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Financial Management Line Of Business. Mary J. Mitchell, GSA Kim Farington, OMB AGA Northern Virginia Chapter December 5, 2007. The Framework. Objective and Approach. Strategic Objective
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Financial Management Line Of Business Mary J. Mitchell, GSA Kim Farington, OMB AGA Northern Virginia Chapter December 5, 2007
Objective and Approach • Strategic Objective • Implement Government-Wide solutions that yield lower cost and risk results in financial management activities • Approach • Standardize financial business processes • Create government-wide accounting code • Emphasize use of Shared Service Providers • Establish common performance measures to drive behavior • Strive for Transparency and Uniformity to enable better communication and shift emphasis from reporting to analysis
Why is FMLoB Different? • Consensus exists among agencies for developing Common accounting standards and data • Variation drives unnecessary customization • Using lessons from DoD’s SFIS project • Standard business processes reach agreement on process flows, business rules and data attributes • OMB Policy on Migration • May 22, 2006, Competition Framework memo • Agencies must either migrate to a Federal or Commercial SSP or be designated as a Federal SSP • Agencies want ways to reduce the costs and risks of buying and implementing financial systems
The Future State • Agencies use common accounting standards and business processes • Agencies able to report compliance with FFMIA • Extensive use of Shared Service Providers • Core and feeder systems are integrated • Accurate financial information for decision-making
Standardization – CGAC and Core Business Processes • Common Government-wide Accounting Classification (CGAC) Structure • Final structure issued • Business Processes (BP) • Funds Control – Finalization • Payables Management – Finalization • Receivables Management – Draft • Financial Reporting – Next • Reimbursable - Planning • Next Steps: • Refine concept of operations (big picture) • Agreement on standards sequence and implementation timeline
Collaboration with Industry • Subject matter experts are participating on business process standards Working Groups from Certified software vendors and RFI respondents • Exposure drafts distributed to various industry groups for comment
CGAC Structure - Goals • Short term outcomes: • Promote a universal understanding of data elements • Help agencies standardize accounting codes internally • Longer range outcomes: • Help standardize financial management Government-wide • Ease an agency’s transition to a new system or an SSP • Aid in the aggregation and comparison of data across the government • Facilitate data exchange among an agency’s financial systems
Sequencing Plan and Implementation Strategy Interim Activities:While efforts are under way to incorporate the FMLoB standards into certified FSIO software, agencies can: • Gain an understanding of the standards, begin to adopt standard terminology and definitions, and consider improving system-independent processes to adopt best practices. • Begin analyzing the gap between existing data and the standard data. • Share the standards with any of the agency’s other system modernization efforts. Assumptions: • Implementation will occur when agencies modernize their systems • Long term effort
FMLOB Performance Measures • Objective: Enable agencies to assess their relative level of performance and provide ways to increase performance. • Background • To compare performance across the Federal government, normalize the measures (e.g. consistent method of collection) • Phase I Service Assessment Guide (SAG) released on March 30, 2007 • CFO Act agencies report on performance measures on core financial system since April 2007 • Focus of Phase I service measures: • IT Hosting and Administration • Application Management. • Next Steps: • Work with agencies to assess 6-months’ performance data from Agencies and SSPs • Refine to enhance value over collection burden
Financial Shared Service Providers • Goal • Limited Number of high performing Shared Service Providers (SSP) • Agencies should focus is on mission areas – not back-office functions • Gain economies of scale and skill from use of SSPs • Four Federal SSPs are used by almost 80 small to micro-agencies and a number of CFO Act agencies and bureaus use them • Some agencies have outsourced operations to commercial firms • FMLoB tools to help streamline and reduce risk of migration to SSPs • Services Provided by SSPs • Technology Hosting and Administration • Application Management Services or Software Management • System Implementation Services • Business Process Services (not mandatory for commercial providers)
References/Point of Contact • FMLOB documents are available at FSIO.gov • Published and Exposure Drafts • Performance Measures Service Assessment Guide • Common Government-wide Accounting Classification Structure • Funds Control Business Process • Payments Business Process • Questions: fsio@gsa.gov • Mary Mitchell • FSIO Executive and FMLOB Program Manager • Office of Technology Strategy General Services AdministrationOffice: 202-501-0202 Fax: 202 219-1533 • E-Mail: mary.mitchell@gsa.gov