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    Subject Term: "Investment planning"

    15 publications with a total of 56 open recommendations including 2 priority recommendations
    Director: Michael Clements
    Phone: (202) 512-8678

    4 open recommendations
    Recommendation: The Chief Investment Officer of the Army and Air Force Exchange Service should fully implement key practices to increase opportunities for MWO asset managers as part of its selection processes. Specifically, the Chief Investment Officer should complete actions related to top leadership commitment and removing potential barriers. (Recommendation 1)

    Agency: Department of Defense: Army and Air Force Exchange Service
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Chief Investment Officer of the Federal Retirement Thrift Investment Board should use key practices as appropriate to increase opportunities for MWO asset managers if and when implementing its mutual fund window platform. Specifically, the Chief Investment Officer should take actions to demonstrate top leadership commitment, remove potential barriers, conduct outreach to MWO firms, and communicate its priorities and expectations for an inclusive selection process to its staff and consultants if and when it begins to search for a mutual fund window platform. (Recommendation 2)

    Agency: Federal Retirement Thrift Investment Board
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Chief Investment Officer of the Navy Exchange Service Command should fully implement key practices to increase opportunities for MWO asset managers as part of its selection processes. Specifically, the Chief Investment Officer should take actions to demonstrate top leadership commitment, and to the extent that staff and resources are a constraint, should direct its consultant to conduct outreach to MWO firms and communicate its priorities and expectations for an inclusive selection process by requesting its consultant conduct more inclusive asset manager searches specifically for the Navy Exchange Service Command. (Recommendation 3)

    Agency: Department of Defense: Department of the Navy: Navy Exchange Service Command
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Chief Investment Officer of the Tennessee Valley Authority Retirement System should fully implement key practices to increase opportunities for MWO asset managers as part of its selection processes. Specifically, the Chief Investment Officer should take actions to demonstrate top leadership commitment, and to the extent that staff and resources are a constraint, should direct its consultant to conduct outreach to MWO firms and communicate its priorities and expectations for an inclusive selection process by requesting its consultant conduct more inclusive asset manager searches specifically for the Tennessee Valley Authority Retirement System. (Recommendation 4)

    Agency: Tennessee Valley Authority: Retirement System
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Zina Merritt
    Phone: (202) 512-5257

    3 open recommendations
    Recommendation: The Secretary of the Navy should develop a comprehensive plan for shipyard capital investment that establishes (1) the desired goal for the shipyards' condition and capabilities; (2) an estimate of the full costs to implement the plan, addressing all relevant requirements, external risk factors, and associated planning costs; and (3) metrics for assessing progress toward meeting the goal that include measuring the effectiveness of capital investments. (Recommendation 1)

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Secretary of the Navy should conduct regular management reviews that include all relevant stakeholders to oversee implementation of the plan, review metrics, assess the progress made toward the goal, and make adjustments, as necessary, to ensure that the goal is attained. (Recommendation 2)

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Secretary of the Navy should provide regular reporting to key decision makers and Congress on the progress the shipyards are making to meet the goal of the comprehensive plan, along with any challenges that hinder that progress, such as cost. This may include reporting on progress to reduce their facilities restoration and modernization backlogs, improve the condition and configuration of the shipyards, and recapitalize capital equipment. (Recommendation 3)

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Charles Jeszeck
    Phone: (202) 512-7215

    3 open recommendations
    Recommendation: To assist IRA owners in addressing challenges associated with investing their retirement savings in unconventional assets, the Commissioner of Internal Revenue should provide guidance to IRA owners on the potential for IRA transactions involving certain unconventional assets to generate unrelated business taxable income subject to taxation in the current tax year and subsequent years. For example, IRS could consider adding an explicit caution in Publication 590 Individual Retirement Arrangements (IRAs) and include a link in Publication 590 to Publication 598 Tax on Unrelated Business Income of Exempt Organizations to provide examples demonstrating how certain unconventional assets in IRAs can generate unrelated business income tax for account owners.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: IRS stated that it would add during the calendar year 2017 scheduled update, language to Publication 590-A, Contributions to Individual Retirement Arrangements (IRA), cautioning IRA owners about the possibility of unrelated business taxable income if the IRA owner engages in certain transactions or purchases certain assets. GAO will consider closing this recommendation when the agency has completed this effort.
    Recommendation: To assist IRA owners in addressing challenges associated with investing their retirement savings in unconventional assets, the Commissioner of Internal Revenue should provide guidance to IRA owners and custodians on how to determine and document fair market value (FMV) for certain categories of hard-to-value unconventional assets. For example, IRS could consider updating Form 5498 instructions to custodians on how to document FMV for hard-to-value assets (e.g., last-known FMV based on independent appraisal, acquisition price) and provide guidance directed at account owners that provides examples of how to ascertain FMV for different types of unconventional assets.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: IRS agreed that guidance should be provided to IRA owners and custodians and stated that the guidance could be provided as part of an item currently on the 2016-2017 Priority Guidance Plan. IRS will recommend to Treasury that the regulation project address this issue. We will consider closing this recommendation when the agency provides documentation that this effort has been completed.
    Recommendation: To assist IRA owners in addressing challenges associated with investing their retirement savings in unconventional assets, the Commissioner of Internal Revenue should clarify the content of the model custodial agreement to distinguish what has been reviewed and approved by IRS and what has not. For example, IRS could consider: (1) restricting custodians from stating that the form has been "preapproved by the IRS" on the form; (2) adding language to specify which articles have been preapproved by the IRS and which have not; and (3) limiting custodians from adding provisions to the model form other than those preapproved by the IRS.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: IRS reported that it will change during the next scheduled update of the model agreements, the "pre-approved by IRS" statement to clarify that only the first seven articles of Form 5305, Traditional Individual Retirement Trust Account, and Form 5305-A, Traditional Individual Retirement Custodial Account, are approved by IRS. GAO will consider closing this recommendation when the agency has completed this effort.
    Director: James R. McTigue, Jr.
    Phone: (202) 512-9110

    2 open recommendations
    Recommendation: To enhance the budget process and to improve transparency, the Commissioner of Internal Revenue, to the extent feasible, should ensure that the CJ includes data by appropriation account on the amount of funding requested to maintain current services for each future state theme.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: As Treasury works with IRS to improve the quality and accuracy of budget data, the Secretary of the Treasury should ensure sufficient controls are in place to make certain that the information technology investment reports generated from the SharePoint Investment Knowledge Exchange are accurate. This includes, for example, taking steps to reduce the need for manual corrections to the data.

    Agency: Department of the Treasury
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: David Powner
    Phone: (202) 512-9286

    17 open recommendations
    Recommendation: To better ensure that agencies' IT savings are being reinvested in the most efficient and effective manner possible, the Director of OMB should direct the Federal CIO to ensure that agencies complete their reinvestment plans, in accordance with established requirements, and maintain those plans on an ongoing basis.

    Agency: Executive Office of the President: Office of Management and Budget
    Status: Open

    Comments: The Office of Management and Budget (OMB) generally agreed with, and has taken initial steps to implement, our recommendation. In May 2016, OMB released updated guidance for agency's quarterly data submissions that noted the importance of providing savings reinvestment information. Specifically, OMB strongly encouraged agencies to provide reinvestment information where feasible, including a description of the activities that were funded using any savings achieved. OMB further noted that failing to provide such information might result in an agency being unable to accurately track its reinvestments. However, the May 2016 guidance notes that providing this reinvestment information is not required. As of May 2017, OMB had not yet updated its guidance for agencies quarterly data submissions to require reinvestment information. We will continue to evaluate OMB's progress in implementing this recommendation.
    Recommendation: To better ensure that agencies' IT savings are being reinvested in the most efficient and effective manner possible, the Director of OMB should direct the Federal CIO to require agencies to track actual reinvestment performance and define performance targets for agencies' reinvestments, as done previously.

    Agency: Executive Office of the President: Office of Management and Budget
    Status: Open

    Comments: The Office of Management and Budget (OMB) generally agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, OMB had not issued additional guidance to require agencies to track actual reinvestment performance or defined performance targets for agencies' reinvestments. We will continue to evaluate OMB's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Agriculture should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Agriculture
    Status: Open

    Comments: The Department of Agriculture agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the department's integrated data collection submission to the Office of Management and Budget had not been updated to include reinvestment plans for all reported cost savings and avoidance initiatives. For example, the department reported about $25 million in cost savings and avoidances related to its data center consolidation efforts, but did not include plans regarding how these savings would be reinvested. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, as part of any future update to the department's information resource management strategic plan or equivalent document, the Secretary of Commerce should direct the CIO to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Department of Commerce
    Status: Open

    Comments: The Department of Commerce agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the department had not updated its IT Resource Management Strategic plan to include the approach to reinvesting savings from the consolidation of commodity IT resources. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Commerce should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Commerce
    Status: Open

    Comments: The Department of Commerce agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the department's integrated data collection submission to the Office of Management and Budget had not been updated to include reinvestment plans for all reported cost savings and avoidance initiatives. For example, the department reported about $26 million in cost savings and avoidances related to its server virtualization efforts, but did not include plans regarding how these savings would be reinvested. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Defense should direct the Defense CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Defense
    Status: Open

    Comments: The Department of Defense partially agreed with our recommendation and has taken initial steps to implement it. Specifically, as of May 2017, the department reported approximately $331.4 million in data center consolidation cost savings in its quarterly integrated data collection submission to the Office of Management and Budget. Although the department's submission notes that it plans to reinvest these savings in the agency's core mission, it did not provide any further detail regarding these reinvestment plans. In addition, the department did not report any information technology cost savings and avoidance initiatives related to its business system modernization efforts, which it had previously reported to GAO as an area with substantial savings. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: In addition, to improve the U.S. Army Corps of Engineers' IT savings reinvestment plans, the Secretary of Defense should direct the Secretary of the Army, as part of any future update to the U.S. Army Corps of Engineers' IRM strategic plan or equivalent document, to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Department of Defense
    Status: Open

    Comments: The U.S. Army Corps of Engineers agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the agency had not yet updated its Information Resources Management Strategic Plan to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources. We will continue to evaluate the agency's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Health and Human Services should direct the CIO, as part of any future update to the department's IRM strategic plan or equivalent document, to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Department of Health and Human Services
    Status: Open

    Comments: The Department of Health and Human Services (HHS) agreed with, and has taken initial steps to implement, our recommendation. Specifically, in November 2015, the department stated that its Office of the Chief Information Officer will include reinvestment strategies in its next update of the HHS Information Resource Management Strategic Plan. According to the department, the updated strategic plan was expected to be completed by the end of September 2016. However, as of May 2017, the agency had not yet updated its Information Resources Management Strategic Plan to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Homeland Security should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Homeland Security
    Status: Open

    Comments: The Department of Homeland Security agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the department's integrated data collection submission to the Office of Management and Budget had not been updated to include reinvestment plans for all reported cost savings and avoidance initiatives. For example, the department did not include reinvestment plans for two cost avoidances strategies related to the Office of Management and Budget's PortfolioStat initiative that have resulted approximately $96 million in cost avoidances. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Housing and Urban Development should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: The Department of Housing and Urban Development agreed with, and has taken initial steps to implement, our recommendation. Specifically, as of May 2017, the department updated its integrated data collection submission to include reinvestment plans for one of the seven cost savings and avoidance initiatives reported. However, the six remaining initiatives, with savings and avoidances totaling approximately $6 million, did not include reinvestment plans. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's tracking of reinvestments, the Secretary of Labor should direct the CIO to use existing governance mechanisms and any improvements resulting from the implementation of FITARA to improve tracking of how savings have been reinvested.

    Agency: Department of Labor
    Status: Open

    Comments: The Department of Labor has taken initial steps to implement our recommendation. As of November 2015, the department stated that it was planning improvements in the area of information technology (IT) investment management in accordance with the Office of Management and Budget's June 2015 guidance for implementing the December 2014 IT reform law (commonly referred to as the Federal Information Technology Acquisition Reform Act or FITARA). The department added that these improvements would include the tracking of how savings have been reinvested. Subsequently, in May 2016, the department finalized its FITARA Implementation Plan. While the implementation plan discusses planned actions to improve the Chief Information Officer's involvement in agency IT budget requests, acquisition requests, and program management, it did not specifically discuss planned actions to improve the tracking of how information technology savings have been reinvested. In addition, as of May 2017, the department had not documented any FITARA implementation milestones that discussed making improvements in the tracking of how savings are reinvested. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of State should direct the CIO, as part of any future update to the department's IRM strategic plan or equivalent document, to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Department of State
    Status: Open

    Comments: The Department of State has not yet taken steps to implement our recommendation. Specifically, as of May 2017, the agency had not yet updated its Information Technology Strategic Plan to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of the Treasury should direct the CIO, as part of any future update to the department's IRM strategic plan or equivalent document, to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Department of the Treasury
    Status: Open

    Comments: The Department of the Treasury has not yet taken steps to implement our recommendation. Specifically, as of May 2017, the agency had not yet updated its Information Resources Management Strategic Plan to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of the Treasury should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to use any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of the Treasury
    Status: Open

    Comments: The Department of the Treasury has not yet taken steps to implement our recommendation. Specifically, as of May 2017, the department's integrated data collection submission did not include reinvestment plans for all reported cost savings and avoidance initiatives. For example, the department reported about $1.07 billion in cost savings and avoidances from its information technology infrastructure efficiency initiatives, but did not provide information regarding how it plans to reinvest these savings and avoidances. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the department's IT savings reinvestment plans, the Secretary of Veterans Affairs should direct the CIO to ensure that the department's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Department of Veterans Affairs
    Status: Open

    Comments: The Department of Veterans Affairs agreed with, and has taken initial steps to implement, our recommendation. Specifically, in November 2015, the department's Chief of Staff stated that the Office of Information and Technology was working to establish an office to closely monitor program performance, schedule, return on investment, and total cost of ownership, which will enable reinvestment opportunities. However, as of May 2017, the department's integrated data collection submission did not include reinvestment plans for all of the reported cost savings and avoidance initiatives. For example, the department reported about $177 million in cost savings and avoidances from the renegotiation of an enterprise agreement for software licenses, but did not provide information regarding how it plans to reinvest these savings and avoidances. We will continue to evaluate the department's progress in implementing this recommendation.
    Recommendation: To improve the agency's IT savings reinvestment plans, the Administrator of the Environmental Protection Agency should direct the CIO to ensure that the agency's integrated data collection submission to OMB includes, for all reported initiatives, complete plans to reinvest any resulting cost savings and avoidances from OMB-directed IT reform-related efforts.

    Agency: Environmental Protection Agency
    Status: Open

    Comments: The Environmental Protection Agency agreed with our recommendation, but has not yet taken steps to implement it. Specifically, as of May 2017, the agency's integrated data collection submission did not include reinvestment plans for all of the reported cost savings and avoidance initiatives. For example, the agency reported about $3 million in cost savings and avoidances related to two shared services initiatives, but did not provide information regarding how it plans to reinvest these savings and avoidances. We will continue to evaluate the agency's progress in implementing this recommendation.
    Recommendation: To improve the agency's IT savings reinvestment plans, the Director of the Office of Personnel Management should direct the CIO, as part of any future update to the agency's IRM strategic plan or equivalent document, to include information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) in accordance with OMB's guidance.

    Agency: Office of Personnel Management
    Status: Open

    Comments: The Office of Personnel Management (OPM) agreed with our recommendation, but has not yet taken action to implement it. Specifically, in November 2015, OPM's Acting Director stated that information regarding the approach to reinvesting savings from the consolidation of commodity IT resources (including data centers) would be included in future updates to OPM's Strategic IT Plan. However, as of May 2017, the agency had not yet updated its strategic plan to include this information. We will continue to evaluate the OPM's progress in implementing this recommendation.
    Director: Michael J. Sullivan
    Phone: (202) 512-4841

    2 open recommendations
    Recommendation: To improve DOD's use of portfolio management for its weapon system investments and ensure that its investment plans are affordable, strategy-driven, balance near- and long-term needs, and leverage efforts across the military services, as well as to provide a solid foundation for future portfolio management efforts at the enterprise-level, the Secretary of Defense should revise DOD Directive 7045.2 on Capability Portfolio Management in accordance with best practices and promote the development of better tools to enable more integrated portfolio reviews and analyses of weapon system investments. Key elements of this recommendation would include (1) designating the Deputy Secretary of Defense or some appropriate delegate responsibility for implementing the policy and overseeing portfolio management in DOD; (2) requiring annual enterprise-level portfolio reviews that incorporate key portfolio review elements, including information from the requirements, acquisition, and budget processes; (3) directing the Joint Staff, AT&L, and CAPE to collaborate on their data needs and develop a formal implementation plan for meeting those needs either by building on the database the Joint Staff is developing for its analysis or investing in new analytical tools; and (4) incorporating lessons learned from military service portfolio reviews and portfolio management activities, such as using multiple risk and funding scenarios to assess needs and re-evaluate priorities.

    Agency: Department of Defense
    Status: Open

    Comments: In providing comments on this report, the Department of Defense partially concurred with this recommendation and has taken steps to implement one part of it. In October 2016, the Joint Staff informed GAO that it was updating two of its databases on military capabilities and capability requirements to provide DOD with better analytical tools to support portfolio management. The Department of Defense has not taken any other actions to implement this recommendation.
    Recommendation: To improve DOD's use of portfolio management for its weapon system investments and ensure that its investment plans are affordable, strategy-driven, balance near- and long-term needs, and leverage efforts across the military services, and to help ensure the military services' portfolio reviews are conducted regularly and effectively integrate information from the requirements, acquisition, and budget communities, the Secretary of Defense should direct the Secretaries of the Army, Navy, and Air Force to update or develop policies that require them to conduct annual portfolio reviews that incorporate key portfolio review elements, including information from the requirements, acquisition, and budget processes.

    Agency: Department of Defense
    Status: Open

    Comments: In providing comments on this report, DOD partially concurred with this recommendation but has not yet taken any actions necessary to implement it.
    Director: Charles Jeszeck
    Phone: (202) 512-7215

    1 open recommendations
    Recommendation: To encourage plan sponsors to continue efforts to improve plan participation and overall retirement savings through the use of Qualified Default Investment Alternatives, the Secretary of Labor should direct the Assistant Secretary for the Employee Benefits Security Administration to assess the challenges that plan sponsors and stakeholders reported, including the extent to which these challenges can be addressed, and implement corrective actions through clarifying guidance or regulations, as appropriate.

    Agency: Department of Labor
    Status: Open

    Comments: In 2015, DOL noted that the agency would assess the challenges that plan sponsors and stakeholders had reported to GAO, decide in FY 2016 whether a broader public comment process (such as a Request for Information) or a research project would aid that assessment, and determine whether other actions, such as issuing clarifying guidance or regulations, would be beneficial to its stakeholders. In July 2016, DOL confirmed that the agency continues to plan to take the above action. In July 207, DOL responded that it had not added a public comment process to EBSA's 2017 regulatory agenda, and had no specific timeline for any next action.
    Director: Joseph Kirschbaum
    Phone: (202) 512-9971

    3 open recommendations
    Recommendation: To improve the identification, alignment, and management of DOD's chemical and biological defense infrastructure and to fully institutionalize the use of risk assessments to support future investment decisions, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology and Logistics to update the roles and responsibilities guidance in DOD Directive 5160.05E to identify which organizations are responsible for conducting and participating in CBDP Enterprise risk assessments.

    Agency: Department of Defense
    Status: Open

    Comments: DOD concurred with this recommendation but has not yet completed actions to implement it. As of August 2017, DOD was still waiting to release the final version of DOO Directive 5160.05E.
    Recommendation: To improve the identification, alignment, and management of DOD's chemical and biological defense infrastructure and to fully institutionalize the use of risk assessments to support future investment decisions, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology and Logistics to update the CBDP Enterprise's portfolio planning process, to include when risk assessments will be conducted.

    Agency: Department of Defense
    Status: Open

    Comments: DOD concurred with this recommendation but has not yet completed actions to implement it. On 6/8/16, DOD reported that the risk assessment process was initially piloted in 2014 to determine its utility for informing CBDP Enterprise portfolio planning and guidance. Moving forward, the CBDP Enterprise plans to conduct risk assessments annually to support portfolio planning and guidance. As of August 2017, DOD reported that the department was beginning an approximately 12-month process to revise the CBDP Business Plan, which would likely be published as a DOD Instruction. This plan should address the risk assessment recommendation.
    Recommendation: To improve the identification, alignment, and management of DOD's chemical and biological defense infrastructure and to enhance PAIO's ongoing analysis of potential infrastructure duplication in the CBDP Enterprise and gain potential efficiencies, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology and Logistics to identify, request, and consider any information from existing infrastructure studies from other federal agencies with chemical and biological research and development and test and evaluation infrastructure.

    Agency: Department of Defense
    Status: Open

    Comments: DOD concurred with this recommendation but has not yet completed actions to implement it. As of July 2017, DOD has requested, but not received, such studies from other federal agencies. However, DOD is currently engaged in phase two of a three-phase effort regarding its chemical and biological defense infrastructure program (CBDP), which includes a review of the department's interagency roles and responsibilities for its chemical and biological defense Infrastructure Manager. Targeted completion for this phase is December 2017, at which time, DOD may have obtained relevant information from other federal agencies.
    Director: Charles Jeszeck
    Phone: (202) 512-7215

    6 open recommendations
    including 1 priority recommendation
    Recommendation: To better protect plan sponsors and participants who use managed account services, the Secretary of Labor should direct the Assistant Secretary for the Employee Benefits Security Administration (EBSA) to review provider practices related to additional managed account services offered to participants in or near retirement, with the aim of determining whether conflicts of interest exist and, if it determines it is necessary, taking the appropriate action to remedy the issue.

    Agency: Department of Labor
    Status: Open

    Comments: In 2014, DOL agreed to include these practices in its current review of investment advice conflicts of interest, noting that such conflicts continue to be a concern. In April 2015, a proposed regulation was published in the Federal Register on the definition of a "fiduciary" of an employee benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA) as a result of giving investment advice to a plan or its participants or beneficiaries. The proposal would widen the array of advice relationships under which someone would be considered a fiduciary under ERISA more broadly than existing regulations. This would increase consumer protection for plan sponsors, fiduciaries, participants, beneficiaries and IRA owners. An initial comment period closed on July 21, 2015. DOL held a public hearing on August 10-13, 2015, and reopened the comment period until September 24. GAO will monitor the progress of this proposed rule.
    Recommendation: To better protect plan sponsors and participants who use managed account services, the Secretary of Labor should direct the Assistant Secretary for the EBSA to consider the fiduciary status of managed account providers when they offer services on an opt-in basis and, if necessary, make regulatory changes or provide guidance to address any issues.

    Agency: Department of Labor
    Status: Open
    Priority recommendation

    Comments: DOL concurred with this recommendation and agreed to review existing guidance and consider whether additional guidance is needed in light of the various business models we described. As of May 2017, DOL is continuing these efforts. To implement this recommendation, DOL should complete its efforts to consider managed account service provider practices and fiduciary roles and take any necessary action to address potential issues to ensure that sponsors and participants receive unconflicted managed account services from qualified managers.
    Recommendation: To help sponsors who offer managed account services or who are considering doing so better protect their 401(k) plan participants, the Secretary of Labor should direct the Assistant Secretary for EBSA to require plan sponsors to request from record keepers more than one managed account provider option, and notify the Department of Labor if record keepers fail to do so.

    Agency: Department of Labor
    Status: Open

    Comments: DOL agreed to consider this recommendation in connection with its current regulatory project on standards for brokerage windows in participant-directed individual account plans. The project has been moved to the long-term action category of DOL's regulatory agenda. DOL will also consider the extent of its legal authority to effectively require that plans have more than one managed account service provider or to require that record keepers offer more than one managed account provider as part of their service agreements. GAO believes requiring plan sponsors to ask for more than one choice of a provider -- which is slightly different than how DOL has characterized it--may be an effective method of broadening plan sponsors' choices of managed account providers. However, GAO also agrees that DOL should examine the scope of its existing authority in considering how it might implement this recommendation.
    Recommendation: To help sponsors and participants more effectively assess the performance of managed accounts, the Secretary of Labor should direct the Assistant Secretary for EBSA to amend participant disclosure regulations to require that sponsors furnish standardized performance and benchmarking information to participants. To accomplish this, EBSA could promulgate regulations that would require sponsors who offer managed account services to provide their participants with standardized performance and benchmarking information on managed accounts. For example, sponsors could periodically furnish each managed account participant with the aggregate performance of participants' managed account portfolios and returns for broad-based securities market indexes and applicable customized benchmarks, based on those benchmarks provided for the plan's designated investment alternatives.

    Agency: Department of Labor
    Status: Open

    Comments: DOL agreed to consider this recommendation in connection with (1) its regulatory project on standards for brokerage windows in participant directed individual account plans and (2) open proposed rulemaking project involving the qualified default investment alternative and participant-level fee disclosure regulations. These projects have been moved to the long-term action category of DOL's regulatory agenda.
    Recommendation: To help sponsors and participants more effectively assess the performance of managed accounts, the Secretary of Labor should direct the Assistant Secretary for EBSA to amend service provider disclosure regulations to require that providers furnish standardized performance and benchmarking information to sponsors. To accomplish this, EBSA could promulgate regulations that would require service providers to disclose to sponsors standardized performance and benchmarking information on managed accounts. For example, providers could, prior to selection and periodically thereafter, as applicable, furnish sponsors with aggregated returns for generalized conservative, moderate, and aggressive portfolios, actual managed account portfolio returns for each of the sponsor's participants, and returns for broad-based securities market indexes and applicable customized benchmarks, based on those benchmarks provided for the plan's designated investment alternatives.

    Agency: Department of Labor
    Status: Open

    Comments: DOL agreed to consider this recommendation in connection with (1) its regulatory project on standards for brokerage windows in participant directed individual account plans and (2) open proposed rulemaking project involving the qualified default investment alternative and participant-level fee disclosure regulations. These projects have been moved to the long-term action category of DOL's regulatory agenda.
    Recommendation: To help sponsors who offer managed account services or who are considering doing so better protect their 401(k) plan participants, the Secretary of Labor should direct the Assistant Secretary for EBSA to provide guidance to plan sponsors for selecting and overseeing managed account providers that addresses: (1) the importance of considering multiple providers when choosing a managed account provider, (2) factors to consider when offering managed accounts as a Qualified Default Investment Alternative or on an opt-in basis, and (3) approaches for evaluating the services of managed account providers.

    Agency: Department of Labor
    Status: Open

    Comments: DOL agreed to consider this recommendation in connection with its current regulatory project on standards for brokerage windows in participant-directed individual account plans. DOL intends for this project to address whether potential regulatory or other guidance for such arrangements may be appropriate. The project has been moved to the long-term action category of DOL's regulatory agenda.
    Director: Charlie Jeszeck
    Phone: (202) 512-7215

    4 open recommendations
    Recommendation: To improve IRS's enforcement and compliance efforts, decrease the administrative and financial burden of maintaining both electronic and paper-based form processing systems, and reduce plan reporting costs, Congress should consider providing the Department of the Treasury with the authority to require that the Form 5500 series be filed electronically.

    Agency: Congress
    Status: Open

    Comments: As of 5/31/17, Congress has taken no action.
    Recommendation: To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and the Director of PBGC should consider implementing the findings from our panel when modifying plan investment and service provider fee information, including: (1) revising Schedule H plan asset categories to better match current investment vehicles and provide more transparency into plan investments; (2) revising the Schedule of Assets attachments to create a standard searchable format; (3) developing a central repository for EIN and PN numbers for filers and service providers to improve the comparability of form data across filings; (4) clarifying Schedule C instructions for direct, eligible indirect, and reportable indirect compensation so plan fees are reported more consistently and, as we recommended in the past, better align with the 408(b)(2) fee disclosures; and (5) simplifying and clarify Schedule C service provider codes to increase reporting consistency.

    Agency: Department of Labor
    Status: Open

    Comments: In 2016, DOL in coordination with IRS and PBGC has implemented cross-year edit checks into EFAST in an effort to improve the consistency in key identifying information, such as the EIN, Plan Number and Plan Name. These checks aim to verify identifying information submitted on the Form 5500 and to notify the filer and government agencies of inconsistencies, which affords filers the ability to review and modify crucial identifying information prior to submission. Additionally, if the filer chooses to submit data that may contain inconsistent information, the edit test indicators provide government users with the ability to more readily detect filings containing potential errors in the identifying information for further review and correction. DOL has also collaborated with PBGC and IRS in issuing proposed revisions to the Form 5500 Series in a Notice of Proposed Forms Revisions. The deadline for public comment ended December 5, 2016. The proposed revisions in the Notice reflect efforts of DOL, IRS, and PBGC to improve the Form 5500 reporting for filers, the public, and the agencies by among other things, (1) modernizing financial information filed by regarding plans; (2) updating fee and expense information on plan service providers with a focus on harmonizing annual reporting requirement with DOL's 408(b)(2); financial disclosure requirements; (3) enhancing the ability to mine data files on annual returns/reports; and (4) improving compliance with ERISA and the Code through selected new questions regarding plan operation, service provider relationships, and financial management of plans. Specifically, in the Notice the agencies propose that Schedule H report assets held and assets disposed of during the plan year to provide more transparency and a more complete report of plan's annual investments and that that the Schedule of Assets be revised to require reporting of assets held through direct filing entities. Additionally, the agencies are proposing revisions to the Schedule H, Schedule of Assets that require filers to complete standardized Schedules in a format enabling data to captured electronically. This requirement would enable importation of information from the Schedules of Assets into structured databases that DOL would make available to the public from each year's Form 5500 Series filing. The agencies are also proposing to add clarifying definitions and instructions to improve the consistency of Form 5000 responses. This includes clarification of conventions to identify filers by name and identifying numbers to help mitigate confusion about legal identities with which plans transact and improve comparability of form data across filings. In addition, the agencies also propose revisions to Schedule C to require reporting of indirect compensation for service provider subject to 408(b)(2) requirements and for all compensation that is required to be disclosed. Further, the Schedule C instructions would be clarified to track more closely with the language of the 408(b)(2) regulations. The agencies are also proposing to limit the codes for Schedule C and requiring the filer to more simply indicate all types of services for each provider identified. Additionally, they propose a requirement to indicate all the types of fees/compensation separately when reporting sources of compensation from parties other than plan and plan sponsor. The agencies are reviewing the public comments and expect the process to continue through 2017. While the Agencies have made considerable efforts to address our recommendation in the proposed revisions to the Form 5500, they have not made any decisions on whether to make changes to the forms or DOL regulations, and have not decided on a timeline for implementation of any changes to the form or DOL regulations that the Agencies ultimately may decide to adopt. We will close this recommendation once the revision is final.
    Recommendation: To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and the Director of PBGC should consider implementing the findings from our panel when modifying plan investment and service provider fee information, including: (1) revising Schedule H plan asset categories to better match current investment vehicles and provide more transparency into plan investments; (2) revising the Schedule of Assets attachments to create a standard searchable format; (3) developing a central repository for EIN and PN numbers for filers and service providers to improve the comparability of form data across filings; (4) clarifying Schedule C instructions for direct, eligible indirect, and reportable indirect compensation so plan fees are reported more consistently and, as we recommended in the past, better align with the 408(b)(2) fee disclosures; and (5) simplifying and clarify Schedule C service provider codes to increase reporting consistency.

    Agency: Department of the Treasury
    Status: Open

    Comments: In 2016, DOL in coordination with IRS and PBGC has implemented cross-year edit checks into EFAST in an effort to improve the consistency in key identifying information, such as the EIN, Plan Number and Plan Name. These checks aim to verify identifying information submitted on the Form 5500 and to notify the filer and government agencies of inconsistencies, which affords filers the ability to review and modify crucial identifying information prior to submission. Additionally, if the filer chooses to submit data that may contain inconsistent information, the edit test indicators provide government users with the ability to more readily detect filings containing potential errors in the identifying information for further review and correction. IRS has also collaborated with DOL and PBGC in issuing proposed revisions to the Form 5500 Series in a Notice of Proposed Forms Revisions. The deadline for public comment ended December 5, 2016. The proposed revisions in the Notice reflect efforts of DOL, IRS, and PBGC to improve the Form 5500 reporting for filers, the public, and the agencies by among other things, (1) modernizing financial information filed by regarding plans; (2) updating fee and expense information on plan service providers with a focus on harmonizing annual reporting requirement with DOL's 408(b)(2); financial disclosure requirements; (3) enhancing the ability to mine data files on annual returns/reports; and (4) improving compliance with ERISA and the Code through selected new questions regarding plan operation, service provider relationships, and financial management of plans. Specifically, in the Notice the agencies propose that Schedule H report assets held and assets disposed of during the plan year to provide more transparency and a more complete report of plan's annual investments and that that the Schedule of Assets be revised to require reporting of assets held through direct filing entities. Additionally, the agencies are proposing revisions to the Schedule H, Schedule of Assets that require filers to complete standardized Schedules in a format enabling data to captured electronically. This requirement would enable importation of information from the Schedules of Assets into structured databases that DOL would make available to the public from each year's Form 5500 Series filing. The agencies are also proposing to add clarifying definitions and instructions to improve the consistency of Form 5000 responses. This includes clarification of conventions to identify filers by name and identifying numbers to help mitigate confusion about legal identities with which plans transact and improve comparability of form data across filings. In addition, the agencies also propose revisions to Schedule C to require reporting of indirect compensation for service provider subject to 408(b)(2) requirements and for all compensation that is required to be disclosed. Further, the Schedule C instructions would be clarified to track more closely with the language of the 408(b)(2) regulations. The agencies are also proposing to limit the codes for Schedule C and requiring the filer to more simply indicate all types of services for each provider identified. Additionally, they propose a requirement to indicate all the types of fees/compensation separately when reporting sources of compensation from parties other than plan and plan sponsor. The agencies are reviewing the public comments and expect the process to continue through 2017. While the Agencies have made considerable efforts to address our recommendation in the proposed revisions to the Form 5500, they have not made any decisions on whether to make changes to the forms or DOL regulations, and have not decided on a timeline for implementation of any changes to the form or DOL regulations that the Agencies ultimately may decide to adopt. We will close this recommendation once the revision is final.
    Recommendation: To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and the Director of PBGC should consider implementing the findings from our panel when modifying plan investment and service provider fee information, including: (1) revising Schedule H plan asset categories to better match current investment vehicles and provide more transparency into plan investments; (2) revising the Schedule of Assets attachments to create a standard searchable format; (3) developing a central repository for EIN and PN numbers for filers and service providers to improve the comparability of form data across filings; (4) clarifying Schedule C instructions for direct, eligible indirect, and reportable indirect compensation so plan fees are reported more consistently and, as we recommended in the past, better align with the 408(b)(2) fee disclosures; and (5) simplifying and clarify Schedule C service provider codes to increase reporting consistency.

    Agency: Pension Benefit Guaranty Corporation
    Status: Open

    Comments: In 2016, DOL in coordination with IRS and PBGC has implemented cross-year edit checks into EFAST in an effort to improve the consistency in key identifying information, such as the EIN, Plan Number and Plan Name. These checks aim to verify identifying information submitted on the Form 5500 and to notify the filer and government agencies of inconsistencies, which affords filers the ability to review and modify crucial identifying information prior to submission. Additionally, if the filer chooses to submit data that may contain inconsistent information, the edit test indicators provide government users with the ability to more readily detect filings containing potential errors in the identifying information for further review and correction. PBDC has also collaborated with DOL and IRS in issuing proposed revisions to the Form 5500 Series in a Notice of Proposed Forms Revisions. The deadline for public comment ended December 5, 2016. The proposed revisions in the Notice reflect efforts of DOL, IRS, and PBGC to improve the Form 5500 reporting for filers, the public, and the agencies by among other things, (1) modernizing financial information filed by regarding plans; (2) updating fee and expense information on plan service providers with a focus on harmonizing annual reporting requirement with DOL's 408(b)(2); financial disclosure requirements; (3) enhancing the ability to mine data files on annual returns/reports; and (4) improving compliance with ERISA and the Code through selected new questions regarding plan operation, service provider relationships, and financial management of plans. Specifically, in the Notice the agencies propose that Schedule H report assets held and assets disposed of during the plan year to provide more transparency and a more complete report of plan's annual investments and that that the Schedule of Assets be revised to require reporting of assets held through direct filing entities. Additionally, the agencies are proposing revisions to the Schedule H, Schedule of Assets that require filers to complete standardized Schedules in a format enabling data to captured electronically. This requirement would enable importation of information from the Schedules of Assets into structured databases that DOL would make available to the public from each year's Form 5500 Series filing. The agencies are also proposing to add clarifying definitions and instructions to improve the consistency of Form 5000 responses. This includes clarification of conventions to identify filers by name and identifying numbers to help mitigate confusion about legal identities with which plans transact and improve comparability of form data across filings. In addition, the agencies also propose revisions to Schedule C to require reporting of indirect compensation for service provider subject to 408(b)(2) requirements and for all compensation that is required to be disclosed. Further, the Schedule C instructions would be clarified to track more closely with the language of the 408(b)(2) regulations. The agencies are also proposing to limit the codes for Schedule C and requiring the filer to more simply indicate all types of services for each provider identified. Additionally, they propose a requirement to indicate all the types of fees/compensation separately when reporting sources of compensation from parties other than plan and plan sponsor. The agencies are reviewing the public comments and expect the process to continue through 2017. While the Agencies have made considerable efforts to address our recommendation in the proposed revisions to the Form 5500, they have not made any decisions on whether to make changes to the forms or DOL regulations, and have not decided on a timeline for implementation of any changes to the form or DOL regulations that the Agencies ultimately may decide to adopt. We will close this recommendation once any revision are made final.
    Director: Valerie C. Melvin
    Phone: (202) 512-6304

    2 open recommendations
    including 1 priority recommendation
    Recommendation: To ensure effective management and modernization of HUD's IT environment, the Secretary of Housing and Urban Development should direct the department's Chief Information Officer to establish a means for evaluating progress toward institutionalizing management controls and commit to time lines for activities and next steps.

    Agency: Department of Housing and Urban Development
    Status: Open

    Comments: As of April 2017, HUD had not yet established a means for evaluating progress toward institutionalizing IT management controls. According to HUD officials, the department expects to evaluate the controls through an update to its IT Management Framework scheduled to be completed during fiscal year 2017.
    Recommendation: To ensure effective management and modernization of HUD's IT environment, the Secretary of Housing and Urban Development should direct the department's Chief Information Officer to define the scope, implementation strategy, and schedule of its overall modernization approach, with related goals and measures for effectively overseeing the effort.

    Agency: Department of Housing and Urban Development
    Status: Open
    Priority recommendation

    Comments: In August 2016, HUD officials reported that the department was taking actions intended to establish a new, stronger enterprise approach for IT development and operations. As of April 2017, the department reported that it was in phase 2 of a 4-phase application assessment initiative expected to address this recommendation. However, HUD has not yet provided evidence of how the new approach is expected to define the scope, implementation strategy, and schedule for modernizing the department's IT.
    Director: St James, Lorelei
    Phone: (202) 512-2834

    3 open recommendations
    Recommendation: To strengthen USPS's capital investment process related to USPS policy and consistent application of leading practices, the Postmaster General and executive leaders should establish a time frame for developing a clear, detailed, single-source, standard set of policies and procedures that reflect the capital investment selection phase.

    Agency: United States Postal Service: Office of the Postmaster General
    Status: Open

    Comments: In June 2017, the U.S. Postal Service (USPS) informed GAO that its Handbook F-66 General Investment Policies and Procedures is undergoing revisions that will make the capital investment selection process more clear, detailed, and standardized. The revised draft of the F-66 handbook is currently in the review and clearance process and may be finalized in 2017. USPS added that it will inform GAO of further updates as they develop.
    Recommendation: To strengthen USPS's capital investment process related to USPS policy and consistent application of leading practices, the Postmaster General and executive leaders should modify capital investment policies to more closely align with the following leading practices, including: (1) for planning capital investments, consider whether an external entity could better support all or part of a desired function when evaluating alternative capital investment options; (2) for selecting capital investments, use a portfolio approach for developing business cases and finalizing and allocating resources; and (3) for evaluating capital investments, seek and leverage external oversight and review, from a consultant or peer reviewer, and require that best practices and lessons learned be incorporated into the review process.

    Agency: United States Postal Service: Office of the Postmaster General
    Status: Open

    Comments: In June 2017, USPS informed GAO and provided documentation that its Handbook F-66 General Investment Policies and Procedures is to incorporate all leading practices. The F-66, however, is not yet finalized. In particular, the draft F-66 states that for planning investments, USPS is to conduct an analysis to identify the most economically beneficial resolution to a problem--the alternative that will result in the highest net present value, lowest costs, or greatest savings. For selecting investments, USPS is to use a portfolio approach organized by agency goals, sub-goals, indicators, and targets. For evaluating investments, USPS is to evaluate the need to hire consultants when applicable to assess the investment. The revised F-66 indicates that USPS will also is require project managers to submit an analysis of investment performance and lessons learned as part of its post-deployment steps.
    Recommendation: To strengthen USPS's capital investment process related to USPS policy and consistent application of leading practices, the Postmaster General and executive leaders should regularly examine the extent to which executives and program managers consistently follow all leading practices, particularly for: (1) identifying problems and reassessing risk while managing a project; and (2) evaluating the cost, schedule, and performance results of completed projects.

    Agency: United States Postal Service: Office of the Postmaster General
    Status: Open

    Comments: In June 2017, USPS informed GAO and provided documentation that its revised Handbook F-66 General Investment Policies and Procedures is to include a management step to regularly review the progress and benefits of its capital investments, as well as its affordability and achievability, and make adjustments as necessary to meet the investment's goals. In addition, once a project is completed, USPS will require capital investment managers to present on the investment's performance, return-on-investment, and lessons learned.
    Director: St James, Lorelei
    Phone: (202) 512-2834

    4 open recommendations
    Recommendation: A key matter for Congress to consider is whether or not to move forward with a USPS health plan that would result in an increase in retirees' use of Medicare. If Congress decides to approve this proposal, then Congress should also weigh the impact on other issues, including safeguards for all USPS health plan fund assets by placing appropriate constraints on their asset allocations, such as limiting investments to Treasury securities and inflation-indexed Treasury securities or, if Congress chooses to permit investments in non-Treasury securities, constraints on the discount rate for prefunding purposes so as not to anticipate returns on risk-bearing assets in excess of those on Treasury securities before such returns have actually been achieved.

    Agency: Congress
    Status: Open

    Comments: As of May 2017, Congress had not enacted legislation that would create a U.S. Postal Service health plan that would result in an increase in retirees' use of Medicare. Therefore, Congress had not fully addressed the impact of safeguards for all USPS health plan fund assets by placing appropriate constraints on their asset allocations. In September 2015, S.2051: Improving Postal Operations, Service, and Transparency Act of 2015 was introduced to the to the U.S. Senate Committee on Homeland Security and Governmental Affairs. The bill requires all Medicare-eligible postal annuitants and employees enrolled in a U.S. Postal Service health plan to also enroll in Medicare, including parts A, B and D. This bill, however, has not yet been approved by the Senate Committee on Homeland Security and Governmental Affairs.
    Recommendation: A key matter for Congress to consider is whether or not to move forward with a USPS health plan that would result in an increase in retirees' use of Medicare. If Congress decides to approve this proposal, then Congress should also weigh the impact on other issues, including standards for the disposition of any surplus health plan assets that reduce the risk of a new unfunded liability emerging in the future, standards such as amortizing any surplus to mirror the amortization of any unfunded liability, or using any surplus to offset normal cost payments.

    Agency: Congress
    Status: Open

    Comments: As of May 2017, Congress had not enacted legislation that would create a U.S. Postal Service health plan that would result in an increase in retirees' use of Medicare. Consequently, Congress has not fully addressed the issue of standards for the disposition of any surplus health plan assets that reduce the risk of a new unfunded liability emerging in the future, such as amortizing any surplus to mirror the amortization of any unfunded liability, or using any surplus to offset normal cost payments.
    Recommendation: A key matter for Congress to consider is whether or not to move forward with a USPS health plan that would result in an increase in retirees' use of Medicare. If Congress decides to approve this proposal, then Congress should also weigh the impact on other issues, including designation or creation of an independent entity responsible for the selection of actuarial assumptions used to annually determine the funded status of USPS's health plan for purposes of determining prefunding payments.

    Agency: Congress
    Status: Open

    Comments: As of May 2017, Congress had not enacted legislation that would create a U.S. Postal Service health plan that would result in an increase in retirees' use of Medicare. Consequently, Congress has not fully addressed the designation or creation of an independent entity responsible for the selection of actuarial assumptions used to annually determine the funded status of USPS's health plan for purposes of determining prefunding payments.
    Recommendation: A key matter for Congress to consider is whether or not to move forward with a USPS health plan that would result in an increase in retirees' use of Medicare. If Congress decides to approve this proposal, then Congress should also weigh the impact on other issues, including protections for postal employees and retirees that are comparable to those under FEHBP, including a formula for USPS retirees' contribution to the costs of their health coverage.

    Agency: Congress
    Status: Open

    Comments: As of May 2017, Congress had not enacted legislation that would create a U.S. Postal Service health plan that would result in an increase in retirees' use of Medicare. Consequently, Congress has not fully addressed the issue of protections for postal employees and retirees that are comparable to those under FEHBP, including a formula for USPS retirees' contribution to the costs of their health coverage.
    Director: Trimble, David C
    Phone: (202)512-9338

    1 open recommendations
    Recommendation: To improve cohesion in the management and operation of EPA's laboratories, the Administrator of EPA should establish a top-level science official with the authority and responsibility to coordinate, oversee, and make management decisions regarding major scientific activities throughout the agency, including the work of all program, regional, and ORD laboratories.

    Agency: Environmental Protection Agency
    Status: Open

    Comments: EPA took some steps toward establishing a top-level science official with responsibilities to coordinate and oversee the laboratories, but the agency did not expand this official's authority to make management decisions regarding scientific activities for the laboratories.
    Director: Powner, David A
    Phone: (202)512-9286

    1 open recommendations
    Recommendation: The Commissioner of Internal Revenue should direct the appropriate officials to define and implement a process, including defined criteria, for reselecting ongoing projects.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: Since we made the recommendation, IRS has been working to redesign its investment management process. In June 2016, we reported that the agency had defined and implemented a repeatable process for selecting (and reselecting) operations support activities, though it had not fully documented the process, but did not have a similar process for its business systems modernization activities (GAO-16-545). We recommended that IRS document its process for operations support activities and establish, document, and implement policies and procedures for selecting new and reselecting ongoing business systems modernization activities. IRS agreed with our recommendations and, in January 2017, stated it expected to have an internal draft document of the operations support activities process completed by the end of February 2017 with a draft ready to share with GAO a month later. In addition, for the business systems modernization process, IRS noted several improvements underway and stated it would document the process as it improved by December 2017. We will continue to monitor IRS's efforts to define and implement processes, including criteria, for reselecting ongoing projects.