2003 AABPA Spring Symposium

May 2 , 2003Capital Hilton Hotel

Washington, DC

Don McCrory, DCFO, NSF

• Independent Agency• Supports basic research and

education ($4.5 billion)• Uses electronic grants

mechanisms• Technology focused• National Science Board (audit

committee)

A word about NSF…

Financial Management Tools for

“Getting to Green”

Secrets of Success for Financial Management

•Have a core financial operating strategy •It’s a “commitment” not a process.•Embrace E-Government. You can’t do it without systems. Period. •Hire good people with creative thoughts.•Accept risk and return. •Set a schedule to “fix” audit findings

NSF Financial System: Automated, integrated, and timely centralized reporting

- 1975: NSF’s first automated finance

system (Honeywell) (FAS)– 1983: moved FAS to HP – 1985 – 1990 : PC on every desk, local area

networks, email, internet access– 1993: updated FAS to IBM Mainframe– 1998: Implement Enterprise Information System– 2001: Updated FAS to Client Server (18 months

and on-budget)

Planning: Coordinate a comprehensive audit plan with management, the inspector general, and the independent public accountant

• Effective Planning Requires:• Consultation with OIG• Agreement with OIG on Timeline Deliverables• Agreement with OMB (RMO and OFFM) on

Timeline and Deliverables• Monthly Discussion of Timetables at ACC

Meeting• Submission to OMB of Performance and

Accountability Report (End Product)

Communicating: CFO/IG direct involvement to keep the process moving

• Three Part Working Group Meetings to Handle Detail Issues (OIG, KPMG, and MGMT)

• OIG Submits Audit Findings as Early as Possible, Even for the Current Fiscal Year, to Provide Management Time to Address /Rectify Issues, where Appropriate

• Joint Oversight Visits to Grantees

Inform the decision-makers

• EIS Integrated Budget and Performance Reporting– Ongoing– Revisions– Model for Integrating Budget and

Performance (examples)•Dwell Time•Award and Size/Duration

Audit Committees: NSF has one, and its role is significant.

• Established in Late 1997, Revised in 2000

• Monthly Meetings Throughout the Year Involving All Stakeholders

• Incorporates All Effected Parties, i.e. CFO, CIO, IG, Auditors, General Counsel and etc.

NSF Audit process (Timely)

• FY 2003 Accelerated Plans—– NSF/OIG Joint Memo to OMB Dated

April 24, 2003 Covered:• Preliminary Performance and Accountability Report

to KPMG—August 25, 2003 (3rd qtr results)• Close NSF’s Books — October 17, 2003• Final Performance Measures in MD&A to KPMG –

October 27, 2003• Final Audit Report issued by KPMG - November 14,

2003• Final GPRA Performance and Accountability Report

—sent to OMB -November 17, 2003 (47 days after FY end)

Meeting the Challenges of Accelerated Reporting

• Ending General Ledger Balances warehoused into an Access database outside of our main financial system.

• Accrual / Adjusting entries posted in this Access database to generate Adjusted Ending Balances.

• Adjusted Ending Balances closed utilizing an automated closing process (i.e., soft-close).

• Financial Statements automatically generated utilizing crosswalk specifications.

This process enables NSF to create interim financial statements efficiently without interfering with normal operations.

National Science Foundation“WHERE DISCOVERIES BEGIN”

DMcCrory@nsf.gov(703) 292 - 8280

FY 2002 Performance Highlights

http://www.nsf.gov/od/gpra/start.htm