About the Financial Management Service

Strategic Plan For Fiscal Years 2003-2008

Appendices to the FMS Strategic Plan

• Back to Plan

• A. FMS Long Range Strategic Performance Goals/Measures
• B. FMS' Strategic Management Process
• C. Summary table depicting the linkage between the Treasury goals and objectives and FMS' goals, objectives and performance goals.
• D. Coordination on Cross-Cutting Issues
• E. Use of Program Evaluations to Develop Strategic Plan
• F. Data Validation
• G. Management Challenges--Index of Goals and Strategies Related to FMS' GAO-and IG-Identified Management Challenges
• H. Security and Continuity of Operations
• I. The Human Capital Challenge
• J. Consultations and Stakeholders

Appendix A. FMS' Long Range Strategic Performance Goals/Measures

As part of FMS’ strategic direction, we have identified several long-term goals/measures and have developed associated targets for each goal/measure. This effort establishes outyear targets and provides additional guidance/direction to the entire organization. These long-term goals/measures support major mission activities. As we continue through the period covered by this plan, these goals/measures may be revised and/or changed as a result of business environment changes. The targets listed in this appendix are set for 2010.

Payments

Ninety percent of all payments will be made electronically.

Collections

Ninety percent of the dollar amount of all collections will be made electronically Sixty percent of all collection transactions will be made electronically.

Debt Collection

There will be $3.5 billion dollars collected annually from delinquent debt referrals.

Governmentwide Accounting and Reporting

Federal Program Agencies will have simplified and streamlined access to FMS' central (governmentwide) accounting information through a single access point.

All central (governmentwide) accounting information will be available within twenty-four hours/one business day of the transaction.

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Appendix B. FMS' Strategic Management Process

Planning, Budgeting and Reporting

FMS’ strategic management process reflects the vision of the Commissioner and the FMS senior management team and engages the executive level planning team in a continuous planning effort. This continuous effort focuses on evaluating the nature of the business; articulating a futuristic vision for how FMS business will be conducted; defining long-term goals; developing realistic objectives and strategies to reach those goals; aligning those goals and objectives with our budget and with Department of the Treasury's Strategic Plan; establishing performance measures; and allocating resources appropriately to carry out the goals, objectives and strategies. This effort embodies inclusiveness and participation from FMS managers, employees, customers and stakeholders. Accountability for the strategic plan is twofold: 1) tactical or action level plans that are in alignment with the strategic plan; and 2) Senior Executive Service Performance Plans.

Set strategic goals and priorities for the long-term. FMS’ Strategic Plan sets goals, objectives and strategies to guide the entire organization. It also serves as the baseline for the development of tactical or action level plans, performance goals, annual plans, and budget initiatives. As with all other government agencies, FMS operates in an environment (e.g., political, economic, social) that is constantly changing. These changes may affect FMS’ ability to meet its goals and objectives. As a result, FMS’ Strategic Plan includes descriptions of the external factors that may affect our ability to achieve our goals.

Set annual performance targets. FMS has formatted its budget submission to serve as both a budget request and as the Government Performance and Results Act (GPRA) performance plan. The performance goals included in the budget submission drive program decision-making and serve to justify the resource request. We derive the performance goals and targets presented in the budget justification from the strategic goals presented in the strategic plan.

Manage and budget to achieve those targets. FMS links program results and budget activities to fulfill GPRA requirements. FMS has four budget activities that link functions to FMS? current performance measures and our strategic goals: Payments, Collections, Debt Collection, and Governmentwide Accounting and Reporting. The budget activities represent the major activities that support the FMS mission.

Systematically report on annual performance. FMS’ annual budget submission also includes the annual performance report required by GPRA. Annually, we compare actual performance with the estimated targets, and we provide explanations for the differences between planned and actual target levels.

Linking General Goals and Objectives to Annual Performance Goals

The FMS implementation of GPRA links the FMS Strategic Plan, the Annual Performance Plans and Reports, and the budget. Our performance goals in the budget/Annual Plans and Reports are identical to our strategic goals and objectives in the strategic plan.

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Appendix C. Summary table depicting the linkage between the Treasury goals and objectives and FMS' goals, objectives and performance goals. ¹

^1. Our performance goals in the Annual Performance Plans and Reports are identical to our strategic goals presented here and in the strategic plan. The Annual Performance Plan and Reports include measurable, outcome-oriented performance goals that clearly describe and relate how goal/objective achievement will be measured.

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Appendix D. Coordination on Cross-Cutting Issues

This table highlights key partners that FMS must coordinate with to achieve its strategic goals:

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Appendix E. Use of Program Evaluations to Develop Strategic Plan

A number of ongoing and one-time program evaluations/audits have influenced FMS goals, objectives and strategies. FMS accomplishes program evaluations through a variety of sources: internal reviews conducted by individual program offices; reviews and audits performed by Treasury’s Office of the Inspector General (OIG) and reviews conducted by the General Accounting Office (GAO). The more significant evaluations/audits used to develop this strategic plan include:

During the period 2000-2005, program evaluations and audits in areas such as Governmentwide Accounting, Debt Collection, Payments, Collections, Electronic Commerce and Human Resources have been proposed by the OIG, individual program offices, and others. Proposed evaluations or audits in these areas have the potential to assess the effectiveness and impact of various FMS strategic goals, objectives, strategies and programs.

Additionally, FMS continuously reviews and evaluates its programs. Included in the review process are periodic and spot reviews related to lockbox operations, certification and accreditation of all information technology systems and management annual assurances in compliance with the Federal Financial Integrity Act and the Federal Financial Management Improvement Act.

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Appendix F. Data Validation

FMS links program results and budget activities to fulfill the Government Performance and Results Act (GPRA) requirements. FMS has four budget activities (business lines) that link functions to FMS’ current performance measures and our strategic goals. For each performance measure presented in FMS’ Annual Performance Plans and Reports, a description of the systems and internal controls used for data verification and validation is included. For fiscal year 2003, the data from all the relevant FMS systems is rated at “Reasonable Accuracy.” This means that the program managers have determined that the information from the systems is sufficiently accurate for program management and performance reporting purposes.

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Appendix G. Management Challenges--Index of Goals and Strategies Related to FMS' GAO-and IG-Identified Management Challenges

I. Management Challenge: Strengthen FMS' Computer Security Controls (GAO 03-109)

Issue: FMS' entitywide security control structure has yet to fully address the significant risks associated with its current and evolving computing environment. As FMS provides users greater and easier access to larger amounts of data and system resources, well-designed and effective computer security controls are essential if FMS’s operations and computer resources are to be properly protected.

Related Goal: Cross-cutting throughout all goals.

Actions:

To ensure an effective entity-wide Information Technology (IT) Security Program, FMS has:

1. Revised and published information technology security policies and standards and trained employees on the new policies.

2. Appointed a senior executive to oversee audit findings, evaluate its entitywide security program using the Federal IT Security Assessment Framework, and implement a program plan and milestones to achieve a security program effectiveness of Level 5 by fiscal year 2004.

3. Addressed the resolution of audit findings and recommendations through a comprehensive corrective action plan that includes detailed milestones. FMS has completed all 55 corrective actions.

II. Management Challenge: Ability to Prepare Reliable Financial Statements (GAO 03-109)

Issue: Federal agencies have been cited as having problems related to fundamental record keeping, incomplete documentation, and weak internal controls which prevent the government from accurately reporting a large portion of assets, liabilities, and cost. GAO reaffirmed these deficiencies in their audit of the consolidated fiscal year 2002 Financial Report of the United States government.

Related Goal: Facilitate the achievement of a clean audit opinion on the Financial Report of the U.S. Government through FMS? internal operations and support to government agencies.

Related Objectives:

To strengthen federal financial management by improving the quality, timeliness, accuracy, delivery and integrity of government financial information and reporting.

To increase program efficiencies and reduce reporting and operational burdens by converting paper-based processes to electronic processes and by using new technologies.

To facilitate the development of a knowledgeable federal financial community.

Actions:

In fiscal year 2003, FMS will finalize requirements and obtain contractual assistance in its effort to rebuild the processes it uses to prepare the Financial Report of the U.S. Government. The new process will be used in preparing thefiscal year 2004 financial statements, scheduled for publication in December 2004. When implemented, the new process and business rules will mitigate the material weakness in the current process.

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Appendix H. Security and Continuity of Operations

FMS is well equipped to ensure uninterrupted service in the event of a disaster, natural or otherwise. A back-up data center has recently been built out at FMS’ Kansas City, MO, Financial Center. This center provides full recovery capability for the bureau’s payments applications and serves as a backup for the Bureau of the Public Debt’s systems. The Federal Reserve and a commercial recovery site provide support for all other applications and all applications run by the Federal Reserve are fully backed up. In addition, IBM provides back up for our non-payment systems.

The physical security of FMS' facilities, as well as the security of its employees, has also been enhanced since September 11, 2001. FMS has implemented the following security measures:

• Increased the level of physical security at its facilities by increasing guard patrol, providing additional structural security, conducting vulnerability reviews, and maintaining emergency supplies
• Implemented Emergency Planning, with an alert cast system, Emergency Information Cards, a 1- 800 phone number, Continuity of Operations (COOP)/evacuation testing, business continuity planning and threat level descriptions and actions
• Improved the mechanisms for emergency communications, including purchasing a satellite phone system, using a standardized cellular phone system with paging throughout FMS, and installing satellite and cable TV

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Appendix I. The Human Capital Challenge

Given FMS’ current and anticipated future mission, our core occupations will be changing dramatically away from routine operations toward more development of customer-focused systems and value-added analysis of critical financial data. Also, as reflected in the goals and objectives delineated elsewhere in this Strategic Plan, technological change is heavily impacting the occupational skill sets needed to meet these objectives. From a strategic human capital perspective, the challenge is both quantitative (being able to quickly and efficiently hire a sufficient number of skilled employees) and qualitative (developing and retaining current employees).

To help meet this workforce challenge, FMS has established a Human Capital Management Council to serve as a collection point for workforce information, and has prepared a Human Capital Plan describing FMS’ human capital goals, objectives, investments and strategies. A human capital action plan links the Human Capital Plan to specific human capital initiatives. Some of the major areas of focus include:

Future Skill Needs
Our core occupations have traditionally included Accountants, Computer Specialists, Financial Program Specialists, and now includes the emerging inter-disciplinary occupation of Project Manager. These occupations require strong occupationally specific technical skills: understanding of accounting principles, knowledge of financial concepts, a variety of computer skills in various specialties, and strong organizational and management skills. These conditions have produced a profound occupational skill gap, so that we foresee our core occupations dramatically changing, as well as the way we do business (e-commerce, web-based transactions, and information/data flow). Therefore, our challenge is to recruit and retain employees capable of leading these evolutionary changes. To meet this challenge, FMS’ Human Capital Management Council has embarked on an effort to identify organizational and occupational competencies for our core and critical occupations. These competencies will provide a skill-based framework for the recruitment, development, and evaluation of our future workforce.

Workforce/Succession Planning
With respect to succession planning, an overarching consideration is the organizational culture that exists within the agency. Within FMS, the executive management team (Commissioner, Deputy Commissioner, and Assistant Commissioners) considers succession planning an integral part of their responsibilities, and these considerations permeate much of the decision process relative to staffing and development. There are specific recruitment and developmental programs that are components of a progressive succession planning approach; however, a key factor is that most of the Assistant Commissioners have worked in a variety of the program areas. As a result, decisions concerning the development and placement of individuals into key positions are made with a view toward FMS-wide needs as opposed to a more parochial view. Recently, new competitive programs have been established to identify and develop new supervisors and managers, SES candidates, and certified project managers. Each of these areas has a curriculum of required formal training and provides structured developmental experiences in the workplace.

Recruitment Programs
As stated previously, FMS is facing both a quantitative and qualitative challenge in attracting and retaining a highly skilled workforce. Based upon current and future demographic projections and the need to be able to effectively compete for skilled employees, FMS has determined to emphasize entry-level professional hires and the relatively rapid movement of these hires into positions of significant responsibility.

These workforce trends and projections, along with FMS’ strategic approach to recruitment, have been captured in a recruitment plan that describes the variety of efforts underway to hire the new generation of employees. The plan focuses on available tools that can be used to attract the most qualified applicants, while at the same time expanding the recruitment pool to attract a more expansive and diverse group of applicants. For entry-level positions, FMS has increased its visibility at local colleges and universities and expanded the number of schools being regularly visited. We make extensive use of the Federal Career Intern Program, have updated and re-issued brochures and fact sheets, established a Delegated Examining Unit, and established on-going relations with a variety of Black and Hispanic professional and student organizations. FMS has also implemented several new recruitment and retention flexibilities, including recruitment bonuses, retention allowances, and repayment of student loans. This is in addition to ongoing programs to enhance the attractiveness of FMS as a place of employment, including flexible work hours and flexiplace.

Training and Development

FMS is fully committed to continuing and ongoing training of all employees. FMS has developed and is utilizing a unique and planned system of training and development available for employees at all levels. These programs include not only Service-wide Training, available to all employees, which provides courses in computer skills, administration and management, and career decisional subjects. Also included is a full array of professional development programs encompassing a Management Preparatory Development Program (MPD), an Incumbent Manager Development Program (IMD), and a SES Candidate Program. Having identified Project Manager as an emerging critical inter-disciplinary occupation, FMS has developed and put in place a Project Management Training (PMT) curriculum designed to develop highly trained and certified project managers. FMS has also offered all employees five full days of paid training per year (budget permitting) and has reallocated funds to support a higher degree of technical and professional training for employees who are not in a designated competitive program.

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Appendix J. Consultations and Stakeholders

This Strategic Plan was developed in accordance with the provisions of the GPRA and OMB Circular A-11. We have shared our initial draft plan with the Department and OMB. Their views and comments are reflected in this draft. We have sent letters to various Congressional Committees, federal program agencies, and the National Treasury Employees Union requesting their review of and comments about our draft plan; and made the plan available at the FMS web site at http://fms.treas.gov/strategicplan/updatedraft2003.html Also, the plan was developed and prepared in its entirety by FMS managers and employees.

Our consultation efforts are summarized below: