Detailed Information on the
Administering the Public Debt Assessment

Migrate Summary Debt Accounting to a shared service solution by FY 2013

Consolidate Government Agency Investment Services into a single, integrated control environment by FY 2012

By 2012, 90% of Primary Dealers demonstrate the ability to participate in a live auction from their disaster recovery sites

By FY 2010, complete 90 percent of retail customer service transactions in 10 business days

Continue to improve annual performance targets.

Set interim targets for long-term performance goals.

Develop long-term performance measures and goals for inclusion in the 2005 budget.

Measure: Percentage of retail customer service transactions completed within 12 days.

Explanation:Measures the length of time to complete a customer service transaction from the date each transaction is received to the date it is completed.

Measure: Percent of auction results released in two minutes +/- 30 seconds.

Explanation:Measures the elapsed time from the auction close to the public release of the auction results.

Measure: Cost per debt financing operation.

Explanation:Measure divides debt financing operations costs, determined by an established cost allocation methodology, by the number of auctions and buybacks.

Measure: Cost per federal funds investment transaction.

Explanation:Measure divides the federal funds investment costs, determined by an established cost allocation methodology, by the number of issues, redemptions, and interest payments for more than 200 trust funds, as well as the Treasury managed funds.

Measure: Cost per TreasuryDirect assisted transaction.

Explanation:Measure divides TreasuryDirect customer service transaction costs, determined by an established cost allocation methodology, by the number of customer requests completed with assistance by a customer service representative.

Measure: Cost per TreasuryDirect online transaction.

Explanation:Measure divides TreasuryDirect online transaction costs, determined by an established cost allocation methodology, by the number of TreasuryDirect online transactions.

Measure: Cost per summary debt accounting transaction.

Explanation:Measure divides summary debt accounting transaction costs, determined by an established cost allocation methodology, by the number of summary debt accounting transactions.

Measure: Percent of primary dealers that are able to participate in a live auction from their disaster recovery sites.

Explanation:Measures percentage of validated primary dealers that are able to conduct a live auction from their disaster recovery site.

Is the program purpose clear?

Explanation: BPD has two missions: borrow the money needed to operate the Federal Government and account for the resulting debt. The operations of the Federal government are funded using unified borrowing. Under this approach, Treasury is the only agency authorized to conduct borrowing for the general benefit of the Federal government.

Evidence: BPD Strategic Plans; Article I, Section 8 of the Constitution empowers the Congress to borrow money on the credit of the United States, authority which has been delegated to BPD under Treasury Orders 106-08 and 106-11.

Does the program address a specific and existing problem, interest, or need?

Explanation: The government's authority to borrow is set forth in the Constitution. To meet the financing needs of the government, BPD borrows from a broad range of investors'individuals purchasing small denomination savings bonds to large financial institutions purchasing billions in Treasury bills or notes.

Evidence: FY 2000-FY 2005 Strategic Plan

Is the program designed so that it is not redundant or duplicative of any Federal, state, local or private effort?

Explanation: Although State and local governments also offer debt instruments, BPD is the only agency authorized to borrow to fund the overall operations of the Federal government. Other Federal agencies (e.g., Veterans Administration, US Forest Service, etc.) are permitted to borrow but only through the Department of the Treasury.

Evidence: Article I, Section 8 of the Constitution; Treasury Orders 106-08 and 106-11

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: Treasury has never defaulted on its debt and the program has always met the borrowing needs of the Federal government. BPD has no material weaknesses and a continuous record of unqualified audit opinions covering the Federal government's debt financing operations.

Evidence: GAO Audits of the Schedule of Federal Debt for 1994-2002; Public Debt Management Control Plan for FY 2003-2007; FY 2002 Annual Assurance Statement; Mitre Corporation Review of IT Security Program, 2003

Is the program effectively targeted, so program resources reach intended beneficiaries and/or otherwise address the program's purpose directly?

Explanation:  

Evidence:  

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: BPD has three succinct strategic goals; finance government operations, account for the debt of the Federal government, and fulfill customer expectations. The bureau developed four long-term performance goals for inclusion in the FY 2005 Budget: 1) Increase number of bidders in Treasury auctions by 15% by 2010; 2) Conduct 80% of customer-initiated transactions on-line by 2008; 3) Hold 50% of retail debt in TreasuryDirect by 2011; 4) Produce daily public debt financial statements by 2007.

Evidence: FY 2005 OMB Budget submission

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: BPD recently developed four long-term performance goals and set targets for each of the measures (see question 2.1).

Evidence: FY 2005 OMB Budget submission

Does the program have a limited number of specific annual performance measures that demonstrate progress toward achieving the program's long-term measures?

Explanation: Although BPD is working to develop long-term performance goals, it does have a limited set of annual performance goals that demonstrate progress towards achieving the bureau's three strategic goals. Most of these goals are refined each year and show improvements in the timeliness of issuing auction results, the timeliness and accuracy of processing transactions, and addressing customer service inquiries.

Evidence: FY 2004 Budget and Prior Year Submissions.

Does the program have baselines and ambitious targets and timeframes for its annual measures?

Explanation: The program sets ambitious targets for each of its annual performance goals.

Evidence: FY 2004 Budget and Prior Year Submissions.

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, etc.) commit to and work toward the annual and/or long-term goals of the program?

Explanation: BPD's principal partners are the Federal Reserve Banks (FRB), who assist with auctioning, issuing and redeeming securities as well as providing customer service for retail customers. These activities are tied directly to BPD's performance goals.

Evidence: Federal Reserve Business Plans 2003-2006

Are independent and quality evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: The General Accounting Office (GAO) annually audits debt related financial statements and examines the summary and subsidiary accounting systems that are used to account for the debt. Further, independent public accountants hired by the Office of the Inspector General (OIG) annually audit and review the Federal Investment Program. The OIG also performs periodic program reviews.

Evidence: GAO Audits of the Schedule of the Federal Debt for 1994-2002; Public Debt Management Control Plan for FY 2003-FY 2007; Mitre Corporation Review of IT Security Program, 2003; various OIG reports (OIG-03-009, OIG-02-120, OIG-02-116).

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: There is no direct link between budgetary resources and attaining annual or long-term goals. BPD, however, is working towards aligning its budget and performance goals (see Question 2.8).

Evidence: BPD's budget requests include performance data but not in a manner in which to evaluate the impact of funding increases or decreases on performance results.

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: As noted earlier, the bureau is working to develop long-term goals and tie its annual goals directly to the long-term goals. This process also entails linking budget resources with performance targets (See Questions 2.1; 2.2; 2.7).

Evidence: BPD anticipates including long-term measures in its FY 2005 Budget Submission doe to OMB in September 2003.

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: The bureau works with its FRB partners to improve quality and efficiency in selling and redeeming securities as well as assisting with customer service inquiries. These activities are tied directly to BPD's annual performance goals. In addition, BPD responds to and implements recommendations from its auditors.

Evidence: Report on Federal Reserve Bank Performance Against Service Level Objectives for April 2003 and Prior Months; Auction Release Times Chart, October 2002-May 2003; Public Debt Intranet, Customer Service Performance Index; Mitre Corporation Review of IT Security Program, 2003.

Are Federal managers and program partners (grantees, subgrantees, contractors, cost-sharing partners, etc.) held accountable for cost, schedule and performance results?

Explanation: Public Debt's program managers are accountable for work performed under their direct control as well as work performed by our fiscal agents, the Federal Reserve Banks. With respect to the work performed by the Federal Reserve Banks, the bureau routinely evaluates their performance on service level objectives established by BPD. These assessments are specifically considered as part of the Federal Reserve's performance evaluation structure.

Evidence: Federal Reserve Business Plans 2003-2006; Federal Reserve Bank Performance Against Service Level Objectives.

Are all funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: Funds are obligated timely with no history of Anti-Deficiency Act violations.

Evidence: Statements of Budget Execution (SF-133).

Does the program have procedures (e.g., competitive sourcing/cost comparisons, IT improvements, approporaite incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: Public Debt has instituted incentives for identifying opportunities for program efficiency and cost reduction. For example, BPD, in cooperation with Federal Reserve management, determined that it could reduce call center staff without jeopardizing customer service. Additionally, BPD encourages its issuing agents to take advantage of postal service discounts by pre-sorting bonds.

Evidence: Information Resource Management (IRM) Plans for FY 1998-2002; BPD historically funds new programs by eliminating ineffective programs

Does the program collaborate and coordinate effectively with related programs?

Explanation:  

Evidence:  

Does the program use strong financial management practices?

Explanation: Since the inception of the CFO Act, BPD has received an unqualified opinion on debt related financial statements. In addition, the bureau closes its books in 3-days monthly and 45-days at the end of the fiscal year and has no material weaknesses.

Evidence: GAO Audits of the Schedule of the Federal Debt for 1994-2002; Public Debt Management Control Plan for FY 2003-FY 2007; Mitre Corporation Review of IT Security Program, 2003.

Has the program taken meaningful steps to address its management deficiencies?

Explanation: BPD has a comprehensive management control program that has become a model within Treasury. BPD's automated audit monitoring system rigorously tracks audit findings and ensures that recommendations are fully implemented. BPD also monitors and tracks implementation of the President's Management Agenda initiatives. In addition to regular briefings to senior management, the process includes a web page to share information with employees, scores on each agenda item, and reports on our progress to reach 'green'.

Evidence: GAO Audits of the Schedule of the Federal Debt for 1994-2002; Public Debt Management Control Plan for FY 2003-FY 2007; Public Debt Management Control Program Documentation; Mitre Corporation Review of IT Security Program, 2003.

Has the program demonstrated adequate progress in achieving its long-term outcome performance goals?

Explanation: The bureau recently submitted, and OMB approved, four long-term performance goals. Since the goals are new for FY 2005, it is premature to suggest BPD has achieved progress towards the four goals (see measures tab and question 2.1).

Evidence: FY 2005 OMB Budget submission

Does the program (including program partners) achieve its annual performance goals?

Explanation: Each year BPD achieves its annual goals and adjusts them to meet new challenges. The average times to release auction results and complete customer service transactions, for example, have reduced over the past several years.

Evidence: FY 2004 Budget and Prior Year Submissions.

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program performance goals each year?

Explanation: Public Debt has a strategic planning process designed to identify opportunities for program efficiency and cost reduction. For example, BPD, in cooperation with Federal Reserve management, found that it could reduce call center staff and maintain its quality service to its customers. Additionally, BPD encourages the issuing agents of its savings bonds to take advantage of postal service discounts by pre-sorting its bonds.

Evidence: Bureau of the Public Debt Programs and Timeline; Strategic Plans; Treasury's Vision for Promoting a Direct Financial Relationship with Investors; Information Resource Management (IRM) Plans for FY 1998-2002.

Does the performance of this program compare favorably to other programs, including government, private, etc., that have similar purpose and goals?

Explanation:  

Evidence:  

Do independent and quality evaluations of this program indicate that the program is effective and achieving results?

Explanation: The General Accounting Office (GAO) annually audits debt related financial statements and covers the summary and subsidiary accounting systems that are used to account for the debt. Further, independent public accountants hired by the Office of the Inspector General (OIG) annually audit and review our Federal Investment Program. The OIG also performs periodic program reviews.

Evidence: GAO Audits of the Schedule of the Federal Debt for 1994-2002; Public Debt Management Control Plan for FY 2003-FY 2007; Mitre Corporation Review of IT Security Program, 2003; various OIG reports (OIG-03-009, OIG-02-120, OIG-02-116).