Regional President Speech

System Center for Auditor Development (SCAD) Cathy E. Minehan, President Federal Reserve Bank of Boston Monday, April 22, 2002 Financial Services Policy Committee • Formed in 1994 • Followed 3 years of discussion on the Reserve Bank role in the payments system "Payment System Vision" • Rivlin Committee formed in 1996; Report in 1997 • Intent is that Reserve Banks run their own financial services show; make the hard decisions FRAS consolidation Centralization of major payment/payment related systems ACH IAS Check modernization Move to the Web, away from Windows NT • FSPC Organization ( see chart) I I CONFERENCE OF PRESID.ENTS 12/8/0 0 - Designate financial management structure FINANCIAL SERVICES - Delegate authority to FSPC MANAGEMENT - Review strategic plans STRUCTURE r I l [ Conference of First Vice Presidents Financial Services Policy Committee I FR Information Technology - Review/approve national support budgets FRAS - Discuss strategic implementation issues - Manage policy and strategy formation and implementatioi - Provide DP/DC services - Ensure efficient and effective support and • 3 Presidents ITPS: overhead services • 2 First Vice Presidents (including the CFVP Chair) - Develop automation architecture - Approve accounting changes • ITOC Liaison - Lead infrastructure strategic planning - Review performance reports • BOG Liaison - Technical standards Treasury Relations and Support = Financial Services Operations - Develop strategic plans with Treasury Council - Coordinate System-Treasury initiative: Financial Support Office - Oversee Treasury projects Annual and multiyear financial planning ~ - Coordinate fiscal services Economic Advisory Council and reporting - PSAF, NICB, corporate overhead assignment - Accounting policies, practices and services FSPC Administrative Support - Accounting automation I:::= - General counsel E-Business Strategy - Press relations - Policies and procedures II II II II Customer Relations & Support Wholesale Payments Retail Payments Cash Services Business Development Funds Transfer Check Cash Services F edline/W indows implementation Book-Entry ACH Currency technology Fedline/web implementation Net Settlement Help desk & customer support Noncash Look & feel standards FSPC Strategic Plan • Developed in 1998 • Looks at Payment System Environment -- Discusses Reserve Bank Roles and Values • Sets FSPC Goals and Strategies 5 Goals: Work with the markets to move retail payments from paper to electronics Improve efficiency of U.S. payment system Create products suited to a changing marketplace and ensure easy open secure access Develop plans for the next generation of Reserve Bank financial services Align staff, management processes and performance measures to meet strategic goals • Articulates a vision of the financial services industry at the end of five years if Reserve Banks are successful Strategic Plan Report Card Have had 3 years of work on the FSPC Strategic Plan - How have we done? Goal I Work with market forces to move retail payments from paper to electronics Progress: • Retail Payment Research • Treasury programs: POS, Smart-cards • Expansion of the ACH • Growth in ECP Grade: B+/A- Goal 2 Improve the efficiency of the U.S. Payment System Progress: • Check standardization/modernization efforts esp. EWA • IAS consolidation • Consolidation of back-office for ACH • Completed standard cash automation • New focus for standards coordination Grade: B Goal 3 Create products for a changing marketplace and ensure easy, open secure access Progress: • Web information services roll out • Image system services and EAD (part of check modernization) • Cancellation of Windows NT • High priority secure IP project Grade: C Goal4 Develop plans for the next generation of Reserve Bank financial services Progress: • New focus for standards coordination • Cash long term strategy • Follow-up to 911 • Market research in wholesale Grade: C- Goal 5 Align staffing, management processes and performance measures to meet strategic goals Progress: • Reorganization of product offices • Business development and customer service efforts • Retaining expertise efforts • Cost accounting, PSAF changes • Business, IT client forum Grade: B+ Overall Grade: C+/B- FSPC Annual Evaluation 2001 Product of Reserve Bank, Product Office input and in-person discussions with senior management at Reserve Banks Critical link in ensuring FSPC meets the needs of Banks and Conference of Presidents Key Themes - Progress substantial in key projects - Difficulty in making cost recovery - Restructuring of product offices went well - Web/access is a challenge Key Areas of Focus for 2002 - Business, IT integration - CRSO evolution/web and customer support - Financial 3 year pro forma - Next generation payment systems - 911 follow up Cost reduction FSPC Chair Expectations of the Audit Community Significant coordination among Audit groups as they look at major projects, Product Offices Timely information "Speak Truth to Power" or avoid the "Emperor Has No Clothes" syndrome Involvement and support of director audit committees

Cathy E. Minehan (2002, April 21). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_20020422_cathy_e_minehan

@misc{wtfs_regional_speeche_20020422_cathy_e_minehan,
  author = {Cathy E. Minehan},
  title = {Regional President Speech},
  year = {2002},
  month = {Apr},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_20020422_cathy_e_minehan},
  note = {Retrieved via When the Fed Speaks corpus}
}