FY 2001 Performance and Accountability Report Homepage Management Discussion and Analysis OPM's Mission and Strategic Goals FY 2001 Performance Summary Resources Used to Accomplish Goals Quality of Performance Data Analysis of Our Financial Performance Systems, Controls and Legal Compliance Looking Ahead Limitations of the Consolidated Financial Statements

 

Management Discusson and Analysis

FY 2001 Performance Summary

 

OPM's FY 2001 Performance Plan included 87Annual Performance Goals that described the specific actions and initiatives planned for fiscal year 2001. We accomplished 80 of these goals, and by so doing, continued toward achieving our Strategic Goals and underlying Objectives.

Human Capital Leadership—Strategic Goal I

The OPM Strategic Plan describes the ultimate outcome of its leadership in human capital management as Federal agencies being able to meet their goals and objectives, and recruit and retain workers that reflect the diversity of America and deliver excellent and courteous service to their customers. While the agency is on its way to achieving this outcome, much work remains to be done. This is reflected in the Corporate Measures for human capital management. As shown in the table Human Capital Leadership Results, public satisfaction with Federal government services overall—as measured by the American Customer Satisfaction Index—is excellent when compared to the private sector. Also, the most recent results from the annual survey of Federal Human Resource Directors confirm that OPM is focusing on the appropriate issues and that HR Directors believe OPM collaborates effectively with them as we develop human resources policy and implement new programs.

These positive results can be attributed to the fresh focus on agency customers, and to the wide range of initiatives pursued during the year, including the Administration's legislative proposal that was introduced in Congress as the "Managerial Flexibilities Act." This proposal introduced significant new flexibilities for recruiting, hiring, managing, and retaining a top quality workforce. Other high profile initiatives included the implementation of the new Federal Long Term Care Insurance Program, assistance to agencies with the analysis of their workforce demographic and skill needs, the roll out of the Federal Career Intern Program and the Performance America Network, and the continued promotion of work/life programs, such as telecommuting.

Strategic Goals	Number of Annual Goals	Number of Goals Met	Number of Goals Not Met
I. The Federal Government effectively recruits, develops, manages and retains a high quality and diverse workforce even as the labor market and workplace undergo significant and continuous change.	24	21	3
II. The Federal Government, as an employer, consistently honors merit principles in managing its workforce.	7	7	0
III. OPM's high quality, cost-effective human resources services meet the evolving needs of Federal agencies, employees, retirees, their families, and the public.	25	23	2
IV. The employee benefit trust funds are models of financial excellence and integrity.	1	1	0
Corporate Management Strategies and Internal Goals.	30	28	2
2001 Totals	87	80	7

 

 

Human Capital Leadership Results
Measure/Indicator	1998	1999	2000	2001
Percent of Human Resource Directors who agree:
OPM is focused on the appropriate human capital issues	No Data	No Data	No Data	79%
OPM Collaborates effectively on Policy Making	No Data	No Data	74%	85%
OPM HRM guidance, programs, and strategies are useful	No Data	No Data	81%	76%
Workforce has skills to meet agencies' missions	No Data	No Data	45%	59%
OPM policies help recruit a high quality workforce	No Data	No Data	No Data	53%
American Customer Satisfaction Index Results:
Overall public satisfaction with Federal agency services	No Data	68.6	68.6	71.0
Overall customer satisfaction with private sector services	No Data	71.9	71.2	70.0
OPM Employee Survey Results:
Overall job satisfaction	62%	60%	63%	N/A*
Overall quality of work	72%	72%	72%	N/A*
* No OPM survey of Federal employees was conducted in FY 2001. Survey will be reconstituted later in FY 2002.

 

Despite these positive signs, the results were disappointing for the indicators that get to the heart of strategic management of human capital. Only 59 percent of HR Directors believe that their workforce has the skills needed to meet the mission of their agencies, and only 53 percent find OPM's policies and programs helpful toward recruiting a high quality and diverse workforce. These indicators should be in the 70 to 80 percent range for OPM to be successful. The passage of the Managerial Flexibilities Act could make a significant difference in this indicator in the future. Also, OPM is taking a hard look at the underlying policies and processes for the way the government hires and compensates our Federal workforce, and we are committed to taking the leadership actions needed to introduce change where necessary.

Merit Systems Oversight—Strategic Goal II

OPM continued working toward consistent adherence to the merit system across the Federal government. In the oversight of the merit system, the agency completed its scheduled reviews of eight large and nine small agencies and 103 delegated examining audits. OPM reviewed agency internal accountability efforts at eight large and nine small agencies in FY 2001. Also, we strengthened agency Delegated Examining Units by revising the DEU Handbook and Training Materials to make them customer focused, and added information on the existing Federal hiring flexibilities, which will enable DEU's to reduce the time it takes to hire applicants, while ensuring that merit principles are observed.

OPM is generally pleased with the results of the Merit System Principles Questionnaire during FY 2001 as the indexes for six of the nine merit principles show improvement since new baseline were established in 1999. However, the results shown in the Merit Systems Oversights Results table clearly indicate that perceptions of status in areas such as equal pay for equal work, rewarding excellent performance, managing employees efficiently and effectively, and protecting them against reprisal for lawful disclosure are at unacceptably low levels and will be addressed in our future plans and strategies.

 

Merit System Oversight Results
Merit Principle/Measure		1999	2000	2001
1.	Recruit, select, and advance on the basis of merit.	62%	64%	65%
2.	Treat employees and applicants fairly and equitably.	63%	65%	65%
3.	Provide equal pay for equal work and reward excellent performance.	44%	45%	47%
4.	Maintain high standards of integrity, conduct and concern for the public interest.	76%	76%	68%*
5.	Manage employees efficiently and effectively.	54%	54%	55%
6.	Retain or separate employees on the basis of their performance.	65%	66%	68%
7.	Educate/train employees when it will result in better organizational or individual performance.	58%	57%	61%
8.	Protect employees from improper influence.	67%	70%	69%
9.	Protect employees against reprisal for lawful disclosure.	41%	47%	44%
*Questions were changed in the FY 2001 survey. Therefore a comparison to prior year's data is not meaningful.

 

Services to Our Customers—Strategic Goal III

OPM strives to provide human resource products and services to agencies and to employees, retirees, and their families, that are high quality, cost effective, and meet their needs. The results of service delivery activities during fiscal year 2001, shown in the Service Delivery Results table, indicate that customer satisfaction with most services remained at or near historically high levels. Statistics also show that OPM is using technology to provide services to an increasing number of customers, e.g., the use of our USAJOBS website. In addition, the agency reduced the time needed to process retirement claims under the Federal Employees Retirement System and improved claims processing accuracy.

However, OPM has not yet achieved its long-term service delivery objectives, particularly for the retirement program. OPM is also aware that there are serious problems with the public perception that the job announcement system is not as user friendly or as responsive to job applicants as it should be. Thus, improving customer services will continue to be a priority in the agency's performance plans for FY 2002 and FY 2003. The Retirement System Modernization effort will address service to the retirees, and the President's e-Government management initiative, which includes an OPM project to create a "One-Stop Recruitment" site, will improve the way job applicants are served.

 

Service Delivery Results
Measure/Indicator		1998	1999	2000	2001
Customer Satisfaction:
	% HR Directors Agreeing Website Services are Convenient	N/A	N/A	98%	97%
	% Annuitants Satisfied w/ Overall Retirement Services	90%	96%	93%	93%
	% Enrollees Satisfied w/Health Benefit Plan-HMOs	N/A	60%	59%	62%
	% Enrollees Satisfied w/Health Benefit Plan-FFSs	N/A	70%	70%	77%
Timeliness/Accessibility of Services:
	Website Hits on USAJOBS	8.5 M	13.1 M	15.4 M	20.7 M
	CSRS Annuity Claims Timeliness	23 Days	32 Days	44 Days	54 Days
	FERS Annuity Claims Timeliness	93 Days	94 Days	185 Days	101 Days
Service Quality/Accuracy:
	% HR Directors Agreeing OPM Website Services are Relevant	N/A	N/A	100%	100%
	% HR Directors Agreeing OPM Website Services are Sufficient	N/A	N/A	89%	94%
	CSRS Annuity Claims Accuracy	92.9%	88.3%	93.5%	95.1%
	FERS Annuity Claims Accuracy	94.5%	92.4%	87.6%	92.4%
	% of HB Enrollees Enrolled in Top-Rated Plan	65%	32%	90%	82%
Cost Effectiveness:
	Retirement/Survivor Claims
	Unit Cost	$72.46	$81.82	$83.52	$82.53

 

Trust Fund Financial Management—Strategic Goal IV

OPM takes very seriously its responsibilities regarding the management of the employee benefit trust funds (Retirement, Health Benefits, and Life Insurance Programs). Ultimately, OPM wants the financial systems supporting the trust funds to be recognized by the agency's auditors, the General Accounting Office, congressional oversight committees, and other stakeholders as a model of excellence and integrity in the management of these funds.

The effectiveness of OPM's actions is evidenced primarily in three ways: First, by the unqualified audit opinions received on the agency's annual financial statements (see "Clean" Audit Opinions in Analysis of Our Financial Performance); Second, by actions taken to ameliorate materials weaknesses and non-conformances identified though internal reviews and auditors; and Third, the low rate of erroneous payments in the annual benefit outlays. OPM must maintain these successes and further strengthen its financial management systems so that they fully comply with Federal Financial Management Improvement Act requirements.

Trust Fund Financial Management Results
Measure/Indicator	1998	1999	2000	2001
Audits completed by Inspector General	53	64	80	112
Dollars saved from audit activities	$76.4M	$51.9M	$102.5M	$242.1M
Return on investment for audit activities (per $1 spent)	$9.00	$5.92	$11.30	$25.00
Timely payment of Retirement benefits (% paid on time)	97%	98%	97%	97%
Erroneous Payment Rate - Retirement Program	N/A	0.19%	0.23%	0.20%
Erroneous Payment Rate - Health Benefits Program	N/A	0.49%	0.36%	0.99%
Erroneous Payment Rate - Life Insurance Program	N/A	0.01%	0.01%	0.01%

 

Corporate Management Strategies and Other Supporting Goals

OPM recognizes that it cannot accomplish its program goals and outcomes without properly managing the agency's internal resources. These resources include a workforce of nearly 3,000 well-trained, diverse, and motivated people, its information technology systems and infrastructure, and its financial management systems. OPM established goals for each of these critical areas and maintained a cooperative and consultative relationship with its Inspector General regarding the oversight of these resources. During fiscal year 2001, the agency met 28 of the 30 performance goals in this regard.

 

Previous Page   |   Next Page