FY 2019 Government Shutdown: Selected Agencies Could Improve Contingency Planning for Potential Shutdown Scenarios and Strengthen Some Internal Controls
GAO-20-377
Published: Jun 01, 2020. Publicly Released: Jul 01, 2020.
Fast Facts
Generally, federal agencies are only allowed to spend the money that Congress has given them. During a government shutdown, agencies may not have funds—raising questions about whether work may continue. How do agencies plan for this?
We reviewed 4 agencies’ contingency plans and operations during FY 2019’s partial shutdown. The plans generally followed federal guidance, but didn’t cover prolonged shutdown scenarios.
Of the 4:
2 documented shutdown processes
3 tracked which employees worked
None had computer network controls to prevent logging on
Our recommendations are to help improve these agencies’ shutdown plans and operations.
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Highlights
What GAO Found
The Office of Management and Budget (OMB) issues shutdown guidance for agencies in Circular A-11. Of four selected agency components, three—U.S. Customs and Border Protection (CBP), the Internal Revenue Service (IRS), and the International Trade Administration (ITA)—operated in fiscal year (FY) 2019 under contingency plans that included most of the key information elements specified in Circular A-11 . The plan that the fourth one—Office of the U.S. Trade Representative (USTR)—operated under, authored by the Executive Office of the President, did not include a majority of the key information elements.
OMB guidance instructs agencies to have plans in place for both short and prolonged—longer than 5 days—shutdowns. None of the four selected agencies' FY 2019 contingency plans fully addressed anticipated changes in the event of a prolonged shutdown. GAO found that IRS, ITA, and USTR internally discussed and planned for anticipated operational changes in the event of a prolonged FY 2019 shutdown. CBP officials said they only focused on short-term operational needs. Having a comprehensive plan for a potential prolonged shutdown would help provide clearer workforce expectations during any future shutdowns.
Having sufficient internal controls, such as documented policies and procedures, in place prior to a shutdown can help agencies implement changes in day-to-day operations during a shutdown. Selected agency components all incorporated some internal controls in their shutdown-related activities, as shown in the table below. However, none of the agency components had controls for limiting both physical and virtual workspace access for employees during a shutdown, each citing the difficulty of implementing such controls. Having these controls in place would help components ensure that they operate consistently with their contingency plans and avoid misuse of government resources.
Selected Agency Components Varied in the Sufficiency of Their Internal Controls
Why GAO Did This Study
A lapse in appropriations resulted in the federal government partially shutting down from December 22, 2018, to January 25, 2019.
GAO was asked to evaluate agency contingency plans and operations during the FY 2019 shutdown. This report assesses the extent to which selected agencies and selected components (1) had contingency plans that were consistent with applicable OMB guidance, (2) planned for a potential prolonged shutdown and changed operations during the shutdown, and (3) had shutdown policies and procedures consistent with relevant internal control principles.
GAO selected CBP, IRS, ITA, and USTR as agency components for review because they are under the jurisdiction of the Senate Committee on Finance and were affected by the FY 2019 shutdown. GAO reviewed OMB's guidance, agencies' contingency plans, and other documentation. GAO interviewed agency and component officials.
Recommendations
GAO is making 14 recommendations, including that certain agency components improve contingency plans, document shutdown procedures, and improve controls for physical and virtual workspace access during a shutdown. CBP and ITA agreed with the recommendations directed to them; IRS partially agreed with one and disagreed with two; and USTR did not state whether it agreed or disagreed, but has begun taking steps to implement two recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Commerce | The Secretary of Commerce should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 1) |
The Department of Commerce agreed with our recommendation and made continuous revisions to its contingency plan to better align it with OMB guidance. In September 2019, the agency included in the contingency plan information on flexibilities supervisors can use if furloughed employees were unable to return to work at the end of the shutdown. In September 2021, the agency added information about resuming program activities, including disbursement of funds after a shutdown and the use of accounting principles for oversight. In September 2023, Commerce further refined information in the contingency plan for prolonged shutdown, where applicable, thus meeting the intent of the recommendation.
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| Department of Homeland Security | The Secretary of Homeland Security should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 2) |
In September 2020, DHS revised its contingency plan to instruct component organizations to identify additional personnel required for a prolonged shutdown lasting longer than 5 days. DHS also updated the non-public, for official use only portion of the contingency plan for Customs and Border Protection (CBP) with the number of employees who would potentially be exempt or excepted if a shutdown lasted longer than 5 days. In its September 2020 update, DHS also added language to its contingency plan to inform employees about available flexibilities if they are unable to return to work after the end of a shutdown and to instruct components on procedures for resuming program activities at the conclusion of a shutdown, including procedures for oversight and disbursement of funds.
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| Internal Revenue Service | The Commissioner of Internal Revenue should align the agency's contingency plan with OMB guidance by including (1) plans for a potential prolonged shutdown; (2) flexibilities available to supervisors if furloughed employees were unable to return to work after the end of the shutdown; and (3) procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. (Recommendation 3) |
The Internal Revenue Service (IRS) partially agreed with the recommendation. IRS agreed with one element of our recommendation to include additional detail in its agency contingency plan and stated that it is in the process of adding procedures for resuming program activities following a government shutdown into its contingency plan. IRS did not agree with the other elements of the recommendation because it believes it has already addressed plans for a potential prolonged shutdown and flexibilities for supervisors if employees are unable to return to work at the end of a shutdown in its contingency plans. In response to our recommendation, IRS added language to its fiscal year 2021 contingency plan to document procedures for resuming program activities, including steps to ensure appropriate oversight and disbursement of funds upon the end of a shutdown. IRS also added language to its fiscal year 2021 contingency plan to provide further details on flexibilities available for supervisors if employees are unable to return to work at the end of a shutdown. The Department of the Treasury approved the updated contingency plan on September 15, 2020. Our review of the IRS fiscal year 2024 contingency plan identified no significant additions related to plans for a potential prolonged shutdown. While we agree that the IRS plan includes some details on actions in the event of a prolonged shutdown, we continue to believe that it should provide more detail, such as points in time when the furlough status of an employee may change, how many employees would be affected, and the legal basis for the changes, within its publicly available contingency plan to align the plan with OMB guidance. We will continue to follow-up on agency actions to implement this recommendation.
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| Office of the U.S. Trade Representative | The U.S. Trade Representative, in consultation with EOP as appropriate, should align the component's contingency plan with OMB guidance. This could be accomplished through (1) revisions to the EOP contingency plan; or (2) by creating a separate USTR plan. (Recommendation 4) |
In December 2020, the Office of the U.S. Trade Representative (USTR) developed a contingency plan for the shutdown of agency operations in the absence of appropriations. This plan supplemented the shutdown contingency plan developed by the Executive Office of the President, which is submitted to the Office of Management and Budget (OMB) in accordance with OMB Circular No. A-11. In our report, we identified 14 elements of OMB Circular No. A-11 that agencies must include in their shutdown contingency plans. USTR's new contingency plan included 12 of the 14 required elements. The plan had a summary of significant component activities that will continue and stop during a lapse in appropriations, the estimated time needed to complete shutdown activities, the total number of employees expected to be on board before a shutdown and retained during a shutdown, the method for notifying employees about the end of a shutdown, flexibilities available to supervisors if employees have problems returning to work after a shutdown, and procedures for resuming program activities. However, the plan did not include a description of anticipated changes to the plan in the case of a prolonged lapse in appropriations (longer than 5 days), nor a designation of personnel responsible for implementing and adjusting the plans given changes in conditions. In May 2022, USTR updated its contingency plan to designate personnel responsible for implementing and adjusting the plan during a shutdown. While USTR's updated contingency plan did not explicitly include a description of anticipated changes to the plan in the case of a prolonged lapse in appropriations, it showed that USTR officials would plan activities for the first 2 weeks of a shutdown, and that officials would confer about exceptions to that plan on each day of the shutdown. USTR officials confirmed that they do not anticipate any changes that would occur after 2 weeks, and any changes to the plan would depend on the circumstances at the time of a shutdown. USTR's actions, therefore, meet the intent of this recommendation.
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| International Trade Administration | The Under Secretary for International Trade should document the component's shutdown processes, including roles and responsibilities, planning processes for potential shutdowns, and recall processes for furloughed employees during a shutdown. (Recommendation 5) |
The Department of Commerce agreed with the recommendation. In May, 2020, in response to the recommendation, ITA documented its contingency planning process in the event of a lapse of appropriations in its internal policies and planning documents. ITA developed an internal planning document that identifies activities or events that may be impacted and whether exception requests need to be submitted; and included a roster of furloughed, exempted, and excepted employees. The planning document also identified staff responsible for implementation, detailed targeted completion dates, and provided a checklist to recall ITA employees during a shutdown. According to ITA officials, the agency plans to conduct this planning process annually.
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| Office of the U.S. Trade Representative | The U.S. Trade Representative should document the component's shutdown processes, including roles and responsibilities, planning processes for potential shutdowns, and recall processes for furloughed employees during a shutdown. (Recommendation 6) |
In December 2020, the Office of the U.S. Trade Representative (USTR) developed a contingency plan for the shutdown of agency operations in the absence of appropriations. This plan documented some of the component's shutdown processes, including roles and responsibilities and recall processes for furloughed employees during a shutdown. The plan outlined staff positions and offices responsible for carrying out specific shutdown activities, such as identifying essential activities and excepted employees during a shutdown, notifying employees of their furlough or excepted work status, and instructing individual employees on their specific actions to conduct an orderly shutdown. Additionally, the plan provided information to employees on how to monitor the component's operating status and instructions for potential employee recall or contact upon the end of a furlough. The contingency plan also listed shutdown preparation activities, including determining the status of no-year funds and how many days USTR can function with no or limited furloughs, and identifying physical security requirements for classified information, materials, and equipment. In May 2022, USTR updated its contingency plan to include instructions on how to carry out these activities, satisfying our recommendation to document planning processes for potential shutdowns.
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| United States Customs and Border Protection | The Commissioner of CBP should develop internal controls to track and document which employees worked and what work was performed daily during a government shutdown. (Recommendation 7) |
In December 2020, Customs and Border Protection (CBP) created a daily hiatus tracker for use during a future shutdown. During a shutdown, the tracker system will send out auto-generated email notifications to all CBP employees, requesting that those determined as excepted or exempt check-in for the day. The tracker then allows each excepted or exempt employee to note their work status, CBP component organization, and the excepted or exempt function that they are performing. The tracker system will allow CBP officials to aggregate individual reports to the overall CBP level as well as the CBP component level.
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| United States Customs and Border Protection | The Commissioner of CBP should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 8) |
The Department of Homeland Security (DHS) agreed with the recommendation but stated that because Customs and Border Protection (CBP) does not have systems capable of efficiently restoring physical access for furloughed employees, it would have to reinstate employee access individually and the cost would be substantial. DHS stated that CBP plans to update procedures to ensure more comprehensive workspace access guidance for furloughed employees. In September 2020 and April 2021, in response to GAO's recommendation, CBP updated its non-public, for official use only portion of the DHS contingency plan with additional language that emphasizes the importance of internal controls for limiting access to physical workspaces during a shutdown. In January 2022, CBP drafted an agency-wide memorandum, which included the information in the updated shutdown guidance and reiterated the importance of limiting access to physical workspaces. According to CBP officials, this memorandum will be distributed throughout the organization when a government shutdown occurs. It will also be attached to the agency's shutdown guidance. CBP provided GAO with a copy of the memorandum, which specifically states that non-exempt and non-excepted employees' access to CBP facilities should be very limited in nature and based strictly upon emergency mission need or, if recalled, to perform a specific function. The memorandum also establishes procedures for ensuring controls for access to physical workspaces in the event of a shutdown lasting longer than three days. Should a shutdown last longer than three days, CBP Enterprise Services Office of Facilities and Asset Management will draft guidance for dissemination to ensure that each organization continues to adhere to the guidance above related to physical facility access.
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| Internal Revenue Service | The Commissioner of Internal Revenue should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 9) |
The Internal Revenue Service disagreed with this recommendation. IRS stated that it believes that it has effective controls in place to manage physical workspace access during a shutdown. In addition, IRS said that it believes that implementing additional access controls do not justify the corresponding resource investments. As of March 2021, IRS maintains its position that the benefits of implementing additional controls do not justify the corresponding resource investment. We continue to believe that IRS should improve its access controls, which currently rely on managers and furlough letters to communicate limits on workspace access. While we recognize the costs of increased access controls, government shutdowns are unique events that require additional access controls in order to prevent potential misuse of government resources. As of April 2024, IRS officials said that the agency has not taken further action to implement this recommendation. We will continue to monitor IRS's efforts on this issue.
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| Office of the U.S. Trade Representative | The U.S. Trade Representative should develop internal controls to limit access to physical workspaces to appropriate employees during a government shutdown. (Recommendation 10) |
In December 2020, the Office of the U.S. Trade Representative (USTR) developed a contingency plan for the shutdown of agency operations in the absence of appropriations. This plan includes a section on access to physical workspaces during a government shutdown, stating that physical access will be limited to only those employees who are excepted for a specific day of the shutdown. The plan states that the USTR Office of Security will provide a daily list of excepted employees to Federal Protective Service officers, along with instructions that only those listed employees be afforded facility access. Any non-compliance will be immediately reported to the Assistant United States Trade Representative for Administration and the on-duty USTR security specialist for action.
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| United States Customs and Border Protection | The Commissioner of CBP should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 11) |
The Department of Homeland Security (DHS) agreed with the recommendation. DHS stated that Customs and Border Protection (CBP) believes that furloughed employees must be able to passively monitor the status of the government shutdown and access important agency communications using DHS-issued electronic devices. Additionally, disabling and reactivating thousands of employee user accounts during a shutdown posed a significant burden. DHS said that CBP planned to update shutdown procedures to clarify allowed use of DHS-issued electronic devices by furloughed employees. In April 2021, CBP revised its non-public, for official use only portion of the DHS contingency plan to include additional controls for ensuring that only excepted employees are accessing virtual workspaces during a shutdown. These contingency plans will be implemented at a designated time following a shutdown, mitigating any risk associated with non-excepted personnel accessing the network.
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| Internal Revenue Service | The Commissioner of Internal Revenue should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 12) |
The Internal Revenue Service disagreed with this recommendation. IRS stated that it believes that it has effective controls in place to manage virtual workspace access during a shutdown. In addition, IRS said that it believes that implementing additional access controls do not justify the corresponding resource investments. As of March 2021, IRS maintains its position that the benefits of implementing additional controls do not justify the corresponding resource investment. We continue to believe that IRS should improve its access controls, which currently rely on managers and furlough letters to communicate limits on workspace access. While we recognize the costs of increased access controls, government shutdowns are unique events that require additional access controls in order to prevent potential misuse of government resources. As of April 2024, IRS officials said that the agency has not taken further action to implement this recommendation. We will continue to monitor IRS's efforts on this issue.
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| International Trade Administration | The Under Secretary for International Trade should develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 13) |
The Department of Commerce agreed with the recommendation and stated that the International Trade Administration (ITA) has established and documented internal controls to limit virtual workspace access to excepted or exempt employees during a government shutdown. In October 2020, ITA finalized its Standard Operating Procedures, which describes steps to be taken during a shutdown to manage access to ITA's networks for furloughed employees. According to the plan, ITA's shutdown coordinator and the Chief Information Officer of Technology, Services and Innovations will develop a list of all exempted or excepted employees that have been designated to work during a government shutdown. The same template will enable ITA to disable ITA users who are furloughed in its network in the event of a shutdown. Having sufficient controls to limit who can perform work during a shutdown will ensure that ITA is functioning consistently with contingency plans and help ITA operate effectively and avoid misuse of government resources during a shutdown.
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| Office of the U.S. Trade Representative | The U.S. Trade Representative should, in consultation with EOP, develop internal controls to limit access to virtual workspaces to appropriate employees during a government shutdown. (Recommendation 14) |
In December 2020, the Office of the U.S. Trade Representative (USTR) developed a contingency plan for the shutdown of agency operations in the absence of appropriations. In August 2023, USTR updated its shutdown contingency plan with an additional control to limit access to appropriate employees to virtual workspaces during a government shutdown. According to the plan, USTR will place reminders on its internal, employee-only website, as well as on the information telephone line. These reminders will tell furloughed employees that they are not permitted to use work issued mobile devices, laptops, or access government email.
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Topics
Appropriated fundsAppropriationsBudget appropriationsContingency plansGovernment shutdownInternal controlsPolicies and proceduresCompliance oversightInternational tradeHomeland security