HUD's FY 99 Budget
Congressional Justifications
Chief Financial Officer

Salaries and Expenses

SCOPE OF ACTIVITY

The mission of the Office of the Chief Financial Officer (CFO) is to lead the Department's Headquarters and Field Office officials toward the understanding and practice of sound financial management in program development and operations, and in the stewardship of public resources. The CFO advises the Secretary on all aspects of financial management. The CFO ensures that the Department establishes and meets financial management goals and objectives, and that the Department is in compliance with financial management legislation and directives. The scope of activity cross-cuts the entire Department. The CFO establishes policies and standards for development, maintenance, operation and evaluation of the Department's financial management systems, including: budget and accounting systems, internal control systems, financial reporting systems, asset and credit management systems, and systems to audit compliance with financial management and related requirements. The CFO also provides accounting services for all administrative activities of the Department and for all operating programs, except for those administered by the Government National Mortgage Association and FHA activities including mortgage insurance accounting. CFO also has responsibility for overseeing the Departmental implementation of the Government Performance and Results Act GPRA). The Secretary may transfer to the Departmental Salaries and Expenses account up to 1 percent of the amount appropriated in any account for evaluation and monitoring of programs, collecting and maintaining data, and for such activities as may be required by GPRA.

WORKLOAD

The workload of the Office of the Chief Financial Officer is essentially defined by the following key objectives:

-- establish and maintain integrated financial management systems;

-- improve Departmental management of asset and credit management functions;

-- develop a strong internal control program and address material weaknesses in the Department;

-- produce audited consolidated financial statements; and

-- develop uniform financial management policies and procedures.

Workload elements for accounting operations under the CFO Office of Accounting and in the Field are quantified in the following table.

a/ In fiscal year 1996, Housing field staff commenced performing these reviews.

b/ Reduction due to the roll out of Headquarters payment of invoices to the Field. Headquarters reduction added to Field documents processed.

c/ Field numbers subject to transfer of Headquarters functions to Field. Consolidation of Field accounting discussions and HUDCAPS implementation.

1. Reservations/Obligations documents processed by the CFO are being reported under

Fund Documents processed. The decrease in volume is due to the transfer of this

function to other program offices.

Workload elements for the Audit Resolution and Management Control operations in the Field are quantified in the following table:

TRAVEL

The table below identifies travel requirements unique to this activity.

Travel funding for this activity is required to fully carry out CFO responsibilities for improving Departmental financial management. CFO travel will focus attention on program delivery operations at the Field Office level and will provide oversight and review for: asset and credit management; debt collection; resolution of audit findings and internal control weaknesses; and test and establish internal controls.

A major initiative of the Office of the CFO is to establish financial management skills and expertise in the field through the Offices of the Field Comptroller. The approved reorganization of the Office of the CFO on May 14, 1995, allows for the Deputy CFO for Accounting to provide policy direction, review and coordination of the fiscal and accounting responsibilities of the Department and, with the assistance of the ten Field Accounting Divisions, provide the accounting services for all administrative activities of the Department and for all operating programs, except for those administered by Government National Mortgage Association and FHA activities including mortgage insurance accounting. The CFO will also require expending travel funds due to the planned downsizing and restructuring of its Field component. Consideration to the realignment of the Office of Budget within the CFO organization has been reflected in the Budget Estimates for Fiscal Years 1998 and 1999.

CONTRACTS

Management Studies. The continued development and implementation of an exemplary system of program internal controls, material weakness verification reviews, integration of financial management information systems, contracting for cost accounting services, reporting on cash and credit management, and credit reform guidelines will be accomplished through contract services.

Technical Services. These funds are for specialized technical support within the CFO. For example, Technical Services funds will be used to support the following:

National Science Foundation (NSF), in which the Department has a Memorandum of Agreement (MOA) authorizing fiscal year payments for FinanceNet Services that support the independent public Internet network established by the Vice President's National Performance Review and operated by the NSF as the electronic document clearing house of the Joint Financial Management Improvement Program;

Department of Justice (DOJ), in which the Department has a Reimbursable Agreement (RA), provides the CFO with data preparation and microfilm services for accounting records on several Departmental programs;

Professional Software Consortium, Inc., provides the CFO with an annual maintenance agreement and software upgrade(s) for the Civilian PCS Program for the Department's National Relocation Center;

Financial Systems Integration (FSI) Project, in which contractor support will be required for data conversion "clean-up"; and

Best Temporary Services, Inc., provides temporary clerical and accounting support for the

CFO's Office of Budget where there are several vacant positions in these areas.