IMANAGE Key Design Decisions

1
I-MANAGE Key Design Decisions
Integrating Budget and Performance

• Governing regulations, policies, and guidance
• Factors to consider
• Proposed system design
• Proposed business / policy decisions

2
Integrating Budget and Performance
Governing Regulations, Policies, and Guidance

• Requirement for a Strategic Plan
• "Government Performance and Results Act of 1993
  enacted January 5, 1993.
• Chapter 3 of title 5, United States Code, Sec.
  306. Strategic plans, paragraph (a) No later
  than September 30, 1997, the head of each agency
  shall submit to the Director of the Office of
  Management and Budget and to the Congress a
  strategic plan for program activities.

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Integrating Budget and Performance
Governing Regulations, Policies, and Guidance -
GPRA

• Requirement for a Strategic Plan "Such plan
  shall contain-
• A comprehensive mission statement covering the
  major functions and operations of the agency
• General goals and objectives, including outcome -
  related goals and objectives, for the major
  functions and operations of the agency
• A description of how the goals and objectives are
  to be achieved, including a description of the
  operational processes, skills and technology, and
  the human, capital, information, and other
  resources required to meet those goals and
  objectives
• A description of how the performance goals
  included in the plan required by section 1115(a)
  of title 31 shall be related to the general goals
  and objectives in the strategic plan
• An identification of those key factors external
  to the agency and beyond its control that could
  significantly affect the achievement of the
  general goals and objectives and
• A description of the program evaluations used in
  establishing or revising general goals and
  objectives, with a schedule for future program
  evaluations.

4
Integrating Budget and Performance
Governing Regulations, Policies, and Guidance -
GPRA

• Requirement for a Strategic Plan
• "(b) The strategic plan shall cover a period of
  not less than five years forward from the fiscal
  year in which it is submitted, and shall be
  updated and revised at least every three years.
• "(c) The performance plan required by section
  1115 of title 31 shall be consistent with the
  agency's strategic plan. A performance plan may
  not be submitted for a fiscal year not covered by
  a current strategic plan under this section.

5
Integrating Budget and Performance
Governing Regulations, Policies, and Guidance -
GPRA

• "Government Performance and Results Act of 1993
  enacted January 5, 1993.
• Chapter 11 of title 31, United States Code, Sec.
  1115. Performance plans, paragraph (a) In
  carrying out the provisions of section
  1105(a)(29), the Director of the Office of
  Management and Budget shall require each agency
  to prepare an annual performance plan covering
  each program activity set forth in the budget of
  such agency.

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Integrating Budget and Performance
Governing Regulations, Policies, and Guidance -
GPRA

• The annual performance plan shall
• Establish goals to define the level of
  performance to be achieved by a program activity
• Express such goals in an objective, quantifiable,
  and measurable form unless authorized to be in an
  alternative form under subsection (b)
• Briefly describe the operational processes,
  skills and technology, and the human, capital,
  information, or other resources required to meet
  the performance goals
• Establish performance indicators to be used in
  measuring or assessing the relevant outputs,
  service levels, and outcomes of each program
  activity
• Provide a basis for comparing actual program
  results with the established performance goals
  and
• Describe the means to be used to verify and
  validate measured values.

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Integrating Budget and Performance
Governing Regulations, Policies, and Guidance -
GPRA

• Terms and Definitions Within GPRA
• Outcome measure' means an assessment of the
  results of a program activity compared to its
  intended purpose
• Output measure' means the tabulation,
  calculation, or recording of activity or effort
  and can be expressed in a quantitative or
  qualitative manner
• Performance goal' means a target level of
  performance expressed as a tangible, measurable
  objective, against which actual achievement can
  be compared, including a goal expressed as a
  quantitative standard, value, or rate
• Performance indicator' means a particular value
  or characteristic used to measure output or
  outcome
• Program activity' means a specific activity or
  project as listed in the program and financing
  schedules of the annual budget of the United
  States Government and
• Program evaluation' means an assessment, through
  objective measurement and systematic analysis, of
  the manner and extent to which Federal programs
  achieve intended objectives.

8
Integrating Budget and Performance
Governing Regulations, Policies, and Guidance

• OMB Circular No. A-11, Part 6 Preparation and
  Submission of Strategic Plans, Annual Performance
  Plans, and Annual Performance Reports
• The strategic plans provide the framework for
  implementing all other parts of this Act (GPRA)
  and set out a course of action and accomplishment
  over the long term.
• Complementing the strategic plans are annual
  performance plans that set annual goals with
  measurable target levels of performance, and
  annual program performance reports that compare
  actual performance to the annual goals. Together,
  these should define a course to improve the
  performance of government programs and
  operations, and the basis for the Federal
  Government to manage for results.

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Integrating Budget and Performance
Governing Regulations, Policies, and Guidance

• Other guidance is found in
• The Presidents Management Agenda
• OMBs Program Assessment Rating Tool (PART)
• FASAB Statement of Federal Financial Accounting
  Standards Number 4 Managerial Cost Accounting
  Concepts and Standards for the Federal
  Government.

10
Integrating Budget and Performance
Factors to Consider

• Current Performance Management Systems
• Joule is the system provided by the Office of
  Program Analysis and Evaluation (PAE), ME-20 for
  development, maintenance and administration of
  the Departments Annual Performance Plans.
• Other programmatic or site specific systems are
  in use, including Environmental Managements
  Integrated Planning, Accountability and Budget
  System (IPABS).
• The I-MANAGE Standard Budget System is not
  scheduled for deployment until sometime in early
  FY2006.
• This should be the target system for design
  purposes.
• One package identified as a candidate for this
  system (RGII) has integrated performance metrics
  built into the package.
• The Oracle e-Business Suite does not provide a
  federalized performance management module.
• The proposed design (systematic and
  organizational) for managerial cost accounting
  within the I-MANAGE Systems must be considered in
  the context of this design decision.

11
Integrating Budget and Performance
Proposed System Design

• Joule will continue as an interim solution.
• Currently built upon a non ANSI compliant,
  proprietary data structure with limited import /
  export capability.
• Eliminates tight integration as a possibility.
• In all probability, would not align with the
  Enterprise Architecture.
• The vendor has indicated that a new version of
  the application will be ported to Microsoft SQL
  Server, and Oracle.
• Targeted for end of FY2003.
• Currently, in technical jargon, this is
  virtual-ware.
• Still, we will work with the Office of PAE to
  evaluate
• the product if/when it is released.

12
Integrating Budget and Performance
Proposed System Design

• We will continue to work with Oracle to determine
  the status of a fully integrated, federalized
  performance management solution.
• We will continue to review the RGII package
  capabilities to determine the feasibility of this
  solution for the Departments requirements.
• We will further analyze and review functionality
  in the IPABS system to determine its feasibility
  as an enterprise solution to address DOE
  requirements.
• In parallel with those activities, and depending
  on the outcome of todays session, we will
  develop a physical data model that fully
  integrates with the Oracle Federal Financial
  Applications database structure.

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Integrating Budget and Performance
Proposed System Design
STARS Oracle Federal Financials V11i
General Ledger
Purchasing

• Several questions must be answered
• Where will performance metrics be stored?
• How many levels are required?
• Will the system provide for multiple sets of
  performance metrics?
• What degree of flexibility will be available in
  designing and maintaining performance metrics?
• How will the performance hierarchy be linked to
  the AFF?
• What reporting will be necessary?
• How will cross-cuts be handled? Congressional
  earmarks?

Accounts Payable
Accounts Receivable
Fixed Assets
14
Integrating Budget and Performance
Proposed System Design

• Where will performance metrics be stored?
• As described earlier, performance metrics will
  reside in Joule, the new I-MANAGE Standard Budget
  System (e.g. RGII), or a new Performance Database
  tightly integrated with STARS and the new
  Standard Budget System.
• How many levels are required?
• There are no practical physical limitations to
  the number of levels available, however, policy
  will dictate the number of levels required within
  a given set of performance metrics.
• Will the system provide for multiple sets of
  performance metrics?
• Yes. The system will allow authorized end-users
  to establish different sets of performance
  metrics based on their individual needs.
• These will be logically segregated as
  appropriate. For example, for each fiscal year,
  there will exist a unique set of performance
  metrics for the Annual Performance Plan as
  prescribed by GPRA and OMB Circular A-11. These
  will exist as a logical set of metrics,
  accessible as a whole, segregated from other
  sets of performance metrics.

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Integrating Budget and Performance
Proposed System Design

• What degree of flexibility will be available in
  designing and maintaining performance metrics?
• Obviously, this depends on the solution selected
  and deployed, but the general idea is to provide
  great flexibility to build performance
  hierarchies, tabular performance structures, and
  stand-alone performance structures.
• The system should provide the capability to
  cross-link and otherwise group performance
  metrics in multiple ways.
• The system should protect the user from creating
  invalid rollups.
• How will the performance hierarchy be linked to
  the Accounting Flex-field (AFF)?
• Through the indexing features available within
  the relational database technology.
• The system should provide the ability to link to
  any segment level within the AFF, or to logical
  structures within a given segment (e.g. summary
  roll-ups, parent/children rollups).

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Integrating Budget and Performance
Proposed System Design

• What reporting will be necessary?
• Yet to be determined, but with proper data
  modeling and system design, the reporting
  possibilities will be extremely powerful.
• Detailed reporting specifications will be
  developed.
• How will cross-cuts be handled?
• Through standard functionality available within
  the Oracle Applications software, we will be able
  to handle some of the existing cross-cuts.
• In the position paper, we discuss some issues
  associated with policy changes that would
  potentially require policy changes.
• Congressional earmarks?
• Through standard functionality within the Oracle
  software, to the greatest extent possible

17
Integrating Budget and Performance
Proposed Business Process Changes

• We can provide an integrated systematic solution,
  but the entire process of performance based
  budgeting must be explored in detail as part of
  the Standard Budget System Implementation
  process.
• Understanding the concept of cost accounting, and
  what constitutes full costs will be discussed in
  tomorrows session, however, integration of
  performance, budget, and costs hinges on
  agreement as to what each of these variables is
  comprised of.