FCW Insider

Blog archive

FCW Insider: The future of LOBs

The Bush administration has made a big push for the lines of business, which are essentially shared service centers. But the Government Accountability Office this morning has posted its determination about whether DHS's "use of shared services within the Preparedness Directorate and its compliance with appropriations law and the proper use of the Economy Act."

I'm literally printing it out right now, but if the actual determination is anything like what is below, GAO seems to be saying that shared services violate appropriations rules.

B-308762, Department of Homeland Security's Use of Shared Services within the Preparedness Directorate, September 17, 2007 http://www.gao.gov/decisions/appro/308762.htm

The conference report accompanying the Department of Homeland Security Appropriations Act for fiscal year 2007 directed the Government Accountability Office (GAO) to review the Department of Homeland Security's (DHS) use of shared services within the Preparedness Directorate and its compliance with appropriations law and the proper use of the Economy Act.

In a legal opinion in response to this directive, GAO found that the Preparedness Directorate pooled its appropriations to fund what it refers to as shared services. Pooling funds across appropriations is a form of transfer, and, unless otherwise authorized by law, transfers of funds between agency appropriation accounts are prohibited by law. The Preparedness Directorate had authority, pursuant either to the Economy Act or to the "account adjustment" statute, to pool appropriations to fund shared services. The directorate, however, did not enter into valid Economy Act agreements. In addition, it appears that the directorate did not properly record allocated charges against each of the benefiting appropriations, as required by the account adjustment statute. DHS should adjust the expired fiscal year 2006 directorate appropriations so that each benefiting appropriation is charged for the value received. If any of the appropriations that funded the directorate do not have available unobligated balances to cover the adjustments, the directorate should report an Antideficiency Act violation.


Stay tuned.

Posted on Sep 21, 2007 at 12:17 PM


Featured

  • Contracting
    8 prototypes of the border walls as tweeted by CBP San Diego

    DHS contractors face protests – on the streets

    Tech companies are facing protests internally from workers and externally from activists about doing for government amid controversial policies like "zero tolerance" for illegal immigration.

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    At OPM, Weichert pushes direct hire, pay agent changes

    Margaret Weichert, now acting director of the Office of Personnel Management, is clearing agencies to make direct hires in IT, cyber and other tech fields and is changing pay for specialized occupations.

  • Cloud
    Shutterstock ID ID: 222190471 By wk1003mike

    IBM protests JEDI cloud deal

    As the deadline to submit bids on the Pentagon's $10 billion, 10-year warfighter cloud deal draws near, IBM announced a legal protest.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.