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Department of TransportationWhere We Are
andWhere We Want to Be
2
A Decade of Standardization and Consolidation
1997 – DOT Agencies collaboratively chose Oracle Federal Financials as the single core financial management system (Delphi)
1998– DOT chose Federal Aviation Administration’s Enterprise Service Center (ESC) in Oklahoma City to implement and support all DOT agencies on Delphi (single instance with no customizations)
2004 – DOT implemented final agency on Delphi
2005 - DOT/ESC designated as a Shared Service Center by OMB in 2005
2004-2007- ESC services 4 external agencies including the Government Accountability Office (GAO) in 2007
2000 to 2008 – Gradually consolidated all accounting operations to ESC including 9 FAA’s regions and all DOT agencies.
2009 – ESC implementing two new agencies
AMAZING PROGRESS!
3
DOT Agencies
St LawrenceSeaway
DevelopmentCorporation
Research &Innovation
Technology Administration
Pipeline & Hazardous
Materials SafetyAdministration
National Highway
Traffic SafetyAdministration
Maritime Administration
Federal TransitAdministration
Federal RailroadAdministration
Federal MotorCarrier SafetyAdministration
Federal HighwayAdministration
Federal AviationAdministration
Office of the Secretary
4
If that’s not enough….
5
DOT/ESC Focus on Optimization with Innovation and Improvement
7 unqualified opinions in the last eight years with no material weaknesses in 2008
Monthly close occurs overnight for all agencies
Year-end close process dramatically decreased from a three week process to agencies closing in a few hours
Developed an innovative Financial Statement Solution which produces individual agency statements and DOT’s Consolidated Statements directly from the core system with no topside adjustments or external reporting tool
Implemented a standardized A-123 Internal Control Program which fully documents all of our processes
Implemented FAB 14 Reconciliation Metrics to measure and report agency progress in key reconciliations
6
We are still faced with many challenges
Lack of standardization in Delphi configuration across agencies
Disparate business processes cause excessive administrative work, re-work, reconciliation, and reporting resulting in higher costs
OMB’s FMLoB directives moving Agencies to a Common Government-wide Accounting Code (CGAC) and standard business processes
Inability to roll up data department-wide because of system configuration
Requirements to support Earned Value Management, Cost Accounting, Performance Measures, CGAC, Treasury’s Government–wide Accounting (GWA) changes
Need to improve data integrity, accuracy and consistency
Technology Platform and Reporting Tools are inadequate to support future business operations
Need for integrated Procurement Solution
Challenges of TRANSPARENCY!
7
What’s Next for DOT/ESC?
8
Opportunities for Optimization of Systems and Processes
Oracle Release 12
Transaction flow defined by process
Transaction code entry eliminated
Individual agency “set of books” structure gone
Intercompany billing capability
Operations can manage payment sweeps, month end close processes centrally
Move to OMB’s CGAC
Incorporate Treasury’s GWA changes
9
DOT Leadership Strategic Planning
August 2007 –DOT financial management, budget, CIO, and procurement community participated in a strategic planning session to determine the Department’s financial management strategy for the next decade – the major outcome of this meeting was the “vision” for the Financial Management Business Transformation (FMBT) effort
“To be the government leader in Financial Management utilizing quality people, processes, and technology in delivering a single integrated solution to support DOT’s mission by using streamlined business processes while ensuring financial integrity.”
10
Goals of DOT FMBT Vision
Re-engineer all financial management business processes to eliminate redundancies and inefficient processes amongst the agencies
Ensure consistency, consolidation and coordination of DOT Enterprise-level business systems including a single integrated procurement solution and modernized reporting solution
Improve collaboration and communication between the Office of the Secretary, ESC, and the Agencies
Alignment of resources conducting business process reengineering and system modernization into a unified, focused strategy
11
Five Commandments of the FMBT
Standardization: We will standardize business processes and Account Code Structure
Integrity: We will ensure data integrity
Communication: We will communicate effectively across DOT
Replication: We will not replicate the old system
Integration: We will integrate before we interface
(We still will not customize)
12
Governance Structure
Level 4
CFO Council
Level 4
CFO Council
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
Level 3
Executive Leadership Committee (ELC)
Level 3
Executive Leadership Committee (ELC)
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
Level 2
Financial Management Business Council (FMBC)
Level 2
Financial Management Business Council (FMBC)
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
Level 1
Business Transformation Team
Level 1
Business Transformation Team
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
Level 4
CFO Council
Level 4
CFO Council
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
Level 4
CFO Council
Level 4
CFO Council
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity
Level 3
Executive Leadership Committee (ELC)
Level 3
Executive Leadership Committee (ELC)
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
Level 3
Executive Leadership Committee (ELC)
Level 3
Executive Leadership Committee (ELC)
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC
activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC
Level 2
Financial Management Business Council (FMBC)
Level 2
Financial Management Business Council (FMBC)
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
Level 2
Financial Management Business Council (FMBC)
Level 2
Financial Management Business Council (FMBC)
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via
monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate
communication among all stakeholders
Level 1
Business Transformation Team
Level 1
Business Transformation Team
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
Level 1
Business Transformation Team
Level 1
Business Transformation Team
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC
13
Business Transformation Team Leadership
Executive
Leadership
Committee
Project Manager
Financial
Management
Business
Council
FMBT Project
Management Office
Business Process
Transformation
Team
Information
Management
Team
Current Systems
Team
Future Systems
Team
Change and
Learning Team
14
Project Team Organization
Business Process Transformation
Identify and reengineer critical business processes and develop policy around identified processes. The development of business requirements will be driven by this team.
Develop and implement a Department-wide Accounting Code Structure and define data & reporting requirements for the future transformation.Information
Management
Identify, map, and communicate current technical and process related requirements around the current system. Development of cutover and conversion plans will be driven by this team.
Current Systems
Future Systems
Develop an inventory of the future functional and technical system requirements. Responsible for translating business requirements into technical solutions as well as leading development, configuration, and testing efforts.
Change & Learning
Provide a structured and uniform approach for stakeholders, decision makers and users to manage change and learning related activities. Provides a standard approach for change management across all threads and phases.
PMOProvide program management tools and documents; coordinate, consolidate and monitor project activity; provide strategic advice and industry leading practices, and facilitate the development and management of the plan and schedule.
Project-Wide Support
15
Achieving a Fully Integrated Budget and Financial Management Environment
Develop a standard set of
reports by role to be adopted by
both budget and finance
practitioners across the
Department
Information Sharing and Reporting
Develop a standard set of
business processes for core
financial management
functions to be adopted by both
budget and finance
practitioners across the
Department
Business Process Standardization
Develop a common
accounting code structure,
including an applicable set of
definitions, adopted by both
budget and finance
practitioners across the
Department
Data Management
16
Business Transformation Planning
Vision
To develop and document an
understanding of the value of the
project direction and goals
Plan Design Build Deliver Operate
To initiate the project and identify
the team and expected results in a
detailed project plan
To create a design using the results
of the requirements collection, design
confirmation workshops and
prototyping efforts
To configure and test the business
and technical requirements
established in the previous design
phase
To prepare for go-live by performing final system testing, user training, cut-over activities and
enhancing an internal help desk
To transition from a project
environment to a day-to-day business
operation
PHASES:
Business ProcessTransformation
Current System
Information Management
Future System
Change & Learning
PMO
Definition & Purpose
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
Task
TEAMS:
17
Summary of FMBT ApproachPotential Sub-
ProcessesProcess Description
Formulation Allocation Execution Funds Management Project Management Budget Accounting Users Guide Reporting (e.g., SF-133, Budget
Variance)
Budget to Report
Encompasses all business functions necessary to plan, formulate, create, execute against, and report on the budget and business activities of the entity.
PP & E Asset Management Inventory
Acquire to Retire
Processes, procedures, tasks and activities in the area of asset management.
Costing Billing Project Management
Cost AccountingProcesses, procedures, tasks and activities in the area of a cost accounting methodology (i.e., Standard vs. ABC).
Maintain COA Consolidations Financial Statements Generation Close
Financial Mgmt. & Reporting
Processes, procedures, tasks and activities in the areas of financial reporting, maintenance of COA design and generation of financial statements.
RA (AR & AP) Grants (Grantee & Grantor) Travel & Credit Card Commitments, Obligations, and
Expenditures Vendor Management
Procure to PayProcesses, procedures, tasks and activities in the areas of procurement, vendor management, contract management, grants management, and reimbursements.
18
Key to our Success Management support
Analyzing and understanding the weaknesses of the current approach
Involvement of key stakeholders across DOT
Understanding and using the new technology and functionality
Re-implementation of every Agency with next upgrade of Oracle
Designing the system to meet the information needs of management and program managers.