Planning and Programming
at GAO
A Case Study
Victor Rezendes
Managing Director
Strategic Issues
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GAO’s Role
• GAO’s role has been to support the Congress in carrying out its
constitutional responsibilities and to help improve the performance
and assure accountability of government for the benefit of the
American people
• We do this in four fundamental ways:
• Oversight–preventing and detecting fraud, waste, and abuse
• Insight–making government more efficient and effective
• Foresight–examining the role of government
• Adjudication–bid protest resolution, legal opinions (e.g.
appropriations law)
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Annual Performance Measures
(1998 and 2002)
Actual
Performance measure
FY 1998
FY 2002
$19.7
$37.7
537
906
Past recommendations implemented
69%
79%
Return on investment (ROI)
58:1
88:1
Financial benefits per employee (millions)
$6.1
$11.7
93%
96%
Financial benefits (billions)
Other benefits
Timeliness
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The Nature of GAO’s Work
FY 1966
FY 1981
90
33
FY 1998
2
5
65
10
R& D
23
72
Mandates
FY 2002
11
15
74
Requests
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Transformation is about creating
the future rather than perfecting
the past
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The Evolving Role of the SAI
• Our rapidly changing world is changing expectations
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Increasing global interdependency
Changing security threats
Transition to knowledge-based economies
Changing demographics and quality of life issues
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Rapidly evolving science and technology
Rising health care costs and challenges
Evolving governance structures
Public expectations for improved government performance
and accountability
• Long-range fiscal challenges
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Composition of Federal Spending
By Budget Function
1962
31%
1982
2002
25%
34%
17%
32%
23%
50%
6%
13%
21%
11%
9%
Defense
Social Security
Net interest
All other spending
9%
19%
Medicare & Medicaid
Source: Budget of the United States Government, FY 2004, Office of Management and Budget.
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Composition of Spending as a Share of GDP
Assuming Discretionary Spending Grows with GDP after 2003
and the 2001 Tax Cuts Do Not Sunset
Percent of GDP
50
40
Revenue
30
20
10
0
2000
2015
2030
2050
Fiscal year
Net interest
Social Security
Medicare & Medicaid
All other spending
Note: Assumes currently scheduled Social Security benefits are paid in full throughout the simulation period.
Source: GAO’s January 2003 analysis.
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Federal Government:
Doing More with Fewer People
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GAO’s Budget Authority and FTE Levels
Fiscal Years 1992-2002
6000
Dollars in millions
FTE level
600
5000
500
4000
400
3000
300
2000
200
1000
100
0
1994
1992
1996
1998
2000
2002
0
Fiscal years
Full Time
Equivalents
Budget authority*
*Budget authority is shown in inflation-adjusted 1992 dollars
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Effects of Responses to Budgetary
Cuts, Downsizing, and Outsourcing
• Lack of strategic alignment
• Inadequate accountability for performance
• Skills imbalances
• Workload imbalances for remaining skilled workers
• Succession planning challenges
• Outdated performance appraisal systems
• Reduced investments in people
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Strategic Plan
for Serving the Congress
Annual Planning
• Annual Performance Plan
• Budget Request
(Resource Allocation)
Organizational Structure
• Layers, units and locations
• Horizontal and vertical axes
Accountability
• Performance Measurement
• Performance Management
• P&A Report
Capacity
• Workforce Planning
• Knowledge & Skills Inventory
• Training
• Information Technology
Risk-Based Engagement Management Process
(Portfolio Management)
• Quality Assurance
Strategic Planning
• Six year plan is updated every 2 years to coincide with each
new Congress
• First strategic plan prepared in 2000; first update issued June
2002 covering FY 2002-2007
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Strategic Planning
• Planning process based on model practices of other
organizations
• Case study done on first cycle; update cycle incorporated
lessons learned
• Planning process is ongoing and evolving
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Client Outreach and Consultation
• Plan begins and ends with the Congress
• Annual outreach effort prior to developing plan, involving all
GAO teams and the Comptroller General:
• Determining agenda
• Feedback on performance
• Systematic feedback on products
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Stakeholder Consultation
• Major GAO stakeholders = other congressional agencies,
accountability organizations, federal agencies, public policy
organizations
• Understanding stakeholders helps to identify our strengths
and weaknesses
• Consultation can also lead to collaboration
• Joint planning—identifying opportunities to pursue
common goals and objectives
• Developing strategic relationships to accomplish common
goals
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External (Environmental) Scan
• Identification of emerging issues and trends
• “Theme team” originally, now institutionalizing process
• “Knowledge stewards”
• Special studies
• Regional environmental scans
• Speaker series
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Internal Scan
• Assessments of internal capacities: human capital,
processes, technology, environment
• Sources
• Employee feedback
• Skills inventory
• Concept of operations
• Others
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Developing and Updating the Plan
• Both managers and staff develop and update plan
• Senior leaders — Overall mission, core values, and
strategic goals and objectives
• Team managers and staff — Specific performance goals
and key efforts
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Communication
• Draft plan reviewed internally and externally; posted to our
Web site with electronic comment feature
• Strategic plan and performance and accountability plans and
reports are online
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GAO’s Organization
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GAO’s Human Capital Profile
FY 1989, 1998, 2001, and Estimated FY
2002
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GAO’S Efforts to Develop a Skilled
Workforce
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Self-assessment checklist
Human capital profile
Workforce & succession planning
Employee feedback survey &
suggestion program
Employee Advisory Council
Enhanced employee
communications & participation
Skills & knowledge inventory
Employee preference survey
Frequent flyer miles
Training/development
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Recruiting & college relations
Recognition & rewards
Flexitime & flexiplace
Business casual dress & business
cards
Enabling technologies
Opportunity/inclusiveness
Mentor/buddy programs
Commuting subsidy
College loan repayment
Competency-based employee
appraisal system
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Competency-Based
Performance Appraisal
• Clear link to our strategic plan and core values
• Fair, honest, accurate and non-discriminatory assessment
of performance based on standards that are valid, properly
applied, and transparent to employees
• Sound basis for enhancing the performance capacity of all
staff, rewarding high-performing staff, and dealing with
“below expected performers.”h with “below expected”
performers
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Institutional Risk Management
• Congressional and agency protocols (policies, procedures,
transparency)
• International accountability and other organizations
protocols planned
• Domestic accountability protocols also being considered
• Partnering with other accountability organizations
• Constructive engagements with agencies
• Client feedback (e.g. surveys)
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Institutional Risk Management
• Seven step engagement management process
1. Formally accept engagement
2. Approve initiation of engagement
3. Commit to methodology and milestones
4. Stakeholders agree on message
5. Approval by senior managers
6. Receipt of comments by audited agency
7. Issue and distribute product publicly
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GAO High-Risk Program
• Started in 1990 with focus on fraud, waste, abuse, and
mismanagement
• Evolved to include major economy, efficiency, effectiveness,
and transformation challenges
• Updates issued at the start of each new Congress
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Identifying High Risk in
Government Programs
Risk is seriously
detrimental to
Health or safety
Service delivery
National security
National defense
Economic growth
Privacy or citizens’ rights
Risk could result in
Significantly impaired service or program failure
Significantly reduced effectiveness or reduced
efficiency
Injury or loss of life
Unreliable decision-making data
Reduced confidence in government
Unauthorized disclosure, manipulation or
misuse of sensitive information
Quantitative threshold: $1 billion in assets or revenues must be at risk.
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GAO’s
High Risk
List
High Risk Areas
Year Designated High Risk
Addressing Challenges in Broad-based Transformations
Protecting Information Systems Supporting the Federal Government and The
Nation’s Critical Infrastructures
Strategic Human Capital Management*
U.S. Postal Service Transformation Efforts and Long-Term Outlook*
Implementing and Transforming the New Department of Homeland Security
Modernizing Federal Disability Programs *
Federal Real Property *
Ensuring Major Technology Investments Improve Services
FAA Air Traffic Control Modernization
IRS Business Systems Modernization
DOD Systems Modernization
Providing Basic Financial Accountability
DOD Financial Management
IRS Financial Management
Forest Service Financial Management
FAA Financial Management
Reducing Inordinate Program Management Risks
Medicare*
Collection of Unpaid Taxes
DOD Inventory Management
Student Financial Aid Programs
HUD Single-Family Mortgage Insurance and Rental Assistance Programs
Earned Income Credit Noncompliance
DOD Support Infrastructure Management
Medicaid Program *
Managing Large Procurement Operations More Efficiently
DOD Weapon Systems Acquisition
Department of Energy Contract Management
NASA Contract Management
DOD Contract Management
1997
2001
2001
2003
2003
2003
1995
1995
1995
1995
1995
1999
1999
1990
1990
1990
1990
1994
1995
1997
2003
1990
1990
1990
1992
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* Additional authorizing legislation is likely to be required as one element of addressing this high-risk area.
Next Steps
• Institutionalize environmental scan
• Build on stakeholder relationships
• Better align strategic planning with annual planning and budget
processes
• Implement balanced scorecard of performance measures
• GAO WEB Site : WWW.GAO.GOV
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