fiscal law proposal mary margaret evans director draft

Fiscal Law Proposal

Mary Margaret EvansDirector

DRAFT

Change Management Center

2DRAFT

Fiscal Law Background

Fiscal law is the body of law that governs the availability and use of federal funds

Only Congress has the ability to appropriate funds to be spent by federal agencies, and can dictate:

– Purposes for which the money is spent

– Length of time the funds may be available

– Maximum amount an agency may spend on particular elements of a program

Strict limitations are imposed on managers’ flexibility to spend or allocate funds


2DRAFT

Assumptions: Impacts on Federal Agencies

Current fiscal law represents a set of cumbersome laws, regulations, and policies that are perceived by federal agencies as excessively:

– Complicated

– Legislated

– Regulated

– Audited

– Ambiguous

A “wall-to-wall” review of fiscal law has not occurred


4DRAFT

Challenge: Addressing Fiscal Law Impediments in DoD

Altering the perception of and making improvements to the current DoD fiscal environment requires assembling the justification necessary to prompt reform, through:

– Regulation changes

– Process improvements

– Statutory changes

DoD IG Audits

– Limited integration of DoD financial systems create and perpetuate inefficiencies

– Six year backlog of contract closure actions

– DFAS has 148 debt collection cases worth $12.6 million

GAO

– Contractors refunded $488 million in overpayments in FY 2001– DoD business practices remain ineffective


5DRAFT

Approach: The “Section 800” Model Creation of an Advisory Panel to identify, justify, and recommend legal and

structural changes to complex DoD issues

– Consensus for change by utilizing appropriate subject matter and support resources

“Section 800” Panel focused on streamlining DoD procurement

– Panel Membership: recognized public/private experts in the law

– Final Report: Analysis of each law, including:

• Legislative history

• Description of current role of the statue

• Recommendation to retain, repeal, or modify

“800” Panel Results

– 600 statute changes/300 repeals

– Enactment of FASA, FARA(Clinger-Cohen)


6DRAFT

Approach: Advisory Panel Approach for Fiscal Law Modernization

Executive Sponsor – project champion Appointed Advisory Panel

– Membership Sources include:– Comptroller (Modernization, Audit, Budget, Policy)– DoD Financial Community (DFAS, DCMA, etc.)– Service Branches– DoD Agencies– General Counsel– Legislative Affairs– Private Sector Trade Associations– Other DoD/non-DoD members determined by Executive Sponsor

Change Management Center – Contractor support staff– DoD Technical Experts (current/retired)– Subject Matter Experts – DoD and private sector


7DRAFT

Approach: Advisory Panel Approach for Fiscal Law Modernization

Project Organization

DoD Executive Sponsor

Fiscal Law Advisory

Panel

Change Management Center Team


8DRAFT

Approach: Project Activities & Timeframe

Phase I – Scope Identification (10/1/02 – 12/31/02)

Identify issues for review - examples:

– Prompt Payment

– Debt Collection

– Financial Modernization Support Process

Conduct interviews to understand the current fiscal environment

– DoD managers

– Congressional staff

– Private sector experts

Conduct research and analysis of applicable and most critical areas of statute, regulation and process

Define scope of analysis


2DRAFT


Phase II –Recommendation Development (1/1/03 – 3/1/03) Establish Advisory Panel

Establish Staff, SME, Technical Expert Working Groups– Review and validate project scope

– Identify issues

– Propose recommendations for change• Process or policy

• Regulatory

• Legislative

Provide IPRs to Advisory Panel on Working Group progress

Finalize Working Group recommendations


20DRAFT


Phase III – Final Report & Action Model Implementation Plan (3/1/03 – 8/31/03)

Conduct Advisory Panel review

Prepare final report

– Background

– Analysis and justification

– Recommendations

– Outreach and Communications Plan

– Draft Legislative/Regulatory Language

– Implementation Plan

Submit recommendations for FY05 President’s Budget


22DRAFT

Next Steps

Executive Sponsor Drives Change

– Establish Executive Sponsor/CMC Partnership

– Identify Scope

– Identify DoD Technical Resources

– Identify/Establish Advisory Panel

fiscal law proposal mary margaret evans director draft

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