Introducing FSA's Budget and Performance Management System ...Presentation Transcript
Introducing FSA’s Budget and Performance Management System (BPMS) with a New Strategic Plan … for better decision making and accountability to citizens! April 14, 2005 Karen Malkin, Director Strategic Performance and Evaluation Staff Dennis Taitano, Director Budget Division
What is the Farm Service Agency?
Farm Service Agency (FSA) is a major agency of the U.S. Department of Agriculture.
FSA was created in 1994 by incorporating the commodity and conservation programs of the former Agricultural Stabilization and Conservation Service (ASCS) and the lending programs of the Farmers Home Administration (FmHA).
The Agency’s name has changed over the years, however, its relationship with farmers and ranchers dates back to the 1930s. Serving farmers and ranchers is a major component of USDA’s mission.
FSA Business Lines
FSA delivers a wide variety of programs to over 2.2 million registered agricultural producers.
Farm commodity programs
Farm credit -- ownership, operating and emergency loans
Conservation and environmental programs
Emergency and disaster assistance
Domestic and international food assistance
International export credit programs
FSA Programs are legislated by:
Disaster and Emergency Acts
Agricultural producers apply for benefits and service from their local USDA Service Center.
FSA has over 2,400 Service Centers nationwide, including local offices in Puerto Rico and Guam.
FSA has 51 State Offices, including Puerto Rico.
Decentralization & Local Governance
FSA workforce = 17,000 Federal and non-Federal employees
State and local county-elected committees oversee the delivery of FSA programs.
Committee system and local governance sets FSA apart.
Link program results to budget requests.
Dismantle existing “stove pipes.”
Streamline business processes.
Align resources effectively.
Improve employee engagement.
Improve customer service & satisfaction.
It’s good business!
“ B etter P erformance M akes S ense!”
Why is FSA Seeking to Transform?
TO Delivering and Monitoring Results Horizontal (i.e., flatter) Employee Empowerment Working in Matrixed Teams Forming Partnerships Sharing Knowledge Managing Risk Constructive Labor/Management Relations Embracing and Leveraging New Technology Organizational Issues Facing Agencies Striving to Transform FROM Delivering and Monitoring Outputs Hierarchical Micro-management Working in Stovepipes Protecting Turf Hoarding Knowledge Avoiding Risk Adversarial Labor/Management Relations Avoiding New Technology
What is BPMS?
BPMS is management tool to facilitate FSA's transformation to more performance-based, results-focused agency.
Links and integrates FSA's budget, cost, and performance management information.
Begins with new Fiscal Years 2005 – 2011 Strategic Plan.
“ What gets measured gets done AND funded!”
Key Elements BPMS Strategic Plan Framework People – Processes - Systems Systems & Technology
Reporting & Budgeting
Finance & Accounting
Program Management – Program Assessment Rating Tool (PART)
FSA Administrator Associate Administrator for Operations and Management BPMS Management Structure Associate Administrator for Programs Director, Office of Business and Program Integration Director, Strategic Performance and Evaluation Staff
Six full-day external stakeholder meetings in Omaha, Sacramento, and Washington, D.C .
Input from 250 External Stakeholders:
Farmers and ranchers
Conservation and environmental groups
State and Federal agencies
Commodity groups and trade associations
Community-based and civil rights organizations
Engaging External Stakeholders
Photos Courtesy of USDA FSA FY 2005-2011 Strategic Plan
OBJECTIVE 3.1 Improving Conservation Practices ______________________________ PERFORMANCE MEASURES M1 Maintain or increase % of acres in compliance with highly erodible land and wetland provisions. M2 Increase % of conservation acres with invasive species controls. OBJECTIVE 3.2 Targeting Lands to Maximize Conservation Benefits _______________________________ PERFORMANCE MEASURES M1 Increase acres managed under Continuous Conservation Reserve Program (CRP) sign-up. M2 Increase general sign up acres in priority areas. M3 Reduce average processing time of conservation offers through partnerships and technology: - FSA time* - partner time*. OBJECTIVE 3.3 Mitigating Adverse Impacts From Agricultural Production _______________________________ PERFORMANCE MEASURES M1 Increase CRP acres of riparian and grass buffers. M2 Increase % of CCC sites where remediation is implemented. M3 Increase CRP restored wetlands acres. * Asterisk denotes efficiency measure. END OUTCOMES Strategic Goal 3 Conserving Natural Resources and Enhancing the Environment
END OUTCOME 1
Quality Soil ____________________
Reduced erosion rates.
END OUTCOME 2
Reduced ground and surface water contamination.
END OUTCOME 4
Increased tons of carbon dioxide sequestered.
END OUTCOME 3
Quality Wildlife Habitat
Increased populations of targeted species.
INTERMEDIATE OUTCOMES PRODUCTS and SERVICES 26
Three Societal Strategic Goals – High Level
FSA plays a role in achievement of these societal goals, but Agency is not solely responsible for end outcomes.
Strategic goals are relevant beyond FSA – USDA and many other agencies and private entities play roles.
End Outcomes and Indicators
Example Showing Interagency Responsibilities 28
End Outcomes and Indicators
Indicators with End Outcomes are measured every 3 years by reviewing relevant statistics to see trends.
Indicators are not reported with FSA’s Performance Budget.
Indicators are not directly linked to individual employee performance.
Short-Term Results to Accomplish – Intermediate Level
FSA can influence the achievement of these Objectives, which can ultimately lead to the accomplishment of end outcomes and strategic goals.
Measures with Objectives are reviewed annually or more frequently, when appropriate, by monitoring target levels.
Measures are reported with FSA’s Performance Budget.
Measures are directly linked to senior managers’ performance.
Objectives and Performance Measures
Products and services of the Agency.
Activities performed by employee that lead to outputs or products and services.
Measures set by employee’s manager specifically for employee.
Measures linked to employee’s performance.
Employee measure falls under Agency’s performance measure.
Outputs and Employee Performance Measures
Agency Strategic Goal 3: Conserving Natural Resources and Enhancing the Environment Example: How Do Employees Link to the Strategic Plan? END OUTCOMES AGENCY END OUTCOME 1: Quality Soil INDICATOR 1: Reduced erosion rates. INTERMEDIATE OUTCOMES SENIOR MANAGER PLAN OBJECTIVE 1: Improving Conservation Practices MEASURE 1: Maintain or increase % of acres in compliance with highly erodible land and wetland provisions. PRODUCTS and SERVICES EMPLOYEE PLAN OUTPUT: Spot-checks for Conservation Compliance
FSA OBJECTIVES MID-LEVEL MANAGER PLAN EMPLOYEE PLAN FSA END OUTCOMES EMPLOYEE ACTIVITIES FSA MISSION FSA VISION FSA - PERFORMANCE BUDGET/ APP SES/GS 15,14 PLAN From Annual Performance to Strategic Plan FSA STRATEGIC GOALS PROGRAM OR OPERATING MEASURES Reason for FSA’s existence. Mission: Equitably servicing all farmers, ranchers, and agriculture partners by delivering effective, efficient agricultural programs for all Americans. Description of what FSA is capable of becoming. Vision: A customer-driven agency with diverse and multi-talented work force, dedicated to achieving an economically and environmentally sound future for American Agriculture. Example of outcome: Timely processing of farm loans enables beginning farmers to stay in business. Societal results FSA wants to accomplish. Example: Goal 1: Supporting Productive Farms and Ranches. What results to accomplish by when (long-term). Includes measures, which are directional indicators that will be assessed every 3 years. Example: End Outcomes for Goal 1: Successful Farms and Ranches A Market-Based Agriculture Sector Thriving Agricultural Communities. What results to accomplish by when (short-term). Example: Goal 1, Objective 1: Improving Access to Capital. Strategic Plan Business processes performed by the employee. Example: Processing racial and ethnic minorities direct loans. An annual detailed plan for the acquisition and use of financial and other resources wherein expenditures are based primarily upon measurable performance. Example: Goal 1, Objective 1, Measure 3: By 9/30/05, Reduce average processing time for all direct and guaranteed loans to 39 days from FY 04 baseline (3 year average) of 40 days - Agency-wide. Note: This measurement is for senior mgmt. accountability. Monitoring progress and achievement based on outputs, products, and services. Example: Program measures such as: Decrease in average processing time for all direct loans to 36 days from FY 04 baseline of 38 days - Agency-wide. Note: These measures would be included in an Operational Plan for major program areas. Form AD-2000, Performance Plan Agreement and Appraisal. Example: Mission Results: Goal 1, Objective 1, Measure 3: By 9/30/05, Direct Loans and Funds Mgmt. Branch will reduce average processing time for direct loans to 35 days from FY 04 baseline (3 year average) of 37 days - set for office. Form AD-2000, Performance Plan Agreement and Appraisal. Example: Mission Results: Goal 1, Objective 1, Measure 3: By 9/30/05, Reduce average processing time for racial and ethnic minorities direct loans to 34 days from FY 04 baseline (3 year average) of 37 days - set for employee. Annual Performance
Strategic Goal 1 Provide farm income support to eligible producers, cooperatives, and associations to help improve the economic stability and viability of the agricultural sector and to ensure the production of an adequate and reasonably priced supply of food and fiber. Strategic Goal 3 Assist eligible individuals and families in becoming successful farmers and ranchers. Strategic Goal 4 Improve the effectiveness and efficiency of commodity acquisition, procurement, storage, and distribution activities, and administer the U.S. Warehouse Act (USWA). Strategic Goal 2 Assist agricultural producers and landowners in achieving a high level of stewardship of soil, air, and wildlife resources on America’s farms and ranches while protecting the human and natural environment. Strategic Goal 1 Promoting Productive Farms and Ranches Strategic Goal 2 Supporting Secure and Affordable Food and Fiber Supply Strategic Goal 3 Conserving Natural Resources and Enhancing the Environment Strategic Goal Linkage - FSA to USDA to FSA Strategic Goal 1 Enhance Economic Opportunities for Agricultural Producers Strategic Goal 5 Protect and Enhance the Nation’s Natural Resource Base and Environment OLD FSA FY 01-05 Strategic Plan NEW FSA FY 05-11 Strategic Plan USDA FY 02-07 Strategic Plan 9
FY 2006 President’s Budget Strategic Goal Linkage – FSA to USDA End Outcome 2: Secure Supply of Quality Food and Fiber End Outcome 3: Effective Food Aid Income Support Programs Commodity Operations Objective 2.2: Providing Adequate, Secure Storage Capacity that Maintains Quality Agency Goal 2 : Supporting Secure and Affordable Food and Fiber Supply USDA Goal 1: Enhance Economic Opportunities for Agricultural Producers Objective Strategic 1.2: Support International Economic Development and Trade Capacity Building End Outcome 1: Successful Farms and Ranches End Outcome 3: Thriving Agricultural Communities Commodity Operations Objective 1.4: Expanding Market Opportunities Agency Goal 1: Supporting Productive Farms and Ranches USDA Goal 1: Enhance Economic Opportunities for Agricultural Producers USDA Strategic Objective 1.3: Expand Alternative Markets for Agricultural Products and Activities FSA End Outcome Major Program Areas that Contribute FSA Strategy FSA Strategic Goal USDA Strategic Goal/Objective
FY 2006 President’s Budget Strategic Goal Linkage – FSA to USDA, Continued Agency Goal 2: Supporting Secure and Affordable Food and Fiber End Outcome 1 : Quality Soil End Outcome 2 : Quality Water End Outcome 3 : Quality Wildlife Habitat End Outcome 4 : Quality Air Conservation Programs Farm Loan Programs Objective 3.1 : Improving Conservation Practices Objective 3.2 : Targeting Lands to Maximize Conservation Benefits Objective 3.3 : Mitigating Adverse Impacts from Agricultural Production Agency Goal 3: Conserving Natural Resources and Enhancing the Environment USDA Strategic Goal 5: Protect and Enhance the Nation’s Natural Resource Base and Environment USDA Strategic Objective 5.2: Improve Management of Private Lands End Outcome 1 : Affordable Food and Fiber Farm Loan Programs Income Support Programs Disaster Assistance Programs Conservation Programs Commodity Operations Objective 2.1 : Supporting Domestic Agriculture End Outcome 1 : Successful Farms and Ranches End Outcome 2 : A Market-Based Agricultural Sector End Outcome 3 : Thriving Agricultural Communities Farm Loan Programs Income Support Programs Disaster Assistance Programs Conservation Programs Commodity Operations Objective 1.1 : Improving Access to Capital Objective 1.2: Mitigating Market Losses Objective 1.3 : Mitigating Losses from Natural Disasters Agency Goal 1: Supporting Productive Farms and Ranches USDA Goal 1: Enhance Economic Opportunities for Agricultural Producers USDA Strategic Objective 1.4: Provide Risk Management and Financial Tools to Farmers and Ranchers FSA End Outcome Major Program Areas that Contribute FSA Strategies FSA Strategic Goal USDA Strategic Goal/Objective
Goal 3: Direct loan loss rate (%). Goal 3: Guaranteed loan loss rate (%). Goal 3: Processing time for direct loans (%). Goal 3: Processing time for guaranteed loans (%). Goal 3: Loans to beginning and socially disadvantaged farmers (% of total lending). Goal 3: Direct loan delinquency rate (%). Goal 3: Borrowers graduated from direct loans to guaranteed loans (%). Goal 1: Maintain or reduce loss rates for: - Direct loans - Guaranteed loans Goal 1: Reduce average processing time for: - Direct loans - Guaranteed Loans Goal 1: Increase % of: - beginning farmers - racial and ethnic minorities, and women farmers financed by FSA. SAMPLE Performance Measure Crosswalk FY 05 BPI FY 06 BPI
BPMS Management Scorecard: Reduce % of skills gaps in mission critical occupations. Reduce average processing time to fill vacancies. Increase % of employees that meet the homeland security training standards. Reduce average time to certify and disburse payments. Reduce % of erroneous payments. Increase % of material weaknesses that are corrected on schedule. Increase % of transactions completed through a web environment. Increase % of program results and budget requirements that are linked to the FSA Strategic Plan and fully costed. FY06 BPI USDA FY02-07 Strategic Plan Management Initiative 1: Improve human capital management. Management Initiative 2: Improve financial management. Management Initiative 3: Expand electronic government. Management Initiative 4: Establish budget and performance integration. SAMPLE Performance Measure Crosswalk
Department and OMB Approval of Strategic Plan Framework
Incorporation of Framework into FY 2006 Performance Budget
Linkage of Employee Performance to FY 2005-2011 Strategic Plan
Development of BPMS Intranet (internal) and Internet (public) Websites
Development of Interim Web-based Performance/Budget Reporting System
Release of Draft Strategic Plan for Public Comment
Vendor Demonstration of INTEGRATED Web-based Budget, Performance, and Cost Accounting Data System
Development & Implementation of INTEGRATED Web-based Performance Reporting System
Implementation of Strategic Plan
Measure Customer Satisfaction
Measure Effectiveness of Partnerships
Streamline Business Processes
Develop & Implement Tiered Employee Performance System
Leverage Resources through Partnerships
Institutes MAJOR cultural change – performance based.
Requires integrated change management and will facilitate an integrated process for realigning resources.
Requires continued commitment and support from all levels.
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