Department of the Navy

Office of the Assistant Secretary of the Navy (Financial Management and Comptroller)

Achieving Business TransformationThe Road to a “Clean Financial” Opinion

The Department of the Navy Approach

Mark Easton

NDIA ConferenceMarch 22, 2005

2

Today’s Systems Environment

Too many systemsRedundant, stove-pipedPoor integration, interoperabilityNo standard data structures

Limited visibility in budgetDiscrete elements of spending lacking

Difficult to support technologicallyDifficult to audit

3

Framework for DON Business Transformation

DoD Business Enterprise Architecture… BlueprintStandardize business processes & provide data standardsRequires systems portfolio management

Navy ERP… CornerstoneImplement a modern, integrated COTS software productReengineer business processes

Functional Area Manager Process… Transition ToolRationalize FM and Business systems… portfolio managementStandardize business processes

DoD Financial Improvement Initiative… Integrating PlanConsiders/integrates elements of Systems, Processes and Human Capital Documents Business Processes for Audit

Successful Business Transformation WillSupport Auditable Financial Statements

4

DIMHRS NCES / GIG

DoD Business Enterprise Layer

SPSTransaction HubsBusiness AnalysisUID, RFID, WAWF

Acquisition Program Visibility

Common Supplier

Engagement

Common Asset

Valuation

Real Property Inventory Visibility

Military Personnel Visibility

Enterprise Financial Visibility

• DDRS• DCD/DCW• SFIS• IGTS•DCAS•PB Framework•Global Edit Table•Funds Control•Commitment Acctg•Cost Acctg Methodology

Critical Enabling Initiatives/Programs (preliminary view)

Data Standards, Common Capabilities,

Transformation “Catalysts”

Material Transaction

Visibility

5

Enterprise Priorities – Auditability Impact

2005 2015

Cost of Audit Curve

Acquisition Program Visibility

Common Supplier

Engagement

Common Military Equip.

Valuation

Real Property Inventory Visibility

Military Personnel Visibility

Enterprise Financial Visibility

Material Transaction

Visibility

(Service ERPs Implementations)

All DoD Enterprise Capabilities contribute to downward pressure

on audit costs (auditability) in varying degrees

$ in

Billi

ons

6

Navy Systems Transition Summary

NOTIONAL

SCHEDULED

MFCS

STARS FL

STARS HCM

SYMIS

Cabrillo

2005 2015201420132012201120102009200820072006

MSC FMS

IMPS

Sigma

DIFMS

DWAS

NAVY ERP

SABRS

NSMA

BUSINESS

TRANSFORMATION

DONTARGET

7

DODEnterprise

ComponentEnterprises

Finance AT&L P&R NII

DIMHRS NCES / GIG

ARMY NAVY MC DLA

ArmyEnterprise Architecture

Alignment toOSD Enterprise

Portfolio Mgt

AT&L, Fin, P&R, NIIIRB Participants

NavyEnterprise Architecture

Alignment toOSD Enterprise

Portfolio Mgt

AT&L, Fin, P&R, NIIIRB Participants

Marine CorpsEnterprise

Architecture

Alignment toOSD Enterprise

Portfolio Mgt

AT&L, Fin, P&R, NIIIRB Participants

DLAEnterprise Architecture

Alignment toOSD Enterprise

Portfolio Mgt

AT&L, Fin, P&R, NIIIRB Participants

Air ForceEnterprise Architecture

Alignment toOSD Enterprise

Portfolio Mgt

AT&L, Fin, P&R, NIIIRB Participants

OSD Required Integration to DOD Enterprise

FederatedBusiness

EnterpriseArchitecture

Defining the DoD Business Enterprise

SPSTransaction HubsBusiness AnalysisUID, RFID, WAWF

Data Standards, Common Capabilities,

Transformation “Catalysts”

AF

8

Today

FRSRegional

TravelManager

Plus

DCPS

STARSONEPAY

CDB/DONIBIS

DCPDS

FDRFDR

CitiDirect

DCMA

ADSAutomated

DisbursementSystem

CERPSNational

Army/Airforce/ExternalActivity

UADPS

DEF/UDLCERPS Daily and Monthly

registers

MOCAS

DEBX

Treasury 3-Way MatchUpdate

ExpendituresCreate Invoice

Back OutincorrectEntries

(As required)

confirmation/rejection

PaymentRequest

EmployeeMaster Data

Vendor

Funds Validation

Large Contract Award

Direct CiteFunding

Document

EmployeeMasterData

PayrollData

Billings

Billings

Disbursements

Expenditures

Vendor Master(Commercial)

Appropriations LedgerReporting

Line -of-Accounting

Order

Order

Ledger Summaryfor WCF

Vendor InvoiceGoods Receipt

Funds Availability,Commitment Obligation

Claims

Billings

Disbursement

WhiteCollarTime

CCR

DAAS

MILSTRIPPhone Order

MILSTRIPWeb Order

MatchVendor

Status

DD250

Recon -cilliation

DisbursementsCollectionsCorrections

FADA

WYPC

PPVM

STARSBilling

CMET

MPCSLabor - LKE

SPSPID/PR

IATSClaim

OPAC

Collection

AutomatedInvoice

File

Billings

Billings

Expenditures

SDMM

PP

QAPM

HR

FICO

AM

PSWF

IS

SAP

MISILFunding Document

BUPERS

MilitaryPersonnelData

UICP Material Master

P-Card

9

Future

SD

MM

PP

QAPM

HR

FI

CO

AM

PS

WF

IS

Navy ERP(SAP)

Material/Product Visibility

Personnel VisibilityDIMHRS/CIVPAY

SPS/Common Supplier Suite

Treasury/ Financial Reporting

Future Environment Supported by Net-Centric Principles

10

Challenges

Understanding/Applying BMMP PrinciplesInstituting clear DON Leadership over business process transformationChange Management and CommunicationCoordination/Cooperation between Technical (CIOs) – Business Managers (COOs) – Resource Managers (CFOs)

DoD Organization and Culture Make These Even More Challenging