Transportation Worker Identification Credential:

Internal Control Weaknesses Need to Be Corrected to Help Achieve Security Objectives

GAO-11-657: Published: May 10, 2011. Publicly Released: May 10, 2011.

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Within the Department of Homeland Security (DHS), the Transportation Security Administration (TSA) and the U.S. Coast Guard manage the Transportation Worker Identification Credential (TWIC) program, which requires maritime workers to complete background checks and obtain a biometric identification card to gain unescorted access to secure areas of regulated maritime facilities. As requested, GAO evaluated the extent to which (1) TWIC processes for enrollment, background checking, and use are designed to provide reasonable assurance that unescorted access to these facilities is limited to qualified individuals; and (2) the effectiveness of TWIC has been assessed. GAO reviewed program documentation, such as the concept of operations, and conducted site visits to four TWIC centers, conducted covert tests at several selected U.S. ports chosen for their size in terms of cargo volume, and interviewed agency officials. The results of these visits and tests are not generalizable but provide insights and perspective about the TWIC program. This is a public version of a sensitive report. Information DHS deemed sensitive has been redacted.

Internal control weaknesses governing the enrollment, background checking, and use of TWIC potentially limit the program's ability to provide reasonable assurance that access to secure areas of Maritime Transportation Security Act (MTSA)-regulated facilities is restricted to qualified individuals. To meet the stated program purpose, TSA designed TWIC program processes to facilitate the issuance of TWICs to maritime workers. However, TSA did not assess the internal controls designed and in place to determine whether they provided reasonable assurance that the program could meet defined mission needs for limiting access to only qualified individuals. GAO found that internal controls in the enrollment and background checking processes are not designed to provide reasonable assurance that (1) only qualified individuals can acquire TWICs; (2) adjudicators follow a process with clear criteria for applying discretionary authority when applicants are found to have extensive criminal convictions; or (3) once issued a TWIC, TWIC-holders have maintained their eligibility. Further, internal control weaknesses in TWIC enrollment, background checking, and use could have contributed to the breach of MTSA-regulated facilities during covert tests conducted by GAO's investigators. During covert tests of TWIC use at several selected ports, GAO's investigators were successful in accessing ports using counterfeit TWICs, authentic TWICs acquired through fraudulent means, and false business cases (i.e., reasons for requesting access). Conducting a control assessment of the TWIC program's processes to address existing weaknesses could better position DHS to achieve its objectives in controlling unescorted access to the secure areas of MTSA-regulated facilities and vessels. DHS has not assessed the TWIC program's effectiveness at enhancing security or reducing risk for MTSA-regulated facilities and vessels. Further, DHS has not demonstrated that TWIC, as currently implemented and planned, is more effective than prior approaches used to limit access to ports and facilities, such as using facility specific identity credentials with business cases. Conducting an effectiveness assessment that further identifies and assesses TWIC program security risks and benefits could better position DHS and policymakers to determine the impact of TWIC on enhancing maritime security. Further, DHS did not conduct a risk-informed cost-benefit analysis that considered existing security risks, and it has not yet completed a regulatory analysis for the upcoming rule on using TWIC with card readers. Conducting a regulatory analysis using the information from the internal control and effectiveness assessments as the basis for evaluating the costs, benefits, security risks, and corrective actions needed to implement the TWIC program, could help DHS ensure that the TWIC program is more effective and cost-efficient than existing measures or alternatives at enhancing maritime security. Among other things, GAO recommends that DHS assess TWIC program internal controls to identify needed corrective actions, assess TWIC's effectiveness, and use the information to identify effective and cost-efficient methods for meeting program objectives. DHS concurred with all of the recommendations.

Recommendations for Executive Action

  1. Status: Open

    Comments: We reported that internal control weaknesses governing the enrollment, background checking, and use of TWIC potentially limit the program's ability to provide reasonable assurance that access to secure areas of MTSA-regulated facilities is restricted to qualified individuals. We further reported that TSA did not assess the internal controls designed and in place to determine whether they provided reasonable assurance that the program could meet defined mission needs for limiting access to only qualified individuals, and that internal control weaknesses in TWIC enrollment, background checking, and use could have contributed to the breach of selected MTSA-regulated facilities during covert tests conducted by our investigators. We recommended that DHS perform an internal control assessment of the TWIC program by (1) analyzing existing controls, (2) identifying related weaknesses and risks, and (3) determining cost-effective actions needed to correct or compensate for those weaknesses so that reasonable assurance of meeting TWIC program objectives can be achieved. In April 2013, DHS reported that it had taken a number of steps to address our recommendations. For example, it had refreshed and reissued fraudulent document detection training to enrollment personnel; created a mechanism for enrollment personnel to send detailed information of suspected fraud to adjudication personnel; benchmarked TWIC enrollment processes with passport enrollment processes; and defined guidance for adjudicators on the application of discretionary authority. As we reported in May 2013, to determine if the internal control weaknesses identified in our May 2011 report still exist, we conducted limited covert testing in late 2012. Our investigators again acquired an authentic TWIC through fraudulent means and were able to use this card and counterfeit TWIC cards to access areas of ports or port facilities requiring a TWIC for entry at four ports. In February 2014, TSA reported that it, in coordination with Coast Guard and DHS subject matter experts, had established an Executive Steering Committee to address recommendations from the May 2011 report on the TWIC program's internal controls (GAO-11-657). GAO recommended that the internal control assessment be the basis of the effectiveness assessment. In response, the Executive Steering Committee developed an internal control action plan that lists TWIC program control issues GAO identified, along with actions that TSA and the Coast Guard would or would not take to address them. However, based on our review of the internal control action plan and associated documents, and further discussing with TSA officials the methodology used to arrive at the internal control action plan, we determined that the internal control assessment we recommended has not been implemented. Specifically, there is no evidence of a detailed mapping of each policy and process in the program, their interrelationships, and clear linkage to show how actions in one step may enhance or reduce the effectiveness of the TWIC program achieving its stated mission needs. DHS has not addressed these shortfalls in addressing our internal control assessment recommendation. In June of 2016, TSA reported that it planned to undertake the recommended internal control review over the coming year. As of October 2016, TSA has worked on developing a Statement of Work and contracting vehicle for having the internal control assessment completed. For the reasons noted above, this recommendation remains open.

    Recommendation: To identify effective and cost-efficient methods for meeting TWIC program objectives, and assist in determining whether the benefits of continuing to implement and operate the TWIC program in its present form and planned use with readers surpass the costs, the Secretary of Homeland Security should perform an internal control assessment of the TWIC program by (1) analyzing existing controls, (2) identifying related weaknesses and risks, and (3) determining cost-effective actions needed to correct or compensate for those weaknesses so that reasonable assurance of meeting TWIC program objectives can be achieved. This assessment should consider weaknesses we identified in this report among other things, and include: (1) strengthening the TWIC program's controls for preventing and detecting identity fraud, such as requiring certain biographic information from applicants and confirming the information to the extent needed to positively identify the individual, or implementing alternative mechanisms to positively identify individuals; (2) defining the term extensive criminal history for use in the adjudication process and ensuring that adjudicators follow a clearly defined and consistently applied process, with clear criteria, in considering the approval or denial of a TWIC for individuals with extensive criminal convictions not defined as permanent or interim disqualifying offenses; and (3) identifying mechanisms for detecting whether TWIC holders continue to meet TWIC disqualifying criminal offense and immigration-related eligibility requirements after TWIC issuance to prevent unqualified individuals from retaining and using authentic TWICs.

    Agency Affected: Department of Homeland Security

  2. Status: Open

    Priority recommendation

    Comments: We reported that DHS had not assessed the program's effectiveness at enhancing security. We recommended that DHS conduct an effectiveness assessment that includes addressing internal control weaknesses and, at a minimum, evaluates whether use of TWIC in its present form and planned use with readers would enhance the posture of security beyond efforts already in place given costs and program risks. In March 2012, DHS reported that it agreed that the results and progress of the internal control actions should be used to further evaluate the effectiveness of the TWIC program. They further noted that as the different long term actions progress, DHS will develop specific plans to address this action. In May 2013 (see GAO-13-198), we reported that DHS had not addressed this recommendation. On January 17, 2014, the explanatory statement accompanying the Consolidated Appropriations Act, 2014, directed DHS to complete the assessment that we recommended within 90 days after enactment (April 17, 2014). In February 2014, TSA reported that it, in coordination with Coast Guard and DHS subject matter experts, had established an Executive Steering Committee to address recommendations from the May 2011 report on the TWIC program's internal controls (GAO-11-657). GAO recommended that the internal control assessment be the basis of the effectiveness assessment. In response, the Executive Steering Committee developed an internal control action plan that lists TWIC program control issues GAO identified, along with actions that TSA and the Coast Guard would or would not take to address them. However, based on our review of the internal control action plan and associated documents, and further discussing with TSA officials the methodology used to arrive at the internal control action plan, we determined that the internal control assessment we recommended has not been implemented. Specifically, there is no evidence of a detailed mapping of each policy and process in the program, their interrelationships, and clear linkage to show how actions in one step may enhance or reduce the effectiveness of the TWIC program achieving its stated mission needs. As of October 2016, the internal control assessment we recommended as the basis for initiating the effectiveness assessment had not been completed. However, on January 15, 2016, Coast Guard reported that it had completed its effectiveness assessment. Specifically, DHS completed an effectiveness assessment titled "Security Assessment of the Transportation Worker Identification Credential and Readers." However, the effectiveness assessment did not substantively address the risk concerns identified in our report. For example, the effectiveness assessment lacked the internal control assessment we deem to be the critical first step for fully understanding the TWIC program's controls, costs, and risks. Further, while the effectiveness assessment presented a comparison of alternative credentialing approaches, the assessment did not fully consider, as discussed in our 2011 and 2013 reports, an approach wherein federal security threat assessments could be leveraged in concert with site-specific credentials. The analysis did consider the benefits of updating the TWIC credential to new federal credentialing standards. However, absent from the analysis is a risk-informed basis for disallowing site-specific credentials. While TWIC credentials are developed based on standards aligned with those used by federal entities, each federal entity continues to use site-specific credentials that have varying appearances, rather than a single credential for granting access to all federal entities. This is important, especially because Coast Guard's risk assessment does not include an evaluation of the security benefits and shortfalls that a single credential used nation-wide provide. Absent effectiveness assessment that meets the intent of our recommendation, this recommendation remains open.

    Recommendation: To identify effective and cost-efficient methods for meeting TWIC program objectives, and assist in determining whether the benefits of continuing to implement and operate the TWIC program in its present form and planned use with readers surpass the costs, the Secretary of Homeland Security should conduct an effectiveness assessment that includes addressing internal control weaknesses and, at a minimum, evaluates whether use of TWIC in its present form and planned use with readers would enhance the posture of security beyond efforts already in place given costs and program risks.

    Agency Affected: Department of Homeland Security

  3. Status: Open

    Comments: We reported that prior to issuing the regulation on implementing the use of TWIC as a flashpass, DHS conducted a regulatory analysis, which asserted that TWIC would increase security. The analysis included an evaluation of the costs and benefits related to implementing TWIC. We further reported that as a proposed regulation on the use of TWIC with biometric card readers is under development, DHS is to issue a new regulatory analysis. Conducting a regulatory analysis using the information from the internal control and effectiveness assessments as the basis for evaluating the costs, benefits, security risks, and needed corrective actions could better inform and enhance the reliability of the new regulatory analysis. Moreover, these actions could help DHS identify and assess the full costs and benefits of implementing the TWIC program in a manner that will meet stated mission needs and mitigate existing security risks, and help ensure that the TWIC program is more effective and cost-efficient than existing measures or alternatives at enhancing maritime security. We therefore recommended that DHS use the information from the internal control and effectiveness assessments we recommended as the basis for evaluating the costs, benefits, security risks, and corrective actions needed to implement the TWIC program in a manner that will meet stated mission needs and mitigate existing security risks as part of conducting the regulatory analysis on implementing a new regulation on the use of TWIC with biometric card readers. In March 2012, DHS reported that upon completion of the internal control and effectiveness assessments, DHS will evaluate the results to determine any subsequent actions, and that any applicable data or risks will be communicated to the Coast Guard for consideration during their regulatory analysis. However, DHS has not implemented the internal control assessment we recommended, which is to be the basis for the effectiveness assessment and addressing this recommendation. Further, the January 15, 2016 effectiveness assessment titled "Security Assessment of the Transportation Worker Identification Credential and Readers" did not substantively address the risk concerns identified in our report. Given shortfalls that remain in addressing our internal control assessment and effectiveness assessment recommendations, this recommendation remains open pending DHS taking corrective actions. As of October 2016, no further action has been taken.

    Recommendation: To identify effective and cost-efficient methods for meeting TWIC program objectives, and assist in determining whether the benefits of continuing to implement and operate the TWIC program in its present form and planned use with readers surpass the costs, the Secretary of Homeland Security should use the information from the internal control and effectiveness assessments as the basis for evaluating the costs, benefits, security risks, and corrective actions needed to implement the TWIC program in a manner that will meet stated mission needs and mitigate existing security risks as part of conducting the regulatory analysis on implementing a new regulation on the use of TWIC with biometric card readers.

    Agency Affected: Department of Homeland Security

  4. Status: Closed - Not Implemented

    Comments: We found that Coast Guard's approach for monitoring and enforcing TWIC compliance could be improved by enhancing its collection and assessment of maritime security information. We reported that the Coast Guard uses its Marine Information for Safety and Law Enforcement (MISLE) database to provide the capability to collect, maintain, and retrieve information necessary for the administration, management, and documentation of Coast Guard Activities. However, because of limitations in the MISLE system design, the processes involved in the collection, cataloging, and querying of information cannot be relied upon to produce the management information needed to assess trends in compliance with the TWIC program or associated vulnerabilities. For instance, when inspectors document a TWIC card verification check, the system is set up to record the number of TWICs reviewed for different types of workers and whether the TWIC holders are compliant or noncompliant. However, other details on TWIC-related deficiencies, such as failure to ensure that all facility personnel with security duties are familiar with all relevant aspects of the TWIC program and how to carry them out, are not recorded in the system in a form that allows inspectors or other Coast Guard officials to easily and systematically identify that a deficiency was related to TWIC. Further, according to Coast Guard officials, local Coast Guard inspectors may not always or consistently record all inspection attempts. Consequently, while Coast Guard officials told us that inspectors verify TWICs as part of all security inspections, the Coast Guard could not reliably provide the number of TWICs checked during each inspection. We therefore reported that as a result of limitations in MISLE design and the collection and recording of inspection data, it will be difficult for the Coast Guard to identify trends nationwide in TWIC-related compliance, such as whether particular types of facilities or a particular region of the country have greater levels of noncompliance, on an ongoing basis. We therefore recommended that the Coast Guard design effective methods for collecting, cataloging, and querying TWIC-related compliance issues to provide the Coast Guard with the enforcement information needed to assess trends in compliance with the TWIC program and identify associated vulnerabilities. As of May 2016, Coast Guard reported that it has made updates to its MISLE system to address our recommendation. For example, Coast Guard can now query TWIC compliance reports by district. Coast Guard officials also report that they have requested additional adjustments to the system in order to better query and produce reports from its MISLE system but can provide no timetable for completion. Coast Guard officials, however, report that they will not be implementing certain reporting features highlighted in our report, such as the ability to query TWIC-related compliance issues that occur by the type of facility. Specifically, Coast Guard officials reported that they see no value in building a capability to sort TWIC data by the type of facility. They further reported that data showing that a given type of facility had a given rate of TWIC compliance would have no significance as it would represent many different companies in different locations. Given that impending TWIC regulation on the use of TWIC with readers is to be applied based on facility type, we continue to believe that such information would help inform the Coast Guard's implementation of TWIC requirements provide for a better understanding of its security-related enhancements. Given that this recommendation was issued 5 years ago and it remains incomplete with no timetable for completion, we are closing the recommendation as not implemented.

    Recommendation: To identify effective and cost-efficient methods for meeting TWIC program objectives, and assist in determining whether the benefits of continuing to implement and operate the TWIC program in its present form and planned use with readers surpass the costs, the Secretary of Homeland Security should direct the Commandant of the Coast Guard to design effective methods for collecting, cataloguing, and querying TWIC-related compliance issues to provide the Coast Guard with the enforcement information needed to assess trends in compliance with the TWIC program and identify associated vulnerabilities.

    Agency Affected: Department of Homeland Security

 

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