In July 2002, the OMB issued two memorandums that directed agencies expected to be part of the Department of Homeland Security to cease funding for new IT for a period of time. These agencies were also directed to submit information to OMB on current or planned investments in IT. The GAO was asked by the House Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census to explain OMB's implementation of these memorandums; to identify any resulting changes to applicable IT investment; and to determine whether DHS has begun its own investment management reviews and, if so, the result of these reviews. The study found that OMB and DHS IT staffs have initiated some changes to agency IT infrastructure and business systems investments because of the memorandums. In addition, DHS IT officials cited other benefits that resulted from the memorandums; however, it is not known whether, or to what extent, savings have resulted from the memorandums. The DHS chief information officer stated that the department plans to track savings related to the consolidation and integration of systems and has established a mechanism for doing so. Until such savings are identified, tracked, and reported, it will not be possible to know whether the July memorandums and the subsequent establishment of DHS have achieved the economies identified by OMB. The GAO report recommends that the DHS report savings resulting from its consolidation and integration of systems and develop a schedule for reviews of IT investments subject to departmental oversight. 2 tables, 2 figures, and appended information on DHS department-level investment management boards