Budget and Finance
The Office of Financial Management
The Office of Financial Management (OFM) oversees agency-wide budget formulation and execution, accounting, payment processing, financial reporting, and financial systems. It monitors and tracks the expenditure of an annual total budget of nearly one billion dollars, including three separate appropriations and four separate kinds of user fees. OFM pays over 80,000 invoices per year, and processes vendor payments of over $133 million, with over $62 million made via wire transfer. OFM develops, operates and maintains FDA's central financial systems, which are being continuously updated and improved.
In 1996, OFM implemented a new open-budget execution process to allocate agency resources efficiently, increase management awareness of cost/benefit implications, provide incentives to reduce costs, and allow for increased financial flexibility to support unfunded high priority initiatives. This budget process is designed to identify the program goals, objectives, and performance measures that best support the agency's mission, support the management of agency resources in a collaborative and coordinated fashion, introduce sound management principles to the lowest accountable levels within the agency, and promote greater accountability for resource management.
OFM helped the agency to withstand a 17 percent reduction in its operating budget in FY 1996 without having to execute a reduction-in-force. Also, resources were redistributed to support a number of key agency initiatives such as improving the review of food additive petitions, developing strategic systems, and helping to support the tobacco initiative. OFM continues to refine the budget formulation and execution process and determine how it can serve as a better vehicle for strategic planning.