DHS still struggling with management

The Homeland Security inspector general's annual compilation of major management challenges at the department touches on just about all its responsibilities: acquisition management, information technology management, emergency management, grants management, financial management, infrastructure protection, border security, transportation security, and trade operations and security.

Those challenges haven't changed much from year to year, so in 2007, the IG began including score cards to distinguish progress in selected areas. The 2009 assessment shows moderate progress, meaning many of the critical success factors have been achieved, in three areas: acquisition, information technology and emergency management. Only modest progress was found in grants management and financial management. In no areas did the IG find substantial progress.

Financial management continues to be one of Homeland Security's weakest areas, and the score card breakdown shows limited progress in many operations, especially those related to internal controls. As in previous years, auditors were unable to render an opinion on the department's financial statements because agency officials couldn't provide sufficient evidence to support their assertions. Material weaknesses were so pervasive that auditors couldn't verify the sufficiency of internal controls.

Among the specific problems affecting financial management noted in the report:

• The department lacks enough accounting and finance personnel with core technical expertise.
• Accounting and financial reporting infrastructure, including policies, procedures, processes and internal controls, have not received investment commensurate with the department's rapid growth in new programs and operations.
• Field personnel don't always share responsibility for, or are not held accountable for, matters that affect financial management.
• The financial information technology infrastructure is aging and has limited functionality, hindering the department's ability to make improvements.

Six years after DHS was created in the most extensive reorganization of government agencies, the department finally is "moving beyond operating an organization in transition," the report said. "However, while much progress has been done, the department still has much to do to establish a cohesive, efficient and effective organization."