Homeland Security management still 'high risk', GAO says

Integrating and transforming agencies into the Homeland Security Department continues to be a "high-risk area" for the government with "serious consequences" for national security, according to the Government Accountability Office.

"DHS has made some progress, but significant management challenges remain to transform DHS into a more efficient organization while maintaining and improving its effectiveness in securing the homeland," auditors said in a report (GAO-05-573T) released Wednesday.

Ongoing challenges include providing focused management, monitoring transformation and integration, improving strategic planning, managing human capital, strengthening financial management infrastructure, establishing an information technology management framework, managing acquisitions, and coordinating research and development.

"Failure to effectively carry out its mission continues to expose the nation to potentially serious consequences," GAO added.

The watchdog agency first designated DHS integration and management a high-risk area in 2003.

"Since our 2003 designation of DHS's transformation as high-risk, DHS leadership has provided a foundation for maintaining critical operations while undergoing transformation," the report stated.

For example, DHS has reduced the number of financial management service centers from 19 to 8, consolidated acquisition support for 22 legacy agencies within eight major procurement programs, consolidated 22 different human resources offices to seven, and consolidated bank card programs from 27 to 3.

Despite "real and hard-earned progress," however, DHS still has significant challenges to overcome in all of its management areas, the report added.

The report noted that it can take 5 to 7 years to successfully transform large public and private organizations. Although DHS has been operating for about two years, it has had two secretaries, three deputy secretaries, and additional turnover at the undersecretary and assistant secretary levels. The report noted that the average tenure of political leadership in all federal agencies averaged slightly less than three years from 1990 to 2001.

"While it is understood that a transformation of this magnitude takes time, and that DHS's immediate focus has been on its homeland security mission, we see the need for DHS to increase its focus on management issues," GAO said. "This is important not only to DHS itself, but also to the nation's homeland security efforts, because, in addition to managing its own organization, DHS plays a larger role in managing homeland security and in coordinating with the activities of other federal, state, local, and private stakeholders."