1. 1 Financial Management Service (FMS) Quarterly Intelligence Forum Presentation May 29, 2009

2. 2 2 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

3. 3 3 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 FMS Data Governance

4. 4 4 Standardizing Budget Business Processes Budget Execution and Financial Management Line of Business (BEFMLoB) Identified core budget execution process maps  https://max.omb.gov/community/x/EgAFAw https://max.omb.gov/community/x/EgAFAw Utilized DOD BTA USSGL SFIS Transaction Library for government-wide use

5. 5 5 BEFMLoB Deficiencies: No single source of data Multiple data exchanges between multiple partners Multiple schemas based on data being exchanged Data not available electronically Agencies Treasury OMB Financial and Budgetary Reporting Data Exchange Current Structure

6. 6 6 Financial and Budgetary Data Exchange Concept 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 Data Exchange Concept Model OMB Agencies Treasury BEFMLoB (cont.)

7. 7 7 Enterprise Data Architecture (EDA) Activities

8. 8 8 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

9. 9 9 EDA Activities (cont) Data model 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

10. 10 Implementing CGAC and FMLoB at FMS Common Government-wide Accounting Classification Structure Financial Management Line of Business May 29, 2009

11. 11 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 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 http://fms.treas.gov/gwa/factsheet_tas.html the USSGL accounts attributes associated with quarterly and year-end financial reporting

12. 12 Implementing CGAC at FMS TAS Bureau Code USSGL Attributes

13. 13 Overview of CGAC TAS Components ComponentAcronym/ Field Length Definition http://fms.treas.gov/gwa/factsheet_tas.html 1. Sub-level Prefix Code SP/2A programmatic breakdown of the account for Treasury publication purposes 2. Allocation Transfer Agency Identifier ATA/3The Agency Identifier of the agency receiving funds through an allocation transfer 3. Agency IdentifierAID/3Represents the department, agency or establishment of the U.S. Government that is responsible for the TAS. Used in conjunction with the main account code 4. Beginning Period of Availability BPOA/4In annual and multi-year funds, identifies the first year of availability under law that an appropriation account may incur new obligations 5. Ending Period of Availability EPOA/4In annual and multi-year funds, identifies the last year of funds availability under law that an appropriation account may incur new obligations 6. Availability Type Code A/1Identifies no-year accounts “X”, clearing/suspense accounts “F”, Treasury’s central summary general ledger accounts “A”, and merged-surplus accounts “M”. 7. Main Account CodeMAIN/4Identifies the type and purpose of the fund 8. Sub-Account CodeSUB/3Identifies an available receipt or other Treasury-defined subdivision of the main account

14. 14 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

15. 15 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

16. 16 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]

17. 17 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/gtashttps://www.fms.treas.gov/gtas

18. 18 Implementing the Governmentwide Standard Bureau Code Working with OMB to align and standardize the Bureau Codes Governmentwide

19. 19 Implementing the USSGL CGAC Attributes Working with FSIO, OMB and the USSGL to finalize the USSGL attributes for the GTAS implementation

20. 20 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

21. 21 Managing Agency Reimbursable (Buy/Sell) Agreements FMLoB Reimbursables Buyer Seller Agreement Invoice Key: Initiates Approves

22. 22 Reconciling Elimination Entries Daily Reimbursable [Buy/Sell] Agreements Trading Partner – Quarterly Reporting and Reconciliation Annual Department Financial Report Beyond FMLoB Reimbursables

23. 23 FMS Contact Information Robin Gilliam, CPA, PMP – CGAC, FMLoB Standardization robin.gilliam@fms.treas.govrobin.gilliam@fms.treas.gov, 202-874-9133 Future Website page [Finanicial Management & Budget Standardization] on www.fms.treas.govwww.fms.treas.gov

24. 24 FIRST/GTAS Financial Information & Reporting Standardization Governmentwide Treasury Account Symbol (TAS) Adjusted Trial Balance (ATB) System May 29, 2009

25. 25 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

26. 26 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?

27. 27 What IS FIRST? USSGL Database: SID GFRS USSGL based Reporting: GTAS

28. 28 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.

29. 29 Why do we need FIRST? Reporting by agencies to Treasury and OMB is: inconsistent redundant It emphasizes reporting rather than accounting Results are bad

30. 30 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.

31. 31 Why do we need FIRST? C onceptual 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

32. 32 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

33. 33 Why we need FIRST 3 Types of Inconsistency 1. Inconsistent data in Agency Statements vs. the Financial Report of the U. S. Government. (GFRS addresses this type) 2. Inconsistent data in agency financial statements vs. agency monthly reporting to Treasury and Warrant and NET transactions (Not addressed) 3. Agency financial statement data not consistent with USSGL. (Not addressed)

34. 34 Current Situation: FMS makes $1 trillion worth of JVs for the FR each fall. Where will the next problem pop out?

35. 35 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.

36. 36 Business as System GWA Internal Processes Inputs Agency Statements FASAB, TFM, etc Customers President, Congress Citizens Outputs FR A-136 USSGL-based trial balances Detailed edit reports Feedback Accurate data suitable for Analysis. Predictive capability 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.

37. 37 Current Stovepipes Undisbursed Trial-balance reports… 224 – Statement of Transactions2108 FACTS I IFCS IRAS GFRS T ROR FACTS II STAR Stovepipes P&F133

38. 38 Future Look USSGL Database: SID GFRS USSGL based Reporting: GTAS GWAMP/USSGL

39. 39 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

40. 40 Information Sharing—FIRST Steps GWA Account Statement UCAD FACTS II Edit report GWA’s Business Process Group

41. 41 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

42. 42 System Characteristics 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

43. 43 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)

44. 44 Improved FR Data Edits Agency Accounting Systems Financial Report of the U. S. Government Agency Financial Statements Feedback loop USSGL Database GFRS USSGL based Reporting

45. 45 New Process FMSOMB President’s Budget Standard General Ledger FIRST FMS 2108SF 133 Program and Financing Schedule Federal Agency Treasury Annual Reporting Central Accounting System Edits GFRS

46. 46 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)

47. 47 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

48. 48 Information FIRST GTAS -- http://www.fms.treas.gov/gtashttp://www.fms.treas.gov/gtas USSGL -- http://www.fms.treas.gov/ussglhttp://www.fms.treas.gov/ussgl GWA – https://www.gwa.gov Jeff Hoge -(202) 874-6179 jeffrey.hoge@fms.treas.gov