How Current Government-wide Initiatives Will Shape DoD in the Future. Presented to ASMC PDI May 29, 2015

Transcription

1 How Current Government-wide Initiatives Will Shape DoD in the Future Presented to ASMC PDI May 29, 2015

2 1. DoD financial management will Federal Government financial management trends. Lead Follow Operate independently of 2. DoD s mission makes us unique compared to non-defense agencies. True False Pop Quiz 3. Non-Defense financial managers face challenges similar to those we face at DoD. True False 2

3 Bottom Line Up Front: Three Distinct Perspectives Government-wide Management Perspectives Compliance Financial Audit Government-wide Accounting (GWA) Transparency American Recovery and Reinvestment Act of 2009 (ARRA) Digital Accountability and Transparency Act of 2014 (DATA Act) Efficiency and Effectiveness Human Capital Office of Management and Budget (OMB) Benchmarks / Cost Culture Shared Services Takeaways and Future Implications The size of DoD always makes us an important element for management initiative We participate in common efforts to improve efficiency and effectiveness We can no longer afford to do our own thing 3

4 Government-wide Management Perspectives DoD as Part of the Total Federal Government Share of Total Expenses: 22% Share of Discretionary Budget: 53% $659 billion $2,960 billion $525 billion $596 billion Share of Civilian Workforce: 36% Share of Total Human Capital: 66% 1.3 million 724, million civilian 724,000 civilian 1.3 million military FY 2014 figures sourced from the FY 2016 Budget of the U.S. Government and Sep 2014 Defense Manpower Data Center reports By Almost Any Criteria, DoD Is a Very Large Player 4

5 Government-wide Management Perspectives Management Related Initiatives Government-wide DoD Compliance Federal Government statements remain modified (e.g., disclaimer) due to DoD Treasury provides most centralized processes for non-defense agencies One of only a few agencies without a clean opinion DFAS provides majority of DoD services Transparency Implementation of the DATA Act is a visible priority Business systems, data standardization, and sensitive information will make DATA Act compliance a challenge Building on Experience of ARRA Efficiency and Effectiveness Benchmarking measurements provide agency comparisons Moving to shared services is a challenge DoD has few peers Support costs being scrutinized to fund emerging mission needs DoD sharing our shared services experience 5

6 Compliance DoD s Audit Ascent OMB, Treasury, and GAO are all supportive of DoD plan and progress End FY 2017 Statutory Direction Achieve Full Agency Financial Statement Audit Readiness and Proceed to FY 2018 Audit FY 2014 Statutory Direction Achieve Audit Readiness of General Fund Statement of Budgetary Resources (SBR) 1994 Initial DoD Efforts Begin 2009 Initial Priorities Established 2005 FIAR Office Established Pre-2009 Audit emphasis largely within only the comptroller organizations Post-2009 Audit efforts involve all functional areas enterprise-wide 6

7 Compliance Audit Success Requires Perseverance Experience of other Federal agencies FY 1996 FY 1998 FY 2000 FY 2002 FY 2004 FY 2006 FY 2008 FY 2010 FY 2012 DHS DOJ Treas USDA State Key: Disclaimer Qualified Opinion Unqualified Opinion 7

8 Compliance Prior Business Process DFAS/DoD Agency s Financial Statements DDRS Central Accounting System FACTS II IFCS FACTS I IRAS GFRS Combined Statement FMS 2108 SF 133 Program and Financing Schedule Treasury Annual Reporting OMB President s Budget 8

9 Compliance Current Process with GTAS DFAS/DoD Agency s Financial Statements Central Accounting System Edits DDRS GTAS GFRS Treasury BFS OMB FMS 2108 / Combined Statement Treasury Annual Reporting SF 133 Program and Financing Schedule President s Budget 9

10 Compliance Government-wide Accounting Overview Government-wide Accounting (GWA) is a Treasury Bureau of the Fiscal Service initiative streamlining central accounting, reporting and reconciliation processes Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Central Accounting and Reporting System (CARS) Daily reconciliation of collections / disbursements and accounting 10

11 Transparency DoD s Recovery Act Reporting Scope $800 Federal $787 billion Other 8 Energy Education Health Care DoD $7.1 billion 1% of total ARRA $600 $400 $200 Protecting the Vulnerable Infrastructure & Sciences State and Local Fiscal Relief Tax Relief (1%) Military Construction Facility Sustainment, Restoration and Modernization Homeowner s Assistance Program Near Term Energy-Efficient Technology Research $0 ARRA Appropriations Energy Conservation Investment Program Most Projects Relatively Discreet, but Reporting Was Still Labor-Intensive 11

12 Transparency DATA Act Summary Became law May 9, 2014 (Pub. L ) Amended the Federal Funding Accountability and Transparency Act of 2006 (FFATA) to require full disclosure of Federal agency expenditures Goals Improve availability, accuracy, and usefulness of Federal spending data Simplify financial reporting Key requirements Develop Government-wide data standards Report obligations and outlays by: o Appropriation o OMB Object Class Code o Program Activity Code Submit delinquent debt to Treasury at 120 Days (vice 180 Days) Builds on and Expands Coverage of Recovery Act 12

13 Transparency DATA Act Implications DCFO is the Senior Accountable Official for DoD, working closely with Contracting, Program/Budget, and DFAS 57 proposed data elements are being defined and reviewed most already exist High expectations for data quality as the quantity of data available to the public explodes Use existing systems when possible (e.g., DDRS), but some requirements may need new systems development Sensitivity and classification levels of our data makes this even more challenging 13

14 Efficiency and Effectiveness Human Capital Initiative: DoD FM Certification Quarterly Newsletter Certification Update Lessons Learned Best Practices Practical Exercise Follow Kelly, a GS-14, through each step of certification DoD FM Certification Handbook Program background & overview Detailed requirement descriptions Checklist to get started Overview and Training Videos Video series introducing key elements of program Requirements Datasheets Outline requirements for each level Learning History Worksheets (LHWs) Organize your prior training using these worksheets Competencies & Proficiency Levels Defines each of the 17 FM competencies and provides examples at each Proficiency Level FM mylearn E-catalog of FM courses aligned to FM and leadership competencies DAWIA/FM Certification LHWs Pre-populated with acquisition courses, helping you focus Frequently Asked Questions Compilation of over 100 questions, organized by category LMS Job Aids Provide step-by-step instructions for all FM LMS tasks LMS User Quick Start Guide Outlines the Three-step Process for achieving certification using the FM LMS DoD FM Certification Will Be the Foundation Government-Wide 14

15 Efficiency and Effectiveness DoD Benchmarking vs. Other Agencies Agency FM Spend to Agency Adjusted Obligations (%) FM FTE Spend to Total Org (%) FM Contract Spend to Total FM Spend (%) Financial Systems Cost per User ($) Cost per Receivable Transaction ($) Cost per Vendor Invoice ($) Interest Paid on Vendor Invoices (%) No. of Public Receivable Transactions Paid per Accounts Receivable (#) No. of Vendor Invoices Paid per Accounts Payable FTE (#) Vendor Invoices Manually Entered into the Financial System (%) DHS DOC DoD DOE DOI DOJ DOL DOT ED EPA GSA HHS HUD NASA NRC NSF OPM SBA SSA State Treasury USAID USDA VA RANKING 24 Vendor Invoices Paid On-Time (%) 15

16 Efficiency and Effectiveness DoD Internal Cost Focus More internal shared services? Activity Consolidation/ Pooling Automation Electronic Commerce Flattening the organization Organization Structure Capabilities and Mindsets Sourcing and Contract Optimization How many contracts do we need for the same thing? e.g., Lean Six Sigma Lean Process Optimization Demand Reduction What can we not do? We are doing all of these but can we do more? 16

17 Large ERP program implementations often unsuccessful led to questions that became the genesis for the emerging Federal Government shared services initiative The DoD track record Defense Management Resource Decisions drove consolidation (or increased consolidation) of: o Finance and accounting (DFAS) o Communication / IT / data processing (DISA) o Logistics / supply chain (DLA) Generally very successful in reducing costs Additional value in driving standardization Four entities are identified as Federal Shared Service Providers for financial services Administrative Resource Center (Treasury, Bureau of the Fiscal Service) Enterprise Services Center (Department of Transportation, Federal Aviation Administration) Interior Business Center (Department of the Interior) National Finance Center (Department of Agriculture) DoD involvement DoD already providing civilian payroll service Efficiency and Effectiveness Shared Services Other DoD opportunities with electronic invoice Differs from Treasury centralized services (e.g., disbursing, IPAC) Definite Value Proposition but Not Without Changes in Mindset and Process 17

18 Takeaways and Future Implications DoD is a significant element of any Government-wide initiative Size will always be material to any effort to focus on resources National defense product tends not to have a direct / citizen-centric focus DoD follows in most compliance-related areas, but can lead in demonstrating or providing key capabilities associated with transparency and shared services DoD resources can provide benefit to other Federal agencies DoD Will Begin to Resemble the Rest of Government in Terms of Standardization and Compliance Government May a Follow DoD Lead in Other Areas 18

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