Federal Reserve Board of GovernorsFederal Reserve Board of GovernorsFRB_28e99cb8-a199-4805-a2d0-4d2d6f7c116eThe mission of the Board is to foster the stability, integrity, and efficiency of the nation’s monetary, financial, and payment systems so as to promote optimal macroeconomic performance._f3e3bf4a-3314-45a9-9e99-22bbe4af8ff4Public interestIn its actions and policies, the Board seeks to promote the public interest. It is accountable and responsive to the general public, the U.S. government, and the financial community.IntegrityThe Board adheres to the highest standards of integrity in its dealings with the public, the financial community, and its employees.ExcellenceThe conduct of monetary policy, responsibility for bank supervision, and maintenance of the payment system demand high-quality analysis, high performance standards, and a secure, robust infrastructure. The pursuit of excellence drives the Board’s policies concerning recruitment, selection, and retention policies for Board employees.Efficiency and effectivenessIn carrying out its functions, the Board is continually aware that its operations are supported primarily by public funds, and it recognizes its obligation to manage resources efficiently and effectively.Independence of viewsThe Board values the regional nature of the System as well as the diversity of its employees; input from a variety of sources; and the independent professional judgment that is fostered by the System’s highly valued regional structure. It relies on strong teamwork to mold independent viewpoints into coherent, effective policies.Monetary PolicyConduct monetary policy that promotes the achievement of maximum sustainable long-term growth and the price stability that fosters that goal_57a484ce-e773-49c2-b880-7c69a4a6a90d1Economic and Financial Developments and ProspectsStay abreast of recent developments and prospects in the U.S. economy and financial markets, and in those abroad, so that monetary policy decisions will be well informed._17d9b054-9dc4-4b44-b0bd-98d3c0d59c1f1.1This objective will be pursued in part through the following actions: • Staff will provide to policymakers periodic briefings and written reports, analyzing incoming economic data. Staff will also prepare ad hoc analyses, as needed, to address special questions. • Staff will regularly prepare formal, quantitative forecasts for use by policymakers. • Policymakers and staff will draw on extensive contacts in the private sector to obtain timely information about tendencies in the economy and in financial markets. The Beige Book, summaries prepared by Reserve Bank staff, will be one source of such information. • Policymakers and staff will maintain close contacts with officials in international organizations and at foreign official institutions to remain current on economic developments and policies abroad.Macroeconomic and Financial MarketsEnhance our knowledge of the structural and behavioral relationships in the macroeconomic and financial markets, and improve the quality of the data used to gauge economic performance, through developmental research activities._ee1142eb-fbd0-4590-9303-ff8237ad256b1.2This objective will be pursued in part through the following action: • Staff will undertake research into the broad range of topics relevant to the conduct of monetary policy. In the period ahead, this research will focus especially on the consequences for the behavior of the economy of low rates of inflation, advancing technology, financial market innovation and deregulation, and globalization.Monetary PolicyImplement monetary policy effectively in rapidly changing economic circumstances and in an evolving financial market structure._8a76b29e-239d-4543-9c67-1815cfbdf9c41.3This objective will be pursued in part through the following action: • The Federal Open Market Committee will seek, through the operations of the Trading Desk at the Federal Reserve Bank of New York, to effect changes in money market conditions consistent with the longer-term objectives of policy.International Policies and ProceduresContribute to the development of U.S. international policies and procedures, in cooperation with the U.S. Department of the Treasury and other agencies._70284d3e-d490-4b12-b02e-2ff66514a6ae1.4This objective will be pursued in part through the following actions: • The Board will seek to reduce risks to the U.S. economy and financial system from external shocks and to improve stability in domestic and international financial markets. • The Board will provide leadership in the evolution of international institutions and arrangements in response to the changing shape of the world economy. • Staff research will contribute to international efforts to understand the origins and consequences of, and develop effective responses to, international economic and financial disruptions.Government Policy Officials and the General PublicPromote understanding of Federal Reserve policy among other government policy officials and the general public._f716bb36-25db-40c4-bb4f-2e3984afaa321.5This objective will be pursued in part through the following actions: • Twice a year, the Board will report formally to the Congress on its monetary policy plans. The Board will also seek to improve public understanding of economic developments and policy through congressional testimony, speeches, and other means. • The Board will publish, in downloadable form, data on monetary and financial market developments and on industrial production and capacity utilization to inform the public about the environment in which the Federal Reserve is operating.Safety and SoundnessPromote a safe, sound, competitive, and accessible banking system and stable financial markets_429a4bf5-1f74-4c18-ba16-713e3256600e2Financial Stability, Risk, and Problem IdentificationPromote overall financial stability, manage and contain systemic risk, and identify emerging financial problems early so that crises can be averted._344772ee-ff26-46f6-a9bc-9b3ccd018e3f2.1This objective will be pursued in part through the following actions: • Continue to develop a regulatory framework that promotes a comprehensive and systematic approach to risk taking in banking. • Conduct and encourage effective contingency planning by financial institutions to respond to crises and shocks that could occur in the banking industry. • Maximize the cooperation, coordination, and flow of information with domestic and foreign supervisory authorities and among different functions within the Federal Reserve (macroeconomic, bank supervision, payment systems, and discount window functions) to address systemic risk posed by supervised organizations. Discussion: Within its regulatory framework, the Federal Reserve must heighten the positive effect of market discipline on the stability and soundness of the banking system and financial markets by promoting sound domestic and international risk-management, accounting, disclosure, and auditing standards and overall market transparency. The supervision function has taken a leadership role in the proposed revision of the Basel Capital Accord. Basel II aims to improve risk management in banking, extending and building upon the efforts that most large banks have already begun and the market increasingly demands. Sound risk management requires that banking organizations measure risk accurately; communicate those measurements to management, to supervisors, and to the public; and relate risk both to capital requirements and to other supervisory standards. As the consolidated supervisor, the Federal Reserve works closely with other bank supervisors and the functional regulators of supervised bank and nonbank subsidiaries. The supervision function’s direct, hands-on involvement in examinations and enforcement has provided the Federal Reserve with important knowledge, expertise, relationships, and authority that complement other core central bank responsibilities. At the same time, other Federal Reserve functions work in support of the mission of the supervision function. Maximizing the benefits of these important synergies will be crucial as the financial landscape evolves and becomes more challenging to manage and evaluate. Moreover, events such as the terrorist attacks on September 11, 2001, have heightened the need for accurate information about the status of key industry participants during times of crisis. Supervision staff coordinate with other bank supervisors and financial regulators on homeland security issues that pertain to the financial sector. Further, given the increasingly global nature of financial services and the heightened complexity of business, greater coordination with overseas supervisors is required. The most sophisticated international operations take place in numerous locations, resulting in the need for multilateral coordination in relation to many large international organizations.SupervisionProvide a safe, sound, competitive, and accessible banking system through comprehensive and effective supervision of U.S. banks, bank and financial holding companies, foreign banking organizations, and related entities. At the same time, remain sensitive to the burden on supervised institutions._fe875b8d-9b14-4894-ace6-3e6be6ccf2162.2This objective will be pursued in part through the following actions: • Refine System processes designed to identify and assess risks within financial institutions and across portfolios of supervised institutions to respond to changes in the planning environment. • In the face of increasingly complex risks, enhance the supervision function’s ability to adapt supervision programs to respond to shifting priorities and issues in the most timely, consistent, and effective manner. Discussion: A sound process for managing risk on an ongoing basis is critical to an institution’s safety and stability. It is particularly important for institutions that are actively introducing new products and engaging in new activities. The supervision function must promote sound practices for managing risk that provide for strong internal controls, active boards of directors, and senior management oversight and accountability. Over the past decade, the supervision function has shifted to a risk-focused approach. Under this approach, we develop individualized supervisory programs that expend our resources in a manner reflective of the structure, business mix, and risks inherent in each institution. During this planning period, the supervision function will seek to enhance the risk-focused approach by ensuring that banks focus on maintaining sound risk management practices and internal controls that encompass changes in risk profiles as institutions expand into nontraditional business lines. The supervision function will continue its efforts to work as a national, seamless, consistent operation while taking full advantage of the varying perspectives and opportunities for innovation presented by the Federal Reserve’s structure. The supervision function will also continue to cooperate closely with state banking departments, foreign supervisors, and other federal bank and nonbank regulatory authorities to avoid duplication and inconsistency.Work EnvironmentProvide a dynamic work environment that is challenging and rewarding. Enhance efficiency and effectiveness, while remaining sensitive to the burden on supervised institutions, by addressing the supervision function’s procedures, technology, resource allocation, and staffing issues._929443b4-76cd-4af8-bb05-65169e92c8002.3This objective will be pursued in part through the following actions: • Ensure that the Federal Reserve hires and maintains a qualified staff with the right mix of experience, education, and specialized skills to meet the challenges of a rapidly evolving banking system. • Coordinate the use of examiners throughout the System to ensure that skill sets, schedules, and priorities of the staff at all Reserve Banks are aligned. • Use System resources as efficiently as possible. • Harness the benefits of technology in carrying out responsibilities to improve efficiency and consistency in the supervisory process so as to effectively manage the increased information needs as required. Seamlessly integrate technology into the supervisory business process. Discussion The industry’s continued expansion into new activities calls for supervisory tools and staff that are capable of analyzing individual institutions and various types of risks. Examination staff must have the necessary authority, skills, and expertise to manage information and reach informed judgments. Greater consistency and coordination in banking supervision ultimately rely on the ability to access, analyze, and share information in a timely and effective manner. Technological advances in processing information have brought continued improvements to the effectiveness and efficiency of bank supervision. These efforts will need to continue, in light of recent laws and regulations that have new information-sharing requirements.Domestic and Foreign BanksPromote compliance by domestic and foreign banking organizations supervised by the Federal Reserve with applicable laws, rules, regulations, policies, and guidelines through a comprehensive and effective supervision program._a86c64ac-f448-44bf-a0f6-fffc012bcaea2.4This objective will be pursued in part through the following actions: • Enhance supervised institutions’ understanding of relevant rules and regulations and provide education and other resources to help them better manage their legal and reputational risk. • Promote System efforts to develop and implement a risk-focused framework for assessing the overall compliance risk in supervised institutions. Discussion: The evolution of the banking industry, the recent accounting-related scandals, the passage of the Sarbanes-Oxley Act and the USA Patriot Act, and recent anti-money laundering cases have further raised concerns about compliance, governance, conflicts of interest, and reputation risks. Promoting greater understanding and awareness by financial institutions of compliance risk—the risk that a financial institution will be harmed by its failure to comply with laws and regulations, prudent ethical standards, or contractual obligations—while also conducting more-intensive monitoring for adherence is an integral component of the supervision function’s risk-focused framework.Consumer Protection, Community Development, and Underserved MarketsEffectively implement federal laws designed to inform and protect the consumer, to encourage community development, and to promote access to banking services in historically underserved markets_f771019b-e457-4194-8558-0f8268b5758d3National DialogueTake a leadership role in shaping the national dialogue on consumer protection in financial services, addressing the rapidly emerging issues that affect today’s consumers, strengthening consumer compliance supervision programs when required, and remaining sensitive to the burden on supervised institutions._5cd929fa-280c-4ead-aee3-d59253b350df3.1This objective will be pursued in part through the following actions: • Inform the policy development, applications analysis, and decision-making processes with timely information obtained from consumer compliance examination processes and analyses of trends in complaint activity. • Maintain a constructive presence within the financial services industry and among state and federal regulators, consumer and community advocates, financial sector trade groups, researchers, and other interested parties through participation in meetings, seminars, and other appropriate outreach venues. • Address emerging consumer financial services issues with high-quality research and analysis, responsive examination policies, revised or new regulations, timely industry guidance, and effective consumer education campaigns. Discussion The Federal Reserve has the responsibility for enforcing a wide range of consumer protection laws and regulations that govern financial transactions. Enforcement of these laws is handled primarily through regularly scheduled risk-focused consumer compliance examinations. When evaluating a state member bank’s or bank holding company’s expansionary proposals, the Board takes into account the applicant’s record of compliance with consumer protection laws and regulations, including the Community Reinvestment Act, before making its decision on such applications. The Board also enforces consumer laws and regulations through the System’s investigation and resolution of consumer complaints related to state member banks. To improve the complaint resolution process, the Board is currently enhancing its systems for handling consumer complaints to increase their effectiveness and efficiency. Outreach efforts focus on promoting state member bank compliance with, and informing consumers of their rights and protections under, consumer protection laws and regulations. These efforts also include the development of consumer information products to assist individuals in developing a better understanding of complex financial services products.Communications and CollaborationsPromote, develop, and strengthen effective communications and collaborations within the Board, the Federal Reserve Banks, and other agencies and organizations._7c96f4dc-aac8-4a6b-99a6-f32e00e4b3533.2This objective will be pursued in part through the following actions: • Maintain ongoing and consistent contact with Board members, especially with the Division of Consumer and Community Affairs’ oversight committee, to keep them apprised of emerging issues, high-priority initiatives, pending policy matters, and the implications and consequences of the Board’s options and actions. • Maintain effective relationships with senior management and staff at the Reserve Banks, and seek their participation in policy development and implementation. • Collaborate with other Board divisions on matters of overlapping or mutual interest. • Work effectively with other government agencies and interested parties to receive input on issues and strengthen policies and to assist in the identification and development of best practices. • Provide thoughtful, sound legal analysis, counsel, and policy recommendations in support of the Board’s statutory and regulatory responsibilities. Discussion: The Board has rule-writing authority for implementing consumer financial services laws that apply to financial institutions, retailers, finance companies, and mortgage bankers, as well as other nonbank businesses. It is important to ensure that the regulations governing the provision of consumer financial products and services keep pace with the increasing complexity of the products and their pricing structures. Board regulations that are targeted for review will focus on simplifying and improving the information that consumers receive, consistent with the legislative purpose, without imposing unnecessary burden on the financial services industry. The Board also works in collaboration with System banks to identify and explore issues of availability of credit and capital to individuals and businesses and to better understand current challenges and impediments to expanding credit access.Staff and Career DevelopmentDevelop a staff that is highly skilled, professional, innovative, and diverse, providing career development opportunities, to ensure the retention of highly productive and qualified staff and recruiting highly qualified and skilled employees._33db4a9d-3e47-4f64-827c-a3a58c1d07e33.3This objective will be pursued in part through the following actions: • Implement a performance evaluation process that ensures high standards of performance and focuses on staff competencies, skills, and behaviors. • Establish a multidimensional leadership-training program that includes tailored classroom training, developmental work assignments, mentoring, and job rotations. • Use data on emerging issues and information on the changing financial services marketplace to structure training that will assist staff in refining technical skills, increasing productivity levels, and achieving excellence. • Collaborate with the Board’s Management Division to develop responsive recruiting mechanisms to ensure qualified and diverse candidate pools for vacant positions. Discussion The rapid changes taking place in the financial service industry require the maintenance of a well-trained, highly qualified and productive staff at all levels of expertise. Training is a high priority for staff at all levels and in addition to classroom training, specialized training opportunities and developmental assignments tailored to the needs of individual employees are provided.Work Environment and AutomationPromote an efficient and effective work environment by aligning business functions with appropriate work processes and implementing solutions for work products and processes that can be handled more efficiently through automation._250efbb8-0116-4292-be69-e8225bc22e073.4This objective will be pursued in part through the following actions: • Develop a process to validate and measure the effectiveness and efficiency of the Division of Consumer and Community Affairs’ business functions. • Strengthen collaboration between the division’s Information System staff and individual business functions to improve the quality and effectiveness of work products. • Implement automated solutions to increase the effectiveness and efficiency of work products and processes. • Maintain a secure, but readily accessible, automation environment. Discussion: Increasing emphasis on accountability, efficiency, effectiveness, and outcome measurement requires ongoing and disciplined research, assessment, and adjustment to traditional activities. Quality assurance activities have become more prominent as programs are developed to ensure that these efforts are effective. Additionally, the growth in the delivery of services via the internet necessitates increased use of web-based technology to facilitate communications within the System and with the public as well as modification of current business practices to take advantage of advances in web-based technologies.Outreach, Public Understanding, and InformationIncrease public understanding of consumer protection and community development and the Board’s role in these areas through increased outreach and by developing programs that address the information needs of consumers and the financial services industry._8575c23c-1a91-4541-817c-c9663e46bb743.5This objective will be pursued in part through the following actions: • Expand outreach activities to consumers, the financial services industry, local governments, and other interested parties. • Raise awareness of Board activities in consumer protection and community development among relevant constituencies. • Develop programs and activities that address constituencies’ information needs. • Provide clear, concise, and complete disclosures for consumers. Discussion The Board’s efforts to promote public awareness of consumer protection and to expand economic opportunity through access to capital and credit are implemented through a broad consumer and community affairs program. The program supports research on and promotes public awareness of current issues. This is accomplished by partnering in research efforts on the effectiveness of personal financial and economics education and by developing and sponsoring research programs on consumer education issues and effective community development strategies. The work is furthered by partnering with Reserve Banks and through consultation with the Board’s Consumer Advisory Council.Oversight of BanksProvide high-quality professional oversight of Reserve Banks_6d5d1212-950d-434b-b230-8fbc0835b8654Assessments and OversightProduce high-quality assessments and oversight of Federal Reserve System strategies, projects, and operations, including adoption of technology to the business and operational needs of the Federal Reserve._73ac22af-1241-4527-9afe-abd0ffe7a5014.1The oversight process and outputs should help Federal Reserve management foster and strengthen sound internal control systems, efficient and reliable operations, effective performance, and sound project management, and also should assist the Board in the effective discharge of its oversight responsibilities. The Board will continue efforts to integrate its approach to Reserve Bank oversight across individual programs, strengthen off-site monitoring capabilities, and focus attention primarily on strategic Federal Reserve District and System initiatives and key processes and controls. This objective will be pursued in part through the following actions: • Oversee strategic infrastructure projects, including Reserve Bank check restructuring, cash distribution, and web-based application development. Board staff is overseeing the Reserve Banks’ strategies to return to and sustain full cost recovery, including efforts to reduce costs and improve efficiency by restructuring their physical check processing infrastructure. In addition, Board staff is assessing ways to most efficiently distribute and process cash within the economy and to oversee the development of web-based applications to support the delivery of Reserve Bank financial services. • Oversee implementation of enhanced COSO and evolving information security policy, controls, and risk management processes. Board staff will monitor and evaluate the results of the external audit of the Reserve Banks' control assertions consistent with the requirements of Sarbanes-Oxley. Board staff will continue to monitor the Reserve Banks’ migration to the new information security manual (nISM), refinements to information systems governance, and compliance with the Federal Information Security Management Act, as applicable.Payment and Settlement SystemsFoster the integrity, efficiency, and accessibility of U.S. payment and settlement systems_48f005ea-1658-4c8e-b160-81f45c86ec3b5Policies and RegulationsDevelop sound, effective policies and regulations that foster payment system integrity, efficiency, and accessibility. Support and assist the Board in overseeing U.S. dollar payment and securities settlement systems by assessing their risks and risk management approaches against relevant policy objectives and standards._69b6d0fe-f80a-4c44-aea7-95b88d250f115.1This objective will be pursued in part through the following actions: • Evaluate further changes to the payments system risk policy related to daylight overdrafts. Board staff will continue to analyze issues associated with the intraday timing of payments, related concerns about intraday liquidity, operational, and credit risks, and potential policy or operational changes.Research and AnalysisConduct research and analysis that contributes to policy development and increases the Board’s and others’ understanding of payment system dynamics and risk._115215e6-047e-40ec-8a9a-c736db9c1afa5.2This objective will be pursued in part through the following actions: • Analyze the effect of Check 21 on various aspects of check processing. Board staff will conduct a survey in spring 2006 to gather information on funds availability, check fraud, and check collection and return methods and timeframes. The Board will report the results of the survey to the Congress in 2007 and will make recommendations for legislative action as warranted. • Conduct further research on the optimal infrastructure for Reserve Bank services. Board staff will continue to develop models, in collaboration with Reserve Bank staff, to analyze changes in the Reserve Banks’ cash and check processing infrastructure.Board ProgramsFoster the integrity, efficiency, and effectiveness of Board programs_9d897695-6215-48ab-ade1-38919925905c6Planning, Budget, and Performance AssessmentOversee a planning and budget process that clearly identifies the Board’s mission, results in concise plans for the effective accomplishment of operations, transmits to the staff the information needed to attain objectives efficiently, and allows the public to measure our accomplishments._21dd7eb4-3923-4f8d-b634-cc6c13e723426.1This objective will be pursued in part through the following actions: • In cooperation with individual divisions, review, evaluate, and revise as needed the Board’s objectives and goals developed during the 2006–07 planning process to prepare for the future. • Ensure that our goals, objectives, and implementing actions are made known to the Congress, the public, and Board staff. Prepare portions of the Annual Report and the Annual Report: Budget Review to be published on the Board’s public web site and forwarded to the Congress. • Ensure that the Board’s planning and budget process continues to incorporate voluntary compliance with the GPRA, with the expectation of achieving more streamlined operations and reducing administrative costs while maintaining Internal Board Support service levels. This may be achieved by revising procedures to eliminate unnecessary steps and by better automating remaining steps. • Provide management with information, data, and procedures to facilitate planning, budgeting, financial decision making, and procurement of goods and services, resulting in effective and efficient Board operations. • Utilize enhanced internal communications practices to promote information sharing, encourage effective management communications, and broaden awareness of goals and objectives. Discussion: Unlike the budgets of most other government agencies, the Board’s budget is not subject to the congressional appropriations process or to review by the administration through the Office of Management and Budget. Rather, the Board establishes its own budget formulation procedures, conducts strategic planning to identify changes to its critical activities and the proper amount and allocation of resources to support its mission, approves its budget, and provides various reports and budget testimony to the Congress. The Board, like the framers of the Federal Reserve Act, considers the continuance of its budgetary independence directly relevant to the Board’s independence in managing monetary policy. To maintain budgetary independence, the Board believes that it must demonstrate effective and efficient use of its financial resources. Resource management begins with a clear mission statement, identification of goals, and a review of factors that might affect the long-term attainment of the goals and of possible responses to those factors. With the establishment of objectives to attain those goals and identification of the resources needed to accomplish them, the Board develops the budget necessary to implement its strategic plan. In recent years there have been substantial increases in expenses for security, including the creation of an armed security force, enhancements to facilities to harden physical security, and investments in information security. While the bulk of these changes are now in our expense stream, they are causing significant investments of time by administrative staff, which was not increased to manage new functions.Staffing Policies, Oversight, and MeasurementDevelop appropriate policies, oversight mechanisms, and measurement criteria to ensure that the recruiting, training, and retention of staff meet Board needs._50db67cf-19e6-47f4-8759-8b3a33f7a4726.2Develop appropriate policies, oversight mechanisms, and measurement criteria to ensure that the recruiting, training, and retention of staff meet Board needs. This objective will be pursued in part through the following actions: • Ensure that the Board’s compensation systems continue to attract qualified staff and reward and motivate employees as desired. • Ensure that appropriate processes exist to facilitate development of a Boardwide succession plan that minimizes disruption and maximizes knowledge transfer. • Use data, such as turnover data, exit interviews, and hiring data, and other relevant input to gauge the effectiveness of management actions. Discussion: Effective management of human resources is one of the most critical tasks facing the Board through the planning period. Changing requirements associated with technology, communications, demographics, employee needs and expectations, performance measurement, and market rates of pay are among the factors that will cause the Board to focus more carefully on steps to attract, retain, and train staff to meet increasingly complex requirements.Equitable EmploymentEstablish, encourage, and enforce a climate of fair and equitable treatment for all employees regardless of race, creed, color, national origin, age, or sex._4eb5378d-bb91-4f38-8e50-8083a0655cda6.3This objective will be pursued in part through the following actions: • Develop, implement, and ensure compliance with policies, practices, and procedures that foster fair and equitable treatment of all staff. • Monitor Board EEO training and awareness activities (including disability and sexual harassment awareness training and EEO training for officers, managers, and supervisors) and career development, recruitment, outreach, and intern programs. • Design and implement a new EEO web-based training program. • Support special interest groups, and sponsor ongoing programs and awareness activities. Discussion: The Board of Governors is committed to the hiring, development, compensation, and promotion of staff based on an individual’s qualifications, abilities, and job performance. The policy of the Board is to promote equal opportunity in every aspect of employment. The Board’s policies and practices address the issue of equal treatment of all employees in employment practices and hiring initiatives and include targeted initiatives for women, people of color, and those with disabilities. The Board emphasizes that equal employment opportunity is part of effective management, as well as a legal requirement, because it focuses on using the talents of all human capital. The Board’s Equal Employment Opportunity (EEO) Program Director continually reviews the criteria for measuring success in accomplishing the Board’s EEO objectives; validates Board practices, programs, and procedures against those objectives; and continuously monitors results and discusses issues with division directors and their oversight committees, and with employees, in order to establish and maintain an equitable and fair environment in which all employees have the opportunity to attain their full potential.Financial ManagementProvide financial management support needed for sound business decisions._9f1f5a4e-fea0-4434-add7-fa9631750f816.4This objective will be pursued in part through the following actions: • Manage the Board’s financial resources in accordance with generally accepted accounting principles. • Implement the COSO framework for internal controls over financial reporting. • Contract for an outside audit of the Board’s financial statements and for a future attestation of internal controls over financial reporting. • Reduce risk consistent with the prudent use of resources by participating in the Board’s enterprise risk management program. Discussion: The Board’s financial management system must continue to provide high-quality, timely data that managers need in order to make decisions between competing priorities, operational procedures, and investments. The current budget and accounting systems are closely linked to one another and to payroll and benefits, information technology, and procurement systems that generate critical data. These data must be timely and easily available to all managers. Further, these data must provide information about the costs of major Board programs, such as monetary policy, for decision-making by the Board as well as for performance measurement. The Management Division provides regular analyses of the information to the Board and its managers.IRM ServicesProvide cost-effective and secure information resource management services to Board divisions, support divisional distributed-processing requirements, and provide analysis on information technology issues to the Board, Reserve Banks, other financial regulatory institutions, and central banks._c9ff08ab-c2e9-4d08-9f1e-979148c6f31b6.5This objective will be pursued in part through the following actions: • Customer Projects. Staff will provide timely, quality support for customer projects. • Infrastructure Projects. The Board will make investments in the automation infrastructure to include projects such as information security, disaster recovery, technical training programs, and e-mail and Internet services. Discussion: Changes in technology have significantly altered the issues facing the Board in the monetary policy and supervision and regulation areas. Fortunately, the very advances in technology that have caused these adjustments have also enhanced our ability to conduct real-time surveillance. Nevertheless, obtaining the benefits from technology requires ongoing investment in a mix of mainframe and distributed-processing equipment; communications capability, including appropriate bandwidth; and a well-trained and motivated staff. Investments in human capital and technology must be made carefully to ensure that the results are timely and effective. The infrastructure for maintaining these investments must be efficient and effective in meeting the diverse needs of the organization. The infrastructure must provide security for data, software, and communications and the redundancy needed for rapid recovery of operations at other facilities. Finally, the work at the Board must be carefully synchronized and coordinated with that at the Reserve Banks and frequently with other agencies, particularly in support of large databases and software required for the supervision and regulation function.FacilitiesEfficiently provide safe, modern, secure facilities and necessary support for activities conducive to efficient and effective Board operations._27a3d9d3-adf1-4426-968c-d686c97fbf366.6This objective will be pursued in part through the following actions: • Continue to provide a work environment that is safe and conducive to the high level of productivity that is necessary for Board staff to accomplish assigned tasks. • Provide and protect a safe and secure environment for staff and others on Board property. • Train staff to recognize security problems and be able to evacuate or move to safe havens as necessary. • Establish and provision relocation sites. Discussion: The Board will upgrade the infrastructure (including electrical, plumbing, and safety infrastructure) of its current facilities. The plan to replace and upgrade capital equipment in the physical plant will be updated, and current projects will be completed. Emergency planning will continue. Employee safety, continuity of operations, and enhancement of facilities security are key priorities.2006-10-012009-09-302010-02-08http://www.federalreserve.gov/BoardDocs/RptCongress/gpra/gpra2006-2009.pdfArthurColman (www.drybridge.com)colman@drybridge.com