DEPARTMENT OF HEALTH AND HUMAN SERVICES

FOOD AND DRUG ADMINISTRATION

OFFICE OF THE COMMISSIONER

COMMISSIONER OF FOOD AND DRUGS

New Financial System: $5.2 million In FY 2003, FDA plans to continue participation in the DHHS unified financial management system effort. The new system is planned to reduce costs, mitigate security risks, and provide timely and accurate information internally at FDA and across DHHS Operating Divisions. The system will replace five legacy accounting systems currently used across the Operating Divisions. The UFMS will integrate the Department's financial management structure will provide DHHS and FDA leaders with a more timely and coordinated view of critical financial

management information, including

Management Initiatives

President's Management Plan: -S2.578 million

· The FY 2003 Budget assumes savings of $2.578 million and 25 FTE associated with efficiency improvements and consolidations of administrative functions relative to the advancement of the President's Management Plan.

Accrued Retirement and Health Benefits Costs

• The budget includes $63.205 million ($54.751 million in budget authority and $8.454 million in user fees) in FY 2003 for accrued retirement and health benefits is associated with the proposed Managerial Flexibility Act of 2001. This legislation requires agencies, beginning in FY 2003, to pay the full Government share of the accruing cost of retirement for current CSRS, CIA and Foreign Service employees, and the Coast Guard, Public Health Service and NOAA Commissioned Corps. The legislation also requires agencies to pay the full accrual cost of post-retirement health benefits for current civilian employees. The intent of the legislation is to budget and present the full costs of Federal employees in the accounts and programs where they are employed. This legislation is part of an initiative to link budget and management decisions to performance by showing the full cost of each year's program operations together with the output produced that year.

Secretary's Transfer Authority

The request seeks to include FDA as part of the Secretary's existing authority to transfer a portion of discretionary funds appropriated for the current year, subject to advance notification of the Congress.