J o i n t Financial M a n a g e m e n t Improvement P r 0 g’ r a m A Newsletter for Government Financial Managers Summer 1999 Vol. 11. No. 2. New Secretary of the First Class of CFO Treasury and JFMIP Fellows Graduate Principal he historic Indian Treaty Room in the Old 0 n July 2, 1999, the United States Senate confirmed Lawrence H. Summers as the seventy-first Secretaryofthe T Executive Oflice Building was the setting for a reception on May 17th to celebrate the successful completion of the inaugural year of the CFO Fellows Program. The first classof nine CFO Council Fellows, their families, and Council members Treasury, replacing Robert from the host and home agencies attended the E. R&in. In addition to his afternoon event. duties as secretary, Mr. The CFO Council Fellows program was Summers will serve as a established to identify and develop a diverse cadre of JFMlP Principal to oversee candidates for future executive level financial the general direction of the management positions. Each Fellow spends a full year Program. The other JFMIP on challenging senior level developmental assignments Principals arc the Director, at a host agency different from their own. They also Of&e of Management and receive formal training from the Federal Executive Budget, the Comptroller Institute and the U.S. Department of Agriculture General of the U.S., and the (USDA) Graduate School. The Program is designed Dir of the OlIice of Personnel Management. to give the Fellows opportunities to affirm their OiMBRemksFhmcial systems circuhr Prior to becoming Secretary of the Treasury, Mr. leadership potential by demonstrating initiative, 9 Summers served as Deputy Treasury Secretary for four creativity, adaptability and the ability to lead as well as years. In this position, Summers played a leadership to work effectively on teams. Psittiq~ ServiceBackin Govt role in the Department% workon international, tax and Nor-wood J. Jackson, Jr., then Deputy Controller, SerprceDel&y domestic policy issues, as well as financial system and Office of Federal Financial Management, OMB, 9 law enforcement issues. delivered the opening remarks. He described his Elimhsat@gGTBs Mr. Summers came to Washington in 1991 to serve vision for the future of Federal financial management 10 as Vice President of Developmental Economics and leadership, and reminded the Fellows that their Chief Economist of the World Bank. Following that, personal qualities of initiative, imagination and CFO CouncilTeamsw&b he moved to Treasury, where he became the Under integrity are those qualities essential to effective Feahnl Lean&g l&change Secretary of the Treasury for International Affairs. ’ leadership. 10 Before entering Federal service, Mr. Summers Phil Hudson, Director of the USDA Graduate School, which administers the CFO Fellows Program JFiMlPlWwk&ebase Helps worked as a teacher and researcher at MIT and Harvard IinproveFinan& Systems University. From 1987 to 1993, he was the Nathaniel for the Council, addressed the group. He commended 11 Ropes Professor of Political Economy at Harvard the CFOs of the home agcxicies for making the tough University. He has written extensively on economic decisions to give up the “best and the brightest” to Tear 2000 Up&e analysis and policy and is the author of &-&%a&@ invest in the future of Federal financial management, 12 Employment,co-author o fRe@m in EasternEwqe, and and congratulated the Fellows for pursuing new editor of the series Tax Policy and theEcoswfi~v.During challenges. “Hats off to the CFO Council for helping FASAB Up&e his distinguished career, Mr. Summers has been to make a real investment in them,” stated Hudson. 13 awarded the John Bates Clark Medal (for outstanding Thaddeus Kontek, the CFO Fellow from the American economist under the age of 40) and became Departmentof Labor who served his Fellowship at the Treasmy3 Goalfi Career Devehpm+xt the first social science recipient of the National Science Environmental Protection Administration, was 14 Foundation’s Alan Waterman Award (given for chosen by the classto speak on their behalf to describe outstanding scientific achievement). the nature and value of their experiences. NASA GoalPerjiwmance Mr. Summers is a native of New Haven, Certificates were presented to the Fellows by Ken EvaluationSystem Connecticut. He is a fellow of the Econometric Society Bresnahan, Acting Chief Financial Officer for the 15 and the American Academy of Arts and Sciences. n Department of Labor and Chair of the Human Cmtind onpa~c6. t. h pmmws Summer 1999. 1 A Joint Perspective he JFMIP output for the summer of temporary duty travel, and relocation travel financialsystemandsubsidiarysystems--and T 1999 continues at a brisk pace. JFMII? is working in partnership with the Federal community to provide strategic tools to support the Chief system requirements. They reflect system requirement changesthat resulted from the Travel Reform and SavingsAct of 1996 and the Travel and Transportation Reform Act of 1998, as well as the reissuedFederal Travel also update the Federal ginancial Svsten:I Framework document, that will provide ‘;1 complete beeline by the end of calendarye: 2000. Q P Financial Officers Regulations (FTR) . In addition to CorelGnancia1 SystemTesting and (CFO) Council’s mandatory requirements, the document Qualification Process strategy to improve identifies value-added features that leverage In June JFMIP commenced with testina Federal financial businesspracticesand technology to maximize vendor software using the new testing ant systemsand human support while minimizing administrative qualification process. Six sofiware package. 1 resources. Progress costs. are scheduledto be tested by October 199? continues in In June, JFMIP releasedan exposuredraft when the existing Financial Managemenf developing JFMIP for Seized Property and Forfeited Assets System Sofiware (FMSS) schedule e ’ fin&&al system SystemRequirements.Commentsare due by An “Open House” is being planned requirements. The mid-August. Michael Perez and Robert October to announcethe resultsof tl Kwendeay Alderman and qualification process. Infornlati core financial EceeutirE Directw,JFNLP Weeks, Department of Justice, and Denise system testing and Wood, Department of Treasury, led the task this event will be posted on the qualification force to update this document. Major “Knowledgebase.” process is well under way. The revisions incorporate recent legislative Related to the testing and qualificati ‘Knowledgebase”is now beingusedby awide changes and Federal accounting standards, process,OMB issuedthe interim revision 01 array of government and private sector including Federal Accounting Standards OMB Circular A-127, “Financia/ organizations to stay abreastof progress. The Advisory Board (FASAB) Standard number Management Systems,” on June 10, 19991 JFMIP Steering Committee recently agreedto 3, “Accounting for Inventory and Other which off%ziallyeliminated the res sponsor the CFO Systems Committee’s Related Property.” The document also has Federalagenciesonly acquirethe s Finunciul Manu~ement System Compliance new sectionson property seizedfor purposed related services from the Feder Rev& Guide. In addition, J’FMIP is working other than forfeiture, a glossaryof definitions Management System Software with the CFO Human ResourcesCommittee and inclusion of mandatory and value-added Schedule. The new policy require to update the documents on core requirements. use off-the-shelf software that competencies for financial management In the next quarter, subjectto the approval qualified through the JF,zIIP proc personnel in the Federal government. The of the JFMIP Steering Committee, the replacing their core financial ma short summary that follows highlights key exposuredraftsfor the Grant Financial System software beginning in FY2000. players, accomplishmentsagainst goals, and Requirements and the Guaranteed Loan requirements include agency notification td provides a forecast of major activities that will System Requirements will be released for JFMIP of plans to acquire new systemsand occur aswe transition to FY 2000! comment. These teamshave been led by Al GSA responsibilitiesfor providing a scheduld Muhlbauer, Deputy CFO, National Science for agenciesto procure software. Starting . S stemReqz&ementsOutlook-M&kin. Foundation, and Jim Philips, Small Business FY 2000, there will be no mandate &fress Administration, respectively. The Exposure schedule. n June 1999, JFMIP reissuedDirectLoaf1 Draft ,for Property System Requirements is The interim final revisions of the Systrrn fiqtirements. This document was anticipated for late this fall. Stan Azebu of the Circular A-127 precedessubstantive re developed under the skilled leadership of Department of Defenseis leading this effort of this policy document which will be Linda Paulson and Maureen Harris, and Dorothy Sugiyama,a DefenseLeadership this fall py the Federal financial manageme Department of Education, with strong and Management Program participant from community. One policy question that h participation from the Departments of emergedis whether government agenciest the Department of the Army, is serving as Agriculture, Commerce, Veterans Affairs, the acquire core financial services fro overall executive coordinator for this project. government agencies under cross Federal Emergency Management As these projects reach closure, JFMIP is arrangementsmustusesystemsthat Administration, General Accounting Of&e setting its sights on developing system qualified under the JFMIP testing a and the Federal Credit Policy Working requirements for the remaining functions in Group. This document describesthe full qualification process. The OMB Circul the Federal financial systemsarchitecture that update processwill define the requiremer scopeof requirementsfor an automateddirect have yet to be defined. Next on the agenda for Federal agencies, However, the JFMI$/ loan system. will be Benejt Payment SystemRequirements Steering Committee hasdecided to make the In August, JFMIP will reissuethe TyaveZ and Acqtiisithm $iem Requiwments test and qualification processavailable on a1 SystemRequirements.The JFMIP owes a debt documents. JFMIP will belooking to identify voluntary basis to agenciesthat offer core of gratitude to Bill Topolewski and Eileen leadersfrom the Federalcommunity to begin accounting servicesto other agenciesstarting! Rollyson, General Services Administration, theseefforts in the next quarter. The goal is to in FY 2000. Those agenciesthat passthe tes$ who led the update process. These updated lily define the finaional requirementsfor the mandatory requirements addresslocal travel, Co~7tinlred on page 17 ! Federalfinancialsystemarchitectur~the Core A Summer 1999 JFNn NEWS JFMIP Steering Committee Changes wo new .JFMIP Steering Committee Steering Committee meets monthly to Officers Act of 1990. He is involved with the (SC) members were introduced last oversee projects and activities of the Program. government-wide implementation of the Act, Mr. Steinhoff is and other financial management 1 the,Acting Assistant improvement legislation. Jeff Steinhoff has of William Early, Comptroller General beenthe alternate SC memberfrom GAO for General Services for Accounting and ’ the past 15 years. He succeedsGene Dodaro, Administration, Information who is now the Principal Assistant and Jefie’ery -Management at Comptroller General at GAO. ‘. Steinhoff, General Mr. Early is the new. Chief Financial Accounting @ice. responsible for Officer at GSA and is profiled with the new The other JFMIP accounting, CFOs;/IGs.‘He succeeds ThomasBloom, who Steering information~ is the Director, Defense Finance and Committee mana&ment, Accou,ntingService,DepartmentofDefense. members are Je@y Steinhof budget, and Norwood (Woody) Jackson, Acting representatives of audit&$ issues Controller, Office of Federal Financial Am-- F urnce Management, andthe O&MBrepresentativeon acrossthe Federalgovernment. He hasserved ~Management andiudget, Office of Personnel on the staff of the Senate Governmental the JF&iIP SteeringCommittee,left the Federal ~Management, Department of Treasury, and Affairs Committee and was one of the government in mid-August. He is now a the Executive Director of JFMIl? The principal architects of the Chief Financial seniordirector in aprivate consulstingfirm. 3 .. -.- _.__ -..- ._____ ‘New IGs and C.FOs everal new Inspector Generals S appointment asIns ector General,Ms. Lewis as the first, Inspector General for Tax (1G)have taken their positions.-in served asGeneral & unselat the U.S. @Iice Administration of the Department of Executive agencies. The General of Personnel Management (OPM). As the Treasury, His staff of 1,050 criminal Services Administration and the chief legal advisor to the Director of OPM, investigators and auditors works to detect Department of Education have added new she led the legal support of reinvention fraud, waste and abuseand to assureefficient members to the Chief Financial Officers initiatives, including the privatization of two program administration. Prior to his Council. Phyllis K. Fong wassworn in asthe major OPM Programsand the abolishmentof appointment in Tax Administration from fifth Inspector General of the U.S. Small the FederalPersonnelManual. From 1987 to 1996 to 1998 Mr. Williams served.‘asthe BusinessAdministration (SBA) on April 6, 1993 Ms. Lewis served with the’ Senate’ Inspector Generalfor the Department of the 1999. Ms. Fong wasnominated by President Governmental affairs Committee as General Treasuryandthe SocialSecurityAdministration. Clinton in October and approved by the Counsel, Counsel, and Assistant Counsel. President George Bush appointed him as Senate on March 17, 1999. ‘Prior to her Sheplayed a leadrole in the developmentand Inspector General of ,the U.S. Nuclear confirmation, Ms. Fong served the SBA as passageof the 1998 Inspector General Act Regulatory Commission where he served Assistant Inspector General for Management Amendments and the Civil Liberties from 1989 to 1996. and Legal Counselfrom 1994 to 1999 and as Restoration Act. Ms. Lewis alsoconducted Mr: Williams hasalsoservedasDirector of Assistant Inspector General for Management oversightof FederalInspectorGeneraloflices. the Office of SpecialInvestigations at the U.S., and Policy from 1988 to 1994. Before entering the public sector, Ms. General Accounting Office, Director of Ms. Fong alsoservedasAssistantGeneral Lewis was a volunteer attorney for the Operations in the Office of Labor Counsel for the Legal Service Corporation Washington Lawyer’s Committee for Civil Racketeering at the Department of Labor, from 1981 to 1983 and as an attorney with Rights Under Law, where she assistedstaff and on the President% Commission on the US. Commissionon Civil Rights from attorneys in conducting employment and fair Organized Crime. He wasa SpecialAgent in 1978 to 1981. She is a member of the housing discrimination litigation. From both the United StatesSecret Service and the Tennesseeand District of Columbia bars. Ms. 1984 to 1985 she was an associateat the United States’Military Intelligence. Mr. Fong was born in Philadelphia, Pennsylvania Washington D.C. law firm of Feder and Edes. Williams is the recipient of the U.S. Bronze and raised in Honolulu, Hawaii. She In this position she representedand advised Star and the Vietnamese Medal ‘of Honor.. graduated from Pomona College with a B.A. trustees of multi-employer benefit funds, Mr. Williams isagraduateof Southern Illinois degree in Asian Studies, and earned her J.D. pension beneficiariesand unions. She also University and receivedhis Advanced Degree degree from Vanderbilt University School of worked as a field attorney with the National in Education and aMastersin Education from Law. Labor RelationsBoard in Chicagofrom 1982 the University of Illinois. He has also ,Lorraine Lewis was sworn in as the to 1984. attended the U.S. Military Intelligence Inspector General of the U.S. Department of David C. Williams \vas nominated by PresidentClinton and approved by the Senate Continrred on pfle 11. Education on June 14, 1999. Prior to her 3 ;, Lb== *- I pMlrNEws Summer 1999 ,!= FINANCIAL MANAGEMENT PROFILE w endy Comes is the. Executive Director of the Federal Accounting Standards Advisory Board (FASAB), and has served in that position since 1997. Ms. C&nes,has; nearly 15 years of experience wi* Federal kd state governments. Prior to being selected as the Executive Director of FASAB, Ms. Comes served as the Assistant Director from 1994 to 1996 ”’ Ms. Comes believes that the CFO Countiil’s Human Resources Committee is addressing many of these concerns. “My suggestion is that, this effort continue to’ be recognized as vital and that a real commitment be made to change. From mv viewon the sidelines. ~~~~~~~~~,I- see-- some --.-.- _._-___- momentum ____ result of the committee’s efforts under Ken ____ -huiid-.-_ Bresnahan’s lead&hip. Tt would be a shame to let inp ---% -.. :I< -a and began her tenure with the organization as a Senior .I: any ohportunity for progress slip awhy, Without Accountant in 1991. Ms. Comes worked as a Public top notch professionals we can not realize Utilities Specialist with the Naval Facilities ., meaning+ impiovement in financial Engineering Command from 1989 to 1991. Befoce managementi” beginning her Federal career, Ms. Comes worked as a Wheri asked &out the implementation of Senior Financial Analyst for the Potomac Electric .managerial cost accounting, Ms. Comes stated that Power Company from 1987 to 1989 and served as a to be successful it must be an integral part,of the staff member of the North Carolina Utilities management of the department. ‘“The members of Commission from 1982 to 1986. the CFO stafY must be partners with the program Ms. Comes graduated with distinction from the managers and department managers. The University of Virginia in 1982 and holds a BS degree information resulting from routine cost accounting in Commerce. She is a member of several profession must be timely, understandable and useful to organizations, including the American Institute of I managers of all types:’ “Ultimately, the impact C&tified Public A&ountants, the Greater should be that decision-makers are abie to weigh all Washington Society of CPAs, the Association of Government the rele~~~tfactors--financialandnon-financial-inmakirlgdecisions. Accountants, and the Institute of Management Accountants. The vitality that comes from cost accounting is not really from having Additionally, Ms. Comes has served on the Members in Government historical information about the cost of what you’ve already done. Committee of the AICPA, the AGA Professional Certification Board, Rather, it comes from understanding-and being intimate19 familiar and the AGA Certificate of Excellenci: in Federal Financial Reporting with-the activities driving costs, the value added as a result of the Board. ? activities and. what this means for the future.” As the FASAB Executive Director, Ms.’ &mes has a full range of Ms. &m& is in ,favor of moving toward standardizatidn of core responsibilitiek for: .n&ntaining and coordin&ng a broad ne&ork of requirements for financial systems. ‘cStandardization offers a number financial management constituents, dibeeting staff research and bf advantages such as improved bioducts from vendors and base level conducting outreach, serving as the Chair of the Accounting and functionality ‘guaranteed’ in off-the-shelf products.” Ms. times is Auditing Policy Committee (AAPC),’ an+ retaining informational curr+ly a member of the task force that is setring the requirements for liaisons with the CFO and IG communities, + well as the AICPA, the property systems. “I “believe that the process .of setting the AGA, and the IMA. As Chair of the AAPC, Ms. Comes must requirements offers tremendous opportunities for the financial and consolidate stakeholder needs ,and expectations into sound policy pro&-am managers who participate. The attendees benefited greatly decisions. This task is often accomplished by fornlal guidance issued by from seeing how others have dealt with complex systems designed to the AAPC or through sponsorship of training that facilitates the meet more than just financial heeds. The discus@ extends beyond implementation of new standards. the basic software hctionality and into the processes associated with Ms. Comes is quite concerned about the lack of qualified, property mqagement. Participation in such efforts is an excellent way multi-skilled personnel to perform the more complex tasks demanded to learn from what others are doing and to take a step, back to view the of the Federal government. “I+man capital issues are critical to management function from different perspectives.” Ms. Comes also success but are rarely easily resolved. Changes that would enhance our believes ~that specifjring value-added features is. beneficial in the long ability to attract and retain qualified personnel are both structural and run. “Having value-added features fosters the creation of a demand for cultural. The Federal government is placing greater emphasis on more features and an opportunity for vendors to gain a,competitive accounting through legislation such as the CFO Act and Government advantage. Hopefully, this approach will ensure a gradual transition r . . * a* . .. Management Reform Act but not greater emphasis on accountants. rrom minimal systems to value acideq systems.” Accoun~~ts need access to high quality training, a clear career path, Ms. Comes believes that government financial systems must be and iecognition for good performance.” Being a member of a improved in order for progress to continue. “Some have suggested profession, as evidenced by certification, means that individLrals have that for real financial management improvement we must have attained certain &ills and knowledge, and that they must maintain information standards such as accounting standards, information those skills through continuing education requirements, and comply systems, audits, and the experiencedstaffto make it all come together. with certain ethical and/or technical standards. Continned on pige 1 Z ‘Summer 1999 JFm NEWS _j rank W. Sullivan has served as the :?eputy Assistant Secretary Sullivan anticipates mdst agencies will be able to ident@ the filll costs for Finance and Deputjr Chief sinancial Officer of the ,of their programs. The challenge for the financial management Department .of ‘Veteran A%irs (VA) since May 1994. He c&mmnity is oil inipleinentation of tost accounting s\‘stems. F describes the .role df +e DCFO ‘as ‘being .‘_ ‘~Finaricial m&nag&s need to continue to’ ~11 the &reef&J: first, to m&-tin stewardship ,over ,&e ‘imQoti&ce ‘of cost accdmting to program Department’s resources; .second, to continually mantigers whose primary f&us may not even be provide ,ancl ,improve finan&l policy, finan+ j reniotely rilated to finance: We riiust~!e able to systems, and financial ,operations andsupport se&es ‘ih@w how:cost aCcounting.d&a can.provide’+alue to :for all D$partment,organizations; and third, to serve ‘kh&i$ and ?hst it is ,tiot just a finatice ‘Ihilig:.“. as the primary advisot ,to VA’s Chief Finarici~l’Oficer A str&&litie& sA&oui&b$ty Repbrts btings on-these matters. This involves all’aspects of’financial the ‘one &tip-&i$phig? .c&tept to ,,,iina’ncial management ,including devekoptient df ‘reptirting, According to &it. Stillii~an; tie, CFO department-wide financial policy ,guidance and _! cor&iittee wanted to redesign the process :because financial reports/data; ‘oversight of depahental ‘(e’vejione agreed ‘there .were to&matly staridalone &an&l progr$ms; msntenance and support of VA’s reports with too much rep&it&e ,ilifot?i%$ion. financial accounting systems ,and compliance of these None of the reports ive& uticr frieridiy - they were systems wi* Government-wide accounting unjnt@&ing to read, iriforma&ii you w+$ trying principles and standards; dev&lopment and to locate .was hard to find, and th&-eports ‘sCldom ,implementation of long-range financial systems individua‘lly ‘or cdllecti.vely &iswe&d the tiumber initiatives Ad systems .solutions; and managing VA ‘one question of how well ari ageqty/&p$timent fmancial operations ,and processes, including was performing”. Mt. SulK%i feds that prep&g centralized -payment and travel systems, electronic commerce, a single report in lieu Of several reports has allowed the agencies to electronic data interchange, and Franchise Fund operations. focus on increasing the caliber.and value of ihe information provided Prior to his appointment as DCFO at VA, Mr. Sullivan served as and lessened the burden associated with report preparation. As the Associate Deputy Assistant Secretary for Financial Policy, a Federal government’s management focus continues to change from a component office within the Office of Finance. He has over twenty rigid compliance role to one that is results-oriented aild which years of financial management experience in both the public and concentrates on defining how well agency programs are meeting their private sector. Mr. Sullivan regards the five years he spent working as a intended goals and objectives, streamlined rep6tiing is in both tile manager of financial systems for GTE Telenet Communications interest of the gbvermntint and public. Corporation and project manager for RDW Genysis Corporation as One of the ‘things Mr. Sullivan is extremely protid of is VA’s ’ being extremely beneficial. The experience gave him an appreciatioh involvenitnt ifi the Franchise Fund Pilot project. VA is not only for what technology can do and how to better apply technology toward servicing itself, but has also expanded to cross-service other non-VA creative business solutions. Additionally, he learned that thete is no organizations. VA has seen an increase in fuind revenues from $59.1 difference in the quality ofpersonnel that work in the private and public million to $87.9 million in just two years. Additionally, sales to other sector. “At the time (in the SO’s), the private sector just provided their government ageincies in FY 1998 increased over tehfold from $1 .l employees better tools; but we (the goveri-nnent) are quickly catching million to $13.9 million. Mr. Sullivan feels that the principles of up, and in some cases, surpassing the private sector.” franchising provide a ‘win-win’ for the agency ‘and the American Mr. Sullivan received his M.B.A degree in accounting from George. taxpayer. “Free and open competition, coupled with full cost recovery, Mason University. He is a licensed Certified Public Accountant in the is leading to better resource allocations and holding people to a higher Commonwealth of Virginia and a member of the American Institute level of accountability. This competitive, fee for service, environment for CPAs and the Association of Government Accountants and a provides economies of scale, lower costs, and ultimately results in Certified Government Financial Manager. greater efficiencies.” Additionally, in its first audit, the fund received Mr. Sullivan was the Chairman of the CFO Council’s Reports an unqualified opinion, an accomplishment in which Mr. Sullivan takes Streamlining and Cost Accounting Committees. He readily admitted great pride. that he has a distinct bias on both subjects. Under his guidance, the Since becoming DCFO, Mr. Sullivan has worked to improve Cost Accounting Committee produced the Managerial Cost stewardship and accountability within VA. VA now utilizes an Accounting Implementation Guide as a tool to help agencies internal financial review group to promote accountability b) implement cost accounting systems. The Reports Streamlining performing reviews on all aspects of financial operations at VA health Committee established a pilot pro&am to consolidate financial reports care and regional office facilities. He noted that the group does not in an accountability report, while making the report more user friendly. foster an adversaiial relationship with the facility being reviewed, but With the government financial community. putting a greater rather offers advice and assistance to improve a facility’s controls and emphasis on the implementation of cost accounting systems in line with the Government Performance and Results Act of 1993, Mr. Contintmf on pa*qe 1 S. 5 n?i’m’ NEWS SLlmnler1999F~ L to R Deborah W&on, Ralph Beam, Ted Emtek, Rms Gardner, K Bresnaban, Bettv Webbe-r,Mamaret Mvm, Wilh Green. Bettv Fi%itd. and Rick Xoll. k ContinuedfmmJhntpage. I ResourcesCommittee (HRC) of the CFO Toolkit for Building a Financial Management Debra Watson came from NASA’s Council. The HRC conceived and developed Workforce Development Plan for the CFO Langley Research Center in Hampton,’ the Fellows Program, and continuesto work CounCil. Virginia to work at the National Sciencej with its partners- the USDA Graduate School Thaddeus (Ted) Kontek, Department of Foundation. She helped plan and execute a/ and the FederalExecutive Institute - to ensure Labor, served at the Environmental two-week NSF briefing to the Chine that the Program meetsthe goalsendorsedby Protection Agency. He worked to identify Financial Management Delegation on p the CFO Council. and help resolvefmancial systemsaudit issues and private sector issues.She alsosuppo Members of the 1999 Class of CFO and assistedin researchingand developing a the CFO Council’s Grants Accoun Fellows are: concept study and recommendations for Subcommittee by formulating grant p Ralph Beaty, NASA, who served at the replacing EPA’s Payroll system. information/hriefmg materialand Food and Nutrition Service,USDA, National Margaret Myers, a supervisory budget in a cost-accrualgrant survey of Food and Nutrition Service, where he analyst from GSA’s Federal Technology Betty Weber, originally supported the CFO in the Food Stamp State Service, worked in procurement for the Department of the Army, serve Option Program. Veterans Health Administration at the andNutrition Service,USDA. In the midst Chandler (Russ)Gardiner, USDA, Food Depamnent of Veterans Affairs. She the Program she was hired by NASA, b and Nutrition Service, who served at the evaluatedmedicalsupply standardization and continued to participate in most CFO Fellow General Service Administration’s (GSA) researchedthe feasibility of initiating a prime events. Federal Technology Service in the areas of vendor for medicalsurgical supplies. Betty White traveled from EPAs Chicago allowance activities, working capital fund, Richard Nell, from the National Science office to serve at the Joint Financial rate development, GPRA, and A-76. Foundation, worked at DefenseFinance and Management Improvement Program.’ The Willa Green, from USDA, served at the Accounting Service (DFAS). He applied his Spring Issueof the JFMIP carried anextensive Department of Labor. She developed the expertise in the Standard General Ledger to article describing her experiencesas a CFO DOL Financial Management Intern review and coordinate revisions of Defense Fellow at JFMIP. ‘She has since returned to. Program, managed the JFMIP revision to financial managementregulationsand DFAS EPA in Chicago where she has been: Core Competenciesfor Financial Managers, accounting and policy issues. promoted to Chief of Budget and Finance. o- and led a team to produce the Executive 6 Summer 1999 JFikUP NEWS ‘Travel and Transportation Act of 1998 he Travel and Transportation Act of T 1998 was designed to resolve many outstanding issues in the Federal travel and transportation community. The transportation portion dealt with requirement for a prepayment audit of freight the bills. The Transportation provisions of the Act are effective as of April 2000. The U.S. General Services Administration (GSA) is still developing the regulations for this audit. The Travel portion of the Act covered four main areas. These regulations,have.gone,into effect overthe last two months. Listed below is a summary of the actions/taken required for each area. ~Authority for Test Programs l 10 Travel and 10 Relocation Test - Penalty for non-use at this time is - Only if the employee has been paid Programs ” under administrative procedures of for travel by the agency ‘-, .I agency me l New initiatives for travel and relocation - Have to follow standard garnishment management ‘,: l Allows GSA administrator and heads of of wage rules l Not restricted by any law or regulation agencies to make exemptions to l Published ‘asan Interim Rule on July mandatory use $1 24 month duration to report to 16, 1999 and effective-on travel after Congress - GSA has exempted use where the December 31,1999 l GSA approval required card is not accepted l ‘Approval Criteria set by GSA l Heads of Agencies can set their own Reimbursement for Taxes on Money exemptions and notify GSA Received for Travel Expenses l Advise Congress before and after test l Requires prompt payment of travel l Permits agencies to reimburse .all l Effective May 27,1999 claims income taxes incurred due to a long term temporary duty assignment - Within 30 days after receipt of a Technical Corrections to Law &. Federal (generally considered to be longer than proper claim Travel Regulation (FTR) 12 months) l Clarifies the definition of the United - Agency determines what is a proper l Allows for the reimbursement of CldlTl States and Foreign Service of the penalty and interest payments due to United States - Clock starts when claim is received by agency failure to withhold proper l Allows agencies to pay for property agency and approving official income taxes for tax years 1993 and management services within CONUS Agency penalized if a proper claim is .1994only l l Expands travel to seek residence not paid within 30 calendar days l Published as an Interim Rule on June (house-hunting) trips to Puerto Rico, 18, 1999 with a retroactive effective - Interest payment to traveler at current the Northern Mariana Islands and date of January 1,200O Treasury rate territories and possessions If there are any questions regarding the - Second payment equivalent to any amendments made to the Federal Travel l Other miscellaneous corrections late payment fee when that would Regulations, please contact Jim Harte (GSA, l Effective May 28,1999 activate under agency’s task order Travel Management Policy Division) at with a contractor email@example.com. o Requiring Use of the Travel Charge Card 9 Allows agencies to collect delinquent l Requires mandatory use of Travel travel charge card payments from Charge Card by employees to pay for employees pay official ,travel expenses z JEuz~NEWS Summer 1999 - GAO’Amends Governmwt A&iting Standards. n May 13, 1999, David M. in order to tighten the rigor applied to an The standard is effective for financi 0 of Walker, Comptroller General of the United States, issuedthe first audit of the financial statements when computerized information systemsareusedin amendment to the 1994 version significant accounting applications. The Government Auditing Standards, Council believesthat the new standard will commonly known asthe Yellow Book. The heighten auditors’ awarenessof the risks statementauditsof periodsending on or aft September 30,1999. An: electronic version of the standard:c; be. accessedthrough. GAO’s Internet Hon Page from the GAO: Policy and; Guidanc new standard; entitled associated’ with. Materials .or the, SpecialPublicationssectioi Government Auditing auditing in the of the GAO site, or, .. directly Standards: Amendment environment Of . www.gao.gov/govaud/ybkOl:.htm. This si No. ,l,. Documentation A also, contains a new electronic version: ( Requirements G A 0 .g=g;a;;; Government Auditing ‘Standards, whii AssessingControl Risk at codifies the new standard: by reflectir Maximum for Controls changesmade resulting from: the issuance( 1 LAccountability * Integrity * Reliability The standard Significantly Dependent theseamendments.,Userswho,would like1 Upon Computerized ” reflects the provide, feedbackon the new,format usedfi I&ormation - Systems council’s Amendment No. 1 may do soby completing (GAO/A-GAGAS-l), viewpoint that, form found on the Government Auditir establishes a new field work standard requiring auditors to document their basisfor StandardsInternet page. requiring documentation in the planning of assessingcontrol risk at maximum and the We anticipate that printed copies of tl financial statement audits in certain planned audit proceduresthat relate to that standard can be obtained, from tl circumstances.Specifically, the new standard decisionwillhelp ensurethat auditors do not Superintendent of Documents, at the- U.: requiresauditors to document in the.working inadvertently rely on computer-generated Government Printing Office (GPO) i papersthe basisfor assessing control risk at evidencesin conducting substantive,testing. September 1999 by calling (202) 5.12~,188 the maximum level for assertionsrelated to The intent of the standard is:not to replace, or accessingthe GPO Internet, site. at fc materialaccount balances,transactionclasses, auditors’ judgment in planning the audit, but ordering information. Por,more~informatia and disclosure -components of financial to assistauditors in assuringthe soundnessof contact Michael Hrapsky, 202/512~9535 c statements when such assertions are their planned audit procedures when Marcia Buchanan, 2021512-9321. o significantly dependent on computerized significant accounting applications are information systems. The new standard also supported by computerized information requires auditors to document their systems. JFMIP!s consideration that the planned audit The standard also incorporates, where procedures are designed to achieve audit applicable, conforming changesto recognize FederalCore Financial objectives and to reduce audit risk to an the effect of SAS No. 78 on generallyaccepted Management System3oftware. acceptablelevel. In addition, the standard government auditing standardsfor internal revisesthe section entitled,“Internal Control” in chapter 4 of the 1994 Yellow Book. control. Thesechangesprincipally consistof updating terminology to conform with SAS Open: House. The American Institute of,Certitie.d Public No. 78 and deleting guidance; that, is Wednesday, October 6, 1999 8:30 am to 5:00 pm Accountants (AICPA), in issuing Statement addressedin SAS No. 78, which, was issued GAO Auditorkim (7th.floorI~ on Auditing Standards (SAS) No. 78, after the 1994 version of Government 441 G Street NW,. ‘Consideration of Internal Control in a Auditing Standards. Washington, DC Financial Statement Audit: An Amendment Appendix I to the new standardincludesa There is NO REGISTRATION FEE to Statementon Auditing StandardsNo. 55,” version of the new standardwhich.showsthe 8:3()-9:00 Registration requiresauditors to document their basisfor deletion of language appearing in the 1994 conclusions when control risk is assessed Yellow Book with a strikeout andpresentsthe 9:00:9:15 ‘Welcome and Introductions below maximum. However, SAS No. 78 new or revisedlanguagewith bold and italics. 9: 15-I 0:45 Core FMS .Qualification Process and Results., does not impose a similar, requirement for Appendix II contains a list of membersto the 10:45-l 1 :OO Break assessments of control risk at maximumsThe Comptroller General’sAdvisory Council on 1 1 :00-l 200 Core FMS Qual$cation Outcome new standardwill imposesucha requirement Government Auditing Standards and 12:00-l : 15 Break (Lunch is NOT prodded) for assertions related to material account members of, the U.S. General Accounting 1: 15-2: 15 Other, Initiatives balances,transaction classes,and disclosure Off&‘s (GAO) project team. components of financial statements when 2:15-2:30 Break The standard, the first amendmentunder suchassertionsaresignificantly dependenton 2:30:5:00 Open ,Discu+sion the revised approach of issuing individual computerized information systems. standards,was exposedfor public comment ToRegister, CallJFMIPat .202/512-9201 br) The Advisory Council on Government prior to its final issuance.As a result, various October1,1999 Auditing Standards recommended that the suggestionswere incorporated into the final Comptroller General issue,the new standard standard. - -. Summer 1999 jE&fP NEWS OMB Revises Putting- Service- Back in Government Financial Systems Service Delivery Circular ; J ust imagine. : .A government service lCareer development and employment delivery system in which citizens no l Taxes n June lOth, 1999 the Office of longer have to go from door to door to 0 door to obtain what they need. l Travel and fun Management and Budget (OMB) updated sections of Circular Imagine government agencies working l Reference, desk collaboratively with partners and stakeholders Services in their neighborhood A-127, “Financial Management l to develop what needs to be done and how to Reeu ineering the student financial aid Systems”, to reflect the changes in the process do it. for acquiring software to meet core financial s o is central to the Access.America Imagine all Americans having easy and ictizdents initiative. Each year the Federal system requirements. The update reflects secure electronic access to lifelong training, pending changes in the US. General Services government delivers $42 bdlion in aid to educational and financial aid services. approximately eight million students. This is Administration (GSA) schedule used to Imagine no lines, no waiting, no paper. a system that mvolves more than 7,000 acquire software; and services and new Imagine no more. Information schools and 4,000 lenders aswell asa complex processes for software testing that is technology is transforming the Federal array of state and Federal agencies, private independent of the procurement process. government. And a revolutionary model for scholarships and. foundations, student loan These changes are the result of the delivery of government services called secondary markets, dozens of Ioan servicers recommendations by the Chief Financial AccessAmerica for Students is on the way to and guaranty agencies, plus a wide range of 0fEcet-s (CFO) Council. The adjustments becoming reality. professional organizations. and additions to the Circular become effective Part of the National Partnershi for Access America for Students’ Federal on the dates specified within the document. Reinventing Government% (R1W partners are working together with the broad-based Access America initiative to postsecondary community to develop a roof Section ad(l) stipulates that on October improve the public’s access to government of conce t pilot program that wi e be 1, 1999, the GSA Financial Management services, AccessAmerica for Students is out to conducte B in two phases over a two-year System Software (FMSS) Multiple Award change. the way government does business period. Specific program goals include: Schedule will become obsolete and that with students attending or planning to attend l Building public confidence in agencies must now use’ Commercial educational institutions be ond high school. conducting Internet-based business off-the-shelf (COTS) software that complies The twelve agencies colla EIorating with the with the Federal government; with the Joint Financial Management De artment of Education in the initiative’s ro lf out of AccessAmerica for Students are all l Itii roving cash mana ‘ement controls Improvement Program’s (JFMIP) Core electronic access and an i accountability in %le delivery of leaders in providin Financial Management System Requirements, services delivery to ii eir customers: student financial aid; and has been tested and qualified in the Education, : Corporation for National l Organizing and improving electronic JFMIP software qualification process. Service, Interior, Justice? Labor, Treasury, US accessto Federal trainin and Section 8d(2) elaborates on the Software Postal Service, Social Security Administration, educational services; an li Certification process that will be handled by Veteran Affairs, IRS, OMB, OPM. l Testing key aspects of the Department JFMIP. Section 9b was revised to state that of Education’s Student Financial Aid GSA will continue to support existing AeeessA.m&a~ Shts: what-3 ItAll (SFA) Modernization program. Pilot contracts under the FMSS Schedule until About? initiatives that assthe proof of concept their completion. GSA will also make The mission of Access America for testing will be Folded into the SFA aprocurement vehicles available to agencies Students is to provide secure electronic access Modernization Blueprint. for acquiring software which has been certified to the government information and services according to processesin Section 8d( 2) .” students need - on their time and on their WboJs Involved: Partntm desktop - and to improve the delivery of Strong support for Access America for OMB added the new sections to outline student financial assistance. The program will JFMIP’s role in the software procurement Students is coming from students, schools be testing ideas for an e-commerce model in and other members of the postsecondary process. Section 9a(3) states that agencies the student financial aid industry. education community. In focus groups and in must notify JFMII? on their plans to acquire On the web at students.gov, Access meetings with national student orgamzations, software supporting core financial system America for Students now has an Internet students have expressed their stron support functions. Section 9c lays out JFMIP’s the electronic Federal of the goals of AccessAmerica for l tudents. responsibilities in testing the core financial ~%w~ent?The site, which was launched in Industry partners in the Federal Family system requirements for COTS. April 1999, has links to U.S. government Web Education Loan Program (FFELP), including If anyone has any questions or inquiries on sites where students can find mformation on: banks, loan servicers and loan guaranty the revisions made to OMB Circular A-127, l Planning their education agencies, are playing an active role as well. contact the Office of Federal Financial l Paying for their education Management, Federal Financial Systems l Internships and fellowships it&&@ the Net Wmkf%r S&ts Branch, telephone 20213956903. A Commercial processes will be the heart of l Military service this new system. AccessAmerica for Students complete revision of the Circular will be forthcoming. 0 l Community service Contintid on pqqe 19. Jl?mmws Summer 1999 Eliminating CFO Counci,! Teams With Federal Government Learning Exchange ‘. Transportation his summer, the Fideral Learning The CFO Council consistsof the CFO atid Requests he General ,ServicesAdministration (GSA), Department of Defense T eXchange(FLX), one of four specialty databases offered by American Learning Exciimge’ (A), joins a’ U.S. Chief Deputy CFO of the 24 major government Departments. The CFO Act of 1990 1 establish / ed the ’ Council ’ (DOD) and Jo?! Pin&al Financial Officers in an! T Mana@ment Improvement Program (c-w Council effort to (JFMIP) are working to el&inate the campaignto improve s, resOlve -0 4 StandardForm (SF) 1169, U.S. Go+rnment the recruitment, Tra@ortation Request (GTR) asa met&l for procuring commercial passenger development and retention of Federal Learning ,eXchang& ,Fz : 3 financial issues.In transportation. Currently, the Code of management recent &deral Regulations Title 41, Volume 2, workers. years, I Chapter 101 identifies@eGTR, Government “The myriad of new legislative training I contractor issued‘chargecards, and centrally billed accounts as payment mechanismsfor requirementsin our field will reshapethe way budget cuts, government downsizing, along : financial managementis handled throughout with new and emerging financial standards ~ passengertransportation. After soliciting government for the next generation,” says have prompted the, &&cil to focus heavily Federal agencies’responsesto a proposal to on improving Feder’al financial worker Ketieth Bresnahan, chair of the CFO / eliminate the useof GTR, the GSA Offlice bf Council Human ResourcesCommit&. ‘We competencies. Government;wide Policy ‘md the Defense must invest in continuing prof&sional Together;‘&e CFO &ncil cd F-LX-are U.S. Transpotiation,+mand (USTC) have education.’ of the financial management developing a consolidated Internet site defmedastrategytoreplacethe GTRprocess. workforce if we areto support our Customers’ designed specifically for accountants, budget needs for high quality, useful and timely analysts, financial managers and all other GSA Bulletin FPMR G-202, publishedin Federal financial ,workers. In addition to financial information.” +e FederalRegistFr, 99-16926 dated 7/l/99, listing the core competencies of each position, FLX, the outgrowth of the Federal notifies Federal agenc&of their proposal to the site will also provide learners with Technology Training Initiative (FlTI), is a stop the use of SF 1169, U.S. Government opportunities to develop those competencies. groundbreaking collaborative effort that Transportation &quest (GTR). This brings together Federal trainers, educators Education and training providers are bulletin provides guidelines for adopting and information technology experts to encouraged to post relevant products and +l@rqativemethodsof payment for passenger transform the way Federalemployeeslearn in course offer&s on the site as well. To transportation se&ices. The USTC has to the 21st century. FLX provides a cotimon maintain quality control, those who develop an implementation and change plan area wheri: cu@ulum and other mat&+& contribute to the site will be responsiblefor by July 23, 1999 to convert to’ alternate may be utilized by a variety of Federal, state, keeping their links current and adhering to a payment inechanisms by September 30, and local government organizations. CFO Council’s Statement of Principles for 2000. “FLX is a tool that can help Federal Federal Financial,Education and Training. employeestake full advantageof advancesin For more information, contact George The successful elimination of GTRs learningtechnqlogy,” saysFLX development Koch at firstname.lastname@example.org or Janet government-wide, will be instrumental in Laytham at lay&m-janetBdo1.g. o team leader George Koch. “FLX opens up providing solutions to maintaining these ~ccess~ to the learning resources Federal accountableforms &at are seldomused.,and workers need ,to develop skills required for cutting administrative costs of commercial success in a changing workplace.” ,passenger transportation. For more ‘There is a natural fit between FLX and information, please contact Patricia Clark, he Federalfinancial workers’whocomeunder (202) 512-7174 or email he scrutiny of the CFO Council,” saysJanet email@example.com. o Laytham of the U.S. Department of Labor’s 30 offke. 10 Summer 1999 J&ULP NEWS JFMlf? “Knowledgebase” .Helps Improve Financial Systems 8, he Joint Finan& Man&ement and functionality; the Certified Vendors List; It can reduce acquisition time and cost. T l Improvement Program (FMIp) the Software Qualification Test Application Since the PM0 will disclose more “Core Financial System and Policies; the Test Plan andMaterials; Best specifically what was tested, agencies Kllowl~base” (www.financenetgov Practices/Lessons Learn&$:and an interactive can focus on agency unique or broader /financenet/fed/JFMIP) provides ’ Federal area for public discussion. requirements instead of replicating .; ‘. agencies and vendors information on new The Core: Financial System testing of mandatory core requirements. Financial Systems Requirements and the “Rnowledgebase” will benefit agencies in ,a l It can help avoid.costly mistakes., More JFMIP Core Financial Systems Qualification varietyofwayti importantly, what was not tested will be Process. Agencies are encouraged to visit the l It provides a one stop shop for -.-. disclosed to the agencies., Once the ! web site and browse documents and cowunicating neivrequirements and initial testing is &npleted, the PM0 : information. references .to vendors. This will shorten will focus on directly.‘helping agencies Under the updated OMB Circular A-127, the time it takes vendors to incorporate with lessons learned and other Financial Management Systems, agencies them into their baseline. The ‘awareness imormation regarding must purchase core financial systems tested knowledgebase is an excellent venue for implementing financial systems. ~ and qualified through the JFMIP software Treasury, OMB, GAO, and FASAB to reach vendors. ’ l The test materials can-be downloaded qualification process. The JFMIP Program and agencies may incorporate the test i Management GfBce (PMO) was ,.recently It will provide a central source for l plan and’methodology for additional established to .manage the ..‘qualif’ication comparing software functionality. The testing they may need to conduct. ~ process. The first round of testing is currently PM0 will post. information about Likewise, new vendors will be able to 1 underway and the qu&fied vendors will be. value added (additional functionality .usii’the, t&t p bqier understand . : POSted October 1 1999. j ‘, observed, but not tested), and vendor ;, functionality unique to the g&erfime& The ,PMO will work with both agencies. technical support capabilities, For more information on,the JPMIP Core a&vendors to update’the “Know1edgebase~ Financial System Knowledgebase, call Bruce l It increases competition. Vendors can regularly. Examples of documents that will be Turner at 202~512-5916 or e-mail at use the knowledgebase to better available are:‘Core Mandatory, Value Added, firstname.lastname@example.org. n understand requirements and upgrade and Vendor Support Requirements; software accordingly. .,. information about vendor software features .I !’ : IGs and CFOs, continued jvm &ye 3. . Academy, the Federal Law Enforcement Mr. ‘Early received the President’s Rank and is responsible for all activities related to Training Center, and the.U.S. Secret Service Award. Born in 1943 in Charlottesville, financial management, financial operations, Academy. Virginia, Mr. Early holds a Bachelor of internal controls, audit follow-up, -and asset Mr. William B. Early was recently Science Degree from the University of management. The Department of Education appointed Chief Financial Officer of the Richmond and a Master of Business currently administers a budget of over $30 General Services Administration (GSA). Mr. Administration Degree from the University billion per year and operates some 200 Early is responsible for all financial and of South Carolina. programs that touchon every area andlevel of budgetary policy, executive information Mark R. Carney. was appointed education. systems, and GSA’s Strategic, and Deputy Chief Financial Officer for the Bob Reid joined the Department of the. Performance planning processes. He is also Department of Education on June 6,1999. Treasury in June as ..Deputy Assistant the Chair of the. GSA Council of Controllers. Prior to his appointment, Mr. Carney served Secreatary - Accounting Operations, Office of Mr. Early served as Acting Chief Financial as director of the U.S. Small Business the Fiscal Assistant Secretary. In this capacity, Officer for several interim periods, served as Administration’s (SBA) Fresno, California he serves as the Department’s senior oficial Deputy Chief Financial Officer from 1998 to Commercial Loan Servicing Center where he on accounting policy: and aprovedes policy 1999, and has served -as-GSA’s Budget managed a $16 billion loan portfolio oversight over government-wide accounting Director since 1979. comprisedof 125,000 loans. For over 7 years and the preparation of the annual ‘Mr. Early is responsible for a multi-billion he was director of SBA’s Denver, Colorado government-wide consolidated financial dollarLfinancia1 program that involves all National Finance Center. His” legacy in statements. He serves. as the Department’s aspects of budget formulation, ; resources Denver was to consolidate financial representative on. the Federal Accounting allocation, and financial control. Mr. Early is operations into one facility and extensively Standards Advisory Board a member of the American Association of modernize agency financial systems and Prior to joining the Federal government, Budget and Program Analysis (AABPA). He practices. Mr. Reid, held various positions within the asservedAABPAformanyyears,bothasVice As Deputy Chief Financial Officer, Mr. D.C. Government including Controller of the President and as a Board Member. In 1994, Carney directs as taffof over 275 professionals city. 0 11 i Summer1999 ’ Year 2000 Update: Less Than 6 Months . . . and Comting T he Year 2000 (Y2K) corn uting end-to-end testing-f such high-impact F challen continues to L a programs. Business continuity and 1, compeir‘ng, once-in-a-lifetime issue contingencyplannin is imperative; testingof 1 facing the Federal government, state these lans shoLfd be completed by 1 and local agencies,and major sectorsof our SeptemL r 30. Final1 , Day One strategies national economy-not to mention the are needed: so&are cKan should be kept 1 world. Since first identi ‘n Y2K as a to a minimum aswe near tR”e end of the year, high-risk area in February $89 7, GAO has and we must have +e most specific strategy / issued over 120 reports and testimony possible for the late-December: statements. A great deal has been early-January rollover period. accom lishti-but much more progress is The total estimatedcostsof ensuringthat i neede.cf This article will summarize where the computer systemsof the 24 major Federal ~ ‘our nation standsin the summerof 1999, and agenciesperform as expected beyond 1999 what action remains necess in order to hasbeenconsistentlyrismg; it hasmore than minimize disruption through“3: e turn of the tripled durinp the last 2 years, to a total of century. ,. about $8.7 hllion as of May 14, 1999-up ~ $1.2 billion in 3 months alone. TheFe&ml Pi&we Federal departments and agencies are Statesand Local Gbvemmts considerablyfarther along than they werejust Atremendousvariationexists with respect a year ago, due in large measureto engaged to Y2K readinessamong statesand localities. leadershipand making y?K a top priority. In This matters because,statesadministermany its ninth quarterly repoq, issuedJune 15, programs in partnership with the Federal ~ 1999, basedon data received asof May 14, government, includin those involving ~ the OffIce of Management and B+t Within Transportation, most of the payments such as foo cf stamps (in concert I (OMB) reported agencies’ mission-critical systems1 ‘ng in becomin compliant had with the Department of Agriculture), Social systemsto be 93 percent Y2K compliant, been WI ?f in the Fef eral Aviation Security, and Medicaid (with Health and with 14 of the 24 major agenciesreporting Administration (FAA). While ’ Human Services). In the caseof Medicaid, h: 100 percent compliance. extremely late start, however, FAir h:&g man statesystemsare not yet reported to be OMB focusedon the remaining 7 percent significant reported progressin catching up. Y2K! compliant. Many locally controlled, of mission-critical systemsthat are not yet According to the agency,all of its systemsthat corn uter-depetident bperations - such as reported to be compliant and that must be remained to be made compliant have now tr a2ICsignals- are date-sensitive. As GAO repaired, replaced, or retired. Y2K issues beenmade so, including the HOST system, recently testified before Con ess,asurvey bv include end-to-end testing; develo ing the backboneof the en route air traffic control theNational Associationof !FtateInformatioh businesscontinuity and contmgency p fans; system, along with all weather and ResourceExecutivesfound that43 stateshave ~ and overall readinessof Federalpro ams.Of telecommunications systems. End-to-end completed at leasthalf of the implementation ~ the 7 percent, the following 4 F mission testing and business continuity and phaseof their mission-criticalsystems. \ critical systems have been identified as contingency planning are ongoing. Specificall ,this grou ‘sJune1999 surve! high-impact (seetable). Defense faces a challenge of f results (memh rship inc udesthe District of Columbia, Guam, and Puerto Rico) showed unprecedented scope and criticality; by its 245 of its 2 038 that ~ion%~~systems are not yet k2K l 5 statesre rted completing 25-49 compli&t. The Deputy Secretaryof Defense ercent o p”the implementation phase is tracking the pro ress of each system For their mission-criticalsystems, monthly. Further; 6 OD has hundreds of l 13 statesreported completing 50-74 interrelatedend-to-end testing andevaluation percent, and activities ongoing-some of which must rely on the as-yetnoncompliant systemsor system l 30 statesreported completing 75 contingency plans. As GAO has percent or more. recommended, Defense has taken ste In attempting to gain a better understanding of Y2K compliance, John Koskinen, Chair of the President’sCouncil on Year 2000 Conversion, establishedworking systemsand key businessprocesses.It will be groups and partici ates in monthlv critical to ensure that such controls are conference calls with tlf e states. State au&i implemented on each test and evaluation organizations have seenconsistentfinding: event. concernshave been raisedin areasincludmg OMB has taken an important step by planning, testing, businesscontinuity and identifying 43 of the most critical Federal contingency planning, embedded systems, programs, and designating lead agenciesto and resourceadequacy. makesurethat appropriate actionsare taken. A second crucial step is testing-especially Continired on pap 19. : 12 Summer-1999 J?WP NEWS FASAB uibdut< 1Highlights of Federal Accounting Standards social insurance. information and directed staff trying to consolidate different types of assets- 1advisory Board: activities through July 1999: to prepare a ballot draft. A final large “hard” assets, paper, artifacts, recommended standard is expected during collections, and measurement attributes of I1 July.. :,.: physical units (for examtile, item counts At the. April Board meeting, the Board versus cubic feet of storage space), presents decided to,defer further work on the Natural Natiotml~Dejhse PPOE and Multi-use Heritafle problems in how to report. Resources project until early 2WO. and on Assets After discussing the requirements of me East of Capital indefinitely. The:;deferral of The Board. a$roved the amendments to Heritage asset standard for the he Cost of Capital project was based on report&on Multi-Use Heritage Assets at its government&de, or consolidated level, proposals regarding budgeting for oapital~ July meeting. The amendments will be issued Board members agreed that the goal of the assetsfrom the President’s Commis&n: on as a separate standard in order to avoid the consolidated report for that, category should CapitalBudgeting. The Board concluded that delays, -‘associated with National Defense be not for overly detailed accounting, but for it would. be beneficial to wait for progress in w&E. The, recommendation will be some broad’ descriptions of categories of ,the budget community before undertaking forwarded<ro. the principals, in mid- July. heritage assets and the overall condition of further work on. Cost of Capital accounting The Board also. directed stall! to prepare a those.assets, with reference to the reports of :requirements. recommended standard for their vote that agencies with stewardship over the majority The Board also approved a plan for a would require quantities of weapons systems of heritage assets, Staff will make the Report Review, Project. The report review and annual investment in weapons systems. suggested language changes to the would cover more, than half of the, CFO Act The amendment would not - as. originally Governmentwide Heritage Assets standard agency F-Y98 Acc,ountability Reports. The proposed - delete the requirement for and circulate those changes for Board objective is. to inform, the. Board. and the reporting of latest acquisition or total cost of approval when it circulates the final proposed Accounting, and<Auditing Policy Committee weapons systems. In addition,. staff was standard. The Board agreed that a final (AAPC) regarding implementation of the, tasked with undertaking immediately to recommended standard could ‘not be issued new reporting model. prepare an exposure draft on reporting the until completion of the amendments to PPStE status of projects for the largest weapons in order to insure that those amendments are systems acquisitions underway. The Board included in the governmentwide standards. The Board! expressed, a: desire to.. review suggested.thatthis.would include information carefully the implementation, of Stewardship such as the planned~ costs, actual cost. to. date, Accowatin~ aniihdtin.. Pal@ Committee Reports and. may reconsider use of the percentage completed and units initially (AAPC Stewardship.model: At the July meeting, the planned versus currently planned. The report The AAPC considered topics and speakers majority, of’ Board members called for staff was included in the February 1998. exposure that would be appropriate for future forums proposals to place specific items of draft asan alternative view. The St&will have in the summer or fall; stewardship information in the traditional the assistance of the National Defense PP&E Mr. Short, Chair of the Interentity Task categories of basic, information, required task force in researching these issues and Force, anticipates resumption of the work of supplemental information. and other expects to have a proposal for Board the task force on interentity costs. accompanying information. The Board consideration before the end of 1999. Task force chair Mark Connelly reported believes this will; in due: time., aid in resolving Tentatively,. the Board’ also,indicated. that this on the group’s work in developing guidance audit issues as well as raising the visibility type, of major project reporting might be to assist Federal agencies in implementing withii reports of some key elements of extended to all agTn.cies.rather than being a new standards for reporting and auditing stewardship information. DOD specific requirement. supplementary information on stewardship At, the.,Septernber meeting, the,Board.may land and heritage assets. consider specific proposals. The &WC also added two new issues to ? Management’s Discussion and Analysis The Board reviewed the second draft of a its agenda: (MIX&) Statement of’ Recommended, Accounting l Issue 20 The Board approved, recommended Standards for, the Governmentwide Provide, guidance to, Federal entities on statements on.MD&A at the April meeting. Supplementary Stewardship Reporting. the allocation of contingent liabilities as they Statement of ,Federal Financial Accounting Treasury would be the only agency affected, relate to legal claims where multiple agencies, Concepts .No. 3: has since been approved by since this proposed recommended standard would affect only the preparer of the are involved. The questions specifically relate the Board’s principals. The accompanying, Consolidated St@ement.. Treasury had only to situations where more than one Federal statement on.standards is awaiting approval. minor problems with the recommended: entity is named as a party to a legal claim that l Social Insurance At its July meeting, the Board, approved standard,’ namely with Heritage Assets. certain modifications to the presentation of Since, with Heritage Assets,,entities have the most discretion, in reporting this. category, Jmfn’ NEWS Summer 1999 ’ Treasury’s Goal for a Department-wide Career Development Plan I 1 n June 1998, the Department of the I Treasury CFO Council agreed that Treasury investments should in make substantial the professional development ofits financial staff, to attract, develop and retain high caliber personnel to better meet current-and future ‘needs, for financial services and mission support. The Treasury CFO Council tasked its r- Human Resource (HR) Committee with developing a human resource strategy for Treasury financial management. In October 1998, the Committee began developing a department-wide career development plan for financial management, budget and accounting personnel at different grade levels. This plan defined and established training and education core competencies, certifications, .’ on-the-job experiences, and promoted rotational ‘assignments across the entire government-wide CFO. Council Human and develop an action plan for Treasury CFO 1 Treasury financial community. Resources Committee to obtain additional Council approval to implement the Career data for the development of this proposal. Development Plans within Treasury. The I- It was envisioned that completing’ the performance targets for this plan would, over The Com&tee specifically used a Team 2000 implementation planwill include, but not be limited to: : time, increase the competency levels of all technical approach in developing the Career Treasury Financial staff and position the Development Plans and chose not to include l An inventory of current bureau-sponsored Department to deal with the. increasingly addmonal highly desirable non-technical courses that can be open to all bureau complex, technologically advanced fmancial skills such as writing or oral communications. personnel, i.e., ATF accountants could ~ management functions. The Committee agreed the plans should focus attend training at IRS courses. I on long-term change within Treasury and not l An inventory of current financial an immediate restructuring of current ~ i A!Gtbodolq~y management personnel against the onboard financial management staff. In developing the proposed Career Career Development Plans to establish Development l?lans;the Treasury CFO HR Committee members individually the baseline for each of the five areas, Committee reviewed the published JFMIP identified training, education, certifications, Training, Education, Certifications, Core Competency documents for financial on-the-job experiences, and rotational On-the-job Experiences, and Rotational management positions, and Doris Chew from assignments for financial managers, Assignments. accountants and budget analysts. The the JFMIP joined the committee. l A plan to implement at least two members identified three levels for each area: The Committee did not replicate the rotational assignments between all entry, mid-level and senior level. The excellent work already completed by JFMIP bureaus during FY 2000. Committee then met and ‘collectively and the government-wide CFO Council HR reviewed and rated the core competencies and For further information about the Career Committee in the Core Competency identified those that would be highly desirable Development Plan you may contact the documents, rather it used these documents to for, financial management personnel within Committee Chair, Paul Gentille (Phone: assist in identifying key high level technical the.Department of the Treasury. 202-622-9156, E-mail: competencies critical for Treasury, The gentille@email@example.com ) or Vice Chair, Lisa Committee also gathered and evaluated other Fiely (Phone: 202-622-8710, E-mail: Implernmtatiim agency’s development plans, Treasury lisa.fiely@?cfomail.fin.irs.gov). 0 Bureaus’ policies and training plans, and On July 7th the Treasury CFO Council identified similarities and best practices. voted unanimously to adopt the proposal as a goal for the Department and agreed to form Human Resource specialists from several an implementation group (Team 2000) with bureaus joined the Committee, and several a member from each Treasury b,ureau. Team Committee members worked through the 2000 will provide overall program support 14 Summer 1999 _ NASA Goal Performa Eva1 uation System ,,N ASA is making significant .progress in achieving its mission and goals by doing business faster, better and cheaper while never compromising safety. “Managing Strategically” is a major cross-cutting process tid its effective implementation throughout the workfo$e is an integral part’ of the Agency’s success. Recently, inndtiators at the John F. Kennedy Space’&ter, (FC) developed S~pace.,-~dministration,. and fully itiplemented’a software tdol that automates and reirolutionizes stiategic .. ., planning, implementation and v&lidation. In defining “the empldyek performance l What funding levels tliose results merit? The Goal l?erf&i&ce Evaluation System plan a supervisor has universal access to all of How can an agenc)l’respond to such an (GPES) is a web-based interact&software ’ the *orga&zational Mission Objectives and analysis unless they have effectively application that implements, validates, and Strategies populated within the system. The implemented, measured and communicated evaluates an Agency’s performance through performance plan will reflect the employee’s thc-.,a accomp~shments of the strategies the achievements of its organizations and assignments for their own ‘home outlined in their Strategic, plan. GPES is a individuals. Developed by NASA at the organization, aswell as, those duties assigned definite represent+ion of an effective method Kennedy Space Center, Q?ES is used by the by any other organization at the .Center. of administering the methodologies of the Center for strategic planning,, employee Additionally, the system facilitates the GPRA. It is one of the tools +at,make ‘The performance management, and as a assignment of multiple managers in order to Pl+” a real+y. center-wide communication tool. support .the diversity of i a multi-project Fully utilized at the, Kenn+y Space As part of the NASA Strategic focused b+siness environment. Therefore, Center, an interim &hi~~~~ent Report. was Management Process, the Kennedy Space managers can collabor+te &line to proyide a consolidated at the ‘Midterp (2/99) and Center developed its plan on how it would more comprehensive appraisal fb; the proved to be extremely v+l&ble to tlie KSC implement the Agency’s goals and missions. employ& Employees are iesponsible for gtrategic management process. Twenty-two The individual organizations at KSC then periddically contributing information relative major offks effectively summarized, developed a list of object&s and strategies on to ,their achievements. Thic information is reported and evaluated their ‘achievements h~ow they would support the Center’s then #ilize~~ to help asgess individual and towards multiple mission strgtegies for over implemtri%ioti ph. Employees’ drganiz&ional perf&mance. 1700 employees. in ,less than a two-week performance plans are then generated which Based on these embedded links, the period. The result from this evaluation helped will implement the organization’s mission. As Agency plan is effectively cormn&cated to to drive out very explicit actions. those plans are executed at all levels, the results every organizational level. Achievements and The Congress, on behalfof the taxpayer, is are reported and evaluated. The final ‘herformatice criteria can be assessed and cormi&ed to implementing new systems to evaluation is captured in the NASA c&sol&ted back to validate the progress and make: government work more efficiently for Performance plan, w&h is submitted to accomplishment of the Agency Strategies. IeSS. The Goal Performance Evaluation Congress. GPES is a tool that helps to These key q&&i&s have been outlined as System contributes to this &d by effectively automate and facilitate this process. the wa,’ to integrate results into other communicating both the Organiz+ti@ The system provides the capability of Congressional Business: Strategic Plan and subsequent, results and electronically “linking” an organization’s When Congress considers program achievements. mission objectives to any desired Agency re-authorizations,we need to ask - For more information, visit dur website: Goals. This linking jnformation is also l What concrete results has the program http:/ftechnology.ksc.nasa.g6\I/WWWaccess displayed on the employee’s performance achieved? lgpl plan, so that they can see the direct correlation Are they worthwhile and cdst effective? l Or C&t+ Chris Carlson (Te5hnical between their assignedduties and the strategic l Is there a better way to provide this Information)’ niission of the Agency. In additibn, reports service? Christopher.Carlson-l@l&inasa.goviDave can now be generated that cross-reference the Agency/Center Goals &th the supporting And when Congress considers Makuflra (Technology Transfer It&ormati~$ appropriations, we need to ask - DaveiMakufka-l.@ksc.nasa.gov; NASA / organization’s.mission objectiv&, such that a whether the agency’s budget requests Kennedy Space Center FL, 32899. CI verification can be performed to ensure that l all Agency/Center Goals are being worked. are sticiently tied to tie results of its programs? I 15 i Summer 1999 JFMIP -Keeps on Growing I ‘. E he JFMIP contingent has grown by financial management systems for such developmental program for men and women 1: T leaps and bounds over the last three months, as two permanent and five temporary employees came on board. The new staff will be involved in a variety of projects, such as the development of systems entities as the U.S. Coast Guard, the Federal Railroad Administration, Department of Labor. and the Pat will assist the PM0 in the preparation and testing ofvendor software as a member of one of the test teams. at the GS-11 and GS-12 levels. The program is coordinated and directed by the Department of.Agriculture Graduate School. Presently, JFMIP is fommate to have to WEL program participants. i’ 6 ‘: I requirements and in updating core Thane Thompson, a program analyst for Mary Chase, a reality specialist with the competencies for financial management the Occupational Safety and Health General Services Administration’s Office of 1 personnel. However, in the upcoming Administration of Property Disposal, is assigned to JFMIP on a months they will focus mainly on the testing the Department of thirty-day developmental assignment. Since of core financial systems software. Labor, began a sixty joining the office, she has assisted with the Janet McBride joins the JFMIP Program day assignment with development of Real Property Systems ~ Management Office (PMO) from the JFMIP on July 6th. Requirements and the relocation of the Department of Agriculture, where she He received a JFMIP office. She also has worked on the I supervised a staffof accountants and analysts. Master of Public newsletter. Janet has an extensive background in a broad &fairs in 1998 Suzanne Valett, an auditor with the Social li spectrum of financial management duties, from Indiana Security Administration (SSA), Of&e of the including analysis, design, and Universit)r’s School Inspector General, is assigned to JFMIP on a ~ implementation of financial management of Public and one month detail. She has assisted the I systems. Naturally she is a great fit for the Environmental Program Management Office (PMO) in the PM.0, where she will be one of the testers of Affairs. Thane is a preparation of the Core Financial System core financial systems software. This year, Presidential Test. o Janet will complete her MS. degree in Management Intern and will primarily assist Management Information Systems, to with the acquisition systems requirements complement her M.B.A. during his assignment at JFMIP. Steve Fisher relocated to JFMIP from the Brian Dixon, a sophomore from the i Department of Veteran Affairs. Steve brings University of Notre Dame, joins JFMIP as a a diversified background to the organization, summer intern. He FASAB, continuedjFom &qe 13. after experiencing both the private and public is an accounting , sectors, serving in a variety of different and history double is filed against the Federal government. The I capacities from auditor to consultant. He is a major hailing from issue was originally raised by the Department Certified Public Accountant and Certified Northern Virginia. of Commerce. Government Financial Manager. He worked Brian will perform l Issue # 21 as a systems accountant in VA’s Office of a variety of Provide guidance on classification and Financial Management, where he was the different tasks in an definition issues pertaining to liabilities “trail boss” for preparing VA’s consolidated effort to aid in the “covered by budgetary resources” and “not financial statements. Steve will work for the overall mission of covered by budgetary resources”. The issue Program Management Ofice as one of the JFMIP. His main involves anti-deficiency considerations. It has test team leaders. focus for the not been completely reviewed yet by OMB. summer is The definition will have to be changed. Patricia (Pat) analyzing the issues surrounding benefit Suggestions to OMB on Form and Content Clark comes to payment systems and to help set the may be sufficient, or, if the issues become JFMIP on a groundwork for developing system more complex, a Technical Release may one-year requirements on this subject. become necessary. developmental assignment as part For more information, please got to the of the CFO FASAB website: www.financenet.gov/ Councils Fellow’s JFMIP has continued its support of the financenet/fed/fasab or contact Dick Tingley, Program. Pat has (202)512-7350.0 Women’s Executive Leadership (WEL) worked extensively Program by providing developmental work on the development Pa.t Clark assignments for program participants. The . . and maintenance of- WEL Program is a one year management 16 Summer 1999 JITWP NEWS Pmpective, continued jhm pag”2. will be issueda certificate of compliance. A improvements. The JFMIP Steering Financial Managers-Willa Green, formal notification letter of this servicewill be Committee agreedto jointly issuethe Guide Department of Labor.. issuedin September1999. with the CFO Council. Issuanceof the Guide JFMIP will alsobe working with the HRC asan exposuredraft is anticipated in the next on the developmentof a policy for continuing TheFiwncahl ikfawement Systems quarter. professional education for financial ComplianceReview G&e managementpersonnel. We arealsoassisting JFMIP is playing a supporting role to the Parmvi~ to ImpropeHuman Reswvces the OPM with their revision of qualification CFO Council Financial SystemsCommittee The human capital factor continues high and classificationstandardsfor the financial effort to develop the Financial Management on the JFMII? agenda. We are continuing to management occupational series; and Systems ComplianceReviewGuide. This effort work in partnership with the CFO. Human developing a website under the American is led by Schuyler Lesher, Chair, CFO Resources Committee (HRC). We are Learning Exchangefor financial management Financial SystemsCommittee, and is part of working on the issuanceof the updated core training and education. the CFO Council 5-year plan to improve competencies for accountants, budget Federalfinancial systems.Currently, multiple analysts, and financial managers. Each of Closi?agout l-T 1999 Federal requirements in Federal Managers’ these core competencies documents were This Joint Perspective closesout Fiscal Financial Integrity Act (FMFIA), section 4; reviewed by the Review Board, chaired by Year 1999 andmarksthe first year ofexistence FFMIA of 1996, OMB Circulars A-123, John Sander,Department of State; and Doris for the JFMIP Program Management OfEce A127, and A-130, and 0M.B Bulletin 98-08 Chew, JFMIP. Ken.Bresnahan,Chair, CFO (PMO) . We hope the JFMIP is meeting the aresubjectto review. No standardprocedures Human Resources Committee, was goal of providing leveraged support to the or instructions exist to conduct thesereviews instrumentalin assuringthat thesedocuments entire Federal community and value for the and current assessment methods vary. The continue to be current. Other key playersare: resourcesprovided. Your feedbackto JFMIP proposed Financial Management Systems Accountants-Jean Morgan, Department of is alwayswelcome. It hasbeen a lot of hard Compliance&v&w Gztide is a tool to assist Energy; Budget Analysts-Thad Juszczak, work to get this far and there will be manv agencies in performing reviews to assess Internal Revenue Service; Joel Friedl, challenges, in the year ahead. As we closeout whether their financial managementsystems Department of Defense; Dennis Kaplan, this fiscal year, I hope that each of you has comply with the range of Federal Department of Agriculture; and Janet time to enjoy the summerand take the time to requirementsand will provide information to Laytham, Department of Labor; and rechargeto meet the challengesahead. o help prioritize the criticality of system Comes, Continued jvm page 4. I won’t suggest,thatthe accounting standards was directed to begin an analysis of the disagreements is improving through the AAPC are complete, but they are comprehensive, individual elements of Stewardship aswell asthrough increasedcentralagencyand and we are gradually improving our capacity Reporting and make proposals on the FASAB staff consultation.” Perhaps the i to respond to implementation issues, The alternate placementof this information. greatestsourceof conflict that shehasobserved systems and staff issues are clearly top Concerning the issue of FASAB being isin the useof estimates.Federalagenciestend priorities in the coming years. It is designated as the Generally Accepted to rely on estimatesfor non-traditional things, unimaginable that we would enter the Accounting Principles (GAAP) setting body suchasaccountsreceivableandpayable. One of Information Age ,with the Federal for the Federal government, Ms. Comes the upcoming AAPC forums will contain a government operating systems that were remarked that the idea was still under program on auditingestimates anddealingwith designedin the relative Dark Ages.” deliberation. “rhe .American Institute of uncertainty. Currently, FASAB is recommendingnew CPAs hasbeencarefully consideringwhether With regard to the issueof the Federal standards on Internal Use Software, to recognize FASAB as a standard setting government ever getting an unqualified Management’s Discussionand Analysis and body via Rule 203. The processitselfhasbeen opinion, Ms. Comes was more inclined to are on the verge of recommending standards very useful. As the individual responsiblefor focus on present successes.“I’m encouraged for Social Insurance. Also, since FASAB managing our procedures and relationships by the progress in FY 1998 as well as the addedfour accounting standardsin FY 1998, with outside bodies, I have identified a determination of the CFO Council members. considerabletime is being allocated.to the number of areaswhere I personally can do a I believewe will seesteadyprogresseachyear, maintenance of existing standards. During better job. The’consequencesof Rule 203 but I also believe that this is not a caseof the spring; the Board decidedto slow the pace .recognition are increasedcredibility, for the immediate gratification. I hope that all of new work and allocate more time to Board. Further, the AICPA action would involved - including oversight groups - will reviewing the results of the new reporting clarify the statusfor auditors and preparers.” recognize that there are improvements along model andnew standards.As a result, FASAB When asked if Federal agencies were the way to a cleanopinion, and that the real staff are reviewing agency’sFY 1998 reports experiencing difficulties in complying with reward or goal is improved fulancial and compiling information on bestpractices, the new standardsissuedin Fi! 1998, Ms. management. potential issuesand innovations. The Board Comes stated that the changeswere fairly When askedabout her future goals, Ms. will begin reviewing theseanalysesin the fall. general. As a result, the agencieshave some Comesstatedthat shewascontent to focus on The Board has also addressedconcernsover room for interpretation, both between the here and now. In her words, “I have a the implementation of the Stewardship themselvesand among their auditors. “The fabulous job that always presents new Reporting element of the new model. Staff cinfi-astructure’ to assistin resolving these challenges.”o 17 jz%uP NEWS Summer 1999 ’ Sullivan, cmtimed jkvn page 5. for the bestvalue will lead to the proper and valuable consultant services to program ‘k businessprocesses.Another effort associated most cost effective decision. managers and be viewed by them as their I with the Department’s efforts each year to k A common concern among financial advocates.” Financial managersmust alsobe 1, ,produce audited financial statementshas also managers has been the lack of qualified, present at the table when major strategic and i improved stewardship and accountability. multi-skilled personnelto perform the more tactical decisionsare made and they need to = The CFO ofice has initiated monthly b complex tasks demanded of the Federal enhancetheir capabilities, particularly in the r’ meetingswith their auditors and senior level government. Mr. Sullivan sharesthis concern areasof financial data, review and analysis,so ! VA managers.“Thesemeetingsfoster a good but seesprogressbeing made thanks to the that they can improve their value to their dialog betweenmanagementand the auditors accomplishments of the CFO Council’s organizations and agencies. on the problems and issuesthat the auditors Human :Resources Committee headed by Like other financial managers, Mr. : are finding and helps management know Department of Labor’s DCFO/Acting CFO Sullivan pinpointed human resources, I where they need to focus their efforts.” Ken Bresnahan. ‘Their efforts need to specifically recruitment and retention, as an ~ Downsizing, a continuous challenge for continue, asthey promiseto increasethe skills area of major concern. He points to the most Federal agencies “has caused of existing financial staff, maximize use.of statistics that’ indicate 39% ,of. the ~ government to rethink how we can best limited training resources,and improve the government’s, GS-510 accountants are accomplishour mission,” saysMr. Sullivan. skillsof individuals wishing to join the Federal ‘presently eligible to retire and that this , Initially, the negative aspectsof downsizing government.” He alsoconsidercrosstraining percentage will skyrocket within the next -5 1 overshadowed efforts to. identify how we for financial managersto be a valuable and years. “Since the government is already way ’ could improve work processesto deal with necessary tool that should be utilized behind the curve on successionplanning, we downsizing. However, once implemented, whenever feasible. However, the downsizing need to be hiring skilled staffnow to provide li‘ gained efficiencies lessenedthe burdens of of the government has created difficulty in opportunity for new hires to learn from the having fewer employees. Unfortunately the implementing crosstraining opportunities for experts before they are gone.’ In order to do , timing of downsizing efforts forced the’lossof financial managers.With fewer staff, finding that, we need to have maximum flexibility to staff before identified efficiencies could be time for subject matter experts to be away utilize all currently available tools such as ~ implemented. from their jobs becomesmore d&cult. He recruitment and relocation bonuses,special i Technology has served as a catalyst to would like agenciesto considerswitching staff salary authorizations, use of “highest rate” lessenthe effect of downsizing. ‘Technology to provide key staff with cross-training authority, and retention allowances. If we hasprovided government workers expanded opportunities. This type of sharing want the best talent, ,we riced to provide tools to do their jobs better, faster, and with arrangement would lessen the impact of salariescomparable to the private sector.” lesspaper- and labor- intensive processes.” losing a key staff person. “Anything that Additionally, he believesthat the government VA has maximized the utilization of broadensthe understanding and expertise of needs‘to get way from thinking strictly about electronic meansto deal with downsizing. the financial staff isgood for the employeeand FTE and: grade levels and be allowed to ~ Mr. Sullivan fully supports JFMIE’s the organization.” manageto an approved budget; I efforts to establish mandatory core Mr. Sullivan believes that to run’ and ’ Mr. Sullivan addsthat other problemswill I requirements and evaluate/test vendor maintain an effective working environment, face all managers,both internal and external financial system packages. The old testing one needsto “empower the managersbelow to finance, in the next.5 to, 10 years..“We can’t method frustrated him becauseonly 30% of you and trust them to make the : right make needed changeshappen fast enough. the mandatory requirementswere tested and decisions. If there is not trust, then maybe We have more and more legislative mandates under the old testing processGSA was not you have the wrong personor personsin the we’re required to implement, with no allowed to sharethe resultswith the agencies. managementpositions.” Mr. ‘Sullivan noted additional -resourcesor staff to accomplish He is pleased by the fact that the current “A job like mine cannot be done alone.” He them” With straightlined budgets :and processnow allows agenciesto know what credits his success to having a set of funding difficult to obtain, finance initiatives they are buying off the new schedule. Mr. professionalmanagersand staff who Possess are and will continue to be much harder to Sullivan ‘favors the new testing method the requisite skills, determination and ‘sell’to senior executivesbecauseof the lower because he stressed that the days of cooperative spirit neededto work effectively visibility of financial programs when developing financial systemsin-house is long in the fast-paced financial management compared to major programs. over. “Procuring Commercial Off-the-Shelf government environment. Though he Mr. Sullivan’sgoalsfor the future include software (COTS) is the only way to go.” He maximizes delegation, Mr. Sullivan still making information availableat the fingertips noted a major VA initiative of looking at considershimself a “hands-on” manager.He for all managementrlevels of the organization. enterprise wide solutions to all of VA’s likes knowing allthe details. Additionally, he wants the VA to receive its businessneedsis underway. He expectsthat If he could make one change that would first cleanaudit opinion and createan entirely VA will acquire an off-the-shelf Enterprise improve the role of financial managers it paperlessfinancial operation in the upcoming ResourcePlanning (ERI?) systemthat meets .would be to increasethe collaboration and years. 0 JFMIP requirements. However, even before understanding in the budget and decision acquisition, he wasquick to point out that VA making processbetween financial managers would be using contractor support to and program managers.‘We must provide reengineermany businessprocesses.Looking 18 r I Summer 1999 TFMIP NEWS “Access> continued j?om page 9. Y2rC; continued ffom pa5e 12. l New tools, such aselectronic IDS and will test a consolidated student account to Digital Signature, to support distance planning, testing, businesscontinuity and provide a single source of information on learning programs, making it easierfor contingency planning, embedded systems, Federal financlal aid for students,schoolsand schoolsto provide flexibility for their and resourceadequacy. fi.mdinG sources. The account will be target audiences. The Year 2000 compliance status of maintamed for students throughout the America’s 21 largest cities (1996 estimates) student aid life cycle. Through this account, a Benejh to the FederdGovevwment are also mixed. In a .briefin for the Senate S ecial Committee on tif e Year 2000 designatedStudent Account Manager (SAM) will receiveandprocessstudentaid transactions and post them to the strident account. After a -By enabling government to provide serviceselectronically for those who f ethnology Problem on July 12, GAO reported that only two of the cities-Dallas desirethem, processingtimes and costs and Boston-described themselves as student leavesschool, loan repayments will can be reduced. also be posted to their student account. Y2K-ready. Ten of the cities reported A commercial electronic payments Through this collaborative effort, each planning to be ready by September 30, and ~transactionprocessor-the largestcredit card agencycan benefit through risk the remaining nine by December 3 1. :processor in the world, in fact - will run reduction, accessto government-wide In one final example, OMB reported in SAM, which initially will handleFederalTitle expertise, and the opportunity to June that 27 states’unemplo rment insurance IV student aid transactions including Pell mmimize implementation costs. systems were Y2K campi iant, 11 were Grants and student loans. SAM will make its Agenciesalsobenefit from improved lanned to be completed between April and debut in July in PhaseI of the AccessAmerica oversight and fraud detection Pune 10 betweenJul r and Se tember, and 5 for Students pilot ro ram. Plans to extend capabilitiesenabledby accessto between October and Decem&er. SAM to other FeCM er aid rograms for the up-to-date student account information student community are in 3: e works. whenever it is needed. Kky Nathwl Sectors The working groups are also concerned In the long run, agenciescan’provide with information dissemination in key What3 In It@ Ow Partners? better serviceto c&ens by delivering Access America for Students’ goal is to infrastructure and economic sectors of the information and servicesmore economy. For somesectors,such asbanking ~create benefits for everyone involved. efficiently and securelyto a much wider and financial senices, information audience. disseminationhasbeenexcellentand can serve Benejh to Stladertts One sourcefor student aid data asa model. In others, however-such asthe l Benejh to the Stadev~t FinnncidAid Industry health sector-information is seriously throughout a student’slife. Provides a common streamlinedprocess l lacking. For sectors such as this, thi l Information that is organized and for origination and payment President’s Council must continue to managedfor easieraccess. (disbursement). ag ressivelypursueand disseminatereadiness l Accessto a range of government and l Reducespaperwork, administrative inPormation, particularly in the areasof health institutional servicesvia a Web site burden and coststhrough the care and local law enforcement. To help gateway tid hyperlinks that are directed end-to-end electronic processingmade accomplish this, on June 14, 1999, the to a student’sneeds. possiblewith electronic ID. President ordered’ the creation of an Information Coordination Center to assist l Information availableon-demand l Offers op ortunity for artnership with with information sharing among key through the Internet, readily accessible public staKeholdersto f evelop common componentsofthe public andprivate sectors. 24 ,hours a day, sevendays a week. operating and businessstandards. In summary, marked improvements have l Privacy protected through the useof beenmade. While the Y2K challengeis being digital certificates for identity conc1usimt faced worldwide, and we are cooperating as authentication. Life’s too short to spend it hunting for much as possiblewith other nations, most government information. Through the countries are not asfar along as we are and l Thanks to digital signaturetechnology, uni ue combination of digital tools provided capability for electronic filing of can, therefore, expect a greater likelihood of by w ccessAmerica for Students, customers somedisruption. businessdocumentsto the Federal and stakeholderscan have easier,faster, more government. At the same time, considerable work convenient and less costly access to remains to be done at all levels-Federal, l Added opportunities for loan government services. Before long, the old state, local, and in our nation’s key economic counselingvia the Web site, including “stovepipe” method of delivering sectors-to protect against disruption of repayment calculationsand other government services-going door to door to critical domestic services. Remedlation of simulation tools. By being able to see door - will be a thing of the past. systems must be corn leted, end-to-end their full aid statusin one place, When it comes to puttin the %ervicen testing performed, and Eusinesscontinuity studentscan better understand the back in government service f elivery, Access and contingency plans developed. Whether extent of their loan commitments. America is poisedto turn vision into reality by we as a nation are ultimately successfitiin making the ‘Net work for students. Imagine confronting this challengewill depend on the Benejitsto Schools that! degreeto which, independently and together, l Faster processingand easieraccessto For more information about Access the public and private sectorscomplete these student aid data. America for Students, visit actions. Maintaining strong leadership and www.students.gov or contact Charlie cooperative partnerships will be key l Reduced reporting requirementsto the Colemanat firstname.lastname@example.org Federal government. determining factors. o l Easier reconciliation of student aid originations and disbtisements. 19 Contributors Karen Christopher Cleaty to this issue: Alderman Carbon ........ ...... JFMIP NASA I Change of Address? Write to JFMIZP News at: Room 3111 Mary Chase ......... GSA/JFMIP 441 G Street NW Patricia Clark. ....... Labor/JFMIP Washington, DC 20548-0001 Charles Coleman. ....... Education or call, 202/512-9209 Wendy Comes .......... FASAB Brian Dixon ............ JFMIP TheJlUUP News is published quarter: Steve Fisher ............ JFMIP Michael Fruitman .......... GAO by the Joint Financial Managemel Paul Gentille ........... Treasury Improvement Program. The purpose of tk Jim Harte .............. GSA newsletter is to promote sharing an Jean Holcombe ........... OMB disseminationof current financial managemer Michael Hrapsky. .......... GAO information, activities and practices. Janet Laytham ........... Labor Suggestions and article submission a~ Dorothy Sugiyama ..... Army/JFMIP encouragedand may be sent to JFMIP h’cu Frank Sullivan ............. VA Thane Thompson ...... Labor/JFMlP attheaboveaddress,fax202/512-9593,enla DickTingley. ........... FASAB email@example.com Bruce Turner. ........... JFMIP www.FinanceNet.gov/fed/jfntip/jfmil?.htm Joel Willemssen ........... GAO Soliciting Editor: Doris A. Chew Sheila Zukor ........... Treasury Publications Specialist: Bruce W. Klet US General Accounting Office Bulk Rate Postage & Fees Paid GAO Permit No. GlOO $tIz ;,tlt;et NW Washington, DC 20548-0001 Official Business Penalty for Private Use $300
JFMIP News: A Newsletter for Government Financial Managers, Summer 1999, Vol., 11 No. 2
Published by the Government Accountability Office on 1999-06-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)