The Government Accountability Office (GAO) released an update to its list of high-risk federal program areas, which is updated every two years. The Medicaid program remains on GAO’s list of designated high-risk programs, primarily due to its size and the variability of program structures from state to state. GAO notes that data used for oversight is even more important now in light of the need to track new spending for newly eligible individuals for whom the states will receive 100 percent federal matching funds for several years. The 32 high-risk areas identified by GAO also include funding the nation’s surface transportation system, the management of federal oil and gas resources, and improving the management of IT acquisitions and operations.  See the entire list below:

Strengthening the Foundation for Efficiency and Effectiveness
  • Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks
  • Management of Federal Oil and Gas Resources
  • Modernizing the U.S. Financial Regulatory System and the Federal Role in Housing Finance*
  • Restructuring the U.S. Postal Service to Achieve Sustainable Financial Viability*
  • Funding the Nation’s Surface Transportation System*
  • Strategic Human Capital Management
  • Managing Federal Real Property
  • Improving the Management of IT Acquisitions and Operations (new)
Transforming DOD Program Management
  • DOD Approach to Business Transformation
  • DOD Business Systems Modernization
  • DOD Support Infrastructure Management*
  • DOD Financial Management
  • DOD Supply Chain Management
  • DOD Weapon Systems Acquisition
Ensuring Public Safety and Security
  • Mitigating Gaps in Weather Satellite Data
  • Strengthening Department of Homeland Security Management Functions
  • Establishing Effective Mechanisms for Sharing and Managing Terrorism-Related Information to Protect the Homeland
  • Ensuring the Security of Federal Information Systems and Cyber Critical Infrastructure and Protecting the Privacy of Personally Identifiable Information*
  • Ensuring the Effective Protection of Technologies Critical to U.S. National Security Interests*
  • Improving Federal Oversight of Food Safety*
  • Protecting Public Health through Enhanced Oversight of Medical Products
  • Transforming EPA’s Processes for Assessing and Controlling Toxic Chemicals*
Managing Federal Contracting More Effectively
  • DOD Contract Management
  • DOE’s Contract Management for the National Nuclear Security Administration and Office of Environmental Management
  • NASA Acquisition Management
Assessing the Efficiency and Effectiveness of Tax Law Administration
  • Enforcement of Tax Laws*
Modernizing and Safeguarding Insurance and Benefit Programs
  • Managing Risks and Improving VA Health Care (new)
  • Improving and Modernizing Federal Disability Programs
  • Pension Benefit Guaranty Corporation Insurance Programs*
  • Medicare Program*
  • Medicaid Program*
  • National Flood Insurance Program*

*Legislation is likely to be necessary to effectively address this high-risk area.