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This is an archived USAID document retained on this web site as a matter of public record.
In this section:
Business Systems Reforms Improve Agency Budgets,
Personnel, and Information
Business Systems Reforms Improve Agency Budgets,
Personnel, and Information
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Major Achievements 2001–04
- Received its first ever clean audit in FY 2003 on
Agency financial statements that demonstrate transparent
and accountable financial practices. Received the
same clean audit the following year.
- Achieved over 30 percent improvement in employee
satisfaction with administrative services as a result
of management reforms.
- Launched comprehensive human capital strategy and
Development Readiness Initiative to identify and close
critical skill gaps, revitalize the workforce, and
enhance Agency performance.
- Began deployment of a new financial management
system overseas to enhance decisionmaking and enable
fast and accountable transactions.
- Received an A+ on computer security by a federal
report card in FY 2004. Was the only agency to get
the high mark.
- Trained over 1,000 employees in programs for emerging
leaders, middle managers, and executives to prepare
for leadership succession.
- Improved alignment of staff with foreign policy
priorities, using a new overseas staffing template
to standardize assignment of foreign service officers
by size of country programs.
- Standardized strategic planning process to develop
better performance targets and improve accountability.
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To make USAID more efficient, transparent, and effective,
the Agency will continue its business systems modernization
(BSM), standardizing and streamlining administrative systems
and financial management tools. The Agency will also continue
reforms in human resources, knowledge management, and strategic
budgeting.
The goal of BSM is to eliminate duplication, promote transparent
information sharing, and update USAID’s systems to comply
with federal laws and regulations.
“We will finish the work we’ve started. This includes
our business systems modernization, which will result in web-based
systems for financial management, acquisition, and assistance,
and executive information,” Administrator Andrew S. Natsios
told employees April 6.
A key BSM initiative is the installation of Phoenix, the
Agency’s first unified financial management system. Phoenix
was installed in USAID’s headquarters December 2000,
and the work should be completed worldwide April 2006.
With the system in place in Washington, the Agency earned
two consecutive years of unqualified (“clean”) audit
opinions for year-end financial statements from the Office
of the Inspector General.
“FY 2003 was the first time ever USAID received a clean
opinion,” said Deputy Administrator Frederick Schieck,
who chairs the Business Transformation Executive Committee
(BTEC).
The three-year-old committee is made up of senior career
executives who meet monthly to review the progress of USAID’s
reform initiatives, set priorities, and make decisions. It
also serves as the capital investment review board to ensure
that the Agency’s information technology (IT) investments
are within budget and on track.
In 2002, USAID requested through the Development Readiness
Initiative (DRI) budget increases to increase hiring and replenish
the Agency’s staff, which shrunk by 40 percent during
the 1990s.
Through DRI, “we are strengthening our ability to respond
to crises and emerging priorities,” said David Eckerson,
chief human capital officer. “DRI is rebuilding both
foreign service and civil service personnel, and allowing
us to close critical staffing gaps. We brought on board 52
new hires above attrition level in FY 2004, and plan to hire
an additional 50 in FY 2005 and 70 more in FY 2006.
“We are also continuing with the implementation of
the plan begun in FY 2004 that, with the support of the Congress,
is allowing us to hire limited career-appointment direct hires
with program funds through FY 2006.”
The Agency introduced a strategic budgeting initiative that
allocates resources based on program performance, foreign
policy importance, country commitment, and development need.
USAID also has a new strategic planning process that categorizes
hundreds of field activities into 40 standardized program
components to develop better performance targets and improve
accountability.
In addition, a worldwide staffing template has been created
for the first time in Agency history to standardize assignment
of foreign service officers by the size of country programs.
In 2004, the first-ever joint State-USAID Strategic Plan
was developed. Its Joint Management Council is eliminating
duplicative services and integrating IT infrastructure and
services.
In 2001, one of the Agency’s first reforms was a reorganization
to eliminate stove piping and to combine sector resources
and expertise. The result was the “pillar” bureaus:
Democracy, Conflict, and Humanitarian Assistance; Global Health;
and Economic Growth, Agriculture, and Trade.
With technical expertise consolidated, “lessons learned”
and “best practices” are more easily shared across
the Agency. This also resulted in increased program management
responsibilities to the field and increased management flexibility.
USAID’s reforms are also customer-service focused.
Achievements include the completion of four annual employee
surveys that show nearly a 30 percent improvement in satisfaction
with the performance of the Agency’s systems and services.
Customer service standards for management services and for
the technical pillar bureaus were also instituted.
Amid these improvements, USAID’s performance in the
five priority areas identified in the President’s Management
Agenda also showed steadily improving scores.
The five areas are strategic management of human capital,
competitive sourcing, improved financial performance, expanded
electronic government, and budget and performance integration.
“We are at a critical state in our multiyear transformation,”
Schieck said. “We are off to a strong start and have
made steady achievements, but much remains to be done.”
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