A Newsletter for Government Financial Managers Fall 1997 Vol.9. No.3. ATTENTION Update on the U.S. CFO Council JFM IP NEW S he federal financial management community will miss the following individuals who Recipients: recently left their positions as chief financial officers: To reduce costs for printing and mailing and to gain the beneflit of a wider distribution * Bonnie Cohen, formerly CFO, Department of the Interior, is now the Under Secretary with the use of the Internet through for Management at the Department of State. FinanceNet, the TFMTP is changing the way it distributes exposure drafts of JF.NII * George Munoz, formerly CFO, Department of the Treasury, is the Chairman, Overseas publications. JFMIIP has established a new Private Investment Corporation. mailing list in cooperation with our liaisons from organizations in both the public and * Louise F. Stoll, formerly CFO, Department of Transportation, has taken a position in private sectors. The liaisons determine who the private sector. in their organizations wvill receive future exposure drafts of TFIIP publications, such Some new members of the CEO Councl are: as financial systems requirements and core comperencies t-or financial management Kenneth Bresnahan was sworn in as the Deputy Chief Financial Officer (DCFO) of the personnel in hard copy. The liaisons in federal, Department of Labor on October 15, 1996. He is currently the Acting CFO at Labor. departments and agencies are usually memibers Prior to his Labor Department appointment, Mr. Bresnahan has held financial and program of the U.S. Chief Financial Officers Council, Federal Audit Executive Council, Small conrinued on page 4. Agency Council's Financial Management Committee and Executive Council on Integrity and Efficiency. You may access and dowvnload exposure drafts on FinanceNet Educating Millions on EFT 99 under TF\IPl>: _ _ _ _ .,, .>.. .:er,.-er _. ;: ' !rf. / ''1 D/ T he Department of the Treasury, Financial Management Service (FMS), is leading fl the effort to implement the Debt Collection Improvement Act (Public Law 104- 134), which will have a major impact on the way the Federal government issues Current Exposure Drafts payments. The law requires the use of Electronic Funds Transfer (EFT) for all Federal payments after January 1, 1999, with the exception of tax refunds. These TF-IILP has issued the following exposure disbursements include Federal benefit payments, such as Social Security and veterans' drafts: benefits, Federal salary payments, and vendor payments. The Treasury Department refers Corr Competencies in Financial Management to this effort as EFT 99. JOr Inrndation Technology Perstmnei (CC-3) - Scprember 1997 On September 16, 1997, Treasury issued a This document is jindy issued by JFAIP Notice of Proposed Rulemaking, 31 CFR and the Human Resources Commirtee of the Part 208, for implementing the EFT E Inside this Issue Chief Financial Officers (CFO) Council. requirements. The proposed rule addresses Comments are due by November 17, 1997. how current and new recipients of Federal Caem Competenciefor Financial System payments will arrange to have their payments Surchargejfor FMSS. 2 Analyrs (CC4) - September 1997 delivered electronically, how those without This document is jointly issued by JFIIIP accounts at financial institutions will receive CFOC Human Resources Committe. 3 and the Human Resources and Financial their payments, and who is eligible for a Profikl Elizabeth Smedy . Systems Committees of the CFO Council. waiver. EFT is defined as any transfer of Comments are due by November 17, 1997. funds using other than paper instruments. FASAB Update. . . 8 Core Compeenies in Financial Management This includes electronic transactions such as Jbr Management Analysts and Financial Automated Clearing House (ACH), Fedwire, HUD's Accountablity Report. 10 Specialistr (CC-5) - Ocoy 1997 credit cards, automated teller machine (ATM) TIN Regulation Proposed . . 12 TIhis document is joindy issued by JFMN' and point-of-salc (POS) transactions. Public and the Human Resources Committee of the hearings on the proposed rule will be held in IjDJ 7 on pae 4. _________________________________continued Aiup NEWS Fall 1997 3AO Issues Executive Guide on Surcharge for Use Measuring Performance of Information of Financial Management and Technology Management C ontinuing its efforts to assist agencies in understanding and devising effective information management The Executive Guide presents an approach that emphasizes three primary practice areas: (1) aligning IT systems with agency Systems Sc he duIe practices, the General Accounting missions, goals, and programs, (2) consoutin:g he General Services Administration Office (GAO) recently issued an executive measures using a balanced approach that (GSA) will be colecting a surcharge prid that presents a suggested framework determine how well IT is supporting i for any orders issued against the t r designing and implementing IT strategic, customer, and internal business Financial Management Systems pertormance management approaches. needs, and (3) implementing performance Software Multiple Award Schedule (FMSS Issued as an exposure draft under the title measurement mechanisms at various Schedule) contracts efective October 1, Erecutiie Guide: ieasuring Pertbrm7ance and decision-making levels throughout 2n 1997 The FMSS Schedule must be used by Dcenonsrraring Results of Infoirmarion organization. In addition, two supporting federal agencies in acquiring core financial Technoloqy Inmestmnents (GAO/ALMD-97- practice areas, perjornanct data collection and management systems software unless a 163), the guide is based upon GAO's analysis and strengthening processes being used waiver is granted. The FMSS Schedule also research of several leading public and private to deliver IT products and services are provides technical support services, training, oranizarions with established reputations important to achieving an effective IT documentation, theuendors alo and maintenance. Most of opional software tor their IT performance leadership and measurement system. management expertise. The organizations modules, such as proper accounting or *rudied included Xerox, Eastman Kodak, The approach outlined includes several procurement, to be used with the core Texas Instruments, M\lotorola Semiconductor distinguishing features, including: financial system software. Products Sector, American Express Travel differentiating between IT's impact on Relared Services Company, the Oregon intermediate versus final program 'GSA recently communicated the Decpartment of Transportation, and the outcomes, surcharge to senior procurement officials, ciries of Phoenix, Arizona and Sunnyvale, using a good mixture of different kinds chief financial officers and other senior Cllitornia. of IT measures to increase confidence in management officials in federal agencies by a measurement results, memorandum dated September 18, 1997 Scvcral management reform laws, including mtfrom Robert J. Woods, Commissioner, -he Government Performance and including * understanding that measures may differ Federal Technology Service, GSA. As a Act ot 1993, the Federals Acquisition by management tier within an result of organizational and budgetarv irreamlllininlv Act of' 1994, and the Clinger- organization, and changes within GSA, the agency needs to C('hen Act of 1996, contain provisions that * evaluating both the overall performance recoup the costs of operating this program, require rC,_11re agencies to measure agencies to measure of the IT function within an -~~~whchwa performance which was povde provided tto fdealagncesatn federal agencies at no and report resuts tor investments made in organization and the outcomes for cost since the inception of the FMSS titormation technolog, (IT). GAO's individual IT projects. Schedule program The surcharge to users research hasicafly tvund that organizations of the FMSS Schedule will be used to cover that use comprehensive per gaormance In addition, the guide notes that IT GSA's costs of establishing and tntormation tor its IT spending decisions organizations can start by measuring the administering the FMSS Schedule contracts make much better informed decisions that quality and effectiveness of existing internal 'Oclis oni IT's contribution to 'imorovements IT operations-a critical first step that For orders issued on or after October 1, ii mission, or business, performance. In strengthens credibilirv and experience 1997, agencies will be required to provide a addtimison,meabsuingsIT performance. In essential when constructing other measures fee (surcharge) to GSA of .75 % of the total .oitt provd aeasurln warning indicator to aimed at ITs strategic contributions to dollar value of each delivery/task order corecprobldems oner maritigat risdiso misotrouieseut.issued under the FMSS Schedule program. correct riss,roblemsor'mitiatc misson or bsiness esults.This surcharge will be reviewed periodically t2 ) provides better input into resource Copies of the report may be obtained by and adjusted as necessary to cover GSA's allocation and planning, and (3) provides calling 202/512-6000. An electronic cost of maintaining this program. feedback to employees, customers, version (.pdf format) is available on GAO's stakeholders, and the general public about Internet WEB page at: For information on the FISS Schedule the cluality, cost, and timeliness of products or this procedure, please contact Kathy and services. nltp:/ /ww.ga3:.: -y a i i6 3pdf Wood at (703)756-4214. C3 2 Fall 1997 JFMIP NEWS U.S. CFO Council Human Resources OMB Issues Committee Implementation he U.S. Chief Financial Officers (CFO) Council, comprised of the CFO Council, have established a Guidance for workgroup to address recruitment and CFOs and Deputy CFOs of the largest 24 Federai agencies and retention. Their first product is a publication, Current Recruitment and FFM IA executives of the Office of Management and Retention Tools, that summarizes into six Budget (OMB) and Treasury, was pages information on existing authorities .Edward DeSeve, Acting Deputy established to improve Federal financial (some rarely used, scattered throughout Director for Management, Office management. Acknowledging that a highly three volumes of Title V of the Code of of Management and Budget qualified financial workforce is key to Federal Regulations) available to (0MB), transmitted a September achieving success and sustaining progress, management for recruiting and retaining 9th memorandum to Chief Financial the Council chartered the Human Resources highly qualified personnel. The Officers (CFO) and Inspector Generals (IG) Committee (HRC). HR(C/IAG group is working with OPM at the CFO Act agencies that provided to update classification and qualification guidance to agencies on the implementation The HRC began its work bv first standards for financial management of the Federal Financial Management establishing the framework for a highly positions. Also, the HRC formed a Improvement Act (FFMIA) of 1996. The qualified financial workforce. In team to develop an entry level guidance was prepared by an interagency collaboration With JFMIP, the Framework for recruitment program to enable the working group composed of the CFO Core Comnpetencies for Financial M'Ianagement federal government to compete for Council's Systems Committee, Presidents Council for Integrity and Efficiency's Personnel in the Federal Government was highly qualified personnel. CIE) Aui Committ the General published in November of 1995. This (PCIE) Audit Committee, the General document begins a series of documents that The HRC has several projects Accounting Office (GAO), and OMB. identifies the core competencies underway related to the development of (knowledge, skills, and abilities) for financial personnel. The CFO Council The guidance stated that FFMIA personnel wvithin a specific occupational approved the concept of a CFO Fellows fundamentally does two things: grouping, and it identified core Program, to be inaugurated in FY 1998, * in statute, establishes financial comperencies for financial managers, budget that will be a highly competitive management system requirements that analysts and accountants. Recognizing that a program for developing potential are already established by Executive govern~ment that works better and costs less executive financial managers. A Branch policies, and requires a sound partnership between subcommittee is working to define * establishes new requirements for program and financial managers, the second selecp on csrteria and idenstft a training auditors to report on agency compliance document in the series identified core sxplornso/dmnstrator.e ithhe HrCisvalso with these basic requirements, and for competencies in finSeanocCouncilandgacadmiafforagency heads and agency management program managers. Exposure drafts are in Sector Councl and academia for delivery to correct deficiencies within a certain process for financial svstems analvsts, of uniform and consistent quality . pod inf'ormation technologv pronl infrmaiontechnology personnel financial management training to Federal tme per management analysts and financial personnel throughout the nation. The FFMIA is effective for fiscal year specialists. In addition to identifying core Further information and news is ending September 30, 1997. The first competencies, the documents identify available on the HRC's Internet home report required by FFMIA will be a part of learning objectives and training resources. page on FinanceNet at the auditor's report on the FY 1997 financial page onwFinanceNet.a statements. The guidance that 0MB issued With work nearing completion on httpi /www. financenets statended inv/ as interim guidance to be used as development of core competencies, the ninancenetf/fed/cfto/hr:/ hrc . htm part of audits of Federal financial statements HRC has begun focusing on the The HRC welcomes volunteers to for FY 1997 reporting. recruitment, development and retention of help with these initiatives. For further personnel, with the core competencies as the pleaseThe implementation guidance explains foundation. The HRC and the Interagency Bresnahan, Chair, at (202) 219-6891. t circumstances when an agency or Advisor' Council (IAG), which is the department is substantially in compliance Federal human resources equivalent to the continued on page 11. 3 JFEMP NEWS Fall 1997 CFO Comncil Update continued from fronrpage. management positions at the Department of appointment, Mr. Gould was Deputy received a Master of Science Management Agriculture. Since 1991, he was the Budget Assistant Secretary (Departmental Finance with a major in finance from the Officer for Agriculture's Food and and Management), Department of the Massachusetts Institute of Technology and a Consumer Service. He also served as Acting Treasury, where he was responsible for Bachelor of Arts degree in economics from Deputy Administrator for Financial budgeting, planning, procurement, payroll, Vassar College. Management at Food and Consumer personnel and organizational management Service. Mr. Bresnahan is the Chair, CFO for the department and its eleven bureaus. President Clinton sent the following Human Resources Committee. He was a White House Fellow, and has nominations to the U.S. Senate for worked also for the Governor of confirmation: Peter J. Rabideau, Deputy CFO, Massachusetts. His private sector experience * John Berry, CFO, Department of the Nuclear Regulatory Commission was includes being a management consultant Interior appointed the Deputy CFO on August 17, and an Assistant Professor of Naval Science * Richard Keevey, CFO, Department of 1997. He has been with the Federal at the University of Rochester. Housing and Urban Development government for 18 years. Prior to his current position, Mr. Rabideau was the Nancy Killefer was confirmed as * Michael Telson, CFO, Department of Budget Director, Director of Accounting Assistant Secretary(Management) and the Energy and Finance, and held progressively more Chief Financial Officer, Department of the * Sally Thompson, CFO, Department of responsible management positions involving Treasury, on September 19, 1997. Prior to Agriculture policy development, planning, program and her appointment, she was a director and resource analysis, and administrative support senior partner for McKinsev & Company, For more information on the CFO at the Nuclear Regulatory Commission. an international management consulting Council, please go to the CFO Council firm, for 18 years. She was an associate for website under FinanceNet at W. Scott Gould was sworn in as the Metropolitan Cultural Alliance,and worked http: i/cw . if inancene . go. i/-- / . o CEO and Assistant Secretary for with members of associations of nonprofit Administration, Department of Commerce, arts organizations to develop their financial on Septcmber 30, 1997. Prior to this management and control systems. She FFT 99 :onrinted from fronr page. October and written comments must be The public education campaign will technological deficiencies or cost factors. received no later than December 16, 1997. focus on educating the public on the law The new EFT law, however, should drive and its implications and encourage demand up, as vendors look to their Currently, Treasury issues over 300 individuals without accounts to join the financial institutions to provide EDI million checks annually. While many banking mainstream. The campaign will services. individuals choose to receive their payments also promote the most popular EFT by Direct Deposit, there may be as many as benefits: Information on the EFT 99 effort, the 10 million people currently receiving * EFT is safer, faster, and more Notice of Proposed Rulemaking, the Federal benefits that do not have bank convenient than a check payment and locations and times of public hearings on accounts and cannot, therefore, enroll in doesn't get lost or stolen; and the proposed rule, and the Guide to Federal Direct Deposit. Their reasons vary from Financial EDI Payments and other materials, perceived difficulty in managing an account * EFI saves taxpayers money. are available on the Internet at: and being overdrawn to not having enough Convening vendor payments from papr http //,ww. fms . treas .gov/e-t/ monev to need an account. FMS, with the mone' to neanacto electronic transactions represents another For additional information, please help of other Federal agencies, financial institutions, and trade and consumer challenge to the Federal government and contact Susan Alvarez at (202) 874-6908. o ~ an cnsme institutions, anduvtradea ~ ~ fnania organizations, has been involved in an effort financial community. Federal EFT to educate Federal payment recipients on payments to vendors include remittance information, in an electronic data the benefits of receiving their payments interchange (EDI) format, which vendors through various EFT methods. A contractor ° to oile their accounting systems. with public relations and advertising use teconcl tiraccounting stm expeienc ishelpng lan nd xecue a Many vendors, financial institutions, and experience is holpng plan and execute a Federal agencies now lack the capability to public educatio campaign. pass or receive financial information due to 4 Fall 1997 IFLIP NEWS FINANCIAL MANAGEMENT PROFILE E lizabeth E. Smedley (Bertv) is the Deputy Chief Financial Officer, Department of Energv (DOE). She joined DOE in won a National Performance Review's Hammer Award for the office. 1979 from the Department of the Navy. She was appointed Controller in 1985 and served as Acting This early emphasis on TQM also facilitated Chief Financial Officer when the CFO office was implementing the Government Performance and established in 1991 and again this year when the Results Act (GPRA) because both required position was vacant. The CFO manages budget and strategic planning and measuring results. In the accounting operations which total over $20 billion 1995 Budget, DOE began to display performance annually in resources, develops financial policy, and measures to indicate results expected from each of conducts a review program to ensure compliance its programs. These measures have evolved, but with financial procedures. She has also been the Department still has a major challenge in Director of Financial Policy; Deputy Director, identifying true outcome oriented performance Office of Budget; Agency Budget Officer; and indicators for its varied business lines which Assistant Controller for Budget, Policy, and include such divergent missions as radioactive Compliance. .S - waste clean up, basic research and maintenance ot the nation's nuclear weapons stockpile. At Navy, she was Head of the Operating Forces Ms S m Branch, Office of the Comptroller. She had . -cacMs. Smedley's management stnle is to bea responsibilirv for formulation, defense and _ Em information, and receptive to the ideas of others. execution of the portion of the Naw budget which She believes this approach encourages staff to provided operating funds for the Atlantic and contribute their ideas and talents and to buy in to the decisions that Pacific fleets. From 1964 to 1975, . . she n served in positions of . . ..................... are made. She said that one of the most m pratfactors in increasing responsibility with the Public Health Service, Department achieving accountability in the financial management arena is to of the Army, Defense Communications Agency, and Department of have the senior leadership in the agency demonstrate commitment the Navy, to doing the right thirig and having zero tolerance for improprieties. Ms. Smedlev received a Bachelor of Arts degree in International She feels fortunate to have worked for such leaders during the Relations from Goucher College in 1964 and did graduate work in course of her career. Business and Public Administration at George Washington One of the key challenges facing the financial community is to University. In recognition of hero work . .at DOE,z she received . . the. ways to support the programs and activities of the h~~~~~~fnd rank of Distinguished Executive in the Senior Executive Service in administration within the rules of sound financial management. This 1982; the DOE Meritorious Service Award in 1984 and 1990; the is particularly challenging when resources are scarce and when there rank of Meritorious Executive in the Senior Executive Service in are basic differences in priorities and philosophy bet een the 1988; the Secretary's Award in 1989; the Donald L. Scantleburv administration and the Congress. She believes that communication Memorial Award in 1989; and the Superior Performance Award in between field and headquarters financial personnel is critically 1989, 1990, 1991, and 1992. important to ensure all have current information and to discuss She attributes former Secretary O'Leary's commitment to total solutions to complex problems in advance. At the Department of qualitv management (TQM) as having a major impact on her career. Energy major field orgaizationseach have a CFO who reports Secretarv O'Leanr took all of her senior staff to Motorola both to the field office manager and to the headquarters CFO. Corporation to see how a major corporation benefitted from TQM. These men and women are all qualified financial management Ms. Smedlev was impressed with what she saw. Especially, a professionals and are responsible for proper stewardship of presentation by the Motorola Controller in which he described how resources. A monthly conference call, annual meeting and use of the company used TQM1 to reduce the time it took to close their email to disseminate information are some of the tools used to books at the end of the vyear, from thirty days to two. The promote communication. Currently, the Department is installing Department of Energy took 45 days to close its books. Ms. Smedley an Executive Information System which will make key financial and came back and personally conducted a mini-TQM training class for program data available across the department in a user friendly her entire staff. After the class, they held an idea day during which tormat. employees broke into their work groups and brainstormed ideas to The past 2 years have seen significant downsizing. The CFO improve the way they performed their work. These sessions resulted headquarters office has dropped from 285 to 210 people including in over 600 ideas for improving operations ranging from simple, low one reduction in force of 15 employees last year. In addition to loss cost improvements that could be done immediately to longer range in numbers, much valuable expertise has been lost as long term ideas. As ideas were implemented they led to additional ideas. This total innovation package led to a series of accomplishments which continued on next page. 5 JFtIP NEWS Fall 1997 employees accepted buyouts. During this same period, to quantify the extensive environmental clean up liability DOE headquarters took on additional responsibility by becoming one of faces. She indicates that her staff are currently hard at work on the three consolidated accounting centers for the Department picking FY 1997 statements and she is hopeful that the department will up work previously performed at four field locations. Ms. Smedley continue to receive clean audit opinions. said that automation has been very important in allowing her to make this transition. and to function at reduced staffing levels. One Ms. Smedley believes the budget process is too rigid and that of her major automation initiatives has been the adoption of Travel some barriers need to be removed if operations are to become more Manager software coupled with the mandatory use of the American efficient. DOE uses management and operating contractors to Express Card for airline tickets, hotels and meals and cash operate most of its sites. Under the auspices of the Financial advances. This has substantially reduced the audit of travel Management Systems Improvement Council these contractors vouchers from every 10th voucher to every 100th voucher allowing undertook a benchmarking initiative against each other and the best savings of over 7 FTEs at headquarters alone. It has also allowed in corporate America. This initiative indicated that DOE spends the Department to move to a paperless travel authorization and more than five times more than private firms for the budget voucher system and to reimburse travelers 24 hours after receiving function. One of the reasons this is true is the rigidity of the budget their voucher. process. One example was a problem DOE recently experienced with inadequate funding for security clearances. Because clearances Other significant activities include bringing together the more could not be processed, projects requiring cleared personnel were than 40 contractors who operate the Department's laboratories and delayed, overtime costs increased and inefficiencies resulted as weapons complex facilities in a Financial Management Systems cleared employees had to accompany uncleared ones during certain Improvement Council (FMSIC) to share best practices and work assignments. DOE would have Liked to be able to use some funds on common solutions to financial management issues, and from a project that would otherwise be delayed, to process the consolidating accounting activities, previously performed at clearances needed to move it forward, but since security clearances is nineteen offices throughout the country, into three centers of a separate category in the DOE budget, this wasn't possible. Ms. excellence. As a result of the consolidation effort, all payments are Smedley believes that the-only way to increase budget flexibility is to now made from 3 centers at a savings of S17 million and over 60 build an environment of trust with OMB and the Congress so they FTEs. will be willing to allow flexibilities which make sense. DOE has one advantage in that their budget and accounting structures are the Nis. Smedlev said DOE is about to look into what DOE same. o systems of the future should look like. The ongoing effort in standardizing the contractor's systems will be examined to look for relevance to this project, and the Department intends to address not onl' svstems needs but ways processes can be re-engineered to improve customer service and reduce costs. Cross training and professional development are particularly important in DOE's downsizing environment. DOE developed a Financial Management Development Program in 1991. This program provides a curriculum for Accountants, budget analysts, accounting technicians and financial managers. The curriculum includes formal course training, on-the-job development activities, selfsrudv initiatives and opportunity for rotational assignments and special projects. Certificates are issued to employees who complete one of the curriculums. She sees many employees completing the curriculum in their area and then working on a curriculum from another area to broaden their skills. Her office also sponsors a mentoring program. Currently 17 pairs of mentor-mentee are in place. She credits this program as a major factor in enabling her office to build new skills and transition employees out of dead end jobs, such as branch secretary, into jobs with career potential. It has been a major factor in her office's ability to manage under a total hiring freeze for the last two and a half years. DOE prepared its initial Department-wide financial statements for FY 1996 and received an unqualified opinion. An early start helped her department focus on processes and issues, such as how 6 Fall 1997 JFMIP NEWS News from FinanceNet F inanceNet is the Internet's home for government financial management released. One is accessible at fin- email@example.com and is a one-way worldwide and the JFMIP's distribution list only. Messages sent this clearinghouse for electronic financial address will consist of monthly updates and management documents. Some recent major changes and enhancements to FinanceNet include: FIn afleeN et \ t status reports on all pending legislation that may impact government financial management. Some of the reports will be prepared by the U.S. Chief Financial 1. World wide web (WWW) based, user Officers Council Legislation Committee. friendly access is now available to the newly The second public mailing list is created government newsgroups accessible at f (GovNews). A WWW browser can easily adn-operations@hnancenetgov read and post to over 200 government and is a moderated open discussion list that reagen andposttopical nvews200goverot the Online conferences on breaking topics targets the fill range of government need for a special newsreader and provides can now be created nearly "on the fly" with administrative financial management users with the best of both the WWW and discussions either open or password operations such as vendor payments, cash usenewith worl.bovt ews rapidl protected as requested. For details, contact management, travel, accounting broadcasts government information FinanceNet functions, financial reporting, management broadastsgov andmaencynormtion ueswt htp// fnnne ovianne/ controls, etc. Active participation in sharing organized by topic and agency, to users with http://www-financenet gov/financenet/ best practices, lessons learned, fresh access to the Internet. An International fed/cfo/forum.htm approaches and other topical information is GovNews project seeks to stimulate electronic access to public government 3. An expanded search routine using welcomed and encouraged. information and electronic "open "targeted" databases brings government To subscribe to any FinanceNet democracy" by establishing the framework financial management to the desktop. mailibe to aiy FinanceNet To for a dedicated government hierarchy on the Virtually all government financial pbi mail list vste Fae Internet's Usenet news service. management Internet sites and WWW mail list page at: documents are now fully indexed for your http://www.financenet.gov/financener/ A targeted search facility for the query and updated daily. Information from start/news.htm immense GovNews database is available at: all major federal government finance offices hcrŽ: /i.;.~w. tinarnceiet .govl firiancent/ and CFO websites is downloaded daily. and follow the instructions for each Click on a response to a query takes a user particular list. to the web server of the information. Access . . ~~~~~~~~~~A groupware document editing FinanceNet has its own special page of this search routine at: capability via the Internet will be available financial management ncwsgroups withincaaityvaheIertwi baalbe thnanciaewmanageent n r sthttp://www.financenet.gov/financenet/ soon that will provide the capability to the GovNexvs Project at: start/Fsearch.htm comment on and/or modify certain draft h.rr. '" inancenet.gov/financenet/ f/-wi 4. A new W gateway for documents and materials. _ ~z--/rr.-wsgp.ntm __ automatically subscribing to any of over 50 FinanceNet encourages all users to 2. Online interactive Web-based FinanceNet Internet mailing lists is available actively participate in these new, easy--to-- discussion forums have been added to many at: use services to share information and best FinanceNet organizational WWW pages. practces and use as research tools. t//www.financeneti.gov/financenet/ (Messages are posted to the forums after a http:/FinanceNet also is working on a financial user posts a message, presses the enter key start/sub.htm. management improvement incentive award and refreshes his browser screen.) Forums Mailing lists target financial to reward active participants in it various have been established for all CFO Council management topics and organizations, such communication tools. Committees and most organizations hosted as the FASAB and GASB. Many lists are For further information, contact B. by FinanceNet such as JFMIP, FASAB, set up to permit both distribution of related Preston Rich at (703) 306-1282, or GASB, AAPC, and others. WWW archives news and information and discussions of firstname.lastname@example.org. o of many popular FinanceNet exploder lists breaking topical or organizational issues. are now available in this same format. The rate of subscriptions has more than doubled and now totals over 30,000. Two new public mailing lists have just been 7 JFMIlP NEWS Fall 1997 FASAB Update Highlights of FASAB actions taken at proposing to redefine as National Defense standard providing specific reporting recent meetings are as follows: PP&E. At earlier meetings, the Board had requirements and data sources. The Board proposed that National Defense PP&E felt that the reporting classifications are Awuust 29 Meeting include only weapons systems used by sound and that the illustrative report would Issuance of Interpretation Number 3 military departments solely in performance provide a good sample report to include in Pension Measurement Date of their military missions, and the Maritime the soon-to-be-issued technical amendment Administrations's Naval Defense Reserve exposure draft to SFFAS 6, Accounting for The Board approved its third Fleet ships. The Board's discussion centered Property, Plant, and Equipment and Interpretation of Federal Financial on the definition of National Defense PP&E SFFAS 8, Supplementary Stewardship Accounting Standards, Interpretation and addressed specific items that should be Reporting. The Board feels that continued Number 3: Measurement Date for Pension included or excluded from the category such work by the Department and comments on and Retirement Health Care Liabilities. The as munitions, Coast Guard vessels and the exposure draft could be used to finalize interpretation provides that liabilities for aircraft, and government furnished material. the illustrative report that would appear in pension and retirement health care will be The Board will be issuing draft language the final recommended standards measured as of the end of the reportin h or imb isigdatlnug perioda but mas be based on an actuarial related to the proposed changes to Social Insurance valuation performed as of an earlier datePPE for public during the reporting period with suitable comment. An exposure draft is expected to The Board discussed (1) whether to adjustments fortheg peffectsof changes during be issued before December 1997. establish definitive criteria for social adjustments for the effects of changes during isrneporm insurance programs orrEtteseii list the specific the y'ear in major factors. Septemnber26 Meetin programs included in the standard, and (2) ~Nativunal Scienre Feou~ndtion Request fir Guidance Board Defers Implementation of Cost which programs, in addition to Social Security and Medicare, should be covered bv Both the Chief Financial Officer and the Accountig Standards the standard. The Board discussed whether Inspector General of the National Science After discussing responses to the the standard should provide definitive Foundation requested guidance from the exposure draft issued following a request criteria, or list the specific programs covered FASAB on applying SFFAS 6, Accounting from the Chief Financial Officers Council and describe rypical characteristics. The for Propertl Plant, and Equipment, to for a two year deferral of the effective date Board agreed that the standard should property, plant, and equipment (PP&E) of the standards prescribed in SFFAS 4, describe "charactestics" rather than try to acquired and/or used by grant awardees but Managerial Cost Accounting Concepts and set definitive "criteria." The Board agreed for which the National Science Foundation Standards for the Federal Government, the on six characteristics for social insurance holds title, but for which it is prohibited by Board decided , albeit reluctantly, to defer programs: law from controlling or operating. for a one year period the etTective date of (1) Sponsorship and regulation by the Specifically, thev asked whether the the standards prescribed in SFFAS 4, Federal Government. provision regarding "reversionary interest" Managerial Cost Accounting Concepts and (2) Financing from, or on behalf of, in PP&E applies in specific types of the Standards of the Federal Government. This participants. National Science Foundation's grants or decision will change the date from FY 1997 operations. After discussion the Board to FY 1998. The Board did not defer the (3) Eligibilitv derived from taxes and,'or asked the FASAB staff to do further research effective date of Interpretation No. 2, fees paid. on the issues and present possible Accounting for Treasury Judgment Fund (4) Benefits not directly related to taxes approaches for resolving the basic question. Transactions. Interpretation 2 is effective in and/or fees paid. The discussion on this request for FY 1997. (5) Benefits prescribed in law. guidance continued at the September DeparonentofDefnse Presents Illustrative (6) Intended for the general public and not meeting, discussed below. Repor on National Defense PPC.tE solely for Federal employees. Technical Corections to SFFAS 6 and SFFAS 8 Board member Nelson Toye and the The Board will list in the standard the Considered Department's Director of Accounting specific programs covered, and will provide Policy, De Ritchie, presented the for any further additions of programs to the Members continued their discussion on Department of Defense's suggestion for an List; decisions on inclusion will not be at the the proposed definition and reporting illustrative stewardship report. Mr. Tove discretion of the agencies. requirements of Federal Mission Property, suggested that such an illustrative report Plant, and Equipment (PP&E), the category could convey the reporting requirements of Other issues discussed included (1) of stewardship PP&E which the Board is the standard in lieu of the text of the which programs, in addition to Social 8 Fall 1997 JFMIP NEWS Security and Medicare, should be included operating costs of the asset; (3) who gets probable and estimable; and (3) preparation in the social insurance standard and (2) the economic benefit from the asset; or and audit of interagency confirmations. reporting improper payments. (4) who holds title to the asset. Members generally agreed that, although some In early August, the Accounting and Additional Programs guidance to the National Science Foundation Auditing Policy Committee (AAPC) is in order, a special interpretation should provided guidance to members of the Chief The Board agreed to include Railroad not be issued at this time. Instead, the Financial Officers Council and the Retirement and Black Lung Benefits in the language of the PP&E standard should be President's Council on Integrity and social insurance standard. The Board also further examined and may need clarification. Efficiency on submission of issues to the tentatively agreed to include Unemployment FASAB staff will further research the issues AAPC. This guidance provides that matters Insurance, but directed the staff to develop and present possible approaches for resolving may be referred to the AAPC by its alternative supplementary stewardship the question posed by the National Science members: OMB, GAO, Treasury, FASAB information on Unemployment Insurance Foundation. Board members, Federal agency CFOs or for the Board's review before making a final Deputy CFOs, IGs, or other interested decision For additional information on FASAB, parties. Submission or referral of an issue to contact Dick Tingley, (202) 512-7350. the AAPC should be addressed to the AAPC Reporting Improper Payments Chairperson, Ms. Wendy M. Comes at: During its first comprehensive audit of Accounting and Auditing Policy Committee c/o Medicare records, the Inspector General of the Department of Health and Human Acco unt ing and Federal Accounmig Standards AdvisoLy Board 441 G St., N.W., Suite 3B18 Washington, Services sampled 5,300 claims, finding Auditing Po Ii cy D.C. 20548 problems with 14 percent of the payments ($23 billion). The problems ranged from a Committee SeptemberMeeting lack of documentation (47 percent) and At the AAPC's September 12 meeting, improper coding, to fraud. The Board members discussed the following issues: realized that the scope of this issue is much July and August Meetings * Who should be the source of legal larger than Medicare. Therefore, if the representation for matters involving the Board were to address the issue of improper As a result of the discussions at its July Treasury Judgement Fund and litigated payments, it should be done outside of and August meetings, the Accounting and by the Justice Department on behalf of social insurance standards The Board Auditing Policy Committee (AAPC) other federal agencies? agreed that reporting of improper payments approved both its Charter and its Operating would provide performance and Procedures. The Charter includes the The Committee reviewed draft management information and that such following mission statement: guidance for agencies on legal representation information could improve control over ietters. l Primarv concerns were that current payments throughout an agency and assist mission of the ipoge systems (databases) for tracking litigation the auditor. The Board agreed that the the Federal Government in improving handled by the Department of Justice are scope of such a project would be complex, financial reporting through the timely not adequate. In addition, internal controls but that the issues would be researched. identfication, discussion, and at each agency may not result in reliable and recommendation of solutions to accounting complete case listings. The Committee Exposure Draft and auditing issues within the framework of generally agreed that each agency's General existing authoritative literature." Counsel should take the lead. The Board anticipates issuing an aWa rtrasol eue o exposure draft on social insurance standards The Charter and Operating Procedures What criteria should be used for by the end of the calendar year. address topics such as selection of members, determining when it is probable and tenure, voting, and issue processing. Both reasonably estimable that a liability National Science Foundation Requestfor documents are posted on the AAPC's home exists for environmental cleanup costs Guidance page: for past transactions or events? As a continuation of the discussion from http://www.fir.ancenet.go/fed/aapc.htm The Committee reviewed and gave the previous month's Board meeting, the The AAPC approved three issues for its tentative approval of guidance on focus at the September meeting was on agenda: (1) responsibility for providing environmental liabilities. It was agreed that whether the accounting and reporting entity legal representation letters; (2) determining the document wil be circulated to AAPC for the PP&E should be based on (1) who whether environmental liabilities are controls the asset; (2) who picks up the conted on nextpag. 9 JFMIP NEWS Fall 1997 HUD's FY 1996 Accountability Report T he Department of Housing and Urban Development (HUD) published its FY 1996 Accountability non-conformances with Federal requirements, and audit recommendations of the Inspector General. By participating objective. Most of this information is provided by the various program offices, based on guidance from the CFO office. In Report in mid-April, 1997. HUD in the pilot program, HUD was able to future reports there will be a significant tie- was one of eight agencies participating in a summarize this information in its in between this information and the pilot program to enhance reporting of Accountability Report. This helped HUD requirements under the Government financial information. The objective of the streamlined the reporting process and saved Performance and Results Act of 1993. The pilot program is to determine an effective time and resources. Financial Management Accountability way to integrate reporting of financial section includes a summary of the information, normally included in several The Accountability Report serves as information previously included in separately issued reports, into one "one-stop shopping" for a reader to gain a separately issued reports such as those Accountability Report. The FY 1996 report good overall understanding of the required under FMFIA, the Debt Collection was HUD's first such report. The FY 1997 Department, including its mission, Act, Prompt Payment Act, and Civil report will be the final year of preparing objectives, significant programs, program Monetary Penalties Act. The last section Accountability Reports under this pilot and financial performance, and status of consists of the financial statements, program. internal control weaknesses. Prior to the footnotes, and auditors' report. Accountability Report one had to review In past vears, the Office of the Chief several reports to obtain this same A copy of the FY 1996 report can be Financial Officer (CFO) at HUD spent a information. ordered by calling 1-800-767-7468 and great deal of time in producing the greaots rqieunethFeeaMagrsinformation annual HUD's report is broken down into three requesting item number on the 04188. report, contactFor more Larry reports required under the Federal Managers major sections. The first section is the Green, (202) 708-0831, extension 3710. 3 Financial Integrity Act (FMFIA), and the Discussion and Analysis, organized by Secretary's Semiannual Reports to Congress. Departmental objectives, discusses the These reports included detailed information program and financial performance on the status of material weaknesses, svstem information which contribute to each ALAPC corninued frotm previous page members for a fatal flaw review, to FASAB OctoberAeeting The AAPC discussed a status report on for approval, and then to OMB Estimation of Undocumented Property, What schedules should be established The AAPC reviewed the draft guidance Plant, and Equipment Costs. Members for preparation and audit of interagency on legal representation letters and a progress considered alternatives for providing confirmations of audit assurance? report on resolving the completeness/ assistance on this issue. Thev noted that, internal control issues. It was noted that although the FASAB standards are clear Committee member Bob Dacey, GAO, timeliness is an issue and Xvho should deal regarding flexibilitv to use estimates in the reported on progress in working with the with the timeliness issue. Tentative absence of documentation, the valuation of Office of Personnel Management and the approval was given to a draft bulletin. Final existing PP&E presents a challenge to many Social Securitv Administration. Procedures action was deferred until after meetings are agencies. It was decided that the AAPC for audit assurance should be obtained on held with Department of Justice on would sponsor a one-dav (or longer) forum pension expense. Agency consensus should resolving the completeness issues. as soon as possible on selected issues and be obtained. The AAPC will leave this item Committee members reviewed draft case studies related to this PP&E issue; also, on its agenda as a long-range issue and guidace o emers les. S a white paper should be developed which obtain interim progress reports. vgidane on eironmena iproable would identify "best practices." A working legal Issues were discussed; "probablelebycmiteebrTd The AAPC added the following issue to liability" is not necessarily the same as "legal group ld by co te Derte its agenda: When documentation to liability." Committee member Bob Dacey, Agriculture, is coordinating this effortm support the cost of general PP&cE is not GAO, will make necessary changes and available, what acceptable alternatives are resubmit the guidance to AAPC for final For additional information on AAPC, available to arrive at a value for financial approval. contact Wendy Comes, (202) 512-7350. o reporting purposes? 10 Fall 1997 JFMIP NEWS FACTS 11 Collecting Budget Execution Data Electronically T he Office of Management and Budget (OMB) and the Department of the Treasury's Financial that will underlie the FACTS II computer system. The subcommittee members included: Jeff Hoge and Judy Yuran, FMS; For FMS 2108 and SF 133 reporting, there are no more than half a dozen attributes used in conjunction with a single Management Service (FMS) have Jean Holcombe, OMB; Damon Sutton, SGL account. reamed up on a project called FACTS II to HHS; Betty Beard, HUD; Dave Mielke, collect a single set of year-end budget NASA; and other agency representatives Mr. Fairhall described the data execution data from Federal agencies in from AID, DOD and Education who made model, as well as crosswalks between the November 1999, rather than continuing to contributions on a periodic basis. model and the FMS 2108 and SF 133, to collect data separately on the FMS 2108 members of the CFO Financial Systems Year End Closing Statement and the SF 133 The premise behind the model is that Committee on September 22. The data Report on Budget Execution. U.S. Standard General Ledger (SGL) model and crosswalks will be placed on the accounts are critical to describing financial Internet by early October. The web address FMS is seeking volunteers to participate information, but they are not the only piece is: http: //www. financenet.qov/ in pilots that will take place starting in the of data that agencies need to capture to financenet/fed/omb/factsii . htm Summer of 1998. Please contact Jeff Hoge, satisfy OMB and Treasury budget execution FMS Financial Standards and Reporting reporting requirements. The Subcommittee For additional information, please Branch on (202) 874--6179; or email reviewed each line item on the FMS 2108, contact Chris Fairhall, (202) 395-4836, or JeffHoge@FMS.Sprint.Com . SF 133 and P&F Schedule, and asked email email@example.com. o whether the information being requested The first key milestone for FACTS II, could be answered from a SGL account which was completed in September, is a balance, or whether additional attributes logical data model that describes in detail were needed to respond to OMB and the financial data that agencies need to Treasury requirements. capture in their core financial systems to The model identifies about 20 meet OMB and Treasury year-end reporting The needen coution requirements as described in the FMS 2108, attn utes that are needed in conjunction the SF 133, and the Program & Financing with SGL accounts. Some of these include (P&F) Schedule published in the President's credit cohort, which is used for reporting of Budget. In addition to describing the direct and guaranteed loan financing financial data reported by the agencies, the accounts; reimbursable flag, which is used model shows how these data relate to to distinguish between reimbursable and Treasurv's central accounting system, STAR, direct financial iformaton; appoonment and to the President's Budget. category, i.e., Category A, Category B, or not subject to apportionment; and, oMB continued from page 3. Chris Fairhall, a project manager from availability indicator, which indicates with FFMIA in the areas of financial the OMB Budget Review and Concepts whether a budgetary resource is available for systems requirements, federal accounting Division who has been involved in the obligation in the current period, will be standards, and standard general ledger at FACTS II for the past year, stated, 'What available in a subsequent period, or is the transaction level. The we are attempting to do in a broad context unavailable. implementation guidance also explains is integrate budget formulation and budget M.Hoge of FMS points out that the relationship between FFMIA and we will dramaticaldegreewe can do this, not all attributes are used in conjunction Section 4 of the Federal Managers' burdens for agency financial and budget with all SGL accounts. "It is really a mix Financial Integrity Act. Offices, improve the qualiry and consistency and match paradigm," he says. "If you look The guidance is available on of financial data that agencies report to at reporting of obligations incurred on an FinanceNet at: OMB and Treasury, and improve budget SF 133, agencies are required to distinguish http://www.financenet.qov/fed/ estimates." Category A from Category B apportionments. cfo/c fodocs/inpn9o2 .htmr. For What this means is that when agencies additional information, please contact Over the last year, Mr. Fairhall led an report undelivered orders and other SGL Jean Holcombe, (202) 395-5048. o inter-agency group (the Budget and accounts recording obligations, they also Accounting Classification Structure need to tell us what the apportionment Subcommittee of the Standard General category is." Ledger (SGL) Board's Issue Resolution Committee) in developing the data model 11 JF.VP NEWS Fall 1997 Regulation Proposed on Taxpayer IGs Issue Journal Identifying Number of Public Inquiry T he taxpayer identifying number (TIN) is a nine-digit identifier collection by offset and vendor income reporting. A 60-day comment period ends he Journal of Public Inquiy is a semi- annual publcation by the Inspectors required of all individuals and November 3. The proposed rule requests General of the United States. businesses that file tax returns in the agencies to specifically comment on: Articles in this journal are of interest United States. For businesses and * The status of agency compliance with to members of the President's Council on organizations, the TIN is the employer the requirement of the DCIA to furnish Integrity and Efficiency (PCIE) and the identification number (EIN) assigned by the TINs with each certified voucher and Executive Council on Integrity and Internal Revenue Service. For most actions planned to achieve compliance. Efficiency (ECIE). The PCIE is a council individuals, it is the Social Security number * Issues anticipated in connection with of the Inspectors General from 24 largest (SSN). For certain aliens ineligible for a furnishing TINs for any specific class or departments and agencies in the federal SSN, it is the individual taxpayer ty of payments or pages. chaired by the Deputy identification number (IT>N) assigned by governmentrchairedmbytthefDeputy the IRS. * Issues anticipated due to the rejection Director for Management, Office of of payment requests which do not Management and Budget. The ECIE iofTNisacrticaideti den foreespcich o cs nor consists of the Inspectors General from The TIN is a critical identifier f'or include TIs for any specific class or other federal agencies. matching payment requests with debtor type of payments or payees. information -for the collection of delinquent * Issues regarding foreign currency Some of the articles in the Summer 1997 debt by administrative offset under the payments, or payments to foreign issue include: provisions of the Debt Collection governments, foreign nationals * IG Gate-Investigating Major Scandals: Improvement Act of 1996 (DCIA). The employed overseas, or other specific Climate That Leads to IG Handling DCIA (Public Law 104- 134, enacted on classes of payees overseas. Customer Dissatisfaction Apnl 26 1996) requersons doing business Disbursing official readiness to reject * GPRA: A Catalyst for Enhanced with them (31withU.S.C. hem7701 U..C. (1 (c) 701 () (1)) (1) and andTINs payment andrequests which dotonot actions planned include achieve Federal Management Processes requires executive agencies to provide TIiNs readines.* Congressional Oversight: The 10 Do's to disbursing officials (31 U.S.C. 3325(d)). readiness.for Inspectors General The TINs will be used to reduce or FMS is working with agencies to ensure * The Truth About Cats and Dogs: The withhold an eligible Federal payment to pay that the Federal Acquisition Regulations Auditors and the Investigators the recipient's delinquent debt owed to the (FAR) and the Prompt Payment Circular United Stares or to collect delinquent debts are compatible with provisions of the DCIA * The Urge to Merge: OIG Semiannual owed to States, including past-due child and the proposed rule. The proposed rule is Report/Agency Accountability Report support. Federal agencies need TINs to available on the FMS home page at * The Art of the Referral: Presenting comply with vendor income reporting http://www.fms.treas.gov/regs.html. Cases to U.S. Attorneys requirements under the Internal Revenue Code. For additional information, contact * Cyber-Crackers: Computer Fraud and Catherine McHugh, at (202)874-7497 or Vulnerabilities. On September 2, 1997, the Financial firstname.lastname@example.org, or The Journal can be found on IGnet Management Service, Department of the Barbara Wiss, at (202)874-7491 or Treasury, issued a notice of proposed email@example.com. a (http://www.sbaonline.sba.gov/ignet. For rulemaking that would require disbursing more information, contact Agapi officials to reject any executive agency Doulaveris, (410) 966-9135. o payment request that does not include the TIN, beginning six months after publication of the final rule. The proposed rule is intended to ensure that agencies provide TINs to disbursing officials for debt 12 Fall 1997 JFMIP NEWS Treasury Issues Report on Developing Financial Systems THE CENT ER FOR APPLIED FINANCIAL MANAGEMENT n June 1997, Treasury's Financial and CIO decision-making authority within Systems Integration Committee (FSIC) each bureau; and (4) Identified and issued a report identifying administrative recognized practices that lead to clearer, and functional actions and outcomes more effective decision-making. Nober 1997 related to financial systems development. FSIC was established to survey Treasury Functional actions recommended are: 20-21 Budget Execution: $335 departmental offices and bureaus and (1) Develop a strategy and methodology for recommend ways for Treasury to (1) create delivering and implementing integrated December 1997 fully integrated financial systems; and systems; (2) Prepare a set of integration 2-3 Managerical Cost Accounting: $365 (2) improve financial systems decision- evaluation criteria for all new and existing 4-5 Property, Plant and making in the Treasury CFO and Chief systems for assessing their impact on Equipment/Stewardship Reporting: Information Officers (CIO) communities, financial systems; and (3) Define common $365 core data elements through the creation of a Integral to this effort were surveys data dictionary and/or data administrator. 8-9 Dollars and Sense: $335 conducted to identify how financial systems Functional outcomes expected are: (1) were developed both within the department Updated and consolidated Departmental January 1998 and at other agencies. Those surveys asked guidance for developing integrated systems 12-13 Accrual World: $335 (1) How do organizations choose and published; and (2) Overwhelming number 13-14 SGL: Basic: $335 prioritize new or enhanced financial of current directives regarding the systems?, (2) Who authorizes and directs development of financial systems in 14-15 SF 224 Statement of Transactions: 'inancial systems development?, (3) How Treasury reviewed and streamlined into $335 should financial systems development brief process oriented guidelines bound in 15-16 SGL: Advanced: $335 change so the decision and approval change so the decision one approval andeasy-to-use document for IRB use. ~~~~16 Reconciling Differences: $195 processes encourage better systems FSIC recommended that Administrative integration?, and (4) What roles do the and Funconal subgroups be created to 27-29 Survey of FASAB: $440 CFO and CIO Councils have in financial assist it, with some common membership, 27-28 SF 1219/1220: $335 systems development? that would lead to fully integrated financial 30 Certifying Officers: $195 FSIC recommended 3 administrative systems and an approval process with actions: (1) Define the role and authorities widespread support throughout Treasury. To register for The Center courses, call of Bureau information resources boards in The report contains responses to the (202) 874-9560, check the website relation to established financial investment survey by both Treasury bureaus and other www.fms.treas.gov/center/, or submit an thresholds, the shifting of financial and federal agencies and diagrams of the systems SF- 182 to: human resources, and the overall Treasury development processes. etrr Information Resources Board; (2) Establish egThe Center for Applicd Financial an ideal role for the CFO in the overall Manageietnt systems development process as a member Washington, DC 20006 o of the IRB; and (3) Integrate the annual planning and budgeting cycle with the functions of the CFO and CIO Councils and IRBs. Administrative outcomes expected are: (1) Defined decision-making roles for the CFO and CIO Councils for integrated financial systems; (2) CFO and CIO involvement with all systems development efforts so the impact on all processes throughout the agency is clearly understood; (3) An evaluated and communicated level of appropriate CFO 13 JEMEP NEWS Fall 1997 T GAO Reports Improvements Needed In Draft Agency Strategic Plans he General Accounting Office (GAO) recentlv issued a report to the House Majority Leadership stating that draft GAO found that a significant amount of work remained to be done by executive branch agencies if their draft strategic plans are to fulfill agencies' ability to achieve strategic goals. agency strategic plans need sustained the requirements of the Results Act, serve as attention if agencies are to develop the dynamic a basis for guiding agencies, and help plans the identification and planned strategic planning processes envisioned by the congressional and other policymakers make coordination of activites and programs strategic,. that,,cut ..... across multiple agencies. GAO Government Performance and Results Act decisions about activities and programs. All has recently reported that mission (Results Act). The report: Managing fir 27 draft plans included the required mission fragmentation and program overlap Results: Critical Issuesfor linpraoing Federal statement; however, 21 plans lacked one or fragm e ad program therlap Agencies' Strategic Plans (GAO/GGD-97- more of the other required elements and appear widespread throughout the federal 180) was issued September 16, 1997. GAO over one fourth lacked three or more. For goverment. GAO noted that nteragency plans to issue another report in November example, two plans did not contain long- that crosscutting program efforts are 1997 on the final version of these strategic term strategic goals, and six did not describe mutually reinforcing and efficiently plans. approaches or strategies for achieving those implemented. However, 20 of the draft goals and objectives. strategic plans lacked evidence of The Results Act requires agencies to GAO also identified the following interagency coordination. Congress and submit these plans in final critical strategic planning issues in need of 5. GAO's work suggests that the questionable form to Congress and the Office of Manage- sustained attention: capacity of many agencies to gather ment and Budget (OMB) bv September 30, 1. Most of the draft plans did not adequately performance information has hampered, 1997. The GAO report (1) summarizes link the required elements. For example, and may continue to hamper, efforts to GAO reviews of the latest available version some plans did not consistently describe identify appropriate goals and confidently of the draft strategic plans that were submitted the alignment between an agency's long- assess performance. For example, the lack to Congress for consultation by cabinet term strategic goals and objectives and of reliable data to measure the costs and departments and selected independent the strategies planned to achieve those results of agency operations has been a agencies and (2) identifies the strategic planning goals and objectives. Nineteen plans did long-standing problem for agencies across issues most in need of sustained attention. not describe the linkages between long- the federal government. Moreover, term strategic goals and annual agency officials with experience in In performing its work, GAO used the performance goals. performance measurement cited Results Act supplemented by OMB's 2. Long-term strategic goals often tended to ascertaining the accuracy and quality of guidance on developing the plans (Circular have weaknesses. GAO said the intent of performance data as 1 of the top 10 A- 11, part 2) as criteria in determining the Results Act is for agencies to focus challenges to performance measurement. whether the draft plans complied with SiX their strategic goals on results to the 6. The draft strategic plans did not adequately specific elements required by the Results Act. These elements are: (1) a ILX extent feasible. However, GAO found address program evaluations. For Act. These Sagelements are (te)s a that several plans contained goals that example, 16 plans did not discuss program ,. compreobjc s were not as results oriented as they could evaluations and the discussions of program (2) agencAv-lvde (2)long-term lng-term agcnvxvidegoals oals and objectives andhave a been. In addition, several plans also evaluations in the remaining 11 plans for all major functions and operations; contained goals that were not expressed lacked critical information, including the (3) approaches (or strategies) and the vanous resources needed to achieve the goals and in a manner that would allow future lack of descriptions of how evaluations objectives; (4) a description of the relationship assessments of whether they were being were used in setting strategic goals and between the long-term goals and objectives achieved. Further, in three plans, long- schedules for future evaluations. GAO and the annual performance goals; (5) an term goals were not developed for major said evaluations are important because identiicatio ofkyatfunctions or activities. they potentially can be critical sources of identificatioll of kev factors, external to the agency and bevond its control, that could 3. Many agencies did not fully develop iformaton for ensurig that goals are significantly affect the achievement of the strategies explaining how their long-term reasonable, strategies for achieving goals strategic goals; and (6) a description of how strategic goals would be achieved. For are taken in tham implemenation. program evaluations were used to establish or example, GAO found that each of the a t i revise strategic goals and a schedule for plans could be strengthened if the sections For copies, call (202) 512-6000 or an future program evaluations. To make on strategies included, among other things, electronic version is available on GAO's judgments about the overall quality of the specific actions, planned accomplishments, Intemnet web page at http: //www.gac .gov plans, GAO used its May 1997 Guide, Agencies' and implementation schedules. Also, the Strategic Plans Under GPRA: Kev Questions plans for most of the 27 agencies did not to Facilitate Congressional Review reflect strategies for addressing key manage- (GAO/GGD- 10. 1.16). ment challenges that could affect the 14 Fall 1997 JFMEP NEWS Inspectors General Issue Internet Site for Human Progress Report to the President Resources Management T he Vice Chair of the President's Council on Integrity and Efficiency (PCIE), June Gibbs Brown, and the Vice Chair of he U.S. Office of Personnel Management has a website for human resources management that contains data that ranges the Executive Council on Integrity and Efficiency (ECIE), * from Accountability to Worker-Trainee Programs and Thomas D. Blair, released its fourth joint annual report of the Weather Dismissal Procedures It is but a few mouse clicks PCIE and ECIE. This report highlights the accomplishments of the awa atht e :r/ . It but a f o c Federal Inspectors General (IGs) during Fiscal Year (FY) 1996. This site is designed to provide a ready reference for federal Based on recommendations from the IGs, agency managers personnel offices. It allows them to obtain the latest information and agreed to change their spending plans for $15.1 billion, which can policy guidance on issues and programs that affect federal employees. now be put to better use. Also as a result of IG recommendations, Employees can access this site to find answers to common questions managers agreed to cancel or seek reimbursement of over $5.5 billion about federal personnel programs and policies. in questioned costs. Some of the information that can be found on this website are IG investigations in FY 1996 resulted in the recovery of more listed. than $1.1 billion from companies and people who defrauded the Federal government. IG investigative work resulted in 12,508 * Annual Review of Special * Health Insurance successful criminal prosecutions of wrongdoers and 4,633 debarments, Salary Rates exclusions and suspensions of firms or individuals doing business Holidavs, Federal with the Federal government. * Application Forms Government * Buvout Guidance * Jobs During the past year, PCIE and ECIE committees explored issues of common interest and concern, including a survey of the Offices of * Career Transition Open Season Health Inspector General on their involvement in Government Performance Assistance Benefits and Results Act activities and finalization of a governmentwide * Civil Service Retirement * Reimbursable Services "master contract" that all IGs can use for their independent public System V . accountant contract needs. The PCIE's Audit Committee is updating C iVeterans . Felriormed and the 4udit Peer Review MAanual, which will incorporate recent changes CaCombined Federal Servlces to the Gm'ernmenrtAudit Standards and improve the quality and Campaign Voluntary Separation completeness of future peer reviews. * Computing Retirement Incentive Program Guide o Benefits (CS RS) This committee also established a task group to revise the PCIE Besbiits JosR fo Federal Financial Statement Audit fanual in response to changes Persons with mandated bv recent legislation. * Disabled Veteran's The Inspection and Evaluation Committee issued a July 1996 Employment report on Accountabilityfor Block Grants that documents existing provisions for accountability in the 13 Federal block grant programs. The review identifies general accountability concepts, discusses * Electronic Forms specitic issues concerning block grant statutes, and suggests ways to * Employee's Guide to inodifih existing block grant programs to improve their accountability. Buvouts Under Public Law The Inspection Roundtable worked closely with the directors of IGnet to develop a library of inspection report abstracts for public 104-208 reference via the Internet, and created a training resource on IGnet to * Employment Information help inspection personnel identity worthwhile training opportunities. * Executive Schedule The Professional Development Committee hosted several forums positions covering a wide variety of technical and management topics with * Family Medical Leave Act professional educations credits. These topics included: "How IGs * Federal Employees Confront Change," "The Office of the Future" and "IGs and Chief Retirement System Financial Officers: Coming Together in Changing Times." * Federal Executive Boards This report is available on IGnet http://www.sba.gov/ ignet 3 * Federal Salary Tables 15 JFMIP 27th Annual he foowings contribauttko thise: Change of Address? Financial Write toJFMTP News at: Managem ent Susan Alvarez . . . . . . . . . Treasury-FMS Room 31 11 441 G Street NW Conference Wendy Comes .FASAB Washington. DC 20548-0001 Agapi Doulaveris . . . . . . . . . . . . SSA or call, 202/512-9209 The Joint Financial Management Chris Fairhall.. .......... OMB Improvement Program's 27th Annual M TheZ News is published quarterlv Financial Management Conference will be Larry Green .. HUD TheJ.M.Newispublshedquarerl held Mlarch 25, 1998 at the Washington by the Joint Financial Management Hilton and Towers Hotel, 1919 Jef Hoge ........... Treasury-FMS Improvement Program. The purpose of the Connecticut Avenue NW, Washington, DC. Jean Holcombe .0.... . .MB ..... . newsletter is to promote sharing and The conference theme is: Vision to Janet Laytham ......... . . . . Labor dissemination of current financial Reality: Change, Implementation and Results. Speakers and panel sessions will be Dave McClure ..... . ...... . GAO management information, activities and announced in future issues of the JFMIP News. Catherine McHugh ...... . Treasury-FMS practices. Mark your calendar for March 25, 1998! c Diane Miglori ........ . Treasury-FMS Suggestions and article submission are Preston Rich .NS . NSF F. encouraged and may be sent to JFMIP Alan Stapleton .GAO News at the above address, fax 202/512- Glenn Sutton .. . .. OPM 9593, email kietzb firstname.lastname@example.org -Dick Tingley...... FASAB .. ...........Editor: Doris A. Chew Soliciting .... Bernie Trescavage .J.M. .. JFMIP Publications Specialist: Bruce W. Kletz Kathy Wood .GSA US General Accounting Office Bulk Rate ., jjEMIP Postage &Fe-es Paid GO 441 G Street NW Room 31 11 Washington, DC 20548-0001 Official Business Penalty for Pnvate Use $300 MARK YOUR CALENDAR JFMIP Annual Financial Management Conference March 25, 1998 Vision to Reality: Change, Implementatton and Results
JFMIP News: A Newsletter for Government Financial Managers, Fall 1997, Vol. 9, No. 3
Published by the Government Accountability Office on 1997-01-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)