Appendix A-11: Office of the Chief Financial Officer

FY 2000 Performance Report
Goal & Performance Indicators Checklist

Forward | Back | Table of Contents | OPM Home Page

FINANCIAL MANAGEMENT STRATEGIC GOAL

SAFEGUARD OPM’S FINANCIAL RESOURCES AND PROVIDE FINANCIAL MANAGEMENT LEADERSHIP, SERVICES AND INFORMATION TO OPM PROGRAMS TO ASSIST THEM IN MEETING THEIR STRATEGIC GOALS.

OCFO Goal 1 -- M

Material weaknesses are resolved and the Financial Management System, the Employee Benefits System, and internal controls are improved in order to maintain the integrity of the earned employee benefits trust funds (totaling more than $60 billion in annual benefit payments) and OPM’s appropriated and reimbursable funds.

This goal was established to ensure that OPM’s financial data is accurate, timely and reliable to inform decision making and safeguard resources. There are eight indicators to assess whether or not this goal is achieved. Of these, the sixth and the eighth were identified at the beginning of the year as most critical for achieving the goal. We met this goal by eliminating material weaknesses identified by an audit performed by our Office of the Inspector General and by receiving an unqualified opinion on OPM’s consolidated financial statements.

M System accounting errors.

Designed and implemented the use of an Invoice Control Log which is used to track all incoming invoices from receipt to payment thus improving the tracking of payments. All staff have been trained and oriented to the reengineered tracking procedure. An aging report has been developed which will more accurately reflect accounts payable status. Previously the report included payments that were erroneously scheduled for weekend processing, thus bringing the timely payment percentage level down. We are now better able to track the progress of payments within the system to ensure compliance with the Prompt Payment Act.

N Accounts Receivable Delinquency

Developed an aging report that will more accurately identify receivable delinquency. We now collect and resolve employee debt older than 60 days. All staff have been trained on the reengineered collection process.

M Reconcile Cash Accounts Differences with Treasury

We have entered into a Memorandum of Understanding with GSA to automate timesheet processing and cross-service the payroll function. This will eliminate the necessity for a separate work reporting system. The OCFO will not use this indicator in FY 2001.

M Material weaknesses eliminated. [Critical indicator]

This is a critical indicator because financial management concerns are designated material weaknesses upon recognition that the Government risks substantial losses if the control issues are not resolved. Successful resolution of these weaknesses often requires the application of major resources over time, and their elimination is a valid indication of significant improvements in OPM’s overall financial management function.

The Federal Managers’ Financial Integrity Act (FMFIA) report submitted to the Office of Management and Budget in December 2000 concludes that the lack of documented financial management policies and procedures is no longer seen as a material weakness. The outstanding items in accounts receivable processing and accounts payable processing and reporting in the Revolving Fund and Salaries and Expenses Account are primarily cleanup processing. The clean up phase has been consolidated into a general material weakness covering data reconciliation and control.

In FY 2000 we researched and corrected (or scheduled for automated correction) several million dollars of unposted accounts receivable collections and unrecognized revenue. We also researched and collected several million dollars of cash transactions improperly reported to the Department of Treasury for FY 1995 through FY 1999.

In cooperation with OPM program staff, we collected several million dollars of debts that had been outstanding for more than one year.

M Financial condition (health) of our programs, gauged through frequent analysis.

OPM programs are continually reviewed for their financial performance and viability. We monitor whether the program administration utilizes financial resources efficiently and in substantive compliance with applicable statutes and guidance.

M Improved Inspector General, Independent Public Accountant (IPA), and GAO audit results. [Critical indicator]

This is a critical indicator because audit opinions on annual financial statements, along with other reviews and reporting by auditors, provide clear indications as to the timeliness, completeness, accuracy, usefulness of financial information and overall compliance with financial management regulations and guidance.

OPM received an unqualified audit opinion on its consolidated financial statements.

An audit performed by the Office of Inspector General has concluded that the Financial Management Policies and Procedures are no longer considered a material weakness for the OCFO.

OCFO Goal 2 -- M

Integrated financial management support and reporting is provided to ensure OPM’s core functions can meet their goals and objectives.

This program goal was established to ensure that OCFO provides financial management support so that OPM programs have the funding and information necessary to help them achieve their strategic and annual goals. There are seven indicators to assess whether or not this goal is achieved. Of these, the third and the seventh were identified at the beginning of the year as most critical for achieving the goal. We met this goal by providing a mechanism for customers to express what additional financial information would be necessary to assist them in meeting their goals. A comprehensive gap analysis report was developed by an outside contractor with recommendations on closing identified high-risk gaps. OCFO also reengineered and documented the policies and procedures to ensure accurate financial management processing.

M Achieved full Year 2000 compliance in all financial systems.

As a result of coordinated planning and exhaustive testing, OPM experienced no significant problems related to the advent of the new millennium.

M Comply with the Government Performance and Results Act (GPRA).

After consultation with Congress and our other stakeholders, OPM issued a new strategic plan, Federal Human Resources Management for the 21st Century FY 2000 – FY 2005. This new plan sets forth four strategic goals: lead Federal agencies in shaping human resources management systems to effectively recruit, develop, manage and retain a high quality, diverse workforce; protect the merit principles and veterans’ preference; serve Federal agencies, employees, retirees, their families and the public through technical assistance, employment information, pay administration and benefits delivery; and safeguard employee benefit trust funds.

In addition, OPM transmitted to Congress our FY 2001 Congressional Budget Justification/Annual Performance Plan, which integrates performance information with the budget request. The plan links our annual performance goals with the strategic goals in our revised strategic plan.

Our first annual Performance Report covering FY 1999 was issued on March 31, 2000. Our FY 2000 Performance Report will be part of our Accountability Report and issued by March 1, 2001.

M Actions taken in response to expressed customer needs. [Critical indicator]

This is a critical indicator because customers rely on accurate, timely and complete financial data from the Office of the Chief Financial Officer when determining management goals and strategies for their programs and evaluating program performance. Customers must have financial systems that are responsive to their needs.

In FY 2000 we completed the contracted comprehensive requirements and gap analyses of the agency’s administrative financial systems. As a result of the study, OPM took action to close high-risk gaps and implement a new financial management system. The high risk gaps were identified in seven specific areas (1) core accounting and general ledger management (2) procurement and payment management (3) revenue/receipt management (4) reporting (5) payroll management (6) cost management (7) travel management. Many of the recommendations are in the beginning stages of implementation and progress will continue to be made in FY 2001.

In addition, we issued a contract to develop a system to improve the billings and collections processes for Investigations Service.

N Achieved timeliness on at least 98% for payments and at least 99% for collections.

In FY 2000 we tested and implemented the FACTS II capability with the Department of Treasury to eliminate paper-based reports.

M Documented and implemented policies, processes, and procedures.

This is a critical indicator because the Office of Inspector General has cited the lack of documented policies and procedures as a material weakness within the OCFO for several years. The successful completion of this project ensures that OCFO staff has documented procedures to follow for the performance of critical financial tasks.

OCFO reengineered and documented the policies and procedures for all major processes in accounts payable, property and equipment, payroll, travel, budgetary accounting, and the chart of accounts. Also, we updated the documentation of the policies and procedures for accounts receivable and cash management as well as the documentation for the financial systems.

M Received positive feedback from the Quality Improvement Teams’ ongoing reviews of the financial processing functions and results. [Critical indicator]

Quality Improvement Teams (QIT) worked on complex financial management issues such as cash reconciliation and payroll accounting. All QIT teams to date have provided timely and valuable contributions to our solutions of various long-term, office-wide functions in need of process reengineering or other major improvement.

The Investigations Service QIT identified $40 million in correcting adjustments which improved internal controls.

The Payroll QIT evaluated the accounting process and recommended the steps needed to adjust accounts for correction.