Transcript Federal Financial Management Conference Shared Services

Federal Financial Management Conference
Shared Services:
Progress through Partnerships
Larry Neff
Deputy Chief Financial Officer
U.S. Department of Transportation
March 11, 2008
Background on DOT and our
Enterprise Services Center (ESC)
 DOT has 55,000 employees & a $66 billion annual budget
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Highly decentralized organization (Operating Administrations)
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OST, WCF, OIG, FAA, FHWA, FTA, FRA, FMCSA, NHTSA,
MARAD, PHMSA, RITA/BTS/Volpe, STB, SLSDC
 ESC has 1,000 employees & is in a Franchise Fund
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IT Services/Data Center, Applications Support, Accounting
Services, Customer Services/Help Desk
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Located at the Mike Monroney Aeronautical Center in beautiful
Oklahoma City
 1,100 acre secure campus
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5,500 total employees
Professional, knowledgeable, dedicated career staff
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DOT & ESC Accomplishments
 2000-2003: DOT implemented all 14 bureaus on a COTS-
based, FSIO-certified financial system with no customizations
running on a cost-effective single production instance
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Produce financial statements overnight from the core
accounting system
 DOT has consolidated all accounting operations to ESC
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Saving $5+ million per year
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Bureaus more willing to streamline & standardize processes
 Clean financial audit opinions 6 of last 7 years
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DOT raised to “yellow” on PMA goal for Financial Management
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Enterprise Services Center (ESC)
 Feb. 2005: OMB designated DOT/ESC 1 of 4 Federal
Shared Service Providers (FSSPs)
 ESC currently cross-services
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Government Accountability Office (GAO)
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Commodity Futures Trading Commission (CFTC)
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Institute of Museum and Library Services (IMLS)
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National Endowment for the Arts (NEA)
 ESC using Service Oriented Architecture (SOA) technology
to integrate PRISM with Oracle Financials
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Eliminates duplicate manual data entry & reconciliation
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Supports commitment accounting
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Delphi Financial Systems Architecture
E-Payroll
Integrated with
National Business Center
and
National Finance Center
E-Travel
Integrated with
Northrop Grumman GovTrip
and
Travel Manager
CASTLE
Consolidated
Automated System
for Time and
Labor Entry
Web-based, single-screen
TandA and Labor Distribution
Reporting system
Interfaced to Delphi
for Cost Accounting
Payment Collection
Internet Web site
Pay.gov
Delphi – Oracle Federal Financials
General Ledger, Accounts Receivable, Accounts Payable,
Purchase Orders, Project Accounting, Human Resources,
Fixed Assets, Asset Management, Logistics and Inventory
–––––––––––
HR/Payroll Interface Repository and Reporting
–––––––––––
Discoverer and Web Reports, Data Warehouse, DashBoard:
Business Intelligence, Balanced Scorecard, Web Portal
Interfaced Feeder Systems
 Obligation Interface
 Grants Management Systems
 GSA Supplies and Motor Pool
Invoice
Imaging and
Workflow
System
(170 Systems)
Electronic Data
Interchange
(EDI)
with vendors
(pilot: Xerox)
Central Contractor
Registration (CCR)
Interface being completed to
automatically update the Delphi
Supplier Table
Procurement
Management
System
Prism with
Cost Accounting and
Commitment Acct’g
Credit Card
Processing
Travel – Citibank
Purchase – US Bank
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Simplify your work5
Partnerships for Shared Services
 ESC recognized the need for an on-going private sector
partner for help marketing to & implementing new external
customers
 Implementation workload goes up & down
 Continuity to ensure expert & experienced staff
 Competed a Task Order on NIH’s CIO-SP2i contract

Won by SRA with IBM
 Mutually beneficial relationship
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Gained new customers
Marketing expertise
Implementation resources
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Partnerships for Shared Services
 ESC also has a contract with L-3 for
on-going operational support
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Data Center support
Application support
Operational accounting support
 Exploring a Blanket Purchase Agreement
 Consolidate support
 Compete Task Orders among vendors
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Partnerships for Shared Services
 Initially, some agencies thought the FM LoB was focused
on shared hosting of financial systems
 This view-point was too narrow
 No economy of scale realized just by moving from
1 large data center to another
 Hosting costs are a small part of any IT system’s costs
 The biggest potential economy of scale is in shared
application support
 Professional staff with expertise in running the system
 Biggest cost of system operations
 Only way to drive down cost of application support
is by using standard systems
 FSIO standards make this even easier
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Partnerships for Shared Services
 Alternatives for ensuring high quality
services through competition

4 Federal SSPs & __# Private SSPs all
competing against each other
vs.

Teams of Private & Federal staff working
together as SSPs competing against other
Private-Federal SSP Teams
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Benefits of Shared Services
Low Cost
 Customers get all the advantages of DOT’s financial system &
accounting services without contributing to DOT’s $125 million
capital investment

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ESC already provides 90% or more of most required solutions;
most additional needs can be met through configuration & set-up
and interfaces
Customers only pay 1-time implementation costs and their fair share
of annual operating & maintenance costs, plus future upgrade costs
Low Risk
 Much lower risk to migrate to a system that’s stable and has
been in production for 8 years than to migrate to a new customdeveloped system

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Delphi has 4,000 users and been successfully upgraded 7 times
Delphi has passed multiple CFO and SAS-70 audits
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Benefits of Shared Services
Experienced Team
 DOT has successfully implemented Oracle Financials for 20 customers

We know how to do this
 SRA/IBM business partner also has extensive experience

Helped with GAO’s successful implementation
 DOT follows Oracle’s Application Implementation Methodology (AIM)
Change Management & User Support
 Effective support for Change Management
 Provide 4 to 6 weeks of “desk-side” user support after go-live,
including the 1st month-end close
 Experienced Accounting & Help Desk staff know the Oracle application
& Federal accounting inside & out
 All system & user documentation available on-line
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Benefits of Shared Services
We Handle the IT Requirements
 Professionally run data center
 Meet all IT planning, IT security, Disaster Recovery,
SPII & Privacy Act requirements
DOT Strategy
 Don’t customize the COTS software
 Modify business processes to take advantages of best business
practices inherent in the Oracle software
 Don’t recreate the legacy accounting system
 Consolidate & standardize accounting operations
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Lessons Learned
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Executive support is essential
Clean up your data!
Streamline business processes
Clean up your data!
Consolidate accounting operations
Clean up your data!
Talk to your customer’s customers
Clean up your data!
Change management is critical
 Communicate, communicate, communicate
 Train, train, train
 Support, support, support
 Clean up your data at the detail level!
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Looking to the Future
Long-term Business Transformation effort
 Business drivers

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Plan for Oracle release 12i.FSIO – complete system re-architecting
Plan for Common Government-wide Accounting Code (CGAC)
Better link costs to program mission performance metrics
Automate Dept.-wide roll-up of performance data
Support cost accounting & Earned Value Management (EVM)
 Started summer 2007
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Workgroups & governance structure established
 Integrated procurement solution

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Automate commitment accounting
Eliminate duplicate manual data entry & reconciliation
Provide more useful information to program managers
Eliminate the need for “cuff records” systems
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For more information: www.esc.gov
Larry Neff
Marshal Gimpel
Deputy Chief Financial Officer
U.S. Department of Transportation
(202) 366-2335
[email protected]
Director
Enterprise Services Center
(405) 954-8980
[email protected]
Mike Upton
Bob Stevens
Deputy Director
Enterprise Services Center
(405) 954-8980
[email protected]
Manager, Customer Service
Enterprise Services Center
(405) 954-7143
[email protected]
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