LEGEND
= Met
= Not Met
= No Data Available
= FY 2000
D = Deferred
P = Progress

FY 1999 Performance Report
Appendices

Forward | Back | Table of Contents | OPM Home Page

U.S. Office of Personnel Management

Appendix K
Office of the Chief Financial Officer (OCFO)

FY 1999 Performance Report
Goal & Performance Indicators Checklist

OPM Strategic Goal V
Establish OPM as a leader in creating and maintaining a sound, diverse and cooperative work environment.

OCFO Goal 1

P 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.

System Accounting Errors, 3%

The financial system/payment system (Checkwriter) experienced a catastrophic failure at the end of FY 1998 which resulted in 16 subfunds being out-of-balance in 81 general ledger accounts for FY 1999, which began October 1, 1998. As of September 30, 1999 (end of FY 1999) all of the subfunds and general ledger accounts that affect the Trial Balance are in balance. In addition, the Cumulative Error Report had a total of 10,267 errors that amounted to over $9.7 million at the end of FY 1998. As of September 30, 1999, the total is 289 (reduction of over 97%) and amounts to $ 403.7 thousand (reduction of about 96%). The total uncorrected errors count is less than 1% versus the goal of 3%.

Timeliness of Payments, 97%

Prompt pay results through September 30, 1999 are 85.6% on time based on total vouchers for payment of 13,714 and 90.7% on a total voucher amount of $69.8 million. The financial system and payment system (Checkwriter) experienced a catastrophic failure at the end of FY 1998 which precluded automated payment processing for over two months in FY 1999. Manual processing and data warehousing were used to pay the high value and small business vouchers. Although the system recovery was completed in FY 1999, it was not soon enough to allow us to achieve our goal of 97% for timeliness by the end of FY 1999. However, no discounts were lost. In addition, we pay our Investigations Service's contractor on a daily basis approximately $250-300 thousand for cases. Post recovery of the system, we maintained an on-time rate of over 97% for these performance-based payments which amounted to over $72 million by September 30, 1999.

P Accounts Receivable Delinquent, 5%

The goal relates only to Revolving Fund new accounts receivable. We established the 5% delinquency rate as a "stretch goal" for FY 1999, but achieved 7.1%. However, during FY 1999, we collected over $12 million and resolved over $2 million in accounts receivable that have been delinquent for many years. In addition, a comprehensive analysis of the collectibility of all these accounts and the appropriate level of "bad debt" allowance was completed for all the Revolving Fund programs. The appropriate allowance has been approved by each program director and has been established for all the programs/subfunds. The expenses have been recorded properly in the current year/prior year general ledger accounts. Also, we continued to team with the Department of Defense and Postal Service to resolve their long-standing delinquent accounts.

Reconcile Cash Accounts within 30 days

FY 1998 and FY 1999 reconciled within 30 days for the Trust Funds and Administrative Accounts.

Unidentified Hours in the Work Reporting System (uncorrected), 2%

The total uncorrected unidentified hours are only .4% of the total hours reported as of September 30, 1999, i.e., about 23.1 thousand of 5.8 million total hours.

P Material weaknesses are eliminated.

Accounts receivable and cash management have been completed. The material weaknesses noted in the prior year audit reports for Trust Funds are closed or substantially resolved and have been downgraded to reportable conditions. Documentation of the policies, processes and procedures for RIS and the OCFO are proceeding; however, because the staff and programming support had been working on Y2K compliance testing, system recovery, and other higher priorities, some of the completion dates were changed. Budgetary accounting is planned for completion by July 2000 and accounts payable is planned for completion by January 2000. Several of the specific initiatives in place to reconcile and clean up data in the material accounts and line items have been completed and the others are in progress. The last item, reconcile vendor file data, is also scheduled for July 2000.

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

Reversed a ten year trend in the Revolving Fund (RF) of an increasing deficit condition in retained earnings. In FY 1999, the RF remained above break even in current operations but incurred an extraordinary event adjustment to prior years based on a cash reconciliation to Treasury's balance. Offsetting adjustments are expected based on continuing research in FY 2000. Substantial decreases in prices have been issued to agency customers in both of the larger programs: Investigations Service and Training Management Assistance. Continued monthly reviews and reporting for S&E and Trust Funds as well as formal quarterly reviews.

Improved Inspector General, Independent Public Accountant (IPA) and GAO audit results.

For FY 1999 financial statements, OPM received unqualified audit opinions from the Independent Public Accountant (IPA) for the Retirement Fund, FEHB Fund, and Life Insurance Fund and found no material weaknesses. Although the OIG issued a disclaimer of opinion on both the Revolving Fund and S&E Account, it noted several improvements from the prior year in addressing material weaknesses.

OCFO Goal 2

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

Achieved full Year 2000 compliance in all financial systems.

Dedicated a special Y2K region for compliance testing. Completed all testing via documented scripts and iterative processing 6 months ahead of the March 1999 deadline. Completed the independent verification and validation via contract in FY 1999 which independently confirmed that all the financial systems are Y2K compliant. (We note that currently all financial systems are Year 2000 (Y2K) compliant.)

Comply with GPRA.

Strategic Plan and the annual performance plans are in compliance with GPRA. We submitted the first fully integrated budget, congressional justification and performance plan in FY 1999 and did so again for FY 2000. We will submit them for FY 2001 based on OPM's revised Strategic Plan.

Actions taken in response to expressed customer needs.

Based on the availability of staff and programmer support, products and services were provided per customers' requests. In addition, an initial review/study of the financial system was conducted with the users in the Spring. An action plan was developed to meet our customers' needs. In addition, a contract was awarded for a comprehensive requirements analysis and gap analysis as well as an option for an alternatives analysis for the agency's administrative financial systems.

Achieved timeliness of at least 97% for payments and at least 95% for collections.

See comments above under OCFO Goal 1 for Timeliness of Payments and Accounts Receivable Delinquency.

Improved responsiveness and on-time compliance for financial reporting to OMB and the Department of the Treasury.

FMFIA assessment and report to the President and all the financial statements were submitted on time. Cash (224) reporting as well as tax reporting via FEDTAX II were on time. SF 133 reports for the 2nd and 3rd quarters of FY 1999 were on time.

P Documented and implemented policies, processes, and procedures.

See comments regarding material weaknesses under OCFO Goal 1 above.

P Received positive feedback from the Quality Improvement Teams' (QIT) ongoing reviews of the financial processing functions and results.

QIT's transaction codes project provided the foundation for further contractor work in progress to review all transaction codes (TC). Implemented several cash-related TCs by September 1999, e.g., payment and collection affecting as well as those required to process purchase/travel credit card transactions via electronic data interchange (EDI).

OTHER INITIATIVES

DOD Investigations Backlog. In June, 1999 the Office of the Assistant Secretary of Defense requested OPM's Investigations Service help to eliminate a backlog of reinvestigations and other cases within the Department of Defense (DOD). DOD's workload projections, characterized as conservative, could result in OPM receiving more than 350 thousand requests for investigative service between FY 1999 and FY 2004. This initiative will have a substantial impact on the workload, financial systems, the systems' interfaces and data storage. OCFO teamed with the Investigations Service and RIS programming staff to address this impact.

Payroll Functional Review. In early Spring, the CFO requested OIG team with OCFO to review comprehensively the payroll functions and to ensure effective internal controls, reengineer processes and procedures, and to document these in conjunction with the contracted staff from the Department of Treasury. The first draft of the documented policies, processes and procedures has been completed. We expect to complete this documentation in January 2000.

Accounting Data Archiving. Developed and implemented an accounting data archiving method to reduce the database of over 70+ million records so as to decrease the "run time" required to generate financial reports. Results: 50-65% reduction in "run time" to generate year-end and daily reports.