Major Management Challenges and Program Risks

This publication is part of GAO's performance and accountability series which provides a comprehensive assessment of government management, particularly the management challenges and program risks confronting federal agencies. Using a "performance-based management" approach, this landmark set of reports focuses on the results of government programs--how they affect the American taxpayer--rather than on the processes of government. This approach integrates thinking about organization, product and service delivery, use of technology, and human capital practices into every decision about the results that the government hopes to achieve. The series includes an overview volume discussing governmentwide management issues and 20 individual reports on the challenges facing specific cabinet departments and independent agencies. The reports take advantage of the wealth of new information made possible by management reform legislation, including audited financial statements for major federal agencies, mandated by the Chief Financial Officers Act, and strategic and performance plans required by the Government Performance and Results Act. In a companion volume to this series, GAO also updates its high-risk list of government operations and programs that are particularly vulnerable to waste, fraud, abuse, and mismanagement.

GAO noted that: (1) over the past 17 years, the Federal Aviation Administration's (FAA) multibillion-dollar air traffic control modernization program has experienced cost overruns, delays, and performance shortfalls of large proportions; (2) FAA faces considerable challenges in making its computer systems ready for the year 2000; (3) DOT and Congress face a challenge in reaching agreement on the amount and source of long-term financing for FAA and the nation's airports; (4) FAA has numerous shortcomings in its safety and security programs; (5) although airline deregulation is generally considered to be a success by DOT and others, contributing to better service and lower fares for most travellers, not all communities have benefited from it; (6) many large-dollar highway and transit projects continue to incur cost increases, experience delays, and have difficulties acquiring needed financing; (7) the Federal Transit Administration (FTA) has improved its oversight of federal transit grants; however, the agency needs to complete, timely information to help ensure the correction of deficiencies found during its oversight reviews; (8) the National Railroad Passenger Corporation's (Amtrak) financial condition has substantially deteriorated in recent years; (9) Amtrak's deteriorating financial condition has raised the possibility of both bankruptcy and liquidation; (10) DOT's lack of accountability for its financial activities impairs its ability to efficiently and effectively manage programs and exposes the Department to potential waste, fraud, mismanagement, and abuse; (11) FAA will need to continue efforts to fully implement its cost accounting system so that it can use reliable and accurate data to improve its management and performance and to establish user fees as mandated by Congress; (12) to improve FTA's oversight of transit grants, the agency needs to complete implementation of a new information tracking system; (13) adequately addressing many of the challenges GAO identified will require sustained attention by DOT and Congress; and (14) individual agencies within DOT have efforts under way to address some of them, but more remains to be done.