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Accelerated Reporting: How did Treasury Do It?. Overview. Background on Treasury Accounting and Systems Treasury’s Acceleration Efforts. Financial Management Service Internal Revenue Service U.S. Mint Bureau of the Public Debt U.S. Secret Service (DHS) Office of Thrift Supervision

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Presentation Transcript
overview
Overview
  • Background on Treasury Accounting and Systems
  • Treasury’s Acceleration Efforts
treasury bureaus
Financial Management Service

Internal Revenue Service

U.S. Mint

Bureau of the Public Debt

U.S. Secret Service(DHS)

Office of Thrift Supervision

Departmental Offices

Bureau of Alcohol, Tobacco & Firearms(DOJ)

Comptroller of the Currency

U.S. Customs Service(DHS)

Bureau of Engraving & Printing

Federal Law Enforcement Training Center(DHS)

Financial Crimes Enforcement Network

Treasury Bureaus

ATF, Customs, and the IRS account for approximately 98% of all

revenues collected by the federal government

look how far we have come
Look How Far We Have Come
  • 1995– Unaudited Department-wide Statements – Issued 9/1996
  • 1996 - 1st audit of Department-wide financial statements. Qualified opinion issued 3/28/1997
  • 1997- Department-wide consolidated financial statements – Qualified opinion issued 3/27/1998
  • 1998- Department-wide consolidated financial statements – Qualified opinion issued 3/3/1999
  • 1999– Department-wide consolidated financial statements – Qualified opinion issued 2/29/2000(Parallel FARS).
  • 2000– FARSused to compile consolidated financial statements 1stunqualified opinion issued2/28/2001
  • 2001– FARS used to compile consolidated financial statements with automation of many notes supplemental information. Unqualified opinion issued 2/27/2001
  • 2002 – FARS matures. WebTIER debuts in March 2002. 3-day close & 45 day year-end close
problem solution
Problem/Solution

The Problem:

Need to efficiently compile financial statements and management information.

The Solution:

Utilize a data warehouse as a source of information.

financial analysis and reporting system fars
Financial Analysis and Reporting System (FARS)

Objectives:

  • Improve the Department’s Analysis of Financial Data Provided by Bureaus
  • Accessing and Mapping Financial Information from a Common Location
  • Communicating Information Across the Department
  • Produce Timely and Accurate Consolidated Financial Statements
financial analysis and reporting system fars7

DEDICATED FINANCIAL DATA SERVER(S) FOR:

- Accounting/Budget Execution Data

- Web Servers for TIER and CFOV

- Other Future Data Subsets

CS

FLE

SS

DHS

BUREAU

DATA

FIN

TFF

Financial Analysis and Reporting System (FARS)
  • CFO Vision and other On-line Analytical
  • Processing (OLAP) Decision Support Tools
  • 6 Financial Statements
  • Monthly Financial Management Report
  • Generated Footnotes & Supplemental Info

CORE FINANCIAL SYSTEMS

1998 - (48)

2003 - (23)

CFO Vision

  • WebTIER
        • General Ledger Account Data
        • Budgetary Data
        • Detailed Data Edits
        • FACTS I Transmissions
        • FACTS II Transmissions

WebTIER

IRR

BEP

BPA,BPF

ESF

FFB

FMD

IRS

MNT

OCC

OIG

TTB

BPD

TREASURY

BUREAU

DATA

TIG

CDF

DO

OTS

OAS

DCP

FMS

slide8
TIER
  • 1994 Built Pilot in Oracle v6

- SQR Reports

  • 1999 Migrated to Oracle v7 Database
  • 2001 Began Project to web-enable Oracle 8i Database
  • 2002 January, Began parallel testing
  • 2002 March, Deployed WebTIER to Production
scrubbing it clean
Scrubbing it Clean
  • Is all the Data Garbage? – No! But when you combine it with clean data the whole collection is tainted
  • Establishing Ownership –Who has the knowledge and is going to use the data?
  • Capturing what is Needed – SGLs & Attributes
  • Overcoming Resistance – Are you really going to make this work?
  • Edits – Pay me now or pay me later
current fars capabilities
Current FARS Capabilities
  • Collects Standardized Bureau Financial Data in Treasury Information Executive Repository (TIER)
  • Allows for Analysis of Financial Data on a Monthly Basis

- Finance and Budget Data Models

  • Provides Reports for Bureau and Department level users
  • Prepared Financial Statements for FY 2000 - 2003 With Clean Audit Opinions
  • Many Footnotes and Supplemental Info now automated
additional benefits of fars
Additional Benefits of FARS
  • Moves CFO Organization from Annual Reporting to Monthly Financial Analysis

- Improves Data Quality

- Answer Audit Inquiries During the Year

- Increases Analysis Flexibility

  • More Timely Financial Reporting

- 3-Day Close

- Enhances Reporting Capabilities

- Submit Government-wide Treasury Data

so what
So What!

This isn't World Class

project background
Project Background
  • As of Jan. 2001 it was taking bureaus and reporting entities 20 working days to submit monthly financial data into Treasury’s Financial Analysis and Reporting System (FARS)
  • World class organizations close their monthly books in 3 days
  • On April 11, 2001 Secretary O’Neill challenged the Department to achieve a 3-day close no later than July 3, 2002
what is a 3 day close
What is a 3 Day Close?
  • All financial data transmitted into the Financial Analysis and Reporting System (FARS) by 5:00 pm EST of the 3rd business day of the month
  • Development of Treasury financial statements and reports on the morning of the 4th business day

The original deadline for the 3-Day Close was 7:00 pm on the 3rd Business Day

3 day close guidelines
3-Day Close Guidelines
  • Move from 20 days (January 2001) to 3 days (July 3, 2002)
  • No interim targets – get there as quickly as possible
  • Reduction of cycle time should be achieved through process improvement
  • Do what you can, when you can
  • Quality of data to be improved
  • Early month-end cutoffs not allowed
  • No issue or impediment is insurmountable
project success measures
Project Success Measures
  • All Treasury bureaus and reporting entities will move to a 3-day closing of the monthly books no later than July 3, 2002
  • All data will be reported on a monthly basis
  • All data will be without mechanical problems and proper accounts will be used
  • Monthly Treasury financial statements and reports will be produced for distribution
  • Customers will be satisfied with the resulting financial statements and reports
  • Annual audited financial statements produced by November 15 each fiscal year
a month is a month is a month
A Month is a Month is a Month

All months should follow the same basic process/schedule

=

=

May

June

September

You should be capable of doing a virtual year-end close any month of the year

3 day close versus accelerated year end close
3-Day Close Versus Accelerated Year-End Close

You should not view the 3-day Close

and the year-end close as separate initiatives

They go together hand-in-hand like peanut butter and jelly

3-Day Close = Accelerated Year-End Close

the bureau evolution on 3 day close
The Bureau Evolution on 3-Day Close
  • Is he crazy???
  • But this ain’t ALCOA.
  • He’ll forget about it.
  • OK, he’s not going to forget about it.
  • Wait a minute…
  • This might be what we need.
  • What a great idea!!!
quarterly reporting
Quarterly Reporting?

No Problem

We produce our financial statements every month on the 3rd business day of the following month

critical success factors
Critical Success Factors
  • Management Commitment
  • Involving Auditors/Inspector General (Note: Treasury had 2 IGs and 6 IPAs)
  • Communication
  • Departmental Data Warehouse
  • Resolving Common Issues/Problems
  • Process Analysis and Documentation
  • Measurement and Reporting
  • Reward and Recognition
  • Full-time Program Management
benefits identified by bureaus closing in 3 days
Benefits Identified By Bureaus Closing in 3 Days
  • Data has become more timely, accurate, and meaningful
  • Better communication with internal and external organizations
  • More time to perform analysis and focus on other things
  • Surfaced and reengineered old and inefficient processes
  • Forced them to work more efficiently and put the previous month “to bed” earlier
  • Identified and resolved key system fixes
  • Restructured some of their contracts so that they are getting more timely information from contractors
  • Moved a monthly cost meeting a week earlier in the month
  • Helped with budget execution and seeing the status of funds

Thanksgiving and the Holidays

key lessons learned for other departments and agencies
Key Lessons Learned For Other Departments and Agencies
  • In order to accelerate year-end reporting, you must reengineer/improve your monthly processes
  • You must change the mindset of the accountants/staff that it is acceptable to work with estimates and accruals
  • Don Hammond would like to see you in the lobby if you have not started your acceleration efforts yet