OPM chief says agency has improved financial management, IT systems

The Office of Personnel Management has addressed financial and technology weaknesses identified by the agency's inspector general, according to OPM Director John Berry.

Berry said in a response to the IG's semiannual report released on Thursday that OPM was able to deal with several IG recommendations by retiring its legacy financial system and replacing it with the new Consolidated Business Information System and other reengineered business processes. OPM deployed the first phase of these new systems in October, with the second phase planned for fiscal 2011.

The agency's Office of the Chief Information Officer also is responding to IG's recommendations, according to Berry. The CIO office is reorganizing, and staffing levels will be adjusted based on issues identified in the IG report. OPM also will hire an IT security officer.

"OPM takes seriously the securing of OPM data, the need for documented procedures, and adherence to guidance related to technology, privacy and all our technology assets," Berry wrote in his response. "OPM is working diligently to implement plans to satisfy audit findings over the next several months."

He also commented on the inspector general's audits of benefit providers and agency financial statements. During the period reviewed, the inspector general's office issued 26 audit reports on organizations participating in the Federal Employees Health Benefits Program, and 14 carried recommendations for monetary adjustments, totaling $24.3 million.

"Because we represent the interests of 2.5 million federal retirees and survivors, nearly 8 million [FEHBP] enrollees, and over 4 million [Federal Employees' Group Life Insurance] participants, it is imperative we rely on capable auditors such as our OIG," Berry wrote. "OPM needs these audits along with retirement fraud investigations and other audits to point out areas of improvement so we can eliminate weaknesses and make OPM a stronger organization."

Berry touted OPM's success in auditing its consolidated financial statements and balance sheets, calling it a top priority. The agency received a clean audit opinion on its financial statements in fiscal 2009, with no material weaknesses.

"The integrity of our financial statements and reporting remain strong, in part, due to the oversight of the OIG," he wrote.

Berry said he appreciated the opportunity to discuss actions for improving OPM's operations. "Today's civil service is among the finest in our nation's history, and it is up to us to share a robust vision for how we prepare ourselves for the challenges of the coming decades, including responding to audit findings and recommendations that improve our internal controls and overall management."