Recommendation: The Secretary of the Navy should ensure that the Deputy Commandant for the Office of Programs and Resources oversee development and implementation of an approach to enable tracking of unit-level training funds through the budget cycle. This approach should include aligning MCPCs across the Marine Corps and ensuring consistent use of SIC codes. (Recommendation 1)

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

Comments: As of August 2020, the Navy has informed GAO that efforts to address this recommendation are underway. The Marine Corps has in process a Planning, Programming, Budgeting, and Execution (PPBE) reform initiative that it expects to provide visibility and traceability throughout the budget cycle, to include enabling the tracking of unit-level training funds throughout the budget cycle. DOD expects to complete implementation by the end of fiscal year 2025. We will continue to monitor actions taken related to this recommendation and provide updates as appropriate.

Recommendation: The Secretary of the Navy should ensure that the Commandant of the Marine Corps designates a single entity responsible for directing, overseeing, and coordinating efforts to achieve the objective of establishing an enterprise-wide performance management process that links resources to readiness. (Recommendation 2)

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

Comments: As of August 2020, the Navy has informed GAO that efforts to address this recommendation are underway through its Planning, Programming, Budgeting, and Execution (PPBE) reform initiative. The initiative is expected to result in the addition of an "Assessment" phase to the PPBE process, which will be known as "PPBEA." The new phase is expected to include a system that incorporates campaign planning against traceability of funding, among other factors, and will be documented in a new Marine Corps Order to replace existing PPBE guidance. The Marine Corps expects to complete this process by the end of fiscal year 2025. We will continue to monitor actions taken related to this recommendation and provide updates as appropriate.

Recommendation: The Secretary of the Navy should ensure that the Commandant of the Marine Corps assesses C2RAM to determine the extent to which this system, or elements of this system, should be adapted for use in an enterprise-wide performance management process linking resources to readiness. (Recommendation 3)

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

Comments: As of August 2020, the Navy has informed GAO that efforts to address this recommendation are underway. The Marine Corps' Programs and Resources Department is supporting the transition of the Cost to Run a MEF (C2RAM) from a stand-alone database to a web-enabled platform within the Marine Corps Training Information Management System (MCTIMS) program. The Marine Corps expects this platform to provide the ability to track ground unit-level training costs as they pertain to readiness goals and provide data to more effectively assess readiness investments for subsequent budget cycles. The Marine Corps expects the platform to attain initial operational capability for data input and data management by the end of fiscal year 2020, and to support analytics reporting and predictive resourcing functions by the end of fiscal year 2021. We will continue to monitor actions taken related to this recommendation and provide updates as appropriate.

Recommendation: The Administrator of RHS should develop and implement a plan for ongoing monitoring, including testing and evaluation, of the obligation tool using relevant data. (Recommendation 1)

Agency: Department of Agriculture: Rural Housing Service
Status: Open

Comments: In June 2019, RHS said that implementing the recommendation would require information technology funding.

Recommendation: The Administrator of RHS should develop controls to check the reasonableness of rental assistance agreement amounts calculated by the obligation tool. (Recommendation 2)

Agency: Department of Agriculture: Rural Housing Service
Status: Open

Comments: In June 2019, RHS said that implementing the recommendation would require information technology funding.

Recommendation: The Administrator of RHS should develop controls to ensure that RHS uses the inflation rates from the President's economic assumptions in developing budget estimates. (Recommendation 3)

Agency: Department of Agriculture: Rural Housing Service
Status: Open

Comments: In June 2019, RHS said it would incorporate the recommended controls into the fiscal year 2021 budget cycle.

Recommendation: The Administrator of RHS should provide guidance to Rural Development state offices that specifies that prior to obligating funds, staff are to review information related to a property's mortgage servicing status. (Recommendation 4)

Agency: Department of Agriculture: Rural Housing Service
Status: Open

Comments: In June 2019, RHS said it was working toward providing the recommended guidance to Rural Development state offices.

Recommendation: The Secretary of Defense should direct the Office of the Under Secretary of Defense (Comptroller) to provide guidance in the DOD Financial Management Regulation on the timing of when DOD managers should use available tools to help ensure that monthly cash balances are within the upper and lower cash requirements.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation and plans to update guidance in Volume 2B, Chapter 9, Paragraph 090103 4.j. of the DOD Financial Management Regulation. The draft guidance provided by DOD stated that "Components should consider leveraging the aforementioned available cash management tools when cash execution is trending below/above plan for more than three consecutive months of execution." In August 2020, DOD told us that after coordination within DOD, they estimate the final guidance related to our recommendation will be included in the DOD Financial Management Regulation guidance by April 2021.

Recommendation: In collaboration with cognizant officials within DOD components, the Director of Human Capital Initiatives should ensure that components have processes in place to verify the accuracy and completeness of data on the execution of initiatives funded by DAWDF.

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

Comments: DOD partially concurred with this recommendation and the Human Capital Initiatives office has taken several actions to address it, including establishing a more detailed reporting process and providing new guidance to DOD components on how to use the reporting tools. The DOD components, however, have not yet provided Human Capital Initiatives responses to the updated guidance requiring them to provide information on the processes they use to confirm that the data submitted to Human Capital Initiatives on DAWDF initiatives were reliable and complete. In addition, the National Defense Authorization Act (NDAA) for Fiscal Year 2020 made changes to the way that the Defense Acquisition Workforce Development Fund (DAWDF) was funded. The NDAA for Fiscal Year 2021 proposes additional changes to the way that DAWDF is funded and managed. Some DAWDF funding may go directly to the DOD components and will not be overseen by Human Capital Initiatives. Once the NDAA for Fiscal Year 2021 is finalized, we will reassess to determine if the recommendation is still relevant.

Recommendation: To help IRS improve its process for determining IT funding priorities and to provide timely information on the progress of its investments, the Commissioner of IRS should direct the Chief Technology Officer to establish, document, and implement policies and procedures for selecting new and reselecting ongoing business systems modernization activities, consistent with IRS's process for prioritizing operations support priorities, which addresses (1) prioritization and comparison of IT assets against each other, (2) criteria for making selection and prioritization decisions, and (3) ensuring IRS executives' final funding decisions on IT proposals are based on IRS's prioritization process.

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

Comments: In September 2018, IRS provided GAO a slide deck titled "Prioritization Process for the Business Systems Modernization (BSM) Program/Projects" which describes a process for prioritizing BSM investments and capabilities within the investments. However, the slides were labeled "pre-decisional." In addition, they did not include specific procedures for prioritizing investments. In April 2020, IRS informed us that it had moved its target for fully implementing the recommendation to November 2020. We will continue to monitor IRS's efforts to implement the recommendation.

Recommendation: To help IRS improve its process for determining IT funding priorities and to provide timely information on the progress of its investments, the Commissioner of IRS should direct the Chief Technology Officer to modify existing processes for Foreign Account Tax Compliance Act (FATCA) and Return Review Program (RRP) for measuring work performed by IRS staff to incorporate best practices, including accounting for actual work performed and using the level of effort measure sparingly.

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

Comments: In May 2018, IRS told GAO it had implemented the recommendation. As supporting evidence, the agency provided an April 2018 update to its Investment Performance Tool user guide along with briefing slides specifying actions taken to modify its processes to measure work performed by IRS staff. We reviewed the evidence provided and determined that it was not sufficient to close the recommendation as implemented. Specifically, while the Investment Performance Tool user guide included updated procedures for measuring work performed by IRS staff which aligned with best practices, it did not clearly state that earned value (or work performed) during an iteration should always be based on to the percentage of planned features or user stories that were completed for that iteration. In addition, IRS did not provide evidence that it had used its updated procedures for the Return Review Program investment. We followed up with IRS to obtain this documentation. The agency subsequently provided the requested documentation to us and, as of July 2020, we were reviewing it to determine the extent to which it addresses the recommendation.

Recommendation: To better ensure that taxpayer funds are being used effectively, Congress should consider permanently rescinding any Treasury-deobligated excess MHA balances that Treasury does not move into the Hardest Hit Fund.

Agency: Congress
Status: Open

Comments: No legislative action identified, as of July 22, 2020. Congress has not yet taken any action to rescind excess MHA balances, as recommended in GAO's March 2016 report. According to Treasury, it took action on July 27, 2018, to deobligate $4.0 billion MHA program funds beyond the $2 billion that it had previously deobligated and transferred to the Troubled Asset Relief Program-funded Hardest Hit Fund in February 2016. As a result of Treasury's deobligated action, Congress now has the opportunity to rescind and use the funds for other priorities.

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 2016, DOL confirmed that the agency continues to plan to take the above action. As of July 2017, DOL had not added a public comment process to EBSA's 2017 regulatory agenda, and had no specific timeline for any next action. In an April 2018 update, DOL responded that it had convened the 2018 ERISA Advisory Council (EAC) to study lifetime income solutions in the context of QDIAs with a focus on decumulation issues and rollovers. Among other recommendations, the EAC recommended to DOL that it clarify that sponsors may default participants into different options based on participant demographics because plan populations may not be sufficiently similar for a single default to be universally appropriate. However, DOL noted that it has not added a public comment process on QDIA issues to EBSA's regulatory agenda, and had no specific timeline for any next action.

Recommendation: To better protect the retirement savings of individuals who change jobs, while retaining policies that provide 401(k) plans relief from maintaining small, inactive accounts, Congress should consider amending current law to repeal the provision that allows plans to disregard amounts attributable to rollovers when determining if a participant's plan balance is small enough to forcibly transfer it.

Agency: Congress
Status: Open

Comments: There has been no congressional action as of March 2020. Although bipartisan legislation proposed in February 2018 discussed changes to the amount of vested savings that could be forced out of a 401(k) plan, it did not address whether or not the definition of vested savings for this purpose would continue to exclude rollovers. As we reported in GAO-15-73, rollover savings are always vested when they are transferred into a plan account. If Congress looks further at amending rules related to the threshold for forced distributions, and particularly if that threshold is raised, it bears consideration whether all of an individuals' vested savings--including rollover amounts--should be included in the calculation of that threshold.

Recommendation: To ensure that individuals have access to consolidated online information about their multiple 401(k) plan accounts, the Secretary of Labor should convene a taskforce to consider establishing a national pension registry. The taskforce could include industry professionals, plan sponsor representatives, consumer representatives, and relevant federal government stakeholders, such as representatives from Social Security Administration, Pension Benefit Guaranty Corporation, and Internal Revenue Service, who could identify areas to be addressed through the regulatory process, as well as those that may require legislative action.

Agency: Department of Labor
Status: Open
Priority recommendation

Comments: As of December 2019, the Department of Labor (DOL) has not allocated staff or other resources to look at convening a task force of stakeholders to consider the need for a national pension registry. The agency previously noted the PBGC's expansion of its registry of accounts left in closed defined benefit plans to include accounts in 401(k) plans. However, PBGC's expansion included only transfers from terminating 401(k) plans, not from active plans. In February 2018, bi-partisan legislation was proposed to create a national, online registry for much of Americans' retirement savings account information, particularly those accounts which might otherwise become lost. To create the proposed "Retirement Savings Lost and Found" or something similar would require coordinated regulatory action on the part of multiple agencies, which could only benefit from the initial work and findings of a pension registry task force. The need for access to consolidated online information about multiple 401(k) plan accounts is only growing. Therefore, we continue to recommend that DOL facilitate a task force of stakeholders to identify and discuss legal and other logistical issues critical to the potential creation of a national pension registry.

Recommendation: To ensure that 401(k) plan participants have timely and adequate information to keep track of all their workplace retirement accounts, the Social Security Administration's Acting Commissioner should make information on potential vested plan benefits more accessible to individuals before retirement. For example, the agency could consolidate information on potential vested benefits, currently sent in the Potential Private Retirement Benefit Information notice, with the information provided in the Social Security earnings and benefits statement.

Agency: Social Security Administration
Status: Open

Comments: SSA disagreed with this recommendation, but did seek legal guidance to determine if it is permissible to include a general statement encouraging potential beneficiaries to pursue any external pension benefits in its benefit Statement. SSA's Office of the General Counsel determined that it would be permissible as long as it includes information required by law and the information is accurate. However, as of March 2020, SSA continues to believe that adding such information would place SSA in a position to respond to issues or questions about ERISA and private pension plans, which SSA considers to be outside its mission and about which the agency has no firsthand legal or operational knowledge. While we appreciate SSA's concern about providing information or advice about private pension plans, the agency already has a procedure for responding to such inquiries. The agency's Notice of Potential Private Retirement Benefit Information directs recipients to contact DOL with any questions about private retirement savings. We would expect that any increase in individuals asking SSA about their retirement savings, which could result from making information on vested benefits more accessible, could be handled in the same way. SSA said it also believes that the current benefit Statement adequately covers the fact that people need other savings, pensions, and investments and the agency sends notices to people who may quality for other pensions. We welcome SSA's efforts to raise awareness about the role of private retirement savings in ensuring financial security and in to notify individuals of potential benefits. However, these efforts do not supplant the need for individuals to have early and ongoing access to complete information on their potential plan benefits. In February 2018, bipartisan members of Congress introduced legislation that would make this possible. The Retirement Savings Lost and Found Act of 2018 (S. 2474) would house SSA's data on potential private retirement benefits in a secure database, which would be searchable online by participants and beneficiaries prior to retirement. Whether the legislation is enacted or not, we continue to believe that SSA should work to make its valuable data on potential vested plan benefits more accessible to individuals before retirement.

Recommendation: To prevent forced-transfer IRA balances from decreasing due to the low returns of the investment options currently permitted under the Department of Labor's safe harbor regulation, the Secretary of Labor should expand the investment alternatives available. For example, the forced-transfer IRA safe harbor regulations could be revised to include investment options currently under the qualified default investment alternatives regulation applicable to automatic enrollment, and permit forced-transfer IRA providers to change the investments for IRAs already established.

Agency: Department of Labor
Status: Open

Comments: As of April 2020, DOL had not taken action on this recommendation. In 2019, DOL noted that it was engaged more generally with a range of stakeholders on issues surrounding missing and unresponsive participants with the goal of helping plans to locate and pay retirement benefits to missing participants and beneficiaries. We continue to encourage DOL to expand the safe harbor for IRAs created for forced transfers to include investment alternatives more likely to preserve principal and even increase it over time, such as what is permitted for qualified default investment alternatives under the safe harbor for automatic enrollment.

Recommendation: To better ensure the viability and safety of manufactured housing produced in accordance with the HUD Code, the Secretary of the Department of Housing and Urban Development should develop a plan to assess how FHA financing might further promote the affordability of manufactured homes and identify the potential for better securitization of manufactured housing financing.

Agency: Department of Housing and Urban Development
Status: Open

Comments: According to HUD officials, Ginnie Mae and FHA met to discuss their manufactured housing programs and produced a white paper. Once we receive a copy of the white paper, we will determine if it addresses our recommendation.

Recommendation: To better ensure that Congress, stakeholders, and agencies have complete information about changing costs and whether a fee needs to be changed, HUD should assess the feasibility, including an analysis of the benefits and costs, of putting in place user fees for its dispute resolution and installation programs.

Agency: Department of Housing and Urban Development
Status: Open

Comments: As of March 2018, HUD stated that the Office of Manufactured Housing Programs continues to work toward fully implementing both the installation and dispute resolution programs in the default states using two new contractors for these purposes. As the implementation of these programs continues to mature, HUD stated that its Office of Manufactured Housing Programs will be monitoring program requirements and service delivery and gathering data that it can use in assessing the feasibility of putting in place user fees for these programs. We will continue to monitor HUD's progress in implementing our recommendation.

Recommendation: To better ensure that Congress, stakeholders, and agencies have complete information about changing costs and whether a fee needs to be changed, HUD should establish the goals for use of reserves of the Manufactured Housing Fees Trust Fund, and the minimum and maximum thresholds for the reserves appropriate for meeting these goals.

Agency: Department of Housing and Urban Development
Status: Open

Comments: In response to this recommendation, as of March 2018, HUD plans to consider user fee reserve best practices in evaluating any carryover balances and developing future operating budgets for its manufactured housing programs. The Office of Manufactured Housing Programs plans on reviewing best practices and determining next steps ideally by the end of Fiscal Year 2019. We continue to believe that setting clear goals for the reserve and clarifying how those reserves will be used helps ensure accountability and transparency both to Congress and users of fee-based programs. We will continue to monitor HUD's progress in implementing our 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 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

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. On April 8, 2016, DOL issued a final rule that clarified that anyone providing advice that is individualized or specifically directed to a participant pertaining to a decision to take, or refrain from taking, a distribution from the plan is a fiduciary. According to DOL, this final rule will better protect plan participants by requiring service providers who provide investment advice to act in their clients' best interest, preventing the erosion of their retirement savings by fees and substandard performance attributable to conflicts of interest. In 2018, a court ruling vacated this regulation; there is legal uncertainty surrounding the regulation and its effect regarding fiduciary duties,

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 a regulatory project on standards for brokerage windows in participant-directed individual account plans. However, in Spring 2017, DOL removed this project as an active project on its regulatory agenda. GAO believes requiring plan sponsors to ask for more than one choice of a provider may be an effective method of broadening plan sponsors' choices of managed account providers. In April 2018, DOL reported that it was not able to allocate staff time and resources to this recommendation and does not yet have a specific timeline for any next action.

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. In Spring 2017, the project on brokerage windows was removed as an active project on DOL's regulatory agenda, and the project on qualified default investment alternatives was moved to the long-term action category. In April 2018, DOL reported that it was not able to allocate staff time and resources to this recommendation and does not yet have a specific timeline for any next action.

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. In Spring 2017, the project on brokerage windows was removed as an active project on DOL's regulatory agenda, and the project on qualified default investment alternatives was moved to the long-term action category of DOL's regulatory agenda. In April 2018, DOL reported that it was not able to allocate staff time and resources to this recommendation and does not yet have a specific timeline for any next action.

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 a regulatory project on standards for brokerage windows in participant-directed individual account plans. However, in Spring 2017, DOL removed this project as an active project on its regulatory agenda. GAO continues to believe that plan sponsors would benefit from additional guidance for selecting and overseeing managed account providers. In April 2018, DOL reported that it was not able to allocate staff time and resources to this recommendation and does not yet have a specific timeline for any next action.

Recommendation: Because ROI provides insights on the productivity of a program and is one important factor in making resource allocation decisions, the Commissioner of Internal Revenue should calculate actual ROI for implemented initiatives, compare the actual ROI to projected ROI, and provide the comparison to budget decision makers for initiatives where IRS allocated resources.

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

Comments: No executive action taken as of December 2019. While IRS agreed that having actual ROI data for implemented initiatives would be useful, it did not believe it was feasible to produce such estimates, as GAO recommended in June 2014. GAO maintains that IRS should be able to provide some information on past initiatives, such as whether funds requested were used in the manner originally proposed. As of December 2016, IRS officials reported there is no timeline for full implementation. Comparing projected ROI to actual ROI can help hold managers and IRS accountable for the funding received.

Recommendation: In order to reduce the administrative costs associated with a fragmented MAI grant structure that diminishes the effective use of HHS's limited HIV/AIDS funding, and to enhance services to minority populations, HHS should consolidate disparate MAI funding streams into core HIV/AIDS funding during its budget request and allocation process.

Agency: Department of Health and Human Services
Status: Open

Comments: HHS stated that it does not support the consolidation of Minority AIDS Initiative (MAI) funds into core funding. As of January 2020, HHS had not changed its position. We will update the status of this recommendation when we receive additional information.

Recommendation: In order to reduce the administrative costs associated with a fragmented MAI grant structure that diminishes the effective use of HHS's limited HIV/AIDS funding, and to enhance services to minority populations, HHS should seek legislation to amend the Ryan White Comprehensive AIDS Resources Emergency Act of 1990 or other provisions of law, as necessary, to achieve a consolidated approach.

Agency: Department of Health and Human Services
Status: Open

Comments: HHS stated that it does not support the consolidation of Minority AIDS Initiative (MAI) funds into core funding. As of January 2020, HHS had not changed its position. We will update the status of this recommendation when we receive additional information.

Recommendation: To improve the transparency of the process for reviewing and approving spending limits for comprehensive section 1115 demonstrations, the Secretary of Health and Human Services should reconsider adjustments and costs used in setting the spending limits for the Arizona and Texas demonstrations, and make appropriate adjustments to spending limits for the remaining years of each demonstration.

Agency: Department of Health and Human Services
Status: Open

Comments: As of January 2020, the Department of Health and Human Services (HHS) has taken steps to address GAO's 2013 recommendation, but more actions are needed for GAO to consider this recommendation implemented. Beginning in May 2016, the Centers for Medicare & Medicaid Services (CMS) began implementing a new budget neutrality policy. The new policy was outlined in a Letter to State Medicaid Directors in 2018, and it addressed certain problems GAO identified regarding states' allowed methods for determining budget neutrality of their demonstrations. CMS has begun phasing in the methods established under this new policy for all states, including the two states (Arizona and Texas) for which GAO recommended adjustments. One portion of the policy--under which spending limits will be updated to reflect more recent spending data--will be implemented beginning in 2021 and will address concerns GAO identified in Arizona's spending limit once its demonstration is renewed. In January 2019, CMS officials told GAO that the agency continues to allow states to include hypothetical costs when determining demonstration spending limits, an action GAO identified as a concern in Texas' demonstration. While CMS officials provided documentation on changes the agency made in the spending limit approved for Texas' new demonstration period beginning in January 2018, GAO reviewed these changes and found that further adjustments are needed to remove additional hypothetical costs from the Texas' spending limit.

Recommendation: To help ensure that EM more effectively manages all its projects, the Secretary of Energy should direct the Senior Advisor for Environmental Management and the Director of the Office of Management, as appropriate, to provide the Office of Acquisition and Project Management with information on EM's project classification decisions to ensure that all capital asset projects have been appropriately classified and are managed in accordance with DOE Order 413.3B.

Agency: Department of Energy
Status: Open

Comments: DOE agreed with our recommendation. EM is working with DOE's Office of Project Management to draft a Cleanup Project Management Policy (expected to be completed in fall 2020) to address the Decommissioning and Deactivation phase of cleanup. This policy will become an appendix in DOE's Order 413.3B. EM officials further stated that EM plans to develop an additional Cleanup Program Management Policy that would classify the remaining types of activities not covered by the Cleanup Project Management Policy, including what EM currently classifies as operations activities. EM plans to implement this policy by the end of fiscal year 2020.

Recommendation: PPACA contained several important program integrity provisions for the 340B program, and additional steps can also ensure appropriate use of the program. Therefore, the Secretary of HHS should instruct the administrator of HRSA to finalize new, more specific guidance on the definition of a 340B patient.

Agency: Department of Health and Human Services
Status: Open

Comments: In January 2017, HRSA withdrew proposed guidance that included further specificity on the definition of 340B patient in response to the new administration's January 20 memorandum directing agencies to withdraw regulations that were pending before the Office of Management and Budget but had not yet been published in the Federal Register. In March 2018, HRSA told GAO that it continues to assess next steps with the Administration on the proposed omnibus guidance, which included the patient definition. In June 2019, HRSA reported that it is still working with the Department to determine next steps for this recommendation. In July 2020, HRSA reported that it conducted an evaluation of its audit process and other program integrity efforts and determined that guidance does not provide the agency with appropriate enforcement capability. Therefore, HRSA is not pursing new guidance under the Program at this time. The FY 2021 President's Budget includes a proposal to provide HRSA comprehensive regulatory authority.

Recommendation: PPACA contained several important program integrity provisions for the 340B program, and additional steps can also ensure appropriate use of the program. Therefore, the Secretary of HHS should instruct the administrator of HRSA to issue guidance to further specify the criteria that hospitals that are not publicly owned or operated must meet to be eligible for the 340B program.

Agency: Department of Health and Human Services
Status: Open

Comments: In January 2017, HRSA withdrew proposed guidance that included additional specificity regarding hospital eligibility in response to the new administration's January 20 memorandum directing agencies to withdraw regulations that were pending before the Office of Management and Budget but had not yet been published in the Federal Register. In March 2018, HRSA reported that it believes it is unable to implement this recommendation without additional legislative authority because the statute does not speak to the issue raised in the recommendation. HRSA also noted that the FY19 President's Budget includes a proposal to provide HRSA comprehensive regulatory authority, and that if this proposal is enacted, it could regulate on hospital eligibility. In June 2019, HRSA reported that it is still unable to implement this recommendation without additional legislative authority, though the President's FY 2020 Budget includes a proposal to provide HRSA with such authority. In July 2020, HRSA reported that it conducted an evaluation of its audit process and other program integrity efforts and determined that guidance does not provide the agency with appropriate enforcement capability. Therefore, HRSA is not pursing new guidance under the Program at this time. The FY 2021 President's Budget includes a proposal to provide HRSA comprehensive regulatory authority.

Recommendation: The Commissioner of the IRS should direct the appropriate IRS officials to revise the post orders for the service center campuses (SCC) and lockbox bank security guards to include specific procedures for timely reporting exterior lighting outages to SCC or lockbox bank facilities management. These procedures should specify (1) whom to contact to report lighting outages and (2) how to document and track lighting outages until resolved.

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

Comments: IRS's actions to address this recommendation are ongoing. IRS officials stated that during fiscal year 2020, Facilities Management and Security Services (FMSS) will update the Internal Revenue Manual to reflect the necessary guidance for service center guards and FMSS physical security specialists to know (1) whom the guards are to contact to report lighting outages and (2) how lighting outages are to be documented and tracked until resolved.

Recommendation: To ensure that the Department of Defense is taking full advantage of the cost savings that can be achieved by implementing CPC projects, the Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology and Logistics) to update applicable guidance, such as DOD Instruction 5000.67, Prevention and Mitigation of Corrosion on DOD Military Equipment and Infrastructure or the DOD Corrosion Prevention and Mitigation Strategic Plan to further define the responsibilities of the military departments' Corrosion Executives, to include more specific oversight and review of the project proposals before and during the project selection process.

Agency: Department of Defense
Status: Open

Comments: DOD has not updated DOD Instruction 5000.67 - Prevention and Mitigation of Corrosion on DOD Military Equipment and Infrastructure, the DOD Corrosion Prevention and Mitigation Strategic Plan, or other applicable guidance since the publication of our report. DOD did not concur with this recommendation at the time of our report but as of March 2019, has since decided to take action to implement it. Corrosion Office officials agree that Corrosion Executives' responsibilities in the Corrosion Prevention Project selection process have to be further defined. They plan to clearly document the selection procedures and participation of the Corrosion Executive in an update to DOD Instruction 5000.67 (Prevention and Mitigation of Corrosion on DOD Military Equipment and Infrastructure) and in the new DOD manual on corrosion. The Corrosion Office's goal is to complete this instruction update and create the new manual by the end of calendar year 2020. We will monitor the extent to which DOD implements this recommendation.

Recommendation: To strengthen accountability and transparency in FHA's management of the Fund, Congress may wish to consider clarifying (1) the definition of the Fund's capital ratio--specifically, whether the denominator of the ratio was intended to be the amortized insurance-in-force; (2) the definition of the phrase "established target subsidy rate" used in HERA; and (3) the nature and extent of information that FHA should be reporting on subsidy rates pursuant to HERA, recognizing that subsidy rates are generally only reestimated once a year under current budget processes.

Agency: Congress
Status: Open

Comments: As of October 2019, Congress had not acted on this matter for consideration.

Recommendation: To provide transparency and accountability over the payments FEMA makes to WYOs for expenses and profits, the Secretary of Homeland Security should direct the Under Secretary of Homeland Security, FEMA, to determine in advance the amounts built into the payment rates for estimated expenses and profit.

Agency: Department of Homeland Security
Status: Open

Comments: According to FEMA officials, FEMA is responding to this recommendation as part of its development of a final rule on WYO compensation practices, required by the Biggert-Waters Act. FEMA's current payment rates do not explicitly consider WYO insurers' actual expenses and profit. FEMA issued an Advance Notice of Proposed Ruling on July 8, 2019 seeking comments by September 6, 2019 regarding possible approaches to incorporating actual flood insurance expense data into the WYO payment methodology. As of February 2020, FEMA officials said that they were reviewing comments received in response to the July 2019 notice.

Recommendation: To provide transparency and accountability over the payments FEMA makes to WYOs for expenses and profits, the Secretary of Homeland Security should direct the Under Secretary of Homeland Security, FEMA, to annually analyze the amounts of actual expenses and profit in relation to the estimated amounts used in setting payment rates.

Agency: Department of Homeland Security
Status: Open
Priority recommendation

Comments: According to FEMA officials, FEMA is responding to this recommendation as part of its development of a final rule on WYO compensation practices, required by the Biggert-Waters Act. However, GAO has reported that an annual analysis of the WYO insurers' actual expenses and profit could be regularly performed in relation to FEMA's existing payment methodology. FEMA issued an Advance Notice of Proposed Ruling on July 8, 2019 seeking comments by September 6, 2019 regarding possible approaches to incorporating actual flood insurance expense data into the WYO payment methodology. As of February 2020, FEMA officials said that they would complete an annual analysis of WYO data by the end of fiscal year 2020 and that they were reviewing comments received in response to the July 2019 notice.

Recommendation: To provide transparency and accountability over the payments FEMA makes to WYOs for expenses and profits, the Secretary of Homeland Security should direct the Under Secretary of Homeland Security, FEMA, to consider the results of the analysis of payments, actual expenses, and profit in evaluating the methods for paying WYOs.

Agency: Department of Homeland Security
Status: Open

Comments: According to FEMA officials, FEMA is responding to this recommendation as part of its development of a final rule on WYO compensation practices, required by the Biggert-Waters Act. FEMA issued an Advance Notice of Proposed Ruling on July 8, 2019 seeking comments by September 6, 2019 regarding possible approaches to incorporating actual flood insurance expense data into the WYO payment methodology. As of February 2020, FEMA officials said that they were reviewing comments received in response to the July 2019 notice.

Recommendation: To increase the usefulness of the data reported by WYOs to the National Association of Insurance Commissioners (NAIC) and to institutionalize FEMA's use of such data, the Secretary of Homeland Security should direct the Under Secretary of Homeland Security, FEMA, to take actions to obtain reasonable assurance that NAIC flood insurance expense data can be considered in setting payment rates that are appropriate, including identifying affiliated company profits in reported flood insurance expenses.

Agency: Department of Homeland Security
Status: Open

Comments: According to FEMA officials, FEMA is responding to this recommendation as part of its development of a final rule on WYO compensation practices, required by the Biggert-Waters Act. FEMA can also take actions, in addition to any actions related to the rule, to develop method(s) for obtaining reasonable assurance that NAIC data is accurate and usable for setting payment rates before implementation of a new compensation methodology. FEMA issued an Advance Notice of Proposed Ruling on July 8, 2019 seeking comments by September 6, 2019 regarding possible approaches to incorporating actual flood insurance expense data into the WYO payment methodology. As of February 2020, FEMA officials said that they were reviewing comments received in response to the July 2019 notice.

Recommendation: To increase the usefulness of the data reported by WYOs to the National Association NAIC and to institutionalize FEMA's use of such data, the Secretary of Homeland Security should direct the Under Secretary of Homeland Security, FEMA, to develop comprehensive data analysis strategies to annually test the quality of flood insurance data that WYOs report to NAIC.

Agency: Department of Homeland Security
Status: Open

Comments: According to FEMA officials, FEMA is responding to this recommendation as part of its development of a final rule on WYO compensation practices, required by the Biggert-Waters Act. FEMA can also take actions, in addition to any actions related to the rule, to develop and implement data analysis strategies to annually test the quality of flood insurance data WYO insurers report to NAIC before implementation of a new compensation methodology. FEMA issued an Advance Notice of Proposed Ruling on July 8, 2019 seeking comments by September 6, 2019 regarding possible approaches to incorporating actual flood insurance expense data into the WYO payment methodology. As of February 2020, FEMA officials said that they were reviewing comments received in response to the July 2019 notice.

Recommendation: To improve the effectiveness of the federal investment in surface transportation, meet the nation's transportation needs, and ensure a sustainable commitment to transportation infrastructure, Congress may wish to consider reexamining and refocusing surface transportation programs to be responsive to these principles so that they institute tools and approaches to that emphasize the return on the federal investment.

Agency: Congress
Status: Open

Comments: As of November 2019, Congress has not yet acted on this recommendation. The Fixing America's Surface Transportation Act (FAST Act; P.L. 114-94), signed into law in December 2015, is due to be reauthorized in fiscal year 2021.

Recommendation: To improve the effectiveness of the federal investment in surface transportation, meet the nation's transportation needs, and ensure a sustainable commitment to transportation infrastructure, Congress may wish to consider reexamining and refocusing surface transportation programs to be responsive to these principles so that they address the current imbalance between federal surface transportation revenues and spending.

Agency: Congress
Status: Open

Comments: As of November 2019, Congress has not yet acted on this recommendation. The Fixing America's Surface Transportation Act (FAST Act; P.L. 114-94), signed into law in December 2015, did not address the current imbalance between federal surface transportation revenues and spending. The Act is due to be reauthorized in fiscal year 2021.

Recommendation: In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include defining the federal role and national interests in freight transportation, including economically-based and objective criteria to identify areas of national significance for freight transportation and to determine whether federal funds are required in those areas.

Agency: Department of Transportation
Status: Open

Comments: To fully implement this recommendation, DOT should complete and issue a National Freight Strategic Plan. As part of the development of the National Freight Strategic Plan, DOT should include defining the federal role in freight transportation, including economically-based and objective criteria to identify areas of national significance for freight transportation and to determine whether federal funds are required in those areas. As of February 2020, DOT had not issued the National Freight Strategic Plan and DOT officials said they were planning to issue the strategy by the end of 2020.

Recommendation: In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include establishing the roles of regional, state, and local governments, as well as the private sector.

Agency: Department of Transportation
Status: Open

Comments: To fully implement this recommendation, DOT should complete and issue a National Freight Strategic Plan. As part of the development of the National Freight Strategic Plan, DOT should include establishing the roles of regional, state, and local governments, as well as the private sector. As of February 2020, DOT had not issued the National Freight Strategic Plan and DOT officials said they were planning to issue the strategy by the end of 2020.

Recommendation: In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include using new or existing federal funding sources and mechanisms to support a targeted, cost-effective, and sustainable federal role in freight transportation.

Agency: Department of Transportation
Status: Open

Comments: To fully implement this recommendation, DOT should complete and issue a National Freight Strategic Plan. As part of the development of the National Freight Strategic Plan, DOT should include using new or existing federal funding sources and mechanisms to support a targeted, cost-effective, and sustainable federal role in freight transportation. As of February 2020, DOT had not issued the National Freight Strategic Plan and DOT officials said they were planning to issue the strategy by the end of 2020.

Recommendation: In order to put the Emergency Relief program on a sound financial footing, Congress may wish to consider the expected future demands on the program and reexamine the appropriate level and sources of funding--including whether to increase the $100 million annual authorized funding and whether the Highway Trust Fund, the General Fund, or some combination would allow the program to accomplish its purpose in a fiscally sustainable manner.

Agency: Congress
Status: Open

Comments: As of November 2019, Congress has not yet taken action on this recommendation. The Emergency Relief Program is due to be reauthorized in 2020.

Recommendation: Congress may also wish to consider tightening the eligibility criteria for Emergency Relief funding, either through amending the purpose of the Emergency Relief program, or by directing FHWA to revise its program regulations. Revised criteria could include limitations on the use of Emergency Relief funds to fully finance projects with scope and costs that have grown as a result of environmental and community concerns.

Agency: Congress
Status: Open

Comments: As of November 2019, Congress has not yet taken action on this recommendation. The Emergency Relief Program is due to be reauthorized in 2020.