FederalDaily - November 28, 2005

GAO Reports Federal Financial Management Progress

In 1990, the Chief Financial Officers (CFO) Act was enacted. The Government Accountability Office (GAO) recently reported on progress to date in implementing the Act. “Prior to passage of the CFO Act, the seemingly never ending disclosures of fraud, waste, abuse and mismanagement in federal programs painted a picture of a government unable to manage its programs,” GAO said, adding that “federal financial management was in great need of fundamental reform.” In the 15 years since the enactment of the CFO Act, the federal government has made substantial progress in strengthening financial management, GAO reported. There are now qualified CFOs across government. Financial management systems and internal control have been strengthened. Generally accepted government accounting standards have been developed. For fiscal year 2005, 18 of 24 CFO agencies received clean audit opinions on their financial statements, up from just six in fiscal year 1996.

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Brain Drain

A new Partnership for Public Service paper says 44 percent of all federal workers will become eligible to retire over the next five years, with 61 percent reaching eligibility four years later. The federal civil service has twice as many workers over age 45 (60 percent) as the private sector (31 percent). In addition to anticipated retirements, “well over 200,000 federal employees are expected to resign over the next five years, resulting in a potential loss of nearly 900,000 workers,” the issue paper stated. The Partnership for Public Service also said:

• 42 percent of the Senior Executive Service is projected to retire by 2010;
• 87 percent of claims assistants and examiners in the Social Security Administration and 94 percent of their administrative law judges will reach retirement eligibility by 2010; and
• the Federal Aviation Administration’s air traffic controller attrition rates are estimated to triple by 2012.

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Mandating Requirements for DHS Leaders

Sens. Daniel K. Akaka, D-Hawaii, Frank R. Lautenberg, D-N.J., and Tom Carper, D-Del., on Nov. 17 introduced the Department of Homeland Security Qualified Leaders Actto establish minimum qualification standards for most Senate-confirmed positions in the Department of Homeland Security (DHS). “We must ensure that the right people are leading DHS,” said Akaka. “Hurricane Katrina and the resignation of Undersecretary Michael Brown have raised concerns regarding the experience and qualifications of political appointees in the federal government.” The proposed legislation delineates requirements for the Senate-confirmed positions in DHS based on their compensation under the Executive Schedule. For example, the most senior officials, those in Executive Level II and III, will be required to have at least five years of management experience, five years of experience in a field relevant to the position for which the individual is nominated and a demonstrated ability to manage a substantial staff and budget.

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List of Top DOJ Challenges

The Department of Justice (DOJ) Office of the Inspector General (OIG) issued a Nov. 18 report on top management and performance challenges in DOJ in 2005. According to the OIG report, the top challenges are:

1. counterterrorism;
2. sharing of law enforcement and intelligence information;
3. department and FBI intelligence-related reorganizations;
4. information technology systems planning and implementation;
5. information technology security;
6. financial management and systems;
7. grant management;
8. detention and incarceration;
9. judicial security; and
10. supply and demand for drugs.

To read the full OIG report, go to: www.usdoj.gov/oig/new.htm.

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