|Program Goal: To administer the student aid programs, including efforts to modernize student aid delivery and management systems, improve service to students and other student aid program participants, reduce the cost of student aid administration, and improve accountability and program integrity.|
|Objective 1 of 1: Student Aid Administration|
|Indicator 1.1 of 2: Reduce FSA Business Process Cost|
Source: FSA Activity-Based Cost Model (ABC)
Next Data Available: January 2007
Numerous internal controls
Explanation: In FY 2004, FSA defined and validated its Activity-Based Costing (ABC) model to measure the success of its cost-reduction strategies. In FY 2005, FSA continued to enhance the ABC model to yield improved cost data and in FY 2006 will develop baseline reduction percentages. The FSA Activity-Based Costing Model was used to produce unit cost data for FY2003 and FY2004. FY2005 unit cost data will be finalized by the second quarter of FY2006. The FY 2006 target for measures a through d is to establish the baselines (BL). For measure (a), the FY 2008 target is BL minus 20%; 2010 target is BL minus 25%. For measure (b), the FY 2008 target is BL minus 10%; 2010 target is BL minus 15%. For measure (c), the FY 2008 target is BL minus 12%; 2010 target is BL minus 12%. For measure (d), the FY 2008 target is BL minus 14%; 2010 target is BL minus 14%.
|Indicator 1.2 of 2: Eliminate improper payments|
Source: President's Management Agenda Scorecard.
Next Data Available: March 2006
Explanation: In the first quarter of FY 2005, OMB introduced a new President's Management Agenda (PMA) initiative, Eliminating Improper Payments, to support agency efforts to meet the Improper Payments Information Act of 2002 (IPIA) reporting requirements. This initiative makes it easier for agencies to track the progress of activities aimed at identifying, reporting on and reducing improper payments. At the same time, it provides for more comprehensive agency accountability to OMB through quarterly PMA scorecards. As such, Federal Student Aid is working closely with OMB and the Department to develop an action plan designed to (a) reduce the amount of improper payments in our programs, (b) lower the risk of improper payments in our programs and (c) improve the accuracy of our improper payment estimates. In FY 2005, FSA received red and the FY 2006 target is yellow and the FY 2010 target is green.
In the table: 1 = Red; 2 = Yellow; 3 = Green
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