Transcript Slide 1

DoD Financial Management Strategy
Why Accelerate the FM Target Environment?
Drew Morgan
Director, Business Integration
Office of the Secretary of Defense - Comptroller
March 2015
v4
DoD Financial Management is Aligned with Higher-Level Strategic Goals
OUSD(C) Strategic
Management Plan
FY 2011-2017
Champion
Acquire
Ensure
a strong and capable
financial management
workforce
resources necessary
to meet national
defense objectives
the legal, effective,
and efficient use of
DoD resources
Changes Affecting
Everyone
Emerging FM
Certification
Program
Downward
Pressure on
DoD Top Line
Demands for
Financial
Auditability
Desired
Outcomes
The Right Skill
Sets and
Career
Framework
Getting More
out of the
Program to
Support
Mission
Confidence in
Public
Stewardship
and Improved
Efficiency
Strategic
Management Goals
Strategy to Budget to Execution –
Knowing DoD Strategic Cascade is the Start of Knowing How You Fit in
2
“Burning Platform”
Compelling Need for Rapid Business Integration
Optimum “Enterprise”
Balance
Inherently Government
Federal Shared
Services
Commercial
Outsourcing
Drastic Budget Cuts/Mission
Growth
Operational Effectiveness
Visibility, Transparency
Audit Deadlines
Federal-wide
Department
Installation/
Command
ODO/Component
Challenges
• Laws, Regulations, Policies
• Culture
• Scarce Expertise
KEY Foundational Pieces Now In Place:
• OSD-C/DCMO Governance
• DITPR
• DoD IT Shared Services Strategy
• Standards [BEA, SFIS, SLOA, PDS]
• Audit Deadlines
3
Convergence of Government Standardization
Efforts
DoD Procure-to-Pay
Treasury GWA and
IGT
Acquisition
Standards
Global Data
Standard
Federal
Transparency Areas
FM Data Standards
4
FIAR
Financial Improvement and Audit Readiness
How Do We Sustain
Audit?
5
FM Functional Strategy Goals and Outcomes
Improve
Auditability
Eliminate
Material
Weaknesses
Audit
Readiness
Lack of
Internal
Controls
Initiatives
Execute FIAR strategy
Accurate
Posting
to G/L
Non-Standard
Processes
Implement Standards Improve
Interoperability
Goals
Improve, Standardize, and Reengineer FM processes
Challenges
Support Decision Making
Establish
Data
Standards
Duplicative
Processes
Maximize FM Capabilities
Achieve Positive ROI
Lower Cost of FM Operations
Improve
Interoperability
Too
Many
Interfaces
Eliminate
Legacy
Systems
Too
Many
Systems
6
Reduce Total Cost of FM Operations and
Enable Sustained Audit by Reducing FM Systems and
Simplifying the Environment
IT Budget
Reconciliations, Rework,
Redundant and Manual Processes,
Unsupportable Balances
Auditability, Complexity and
Issues, Point to Point, Data
Calls, Information Uncertainty
Internal Controls,
Material
Weaknesses,
Non-Standards
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Integrated Financial Improvement Grand Strategy
FM Standards
& C om pliance
Standard Pro cesses
& Sy stems
Leverage
Technology
Direct Treasury
Disbursing
OSD FIAR
Plan
Guidance
SSAE16
Business Results
Interoperability among
business systems
Daily Cash
Reporting
Intra/Inter-Govt.
Trans-Invoice
Payment Platform
(IGT / IPP)
Maximize and
Leverage ERPs
Stronger Internal
Controls impacting
financial reporting and
auditability
Delinquent Debt
Management
FISCAM
Treasury System
Roll-Out
Standard
Transaction
Broker &
Business Analytics
End-to-end funds
traceability and linkage
between budget and
expenditures
Standard PPBE
USSGL
Sub-Allotment
Execution
Cost
Management
* Aligns with the DoD Strategic Management Plan (SMP)
• Better financial
information for
business decisions
• Auditable financial
statements
• Transparency of
financial data
Compliance with Govt-
Funds
Distribution
SFIS/SLOA
Business
Outco mes *
wide Accounting
(GWA) Initiatives
Shared Services
Enterprise Planning,
Program Budget &
Exec. (PPBE)
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Target FM Business Systems Environment
Enterprise-wide Standard
Data, Processes and
Systems
Business
Warehouse/Analytics
(BEIS- DCD/DCW, EBI, BI tool)
Component
Capabilities
Functional
Areas
FM
Budget
Inventory
Acquisition
Payroll/Personnel
Travel
Logistics
NGRMS, DTS,
IPPS’, DCPS, EFD
Standard
Transaction
Broker (STB)
(GEX)
Core Acct/ ERPs: (DAI
, EBAS, Navy ERP,
GFEBS, DEAMS,EBS,
GCSS-A, LMP, MSCFMS, GCSS-MC,
SABRS,FAMIS)
Reporting/Cash
(BEIS(DDRS,DCAS)
1099-TRP,
CORAS,SORS)
Disbursing
(ADS,DDS, ERPs(Direct
Treas. Disbursing))
Treasury
(GTAS, CARS,
USA Spending)
Portal
Vendors
We Can Achieve This by Executing the FM Functional Strategy
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Reducing the Number of Systems and Interfaces Through Standards & ERPs
Offers the Most Potential for Simplifying the Environment and
Not
sustainable
at current
budget
levels
# Systems,
Interfaces,
Manual
Processes
327 Systems
2,000+ Point-to-Point Interfaces
Numerous Manual Reconciliations
Unsupportable Balances
327 FM
Systems,
Budget =
$719M*
Simplified Environment and
Improved efficiencies
TARGET
- ~120 systems
- ~ $220 million
- Reduce Interfaces via Standard
Transaction Broker
- Minimize Reconciliations
- Supported Balances
Potential Savings to:
Repurpose to the
Mission
To Date:
285 Systems
42 retired = ~$7M budget
savings
FY14
FY15
FY16
FY17
Auditability
sustainable at current
& future budget levels
FY18
Auditability
FY19
FY20
FY21
FY22
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Simplified Cash Accountability
A
Entitlement
B
DCAS
3 levels of automated recon
X 1 enterprise process =
FBWT auditability
Real-time Validation
D
Treasury
(CARS)
FBwT / GLAC
Route/Validate
Reconciliation
C
To Be “Tie Points”
DCAS
(B)
G/L
DDRS
DCAS
(B)
What’s Next:
• DCAS functionality tested
• Automated feed from Treasury CARS
• Re-engineer Reconciliations
• TJS, WHS, Army GFEBS, DLA
=
G/L
(C)
Treasury
(D)
G/L (DDRS)
=
=
(C)
Treasury
(D)
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Direct Treasury Disbursing
NTDO Variation Examples
External Entitlement
• CAPS, STARS1
Pay, DCPS
External Entitlement
& FRB
• DJMS, MOCAS,
GFEBS, DAI
Disbursing System
• ADS, DDS (to
FRB for EFT)
• GFEBS, CMA,
DHS
• DoD CAnT
Treasury PIR
• DoD CAnT
• FRB (EFT pay)
TDO Variation Examples
ERP Self Entitled
Treasury PIR
Treasury PAM
• DoD Cash
Notional Target
What’s Next:
• GFEBS TDO for SelfEntitled
o Include TFOs
• TJS and WHS Pilot
TDO for TFOs in Apr-15
• DLA TDO Oct-15
• Additional
Implementations
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Intergovernmental Transactions (IGT) in Treasury’s
Invoice Processing Platform (IPP)
13
Governmentwide Treasury Account Symbol
Adjusted Trial Balance System (GTAS)
Agency’s
Financial
Statements
DFAS/DoD
DDRS
Central
Accounting
System
Edits
FMS 2108 /
Combined
Statement
Treasury Annual Reporting
GTAS
GFRS
FMS
OMB
SF 133
Program and Financing
Schedule
President’s Budget
DoD Compliancy with GTAS Reporting
Requirements and Attributes
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Electronic Funds Distribution (EFD)
OSD Level – EFD Phase 1
- Post EFD Phase 3
(Budget structure down to President’s Budget BLI)
(EFD contains all appropriated funds; General and Non-General)
FUNDS DISTRIBUTION
• Handles the initial OUSD(C) FAD distribution to
the original allotment holder; delivers funding
via interface
• EFD includes DoD Appropriated Funds (General
(less BRAC) and Non-General) down to BLI
(Includes TI-57, TI-21, TI-17, and TI-97 funds)
• Includes SFIS elements BS, POA, BA, BSA, BLI at
this level
(Below Pres Bud BLI)
• EFD now handles the sub-allotment of
TI-97 funds within the original
allotment holder’s organization and
the sub-allocation of funds to other
Defense Organizations
• EFD carries forward SFIS/SLOA
elements identified above and
includes the B13 Budget Allotment
Line Item (BALI), B12 Suballocation
Code (Limit), CA1 (Org Code), O3 (FSN)
• Will add USSGL to Funds Distribution
ACCOUNTING SYSTEMS
EFD
Component Field Level
– EFD Phase 2
AFM: TI-57
Funds below
BLI
GFEBS: TI-21
General Funds
below BLI
*PBAS: TI-21
Non-General
Funds
PBIS: TI-17
funds below
BLI
TI-97 funds
below BLI
Component Accounting
Systems
• Receives TI-97 FAD interface file
from EFD at each level of
distribution and begins executing
funds when they are distributed to
the final allotment holder
• TI-21, TI-57, and TI-17 field level
FADs will be arriving from GFEBS,
AFM, and PBIS respectively; (TI-21
Non-General Funds will be distributed
via PBAS-FD until Army determines
future plan)
DEAMS
GAFS-R
GFEBS
SOMARDS
STAN
-FINS
SABRS
NAVY
-ERP
STAR
S-FL
EBS
EBIZ
WAAS
EBAS
DAI
CEFMS
Manual
Automatic
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Standard Line of Accounting (SLOA)
Contract Pay
Contracting Systems
AF ConWrite
Army PADDS
DLA SPS
(May-15)
DLA
eProc (Feb-14)
MOCAS Support
Systems
DFAS
Support Systems
DFAS MOCAS (Aug-17)
DLA EFD
Accounting
Systems
Treas Reporting (PIR, CARS)
DFAS SCRT (Aug-17)
AF
DFAS EUD
DLA EDA
DEAMS
DFAS
DFAS BAM
DFAS DCAS
EAS
GAFS-R
Army
LMP
(Jan-15)
Army
GFEBS
(May-15)
Army
CEFMS
DLA DDRS
(N/A)
DLA WAWF
DLA
EBS
DLA
DAI
JS EBAS
Legend
Navy
SLOA Ready Dates Not
Provided
DFAS
SFIS Configured
Treas PAM/SPS
SLOA Long-term Plan
STARS
DFAS SABRS
Disbursing Systems
SLOA Ready by GWA
Not SLOA Applicable
DFAS MOCAS (Aug-17)
ERP
NOT GEX
Connected
Most Accounting Systems are already
GEX connected
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Global Exchange (GEX)
Partner
System
Partner
System
Partner
System
Partner
System
Partner
System
Partner
System
Partner
System
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How Does SLOA Support the FM Strategic Initiatives?
FM Strategic Initiative
Financial Improvement and Audit
Readiness (FIAR)
Outcomes
How SLOA Enables Each Outcome
SBR Assertion FY 2014
Financial Statement Assertion FY 2017
• Software tracks and records audit trail at each exchange of data, business
rule modification, format transformation, etc.
• Enables matching transactions between multiple accounting/feeder
systems in 1-to-1 format which can be easily reconciled
• Enables cleaner end-to-end transactional flow and processing
Standard Line of Accounting (SLOA) Improved E2E FM Information Exchange
SFIS/USSGL Compliance and
Validation
• Proper Posting of Transactions in DoD Financial
Systems
• SFIS Compliance Plans as part of Component OEPs
• Enables clean interoperability across the enterprise E2Es
• Workbooks define and reformat subset of SFIS data (SLOA) into standard
definitions
• Data compliance with Treasury and OMB standards
Enterprise Funds Distribution/Next
• Links transactions to the Budget/Funds Distribution data
Integrated capability to formulate, distribute, track and
• Transformed, standard data for allocation and distribution of funds
Generation Resource Management
execute the DoD budget
identically across the enterprise
System (EFD/NGRMS)
Direct Treasury Disbursing
Standard FBWT Daily Recon Process
• Enables automatic matching of disbursement to accounting system (near
real-time recon)
• Enables routing ERP data directly to Treasury
• Provides necessary data to prepare a Direct Treasury Pay Ready File
Government-wide Accounting
(GWA)
Daily Treasury Reporting - GWA compliance by Oct. 14
Standard FBWT Daily Recon Process
• Enables translation of TAS/BETC standard data elements to ADS
• Consolidates DSSNs into standard repository for daily reporting
Intragovernmental Transactions
(IGT)
•
•
•
•
Delinquent Debt Management
Delinquent debt collections to treasury after 90 days,
using re-engineered processes
Maximize ERP Capabilities
• E2E Process Improvement
• Eliminate redundant capabilities in the E2Es
Standard Transaction Broker
Reduce/Minimize Point-to-Point Interfaces
• Enables standardized MIPRs necessary data to perform eliminations
• Intakes data formats into single central repository from multiple buyer
systems and transforms it into a standard format, and vice versa
• Standard buyer and seller data provides data matching and reconciliation
• Enables matching and analysis of invoice data to obligation data in realtime and analyzes discrepancies between the two
• Provides flags against delinquency business rules and provides error
report when rules are violated (document LOAs overpaid, etc.)
• Take advantage of imbedded controls within ERPs
• Eliminates inefficiencies and reliance on feeder systems
• Reduces need to point-to-point interfaces & downstream errors
• Already connected to the GEX
• Minimizes need to reconfigure legacy systems
• Enables translation, validation, and routing between key E2E systems
Business Intelligence Tools
Near real-time, standards-based information and
analytics from authoritative sources
• Software provides detailed reports at each exchange of data, business
rule modification, format transformation, etc.
Cost Management
Consistent cost data and management across the
Department
• Enables use of cost management codes and OCC for cost reporting
• Provides the cost management information on every purchasing
transaction which will facilitate Full Cost Accounting
Standardize IGT Process DoD-Wide
Eliminate manual processes and multiple forms
Single Repository for IGT Orders for audit readiness
Reduce IGT Eliminations material weakness
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Sample Component Oracle System
JITC USSGL/SFIS/SLOA Verification Results
Compliant
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
1.43%
0.65%
16.47%
Not Compliant
42.11%
*
100.00%
Chart of Accounts
Posting Logic
SFIS Business Rules
Validation
DDRS Trial Balance
SLOA Interfaces
90.91%
SFIS 10.0 Interfaces
Areas for USSGL/SFIS/SLOA Compliance:
1)
2)
3)
4)
5)
6)
2 February 2015
System Posting Chart of Accounts to the DoD Chart of Accounts
Posting Logic
SFIS Attribute Base Configuration
DDRS SFIS Trial Balance
SLOA Interfaces/Data Exchanges
SFIS 10.0 Interfaces/Data Exchanges
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Joint Interoperability Test Command (JITC)
USSGL/SFIS/SLOA Verification
Phased Schedule by System
Business
Rules
Review
Emerging
Results
Briefing
Signed
Report
CAP
Due Date
FAMIS-CS
28-Aug
9-Dec
23-Jan
23-Mar
EBAS-D
14-Nov
26-Jan
20-Feb
6-Apr
EBAS-JS
24-Oct
9-Feb
20-Feb
20-Apr
DCAS
20-Feb
6-Mar
30-Mar
30-May
DDRS
27-Feb
TBD
TBD
TBD
TBD
TBD
TBD
TBD
DEAMS
Jul-15
TBD
TBD
TBD
DAI
Jul-15
TBD
TBD
TBD
LMP
TBD
TBD
TBD
TBD
Navy ERP
Mar-16
TBD
TBD
TBD
GFEBS-SA
Jun-16
TBD
TBD
TBD
DCD/DCW
TBD
TBD
TBD
TBD
GCCS-MC
TBD
TBD
TBD
TBD
DHA-ECS
TBD
TBD
TBD
TBD
DDS
TBD
TBD
TBD
TBD
WAWF
TBD
TBD
TBD
TBD
System
EBS
2 February 2015
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Enterprise Cost Management Framework
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Enterprise Cost Management Framework
Aligned to SLOA Cost Elements
•
SLOA Component defined
data elements roll up into
the Enterprise Framework
•
Ties Component managerial
accounting to enterprise
managerial accounting
•
Allows Components to
determine lower level line
item breakout of funding
documents (e.g. Payroll,
Contracts, etc.
•
EBAS-D has all of these
SFIS Cost Elements
Cost
Center
Activity
Project
Cost Center
Functional
Area
Work
Order
Number
Cost
Element
Illustrative Mapping
22
Further Leveraging Integrated ERP Capabilities Offers the
Most Potential for Reducing the Number of Systems and
Interfaces
Standard Business Intelligence and Analytics
FM Functional Strategy
Core Financial System
Functions/Capabilities
Budgetary
Resource
Management
Translation to Capabilities Available
Today in the Core FM ERPs
Execution-Level Planning
Programming
Budget Planning and Formulation
Exhibit Generation
Funds Distribution & Control
Prior-Year Actuals Feed
Payment
Management
Matching & Payment Warehousing
Disbursing
Receivables
Management
Billings & Collections
IPACS
Core FM
FM Initiatives are
now underway
leveraging all of
these ERP
capabilities
Funds Balance
with Treasury
Management
Budget Execution/ Funds Mgmt/ Funds Control
(General & Working Capital Funds)
Commitments, Obligations, Expenditures, Reimbursables
General Ledger
Management
US Standard General Ledger
(Budgetary and Proprietary)
Cost
Management
Financial
Reporting
Cost Accounting (GFEBS,DAI Navy ERP)
Cost Accumulation and Allocation
Timekeeping (Navy ERP uses T&A)
Treasury and OMB Reporting (Standard Feeds)
ERPs Offer Additional
Capabilities for Other
Functional
Areas
Acquisition
Inventory
Payroll/ Personnel
Travel
Logistics
 ERP capabilities maximized today
 Initiatives underway to further leverage
 Further leveraging needed – Enterprise
PPBE ConOps and Cost Management
Framework / Proof of Concept underway
Standard Interfacing / Business Integration
23
FIAR
Financial Improvement and Audit Readiness
How Do We Sustain Audit?
Why accelerate DoD’s FM
Target Environment?
24
Urgency to Implement FM Initiatives
Key Takeaways:
• Mandate for 2017 Audit
• Limited and declining resources require streamlined and
simplified processes as well as simpler footprint
(systems and infrastructure)
• Long-term sustainability
• Investments and divestments must be meaningful and
coordinated
• Standards (data, process and controls) are imperative to
unify enterprise systems and processes
• Strategic perspective overcomes stovepipes
25
Questions/Discussion
26
Back-up
27
Simplified Cash Accountability
PIR/SPS
CL
E11)
ST/GSA
GFEBS
A7) Re-class
CO
IN
CL
CO
Data Repository
D10) FBWT Reconciliation
D10= C9 & B8
D10= D9 & B8
New Recon: B8 & D9
For:
MAP-X
(Cash Recon)
IN
For:
CAR Balances
ST/GSA
MAP-6
(Cash Reporting)
CL
A6 ) Recon
of transaction
Recon
of
A3)Sent /
Posted (Detail
Level) A4&A5
Disbursing/
SF1080 / SF1081
MAP-6
Reporting)
•(Cash
DCAS
Source
Record ID
• TAS
• BETC
• Amount
• SDN
• Limit
• Posting
Results Cd
• Transaction
Post Date
By:
A4) Expenditure Accounting Data
DCAS
MAP-6
(Reclass)
MAP-X
(Trial Balance)
DDRS
IN
A5) Accept/Reject Data
C9) Month-end Trial Balance
Accounting Systems
*Civilian Payroll
*Military Payroll
*Unliquidated Balances
*Suspense Accounts
*Accounts Receivable
MAP-X
(Trial Balance)
IN – Army & ODO
CL – Navy
CO – Air Force
CL
Treasury
MAP-X
(Mtly Acct
Stmt)
CO
CO
A3) Recon of Disbursing /CAR Balances
(Department
; 1329/1400
Level)
Recon
of
A3)
Disbursing/ CAR
For:
Balances
ADS
IN
Target:
GEX. DCAS,
or
Direct
MAP-X
(Cash Recon)
By:
(IN/CO/CL Networks)
(Transaction Reporting System /
Collection Information Repository)
By:
A1) Expenditure / Collection Data
(Daily)
Entitlement /
Disbursing
Systems
MAP-X
(Daily Acct
Stmt)
TRS/CIR
MAP-5
(Collection)
(Government-wide Treasury
Account Symbol Adjusted Trial
Balance System)
(Central Accounting Reporting
System)
D9) Account Statement (Monthly)
SF215
MAP-5
(Pay/Coll)
GTAS
CARS
Payment Information
Repository/Standard Payment
System
MAP-5
(Payment)
A2) Account Statement (Daily)
NTDO/TDO/SelfDisbursed/Non-DoD
MAP-5
(Pay/Coll)
ST/GSA
---On SBRs---
CL
---On SBRs---
CO
---On SBRs---
IN
---On SBRs---
DCD/DCW
1)
Cash Accountability Repository
2)
Business Intelligence Layer for
Reconciliations
Denotes new interface/process
Denotes possible data conversion to/from SLOA
via SLOA Centralized Service (SCS)
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Why do we need a standard
transaction broker?
TODAY
Point-to-Point “Spaghetti” – Expensive!!!
Extremely difficult to Manage or Standardize
TARGET
Hub and Spoke – Cheaper, Easy to
Standardize and Manage, More Scalable
* GEX is the De Facto Standard for Integration among 4th
Estate Business Systems, and is being evolved to serve as
the Target Standard Transaction Broker.
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