Recommendation: The Secretary of Commerce should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 1)

Agency: Department of Commerce
Status: Open

Comments: The Department of Commerce agreed with the recommendation and stated that it will develop an action plan to address the recommendation to better align its contingency plan with OMB guidance. When we confirm what actions Commerce has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Homeland Security should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 2)

Agency: Department of Homeland Security
Status: Open

Comments: The Department of Homeland Security agreed with the recommendation and and stated that it has begun to take steps to better address OMB guidance on contingency plans. When we confirm what actions DHS has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commissioner of Internal Revenue should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 3)

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

Comments: The Internal Revenue Service (IRS) partially agreed with the recommendation. IRS agreed with one element of our recommendation to include additional detail in its agency contingency plan and stated that it is in the process of adding procedures for resuming program activities following a government shutdown into its contingency plan. IRS did not agree with the other elements of the recommendation because it believes it has already addressed plans for a potential prolonged shutdown and flexibilities for supervisors if employees are unable to return to work at the end of a shutdown in its contingency plans. We agree that while IRS has included some details on these elements in its plans, we continue to believe that it should provide more detail, such as points in time when the furlough status of an employee may change, how many employees would be affected, and the legal basis for the changes, within its publically available contingency plan to fully address these elements. We will continue to monitor IRS's efforts in this area.

Recommendation: The U.S. Trade Representative, in consultation with EOP as appropriate, should align the component's contingency plan with OMB guidance. This could be accomplished through (1) revisions to the EOP contingency plan; or (2) by creating a separate USTR plan. (Recommendation 4)

Agency: Executive Office of the President: Office of the United States Trade Representative
Status: Open

Comments: The Office of the U.S. Trade Representative (USTR) neither agreed nor disagreed with the recommendation. USTR stated that it has already begun addressing our recommendations on aligning its contingency plan with OMB guidance. When we confirm what actions USTR has taken in response to this recommendation, we will provide updated information.

Recommendation: The Under Secretary for International Trade should document the component's shutdown processes, including roles and responsibilities, planning processes for potential shutdowns, and recall processes for furloughed employees during a shutdown. (Recommendation 5)

Agency: Department of Commerce: International Trade Administration
Status: Open

Comments: The Department of Commerce agreed with the recommendation and stated that the International Trade Administration (ITA) has documented its shutdown planning processes and recall processes for furloughed employees during a shutdown. When we confirm what actions ITA has taken in response to this recommendation, we will provide updated information.

Recommendation: The U.S. Trade Representative should document the component's shutdown processes, including roles and responsibilities, planning processes for potential shutdowns, and recall processes for furloughed employees during a shutdown. (Recommendation 6)

Agency: Executive Office of the President: Office of the United States Trade Representative
Status: Open

Comments: The Office of the U.S. Trade Representative (USTR) neither agreed nor disagreed with the recommendation. USTR stated that it has already begun addressing our recommendations on documenting its shutdown processes. When we confirm what actions USTR has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commissioner of CBP should develop internal controls to track and document which employees worked and what work was performed daily during a government shutdown. (Recommendation 7)

Agency: Department of Homeland Security: United States Customs and Border Protection
Status: Open

Comments: The Department of Homeland Security agreed with the recommendation and stated that Customs and Border Protection plans to analyze existing systems to determine which is best suited to track and document employee work during a government shutdown and will ensure that the chosen system is available should a future shutdown occur. When we confirm what actions CBP has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commissioner of CBP should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 8)

Agency: Department of Homeland Security: United States Customs and Border Protection
Status: Open

Comments: The Department of Homeland Security (DHS) agreed with the recommendation but stated that because Customs and Border Protection (CBP) does not have systems capable of efficiently restoring physical access for furloughed employees, it would have to reinstate employee access individually and the cost would be substantial. DHS stated that CBP plans to update procedures to ensure more comprehensive workspace access guidance for furloughed employees. We continue to believe that physical access controls are important during shutdowns in order to prevent misuse of government resources. We encourage CBP to improve their systems to be able to efficiently implement such controls and will monitor CBP's efforts going forward.

Recommendation: The Commissioner of Internal Revenue should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 9)

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

Comments: The Internal Revenue Service disagreed with this recommendation. IRS stated that it believes that it has effective controls in place to manage physical workspace access during a shutdown. In addition, IRS said that it believes that implementing additional access controls do not justify the corresponding resource investments. We continue to believe that IRS should improve its access controls, which currently rely on managers and furlough letters to communicate limits on workspace access. While we recognize the costs of increased access controls, government shutdowns are unique events that require additional access controls in order to prevent potential misuse of government resources and will monitor IRS's efforts to address it.

Recommendation: The U.S. Trade Representative should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 10)

Agency: Executive Office of the President: Office of the United States Trade Representative
Status: Open

Comments: The Office of the U.S. Trade Representative (USTR) neither agreed nor disagreed with the recommendation. USTR stated that it has made the Executive Office of the President (EOP) aware of the recommendations on developing controls for physical workspace access during a shutdown. We will continue to monitor USTR's efforts to address this recommendation.

Recommendation: The Commissioner of CBP should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 11)

Agency: Department of Homeland Security: United States Customs and Border Protection
Status: Open

Comments: The Department of Homeland Security (DHS) agreed with the recommendation. DHS stated that Customs and Border Protection (CBP) believes that furloughed employees must be able to passively monitor the status of the government shutdown and access important agency communications using DHS-issued electronic devices. Additionally, disabling and reactivating thousands of employee user accounts during a shutdown posed a significant burden. DHS said that CBP plans to update shutdown procedures to clarify allowed use of DHS-issued electronic devices by furloughed employees. We agree that CBP should update procedures on workspace access as suggested, and continue to believe that virtual access controls are important during shutdowns in order to prevent misuse of government resources. We encourage CBP to improve their systems to be able to efficiently implement such controls and will monitor CBP's progress going forward.

Recommendation: The Commissioner of Internal Revenue should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 12)

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

Comments: The Internal Revenue Service disagreed with this recommendation. IRS stated that it believes that it has effective controls in place to manage virtual workspace access during a shutdown. In addition, IRS said that it believes that implementing additional access controls do not justify the corresponding resource investments. We continue to believe that IRS should improve its access controls, which currently rely on managers and furlough letters to communicate limits on workspace access. While we recognize the costs of increased access controls, government shutdowns are unique events that require additional access controls in order to prevent potential misuse of government resources and will monitor IRS's efforts to address it.

Recommendation: The Under Secretary for International Trade should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 13)

Agency: Department of Commerce: International Trade Administration
Status: Open

Comments: The Department of Commerce agreed with the recommendation and stated that the International Trade Administration (ITA) has established and documented internal controls to limit virtual workspace access to excepted or exempt employees during a government shutdown. When we confirm what actions ITA has taken in response to this recommendation, we will provide updated information.

Recommendation: The U.S. Trade Representative should, in consultation with EOP, develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 14)

Agency: Executive Office of the President: Office of the United States Trade Representative
Status: Open

Comments: The Office of the U.S. Trade Representative (USTR) neither agreed nor disagreed with the recommendation. USTR stated that it has made the Executive Office of the President (EOP) aware of the recommendations on developing controls for virtual workspace access during a shutdown. We will continue to monitor USTR's efforts to address this recommendation.

Recommendation: The Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers should define and measure deferred maintenance for inland waterways in a way that enables the Corps to clearly communicate estimated costs for maintenance needs. (Recommendation 1)

Agency: Department of Defense: Department of the Army: Corps of Engineers
Status: Open

Comments: As of December 2019, the Corps has developed a definition for "deferred maintenance" for civil works and plans to request funding to establish a team to review maintenance data. The Corps anticipates implementing this recommendation by the end of 2020.

Recommendation: The Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers should pursue ways to increase the Corps' ability to use available funding for inland waterways construction more efficiently and, should changes to the Corps' authority be necessary, develop a legislative proposal to request such authority. (Recommendation 2)

Agency: Department of Defense: Department of the Army: Corps of Engineers
Status: Open

Comments: As of December 2019, the Corps is working to review existing authorities, funding, and contracting mechanisms to identify potential courses of action to address GAO's recommendation. The Corps anticipates implementing this recommendation in 2021.

Recommendation: The Secretary of Defense should ensure that the Under Secretary of Defense (Comptroller), in coordination with the U.S. Army, Air Force, Navy, and Marine Corps, conduct a review of the foreign currency rates used at disbursement to determine whether cost-saving opportunities exist by more consistently selecting cost-effective rates at disbursement. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense (DOD) concurred with this recommendation. As of August 2019, DOD had planned actions to update Volume 6A, Chapter 7 of the Financial Management Regulation (FMR) with guidance on rates for disbursement to ensure all components are utilizing the most cost-effective rates while balancing mission requirements and time required to process transactions. DOD estimates that the FMR revision will be completed by October 31, 2020. Until the revision to the FMR is completed, DOD risks paying more to disburse funds for overseas expenditures than would otherwise be required.

Recommendation: The Secretary of Defense should ensure that the Under Secretary of Defense (Comptroller) analyze realized and projected losses to determine the necessary size of the FCFD account balance and use the results of this analysis as the basis for transfers of unobligated balances to the account. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense (DOD) partially concurred with this recommendation. However, as of August 2019, DOD had not planned any actions intended to implement this recommendation. According to DOD, projecting foreign currency gains or losses to determine the necessary size of the Foreign Currency Fluctuations, Defense (FCFD) account balance would only be possible if foreign currency rates do not fluctuate. DOD states that if projected gains or losses are used to determine the necessary size of the FCFD account when foreign currency rates are volatile, it would expose the department to additional risk. In our report, we acknowledged the inherent challenge in projecting foreign currency gains or losses. However, we also noted that DOD already projects foreign currency gains or losses as the basis for transfers out of the FCFD account but does not use the same analysis to inform its transfers into the account. Further, DOD has the flexibility to make multiple transfers of funds to the FCFD account in a fiscal year in response to any unforeseen foreign currency fluctuations. Without an analysis of projected losses to determine the necessary size of the account balance, DOD may be maintaining the account at a higher balance than is necessary and losing opportunities to more efficiently use funds.

Recommendation: The Secretary of Defense should ensure that the Under Secretary of Defense (Comptroller) revise the Financial Management Regulation to include guidance on ensuring that data are complete and accurate, including assignment of responsibility for correcting erroneous data in its Foreign Currency Fluctuations Defense (O&M) reports. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense (DOD) concurred with this recommendation. As of August 2019, DOD had planned actions to revise Volume 6A, Chapter 7 of the Financial Management Regulation (FMR) to ensure reporting is complete and accurate and assign responsibilities to DOD components for data correction. DOD estimates that the revision to the FMR will be completed by October 31, 2020. Without updated guidance to ensure that the data that tracks foreign currency gains and losses are complete, DOD and Congress will continue to lack quality information with which to make decisions and exercise stewardship over resources for managing foreign currency fluctuations.

Recommendation: The Secretary of Defense should ensure that the Secretary of the Army develop a plan with timelines for implementing changes to its General Fund Enterprise Business System to accurately record its disbursements, consistent with DOD Financial Management Regulation guidance. (Recommendation 4)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense (DOD) concurred with this recommendation. As of August 2019, DOD had planned actions intended to address the recommendation. Specifically, the Secretary of the Army intended to develop a Systems Change Request for how disbursements are recorded in the General Fund Enterprise Business System to be consistent with DOD's Financial Management Regulation. DOD estimates that the system changes will be complete by the second quarter of FY 2020. Until DOD completes its planned actions to address this recommendation, the Army and DOD will continue to lack accurate information for tracking and helping to manage foreign currency gains and losses.

Recommendation: To improve internal controls over the Forest Service's budget execution processes, the Chief of the Forest Service should (1) design, document, and implement a comprehensive system for administrative control of funds and (2) submit it for review and approval by USDA before issuance, as required by the USDA Budget Manual. (Recommendation 3)

Agency: Department of Agriculture: Forest Service
Status: Open

Comments: The Forest Service generally agreed with this recommendation and stated that its financial policies concerning budget execution have been revised to address our concerns with allotments, unliquidated obligations, commitments, and administrative control of funds as prescribed by OMB Circular A-11. Further, the Forest Service stated that it has undertaken an in-depth review of its unliquidated obligations and modified the certification process to comply with the USDA requirement. However, the Forest Service has not yet provided support for the review and approval of the administrative control of funds by USDA and OMB. GAO will continue to follow up on the status of this recommendation.

Recommendation: To improve internal controls over the Forest Service's budget execution processes, the Chief of the Forest Service should develop, document, and implement a process and related control activities to reasonably assure that standard operating procedures and desk guides (1) clearly refer to guidance in the Directive System for allotments, reimbursable agreements, and review of unliquidated obligations and (2) are reviewed and approved by responsible officials prior to use. (Recommendation 11)

Agency: Department of Agriculture: Forest Service
Status: Open

Comments: The Forest Service generally agreed with this recommendation and stated that it has made significant progress to address this recommendation. Specifically, the Forest Service stated that its financial policies concerning budget execution have been revised to address allotments, unliquidated obligations, commitments, and administrative control of funds as prescribed by OMB Circular A-11. Further, the Forest Service stated that it has undertaken an in-depth review of its unliquidated obligations and modified the certification process to comply with the USDA requirement. However, as of August 2020, the Forest Service has not provided support for the training provided to implement the revised procedures. GAO will continue to follow up on the status of this recommendation.

Recommendation: As DOD assesses potential cost savings under the Defense Resale Business Optimization Board or through other cost savings initiatives identified, the Secretary of Defense, with assistance as necessary from the Director and Chief Executive Officer of the Defense Commissary Agency, the Director and Chief Executive Officer of the Army and Air Force Exchange Service, the Chief Executive Officer of the Navy Exchange Service Command, and the Marine Corps Exchange, should provide information to Congress that includes data, assumptions, and methodology supporting DOD's conclusion for not achieving budget neutrality.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. As of October 2019, DOD has not completed actions to implement our recommendations. When we confirm what actions DOD has taken, we will provide updated information.

Recommendation: As DOD assesses potential cost savings under the Defense Resale Business Optimization Board or through other cost savings initiatives identified, the Secretary of Defense, with assistance as necessary from the Director and Chief Executive Officer of the Defense Commissary Agency, the Director and Chief Executive Officer of the Army and Air Force Exchange Service, the Chief Executive Officer of the Navy Exchange Service Command, and the Marine Corps Exchange, should develop a plan with assumptions, a methodology, cost estimates, and specific time frames for achieving alternative reductions to appropriations, to support DOD's efforts to ensure that DOD's cost savings target is feasible and accurate.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. As of October 2019, DOD has not completed actions to implement our recommendations. When we confirm what actions DOD has taken, we will provide updated information. In 2017, DOD officials told us that they would include information about assumptions, a methodology, cost estimates, and timelines for achieving alternative reductions, but they were unable to provide any documentation of progress made.

Recommendation: As DOD conducts pilot programs, the Secretary of Defense, with assistance as necessary from the Director and Chief Executive Officer of the Defense Commissary Agency, the Director and Chief Executive Officer of the Army and Air Force Exchange Service, the Chief Executive Officer of the Navy Exchange Service Command, and the Marine Corps Exchange, should identify specific metrics to determine whether DOD has fulfilled the mandated requirement to maintain high levels of customer satisfaction, the provision of high-quality products, and the sustainment of patron savings.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. As of October 2019, DOD has not completed actions to implement our recommendations. When we confirm what actions DOD has taken, we will provide updated information.

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: In its fiscal year 2017 congressional justification, IRS modified how its budget data were organized, including linking requested increases to future state themes, but did not clarify how current spending by themes relates to appropriation accounts. Information on current spending by theme and account is important to ensure transparency on the current funding levels to assist Congress in making informed budget decisions. As reported in October 2018 in GAO-19-108R, the themes under the Future State vision are now being pursued as part of IRS's strategic plan for fiscal years 2018 to 2022-issued in May 2018. IRS has been phasing out the use of the term Future State and did not include it in its fiscal year 2020 congressional justification. Including data on the themes in the strategic plan would provide additional transparency and improve the quality of the information available to Congress for budget deliberations.

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: As of November 2017, Treasury Department officials took steps to address the need to manually correct budget data for the fiscal year 2017 budget request. However, as of October 2019, we have not received documentation that they have done so for future budget years. Improved information would help Treasury and IRS better account for information technology resources. We will continue to monitor Treasury's progress.

Recommendation: To help ensure that DOD is better informed in its decision-making processes, the Secretary of Defense should direct the Under Secretary of Defense (Comptroller) and the Under Secretary of Defense for Personnel and Readiness to utilize comprehensive and up-to-date furlough cost-savings information as it becomes available in the event that DOD decides to implement another administrative furlough in the future.

Agency: Department of Defense
Status: Open

Comments: DOD partially concurred with this recommendation, but did not elaborate as to why. As of November 2019, DOD has not implemented an administrative furlough since our 2014 report nor has it produced any guidance regarding the recommendation. We will continue to monitor for the development of guidance or a potential DOD administrative furlough.