Summary
The Department of Veterans Affairs (VA) spends nearly $1 billion yearly to support its information technology (IT) needs; yet it has encountered persistent challenges in managing IT projects. In October 2005, VA initiated a realignment to centralize its IT management program that it plans to complete by July 2008. GAO was requested to determine (1) whether the department's realignment plan includes critical factors for successful implementation and (2) how the centralized management approach is to ensure that the chief information officer (CIO) is accountable for the department's entire IT budget. To do so, GAO identified critical success factors, analyzed realignment and budget documents, and held discussions with VA officials.
VA's plans for realigning the management of its IT program include elements of several factors that GAO identified as critical to the department's implementation of a centralized structure; additional departmental actions could increase assurance that the realignment will be completed successfully. Since undertaking the realignment, VA has concentrated its efforts on transferring approximately 6,000 staff to the CIO's authority and on creating a new organizational structure. It has also taken certain actions to establish an IT governance plan, identify workforce management responsibilities, and increase communication about the realignment with staff. However, it has not yet created a knowledge and skills inventory to help determine proper roles for all employees in the new organization, established governance boards to manage resources, or dedicated an implementation team to manage change and track the progress of the realignment with performance metrics. As a result, the department risks jeopardizing the success of its efforts and may not realize the long-term benefits of the realignment. Within the new structure, the CIO is to have responsibility for ensuring that there are fiscal controls over the IT appropriation and for overseeing capital planning processes, budget execution, and financial management programs. According to the department, it plans to establish the CIO's control by (1) designating organizations with specific roles and responsibilities for controlling the budget to report directly to the CIO; (2) implementing a governance structure that assigns budget oversight responsibilities to specific governance boards; and (3) developing and implementing IT portfolio management and financial management processes. While these measures show the potential for establishing control of the budget, VA has not yet fully implemented them or committed to a time frame for doing so. Thus, their effectiveness in ensuring the CIO's accountability for the budget has not yet been established.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change
from "In process" to "Implemented" or "Not implemented" based on our follow up work.
Director:
Team:
Phone:
Valerie C. Melvin
Government Accountability Office: Information Technology
(202) 512-6304
Recommendations for Executive Action
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to develop detailed IT governance process descriptions that address how the department will manage IT resources within the centralized organization.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to establish a knowledge and skills inventory to determine what skills are available in order to decide the proper roles for all employees transferred to the new organization.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to assess personnel requirements under the centralized management model, including career paths and appropriate training requirements.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to fully staff all offices necessary for supporting the new organizational structure.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to dedicate an implementation team responsible for change management processes throughout the transformation to a centralized IT structure.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that VA's IT realignment is successfully accomplished, the Secretary of Veterans Affairs should direct the Chief Information Officer to expedite the development of performance metrics to track the progress of the realignment.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that centralized control of the IT budget is established, the Secretary of Veterans Affairs should direct the Chief Information Officer to establish milestones to permanently staff the deputy assistant secretary position for IT Enterprise Strategy, Policy, and Programs and the deputy assistant secretary position for IT Resource Management.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that centralized control of the IT budget is established, the Secretary of Veterans Affairs should direct the Chief Information Officer to commit to a date for establishing the Business Needs and Investment Board and the IT Leadership Board.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To ensure that centralized control of the IT budget is established, the Secretary of Veterans Affairs should direct the Chief Information Officer to establish a schedule for the implementation of the IT portfolio management and financial management processes.
Agency Affected: Department of Veterans Affairs
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
