J o i n t Financial M a n a g e m e n t Improvement Program A Newsletter for Government Financial Managers Spring 1999 Vol. 1 1. No. 1. ping is a beautiful season in 1996 to 1998, with a slxcial awarci in Washington, IX, aru.1 there are many recognition of his many Fo\‘er”i”“e”t\~‘icle activities here with the tourists during contributions. ~~nfiratul3tioIis again for well cher ry blossotn festival, ancl the deservccl awarcls to each of you! txavers that V.‘Ctx chopping down r-he Progress is being ma& in &fining curre0t trees! (until they got II’ milcstoncs to improve sutxiclinty , svstcm . requirements. In April caught anti Fecteral financial syXems. The major 1999, JFMIP reissued ~uruz~~ Iicsnrt~~~ C? relocatecl) . The elements of the CFO (Xturicii’s stratcg to 1+~111 .J:wtems Rcqthwuc~~ts. The J I+‘,\1I I” t;edeeral ~overIlnleilt improve Federal financial systems are: (1) ciocument institLttionalizes the \vork of the is working on man) update or develop JFMXP financial system Human Kcsources Technology <:ouncil in activities in the requirements for the entire scope of financial cstahlishing hasctine niandaton~ reqttircmcnts financial management systems; (2) separate the core financial system anti incorporates Value a&led requirements arena this spring. SofhVnre qualification 1xxKess from the that &scri tx the Fe&t-al &rcction to achic\rc Agencies have Karen Gleam Alderman procurement process, and ilevelop a robust modern svstcms. Human resow-cc systems cornpIe& the pocexs Ewcu tire Ihktur, JFMII’ and open testing and qualification process to must in&grate or interface \vith pa~rotl of their audited assure that venclor soft\lwc complies with systems. The rcissucLt clocumcnt .tlso brings financial st;ltemtxlts. functional requirements; (3) eliminate policy payroll requirements up-to-date. JFMII’ The L3epartmentofthe Treasury, the Ofice of requiremenh for a scfnratc manciator) salutes all the stakcholciers in this initiatilrc for Management anil Ruclget, ancf all Fe&rat schedule for core financial systems software bringing this effort to the finish tine. agencies, with the General Accounting Office anti simplify the procurement process; (4) WC are moving out on scxu-al other finished the production of the second au&xi establish a web-baseci “kno~vltxigel~we” to functional areas. Comments have Lxx71 Consolictated Financial Statement of the inform and educate government ad vendor receiveli on the esposurc Jrafts for Dirwt Federal government. New initiatives are stakeholclers; and (5) establish a Program 1,oans ntxl Tra\~l System requirements. Thcw coming to life, including the National Management Office (PM<)) uncicr JFMIP to \Vitl be nnalweci aiicl revisions ma& in the ric’x Partnership for K emventing Government develop anti maintain these toots on behalf of future. Esposurc drafts for Seized Propert). sponsored “Access America for Students” the Federal CK3 community. Major and Forfcitcd Assets System Requirements program. Starting in June 1999, Access accomplishments and future goals are ancl ~~unraiiteed I,onns Svstcm Recluiremcnts America for Students will test the use of presenteci 1x10~~. xvi11 Lx issueci this spring. Work continues on infbrma~ion technobLy to make a wide range the de\&~ptTlctlc of Grallts Swtct11 of information and Fecierat program &liver) the “Wheel of Fortune.” JFMII’ reissued CWE reqnircmcn~. The CYO Fcllon~s f&n the accessible to stuient-s anLt a&uitlistrators at E;i~~a~~cial~~~sfm Requirerm3itsoti February24, Class of 1998-1999 are playing a special role ten ectucational instittttions. These initiatixs 1999, almost one year after the steering group in the grants system clevetopnietit &ort unckr as \vett as others were presente6 at the 28th led by I<. Schuyler T,eshcr, C%air of the <X-W the lea&rship of Al Muthtwxr, the 13cpt! Annul JFMII’ Conference, “The Future is Systems Committee; Jean Holcomlx, OMB, CFO at the National Science Foun&tion. No\v-Iml~lementing Financial Management the JFMII’ Exccutivc 13irector and staff, and The 13cprtmcnt of Defense agrees to ten<1 the Initiatives” otl March 19th. This eciition of our I,ogistics Management Institute (1,MI) dcvcloptllellt of frolxx-t7~ SYStCnl JFIkflI Ntnts summarizes the remarks of the partners, unciertook the eflbrt. The rcissuccl requircmcnts. Stan Azehti, a senior tsecuti\,e keynote speakers, who were Comptroller ciocument provictcs the necessary fouticiation in the Office of the L’ricler SecretaT of General I3avici Walker and the Of-Iice of for testing and qwilifyingcorc financial system 13cfeme for Acquisition and Tccl~noto~~, \\+I1 Management and Ku&:” 13elxtt)’ Director software and for the cicvelolxiient of heacf the eo\~crttment\\,idc team. 13oroth~~ Sylvia Mathews as well as the major lessons enterprise systems &it meet Federal agency Sttgivatma, a Defense I .caciers hip and learned from the Conference pi& neeils. The IKXZ’ bxtment intro&tces the Ma&gemcnt Program l-wricilunt has LXYW JFMII’ recognized top tea&t-s in the concepts of manciatow requircmcntr anLi cfctailec~ to JHMIP for 3 one-y.ir financial managemenr communi~ with the \dLlC added teXLt&?. Mancixorq de\&l~mental assignment, to serve as special Donald I,. Scantlehury Memorial Awards to requirements clcscri tx the minimum assistant in support of this effort. \I’ork Sallyanne Harper, Chief Financial Ofticrr, fitnctionali~ necessary to olxx3Ee a system anti commcnccci in April 1999. Environmental Protection Ag”“‘y, and to conil~ty xlith Federal lax\, anil regulation. E&arci Renfrow, North Carolina State \‘atue a&lcLi features arc technical capabilities C&troller. The JFMIP also took this occasion an3 firnctiotiality over atic1 ahove the core to present G. Edwarci 13eSeve, who serveii as requirements that arc of interest to Fe&rat Chair of the JFMIP Steering Committee from agencies. The reissueci requirements inclucic 2 Spring 1999 ver 1050 persons attended the Joint Financial Summaries of all of the presentations can be found in this issue of Management Improvement Program (JPMII’) 28th the JEMP Nnrs. The JFMIP \vould like to thank the stat-f from the Annual Financial Management Conference on March 19, Graduate School, USDA and agency volunteers that made this 1999 in Washington, DC. Dynamic keynote addresses hj Conference a success. They are: Graduate School, IJSDA- Isatxllr the Comptroller General of the United States David Walker, and the HOWCS, Sharon Barcellos, Debbie Herway; Department of Office of Management and Budget Deputy Director Sylvia Mathews Agriculture-Patricia Wenscl; ~-+KtlllCilt of Army-Doroth! highlighted the fuhlre direction of GAO and the Adtninistratioris Sugiyama; Departtncnt of Energy- Judi FuerstenLxrg and Patrice budgeet priorities. Also at this year’s Conference, there \vere panel Williams; Department of Justice-Linda Herbert, Hilay Holmes, sessions on: Critical Governmentwide Accounting and Auditing Sophie Jones, Marilyn Kcssinger, Melissa Loughan, Susan Mata, Krll! Issues; Resolving Y2K Issues; Financial Systems Update; Financial St&nko; Departmenrof I,abor-iVilla Green, Janet Laythntn and John Workforce 2000 and Beyond; Looking Ahead with Federal Obcrzut; Federal Accounting Standards Advisory Board-Lucy Lomas Accounting Standards; Exploiting Electronic Initiatives for Financial and Andrea Palmer; General Accounting Of&z-Rock!, Rockburn, Management; and Linking Resources to Results with Performance Patricia Slocum and Lisa Shames; and Oflice of Management and Plans. Budget- Jean Holcombe. n Keynote Address ress ey David Wdkn; Comptroller Gewrnl of tile Ukitcd States oting a lifelong admiration for public servants, Mr. Walker s. Mathews’ speech fociucd on the N emphasized challenged than accounting the audience accomplish the commongoal to the American that accountability and auditing; people. to partner He is more it means with GAO of government accountability to accounting; form good . financial foundation to supp the governtnent. manatrt‘nient and structure c, Financiai emphasizes however, it also provides the I for all that the providing good government. GAO and government provides to the public. Before the Federal financial community must the GMRA passed in 1994, audited government financial statements were not strive to improve the efficiency, and required. Everything was thought of on a effectiveness of the Federal government cash basis. You can’t do the strategic work for the benefit of the American people. without auditedfinancialstatements. Ifyou Mr. Walker said that GAO is dedicated do it’s like building a sturdy house but to good government through its without a foundation. Accountability is a commitment Co three core val~m: strong foundation but it star& empty accountability, integrity, and reliability. without fiscal responsibility. It is essential to maintain fiscal discipline. She further em+sized that the These core values describe what we do, how we do it, and how we want management and budget functions must work toge:rther. Jointly the! it to be received. provide solid management and financial information for program Mr. Walker emphasized that accountability represents what \ve do. management, improved bottom line results, and solid management to The evaluation and analytical workwe perform to assure accountability implement what the President and the people care about. in Federal programs and operations requires diverse, multi-disciplinary Ms. Mathews described the President’s Social Securitv proposal to approaches and a broad range of skilled professionals, including illustrate one way to achieve the goal of fiscal respotisihlli~ in an era evaluators, auditors, lawyers, economists, and information technology with a budget surplus. In its Fiscal Year 2000 BUdget, the specialists. He noted that less than 25% of the \vork GAO undertakes Administration proposed to devote 62% of projected budge’ to help the Congress oversee Federal programs and operations is surpluses to extend the life of the Social Security Trust Fund until traditional accounting and auditing. Instead, GAO accomplishes its 2055. About one-fifth of the Presidenr’s commitmrnr to Social mission through a variety of activities that include financial audits, Securiq will he invested in corporate stock. The Administration also Panel Session im Flyzik, Ikputy Assistant Secretar! for Information Sytems, Department orwood (14’oody) Jackson, Acting timelines of financial statements, and the of Treasure outlmed the scope of C&troller, Office of Federal accuracy of the data. Treasury requested Trcasu$s &ullenge to resohrc Ycnr Management, Office of agencies’ input fifteen days earlier than last 2000 Issues. Treasury has 14 bureaus and iManagement and Budget year and the vast majority of agencies offices, supporting a \I:ide range of missiom. (OMB), discussed where the Federal complied. Mr. Hammond pointed out that goals, and objectives. The f&r primnr;\~ Government is, what we have done, and while intrago\~ermriieiltal transfers are a missions include economic, financial, ln\J, where we are going on critical accounting and significant problem-since the volume of enforccmcnt, and management. Trensu? has auditing issues. Many agencies are making business conducted between government some of the largest and conil~lcs information major efforts to achieve unqualified opinions agencies is e:timatedin hundreds of billions of technologv (IT) svstems in the Federal on their financial statements. In 1991, it was dollars-we can solve it. Another nlajor government, which’ includes Customs and Internal Revenue &Rice. It also has the diGcult to find financial statements with valid problem was the out of halance amounts largest civilian Government data nenvork. information, and only one agency received an between trust funcds reported by the agencies unqu&iedopinion. In 1997, eleven agencies and the Treasury. Analysis disclosed that the Mr. Fl>zik stated that as of March 1 o\cr 86% ofTreasury’s mission-critical IT systems received unqualified opinions. In 1998, agencies and Treasury were using different are IIO\V Y2K compliant. 99% arc projc’ctcd OMB expects thirteen or fourteen unqualified methods of amortization, which will bc to LX compliant by March 31, 1999. opinions. He doesn’t view that as bad as long corrected next year. Mr. Hammond stated Having a strong management support as we are moving along a continuum to reach that persistence and planning for the future structure has L7een instrumental to ensuring the goal of all 24 CFO Act agencies having will solve most of our difficulties. that adequate personnel and hi&i n’cre unqualified opinions. Although major Gene Dodaro, Assistant Comptroller available. Major reporting and o\rcrsight problems exist in Property, Plant and General, Accounting and Information requirements were in place at bureaus. This Equipment (PP&E) and in inventory, the Management Division, General Accounting includcd bureaus submitting plans, schedulcz, Department of Defense, which h,as more O&e (GAO), discussed the progress made and monthly status reports. Ongoing reports PP&E than all other agencies combined, is by the Federal government in accounting and and briefings by bureaus and corporate now undertaking a massive effort in PP&E, aidi ting. Presidential and congressional systems program managers on the status ot inventory and environmental clean-up costs. telecommunications, IT and non-IT efforts interest has increased substantially. Meetings were also available. Additional reporting The Forest Service and the State Department held among the Chief Financial Off&rs, management controls include conducting are notable for their efforts at improvement. GAO and OMB were well organized and vulnerability assessments and follo\r.-up and Therefore, Mr. Jackson is cautiously constructive. A meaningful dialogue was audits by the Treasury Inspector Grncrnl and optimistic for the near term and very established with the Department of Defense, the General Accounting oftiicc. optimistic for the long term. Mr. Jackson and for the first time it was recognized that &ordination \vith the Treasur!, Chief highlighted that two massive problems for all people outside the financial community (in Financial Officer (CFO) <,‘ouncil has been dn agencies are unreconciled disbursements and budget, logistics, progrAm management) instrumental intragovernmental transfers. To resolve these must be involved. Everyone is coming to the *n;~nqy*nc*jt l’~&-hf~ ‘“,Sr “‘~~“~:: problems, it will require serious cooperation table to resolve issues and making a solid l)ep3rtmetit-\\iite. among the agencies, and between agencies commitment to work with JFMII’ on There \verc selreral Y2K program building and the Treasury Department. financial systems. Mr. Dodaro stated that he blocks instihited. This meant gaining smior had not seen good cooperation between executive level commitment and enpgiiig Al Donald Hammond, Fiscal Assistant organizational components of Program Secretary, Department of the Treasury, agencies and the Treasury Department and Management. Program Managcmcnt offices discussed the preparation process for financial that it is very important for the Treasury, included the ~:hiefIliforniation Officer, (:FO, statements. For this fiscal year major agencies and auditors to work together on improvements have taken place in the solving problems. D 6 Spring 1999 tvm Panel Session Panel Session Panel Session 20 arilpn Gowing, Associate t the 1998 JFMIP Conference, G. Director of the Office of Edward DeSeve, then Acting Personnel Management (OPM), Deputy Director of Management, Sharon Fitzsimmons, a partner at Oflice of Management and Budget, PricewaterhouseCoopers, and Kenneth described his vision for Federal financial hris Sale, Director, Management Bresnahan, Acting Chief Financial Ofticer at systems. He stated that there was a need for Initiatives, Office of Management the Department of Labor and Chair of the the Federal government to: 1. build private and Budget chaired the panel CFO Council’s Human Resource Committee sector partnerships, 2. provide market session, ‘“Exploiting Electronic addressed emerging financial workforce iriformation that encourages private sector Initiatives for Financial Management.” Panel issues. “partners” to furnish products, 3. make it speakers were: Larry Bedker, Depu? Ms. Fitzsimmons led off the discussion by easy for (qualified) vendors to get on the Director, Office of Finance, General Services describing workforce issues in finance “schedule”, 4. maintain up-to-date financial Administration (GSA); Robert Salvucci, common to both the government and private standards, 5. re-engineer procurement President, SAP America Public Sector, Inc.; sectors. These are recruitment, professional vehicles-easy to use, flexible, wide selection of Charles CXletnan, Program Manager, Access development, compensation and motivation. products, and 6. provide incentives that America for Students, Department of Several factors are contributing to a shortage encourage private sector update products “on Education. of new financial workers: low unemployment their nickel”. Ms. Sale stated that the Administration is rates, aging baby boomers, and low The Financial Systems Update session addressing many mamxgcrial performance birthrates. A recent phenomenon is presented at this year’s conference provided challenges covermg initiatives such as: the competition with the technology sector. an update on the progress the Federal Y2K problem, government-nridc financial Since “all finance jobs are technology jobs government has made in these areas during statements, the Indian trust funds, and the ...and accounting and manaf;ementgraduates the past year. cc11s11s. are (thus) qualified for technology jobs.” Karen Alderman, JFMIP Executive In April 1999, Treasury is scheduled to Fewer graduates are entering into purely Director, stated that the first step in issue the FY 199X audited report on the financial occupations. Two strategies she accomplishing the goals for financial systems Federal Government’s financial statements. suggested for confronting this problem are software requires addressing the JFMIP The statements incorporate financial recruiting college juniors as interns and system requirements for core financial information from the twentv-four CFO improving work processes for different skill systems and the 13 subsidiary systems. The agencies and other Federal &tics. There system requirements for each of these systems have been extraordinary accomplishments to She tied professional development to must be brought up-to-date in order to give date, as the number of agencies receiving a compensation. By improving tools for the vendors the current financial functional clean opinion on their financial statements has learning and development, she posed the requirements against \vhich they need to increased from one to sis and no\v, eleven. possibility of compensating for competency provide software solutions. This is an The Administration’s goat for the FY 1999 rather than tenure. This would require ongoing effort with revisions to 7 systems financial statements is for 20 agencies to employers to clearly disclose what is needed to requirements now underway. receixre a clean opinion. progress, and to provide and promote Schuyler Lesher, Deputy Chief Financial She stated that agencies arc still coping opportunities to develop core competencics, Officer at the Department of the Interior, \vitli huge weaknesses in the systems that qualities and values critical to success. highlighted the state of the current produce their financial statements . Rewards beyond compensation should environment for financial systems in the Extraordinary amounts of improvement are also be considered. These include retirement Federal government. The Year 2000 (Y2K) needed in inventory, loan, asset management, issues such as control over investments and effort has ovenvhelmcd almost ever) receix&les, and propertv systems. These earlier retirement age options; trading dollars information technology (IT) area and will systems are still inherent& weak in terms of for lifestyle, and providing more family continue to do so for the rest of 1999. This production flow, data, and interaction Mitt1 benefits such as child and elder care. Ms. has slowed the effort on the improvement of financial activities. Agencies must get at Fitzsimmons completed her presentation by financial systems. However, once the Y2K legacyd systems , and the transaction systems Contintieti on jage 11. Cuntintreti on page 12. Cuntintred on ka-qc 13. 7 JFNIP NEWS Sprinr,r 1999 ana~ewzen t Initiatives Wdkw, contimed fium pafle 5. ?m program reviews, investigations, iq$ In addition, good strategic planning, Mr. W,llker declared that human capital is research, policy and program analyses. improved information tccllnology GAO’s and the governmenr’s most important Integrity describes the standards that we management, and enlightened human capital asset. No organization can maximize its set for ourselves in how we conduct our work. management are key components in assuring economy, efliciency, and ef&tivcness We must provide professional, objective, accountability and improving performance without having up-to-date, state-of-the-art fact-based, non-partisan, non-ideological, fair throughout the Federal government. human capital strategies that are aligned rvith and balanced analyses. Mr. Walker stressed its overall strategic plan. Organizations must the importance of acknowledging progress, invest in people-its irltckchd property-to talking aboutwhatr’s working right, providing maximize wluc and manage risk. This is constructive comments, and sharing best especially true in the case of professional practices. Talking only about what’s wrong service organizations, like GAO. Mr. W.tlker with government programs and operations noted that the government Ins lxen woefull! undermines the public’s respect for and inadequate in this critical dimension of confidence in their government. performance. He said a top priority of his Reliability describes how we want the With respect to information technology, tenure at GAO, as well as an area of revie\v for Congress and the American public to view our GAO throughout the government will lx work. Our goal is to produce high quality in the short term the government must focus on the Year 2000 problem because this is a human capital, people strategy, issues. reports, testimony, briefings, legal opinions, and other products and services that are date certain event and the government still Ill evaluating an organizatiolis timely, accurate, useful, clear, and candid. faces high hurdles. Mr. Walker stressed that in performance, the outcomes, not output, must Mr. Walker emphasized that it is impofiant to the longer-term the government must address Lx measured, together lvith client and think and talk straight and to be more concise implementation of the Clinger-Cohen Act. employee feedback. Mr. Walker also stressed in our reporting. This reform legislation builds on the best the importance of protecting merit principles Mr. Walker noted that his fifteen year practices of leading public and private and pursuing lifelong learning. The go-hour tenure as Comptroller General will give him organizations. It requires improving CPE requirement encourages continuous the opportunity to focus not only on current government operations through more professional development. issues but also on the emerging challenges effective planning, investment, and use of Mr. Walker reiterated that accountahili~ facing the government. information technology. Requirements is the key to delivering good government to Financial management is the foundation include establishing Chief Information the American people. Accounting and of government accountability. Like a IIOLK, Officers, linking IT investment decisions to financial management is one of the core the government’s programs and operations program missions and goals, and competencies needed for accountabiliw. He must 1~ built on a rock solid foundation. strengthening internal controls. Mr. Walker noted that the county is no\v experiencing Annual financial audits represent an encouragedCIOs and CFOs to work together temporary budget surpluses. HoTvcver, given important means to assure continued more close1y. He also stated that GAO is the knonrn demographic trends of the progress in connection with improving revising the standards on internal controls American population, projected Social Federal financial management. However> issued in 1983. There mllst be a clear Security and Medicare payments produce Mr. Walker cautioned that while obtaining recognition that automated information structural deficits such that by 2050 some unqualified “clean” audit opinions is an svstems are the engines and repositories of models show there may be no money for am important objective, it is not an end in itself. It is no longer discretionary spending. The government financial information. We need financial management and acceptable or possible to “audit arounfl auditing and financial community has an information systems which produce timely, computers. Mr. Walker noted that GAO has obligation to address and report on these accurate, and uLsefu1 financial and worked with OMR to design and issue structural deficiencies, to provide the management information which C3xigress guidance to assist agencies in implementation Congress and the public tsrith the facts to and other decision-makers can use on an of Year 2000 and other information make informed decisions. D ongoing basis, not just good year-end data. technology management reforms. 8 Spring 1999 Panel Session Panel Session proposed to commit an additional 15% of future surpluses to extend the Medicare trust fund’s solvenc~~. hifost ofrhe share committed to Social Sec&ity andhiedicare [vi11 IX used to buy do\vn the publicly held debt. The Budget also proposed to dedicate 12% of the avid MOSSO, Chairman, Federal allyanne Harper, Chief Financial renn~iinittgsurpluses to nelv I.!ni\wsal Sa\4ngs Accounting Seandards Advisory Ofkcer for the Environmental Accounts rind the remaining 11% to priorities Board (FASAB), began the Protection Agency (EPA), opened up like education, national securiq, and health presentation by focusing on the the panel session by observing that care. Overall, this plan will reduce the dcht transitional nature of Federal financial agencies’ annual performance plans are held hy the public from S3.7 trillion to $1.2 management. He spoke of the changes opporhtnitics for them to demonstrate the full trillion, \vhich is the lo\vest level relative to the required by financial management legislation, value of their programs for the resources that size of government since 1917. This creates such as the Chief Financial Officers (CFO) are being spent. At EPA, the fiscal year 1999 room for producti\Y private capi t.11 Act, Government Management Reform Act annual performance plan was part of its investments and reduces interest payments (GMRA), Government Performance and annual budget submission-it was one of only from $13 on the dollar to $.02 on the dollar, Results Act (GPRA), and the effect of those three agencies that submitted an integrated shrinking the debt burden on future changes on the FASAB standards, the Federal performance plan and hudgct. EPA ma& generations. Ms. Mathews concluded the financial reporting model, and the Federal fundamental changes to its budget struchtre speech by thanking p articipants for their management model. He stressed the positive in recognition that it should hc organized cfbrts at improving financial management direction of the evolving Federal management around environmental outcome goals and not and offered OMB’s continued assistance in model as replacing control by prescription a particular media. advancing these efforts. and restriction with control by performance For its fiscal year 2000 performance plan, During the question and answer period, targets and accountabiliq for results. He also EPA again placed its reqwstcd resources in Ms. Mathews was asked about the concerns explained that fiscal year 1998 was the “stress this budget stritcturc. Additional Mr. Greenspan expressed \s?rh equiq test? of the new accounting standards since itnprovements to the plan include an investments in the market. She replied that this is the first fiscal year in which all of the increased numt~r of performance goals and governnicnt holdings would 1X limited to core set of accounting standards (SFFAS l-8) measures with an e~~viro~~~~~cntal-~~~ttc~~~~~e account for no more than a small fraction of were in effect. The results of the audits of the orientation. Thcsc goals and measures are the stock market, and should be smaller than fiscal year 1998 agency financial statements accompanied by enhanced baseline data. The the share ofthc market presently held my some will help the Board assess the nature and plan contains a full discussion of the strategies private investors. Ms. Mathews also noted degree of implementation problems with the EPA will use to achieve these goals and the that the investments would tx- indepcndenti! standards and how those problems might best verification and validation procedures for managed by private sector managers and be addressed. performance and cost data. EPA is insulated from political influence. A question Mr. Mosso also discussed the general continuing its consultations with WYISalso r;lised on how \ve maintain funding purpose Federal financial reporting model congressional stakeholders. \\?rhout needing to borrow again in the (GPFFR). He said that, in many respects, the One of the current challenges for EPA is future. She responded that there would 1~ Federal tnodel is more complex than either the need for timely, accurate, and relevant equity rehtrns that would extend the time you private sector or state and local government data to 1~ able to demonstrate progress in have surpluses, there \\ill bc no def~trtlt on model. He discussed the unique aspects of the meeting its goals. Full cost data \viil adhere to Treasury securities, and that \vt‘ need to put Federal model, including the links between the goal format set in the performance plan ourselves in the position kvhere mane!’ is there the Statement- of Net Cost and performance budget submission. Such data will allow to pay claims. The audience enthustasticall! measures, and between the Statement of Net managers to assess the cost of achieving recei\rd the answer to the final question on Cost, the Statement of Budgetary Resources results. Collecting results-oriented repealing the \vitidfall act that sets earnings and the Statement of Financing. He also petfbrmancc data calls for nf\v collalx,rativc limits for people receiving Social Security. stressed the importance of stewardship relationships Lvith partners, such as state The administration supi>ora lifting the limits reporting and the impact that such reporting governments, that implement environmental on earnings as part of its overall Soci,tl might have on users and decision-makers. programs. EPA is working with states to Securiv reform package. 3 focus on agreed- upon outcomes and to Continued vn l’qe 14. JfiMLF’ NEWS Spring 1999 Y2& continued jhm pu$e 6. Budget, Management and Operations, business processesat bureaus and posts. developing a mitigation strategy and action International Affairs, and Global intervention involves participating in plan. Security/Emergency Preparedness. international Y2K organizations and There is a 7- phaseapproach to the Y2K Mr. Flyzik discussedthe evolution of committeesor international outreach. There Risk management: becoming Y2K compliant. An assessment is an ongoing country-specific readiness 0 Develop an overall Y2K Continge-enc! was conducted of the mainframe systems assessment. Planning Strategy perspective,telecommunicationsystems,and The businessof State ensures system o Conduct Contingency Planning midrange systems,personal computers, and readiness.There are application remediation awarenesssessions local area networks. Data exchangeswere activities for S9 missioncritical and 57 critical conducted betweenTreasury and its Federal, department-wide systems. State’scomputer * Review the BusinessImpact Assessment State, commercial trading, and business systems interface with 195 external and * Develop Y2K RusinessContinuity Plans partners. Currently, the focusis on continuity internal organizations and 106 banks. By planning, core business processes, and March 31, 1999,90% of the State’smission * Develop Y2K Remediation commandcenter. critical systemswill he Y2K compliant and the Contingency Plans Treasury’sfinal challengeentailsensuring remaining systemsby May 31. In September 0 Validate all Y2K BusinessCBntinuit\ success.They hope to attain this by continued 1999, State plans to conduct Plansand Y2K Remediation . oversight, contingency planning for systems, Department-wide end-to-end testing of Contingency Plans and continuity of operationsplanning for key critical processesandcertify systemcompliance. * Develop a Y2K Cutover Plan businessprocesses. They are preparing for For businessprocessesat bureaus and January 1,200O andhave aDay One strategy. posts, State has developed a contingency There should be organizational planning. Mr. Bert Edwards, ChiefFinancial Of-ficer planning toolkit for “Day Zero” planning and The Board of Directors and Senior (CFO), Department of State, alerted risk mitigation activities. Mr. Edwards Management must be directly involved in the everyone that the time is coming and there is highlighted areasof particular concern, such planning proc-ess.Development and execution no way around Year 2000 (YZK). The as:transportation systemsabroad affected by of said plans should be decentralized to the United States will not be able to solve this computer problems; financial institutions businessunits. Acontinuitygroup or resource worldwide problem. What will be more outside of the United States experiencing should be established with corresponding troublesomefor somecountries will be their difficulties; and U.S. citizens abroad with specialmedicalneedsthat may be unavailable. responsibilities assigned. The I xgal inability to obtain customer support because they areusingpirated software. Additionally, Additional information about Y2K issues Department should be involved along \\5th most countriesare dependingon the U.S. for and links to Y2K websites for foreign the Quality Assurance team for plan solutions to the Y2K problem. There will be governments can be ’ accessed at validations. criseson the sameday. State expectsto have http://travel.state.gov. The Y2K Continuity Plan l’alidation is the most, because of its worldwide Al Uretsky, DMR Consulting Group, important to validate the effectiveness and involvement. spokeabout Y2K risk management. For the reasonableness of the proposed contingent! The Department of State isresponsiblefor last two years he has worked on Y2K risk plans. They should LX conducted by an advancing national objectivesand interestsin management in the banking and securities shaping a freer, more secure, and more external third party for an objectijr industry. prosperous world through formulating, No one really knows what will happenon perspective. representing, and implementing the January 1, 2000. It may LX no more than Mr. Uretsky emphasized that the most President’s foreign policy. State, the first simply a “bad day”. But, everyone elsein the important way to mitigate risk is to develop a Federal agency, was establishedin 1789 and world will also be having a bad day - some sound, validated contingency plan and has representation in 162 countries at 260 worse than others. He predicts that we will continually monitor andalter plansasrequired. locations. The Ambassadorcoordinates all seeit more in the last quarter of the year. It Joel Willemssen,Director, Civil Agencies U.S. programs and activities in host will be another day. Everyone will have countries. State provides administrative problems,he inconvenienced. Information Systems, General Accounting support servicesto more than 150 different The Y2K risk managementobjective is to Off& (GAO) offered the GAO perspective Federalagenciesand entities overseas. be preparedby focusing on the risksthat Y2K on the Y2K statusin the Federalgo;O\‘ernment. State is meeting the worldwide Y2K posesto your business.You should alsoassist He discussedwhat remainsto be done in the challengeon three levels. The three levelsare in maintainingthe integrityofcritical business Federal government. global intervention, businessof State, and processesby quantifying the level of risk and - IO The Futwe is Now: ~~ple~entin~ Financial nu~ement Initiatives em Y2K3 contintrd fim pafie IO. Wwkfbrce 2000, continued fiwn /7aLqe7 GAO has Lxen involved in the Y2K proposing organization-wide of‘ficial Kenneth Bresnahan tied the information dilemma for several years and has issued 90 coaching programs for every employee. This together by briefing the audience on reports and testimonies on Y2K. They have private sector ‘?xst practice” helps the developments specific to the Federal financial spent the majority of time on organization assimilate new employees Easter. workforce. He cited OPM statistics showing Coaches are delegated responsibility for that since 1992 the Federal financial government-wide progress. Now, time is advising on and approving training, helping workforce has decreased and a sitrnificant spent on business continuity. Mr. Willemssen new people network, providing ha&-on proportion of the remaining workf&ce nrill stated that overall, the Federal Government is training, and advising on career paths. Lxcome eligible for retirement in the ne?;t five more optimistic than a year or even 18 Dr. Gowing presented an overview of years. At the same time, the proportion of the months ago. He credits the Office of initiatives the OPM is pursuing to improve financial workforce under the age of 30 has Management and Budget (OMB) with Federal human resource practices. OPM’s declined significantly. Since 1992, IICU spurring the agencies to pay attention to the primary stl-ategy is to ensure that the elements financial legislation has changed the nature of of human resource ftmctions are integrated Federal financial management and placed Ned Y2K crisis. OMB developed guidance and client focused. A major re-invention is a demands on that shrinking workforce. Time directing agencies to submit quarterly reports new conceptual model for qualification and is of the essence. The fin&cial communit) on their progress and making top agency must move quickly to increase recruitment, classification standards. The model builds offEals aware of the issues. This resulted in standards based on competencies rather than strengthen qualifications, and improve positive Lxnefits. years of experience and credit hours. OPM professional development. A recent OMB quarterly report in the plans to introduce assessment tools to gauge The workforce demographics cited above Washington Post showed that 79% of these competencies, which include not only underscore the immediate need to recruit mission critical systems in the Federal the technical skills pertinent to any one highly qualified financial personnel. To fill occupation, but also general competencies this need, the CFO Council’s Human Government were Y2K compliant and 90% indicative of success in the workplace. Dr. Resources Committee (HRC) is completing by the end of March 1999. This is, however, Gowingpresented a samplingofthese general work on a centralized recruiting network self-reported. GAO believes that the competencies: good communication skills, dedicated to financial personnel. Its goals are percentages may Lx less and should have an reasoning, integrity, self-management, and to promptly identify candidates and independent review and verification to flexibility. These were consistent with streamline the hiring process. This pool of confirm the accuracy of the report. competencies cited by the private sector candidates would be available to anv finance panelist. organization. At the same time, the HRC GAO would like to see the Fcdeeral OPM has issued draft classification and recognizes that identifying candidate Government begin to focus on key business qualification standards for the GS-510 resources in toda)?s competi&e environment functions and programs - essential business accountant, using the new format. Select \vill require innovative approaches. One areas. Also each critical agency should have an agencies will pilot the standards for a six underway is a nascent partnership \x?th aggressive “Day One” or “Day Zero” month period beginning in May 1999. All Hispanic Serving Institutions. strategy. The status of state and local revised standards will be Web- based to enable Now that the HRC of the CFO Council governments should be reviewed. Their OPM to distribute revisions in a timel) and the Joint Financial Management action or inaction \vill significantly affect manner, keeping pace xvith the market and Improvement Program have completed their changing nature of disciplines and work to define the core competencies specific benefit paymen& occupations. to Federal financial occupations, the Key economic sectors are of concern, OPM is also developing Web-hased frame\vorkis in place to proceed to improving because of what the Government doesn’t solutions to streamline the hiring process. professional development and defining know. They are unable to provide assessment Jobs are posted on-line and agencies are qualifications for new recruits. data on wliere they stand. Mr. Willemssen beginning to accept applications on-line. The latest product of the HRC is the foresees a greater demand, not for the OPM is leading the President’s Task Force on Executive Toolkit: Building A Financial business sector, hut for individual companies Federal Training Technology. Soon, OPM Management Workforce Development Plan, to disclose information in order to determine ivill have automated competency based which is available on the FinanceNet xv&site assessments on line. Dr. Gowing stated that under the CFO HRC w,ebpage. This is a where the U.S. stands. 0 OPM is a “new organization committed to comprehensive package to help financial working with line managers to revolutionize managers update and maintain the the system. But we need your help and look Forward to \vorking with LOLL" Continued on PflLqe15. 11 JfiWl’ NEWS Spring 1999 The l%tzwe is Now: nauewzen t Initiatives m Systems, cmtintrcd jknn page -‘. effort is completed, more resources can Lw current Financial Management System requirements. The T’A is looking to change devoted to upgrading financial systems. A Software schedule and compared it with the their business processes to Lxcomc more current ftnancial systems snapshot among the new qualification and testin~lyrocodures. The cficietit and find financial system software CFO agencies showed that there are 7Sl key components of this process are sele&on that uill fit their new processes. Information financial systems, 1170 applications and $1.6 and implementation. The COTS package on the \‘A IFMS project can be found on the billion in annual expenditures. Only 49% of must be tested to see whether it meets IFLMS web site at “httl’:l~ifIns.va.~o~~“. financial applications are JFMIP cotnpliant Government requirements. The As the panel session cot~l~~tcd, it 1~1s and a very small 13% are using comtncrcial requiretnents can be mandatory, agenc) stated that future Federal financial system off- the-shelf (COTS) system software. specific or value-added. The approach Mill be development f&es many strategic chdllenps. However, 71% of the systems are planned for for JFMIP to test the mandatory Building business cases, populating the upgrades or replacements by 2003. requirements. Value-ad&d requirements will Enterprise with “best of breed”, managing One of the major problems for the Federal be observed by the test team, but they will not change and how to continue in the face of the government is the lack of business process be tested. Agencies must test any agency “disappearing” Federal financial norkforce reengineer@ The Government buys specific requirements and retest any are major issues. A sense of urgency must lx software and modifies the sofrware to value-added functionality they might want to established. A po\vcrful guiding coalition conform to its current procedures. The use. LMI is \\rorking Lyitt-1 JFMIP to build, 111utst create and communicate vision. government should take advantage of new test and maintain chc testing process. The Everyone should feel empowered to act. rechnoiogy to make its business practices draft test scenarios are currently on the Short term \vins (“low hanging fruit”) must more efficient by changing the processes to knowledgebase and are available for review be accomplished and change, must be conform to the sofhvare, or better yet, and comment. institutionalized. All this is necessat-v to reengineer the business practice first, then Within 30 days of receipt of required ensure that the future of Federal fina;icial search for a sofhvare solution that fits the appltcatton tnformatton from the vendor, the systems is golden. o revised process. In fact, the Federal financial JFMIP PM0 will notify the vendor of result management systems software process is itself of their review. Applications can be rejected king reengineered. A ProgranlManagerr-tent based on the review. If the application is Office (PMO) is being established in the acccpd, JFMlP lvill schcdulc the test date. JFMIP to do the following: update, maintain Vendors tnust be prepared to test within 60 and communicate financial systetn days following application submission. organizational niatiaget~nent) from Golden requirements; rcctigincer current core Vendors will begin using the tests for testing Gate University in San Francisco and a finrlncial systems software test and their products from June to September 1999. Bachelor of Arts degree in physics from the certiftcation process; work with GSA to Results of the tests uill LX offtcially Universin of California at Berkeley. Dot is a streatnline procurement vehicles under a new announced on September 30 \vith certificates participant in the Defense Leadership and concept of operations; and maintain a effective October 1, 1999. After the initial Management Program. During her one-ycnr “knowledgebase” of infortnation on financial period, notification of a successful test and a rotational assignment at JFMIP, she \\+I1 \vork commercial systems services and related certificate of compliance \xGll be provided primarily on property systems requirements. information. within 30 days of testing. Bruce Turner joined JFMIP as a full-time, The “knowledgebase” is available now on Frank Sullivan, Deputy Chief Financial permanent etnployee for the JF~MIP Program the JFMIP website for all to use. Information Officer, Department of \‘cterans Affiairs Manngemenc Ofiice on April 26, 1999. Prior will be posted once the COTS packages are (VA), explained how the \‘A is building a to this, he ~vas the Director, Financial Systems tested and tnect the JFMIP core financial business case for a future integrated Gxsulting at the Department &f the system requirements. The information will financial/logistics IllnIl3g:ctTlellt system Treasury’s CZnter for Applied Financial include the name of the sofhvare products and (Integrated Financial Management System - Management. Prior to that he \vas Director, vendors, how well the sofmare works, and IFMS) in accordance \\ith Capital Investment Financial Management Consulting, since value added features of the product. Board guidelines that supl>orts and facilitates inception of the Center in 1991. He help& Catherine Nelson, Program Manager, VA’s mission. He also discussed how they are start FMS’ Financial Systems Cross- ScnGcittg Logistics Management Institute (LMI) spoke using the new JFMIP qualification and testing program, after spending 8 years in ~irious almut how her organization has assisted the process to help them accomplish this goal. financial management posit:lons within the CFO Financial Systems Committee and The VAis focused on the value-added testing, Department of Defense. At JFMIP, he \\,ill JFMIP in reenginecring the financial system making the assumption that JFMIP lvill software testing process. She spoke about the provide the testing of man&tory 12 Spring 1999 that feed them. They must use new 6. The Financial Management through business process rcdcsipn and technology in these areas to deliver improved Information System is another tool for reengincet-ing based on the nc\~’ tcchnolog:)~. services and benefits to recipients. obtaining financial reports on-line. When you change dramatically lion, the The panel discussed activities going on at 7. The Accounting Classification business is conducted, you transfi>rni the agencies that are trying OLS new technology application contains all accounting codes, business itself. Reorganizations nilI not and integrated sysistems to provide tnanngers inclu~ngdefinitions. This tool has pertnitted accomplish this tvpe i of business transfi)rnintictrl. and customers with the information they need the elimination of hard copy handbooks, Fiti3ncc is the chief intcrprcter, on a timely b;lSis. which were usually out of date. Users can communicator, and educator concerning the Ms. Sale stated that GSA is an obtain lists of codes and definitions for: financial impact of decision making. Finance extraordinary example of an agency using service and staff offtces, client agencies, object is uniquely positioned to drive this leading edge t&nology to support administrative classes and cost elements, general ledger, and transformation 13~ leveraging techtiolog~~. activities. Mr. Larry Bedker demonsvati nine other agency categories. The Chief Financial OfEcer (CFO) must ,lct appliations on the GSA web site. 8. The TOPS application stands for the strategically to identify and support nc\\’ 1. The Payment application shows the Telccotnmunication Ordering and Pricing opportuni&s for positioning the agcncv fci,r statlts of payments to vendors, travelers, and System. It is an on-line customer billing future gro\vth and to lead business pr&ss other recipients. Payees get a password, retrieval system for information on GSA’s redesign and reetigineering initiatives. which allows them to access only their own phone billings to other agencies through the Todays CFO muFt begin to Icvcrapc the payment data. Payment information Treasury OPAC system. GSA customers can essential integration of finance and strategy. includes: the invoice number and amount, obtain their billing information at this web Information teclitiolog~ must lbc mastcrcd the EFT number (if applicable), the date and site. and levcragcd to cope wtth die rate ot‘changc, type of payment, and the accounting control 9. The Invoice Imaging application support business transformation .‘. dri \‘c transaction number. enables GSA offices to review all invoice data efficiency, and cultivate cotistittV‘r1tslltts13cIIIOrI!. 2. The FEDdesk application has enabled on-line and to certify receipt and acceptance People issues are at the core ot GSA to close out all imprest funds. It enables on this screen by keying in their password and implemetitingne\~ technology. Kcv elements an employee to route a request for typing in the date received and accepted. of the new way of doinQ 0 business arc: \X/~IC reimbursement to their approving official and Users can query this application by chain orientation, process driven, iustomcr- to receive payment by EFT. Reimbursement organization, the number of days old for the focuse~t, learning organization, and tictl\u&cd requests approved by 11: 00 a.m. will result in invoice, and cumulative invoice amount. This operations (ititranet, extranet, and ititernct). receipt in the employee’s bank account by the application was developed as a tool to get Charles Coleman talked &011t the nexT day. Travel vouchers and time and improved accounts payable information for accoml,lishnncntsciits of the Office of Student Aid attend&e reports are also processed through financial statement purposes. in the Department ofEducation. It i,s the first this application. GSA is implementing a new core financial Performance Based Orgrmizntion (1’130) in 3. The Fastrnck application enables system. There are SO0 to 1,000 users of the the Federal Government. Its Access America authorization of awards up to $2,500. It also current legacy financial system. The new core for Students program grc‘xv out of a Natiotidl provides an employee’s awards history. In the financial systetn will have 8,000 users. Performance Rev&v initiative to use future, titne off awards will be processed Bob Salvucci discussed how growth can be electronic commerce fbr deliefititl~cttstoti~ct-s through this application. driven in a digital economy through the and providing better ~~~overtiniental 5cniccs. 4. The Webcard application enables integration of finance, technology, and Students ‘Ire the first demographic group purchase cardholders to review and change strategy. Declining financial conditions, slated to test this type of service cicli\*cr\r. the default accounting classification codes on worldlvide competitive pressures, and Otherclcctronic service programs arc plmn&~ their charge items within ten days of the changingconstituent needs are forcing private for seniors and small business ctistomcrs. transaction. After the ten-day period, there is and public organizations to transform how A study ~‘3s done to compare kc\ also the capability of a one-time reclassification. they do business. Today’s organizations must performance statistics associated \I.itli filing 5. The Near Online application has improve constituent satisf&tion, eliminate shdent kxm appkatiotls via die traditimid eliminated microfiche and paper reports for non-value-added steps, and provide their paper process vcrstts a pilot clectroriic their legacy mainframe batch mode financial suppliers and customers with access to real submission process. For the traditional paper system. Users are able to look at reports time information. applicntion, the processing cost per on-line. A good browser is available to sort Technology is changing at an unbelievable application was $1.50; the go\‘ertitncnt through information and help users find what rate, with the development of open systems contractor’s data entry error rate \vns 14%; they need. and interoperability. Organizations are trying and the average time for tiotific:~tiOtiofrCcCil~t to perform activities in a different u’ay 13 -~-. Spring 1999 Accmmtin~ Standwd~, contind jbn pay 9. to the applicant was 3 weeks. For the web site Mr. Mosso then told the audience that She told the audience of other ongoing application, the processing cost per FASAB was lxing considered for Rule 203 efforts of the Board, for csample on reportin;: application was $.lO; the applicant’s error status from the American Institute of of direct loans and loan guarantees. She rate was less than 1%; and the average time for Certified Public Accountants. This status, concluded \Trith a hriefcsl~lanation of projects notification of receipt to the applicant was less although not required for the FASAB to set to Lx addressed by the Board, such 3s than one day. Federal accounting and reporting standards, inter-entity costs, grant accounting anti a Phase One of the Access America for would allow auditors to opine that Federal deftnition of Federal assets, performance Students program will of&r a core suite of financial statements Lvere in conformance measures reporting, and natural resources, governmental services through an electronic with Generally Accepted Accounting and she discussed current eftix-ts bv the yellow pages. In addition to student loan Principles (GAAP). GAAP currently Board’s Accounting and Auditing I‘1olic\ applications, users will be able to change comprises a core set of accounting standards Cotnmittee. addresses with the U.S. Postal Service, obtain developed by the Financial Accounting Sally Thompson, Chief Financial Otticcr, tax infortnation from the IRS, and make Standards Board (FASB) and the Department of Agriculture, pro\6ded an national park reservations. Governmental Accounting Standards Board agency perspective on the status of financial The shtdent aid program involves 10 (GASB), for the private and state/local accounting and reporting. M’hile applauding million shtdents, 7,600 s&ools, and 4,000 sectors, respectively. Such stahts also would the effort to standardize financial accounting add credibility to the financial information lending institutions. The Access America for and reporting by Federal agencies and reported by the Federal Government. Students web site will enable students to FASAB’s ef-forts to date, she spoke of the Wendy Comes, FASAB Executive obtain loan services and look over account problems agencies of‘tcn have in Director, provided highlights of the most information on-line. Participating students implementing the changes required by that recent standards of the Board. SFFAS 11 will lx given an electronic 11) and a shldent provides changes to the definition for certain standardization. She discussed the difErenccs account number. Account information will stewardship property, plant, and equipment in types of implemcntcrs w+thin the Fcdcral include: current tnonth’s loan activity, loan (PP&E). SFFAS 12 provides an exception to Governmr.tit, sutAi as small, one-program history, current year’s pending awards, and the “tnore likely than not” definition of agencies nith centralized ciecision-making, to the repayment status of prior loans. probable for contingent liabilities arising large, tnulri-program, complex orgnnizations The Access America for Students program from potential litigation. SFFAS 13 provides with de-centralized ciccision-making. ill:;. consists of a steering committee, a a deferral of the reporting of certain Thompson also stressed that lvithin these receivables reported by tax-collecting public/private partnership council, and a varied agencies there were often di\~ersc and agencies. full-time staff. There will be a hvo-year pilot, unrelated activities. All of these coml~lesities She also discussed those accounting with ten schools participating in a test of these impact an agen$s attempt to successfull! standards the Board expects to issue in the concepts in the school year 1999-2000 and SO very near future. The proposed standard on itnfletncnt accounting standards. schools participating in the following school deferred maintenance would move the Some of the major challenges t&xl 13~ year. Students will lx the center of* this new placetnent of the reported information from impiemcnters of the standards \vere practic,tl way of doing business. The Access America tlw financial statement notes to and technical issues, competing demands fbr web site will also let students use the Internet supplementaq stewardship information. limited resources, axiilahility of fitian& to study, play, chat, shop, seek employment Management’s discussion and analysis ni3tqmi~tit resources, and the need ti)r opportunities, and participate in distance (MD&A), would be issued as both a concepts more itnl~lementatioti flesihilit\~. ,\ls. learning. document - to provide a tool for managers in Thompson concluded her remarks v,‘ith some drafting the MD&A, and a standarc& The Access America for Students program advice for the implementers. She stiggcstcd document - to provide the requirement for the grows out of several modernization that i nil~lct~icntcrs and auditors could txxicfit MD&A. The proposed standard on social initiatives: a performance hasedorgailization, from partnerin, ~7to work to\~xrd a consctlsus, insurance would address disclosures of new ways of doing business, technology to information to lx reported as sul$emontary consider making a joint presentation to lower costs and improve service, greater stewardship information. Finally, to FASAB and the Office of Management and cl=tomer focus, 3 single point of contact, near supplement SFFAS 11, standards would be Budget (OMB), and encourngc 0,4/1B and real-time operations, and more electronic issued how the stewardship category of others to hold discussions and simultnnectLtsl\ processes. Agencies are encouraged to get national defense PP&E should 1x measured make presentations to iml~lct~~et~tcrs and invol\Fed in these technologies. 0 and reported. audiKors, \vhen npfrol~rintc. ;1 --__-_ 14 Spring 1999 The Fatw-e is Now: I~ple~e~tin~ Financial Mun~~e~ent Initiatives reduce any burdens associated with collecting satisfied overall with NPS facilities, services, intended results. To do this, plans shoulcl appropriate performance data. and recreational opportunities. link progmms to performance goals; EPA is putting in place accountability The performance management process describe strategies to leverage or mitig3tc processes that will allow it to assess its SLKC~SS helps improve management capability, the influences of external factors; and discuss in achieving results. Strong management budget formulation, and ultimately public strategies to resolve management problems suppfi, especially from EPA’s satisfaction. NPS is fortunate that it has top that could impede the achievement of go31s. Administrator, has been invaluable. Finally, it leadership support, especially in Deputy 4. Show performance consequences of is important to remember to maintain a Director Denis Galvin who is very committed budget and other resource decisions. long-term perspective when building a to the performance management process. Performance plans are just starting to link planning, budgeting, and accountability The NPS GPRA taskforce, which includes budgetary resources to goals. Plans sho~~ld framework. EPA anticipates that nyany of the representatives from regions and parks, and also show how capit investments and changes may require further modification as technical experts, works to fit performance human capital contribute to annual goals. EPA’s GPRA processes mature. management principles into operational Heather Huyck, Director of the Of&e of settings. To reinforce this leadership support, 5. Build the capacity to gather and use Strategic Planning at the National Park NPS is building expertise among its manngers performnnce information. Agencies should Service (NPS), described its efforts to link via satellite workshops and convening town not only describe data. sources, procedures resources to results. NPS is a very dispersed hall meetings to get stakeholders’ buy-in. to verify and validate data, and actions to organization and has over 370 sites from J. Christopher Mihm, Associate Director compensate for low quality data, but also Maine to Samoa. Although its parks have in the General Government Division of the discuss data collection ch3llenges, such as many unique features, managers have General Accounting Ofice (GAO), offered the challenge for intergovernmental recognized that they also share many government-wide observations on agencies’ programs to aggregate inconsistent dnta common elements. progress in linking resources to results in their from numerous entities to demonstrate NPS has devised a multi-step performance progress in reaching a nutional goal. performance plans. Based on its assessments management process that addresses four basic of the 24 CFO Act agencies’ fiscal year 1999 For more information, see Age11c1 questions: Performance Plans: Examples of Pmcticcs performance plans, GAO identified five That Can Improve CsefLtlIlcss to 1. Why do we want to accomplish something? opportunity areas and specific practices that if Decision-m3kers (GAO/GGD/AWID-99-W). applied consistently, could improve the 2. What do we want to accomplish? overall usefulness of subsequent plans. These 3. How do we plan to accomplish it? opportunities are to: Workforce 2000, continrredJCroln pqc 11. 4. Did we accomplish what we intended? 1. Better articulate a results orientation by creating a family of performance goals and competencies of their Lvorkforce. The kit To address the “why”, NPS has mission measures that addresses key performance presents 3 menu of tools to assess, identif!,, goals. They are to preserve park resources, dimensions and balances competing execute and evaluateworkforce development. provide for public enjoyment, perpetuate heritage resources and enhance recreational priorities. Performance plans should also The Committee h3s also acccptcd ofporhinities, and ensure organizational include goals to address mission-critical leadership for the Federal Finance domnin of effectiveness. The NPS annual performance management problems, such as the ones the Federal Training Technology initiati\rr. identified in GAO’s recently issued This new forum offers the potcnti31 to csl~mci plan breaks these long-term go31s into annual increments and specifies the actions and performance and account&ility and education to workers “anytime, anv\vhcrc.” resources needed. NPS goals are stated 3s the high-risk series, in recognition that these Finallv the HRC xvi11 kvork cl&elv \\.ith desired future conditions, with the problems impede the achievement of OPM to evaluate the clnssificatio~~ 31~1 performance measures embedded into the performance goals. qualification pilot programs this year, and to goals, and the annual goals a one-year align OPM job profiles for the e-mire 2. Coordinate crosscutting programs by professional and administrative job f;lmil>r increment of them. The plan deals with the identif+g programs that contribute to with the JFMIP/HRC Core Competcncics. “what? and “how? by identifying the annual similar results and setting complementary The Human Resources Committee members goals and the required activities to accomplish goals that show how these programs 3re welcome your ideas. They may IX reached at them. Reporting and evaluating results is the mutually reinforcing. last step. For example, based on its first hW// nationwidevisitorsurveyin 1998, NPS is able 3. Show how strategies will be used to ~~~~r.fillancenet.go:ov/fiiifincertct,ifeci~cfo/hrc/ to report that 95 percent of park visitors are achieve goals. A performance plan should hrc.htm. o show how the agency will achieve its 13 Spring 1999 he creation of the Federal Agencies’ relief when they learned that for 1999 Rmisin~ Treasury Reporting Gbidame Centralized Trial-Balance System II reporting the outlay edit is an informational FMS has been preparing revisions to the (FACTS II), which is a key part of a edit. For FACTS II reporting in FY 2000 and portions of the Treasurv Financial Manuai joint OMB-Treasury initiative to beyond, however, the plan is to make sure that (TFM) that relate to the SGI. and FACTS II, nate duplicate year-end reporting, is the FACTS II outlays match the MTS outlays. and nil1 issue updated guidance in MAY. The rolling along. During the last few guidance includes the list of SGL months, 15 agencies participated in accounts and descriptions Of an extensive pilot test; more than 200 attrihutcs used lvith FACTS II, ;s agency staffers from across the well as cross walks Lwt\j.ccn FACTS country attended a three day training II data and the FMS 2108, SF 133, seminar on FACTS II; revisions to and the P&F Schcdulc in the Treasury reporting guidance are President’s Budget. king completed; and, FACI’S II As part of FACTS II, the received an accolade from the year-end reporting guidance issued Association of Government hy OMB, Treasury and the SGL, Accountants. Board is more consistent than ever Starting this Fall, agencies will &fore. Numerous people at F,MS submit FACTS II data that will fulfill and OMB have norked on the requirements of the FMS 2108, improving the consistence of the the 5% 133, and be Lned to produce governmenr’s reporting &dance, much of the initial set of prior year including Neil Lobron (O‘MB), data in the Program & Financing Training Veronica Kitchen (HUD), md Jm Schedule (P&F) in the President’s Budget. Treasury’s Center for Applied Financial Steinhrueck (Education). \‘eronica and Jan Managerment offered a 3%~ seminar on signed up for 90-day details to lvork on the Winter Pilot FACTS II last March. While the initial hope FACTS II project. Last Winter, 15 agencies taking part in a had been for 100 staffers from the agencies to FACTS II pilot test provided submissions for sign up, more than 200 signed LIP - at a cost Futwe Pilot 200 accounts. The FACTS II submissions of $500 per person. In fact, even more staff A pilot is planned for July, 19W lAshen were equivalent to fourth quarter SF 133 would have attended had additional seating agencies lvill submit FE’ 1999 3rd quarter Report on Budget Execution and FMS 2108 been available. data. This pilot will introduce other agencies Year-End Closing Statements that agencies During the seminar, participants were to FACTS II, allow agencies to use bulk had previously reported to OMB and Treasury, respectively. instructed in the use of U.S. Standard General transfers to send in their FACTS II data, rind The data subtnitted by these agencies was Ledger (SGL) accounting and the FACTS II enable testers, FMS and OMB to assess a able to pass extensive edits, and testers using attributes used in conjunction with SGI, variety of new reporting features. the FACTS II software were able to run a accountS to fulfill OMB and Treasur) variety ofreports, including SF 133s and FMS reporting requirements. Participants also sau More Infmation 2108s. a live, real-time demonstration of the FACTS The Center for Applied Financial Almost without exception, the testers Management is no\3 rvorking to put on II softivare. were very surprised to see an edit that checks FACTS II training sessions at several This Summer, the Treasury Financial FACTS II outlays against the year-endoutlays agencies; if you would like more information, Management Service (IMS) will offer free, published in the September 30 Monthly pleasecall ErikaMathis at 202-874-9542. For hands-on training for agency stafflvho xvi11be Treasury Statement (MTS). The edit shows additional information, cspeciall~ , if vou , are using FACTS II. that in many cases the budgetary general interested in taking part in a pilot, or in At its annual conference August lo- 12, ledger accounts with outlays do not match working on the FACTS II project as a detailee the Center for Applied Financial exactly with the MTS outlays, which agencies to OMB or Treasury, please contact Chris Management will also have presentations on report on the SF 224 Statement of Fairhall, Gw 3954836 / FACTS II. Transactions. Cl~ris_Fairhall~~ool~~h.eol~.go\~ or Jeff Hoge, To the degree they were surprised to see (202) 874-6179 / JeKHoge@ fins.sprint.com. 7 this edit, the testers also breathed a sigh of 16 ighlights from recent meetings of finalized in August 1999 and becomes (b) reconciling the heginning and the the Federal Accounting Standards effective for FY99 financial reports. ending balances of the subsidy cost allo\~~ance Advisory Board (FASAB) are for direct loans and the liability for loan summarized below. GovernmentwideSu@lementary guarantees, wrhich are reported in an entities New FASAB Members Kenneth Winter, StewardshipRe otizn8 balance sheet, and The Board ;r;iscussed a draft Statement of (c) providing a description of program Deputy Chief Financial Off&r, National Standards Recommended Accounting characteristics and disclosure for (i) the Aeronautics and Space Administration (SRAS) at its February and April meetings. amounts of direct or guaranteed loans (NASA), and Barry Anderson, the Deputy Since the SRAS includes reporting disbursed in each program during the Director, Congressional Budget Office requirement for National defense Property, reporting year, (ii) the estimated subsidy rates (CBO), were welcomed to the Board at its Plant & Equipment (1’1%) which are for the total subsidy and the subsid! February meeting. Mr. Winter is the currently under study, it is being held up until components at the program level in the representative for the civilian agencies, while amendments to Stewardship I’I’&E are current year’s budget for the current year’s Mr. Anderson is the CBO representative. completed. cohorts, and (iii) events and chun=cs in These new members replaced James Reid, .t‘ formerly Deputy Controller, Department of economic conditions, other risk factors, Social Insurance legislation, credit policies, and subsid) Energy and James Blum, formerly Deputy The Board continued its discussion of the Director, CBO, who recently retired from estimation methodologies and assumptions, five major issues identified at its October Federal service. that have had or would have a significant meeting. A discussion of Issue 4 involved the impact on subsidy rates, subsidy cspse, and question of whether the standard should Deferral of Para raph 65.2 of SFFAS No. 7 subsidy reestimates. continue to specifically identify social Paragraph 6 $ .2 of the revenue standards New documents issued by FASAB insurance programs or be changed to require requires disclosure of material include: the programs to meet general criteria. Issue 5 revenue-related transactions such as penalties, involved the question of whether additional Approved Recommei~dcd Stnnhrds abatements, interest, and collections. At its rationale would help certain users to * Management’s Discussion and Analysis: DecemLxr 21st meeting, the Board issued a understand the standard. The Board decided Concepts recommended standard that would defer for not to change or add rationale to the basis for 0 Management’s Discussions and three years the required disclosure of certain conclusion. Analysis: Standards detailed information regarding At its April meeting, the Board deferred * Amendments to Deferred Maintenance revenue-related transactions - as required in voting on approving the recommended Reporting paragraph 65.2 of the Exposure Draft Statement to the fLiture. 0 Deferral of Paragraph 65.2 “Recession of Paragraph 65.2 of SFFAS 7”. This statement has been approved and is * Material Revenue-Related Transactions issued as SFFAS No. 13. Management’s Discussionand Analysis Disclosures (We-A) At its February meeting the Board * Recognition of Contingent I,iahilitics Dejkred Maintenance considered cornmen& received& response to At the February meeting, the Board Exposure Drajts the exposure drafts “Concepts for discussed a proposed Statement of * Amendment? to Accounting for Direct Management’s Discussion and Analysis” and Recommended Accounting Standards Lams and Loan Guarantees in SFFAS #2 “Standards for Management’s Discussion and (SRAS) to move Deferred Maintenance from Analysis”. At the April meeting, the Board * Amendments to Accounting for the document’s notes to Supplementary Property, Plant, and Equipment approved the issuance of both the Concepts Stewardship Information (SSI) with and the Standards documents. The Board Required Supplementary Information (RSI) agreed that the effective implementation date Accountin and Audit&g Policy Cum&tee audit treatment. It was noted that KS1 was MAPC) for the recommended standard should be FY introduced in the private sector for ’ The’ Board reviewed the active projects 2000 and not FY 2001 as some wanted. experimental information for a period of time. currently t7ein.g undertaken by the AAPC in The Board agreed to RSI, and has provided the areas of Stewardship Land and Heritage Amendment to SFFAS 2, Accounting fw Assets, National Defense PI’&& Stewardship recommended standards, Statement of Direct Loansand Loan Guarantees Recommended Accounting Standards No. Investments, a Joint Review of Ste\t,ardship The Board approved the issuance of an 14, to the FASAB Principals (Comptroller exposure draft that adds: Reports, and an Inter-Entity Cost Project. General, Secretary of the Treasury, Office of (a) reporting subsidy reestimates in two For more information, please go to Management and Budget Director). Once distinct components: the interest rate FASAB website: ~~~~~~,.firlarlcetlet.~~~~~~~ulcenet approved by the Principals, the statement is to fed/fasab or contact Dick Tinglcy, (202) reestimate, and the technical/default be submitted to Congress for a 45day review 512-7350. o reestimate, period. The amendment is expected to be organization’s ability to operate effectively. internvined.” As such, program managersdo The changing legislative and administrative not necessarilyneed to be concernedaith the landscapethat has dominated much of the detailsof the accounting process,but they do 199Os, part&l, ar1y in the Federal financial need to be able to at+7,e financial management arena, has created a need to information in order to make effecti\re ver the past decade, several expand and enhance the basic abilities, or program decisions. Com~erselp,financial legislative initiatives, such as the competencies,that a financial managerin the managersmust have a nrorking knonledge of Chief Financial OfEcers Act of Federal government requires to effectively programs to be able to provide rele\2tnt, 1990 (CFOs Act), the lead an organization. Theseinclude, but are reliable information to support the anahrsis (;overnment Performance and Results Act of not limited to: and decision processes. Extending &is 1993 (GPRN, the Government * the preparation, analysis,and concept to other fitnctions, financial and Management Reform Act of 1994 (GMRA), interpretation of consolidatedfinancial program managerscan not perform their and the Federal Financial Management statements; functions effectively aithout the support of Improvement Act of 1996 (FFMIA) have accountantsand budget analysts,who provide 0 the formulation / execution of budgets created an impetus for enhancing the quality much of the raw data usedto make decisions. under increasinglyconstrainedresource :lild effectiveness of Federal financiai Similariy, information technolog! ad caps; management. Recognizing that the financial systemspersonnelmust mainrnin an cornerstone of this and any significant * the development and implementation of awarenessof any technological or process endeavor restswith the people involved, the complex and usefulfinancial and advancesor improvements that may Eicilitate Human ResourcesCommittee (HRC) of the managementinformation systems;and the working relationship among &ese and Chief Financial Officers (CFOs) Council and * the development and useof other functions. the Joint Financial Management performancemeasures. The Ldriving force behind this integrated In~l~rovement Program (JFMIP) have approach is the pursuit of an organization’s undertaken efforts to improve the The joint project to develop core mission through optimum performance, as recruitment, training, retention, and competencies for Federal financial articulated through and intended by the performanceofFederal financialmanagement management, in great part, builds and GI’RA. As such, tnuch of the cot~~mot~ali~ personnel. It hasbecomeand will continue to expands upon work already undertaken by among the functions discussedin this article be E’italfor organizations to employ staff and JFMIP to identify knowledge, skills, and involves strategic planning and performance managcmcnt who possessthe skills and abilities for certain financial management measurement. In fact, other than general competenciesnecessaryto effectively manage functions. In July 1998, the HRC and JFMIP communicative abilities, theseGPRA-related Federal progratns as Congress increasingly completed a multi-year project to develop skillsare the only distinct competencicsto be uses historical and expected program core competenciesdocuments covering the referencedto varying degreesb!r each of the performance as foundations for funding following employment categories: competenciesdocuments. decisions. * Accountant The importance of the competencies’ Impovin~ the Federal WiwkjGrce In the * Budget Analyst inter-relationship in the contest of GI’RA fall of 1994, a government-wide training requirements is already being demonstrated * Financial Manager symposium set the development of core in current CFO Council activities. TVQ of competencies for financial management * Program Manager these initiatives are highlighted in the 1998 personnel as a priority for human resource l Information Technology (IT) Personnel FederalFinancialManagement-StatusReport development. This coupled with a strong and Five-Year Plan, an annual report on o Financial SystemsAnalyst governmentwide efforts to reform financial desireby the HRC to assistCFOs and other leaders in developing and retaining a a Management Analyst and Financial management prepared jointly b)r the CFO highly-skilledworkforce, servedasthecatalyst Specialist Council and the Office of Management and for a joint project between the HRC and Budget (C)MB.) JFMIP to cievclop core competenciesfor a Gmmm Paths -I.mdin~ to Pe$mance One initiative is to link performance variety of Federal financial management A significant characteristic of the core measurement initiatives with personnel functions. competencies viewed collectively is their accountability initiatives. That is, an inherent inter-relationship and inter-dependence incentive is created to meet GPRA What are Cure Competencies? across functions. This phenomenon was requirements by integrating GPRA- related Core competcnctesare defined in popular activities (planning and performance articulated in a July 1998 Gm-rnwzn~t businessliterature asthoseskill setswhich are Ewcutiw article, The True Financial measurement) into it&+dital essentialto the effective managementof an responsibilities. In so doing, core Manager, by Irwin T. David, Chief Financial organization. They represent the competenciesprovide an effective 1&i& fitr and Administrative Offtcer at the National f~tn~~at~~entalca~~abilities that individuals must Weather Service. Mr. DavicYs article promoting the development and use of posstzssto accomplish the organization’s relevant performance measuresand strategic characterized financial and program mission, and can rarely be substituted or plansat multiple levelsof the organization. As management as being “inextricably replaced \vithout compromising the 18 strategic ad performance plans serve as 3s enhanced recruitment and retention blueprints for department, bureau, and initiatives. The HRC is also seeking to ensure agCilCp operations, greater employee the perseverance of competency through the involvetnctit can lead to a greater establishment of minimum requiretnents for understanding of each individual’s respective continuing professional education (CPE) so role within the organization. A second individuals may maintain their competencies initiative concerns integrating performance in the face of a changing legislative and measurement under GI’RA into the budget administrative landscape. The endurance of oday, Army comptroller careerists arc process. This represents GPRA’s extended such initiatives and the realization of their finding they must be skilled in more impact 011 Federal managetnent as potential benefits are, however, dependent than just their main functional area. performance serves not only as a means to upon the vision and s~~pport of current They must Lx- multi-furlctional and evaluate and mod@ current operations, but Federal management. multi-cfimeiisional, capable of analyzing and also as a foundation on which future policy It now becomes incumbent upon current handling variotu situations. The Arm! decisions can Lx: based. Federal financial managers and other leaders C~tnptroller Proponencv Office is While there are certainly many other to implement and integrate these spearheading the devel&pment of the cotntnonalities among core competencies that competencics into the day-to-day as well as multi-disciplined Financial Analyst I’rogr.un colrld Lx: drawn, those pertaining to GPRA the medium- and long- term missions and which encompasses the design of a career are changing the way Federal progt3ms are activities of their organizations. Due to the tnodel including training, education, managed and are certainly among the more varied missions and operations across experience, professional development and itnportant in todafs Federal financial bureaus, agencies and departments, the core accreditation at various levels of one’s career. management environment. competencies documents are not intended to This progratn \vill have a two pronged be prescriptive, but rather to serve as general approach: first, for the ne\v Army careerist models for providing greater focus for and and later, for members of the current The Core Competencies docutnents that improving the performance of the Federal workforce. To date, core compctencies \vith have been issued define the essential qualities financial management workforce. 0 associated sample formal training to help that individuals in several key Federal achieve these competencies have Lien drafted. financial management functions should These cotnpetencies are based on the Joint possess. These functions and their related Financial Managerment Itnl~rovenient competencies, however, do not exist in a Program (JFMIP), Department of Defense vacuum. As the legislative and operating (DOD) and Army core competencies and are environment evolves for Federal being staffed wtth all levels of the Arm!, organizations at all levels, so too must the Financial ,Management communiq from HQ capabilities needed to operate effectively in Department of the Army (HQDA) to those emrironments. These competencies are In the near future, these installations. intended to meet the needs of the Federal reasuqps 9th Annual Government competencies will be available for comment financial tnaIla~i;““erttcommrmit)rdurilig this Financial Management Conference is on the Army Comptroller Proponency home particular era, but sotne measure of revision scheduled August 10-12, 1999 at the page. The next step is to design the career should be expected to accomtnodate Hyatt Bethesda, MD. The conference path beginning with GS-5 through SES environmental and organizational change. is planned by FinancialManagement Service’s delineating the types of training, experiences, The HRC and JFMIP have established a Center for Applied Financial Management. and education required at the various stages of review-board to insure that these core This year’s theme “Highlighting Solutions’ one’s career to receive accreditation. cotnpetcncies remain current. To date, the will focus on the improvements and Shortly, we \I+11tneet with private industq review board has already recommended developments made in government’s financial experts from Xerox, IBM, JCPcnney and changes to the core competencies for practices, systems, and operations. The Chase Manhattan to cxaminc their best accountants, budget analysts, and financial conference will capitalize and improve on last practices in this area. Many large managers. In addition, for further year’s successes by offering over 70 sessions corporations ensure their employees are encouragement, the HRC and JFMIP will be by experts governmenhvide on topics such as: multi-faceted by exposing them to myriad sharing ‘(best practices” concerning the accounting reporting, auditing, budget, different experiences and training. ArmI successful itnplementation of these core financial systems, procurement, travel, hopes to learn from them the pros and cons o? competencies within Federal organizations. technology,‘best practices, and GPRA. Other their experience. Also, they will tqin a series The HRC has already undertaken several conference highlights include corporate of visits to some resource rnlunaFe”entof~~ces projects, many of which include core exhibits, demonstrations, and panel to share our concept and get input from competencies as an integral part. In discussions by financial systems vendors; current circerists ‘ . . conjunction with the Office of Personnel prominent plenary speakers; and special If any individuals or offices are currentl! Management, the HRC is currently plenary sessions on such topics as legislative organized under a m&i-disciplined financial developing a set of more current and relevant issues. Please register early by calling the analyst concept, Army would like to hear from qualification standards for financial Center at 202 874-9560. 0 ContiFlLtfd on Pmqc 22. management fltnctions and personnel, as well __---...--.-- 19 Spring 1999 uc to the fact that Federal budgets monitor the effect of the enterprise uniti on quality lvork at a lower true cost than thev did cm no longer support &em as part the workforce, customer responsiveness and when functioning Lvitliin the traditional of a traditional workforce and goal attainment, and assess their ftnancial system. Their dedication to qualitv work infitstructure, “A few good men” - success. assures that internal and external customers and \vomcn - in the Forest Service are devising Furthermore, through efforts of the benefit - et11ployces, lnatl3g~ttlent anti new \vays to share their knowledge, reliability, Reitnrcntion Lab, 3 Memorandum of ultimately, the public. One benefit to and experience. They’re part of an experiment Understanding (MOI.7) between the Union management and the public is that this born at the Forest Service’s Pacific Southwest and Forest Service management was signed initiative has prompted management to look Region and Station’s Reinvention Lab and December 4, 1998 recognizing and defining at their full costs of providing services. are providing their skills and services in a enterprise teams and establishing the Services that were previously thought to be brand new way - through establishing procedures and arrangements for their “free” , are now reesamined in a nc~\r light. businesses of their own, called enterprise establishment and use. Since enterprise units’ success in part units, inside the agency. Through the development of a strategic depet& on return customers, they must ph, the Lab identified its objectives: focus on service andqualiq. Their vi& is that It might seem unlikely that an improve stewardship of Che land; improve managing and operating the mandates of entrepreneur can blossom inside a Fedcml service to the public thus improving customer national forests is every bit as important as agtmcy, but when 3 Forest Service tree responsiveness; itnprove operating operating and managing anv other business. measurcmctit expert saw the elitnination of ef-ficiencies and costs; and enhance the work They believe that managet&,t will realize his job looming on the not-too-distant environment for employees. that by utilizing the services of enterprise horizon, he made the detertnination that he Stewardship of the hand: Which element is units, the!; can get quality products in less would not go gently. In fact, he would not go of greatest importance to the owners of the time and tor less cost than they could attain at 311. Instead, recognizing that his services national forests? If the initiative focuses on any other way. were still valuable and necessary to the agency, value areas, although those value areas may The majority of these entrepreneurs are he found a way to help the agency help him vary in intensity, by far and away, the task of considered experts in their fields. The! keep his job. In the process, the agency is greatest importance is taking good care of the operate under the belief that it is not jtL?t learning to help itself do business better. This land entnLsted to the agency to ensure that goods and services that sustain a business, it’s employee has formed an enterprise unit he this generation and generations to come can the philosophy too. It is incorporating a work calls T.E.A.M.S. (Titnber Expert And see it, enjoy its beauty and diversity, play in it, ethic and solid business policies and practices Management Services) and is now marketing and make a living from it. Chances are good into their daily activities. Unlike private himselfand an apprentice to customers within that the dependence upon our ability to do sector vendors who mav have to understand his agency. His etitsepretictiring venture and this - and do it well - will increase, not the idiosyncracies of a’ given agency, these that of others like him was made possible decrease. With rhis in mind, and recognizing savvy specialists know their clients and their through the Reinvention Lab. that we are an agency in the throes of clients’ operations. They c;1n optimize their The 1,ab itself was established in August diminishing budgets and downsized staffs, it time and avoid wasting titne and money. 1997 as part of the Presidential Initiatives behooves LLSto step outside the boundaries of Their ability to provide expert service to under the National Partnership for our traditional ways of land stewardship and customers in multiple areas not on11 Reinventing Government (NPR) when Vice examine alternate methods of achieving this eliminates duplicate work, it reduces overail President Al Gore and Forest Service Chief goal. costs for current and fttture customers ike Dotnlxck chose the Pacific Southwest Senke to the public arid custowm through the achievement of economics of Region and Station as the place to begin and responsfileness: An ebbing tide in the numbers scale. It also keeps a pool of specialists lvithin autilorized the Regional Forester and Station of employees to provide needed services does the agency who can compete with traditional Director to waive all the rules, within confines not have to mean the benefit to the public has s&s, and with each other, for jobs. Market of the law. The term of the experiment: five to be reduced or eliminated, or that services forces are allowed to drive the econom) years; the purpose: to find better and tnore cannot be performed. Important projects do within the agency w%ere enterprise units are ecological 1173~s , to operate the nation’s forests not have to be temporarily or permanently set functioning. The Forest Service, then, is able - in short, to ftnd better ways to do business. aside. The task of managing the agency and to keep a highly skilled, high- performing To tneet that challenge, the T,ab set forth workforce productively employed, and it is the forests does not have to be compromised. to recruit, encourage, and train employees those highly skilled, high-performingn,orkers On the contrary. The enterprise units now who expressed interest in pursuing an that provide the best kind of ctutomer service currently operating under the mantle of the cntrprcncurial idea. The Reinvention Lab and to both internal and external cus1Stomers. Reinvention Lab make it their business to Enterprise Development Rank presently perform their work for ciErotners within the l$%imcies in op?tM/1Ztiomatld luwe~ costs: provides support to twelve operating agency with more enthusiasm than ever. They Even if budgets remain static, the purchasing enterprise units. The I& has developed a deliver top-notch services, are more cost strategic evaluation and monitoring plan to conscious, and produce an exceptional lelrel of - 20 power of the Forest Service budget is lost at the rate of 2 to 4 percent each year due to infk~tion. TlCs f&t and ttle currmt trend townrd continual txiciget reductions rquircs us to lookat altcrtlativc ways ofgetting the job done. Against this hackdrol~ of shrinking 13t1dgtxs and a diminishing workforce - Under an internal contract that establishts downsizing and rightsizing - consistency and price, defncs the project and timclincs, quality arc the hallmarks of the enterprise managers can choose between the enterprise units. Driven by 3 desire to t7.z successful, specialists, or ~wc existing persont& who may husincsscs in a market-driven economy will not have the advanced skills to perform compete for market share. The by-products spec&~ed projects. They give managers the of a market-driven ccono133y arc it33provcd option to contract with a team specifically Customer service and responsiveness and formed to provide espcrt advice and services better y:l!ity. TO :?l~liIlt~iil ;I COi;ipetiti;‘C without incurring transfu costs, FTEs, and edge, businesses musr nin &Gently. full overhead. To assist these IXSV businesses f‘unction Ed~anced wudz emimmtxt: A good work within a market-driven economy, the I,& environment is essential in motivating created a separate entity under the Forest employees and increasing fcrformance. In Service’s Working Capit Fund (WCF) private business, this can mean money in the called the Enterprise I)evelopment Bank. Its bank for both cmployce and the company. In role, in encouraging and fostering new a government land management agency, it cnterfrise units, is to provi& seed money and can and sl3oulcl nitxm the same thing. Even financial advice to the cntcrp%es and Co nmrc importm~ly, it can nican an overall produce full cost accounting financial improved benefit to the p,eople who own the statements (balance sheet and income land - the public. Ilcc~usc of a11 the marked statements) for each business to assisr its changes within the last few years, among owner(s) in making financial &&ions that them the trend toward fewer people doing the affect the business. Through the use of the same amount of work, there’s a downward WCF, the bank is able to maintain e;~h spiral in which productivity suffers and a entup-ise unit’s account, tracking revenue notcci introspective searCl3 among erqdoyces ad expenses, and can analyze 1lOW well to find job s3ti&ction. financially the tusincss is doing. AISO The enterprise unit cq~crimcnt is a way to through the use of the WW, the enterprise motivate en3ployecs frorii ii mere existence units are nhlc to collect through their billing and the meeting of basic needs to th;it of r3tcs, necessary fids for furure Waining, attaining a high level of job snti&ction and awards, research, marketing, and growth that self3chldization. The imtovntive and creative arc essential to their business survival. opportunity to establish and operate an Before it can opm for business, cad3 internal self- sustainiii~cntcrl,rise is appling cnterprisc unit is responsible for dcvcloping to many employees. They SW this 3s an and mGtaining a business plan outlining opportunity to direct their own desrinies products and services, sales ad within an agency they highly regxd. They can ting strategy, and financial scrateg. It enjoy the freedom to perforn3 in a capacity IllliSt ilKh& a plan fbr continued that cxites thm3 and allm~s thhcm to sustainaMity and growth potential. The unit ~i~~il~ii~~ their contrit-ution in the arc;fs of identifies rcvcnuc producing (billable) hours their expertise. They are able to relate the and dctcrmincs their full operating costs, value of their work to the agency’s mission including overhead, to cstuL3Iish a p-icing and their direct contribution in meeting its structure. Pricing must LX within nrarket objectives. Since they come to work xvith a demand constraints. renewed enthusiasm, they arc an inspimtion to others who feel tbt &dining hrdgets and dowJ3sizingh~s, or is, clevdning the work thq have done in the past. --.-~.. -.-~ .-.---.-. I designed a form to collect Jilta from agencies regarding their procumnent plans. This information will Ix posted to the PM0 KnonLlgchase. I also helped to develol~ a questionnaire that will ty used Co solicit information from agencies on lessons learned after irnplcmcnting 3 core financial system. This information v,dl tw \~aluahle to other ngencies tlrat art’ l~laiining systc111 ad final djustnwits posted to the iIiil~lcmetit3tioIi. kno~vledgeh~~ in mid-April, JFMIP will J~~IP V.QS interested iu \tbt agencies commence testing in June. Three testing thought were cl1e more important teams \vill tx fiel&l and work will continue value-ad&d fccitures, u+ich vi11 lx ohsmwl throughout the summer. The JFMIP I’M0 is when qualifying vendor sof&we. Agencies \\‘ere surveyed and I followed up with The fint ntt\~orkin~opyort\lnit~ lqan al staf~tlg up to meet this mwkload. Several new agencies for their input, compilecl the data, the FE1 \VhW tk ax) Fcllo~vs 11xX. st~itfnmnt~rs have recently joined the JFMII’ Assignments at JFMII’ have presented and l~rovidecf matrices listing value-added staff (see page 3 of this issue). I:LII-I~~I-~LI~ occasions to nc8\wk mith agcw~ features in ranking order. This infbrmntion We have scheduled 311 the vendors who rcprcsentati\w and vendors. JFMIP is will be posted to the I’M0 Kno\vlcLlgcbase to have applied to 1X tested by the enil of continuously invol\d in iritcragrncv teams to communicate to agencies and vendors. September. Softvwe pc kages that update or dcvclol~ financinl’ system JFMIP’s customer service nttitude is in line requirements rind core competencies. JDIII’ s~icccssf~tlly pss the test will receive 11 with Executive Order 12862, Setting has hosted a nimitxr of agency detdccs on certificate of qualification on Septenilw 30, Customer Service stnndnrds. dcveloprncr~tnl assignments. Then there arc 1999 that take eflkct on Octotxlr 1, 1999-the the lunches, m+ierc you could infbrmnlly meet beginning of the first fiscal year of the new Communication agency representatives to fwthcr de\~elop rnillcnnium! 0 Throughout the year, I have had your nctnurk. ~iimicrous writing assignments. I made sut~stnntial contritwtions to the quarterly CFO Fellows Recomnaendntions JFMP Nm?c by mrriting and editing articles, The 1998-1999 CFO Fello\vs progrnm and developing profiles of senior finmcinl \I’us the first clnss arid \I’c off&d of~cials. I worked m the up&te of theJFMZP rcconinicmkd m’ays to improve the programs. Che Finamial Qstm llequi~emmts; wmte Several suggestions were inq~lemcntd for the press releases; prclwrd Federal Kcgistcr 1998-1999 clnss, are: cstuhlishing hrou7i tXg nnnouncenients for eslwsurc drafts of l~tnches; receiving hrictittgs from qycv (IF0 financial systcnis requirements. I also otfices; ;ui iiitrodwtion to the CFO &incil; Women’s Fxecutive LEadership Pyoflram prepared an option piper and an issue paper tbrniulating n CFO F‘c 11O\IJ llonlep”g’; ad JFMIP has continued to support the for the JFMIP Steering Committee’s review receiving briefings from 3 private conyw~\‘on Women’s Esccutive Imdership (WEId) and action. I also worked at the Presidential iCs CFO operations arid tiom the Congress. l’rogram by providing cte\,elol,mcntal work Management Intern Job Pair to exl&~in assignments for progrm~ prticipnts. The JFM1P.s role rend rcsponsihilities and to The CFO Fellou~ l’ro~ram mill conclude WEI, I’rogrmi is a one-year nmiagenmX msmw questions. dcvclopent program for men and worncn at the G-1 1 rind GS-12 le\ds. The propm Training and Best Practices My assignment at JFMIP had man) is coordinatect and directed by the U.S. training ol-yominities rind espsLire to Ix% I+mment of Agriculture Grdunte practice forums. Knrcn Aldernun, JFMIP SC hool. Executive IXrcctor, is ;I model for continuous I.inda Taylor, a procurement malyst learning. I attended timtnis hosted b!, the from I~epartnmit of State, is assigned to CFO Council’s Committees, the Presidenr’s JFMIP for LI 2-month developnleIltal detail. Council on Integrity md Efficiency, aid the Since joining the office, she has assisted wirh Federal I~iil~lcmcntntio~i Technology a JFMIP Open House and a Presidential Electronic Cn,mniittee to share agaq Mnnagciiient Intern Program jot? fair. She is inf&mation anal best practices for issues, such working 011 the Core ConipcteIlc~ XT accoimtahilit) reprts, Government publications for accoLltltaIlts, tuig’t l~crformance and Results Act, performance nicasures, and electronic coninicrcc. I also analysts ;mil financial mmigcrs. She also attended conferences on Defending worked on articles included in this issue of Cyberspace, Association of Gowrnnient JFMII’ News. o Accountants I,ea&rship Conference, and the 23 Karen Cleary Alderman JFMIP 4 Scott Bell . . . . OMB a rite to ews at: D Room 3111 Patricia Clark . . . JFMIP 441 G Street NW Bernadette Dew. . Treasure-FMS_I Washington, DC 20548-0001 Michael Duffy . USDA-Forest Service or call, 202/512-9209 Chris Fairhall . . . . OMB Linda Herbert. . . Justice-INS Jean Holcombe . OMB Tavia Hollenkamp . USDA-Forest Service Janet Laytham . . Labor Lucy Lomax ............ FASAB Dennis Mitchell .......... JFMIP John Oberzut ............ Labor Andrea Palmer .......... FASAB Rocky Rockburn ........... GAO Lisa Shames. ............ GAO Patricia Slocum ........... GAO Dot Sugiyama ............ Army Linda Taylor ............ JFMIP Dick Tingley ............ FASAB Soliciting Editor: Doris A. Chew JoAnn Van Beuschem ........ DOD Publications Specialist: Bruce W. Kletz Betty White ............ JFMIP Kathleen Wolcott . USDA-Forest Service US General Accounting Office 441 G Street NW Room 3111 Washington, DC 20548-0001 Official Business Penalty for Private Use $300
JFMIP News: A Newsletter for Government Financial Managers, Spring 1999, Vol. 11, No. 1
Published by the Government Accountability Office on 1999-01-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)