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Briefing on Financial Systems Initiatives

Institute of Management Accountants

Washington Tri-Cities Chapter

December 3, 1998

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Background Current Accounting System - almost 20 years old Financial Management Excellence Report - (May 1995)

• Recommendations: – Single Budget Format– Cost Accumulation– Performance Management Structure– Management Information System– Business Systems Integration– New Accounting System

Legal Drivers• Chief Financial Officers Act of 1990,

• Government Performance and Results Act of 1993

• Clinger-Cohen Act of 1996

• Federal Financial Improvement Act of 1996 $1.1 Million Seed Money in FY 1998

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CFO Systems Principal Initiatives

Corporate Executive Information System (EIS)• Operational October 1998

Financial Data Warehouse (FDW)• Pilot implemented March 1998

Business Management Information System (BMIS)• Strategic Information Management Process conducted

May 1998 - September 1998• Draft Business Case - October 30, 1998

CFO Systems Relationships

Financial Data Warehouse

Budget Formulation

System

Accounting and Budget Execution

System

EISSenior Executives

Mid-level Managers

Program and Project Mgrs

P.O. Financial Staff

Budget & Finance Office Staff

P.O. Financial Staff

Budget Office Staff

E I S

Procurement

HumanResources

System

SystemTravel

System

Grants

MgmtSystem

AssetMgmt

System(s)Non-financial

Systems

Core FinancialSystem

BudgetFormulation

System

Business Management Information System Logical Model

Cost AccountingFinancial Reporting

FDW

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Corporate Executive Information System (EIS)

Purpose • Provide DOE executives and managers with immediate

access to summary level business information at their desktops

Data sources• MARS/FIS, DISCAS, Human Resources Data Repository,

Functional Cost System, Program Funding by Contractor and Location System, and the Strategic Alignment Initiative Tracking System

Users• 200 current users (Headquarters and Field)

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Corporate Executive Information System (EIS) continued

Status• Presently contains financial and human resources data

Future• Add procurement information, performance measures,

and programmatic data• Establish an EIS user group to plan and prioritize new

developments and improvements• Access Financial Data Warehouse as source for all

financial data• Expand user base (FY 1999 Projection = 500 users) • Add Web access

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Financial Data Warehouse (FDW)

Purpose• Provide program and project managers and their

staffs with rapid access to multi-level financial information at their desktops via standardized reports and ad hoc queries

Data Source• MARS/FIS

Users• 50 users (Headquarters)

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Financial Data Warehouse (FDW) - continued

Status• Contains a variety of obligation/cost-related data from

summary to detail levels as well as revenue/reimbursables data

• Fast track adds includes MARS trial balance data

Future• Become the Department’s full service financial data

warehouse • Add numerous Departmental and Contractor systems as

sources of data• Expand user base (Headquarters and Field, FY 1999

Projection = 250 users)• Add Web access

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Business Management Information System (BMIS)

Vision

A single, modern integrated Business Management Information System (BMIS) that is easy to use and reliable, and that provides the tools and capability necessary to effectively carry out the Department’s business management functions, manage agency financial operations, and report on agency financial status to central agencies, Congress, and the public.

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Business Management Information System - Financial Management (BMIS-FM)

Components• Budget Formulation System

– Purpose• Provide a modern, standardized budget formulation system

with performance planning capabilities for use by all DOE organizations (excluding the PMAs)

• Core Financial Management System– Purpose

• Provide a modern, flexible core financial management and project accounting system with performance measurement capabilities for use by all DOE organizations (excluding the PMAs)

Status• Strategic Information Management (SIM) Process

completed (September 1998) • Draft Business Case - October 30, 1998

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Strategic Information Management (SIM) Process

Background• The Clinger-Cohen Act of 1996 requires Federal

agencies to analyze and revise (as appropriate) their business processes prior to investing in new information management technologies to support those processes.

Description• The DOE’s SIM process is a collaborative effort involving

users and customers designed to fulfill this requirement, examine the various information management alternatives, and build a business case to support the recommended alternative.

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BMIS-FM SIM Process

Participation• Sixty-five employees and six contractor

support staff involved:

– representatives from most Headquarters and field organizations

– Fifty direct participants and fifteen advisors

Workshops• Gaithersburg, MD - June 2-4, 1998• Albuquerque, NM - July 21-23, 1998• Las Vegas, NV - September 15-17, 1998

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BMIS-FM SIM Process Deliverables

Identification of current DOE financial processes including inputs, outputs, sources, and customers

Recommendations for potential systems and process improvements

Business case to support major upgrade or replacement of current financial management systems

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BMIS-FM SIM Process Teams

SIM Planning Team Baseline Team Needs Assessment Team Analysis of Benefits and Cost Team Configuration Team Recommendations Team Advisors

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Potential Systems to be replaced by BMIS-FM

DISCAS FIS/MARS Budget Formulation System(s) Funds Distribution System Shadow Financial Systems Field Budget Execution Systems

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Why Are We Doing This?

Inability to meet business information needs of DOE managers and customers

Present system cannot respond rapidly to changing requirements

Inability to maintain the current systems in the long term

Electronic commerce

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BMIS-FM Project Phases

Planning Strategic Information

Management (SIM) Process• Business Case

– Status Quo– Hybrid System– COTS

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BMIS-FM Project Phases - Continued

Requirements• Teams:

– Core Project Team

– Key Support Team

– Planning, Budgeting, and Performance Team

– General, Costing, and Reporting Team

• Cost and Project Accounting Working Group

• General and Reporting Working Group

– Payments and Receipts Team

– Account Structure Team

– Technical Team

Solicitation and Award Testing and Implementation

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BMIS-FM Schedule

Complete SIM Process 9/98 (excluding business case)

Complete Business Case 12/98 Complete Functional and

Technical Specifications 7/99

Issue RFP for Budget Formulation

System 8/99 Issue LOI for Other Elements 9/99

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BMIS-FM Schedule - continued

Award Contract for BFS 11/99 Award Contract for Other Elements 3/00 Implement BFS at Pilot Site 3/00 Implement BFS at Remaining Sites 10/00 Implement Other Components at Pilot

Sites 3/01

Implement Other Components at

Remaining Sites 10/01

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Other Major Departmental Systems Initiatives

Travel Manager• Automatic Interface with DISCAS• Automatic Interface with E-mail• Paperless (Implementation in various stages)• Future: Web Access

Accounting Consolidation Initiative• Processing migrated from 18 sites to 3 service centers

(October 1996)• Payment processing consolidated at 3 service centers

(August 1997)• Consolidation into a single data base at each service

center (March 1999)• Planned FY 1999 DISCAS Enhancements

– ASAP Interface with Treasury– Electronic Invoicing

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Paperless Travel(Implementation in various stages)

100%• Albuquerque• Nevada• Oakland• Pittsburgh Naval Reactors• Schenectady Naval

Reactors• Strategic Petroleum

Reserve Office• Idaho• Oak Ridge• Savannah River

Partial• Headquarters

• Chicago

• Rocky Flats

• Ohio

Not Started• Federal Energy

Technology Center

• Richland

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Other Major Departmental Systems Initiatives - Continued

Electronic Commerce (EC Web)• Partnered with Procurement to develop

• Automatic Interface with DISCAS

• Currently Implemented at 4 sites– Headquarters– Oak Ridge– Chicago– Savannah River

• Plans to Implement Department-wide in FY 1999

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CFO Y2K STATUSNovember 25, 1998

Mission-Essential Systems

Renovation Validation* Implementation*Systems Complete Complete Complete 16 100% 81% 56%

Non-Mission Essential Systems

AssessmentSystems Complete Compliant 9 100% 89% *

*All CFO systems are scheduled to be completed on or before the OMB due date of March 31, 1999

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Questions

For Additional Information:Office of Corporate Financial Systems

Warren Huffer, Director

301 903-3761 warren.huffer@hq.doe.gov

-or-

Ike Smith, BMIS Project Manager

and Future/Development Team Leader

301 903-5264 ike.smith@hq.doe.gov