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DC Action for Children
1616 P Street, NW, Suite 420, Washington,
DC 20036 · (202) 234-9404 · Fax (202) 234-9108
http://www.dckids.org —
dcaction@dckids.org
Testimony on the GAO report
regarding weaknesses in the implementation of
the city's financial management system
before the Committee on Finance
and Revenue and the Committee of the Whole
by Suzanne E. Cambric, MSW
Director of Public Policy
DC Action for Children
May 14, 2001
Good morning Chairman Cropp and
Chairman Evans. Good morning, members of the Committee on Finance and
Revenue and the Committee of the Whole. I am Susie Cambria, Director of
Public Policy at DC Action for Children. As you also know, DC ACT is an
independent, non-profit, multi-issue advocacy organization dedicated to
improving conditions for children, youth and their families in the
District of Columbia. I am pleased to have this opportunity to present
our views on GAO report GAO-01-489, "District of Columbia:
Weaknesses in Financial Management System Implementation." I am
testifying today because DC Action for Children has been engaged in
systems reform and budget advocacy since we were founded in 1992. Today
I will speak about how the financial management system has impacted the
budget process.
You may remember from testimony we
delivered throughout the FY 2002 budget process that we started our
remarks by commenting on the shortcomings of the proposed budget; two of
these are pertinent to the topic before us today:
The budget
lacks information the public needs to make an informed
determination about the adequacy of program funding. The information
needed to make such a determination includes baseline information,
specific goals (rather than NA and TBD), program-level funding, and
spending on specific types of issues (such as out-of-school time)
across the budget. The lack of detail is especially frustrating in
light of the mayor's commitment to a transparent budget.
The need for program-based
budgeting. DC ACT, the Fair Budget Coalition, the Human Needs
First Campaign, and a host of other organizations and coalitions have
regularly advocated for real budgeting for a number of years. While
the mayor's proposed FY 2002 budget started to link funding to
programs, it failed to provide details that advocates and others would
find useful: what investment is required to perform specific services
that will reach a specific number of people. Exactly. (Excerpted from
various FY 2002 budget statements.)
To be frank, our criticism of the
city's budget process has never revolved around the city's financial
management system -- it never had to. However, our limited knowledge
about this area does not preclude us from commenting on how an improved
system would allow us -- and others -- to better determine how the
District's budget plans to meet the needs of children, youth and
families. We believe that only when agencies can report actual costs of
programs or services can the city begin to
budget realistically. That is, if budgets are to be cut, we know the
implications. Likewise, if budgets are increased, we know how many more
individuals can be served. DC ACT expects that systems work so that
services work for the city's residents. What this means, practically, is
that IMA know the cost of implementing a home visitation program. It
also means that OTR knows what an outreach campaign around the DC EITC
will cost. It means linking dollars to goals and outcomes. And, it means
determining after the fact what was spent and what was accomplished. Our
understanding from the GAO report is that this planning and evaluation
cannot be done because the financial management system was not
implemented correctly or completely. Insofar as future budgeting is
concerned, DC ACT urges the OCFO and others to address those issues
(read, fix the problems) raised in the GAO report. While we understand
the Mayor Williams has taken umbrage with the report, many of the points
are valid and we hope that in the best interest of the residents of the
city that the problems will be fixed.
Thank you for this opportunity to
present our views on the GAO's report on the city's financial management
system. Should you have any questions, now or later, we would be more
than happy to answer them.
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