Skip Navigation

The Inspector General's Statement of Management Challenges

 

We are providing the management challenges for the Department of Commerce in accordance with the provisions of the Reports Consolidation Act of 2000 (PL 106-531). Detailed information about our work is available on our website at: http://www.oig.doc.gov/

Inspector General
Johnnie E. Frazier

 

Challenge: Strengthen Department-Wide Information Security

Safeguarding the numerous Commerce computer systems holding nationally significant data is one of the Department’s most serious challenges. OIG’s evaluations under the Federal Information Security Management Act (FISMA) have revealed significant problems in the certification and accreditation (C&A) of some of Commerce’s national and mission critical systems. Commerce officials have begun an intense effort to improve both C&A and policy and guidance for computer incident response. We are seeing progress, and based on the work being done to address concerns, believe the Department is on the way to developing an effective information security program. However, much remains to be done, and a Commerce-wide view of reported IT vulnerabilities should be employed.

Challenge: Effectively Manage Departmental and Bureau Acquisition Processes

Commerce spends nearly $2 billion per year procuring goods and services. The Department must pay careful attention to acquisition policies and procedures to make sure the public dollars being spent get the best value. Indeed, procurement officials at both the Department and bureau levels acknowledge that acquisition planning and management need greater emphasis.

Effective acquisition management is particularly critical in light of the upcoming 2010 decennial. Our recent review of the Census Bureau’s planning for the acquisition of mobile computing devices to automate field data collection revealed substantial problems with scheduling, planning, and project management. Considering the enormity of the decennial census undertaking, it is essential that the Department adequately control and oversee the acquisition process.

Challenge: Enhance USPTO’s Ability to Manage and Operate its Own Processes

As USPTO continues its transformation to a performance-based organization, it must effectively manage its budget, procurements, and personnel decisions. OIG has assessed USPTO’s patent examiner production goals, performance appraisal plans and awards, and the move to its new headquarters complex. Our work has uncovered a number of problematic issues, particularly in the area of human resource management, such as questionable hiring practices and failure to properly adhere to merit system principles. USPTO has been receptive to our recommendations and has implemented significant changes to address issues raised by our reviews.

Challenge: Control the Cost and Improve the Accuracy of Census 2010

At an estimated cost of more than $11 billion, the decennial census will be one of the most costly and critical operations the Department has ever undertaken. There are two field tests and a dress rehearsal to be managed in addition to the actual census, so the Census Bureau and the Department face some formidable challenges in both controlling costs and improving the accuracy of the data collected.

OIG has conducted a review of the bureau’s progress in planning and managing the automation of field data collection activities for the 2008 dress rehearsal and the 2010 decennial. Although Census estimates that automation will reduce the decennial’s costs by as much as $900 million, we raised concerns regarding the acquisition of the automation, and we made several recommendations for Census to improve management of the project. In addition, we will assess the 2006 Census test to follow up on issues we identified in the 2004 test, such as problems with data transmissions, technical field support, and limitations of handheld computers. We will also evaluate Census’ progress in improving the accuracy of address lists and maps and closely examine its budget and spending plan as part of our review of the 2006 test.

Challenge: Monitor the Effectiveness of NOAA’s Stewardship of Ocean and Living Marine Resources

The National Oceanic and Atmospheric Administration’s (NOAA’s) responsibilities to protect the nation’s coastal and ocean resources are vast and likely to expand in the future. Our recent review of the National Marine Fisheries Service’s biological opinion for the California Central Valley Project, conducted at the request of 19 members of Congress, revealed a number of serious problems, including the agency’s failure to (1) follow its established process for issuing the opinion, (2) obtain a required legal review, and (3) ensure the quality of the opinion. OIG made several recommendations for improvement, and NOAA has promised to reevaluate its policies and directives for issuing biological opinions in the next 6 months. NOAA has already initiated some changes in response to our review.

Challenge: Promote Fair Competition in International Trade

As the primary agency charged with promoting trade, opening overseas markets for American companies, and protecting U.S. industry from unfair import competition, the International Trade Administration (ITA) plays a key role in the federal government’s attempts to make sure the field is level for the U.S. business community.

OIG will continue to assess the Department’s efforts to increase U.S. market opportunities and overcome trade barriers in difficult foreign markets. Our work inspecting Commercial Service post activities is ongoing, with an inspection of ITA’s Commercial Service post in China under way. ITA reports it is addressing issues identified in our recent reviews of posts.

Challenge: Enhance Export Controls for Dual-Use Commodities

Charged with advancing U.S. national and economic security interests through export controls, the Department’s Bureau of Industry and Security oversees the federal government’s export licensing and enforcement system. Controlling the export of technologies and materials that have both civilian and military applications to prevent their acquisition by hostile nations and terrorist groups that threaten global security is a primary goal of the system.

OIG has completed six reviews of export controls with the Inspectors General of Defense, Energy, and State as directed by the National Defense Authorization Act (NDAA) for FY 2000. To meet NDAA’s FY 2005 requirement, we assessed BIS’ licensing process for chemical and biological commodities to determine whether the process was timely and in compliance with statutory and regulatory requirements. We also examined the status of recommendations from prior reviews and concluded that, while some recommendations have not been resolved, Commerce has made progress on a number of them.

Challenge: Enhance Emergency Preparedness, Safety, and Security of Commerce Facilities and Personnel

The world changed forever after Sept. 11, 2001, making the safeguarding of Commerce’s personnel and property one of the greatest challenge that its managers now have to meet. OIG first identified the Department’s emergency preparedness weaknesses in a 2002 review that revealed some serious security vulnerabilities.

Our most recent follow-up review of Commerce’s emergency preparedness found that, while the Department has made significant progress, additional improvements are needed in several areas including the risk assessment process, development and oversight of occupant emergency plans, and security for critical assets.

Challenge: Continue to Strengthen Financial Management Controls and Systems

In recent years, the Department has improved its financial management, as evidenced by achieving and maintaining unqualified opinions on its consolidated financial statements, implementing Commerce Business Systems and substantially complying with the Federal Financial Management Improvement Act.

Under the revised OMB Circular A-123, agencies must assess internal controls over financial reporting, document those controls and the assessment process, and provide an assurance statement on the effectiveness of internal control over financial reporting beginning in FY 2006. Reliable financial reporting and effective, efficient program operations depend on strong internal controls. OIG will continue to monitor a range of financial management issues, including Commerce’s efforts to implement the new A-123 requirements, improve internal controls, and achieve other operating efficiencies.

Challenge: Continue to Improve the Department’s Strategic Planning and Performance Measurement in Accordance with the Government Performance and Results Act

Collecting and reporting accurate performance data required by the Government Performance and Reporting Act (GPRA) is a challenge for most federal agencies, and the Department of Commerce is no exception. OIG audits of bureau performance measure reporting have repeatedly identified the need to ensure that individuals who collect and use performance data really understand what is being measured. Prior audits also have repeatedly shown a need for improved management controls over performance data, particularly where verification and validation of information is required. The bureaus we have audited have made many improvements in response to the issues raised, but the Department should remain vigilant in ensuring that the collection and reporting of performance data be thorough and, above all, accurate.

 


Previous Page | Next Page