In addition to these ongoing programs and strategic goals, we have developed complementary plans in the areas of information technology investments, human capital planning, financial management and procurement. These areas are strategically important in that they provide vital support to achieving our stated objectives and strategic goals. Recognizing this interrelationship, these initiatives include measurable objectives and outcomes that are also reported and tracked as part of our Annual Performance Plan and related documents, as well as periodic reports required by statute, regulation or executive guidance.
Effectively Manage Information Technology
Information technology not only provides the underlying support for the agency's current day-to-day operations, but it also is a strategic means of improving the cost-effectiveness of our operations in the future. In that sense, information technology is a critical aspect of our goal to safeguard our customers' trust funds and agency resources. Expanded use of automation has improved efficiencies and plays an important role in increasing speed of processing and accuracy. We are continually striving for better ways to plan and control our information technology investments and initiatives to ensure that they perform as expected, provide a meaningful return, and are delivered on time and within budget.
In recent years, the agency has taken steps to develop a consistent enterprise architecture and completed a major conversion of the databases underlying its benefit-processing systems to a more modern, robust platform. The next major step is to rewrite those systems to optimize use of the data housed in this new environment. We have also implemented a network-based project management system that allows us to estimate, track and monitor total costs and time schedules for information technology investments throughout the project's life cycle.
The agency has also initiated an effort to migrate from its core financial management system, which is no longer supported by its vendor, to a new financial system provided by a shared service provider. The key benefits are that the agency's financial processes will be further automated and that the agency's financial system will be supported. Future revisions related to changes in law or financial standards will be the responsibility of the shared services provider rather than in-house staff.
Since information technology investments represent a substantial part of our annual operating budget, it is imperative that these investments pay the expected dividends. In this planning period, the RRB will develop metrics to analyze these investments for compliance with agency plans and needs. They will be reflected in the update of the RRB's Strategic Information Resources Management Plan. As part of our efforts to implement this plan and track progress, we will continue to develop Information Technology Capital Plans that will be reflected in our budget requests and supporting documents.
Effectively Manage Human Capital
The agency's dedicated, experienced employees have been the foundation for our outstanding track record in customer service and satisfaction. However, we recognize that there is an ongoing need and responsibility to effectively manage our human capital resources. This is particularly important given the number of RRB employees who are eligible for retirement and those who soon will be. We have been working closely with OPM, as well as OMB, to develop long-range plans that will position the agency for continued success in administering our programs.
In particular, the RRB has been focusing on strategic management of human capital. The RRB has developed a comprehensive plan which outlines the agency's human capital policies, programs and practices as they support this Strategic Plan. This includes a detailed analysis of the demographic features of the RRB workforce and the skills needed to fulfill our mission. It also establishes a framework of actions over the planning period that will assist the RRB in recruiting, retaining and developing talented employees. This includes a Hiring Reform Action Plan designed to simplify and streamline the hiring process. Key challenges facing the agency include an aging workforce, employee attrition and the increasing complexity of information technology needs.
As of October 2012, approximately 70 percent of RRB employees hax 20 or more years of service and more than 40 percent of the RRB's workforce will be eligible for retirement by fiscal year 2015. Each agency component has completed workforce planning documents that identify the current staffing levels, projected attrition and planned hiring in the coming fiscal years, subject to available funding. They have also completed an analysis that identifies potential areas of skills and knowledge gaps that should be addressed through training, mentoring or outside hires, including use of reemployed annuitants. We have placed added emphasis on filling entry-level positions, focusing on front-line service employees in the field offices and claims examiners in headquarters to the extent possible. These new employees, together with those expected to be hired over the next several years, will be key to effectively administering the RRB's programs and continuing to provide outstanding service over the long term.
During the planning period, we will foster a leadership environment that inspires, motivates and guides employees toward our strategic goals, allows them to link their responsibilities with the agency's strategic vision, and results in a high-performing, stable workforce that has the competencies needed to fulfill our mission and reflects the diversity of all segments of American society. As part of these efforts, we will request funds in the agency's budget submissions to fill key positions, provide training and ensure that employees are able to link their daily activities to relevant goals in the agency's Strategic Plan.
In addition to the area of talent management, which deals with skills gaps in the agency workforce and effective recruitment/retention of new employees, the RRB's plans in this area will address leadership/knowledge management and development of a results-oriented performance culture. The RRB will also establish accountability for human capital management by systematically monitoring and evaluating the effectiveness of policies and practices in this area.
Enhance Information Security
We are committed to protecting our annuitants' information from unauthorized use or disclosure and continue to improve our information security capabilities to mitigate identified risks. We completed the security authorization and continuous monitoring processes for all of our major applications and the general support information system as required by Federal directives and in compliance with the National Institute of Standards and Technology guidance. We have also completed a privacy impact analysis on our information systems and major applications to ensure that appropriate privacy safeguards are in place. We will implement two-part controls for logical and physical access to our facilities and data. We also continue to explore ways to minimize the use of social security numbers within our business processes. We continually strive to upgrade our technical information security system, including reviewing and updating our security policies and procedures as these processes change.
Enhance Financial Reporting
The agency is taking steps to improve processes related to preparation of the financial statements, issuance of payments, internal controls and quality assurance. These actions will address items identified by the OIG's audit of the financial statements as well as ensure continued compliance with the Federal Managers' Financial Integrity Act, OMB circulars and related requirements. Current initiatives by agency financial staff include steps to improve the reconciliation of benefit-payment subsystems to the general ledger, update accounting procedures and migrate the agency's core financial management system to a shared services provider, among others. During the planning period, we will continue to provide reliable financial reporting.
Effectively Use Competition in Contracting
We will also strive to maintain a first-class acquisition system that makes maximum use of competitive procedures, uses past performance as an evaluation factor in awarding contracts, and ensures that contractors meet all delivery requirements and schedules for goods and services. This will help ensure that the RRB consistently pays the lowest price for products and services commensurate with quality, service, delivery and reliability by promoting full and open competition to the maximum practical extent when procuring goods and services, awarding purchase orders only to responsible contractors, and closely managing solicitations and their resulting contracts. Related to human capital planning, the RRB will also continue to have knowledgeable acquisition specialists and contracting officers' representatives. The RRB will further improve its competitive acquisition process by the use of a fully automated acquisition subsystem, being fielded together with the RRB's new hosted Financial Management Integrated System (FMIS) in fiscal year 2014.