1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 Air Force Financial Operations SAF/FMP April 2013

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e What Congress and the Public See Conferences & TDY Apr 2012: GSA spent $800K on 2010 Western Range Conference $44K breakfast, tuxedo rentals and $6K on commemorative coins Fall 2012: VA cited for improper spending at two HR conferences $4M and $50K on two training videos DoD spent $224M on conferences in FY10 and $26M in FY12 Afghanistan Fraud, Waste and Abuse New $34M 64K Sq Ft HQ never used $60B in US funds lost - $1 of $6 wasted DoD Lavish Spending $1.8 M Las Vegas “museum of neon signs” $650K to digitalize photos, t-shirts & concert tickets belonging to Grateful Dead

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e *%#& Congress – Fix it 3 Landmark Legislation: The Chief Financial Officers Act of 1990: Created CFO position within cabinet level agencies, directed OMB to prepare a 5-year Federal Financial Management Improvement Plan and established pilots for agency financial statement audits The Government Management Reform Act of 1994: Expanded CFO Act of 1990 by requiring annual auditable financial statements The Federal Financial Management Improvement Act of 1996: Required agencies to implement compliant financial systems Refined Guidance: NDAA FY02: Directs DoDIG to stop auditing financial statements until management asserts they are ready for audit NDAA FY05: Directs 1st Financial Improvement and Audit Readiness (FIAR) Plan NDAA FY10: Legislates DoD’s established audit readiness dates NDAA FY13: Legislates SBR by SECDEF goal of September 30, 2014 NDAA FY14: Legislates audit of FY18 financial statements NLT March 31, 2019 Continued Congressional interest 1990 CFOA FY14 NDAA FY13 NDAA 1994 GMRA 1996 FFMIA FY10 NDAA FY05 NDAA FY02 NDAA

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 4 FIAR - a Matter of Trust, Not Money

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Air Force Audit Status 5

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Air Force FIAR Timeline 6 – Sustainment – Assertions – IPA Examination – Sustain until SBA

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Air Force FIAR Timeline 7 – Sustainmen t – Assertions – IPA Examination

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e What is the AF problem with Information Technology? Tangled web of application interactions Duplicate copies of data Inconsistent results equals Operational uncertainty MilPDS DCAPES DRRS JOPES MPES IPPS Organization Data Source GSORTS Org Server Org Server Org Server DRS FMIP GFMDI SORTS Exposes data to GCSS-AF How we do ‘Integration’ today Force Management example Too many systems, too hard to operate, too expensive to maintain

9. I n t e g r i t y - S e r v i c e - E x c e l l e n c e DEAMS Today As of April 2014  DEAMS Software  Complies with FFMIA 1996, is widely-used across the federal government and enables end-to-end auditability  ~ 1,400 users at 8 AMC bases, 2 ANG units, tenant organizations, and DFAS-LI  Operational Assessment 2 Findings Follow  Dual Processing  using legacy and DEAMS  Old transactions in legacy; new transactions in DEAMS  Mix of training options to maximize learning opportunities  Classroom, OJT, WBT, webinar  Conducting pre-deployment activities for 1 Jun “go-live”

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e DEAMS Scorecard StandardAug 2012Mar 2014 Overall Operational Assessment System Controls” is ≤ 5% of transactions entered through DEAMS which contain invalid data and are processed Materiel Availability” is ≥ 98% for performing an assigned mission at a given time Funds Control” is ≤ 2% funds control failures Balance with Treasury” is ≥ 98% balanced Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95% Period End Processing” is ≥ 95% of accounts closed that have period-end data available to the official financial reporting system by the prescribed day Balance with Treasury” is ≥ 98% balanced 100% of critical exchange requirements satisfied Regression testing verifies that DEAMS performance has not been degraded as a result of software patches, updates or changes Accurate Balance of Available Funds” is ≥ 98% accurate Percentage of reports and queries generated successfully ≥ 98% 10 “The program has made significant progress” – AFOTEC Exec Summary “The program has made significant progress” – AFOTEC Exec Summary

11. I n t e g r i t y - S e r v i c e - E x c e l l e n c e BACKUP 11

12. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 12 August 2012March 2014 Not on track toward effectiveness, suitability or mission capability, and not making progress toward readiness for IOT&E On track towards effectiveness, suitability, mission capability and readiness for Initial Operational Test and Evaluation. Funds Control” is ≤ 2% funds control failures DEAMS did not meet the criteria. Two severity one deficiencies (sometimes) allowed automatic posting of transactions that exceeded funds controls Both deficiencies were resolved and no funds control failures were observed Balance with Treasury” is ≥ 98% balanced 85% were in balance. DEAMS did not meet the criteria DEAMS improved to 98% and met criteria Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95% No subsidiary accounts balanced to general ledger accounts 100% of subsidiary accounts balanced to general ledger accounts Accurate Balance of Available Funds” is ≥ 98% accurate 39% of funds balanced with over $26M in observed accounting errors Performance did not meet criteria, but improved to 60% accuracy “shortfalls slowed work completion, the mission could be accomplished an overall improvement since OA-1 DEAMS Scorecard

13. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 13 August 2012March 2014 System Controls” is ≤ 5% of transactions entered through DEAMS which contain invalid data and are processed DEAMS met the criteriaDEAMS exceeded criteria with a 3% result Period End Processing” is ≥ 95% of accounts closed that have period-end data available to the official financial reporting system by the prescribed day 0% accounts closed100% of accounts closed accurately and on time Balance with Treasury” is ≥ 98% balanced 85% were in balance.98% were in balance 100% of critical exchange requirements satisfied Met connectivity requirements. However, many of them did not satisfy requirements for complete and accurate exchange of information. Therefore, end-to- end operational effectiveness was not met. Did not meet criteria; 96% of critical exchange requirements were satisfied. However, the test team rated it likely to meet criteria in IOT&E because proactive monitoring of interfaces resolved most end-to-end operational impacts Percentage of reports and queries generated successfully ≥ 98% Reports & queries generated successfully was 75%.Reports and queries generated successfully declined to 69% DEAMS Scorecard

14. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 14 August 2012March 2014 Materiel Availability” is ≥ 98% for performing an assigned mission at a given time DEAMS met the criteriaDEAMS again met the criteria There were no operational mission failures during OA-2.There were no operational mission failures during OA-2. The DEAMS Help Desk support was rated effective.The DEAMS Help Desk support was rated effective. The DEAMS Help Desk response time was rated effective. Regression testing verifies that DEAMS performance has not been degraded as a result of software patches, updates or changes No regression testing was accomplishedAt the start of OA-2, 15 regression scripts were in use. By the end of OA-2, 107 scripts had been added for a total of 122. With continued software updates to DEAMS, regression testing will be an on-going need DEAMS Scorecard “The program has made significant progress” – AFOTEC Exec Summary “The program has made significant progress” – AFOTEC Exec Summary