ASSISTANT SECRETARY FOR BUDGET, TECHNOLOGY AND FINANCE

(Formerly the Assistant Secretary for Management and Budget)

FY 2003 PERFORMANCE PLAN

At the beginning of Fiscal Year (FY) 2002 the Office of the Assistant Secretary for Management Budget (ASMB) was retitled the Office of the Assistant Secretary for Budget, Technology and Finance (ASBTF). ASBTF retained functional responsibility for budget and financial management as well as information resources management including the investments the Department is making in e-government and technology. The office consists of the following components:

•	Immediate Office of the ASBTF

•	Office of Budget

•	Office of Finance

•	Office of Information Resources Management

The ASBTF performance plan for FY 2003 and revised final performance plan for FY 2002 is structured to reflect the categories above. This plan contains 23 performance measures for FY 2003 and includes new measures which demonstrate both the Department's commitment to and ASBTF's role in the implementation of the President's Government-wide Management Reforms and the Secretary's additional Management Priorities.

FY 2003 Government-wide Management Reforms

•	Improve Financial Performance - The FY 2003 ASBTF performance plan includes performance measures addressing the timeliness and reliability of financial information (see Finance Goal 1, Goal 2 and Goal 3).

•	Expanding Electronic Government - The FY 2003 ASBTF performance plan includes a performance measure to improve the Department's e-gov infrastructure (see Information Resources Management measures 1.7- 1.10).

Other Management Priorities

•	Unified Financial Management Systems - The Secretary has established this as a Department-wide management priority. The FY 2003 ASBTF performance plan includes a performance measure to assess progress toward the achievement of this goal (see Finance Goal 4).

•	Consolidation of HHS Information Technology (IT) Architecture and Enhanced IT Security - The Secretary has established this as a Department-wide management priority. The FY 2003 ASBTF performance plan includes performance measures to assess progress toward the achievement of this goal (see Information Resources Management measures 1.1-1.8).

Budget

Performance Goals

FY Targets	Actual

Performance

Reference*

Goal 1a. For significant HHS budget and management processes and issues, provide timely, reliable and innovative analysis that is useful and adds value to the policy and resource decisions of the ASBTF and the Secretary.

1b. Meet the standards of quality and timeliness established by the ASBTF, OMB, Congress and oversight agencies for the annual Budget submission. Prepare clear, concise assessments that articulate HHS OPDIV priorities and meet Department requirements in preparation of the Department's budget.

FY02: Dropped

FY01:

FY00: Set

FY99: Set 11/98

FY03: Develop FY05 Budget

FY02: Develop FY04 Budget

FY01: New in FY 02

FY02:

FY01: Objective met

FY00: Objective met

FY99: Objective met

Goal 2. Provide timely and useful assistance and guidance to OMB and committee staffs and monitor effective implementation of authorizing and other legislation and regulations for Federal budget and management functions; identify and coordinate the resolution of serious issues.	FY03: Oversee FY03 Budget

FY02: Oversee FY02 Budget

FY01:

FY00: Set

FY99: Set 11/98

FY02:

FY01: Objective met

FY00: Objective met

FY99: Objective met
Goal 3a. Develop and implement strategies for the timely and effective presentation and defense of the HHS budget, and prepare timely, reliable and relevant reports to OMB, Congress and others.

3b. Professional management of the appropriation process. Provide high- quality budget justifications to the Appropriations Committees in time for hearings.

FY02:

FY01:

FY00: Set

FY99: Set 11/98

FY03: Submit FY04 Budget

FY02: Submit FY03 Budget

FY01: New for FY02	FY02:

FY01: Objective met

FY00: Objective met

FY99: Objective met
Goal 4. The OS EEO Office will provide useful, timely and reliable EEO services to the STAFFDIVs, ensuring equality of opportunity through compliance with EEO regulations and proactive outreach programs.

Measure 1. Increase EEO outreach to customers, through:

-- training/briefings

-- printed/electronic information

Measure 2. Reduce the ratio of formal

EEO complaints to total EEO complaints.

FY02: Transferred to ASAM

FY01: 62

FY00: 53

FY99: 43

FY02: Transferred to ASAM

FY01: 44

FY00: 39

FY99: 25

FY02: Transferred to ASAM

FY01: 50%

FY00: 52%

FY99: 56%

FY02:

FY01: 3/02

FY00: 67

FY99: 47

FY98: Baseline 38

FY02:

FY01: 3/02

FY00: 43

FY99: 34

FY98: Baseline 19

FY02:

FY01: 3/02

FY00: 55%

FY98: Baseline 60%
Goal 5. Provide support to the Secretary by providing quality and timely analyses and reporting of major budget events (including the Department's Budget Preparation, OMB Passback, OMB Mid Session Review, the Budget Resolution, and Appropriations Status).	FY03: Provide accurate, timely analyses and reports to the Secretary without any justifiable complaint.

FY02: Same as FY03

FY01: New for FY02	FY03: 8/03

FY02: 8/02

FY01: Objective met

Performance Summary

Shortly after submitting the FY 2002 budget, the ASBTF Budget Office reviewed its performance goals to determine opportunities for improvement. We concluded that we could take a more focused approach to Budget Office operations and concentrate on core functions. As a result, some goals were changed and one goal was added to place greater emphasis on what the office is actually accomplishing.

The revised and new goals, while still descriptive, can be objectively measured. We are convinced that the office is on the way to quantitative measures.

Goal 1 (revised): Meet the standards of quality and timeliness established by the ASBTF, OMB, Congress and oversight agencies for annual budget submission. Prepare clear, concise assessments that articulate HHS Operating Agency priorities and meet Department requirements in preparation of the Department's budget.

Performance Objective: Previously, this goal read: For significant HHS budget and management processes and issues, provide timely, reliable and innovative analysis that is useful and adds value to the policy and resource decisions of the ASMB and the Secretary. The change adds more prevision to what the Budget Office actually does, and recognizes the need to balance Operating Agency priorities and Departmental requirements as the budget is developed. It places the measurement of success outside of the Budget Office and squarely with the ASBTF.

Performance Report: During FY 2001, the Budget Office consistently provided timely, accurate, and innovative analysis and information in an environment characterized by competing priorities and non-negotiable deadlines. Briefing materials were succinct, and questions from the Secretary and his staff were answered quickly and accurately.

Performance Target: Met in FY 2001.

Goal 2: Provide timely and useful assistance and guidance to OMB and committee staffs and monitor effective implementation of authorizing and other legislation and regulations for Federal budget and management functions; identify and coordinate the resolution of serious issues.

Performance Objective: Both the House and Senate must pass appropriations bills, which are reconciled in conference. The Budget Office can provide timely information to the Secretary and his staff, but their primary job is to provide compelling justifications to committee staffs in time for their hearings.

Performance Report: For FY 2001, a number of factors outside the control of the Executive Branch conspired to delay the signing of the Labor/HHS bill until January 2002. Budget Office staff remained engaged with congressional staff, providing both staff and HHS leadership with information as needed.

Performance Target: Met in FY 2001.

Goal 3 (revised): Professional management of the appropriation process. Provide high-quality budget justifications to the Appropriations Committees in time for hearings.

Performance Objective: Previously this goal read: Develop and implement strategies for the timely and effective presentation and defense of the HHS budget, and prepare timely, reliable and relevant reports to OMB, Congress and others. The revision focuses more specifically on the critical appropriation process and the end result, rather than the processes that lead up to it. It also expands responsibility to the entire array of products that support hearings.

Performance Target: New for FY 2002.

Goal 4: The OS EEO Office will provide useful, timely and reliable EEO services to the STAFFDIVs, ensuring equality of opportunity through compliance with EEO regulations and proactive outreach programs.

Performance Objective: This function has been transferred to the Office of the Assistant Secretary for Administration and Management (ASAM). Future performance reports will be incorporated in the ASAM plan.

Performance Report: The OS EEO office continued to increase outreach efforts under Measure 1, with training/briefings on topics such as sexual harassment prevention and assisting employees returning to work after experiencing a trauma. Printed/electronic information included guidance on providing reasonable accommodation and EEO posters for regional offices. Under Measure 2, the percentage of information EEO complaints going formal increased for the first time during the first two quarters of FY 2001 to 62%, slightly higher than the baseline of 60% during FY 1998. A major factor in this increase was the type of actions complained about. Seven of the ten formal complaints involved issues that were difficult to resolve (non-selection, termination, reassignment).

Goal 5 (new). Provide support to the Secretary by providing quality and timely analyses and reporting of major budget events (including the Department's Budget Preparation, OMB Passback, OMB Mid Session review, the Budget Resolution, and Appropriations Status).

Performance Target: New for FY 2002.

Finance

Performance Goals

FY Targets	Actual

Performance

Reference*

Goal 1. (Revised) HHS completes its audited financial statements on time.

Measure: Complete HHS audited financial statements by due date.

Goal 1. HHS and all HHS components submit audited financial statements on time in accordance with mutually agreed upon due dates.

Measure: Number of Audited Financial Statements submitted by due date.

FY03: 02/01/04

FY02: 02/01/03

FY01: 10 of 10 + HHS

FY00: 9 of 9 + HHS

FY99: 9 of 9 HHS components + HHS

FY03:

FY02:

FY01: 05/02

FY00: 5 of 9 + HHS (Interim)

FY99: 8 of 9 + HHS

FY98: 8 of 8 + HHS

FY97: Baseline 0

Goal 2. (Revised) HHS' financial statements earn an unqualified (clean) audit opinion.

Measure: HHS' financial statements receive no audit qualifications.

Goal 2. HHS components and HHS audit opinions are unqualified (clean).

Measure: Number of Audited Financial Statements with no qualifications.

FY03: Unqualified opinion

FY02: Unqualified opinion

FY01: 9 of 10 + HHS

FY00: 9 of 9 + HHS

FY99: 8 of 9 audited HHS components + HHS

FY03:

FY02:

FY01: 5/02

FY00: 8 of 9 + HHS (Interim)

FY99: 8 of 9 + HHS

FY98: 2 of 8 audited HHS components + HHS received unqualified opinions.

FY97: Baseline 0 unqualified.
Goal 3. HHS submits a timely Accountability Report

Measure: Submit the HHS Accountability Report to OMB by the due date.

FY03: 02/01/04

FY02: 02/01/03

FY01: 02/27/02

FY00: 03/01/01

FY99: 03/01/00

FY03:

FY02:

FY01: 02/02

FY00: 02/28/01

FY99: 03/01/00

FY98: 03/01/99

FY97: Baseline

04/29/98 for FY97

report
Goal 4. (New) Improve HHS financial management systems to better provide uniform, integrated financial information for all of HHS.

Measure: Establish a unified financial management system.

FY03: Meet FY03 milestones identified in Project Plan.

FY02: Meet FY 02 milestones identified in Project Plan.

FY01: Develop a Project Plan to implement a unified department-wide financial management system.

FY03:

FY02:

FY01: A high-level Project Plan developed; milestones established for FY02 and 03
Goal 5. Maximize the use of electronic payments.

Measure: Percentage of payments transferred electronically (Electronic Funds Transfer).

FY03:

Vendor payments 95%

Travel payments 100%

FY02: (Revised)

Vendor payments 95%

Travel payments 100%

FY01:

Grant payments 100%

Salary payments 100%

Vendor payments 90%

Travel payments 100%

FY00:

Grant payments 100%

Salary payments 100%

Vendor payments 75%

Travel payments 75%

FY99:

Grant payments 100%

Salary payments 100%

Vendor payments 69%

Travel payments 69%

FY03: 12/03

FY02: 12/02

FY01:

Grant payments 100%

Salary payments 99%

Vendor payments 90%

Travel payments 96%

FY00:

Grant payments 100%

Salary payments 99%

Vendor payments 86%

Travel payments 95%

FY99:

Grant payments 100%

Salary payments 99%

Vendor payments 85%

Travel payments 93%

FY98: Baseline

Grant payments 100%

Salary payments 98%

Vendor payments 42%

Travel payments 43%
Goal 6. Timely vendor payments.

Measure: Percentage of vendor payments made on time.

FY03: 95%

FY02: 95%

FY01: 95%

FY00: 95%

FY99: 95%

FY03:

FY02:

FY01: 97.7%

FY00: 96.6%

FY99: 96.4%

FY98: Baseline 91%
Goal 7. Collect debt owed to HHS.

Measure: Percent increase in total collections over prior year.

FY03: 10% above FY02

FY02: 10% above FY01

FY01: 10% above FY00

($16.8 billion)

FY00: 10% above FY99

($15.7 billion)

FY99: 10% above FY98

($14.6 billion)	FY03:

FY02:

FY01: $14.4 billion

FY00: $15.3 billion

FY99: $14.27 billion

FY98: Baseline $13.3B
Goal 8. Improve the Average Time for Resolving Audits*	FY03: 3%

FY02: 3%

FY01: 3% decrease from FY00 (137.4 days)

FY00: 3% decrease from FY99 (141.9 days)

FY99: 3% decrease from baseline (146.5 days)	FY03:

FY02: 10/10/02

FY01: 140.5 days

FY00: 120.1 days

FY99: 112.9 days

FY98: Baseline 151 days

NOTE: The targets for the audited financial statement goals matches the year covered by the financial statement.

*In FY 2002 the Office of Audit Resolutions and Cost Policy was transferred from the Office of Grants and Acquisition Management to the Office of Finance. This FY 2003 GPRA plan includes the goals, etc. for audit resolution.

The Office of Finance (OF) provides leadership and guidance on HHS financial management to maintain the confidence of the public that all resources are managed effectively. OF achieves this outcome by ensuring the timely and accurate disbursements and collections and recording of

funds and by informing its customers, i.e. decision-makers and the taxpayers with useful financial information.

The OF is committed to achieving two HHS financial management strategic goals:

1. Decision-makers have timely, accurate and useful program and financial information.

2: All HHS resources are used appropriately and effectively.

ASBTF Finance will accomplish these goals in partnership with the HHS components, with the government-wide Chief Financial Officer's Council through its various committees and work groups and with the central agencies including OMB, Treasury, etc. The Office of Finance will utilize these key results to achieve its long-range performance goals which include development of an integrated process which captures financial, budget and program performance information and which makes financial information more useful for program managers.

Performance Summary

Performance Goal 1. Timely Audit Opinion.

Establishing Performance Targets: The due dates for completion of audited financial statements are established by law. HHS, as the equivalent of a corporate entity, is obligated to meet those due dates. The HHS financial statements and the auditor's opinion on those statements, roll up from and rely upon the statements and audit opinions of HHS components. Of the 13 components of HHS, 9 components prepared audited financial statements for the FY 1999 and FY 2000 cycle. They are: ACF, CDC/ATSDR, CMS, FDA, HRSA, IHS, NIH, PSC, and SAMHSA. (Since ATSDR is included in the CDC statements, CDC/ATSDR are counted as one HHS component). AoA will have its first full audit for the FY 2001 statements. AHRQ and OS have financial statements, but they are not audited individually.

The target year applies to the period covered by the statements although the audit of the statements is performed in a subsequent year.

Discussion of FY 2002 and FY 2003 targets: OMB has issued guidance which proposes to accelerate the schedule to require that the statements and report be available at the time of the President's budget submission). The February 1, 2003 and February 1, 2004 target due dates reflect that guidance. They will be adjusted if the guidance changes.

Given the fact that new, updated financial systems will not be fully implemented and the inherent lag in GPRA program performance data for the overviews, this will be a very difficult challenge and will tax available resources. The milestones will apply to CMS, NIH, ACF, CDC, and FDA as well as HHS since these HHS component audited statements are material to the HHS statement. The other HHS component audited statements will also have established milestone dates that will enable the Department to meet the revised OMB deadlines.

Data Source for Performance: Dates of Inspector General's Report for HHS-wide Audit and Independent Auditors Report for HHS components Audits.

Data Verification and Validation: Copies of these reports are provided by the Inspector General and are kept on record.

Performance Progress: HHS, CMS, and FDA audits were timely and ACF, NIH, and HRSA were substantially completed on time. The SAMHSA audit was delayed due to implementation issues with the new grant payment system. CDC's audit was delayed by these same issues and also by issues related to reimbursable activities. The PSC audit was delayed as a result of the grant payment management system delay in other OPDIV audits. The IHS financial statement audit for IHS was also delayed, but was completed. None of these delays affected the HHS opinion, however they do reflect the difficulty in maintaining timely, clean opinions. In preparation for its first full audit in FY 2001, AoA had an audit review completed on its Balance Sheet.

Changes over Previous Year: The goal and measure was revised for FYs 2002 and 2003 to emphasize the fact that HHS is a single organization. This is consistent with the Secretary's direction. HHS will continue to track the performance of each individual component internally.

Performance Goal 2. Clean Audit Opinion.

Establishing Performance Targets: The independent auditor's opinion determines whether the statements fairly present the financial condition of an entity while complying with generally accepted accounting principles. If they do, an unqualified or "clean" opinion is rendered. If not, either a qualified opinion (one or more serious findings of deviations from accounting principles) or a disclaimer (not auditable) is given.

The same basis for quantifying the Performance Goal 1 above, applies to Goal 2.

Discussion of FY 2002 and FY 2003 Targets: Due to the accelerated schedule and related challenges discussed under Goal 1 above, the HHS clean opinion will be difficult to maintain. It is dependent on human resource skills and financial systems.

Data Source: Financial Statement Auditors Opinion and Date of the Opinion.

Data Verification and Validation: Copies of these reports are provided by the Inspector General and are kept on record.

Performance Progress: HHS has continued to improve the reliability of the financial statements. None of the statements prepared for the FY 1997 period were unqualified, but two HHS components received unqualified opinions for FY 1998 and HHS received its first clean opinion for FY 1999. A second clean opinion was earned for FY 2000. Eight of the 9 HHS

components' statements that support this goal, also received a clean opinion. The ninth component (IHS) did not receive a clean opinion.

Changes over Previous Year: The goal and measure were revised for FYs 2002 and 2003 to emphasize the fact that HHS is a single organization. This is consistent with the Secretary's direction. HHS will continue to track the performance of each individual component internally.

Performance Goal 3. Accountability Report

Establishing Performance Targets: With the passage of the Reports Consolidation Act of 2000, the authorization for Accountability Reports is now permanent with the reports due 180 days after the end of the fiscal years 2000 and 2001 and due 150 days after the end of the fiscal year, thereafter. OMB has accelerated this schedule further, as discussed in Goals 1 and 2. The report streamlines various individual reports that are required under other legislation and presents the finance, program, and budget information in a way that is more useful to the public and to decision-makers.

Discussion of FY 2002 and FY 2003 Targets: The risks associated with the accelerated schedule for these fiscal years will cascade and have a significant impact on the content and production of the Accountability Report. Trade-offs will have to be made in the program performance and analysis discussion in order to meet the accelerated dates. Even then, if there are any problems with the audits, they will affect HHS' ability to accomplish these targets.

Data Source: Transmittal memo and report from HHS to OMB.

Data Verification and Validation: The OMB verification of timely receipt of HHS submission.

Performance Progress: HHS met the target in FY 1999 and exceeded the FY 2000 target by one day. The FY 1999 report was judged to be "excellent" and was cited for best practices in a Certificate for Excellence in Accountability Reporting review. The FY 2000 review has not been completed yet.

Performance Goal 4 . Unified Financial Management Systems

As HHS moves forward in Electronic Government (e-gov), we are assessing our current e- business capabilities and status. Part of the Department's effort is to address the public's demand for on-line government interaction and simplified, standardized ways to access government information and services. One of the Department's objectives is to have a unified automated financial management system that provides complete, reliable, and timely financial information and that supports preparation of HHS' financial statements. Currently HHS has five accounting systems running on varying platforms at various locations. HHS is now working to achieve greater economies of scale, eliminate duplication, and provide better service delivery by consolidating the existing systems into a unified system that will provide uniform, integrated financial information for HHS management and decision-makers. Also, the Department is consolidating accounting services and streamlining its financial infrastructure.

Discussion of FY 2002 and FY 2003 targets: Consistent with the President's Management Agenda under the improving financial performance initiative, HHS has announced a "One Department" approach to information technology which emphasizes management of resources on an enterprise basis with a common infrastructure. In FY 2001, HHS initiated a six-year project to implement a Unified Financial Management System (UFMS) to replace five legacy systems and integrate two major sub-systems. Specifically, HHS will have one financial management system comprised of two major sub-components. One sub-component will be for CMS and the Medicare Contractors called the Healthcare Integrated General Ledger and Accounting System (HIGLAS), and another sub-component for the rest of HHS will both be integrated into a Department reporting system. This unified system will be designed to automate all internal and external financial reporting needs.

Data Verification and Validation: Data Verification and Validation will be determined by the development and execution of the milestones, which will be verified and validated in the auditor's opinion. The existence of two systems rather than five will also serve as validation.

Performance Progress: New Measure

Performance Goal 5 . Electronic Funds Transfer (EFT)

Establishing Performance Targets: Treasury guidelines issued in January, 1999 established conversion targets of 69% for FY 1999 and 75% for FY 2000 for EFT payments for all Federal Agencies. Treasury has not determined the targets for FY 2001 and beyond; those targets will be included in our plan when and if they are identified. The percent achieved is based on the universe of payments eligible for EFT.

Discussion of FY 2002 and FY 2003 Targets: The HHS target for travel payments will remain at 100% and will increase from 90% to 95% for vendor payments. New accounting systems will impact performance under these targets.

Changes over Previous Year: The targets for grants and salary payments were deleted since there is a three-year trend of substantial achievement of this goal and targets for them. These rates will

continue to be monitored internally. Should there be a change, they will once again become the focus of GPRA targets.

Data Source: Quarterly EFT Reports and Treasury Guidelines of January 1999

Data Verification and Validation: Each OPDIV has an automated process for tabulating the number and types of payments made; this information is used to compile the quarterly statistics. The data is validated and verified via Treasury who tabulates the number and types of payments made based on the Agency Location Code(s) of an agency.

Performance Progress: HHS met or substantially met all of its targets except travel payments. However, actual performance for travel showed improvement above FY 2000 levels and achieved 96%, which was very close to the 100% target.

Performance Goal 6. Timely Vendor Payments

Establishing Performance Targets: Timely payment by HHS of bills owed to vendors will avoid late fees and interest penalties mandated under the Prompt Pay Act. They also indicate sound business practices.

Discussion of FY 2002 and FY 2003 Targets: HHS will work to meet and maintain the 95% on-
time targets that were established by OMB. Since new financial systems will be implemented, they may have an impact on these targets and accomplishments, but it cannot be fully projected now, so the target will not be increased at this time.

Data Source: Quarterly HHS Component Prompt Pay reports

Performance Progress: Since FY 1996, HHS has shown increasing rates of on-time payments. In FY 2001, HHS achieved a department-wide record by making over 97% of its payments on time.

Performance Goal 7. Collection of Debts

Establishing Performance Targets: The 10% target is the increase in dollars collected over the prior fiscal year for debts owed to the HHS.

Performance Progress: In FY 2001 the $14.4 billion in collections represents a 5.8% decrease from FY 2000. However, at the same time collections decreased, total receivables decreased by $1.2 billion. As a percent of total receivables, collections in FY 2001 were 51.6% which is approximate to the 52.6 collection rate for FY 2000.

Discussion of FY 2002 and 2003 Targets: The dollar amount of these targets will continue to be 10% above the dollars collected for the prior year. The measure was clarified from that in the FY 2001 plan to be clearer and consistent with the Accountability Report.

Data Source: Treasury Report on Receivables (formerly Schedule 9s).

Data Verification and Validation: The HHS Chief Financial Officer or Deputy Chief Financial Officer certifies annually in December, that the amounts reported on the receivables report are correct and will be used to monitor compliance with the Debt Collection Improvement Act. The Chief Financial Officer also verifies that the report has been reconciled to the HHS audited financial statements. This verification is submitted by March 31st of each year.

Performance Goal 8. Improve the Average Time for Resolving Audits

Establishing Performance Targets: A reduction of 3% in the average time in days required to resolve an audit.

The Office of Audit Resolution and Cost Policy resolves audit findings of a cross-program nature. The cross-program findings that are resolved at this level of the Department, generally are not related directly to program effectiveness, but rather are related to establishing accurate measures of the costs of program operations and to assure grantee compliance with their financial responsibilities consistent with generally accepted accounting principles. The Single Audit Act requires that Federal awarding agencies resolve audit findings within 6 months after the receipt of an audit report. This performance goal is to reduce the time required to resolve audits.

Generally, timely resolution of these issues is in the interest of the grantee and the taxpayers. However, the Office has limited control over the quality and complexity of audit findings.

Date Source: DAR Management Information System

Data Verification and Validation: Office Director reviews and approves the system's input and analysis by the senior audit resolution staff.

Performance Progress: The performance target for FY 2001 is 137.4 days. The average time to resolve an audit in FY 2001 was 140.5 days. FY 2001 and prior year performances of this function was under the Office of Grants and Acquisition Management. Responsibility was transferred to the Office of Finance in October 2001.

The most significant and relevant factor for the improved performance is that the business processes of OARCP have been redesigned to triage audit findings so that the most time is available for the most complex issues. Individual performance plans were in turn re-designed to stress the importance of improving the processing of audit findings. An audit resolution tracking system was refined to incorporate individual and group statistics on timeliness, and regular reports are being issued. Other factors also are related to the improvements in this performance measure. OARCP assumed the responsibility of the Department's Compliance Supplement Officer. This requires the coordination of all programmatic supplements to OMB Circular A- 133. OARCP also develops and coordinates the implementation of a new Department-wide system for ensuring the receipt of all audits required by the Single Audit Act. Finally in coordination with the Inspector General, OARCP took on new responsibilities for reporting outstanding monetary audit findings and the status of collections to Congressional appropriations committees. These additional activities continue to provide conditions that also require the acceleration of audit resolution activities within OARCP.

Changes over Previous Year: The average time required for resolving audits was not as good as either the performance target or prior year performance. The office lost one-third of its staff unexpectedly in FY 2000, and this shortage continued for most of FY 2001. The vacancies now have been filled.

Information Resources Management

Performance Goals

FY Targets	Actual

Performance

Reference

Goal 1. Major systems development/major modification efforts demonstrate a high probability of success.

Implement the Departmental Information Technology Review Board process to assure soundness of IT capital investments and to initiate appropriate corrective actions on major efforts as needed.

1.1. 100% of IT investments approved by the ITIRB meet review criteria (i.e., OMB Memorandum M-97-02).

1.2. 100% of IT investments considered but not approved by the ITIRB are subject to appropriate corrective actions and funding restrictions or terminations.

Establish Operating Agency-Level Information Technology Architectures (ITA) within a Departmental ITA for use in evaluating IT investments.

1.3. 100% of IT investments approved by ITIRB meet review criteria (i.e., OMB Memorandum M-97-02).

Initiate Enterprise Infrastructure Management to provide software distribution; asset, problem, and facilities management.

1.4. 100% of all COTS software (Tivoli) needed to distribute software is purchased and distributed, phased in over three years.

1.5. 100% of all COTS software (Peregrine) needed to provide asset, problem and facilities management is purchased and distributed, phased in over three years.

Initiate Enterprise Software Licenses to consolidate duplicative efforts.

1.6. 100% of all SAS software products are purchased from the Enterprise License to achieve a 20% purchase savings.

Consolidate and Protect Department's IT Infrastructure.

1.7. Establish and Implement a consolidated IT Strategic 5-Year Plan that supports "One Department"

1.8. Inventory IT Assets

1.9. Enhance the security of HHS internal network.

1.10. Maintain the reliability of HHS IT systems.

FY03: 100%

FY02: 100%

FY01: 100%

FY00: 100%

FY03: 100%

FY02: 100%

FY01: 100%

FY00: 100%

FY03: 100%

FY02: 100%

FY01: 100%

FY00: 100%

FY03: N/A

FY02: N/A

FY01: 50%

FY03: N/A

FY02: N/A

FY01: 70%

FY03: 100%

FY02: 100%

FY01: 70%

FY03: Reduce number of servers throughout HHS by 25%; and complete consolidation of circuits throughout 10 regional offices.

FY02: Reduce number of servers throughout HHS by 10% and consolidate circuits among 5 regional offices.

FY01: Establish 5 year plan.

FY03: Complete inventory Department-wide

FY02: Initiate inventory of IT assets and complete 35%.

FY03: Reduce successful intrusions by an additional 25%.

FY02: Reduce successful intrusions by 25%.

FY03: 99.7%

FY02: 99.7%

FY03:

FY02:

FY01: 100%

FY00: 100%

FY03:

FY02:

FY01: 100%

FY00: 100%

FY03:

FY02:

FY01: 100%

FY00: 100%

FY03:

FY02:

FY01: 20%

FY00: 10%

FY03:

FY02:

FY01: 80%

FY00: 60%

FY03:

FY02:

FY01: 80%

FY03:

FY02:

FY01:

FY03:

FY02: 100%

(hardware)

FY03:

FY02:

FY03:

FY02

Goal 2. Departmental collections of information meet the requirements of the Paperwork Reduction Act of 1995.

Eliminate illegal/bootleg collections of information.

2.1. 99% of Departmental information collections have current OMB approval in FY 2000.

Reduce, minimize and control burden place on the public by Departmental information collections.

2.2. Achieve a 35% reduction in burden hours imposed on the public by HHS information collection inventory in FY 2000 (compared with the FY 1995 baseline, to be phased in by 10% for FY 1996, 10% for FY 1997, 5% for FY 1998, 5% for FY 1999, and 5% for FY 2000).

2.3. Achieve a 5% reduction in burden hours from the previous year.

Monitor Department's implementation of GPEA.

2.4.Information collections reviewed by the Department are in compliance with the requirements of GPEA.

FY03: 99%

FY02: 99%

FY01: 99%

FY00: 98%

FT99: 97%

FY98: 90%

FY02: N/A

FY01: N/A

FY00: -5%

FY99: -5%

FY98: -5%

FY97: -10%

FY96: -10%

FY03: -5% of FY02

FY02: -5% of FY01

FY01: -5% of FY00

FY03: 100%

FY02: 90%

FY02:

FY01: 11/1/01

FY00: 99%

FY99: 99%

FY98: 90%

FY00: +7.1%

FY99: +7.7%

FY98: - 8.7%

FY97: -10.0%

FY96: - 9.9%

FY02:

FY01: 11/1/01

FY03:

FY02:

Goal 1. Major systems development/major modification efforts demonstrate a high probability of success.

Performance Objective: Implement the Departmental Information Technology Review Board process to assure soundness of IT capital investments and to initiate appropriate corrective actions on major efforts as needed.

Measure 1.1:	100% of IT investments approved by the ITIRB meet review criteria (i.e., OMB Memorandum M-97-02).

Measure 1.2:	100% of IT investments considered but not approved by the ITIRB are subject to

appropriate corrective actions and funding restrictions or terminations.

Establishing Performance Targets: Three meetings were held in FY 2001 that reviewed three systems: EIM Business Case-approved December 2000. CITs Procurement Contract Vehicle from CDC approved-May 2001 to continue and directed to be expanded from Department-wide use; CMS's integrated General Ledger Accounting System (HIGLAS-CMS has been working with the Department since January 2001 to improve their documentation in preparation for an ITIRB planned in August 2001). The Department has held several business case reviews (January, March, April) of the HIGLAS ITIRB documentation still under development to assist and guide the HIGLAS program to a successful ITIRB review. The Board has expanded its purview into any and all cross-cutting IT initiatives, including procurement vehicles that can have Department-wide use.

Note: OIRM is in the process of evaluating the efficacy of the structure of the current targets. An oversight role involving reviews of OPDIV-LEVEL performance may provide more insight into ITIRB processes and results than the current meeting-oriented measure.

Performance Objective: Establish OPDIV-LEVEL Information Technology Architectures (ITA) within a Departmental ITA for use in evaluating IT investments.

Measure 1.3:	100% of IT investments approved by the ITIRB meet review criteria (i.e., OMB

Memorandum M-97-02).

Establishing Performance Targets: In 1998, ASMB determined that HHS and the OPDIVs needed information technology architectures (ITA). In 1999 an ASMB/FDA-led task force began work on developing ITAs for the Department and each of the OPDIVs. The first two

phases of this work have been completed and are used to gauge the investments brought before the Board.

Performance Report: All of the investments either met the requirements of the ITA or were brought into alignment through Board actions.

Performance Objective: Initiate Enterprise Infrastructure Management to provide software distribution; asset, problem, and facilities management.

Measure 1. 4:	100% of all COTS software (Tivoli) needed to distribute software is purchased

and distributed, phased in over three years.

Establishing Performance Targets: In 1999, ASMB determined that HHS and the OPDIVs needed an Enterprise Information Management to establish and conform to the Clinger-Cohen Act that establishes not only an IT review board for technology expenditure assessments against the Strategic Plan, but also established conformance to a mandated architecture. As part of that architecture strategy, the Enterprise Infrastructure Management (EIM) program requires standardized products, distribution and monitoring to assess and control expenditure, data exchange and provides Department-wide standards. Tivoli is one of the products chosen, via the results of the IM Business Case analysis and Information Technology Investment Review Board (ITIRB), that meets the Department's conformity mandates. We are reexamining the utility and necessity of the Tivoli product due to Peregrine's advances, therefore, we are not including performance targets for FY02 and FY 03.

Performance Report: All of the investments met the requirements of EIM.

Measure 1.5:	100% of all COTS software (Peregrine) needed to provide asset, problem and

facilities management is purchased and distributed, phased in over three years.

Establishing Performance Targets: In 1999, ASMB determined that HHS and the OPDIVs needed an EIM to establish and conform to the Clinger-Cohen Act that establishes not only an IT review board for technology expenditure assessments against the Strategic Plan, but also established conformance to a mandated architecture. As part of that architecture strategy, the EIM program requires standardized products, distribution and monitoring to assess and control expenditure, data exchange and provides Department-wide standards. Peregrine is one of the products chosen, via the results of the EIM Business Case analysis and ITIRB, that meets the Department's conformity mandates. We are reexamining the utility and necessity of the Tivoli product due to Peregrine advances, therefore, we are not including performance targets for either product at this time.

Performance Report: All of the investments met the requirements of EIM.

Performance Objective: Initiate Enterprise Software Licenses to consolidate duplicative efforts.

Measure 1.6:	100% of all SAS software products are purchased from the Enterprise License to

achieve a 20% purchase savings.

Establishing Performance Targets: In 1999, ASMB determined that HHS and the OPDIVs needed an Enterprise Software Licensing effort as part of the Department's conformance to the Clinger-Cohen Act. Eliminating duplicative contract administrative efforts and achieving corporate purchasing power, consolidated efforts and provides benefits the Department cost savings and unlimited seat licensing for all OPDIV's. This effort also contributes to the requirement to manage technology expenditures per the Strategic Plan. As part of the

architecture strategy, the EIM program requires standardized products, distribution and monitoring to assess and control expenditures, data exchange and provides Department-wide standards.

Performance Report: All of the investments met the requirements of EIM.

Performance Objective: Consolidate and protect Department's Information Technology Infrastructure.

Measure 1.7:	Establish and implement a consolidated IT 5-year Strategic Plan that supports

"one Department".

FY01 Target: Establish and implement an IT 5 year strategic plan.

Establishing Performance Targets: The Department established the target of an Information Technology (IT) Five Year Strategic Plan based on the Clinger-Cohen requirements to establish an enterprise-wide architecture. In order to accomplish this, and to achieve the Secretary's goal of "One Department", the IT Five Year Strategic Plan focuses the resource requirements as well as expenditures on the prioritized objectives and projects of the Department.

Performance Report: The strategic plan will be monitored and updated as needed.

FY02 Target: Reduce number of servers throughout HHS by 10%; and consolidate circuits among 5 regional offices.

Establishing Performance Targets: Reducing the number of servers throughout the Department by 10% and consolidating circuits among 5 regional offices in FY 02 begins to centralize the physical IT infrastructure into one Department through consolidation.

Performance Report: Asset Center, a Peregrine application, will provide IT asset inventory reports that can be monitored for the progress of consolidation.

FY 03 Target: Reduce the number of servers throughout HHS by 25% and complete consolidation of circuits throughout 10 regional offices.

Establishing Performance Targets: Reducing the number of servers throughout the Department by 25% and consolidating circuits among 10 regional offices in FY03 continues to centralize the physical IT infrastructure into one Department through consolidation.

Performance Report: Asset Center, a Peregrine application, will provide IT asset inventory reports that can be monitored for the progress of consolidation.

Measure 1. 8:	Inventory IT Assets.

FY02 Target: Initiate inventory of IT assets via the installation and implementation of Peregrine's Asset Center application and complete 35% of the inventory for FY 02.

Establishing Performance Targets: The Department established a 35% completion for FY02 since funds are not available to continue distribution and installation of the Peregrine Asset Center application.

Performance Report: As of December 5, 2001 we have completed the automated IT hardware asset inventory.

FY03 Target: Complete inventory Department-wide.

Establishing Performance Targets: The Department will complete the inventory of IT assets in FY03, providing funds are available to continue distribution and installation.

Performance Report: Asset Center, a Peregrine application, will provide IT asset inventory reports that can be monitored for the progress of consolidation.

Measure 1.9:	Enhance the security of the HHS internal network.

FY02 Target: Reduce the successful intrusions by 25%.

Establishing Performance Targets: The Department has established the target of a reduction by 25% of successful intrusions for FY02. This will be accomplished by distribution and implementation of Tivoli's Policy Director, Risk Manager, and Intrusion Detection applications.

Performance Report: These three Tivoli applications cumulatively will produce security reports that delineate intrusion attempts to routers, firewalls and webservers while providing the identity of the IP address, the physical, geographic location of the intruder and restricts access to certain network resources.

FY03 Target: Reduce the successful intrusions by an additional 25%.

Establishing Performance Targets: We will continue to reduce successful intrusions by an additional 25% in FY03 as Tivoli's Policy Director, Risk Manager, and Intrusion Detection applications are rolled out to the remaining Agencies.

Performance Report: These three Tivoli applications cumulatively will produce security reports that delineate intrusion attempts to routers, firewalls and webservers while providing the identify

of the IP address, the physical, geographic location of the intruder and restricts access to certain network resources.

Measure 1.10: Maintain the reliability of HHS IT systems.

FY02 Target: The Department established a target success rate of 99.7% for FY02 because anything less would be unacceptable.

Establishing Performance Targets: During FY02, the Uninterrupted Power Source (UPS) system will be installed to ensure uninterrupted power during emergency and natural disasters. Backup and disaster recovery procedures will be implemented across the Department.

Performance Report: Power availability can be measured via machine utilization reports and reporting instruction via the backup and recovery procedures.

FY03 Target: The Department established a target success rate of 99.7% for FY03 because anything less would be unacceptable.

Establishing Performance Targets: During FY03, the UPS system will be maintained to ensure uninterrupted power during emergency and natural disasters. Backup and disaster recover procedures will be monitored across the Department.

Performance Report: Power availability can be measured via machine utilization reports, server uptime and reporting instruction via the backup and recovery procedures.

Goal 2. Departmental collections of information meet the requirements of the Paperwork Reduction Act of 1995

Performance Objective: Eliminate illegal/bootleg collections of information.

Measure 2.1:	99% of Departmental information collections have current OMB approval

in FY 2000.

Establishing Performance Targets: The Paperwork Reduction Act requires that collections of information from the public receive prior approval from OMB. Accordingly in FY 1997, the Department set a goal of having at least 99% of information collections in compliance by FY 2000 and maintaining this level in the out years. A goal of 100% would not be realistic because new and revised collections are always under development.

Performance Report: As of the end of FY 1999, 99% of Departmental collections had current OMB approval number.

Performance Objective: Reduce, minimize and control burdens placed on the public by Departmental information collections.

Measure 2.2:	Achieve a 35% reduction in burden hours imposed on the public by the HHS information collection inventory in FY 2000 (compared with the FY 1995 baseline, to be phased in by 10% for FY 1997, 5% for FY 1998, 5% for FY 1999, and 5% for FY 2000).

Establishing Performance Targets: The Paperwork Reduction Act required that agencies attempt to reduce burden on the public by 10% in both FY 1996 and FY 1997. In addition, the Act

requires that agencies further reduce burden by an additional 5% in FY 1998, FY 1999 and FY 2000. Accordingly, the Department established a target of reducing burden on the public by a cumulative figure of 35% by FY 2000.

Performance Report: By FY 1998, the Department had achieved an 8.79% burden reduction. However, this was turned around in FY 1999, where the Department showed a 7.7% increase in burden due to the new legislative requirements in HCFA and FDA.

Measure 2.3:	Achieve a 5% reduction in burden hours from the base of the previous year, not including any new requirements until the following year.

Establishing Performance Targets: The existence of new legislative requirements - and the potential for additional legislative requirements in the future - has caused the Department to alter its strategy by adopting targets that measure annual burden reduction from the prior year rather than cumulative reduction from a base year. New requirements will not be considered in

describing burden changes but will be added to the base for calculations made in the following year.

Performance Objective: Monitor Departments Implementation of GPEA.

Measure 2. 4:	Information collections reviewed by the Department are in compliance with the requirements of GPEA.

FY02 Target: The Department established a target success rate of 90% for FY 2002 because anything less would be unacceptable.

Establishing Performance Targets: During FY 2002 the Department expects that some out of compliance will still occur due to the need for PKI to be established to allow electronic signatures to accommodate the public need.

Performance Report: The Department has a comprehensive report that shows by Agency course of action that the Agency plans to get the collections into conformance. The Department will monitor that report and update it to track each Agency's progress towards accomplishing their cited goals.

FY03 Target: The Department established a target success rate of 100% for FY 2003 because anything less would be unacceptable.

Establishing Performance Targets: During FY03 the Department expects that PKI will be established to allow electronic signatures to accommodate the public need.

Performance Report: The Department continues to monitor each Agency's action plan to track each Agency's progress towards accomplishing their cited goals.