Government Management Reform Act

FHWA

FHWA, with contractor assistance, developed an implementation strategy for cost accounting that requires the use of three cost accounting methodologies to cover all agency funding/programs. That strategy was approved by senior FHWA management. FHWA also identified needed requirements and acquired the cost accounting software that will be used for its cost accounting program. Finally, FHWA completed the development of a High Level Design which includes identification of all products and services provided by the Agency and all supporting work activities conducted by employees in support of the products and services (labor distribution). This design will be piloted in early FY 2005 and then Agency-wide deployment will begin shortly thereafter.

FMCSA

FMCSA enhanced its MCA plan, which was developed the previous year for Agency-wide implementation. The plan included a method to measure cost by performance, measurable milestones, and firm target dates. FMCSA conducted an MCA survey that collected the financial and performance data for use by the MCSAP program managers as a means of evaluating the federal and state outlay trends, along with fatality rates versus outlay levels. Survey results have enabled FMCSA to construct an information management and analytical tool that will identify the cost of business processes. Data collected have provided FMCSA management with refined information to make more informed resource allocation decisions.

FTA

FTA continued activities on its revised MCA Action Plan (April 2004) and initiated a number of elements in the plan. FTA established a MCA project team that consists of individuals from the functional areas in FTA headquarters and regional offices affected by the MCA process, including those familiar with information systems, accounting, and operational (program) areas.

FTA is in the process of securing contractor support to implement full cost accounting, including labor distribution and program/project grant activities. This assistance will develop an implementation strategy that incorporates cost accounting activities for program and/or organizational units, including further refinement of data to be captured, implementing data capture methods, and producing reports for management use.

FTA plans to capture labor distribution and time and attendance associated with managing each of its programs and each of its goals using the Department's CASTLE timekeeping system.

As an interim approach, FTA is working on a labor distribution process based on estimates of time expended by project/task or functions by employees. This will include identifying a project and task structure, recording employee time expended, developing ratios of time expended by project/ task or function, and applying these ratios to model labor costs. This includes the integration of workforce studies already underway within FTA. FTA will pilot this interim approach in a regional office.

NHTSA

NHTSA is in the process of determining requirements to implement MCA for its operations and plans to begin implementing a cost accounting strategy in FY 2005.