(Overall Agency) House Rpt.107-740 VA-HUD Appropriations Bill 2003
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Fiscal year 2003 recommendation $15,300,000,000
Fiscal year 2002 appropriation 14,901,700,000
Fiscal year 2003 budget request 15,000,000,000
Comparison with fiscal year 2002 appropriation +398,300,000
Comparison with fiscal year 2003 request +300,000,000
The National Aeronautics and Space Administration was created by the
National Space Act of 1958. NASA conducts space and aeronautics
research, development, and flight activity designed to ensure and
maintain U.S. preeminence in space and aeronautical endeavors.
The Committee has recommended a total program level of
$15,300,000,000 in fiscal year 2003, which is an increase of
$300,000,000 from the budget request and an increase of $398,300,000
when compared to the fiscal year 2002 enacted appropriation.
The Committee strongly believes that NASA’s goal of significantly
improving the agency’s financial management process, as a primary goal,
is noteworthy. The Committee is convinced that this increased emphasis
on financial management, and the improved cost visibility that will
result from these efforts, will yield substantially improved decision
making in the future.
Integrated Financial Management Program. The Committee is aware that
there have been two previous NASA attempts at fielding a new financial
management system, neither of which was successful. The Committee
concurs with recent revisions to the program, which, in order to reduce
risk, has focused on fielding the core financial programs initially, and
on reducing overlap with follow-on modules. However, the Committee is
concerned about the current estimated overall cost of the IFMP at
$644,300,000. The Committee directs that NASA undertake a comprehensive
review of all elements of IFMP and follow-on IFMP modules in order to
reduce the overall cost; this review should include consideration by
NASA of other financial applications already operating within the
government. NASA is directed to submit the results of this review not
later than February 15, 2003.
Working Capital Fund. In support of efforts to improve cost
visibility, the Committee has authorized the establishment of a working
capital fund. The Committee recommends that information technology (IT)
be adopted as the first area for inclusion in the fund since Agency
reports indicate that IT funding has not been sufficiently managed in
the past, and this lack of control has threatened the performance of
numerous Agency-wide systems, not the least of which has been
information financial management. The Committee cautions the Agency that
the working capital fund should not be used as a means to circumvent the
normal appropriations process.
Full Cost Accounting/Reports. The Committee also notes that the
Agency plans to submit the fiscal year 2004 budget under a full cost
model. It should be noted, however, that there are numerous recurring
reports and cost limitations that may be affected as a result of this
change, not the least of which is the limitation on expenditures for the
International Space Station. NASA is directed to submit, in conjunction
with the fiscal year 2004 budget, recommended changes to existing law,
if necessary, to the “cost caps” to reflect full cost methodology.
Title IV of the bill includes four general provisions which directly
affect NASA operations. Section 419 provides for the establishment of a
working capital fund. Section 420 provides NASA with enhanced lease
authority. Section 421 provides NASA with authority to privatize certain
utility systems. This authority is similar to that provided to the
Department of Defense. The Committee has taken this action in
anticipation of NASA getting more reliable and cost efficient utility
service in selected locations. Included in the legislation is direction
requiring NASA to present to the Congress a detailed economic analysis
prior to entering into any agreement to convey utilities to a private
party. Finally, Section 422 extends NASA’s authority to offer buy-out
incentives to employees for three additional years.
