U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

2004 Presidential Award for Management Excellence

Department of Education

Improved Financial Performance
Agencywide Performance

The Department of Education (ED) helps nearly 76 million primary- and secondary-school students obtain the education they need to lead productive, satisfying lives. ED assists in the development of educational programs for states, schools, communities, and institutes of higher education, and provides student financial assistance. ED is unique in that it manages the third-largest discretionary budget, with the smallest number of employees, of any cabinet-level agency.

ED was the first cabinet-level agency to pass all OMB reporting requirements and attain a green status score on the President’s Management Agenda (PMA) for all elements of Improved Financial Performance, jumping directly from red. Through the delivery of timely and accurate financial data, administrative expenditures have been reduced to about 2 percent of the total budget—allowing 98 cents of every dollar to be passed on to beneficiaries.

ED’s Office of the Chief Financial Officer (OCFO) provides financial information to program managers so they can make informed decisions. Resources such as the Fast Facts monthly management report, the Federal Student Aid Executive Dashboard student aid application report, and other electronic systems help integrate financial data with management decision-making processes. ED has also improved its financial reporting and accountability. Financial statement intervals decreased from yearly to monthly and were supplemented by quarterly management reporting protocols, all embracing the principles of the PMA.

Information ranging from legacy financial data to travel management is now available 24/7 through the enterprise-wide Education Central Automated Processing System (EDCAPS) on the ED Intranet. Other Web-based –e-government applications facilitate business between ED and its clients and vendors, as well as help staff perform their duties. A new performance-based data management system, the Education Data Exchange Network (EDEN), will allow managers to quantify program and policy effectiveness.

ED has taken steps to institutionalize its new practices. ED conducted extensive evaluations to ensure that the transition to the new financial reporting system went as smoothly as possible. Quality assurance committees ensure that OCFO management is fully informed about critical audit issues. One-ED, the Department’s human capital management plan, will ensure that skilled, high-performing employees are available and deployed appropriately. The intensive Financial Management Certificate Program (FMCP), a key example of "best practices" programs being developed to improve the culture of accountability, is being adopted by other agencies. Furthermore, many of the guidelines in the ED's “Blueprint for Management Excellence” are being adopted by the GAO and OMB, and are being considered for government-wide implementation.