Hearing Of The Subcommittee On Management, Investigations, And Oversight Of The House Committee On Homeland Security- "Creating ‘One DHS' Part I: Standardizing Department Of Homeland Security Financial Management"

Statement

"The Department of Homeland Security has one of the largest budgets in the federal government.
Each year approximately $40 billion in appropriated funds flows in and out of the Department.
Among other things, these funds are used to pay over 200,000 employees, provide disaster aid to
states and local governments and purchase the equipment used by those protecting our borders.
We owe it to taxpayers to ensure that these funds are appropriately used, fully accounted for, and
auditable.
Unfortunately, this is not the case at the Department of Homeland Security.
Six years into several attempts at integrating its financial management systems, and millions of
dollars later, the Department is still using thirteen different systems that cannot talk to each other, that
do not adequately reflect where funds are located and is unable to let the Department of Treasury
know, at any given moment, how much money is left in the Department of Homeland Security budget.
Fortunately, the Department knows that the way out of this conundrum is to integrate its systems.
Unfortunately, I am concerned that it may be heading down the same path it took when previous
attempts to integrate the Department's financial management systems failed.
There is a saying that goes "if you keep doing the same thing, you will keep getting the same result."
Yet, once again, the Department is relying on contractors to do the work that should be performed by
the government.
In this instance, the Department intends to allow a contractor to define what the Department needs,
then design what it will receive, then map out the strategy for implementation.
The fact that the Department released a Request for Proposal before first defining its financial
management strategy is troublesome, and sounds like putting the cart before the horse.
Past lessons have taught us that over-relying on contractors can lead to lack of proper oversight,
performance problems and skyrocketing costs.
To that end, I would urge the Department, in an effort to reduce costs, to develop its own strategy for
integrating its financial management systems and to establish a more solid road map.
Moreover, I am greatly concerned with the findings that the GAO will be presenting us with today.
Although the Department has received much guidance from the GAO on the steps that must be taken
to successfully integrate its financial management systems it appears as if this advice has falling by
the wayside.
I look forward to listening to our witnesses' testimony today regarding what steps are being taken to
correct existing deficiencies and whether those steps are enough to prevent an unacceptable
outcome."

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