1. BFA Update National Science Foundation Advisory Committee for Business and Operations March 31, 2004 Tom Cooley NSF Chief Financial Officer Director, Office of Budget, Finance, and Award Management

2. Major Events Since October ‘03 FY 2005 Budget –Overall Increase: +3% –Organizational Excellence: +26% FY 2003 Performance and Accountability Report –Submitted on November 15 –Clean Opinion –“A+” for Highlights Brochure

3. Major Events (continued) NAS Report on Large Facilities NSTC RBM Workshops BFA Internal Changes –DFM Leadership BFA Realignment –Nearing Final Approval

4. Update: Recent Emphasis on Post-Award Accountability at NSF Increased Complexity of Programs, Proposals, and Awards NSF’s Funding of Complex Awards Impacts the Core Business Processes Help Awardees New to the Federal Enterprise

5. *Risk Factors FINANCIAL –Award Amount, Cost Sharing ADMINISTRATIVE –“New” Federal Awardee PROGRAMMATIC –Collaborative/Complex, Multi-Center, Innovative Effort INSTITUTIONAL –Profit, Local School Systems, State & Local Government, Institutionalized Non-Profit *(risk is weighted; algorithm derived results)

6. High Risk Low Risk Medium Risk

7. Number of Active Awards by Organization Type as of September 2003 Active Awards 30,782 Academic 3,229 Other All Other Organization Types 30,782 Academic 3,229 Other

8. Lessons Learned from BFA Award Monitoring, FY 2003 Most institutions had adequate systems Some had areas requiring improvements: –Lack of adequate written/consolidated policies and procedures: interpretations often times hard –Cost Sharing issues -- allowability and tracking –Assistance need to establish indirect cost rates

9. Award Monitoring--Our Vision Increase the Effectiveness of Monitoring Decrease the Burden on Awardees –Partner with other agencies to reduce burden on community –Involve Research Business Models (3 working groups) –Aim to reduce burden on experienced, well managed organizations –Institute a certificate program recognized and utilized by other agencies –Host mentoring program--institution to institution –Expand and enhance partnership with Programs, i.e., Portfolio Management

10. Coming Attractions Advisory Committee for GPRA Performance Assessment –June 22-23, 2004 Assessment of Organizational Excellence –New Challenge –New Role for B&O? –Focus of Discussion Today

11. On the Horizon Impact of e-Initiatives on BFA & NSF –E-Grants –E-Payroll –E-Travel –E-.....

12. B&O: Three Years (but who’s counting) 2001: 1 st Meeting –Needed integrated approach to administration and management 2002: NSF A&M Strategic Plan –Business Analysis Begun 2003: Organizational Excellence added to NSF Strategic Plan 2004: Assessing OE Special Thanks: Charter Members