ANNUAL REPORT FY 2001
FINANCIAL PERFORMANCE REPORT
FISCAL YEAR 2001
FY 2001 was a very successful year for the Department in terms of financial management. This section of the report highlights DOLs key financial outcomes, and includes the required elements for Accountability Reporting. As was done in FY 1999 and FY 2000, the Annual Performance Report has been combined with the Accountability Report (per the Reports Consolidation Act). The FY 2000 Annual Report was very well received, ranking fourth government wide in the Mercatus Center Review, and earning the Association of Government Accountants Certificate of Excellence in Accountability Reporting one of only three cabinet agencies to achieve this designation.
The following section provides legislative reporting and other financial performance information pertaining to:
- MANAGEMENT OF DOLS FINANCIAL RESOURCES
- FINANCIAL STATEMENT AUDIT FINDINGS UNDER THE CHIEF FINANCIAL OFFICERS ACT (CFOA)
- THE FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT ACT (FFMIA)
- FEDERAL MANAGERS FINANCIAL INTEGRITY ACT (FMFIA)
- MANAGEMENT REPORTING UNDER THE INSPECTOR GENERAL ACT AMENDMENTS
- DOL FINANCIAL SYSTEMS AND OPERATIONS
Modernization of the Departments Core Accounting System
Electronic Funds Transfer (EFT)
User Charges Policy Review Process
Electronic Data Processing (EDP) Systems
Prompt Payment Act
Government Wide Involvement
- FY 2001 DEPUTY INSPECTOR GENERALS REPORT
- CONSOLIDATED FINANCIAL STATEMENTS
Principal Financial Statements and Notes
Required Supplementary Stewardship Information
Required Supplementary Information
The Office of the Chief Financial Officer (OCFO) established four agency strategic goals in FY 1999 to support the goal of maintaining the integrity and stewardship of DOLs financial resources. These are:
- to provide leadership and advice on financial management matters to the Secretary of Labor, DOL program managers, and the financial community government-wide;
- to protect and effectively manage the Departments financial resources;
- to assure high quality financial management products and services are delivered to OCFO customers; and,
- to recruit, train, and maintain an effective financial management staff.
Following are some of the highlights and key results in each of these strategic areas:
OCFOs goals with regard to financial management leadership are to provide a strategic focus for financial management issues and to influence financial outcomes in a positive manner.
- The Department earned its fifth consecutive unqualified (clean) audit opinion for consolidated financial statements.
- Through leadership of DOLs CFO Advisory Council and regular consultations with Executive Staff and Administrative Officers, OCFO provided a critical forum for the identification, discussion and resolution of financial issues and concerns.
- OCFOs contribution to strategic planning for financial management provided a balanced view of the strengths and challenges faced by the Department, as envisioned by the Government Performance and Results Act.
The Secretary, the Congress, and the American people must have confidence that Departmental resources are used as intended with the greatest efficiency. OCFO continued to respond well to the many new laws, regulations, policies and procedures that challenge our financial management resources.
- All of the Department's financial management systems were brought into compliance with FFMIA, the result of close cooperation between the OCFO and DOL program agencies.
- The OCFO refocused its efforts on managerial cost accounting, which will result in improved cost information and enhanced reporting capabilities for decision-makers across all DOL program areas.
- OCFO took aggressive action to address weaknesses in accounting reconciliations to meet strict new Treasury and OMB requirements.
- The Department maintained its performance during FY 2001 with regard to debt referrals and electronic payments. Referring 92 percent of eligible debt to Treasury, and paying over 96 percent of its salary, travel, and grant payments electronically.
- OCFO led the production of the DOL Accountability Report for 2000, which earned the Certificate of Excellence in Accountability Reporting from the Association of Government Accountants.
Products and Services
The OCFO manages and operates the Departments core accounting and payroll systems. Many important enhancements were made to these critical products during the past fiscal year.
- Over 13,500 DOL employees are now reporting their time and attendance electronically, reducing processing costs and providing more timely and accurate information.
- OCFO continues to work with OASAM in developing a new payroll system which will be integrated with DOLs Human Resources system. We anticipate the full payroll system, including a new time and attendance system, to be implemented in FY 2002.
Human Resources Management
- OCFO invested in the development and delivery of innovative professional development events for financial management employees throughout the Department. This included university level courses provided via the Internet and training specifically focused on areas of operational weakness. The agency continues to work with a private vendor to design and deliver web-based training to OCFO employees for a number of financial management systems.
- OCFO made substantial progress in continuing its Financial Management Careers Program. This initiative, which began in DOL, expanded to become a government wide program during FY 2000, and continued to grow during FY 2001.