Archived:Objective 4.6. Management of our programs and services ensures financial integrity.

A r c h i v e d I n f o r m a t i o n

FY 1999 Annual Plan - Volume 1. Objective Performance Plans and Data Quality - February 27, 1998

Objective 4.6. Management of our programs and services ensures financial integrity.

Context: The Department must be committed to carrying out the mandates of The Chief Financial Officers Act of 1990 and the Federal Financial Management Improvement Act of 1996. According to these laws and regulations there must be developed an integrated, sound accounting and financial management system. A measure of financial integrity is a clean audit opinion on annual financial statements. In addition to financial management, financial integrity requires an effective contracts and purchasing system to support mission critical departmental and program office objectives.

Key strategies for FY 1999

Centralized core data.
- Provide timely and reliable information to program and support offices to help them manage their responsibilities by completing the implementation of a new central automated processing Education Central Automated Processing System (EDCAPS).
- Continue to provide training of staff in core financial management competencies.
- Improve recipients accountability and reporting through the use of EDCAPS.
- The $7.3 million request for the new Education Department Central Automated Processing System (EDCAPS) will support installation and integration of final system components, training of Department staff and enhancements to the basic structure of the system.
Financial integrity.
- Improve Loan Loss Estimates
- Reduce the number of material weaknesses and material non-conformances to zero
Performance-based contracting.
- Control costs by implementing performance-based contracting and by repatriating work contracted out when effective and possible within staff ceilings.
- Review every contract for the maximum use of effective performance objectives and measures to assess the value provided.
- Continue to provide training to all ED procurement and technical personnel in their capability to productively manage the performance of contractors.

Selected performance indicators and charts

By 2000, the Education Central Automated Processing System (EDCAPS) will be fully implemented and providing assistant secretaries, the Chief Financial and Chief Information Officer, and program managers with consistent, timely and reliable financial and program information. This result will be assessed by the Information Technology Investment Review Board. (Goal 4, indicator 24)

Indicator background and context. EDCAPS will be the core financial system for ED and will be used by both Department personnel as well as the recipient community (grantees and contractors). The number of Department personnel using EDCAPS will increase due to its timely and readily accessible data, thus enhancing the financial management of programs.

EDCAPS enables recipients to draw down funds through the Internet, thereby reducing the Department's dependency on contractors to provide this service. Recipients are also able to report their expenditures electronically, eliminating the current paper-based process.

Data source. EDCAPS users; GAPS Web site user activity listing.

Auditors will issue a clean opinion on the Department-wide annual financial statements every year. (Goal 4, indicator 26)

Number of Material Weaknesses and Material Non-Conformances

Still pending, as of 12/31/97 7

Goal for 1999 0

Indicator background and context. By fiscal 1999 intends that the number of material weaknesses and material non-conformances will be reduced to zero, loan loss estimates are accepted by auditors and the Department will receive a clean opinion on its financial statements. This will signal that effective that effective financial management has been fully implemented.

Data source. Federal Managers' Financial Integrity Act Report.

Evaluation of contracts will indicate that better than fully successful performance, including quality, cost control, timeliness, and other factors, is being received by the government and the taxpayer. (Goal 4, indicator 25)

Indicator background and context. A contract's terms and conditions are a representation of the government's expectations for how the government's particular needs are to be fulfilled. There are numerous indicators that provide analytical data to determine the value of the work which is done for the agency. The value is determined by a variety of factors, but there are a few which universally are key: (1) timeliness in the award of a contract; (2) continual efforts at cost containment and reduction; and (3) the best quality solution.

Data source. U.S. Department of Education Contract Data.

Verification/validation of performance measures: The indicator of a "clean audit opinion" will be obtained from an independent audit, as required by statute. The Inspector General participates in the conduct of the audit and the reporting/tracking of material weaknesses. Administrative reports prepared by project monitors on contractor performance will be externally evaluated by random sampling and external review of contracts.

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[Objective 4.5]

[Objective 4.7]