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    Subject Term: "Cost accounting"

    10 publications with a total of 17 open recommendations including 1 priority recommendation
    Director: Lawrance Evans
    Phone: (202) 512-8678

    2 open recommendations
    Recommendation: To provide greater assurance that the Federal Reserve is complying with the Monetary Control Act's requirement to establish fees on the basis of costs actually incurred and an allocation of imputed private-sector costs, the Chair of the Federal Reserve Board of Governors of the Federal Reserve System should consider ways to incorporate the costs related to integrated planning for recovery and wind down and compliance with antimoney-laundering requirements, to the extent practicable, in its imputed private-sector cost methodology.

    Agency: Federal Reserve System: Board of Governors
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To provide greater assurance that the Federal Reserve is complying with the Monetary Control Act's requirement to establish fees on the basis of costs actually incurred and an allocation of imputed private-sector costs, the Chair of the Federal Reserve Board of Governors of the Federal Reserve System should periodically obtain independent testing of the methods the Federal Reserve uses to capture its actual costs and simulate those of the private sector.

    Agency: Federal Reserve System: Board of Governors
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Valerie Melvin
    Phone: (202) 512-6304

    4 open recommendations
    Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to define a high-level depiction of the IT systems anticipated in the future state, a description of the operations that must be performed and who must perform them, and an explanation of where and how the operations are to be carried out.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In May 2017, HUD's Deputy Chief Information Officer reported that that the office was managing multiple enterprise-level initiatives no longer classified as financial management modernization efforts, but which are intended to address certain previously reported financial systems modernization needs. The department provided early high-level requirements and a solution architecture for one such initiative, including a future requirement to support data required for HUD's financial reporting needs from Treasury. However, HUD does not yet have a plan to develop a high-level concept of operations for IT systems anticipated in the future state. We intend to follow up on HUD's actions.
    Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to develop comprehensive plans for scope, schedule and cost.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In May 2017, the department provided an early project oversight plan and critical task schedule for one initiative related to enterprise data management, but these plans are not comprehensive and do not include, among other things, detailed cost estimates. We intend to follow up on HUD's actions.
    Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to ensure requirements are fully documented and traceable.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In March 2017, the department reported that the Chief Financial Officer and the Chief Information Officer intend to partner on future departmental financial management systems modernization efforts to fully document requirements and trace requirements to the functionality in the modernized system. In May 2017, department officials reported that the subsequent initiatives underway were following an Agile process yielding product-release backlogs as documentation of requirements for ongoing initiatives. They provided the initial backlog for an enterprise data management initiative. However, HUD could not demonstrate that these requirements were complete and traceable to mission needs. We intend to follow up on HUD's actions.
    Recommendation: The Secretary of HUD should also direct the Deputy Secretary to ensure that the Chief Information Officer takes action to improve IT governance control activities used for monitoring programs and identifying needed corrective actions, and strengthen investment oversight by improving coordination with stakeholders and alignment among IT modernization efforts.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In March 2017, the department reported on its fiscal year 2016 updates to charters of its IT governance boards, which provide oversight of all its IT investments, including financial management initiatives, and noted that business cases for proposed development and modernization initiatives had been discussed at governance meetings. HUD also reported that it had set up steering committees to supplement board governance and monitoring two enterprise-level modernization efforts and planned to apply mechanisms, such as project health assessments, intended to establish effective investment oversight. However, HUD has not yet demonstrated that the updated governance control activities have improved program monitoring and identified any needed corrective actions or that planned oversight mechanisms have improved coordination with stakeholders or alignment of modernization efforts. We intend to follow up on HUD's actions to ensure that planned improvements to governance and oversight mechanisms are effectively implemented and institutionalized.
    Director: Marie A. Mak
    Phone: (202) 512-4841

    3 open recommendations
    Recommendation: To provide greater compliance with the GIDEP reporting requirement among the DOD components and their defense supplier-base, the Undersecretary of Defense for Acquisition, Technology and Logistics should establish mechanisms for department-wide oversight of defense agencies' compliance with the GIDEP reporting requirement.

    Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics
    Status: Open

    Comments: In providing comments to this report DOD concurred with this recommendation but has not completed actions to implement it. DOD stated that it will issue new DOD Instruction covering the use of GIDEP, as well as a companion DOD manual, to include identification of roles and responsibilities for submission of reports and oversight of such submission. Both documents are expected to be completed by the end of the second quarter fiscal year 2018.
    Recommendation: To provide greater compliance with the GIDEP reporting requirement among the DOD components and their defense supplier-base, the Undersecretary of Defense for Acquisition, Technology and Logistics should develop a standardized process for determining the level of evidence needed to report a part as suspect counterfeit in GIDEP, such as a tiered reporting structure in GIDEP that provides an indication of where the suspect part is in the process of being assessed.

    Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics
    Status: Open

    Comments: In providing comments to this report DOD concurred with this recommendation but has not completed actions to implement it. DOD stated that it will issue new DOD Instruction covering the use of GIDEP, as well as a companion DOD manual, to include identification of roles and responsibilities for submission of reports and oversight of such submission. Both documents are expected to be completed by the end of the second quarter of fiscal year 2018.
    Recommendation: To provide greater compliance with the GIDEP reporting requirement among the DOD components and their defense supplier-base, the Undersecretary of Defense for Acquisition, Technology and Logistics should develop guidance for when access to GIDEP reports should be limited to only government users or made available to industry.

    Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics
    Status: Open

    Comments: In providing comments to this report DOD concurred with this recommendation but has not completed actions to implement it. DOD stated that it will issue new DOD Instruction covering the use of GIDEP, as well as a companion DOD manual, to include identification of roles and responsibilities for submission of reports and oversight of such submission. Both documents are expected to be completed by the end of the second quarter of fiscal year 2018.
    Director: David C. Trimble
    Phone: (202) 512-3841

    1 open recommendations
    Recommendation: To enhance the usefulness of NNSA's future reports to Congress describing the costs and benefits of its competition of M&O contracts under the requirements contained in Section 3121 of the National Defense Authorization Act for fiscal year 2013, as amended, the NNSA Administrator should take steps to ensure that future reports reflect DOE's information quality guidelines, federal cost accounting standards, and GAO's best practices guidance relevant to the clear and complete presentation of information on each of the required topics. In particular, future reports should clearly and completely describe costs and benefits, including the agency's expectations, as well as the associated analysis, assumptions, information sources, and key limitations and uncertainties about costs and benefits described. The description of uncertainties should include key excluded or unspecified costs and benefits, such as those that are anticipated but not fully known at the time of report writing.

    Agency: Department of Energy: National Nuclear Security Administration
    Status: Open

    Comments: NNSA recently awarded an M&O contract for Sandia NL. NNSA will have to produce a report on the costs and benefits of its competition, which will need to be delivered in early spring, 2017. Upon delivery to Congress, GAO will be able to assess whether NNSA fulfilled this recommendation.
    Director: Trimble, David C
    Phone: (202) 512-3841

    1 open recommendations
    Recommendation: To help improve its ability to oversee M&O contractor costs, including indirect costs, for its laboratories and make more effective use of DOE and contractor resources, the Secretary of Energy should take--or, as appropriate, direct the Administrator of NNSA to incorporate more specific benchmarking requirements into future laboratory contracts--similar to the benchmarking requirements used by DOE to assess and manage pension and post-retirement benefit costs--including which costs should be benchmarked, how frequently benchmarking should occur, and what process should be used to ensure corrective actions are taken, as needed.

    Agency: Department of Energy
    Status: Open

    Comments: In April 2017, the Director of NNSA Office of Policy issued guidance to NNSA Laboratory Field Office Managers to update contracts to include a new clause requiring laboratory contractors to submit a strategic plan every year in accordance with guidance. Part of the annual plan requires contractors to discuss the costs of doing business and cost-increase factors at the sites, including overhead dollars. The annual strategic plan is due to the NNSA Office of Policy by August 15 each year. This plan is expected to allow NNSA to conduct the benchmarking activities recommended by our report, which can then be considered in current and future laboratory contracts.
    Director: Powner, David A
    Phone: (202)512-9286

    1 open recommendations
    Recommendation: The Secretaries of Agriculture and Commerce should address the weaknesses in agency- and bureau-led TechStat processes and management outlined in this report.

    Agency: Department of Agriculture
    Status: Open

    Comments: The agency partially agreed with our assessment of the agency's TechStat process, but has not yet implemented our recommendation. At the time of our review, we identified several weaknesses in the agency's TechStat processes and management, including holding bureau-led TechStats, incorporating TechStats in its capital planning and governance structure, providing training on TechStats, and consistently capturing action steps, deadlines, and responsibilities in its TechStat memorandums. In an April 2017 update, the agency stated that it had not held any TechStats in 2016, but had identified several candidates for TechStats within the next 6 months. In addition, the agency plans to update its capital planning documents to include the TechStat program in late summer 2017. In addition, it has not finalized its TechStat training documentation, but plans to complete the documentation in late summer 2017. We will continue to monitor the implementation of this recommendation.
    Director: Khan, Asif A
    Phone: (202)512-3000

    1 open recommendations
    Recommendation: The Secretary of Defense should direct the military department Chief Management Officers, in consultation with the Under Secretary of Defense (Comptroller) and the Under Secretary of Defense for Acquisition, Technology, and Logistics, as appropriate, after defining the cost accounting requirements, to utilize the requirements as input to the ERPs to help ensure that the ERPs will provide the capability to identify and aggregate cost information for the department's assets in accordance with DOD's defined requirements.

    Agency: Department of Defense
    Status: Open

    Comments: DOD's military departments are in the process of implementing Enterprise Resource Planning (ERPs). At least one of these ERPs does not currently include cost accumulation and reporting for military equipment assets. DOD's FIAR plan efforts, which, according to officials, include systems enhancements are still on-going to address this recommendation. The status of this recommendation is open.
    Director: Aloise, Eugene E
    Phone: (202)512-6870

    1 open recommendations
    Recommendation: To allow Congress to better oversee management of the nuclear security enterprise and to improve NNSA's management information with respect to the base capabilities necessary to ensure nuclear weapons are safe, secure, and reliable, the Administrator of NNSA should, once the Stockpile Services work breakdown structure reflects a product or capability basis, use this work breakdown structure to develop product/capability cost estimates that adequately justify the congressional budget request for Stockpile Services.

    Agency: Department of Energy: National Nuclear Security Administration
    Status: Open

    Comments: In process: NNSA has significantly improved its work breakdown structure for Stockpile Services. The work breakdown structure now reflects a product or capability basis to a much greater extent than it did previously. NNSA is continuing to work to develop cost estimates for these products and capabilities to adequately justify the congressional budget request for Stockpile Services. In 2014, the Senate Appropriations Committee's Energy and Water Development Subcommittee suggested changes to NNSA's budget structure to align it more closely with products and capabilities beginning with fiscal year 2016 appropriations. GAO will continue to monitor whether NNSA develops cost estimates for Stockpile Services products and capabilities that inform future years' budget requests and justifications.
    Director: Engel, Gary T
    Phone: (202)512-8815

    1 open recommendations
    including 1 priority recommendation
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement effective processes for monitoring and assessing the effectiveness of internal control over the processes used to prepare the CFS.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury designed and implemented an OMB Circular No. A-123 internal control review for the CFS compilation processes. In fiscal year 2017, Treasury plans to use the internal control review to support its assessment on the effectiveness of internal controls over the processes used to prepare the CFS. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Daly, Kay L
    Phone: 2025124063

    2 open recommendations
    Recommendation: To help ensure that Transportation components implement reliable cost accounting methodologies for use in managerial decision making in accordance with departmental objectives, the Secretary of Transportation should direct appropriate department officials to finalize and issue a policy for implementing MCA departmentwide.

    Agency: Department of Transportation
    Status: Open

    Comments: Transportation initiated a major, multi-year department-wide program to re-engineer their financial processes, including cost accounting. Because of the complexity of cost accounting and the complications of the next release of their financial software, Transportation has told us that cost accounting is scheduled as a future process to be reviewed. As a result, Transportation has not yet implemented this recommendation to finalize and issue a policy for implementing MCA departmentwide.
    Recommendation: To help ensure that Transportation components implement reliable cost accounting methodologies for use in managerial decision making in accordance with departmental objectives, the Secretary of Transportation should direct appropriate department officials to finalize and issue formal procedures, revised as necessary, to monitor implementation of that policy and establish a sound system of controls.

    Agency: Department of Transportation
    Status: Open

    Comments: Transportation initiated a major, multi-year department-wide program to re-engineer their financial processes, including cost accounting. Because of the complexity of cost accounting and the complications of the next release of their financial software, Transportation has told us that cost accounting is scheduled as a future process to be reviewed. As a result, Transportation has not finalized or issued a policy for implementing MCA departmentwide.