Scope of the Position:

The Under Secretary for Management is the third-ranking position in the Department of Homeland Security (DHS) and is charged with the general management of the Department. The Under Secretary oversees DHS's financial management and procurement of information technology systems, facilities, and equipment. Another focus of the position is the management of the Department's projects and workforce of 230,000 people. In addition to the general management responsibilities of DHS, the Under Secretary also oversees almost $16.5 billion of procurements annually and a proprietary budget of almost $1 billion.

Illustrative Management Challenges:

High Risk List

The DHS has been on GAO's High Risk List for a number of years, since the Department's founding in 2003. In 2011, GAO recognized a "continued need to strengthen DHS's management functions and integrate those functions within and across the department" and renamed the study from Implementing and Transforming DHS to Strengthening DHS Management Functions.1 The major points of the report include financial management and acquisition management.

Acquisition Management

As per GAO's 2013 and 2015 High Risk List reports, improvement in acquisition management remains a top priority for DHS. With $9.8 billion invested in major acquisition programs, funding instability is the Department's greatest challenge to effective management of major acquisition programs.2 A GAO report determined that "DHS has not consistently developed its multiyear funding plans in accordance with key portfolio management practices that would help the department optimize the return on its acquisition investments." In another report, the GAO found that "DHS needed to increase its cost-estimating capacity and that the department had not approved baselines for 21 of 46 major acquisition programs."1

Financial Management:

Though DHS obtained a clean opinion on its financial statements for two consecutive years, in FY 2013 and 2014, a strong need for financial management reform remains.1 According to a GAO study, "DHS continues to rely on compensating controls and complex manual work-arounds to support its financial reporting, rather than sound internal control and effective financial management systems."3 In September 2013, DHS reported that its plan to modernize its financial system will be complete in FY 2018. This plan aims to integrate the financial systems with asset management and acquisition systems, resulting in component-level integrated financial management systems.

     Sources:

     1Strengthening Department of Homeland Security Management Functions; www.gao.gov; 2015.
     2Homeland Security Acquisitions: DHS Could Better Manage Its Portfolio to Address Funding Gaps and Improve Communications with Congress; www.gao.gov;    
      April 17, 2014.
     3DHS Financial Management: Continued Effort Needed to Address Internal Control and System Challenges; www.gao.gov; November 15, 2013.      

Under Secretaries for Management, DHS:

Given the broad range of responsibilities that fall to Under Secretary for Management, past position holders have come into the job with experience in a wide variety of government agencies, including the Transportation Security Administration, the Department of Commerce, the National Security Agency, the Office of Management and Budget, and the Department of Homeland Security itself.

Current Incumbent:

Russell C. Deyo (2015-present): Deyo previously served in various capacities within Johnson & Johnson, including Vice President of Administration and General Counsel. He also served as a member of the company's Executive Committee for over a decade. Prior to his career with Johnson & Johnson, Deyo was Assistant U.S. Attorney for the District of New Jersey, serving his final three years there as Chief of Special Prosecutions. He received his JD from Georgetown University Law Center.

Previous Under Secretaries:

Rafael Borras (2010-2013): Borras currently serves as a partner with A.T. Kearney. Prior to his appointment as Under Secretary, Borras served as Vice President for Mid-Atlantic Construction Management at URS, and prior to that he was Regional Administrator for Mid-Atlantic Region of the General Services Administration. He previously served as Deputy Assistant Secretary for the Department of Commerce. Borras received his bachelor's degree in political science and public administration.

Elaine C. Duke (2008-2010): Duke currently serves as a principal of Elaine Duke & Associates. Prior to her appointment as Under Secretary, she served as Deputy Under Secretary for Management and Chief Procurement Officer for the Department. Duke also worked as Deputy Assistant Administrator for Acquisition at the Transportation Security Administration. She previously served in various positions within the U.S. military, including Naval Facilities Engineering Command, Deputy Director of the Contracting Department at the Navy Public Works Center, and as a contracting officer with the U.S. Air Force. Duke holds a BS in business management and an MBA.

Paul A. Schneider (2006-2008): Paul Schneider currently works as a Principal with The Chertoff Group. Prior to his tenure with DHS, Schneider served as the Senior Acquisition Executive of the National Security Agency. He previously worked as a defense and aerospace consultant and contributed to numerous projects, including an analysis for NASA on the risks and benefits of manned space flight. Schneider earned his bachelor's degree in nuclear engineering.

Scott Charbo (Acting) (2006): Charbo serves as the Director of Information Risk Management and Senior Director of Architecture, Risk, and Integration for Agrium. Prior to his appointment as Acting Under Secretary, Charbo worked as the Chief Information Officer for the USDA. He previously served as President of mPower/Emerge and Director of Environmental and Regulatory Services for United Agri Products, both subsidiaries of ConAgra Foods. Charbo holds a BS in biology and chemistry and an MS in plant science.

Janet Hale (2003-2006): Hale is a Managing Director with Deloitte Consulting. Prior to her time with DHS, Hale served as Assistant Secretary for Budget, Technology, and Finance at the Department of Health and Human Services and as Program Associate Deputy for General Government with the Office of Management and Budget. She has also held positions in other departments including Assistant Secretary of Budget at the Department of Transportation and Deputy Assistant Secretary of Policy and Budget at the Department of Housing and Urban Development. Hale holds an MA in public administration from Harvard University.

Additional Resources:

https://www.dhs.gov/person/russell-c-deyo 
https://www.dhs.gov/sites/default/files/publications/FY_2016_DHS_Budget_in_Brief.pdf 
http://www.gao.gov/products/GAO-14-106T 
http://www.gao.gov/products/GAO-14-332