Fiscal Year 2015 Top Management Challenges – “The Reports Consolidation Act of 2000 requires the Inspector General to identify and report annually the top management challenges facing the agency. In meeting this requirement, we have classified the challenges in to two key types of issues facing the U.S. Office of Personnel Management (OPM) – environmental challenges, which result mainly from factors external to OPM and may be long-term or even permanent; and internal challenges, which OPM has more control over and once fully addressed, will likely be removed as a management challenge. The two listed environmental challenges – strategic human capital and Federal health insurance initiatives – facing OPM are due to such things as increased globalization, rapid technological advances, shifting demographics, and various quality of life considerations that are prompting fundamental changes in the way the Federal Government operates. Some of these challenges involve core functions of OPM that are affected by constantly changing ways of doing business or new ideas, while in other cases they are global challenges every agency must face. The internal challenges we have identified for this letter represent challenges related to information technology, improper payments, the retirement claims process, and the procurement process…Internal Challenges:

• Information Security Governance;
• Security Assessment and Authorization;
• Data Security;
• Information Technology (IT) Infrastructure Improvement Project;
• Stopping the Flow of Improper Payments;
• Retirement Claims Processing
• Procurement Process for Benefit Programs; and
• Procurement Process Oversight…”