Background Investigations: Office of Personnel Management Needs to Improve Transparency of Its Pricing and Seek Cost Savings

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A letter report issued by the Government Accountability Office with an abstract that begins "OPM’s reported costs to conduct background investigations increased by almost 79 percent, from about $602 million in fiscal year 2005 to almost $1.1 billion in fiscal ear 2011 (in fiscal year 2011 dollars). However, the extent to which OPM’s cost data are reliable is unknown because an audit of OPM’s revolving fund, which finances business-type operations, has not been conducted. Independent audits of OPM’s overall financial management system, where revolving fund transactions are recorded, identified material weaknesses in internal controls, which could affect the reliability of ... continued below

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United States. Government Accountability Office. February 28, 2012.

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Description

A letter report issued by the Government Accountability Office with an abstract that begins "OPM’s reported costs to conduct background investigations increased by almost 79 percent, from about $602 million in fiscal year 2005 to almost $1.1 billion in fiscal ear 2011 (in fiscal year 2011 dollars). However, the extent to which OPM’s cost data are reliable is unknown because an audit of OPM’s revolving fund, which finances business-type operations, has not been conducted. Independent audits of OPM’s overall financial management system, where revolving fund transactions are recorded, identified material weaknesses in internal controls, which could affect the reliability of these cost data. OPM’s background investigation program has three principal cost drivers. The first cost driver is investigation fieldwork and support contracts, which represent nearly half of OPM’s fiscal year 2011 reported costs— about $532 million. These contracts allow OPM to assign an investigation to a contractor and buy clerical support for case-management. The second cost driver is personnel compensation and benefits for OPM's background investigation federal workforce, which represents about 25 percent of OPM’s fiscal year 2011 reported costs—about $265 million. The third cost driver is OPM’s information technology investments. While these investments represent less than 10 percent of fiscal year 2011 reported costs, they have increased more than 682 percent over 6 years (in fiscal year 2011 dollars), from about $12 million in fiscal year 2005 to over $91 million in fiscal year 2011. OPM attributed cost increases to more comprehensive subject interviews, increased FBI fees, and compliance with investigation timeliness requirements."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • February 28, 2012

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  • June 12, 2014, 7:50 p.m.

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United States. Government Accountability Office. Background Investigations: Office of Personnel Management Needs to Improve Transparency of Its Pricing and Seek Cost Savings, report, February 28, 2012; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc300041/: accessed October 22, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.