OMB UPDATEFY 2007 Priorities

Danny WerfelDeputy Controller

Office of Federal Financial ManagementOffice of Management and Budget

May 8, 2007

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“Much as we love the President, if Congress, in its

omnipotence over appropriations, passed a law that

garbage should be put on the White House steps, it

would be our regrettable duty, as a bureau, in an

impartial, non-political and nonpartisan way, to advise

the Executive and Congress on how the largest amount

of garbage could be spread in the most inexpensive

and economical manner.”

Charles Dawes

The First Budget Director

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“For I detest this life ... as one who must be

used to upset the status quo, I am not the

logical man to continue the operation of the

Budget Bureau.”

Charles Dawes (on leaving his post as Budget Director)

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No repeat auditor WeaknessesClean Audit Opinion FFMIA

Compliant

No Repeat FMFIA Section 4 Weaknesses

No Chronic or Significant ADA

Violations

Meets Reporting Deadlines

No Material

Non-Compliances

No Repeat FMFIA Section 2 Weaknesses

Uses Financial Information to Drive Results in Key Areas

Expands Routine Data Use

Com

plia

nce

Res

ults

What the Initiative Does:

Ensures managers have accurate and timely financial information for decision making.

Improving Financial Performance

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PMA Financial-Related Outcome Measures, Results, & Performance Targets

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How We Support the Initiative:

Improving Financial Performance

REFORM AGENDA

CORE ACTIVITIES

PMA

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The Framework

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Eliminating Improper Payments

Strategic Goal Reduce the government-wide improper payment dollar

amount and rate

Interim Objectives Measurement for all programs Root causes and corrective actions

FY 2007 Priority Actions• Measurement plans in place for FY 2008 • State partnership project to enhance program integrity

efforts• Expand recovery auditing to ensure full participation for

all mandated agencies

Imp

rop

er P

aym

ents

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Right-sizing Real Property

Strategic Goal Right-size the Federal Real Property Inventory

Interim Objectives Inventory /performance metrics/asset management

plans

Dispose of unneeded Federal real property

FY 2007 Priority Actions

• Enact the President’s legislative reform proposal• Facilitate inter- and intra-agency coordination on real

property • Ensure agencies use performance data in their

decision-making process

Rea

l P

rop

erty

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Improving the U.S. Financial ReportU

.S.

Fin

anci

al R

epo

rt

Strategic Goal Receive a “clean” audit opinion on the Report’s financial statements

Interim Objectives Downgrade intra-governmental transactions MWs

Achieve an opinion on the Department of Defense’s balance sheet

Improvements in Agency-Treasury reporting

FY 2007 Priority Actions

Intra-governmental transactions

Implement Dispute Resolution Committee

Develop performance metric,

Initiate IPAC system improvements

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The Financial Management Line of Business (FMLoB)

FM

Lo

B

Strategic Goal Implement government-wide solutions that yield lower cost and

risk results in financial management activities

Interim Objectives• Transparency: Migration planning guidance & common

performance metrics. • Standardization: Common accounting code & standard business

processes

FY 2007 Priority Actions• Finalize common accounting code• Define additional standard business processes• Finalize information technology measures and pilot collection• Address FMLoB policy questions• Define standard interfaces to core financial systems

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Strengthening Internal Controls

Strategic Goal Improve effectiveness of internal control over financial reporting Interim Objectives Use A-123 assessment results to improve MW corrective action plans

Obtain consensus between management, OIG, and OMB on MW corrective action plans

Enhance internal control based on lessons learned and best practices

FY 2007 Priority Actions Lessons learned forums

Update OMB guidance

Require agencies to update corrective action plans

Inte

rnal

Co

ntr

ols

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Strengthening Grants Management

Strategic Goals Increase transparency in grant activities Lower administrative costs Simplify application and reporting

Interim Objectives Make some award data available on a searchable public website Begin migrating major grant-making agencies to the GMLOB consortia Complete required activities under P.L. 106-107, Grants Streamlining

FY 2007 Priority Actions Complete action items for FFATA implementation Complete P.L. 106-107 activities

Gra

nts

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Strengthening Social Insurance Reporting

Strategic Goal Disclosure of comprehensive social insurance (SI) and sustainability data

Interim Objectives Receive a “clean” opinion on the FR Statement of Social Insurance (SOSI)

Develop a “Statement of Fiscal Sustainability” and include it as a principal statement within the FR

FY07 Priorities

Solicit comments on the FASAB SI Preliminary Views document

Launch FASAB Sustainability Task Force

So

cial

In

sura

nce

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Bringing the framework together…

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Questions???