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Information Technology: Treasury Needs to Strengthen Its Investment Board Operations and Oversight

GAO-07-865 Published: Jul 23, 2007. Publicly Released: Jul 23, 2007.
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Highlights

The Department of the Treasury relies extensively on information technology (IT) to carry out its mission. For fiscal year 2007, Treasury requested about $2.8 billion--the third largest planned IT expenditure among civilian agencies. GAO's objectives included (1) assessing Treasury's capabilities for managing its IT investments and (2) determining any plans the agency has for improving its capabilities. GAO used its IT investment management framework (ITIM) and associated methodology to address these objectives, focusing on the framework's stages related to the investment management provisions of the Clinger-Cohen Act of 1996.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Treasury To strengthen Treasury's investment management capability, the Secretary of the Department of the Treasury should direct the Assistant Secretary for Management, in collaboration with the CIO, to develop and implement a plan to establish an executive investment review board, composed of executives representing IT and business units, that would be actively engaged in the investment management process.
Closed – Implemented
In January 2008, the Department of the Treasury established the Executive Investment Review Board, composed of senior Department and Bureau executives such as the Chief Information Officer, the Comptroller of the Currency, and the Commissioner of Public Debt. The board has since been actively engaged in the investment planning and management process.
Department of the Treasury To strengthen Treasury's investment management capability, the Secretary of the Department of the Treasury should direct the Assistant Secretary for Management, in collaboration with the CIO, to develop and implement a plan to develop and implement policies and procedures to manage nonmajor investments.
Closed – Not Implemented
In September 2011, Treasury informed us that it plans to deploy a program to select and oversee nonmajor investments by the end of the second quarter of fiscal year 2012. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 2, actions to fully address instituting the investment board.
Closed – Implemented
The department of Treasury has addressed the key practices associated with instituting the investment board. In January 2008, the Department of the Treasury established the Executive Investment Review Board, composed of senior Department and Bureau executives including the Chief Information Officer, the Comptroller of the Currency, and the Commissioner of Public Debt. Since then, the board has been actively engaged in the investment planning and management process. The department also instituted mechanisms to ensure board members stay informed of investment management policies, procedures, tools and techniques given. According to the Director for Capital Planning and Investment Control, while the CIO is charged with the development and maintenance of the Department's IT investment process, the E-board is informed of this process. Finally, the CIO is also responsible for ensuring the E-Board's decisions are carried out.
Department of the Treasury In developing the plan, the Secretary of the Department of the Treasury should direct the Chief Information Officer to ensure that the plan draws together ongoing and additional efforts needed to address the weaknesses identified in this report, including those relating to the CIO's role in performing investment management responsibilities. The plan should also (1) specify measurable goals, objectives, and milestones; (2) specify needed resources; (3) assign clear responsibility and accountability for accomplishing tasks; and (4) be approved by senior management. In implementing the plan, the Chief Information Officer should ensure that the resources are available to carry out the plan and that progress is measured and reported periodically to the Secretary of the Department of the Treasury.
Closed – Not Implemented
In September 2011 Treasury informed us that a formalized plan has not been completed yet, but work was underway to address key elements. It reported that a working team was formed in June 2011 to review Department-level capital planning and investment control policies and to develop reporting requirements. The Department anticipates completing this review some time in the second quarter of fiscal year 2012. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 2, actions to fully address meeting business needs.
Closed – Not Implemented
Treasury has policies and procedures for ensuring its major IT investments support the Department's business needs. The Department delegated the management of its nonmajor investments to its bureaus, but has no mechanism for ensuring that the bureaus have policies and procedures to align these investments with business needs. In September 2011 Treasury informed us that it intended to deploy a nonmajor select and control program by the end of the second quarter of fiscal year 2012. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 2, actions to fully address selecting an investment.
Closed – Implemented
The department of Treasury took steps to fully address the key practices associated with selecting an investment. Specifically the department added policies and procedures for selecting non-major investments in its Capital Planning and Investment Control (CPIC) manual. Additionally, the manual now specifies that the selection and reselection of new and ongoing non-major investments is to be submitted to the Executive Investment Review Board (E-Board) for their review and approval. Consistent with this, the selected major and non-major investments for fiscal year 2010 were provided to the E-Board for their review and approval in November 2008.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 2, actions to fully address providing investment oversight.
Closed – Implemented
Treasury has documented policies and procedures for management oversight of IT projects and systems in its Capital Planning and Investment Control (CPIC) manual. Specifically, Treasury's Executive Investment Review Board (E-Board) is responsible for providing investment oversight for both major and non-major investments. Consistent with this, the E-board was provided with summary level information on all IT investments in November 2008. Additionally, Treasury established a new process called the Treasury High Visibility List as a mechanism to track implementation of corrective actions for underperforming projects. The Treasury High Visibility List reports are presented to the Chief Information Officer who determines whether to elevate issues to the E-Board.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 3, actions to fully address defining the portfolio criteria.
Closed – Not Implemented
In September 2011 Treasury informed us that it was in the process of reviewing its policies and procedures for defining the portfolio criteria. It reported that it had formed a working team in June 2011, and expected to complete the review in the third quarter of fiscal year 2012. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 3, actions to fully address creating the portfolio.
Closed – Not Implemented
In September 2011, Treasury informed us that it was in the process of revising its annual planning process as part of the capital planning and investment control program and was developing a standard set of criteria based on departmental strategies and initiatives to determine if an individual investment merits further funding. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 3, actions to fully address evaluating the portfolio.
Closed – Not Implemented
In September 2011, Treasury informed us that it plans to deploy a nonmajor select and control program by the end of the second quarter of fiscal year 2012 to address this recommendation. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.
Department of the Treasury Treasury's plan should include actions to address the weaknesses in eight critical processes identified in this report, beginning with those identified in our Stage 2 analysis and continuing with those identified in our Stage 3 analysis. The plan should, at a minimum, provide for fully implementing, in Stage 3, actions to fully address conducting post-implementation reviews.
Closed – Not Implemented
The Department also informed us that it is in the process of revising its evaluation activities, including PIRs --as part of the revision of the capital planning and investment control program that is currently underway. Given the amount of time elapsed since we made this recommendation, we are closing it as not implemented.

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Topics

Chief information officersInformation resources managementInformation technologyInternal controlsInvestment planningInvestment Review BoardIT investment managementPolicy evaluationStrategic planningSystems designSystems evaluation