III-C: Financial Management Improvements

Provide accurate and timely information to support operating, budget, and policy decisions, and by reducing improper payments.

Other Information:

The RRB’s financial statement received an unqualified audit opinion in fiscal year 2005 for the sixth consecutive year. However, the RRB’s Inspector General identified three material weaknesses in his Opinion on the Financial Statements, dated October 27, 2005: information security, performance measures, and controls over the actuarial projection process. The Board Members have acknowledged all three weaknesses and have determined that the information security weakness represents a material weakness under the Federal Managers Financial Integrity Act (FMFIA). The Board Members have not categorized the other two areas as material weaknesses under the FMFIA. Nevertheless, the agency has developed action plans and is taking steps to make improvements in all three areas. To meet new reporting requirements, and thereby provide more timely financial information, the RRB has issued quarterly financial statements within 21 days after the end of each quarter since fiscal year 2004. Also, the annual Performance and Accountability Report has been issued within 45 days after the end of each fiscal year since 2004. In June 2004, the RRB migrated its payroll processing to the General Services Administration (GSA). We are also participating in GSA’s E-Gov Travel initiative to implement an automated, integrated and web-based approach to consolidating travel services. The E-Gov Travel system is designed to support everything from planning, authorizations and travel management services to voucher submission and payment. The agency has established and documented a multi-faceted methodology for identifying improper payments in our RRA and RUIA benefit payment programs. Our improper payment rates do not exceed the OMB thresholds, as defined by OMB guidance M-03-13, which includes guidelines for implementing the Improper Payments Information Act of 2002. The RRB has made concerted efforts to reduce improper payments over the years. Our payment accuracy rates are at consistently high levels and the return on investment for program integrity activities has been high as well. We monitor progress on implementing recommendations from the quality assurance process, and we are vigilant about pursuing OIG recommendations which impact the quality and timeliness of payments. We have also worked closely with our OIG in referring potential fraud cases for investigation and prosecution. In addition, we pursue automation initiatives and operational improvements that minimize improper payments.

Indicator(s):

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