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	Statement of the Administrator Summary of FY 2006 Budget Request Program Highlights Management Improvements USAID Support Budget Operating Expenses Capital Investment Fund Working Capital Fund Operating Expenses, Inspector General Foreign Service Retirement and Disability Fund International Disaster and Famine Assistance Transition Initiatives
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Capital Investment Fund

USAID utilizes the Capital Investment Fund to modernize and improve information technology (IT) systems and finance construction of USAID buildings overseas in conjunction with the Department of State. Prior to FY 2003, these activities were funded from the OE account. These no-year funds provide greater flexibility to manage investments in technology systems and facility construction not allowed by the annual appropriation for Operating Expenses.

Information Technology (IT)

Separating improvement funds from on-going operations funds allows the Agency funding certainty independent of operational cost fluctuations. In FY 2006, USAID will support the following IT systems and infrastructure initiatives:

IT Systems

Joint Acquisition and Assistance Management System: Under the Joint Acquisition and Assistance Management Systems (JAAMS), USAID and the Department of State will use a common platform to build a comprehensive acquisition and assistance management system to support planning, collaboration, tracking, and administering acquisition and assistance awards. This will enable USAID and State to manage successfully international economic development and foreign and humanitarian assistance programs.

Joint Financial Management System: Under the Joint Financial Management System, USAID and the Department of State will utilize a common technical platform to manage all domestic and overseas financial management activities starting in FY 2006. This investment combines the former State Department Global Financial Management System and USAID Phoenix investments into one common technical platform located at the State Department Financial Services Center in Charleston, SC.

Financial Systems Integration (Phoenix): USAID will continue modernizing its business systems worldwide through the expansion of Phoenix, the Agency's web-based and integrated financial management system. Coordinated through joint USAID and Department of State planning efforts, Phoenix will provide accurate financial information to support Agency decisions to achieve USAID/State's strategic goals and objectives in a more cost efficient and effective manner. The project funds both the ongoing support for currently installed financial systems and upgrades needed for collaboration with the Department of State.

E-Gov Initiatives: As a contributing partner, USAID will provide funding for several E-gov initiatives to improve agency operations and benefit from the cost effectiveness of electronic government technologies. The projects undertaken include:

E-Authentication -- A Federal government multi-agency initiative to establish a method for satisfactorily establishing "identity" for the purpose of e-government transactions and establishing common interoperable authentications solutions for all e-government projects.

E-Grants -- A Federal government multi-agency initiative to create an electronic grants portal for grant recipients and grant-making agencies.

E-Training -- A Federal government multi-agency online initiative to provide employees access to training products and services to help them perform their jobs and support USAID goals.

E-Travel -- A Federal government multi-agency initiative to create a common Federal-government travel management system to allow for simplified processes and less expensive operations.

Integrated Acquisition Environment -- A Federal government multi-agency project to facilitate the sharing of common data elements to enable agencies to make more informed procurement, logistical, payment, and performance decisions and maximize use of e-market approaches.

Recruitment One-Stop -- A Federal multi-agency project that improves the hiring process by improving the functionality of the Federal automated employment information system.

IT Infrastructure

IT Technology Refresh: USAID will upgrade its IT equipment to modernize its systems, eliminate critical security vulnerabilities, and fully participate in joint systems integration efforts with the Department of State. Due to prior budget constraints, the Agency's infrastructure is becoming increasingly outdated, putting planned systems and business operations at risk. This technology refresh (which refers to the industry practice of upgrading aging hardware and software) will help ensure the reliable performance of USAID's IT infrastructure.

Facilities Construction

The Secure Embassy Construction and Counterterrorism Act of 1999 requires the construction of new USAID office facilities to be collocated on embassy compounds when new embassies are constructed. The FY 2006 request of $55.8 million will support full USAID participation in the second year of the Capital Security Cost Sharing Program. In FY 2006, the following seven new embassy compounds are scheduled in countries with USAID presence: Kigali, Rwanda; Lusaka, Zambia; Mexico City, Mexico; Sarajevo, Bosnia; Abuja, Nigeria; Accra, Ghana; and Tbilisi, Georgia. This funding is critical to provide secure, safe and functional workspaces for USAID employees and comply with the Act of 1999.

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