Federal Manager's Financial Integrity Act Report

December 12, 1996

The President
The White House
Washington, DC 20500

Dear Mr. President:

I am pleased to report that the General Services Administration's (GSA's) management control and financial management systems, taken as a whole, provide reasonable assurance that the objectives of the Federal Managers' Financial Integrity Act (FMFIA), Section 2 and Section 4 are being achieved. The content of the enclosed FMFIA report is based on information provided by GSA's managers, as well as on advice provided by the agency's Management Control Oversight Council (MCOC). The report is also based on the results of the audit of GSA's Financial Statements, which produced an unqualified opinion for the ninth straight year.

Management officials have evaluated their programs and attested that their management controls comply with the Office of Management and Budget Circular A123, Management Accountability and Control. The responsible systems managers and financial management officials have certified that all of GSA's financial management systems conform in all material respects to the Office of Management and Budget Circular A-127, Financial Management Systems.

The MCOC, under the chairmanship of the Deputy Administrator, maintained an active involvement by examining a variety of management control issues this fiscal year. The Inspector General, in his role as an advisory member of the MCOC, continued to provide useful and constructive suggestions for improving the agency's management control and financial management policies and practices.

The tragedy in Oklahoma prompted an unprecedented, thorough review of security in Federal facilities for immediate and future security enhancements. In accordance with the Department of Justice (DOJ) study entitled "Vulnerability Assessment of Federal Facilities" and the directive set forth by you, we are pleased to report that we are in compliance with the timetable for upgrading building security countermeasures. Additionally, GSA remains committed to continuing the implementation of our security measures based on standards identified in the DOJ vulnerability assessment report.

The enclosure to this letter includes our plans and actions to correct our five material weaknesses. The high risk area "Oversight of GSA Major Information Systems" reported in last year's letter has been eliminated, and the high risk area "Multiple Award Schedule Program" is currently being reported as a material weakness. No new material weaknesses or material nonconformances were identified this fiscal year.

Respectfully,

David J. Barram
Acting Administrator

Enclosure

Federal Managers Financial Integrity Act Report

TABLE OF CONTENTS

Enclosure A -- Statistical Summary of Performance

Section 2, Internal Control Sysytems

Number of Material Weaknesses
Number reported for the first time For that year, number that have been corrected For that year, number still pending
Prior Years41401
1994 Report220
1995 Report303
1996 Report101
Total47425
Of the total number corrected, how many were corrected in 1996? 4

NOTE: The material weakness that is indicated as being reported for the first time in the 1996 report represents the Multiple Award Schedule Program which was previuosly reported as a high-risk area.

Section 4, Financial management Systems

Number of Material Non-Conformances
Number reported for the first time For that year, number that have been corrected For that year, number still pending
Prior Years880
1994 Report000
1995 Report000
1996 Report001
Total885
Of the total number corrected, how many were corrected in 1996? 0

Enclosure B -- Schedule of Corrective Actions, Material Control Weaknesses

Section 2, Material Weaknesses
TitleYear First Reported Target Date (FY) for Correction in 1995 FMFIA Report Current Target Date (FY) for Correction
Multiple Award Schedule (MAS) Program - Ordering 19921996Corrected
Financial Management Reporting19921996Corrected
Reconciliation of FSS-19 Inventory Balances to the NEAR 19921996Corrected
Inaccurate and Incomplete Firearms and Ammunition Inventory Sysytem 19941996Corrected
Inadequate Timely Access to PBS Business and Program Related Information 198819981998
Programmatic Weakness in the Child Care Program 199519961997
GSA/FPS Control Centers 199519981999
Level of Federal Protective Police Officers (PL 100-440) 199519971998
Multiple Award Schedule Program 1996N/A1997

Multiple Award Schedule (MAS) Program - Ordering

Description of Material Weakness: Multiple Award Schedule (MAS) Program -- Ordering

This material weakness was corrected during fiscal year 1996. A GAO audit concluded that the Federal Acquisition Regulations (FAR) and the Federal Information Resources Management Regulations (FIRMR) were inadequate to assure that MAS orders result in the lowest overall cost alternative, consistent with the requirements of the Competition in Contracting Act. While GSA disagreed with this finding, the agency acknowledged that certain portions of the FAR and FIRMR should be clarified.

GAO also found that agency oversight and management practices do not assure that MAS orders are in accordance with applicable regulations. One reason for agencies not following applicable procedures was GSA's failure to provide adequate information to agencies about the features and prices of schedule items. During fiscal year 1995, the implementation plan for the automated information system called GSA Advantage was finalized.

A management review during fiscal year 1996 concluded that the actions taken had the intended effect and that this material weakness has been eliminated.

Pace of Corrective Action:Name of Responsible Program Office:
Year Identified -- 1992Office of Governmentwide Policy
Original Targeted Correction Date -- 12/96Office of Acquisition Policy
Current Correction Date -- CORRECTED

Corrective Actions -- Major MilestonesMilestone Dates
Multiple Award Schedul (MAS) Program - OrderingOriginal PlanRevised PlanActual Date
Communicate ordering procedures to Federal agencies
Issue letter to senior procurement executives emphasizing need to establish efficient MAS management practices; request results of internal reviews of MAS ordering practices
---
---
11/92
Include Federal Supply Service (FSS) ordering and fiile documentation procedures on FSS Form 2891
---
---
10/92
Include Information Resources Management Service (IRMS) ordering and file documentation procedures on vendor price lists 04/93
---
04/93
Conduct meeting of Interagency Committee on Federal Supply Schedule
---
---
12/92
Clarify FAR and FIRMR
Initiate FAR Case
---
---
08/92
Implement Automated Information System
Bring FSS automated information system on-line for six schedules
---
---
 10/92
Bring IRMS prototype system on line
---
---
12/92
Clarify MAS Ordering Procedures
Issue Guiding Principles 01/94 02/94 02/94
Publish final rule implementing new ordering procedures for FSS Schedules
---
---
10/94
Clarify MAS Ordering Procedures
Publish final rule implementing new ordering procedures for ITS Schedules 02/95
---
02/95
Implement Automated Information System
Joint FSS/ITS project development agreement 11/94
---
11/94
Develop Implementation Plan with Milestones 05/95 06/9506/95
Conduct Management Review to Verify Effectiveness of Corrective Actions
---
02/96 06/96

Financial Management Reporting

Description of Material Weakness: Financial Management Reporting This material weakness was corrected during fiscal year 1996. At year-end, the General Services Administration's financial reports are generally complete, as evidenced by the very successful audit opinions received in recent years. However, during the year not all our reports properly supported managers in their decision-making on individual programs. The deficiencies identified in financial reporting precluded managers from having the appropriately detailed, accurate and complete reports on which to gauge financial performance and to take appropriate actions. Implementation of a new Financial Management Information System (FMIS) corrected this problem. In addition, efforts are continuing to implement a new Federal Information Systems Support Program (FISSP) to improve its reconciliation process, which was found to be deficient. FISSP will interface with NEAR. A management review during fiscal year 1996 concluded that all corrective actions relating to the FMIS were completed and that the system is achieving its intended purposes.

Pace of Corrective Action:Name of Responsible Program Office:
Year Identified -- 1992Chief Financial Officer
Original Targeted Correction Date -- 07/94
Current Correction Date -- CORRECTED

Corrective Actions -- Major MilestonesMilestone Dates
Multiple Award Schedul (MAS) Program - OrderingOriginal PlanRevised PlanActual Date
FISSP Team established and initial action plan completed
---
---
01/92
Identify financial reporting issues: 01/93
---
02/93
  • Conduct networking sessions (executive interviews and service specific session, OMB interview)
  • Survey financial community
  • Conduct on site reviews
  • Review current financial systems support for reporting requirements
    • Analyze and evaluate information gathered: 03/93
    ---
    		06/93
  • Prioritize program areas/issues
  • Perform detailed analysis
  • Identify common problems, causes and effects
  • Maintain list of countermeasures
  • Evaluate FISSP policies, procedures, and reports used to monitor and perform program duties
    • Develop alternatives and recommendations: 04/9307/9307/93
  • Analyze effectiveness and feasibility of short and long term solutions
  • Develop detailed action plan for short and long term solutions
  • Identify considerations for further study
    • Present recommendations and obtain approvals from senior management 05/9309/9309/93
    Develop and communicate implementation plan for other short-term corrective actions 01/94
    ---
    		02/94
    Complete initial phase of Information Strategy Planning (ISP) initiative 06/94
    ---
    		03/94
    Implement FMIS, a new Financial Management Information System (which provides for easy-to-use, on-line user interface to GSA's core accounting system) 04/9511/9503/96
    Implement a new FISSP management information system (which includes an electronic interface to NEAR and training of ITS zonal staff) 09/9412/96Note
    Analyze the CFO Financial Reporting capabilities:09/9509/9609/96
  • Establish team to review the various financial reporting and access techniques
  • Determine customer satisfaction of the current CFO reporting capabilities
  • Analyze reporting media and access techniques to determine effectiveness
  • Develop plan to support better access methods and customer training needs
    • Note: The implementation of the FISSP-MIS is being completed in phases. It is anticipated that nationwide training and implementation will be completed by January 1997.

    Reconciliation of FSS-19 Inventory Balances to the NEAR

    Description of Material Weakness: Reconciliation of FSS-19 Balances to the NEAR

    This material weakness was corrected during fiscal year 1996. Inventory balances per the Status Stock Report (SSR) generated from the FSS-19 did not reconcile to the National Electronic Accounting and Reporting (NEAR) system's general ledger. Initially it was thought that the cause of the inventory discrepancies were in the FSS-19 wrap cycle. After further review at year-end, and analysis of the reconciliation discrepancies, it was concluded that some additional corrective actions would be needed to clear up these discrepancies.

    In the course of auditing GSA's financial statements, the responsible accounting firm has reviewed the FSS-19 reconciliation issue and has advised us that this is no longer considered a material weakness.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1994Federal Supply Service
    Chief Information Officer
    Original Targeted Correction Date -- 10/95
    Current Correction Date -- CORRECTED

    Corrective Actions -- Major MilestonesMilestone Dates
    Reconciliation of FSS-19 Inventory Balance to the NEAROriginal PlanRevised PlanActual Date
    Analyze the December and January daily transactions sent from FSS-19 to FAIM/NEAR/FEDBILL and determine the conditions and processing steps at which the inventory counts do not match01/95
    ---
    		02/95
    Develop an action plan to resolve each processing condition causing discrepancies in the inventory count 02/95N/AN/A
    Reduce the number of FSS-19 transactions that kick out (reject) in FAIM; Implement new edits in the IM NAF Maintenance and Due In programs 02/95
    ---
    		02/95
    Improve data used to investigate inventory imbalances: Change IM programs to use the receipt and stock adjustment transactions sent to Finance to produce the FSS-19 Monthly Regional Profit or Loss Report and the Daily and Monthly transaction Disposition Summaries 03/95
    ---
    		03/95
    Analyze monthly transactions sent from FSS-19 to FAIM/NEAR/FEDBILL and determine the processing steps at which the inventory counts do not match 05/95
    ---
    		05/95
    Analyze month-end reconciliation discrepancies by depot using NEAR "N" report 08/95
    ---
    		08/95
    Change wrap cycle to furnish Finance with a report showing dollar value added to unshipped value for the monthly report 08/95
    ---
    		08/95
    Analyze month-end reconciliation discrepancies by depot using the NEAR "N" report to ensure that discrepancies cleared up 10/95
    ---
    		10/95
    Develop revised Schedule of Corrective Actions
    ---
    		12/9512/95
    Create a NEAR test system; make FSS-19 system changes to retain daily inputs that affect inventory balances and to create a new monthly report of FSS inventory balances for Finance use 01/96
    ---
    		03/96
    Reconcile differences between the NEAR test system and FSS-19; Identify which transactions are causing differences; implement system changes as necessary 08/96
    ---
    		08/06
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		09/9609/96

    Inaccurate And Incomplete Firearms And Ammunition Inventory System

    Description of Material Weakness: Inaccurate and Incomplete Firearms

    This material weakness was corrected during fiscal year 1996. A control weakness existed in the Law Enforcement Program relating to the inaccurate and incomplete firearms and ammunition inventory records. GSA's regional offices were not maintaining a perpetual inventory system to automatically adjust for firearms added or deleted between inventory periods. Also, ammunition inventory controls in the regions needed to be improved to include a perpetual inventory system as a deterrent against unofficial use or misappropriation of ammunition. GSA established a perpetual inventory control system to accurately track firearm acquisition, assignment and disposal, and a perpetual inventory system for ammunition. During fiscal year 1995, GSA procured new off-the-shelf software designed to track firearms and ammunition.

    During fiscal year 1996, inspections were conducted of selected regional firearms and ammunition tracking systems and all regions were found to be in compliance.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1994Public Buildings Service,
    Federal Protective Service
    Original Targeted Correction Date -- 03/96
    Current Correction Date -- CORRECTED

    Corrective Actions -- Major MilestonesMilestone Dates
    Inaccurate and Incomplete Firearms and Ammunition Inventory SystemOriginal PlanRevised PlanActual Date
    Initiate development and implementation of a perpetual inventory tracking system (firearms/ammunition)
    ---
    ---
    		07/94
    Initiate policy governing firearms and ammunition
    ---
    ---
    		07/94
    Convene a Quality Improvement Team to address system needs for firearms and ammunition database
    ---
    ---
    		09/94
    Identify system/software requirements
    ---
    ---
    		11/94
    FPS will test commercial off-the-shelf software 05/95
    ---
    		07/95
    Develop a database to track firearms and ammunition (Software application stored in the database) 02/95
    ---
    		08/95
    Procure software 10/95
    ---
    		08/95
    Develop nationwide policy governing firearms from acquisition to disposal and ammunition tracking 01/9511/9508/95
    Issue policy governing firearms from acquisition to disposal and ammunition tracking 02/9511/9511/95
    Install software (To be accomplished by Regional System Personnel) 11/95
    ---
    		11/95
    Regional offices to certify they have a perpetual inventory system in place that will track firearms and ammunition compliance to policy and systems 04/9503/9603/96
    Test, analyze and validate data (Regions) 12/9503/9603/96
    Conduct review to determine if the corrective actions are producing the intended results02/9606/9609/06

    Inadequate Timely Access to PBS Business and Program Related Information

    Description of Material Weakness: Inadequate Timely Access to PBS Business and Program Related Information

    This material weakness is caused by the lack of timely, accessible business and program-related data and outdated and outmoded processing methods in the PBS Information System. Among other problems this deficiency has contributed to the substantial revenue shortfall currently facing the Federal Buildings Fund. The completion of corrective actions is validated and supported by documentation prepared by program officials. At the completion of all action items, a management control review or other detailed review will be performed to ensure that the actions taken are producing the intended positive results.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1988Public Buildings Service,
    Chief Information Officer
    Original Targeted Correction Date -- 12/94
    Current Correction Date -- 12/97

    Corrective Actions -- Major MilestonesMilestone Dates
    Inadequate Timely Access to PBS Business and Program Related InformationOriginal PlanRevised PlanActual Date
    Develop project management plan
    ---
    ---
    		03/91
    Evaluate/select hardware and relationale database management system
    ---
    ---
    		12/90
    Develop conversion work packages
    ---
    ---
    		03/91
    Prepare and issue conversion contract
    ---
    ---
    		03/91
    Procure/award conversion contract
    ---
    ---
    		06/92
    Complete baseline description
    ---
    ---
    		03/94
    Establish commercial software strategy 03/94
    ---
    		03/94
    Deliver new hardware and software systems 12/94
    ---
    		03/95
    Coordinate and publish COTS screening criteria
    ---
    ---
    		03/95
    Establish interim integrated database design 06/9403/9503/95
    Develop IT strategy/plan consistent with business lines 06/95
    ---
    		06/95
    Convert old INFONENT database to modern platform
    ---
    		07/9507/95
    Install and test open Database Connectivity (ODBC)
    ---
    		08/9508/95
    Implement National Telecommunications Architecture
    ---
    		10/9510/95
    Design initial data sharing vehicle (DSV)
    ---
    		12/9512/95
    ---
    		10/9505/96
    Implement data sharing vehicle strategy/design vehicle
    ---
    		03/97
    ---
    Convert legacy system applications and data to DSV
    ---
    		04/97
    ---
    Integration of business lines COTS into DSV's
    ---
    		09/97
    ---
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		12/97
    ---

    Programmatic Weaknesses in the Child Care Program

    Description of Material Weakness: Programmatic Weaknesses In the Child

    Several program weaknesses have been identified in the Child Care Program involving staffing, governance, controls over criminal background checks, licensing and financing. GSA is in noncompliance with Public Law (P.L. 101-647) that requires criminal history background checks for all child care employees in Federal facilities. Additionally, some centers were operating in GSA-controlled space without proper licensing agreements.

    At the completion of all action items, a management control review or other detailed review will be performed to ensure that the actions taken are producing the intended positive results.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1995Public Buildings Service,
    Office of Workplace Initiatives
    Original Targeted Correction Date -- 07/96
    Current Correction Date -- 06/97

    Corrective Actions -- Major MilestonesMilestone Dates
    Programmatic Weaknesses in the Child Care ProgramOriginal PlanRevised PlanActual Date
    Staffing
    Central Office:
    Add experienced GSA manager to oversee implementation of corrective actions 03/96
    ---
    		08/96
    Regional Administrators:
    Determine the adequacy of staffing and existing capabilities of regional child care coordinators and develop resource allocation model for regional child care program 03/9612/96
    ---
    Consult with the Office of Workplace Initiatives on staffing issues 04/9602/97
    ---
    Coordinate with Office of Workplace Initiatives to implement needed changes 06/96 03/97
    ---
    Add external expertise in early childhood development in central office to improve quality, program, and facilities 06/96 12/96
    ---
    Governance
    Develop an appropriate mechanism to focus 6 attention of top regional staff on status of child care program 03/96 12/96
    ---
    Provide periodic progress reports to Administrator on status of corrective actions On-going
    ---
    ---
    Criminal Background Checks
    Develop new procedures to clarify responsibilities of regional child care coordinators and Federal Protective Service on the progress of getting checks initiated and completed
    ---
    ---
    		10/95
    Eliminate backlog at the regional level
    ---
    ---
    		10/95
    Hold training session for regional child care coordinators on implementation of new guidelines 02/9612/96
    ---
    Federal Protective Service and Office of Workplace Initiatives develop plan for regular reviews of status of background checks 06/9612/96
    ---
    Revise new procedures developed during 10/95 07/9612/96
    ---
    Federal Protective Service work with the FBI and other external organizations to expedite background check process 09/96
    ---
    		07/96
    Licensing
    Determine specific barriers to licensing 03/96
    ---
    		06/96
    Meet with Board(s) of Directors and higher level agency officials, when and where necessary, to resolve barriers 06/96
    ---
    		06/96
    Reduce to zero, the number of unsigned licenses06/9612/96
    ---
    Financing
    Explore financing options with Controller's office 04/9606/9609/96
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		06/97
    ---

    GSA/Federal Protective Service (FPS) Control Centers

    Description of Material Weakness: GSA/Federal Protective Service (FPS) Control Centers

    A study conducted of GSA's Control Centers disclosed significant risks related to the GSA/FPS Control Centers. The study indicated that due to budgetary and personnel constraints accumulating over more than a decade, the Control Centers have been degraded to a point at which various systems are functioning, but raise risk and liability concerns in the ability to provide an acceptable, efficient, and effective FPS level of performance to preserve life and property. The initial plan was to upgrade all regional Control Centers with state-of-the-art equipment, however, to gain economies of scale, the project has been redirected to consolidate some Control Centers into Mega-Centers and establish Regional Dispatch Centers.

    At the completion of all action items, a management control review or other detailed review will be performed to ensure that the actions taken are producing the intended positive results.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1995Public Buildings Service,
    Federal Protective Service
    Original Targeted Correction Date -- 01/98
    Current Correction Date -- 01/98

    11/96
    Corrective Actions -- Major MilestonesMilestone Dates
    GSA/Federal Protective Service (FPS) Control CentersOriginal PlanRevised PlanActual Date
    Establish a Control Center Quality Improvement Team to address issues relating to National equipment standardization, standard operating procedures, staffing and organization, site selection of Mega-centers and other related issues
    ---
    ---
    		09/94
    Award contract for design and building of two prototype control centers in Regions 3 and 10 (Region 8 replaced Region 10 due to funding and Region 2 replaced Region 3)
    ---
    ---
    		04/95
    Conduct 30%, 60%, 90% design reviews by GSA/FPS Team
    ---
    ---
    		06/95
    Conduct 95% design reviews by GSA/FPS Review team
    ---
    ---
    		07/95
    Conduct 100% design reviews by GSA/FPS Review team
    ---
    ---
    		10/95
    Begin Design of Region 5 site01/96
    ---
    		01/96
    Complete design of Region 8 site 03/96
    ---
    		03/96
    Determine location of NCR site [1] 03/96
    ---
    		03/96
    Hold pre-construction conference for Region 8 site 04/96
    ---
    		 04/96
    Start construction of Region 8 site 04/96
    ---
    		04/96
    Complete requirements report for Region 5 site [2] 05/9611/96
    ---
    Complete requirements report for NCR site [2]
    ---
    ---
    Begin Region 2 requirements report 10/9611/96
    ---
    Issue solicitation for NCR and Region 5
    ---
    ---
    		01/97
    Issue solicitation for lease build, Region 2
    ---
    ---
    		01/97
    Award contract for lease build, Region 2
    ---
    ---
    		03/97
    Complete Region 8 site 10/9604/97
    ---
    Award design build contract for Region 5 and NCR 07/97
    ---
    Start construction of Region 5 and NCR sites 06/9607/97
    ---
    Complete Region 2 design 01/9709/97
    ---
    Complete design of Region 5 and NCR
    ---
    		02/98
    ---
    Completion of construction for Region 2
    ---
    		03/98
    ---
    Complete Region 5 and NCR site construction 11/9610/98
    ---
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		On-going
    ---

    [1] Originally this action included the Region 2 site; however, Region 2 is being carried as a separate action. This occurred because of changes in methodology from a design/build to a lease/build.
    [2] Region 5 and NCR are design/build and will utilize a requirements report.

    Level of Federal Protective Police Officers (FPPOs)

    Description of Material Weakness: Level Of Federal Protective Police Officers (FPPO'S)

    A material weakness exists in the Law Enforcement Program which relates to the level of Federal Protective Police Officers (FPPO's). As of September 1995, the current level of FPPO's was 401. This figure does not meet the requirements of Section 10 of the general provisions of Public Law 100-440, which states, "The Administrator of the General Services is authorized and directed to hire up to and maintain an annual average of not less than 1,000 (full time equivalent) positions for Federal Protective Police Officers." GSA continues to review the FPPO's to assure a satisfactory level of officers.

    GSA has developed a resource allocation model to specifically identify and establish the proper level of FPPO's. Initial results indicate a need for an FPPO force of less than 1,000, but higher than the current on-board levels. GSA is seeking to repeal the 1,000 person requirement and worked on that effort during the last Congressional session. However, due to time limitations, the request to repeal this law was not enacted during the last legislative review cycle. GSA will re-submit a request for repeal during the next Congressional session. Meanwhile, we are working to increase the number of FPPO's, so that we reach the level that we believe best supports the federal government and our mission.

    At the completion of all action items, a management control review or other detailed review will be performed to ensure that the actions taken are producing the intended positive results.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1995Public Buildings Service,
    Federal Protective Service
    Original Targeted Correction Date -- 09/97
    Current Correction Date -- 09/98

    Corrective Actions -- Major MilestonesMilestone Dates
    Level of Federal Protective Police Officers (FPPO's)Original PlanRevised PlanActual Date
    Request repeal of Public Law 100-440
    ---
    ---
    		09/95
    Develop resource model identifying required number of FPPO's
    ---
    ---
    		09/95
    Direct regions to recruit for FPPO staffing
    ---
    ---
    		11/95
    Monitor status of repeal of Public Law [1] On-going
    ---
    ---
    Hire additional FPPO's for FY 96 09/96
    ---
    		09/96
    Hire additional FPPO's to bring staffing level to 723 in FY 1997 09/97
    ---
    ---
    Hire additional FPPO's to bring complement to 1,000 [2]
    ---
    		09/99
    ---
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		On-going
    ---

    [1] Public Law 100-440 was not repealed by the 104th Congress. Therefore, the law remains in full effect and GSA will again propose repeal of this law.
    [2] This step will be taken only if legislation repeal does not occur.

    Multiple Award Schedule (MAS) Program

    Description Of Material Weakness: Multiple Award Schedule (MAS) Program

    Federal agencies collectively acquire goods and services valued at approximately $5 billion annually through MAS contracts. The MAS Program has several problems which were identified by agency management and cited in General Accounting Office (GAO) and GSA Office of Inspector General (OIG) audits. First, the information which GSA receives from vendors to evaluate prices offered to the Government is not always accurate, current and complete. Second, heavy workload in the MAS program may adversely affect the ability of contracting officers to award the most favorable prices for the Government. Third, agencies which use the MAS program may not always comply with applicable ordering procedures.

    In previous years, this material weakness was reported as a high risk area, because the solutions necessitated involvement of the Office of Management and Budget and, perhaps, Congress. Also, the Federal Acquisition Streamlining Act significantly alters the conduct of Federal Procurement. Implementation of this new law continues to be evaluated as to the effect on the MAS program.

    At the completion of all action items, a management control review or other detailed review will be performed to ensure that the actions taken are producing the intended positive results.

    Pace of Corrective Action:Name of Responsible Program Office:
    Year Identified -- 1992Office of Governmentwide POlicy,
    Office of Acquisition Policy
    Original Targeted Correction Date -- 10/96
    Current Correction Date -- 09/97

    Corrective Actions -- Major MilestonesMilestone Dates
    Multiple Award Schedule (MAS) ProgramOriginal PlanRevised PlanActual Date
    Clarify MAS Policy
    Issue revised policy on a test basis
    ---
    ---
    		02/92
    Issue five solicitations using revised policy 12/92
    ---
    		01/93
    Receive evaluations of revised policy from test participants 08/93
    ---
    		03/93
    Analyze participant evaluations 11/93
    ---
    		03/93
    Implementation in FAR (Office of Federal Procurement Policy) 04/9510/9509/95
    Alleviate Imbalance in MAS Workload
    Establish Task Group 12/92
    ---
    		12/92
    Assess test results; modify 12/93
    ---
    		12/93
    Federal Acquisition Streamlining Act
    Review FAR changes to determine impact on MAS Program 07/9501/9602/96
    Review and Evaluate Impact of GSAR changes on MAS Program: 07/9509/97
    ---
  • Preparation and publication of a final rule
  • Incorporation of the changes in MAS solicitations
  • Receipt, evaluation, and award of offers received
  • Analysis of impact of the final rule and other changes on the MAS program
    • Alleviate Imbalance in MAS Workload
    Implement Task Group recommendations10/96
    ---
    ---
    Conduct review to determine if the corrective actions are producing the intended results
    ---
    		TBD
    ---

    ENCLOSURE C - Schedule of Corrective Actions, Material Non-Conformances

    Section 4, Material Non-Conformances

    As required by the FMFIA, GSA has evaluated its financial management systems in accordance with the principles, standards, and related requirements prescribed by the Comptroller General and implemented through the Office of Management and Budget's (OMB's) Circular No. A-127, Financial Management Systems.

    Based on all A-127 review work performed, no new material non-conformances with regard to Comptroller General principles, standards, or related requirements, including OMB Circular No. A-127 requirements, were noted during FY 1996. Also, based on the management actions that have been taken during FY 1996, sufficient actions have been taken to significantly address and correct each of the two previously cited A-123 material internal control weaknesses that indirectly relate to GSA's financial management systems. These two material weaknesses, "Financial Management Reporting" and "Reconciliation of FSS-19 Inventory Balances to the NEAR" are reported as corrected and are included in Enclosure B.

    ENCLOSURE D - SUMMARY OF OTHER ISSUES

    Identified below are two issues that surfaced during fiscal year 1996 which merit disclosure in this year's FMFIA report. However, they were not considered by GSA's Management Control Oversight Council to be material weaknesses or management control issues for FMFIA reporting purposes.

    Transfer of Pennsylvania Avenue Development Corporation Operations, Assets, and Obligations to GSA

    Pursuant to Public Law 104-134, on April 1, 1996, the operations, assets, and obligations of the Pennsylvania Avenue Development Corporation (PADC) were transferred to GSA, the National Park Service, and the National Capital Planning Commission. GSA recorded all of the assets, liabilities, and equity of PADC in its fiscal year 1996 financial statements within the Other Funds. As a result of the annual financial statements audit for 1996, it was found that GSA's processes for identifying and recording only those assets and equity transferred to it were not adequate to ensure that the consolidated financial statements were properly stated. Additionally, GSA has not established complete financial records to properly support certain asset and equity balances recorded in the financial statements. Actions are being taken to correct this problem.

    Restructuring of the Debt for the Sale of the U.S. Custom House to the City of Boston

    In July 1996, the Office of Inspector General reported that GSA "exceeded its legal authority when restructuring the debt for the sale of the U.S. Custom House to the City of Boston," resulting in a violation of the Debt Collection Act, 31 U.S.C. 3711. However, the Office of General Counsel, which is solely responsible for developing all official legal positions of the agency, is of the opinion that GSA was well within its statutory authorities on all aspects of the U.S. Custom House transaction. Management agrees with the Office of General Counsel and, therefore, the agency's position conforms to the advice of its General Counsel.

    Management is aware that the Inspector General may ask the Department of Justice to clarify the authorities governing the sale of surplus real property.

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