Treasury IG pinpoints major management challenges

Information technology investment and financial management continue to rank high on the Treasury Department's list of management challenges, according to a new report by the agency's inspector general. The report on Treasury's management challenges for 2001 was written in response to an October request from the Senate Budget and Governmental Affairs committees and the House Budget and Government Reform committees. High-risk areas identified by the inspector general included information security, IT investment management, compliance with the 1993 Government Performance and Results Act and financial management. These areas also appeared on last year's list. Only one new challenge, managing the safety and soundness of the banking industry, was added to this year's list. "While Treasury has made substantive progress to address these challenges, we are not able to remove any from our list because each continues to present a serious risk," said Treasury IG Jeffrey Rush Jr. in a letter to House Majority Leader Dick Armey, R-Texas. IG audits uncovered significant weaknesses in computer security systems operated by the Customs Service and the Financial Management Service. In the coming year, Customs needs to improve computer safeguards and reconsider the organization of its systems security structure, the report said. The IG will also continue to monitor Customs' $2 billion, 10-15 year modernization project. Customs' new computer system, the Automated Commercial Environment, will replace the agency's outdated Automated Commercial System (ACS), upgrading computer systems at ports and offices across the nation. ACS experiences frequent brownouts that can delay trade at over 300 ports of entry operated by Customs. Development and funding problems have dogged the new computer system from the start. The fiscal 2001 Treasury-Postal appropriations bill contained $130 million for the new system-$80 million less than Customs requested. Treasury is also having trouble producing reliable performance data. Such data are used to report on how well the agency and its departments are meeting their missions under the 1993 Results Act. Collecting and managing reliable data will be another goal for 2001, the report said.
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.