Major Management Challenges and Program Risks
Department of Commerce Gao ID: GAO-03-97 January 1, 2003In its 2001 performance and accountability report on the Department of Commerce, GAO identified important trade, export, weather prediction, and other issues facing the department. The information GAO presents in this report is intended to help to sustain congressional attention and a departmental focus on continuing to make progress in addressing these challenges. The majority of these challenges reflect the diverse and complex nature of the department's work and the difficult, long-term problems the department is working to manage. This report is part of a special series of reports on governmentwide and agency-specific issues.
Commerce has taken steps to address the challenges that GAO previously identified. Because they reflect the complex nature of Commerce's work, these challenges continue. In addition, GAO has identified planning and conducting an accurate, cost-effective 2010 census and improving other commerce statistical programs as a new challenge for Commerce. Census 2010 and other statistical programs: In general, Commerce's implementation of the 2000 census was consistent with its operational plans. Now it must plan and implement a cost-effective 2010 census of an increasingly large and diverse population as well as ensure the accuracy of its other statistical products. Promoting and liberalizing trade while creating jobs: Commerce has improved the accuracy and completeness of its trade agreement archive and has met performance targets related to creating jobs. In helping U.S. exporters gain access to foreign markets, Commerce needs to continue to support negotiations on trade agreements, monitor and enforce these agreements, and assist potential exporters. Commerce also needs to continue its assistance in areas of the nation experiencing high unemployment, low income, or severe economic distress. Strengthening export controls while facilitating global enterprise: In response to GAO's concerns, Commerce established a group to monitor trends in exports of controlled items to Hong Kong. Commerce needs to continue to control and require licenses for exporting items that may pose a national security risk or foreign policy concern. Improving predictions of weather and climate and management of key natural resources: Commerce reported that it met many of its performance targets for improving weather predictions and forecasts. Continuing to provide scientific, technical, and managerial expertise to monitor and predict changes in the Earth's environment and to conserve and manage U.S. marine and coastal resources are important for Commerce. Improving financial management functions: Commerce has made substantial progress in its financial management activities in recent years. In order to comply with applicable laws and safeguard its assets, Commerce should continue to emphasize improvements in financial management and complete its planned financial system.
GAO-03-97, Major Management Challenges and Program Risks: Department of Commerce
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Performance and Accountability Series:
January 2003:
Major Management Challenges and Program Risks:
Department of Commerce:
GAO-03-97:
A Glance at the Agency Covered in This Report:
The Department of Commerce‘s programs include:
* conducting the decennial census and over 200 other demographic
and economic
censuses and surveys;
* monitoring hundreds of international trade agreements and
supporting export
policies that affect millions of domestic jobs;
* providing assistance to distressed communities;
helping stop the proliferation of weapons of mass destruction and
providing
technical assistance to other countries concerning export controls;
* warning the public about severe weather, such as hurricanes and
tornadoes;
* supporting the management of living marine resources, including
300 marine
species in 2,000,000 square miles of ocean;
* fostering telecommunications policies that promote economic and
technical
advancement; and
* protecting patents, trademarks, and intellectual property rights.
Figure: The Department of Commerce‘s Budgetary and Staff Resources:
[See PDF for image]
[End of figure]
This Series:
This report is part of a special GAO series, first issued in 1999
and updated
in 2001, entitled the Performance and Accountability Series: Major
Management
Challenges and Program Risks. The 2003 Performance and Accountability
Series
contains separate reports covering each cabinet department, most
major
independent agencies, and the U.S. Postal Service. The series also
includes a
governmentwide perspective on transforming the way the government
does
business in order to meet 21st century challenges and address
long-term fiscal
needs. The companion 2003 High-Risk Series: An Update identifies
areas at high
riskdue to either their greater vulnerabilities to waste, fraud,
abuse, and
mismanagement or major challenges associated with their economy,
efficiency, or
effectiveness. A list of all of the reports in this series is
included at the
end ofthis report.
GAO Highlights:
Highlights of GAO-03-97, a report to Congress included as part of
GAO‘s
Performance and Accountability Series:
January 2003:
Performance and Accountability Series: Department of Commerce:
Why GAO Did This Report:
In its 2001 performance and accountability report on the
Department of
Commerce, GAO identified important trade, export, weather
prediction, and
other issues facing the department. The information GAO
presents in this
report is intended to help to sustain congressional attention
and a
departmental focus on continuing to make progress in addressing
these
challenges. The majority of these challenges reflect the
diverse and complex
nature of the department‘s work and the difficult, long-term
problems the
department is working to manage. This report is part of a
special series of
reports on governmentwide and agency-specific issues.
What GAO Found:
Commerce has taken steps to address the challenges that GAO
previously
identified. Because they reflect the complex nature of
Commerce‘s work,
these challenges continue. In addition, GAO has identified
planning and
conducting an accurate, cost-effective 2010 census and
improving other
commerce statistical programs as a new challenge for Commerce.
* Census 2010 and other statistical programs. In general,
Commerce‘s
implementation of the 2000 census was consistent with its
operational plans.
Now it must plan and implement a cost-effective 2010 census
of an increasingly
large and diverse population as well as ensure the accuracy
of its other
statistical products.
* Promoting and liberalizing trade while creating jobs.
Commerce has
mproved the accuracy and completeness of its trade agreement
archive and
has met performance targets related to creating jobs. In
helping U.S.
exporters gain access to foreign markets, Commerce needs to
continue to
support negotiations on trade agreements, monitor and
enforce these agreements,
and assist potential exporters. Commerce also needs to
continue its
assistance in areas of the nation experiencing high
unemployment, low income,
or severe economic distress.
* Strengthening export controls while facilitating global
enterprise. In
response to GAO‘s concerns, Commerce established a group
to monitor trends
in exports of controlled items to Hong Kong. Commerce needs
to continue to
control and require licenses for exporting items that may
pose a national
security risk or foreign policy concern.
* Improving predictions of weather and climate and
management of key
natural resources. Commerce reported that it met many of
its performance
targets for improving weather predictions and forecasts.
Continuing to provide
scientific, technical, and managerial expertise to monitor
and predict
changes in the Earth‘s environment and to conserve and
manage U.S. marine
and coastal resources are important for Commerce.
* Improving financial management functions. Commerce has
made substantial
progress in its financial management activities in recent
years. In order
to comply with applicable laws and safeguard its assets,
Commerce should
continue to emphasize improvements in financial management
and complete
its planned financial system.
What Remains to be Done:
GAO believes that Commerce should continue to
* take steps to maximize achievement of its mission,
especially as it
relates to statistical programs, trade, exports, job
creation, weather
prediction, and natural resources; and
* improve its financial management systems and correct
its remaining
internal control weaknesses.
www.gao.gov/cgi-bin/getrpt?GAO-03-97.
To view the full report, click on the link above.
For more information, contact Thomas J. McCool at (202) 512-8678 or
mccoolt@gao.gov.
Contents:
Transmittal Letter:
Major Performance and Accountability Challenges:
GAO Contacts:
Related GAO Products:
Performance and Accountability and High-Risk Series:
This is a work of the U.S. Government and is not subject to
copyright protection in the United States. It may be
reproduced and distributed in its entirety without further
permission from GAO. It may contain copyrighted graphics,
images or other materials. Permission from the copyright
holder may be necessary should you wish to reproduce
copyrighted materials separately from GAO‘s product.
Transmittal Letter:
January 2003:
The President of the Senate
The Speaker of the House of Representatives:
This report addresses the major management challenges and program risks
facing the Department of Commerce as it seeks to promote job creation
and improve living standards for all Americans by creating
infrastructure that supports economic growth, technological
competitiveness, and sustainable development. The report discusses the
actions that Commerce has taken and that are under way to address the
challenges that GAO identified in its Performance and Accountability
Series 2 years ago, and major events that have occurred and
significantly influence the environment in which Commerce carries out
its mission. Also, GAO summarizes the challenges that remain, describes
new challenges that have emerged, and further actions that GAO believes
are needed.
This analysis should help the new Congress and the administration carry
out their responsibilities and improve government for the benefit of
the American people. For additional information about this report,
contact Thomas J. McCool, Managing Director, Financial Markets and
Community Investment, at (202)-512-8678 or at mccoolt@gao.gov.
David M. Walker
Comptroller General
of the United States:
Signed by David M. Walker:
[End of section]
Major Performance and Accountability Challenges:
In January 2001, we reported that the Department of Commerce faced five
performance and accountability challenges.[Footnote 1] These
challenges were
(1) increasing the access of U.S. businesses to international trade;
(2) ensuring that the United States is secure from the proliferation of
dual-use commodities and chemical weapons; (3) ensuring that weather
forecasts and severe weather warnings are accurate and timely;
(4) improving the economy in distressed areas; and (5) addressing other
challenges that included improving financial management, completing
evaluations of the 2000 Census, and pursuing cost-effective
alternatives for managing the research fleet used to acquire marine
data.
Since our January 2001 report, the terrorist attacks of September 11,
2001, have had an immediate and long-term impact on Commerce‘s
operations and Commerce has taken some specific steps to address the
agency‘s challenges. In its accountability report, Commerce noted that
it supported search and recovery efforts at the World Trade Center site
and at the Pentagon with mapping, remote sensing, aerial photography,
and other technology-related services and expertise available through a
number of its bureaus, and provided grants to assist with economic
recovery.[Footnote 2] For the long term, Commerce states that, while
the terrorist attacks did not alter its mission, several of its
component agencies will have a continued role in protecting U.S.
security. For example,
* The National Institute of Standards and Technology is conducting
research and standards development projects related to safer
structures, secure information systems, threat detection and
protection, and law enforcement.
* The Bureau of Industry and Security[Footnote 3] continues to assist
federal agencies with identifying physical and cyber assets that are
essential to protecting the national and economic security of the
United States and implementing appropriate export controls over those
assets.
* The National Oceanic and Atmospheric Administration (NOAA) provides
information to the Coast Guard and others to ensure port and maritime
security.
Furthermore, Commerce has made progress in addressing the performance
and accountability challenges that it faces. In its fiscal year 2001
accountability report, Commerce indicated that it has initiated steps
to address information security weaknesses that we and others had
identified, continued to improve its financial management systems, and
met or exceeded many of its performance targets for fiscal year 2001.
For example, Commerce reported that, among other things, it met or
exceeded performance targets for detecting illegal export transactions
and assisting firms who exported goods for the first time, creating
jobs and making private sector investments in distressed communities,
and issuing flash flood warnings. In addition, Commerce has made
improvements related to recommendations that we have included in our
reports. For example, Commerce implemented actions to improve the
accuracy and completeness of its trade agreement archive and
established a group to monitor trends in exports of controlled items to
Hong Kong.
The majority of Commerce‘s performance and accountability challenges
reflect the diverse and complex nature of the department‘s work and the
difficult, long-term problems the department is working to manage.
Consequently, these challenges have generally remained the same since
our 2001 report. Because of the anticipated cost and planning
difficulties associated with the 2010 Census, we have added ’planning
and conducting an accurate, cost-effective 2010 Census and improving
other Commerce statistical programs“ as a major challenge. Unless this
challenge is aggressively addressed, the 2010 Census may become a high-
risk area as happened with the 2000 Census. Three other challenges--
those related to export, trade, and weather--encompass four of the
challenges that we described in our 2001 report. We combined the
challenges of increasing the access of U.S. businesses to international
trade and improving the economy in distressed areas into one challenge-
-promoting and liberalizing trade while creating jobs. In addition, we
describe the challenges related to exports and weather more broadly
and, thus, include more activities. These changes make the challenges
more equivalent to each other in their importance to the agency‘s
mission and align them with Commerce‘s strategic plan. The fifth
challenge has been reduced to only include improving financial
management because Commerce has nearly completed its efforts related to
the 2000 Census and has explored alternatives related to managing its
research fleet. While we do not identify them as agency performance and
accountability challenges, this report describes challenges that
Commerce faces in the areas that we have identified as governmentwide
high-risk areas--strategic human capital management, information
security weaknesses, and managing federal real property.
Figure:
Performance and Accountability Challenges:
* Plan and conduct an accurate, cost-effective 2010 Census and improve
other Commerce statistical programs:
* Help U.S. exporters gain access to foreign markets, and continue to
help generate and retain jobs and stimulate business growth in areas of
the nation experiencing high unemployment, low income, or severe
economic distress:
* Continue to control and require licenses for exporting items that may
pose a national security risk or foreign policy concern:
* Provide scientific, technical, and managerial expertise to monitor
and predict changes in the Earth‘s environment and to conserve and
manage U.S. marine and coastal resources:
* Improve financial management departmentwide and complete
implementation of financial systems:
Planning and Conducting an Accurate, Cost-Effective 2010 Census and
Improving Other Commerce Statistical Programs:
Commerce is one of the nation‘s principal statistical agencies. The
department‘s Bureau of the Census (Census) and Bureau of Economic
Analysis (BEA), along with its other statistical programs, accounted
for about 17 percent of the estimated $4.3 billion spent on federal
statistical programs in 2002. Essential for providing demographic,
economic, and other data critical to the nation‘s well being, several
department programs face significant management challenges.
One of our long-standing concerns has been the decennial census. A
successful head count is critical because the Constitution requires a
census to reapportion the House of Representatives. Census data are
also used to redraw congressional districts, allocate billions of
dollars in federal assistance to state and local governments, and for
many other public and private sector purposes.
We named the 2000 Census a high-risk area in February 1997 because
formidable challenges surrounded key census-taking operations.
Although we removed the high-risk designation in 2001 when Census
generally implemented the 2000 tally consistent with its operational
plans, our addition of the 2010 Census to the current list of
performance and accountability challenges reflects our growing concern
over the numerous obstacles to a cost-effective head count. Indeed, as
Census plans for 2010, it confronts many of the same difficulties it
faced in 2000, as well as some newly emerging uncertainties. We will
continue to review the planning and execution of the 2010 Census over
the remainder of the decade, paying particular attention to how Census
responds to these issues. Unless significant progress is made in
addressing them, we may again designate the decennial census a high-
risk area.
The principal challenge Census faces in 2010 is the near-daunting task
of cost-effectively counting an ever-larger and increasingly diverse
population with a design that must be responsive to the needs and
interests of a broad spectrum of stakeholders that include Congress,
federal agencies, state and local governments, advocacy groups, and the
scientific community. However, as we reported in December 2001, the
cost of the decennial census has escalated dramatically, rising from
$13 per housing unit in 1970 to $56 per housing unit for the 2000
Census (in constant fiscal year 2000 dollars).[Footnote 4] Further, the
$6.5 billion spent on the 2000 Census was nearly double the $3.3
billion spent on the 1990 Census, and initial Census estimates of the
cost of the 2010 tally range from $10 billion to $12 billion.
Census attributes the cost increase to its efforts to secure a complete
count in the face of ever-rising enumeration challenges such as
achieving an acceptable response rate to the mail-back questionnaire.
Although Census achieved similar response rates in 1990 and 2000 (65
percent in 1990 and 64 percent in 2000), it spent far more money on
outreach and promotion in 2000: about $3.19 per household in 2000
compared with $0.88 in 1990 (in constant fiscal year 2000 dollars), an
increase of 260 percent. For 2010, Census confronts the prospect of
having to invest far more resources simply to match the 2000 Census
response rates.
Census‘s experience in planning the 2000 Census points to areas on
which management should focus. Key among them is reaching early
agreement with Congress on the design for the 2010 Census to ensure
adequate planning, testing, and funding levels. As late as 1995, Census
did not have a design sufficiently developed to undergo full-scale
testing for the 2000 Census. The various tests that Census conducted in
the 1990s, including a ’dress rehearsal“ in 1998, did not reveal
several problems that occurred during the actual census.[Footnote 5]
Other procedures were developed too late to test in an operational
environment. Moreover, because the administration and Congress
disagreed over Census‘s planned use of sampling, Census was not able to
finalize the 2000 design until 1999, little more than a year before
Census Day. Census‘s failure to provide Congress with sufficiently
detailed data on the impact of sampling added to the controversy.
Adding to its planning difficulties, Census lacks comprehensive data on
specific quality measures for the 2000 Census such as the size and
nature of the undercount and the quality of its master address list,
which could complicate efforts to identify best practices and to target
resources for 2010. Census also needs to strategically manage its human
capital to meet future requirements. For example, three senior census
managers left Census in 2002; in the years ahead, other key employees
will become eligible for retirement, making sound succession planning
essential.
To help address these challenges facing Census, in our recent report on
lessons learned for planning a more cost-effective 2010 Census, we
recommended that the Secretary of Commerce direct Census to document in
its future funding requests critical planning information such as:
* specific performance goals for the 2010 Census and how key procedures
and projects would contribute to those goals;
* detailed information on project feasibility, priorities, and
potential risks;
* key implementation issues and decision milestones; and:
* performance measures.
Commerce agreed with our recommendation.[Footnote 6]
Other Commerce statistical programs face challenges as well. For
example, the new Census American Community Survey (ACS), estimated to
cost $120 million to $150 million a year, is to provide more timely
household information than previously obtained every 10 years by the
census long-form questionnaire. Census believes that replacing the long
form with ACS will improve overall participation in the census because,
historically, the long form has had a lower response rate compared to
the short form. Consequently, Census believes a short-form-only census
in 2010 would produce better quality data while holding down the cost
of following up with nonrespondents.
Additionally, federal agencies that rely on census data for
distributing funds and determining program eligibility would benefit
because information for states and other large geographic areas would
be available annually, and information for the smaller areas would be
available every 5 years. Although the information will be more timely,
because of a smaller sample size, it will be less accurate than that
produced by the long form. Indeed, Census has been testing ACS since
1996, but has not yet analyzed ACS quality based on comparisons with
corresponding data from the 2000 Census to determine that ACS quality
will meet federal program and state and local government needs. If
these needs are not met, Census may not be able to justify the
elimination of the long form in 2010. In September 2002, we recommended
that, in order to facilitate the transition by federal agencies from
the use of 2000 decennial census data to the ACS, the Secretary of
Commerce direct Census to revise and expand the quality-testing and
evaluation component of the ACS development program. While Census
generally agreed with the direction of our recommendation, it expressed
a number of concerns about some of the detailed findings.[Footnote 7]
Commerce also faces challenges in improving other statistical products
such as BEA‘s national economic accounts. BEA‘s recent revisions to
preliminary estimates of gross domestic product (GDP), personal income,
and corporate profits have indicated a significantly different picture
of U.S. economic activity since the end of the twentieth century. This
year‘s regular annual revision paints a picture of a much weaker
economy, raising concerns about the reliability and integrity of BEA‘s
preliminary estimates. For example, in its midyear reestimation of
earlier forecasts of federal government receipts and expenditures, the
Congressional Budget Office noted several consequences of this year‘s
annual GDP revisions: among them, an almost 1-percent lower projection
for GDP in 2012 and a reduction in revenues due to a lower national
income attributable to wages and salaries as well as to profits.
Because of these and other critical uses of GDP, the reliability of
BEA‘s estimates warrants continued focus by Commerce.
Promoting and Liberalizing Trade While Creating Jobs:
As the largest importer and exporter of both goods and services in the
world, the United States has a major stake in building and maintaining
a system of open markets. With U.S. exports growing more than twice as
fast as total U.S. output (see figure 1), exports have become
increasingly important to the U.S. economy. Commerce is responsible for
helping U.S. exporters gain access to foreign markets. The range of
Commerce‘s activities includes (1) supporting negotiations on market-
opening trade agreements, (2) monitoring and enforcing such trade
agreements, and
(3) assisting potential exporters, especially small-and medium-sized
businesses, to take advantage of export opportunities. In addition,
through its Economic Development Administration (EDA), Commerce has
both an agency-level and a governmentwide responsibility for improving
the economy in distressed areas by, among other things, supporting job
creation and retention and stimulating industrial and commercial growth
in rural and urban areas of the nation experiencing high unemployment,
low income, or severe economic distress.
Figure 1: Growth in U.S. Exports Compared to Overall Output (Gross
Domestic Product):
[See PDF for image]
[End of figure]
Promoting and Liberalizing Trade:
Commerce supports the negotiation of trade agreements in part by co-
administering, with the U.S. Trade Representative, the majority of
private-sector trade advisory committees, authorized in the Trade Act
of 1974 to provide industry input needed for trade negotiations. In a
September 2002 report, we identified the need to revise this
system.[Footnote 8] We noted that the system has not been updated to
reflect changes in U.S. trade policy and the economy, with the result
that the system has gaps in its coverage of industry sectors, trade
issues, and stakeholders. We also noted that the leadership and
administrative support provided by Commerce and the U.S. Trade
Representative has not been sufficient to ensure that the system works
reliably. Commerce‘s limited staff, for example, have needed to focus
on processes for rechartering the advisory committees and appointing
members and have not been able to meet their responsibilities to attend
all of the advisory committees‘ meetings. We made several
recommendations aimed at making the system‘s private sector
consultation process more meaningful and reliable. While Commerce
characterized the report as thorough and fair, it urged us to make a
number of modifications with which we generally disagreed.[Footnote 9]
Commerce also faces challenges in helping to monitor and enforce the
several hundred trade-related agreements already on the books. In March
2000, we reported that the creation of a vast array of U.S. trade
agreements since the early 1980s had caused dramatic increases in the
trade monitoring and enforcement workloads at Commerce and other trade
agencies.[Footnote 10] We also found that these agencies‘ ability to
monitor and enforce trade agreements was limited due to a lack of
sufficient staff with appropriate expertise, inadequate support from
other agencies, and difficulty obtaining comprehensive input from the
private sector. Since our report was issued, Commerce has received
significant increases in funding for staff to monitor and enforce trade
agreements. However, due to the recent nature of the increases, we
believe it is too early to determine fully whether these additions have
been effective in resolving these issues.
Commerce is also the lead federal agency in conducting export promotion
programs aimed at helping U.S. businesses sell their products and
services abroad, with about 2,500 people stationed throughout the
United States and in 84 countries. Eight other federal agencies also
play important roles in the export process, and the Secretary of
Commerce, as Chairman of the interagency Trade Promotion Coordinating
Committee, has a mandate to coordinate these agencies‘ varied
activities.[Footnote 11] Among other tasks, the Secretary is to (1)
develop an annual, governmentwide strategic plan for carrying out
federal export promotion and financing programs, and
(2) identify areas of overlap and duplication among federal export
activities. However, our work evaluating the coordination of export
promotion services has indicated that Commerce has been inconsistent in
its leadership role, and that it is unclear whether the agencies are
using export promotion resources most productively. In September 2002,
we reported that the committee‘s annual strategic plans have provided
neither clear guidance concerning export agencies‘ specific goals and
responsibilities nor an assessment of progress made from year to year,
and we recommended that the committee undertake such actions.[Footnote
12] In the same report, we noted that some of the committee‘s long-
standing recommendations regarding the provision of export services
remain to be implemented, and we recommended that the committee
regularly analyze progress in these areas. In response, the committee
noted its intention to address our recommendations and to make periodic
reports to Congress on the implementation of the committee‘s
recommendations.
In its export assistance programs, Commerce seeks to increase the
number of small-and medium-sized businesses participating in
international trade by identifying export-capable firms and providing
them with export training. Our September 2001 report on small business
export training programs noted that Commerce has experienced
difficulties in recruiting qualified training participants and in
following their progress in the export process.[Footnote 13] It also
noted that Commerce and the Small Business Administration were
providing virtually identical export training programs and that the
Trade Promotion Coordinating Committee had not fully met its mandate to
eliminate duplication of export programs. We recommended that these
programs be combined and that Commerce follow up on training
participants‘ progress to assess exporter needs and consider program
adjustments. Commerce has since acted to combine the two export
training programs and has stated its intention to begin conducting
follow-up surveys of training participants.
Creating Jobs:
Through EDA, Commerce has both an agency-level and a governmentwide
responsibility for improving the economy in distressed areas.
Specifically, EDA was created to generate jobs, help retain existing
jobs, and stimulate industrial and commercial growth in rural and urban
areas of the nation experiencing high unemployment, low income, or
severe economic distress. EDA provides grants to economically
distressed communities for specific projects. In addition, through
legislation and accompanying reports, the Congress has urged EDA to
aggressively pursue efforts to increase the efficiency of the federal
response to distressed communities by working with other agencies.
EDA has made some progress in meeting the two fiscal year 2001
performance goals related to improving the economy in distressed areas-
-promoting private enterprise and job creation in economically
distressed communities and building local capacity to achieve and
sustain economic growth. For example, EDA reported that it met its
targets for state and local dollars committed to EDA-funded projects
that are intended to create jobs and exceeded its target for the
percentage of EDA investments in areas of highest distress. EDA stated
that it will discontinue reporting on certain interim and process
measures in fiscal year 2002 because it will have performance data for
some of the long-term results of its investments.
EDA also has taken steps to coordinate its work with that of other
agencies. In particular, Commerce‘s fiscal year 2003 performance plan
identifies other agencies--both inside and outside of Commerce--that
share crosscutting issues with EDA. However, EDA has not yet taken the
important next step of collaborating with other agencies to develop
common or complementary goals for improving performance in addressing
crosscutting issues.[Footnote 14] Commerce‘s responsibilities in this
area derive from a mandate in the Economic Development Administration
and Appalachian Regional Development Reform Act of 1998 (Pub. L. 105-
393, 112 Stat. 3596), which requires that other federal agencies
cooperate with Commerce in its efforts to assist distressed
communities. Furthermore, the Senate report accompanying the
legislation states that EDA should aggressively pursue efforts to
increase the efficiency of the federal response to distressed
communities by working with other agencies. As we reported in September
2000, at least nine agencies other than the Department of Commerce fund
economic development activities.[Footnote 15] These include the
Departments of Agriculture, Housing and Urban Development, Defense,
Health and Human Services, Interior, and Transportation; as well as the
Environmental Protection Agency, the Small Business Administration, and
the Appalachian Regional Commission. These agencies, along with EDA,
operate over 70 programs that can be used to support economic
development by funding activities that include constructing roads,
streets, water and sewer systems, nonresidential buildings, and
industrial parks.
Strengthening Export Controls While Facilitating Global Enterprise:
At the same time that it encourages trade, Commerce, through the Bureau
of Industry and Security, is one of two primary agencies that
administer the nation‘s export control system.[Footnote 16] Under U.S.
law, the President has the authority to control and require licenses
for exporting items that may pose a national security risk or foreign
policy concern. The risk level can vary depending on the item being
exported and the country of destination; therefore, exports of some
items involve less risk than other items and exports to some countries
involve less risk than to other countries.
Among other things, the Bureau of Industry and Security helps
administer the nation‘s export control system by processing license
applications for exports of items having both military and civilian
applications, such as chemical, biological, nuclear, and missile
technology items. Our reports have consistently identified numerous
problems in the administration of this system, including noncompliance
with the law, a weak analytical basis for making licensing decisions,
and increased processing times. In one of these reports, we recommended
that the Secretary of Commerce use available immigration data to
identify foreign nationals who could be subject to deemed export
licensing requirements and work with the other departments to develop a
risk-based program for monitoring compliance with deemed export
licenses.[Footnote 17] Commerce stated that it would explore the
practicality of our recommendation. In another report, we recommended
that the Secretaries of Commerce, State, and Defense improve the
transparency, consistency, and timeliness of the commodity
classification and commodity jurisdiction processes.[Footnote 18]
While Commerce disagreed with our findings and conclusions, it agreed
to work with other agencies and companies to implement our
recommendations.
Our August 2002 report on high-performance computers found that the
President‘s justification for raising export control thresholds did not
fully meet the requirements of law and was based on inaccurate
information provided by the computer industry and an inadequate
assessment of national security issues.[Footnote 19] Thus, we concluded
that the decision to raise the export control threshold was
analytically weak and premature, given market conditions. Similarly, in
April 2002, we found that the U.S. agencies had not conducted the
analyses necessary to create a sound basis for its licensing decisions
on exports of advanced semiconductor manufacturing equipment to
China.[Footnote 20] Our report stated that U.S. policies and practices
to control the export of advanced semiconductor technology to China are
unclear and inconsistent, leading to uncertainty among U.S. industries
about the rationale for some licensing decisions. We concluded that the
current export control system needs to be reexamined because it has not
slowed China‘s ability to obtain billions of dollars worth of advanced
semiconductor equipment. Consequently, we recommended that the
Secretaries of Commerce, Defense, and State reassess, document, and
update U.S. policy and practices on exporting semiconductor
manufacturing equipment and materials to China. The agencies disagreed
with our recommendation, stating that their current policies and
practices are sufficient for making export licensing decisions to
China. However, we disagreed because U.S. export regulations governing
China contain inherent inconsistencies and are based on outdated
government assessments of the availability of technology from non-U.S.
sources, and our recommendation remained unchanged.
In addition, our June 2001 report assessing Commerce processing times
found that license applications that took more than the maximum 90
days[Footnote 21] to review increased from about 7 percent of total
applications in fiscal year 1997 to about 13 percent in fiscal year
2000.[Footnote 22] In May 2001, we reported that Commerce‘s regulations
regarding U.S. licensing requirements for missile-related exports to
Canada had been inconsistent with the amended Export Administration Act
for over 10 years.[Footnote 23] We recommended that Commerce revise its
regulations or seek a statutory change to specifically allow for
licensing exemptions. Commerce did not agree with our recommendation,
but said it would consult with other departments and its congressional
authorizing committees on the usefulness of revising its regulations in
light of pending legislation. Since the issuance of this report,
Commerce has solicited input to proposed changes to its regulations,
but has not yet finalized the changes.
Improving Predictions of Weather and Climate and Management of Key
Natural Resources:
NOAA provides scientific, technical, and managerial expertise to
monitor and predict changes in the Earth‘s environment and to conserve
and manage U.S. marine and coastal resources. Its goals include
improving short-term weather warnings and forecasts, improving the use
of fishery resources, and preserving marine biological diversity by
balancing the use of natural resources with the management of protected
species.
Predictions of Weather and Climate:
Almost two decades ago, NOAA‘s National Weather Service (NWS) decided
to improve its weather warnings and forecasts through a nationwide
modernization program to upgrade weather observing systems such as
satellites and radars, design and develop advanced computer
workstations for forecasters, and reorganize its field office
structure. NWS recognized that improved warnings and forecasts were
essential to enhancing public safety and our nation‘s economic
productivity. However, the initial modernization effort faltered
because of schedule delays, cost overruns, and technical problems on
key systems. In reviewing these efforts in the mid-to late-1990s, we
made numerous recommendations to address these difficulties, and NWS
has acted to implement them. For example, in response to our
recommendations, NWS established an overall systems architecture,
improved the availability of its Next Generation Weather Radar, and
enhanced its Advanced Weather Interactive Processing System software
development processes.
Through modernization, NWS has achieved improvements in the accuracy
and timeliness of some weather warnings. For example, in October 1998,
we reported that the accuracy and timeliness of flash flood warnings
improved in Ventura and Los Angeles counties in California after the
Next Generation Weather Radar program was commissioned in
1996.[Footnote 24] For fiscal year 2001, NWS reported that the lead
time for flash flood warnings increased by 3 minutes over the lead time
in fiscal year 2000, and that the accuracy of winter storm warnings
increased by 5 percent over the accuracy in fiscal year 2000.
Since 2001, NWS has made plans to further improve weather forecasts and
warnings through upgrades to its supercomputer and future enhancements
to weather satellites. In addition, for fiscal year 2003, NWS has
increased some key targets for lead times and accuracy rates and
lowered or maintained targets for false alarm rates. These goals will
continue to challenge the agency as it moves to implement new weather-
observing technologies and strives to effectively use increased volumes
of weather data. For example, in July 2002, we reported on challenges
in effectively incorporating future volumes of satellite data into
weather models.[Footnote 25] While NWS plans to build its capacity to
handle increased volumes of data, more can be done to coordinate and
focus these plans.
Management of Key Natural Resources:
Part of NOAA‘s mission is to conserve and manage the U.S. marine and
coastal resources. NOAA‘s efforts in this area are centered around
three performance goals: building sustainable fisheries, sustaining
healthy coasts, and recovering protected species. In its fiscal year
2001 annual performance report, Commerce states that it met the targets
for its performance measures related to sustaining healthy coasts and
recovering protected species. Commerce did not set targets for
performance related to building sustainable fisheries because the
measures were newly developed. In its March 2002 semiannual report to
the Congress, the Office of Inspector General included increasing the
effectiveness of fishery management as one of Commerce‘s top 10
management challenges. And in its fiscal year 2001 accountability
report, Commerce included this area as one of the major issues,
challenges, and concerns for the future.
Improving Financial Management Functions:
In the financial management area, Commerce has made substantial
progress in recent years, but continues to face challenges in both
financial statement reporting and financial management systems.
Specifically, in 1996, Commerce‘s Inspector General issued a disclaimer
of opinion on Commerce‘s financial statements due to management‘s
inability to support certain account balances and deficiencies noted in
Commerce‘s internal controls. The auditors identified 39 reportable
conditions that represented significant deficiencies in the design or
operation of the internal control structure, of which 37 were
considered to be material internal control weaknesses. In contrast,
Commerce received an unqualified audit opinion on its financial
statements for fiscal year 2001--the third year in a row it received an
unqualified opinion. In addition, Commerce officials strengthened
Commerce‘s internal control structure so that the number of reportable
conditions identified by the auditors dropped to two for fiscal year
2001, of which one was a material weakness. Despite this progress,
Commerce‘s auditors identified financial management and reporting
weaknesses at three Commerce bureaus. Commerce‘s Chief Financial
Officer has agreed that a diligent effort is needed to continue to
receive unqualified audit opinions on future Commerce financial
statements and to resolve the remaining internal control weaknesses.
In the financial systems area, Commerce‘s auditors continue to report
the lack of a single, integrated financial system as a material
weakness. Furthermore, the auditors reported that their testing of
Commerce‘s financial management systems disclosed instances where the
systems did not substantially comply with requirements of the Federal
Financial Management Improvement Act. Commerce recognizes the
shortcomings of its financial management systems. In its fiscal year
2001 accountability report, Commerce noted that, taken as a whole,
Commerce‘s financial systems do not comply with GAO principles and
standards, Chief Financial Officers Act requirements, Joint Financial
Management Improvement Program requirements, or Office of Management
and Budget requirements. The accountability report further noted that
Commerce‘s existing systems are not sufficiently integrated, lack
security controls, and do not provide reliable and timely information.
Commerce reports that it has made progress in addressing this material
weakness and will continue its efforts to improve in this area.
Specifically, Commerce plans to continue its phased implementation of
the Commerce Administrative Management System, which it expects to
complete by October 2003. In order to comply with applicable laws and
safeguard its assets against waste, loss, unauthorized use, or
misappropriation, Commerce must continue to emphasize financial
management improvements and correct the remaining internal control
weaknesses.
Governmentwide Challenges:
Commerce also faces challenges in the areas that we have identified as
governmentwide high-risk areas--strategic human capital management,
information security weaknesses, and managing federal real property. In
general, we identified these areas as high-risk either because of their
greater vulnerabilities to waste, fraud, abuse, and mismanagement or
because of major challenges associated with their economy, efficiency,
or effectiveness.
Strategic Human Capital Management:
In addition to the human capital issues related to trade and the
census, we have identified human capital issues in other areas of
Commerce. Specifically, in our 2002 report on the telecommunications
spectrum, we noted that Commerce‘s National Telecommunications and
Information Administration is facing serious staffing
problems.[Footnote 26] Specifically, the agency has vacancies in 21 of
its 122 staff positions for spectrum management, and 40 percent of its
staff are eligible for retirement by 2006. We recommended that the
agency develop a strategy for enhancing its oversight of federal
spectrum use and define its human capital needs for carrying out this
strategy. Commerce generally agreed with our recommendation, and said
that it would review its human capital needs and current resources in
spectrum management and develop a strategy for addressing any
shortcomings.
In its fiscal year 2001 accountability report, Commerce acknowledges
that it must take steps to ensure that it retains vital knowledge,
skills, and management capabilities in an era where many existing
employees will be eligible to retire, and new employees are hard to
attract and retain. Commerce states that, among other things, it has
developed a departmentwide approach to analyzing workforce needs and
planning recruitment and outreach efforts and will continue to focus on
this area in the future.
Information Security Weaknesses:
In our August 2001 report on computer security at Commerce, we
identified significant and pervasive computer security weaknesses in
the information systems of seven of Commerce‘s bureaus.[Footnote 27] We
also identified weaknesses in the management of Commerce‘s overall
information security program and noted that these computer security
weaknesses put Commerce‘s data and operations at serious risk. Based on
our findings, we recommended that Commerce develop and execute a
centrally managed information security program that includes a risk-
based approach, up-to-date security policies, security awareness and
training, and continuous monitoring of the bureaus‘ compliance with
established policies and the effectiveness of implemented controls. We
also recommended that Commerce bureaus address the logical access
control weaknesses identified during the audit. Our follow-up work
indicates that Commerce has made significant progress in implementing
our recommendations. Agency officials told us that they plan to address
all of our recommendations within fiscal year 2003.
In its fiscal year 2001 accountability report, Commerce included
inadequate controls in information technology security as a new
material weakness. As a result, Commerce reports that it has taken a
number of corrective actions. For example, the Secretary initiated
actions that led to a framework for addressing information technology
security issues, issuing security alerts for specific problems, and
establishing a compliance group to define parameters for reviewing
programs and systems on a continuing basis.
Managing Federal Real Property:
Commerce still faces ongoing physical infrastructure problems. As we
reported in April 2001, a heating, ventilation, and air conditioning
system that is incapable of providing proper air circulation or
maintaining desired temperatures plagues the Census Bureau‘s Federal
Office Building 3, located in Suitland, Maryland.[Footnote 28] The
building contains levels of carbon dioxide that exceed industry
standards, thereby exposing tenants to unacceptable conditions. Also,
the water in the building is not drinkable due to the building‘s
deteriorated infrastructure. We recommended that the Administrator of
the General Services Administration, which manages the building, ensure
that sufficient priority consideration is given to projects that would
effectively prevent or resolve significant health and safety concerns.
The General Services Administration generally agreed with the
recommendation.
Commerce plans to focus on the modernization of the facilities used by
the National Institute of Standards and Technology. According to
Commerce, new facilities and equipment are needed in order for this
agency to meet stringent industry measurement requirements.
Consequently, Commerce has completed or planned new facilities such as
the Advanced Chemical Sciences Laboratory in Gaithersburg, Maryland
(which is completed), and the Advanced Measurement Laboratory, also
located in Gaithersburg, (scheduled for completion in 2004).
[End of section]
GAO Contacts:
Subject(s) covered in this report: Planning and conducting an accurate,
cost-effective 2010 Census and improving other Commerce statistical
programs; Contact person: Patricia A. Dalton, Director; Strategic
Issues; (202) 512-6737; daltonp@gao.gov.
Subject(s) covered in this report: Planning and conducting an accurate,
cost-effective 2010 Census and improving other Commerce statistical
programs; Contact person: Robert Parker, Chief Statistician; (202) 512-
9750; parkerr@gao.gov.
Subject(s) covered in this report: Promoting and liberalizing trade
while creating jobs; ; Strengthening export controls while facilitating
global enterprise; Contact person: Susan Westin, Managing Director;
International Affairs and Trade; (202) 512-4128; westins@gao.gov.
Subject(s) covered in this report: Promoting and liberalizing trade
while creating jobs; Contact person: Thomas J. McCool, Managing
Director; Financial Markets and Community Investment; (202) 512-8678;
mccoolt@gao.gov.
Subject(s) covered in this report: Improving predictions of weather and
climate and management of key natural resources; ; Information security
weaknesses; Contact person: Joel C. Willemssen, Managing Director;
Information Technology; (202) 512-6408; willemssenj@gao.gov.
Subject(s) covered in this report: Improving predictions of weather and
climate and management of key natural resources; Contact person: Robert
Robinson, Managing Director; Natural Resources and Environment; (202)
512-3841; robinsonr@gao.gov.
Subject(s) covered in this report: Improving financial management
functions; Contact person: Jeffrey C. Steinhoff, Managing Director;
Financial Management and Assurance; (202) 512-2600;
steinhoffj@gao.gov.
Subject(s) covered in this report: Strategic human capital management;
Contact person: J. Christopher Mihm, Director; Strategic Issues; (202)
512-6806; mihmj@gao.gov.
Subject(s) covered in this report: Information security weaknesses;
Contact person: Robert F. Dacey, Director; Information Technology;
(202) 512-3317; daceyr@gao.gov.
Subject(s) covered in this report: Managing federal real property;
Contact person: Bernie Ungar, Director; Physical Infrastructure; (202)
512-8024; ungarb@gao.gov.
[End of section]
Related GAO Products:
[End of section]
Planning and Conducting an Accurate, Cost-Effective 2010 Census and
Improving Other Commerce Statistical Programs:
2000 Census: Lessons Learned for Planning a More Cost-Effective 2010
Census. GAO-03-40. Washington, D.C.: October 31, 2002.
The American Community Survey: Accuracy and Timeliness Issues. GAO-02-
956R. Washington, D.C.: September 30, 2002.
2000 Census: Refinements to Full Count Review Program Could Improve
Future Data Quality. GAO-02-562. Washington, D.C.: July 3, 2002.
2000 Census: Coverage Evaluation Matching Implemented as Planned, but
Census Bureau Should Evaluate Lessons Learned. GAO-02-297. Washington,
D.C.: March 14, 2002.
2000 Census: Best Practices and Lessons Learned for More Cost-Effective
Nonresponse Follow-up. GAO-02-196. Washington, D.C.: February 11,
2002. :
2000 Census: Coverage Evaluation Interviewing Overcame Challenges, but
Further Research Needed. GAO-02-26. Washington, D.C.: December 31,
2001.
2000 Census: Analysis of Fiscal Year 2000 Budget and Internal Control
Weaknesses at the U.S. Census Bureau. GAO-02-30. Washington, D.C.:
December 28, 2001.
2000 Census: Significant Increase in Cost Per Housing Unit Compared to
1990 Census. GAO-02-31. Washington, D.C.: December 11, 2001.
2000 Census: Better Productivity Data Needed for Future Planning and
Budgeting. GAO-02-4. Washington, D.C.: October 4, 2001. :
2000 Census: Review of Partnership Program Highlights Best Practices
for Future Operations. GAO-01-579. Washington, D.C.: August 20, 2001.
Record Linkage and Privacy: Issues in Creating New Federal Research and
Statistical Information. GAO-01-126SP. Washington, D.C.: April 2001.
Decennial Censuses: Historical Data on Enumerator Productivity Are
Limited. GAO-01-208R. Washington, D.C.: January 5, 2001. :
Promoting and Liberalizing Trade While Creating Jobs:
International Trade: Advisory Committee System Should be Updated to
Better Serve U.S. Policy Needs. GAO-02-876. Washington, D.C.: September
24, 2002.
Human Capital: Major Human Capital Challenges at SEC and Key Trade
Agencies. GAO-02-662T. Washington, D.C.: April 23, 2002.
Export Promotion: Mixed Progress in Achieving a Governmentwide
Strategy. GAO-02-850. Washington, D.C.: September 4, 2002.
Export Promotion: Government Agencies Should Combine Small Business
Export Training Programs. GAO-01-1023. Washington, D.C.: September 21,
2001.
Trade Adjustment Assistance: Experiences of Six Trade-Impacted
Communities. GAO-01-838. Washington, D.C.: August 24, 2001. :
Strengthening Export Controls While Facilitating Global Enterprise:
Nonproliferation: Strategy Needed to Strengthen Multilateral Export
Control Regimes. GAO-03-43. Washington, D.C.: October 25, 2002.
Export Controls: Processes for Determining Proper Control of Defense-
Related Items Need Improvement. GAO-02-996. Washington, D.C.: September
20, 2002.
Export Controls: Department of Commerce Controls over Transfers of
Technology to Foreign Nationals Need Improvement. GAO-02-972.
Washington, D.C.: September 6, 2002.
Export Controls: More Thorough Analysis Needed to Justify Changes in
High Performance Computer Controls. GAO-02-892. Washington, D.C.:
August 2, 2002.
Export Controls: Rapid Advances in China‘s Semiconductor Industry
Underscore Need for Fundamental U.S. Policy Review. GAO-02-620.
Washington, D.C.: April 19, 2002. :
Export Controls: Issues to Consider in Authorizing a New Export
Administration Act. GAO-02-468T. Washington, D.C.: February 28, 2002. :
Nuclear Nonproliferation: Coordination of U.S. Programs Designed to
Reduce the Threat Posed by Weapons of Mass Destruction. GAO-02-180T.
Washington, D.C.: November 14, 2001. :
Export Controls: Clarification of Jurisdiction for Missile Technology
Items Needed. GAO-02-120. Washington, D.C.: October 9, 2001. :
Export Controls: State and Commerce Department License Review Times Are
Similar. GAO-01-528. Washington, D.C.: June 1, 2001. :
Export Controls: Regulatory Change Needed to Comply with Missile
Technology Licensing Requirements. GAO-01-530. Washington, D.C.: May
31, 2001. :
Export Controls: Inadequate Justification for Relaxation of Computer
Controls Demonstrates Need for Comprehensive Study. GAO-01-534T.
Washington, D.C.: March 15, 2001.
Improving Predictions of Weather and Climate and Management of Key
Natural Resources:
Polar-Orbiting Environmental Satellites: Status, Plans, and Future Data
Management Challenges. GAO-02-684T. Washington, D.C.: July 24, 2002.
Water Infrastructure: Information on Federal and State Financial
Assistance. GAO-02-134. Washington, D.C.: November 30, 2001. :
Invasive Species: Obstacles Hinder Federal Rapid Response to Growing
Threat. GAO-01-724. Washington, D.C.: July 24, 2001. :
Wetlands Protection: Assessments Needed to Determine Effectiveness of
In-Lieu-Fee Mitigation. GAO-01-325. Washington, D.C.: May 4, 2001.
Improving Financial Management Functions:
Department of Commerce: Status of Achieving Key Outcomes and Addressing
Major Management Challenges. GAO-01-793. Washington, D.C.: June 15,
2001.
Governmentwide Challenges:
Telecommunications: Better Coordination and Enhanced Accountability
Needed to Improve Spectrum Management. GAO-02-906. Washington, D.C.:
September 30, 2002.
Critical Information Protection: Significant Challenges Need to Be
Addressed. GAO-02-961T. Washington, D.C.: July 24, 2002.
Information Security: Additional Actions Needed to Implement Reform
Legislation. GAO-02-470T. Washington, D.C.: March 6, 2002.
Computer Security: Improvements Needed to Reduce Risk to Critical
Federal Operations and Assets. GAO-02-231T. Washington, D.C.: November
9, 2001.
Information Security: Weaknesses Place Commerce Data and Operations at
Serious Risk. GAO-01-751. Washington, D.C.: August 13, 2001.
Information Security: Weaknesses Place Commerce Data and Operations at
Serious Risk. GAO-01-1004T. Washington, D.C.: August 3, 2001.
Federal Buildings: Funding Repairs and Alterations Has Been a
Challenge--Expanded Financing Tools Needed. GAO-01-452. Washington,
D.C.: April 12, 2001.
[End of section]
Performance and Accountability and High-Risk Series:
Major Management Challenges and Program Risks: A Governmentwide
Perspective. GAO-03-95.
Major Management Challenges and Program Risks: Department of
Agriculture. GAO-03-96.
Major Management Challenges and Program Risks: Department of Commerce.
GAO-03-97.
Major Management Challenges and Program Risks: Department of Defense.
GAO-03-98.
Major Management Challenges and Program Risks: Department of Education.
GAO-03-99.
Major Management Challenges and Program Risks: Department of Energy.
GAO-03-100.
Major Management Challenges and Program Risks: Department of Health and
Human Services. GAO-03-101.
Major Management Challenges and Program Risks: Department of Homeland
Security. GAO-03-102.
Major Management Challenges and Program Risks: Department of Housing
and Urban Development. GAO-03-103.
Major Management Challenges and Program Risks: Department of the
Interior. GAO-03-104.
Major Management Challenges and Program Risks: Department of Justice.
GAO-03-105.
Major Management Challenges and Program Risks: Department of Labor.
GAO-03-106.
Major Management Challenges and Program Risks: Department of State.
GAO-03-107.
Major Management Challenges and Program Risks: Department of
Transportation. GAO-03-108.
Major Management Challenges and Program Risks: Department of the
Treasury. GAO-03-109.
Major Management Challenges and Program Risks: Department of Veterans
Affairs. GAO-03-110.
Major Management Challenges and Program Risks: U.S. Agency for
International Development. GAO-03-111.
Major Management Challenges and Program Risks: Environmental Protection
Agency. GAO-03-112.
Major Management Challenges and Program Risks: Federal Emergency
Management Agency. GAO-03-113.
Major Management Challenges and Program Risks: National Aeronautics and
Space Administration. GAO-03-114.
Major Management Challenges and Program Risks: Office of Personnel
Management. GAO-03-115.
Major Management Challenges and Program Risks: Small Business
Administration. GAO-03-116.
Major Management Challenges and Program Risks: Social Security
Administration. GAO-03-117.
Major Management Challenges and Program Risks: U.S. Postal Service.
GAO-03-118.
High-Risk Series: An Update. GAO-03-119.
High-Risk Series: Strategic Human Capital Management. GAO-03-120.
High-Risk Series: Protecting Information Systems Supporting the Federal
Government and the Nation‘s Critical Infrastructures.
GAO-03-121.
High-Risk Series: Federal Real Property. GAO-03-122.
FOOTNOTES
[1] U.S. General Accounting Office, Major Management Challenges and
Program Risks: Department of Commerce, GAO-01-243 (Washington, D.C.:
January 2001).
[2] U.S. Department of Commerce: FY 2001 Accountability Report:
Charting Our Course for a Stronger America, March 2002.
[3] The Bureau of Industry and Security was formerly called the Bureau
of Export Administration.
[4] U.S. General Accounting Office, 2000 Census: Significant Increase
in Cost Per Housing Unit Compared to 1990 Census, GAO-02-31
(Washington, D.C.: Dec. 11, 2001).
[5] See U.S. General Accounting Office, 2000 Census: Preparations for
Dress Rehearsal Leave Many Unanswered Questions, GGD-98-74
(Washington, D.C.: Mar. 26, 1998).
[6] U.S. General Accounting Office, 2000 Census: Lessons Learned for
Planning a More Cost-Effective 2010 Census, GAO-03-40 (Washington ,
D.C.: Oct. 31, 2002).
[7] For a more complete discussion of the Bureau‘s comments see U.S.
General Accounting Office, The American Community Survey: Accuracy and
Timeliness Issues, GAO-02-956R (Washington, D.C.: Sept. 30, 2002).
[8] U.S. General Accounting Office, International Trade: Advisory
Committee System Should be Updated to Better Serve U.S. Policy Needs,
GAO-02-876 (Washington, D.C.: Sept. 24, 2002).
[9] For a more complete description of the comments see GAO-02-876.
[10] U.S. General Accounting Office, International Trade: Strategy
Needed to Better Monitor and Enforce Trade Agreements, GAO/NSIAD-00-76
(Washington, D.C.: Mar. 14, 2000).
[11] The Export Enhancement Act of 1992 created the Trade Promotion
Coordinating Committee to coordinate the delivery of federal export
promotion services and to eliminate the areas of overlap and
duplication among federal export promotion programs. The U.S.
Departments of Agriculture, Commerce, Defense, Energy, the Interior,
Labor, State, Transportation, and the Treasury; the Agency for
International Development; the Council of Economic Advisers; the
Environmental Protection Agency; the U.S. Export-Import Bank; National
Economic Council; the Office of Management and Budget; the Overseas
Private Investment Corporation; the Small Business Administration; the
U.S. Trade and Development Agency; and the U.S. Trade Representative
comprise the Trade Promotion Coordinating Committee.
[12] U.S. General Accounting Office, Export Promotion: Mixed Progress
in Achieving a Governmentwide Strategy, GAO-02-850 (Washington, D.C.:
Sept. 4, 2002).
[13] U.S. General Accounting Office, Export Promotion: Government
Agencies Should Combine Small Business Export Training Programs, GAO-
01-1023 (Washington, D.C.: Sept. 21, 2001).
[14] The June 2002 Office of Management and Budget Circular No. A-11,
Preparation, Submission, and Execution of the Budget, which provides
guidance to executive branch agencies for, among other things,
preparing performance plans, states that some general goals may relate
to cross-agency functions, programs, or activities. In such instances,
the circular notes that agencies may have a shared responsibility for
defining and achieving general goals for these crosscutting areas and
states that agencies should ensure that appropriate and timely
consultation occurs with other agencies during development of strategic
plans with crosscutting goals.
[15] U.S. General Accounting Office, Economic Development: Multiple
Federal Programs Fund Similar Economic Development Activities, GAO/
RCED/GGD-00-220 (Washington, D.C.: Sept. 29, 2000).
[16] The State Department licenses defense items through its Office of
Defense Trade Controls.
[17] U.S. General Accounting Office, Export Controls: Department of
Commerce Controls over Transfers of Technology to Foreign Nationals
Need Improvement, GAO-02-972 (Washington, D.C.: Sept. 6, 2002).
[18] U.S. General Accounting Office, Export Controls: Processes for
Determining Proper Control of Defense-Related Items Need Improvement,
GAO-02-996 (Washington, D.C.: Sept. 20, 2002).
[19] U.S. General Accounting Office, Export Controls: More Thorough
Analysis Needed to Justify Changes in High Performance Computer
Controls, GAO-02-892 (Washington, D.C.: Aug. 2, 2002).
[20] U.S. General Accounting Office, Export Controls: Rapid Advances in
China‘s Semiconductor Industry Underscore Need for Fundamental U.S.
Policy Review, GAO-02-620 (Washington, D.C.: Apr. 19, 2002).
[21] Executive Order 12981 requires that the license review process be
completed in 90 days, but allows the review ’clock“ to be stopped at
certain points such as when more information is needed from the
applicant.
[22] U.S. General Accounting Office, Export Controls: State and
Commerce Department License Review Times Are Similar, GAO-01-528
(Washington, D.C.: June 1, 2001).
[23] U.S. General Accounting Office, Export Controls: Regulatory Change
Needed to Comply with Missile Technology Licensing Requirements, GAO-
01-530 (Washington, D.C.: May 31, 2001).
[24] U.S. General Accounting Office, National Weather Service: Sulphur
Mountain Radar Performance, GAO/AIMD-99-7 (Washington, D.C.: Oct. 16,
1998).
[25] U.S. General Accounting Office, Polar-Orbiting Environmental
Satellites: Status, Plans, and Future Data Management Challenges, GAO-
02-684T (Washington, D.C.: July 24, 2002).
[26] U.S. General Accounting Office, Telecommunications: Better
Coordination and Enhanced Accountability Needed to Improve Spectrum
Management, GAO-02-906 (Washington, D.C.: Sept. 30, 2002).
[27] U.S. General Accounting Office, Information Security: Weaknesses
Place Commerce Data and Operations at Serious Risk, GAO-01-751
(Washington, D.C.: Aug. 13, 2001).
[28] U.S. General Accounting Office, Federal Buildings: Funding Repairs
and Alterations Has Been a Challenge--Expanded Financing Tools Needed,
GAO-01-452 (Washington, D.C.: Apr. 12, 2001).
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