Transcript bennett
Headquarters U.S. Air Force
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Air Force Financial Operations
SAF/FMP April 2013
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What Congress and the Public See
Conferences & TDY
Apr 2012: GSA spent $800K on 2010 Western Range Conference
$44K breakfast, tuxedo rentals and $6K on commemorative coins
Fall 2012: VA cited for improper spending at two HR conferences
$4M and $50K on two training videos
DoD spent $224M on conferences in FY10 and $26M in FY12
Afghanistan Fraud, Waste and Abuse
New $34M 64K Sq Ft HQ never used $60B in US funds lost - $1 of $6 wasted
DoD Lavish Spending
$1.8 M Las Vegas “museum of neon signs”
$650K to digitalize photos, t-shirts & concert tickets belonging to Grateful Dead
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*%#& Congress – Fix it
1990 CFOA 1994 GMRA 1996 FFMIA FY02 NDAA FY05 NDAA FY10 NDAA FY13 NDAA FY14 NDAA
Landmark Legislation:
The Chief Financial Officers Act of 1990: Created CFO position within cabinet level agencies, directed OMB to prepare a 5-year Federal Financial Management Improvement Plan and established pilots for agency financial statement audits The Government Management Reform Act of 1994: Expanded CFO Act of 1990 by requiring annual auditable financial statements
The Federal Financial Management Improvement Act of 1996: Required agencies to implement compliant financial systems
Refined Guidance:
NDAA FY02: Directs DoDIG to stop auditing financial statements until management asserts they are ready for audit
NDAA FY05: Directs 1st Financial Improvement and Audit Readiness (FIAR) Plan NDAA FY10: Legislates DoD’s established audit readiness dates NDAA FY13: Legislates SBR by SECDEF goal of September 30, 2014 NDAA FY14: Legislates audit of FY18 financial statements NLT March 31, 2019
Continued Congressional interest
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FIAR - a Matter of Trust, Not Money
$18 000 $16 000 $14 000 $12 000 $10 000 $8 000 $6 000 $4 000 $2 000 $0 Mil Spending Other Govt GDP
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Air Force Audit Status
-- Multiple financial feeder systems and current 1960s core accounting system does not meet federal requirement to use the USSGL at the detailed transaction level Performing end-to-end business analysis
focusing on processes and systems, addressing FIAR deal breakers in a systematic fashion
Focus on specific IT system controls Partnering with DFAS to develop and implement a tool to facilitate reconciliation between systems Engaged with partners to monitor their progress
Focus on Statement of Budgetary Activity vice Statement of Budgetary Resources
deliver benefits to Airmen now
Learn from success and failure
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Air Force FIAR Timeline
– Assertions – IPA Examination – Sustain until SBA – Sustainment
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Air Force FIAR Timeline
– Sustainmen t – Assertions – IPA Examination
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What is the AF problem with Information Technology?
Tangled web of application interactions
Duplicate copies of data
Inconsistent results equals Operational uncertainty
JOPES FMIP Org Server GFMDI DRRS GSORTS DCAPES DRS SORTS Org Server GCSS-AF MPES MilPDS IPPS Org Server
Organization Data Source Exposes data to
How we do ‘Integration’ today Force Management example
Too many systems, too hard to operate, too expensive to maintain
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DEAMS Today
As of April 2014
DEAMS Software Complies with FFMIA 1996, is widely-used across the federal government and enables end-to-end auditability ~ 1,400 users at 8 AMC bases, 2 ANG units, tenant organizations, and DFAS-LI Operational Assessment 2 Findings Follow Dual Processing using legacy and DEAMS Old transactions in legacy; new transactions in DEAMS Mix of training options to maximize learning opportunities Classroom, OJT, WBT, webinar Conducting pre deployment activities for 1 Jun “go-live”
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DEAMS Scorecard
Standard Overall Operational Assessment Aug 2012 Mar 2014
System Controls” is ≤ 5% of transactions entered through DEAMS which contain invalid data and are processed Materiel Availability” is ≥ 98% for performing an assigned mission at a given time Funds Control” is ≤ 2% funds control failures Balance with Treasury” is ≥ 98% balanced Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95% Period End Processing” is ≥ 95% of accounts closed that have period-end data available to the official financial reporting system by the prescribed day Balance with Treasury” is ≥ 98% balanced 100% of critical exchange requirements satisfied Regression testing verifies that DEAMS performance has not been degraded as a result of software patches, updates or changes Accurate Balance of Available Funds” is ≥ 98% accurate Percentage of reports and queries generated successfully ≥ 98%
“The program has made significant progress” – AFOTEC Exec Summary
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BACKUP
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DEAMS Scorecard
August 2012
Not on track toward effectiveness, suitability or mission capability, and not making progress toward readiness for IOT&E
March 2014
On track towards effectiveness, suitability, mission capability and readiness for Initial Operational Test and Evaluation.
Funds Control” is ≤ 2% funds control failures
DEAMS did not meet the criteria. Two severity one deficiencies (sometimes) allowed automatic posting of transactions that exceeded funds controls Both deficiencies were resolved and no funds control failures were observed
Balance with Treasury” is ≥ 98% balanced
85% were in balance.
DEAMS did not meet the criteria DEAMS improved to 98% and met criteria
Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95%
No subsidiary accounts balanced to general ledger accounts 100% of subsidiary accounts balanced to general ledger accounts
Accurate Balance of Available Funds” is ≥ 98% accurate
39% of funds balanced with over $26M in observed accounting errors Performance did not meet criteria,
but improved to 60%
accuracy “shortfalls slowed work completion, the mission could be accomplished an overall improvement since OA-1
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DEAMS Scorecard
August 2012 March 2014 System Controls” is ≤ 5% of transactions entered through DEAMS which contain invalid data and are processed
DEAMS met the criteria DEAMS exceeded criteria with a 3% result
Period End Processing” is ≥ 95% of accounts closed that have period-end data available to the official financial reporting system by the prescribed day
0% accounts closed 100% of accounts closed accurately and on time 85% were in balance.
Balance with Treasury” is ≥ 98% balanced
98% were in balance
100% of critical exchange requirements satisfied
Met connectivity requirements. However, many of them did not satisfy requirements for complete and accurate exchange of information. Therefore, end-to end operational effectiveness was not met. Did not meet criteria; 96% of critical exchange requirements were satisfied. However, the test team rated it likely to meet criteria in IOT&E because proactive monitoring of interfaces resolved most end-to-end operational impacts
Percentage of reports and queries generated successfully ≥ 98%
Reports & queries generated successfully was 75%. Reports and queries generated successfully declined to 69%
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DEAMS Scorecard
August 2012 March 2014 Materiel Availability” is ≥ 98% for performing an assigned mission at a given time
DEAMS met the criteria • • • DEAMS again met the criteria There were no operational mission failures during OA-2.
The DEAMS Help Desk support was rated effective.
The DEAMS Help Desk response time was rated effective.
Regression testing verifies that DEAMS performance has not been degraded as a result of software patches, updates or changes
No regression testing was accomplished At the start of OA-2, 15 regression scripts were in use. By the end of OA-2, 107 scripts had been added for a total of 122. With continued software updates to DEAMS, regression testing will be an on-going need
“The program has made significant progress” – AFOTEC Exec Summary
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