FOR OFFICIAL USE ONLY

ASMC LuncheonSouthside Virginia

Chapter

January 23, 2014

Agenda

• Credentials• Enterprise Resource Planning (ERP) in the

Department of Defense (DoD)• About the Defense Agencies Initiative (DAI)• Financial Transformation Deep Thoughts

2

Credentials

• About Me• 19 years implementing Enterprise Resource Planning

(ERP) Systems• 9 years with the Department of Defense (DoD)

supporting DFAS, DISA, DARPA, DLA, and DCMA

3

ERP in the DoD

• Lifecycle Spending (source DoDIG)• Army (GFEBS, LMP)• Navy (NAVY ERP)• Air Force (DEAMS)• DoD (EBS, DAI)

4

What ERP should be doing

5

• Large School District• Delivered eCommerce portal for schools to order

supplies and receive orders in one business day. Received 1.5 mm rebate from Office Supplier based on strategic sourcing of supplies

• Government Agency• Delivered enterprise process tools to extract data

from airline tickets for managerial analysis

• Foreign Government• Consolidated 20 legacy systems and placed 250,000

employees on single payroll, recouping millions in improper payments

Where are the DoD Stories?

6

About DAI

7

The Mission of DAI (March 2007)

“Transform the budget, finance, and accounting operations of the DoD Defense Agencies to achieve accurate and

reliable financial information in support of financial accountability and effective and efficient decision making throughout

the Defense Agencies in support of the missions of the warfighter.”

9,386CONUS/OCONUS

Users 99.55%System Availability

51 billionObligations Processed

12Agencies in Production

< 5 secondsAverage Response

Time

92%Electronic Invoices

200Work Instructions

3%Manual Journal

Vouchers

About DAI

8

About DAI

Budget to Report (B2R)• Enter funds from Treasury• Allocate funds to organizations• Working Capital Fund• Update general ledger• Update reports

Order to Cash (O2C)• Set up agreements• Collect cost and calculate bill• Working Capital Fund• Billing and collection• Update general ledger• Update reports

Procure to Pay (P2P)• Create commitment• Create obligation• Perform receipt & acceptance• Working Capital Fund• Update general ledger• Update reports• Advanced Procurement System• Contract Lifecycle Management• Direct Treasury Disbursing

Acquire to Retire (A2R)• Define asset• Determine in service date• Determine depreciation• Update general ledger• CIP Reporting• Update reports• Retirement of asset

Cost Management (CM) (Cost Accounting)• Collection of all costs such as: Activity Based Cost, Job Order

Number, Process costs and Standard costs• Allocation of indirect costs• Working Capital Fund• Update general ledger • Update reports

Hire to Retire (H2R) (Time and Labor only) • Automated individual or timekeeper input

into system• Time allocation for Cost Accounting purposes• Automatic generation of time cards• Automated Absence Management

Proposal to Reward (P2R) (Grants Financial Management)

• Award a Grant• Apportion and allotment funding• Track and close grant• Oversight and reporting

Budget Formulation(additional B2R process capabilities)

• Develop budget for out year and POM

• Support forecasting, and “what if” scenarios

• Generate required documents

Re-Sales Accounting (DeCA Unique)• Non-Appropriated Fund FFMIA requirements• Perform accounting for the DECA inventory and any other

Agencies that have inventory for sale

Legend: BEA E2E Business ProcessesOther Business ProcessesDelivered capabilities Increment 2 capabilities

Initial General Fund Capability

Telecom

Working Capital of Revolving Funds

Order to

Cash

Procureto

Pay

Acquire to

Retire

Time &

LaborRe-sale Accounting

GrantsFinancial Management

Budget Formulation

CostAccounting

Initial General Fund

and Working Capital

FundCapabilities

Budget to

Report

DAI Moving to Business Outcomes

Old Way• We are implementing

DAI so we (financial statements) can be “auditable”

• We are eliminating costly and time consuming reconciliations

• We want to focus on financial management

New Way• We are building

capabilities to automatically track segregation of duties

• We are solving “root cause” issues for obligation and expenditure variances

• We want to extend business processes for maximum integration

10

DAI Moving to Business Outcomes

• Examples• Time and Labor

• Automated leave requests with full audit trail

• Procure to pay• Improved integration with contracting systems (standard line

of accounting)

• Direct disbursing/collecting with Treasury• Eliminate system interfaces, improve FBWT

• Budget formulation• Improved tools, forecasting, automation

11

Financial Transformation Deep Thoughts

• People• Process• Technology• Strategy

12

Conclusion

13

Thank You!