September 13, 1999

Ms. Deidre A. Lee
Acting Deputy Director, Management
Office of Management and Budget
Old Executive Office Building, Rm 349
Washington, DC 20503

Dear Ms. Lee:

I am pleased to submit the Department of the Interior's 1999 Financial Management Status Report and Strategic Plan in support of the Chief Financial Officers (CFO) Act of 1990. This plan summarizes the significant accomplishments achieved in fiscal year 1999 and outlines an aggressive agenda for the continued improvement of financial management within the Department over the next five years.

During 1999, the Department continued to advance the three management goals that were introduced in last year's report. These management goals are: (1) to ensure that the Department is accountable to the public in the use of Federal resources provided by Congress; (2) to build a diverse Department that reflects the strength and creativity of all America's people; and (3) to create a quality workplace that attracts and retains the brightest workforce — a workforce that will accomplish Interior's mission of stewardship, customer service, and economic development with integrity and vigor. These three goals are an integral part of this financial management strategic plan. In addition, the plan is consistent with the goals, strategies, and initiatives described in the June 1999 Federal Financial Management Status Report and Five-Year Plan, issued jointly by the Office of Management and Budget and the governmentwide Chief Financial Officers Council.

Over the past several years, we have made significant progress in improving accountability and financial management by streamlining organizations, reengineering business processes, improving customer service, and using technology to improve the efficiency and the delivery of financial information. We are proud to report that for fiscal year 1998, Interior received its second unqualified audit opinion from the Office pf Inspector General on the Department's consolidated financial statements. In addition, seven of the eight audited Interior bureaus received unqualified audit opinions on their respective financial statements. While we are pleased with our progress to date, we are very cognizant of the need to further enhance and improve our operations and program performance. This plan lays the foundation to continue our progress in the future.

If you have any questions or would like additional clarification about the contents of this plan, please do not hesitate to call me on (202) 208-4203.

Sincerely,

John Berry

Assistant Secretary
Policy, Management and Budget and
Chief Financial Officer

Enclosure