Report: Security agency needs better financial management

The Homeland Security Department's largest investigative agency needs to improve its invoice management and make a variety of other financial management enhancements, according to a report from a congressionally chartered nonprofit organization.

The report, released last week by the National Academy of Public Administration, criticized the Immigration and Customs Enforcement agency's Federal Protective Service in particular. FPS, responsible for helping secure thousands of federal facilities across the country, faces a budget shortfall recently estimated to be as high as $60 million.

"Stability, understanding and adequate oversight should be highlighted as the immediate financial management objectives for FPS," the report stated, adding that "according to the majority of those interviewed, FPS is the most difficult program to service."

NAPA called for a better analysis of FPS expenses and revenues and said "service level changes or fee modification" will be needed to remedy the financial problems. The report said "hundreds of vendors" working for the agency have "varying degrees of financial sophistication to support and understand."

The NAPA report was not the first to call for changes in how FPS collects funds; multiple sources confirmed that the protective service has trouble getting timely payments. Agency sources, who spoke under the condition of anonymity, said the service may have to increase fees by as much as 60 percent to make up for shortfalls. The agency has already pulled its officers from some federal buildings at off-peak hours, multiple sources confirmed.

The Homeland Security Department's largest investigative agency needs to improve its invoice management and make a variety of other financial management enhancements, according to a report from a congressionally chartered nonprofit organization.
The report, released last week by the National Academy of Public Administration, criticized the Immigration and Customs Enforcement agency's Federal Protective Service in particular. FPS, responsible for helping secure thousands of federal facilities across the country, faces a budget shortfall recently estimated to be as high as $60 million.

"Stability, understanding and adequate oversight should be highlighted as the immediate financial management objectives for FPS," the report stated, adding that "according to the majority of those interviewed, FPS is the most difficult program to service."

NAPA called for a better analysis of FPS expenses and revenues and said "service level changes or fee modification" will be needed to remedy the financial problems. The report said "hundreds of vendors" working for the agency have "varying degrees of financial sophistication to support and understand."

The NAPA report was not the first to call for changes in how FPS collects funds; multiple sources confirmed that the protective service has trouble getting timely payments. Agency sources, who spoke under the condition of anonymity, said the service may have to increase fees by as much as 60 percent to make up for shortfalls. The agency has already pulled its officers from some federal buildings at off-peak hours, multiple sources confirmed.

-Jonathan Marino, GovExec.com

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Appropriators probe Federal Protective Service budget 'crisis'

Congressional appropriators are seeking explanations of how the Homeland Security Department agency that helps guard federal buildings developed a multimillion-dollar budget shortfall in fiscal 2006, and how similar problems can be avoided this fiscal year.

The conference report accompanying the final version of the fiscal 2007 Homeland Security spending bill (H.R. 5441), passed by the House and Senate late Friday night and signed by President Bush Wednesday, instructs DHS Secretary Michael Chertoff and Office of Management and Budget officials to detail "the extent and cause of any budgetary shortfall" at FPS for the just-ended fiscal year in a report submitted by Nov. 1. The report also must address "how [DHS] will fix FPS financial, procurement and accounting processes and policies," and must be updated by April 30, 2007.

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