As Good As It Gets?
FASAB -NAPA Study and Reporting Model Next Steps
Wendy Payne, Executive Director
May 27, 2014
Views expressed are my own. The Board expresses its views in official publications.

Melvin Udall: What if this is as good as it gets?
Financial Information Just Wants to Go Dancing .
Carol Connelly: Do you want to dance?
Melvin Udall: I’ve been thinking about that for a while.
Carol Connelly: [standing up] Well?
Melvin Udall: No.

NAPA Finding -Data are Highly Accurate and Granular
Analyze and transform into actionable information
Link budget, costs, and performance

NAPA Finding -Need Leadership, Culture Change, & Incentives to Use Financial Data More Effectively

Leadership instills a culture that pays attention to costs and performance

Create structures and incentives that encourage employees to carefully examine costs and performance

NAPA Finding -CFO Support for Decision-making Valuable and Evolving
CFO organizations increasingly need:
to offer valuable decision-making support
to evolve to a more modern approach that features sophisticated cost and performance analysis

NAPA Recommendations
Strengthen the CFO staff’ s:
Рknowledge of program operations (be business partners)
– data analytics skillset (augment traditional accounting)

Federal agencies should link budgeted resources to costs, outputs, and performance.

NAPA Recommendations
Financial and programmatic dashboards tailored to the decision-making requirements of executives.
Integrate financial, operational, and HR-related information in systems.
Congress and OMB should create specific legislative and regulatory catalysts to focus agency attention on developing clear cost and outcome data.

What If We Believed in Management in Public Organizations? Skills/Knowledge Needed by Public Managers
Report on the òstate of the organization’ , e.g., candid descriptions of successes, failures, future prospects, even if the politicians don’ t want to hear them.¬†Skills/Knowledge needed: data analysis and presentation; communication, both written and oral; interpersonal skills.
Ask your political bosses for directions ..
Report on gaps between the directions received from your bosses and institutional capacity.¬†Skills/Knowledge needed: communication îboth written and oral; data analysis and presentation; ability to manage and account for organizational resources; knowledge of policy options and cost-benefit analysis.
Continued
Report on the present and future cost of following the directions you’ ve been given.¬†Skills/Knowledge needed: ability to manage financial resources and estimates; communication îboth written and oral; data analysis and presentation.
Report regularly on the organization’ s productivity, e.g., cost-effectiveness, employee and contractor performance, state and use of equipment and property.¬†Skills/Knowledge needed: data analysis and presentation; cost-benefit analysis; performance measurement; ability to manage organizational resources.
Look for opportunities to improve the performance of the public sector as a whole
Mary R. Hamilton, Ph.D. is a senior executive in residence at the University of Nebraska at Omaha
From PA Times

What We’ ve Learned from Users
Contextual Information
Budget Information and Comparison of Budget to Actual (SBR hard to understand.)
Accrual Information Useful to Citizens
Hold managers accountable for more than use of appropriations
Want to know the cost of programs and what they got
Interested in long-term needs (liabilities)
Various perspectives on cost are being sought and offered (but rarely cost of programs)
Revenue
Whether exchange revenues cover related costs
Who pays what taxes
What did we get and how much did it cost? Performance information!
Users want broad context -effect on the nation.
How Users Want Information
Interactive
Plain-Language
Charts, Graphs, or Pictorial Illustrations
Brief Video
Summarized information with timely access to details.
Easily accessible
Ability to perform queries
Where you can find out more about the reporting model project:

www.fasab.gov/projects/active-projects/concepts-the-financial-report/
My Views -Two Key Paths to Take

1. Use the cost data
For Accountants -Interactive Cost Reporting
For Leaders -Linking budget, cost and performance

2. Be teachers
Improve communication of key information to relevant users (one size does not fit all)
Visualize the message

Statement of Net Cost
What is cost ?
Which cost perspective is most useful to whom?
Does the disaggregation need to be audited?
How to direct people to the cost perspective they need?
How to offer trend information?

In FY 2013, we needed $4.346 trillion
To pay for goods and services, acquire assets and reduce some debts.

Where did we get $4.346 trillion?

On the Cusp of Greatness!
Melvin Udall: I might be the only person on the face of the earth that knows you’re the greatest woman on earth. I might be the only one who appreciates how amazing you are in every single thing that you do, and how you are with Spencer, “Spence,” and in every single thought that you have, and how you say what you mean, and how you almost always mean something that’s all about being straight and good. I think most people miss that about you, and I watch them, wondering how they can watch you bring their food, and clear their tables and never get that they just met the greatest woman alive. And the fact that I get it makes me feel good, about me.|¬†
Contact and Website Information
General inquiries can be directed to [email protected]
Phone: 202 512-7350
www.FASAB.gov
Listserv (sign up for emails)
Exposure Drafts
Active Projects -assigned staff
Contact me at:
[email protected]
(202) 512-7357

Categories: News