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Financial Management Service (FMS) Quarterly Intelligence Forum Presentation May 29, 2009 Agenda Overview of Accounting Standardization & Budget Management Line of Business - Holden Hogue Overview of Data Harmonization – Marcel Jemio CGAC / FMLoB – Reimbursables – Robin Gilliam

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Presentation Transcript
agenda
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
strengthening accountability and integrity in accounting and reporting
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
  • FMSData Governance
standardizing budget business processes
Standardizing Budget Business Processes
  • Budget Execution and Financial ManagementLine 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
slide5

OMB

Treasury

Agencies

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
slide6

Treasury

OMB

Data Exchange

Concept Model

Agencies

BEFMLoB(cont.)

Financialand 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
eda activities cont fms financial management data registry
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

eda activities cont
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
slide10

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

May 29, 2009

what is cgac and how does it impact fms
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/factsheet_tas.html
    • the USSGL accounts attributes associated with quarterly and year-end financial reporting
implementing cgac at fms
Implementing CGAC at FMS
  • TAS
  • Bureau Code
  • USSGL Attributes
what fms needs to do to implement cgac tas
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
implementing cgac tas cont
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
implementing cgac tas cont16
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]
implementing cgac tas cont17
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
implementing the governmentwide standard bureau code
Implementing the Governmentwide Standard Bureau Code

Working with OMB to align and standardize the Bureau Codes Governmentwide

implementing the ussgl cgac attributes
Implementing the USSGL CGAC Attributes
  • Working with FSIO, OMB and the USSGL to finalize the USSGL attributes for the GTAS implementation
slide20
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
managing agency reimbursable buy sell agreements fmlob reimbursables
Managing Agency Reimbursable (Buy/Sell) AgreementsFMLoB Reimbursables

Agreement

Seller

Buyer

Invoice

Key:

Initiates

Approves

reconciling elimination entries
Reconciling Elimination Entries

Annual

Department

Financial Report

Beyond FMLoB Reimbursables

Trading Partner –

Quarterly Reporting

and Reconciliation

Daily

Reimbursable [Buy/Sell]

Agreements

fms contact information
FMS Contact Information

Robin Gilliam, CPA, PMP – CGAC, FMLoB Standardization

robin.gilliam@fms.treas.gov, 202-874-9133

Future Website page [Finanicial Management & Budget Standardization]

on www.fms.treas.gov

slide24

FIRST/GTAS

Financial Information & Reporting Standardization

Governmentwide Treasury Account Symbol (TAS) Adjusted Trial Balance (ATB) System

May 29, 2009

integrity from merriam webster
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
what we want to talk about
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?
what is first
What IS FIRST?

GFRS

USSGL

Database: SID

USSGL based

Reporting: GTAS

what we will collect
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.

why do we need first
Why do we need FIRST?
  • Reporting by agencies to Treasury and OMB is:
  • inconsistent
  • redundant
  • It emphasizes reporting rather than accounting
  • Results are bad
why do we need first example of a bad result net outlays
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.
why do we need first c onceptual issues
Why do we need FIRST?Conceptual Issues
  • Our model doesn’t 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
why do we need first more specific reasons
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 it’s just an FMS problem
why we need first 3 types of inconsistency
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)
slide34
Current Situation:FMS makes $1 trillion worth of JVs for the FR each fall. Where will the next problem pop out?
first key concepts
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.
business as system
Business as System

Outputs

Customers

Inputs

FR

Agency Statements

President, Congress

Citizens

GWA Internal Processes

A-136

Accurate data

suitable for

Analysis.

Predictive

capability

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 don’t fit the completed machine.

current stovepipes
Current Stovepipes

FACTS II

STAR

Stovepipes

Undisbursed Trial-balance reports…

FACTS I

IFCS

224 – Statement of Transactions

2108

133

P&F

IRAS

GFRS

TROR

future look
Future Look

GWAMP/USSGL

GFRS

USSGL

Database: SID

USSGL based

Reporting: GTAS

trial balance example
Trial Balance Example
  • 1010 d 700 < 4119 d 1000 <
  • 1750 d 300 4170 c 100 <
  • 1759 c 15 4610 c 400
  • 2110 c 300 4901 c 300
  • 3101 c 1000 < 4902 c 200
  • 3103 d 100 <
  • 3107 d 500
  • 5700 c 500
  • 6100 d 200
  • 6710 d 15
  • 8801 c 300
  • 8802 d 300
information sharing first steps
Information Sharing—FIRST Steps
  • GWA Account Statement
  • UCAD
  • FACTS II Edit report
  • GWA’s Business Process Group
expected results
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
system characteristics
SystemCharacteristics
  • 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
system characteristics cont
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)
improved fr data edits
Improved FR Data Edits

GFRS

Financial Report of the U. S. Government

Agency Accounting Systems

Agency Financial

Statements

FIRST

Feedback loop

GWA

USSGL

Database

USSGL based

Reporting

new process

Federal Agency

Standard General Ledger

Program and Financing

Schedule

FMS 2108

SF 133

FIRST

FMS

OMB

New Process

Central

Accounting

System

Edits

GFRS

Treasury Annual Reporting

President’s Budget

government wide benefits
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)
getting ready
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
information
Information
  • FIRST
  • GTAS -- http://www.fms.treas.gov/gtas
  • USSGL -- http://www.fms.treas.gov/ussgl
  • GWA –https://www.gwa.gov
  • Jeff Hoge -(202) 874-6179 jeffrey.hoge@fms.treas.gov