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United States Government Accountability Office: 
GAO: 

Testimony: 

Before the Subcommittee on Oversight and Management Efficiency, 
Committee on Homeland Security, House of Representatives: 

For Release on Delivery: 
Expected at 9: 00 a.m. EDT: 
Friday, February 15, 2013: 

Department of Homeland Security: 

Progress Made and Work Remaining after Nearly 10 Years in Operation: 

Statement of Cathleen A. Berrick, Managing Director: 
Homeland Security and Justice: 

GAO-13-370T: 

GAO Highlights: 

Highlights of GAO-13-370T, a testimony before the Subcommittee on 
Oversight and Management Efficiency, Committee on Homeland Security, 
House of Representatives. 

Why GAO Did This Study: 

The Department of Homeland Security began operations nearly 10 years 
ago on March 1, 2003. Around that time, GAO designated implementing 
and transforming DHS as high risk because DHS had to transform 22 
agencies-—several with major management challenges-—into one 
department. Further, failure to effectively address DHS’s management 
and mission risks could have serious consequences for U.S. national 
and economic security. Since 2003, GAO has evaluated numerous 
departmental programs and operations and issued over 1,300 products in 
such areas as border security and immigration, transportation 
security, and emergency management, among others. 

This testimony addresses (1) DHS’s progress implementing and 
strengthening its mission functions, and (2) crosscutting issues that 
have affected the department’s implementation efforts. This testimony 
is based on products GAO has issued assessing DHS’s progress in 
implementing its homeland security missions and work remaining. 

What GAO Found: 

Since the Department of Homeland Security (DHS) began operations in 
2003, it has implemented key homeland security operations and achieved 
important goals and milestones in many areas to create and strengthen 
a foundation to reach its potential. As it continues to mature, 
however, more work remains for DHS to address gaps and weaknesses in 
its current operational and implementation efforts, and to strengthen 
the efficiency and effectiveness of those efforts. 

In its assessment of DHS’s progress and challenges 10 years after the 
terrorist attacks of September 11, 2001, as well as its more recent 
work, GAO reported that DHS had, among other things, developed 
strategic and operational plans across its range of missions; 
established new, or expanded existing, offices and programs; and 
developed and issued policies, procedures, and regulations to govern 
its homeland security operations. However, GAO also identified that 
challenges remained for DHS to address across its missions. Examples 
of progress made and work remaining include the following: 

Aviation security. DHS developed and implemented Secure Flight, a 
program through which the federal government now prescreens all 
passengers on all commercial flights to, from, and within the United 
States. However, DHS did not validate the science supporting its 
behavior detection program before deploying behavior detection 
officers at airports, including determining whether such techniques 
could be successfully used to detect threats. 

Border security/immigration enforcement. DHS reported data indicating 
it had met its goal to secure the land border because of a decrease in 
apprehensions, attributed in part to changes in the U.S. economy and 
achievement of DHS strategic objectives. However, DHS has not 
developed a process to identify and analyze program risks, such as a 
process to evaluate prior and suspected cases of fraud, in its Student 
and Exchange Visitor Program, a program intended to, among other 
things, ensure that foreign students studying in the United States 
comply with the terms of their admission into the country. 

Emergency preparedness and response. DHS issued the National Response 
Framework, which outlines disaster response guiding principles. 
However, GAO reported that DHS could reduce the costs to the federal 
government related to major disasters declared by the President by 
updating the principal indicator on which disaster funding decisions 
are based and better measuring a state’s capacity to respond without 
federal assistance. 

GAO has identified three key themes-—leading and coordinating the 
homeland security enterprise, implementing and integrating management 
functions for results, and strategically managing risks and assessing 
homeland security efforts-—that DHS needs to address from a 
departmentwide perspective to effectively and efficiently position the 
department for the future. DHS has made progress in all three areas 
by, among other things, providing leadership and coordination. 
However, DHS has continued to face challenges in all of these areas. 
For example, GAO reported that improving research and development 
could help DHS reduce, among other things, cost overruns and 
performance shortfalls by reducing inefficiencies and costs for 
homeland security. 

What GAO Recommends: 

While this testimony contains no new recommendations, GAO has 
previously made about 1,800 recommendations to DHS designed to 
strengthen its programs and operations. DHS has addressed more than 60 
percent of them, has efforts underway to address others, and has taken 
additional action to strengthen the department. 

View [hyperlink, http://www.gao.gov/products/GAO-13-370T]. For more 
information, contact Cathleen A. Berrick, 202-512-3404, 
berrickc@gao.gov. 

[End of section] 

Chairman Duncan, Ranking Member Barber, and Members of the 
Subcommittee: 

I am pleased to be here today to discuss our work on progress made by 
the Department of Homeland Security (DHS) and work remaining in 
implementing its homeland security missions since it began operations 
almost 10 years ago on March 1, 2003. This milestone provides an 
opportunity to reflect on the progress DHS has made since it began 
operating as a single department and the challenges it has faced in 
implementing its missions, as well as to identify issues that will be 
important for the department to address as it moves forward, based on 
work we have completed on DHS programs and operations in key areas. 

Since DHS began operations, we have evaluated numerous departmental 
programs and issued more than 1,300 reports and congressional 
testimonies in areas such as border security and immigration, 
transportation security, and emergency management, among others. We 
have made approximately 1,800 recommendations to DHS designed to 
strengthen its operations. DHS has implemented more than 60 percent of 
these recommendations, has actions under way to address others, and 
has taken additional steps to strengthen its mission activities. 
However, the department has more to do to ensure that it conducts its 
missions efficiently and effectively while simultaneously preparing to 
address future challenges that face the department and the nation. 

In 2003, we designated implementing and transforming DHS as high risk 
because DHS had to transform 22 agencies--several with major 
management challenges--into one department.[Footnote 1] Further, 
failure to effectively address DHS's management and mission risks 
could have serious consequences for U.S. national and economic 
security. Since 2003, we have identified additional high-risk areas 
where DHS has primary or significant responsibilities, including 
protecting the federal government's information systems and the 
nation's critical cyber infrastructure, establishing effective 
mechanisms for sharing and managing terrorism-related information to 
protect the homeland, and the National Flood Insurance Program. 
[Footnote 2] 

In September 2011, we issued a report summarizing progress made by DHS 
in implementing its homeland security missions 10 years after the 
terrorist attacks of September 11, 2001.[Footnote 3] We reported that 
DHS had implemented key homeland security operations and achieved 
important goals in many areas to create and strengthen a foundation to 
reach its potential. We also reported, however, that as DHS continues 
to mature, more work remains for it to strengthen the efficiency and 
effectiveness of those efforts to achieve its full potential. 

My statement today is based on these and associated products, and 
addresses (1) DHS's progress implementing and strengthening its 
mission functions, and (2) crosscutting issues that have affected the 
department's implementation efforts. 

For these past reports, among other things, we analyzed DHS documents; 
reviewed and updated our past reports, supplemented by DHS Office of 
Inspector General (IG) reports, issued since DHS began its operations 
in March 2003; and interviewed DHS officials. We conducted this work 
in accordance with generally accepted government auditing standards. 
More detailed information on the scope and methodology from our 
previous work can be found within each specific report. 

DHS Continues to Implement and Strengthen Its Mission Functions, but 
Key Operational and Management Challenges Remain: 

Progress Implementing and Strengthening DHS's Mission Functions: 

Since DHS began operations in March 2003, it has developed and 
implemented key policies, programs, and activities for implementing 
its homeland security missions and functions that have created and 
strengthened a foundation for achieving its potential as it continues 
to mature. We reported in our assessment of DHS's progress and 
challenges 10 years after the September 11 attacks, as well as in our 
more recent work, that the department has implemented key homeland 
security operations and achieved important goals in many areas. These 
included developing strategic and operational plans across its range 
of missions; hiring, deploying, and training workforces; establishing 
new, or expanding existing, offices and programs; and developing and 
issuing policies, procedures, and regulations to govern its homeland 
security operations.[Footnote 4] 

For example: 

* DHS successfully hired, trained, and deployed workforces, including 
the federal screening workforce to assume screening responsibilities 
at airports nationwide, and about 20,000 agents to patrol U.S. land 
borders. 

* DHS also created new programs and offices, or expanded existing 
ones, to implement key homeland security responsibilities, such as 
establishing the National Cybersecurity and Communications Integration 
Center to, among other things, coordinate the nation's efforts to 
prepare for, prevent, and respond to cyber threats to systems and 
communications networks. 

* DHS issued policies and procedures addressing, among other things, 
the screening of passengers at airport checkpoints, inspecting 
travelers seeking entry into the United States, and assessing 
immigration benefit applications and processes for detecting possible 
fraud. 

* DHS issued the National Response Framework, which outlines disaster 
response guiding principles, including major roles and 
responsibilities of government, nongovernmental organizations, and 
private sector entities for response to disasters of all sizes and 
causes. 

* After initial difficulty in fielding the program, DHS developed and 
implemented Secure Flight, a passenger prescreening program through 
which the federal government now screens all passengers on all 
commercial flights to, from, and within the United States. 

* In fiscal year 2011, DHS reported data indicating it had met its 
interim goal to secure the land border with a decrease in 
apprehensions. Our data analysis showed that apprehensions decreased 
within each southwest border sector and by 68 percent in the Tucson 
sector from fiscal years 2006 through 2011. Border Patrol officials 
attributed this decrease in part to changes in the U.S. economy and 
achievement of Border Patrol strategic objectives.[Footnote 5] 

* We reported in September 2012 that DHS, through its component 
agencies, particularly the Coast Guard and U.S. Customs and Border 
Protection (CBP), has made substantial progress in implementing 
various programs that, collectively, have improved maritime security. 
[Footnote 6] For example, in November 2011, we reported that the Coast 
Guard's risk assessment model generally met DHS criteria for being 
complete, reproducible, documented, and defensible.[Footnote 7] Coast 
Guard units throughout the country use this risk model to improve 
maritime domain awareness and better assess security risks to key 
maritime infrastructure. 

* DHS has taken important actions to conduct voluntary critical 
infrastructure and key resources (CIKR) security surveys and 
vulnerability assessments, provide information to CIKR stakeholders, 
and assess the effectiveness of security surveys and vulnerability 
assessments.[Footnote 8] 

Challenges Implementing DHS's Missions: 

DHS has made progress in implementing its homeland security missions, 
but more work remains for DHS to address gaps and weaknesses in its 
current operational and implementation efforts, and to strengthen the 
efficiency and effectiveness of those efforts to achieve its full 
potential. Our recent work has shown that many DHS programs and 
investments continue to experience cost overruns, schedule delays, and 
performance problems, and can be better coordinated to reduce overlap 
and the potential for unnecessary duplication, and achieve cost 
savings.[Footnote 9] For example: 

* DHS needs better project information and coordination to identify 
and prevent potential unnecessary duplication among four overlapping 
grant programs that in total constituted $20 billion in grants from 
fiscal years 2002 through 2011. We also found that DHS has not 
implemented outcome-based performance measures for any of the four 
programs, which hampers its ability to fully assess the effectiveness 
of these grant programs.[Footnote 10] 

* DHS has not developed a process to identify and analyze program 
risks in its Student and Exchange Visitor Program, such as a process 
to evaluate prior and suspected cases of school noncompliance and 
fraud. The program is intended to ensure that foreign students 
studying in the United States comply with the terms of their admission 
into the country and to certify schools as authorized to accept 
foreign students in academic and vocational programs. The program's 
budget authority in fiscal year 2012 was $120 million.[Footnote 11] 

* DHS did not validate the science supporting the Screening of 
Passengers by Observation Techniques program or determine if behavior 
detection techniques could be successfully used across the aviation 
system to detect threats before deploying the program. The program has 
an annual cost of over $200 million.[Footnote 12] We are currently 
reviewing DHS's efforts to assess the effectiveness of the program and 
ensure that behavior detection officers are consistently implementing 
program protocols, and we expect to report on the results of our work 
later this year. 

* DHS experienced schedule delays and performance problems with its 
information technology program for securing the border between ports 
of entry--the Secure Border Initiative Network (SBInet)--which led to 
its cancellation after 5 years and about $1 billion after deploying 53 
miles of SBInet systems to the Arizona border.[Footnote 13] DHS has 
adopted a new approach for developing a technology plan for 
surveillance at the remainder of the Arizona border, referred to as 
the Arizona Border Surveillance Technology Plan (Plan), with an 
estimated life cycle cost of $1.5 billion. To develop the Plan, DHS 
conducted an analysis of alternatives and outreach to potential 
vendors, and took other steps to test the viability of the current 
system. However, DHS has not documented the analysis justifying the 
specific types, quantities, and deployment locations of border 
surveillance technologies proposed in the Plan, or defined the mission 
benefits or developed performance metrics to assess its implementation 
of the Plan. We are reviewing DHS's efforts to implement the Plan, and 
we expect to report on the results of our work later this year. 

* DHS spent more than $200 million on advanced spectroscopic portals, 
used to detect smuggled nuclear or radiological materials, without 
issuing an accurate analysis of both the benefits and the costs--which 
we later estimated at over $2 billion--and a determination of whether 
additional detection capabilities were worth the additional costs. DHS 
subsequently canceled the advanced spectroscopic portals program as 
originally conceived.[Footnote 14] 

* Each year DHS processes millions of applications and petitions for 
more than 50 types of immigrant-and nonimmigrant-related benefits for 
persons seeking to study, work, visit, or live in the United States, 
and for persons seeking to become U.S. citizens. DHS embarked on a 
major initiative in 2005 to transform its current paper-based system 
into an electronic account-based system that is to use electronic 
adjudication and account-based case management tools, including tools 
that are to allow applicants to apply online for benefits. However, 
DHS did not consistently follow the acquisition management approach 
outlined in its management directives in developing and managing the 
program. The lack of defined requirements, acquisition strategy, and 
associated cost parameters contributed to program deployment delays of 
over 2 years. In addition, DHS estimates that through fiscal year 
2011, it spent about $703 million, about $292 million more than the 
original program baseline estimate.[Footnote 15] 

* We found that DHS could reduce the costs to the federal government 
related to major disasters declared by the President by updating the 
principal indicator on which disaster funding decisions are based and 
better measuring a state's capacity to respond without federal 
assistance. From fiscal years 2004 through 2011, the President 
approved 539 major disaster declarations at a cost of $78.7 billion. 
[Footnote 16] 

DHS Can Strengthen the Efficiency and Effectiveness of Its Operations 
by Continuing to Address Cross-cutting Issues That Have Impacted Its 
Progress: 

Our work on DHS's mission functions and crosscutting issues has 
identified three key themes--leading and coordinating the homeland 
security enterprise, implementing and integrating management functions 
for results, and strategically managing risks and assessing homeland 
security efforts--that have impacted the department's progress since 
it began operations.[Footnote 17] As these themes have contributed to 
challenges in the department's management and operations, addressing 
them can result in increased efficiencies and effectiveness. For 
example, DHS can help reduce cost overruns and performance shortfalls 
by strengthening the management of its acquisitions, and reduce 
inefficiencies and costs for homeland security by improving its 
research and development (R&D) management. These themes provide 
insights that can inform DHS's efforts as it works to implement its 
missions within a dynamic and evolving homeland security environment. 
DHS made progress and has had successes in all of these areas, but our 
work found that these themes have been at the foundation of DHS's 
implementation challenges, and need to be addressed from a department-
wide perspective to effectively and efficiently position the 
department for the future. 

Leading and Coordinating the Homeland Security Enterprise: 

DHS is one of a number of entities with a role in securing the 
homeland and has significant leadership and coordination 
responsibilities for managing efforts across the homeland security 
enterprise. To satisfy these responsibilities, it is critically 
important that DHS develop, maintain, and leverage effective 
partnerships with its stakeholders while at the same time addressing 
DHS-specific responsibilities in satisfying its missions. DHS has made 
important strides in providing leadership and coordinating efforts 
across the homeland security enterprise, but needs to take additional 
actions to forge effective partnerships and strengthen the sharing and 
utilization of information. For example, DHS has improved coordination 
and clarified roles with state and local governments for emergency 
management. DHS also strengthened its partnerships and collaboration 
with foreign governments to coordinate and standardize security 
practices for aviation security. The department has further 
demonstrated leadership by establishing a governance board to serve as 
the decision-making body for DHS information-sharing issues.[Footnote 
18] The board has enhanced collaboration among DHS components and 
identified a list of key information-sharing initiatives. 

Although DHS has made important progress, more work remains. We 
designated terrorism-related information sharing as high risk in 2005 
because the government faces significant challenges in analyzing and 
disseminating this information in a timely, accurate, and useful 
manner.[Footnote 19] In our most recent high-risk update, we reported 
that the federal government's leadership structure is committed to 
enhancing the sharing and management of terrorism-related information 
and has made significant progress defining a governance structure to 
implement the Information Sharing Environment--an approach that is 
intended to serve as an overarching solution to strengthening sharing. 
[Footnote 20] However, we also reported that the key departments and 
agencies responsible for information-sharing activities, including 
DHS, need to continue their efforts to share and manage terrorism-
related information by, among other things, identifying technological 
capabilities and services that can be shared across departments and 
developing metrics that measure the performance of, and results 
achieved by, projects and activities. DHS officials explained that its 
information-sharing initiatives are integral to its mission activities 
and are funded through its components' respective budgets. However, in 
September 2012 we reported that five of DHS's top eight priority 
information-sharing initiatives faced funding shortfalls, and DHS had 
to delay or scale back at least four of them.[Footnote 21] 

Implementing and Integrating Management Functions for Results: 

Following its establishment, DHS focused its efforts primarily on 
implementing its various missions to meet pressing homeland security 
needs and threats, and less on creating and integrating a fully and 
effectively functioning department. As the department matured, it has 
put into place management policies and processes and made a range of 
other enhancements to its management functions, which include 
acquisition, information technology, financial, and human capital 
management. However, DHS has not always effectively executed or 
integrated these functions. 

While challenges remain for DHS to address across its range of 
missions, the department has made considerable progress in 
transforming its original component agencies into a single cabinet-
level department and positioning itself to achieve its full potential. 
Important strides have also been made in strengthening the 
department's management functions and in integrating those functions 
across the department, particularly in recent years. However, 
continued progress is needed in order to mitigate the risks that 
management weaknesses pose to mission accomplishment and the efficient 
and effective use of the department's resources. In particular, the 
department needs to demonstrate continued progress in implementing and 
strengthening key management initiatives and addressing corrective 
actions and outcomes that GAO identified, and DHS committed to taking 
actions address this high-risk area. For example: 

* Acquisition management: Although DHS has made progress in 
strengthening its acquisition function, most of the department's major 
acquisition programs continue to cost more than expected, take longer 
to deploy than planned, or deliver less capability than promised. We 
identified 42 programs that experienced cost growth, schedule slips, 
or both, with 16 of the programs' costs increasing from a total of 
$19.7 billion in 2008 to $52.2 billion in 2011--an aggregate increase 
of 166 percent. We reported in September 2012 that DHS leadership has 
authorized and continued to invest in major acquisition programs even 
though the vast majority of those programs lack foundational documents 
demonstrating the knowledge needed to help manage risks and measure 
performance.[Footnote 22] We recommended that DHS modify acquisition 
policy to better reflect key program and portfolio management 
practices and ensure acquisition programs fully comply with DHS 
acquisition policy. DHS concurred with our recommendations and 
reported taking actions to address some of them. 

* Information technology management: DHS has defined and begun to 
implement a vision for a tiered governance structure intended to 
improve information technology (IT) program and portfolio management, 
which is generally consistent with best practices. However, the 
governance structure covers less than 20 percent (about 16 of 80) of 
DHS's major IT investments and 3 of its 13 portfolios, and the 
department has not yet finalized the policies and procedures 
associated with this structure. In July 2012, we recommended that DHS 
finalize the policies and procedures and continue to implement the 
structure. DHS agreed with these recommendations and estimated it 
would address them by September 2013.[Footnote 23] 

* Financial management: DHS has, among other things, received a 
qualified audit opinion on its fiscal year 2012 financial statements. 
[Footnote 24] DHS is working to resolve the audit qualification to 
obtain an unqualified opinion for fiscal year 2013.[Footnote 25] 
However, DHS components are currently in the early planning stages of 
their financial systems modernization efforts, and until these efforts 
are complete, their current systems will continue to inadequately 
support effective financial management, in part because of their lack 
of substantial compliance with key federal financial management 
requirements. Without sound controls and systems, DHS faces challenges 
in obtaining and sustaining audit opinions on its financial statement 
and internal controls over financial reporting, as well as ensuring 
its financial management systems generate reliable, useful, and timely 
information for day-to-day decision making. 

* Human capital management: In December 2012, we identified several 
factors that have hampered DHS's strategic workforce planning efforts 
and recommended, among other things, that DHS identify and document 
additional performance measures to assess workforce planning efforts. 
[Footnote 26] DHS agreed with these recommendations and stated that it 
plans to take actions to address them. In addition, DHS has made 
efforts to improve employee morale, such as taking actions to 
determine the root causes of morale problems. Despite these efforts, 
however, federal surveys have consistently found that DHS employees 
are less satisfied with their jobs than the government-wide average. 
In September 2012, we recommended, among other things, that DHS 
improve its root cause analysis efforts of morale issues. DHS agreed 
with these recommendations and noted actions it plans to take to 
address them.[Footnote 27] 

Strategically Managing Risks and Assessing Homeland Security Efforts: 

Forming a new department while working to implement statutorily 
mandated and department-initiated programs and responding to evolving 
threats, was, and is, a significant challenge facing DHS. Key threats, 
such as attempted attacks against the aviation sector, have impacted 
and altered DHS's approaches and investments, such as changes DHS made 
to its processes and technology investments for screening passengers 
and baggage at airports. It is understandable that these threats had 
to be addressed immediately as they arose. However, limited strategic 
and program planning by DHS, as well as assessment to inform 
approaches and investment decisions, has contributed to programs not 
meeting strategic needs or not doing so in an efficient manner. 

Further, DHS has made important progress in analyzing risk across 
sectors, but it has more work to do in using this information to 
inform planning and resource-allocation decisions. Risk management has 
been widely supported by Congress and DHS as a management approach for 
homeland security, enhancing the department's ability to make informed 
decisions and prioritize resource investments. Since DHS does not have 
unlimited resources and cannot protect the nation from every 
conceivable threat, it must make risk-informed decisions regarding its 
homeland security approaches and strategies. We reported in September 
2011 that using existing risk assessment tools could assist DHS in 
prioritizing its Quadrennial Homeland Security Review (QHSR) 
implementation mechanisms.[Footnote 28] For example, examining the 
extent to which risk information could be used to help prioritize 
implementation mechanisms for the next QHSR could help DHS determine 
how to incorporate and use such information to strengthen 
prioritization and resource allocation decisions. DHS officials plan 
to implement a national risk assessment in advance of the next QHSR, 
which DHS anticipates conducting in fiscal year 2013. 

Our work has also found that DHS continues to miss opportunities to 
optimize performance across its missions due to a lack of reliable 
performance information or assessment of existing information; 
evaluation among possible alternatives; and, as appropriate, 
adjustment of programs or operations that are not meeting mission 
needs. For example, we reported in February 2013 that the government's 
strategy documents related to Information Systems and the Nation's 
Cyber Critical Infrastructure Protection included few milestones or 
performance measures, making it difficult to track progress in 
accomplishing stated goals and objectives.[Footnote 29] In addition, 
in September 2012, we reported that DHS had approved a third 
generation of BioWatch technology--to further enhance detection of 
certain pathogens in the air--without fully evaluating viable 
alternatives based on risk, costs, and benefits.[Footnote 30] As the 
department further matures and seeks to optimize its operations, DHS 
will need to look beyond immediate requirements; assess programs' 
sustainability across the long term, particularly in light of 
constrained budgets; and evaluate trade-offs within and among programs 
across the homeland security enterprise. Doing so should better equip 
DHS to adapt and respond to new threats in a sustainable manner as it 
works to address existing ones. 

Concluding Observations: 

Given DHS's role and leadership responsibilities in securing the 
homeland, it is critical that the department's programs and activities 
are operating as efficiently and effectively as possible; are 
sustainable; and continue to mature, evolve, and adapt to address 
pressing security needs. Since it began operations in 2003, DHS has 
implemented key homeland security operations and achieved important 
goals and milestones in many areas. DHS has also made important 
progress in strengthening partnerships with stakeholders, improving 
its management processes and sharing of information, and enhancing its 
risk management and performance measurement efforts. Important strides 
have also been made in strengthening the department's management 
functions and in integrating those functions across the department, 
particularly in recent years. Senior leaders at the department have 
also continued to demonstrate strong commitment to addressing the 
department's management challenges across the management functions. 
These accomplishments are especially noteworthy given that the 
department has had to work to transform itself into a fully 
functioning cabinet department while implementing its missions--a 
difficult undertaking for any organization and one that can take years 
to achieve even under less daunting circumstances. 

Impacting the department's efforts have been a variety of factors and 
events, such as attempted terrorist attacks and natural disasters, as 
well as new responsibilities and authorities provided by Congress and 
the administration. These events collectively have forced DHS to 
continually reassess its priorities and reallocate resources as 
needed, and have impacted its continued integration and 
transformation. Given the nature of DHS's mission, the need to remain 
nimble and adaptable to respond to evolving threats, as well as to 
work to anticipate new ones, will not change and may become even more 
complex and challenging as domestic and world events unfold, 
particularly in light of reduced budgets and constrained resources. 
Our work has shown that to better position itself to address these 
challenges, DHS should place an increased emphasis on and take 
additional action in supporting and leveraging the homeland security 
enterprise; managing its operations to achieve needed results; and 
strategically planning for the future while assessing and adjusting, 
as needed, what exists today. DHS also needs to continue its efforts 
to address the associated high-risk areas that we have identified 
which have affected its implementation efforts. Addressing these 
issues will be critically important for the department to strengthen 
its homeland security programs and operations. DHS has indeed made 
significant strides in protecting the homeland, but has yet to reach 
its full potential. 

Chairman Duncan, Ranking Member Barber, and Members of the 
Subcommittee, this concludes my prepared statement. I would be pleased 
to respond to any questions you may have at this time. 

GAO Contacts and Staff Acknowledgments: 

For further information regarding this testimony, please contact 
Cathleen A. Berrick at (202) 512-3404 or berrickc@gao.gov. In 
addition, contact points for our Offices of Congressional Relations 
and Public Affairs may be found on the last page of this statement. 
Individuals who made key contributions to this testimony are Scott 
Behen, Adam Hoffman, and David Maurer. Key contributors for the 
previous work that this testimony is based on are listed within each 
individual product. 

[End of section] 

Footnotes: 

[1] GAO, High-Risk Series: An Update, [hyperlink, 
http://www.gao.gov/products/GAO-03-119] (Washington, D.C.: January 
2003). 

[2] GAO, High-Risk Series: An Update, [hyperlink, 
http://www.gao.gov/products/GAO-13-283] (Washington, D.C.: February 
2013). The National Flood Insurance Program is a key component of the 
federal government's efforts to limit the damage and financial impact 
of floods. 

[3] GAO, Department of Homeland Security: Progress Made and Work 
Remaining in Implementing Homeland Security Missions 10 Years after 
9/11, [hyperlink, http://www.gao.gov/products/GAO-11-881] (Washington, 
D.C.: Sept. 7, 2011). 

[4] [hyperlink, http://www.gao.gov/products/GAO-11-881]. 

[5] GAO, Border Patrol: Key Elements of New Strategic Plan Not Yet in 
Place to Inform Border Security Status and Resource Needs, [hyperlink, 
http://www.gao.gov/products/GAO-13-25] (Washington D.C.: Dec. 10, 
2012). Border Patrol, within U.S. Customs and Border Protection, is 
the federal agency with primary responsibility for securing the 
national borders between designated U.S. land border ports of entry. 

[6] GAO, Maritime Security: Progress and Challenges 10 Years after the 
Maritime Transportation Security Act, [hyperlink, 
http://www.gao.gov/products/GAO-12-1009T] (Washington, D.C.: Sept. 11, 
2012). 

[7] GAO, Coast Guard: Security Risk Model Meets DHS Criteria, but More 
Training Could Enhance Its Use for Managing Programs and Operations, 
[hyperlink, http://www.gao.gov/products/GAO-12-14] (Washington, D.C.: 
Nov. 17, 2011). 

[8] GAO, Critical Infrastructure Protection: DHS Could Better Manage 
Security Surveys and Vulnerability Assessments, [hyperlink, 
http://www.gao.gov/products/GAO-12-378] (Washington, D.C.: May 31, 
2012). 

[9] GAO, Department of Homeland Security: Actions Needed To Reduce 
Overlap and Potential Unnecessary Duplication, Achieve Cost Savings, 
and Strengthen Mission Functions, [hyperlink, 
http://www.gao.gov/products/GAO-12-464T] (Washington, D.C.: Mar. 8, 
2012). 

[10] GAO, Homeland Security: DHS Needs Better Project Information and 
Coordination among Four Overlapping Grant Programs, [hyperlink, 
http://www.gao.gov/products/GAO-12-303] (Washington, D.C.: Feb. 28, 
2012). 

[11] GAO, Student and Exchange Visitor Program: DHS Needs to Assess 
Risks and Strengthen Oversight Functions, [hyperlink, 
http://www.gao.gov/products/GAO-12-572] (Washington, D.C.: June 18, 
2012). 

[12] GAO, Aviation Security: Efforts to Validate TSA's Passenger 
Screening Behavior Detection Program Underway, but Opportunities Exist 
to Strengthen Validation and Address Operational Challenges, 
[hyperlink, http://www.gao.gov/products/GAO-10-763] (Washington, D.C.: 
May 20, 2010). 

[13] GAO, Arizona Border Surveillance Technology: More Information on 
Plans and Costs Is Needed before Proceeding, [hyperlink, 
http://www.gao.gov/products/GAO-12-22] (Washington, D.C.: Nov. 4, 
2011). 

[14] [hyperlink, http://www.gao.gov/products/GAO-12-464T]. 

[15] GAO, Immigration Benefits: Consistent Adherence to DHS's 
Acquisition Policy Could Help Improve Transformation Program Outcomes, 
and [hyperlink, http://www.gao.gov/products/GAO-12-66] (Washington, 
D.C.: Nov. 22, 2011). 

[16] GAO, Federal Disaster Assistance: Improved Criteria Needed to 
Assess a Jurisdiction's Capability to Respond and Recover on Its Own, 
[hyperlink, http://www.gao.gov/products/GAO-12-838] (Washington, D.C.: 
Sept. 12, 2012). This total includes obligations made as of September 
30, 2011, for major disasters declared from fiscal years 2004 through 
2011. 

[17] DHS defines the homeland security enterprise as the federal, 
state, local, tribal, territorial, nongovernmental, and private-sector 
entities, as well as individuals, families, and communities, who share 
a common national interest in the safety and security of the United 
States and the American population. 

[18] GAO, Information Sharing: DHS Has Demonstrated Leadership and 
Progress, but Additional Actions Could Help Sustain and Strengthen 
Efforts, [hyperlink, http://www.gao.gov/products/GAO-12-809] 
(Washington, D.C.: Sept. 18, 2012). DHS has established a decision-
making body--the Information Sharing and Safeguarding Governance 
Board--that demonstrates senior executive-level commitment to 
improving information sharing. The board has identified information-
sharing gaps and developed a list of key initiatives to help address 
those gaps. 

[19] GAO, High-Risk Series: An Update, [hyperlink, 
http://www.gao.gov/products/GAO-05-207] (Washington, D.C.: January 
2005). 

[20] [hyperlink, http://www.gao.gov/products/GAO-13-283]. 

[21] [hyperlink, http://www.gao.gov/products/GAO-12-809]. 

[22] GAO, Homeland Security: DHS Requires More Disciplined Investment 
Management to Help Meet Mission Needs, [hyperlink, 
http://www.gao.gov/products/GAO-12-833] (Washington D.C.: Sept. 18, 
2012). 

[23] GAO, Information Technology: DHS Needs to Further Define and 
Implement Its New Governance Process, [hyperlink, 
http://www.gao.gov/products/GAO-12-818] (Washington, D.C.: July 25, 
2012). 

[24] A qualified opinion states that, except for the effects of the 
matter(s) to which the qualification relates, the audited financial 
statements present fairly, in all material respects, the financial 
position, results of operations, and cash flows of the entity in 
conformity with generally accepted accounting principles. DHS's 
auditors issued their audit qualification due to DHS's inability to 
support certain components of property, plant, and equipment and 
heritage and stewardship assets. DHS's complete set of financial 
statements consist of the Balance Sheet, Statement of Net Cost, 
Statement of Changes in Net Position, Statement of Budgetary 
Resources, and Statement of Custodial Activity. 

[25] An unqualified opinion states that the audited financial 
statements present fairly, in all material respects, the financial 
position, results of operations, and cash flows of the entity in 
conformity with generally accepted accounting principles. 

[26] GAO, DHS Strategic Workforce Planning: Oversight of 
Departmentwide Efforts Should Be Strengthened, [hyperlink, 
http://www.gao.gov/products/GAO-13-65] (Washington D.C.: Dec. 3, 2012). 

[27] GAO, Department of Homeland Security: Taking Further Action to 
Better Determine Causes of Morale Problems Would Assist in Targeting 
Action Plans, [hyperlink, http://www.gao.gov/products/GAO-12-940] 
(Washington, D.C.: Sept. 28, 2012). 

[28] GAO, Quadrennial Homeland Security Review: Enhanced Stakeholder 
Consultation and Use of Risk Information Could Strengthen Future 
Reviews, [hyperlink, http://www.gao.gov/products/GAO-11-873] 
(Washington, D.C.: Sept. 15, 2011). The Quadrennial Homeland Security 
Review outlined a strategic framework for homeland security to guide 
the activities of homeland security partners, including federal, 
state, local, and tribal government agencies; the private sector; and 
nongovernmental organizations. 

[29] [hyperlink, http://www.gao.gov/products/GAO-13-283]. 

[30] GAO, Biosurveillance: DHS Should Reevaluate Mission Need and 
Alternatives before Proceeding with BioWatch Generation-3 Acquisition, 
[hyperlink, http://www.gao.gov/products/GAO-12-810] (Washington, D.C.: 
Sept. 10, 2012). 

[End of section] 

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