Federal Manager's Daily Report

The CRS report added that some in both the private sector and in the government have expressed concern “that the initiative is moving too fast, and that important issues surrounding the transition to shared service providers have not been adequately addressed. Critics argue that migration should be delayed until agencies have strengthened their internal controls, fully evaluated the qualifications of potential SSPs, and educated their personnel about the initiative.”

“Evidence from previous systems modernization efforts suggests that these issues may put the FMLOB at increased risk for cost overruns, schedule delays, and problems with the accuracy of the data after implementation,” the report said.

The report added that Congress’s ability to oversee agency programs and operations depends in part on the availability of timely and accurate financial data. “Congress has invested billions of dollars in systems modernization projects in recent years, but these efforts have not consistently yielded significant improvements in the information they produce,” it said.

The House subcommittee on government management, finance, and accountability has held several hearings on the initiative, although no bills have been introduced, CRS said.