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USAID has begun a sweeping reform of its business processes and management systems. The Administrator has directed the reform effort be led by a new Business Transformation Executive Committee (BTEC), chaired by the Deputy Administrator and composed of senior executives from all Agency bureaus. The BTEC, modeled on commercial best management practice groups, will guide and oversee teams of USAID staff and outside consultants who are reviewing field and headquarters business processes. The teams will propose specific improvements to transform the Agency into an organization that performs better by using modern management approaches and technology. Implementation of major reforms will begin late in FY 2002.
While proposals for major change must await the results of the current reorganization effort, the Agency has already implemented or planned a number of important reforms for FY 2002 and FY 2003. The following sections describe accomplishments in FY 2001 and plans for this fiscal year and FY 2003.
FY 2001 Accomplishments
- Implemented the Agency's new accounting system, Phoenix, at headquarters and linked the system to the field accounting system, the procurement system, and supporting systems for credit and grants. The new system permits financial reporting on program-level objectives.
- Expanded recruitment efforts, enabling the Agency--for the first time in a decade--to replace the number of employees who departed through retirement or resignation.
- Increased investments in critical worldwide information technologies and computer security.
- Established a Contract Review Board to examine all major proposed contract actions at headquarters to assure consistency and correctness.
- Implemented a new, automated contract-writing system at headquarters to ease preparation of procurement documents and facilitate the collection of statistical information.
- Expanded and enhanced procurement training for both USAID employees and contractors and grantees.
- Implemented a headquarters reorganization to establish functional pillar bureaus to provide clearer central focus to USAID's major program goals.
FY 2002 Planned Accomplishments
- Establish and implement an Agency-wide Business Transformation Executive Committee to guide and oversee management reforms.
- Undertake a comprehensive review of field and headquarters business processes and procedures.
- Develop and implement improved financial reporting to permit managers and external customers to receive more timely and accurate information on USAID programs at the strategic objective level.
- Implement improvements to the core accounting system at headquarters, including adding the capability to handle web-based queries from vendors and electronic invoicing.
- Activate a cost-accounting system capable of allocating the full cost of headquarters programs and operations to Agency goals.
- Complete accounting system security certifications at 50% of overseas accounting stations.
- Implement a web-based tool for workforce reporting to reduce workload and improve the accuracy of human resource statistics.
- Expand recruitment efforts, targeting junior professionals in the Foreign Service and key skills areas (procurement and information technology) in the Civil Service.
- Prepare and implement a competition plan to facilitate private sector entities to compete for selected commercial functions currently carried out by USAID staff.
- Review (by the Contract Review Board) of all proposed overseas (field) contracts of $10 million or higher to assure consistency and correctness.
- Implement worldwide the new contract-writing system.
- Update and enhance the Agency plan for continuity of operations (COOP) in the event that USAID headquarters needs to be evacuated for an extended period of time.
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FY 2003 Projected Accomplishments
The results of the current Agency reviews will produce more specific reform plans that will be implemented in FY 2003. The plans will be coordinated with government-wide efforts in areas such as e-government to assure the most effective use of resources. The following reflects only currently planned efforts to be carried out in FY 2003.
- Develop and implement a comprehensive workforce plan for USAID's Civil Service, and enhance the existing Foreign Service workforce plan.
- Provide better information technology tools to USAID's overseas staff by completing the upgrade of USAID's worldwide network and desktop information technology operating systems.
- Expand use of government credit cards worldwide to simplify financial transactions and record-keeping.
- Complete accounting system security certifications at all remaining overseas accounting stations.
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