Financial Management Service FMS Quarterly Intelligence Forum Presentation

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Financial Management Service (FMS) Quarterly
Intelligence Forum Presentation

• May 29, 2009

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Agenda

• Overview of Accounting Standardization Budget
  Management Line of Business - Holden Hogue
• Overview of Data Harmonization Marcel Jemio
• CGAC / FMLoB Reimbursables Robin Gilliam
• FIRST/GTAS - Jeff Hoge

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Strengthening Accountability and Integrity in
Accounting and Reporting

• Two lines of business
• Financial Management and
• Budget Formulation and Execution (Budget
  Execution
• and FM Integration)
• FMS Data Management and standardization
• FMS Data Governance

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Standardizing Budget Business Processes

• Budget Execution and Financial Management Line of
  Business (BEFMLoB)
• Identified core budget execution process maps
• https//max.omb.gov/community/x/EgAFAw
• Utilized DOD BTA USSGL SFIS Transaction Library
  for government-wide use

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BEFMLoB
Financial and Budgetary ReportingData Exchange
Current Structure

• Deficiencies
• No single source of data
• Multiple data exchanges between multiple
  partners
• Multiple schemas based on data being exchanged
• Data not available electronically

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BEFMLoB (cont.)
Financial and Budgetary Data ExchangeConcept
Model Data Exchange Proposed Structure

• Benefits
• Provides a single source for budgetary and
  financial data
• Reduces required number of exchanges
• Standard data exchange schema
• Makes data available electronically

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Enterprise Data Architecture (EDA) Activities
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EDA Activities (cont)FMS Financial Management
Data Registry

• Implemented in 2008
• Provides an Inventory of Financial Management
  Data
• Documents Data Standards for Name, Format,
  Length, Business Definition, Business Owner, etc.
  (ISO 11179 metadata)
• http//fms.treas.gov/eda

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EDA Activities (cont)

• Data model
• Reflect harmonized data models in XML/UML (eg.
  Treasury Account Symbol class)
• Self-describing web site mind maps, mapping
  templates, relational browser
• http//fms.treas.gov/eda/xml

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Implementing CGAC and FMLoB at FMSCommon
Government-wide Accounting Classification
StructureFinancial Management Line of Business

• May 29, 2009

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What is CGAC and How does it impact FMS?

• CGAC is the Common Governmentwide
• Accounting Classification Structure with
• 60 data elements
• Version 1.0 was published in July 2007
• Version 2.0 to be published by end of 2009
  www.fsio.gov
• FMS is concerned with the data elements that are
• collected for
• Fund Balance With Treasury transactions and
  reporting (TAS/BETC) http//fms.treas.gov/gwa/fact
  sheet_tas.html
• the USSGL accounts attributes associated with
  quarterly and year-end financial reporting

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Implementing CGAC at FMS

• TAS
• Bureau Code
• USSGL Attributes

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Overview of CGAC TAS Components
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What FMS needs to do to Implement CGAC TAS

• Data Conversion
• Updating FMS data base from a 2 digit Department
  Regular (DR) code to 3 digit Agency Identifier
  (AID) code
• Technical/structure change to database Account
  Maintenance
• Change to actual data
• Change agencies from their 2 digit DR to 3 digit
  AID

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Implementing CGAC TAS (cont.)

• First - FMS needs to inform agencies
• Sent CFO letter and list of expenditure accounts
  informing of how codes will change June -
  August 08
• Received and incorporated comments
• Will send CFO Letter and complete account
  crosswalk from current TAS to new CGAC TAS and
  new Standard Bureau Code - August 09
• Comments due September 09

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Implementing CGAC TAS (cont.)

• Second - FMS needs to Move Agencies
• to new Department Regular Codes
• The following agencies will start to use their
  new 2 digit Department Regular Code and new Main
  accounts in support of moving to their 3 digit
  agency identifier code
• Treasury Managed Trust Funds April 13, 2009
• Legislative 2010 possible new main accounts
• International Assistant Programs (IAP) 2010
  possible new main accounts

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Implementing CGAC TAS (cont.)

• Third - FMS will start to transition
• From collecting the current Treasury Account
  Symbols
• To collecting the CGAC TAS for our transaction
  and reporting systems beginning in 2011
• This implementation plan, per each FMS
  application, is under development
• Most of FMS applications will accept display
  both current and CGAC TAS, except FIRST GTAS
  https//www.fms.treas.gov/gtas

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Implementing the Governmentwide Standard Bureau
Code

• Working with OMB to align and standardize the
  Bureau Codes Governmentwide

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Implementing the USSGL CGAC Attributes

• Working with FSIO, OMB and the USSGL to finalize
  the USSGL attributes for the GTAS implementation

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Financial Management Line of Business
(FMLoB)Standardizing Financial Management across
the Government

• Financial Management Lines of Business (FMLoB)
• FMS working very closely with OMB and FSIO on
• Payment Funds Management
• Receivables
• Reporting
• Reimbursables (Buy/Sell) Management
• Standardize an interagency agreement
• Develop communication tool for processing
  reimbursable activity
• Help to remove audit finding concerning
  elimination entries

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Managing Agency Reimbursable (Buy/Sell)
Agreements FMLoB Reimbursables
Agreement
Seller
Buyer
Invoice
Key Initiates
Approves
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Reconciling Elimination Entries
Annual Department Financial Report
Beyond FMLoB Reimbursables
Trading Partner Quarterly Reporting and
Reconciliation
Daily Reimbursable Buy/Sell Agreements
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FMS Contact Information

• Robin Gilliam, CPA, PMP CGAC, FMLoB
  Standardization
• robin.gilliam_at_fms.treas.gov, 202-874-9133
• Future Website page Finanicial Management
  Budget Standardization
• on www.fms.treas.gov

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• FIRST/GTAS
• Financial Information Reporting Standardization
• Governmentwide Treasury Account Symbol (TAS)
  Adjusted Trial Balance (ATB) System
• May 29, 2009

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Integrity from Merriam-Webster

• Firm adherence to a code of especially moral or
  artistic values incorruptibility
• An unimpaired condition soundness
• The quality or state of being complete or
  undivided completeness
• Synonyms, see honesty

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What We Want to Talk About

• What is FIRST?
• Why do we need it?
• What are the its key concepts?
• What benefits can we expect and when?
• What are some of the system characteristics?
• How do we get ready?
• My challenge Can I change your mind?

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What IS FIRST?
GFRS
USSGL Database SID
USSGL based Reporting GTAS
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What We Will Collect

• FMS will collect quarterly USSGL-based trial
  balances, similar to FACTS II but expanded to
  cover proprietary USSGL accounts and all fund
  symbols.
• FMS will edit the inbound trial balances using
  the central accounting data, Bureau of Public
  Debt data on investments and borrowings, and
  rules of the USSGL.
• FMS will provide instant and actionable feedback
  to agencies and their auditors.

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Why do we need FIRST?

• Reporting by agencies to Treasury and OMB is
• inconsistent
• redundant
• It emphasizes reporting rather than accounting
• Results are bad

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Why do we need FIRST?Example of a Bad Result
Net Outlays

• Gross disbursements
• Less Offsetting Collections
• Equal Net Outlays
• Less Receipts
• Equal Deficit
• FY 2008 Net Outlays reported by agencies via
  monthly 224/1219/1220 differed from SBR outlays
  by 162 billion government-wide.

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Why do we need FIRST? Conceptual Issues

• Our model doesnt work
• Primacy of the Financial Report of the U. S.
  Government
• Standards for the One entity that matters
• Recognition of the Budget Process
• Constancy of purpose
• The clean opinion temptation
• True transparency

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Why do we need FIRST? More specific reasons

• FY 2008 eliminations differences
• Non-expenditure transfers 25 billion
• Buy-sell 31 billion
• The plug 30 billion
• Shared responsibility, in case you think its
  just an FMS problem

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Why we need FIRST3 Types of Inconsistency

• Inconsistent data in Agency Statements vs. the
  Financial Report of the U. S. Government. (GFRS
  addresses this type)
• Inconsistent data in agency financial statements
  vs. agency monthly reporting to Treasury and
  Warrant and NET transactions (Not addressed)
• Agency financial statement data not consistent
  with USSGL. (Not addressed)

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Current SituationFMS makes 1 trillion worth of
JVs for the FR each fall. Where will the next
problem pop out?

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FIRST-Key Concepts

• The Financial Report of the U. S. Government has
  primacy over component financial statements.
• Preparation of financial statements is an
  accounting function, not a political one. We
  must use accounting principles. We will support
  the Financial Report of the U. S. government with
  trial balances.
• The USSGL is the common accounting language we
  all speak or should speak. Therefore, the
  collection of USSGL-based trial balances will be
  the key to our future success.
• We will replace FACTS I, FACTS II, IFCS and the
  input part of IRAS, reducing the number of agency
  reports and standardizing them.
• We will validate and edit every incoming trial
  balance using every tool available (USSGL rules,
  central accounting system, BPD data, etc) and
  provide instant feedback.

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Business as System
Customers
Outputs
Inputs
FR
Agency Statements
President, Congress Citizens
GWA Internal Processes
A-136
Accurate data suitable for Analysis. Predictive ca
pability
FASAB, TFM, etc
Detailed edit reports
USSGL-based trial balances
Feedback
Today, the stuff coming in from the left is bad.
We need to help fix it. Agencies supply
components that dont fit the completed machine.
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Current Stovepipes
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Future Look
GWAMP/USSGL
GFRS
USSGL Database SID
USSGL based Reporting GTAS
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Trial Balance Example

• 1010 d 700 lt 4119 d 1000
  lt
• 1750 d 300 4170 c
  100 lt
• 1759 c 15 4610 c
  400
• 2110 c 300 4901 c
  300
• 3101 c 1000 lt 4902 c 200
• 3103 d 100 lt
• 3107 d 500
• 5700 c 500
• 6100 d 200
• 6710 d 15
• 8801 c 300
• 8802 d 300

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Information SharingFIRST Steps

• GWA Account Statement
• UCAD
• FACTS II Edit report
• GWAs Business Process Group

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Expected Results

• USSGL Compliance
• Reduced elimination differences
• More consistent reporting from each agency that
  FMS can read, interpret, and consolidate
• Elimination of obvious and embarrassing
  discrepancies
• Better information for decision-making
• Eventually, a predictive capability

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System Characteristics

• Supermaf with TAS attributes
• A trial balance for every Treasury Account
  Symbol
• Expenditure accounts like FACTS II, plus receipt
  accounts, deposit funds, clearing accounts
  (12,000 per quarter)
• Beginning and ending balances plus all USSGL
  attributes
• Bulk files only
• CGAC format
• Instant and usable feedback

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System Characteristics (cont)

• Ready for testing summer 2011
• Open for practice all the time after that
• Agencies must successfully transmit bulk files
• Ready for production first quarter FY 2012
  (January 2012)

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Improved FR Data Edits
Financial Report of the U. S. Government
Agency Accounting Systems
Agency Financial Statements
FIRST
Feedback loop
GWA
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New Process
Central Accounting System Edits
GFRS
Presidents Budget
Treasury Annual Reporting
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Government-wide Benefits

• Takes advantage of GWAMP
• Streamline reporting requirements on agencies
• Focus on accounting, not reporting
• Improved quality of financial information
• Ease of use of the USSGL for agencies
• Logical, long range approach that attacks core
  problems (i.e., intra-gov eliminations
  budgetary vs. proprietary data consistency)

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Getting Ready

• Try to send consistent data to FMS. This will
  force
• you to communicate within your agency.
• Use the FACTS II bulk, and generate FACTS II
  trial balances from your system.
• Become USSGL compliant. Stop posing and
  commit!!!
• Begin using UCAD and Account Statement
• Attend FIRST forums and/or training class

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Information

• FIRST
• GTAS -- http//www.fms.treas.gov/gtas
• USSGL -- http//www.fms.treas.gov/ussgl
• GWA https//www.gwa.gov
• Jeff Hoge -[phone] jeffrey.hoge_at_fms.treas.
  gov