The U.S. Equal Employment Opportunity Commission
US EEOC Performance and Accountability Report FY 2007

A Message From the Chief Financial Officer

I am pleased to present the U.S. Equal Employment Opportunity Commission’s financial statements for FY 2007. Our financial statements are an integral component of our Performance and Accountability Report. The Accountability of Tax Dollars Act of 2002 extends to the agency a requirement to prepare and submit audited financial statements. The President’s Management Agenda, Improved Financial Performance component among other standards, requires us to obtain and sustain clean audit opinions on our financial statements. The Office of Management and Budget (OMB) issued Circular A-136, Financial Reporting Requirements, on June 29, 2007, which further consolidated and refined reporting requirements for the PAR submission. In addition, the OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, on September 4, 2007, establishes updated minimum requirements for audits of federal financial statements.

Our FY 2007 financial statements received an unqualified opinion. This is the fourth consecutive year that the EEOC has received an unqualified opinion and represents our continuing successful efforts to improve the financial management of the agency. The Department of the Interior’s National Business Center won a competition to replace the existing financial software with CGI’s Momentum® software package. The conversion and implementation was completed on October 9, 2007 for FY 2008 operations. In addition, we finalized a decision on a GSA approved e-Travel processing vendor in October 2007.

In support of the Budget and Performance Integration component of the President’s Management Agenda, we completed for the first time the Program Assessment Rating Tool (PART) assessment process working with the Office of Management and Budget. The program was rated “Results Not Demonstrated.” The agency is working to improve those areas that need management attention. The agency undertook a review and made adjustments to the 6-year Strategic Plan covering FYs 2007 through 2012.

In support of the Competitive Sourcing component of the President’s Management Agenda, we have just completed an OMB Circular A-76 study for the file disclosure function including back room processing of Freedom of Information Act (FOIA) and Section 83 Compliance Manual requests. This study used the standard competition methodology. The winning vendor was announced in October 2007.

For FY 2007, the agency received a $328.7 million budget. We completed the fiscal year within budget with improved financial management and some additional focus on cost controls and cost accounting. Compensation and benefit costs continue to consume a substantial portion of the budget. Some additional progress has been made to bring rising office space rent costs under control by leasing less office space consistent with the number of employees onboard and approved vacancies. However, rent costs remain about 9% of our total budget. With 9% of the budget dedicated to the state and local program, only 13% of the budget is available for technology, programs, travel, and other general expenses.

As reported in the past, I have identified several critical issues for the agency to focus on to continue to improve its long-term financial health. An update on each item is provided below.

Jeffrey A. Smith, CPA, CGFM
Chief Financial Officer
U.S. Equal Employment Opportunity Commission

November 8, 2007

This page was last modified on November 15, 2007.

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