oversight

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)

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
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