Appendix C: Management Challenges and Linkages to Program Performance Goals

FY 2000 Performance Report

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Our Office of the Inspector General identified six management challenges for OPM in their letter to five members of Congress of December 1, 2000. Each of these challenges is directly addressed in our FY 2000 annual performance plan and report. The challenges and the individual program performance goals that are related to them are described below.

Challenge 1. Revolving Fund and Salaries and Expense Accounts

Correcting material deficiencies in OPM’s financial management systems for the Revolving Fund and Salaries and Expenses accounts remains a significant agency challenge.

    Relevant Goal:

      OCFO 1 -- 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 fund (totaling more than $60 billion in annual benefit payments) and OPM’s appropriated and reimbursable funds.

Challenge 2. OPM’s Financial Management Oversight of the FEHBP

OPM’s financial management of the FEHBP should be enhanced to provide more effective oversight of its operations.

    Relevant Goals:

      RIS 5 -- The financial oversight of the employee benefit trust funds is strengthened in that (a) the FY 1999 Trust Fund annual financial statements receive unqualified opinions from an independent auditor, (b) the earned benefit financial subsystems are integrated with the new general ledger installed in early FY 1999, and (c) financial policies and procedures support the earned benefit financial systems are properly documented and comply with applicable requirements and standards.

      OCFO 2 -- Integrated financial management support and reporting is provided to ensure OPM’s core functions can meet their goals and objectives.

Challenge 3. Retirement System Modernization

While not appropriately characterized as a current problem, one of the agency’s most significant, high-risk challenges continues to be the modernization of the systems used to administer the Federal Retirement Program.

    Relevant Goal:

      RIS 14 -- Accelerated information technology solutions for a modernized retirement system are designed, developed, and implemented.

Challenge 4. OPM’s Implementation of the Government Performance and Results Act

While OPM efforts have shown the agency’s commitment to results-oriented performance and accountability, it will most likely take many more planning cycles to perfect a successful system for performance-based management. The [FY 1999] annual performance report fails to fully demonstrate the progress OPM is making toward achieving desired outcomes or the actual effect of its programs on the way the Federal government manages its human capital systems. Still, we believe OPM’s process for strategic planning and performance measurement is moving in the right direction.

    Although only one program performance goal deals directly with GPRA implementation, the GPRA process is inherent in every piece of the performance plan, from goal structure to success measurement to performance evaluation, meaning each goal in the performance plan has been designed to be outcome-oriented. We will continue to enhance our GPRA process, using performance data to more effectively plan, budget, execute, and evaluate our programs and activities.

    Relevant Goal:

      OCFO 2 -- Integrated financial management support and reporting is provided to ensure OPM’s core functions can meet their goals and objectives.

Challenge 5. Human Resources Accountability

With the increasing importance and emphasis being placed on human resources management and accountability, OPM has a significant role to play in promoting and enabling broader application of human capital principles.

    We have already deployed tools and started initiatives that assist employing agencies in developing human resources management and accountability systems. We will tailor our future initiatives to the priorities of the new Administration, as we proceed in this area.

    Relevant Goals:

      OMSOE 4 -- Agency systems assure accountability for the merit system principles and the laws, rules, and regulations governing Federal HR management.

      ES 8 -- A model for workforce planning, analysis, and forecasting (initially enhanced by a direct link to the Census Bureau, DOL, and educational institution data, with expansion of databases in later versions) is in place so that agencies can enhance workforce quality for mission-critical occupations by selecting from a diverse pool of well-qualified applicants, and by conducting effective succession planning.

      ES 16 -- Organizational assessment tools are available to agencies to improve Government performance, including customer service.

      WCPS 8 -- Agency managers are receiving easy-to-use classification and position management program guidance that facilitates delayering and streamlining their organizations.

      WCPS 10 -- The Governmentwide policy framework is up-to-date and accommodates cutting-edge proposals so that agencies can enhance individual and organizational performance and ensure individual accountability.

Challenge 6. Health Care Fraud and Abuse in the Federal Employees Health Benefits Program

Health care fraud continues to be recognized as a nationwide problem. OPM OIG’s ability to investigate and prosecute health care fraud and abuse continues to be adversely affected by exclusion of the FEHBP from certain civil enforcement provisions of the Health Insurance Portability and Accountability Act (HIPAA) of 1996 (Public Law 104-191) which apply to all other Federal health care programs.

    Relevant Goal:

      OIG 3 -- Fraud against OPM programs is detected and prevented.

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