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Standardize, Consolidate, and Optimize Financial Management
Presented by David M. FisherDirector, Business Transformation AgencyDepartment of DefenseMarch, 2009
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BTA Established to Advance Defense Business
TransformationOn October 7, 2005 the Deputy Secretary of Defense signed a memorandum establishing the Defense Business Transformation Agency (BTA).
The Agency is specifically responsible as a corporate- level service organization for the DoD, accountable for successful definition and execution of DoD-wide business improvement initiatives and system investments.
The BTA Mission is to guide transformation of business operations throughout the Department of Defense and to deliver Enterprise-level capabilities that align to Warfighter needs.
BTA’s Six S’s of Success
Standardize essential operational data, processes, and business rules in order to significantly improve the ability to process and share information throughout the enterprise
Simplify overly complex business rules that unnecessarily complicate operations and lead to expensive and risk-filled solutions
Streamline core end-to-end business processes to eliminate non-value added activities
Stovepipe operations must be eliminated from solution design and deployment, so that the historically narrow-focused approach to business gives way to an approach that seeks to optimize end-to-end processes
Systems and Services must be deployed in a timely and cost effective manner with a conscious focus on sound requirements management and comprehensive risk mitigation
Strategic Alignment of DoD’s approach to optimizing its business mission area by ensuring a common approach and set of principles that will be consistently
governed and evaluated.
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Definition: DoD’s common business language that facilitates the consistent collection and reporting of financial information.
Benefits: Standardizes financial reporting data across DoD. Enables decision-makers to efficiently compare similar programs and
activities across DoD. Provides decision-makers the level of detail they require for information
retrieval and auditability. Improves the efficiency of maintaining business systems, thereby
reducing costly maintenance and translation of non-standard data.Accomplishments:
Established and maintained SFIS Governance Board that has successfully defined 71 data elements that are engrained in the BEA and IRB process.
Developed SFIS computer-based training application that supports standard implementation and configuration.
Integrated SFIS requirements into the OMB Federal Common Government-wide Accounting Classification (CGAC) requirement.
Next Steps: Focus on standard implementation and configuration in target business
systems.
Standard Financial Information Structure
(SFIS)
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USSGL SFIS Transaction Library
Definition: The U.S. Standard General Ledger (USSGL) SFIS Transaction Library maintains an DoD enterprise-wide standard set of detailed general ledger transaction requirements that incorporate budgetary, proprietary, and memorandum accounts that link to specific business events.
Benefits: Standardizes account transaction postings across DoD. Removes interpretation from Treasury’s USSGL high-level guidance. Decomposes 559 high-level business events and generalized posting guidance from the
Treasury Financial Manual into 4,363 detailed business events and specific debit/credit pairings.
Compliant with Treasury, FASAB, OMB and DoD Financial Management Guidance. Along with SFIS and the BEA, provides an enterprise-wide standard for updating DoD
existing and deploying new business systems. Accomplishments:
Included SFIS element requirements in the USSGL SFIS Library to provide standard implementation guidance.
Updated Library to include all of Treasury’s FY 08 USSGL updates. Performed Lean Six Sigma analysis to streamline USSGL Library update process.
Next Steps: Work with Treasury to incorporate these detailed USSGL requirements at the Federal
level.
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DoD Defense AgenciesCurrent Systems
Environment
DAU
DARPA
DeCA(Non-Resales)
DCAA DCMA
DFASDISA
(CS & TSEAS)
DLSAAFIS BTA
DTIC
DTSA
DTRA
DoDEA DoDIG
JCSMDA
OEA TMA
DPMO DSCA
DSSPFPA
USUHS
WHS
CAFRMSCAFRMS
WAASWAAS
eBizeBizDBMSDBMS FAMISFAMIS
GAFSGAFS SOMARDSSOMARDS
CUFSCUFS
STANFINSSTANFINS
DeCA(Resales)
DISA (HQ)
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Target Environment: Organizations and
Scope
DAU DARPA DeCA DCAA DCMA DFAS DISA DLSA
AFIS
BTA
DTIC
DTSA
DTRA DODEA DODIG JCS MDA OEA TMA
DPMO
DSCA
DSS
PFPA
USUHS
WHSOrder-to-Fulfill
Acquire-to-Retire
Budget-to-Report
Procure-to-Pay CostAccounting
Time& Labor
BudgetFormulationManagement Reporting
DAIDAI
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Defense Agencies Initiative (DAI)
Program Description• Oracle implementation for Defense
Agencies and Field Activities• Pilot site for initial Go-Live: BTA
• $400M business annually
• ~350 users at 4 locations
• Contract award to pilot Go-Live in 12 months (October 2008) for ~ $20M
• Cost included foundation for the DAI Global Model for all other Agencies
• Process-focused teams and scope: Procure-to-Pay; Acquire-to-Retire; Budget-to-Report; Time & Labor; Cost Accounting; Order-to-Fulfill
• Approved pilot for all-ERP based Procure-to-Pay including contracts, sourcing, and electronic submission of vendor receipts/invoices
• Next round of deployments underway
Success Factors• Program built around horizontal end-to-end
processes vice individual functions• Adopt the COTS for scope and approach
(only required 7 interfaces for pilot site)• Focus: minimally sufficient solution; can add
more complexity later if necessary• Strong, visible, consistent leadership
• PM had direct access to Agency Director, who played a hands-on role both during the design and deployment phases
• Priority of the program was clear to all agency employees via consistent top-down communications
• Strong participation from several Agencies and DFAS for functional expertise, testing, training, data management, and operations
• Government ERP experts from BTA assumed leadership for most implementation responsibilities with prime contractor supporting them
Biggest Challenges• Quality of legacy data for conversion• Workforce change management
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It’s All About
Change
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Referential Integrity in an Exclusively ERP World
Purchase Requisition
Purchase Order
Goods Receipt
Invoice Receipt
Expenditure
P U R C H A S E T O P A Y P R O C E S S
Contract / Sourcing
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Purchase Requisition
Purchase Order
Goods Receipt
Invoice Receipt
Expenditure
PR
PR LineNumber
PR LineFunding ID
ERP Purchase to Pay Process
Contract Writing System
The VendorThe Vendor
PR
PR LineNumber
PR LineFunding ID
PIIN
CLIN
SLIN
Cross Reference TablePR/PR Line Number/PR Line Funding IDPO/PO Line Number/PO Line Funding ID
PIIN/CLIN/SLIN
MOCAS System Entitlement
APVM(Prevalidation)
PPVM(Prevalidation)
MATCHFrom X-Ref
ReadyToPayFile
ObligationValidation
Confirmation
Receiving
Activity
MaterialPIIN-CLIN-SLIN
ReceiptReport
PIINCLINSLIN
Receipt Validation By PIIN CLIN SLIN
InvoicePIIN-CLIN-SLIN
InvoicePIIN-CLIN-SLIN
Contract InfoPIIN-CLIN-SLIN
InvoicePIIN-CLIN-SLIN
InvoicePIIN-CLIN-SLIN
WAWF
WAWF
Disbursing System
ReceiptValidation From X-Ref
UnblockInvoice
PIIN-CLIN-SLIN
BlockedInvoice
Use x-Ref
DisbursementPIIN-CLIN-SLIN
DisbursementWith Contract
Info Only
Treasury
EDA
MOCAS System Contract Admin
Manual
Contract InfoPIIN-CLIN-SLINContract Info
PIIN-CLIN-SLIN
Contracting Outside the
ERP
Goods Receipt and Invoice
Receipt Outside the ERP
Disbursing Outside the
ERP
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