Management

Improved Financial Performance

May 30, 2003

All agencies meet accelerated November 15th deadline for audited financial statements Receive clean opinion on all audited financial statements GAO audit of government-wide financial statements Resolve auditor-identified and Integrity Act material weaknesses in internal control Agency funds are disbursed in strict compliance with appropriations law Financial systems are integrated and provide timely and reliable financial information Financial and performance information is routinely considered during operational evaluation and decision-making Monthly financial performance metrics reported, tracked vs. goals, and available on line at agency and government-wide levels Streamline and achieve greater transparency in the grants management process Eliminate investments in redundant Financial Management Systems via migration to standardized core software Substantially reduce erroneous payments Consolidate payroll providers government-wide (est. savings of $1.2 billion in next 10 years)

Goals for July 1, 2004
Owner: Linda Springer

Overall:	25%			35%			Note: Bullets indicate % of agencies (and/or attainments) that Initiative Owner believes will have achieved the bolded goal by July 2004

100% of agencies will be on track for FY 2004
50% of all agencies will have met deadline in 2003, one year ahead of schedule

95% (all but DoD) of all agencies in both FY 2003 and FY 2004

Will be on track for at least a civilian-only audit in FY 2004

80% of all agencies will have achieved 50% reduction in auditor and Integrity Act Sec. 2 weaknesses
95% of all agencies will have achieved 50% reduction in Integrity Act Sec. 4 weaknesses

No more than 10% of all agencies will have no anti-deficiency act violations

50% of all agencies will have systems that comply with FFMIA

25% of all agencies

100% of agencies will have reported and provided analysis of results using new reporting tool

Maximize grant applicants' use of e-grants to find and apply for grants
Document administrative and supplies cost savings and reduced processing time
100% of all grant making agencies will have met the unique identifier requirement

Conversion/migration strategy will have been put in place; agencies identified for initial migration

All agencies will have measured, determined causes, and taken remedial actions to address
$3 - 5 billion less in improper payments from current $35 billion baseline will have been achieved

Initial group of 8 agencies will have completed migration
Balance will be on track for November 2004 migration

STRETCH GOALS:

If IRS had additional resources ($140 million) with which to reduce erroneous EITC payments, government-wide erroneous payments could be reduced by an additional $1.4 billion.
If DoD produced auditable financial statements by FY 2004, GAO could complete a government-wide - not just civilian - financial statement audit.

Key Milestones - What the Initiative Owner will do:

All agencies meet accelerated November 15th deadline for audited financial statements
Q3/2003	Meet individually with agency CFOs/IGs to review plans for achieving accelerated financial statement; follow-up with routine progress monitoring
Q3/2003	Hold acceleration best practices forum for CFO Council; additional sessions as needed
Ongoing	Maintain focus on high risk agencies with more frequent interaction
Receive clean opinion on all audited financial statements
Q3/2003	Meet individually with agency CFOs/IGs to discuss status of audit, follow up with routine progress monitoring
Q2/2004	Complete first report on agencies' implementation of recovery auditing
Ongoing	Maintain focus on high risk agencies with more frequent interaction
GAO audit of government-wide financial statements
Q4/2003	Develop plan with Treasury/GAO to meet December 15, 2004 reporting deadline
Q4/2003	Develop plan with Treasury/GAO to resolve government-wide material weaknesses
Q2/2004	Resolve government-wide intra-governmental transaction material weaknesses
Q4/2004	Implement new closing package/process for 2004
Resolve auditor-identified and Integrity Act material weaknesses in internal control
Q3/2003	Meet individually with agency CFOs/IGs to discuss status/plans for material weakness resolution
Q2/2004	Resolve government-wide intra-governmental transaction material weaknesses
Agency funds are disbursed in strict compliance with appropriations law
Q3/2003	Meet individually with agency CFOs/IGs to discuss status of audit, follow up with routine progress monitoring
Financial systems are integrated and provide timely and reliable financial information
Q3/2003	Meet individually with agency CFOs/IGs to discuss status of audit, follow up with routine progress monitoring
Financial and performance information is routinely considered during operational evaluation and decision-making
Q2/2003	Issue guidance clarifying performance and financial management criterion
Monthly financial performance metrics reported, tracked vs. goals, and available on line at agency and government-wide levels
Q3/2003	First generation CFO Council financial performance metrics report in production
Q4/2003	Ensure that second generation financial performance metrics report, integrated with performance goals, is in production
Streamline and achieve greater transparency in the grants management process
Q3/2003	Finalize unique identifier requirement
Q4/2003	Confirm implementation of e-Grants Phase I and request/review savings achieved
Q1/2004	Deploy Phase I of e-Grants (e-Find, e-Apply)
Eliminate investments in redundant Financial Management Systems via migration to standardized core software
Q4/2003	Develop business case/project; assess go-forward viability; retool if required
Q4/2003	Identify candidate agencies for initial migration
Q2/2004	Select core accounting engine; develop conversion/migration strategy
Substantially reduce erroneous payments
Q3/2003	Finalize baseline for FY 02 erroneous payments and publish guidance for agencies to meet requirements of Improper Payments Improvement Act
Q3/2003	Prepare/distribute list of third party resources to assist agencies in reducing erroneous payments
Q3-4/2003	Review assessment/remediation plans/techniques and progress with agencies; update quarterly
Consolidate payroll providers government-wide (est. savings of $1.2 billion in next 10 years)
Q3/2003	Migration plans for all agencies received and reviewed
Q1/2004	Migration for 8 smaller agencies complete

What it means to be green

Agency receives an unqualified audit opinion on its annual financial statements.
Agency meets financial statement reporting deadlines.
Agency reports in its audited annual financial statements that its systems are in compliance with the Federal Financial Management Improvement Act.
Agency produces accurate financial information on demand.
Agency routinely assesses performance and financial information which its managers use to make day-to-day decisions.
Agency has no Anti-Deficiency Act Violations.
Agency has no material auditor-reported internal control weaknesses.
Agency has no material non-compliance with laws or regulations; agency head provides an unqualified statement of assurance in its annual accountability report.

Note: New Asset Management Initiative to be introduced - goals/criteria development in progress.

What it means to be yellow

Agency produces accurate financial information on demand. OR
Agency routinely assesses performance and financial information which its managers use to make day-to-day decisions.

AND

Agency reports in its audited annual financial statements that its systems are in compliance with the Federal Financial Management Improvement Act.
Agency has no Anti-Deficiency Act Violations.
Agency has no repeat material auditor-reported internal control weaknesses; auditor expresses an opinion on the annual financial statements; agency meets financial reporting deadlines; agency has no material non-compliance with laws or regulations.
Agency head provides an unqualified statement of assurance in its annual accountability report.

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