2003 AABPA Spring Symposium May 2, 2003 Capital Hilton Hotel Washington, DC Don McCrory, DCFO, NSF

Independent Agency Supports basic research and education ($4.5 billion) Uses electronic grants mechanisms Technology focused National Science Board (audit committee) A word about NSF…

Financial Management Tools for “Getting to Green”

Secrets of Success for Financial Management Have a core financial operating strategy It’s a “commitment” not a process. Embrace E-Government. You can’t do it without systems. Period. Hire good people with creative thoughts. Accept risk and return. Set a schedule to “fix” audit findings

NSF Financial System: Automated, integrated, and timely centralized reporting : NSF’s first automated finance system (Honeywell) (FAS) –1983: moved FAS to HP –1985 – 1990 : PC on every desk, local area networks, , internet access –1993: updated FAS to IBM Mainframe –1998: Implement Enterprise Information System –2001: Updated FAS to Client Server (18 months and on-budget)

Planning: Coordinate a comprehensive audit plan with management, the inspector general, and the independent public accountant Effective Planning Requires: Consultation with OIG Agreement with OIG on Timeline Deliverables Agreement with OMB (RMO and OFFM) on Timeline and Deliverables Monthly Discussion of Timetables at ACC Meeting Submission to OMB of Performance and Accountability Report (End Product)

Communicating: CFO/IG direct involvement to keep the process moving Three Part Working Group Meetings to Handle Detail Issues (OIG, KPMG, and MGMT) OIG Submits Audit Findings as Early as Possible, Even for the Current Fiscal Year, to Provide Management Time to Address /Rectify Issues, where Appropriate Joint Oversight Visits to Grantees

Inform the decision-makers EIS Integrated Budget and Performance Reporting –Ongoing –Revisions –Model for Integrating Budget and Performance (examples) Dwell Time Award and Size/Duration

Audit Committees: NSF has one, and its role is significant. Established in Late 1997, Revised in 2000 Monthly Meetings Throughout the Year Involving All Stakeholders Incorporates All Effected Parties, i.e. CFO, CIO, IG, Auditors, General Counsel and etc.

NSF Audit process (Timely) FY 2003 Accelerated Plans— – NSF/OIG Joint Memo to OMB Dated April 24, 2003 Covered: Preliminary Performance and Accountability Report to KPMG—August 25, 2003 (3 rd qtr results) Close NSF’s Books — October 17, 2003 Final Performance Measures in MD&A to KPMG – October 27, 2003 Final Audit Report issued by KPMG - November 14, 2003 Final GPRA Performance and Accountability Report—sent to OMB -November 17, 2003 (47 days after FY end)

Meeting the Challenges of Accelerated Reporting Ending General Ledger Balances warehoused into an Access database outside of our main financial system. Accrual / Adjusting entries posted in this Access database to generate Adjusted Ending Balances. Adjusted Ending Balances closed utilizing an automated closing process (i.e., soft-close). Financial Statements automatically generated utilizing crosswalk specifications. This process enables NSF to create interim financial statements efficiently without interfering with normal operations.

National Science Foundation “ WHERE DISCOVERIES BEGIN” (703) FY 2002 Performance Highlights