Railroad Retirement Board: Agency Could Strengthen Plans to Address Key Management Challenges
Fast Facts
The Railroad Retirement Board handles retirement and other benefits for railroad workers and their families. But the Board's programs are at risk for fraud and abuse and the agency faces a looming wave of retirements and aging IT systems.
The Board is addressing some key management challenges. For example, it has assessed the agency's IT needs and has created a modernization plan that includes providing more self-service options for customers to file benefit applications online.
But the plan doesn't include some key practices like setting and sharing timelines and goals for IT modernization. Our recommendations address this, and more.
Highlights
What GAO Found
The Railroad Retirement Board (RRB) has taken some promising steps, in alignment with key practices, towards addressing its management challenges. However, some work remains.
Risk management process. RRB has begun implementing an enterprise risk management (ERM) process, which is a decision-making tool that allows agencies to review and manage program and financial risks. It involves several essential elements and related key practices that fit together in a continuous process. RRB has mostly or partially implemented key practices for the first two essential elements and is beginning to implement key practices for the third (see figure). For example, to help address the second element, identifying risks, RRB trained staff to identify and report on program risks, such as not processing timely and accurate retirement applications. RRB also created tools for staff to use to report risks. However, RRB does not have a written plan for completing its ERM implementation. With such a plan, RRB will be better positioned to measure progress toward completing the process. In addition, a written plan could help RRB better use the risk information it collects to target and address serious program and financial risks.
Essential Elements of Enterprise Risk Management (ERM) Implemented by RRBa
aShading indicates the essential elements that the Railroad Retirement Board (RRB) mostly or partially implemented.
Human capital and planning for post-COVID workplace needs. RRB's human capital plans and efforts to date have incorporated all key practices for effective strategic workforce planning. For example, RRB analyzed expected employee attrition and used this information to target hiring and training needs. RRB is also revising its telework policies in light of COVID and assessing its space needs to downsize its headquarters, among other things.
IT modernization. RRB assessed its IT needs and laid out a broad strategy for improvements that align with its strategic goals. For example, RRB plans to develop online tools for customers to file benefit applications and update information. However, RRB's IT modernization plans do not incorporate some key information management practices. For example, the agency has not developed plans that clearly state when its IT modernization efforts will be complete or the extent to which it will update its IT systems. In addition, RRB has not developed performance metrics and goals for measuring progress of its modernization efforts. In the absence of plans with clear metrics and goals, RRB may be unable to measure the success of its efforts and adjust approaches as needed.
Why GAO Did This Study
RRB administers retirement, disability, Medicare, and other benefits to railroad workers and their families. GAO and RRB's Inspector General have identified challenges to RRB's ability to effectively carry out its mission. These include difficulty overseeing financial and program integrity, a looming wave of retirements, and aging IT systems.
The explanatory statement accompanying the Further Consolidated Appropriations Act, 2020, includes a provision for GAO to conduct a management review of RRB. This report examines the extent to which RRB has addressed its key operational challenges by (1) implementing a process to oversee and manage program and financial risks, (2) assessing its human capital and post-COVID workplace needs, and (3) modernizing its IT infrastructure.
GAO identified key practices from GAO's prior work and OMB guidance and assessed RRB's progress against these key practices. GAO reviewed relevant federal laws and regulations; RRB policies, plans and documents; OMB policies, and related GAO reports. GAO also interviewed officials from RRB.
Recommendations
GAO is making two recommendations to RRB to (1) develop a written plan that describes how it will complete implementation of its ERM process, and (2) ensure written plans clearly state the intended results of its IT modernization, including metrics and goals for measuring progress. RRB concurred with our recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Railroad Retirement Board | The Board should develop a written plan detailing how it will implement the remaining unimplemented and partially implemented essential elements and key practices of its enterprise risk management process. The plan should include measurable goals, a timeline, and milestones for completing the remaining essential elements and key risk management practices. (Recommendation 1) |
RRB agreed with this recommendation and developed a plan for completing implementation of its Enterprise Risk Management (ERM) system. The plan addresses all six essential elements of ERM and breaks down implementation of each element into a number of milestones and sub-tasks, each with a targeted completion date. Additionally, RRB developed a communication plan that outlines how information on implementation progress, decisions, and potential delays are delivered to stakeholders. The communication plan includes the frequency with which updates will be provided and meetings held.
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| Railroad Retirement Board | The Board should ensure written plans clearly state the intended results of IT modernization, including the future IT self-service capabilities it will create, how it will address any related gaps or interdependencies, and how it will measure the success of its IT modernization effort, including performance metrics and goals. (Recommendation 2) |
RRB agreed with this recommendations and stated that it will include ways to measure the success of its IT modernization in its plans. We will monitor the agency's progress on these efforts.
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