JSC Annual Report FY97





Director's
Statement



Highlights


Mission


Profile


Management
Initiatives



Operations


Research and
Development



Aerospace and the
Business Communities



JSC and the
Community



CFO's
Statement


Financial
Information



Notes
  Chief Financial
Officer's Statement

Wayne Draper

I am pleased to present the Johnson Space Center's annual financial report for Fiscal Year 1997. The financial statements describe the Center's financial position and the results of operations for the year -- a period of substantial change in the way the Center and NASA as a whole interface with the aerospace industry.

The Space Flight Operations Contract, effective at the beginning of the fiscal year, combined several Shuttle contracts into one prime contract administered at the Johnson Space Center, the lead center for space flight operations. Previously, many of these contracts were administered by other centers. This change, which increased the Center's management responsibilities, is a major step toward outsourcing operations with consolidated contracts.

Another contract initiative is the Consolidated Space Operations Contract. In May, Johnson Space Center called for proposals from industry to consolidate the Agency's human and robotic space operations capabilities. This contract, to be awarded next year, will be a multi-year agreement for sustaining engineering, operations and maintenance of networks, control center facilities, and other critical systems. This contract change reiterates the theme that we plan to change the way NASA conducts operations to enable more of our resources to focus on research and development and on core competencies.

A change directly influencing our financial community was the Agency award in September 1997 of the Integrated Financial Management Project contract. Implementation of this contract will change the fundamental procurement, budget, finance, travel, time and attendance, and management information reporting systems for the Johnson Space Center, joining them into one integrated system with the whole Agency.

There has been substantial change this year in our total program and operating expenses. In FY 1996, these expenses were $2.9 billion; in FY 1997 they grew more than 10 percent to $3.2 billion. Even more striking is the growth in Johnson Space Center assets, from $6 billion in FY 1996 to $12 billion in FY 1997 -- a 100 percent increase. This growth is due primarily to the Space Flight Operations Contract and the increase in International Space Station hardware elements.

Fiscal Year 1997 was an exciting year for the Johnson Space Center. The financial state of health at Johnson Space Center is good. We are well prepared for the challenges facing us in the future.

Wayne L. Draper