Runcie, James

- Run-ale James
?231? Tuesda Ma' 23 10 23 PM .
Cc:

Subject: Status

 

Dear Colleagues -

have been consistently on record and clear about not testifying at the Upcoming ?rearing or Firm? 
provided the reasons both verbally and thrOugh emails going back to the beginning of May. .:ase received some
con?icting information regarding conversations with the subcommittees. I have not hea'd a sing-'9 
from Department staff regarding the need to have the Chief Operating Officer of Federal Studert aid test 15,- :in erect-r
payments.

Jay Hurt is the subject matter expert, Program Accountable Official for improper payments. the FSA Chief Financia'

Of?cer and a member of the FSA governance board (Operating Committee). The Department has spent considerabie
time and resources to ensure that Jay is well prepared for the testimony. In addition, Tim Solt:s is the Agency
Accountable Of?cial for the overall Department. Either one of them would well represent both the Department and
Federal Student Aid in a comprehensive discussion regarding improper payments. We have had other subject matter
experts within FSA testify to Congress so this would not be a precedent.

in less dire circumstances, I would censider testifying as I have done on five previous occasions including discussions on
improper payments. However, as the Chief Operating Officer accountable for the strategic and operational managemene
of this Performance Based Organization, lam incredibly concerned about significant constraints being staged [m 

ability to allocate and prioritize resources, make decisions and deliver on the organization's misses. We have dozens 
pages of decisions that have been typically made within Federal Student

Department level. Once at the Department level, the decision making framework and process is not clear to anyone .3:
FSA and the cycle time continues to increase risk for our work streams and stakeholders.

Aid that are now required to be elevated to mt,

We have significant projects and deliverables that include the Income Driven Re
rte-competition, borrower defense, IPM, cyber securit
others. of work needs focus andsupport. This work
have to wcoessfuliy operate our base activities thatsuppon the 
trillion portfoiio, and oversight and compiia
other entities in order to deal with this volume or work, we 
softener remain nape-rm that we will obtain a timely response.

payment/DIRT, PCA contracts, servicmg
y, year-round Peli Grants and a slew of

is in addition to the tremendous that we
rigination and disbursement of $125 billion annually,
nce for thousands of post-secondary institutions and
mitted a request to the Secretary for waivers to hire key

Today m?embersof FSA senior executive management met with Treasu
of FSA to Treasury. We discussed the process of creatin
to determine feasibility and a potential roadmap.
but will certainly divert critical resources and

ry officials to discuss transferring all or a portion
cross agency teams, holding numerous meetings and retreats
This is just another example of a project that may provide some value
increase operational risk in an increasingly challenging environment.

lam. ofthg Secretarrs memo which I received today at around 4:30pm. It includes a directive to testify at the
I have decided for the abOVe reasons to not testify as I continue to be concerned about .


 

. I   ?m i
- - uni-irks.? a. a

I have had the privilege of sewing as the Chief Operating Officer for the past 7+ years. I am very aware of the challenges
and opportunities that come with managing an organization of this scope and complexity, and have been fortunate to
work with a tremendous group of people who have successfully delivered repeatedly for students, families, schools,
taxpayers and many other stakeholders. However, at this point, i am encumbered from exercising my authorities to

properly lead this great organlzation.

 

i cannot In good conscience continue to be accountable as the Chief Operating Of?cer given the risk associated with the
current {environment at the Department. I want to also provide the Secretary with the ability to select a Chief Operating
-.0f?certhat willbe better aligned to whatever governance and management model she believes is most effective. Please
absentthis email as my resignation letter. My resignation is effective immediately. Thank you for the opportunity to