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    OPM RESPONSE TO MARCH 8, 2011, INQUIRY FROMCOMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM ONFINANCIAL SYSTEMS MANAGEMENTMARCH 22, 2011

    [NOTE: OPM RESPONSE IN ITALICS]1. Identify and briefly describe each of your agency's business and accounting systems. If

    separate divisions, bureaus, or offices of your agency use separate systems, identify whichdivisions, bureaus, or offices use each system.OPM Response: OPM currently maintains two financial management systems: (1) the coreaccounting system to manage the administrative filllds and (2) the core tn/st fimdaccounting system to manage our eamed benefit programs. To date, these two systems havenot ye t been integrated. The modemized core accounting system fo r the administrativefill/ds was deployed on October 1, 2009 as a part of he CBIS Project Phase 1modemization effort. OCFO has experienced some transition issues. In FY 2012, CBISPhase 2 intended to migrate the Trust Funds to the core financial system that wasimplemented during Phase I However, the project was placed on OMB's list of nvestmentsrequiring attention in December 2010. OPM's CBlS Executive Steering Committee(comprised ofOPM senior executives), in concert with OMB, placed an indefinite hold onPhase 2. This hold was anticipated due to the challenges in transitioning to a new inancialsystem. The CFO organization, with the support ofSenior Leadership is continuing toaddress these challenges (i.e. centered on people, business processes, and data) as a part ofa larger remediation action.In FY 2011, the CBlS Project team has developed and is executing remediation activities toensure a successfitl completion to Phase 1 and is planning activities to improve training toclose business process gaps. As a part of his specific activity, the CBlS Project is validatingroles and responsibilities across the various business processes, re-Iaunching acomprehensive Change Management and COllllllunications strategy, and establishingpeliorll/ance measures to track progress. In addition to training, the CBlS Project is in theprocess ofrefining testing and defect management strategies. The CBlS Project team isincorporating stakeholder identified pain points and using this information to prioritizeissue resolution. Our stakeholders will be involved early in all testing efforts to includepeliorming usability and acceptance testing to ensure that business processes operate andfilllction according to our requirements. Lastly, we are formalizing our release managementplanning and execution.Our official response is noted under Sections I.A and I.B below.J.A - Core Accounting and Business Systems (Administrative FundslOPM's accounting, procurement, and business processes are integrated under CBlS andassist OPM in managing its administrative processes relative to Salaries and Expense(S&E) and Revolving Fund (RF) accounts. CBlS is a Commercial off he Shelf(COTS)solution /Ising Oracle E-Business Suite forfinancialmanagement (which includes Accollnts

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    Receivable, Assets, Projects, Accounts Payable, Purchasing, and General L e d g e l ~ , OracleHyperionfor budgetformulation and reporting, Compl/Search PRISMfor contractadministration and management, and Oracle's Business Intelligence Enterprise Edition(OBIEE) for data warehousing and ad-hoc reporting. CBIS is lIsed agency-wide by al ldivisions and offices as the core accounting and business management system.The components of he overall CBIS solution are comprised ofa series ofmodules andapplications that support specific business jimctions and operations. These modules andapplications are listed below. Oracle Purchasing Module - Manages the requisition and procurement ofgoods andservices. This includes creating RFQs, requisitions, andpurchase orders, reviewing

    requisitions against jimds and budgets, approving requisitions via a defined process,transmitting purchase orders to suppliers via EDI or XML, defining shipment schedulerequirements, and recording supplier acceptance ofpurchase orders. The module alsoincludes controls for receiving goods, such as defining receipt and inspectionprocedures, implementing routing controls based, recording returns to suppliers,generating debit memos for returned items, and generating invoices. Finally, the moduletransmits accounting transactions to the General Ledger module fo r encumberingcommitments, obligations, and accming expenditures, and transmits purchase ordersand receipts to the Payables module.

    Oracle Federal Administrator Module - Manages some of he cllstom federalgovernment requirements including maintaining treasulJI symbols (numeric codes whichcontain unique accollnting information that identifY: 1) a Federal agency, 2) a period ofavailability ofjimds, and 3) afour-digit a p p r o p r i a t i o n n u m b e l ~ and generatingfederalreports (such as the SF-132, FMS-224, FACTS I reports, and FACTS II reports). Inaddition, the module establishes and manages budgets including appropriations,apportionments, allotments, rescissions, warrants, and deferrals.

    Oracle General Ledger Module - Manages the general ledger and general journalforthe administrative fimds [i.e. Salaries and Expense (S&E) and Revolving Funds (RF)j,including capturing andpost ingfinancial transactions, managing the financial accounthierarchy, controlling spending against the budget, and enabling online inquiries. Alsoenables budgeting to compare actual balances with project results and to control actualand anticipated expenditures.

    Oracle Accounts Payables Module - Enables the AlP process, including managing andtracking suppliers, controlling spending against the budget, entering and approvinginvoices, creating accounting entries for Payable transactions, creating payment filesthat go to the u.s. Treaswy to generate checkslelectronic transfers, and transferringaccounting entries to the General Ledger module.

    Oracle Accounts Receivables Module - Enables the AIR process for the administrativejilllds (S&E and RF), including managing and tracking customers, entering transactions

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    such as invoices, commitments, and receipts, generating dunning letters, managing thebilling lifecycle, and transferring entries to the General Ledger module.

    Oracle iProcurement Module - Enables OPM employees to initiate and trackrequisitions via a web intel/ace. The application loads and displays supplier catalogs.Employees can then requisition products ji-om the catalog or use pre-defined templatesto order products that are not in a catalog. Employees can allocate costs to olle or moreprojects and validate fimds availability in real-time, while iProcurement enforcespurchasing policies and calculates pricing. Once created, the requisition is transferredto the Purchasing module to go through the approval process, while employees cantrack approvals and deliveJY status, change or cancel line items, and acknowledgereceipt ofgoods in iProcurement.

    Oracle PaVl1lents Module - Receives payment requests ji-om the Accounts Payablemodule and creates payment files that go to the U.S. TreasUlY to generate checks andelectronic transfers.

    PRISM Web Procurement System - Manages the procurement lifecycle, including lineitem enfly, defining delivelY locations and ill/ding sources, lVorliflow for reviews andapprovals, and payment certification. The system also contains extensive documentmanagement capabilities, such as document generation with agency-defined clauses andrules, document numbering, and uploading ofsupportilig documentation into anelectronic case file. The system is customized to the business processes andforms of hefederal government, supportingforms and award types prescribed by FARS andtransmitting requisition opportunities to FedBizOpps.

    Oracle Business Intelligence Enterprise Edition - An OLAP analysis and reportingserver that contains interactive dashboards, capabilityfor ad hoc queries and analysis,and alerts fo r changes to key metrics.

    Oracle Proiect Costing Module - Processes expenditures to calculate their true costs byproject and determine the GL accounts to which the costs will be posted. This includesentering expenditures and importing expenditures ji-om other systems, classifYing theexpenditures by cost types and project, calculating raw and burdened costs, determiningthe accounts to post to, and transmitting transactions to Accounts Payable and GeneralLedger modules. The system implements controls on these activities to limit theexpenditures that users can charge to specific projects or purchase order agreements,and to manage spending against budgeted monies. With costs assigned, users are able tocompare both actuals and outstanding cOlllmitments to the original and current budgets.

    Oracle Project Billing - Manages billing for projects purchased by cllstomers underreimbursable agreements. The system allows fimding agreements to be created andproject billing cycles and resource billing rates to be defined. I t then accrues revenuebased on a billing algorithm, applies billing controls and limits to prevent billings ji-Olllexceedingfimding, generates invoices based on defined milestones (costs, events, orwork progress) and transfers them to the Receivables module, and transmits

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    transactions to the General Ledger module (open receivables, credit memos, etc.). Theproject fimding can be monitored throughout the accounting cycle.

    I.B - Benefits Financial Management Systems (Trust Funds)Five prill/my systems and intelfaces support OPM's eal'lled benefit programs: Federal Financial SYstem - OPM uses version 5.4 ofCGI-AMS'Federal FinancialSystem (FFS), a commercial ofJ--the-shelffinancial system, as the core of ts Benefits

    Financial Management Systems. Rather than /Ising all available FFS modules, OPMIIses only the FFS g e n e r a l l e d g e l ~ accollnts receivable and budget execution modules.FFS has been extended through a cllstom-built, integrated subsystem known as theInvestment Subledger, which is described below.

    Financial Management Collection Deposit 2812 Svstem - Employee with holdings andagency contributions to the Retirement, Health Benefits, and Life Insurance Programsare due to OPM on the same day the participating employee is paid. Prior toautomation, all employee with holdings and agency contributions were remitted to OPMon the hard-copy SF 2812 and SF 2812-A - "Report of With holdings and Contributionsfor Health Benefits, Life Insurance, and Retirement to OPM " Most of his data is nowcaptured through the automated Retirement and Insurance Transfer System (R1TS).Agency payroll providers that are technically unable to remit with holdings andcontributions to OPM via RITS, however, are permitted to remit withholding andcontribution information via the hard copy SF 2812 (and SF 2812-A) directly to OPM orto OPM's lockbox depositmy. The 2812 system also provides the followingfUllctionality: (1) sorts total withholdings and contributions by account andfimd; (2)maintains program contingency and administrative reserves though a "Health BenefitsSubledger"; (3) supports premiums payable to community-rated carriers; alld (4)supports letter-ofcredit accounts for experience-rated carriers.

    Retirement and Insurance Transfer System - The vast preponderance ofwith holdingsand contributions are received via the Retirement and Insurance Transfer System(R1TS), which was jointly developed by OPM and TreaslllY. FMS partnered with theFederal Reserve Bank ofRichmond to re-engineer and improve the RITS application inorder to electronically transfer the "Report of Withholdings and Contributions forHealth Benefits, Life Insurance and Retirement" (SF2812) and the "Report ofWithholdings and Contributions for Health Benefits by Enrollment Code" (SF2812A)data i 'OIl l Govel'llment payroll providers to OPM RITS accumulates information fromFederal Program Agencies (FPA) about the total amount ofwith holdings alld relatedagency contributions fo r retirement, health benefits and life insurance. Each useragency defines one or //lore payrolls, associated pay cycles alld payroll start dates.From these parameters RITS creates and maintains an automated payroll and reportingschedule. This schedule gives the FPA and OPM the ability to calculate and track

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    obligation due dates and payment timeliness. Agency submissions are monitored on aregular basis by OPM In the event that a payment is delinquent, OPM staffandlor RITSwill automatically create an estimated report on the agency's behalf Estimated reportsare based on the most recent drawn down payments made by the agency that bestreflects the probable amount of he current obligation. Once an agency generates aRITS transaction fo r a delinquent obligation, the RITS application automaticallyreverses any estimated payment (these reversals are processed by OPMstaffas needed).On a daily basis, the OPM administrator initiates the process to collect all RITStransactions due and submittedfor payment. This process extracts all Retirement,Health Benefits, andLife Insurance Program information for transmission to OPMforfilrtherprocessing. At the same time, RITS generates IPAC transactions to transferfill/ds to satisfY the obligations incurred by each report.

    FFS Investment Sub ledger - The Investment Sub ledger is a fit/ly integrated subsystemof he FFS. It was developed for OPM to record trust fillld investments and to generaterelated accounting transactions. Each business day, the Investment Subledger extractscollections and disbursements by fimd fi'om the FFS general ledger. OPM uses thisextracted data to determine the amount ofdaily investments or redemptions, which isthen entered into the BPD 's FedInvest System.

    Annuitv Roll Processing Svstem - The Annuity Roll Processing System (ARPS) is anumbrella for a number ofsystems and processes used by OPM to adjudicate benefits fo rretired ederal employees, their dependents and survivors. ARPS represents the mqjorinte/facefor the Benefits Financial System providing daily and monthly accounting dataregarding annuity expenses and deductions withheld i"om annuities.

    These systems are collectively referred to as the Benefits Financial Management Systems(BFMS). BFMS is the agency's core Tl1Ist Fund system and is used bystaffunder theRetirement and Insurance divisions for administering the government-wide earned benefitprograms.

    2. Explain how the business and accounting systems identified in response to Request No. 1interact with one another.OPM Response: The listing defines holV the financial systems components relate and interact withone another. Oracle General Ledger Module-o Posts transactions fi"om the sub-ledgers (i.e. Oracle Accollnts Payable, AccountsReceivable, Oracle Projects, Oracle Purchasing) to generate and post GLjournalsagainst USSGL accounts and helps to manage financial account hierarchy,

    controlling spending against the budget, and enables online inquiries. Oracle PurchasingModule-

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    o Oracle Purchasing intelfaces approved Purchase Requisitions data to the PRISMWeb Procurement System. The intelface sends suggested vendO/'S as well as all therequisition information needed by PRISM to create an Obligation and solicit vendO/'S.This is a real-time integration.

    o Oracle Purchasing receives travel authorization data ji'om the GSA E2 Solutiolls (forTravel Management) system which establishes the obligations within the jinancialsystem upon confirmation of he availability ofbudgetmy resources. Thisjile is runon nightly basis. Oracle Accounts Payables Module -

    o Daily intelface with GSA Central Contractor Reposito/y (CCR) to Oracle AccountsPayable. The intelface updates vendor data for relevant changes contained in theCCR daily extract jiles. The intelface supports the data dejinitions (e.g. data types;jield names; jield lengths) used in CCRfor applicable CEIS vendorjile.o Oracle Accounts Payable intelfaces vendor data to the PRISM Web ProcurementSystem. Vendor data updates ji-om the master vendor AP table are sent to update thePRISMvendor data table. This is a real-time integration.

    o Oracle Accollnts Payables receives credit card information ji-om JP Morgan ChasePayment.Net on a daily basis.

    o Oracle Accounts Payable inteifaces and accepts vendor payments ji'om the OPMPersonnel Investigations Processing System (PIPS), which tracks activity related tocasework conducted by OPM's Federal Investigative Services (FIS) division. PIPSgenerates a jile daily that contains data fo r all open cases that had activityfo r thatday, including information for payments that need to be made to vendors who haveprovided services. The data is loaded into Oracle Accounts Payable to generateinvoices. This information is intelfaced daily.

    o Oracle Accounts Payable receives travel voucher data ji-om the GSA E2 Solutions(for Travel Management) system which establishes the travel invoice within thejinancial system, tying the voucher to the travel obligation established under OraclePurchasing. This jile is rUII on nightly basis. Oracle Payments Module-

    o Oracle Payments sends payment requests (inlllultiple payment ormats) to usDepartment ofTreaswy Secure Payment System, receives conjirmationji-omTreasury ofpayments made to vendors. Oracle Project Task/Costing Module-

    o Oracle Project Costing receives customer-billing adjustments for closed investigationcases ji'om PIPS and sends them to be reflected in CEIS Projects. These adjustmentscan either be due to an increase or decrease from the original amount and theappropriate change is then made to the cllstomer billing invoices. This information isintelfaced daily.

    o Oracle Project Costing extracts Project Agreement and Project Task data ji-Olll theProjects and sends it to PIPS. The interface extracts all active agreements, and allYnew task that has been created since the last extract was run, which would include

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    any new cases added by the PIPS to Projects interface. The extract fi le includes bothPIPS specific as well as CBIS specific data elements. This information is intelfaceddaily.o Oracle Project Costing receives Labor Costs through a nightly intelface whichprocesses the detail labor cost file that isproduced fo r each pay cycle as part of heGSA Payroll Accounting and Reporting (PAR) system, which receives informationrecorded by OPM employees ill the Electronic Time and Attendance ManagementSystem (ETAMS). Data fi'om this file is loaded into the Projects Transaction OpenInterface Table and then imported into Project Costing to record direct labor costsfor projects defined in the financial system.

    Oracle Project Billing-o Oracle Project Billing receives customer-billing adjustments for closed investigationcasesfi'om OPM PIPS and sends them to be reflected in CBIS Projects. Theseadjustments can either be due to an increase or decrease from the original amountand the appropriate change is then made to the cllstomer billing invoices. Thisinformation is intelfaced daily.o Oracle Project Billing receives cllstomer billillg alld revenue activity from PIPS,which tracks activity related to casework conducted by OPM's FIS division. The datais loaded into eBIS Projects to create or update the CBIS Project stl1lcture andbilling data. This information is illtelfaced daily.

    PRISM Web Procurement System -o The PRISM Web Procurement System exports obligation data /I'om PRISM to OraclePurchasing using a web service. It generates document detail at the document linealld sub-line levels. This is a real-time integration. Federal Financial System (FFS)-o FFS sends and receives subsystem data 5 different financial activities. The FFSsubsystems in use at OPM are accounts receivable, budget execution,financialreporting, general ledger, alld investments subsidimy ledger. The following sectionsdescribe each of hese subsystems.o FFS integrates to custom-built subsystemlalOwn as the Investment S u b l e d g e l ~ whichis described below. TFG posts the investment premium and discount totals to thegeneral ledger in FFS.

    3. For each system identified in response to Request No.1, state whether the informationfound in that system is regularly or periodically submitted to any ofthe govermnent-wideaccounting systems maintained by the Department of the Treasury, e.g., GFRS, FACTS I,FACTS II, IFCS, etc., and explain how and at what intervals those submissions occur,including descriptions ofboth manual and automated processes.OPM Response:

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    Oracle Purchasing Module - Data ji-om this system component is not directly (regularlyor periodically) submitted to any of he government-wide accounting systems maintainedby the Department of he Treaslll)'.

    Oracle Federal Administrator Module - Data ji-om this system component directly (onmonthly, quarterly, or annual basis) generates federal reports (such as the SF-i32,FMS-224, FACTS I reports, and FACTS Jl reports) to government-wide accountingsystems maintained by the Department of he Treasury. Data is downloadedji-om thesystem into spreadsheets using queries and then govel'llment forms such as the SF-i32,FMS-224, FACTS I reports, and FACTS Jl reports are manual entered with informationand submitted to the Department ofTreaslllY.

    Oracle General Ledger Module - Data ji-om this system component not directly(regularly or periodically) submitted to any of he government-wide accounting systemsmaintained by the Department of he TreaslllY.

    Oracle Accounts Pavables Module - Data ji-om this system component not directly(regularly or periodically) submitted to any of he government-wide accounting systemsmaintained by the Department of he TreaslllY.

    Oracle Accounts Receivables Module - Data from this system component not directly(regularly or periodically) submitted to any of he government-wide accounting systemsmaintained by the Department of he Treasury. Oracle iProcurement Module - Data from this system component not directly (regularlyorperiodically) submitted to any of he government-wide accounting systems maintained

    by the Department of he Treasury. Oracle Payments Module - Data fi'om this system component directly (on daily basis)sends payment requests (ill multiple paymentformats) to US Department ofTreasll lYSecure Payment System, and receives confirmation ji-om Treaswy ofpayments made to

    vendOl'S. PRiSMWeb Procurement Svstem - Data ji-om this system component not directly(regularly or periodically) submitted to any of he government-wide accounting systems

    maintained by the Department of he TreaslllY. Oracle Business Intelligence Enterprise Edition - Data ji'om this system component notdirectly (regularly orperiodically) submitted to any of he government-wide accountingsystems maintained by the Department of he Treaswy. Oracle Project Costing Module - Data ji-om this system component not directly

    (regularly or periodically) submitted to any of he govel'llment-wide accounting systemsmaintained by the Department of he TreasU/)'. Oracle Project Billing - Data ji-om this system component not directly (regularly orperiodically) submitted to any of he government-wide accounting systems maintainedby the Department of he Treasury. Federal Financial System - Data ji-om this system component directly (Oil monthly,quarterly, or annual basis) generates federal reports to govel'lllllent-wide accounting

    systems maintained by the Department of he Treasury. Specifically, FFS:

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    o Sends budgetmy accollnting data required to generate the quarterly Report onBudget Execution and Budgetmy Resources (SF-133), the Year-End ClosingStatement (FMS-2108) to the Federal Agencies' Centralized Trial-Balance System(FACTS 11).

    o Receives CA$HLINK II data ofpayments received through OPM's lockbox serviceprovider, Us. Bank ofdaily deposits made through FMS-managed collectionmechanisms. These collection mechanisms include the TreaslllY's General Account,Lockbox, Pay.gov, Credit Card, Paper Check Conversion, and the Fedwire DepositSystem.o Transfers cases to FedDebt, a system under Us. TreaslllY's Debt ManagementServices division in accordance with the requirements of he Debt Collection

    Improvement Act of1996 (DCIA), to refer debts delinquent over to TreaslllYforcross-servicing. FedDebt is the web-based system used to enter and track each debtcase referred to DMS.o Receives case status information and accepts debt cases transferred from DMSback to OPMo Receives current holdings and balances by account number ofGovernment AccountSeries (GAS) securities from Fedlnvest. Users can also receive a list ofcurrentlyavailable GAS securities allowing market-based andpar value special issuesecllrities to be purchased in $1,000.00 increments. One day (i.e., overnight)securities may be purchased in any increment.o Sends and Receives data ji'om US. Treasury's Financial Management ServiceGOALS II applications: (1) Inter-Governmental Payment and Collection - IPAC,

    (2) Treasll/y Receivable Accounting and Collection System - TRACS, (2) SF-224,(3) Federal Centralized Trial-Balance Systems - FACTS I, (4) RFCAgency Link,(5) Statement ofDifference - SOD, and (6) UND.o Receives data ji'Olll TreaslllY's Payments, Claims, and Enhanced Reconciliation(PACER) system where OPMattempted to (1) stop payment on a previously issuedcheck, (2) reclaim erroneously issued EFTpayments, (3) view digital check images,and (4) trace EFTpayments.

    4. For each system identified in response to Request No, 1, state whether information found inthat system is regularly or periodically submitted to the Office ofManagement and Budgetoccur, including descriptions ofboth automated and manual processes.OPMResponse: The CBIS Federal Administration 11l0dule maintains the data of heexplanation required ill the Standard Form132, Apportionment and ReapportionmentSchedule to assist in generating the SF-133 Report on Budget Execution and BudgetmyResources. The submission to MAX Information Syste11lremains a manual process.

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    5. For each system identified in response to Request No, I, describe recent, current, andplanned migration or modernization projects.OPM Response: As indicated in our Response under Question #1, the CBlS Project teamhas developed and is executing remediation activities to ensure a successjiil completion toPhase 1 and is planning activities to improve training to close business process gaps. As apart of his specific activity, the CBlS Project is validating roles and responsibilities acrossthe various business processes, relaunching a comprehensive Change Management andComlllunications strategy, and establishing pel/ormance measures to track progress. Inaddition to training, the CBlS Project is in the process ofrefining testing and defectmanagement strategies. The CBlS Project team is incorporating stakeholder identified painpoints and using this information to prioritize issue resolution. Our stakeholders will beinvolved early in all testing efforts to include pel /orming usability and acceptance testing toensure that business processes operate andjimction according to our requirements. Lastly,we are formalizing our release management planning and execution.As a part ofour release management planning, OPM is currently evaluating the benefit ofupgrading to Oracle release 12.1 and PRlSMversion 6.5 SP3. Afinaljimctionalupgradeassessment deliverable was submitted and delivered by the System Integrator on March 4,2011. Thisj illlctionalupgrade assessment documents the existing CBlS issues to beaddressed by the upgrade, new capabilities provided by the upgrade, the impact of heupgrade on key areas ofCBlS, a recommended upgrade approach, an estimated the level ofeffort including a list ofdeliverables, schedule, and cost pricing, and risks associated withdeferring the upgrade. OPM is currently evaluating the jilllctional upgrade assessmentdeliverable and the Executive Steering Committee will determine if he upgrade to CBlSbenefits the end-users and agency business operations.

    6. In addition to your agency's submissions to government-wide accounting systemsmaintained by the Department ofthe Treasury and OMB, as described in response toRequests Nos. 3 and 4, does your agency publish any ofthe same information online forpublic viewing? If so, describe how and in what format that information is published.OPMResponse: OPMpublishes information online for public viewingfor the following aslisted below. OPMprovides contract data to be published on 2 segments ofUSA Spending. gov: theFederal Procurement Data System - Next Generation (FPDS-NG) and Federal FundingAccountability and TransparencyAct (FFATA). FPDS-NG and FFATA provides data oncontracts andpurchases made by the Agency. Information can be accessed by the public

    in various formats (i.e. Excel, PDF, etc.).

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    OPMprovides cost, schedule andpelformance data on OPM IT investment projects tobe published on 1 segment ITSpending.gov. Information can be accessed by the public invariollsformats (i.e. downloads into Excel, etc.).

    Financial reporting under the American Reinvestment and RecovelY Act (RecovelYAct)-OPM received no direct RecovelY Act appropriations but has been reporting tothe web site forfinancial activity where it provides requested assistance to otheragencies who use their identified Recovel)1 Act fund. For OPM, transactional data isextracted and summarized based upon expenditures, alldlorpayroll costs that areassociated with a reimbursable project task that is beingfilllded with RecovelY Actmonies fi'0/1/ a cllstomer agency.

    Annual OPM Consolidated Financial Statements-controls over those statements arecovered by the existing OPMA-123 Appendix A program as well as the annualfinancialstatement audit (published to the OPMpublic website in PDF format).7. Identify and briefly describe each system that your agency uses to manage grants, directloans, and/or loan guarantees. If separate divisions, bureaus, or offices of your agency useseparate systems, identify which divisions, bureaus, or offices use each system.

    OPM Response: OPM does not administer or manage grants, direct loans, and or loanguarantees.

    8. For each system identified in response to Request No.7, explain how it interacts with anybusiness or accounting system identified in response to Request No. I.OPM Response: Please refer to our response to Request No.7. OPM does not administeror manage grants, direct loans, andlor loan guarantees.

    9. For each system identified in response to Request No.7, state whether information found inthat system is regularly or periodically submitted to the Catalogue ofFederal DomesticAssistance (CFDA), and describe how and at what intervals those submissions occur,including descriptions of both automated and manual processes.OPM Response: Please refer to our response to Request No.7. OPM does not administeror manage grants, direct loans, andlol' loan guarantees.

    10. For each system identified in response to Request No.7, state whether infonnation found inthat system is regularly or periodically submitted to any of the govemment -wide grantsmanagement and reporting systems, egg., FAADS, FAADS , PLUS, etc., and describe howand at what intervals those submissions occur, including descriptions of both automated andmanual processes.

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    OPM Response: Please refer to our response to Request No.7. OPM does not administeror manage grants, direct loans, andlor loan guarantees.

    11. For each system identified in response to Request No.7, describe recent, current, andplanned migration or modemization projects.OPMResponse: Please refer to our response to Request No.7. OPM does not administeror manage grants, direct loans, andlor loan guarantees.

    12. In addition to your agency's submissions to government-wide grants management andreporting systems, described in response to Requests Nos. 9 and 10, does your agencypublish any of the same information online for public viewing? If so, describe how and inwhat format that infOlmation is published.OPM Response: Please refer to our response to Request No.7. OPM does not administeror manage grants, direct loans, alldlor loan guarantees.

    13. Identify and briefly describe each system that your agency uses to manage contracts. Ifseparate divisions, bureaus, or offices of your agency use separate systems, identify whichdivisions, bureaus, or offices use each system.OPM Response: CompuSearch PRISM: PRISM Procurement is a web-based application capable of

    fldly supporting the procurement process fi"om requisitioning to closeout. GBIS utilizesPRISM to create contracts fi"om purchase requisitions while capturing all the relevantdata fo r internal and external reporting. Please see diagram example ofprocessbetween Oracle and PRISM below.

    AcqTrack: This is OPM's Acquisition Tracking system which provides:1. Worliflow capabilities that route documents, track approvals and rejections;

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    2. Order tracking where customers and PMO Officials can track progress ofacquisitions ji'OIll submittal to award;

    3. Management information to allow Contracting Group managers to easily managegroup workload (better customer service) and allows RMOs and PMO Official totrack acquisitions across their organization; and

    4. Reports to aid in strategic planning, tracking, and business process improvement.14. For each system identified response to Request No. 13, explain how it interacts with anybusiness or accounting system identified in response to Request No.1.

    OPMResponse: Contract actions are interfilced ro/11 PRISM to the Oracle Purchasing andOracle Accounts Payable modules at the transaction level. More specifically: The PRISM Web Procurement System exports obligation datafi'om PRISM to OraclePurchasing lIsing a web service. It generates document detail at the document line andsub-line levels. This is a real-time integration. Oracle Purchasing intelfaces data to the PRISM Web Procurement System whereapproved Purchase Requisitions are retrieved i'O/l/ CBIS Oracle Purchasing and sent toCBIS PRISM using the PRISM Web Service. The interface sends suggested vendors aswell as all the requisition informationlleeded by PRISM to create an Obligation and

    solicit vendors. This is a real-time integration. Oracle Accounts Payable intelfaces vendor data to the PRISM Web ProcurementSystem. Vendor data updates from the master vendor AP table are sent to update the

    PRISM vendor data table. This is a real-time integration.15. For each system identified in response to Request No. 13, state whether information foundin that system is regularly or periodically submitted to any of the govemment-wide contractmanagement and reporting systems, e.g., FPDS, FPDS-NG, FAPIIS, etc., and describe howand at what intervals those submissions occur, including descriptions ofboth automated andmanual processes.

    OPMResponse: CompuSem'ch PRISM: Datafi'om this system component is periodically entered intothe FPDS government-wide contract management and reporting system. The processused to get data into FPDS is manual. Contracts, task orders, modifications are all

    entered manually into FPDS by OPM Contracting Officials after they are jill ly awardedin the PRISM contract administration system. While there is all automated processavailable through the PRISM application, it is not currently being used because PRISMis not configured to produce a unique Procurement Instrument Identifier document(PIID) number per FAR guidance. OPM is currently reviewing new conftguration

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    recommendations that lVould provide for use ofan automated process to inteifacecontract data to FPDS thereby eliminating the current manual entl)1 process

    AcqTr({ck: Datafrom this system component is not regularly or periodically submittedto any of he government-wide contract management and reporting systems (e.g., FPDS,FPDS-NG, FAPIIS, etc.).

    16. For each system identified in response to Request No. 13, describe recent, current, andplanned migration 01' modemizations projects.OPM Response: Our procurement solution consists ofOPM's AcqTrack and OraclePurchasing that closely integrate with CompuSearch 's PRISMAcquisition Solution. OPMis currently assessing a possible upgrade of he PRISM contract administration softwareji'DlIl the existing version 6.1 to version 6.5 or version 6.5 Service Pack which includes nelVjililctiollality and enhancements specificallyfo r FPDS-NG.

    17. In addition to your agency's submissions to govemment-wide contract management andreporting systems, described in response to Request No. 15, does your agency publish any ofthe same information online for public viewing? If so, describe how and in what format thatinformation is published.OPMResponse: ComplISearclt PRISM: Data from this system component is not directly published

    (regularly or periodically) online fo r public viewing. Data ji-om this system componentis periodically entered into the FPDS govel'llment-wide contract management andreporting system. The process used to get data into FPDS is manual. Thedata/information entered into FPDS is then made available to the public throughUSASpending.gov.

    AcqTrack: Dataji'ol1l this system is not published (regularly orperiodically) onlinefo rpublic viewing.

    18. Briefly describe your agency's efforts to comply with OMB's memorandum one the OpenGovemment Directive - Federal Spending Transparency, dated April 6, 2010. In particular,describe whether and how your agency has begun to collect and report on sub-award data, asrequired by the memorandum; and describe how your agency's reports on OMB's dataquality metrics, as required by the memorandum, are generated.OPM Response: As recommended in the guidance, OPM is leveraging existing processesand oversight groups organized pursuant to OMB's Circular No. A-123, Management'sResponsibilitv fOr Internal Control and the statute it implements, the Federal Managers'Financial Integrity Act of1982 (FMFIA). OPM's Senior Assessment Boardfor Internal

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    Control over Financial Reporting oversees the documentation and testing ofcontrolsrelevant to federal spending data quality.To implement a successfid data quality ji'amewol'k, OPM uses its existing intemal controlprogram. Specifically, to assess the effectiveness of ntemal controls over the quality ofFederal spending data, OPM uses the gove/'llance structure andprocesses establishedforAppendix A ofA-i23 on Intemal Control over Financial Reporting. The Appendix Arequirements, which became effective in FY 2006, require evaluation and testing offinancial controls similar to that required in the private sector by the Sarbanes-Oxley Act.Sarbanes-Oxley was implemented after private sector scandals occurred that wentundiscovered despite annual audits offinancial statements. The Intemal Control programat OPM has been successfi" in bringing about improvements in the Agency's intemalcontrol environment through rigorous testing of inancial controls. Corrective actions arerequired and monitored or all control deficiencies. OPM will extend that program ofevaluation and testing to key controls over the quality ofOPM's spending data.OPM has defined Federal spending data under the scope of h is plan to include: Contract spending data reported monthly to USASpending.gov through the FederalProcurement Data System- Next Generation (FPDS-NG) and Federal Funding

    Accountability and Transparency Act (FFATA); Cost, schedule and peliormance data reported to the IT Dashboardpart ofITSpending.gov; Financial reporting under the American Reinvestment and RecovelY Act (Recovery

    Act}-OPM received no direct RecovelY Act appropriations but has been reporting tothe web site forfinancial activity where it provides requested assistance to otheragencies who use their identified RecovelY Act fimds;

    Annual OPM Consolidated Financial Statements-controls over those statements arecovered by the existing OPMA-123 Appendix A program as well as the annual financialstatement audit.

    19. If your agency interacts directly with USASpending.gov, in addition to submittinginformation to the systems that feed USASpending.gov, describe the nature, frequency, andpurposes ofthat interaction.OPMResponse: While our agency does not interact directly with USASpendinggov, OPMinformation and data is submitted to USASpending.gov through other reportingmechanisms.

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    Datafrom OPM's Oracle Purchasing module is not directly published (regularly orperiodically) onlinefor public viewing. Dataji'om this system is used indirectly toconfirm obligation of imds through Oracle Purchasing prior to contract award withinthe PRISM application. Upon contract award, data is entered manually into thegovernment-wide FPDS system. Informationji'om this system is then made available tothe public through USASpending.gov. The frequency of he confirmation ofobligatedjimds occurs daily into PRISM

    Datafrom CompuSearch PRISM is not directly published (regularly orperiodically)online fo r public viewing. Contract award data from PRISM is periodically entered intothe FPDS government-wide contract management and reporting system. The processlIsed to get data into FPDS is manual. The data/information into FPDS is then madeavailable to the public through USASpending.gov. The frequency ofdata ently intoFPDS-NG periodic and the purpose is to meet requirements of he Federal FinancialAccountability and Transparency Act (FFATA) guidance.

    20. Describe the data quality controls and procedures that your agency has implemented forinformation that is submitted to USASpending.gov, including information submitted directlyand information submitted to one of the systems that feed USASpending.gov.OPMResponse: The governing authorityfor OPM's Internal Control program is its SeniorAssessment Boardfor Internal Control over Financial Reporting. The Board was originallyinstituted in 2005 in preparation fo r the A-123 Appendix A requirements that went illtoeffect beginning in FY 2006. The Board oversees the evaluation and testing of inancialcontrols which is primarily pelformed by staff n OPM's Policy and Internal Controlorganization. The Board meets three or four times each year to, among other things, ensurethe annual assessment is carried out in a thorough, effective, and Iimely manner; approvethe scope of he assessment and the annual evaluation and testing schedule; analyze theresults of esting including internal control deficiencies and recommendations to addressthose deficiencies; and approve the overall results of he annual assessment. The Board iscurrently co-chaired by the ChiefFinancial Officer (CFO) and the D i r e c t o / ~ InternalOversight and Compliance. It includes senior executive representatives from all majorOPM organizations, including positions identified in the OMB guidance: the CFO, SeniorProcurement Executive, ChiefHuman Capital Officer, ChiefInformation Officer (CIO),Performance Improvement Officer, Senior Accountable Official over Recovery Act, and theSenior Accountable Officialfor the Federal Spending Data Quality Plan. ChiefFinancial Officer (CFO), Co-Chair - Stephen Agostini Director, Office of nternal Oversight and Compliance, Co-Chair - Mark Lambert Deputy CFO - Dan Marella Associate CFO fo r Budget and Pelformance and Pelformance Improvement Officer-

    Ed Callicott (Acting) Associate CFO for Financial Services - vacant

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    Associate CFO fo r Financial Systems Management and Senior Accountable Officialforthe Federal Spending Data Quality Plan - Rochelle Bayard Chief nformation Officer - Matthew Peny Senior Executive Representative ji-om the General Counsel- Alan Miller Senior Executive Representative i-Olll Employee Services, ChiefHuman Capital Officer,and Senior Accountable Official for RecovelYAct Implementation- Nancy Kichak

    Senior Executive Representative ji-om Retirement andBenejits - Bill Zielinski Senior Executive Representative i-OIn Merit System Audit and Compliance - JeffSumberg Senior Executive Representative ji-om Federal Investigative Services - Merton Miller

    Senior Executive Representative i-Olll HR Solutions - Kay Ely Director, Facilities, Security, and Contracting and Senior Procurement Executive- TinaMcGuire Director, Planning and Policy Analysis - John 0 'Brien Senior Executive Representative ji-om the OIG - Mike Esser (advisOly and consultativecapacity) Chief, CFO Policy and Internal Control, Executive Secretmy - Robert Wurster

    OPM uses the Board as the primmy mechanism to ensure that data quality over Federalspending information is properly addressed in accordance with the OMB Framework andexisting data quality standards. The USASpending.gov data and reporting processes will beadded to OPM's list of "assessable units" to test under A-123 Appendix A in FY 2010 underthe Board's guidance.

    21. State whether all of your agency's current grants, contracts, and loans accurately reflected onUSASpending.gov, and, if not, estimate the percentage of current grants, contracts, andloans that are not accurately reflected, using both the number oftransactions and dollarfigures.22. OPMRespollse: While OPM does not administer or manage grants, direct loans, andlor

    loan guarantees, it does manage and administer contracts. However, the data on USASpending does not accurately reflect OPM contract information. Please see our estimates ofthe percentages ofcurrent COli tracts reflected by transaction count and dollarjiguresbelow.

    PRISM USA Est. %ofDala 011(OPM Sl!.elldinf:. DifferenceSl!,stellll III (p '111ati 11 USASpendillg.gov

    Trallsacti01l 4221 1350 2871 32%COl/lit

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    Transaction Vallie$ 651 $ 350 $ 301 54%*

    * Vallie are displayed is Millions.

    23. State whether your agency incurs any reporting burdens or costs because of ts obligationsunder the Federal Financial Assistance Transparency Act ("FFATA") that does not incurbecause of other reporting obligations, and estimate those burdens and costs in worker-hoursand dollars.OPMResponse: OPM does incur cost burdens because of ts obligations under FFATA. AsFFATA changes its requirements or guidance, OPM incurs the additional costfo r which itsometimes canllot adequately plan. These cost burdens are estimated below.

    Annual EstimateCount Avg Labor Rate Est. Total

    perhr HoursGovernment FTE 0.30 $57.00 40 $2.280.00Contractor Maintenance Snpport 0.30 $90.00 40 $3,600.00TOTAL $5,880.00

    24. Identify the individual(s) who serve( s) as Senior Accountable Official(s) ("SAO") overfederal spending data quality for your agency, as defined by OMB.OPMResponse: OPM has designated the Associate CFO for Financial SystemsManagement as the Senior Accountable Official fo r Federal Spending Data Quality. TheSenior Accountable Official is afitllmember of he Board and works with the other Boardmembers to ensure that the Framework requirements are met and that OPMhas a strongprocess ill place to evaluate, test, and report on the quality ofFederal spending data. TheSenior Accountable Official, as well as the CFO and CIO, have fid ly reviewed this Plall.


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