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Financial Management Systems Is a New or Upgraded One Worth the Headache

Why Implement New (or Upgrade an Existing) Financial System?. Because You ?Have To"Because You ?Want To". Because You ?Have To". Current System Does not Meet Mandatory RequirementsDiscontinued or Proposed Discontinued Vendor Support (under standard maintenance)Requirement to Move to a Share

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Financial Management Systems Is a New or Upgraded One Worth the Headache

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    1. Financial Management Systems Is a New (or Upgraded) One Worth the Headache? Presented by: Bill Webb – BroadPoint Technologies Dick Willett – TCBA Pacific Rim Emerging Issues Conference Sheraton Waikiki Hotel 23-August-2007

    2. Why Implement New (or Upgrade an Existing) Financial System? Because You “Have To” Because You “Want To”

    3. Because You “Have To” Current System Does not Meet Mandatory Requirements Discontinued or Proposed Discontinued Vendor Support (under standard maintenance) Requirement to Move to a Shared Services Provider

    4. Because You “Want To” Existing System or Legacy Systems Antiquated Process Improvements Constrained by Existing System “Aging” Workforce (Loss of Domain Area Expertise in Legacy Systems) System not Cost Effective to Maintain Want to Take Advantage of Newer Technology and Functionality; e.g., Business Intelligence Need to “Keep Up with the Joneses”

    5. Parameters for New System Operations Improved Business Processes Move from Transaction-Focused to Analysis Compliance with Mandatory Requirements (at a minimum) Reduced Need for “In-House” Infrastructure Support Move Toward Single Point of Entry More Timely Reporting and Processing (reduction in closing timeframes) Assuring Vendor Support Over Time

    6. What Are the Headaches and Symptoms?

    7. Three Major Areas of Headaches and Symptoms Getting Started Implementation (or Upgrade) Operations (Sustainment)

    14. How Can We Reduce Headaches?

    17. Current State of IT

    18. ERP vs. “Best of Breed” The Integration Dilemma

    22. Who Says the Headaches Are Worth It?

    23. US Department of Transportation Highlights: Deployed applications across multiple OA’s (operating agencies) Developed interfaces and integration among various legacy systems Solution: Financials, Projects & Procurement In Production since 2003 Results: Achieved clean audit following implementation Consolidated systems by way of standardization Attained compliance with government standards Reduced Year-End closing from 15 days to one day Anticipated cost savings of $20M starting in 2003 Note: This Customer Proof Point (CPP) is approved for INTERNAL use only.   U.S. Department of Transportation Standardizes Nationwide Finance Environment, Achieves JFMIP Compliancy Through Implementation of Oracle System Corporate Profile     U.S. Department of Transportation Washington, D.C. www.dot.gov   Industry: Federal Government   Geography: U.S.   Annual Budget: $63B (FY2002)   Employees: 65,000   Key Benefits • Achieved clean audit following Oracle implementation• Fostered accurate and consistent audit processes by involving staff auditors in staged deployment• Consolidated systems by way of standardization    Oracle Product• Financials: General Ledger (Federal), Accounts Payable (Federal), Accounts Receivable (Federal), Fixed Assets (Federal)• Projects: Projects Accounting• Procurement: Purchasing• Oracle iStore (interfaced with Federal Financial System)    Oracle Relationship Begins With 1998 Upgrade of Financial Systems The U.S. Department of Transportation (DoT) started working with Oracle in 1998 with the intent of upgrading its legacy financial systems. The Department was having difficulty passing end-of-year audits as a result of improper paper trails to subsidiary records and a lack of set accounting standards. Additionally, it had not achieved compliancy to the federal government’s Joint Financial Management Improvement Program (JFMIP). The DoT selected Oracle from among several technology vendors, becoming the first U.S. Cabinet-level agency to acquire the Federal Versions of Oracle's Financial applications. As a result of successful implementations of the Oracle systems, the Department has achieved clean audits across multiple agencies.   Oracle’s consulting team initiated the project’s first phase by setting department-wide standards and managing the planning and development of product extensions to meet the DoT's general requirements. The second phase began with a successful pilot implementation of Oracle Version 10.7 applications for the Federal Railroad Administration, one of the DoT's smaller agencies. Using experience garnered from the pilot stage, a deployment of Oracle Version 11.03 to six additional agencies was undertaken by August 2000. During that process, the Oracle team continually fine-tuned the systems. It is planned that by December 2002, 13 of the Department’s 15 agencies will be live on Version 11i, including two of DoT's largest agencies, the Federal Aviation Administration and the Federal Highways Administration.   High-Level Project Goals ·         Upgrade Department of Transportation legacy systems to pass year-end audit and attain JFMIP compliancy ·         Implement and operate a global financial system that meets the Department’s regulations and requirements    Why Oracle? Among the COTS-approved technology providers that the Department of Transportation considered were AMS (American Management Systems) and KPMG. A significant factor in the selection of Oracle was the products themselves. The Federal Versions of the Oracle applications provide many JFMIP-ready features that enable the DoT's users to automate previously manual processes. Additionally, the extensive Web-based capabilities of the Oracle applications were extremely important to the Department’s decision makers. Finally, the breadth and depth of experience that Oracle’s consulting specialists brought to the project was crucial in demonstrating its familiarity with governmental processes.   Web-based Systems Enable Customer-centric Services In addition to achieving greater accuracy in reporting and auditing as a result of the Oracle financial implementations, the Department of Transportation is utilizing many other Oracle solutions to positive effect. A powerful example is the integration of the Web-based Oracle iStore application with Federal Versions of its financial applications. The result is a unique, customer-centric service that is changing the way Americans interacts with one of the largest departments of its government. In the past, every citizen or business had to drive to a window or transact via snail mail in order to get a permit from the Department of Transportation. But today the Dot is accelerating the process by taking it online. As a result of the Oracle iStore implementations, the Dot now operates online stores where its customers can expedite their business via credit card in seconds rather than hours. The Department also offers fast forms for easy access to paperwork and instructions. The strategy has helped reduce the Dot's own workload, as well. The staff now spends far less time mailing forms between agencies or to the public for information or corrections, and more time addressing the important issues of US transportation.   Future Plans The technology partnership between the Department of Transportation and Oracle is ongoing. Currently, Oracle's Dot-dedicated consulting team is working towards getting the balance of the Department’s agencies up-and-running on the Version 11i Financials. Beyond that, several DOT initiatives are in the works. The Department has purchased the Oracle Human Resources application, and is currently in the process of implementing at the Federal Aviation Administration with eventual roll out to other DOT agencies. Other projects in the planning phase include a data warehousing and inventory proposal, as well as a CRM effort.Note: This Customer Proof Point (CPP) is approved for INTERNAL use only.   U.S. Department of Transportation Standardizes Nationwide Finance Environment, Achieves JFMIP Compliancy Through Implementation of Oracle System Corporate Profile  

    24. US Government Printing Office Highlights: Initially implemented financials in 2000 Phased implementation of logistics and CRM components Automated IPAC, credit card and Passport processing in 2006-2007 Solution: Oracle Financials, Order Management, Inventory Hosted by Oracle On-Demand Results: Reduced need for expensive internal technical infrastructure support Reduction in cycle time for billing and collections via IPAC enhancements Allows agency to capture full cost for customer billing Allows for OMB Compliance (USSGL) Note: This Customer Proof Point (CPP) is approved for INTERNAL use only.   U.S. Department of Transportation Standardizes Nationwide Finance Environment, Achieves JFMIP Compliancy Through Implementation of Oracle System Corporate Profile     U.S. Department of Transportation Washington, D.C. www.dot.gov   Industry: Federal Government   Geography: U.S.   Annual Budget: $63B (FY2002)   Employees: 65,000   Key Benefits • Achieved clean audit following Oracle implementation• Fostered accurate and consistent audit processes by involving staff auditors in staged deployment• Consolidated systems by way of standardization    Oracle Product• Financials: General Ledger (Federal), Accounts Payable (Federal), Accounts Receivable (Federal), Fixed Assets (Federal)• Projects: Projects Accounting• Procurement: Purchasing• Oracle iStore (interfaced with Federal Financial System)    Oracle Relationship Begins With 1998 Upgrade of Financial Systems The U.S. Department of Transportation (DoT) started working with Oracle in 1998 with the intent of upgrading its legacy financial systems. The Department was having difficulty passing end-of-year audits as a result of improper paper trails to subsidiary records and a lack of set accounting standards. Additionally, it had not achieved compliancy to the federal government’s Joint Financial Management Improvement Program (JFMIP). The DoT selected Oracle from among several technology vendors, becoming the first U.S. Cabinet-level agency to acquire the Federal Versions of Oracle's Financial applications. As a result of successful implementations of the Oracle systems, the Department has achieved clean audits across multiple agencies.   Oracle’s consulting team initiated the project’s first phase by setting department-wide standards and managing the planning and development of product extensions to meet the DoT's general requirements. The second phase began with a successful pilot implementation of Oracle Version 10.7 applications for the Federal Railroad Administration, one of the DoT's smaller agencies. Using experience garnered from the pilot stage, a deployment of Oracle Version 11.03 to six additional agencies was undertaken by August 2000. During that process, the Oracle team continually fine-tuned the systems. It is planned that by December 2002, 13 of the Department’s 15 agencies will be live on Version 11i, including two of DoT's largest agencies, the Federal Aviation Administration and the Federal Highways Administration.   High-Level Project Goals ·         Upgrade Department of Transportation legacy systems to pass year-end audit and attain JFMIP compliancy ·         Implement and operate a global financial system that meets the Department’s regulations and requirements    Why Oracle? Among the COTS-approved technology providers that the Department of Transportation considered were AMS (American Management Systems) and KPMG. A significant factor in the selection of Oracle was the products themselves. The Federal Versions of the Oracle applications provide many JFMIP-ready features that enable the DoT's users to automate previously manual processes. Additionally, the extensive Web-based capabilities of the Oracle applications were extremely important to the Department’s decision makers. Finally, the breadth and depth of experience that Oracle’s consulting specialists brought to the project was crucial in demonstrating its familiarity with governmental processes.   Web-based Systems Enable Customer-centric Services In addition to achieving greater accuracy in reporting and auditing as a result of the Oracle financial implementations, the Department of Transportation is utilizing many other Oracle solutions to positive effect. A powerful example is the integration of the Web-based Oracle iStore application with Federal Versions of its financial applications. The result is a unique, customer-centric service that is changing the way Americans interacts with one of the largest departments of its government. In the past, every citizen or business had to drive to a window or transact via snail mail in order to get a permit from the Department of Transportation. But today the Dot is accelerating the process by taking it online. As a result of the Oracle iStore implementations, the Dot now operates online stores where its customers can expedite their business via credit card in seconds rather than hours. The Department also offers fast forms for easy access to paperwork and instructions. The strategy has helped reduce the Dot's own workload, as well. The staff now spends far less time mailing forms between agencies or to the public for information or corrections, and more time addressing the important issues of US transportation.   Future Plans The technology partnership between the Department of Transportation and Oracle is ongoing. Currently, Oracle's Dot-dedicated consulting team is working towards getting the balance of the Department’s agencies up-and-running on the Version 11i Financials. Beyond that, several DOT initiatives are in the works. The Department has purchased the Oracle Human Resources application, and is currently in the process of implementing at the Federal Aviation Administration with eventual roll out to other DOT agencies. Other projects in the planning phase include a data warehousing and inventory proposal, as well as a CRM effort.Note: This Customer Proof Point (CPP) is approved for INTERNAL use only.   U.S. Department of Transportation Standardizes Nationwide Finance Environment, Achieves JFMIP Compliancy Through Implementation of Oracle System Corporate Profile  

    25. CMS-Centers for Medicare & Medicaid Services Highlights Replace 53 disparate systems & comply with OMB mandated reporting requirements Process disbursements and receivables from providers estimated at approximately 3+ Million per day. Solution: Oracle Federal Financials Oracle Health Care Transaction Base (HTB) ACH functionality for provider claims Results: CMS anticipates recoup one percent of annual AR -- $121 million per year in benefit dollars Expedited claims and repayment processing Automated mechanisms to better control Medicare Trust Funds

    26. U.S. Department of Education Highlights Replace 53 disparate systems & comply with OMB ground rules Process disbursements and receivables from providers estimated at approximately 3+ Million per day. Solution: Oracle Federal Financials Oracle Enterprise Planning and Budgeting Results: First Cabinet Level agency to “Green” in financial management Three unqualified audit opinions 92% of Department’s funds have no cash differences Eliminated use of over 2,000 legacy systems Automating budget execution processing

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