing information with private sector stakeholders on cyber-based threats to critical infrastructure.
Implementing and integrating management functions for results. DHS has enhanced its management functions, and has plans to further strengthen the management of the department. However, DHS has not always effectively executed or integrated these functions, which has contributed to schedule delays, cost increases, and performance issues in a number of programs aimed at delivering important mission capabilities, such as border security technologies.
Strategically managing risks and assessing homeland security efforts. While progress has been made, limited strategic and program planning and limited assessment to inform approaches and investment decisions have contributed to DHS programs not meeting strategic needs in an efficient manner, such as the lack of risk based plans for deploying aviation security technologies.
section_title: What GAO Recommends
paragraphs: While this testimony contains no new recommendations, GAO previously made about 1,600 recommendations to DHS. The department has addressed about half of them, has efforts to address others, and has taken action to strengthen its operations.

section_title: Letter
paragraphs: I am pleased to be here today to discuss our work on opportunities for the  Department of Homeland Security (DHS) to reduce overlap and potential  unnecessary duplication in its programs, save tax dollars, enhance  revenue, and address crosscutting and management issues that have  affected its mission implementation efforts. Last September, the nation  passed the 10-year anniversary of the September 11, 2001, terrorist  attacks. The events of that day led to profound changes in government  agendas, policies, and structures to confront the homeland security  threats facing the nation. Given DHS’s significant leadership  responsibilities in homeland security, it is critical that its programs are  operating as efficiently and effectively as possible, are sustainable, and  continue to mature to address pressing security needs.
DHS began operations in 2003 with key missions that include preventing  terrorist attacks from occurring within the United States, reducing U.S.  vulnerability to terrorism, minimizing resulting damages, and helping the  nation recover from any attacks that may occur. DHS is now the third- largest federal department, with more than 200,000 employees, and has  an annual budget of almost $60 billion. We have evaluated numerous  departmental programs and efforts since DHS began its operations, and  issued more than 1,200 reports and congressional testimonies in areas  such as border security and immigration, transportation security, and  emergency management, among others. We have made more than 1,600  recommendations to DHS designed to strengthen its operations, such as  to improve performance-measurement efforts, strengthen management  processes, enhance coordination and information sharing, and increase  the use of risk information in planning and resource allocation decisions,  as well as to address gaps and challenges in its mission operations that  have affected DHS’s implementation efforts. As of September 2011, DHS  had implemented about half of these recommendations, had actions  underway to address others, and had taken additional steps to strengthen  its operations. However, as we have previously reported, 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 March 2011 and February 2012, we reported on areas across the  federal government, including DHS, that had duplicative goals or activities  to inform government policymakers as they address the rapidly building  fiscal pressures facing our national government. These reports included  more than 100 areas, some of which related to homeland security, where  agencies, offices, or initiatives had similar or overlapping objectives or  provided similar services to the same populations; or where government  missions were fragmented across multiple agencies or programs. We  reported that overlap and fragmentation among government programs or  activities can be harbingers of potential unnecessary duplication and that  reducing or eliminating potential unnecessary duplication, overlap, or  fragmentation could potentially save billions of tax dollars annually and  help agencies provide more efficient and effective services. These reports  also included opportunities for federal departments, including DHS, to  consider taking action that could either reduce the cost of government  operations or enhance revenue collections for the Treasury.
Moreover, 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.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. As part of this  work, we identified three key themes that affected DHS’s implementation  efforts.
My statement today, as requested, is based on these reports and  addresses (1) opportunities for DHS to reduce overlap and potential  unnecessary duplication in its programs, save tax dollars, and enhance  revenue, and (2) crosscutting and management issues that have affected  DHS’s program-implementation efforts.
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.
subsections: section_title: DHS Could Take Actions to Reduce Overlap and Potential Unnecessary Duplication and Achieve Cost Savings
subsections: section_title: Overlap and Potential Unnecessary Duplication at DHS
paragraphs: Our March 2011 and February 2012 reports identified 6 areas across  DHS where overlap or potential unnecessary duplication exists, and 17  specific actions that the department or Congress could take to address  these areas. In our March 2011 report we suggested that DHS or  Congress take 11 actions to address the areas of overlap or potential  unnecessary duplication that we found. Of these 11 actions, 1 has been  fully addressed, 4 have been partially addressed, and the remaining 6  have not been addressed. In many cases, the existence of overlap,  potential unnecessary duplication, or fragmentation can be difficult to  determine with precision due to a lack of data on programs and activities.  Where information has not been available that would provide conclusive  evidence of overlap, duplication, or fragmentation, we often refer to  “potential unnecessary duplication.” In some cases, there is sufficient  information available to show that if actions are taken to address  individual issues, significant financial benefits may be realized. In other  cases, precise estimates of the extent of potential unnecessary  duplication, and the cost savings that can be achieved by eliminating any  such unnecessary duplication, are difficult to specify in advance of  congressional and executive-branch decision making. However, given the  range of areas we identified at DHS and the magnitude of many of the  programs, the cost savings associated with addressing these issues  could be significant. Tables 1 and 2 summarize the areas of overlap and  potential unnecessary duplication that we identified at DHS, the actions  we identified for DHS and Congress to consider to address those areas,  and the status of those actions.
Our 2011 and 2012 annual reports also identified 9 areas describing other  opportunities for DHS or Congress to consider taking action that could  either reduce the cost of government operations or enhance revenue  collection for the Treasury. We identified 23 specific actions that the  department or Congress could take to address these areas. In our March  2011 report, we suggested that DHS or Congress take 11 actions to  either reduce the cost of government operations or enhance revenue  collection. Of these 11 actions, 1 has been fully addressed and 10 have  been partially addressed. In some cases, there is sufficient information to  estimate potential savings or other benefits if actions are taken to address  individual issues. In other cases, estimates of cost savings or other  benefits would depend upon what congressional and executive branch  decisions were made, including how certain GAO recommendations are  implemented. Additionally, information on program performance, the level  of funding in agency budgets devoted to overlapping or fragmented  programs, and the implementation costs that might be associated with  program consolidations or terminations, are factors that could impact  actions to be taken as well as potential savings. Tables 3 and 4  summarize the cost-savings and revenue enhancing areas that we  reported on in March 2011 and February 2012.
section_title: DHS Can Improve the Efficiency and Effectiveness of its Operations by Continuing to Address Themes That Have Impacted its Progress
paragraphs: Our work at DHS 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. 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 R&D management. These themes provide insights that can  inform DHS’s efforts, moving forward, 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 DHS for the future  and enable it to satisfy the expectations set forth by the Congress, the  administration, and the country.
Leading and coordinating the homeland security enterprise. While  DHS is one of a number of entities with a role in securing the homeland, it  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 missions.  Before DHS began operations, we reported that the quality and continuity  of the new department’s leadership would be critical to building and  sustaining the long-term effectiveness of DHS and achieving homeland  security goals and objectives. We further reported that to secure the  nation, DHS must form effective and sustained partnerships between  components and also with a range of other entities, including federal  agencies, state and local governments, the private and nonprofit sectors,  and international partners.
DHS has made important strides in providing leadership and coordinating  efforts. For example, it 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.  However, DHS needs to take additional action to forge effective  partnerships and strengthen the sharing and utilization of information,  which has affected its ability to effectively satisfy its missions. For  example, in July 2010, we reported that the expectations of private-sector  stakeholders have not been met by DHS and its federal partners in areas  related to sharing information about cyber-based threats to critical  infrastructure. In 2005, we designated information-sharing for homeland security as high risk because the federal government faced serious  challenges in analyzing information and sharing it among partners in a  timely, accurate, and useful way.failure to link information about the individual who attempted to conduct  the December 25, 2009, airline bombing, prevented the individual from  being included on the federal government’s consolidated terrorist  watchlist, a tool used by DHS to screen for persons who pose risks to the  country. The federal government and DHS have made progress, but more  work remains for DHS to streamline its information sharing mechanisms  and better meet partners’ needs. Moving forward, it will be important that  DHS continue to enhance its focus and efforts to strengthen and leverage  the broader homeland security enterprise, and build off the important  progress that it has made thus far. In addressing ever-changing and  complex threats, and with the vast array of partners with whom DHS must  coordinate, continued leadership and stewardship will be critical in  achieving this end.
GAO, High-Risk Series: An Update, GAO-11-278, (Washington, D.C.: Feb. 2011). acquisition and information technology management policies and  controls, to provide enhanced guidance on investment decision making.  DHS also reduced its financial management material weaknesses and  developed strategies to strengthen human capital management. For  example, in fiscal year 2011, DHS moved from a Disclaimer of Opinion to  a Qualified Audit Opinion on its Balance Sheet and Statement of  Custodial Activity for the first time since 2003. However, DHS has not  been able to obtain an unqualified audit opinion on its consolidated  financial statements (i.e., prepare a set of financial statements that are  considered fairly presented) though its current goal is to receive an  unqualified, or clean opinion, on the departmentwide consolidated  financial statement for fiscal year 2013.
DHS needs to continue to demonstrate sustainable progress in  addressing its challenges, as these issues have contributed to schedule  delays, cost increases, and performance problems in major programs  aimed at delivering important mission capabilities. For example, we  reported on numerous cost, schedule, and performance risks, and  concluded that DHS had not economically justified its investment in the  Secure Border Initiative Network, DHS’s border security technology  program. More specifically, DHS did not adequately define  requirements, perform testing, or oversee contractors, delaying security  enhancements on the southwest border. After initiating a departmentwide  assessment of the program, the Secretary of Homeland Security froze  program funding and, at the completion of the assessment in January  2011, the Secretary decided to end the Secure Border Initiative Network  as originally conceived after investing nearly $1 billion in the program.  DHS also has not yet fully implemented its roles and responsibilities for  developing and implementing key homeland security programs and  initiatives. For example, FEMA has not yet developed a set of target  capabilities for disaster preparedness or established metrics for  assessing those capabilities to provide a framework for evaluating  preparedness, as required by the Post-Katrina Emergency Management  Reform Act of 2006. Moreover, DHS does not yet have enough  personnel with required skills to carry out activities in various areas, such  as acquisition management; and is in the process of modernizing its  financial management system, impacting its ability to have ready access  to reliable information for informed decision making. Moving forward,  addressing these management challenges will be critical for DHS’s  success, as will be the integration of these functions across the  department to achieve efficiencies and effectiveness.
GAO, Aviation Security: DHS and TSA Have Researched, Developed, and Begun  Deploying Passenger Checkpoint Screening Technologies, but Continue to Face  Challenges, GAO-10-128 (Washington, D.C.: Oct. 7, 2009). using nuclear and radiological materials through coordinated activities.
However, the strategic plan for the architecture did not include some key  components, such as funding needed to achieve the strategic plan’s  objectives, or monitoring mechanisms for determining programmatic  progress and identifying needed improvements.
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.
Moreover, we have reported on the need for enhanced performance  assessment, that is, evaluating existing programs and operations to  determine whether they are operating as intended or are in need of  change, across DHS’s missions.programs is critical for helping the department, Congress, and other  stakeholders more systematically assess strengths and weaknesses and  inform decision making. In recent years, DHS has placed an increased  emphasis on strengthening its mechanisms for assessing the  performance and effectiveness of its homeland security programs. For  example, DHS established new performance measures, and modified  existing ones, to better assess many of its programs and efforts.  However, our work has 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 that CBP had invested $2.4 billion in tactical  infrastructure (fencing, roads, and lighting) along the southwest border,  but could not measure the impact of this investment in tactical   Information on the performance of  infrastructure on border security. 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.
section_title: Concluding Observations
paragraphs: Given DHS’s significant 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  that they 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. 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. However,  our work has shown that DHS can take actions to reduce overlap and  potential unnecessary duplication to improve the efficiency of its  operations and achieve cost-savings in several areas. Further, while DHS  has made progress, additional actions are needed to strengthen  partnerships with stakeholders, improve its management processes and  share information, and enhance its risk management and performance- measurement efforts to enhance effectiveness and achieve efficiencies  throughout the department.
Chairman McCaul, Ranking Member Keating, and Members of the  Subcommittee, this concludes my prepared testimony. I would be pleased  to respond to any questions that members of the Subcommittee may  have.
section_title: Contacts and Acknowledgments
paragraphs: 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 Chris Currie, Emily Gunn, and Taylor  Matheson. Key contributors for the previous work that this testimony is  based on are listed within each individual product.
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