High-risk list: Customs off, FAA and Forest Service on

The General Accounting Office removed the Customs Service from its list of high-risk federal programs, but added the Federal Aviation Administration and the Forest Service, according to a report released Monday.

FAA and the Forest Service joined the list of 26 federal programs at high risk of fraud, waste, abuse and mismanagement because their financial management systems are weak, GAO reported.

Customs was on the list for the same reason, but the agency has improved controls over its finances over the past several years, GAO said. Customs has received unqualified opinions on its financial statements for the past two years.

Other high-risk challenges GAO identified include the year 2000 computer problem, information security, the Medicare program, Energy Department contract management and Housing and Urban Development programs. Ten of the 26 problems on GAO's list have been there since 1990, when GAO first began compiling the list.

In addition to the high-risk update, GAO released a compilation of reports covering additional pitfalls and obstacles federal managers face.

In 21 new reports filling more than 1,000 pages, GAO auditors described management problems and challenges across government and specific to 20 major departments and agencies. The series, titled Performance and Accountability Series: Major Management Challenges and Program Risks, was requested by House Majority Leader Dick Armey, R-Texas, Rep. Dan Burton, R-Ind., Rep. John Kasich, R-Ohio, Sen. Pete Domenici, R-N.M., Sen. Larry Craig, R-Idaho, and Sen. Fred Thompson, R-Tenn.

Challenges facing agencies across the government include financial management, information technology management, managing human resources, learning how to develop performance measures and improving program results, GAO said.

"Agencies need to recognize that implementing performance-based management is not a one-time occurrence but must become the routine basis for how agencies do business and respond to current and emerging challenges," GAO reported.

Duplication and overlap among federal programs is also a systemic problem, GAO said. For example, the Agriculture Department inspects food plants that produce open-faced meat sandwiches and pizzas with a meat topping, while the Food and Drug Administration inspects those plants that produce traditional meat sandwiches and non-meat pizzas.

Two weeks ago, Armey and Burton urged fellow lawmakers in a "Dear Colleague" letter to conduct more oversight investigations and hearings on federal management.

"There's no room in the 21st century for a federal government with 19th century efficiency and management," Armey said Monday.