This report summarizes what we consider the most serious management and performance challenges to both the Department as a whole, as well as individual components challenges. We remain concerned about the systemic nature of these challenges, some of which span multiple Administrations and changes in Department leadership. We also assess the Department’s progress in addressing those challenges. This year, we are reporting the Department’s major challenges in the following areas: Unity of Effort, Employee Morale and Engagement, Acquisition Management, Grants Management, Cybersecurity, Management Fundamentals. We did not make any new recommendations in this report.