AGA TOPICS Newsletter

Research Program Update

AGA’s CPAG Research Program creates research projects of value to governments, industry and the AGA membership. Two major types of research are conducted under the program: sponsored and cooperative, with cooperative tending to have a shorter (90-day) timeframe, and sponsored being of a longer, continuing nature.

Here’s an update:

Completed Projects

Sponsored Projects

American Appraisal Associates
Best Practices in Federal Real Property Management
This research study surveys federal agencies, states and major private sector organizations with significant real property holdings. The research seeks to identify best practices and relevant performance measures related to the real property management process. Stakeholders consulted include OMB, General Services Administration, the Federal Real Property Council and others who have an interest in the work. The survey has been sent to federal and state executives and selected private sector companies, and interviews with subject matter experts have taken place. The report will focus on best practices of federal agencies, states and private sector companies that can be adapted for use throughout the federal government. The results will be presented at the 2006 PDC in June.

Ernst and Young LLP
How SAS 70 Type II Audit Reports Are Used in a Government Environment
This study will attempt to provide insight and helpful information to both user organizations and service provider organizations. The project is timely, given the increased emphasis on cross-servicing and the need to evaluate different potential service providers. OMB Circular M-04-11 states that all federal entities that cross-service other federal entities in areas such as payroll administration must obtain reports in accordance with SAS 70 Type II requirements.

Grant Thornton LLP
Annual CFO Survey
Each year Grant Thornton conducts a series of meetings with federal CFOs to identify and then refine the focus of a survey for AGA. Financial services in the federal government are in flux with new systems, new architecture, new technology, Centers of Excellence, e-gov and increased customer expectations. AGA is surveying people in the financial management community for their opinions of these topics and the improvements they recommend. The results will be presented in a written report distributed and discussed at the 2006 PDC. On March 15, Clifton Williams, CGFM, on behalf of AGA and Grant Thornton, provided testimony based on this year’s survey results to the House of Representatives Government Reform Committee’s Subcommittee on Government Management, Finance and Accountability. The topic of the hearing was OMB’s Financial Management Line of Business Initiative. 

Grant Thornton LLP
Process-Based Accounting
Grant Thornton is sponsoring a research study on process-based accounting. A process- based system provides predictive management information that can be used to support future years’ performance-based budgets while also providing powerful internal controls. The research project will produce a performance and results-based financial statement for a federal agency. The study will show how process-based accounting can provide better forward-oriented information that is more useful for decision-making. The project has begun and its progress will be discussed at the 2006 PDC.

KPMG LLP
Evaluation of the Current State of Internal Control and Management’s Related Responsibilities in State and Local Governments
The objective of this study is to assess current practice in state and local governments concerning audit and internal control practices. The study focuses on what states, cities, counties and other organizations are planning to do and have already done to strengthen their internal control framework. The study will compare these results to what is required of private sector companies by the Sarbanes-Oxley Act. The final report will include recommendations to ensure that any new requirements the federal government may consider imposing on the states are well planned, carefully considered and necessary to ensure accountability and good management control. The draft results of the survey were discussed in the March AGA audio conference, Implications of Sarbanes-Oxley for the Future of the Auditing Profession. Results will be presented at the 2006 PDC.

Management Concepts
Skills for the 21^st Century Financial Management Workforce
This project will provide a snapshot in the year 2006 of the workforce skills financial management leaders and mid-level professionals identify as necessary to conduct the work of the government in the 21^st century. The results obtained will help guide the federal financial community in making available targeted training and education that will effectively prepare both recent college graduates and more experienced agency staff face the challenges of stewardship of the nation’s financial resources.

Visa USA, Inc.
ProCard Phase 1: Project to Evaluate Federal, State & Local Government Use of Purchase and Travel Cards
This project is to evaluate the use by federal, state and local entities of charge cards (purchase and travel) for procurement. These can include streamlining of purchasing processes, elimination of paperwork, and utilization of third-party record-keeping and built-in audit trails. The project will assess whether agencies have realized benefits such as reduced insurance costs, improved cycle time for service delivery, better controls to prevent or detect waste, fraud and abuse, and greater effectiveness as well as greater efficiency of mission accomplishment. Merl M. Hackbart, Ph.D., University of Kentucky, is conducting the research.

AGA CPAG Research Series Report No. 4, The Federal Purchase Card: Use, Policy and Best Practice, is being printed. Surveys for phases 2 and 3, focusing on state and local government entities' use of purchase and travel cards, and phase 4, on federal agency use of travel cards, will be sent out shortly to targeted respondents in the comptroller and procurement communities. Report No. 4 will be distributed at the 2006 PDC and discussed , as will the other three phases of the project.
 

Cooperative Projects

PricewaterhouseCoopers LLP
Evaluating the Usefulness of Federal Performance and Accountability Reports

This research study focuses on the audience and usefulness of federal agency Performance and Accountability Reports (PARs). It is a cooperative project, with PricewaterhouseCoopers (PwC) taking the lead and other CPAG partners volunteering staff time. CPAG members who have helped include AOC Solutions, Booz Allen Hamilton, Grant Thornton and IBM. On March 21, 2004, the National Academy for Public Administration (NAPA) hosted a special discussion forum (sponsored jointly by NAPA, AGA and PwC) on The Performance Accountability Report: How Can We Make It Better? Speakers included Robert Shea, counselor to the Deputy Director for Management, OMB, preparers such as agency executives and the Government Accountability Office, users such as Mike Hettinger, staff director, Subcommittee on Government Management, Finance and Accountability; and representatives from the Office of the Under Secretary, Department of Education and OMB’s Office of Federal Financial Management. The research has been completed and the report is being written. We hope to present the results at the 2006 PDC and distribute the report to all attendees.

Other Projects

Other potential projects include: how certain advanced technologies, such as RFID, have the potential to completely transform inventory and asset management; financial systems implementation best practices; and performance management issues.

If you would like to sponsor a research project and/or have a good idea for a project, we would like to hear from you. Please contact Anna Miller, AGA’s Director of Research, if you would like more information about any of the projects listed above at amiller@agacgfm.org.