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The District of Columbia has taken various steps to implement a performance management process, and Congress has continued to provide oversight to strengthen the District's ability to efficiently and effectively deliver results to its taxpayers. This testimony discusses GAO's (1) ongoing review of the District's fiscal year 2000 performance report; (2) report issued in April 2001 on the implementation of the District's new financial management system; and (3) report being issued in May 2001 on the District's decision not to use money that Congress provided to help simplify the District's compensation systems, schedules, and work rules. GAO found that although the fiscal year 2000 report more fully met statutory requirements than did the 1999 report, performance planning, measurement and reporting is still a work in progress in the District. The District continues to face significant challenges in its efforts to put in place a financial management framework that ensures timely and reliable data on the cost of the District's operations. Finally, the District no longer plans to use the $250,000 appropriated by Congress for reform of the District's classification and compensation systems because doing so would delay their reform effort. This testimony summarizes two GAO reports (GAO-01-489 and GAO-01-690R).

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