GAO suggests fund to assist agencies with management reforms

Congress should set aside a pool of money to assist federal agencies with reorganizations and other management reforms, according to recent advice from the General Accounting Office.

Agencies could apply for funds from the governmentwide fund by submitting business cases explaining how proposed overhauls would help them operate more efficiently and achieve performance goals, GAO recommended. The watchdog agency last week published a report summarizing suggestions (GAO-04-343SP) offered by Comptroller General David Walker, government officials, academics and private sector and nonprofit leaders at a federal management forum in November 2003.

GAO officials have previously recommended that lawmakers make money available to agencies reforming their personnel systems. In June 2003 testimony before the Senate Governmental Affairs Committee, Walker said Congress should set up a fund for helping agencies develop and implement sound pay-for-performance systems. Money from such a fund could apply toward a broader variety of well developed management reforms, the latest GAO report said.

Agencies also could benefit from switching to a biennial budget process, GAO said. By completing a budget every two years, Congress would allow agencies to spend more time improving financial management and analyzing program performance. Managers also could make better decisions if they have a firm picture of their budgets two years into the future.

But lawmakers would have to design a biennial budget process that ensures that they still exercise adequate oversight over agencies, GAO cautioned. Congress has toyed with the idea of a biennial budget for years. Earlier this month a group of House Republicans introduced a plan for fiscal restraint that included moving to a two-year budget cycle. The plan met some resistance from appropriators.

In addition to reconsidering budgeting, agencies should employ chief operating officers or equivalent officials to devote sustained attention to management issues, GAO said. These officials could ensure that agency managers coordinate on reform projects. "In the federal government, the frequent turnover of the political leadership has often made it difficult to obtain the sustained and inspired attention required to make needed changes," the report noted.

GAO praised the Centers for Disease Control and Prevention for assigning a chief operating officer position to oversee financial management and information technology. The watchdog agency also has applauded the Federal Aviation Administration for hiring its first chief operating officer in August to help plan and carry out a major reorganization.