Financial Management Conference Scheduled

The Joint Financial Management Improvement Program–a joint program of the Treasury, GAO, OMB and OPM–will hold its annual Federal Financial Management Conference on May 8 at the Ronald Reagan Building and International Trade Center in Washington, D.C.

“This one-day conference provides a forum for those in the federal financial management community to learn about current issues, exchange knowledge, and share experiences in improving financial management operations and policies,” according to the announcement.

Also, the organization is soliciting nominations through March 7 for the annual Donald L. Scantlebury Memorial Award, which recognizes “senior financial management executives who, through outstanding and continuous leadership in financial management, have been principally responsible for significant economies, efficiencies and improvements in the government.”

Further information is on the CFO Council site.

READ MORE...

GAO: Many federal financial books are so sloppy they can’t be audited

The Government Accountability Office says many federal agencies’ financial books are in such bad shape that they cannot be audited.

In a report released last week, the GAO said material weaknesses in accounting procedures “hamper the federal government’s ability to reliably report a significant portion of its assets, liabilities, costs and other related information.”

The GAO said its report on the U.S. government’s consolidated financial statements for fiscal years 2015 and 2016 “underscores that much work remains to improve federal financial management.” The agency couldn’t even express an opinion on the balance sheets because of the weak financial reporting.

GAO noted that 34 percent of the federal government’s reported assets and 18 percent of its reported net cost relate to federal entities that were unable to issue audited financial statements, were unable to receive audit opinions on the complete set of financial statements or received a disclaimer of opinion on their statements.

The GAO called out the Department of Health and Human Services and Department of Defense, in particular, for weak internal controls.

The agency also took a shot at the Department of the Treasury and the Office of Management and Budget, noting that some of the “numerous recommendations” GAO made to those agencies in previous years to address internal control deficiencies remain unaddressed. The secretary of the Treasury and director of OMB are required to annually submit financial statements for the U.S. government, audited by the GAO, to the president and Congress.

-Johnny Kampis, Watchdog.org
READ MORE...

US Treasury Publishes the Financial Report of the United States Government - 2016

The annual Financial Report of the U.S. Government provides to the public a comprehensive overview of the Government's current financial position, as well as critical insight into our long term fiscal outlook.

The Citizen’s Guide to the Fiscal Year 2016 Financial Report of the U.S. Government (Financial Report) summarizes the U.S. Government’s current financial position and condition, and discusses key financial topics, including fiscal sustainability. This Guide and the Financial Report are produced by the U.S. Department of the Treasury in coordination with the Office of Management and Budget (OMB) of the Executive Office of the President. The Secretary of the Treasury, Director of OMB, and Comptroller General of the United States at the Government Accountability Office believe that the information discussed in this Guide is important to all Americans.

Find the Report here....

IG: Justice Department shows leadership for DATA Act rollout, but gaps remain

The Justice Department is on schedule to meet the DATA Act implementation deadline — sort of.

DOJ’s Office of Inspector General recently issued a review of the department’s progress toward standardizing its financial spending  reports, and according to the internal watchdog, “nothing came to our attention that caused us to believe that a material modification should be made” to Justice’s plans to meet the May 2017 deadline.

But the IG did note “areas of concern that potentially could impact the department’s ability to most effectively meet all the requirements within the requisite timeframe.”

Those areas of concern range from completing a full inventory, mapping and gap analysis of the department to an incomplete data extraction standard.

The inspector general looked at the first four steps of the eight-step plan recommended by the Treasury Department for DATA Act implementation. Treasury and the Office of Management and Budget are the agencies spearheading the work.

Within the Digital Accountability and Transparency Act is a requirement that agency IGs report on the law’s implementation. The first set of reports was due in November, however, the Council of Inspectors General on Integrity and Efficiency (CIGIE) recommended last December that because the spending data would not be available for November 2016, that the first required reports be due November 2017, with additional reports in 2019 and 2020.

According to the review, the Department has three financial systems: the Unified Financial Management System (UFMS); the Financial Management Information System 2 (FMIS2), a legacy financial system; and the Systems, Applications, and Products (SAP) system.

Instead of inventorying these systems, DOJ inventoried the Drug Enforcement Administration’s (DEA) procurement information in UFMS and an initial inventory of the Office of Justice Programs’ (OJP) grant award information in FMIS2 — with the hope that the lessons learned could be applied to the other financial systems.

-Meredith Sommers, FederalNewsRadio.com

READ MORE...

DATA Act Resources

Information regarding the requirements for implementation of the DATA Act can be found at the following websites:

–OMB Memo 15-12: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2015/m-15-12.pdf.

–OMB MPM Memo 2016-03: https://www.whitehouse.gov/sites/default/files/omb/financial/memos/management-procedures-memorandum-no-2016-03-additional-guidance-for-data-act-implementation.pdf

–DATA Act Data Elements guidance: https://community.max.gov/pages/viewpage.action?spaceKey=Management&title=B%3A+DATA+Act+Elements+Guidance.

–DATA Act GitHub site: https://fedspendingtransparency.github.io/.

–DATA Act Policy FAQs: https://community.max.gov/display/Management/DATA+Act+Implementation+Other+Resources.

–RSS: https://community.max.gov/x/CIbyL

FY2015 US Federal Financial Statement Audit Due Monday

The audited financial statements of the 24 CFO Act agencies and participating federal organizations & commissions are due to be published on Monday November 16, 2015.

The following urls provide starting points to locate the publications.

http://www.performance.gov/
http://www.gao.gov/key_issues/federal_financial_accountability/issue_summary
http://www.treasury.gov/about/budget-performance/annual-performance-plan/Pages/default.aspx
@FedCFO



  

Agencies Looking for Internal Data Turn to USASpending.gov

It’s surprising how many agencies now use USASpending.gov to “access their own data,” said David Lebryk, the fiscal assistant Treasury secretary who on Monday delivered an upbeat assessment of governmentwide progress in implementing the 2014 Digital Accountability and Transparency Act.

“We’re off to a great start on tough challenges, but outsiders don’t really appreciate how complex government is,” he said at a breakfast sponsored by the Johns Hopkins University Government Analytics program and REI Systems.

“We’re not a small business,” Lebryk said, referring to the federal government. “We’re the biggest entity in the world. And at a time of budget constraints, there is more scrutiny of spending, of which the DATA Act is a part.”

Lebryk and Comptroller David Mader are leading the team charged with implementing the DATA Act, which is designed to standardize spending information in machine-readable formats to make it accessible to the public. “With no new funding,” Lebryk said, “we’ve tried to think it through creatively, to use technology as our friend. We’re not doing massive system changes, and it’s important that the data be owned by the agencies.”

This spring’s upgrade of USASpending.gov—to which some transparency advocates objected—was done with an eye on three types of users, Lebryk said: casual users in the general public; those who want analytic tools to drill deeply; and those who simply want the data and don’t care about the tools. The recent upgrade was intended to enhance the second group, he said. “We were trying for improvements in usability, but not trying to improve the quality of the data,” which is where the DATA Act will come in, he said.

One of Lebryk’s teammates at the Office of Management and Budget gave additional details on progress at the June 10 Data Act Summit sponsored by the Data Transparency Coalition.

Karen Lee, branch chief at OMB’s Office of Federal Financial Management, said the DATA Act already is, “changing the way government does its work, changing the way it interacts with non-federal partners” as it becomes institutionalized. She described pilot programs to reduce the burden of agency reporting. “There’s no one regulation or policy that is a magic bullet, as there are many sources for the burden,” Lee said. But the multi-agency implementation team is seeking to curb multiple requirements for supplying the same information, she said.
-Charles S. Clark, GovExec.com
READ MORE...

FedScoop Exclusive: HHS to lead 2-year DATA Act pilot

The Digital Accountability and Transparency Act is in full swing, with the Office of Management and Budget and the Treasury Department catching headlines in their path to issue a governmentwide set of financial data standards by May 2015. But quietly in the background, the Department of Health and Human Services is gearing up to lead a two-year pilot of the DATA Act to test how data standardization in a complex federal ecosystem works.

Section 5 of the DATA Act — a mandate for financial data transparency in conjunction with USAspending.gov — requires OMB to launch a pilot, and the office chose HHS to test the waters of the act’s massive and complex data standardization efforts. Beginning next May, a year after the act was signed into law, HHS will be the test dummy for the grant portion of the DATA Act to help OMB, the Treasury and the federal government as a whole better understand things like “the impact of data standardization across many different lines of business” and “where there are opportunities to eliminate unnecessary duplication of financial reporting,” Amy Haseltine, director of DATA Act Program Management Office and chief DATA Act officer with HHS, explained to FedScoop.

This two-year pilot of the act is by no means a walk in the park, though all agencies are required by May 2017 to report their financial statements in accordance with the new standards. But Haseltine thinks HHS will benefit greatly from its work. 

-Billy Mitchell, FedScoop.com 
READ MORE...

OMB to Alter Guidance for Reducing Improper Payments

Inspectors general are the “best friends” of program managers and the White House budget office when it comes to catching fraud and reducing agency improper payments, the deputy U.S. controller said on Wednesday.

Mark Reger, now in his third month as the No. 2 at the Office of Federal Financial Management, said his team is reworking  Circular A-123 guidance on controlling for financial integrity “to make it less prescriptive and to rely on the people on the ground,” particularly inspectors general.

Reger, a former Maryland State Treasury official, noted that the rate of bad payments has dropped steadily over the past four years, thanks in part to Congress’s enactment of the 2012 Credit Card Fraud Prevention Act and the 2012 Improper Payments Elimination and Recovery Act. “The most important tool is the education of agency enforcers in the field,” he said, praising the watchdogs for gathering better data, working together and sharing information. “I don’t know a single inspector general who isn’t thrilled to find additional money.”

The increasing use of data analytics has allowed progress in such areas as federal employee misuse of credit orthat it’s not okay to steal from federal government, it’s not sexy,” Reger said. purchasing cards, the deputy controller said. “The data is now generated back to the agencies every day,” he said. “Employees found to have committed fraud have had their cards cancelled, or been fired, or disciplined in some fashion.”

Coming changes to the financial controls circular will include requiring fewer reports and more-detailed categories of fraud, or “bucketing,” to distinguish, for example, between an unmerited payment and a claim lacking proper documentation, he said.

Reger urged IGs, program managers and vendors to report fraud to the Government Accountability Office’s fraud line at fraudnet@gao.net, and to peruse their own Medicare bills in search of bad charges.  “Please reinforce that it’s not okay to steal from federal government, it’s not sexy,” Reger said.

- Charles S. Clark, GovExec.com
READ MORE...

Massive inconsistencies continue to affect USASpending.gov data

Agencies have not been properly reporting their grants and loans to USASpending.gov, according to the Government Accountability Office. A probe of data on the website found that only 2-to-7 percent of awards listed were entirely consistent when checked against agencies records.

"Although agencies generally reported information for contracts to USASpending.gov, they did not properly report information on assistance awards, totaling nearly $619 billion," GAO said in its report it released Friday.

GAO said the most common data inconsistency were descriptions of an award's place of performance. The names of recipients are the most consistent between records and online. GAO could not determine how consistent other award records were because agencies' records were incomplete or inadequate.

The report said 10 percent of awards information could not be verified and a significant amount of information could not be verified about program source information and the state of performance.

Among the inconsistencies, GAO found that some online awards records did not have verifiable data from their issuing agencies. The Office of Management and Budget placed requirements on agencies to ensure their data has substantiated information and verifying documents, but GAO said the standards have not been effective.

Federal funding of the improperly reported awards totaled $619 billion. GAO recommended OMB issue guidance clarifying agencies' reporting requirements.

It also wants agencies to keep better records to verify information on USASpending.gov and wants an oversight process to regularly check consistency between the records.

GAO's report is not the first time USASpending.gov has come under fire. In 2013, OMB gave agencies a November 2014 deadline to assure that all information on the site is accurate.

- Ariel Levin-Waldman, FederalNewsRadio.com
READ MORE...

The Federal Government Is Shrinking—Literally

The federal government is shrinking—by 10.2 million square feet, to be precise. That’s how much agency office and warehouse space was cut in 2013 under President Obama’s management initiative know as “Freezing the Federal Footprint,” according to the White House.

Beth Cobert, deputy director for management at the Office of Management and Budget, announced the number on Thursday following an inventory at 24 agencies with chief financial officers that revealed “significant progress toward implementing” the three-year plans to reduce spending that then-Controller Danny Werfel called for in March 2013.

-Charles S. Clark, GovExec.com
READ MORE...

Government made $100B in improper payments

WASHINGTON (AP) -- By its own estimate, the government made about $100 billion in payments last year to people who may not have been entitled to receive them -- tax credits to families that didn't qualify, unemployment benefits to people who had jobs and medical payments for treatments that might not have been necessary.

Congressional investigators say the figure could be even higher.

The Obama administration has reduced the amount of improper payments since they peaked in 2010. Still, estimates from federal agencies show that some are wasting big money at a time when Congress is squeezing agency budgets and looking to save more.

Some improper payments are the result of fraud, while others are unintentional, caused by clerical errors or mistakes in awarding benefits without proper verification.

In 2013, federal agencies made $97 billion in overpayments, according to agency estimates. Underpayments totaled $9 billion.

The amount of improper payments has steadily dropped since 2010, when it peaked at $121 billion.

The Obama administration has stepped up efforts to measure improper payments, identify the cause and develop plans to reduce them, said Beth Cobert, deputy director of the White House budget office. 

Agencies recovered more than $22 billion in overpayments last year.

-Stephen Ohlemacher, Associated Press/FederalNewsRadio.com
READ MORE...

Shared service providers preparing for more, bigger agencies

Existing financial shared service providers will implement improvement plans starting this month to expand their capabilities and take on more customers.

The federal shared service providers (FSSP) improvement plan will expand the capability and capacity of providers to accommodate more and larger agencies, according to updated goals on Performance.gov.

This is just one step toward the Obama administration's cross-agency goal of expanding agency use of shared services and establishing clear guidance and evaluation for providers.

The Office of Management and Budget and the Department of the Treasury also plan to establish governmentwide principles for shared services governance by the end of August. There were no details on what the guidelines would include, but the report stated individual FSSPs and customers would implement their own principles to tailor to the broader regulations.

The guidelines would aid OMB and Treasury as they plan to expand their focus to the Human Resources Shared Services initiative and start the second rollout of those shared services in December.

OMB and Treasury already have succeeded in meeting past goals around financial management. The Performance.gov update stated they have reviewed financial management SSPs, established a governance group of CFOs and providers and sought input from industry on ways to avoid duplication within agency administration.

Now the Obama administration is monitoring agency transitions to shared services providers. Agency executive councils will finalize performance metrics and customer satisfaction surveys by November.

With these metrics, the administration will look at the number of migrations to shared services providers, the percentage of transitioned departments, customer satisfaction and the number of new services offered by providers. OMB and Treasury have not set target numbers for these metrics, but the report stated the two agencies will collect measures and surveys annually.

OMB and Treasury also outlined other goals in the report including the financial management agency advisory group would review their expansion in shared services to provide recommendations for further growth. The administration also plans to formally recognize OMB and Treasury as overseers for the shared services marketplace.

-Stephanie Wasko, FederalNewsRadio.com
READ MORE...

OMB and GSA developing unified measures to cut down on costs

The Office of Management Budget and the General Services Administration have created a plan to gather data and make progress toward cutting unnecessary spending and inefficiency.

Currently, OMB and GSA have trouble analyzing the efficiency of government agencies, something that makes agency cooperation difficult, according to a White House report released June 30.

OMB and GSA will create a unified data set from all agencies.

The plan revolves around agencies setting performance benchmarks, which the report expects to be completed by the end of July. The benchmarks, then, are assessed by OMB and GSA, which will compare the practices used by the most efficient agencies and share them with the others. Leadership teams from agencies then will meet with OMB and GSA to share their findings.

OMB and GSA are looking for efficiency indicators, measured in cost savings or reduced square footage of federal property, which can be traced back to benchmark related actions. OMB and GSA also are looking for increased service quality and shared services adoption among agencies.

Based on the findings, finance, human resources and IT working groups will come up with an action and implementation plan, which interagency management councils will analyze for effective strategies that could be shared. This all comprises the first phase of the plan. The second phase uses the results of the first to create a standard plan and metrics.

The benchmarks policy set by OMB and GSA is the latest in a series of actions implemented by the Obama administration to decrease waste, fraud and abuse. Since 2009, the administration has been trying to reform real estate policies and improper payments.

Under the Freeze the Footprint initiative, OMB required agencies to submit three-year Revised Real Property Cost Savings and Innovation Plans to more narrowly focus on how they can maintain their real estate footprint and include a prospective analysis of spending.

In 2010, agencies paid $125 billion in improper payments, whether by contractor fraud or paying more than $1 billion to dead people.

Congress passed a law requiring Treasury to create a "do not pay" list of fraudulent contractors and a tool to let death certificate data be shared more easily among agencies.

The improper payment rate has dropped to 3.54 percent in 2013 from 5.42 percent in 2009.

The Obama administration has set new cross-agency priority goals for managing government as part of its 2015 budget. Federal News Radio examines the eight areas identified by the White House in our special section 2014 Cross Agency Priority Goals.

-Ariel Levin-Waldmen, FederalNewsRadio.com
READ MORE...

Senate lawmakers to extend greater power to CIOs

Senate lawmakers will propose major changes to how federal chief information officers oversee IT investments, including giving them full budget authority and approval over all IT contracts.

In their version of the Federal IT Acquisition Reform Act (FITARA), Sens. Tom Carper (D-Del.) and Tom Coburn (R-Okla.), chairman and ranking member of the Homeland Security and Governmental Affairs Committee, respectively, will offer an amendment in the nature of a substitute for the House's version of FITARA at a committee markup Wednesday.

In documents obtained by Federal News Radio, the Senate's draft version of FITARA would require "the director of the Office of Management and Budget (OMB) to require in its annual IT capital planning guidance that the CIO of the agency (I) approve the agency's information technology budget request; (II) certify that IT investments are implementing incremental development as defined by OMB; and (III) work with the Chief Human Capital Officer to review all IT positions requested in the budget to ensure the needs of the agency are being met."

Additionally, the draft bill would give CIOs power to review and approve IT contracts or other agreements for technology products or services, and sanction any request to reprogram funds for IT.

The Senate's draft version, however, doesn't follow the House's lead in requiring only one person with the title CIO. But it does give the agency CIO the right to "approve the appointment of any other employee with the title of Chief Information Officer at the agency, or who functions in the capacity of Chief Information Offer, for any component organization within the agency."

The House passed its version of FITARA in May as part of the Defense Authorization bill.

-Jason Miller, FederalNewsRadio.com
READ MORE...

Who is Shaun Donovan?

Shaun Donovan has served in President Barack Obama's cabinet almost since day one, as secretary of the Department of Housing and Urban Development.

The man tapped May 22 to head the Office of Management and Budget has not had a very high profile compared with other department heads, but he has developed a reputation in the administration as a fixer on high-priority tasks.

While leading HUD, Donovan's work has included chairing the Hurricane Sandy Rebuilding Task Force and co-leading the cross-agency priority goal of reducing the number of homeless veterans.

If confirmed by the Senate, Donovan will succeed OMB director Sylvia Matthews Burwell, who was nominated to take over as secretary of the Department of Health and Human Services.

-Adam Mazmanian, FCW.com
READ MORE...

Treasury official calls for quick Data Act demos

The three-year schedule to implement the Digital Accountability and Transparency Act, a measure that puts federal financial data on a single, machine-readable standard and requires its publication to the public online, might be too ambitious, said Dick Gregg, fiscal assistant secretary of the Treasury and the executive in charge of implementing the law.

"It will be difficult and maybe impossible in some areas to hit all the timelines," Gregg said on May 20 at the Federal Financial Management Conference in Washington, D.C., before an audience of government accountants and financial managers who will be on the front lines of implementing the changes required under the Data Act.

The challenge is for Treasury and the Office of Management and Budget to come up with a standard for publishing financial data, then convert federal financial management systems to that standard. There was no money included in the law to finance the effort, but agencies will surely need some resources to implement changes.

"I'm not sure what the approach of OMB will be when agencies make requests," Gregg said. "There will be some costs. It's important to work together to figure out how to minimize the cost of doing this." One way is to leverage gains made in the Treasury's own internal goal of improving financial transparency through the management of the USASpending.gov website, which recently moved to Treasury from OMB as part of the fiscal 2014 budget.

The shift to a federal-first approach to agency financial management could help streamline the process, Gregg pointed out. "Shared services is a force multiplier," Gregg said, because consolidation of financial management at the four providers means that agencies will be able to outsource some of their compliance. "The sooner we can move more agencies into shared services, the easier it's going to be for them to implement the Data Act," Gregg said.

The financial management community will reap the benefits as well, Gregg said. The new emphasis on standardization means that chief financial officers can shift from systems implementation and operation to the more interesting and rewarding work of managing programs.

-Adam Mazmanian, FCW.com
READ MORE...

USDA joins the ranks of the financial shared services providers

Agencies will continue to have four approved federal shared services providers to buy financial management services from. The only difference is the Agriculture Department replaces the General Services Administration.

The Office of Management and Budget and the Treasury Department today announced they recertified the departments of Interior, Treasury and Transportation and added USDA to be the support pylons of its shared services initiative.

By adding USDA, OMB and Treasury partly solve concerns over a lack of competition among providers, because they all offered Oracle as their back-end software. USDA offers SAP's federal financials.

USDA in 2013 continued deploying its Financial Management Modernization Initiative (FMMI), a new financial system that replaces USDA's legacy financial system, according to OMB's January 2014report to Congress on the benefits of E-Government initiatives. "FMMI is based upon a commercial, off-the-shelf resource planning product. FMMI is an advanced, Web-based, financial management system that provides general accounting, funds management, and financial-reporting capabilities that has been deployed to 28 of USDA's 29 administrative organizations."

GSA's decision to get out of the financial management services is no real surprise. The agency said it was getting out of the human resources services last summer, and several government and industry sources said financial management wasn't far behind.

But by GSA not receiving OMB and Treasury's approval, it means one less software package will be available for agencies to choose from (it offered CGI's Momentum), and it's unclear what will happen to the people running the Federal Integrated Solutions Center's External Services Branch or its 44 internal and external financial management customers.

OMB and Treasury's approval of the four providers should kick off a series of decisions that will underlie the financial management share services effort.

-Jason Miller, FederalNewsRadio.com
READ MORE...

Obama to nominate long-time former fed to be OMB controller

President Barack Obama intends to nominate David Mader to be the controller of the Office of Management and Budget.

The White House announced the President's plans to tap Mader, a senior vice president for strategy and organization at Booz Allen Hamilton, to return to government. It was one of several management positions announced Thursday.

Mader would replace Danny Werfel, who served as controller of OMB for four years and left last fall to take over the IRS as acting commissioner.

The irony of Mader's potential nomination is he worked at the IRS for 32 years, rising to senior executive levels including acting deputy commissioner, acting deputy commissioner for modernization and chief information officer, assistant deputy commissioner and chief for management and finance before leaving government.

Since he retired in 2003, Mader worked at Booz Allen for most of his post government career.

Mader should be well known around OMB, which is one of his many Booz Allen clients. According to the company's website, Mader works with several agencies, including the Department of Treasury, Office of Personnel Management, the General Services Administration and the Government Accountability Office. He provides an assortment of consultant services, from organizational transformation to financial management to strategic community to performance management.

Mader's nomination is a bit of a departure for the White House in that it's choosing someone with decades of federal experience, though still from the ranks of a consultant. Typically, the administration has chosen senior OMB political appointees with limited or no real federal experience.

Bill to track every federal dollar headed to Obama’s desk

The House on Monday gave final congressional approval to a bipartisan bill that would require federal agencies to report all of their expenditures online in a single location, sending the measure to the White House for President Obama’s signature.

Both chambers of Congress passed the DATA Act unanimously this month, representing a rare showing of widespread agreement between Democrats and Republicans. Sens. Mark Warner (D-Va.) and Rob Portman (R-Ohio) sponsored the legislation.

Rep. Darrell Issa (R-Calif.), who sponsored a similar measure in 2011 with Rep. Elijah Cummings (D-Md.), described the DATA Act as “a win for good government, moving the federal bureaucracy into the digital age and setting the stage for real accountability.”

Transparency advocates have complained that federal agencies rarely make spending data readily available under the current system. The Data Transparency Coalition applauded the House vote on Monday, calling on Obama to sign the bill and commit the Office of Management and Budget to “pursue robust standards throughout federal financial, budget, grant and contract reporting.”

Comptroller General Gene Dodaro, who heads the Government Accountability Office, said during testimony this month that the DATA Act is the “single biggest thing” lawmakers could do to identify wasteful federal spending.

-Josh Hicks, WashingtonPost.com
READ MORE...