Achieving Business Transformation The Road to a Clean Financial Opinion

Transcription

1 Department of the Navy Office of the Assistant Secretary of the Navy (Financial Management and Comptroller) Achieving Business Transformation The Road to a Clean Financial Opinion The Department of the Navy Approach Mark Easton NDIA Conference March 22, 2005

2 Today s Systems Environment Too many systems Redundant, stove-piped Poor integration, interoperability No standard data structures Limited visibility in budget Discrete elements of spending lacking Difficult to support technologically Difficult to audit 2

3 Framework for DON Business Transformation DoD Business Blueprint Standardize business processes & provide data standards Requires systems portfolio management Navy ERP Cornerstone Implement a modern, integrated COTS software product Reengineer business processes Functional Area Manager Process Transition Tool Rationalize FM and Business systems portfolio management Standardize business processes DoD Financial Improvement Initiative Integrating Plan Considers/integrates elements of Systems, Processes and Human Capital Documents Business Processes for Audit Successful Business Transformation Will Support Auditable Financial Statements 3

4 DoD Business Layer Data Standards, SPS Common DIMHRS Capabilities, NCES / GIG Transaction Hubs Business Analysis UID, RFID, WAWF Transformation Catalysts Financial Acquisition Program Material Transaction Military Personnel Real Property Inventory Common Asset Valuation Common Supplier Engagement DDRS DCD/DCW SFIS IGTS DCAS PB Framework Global Edit Table Funds Control Commitment Acctg Cost Acctg Methodology Critical Enabling Initiatives/Programs (preliminary view) 4

5 Priorities Auditability Impact Financial Acquisition Program Material Transaction Military Personnel Real Property Inventory Common Military Equip. Valuation Common Supplier Engagement $ in Billions Cost of Audit Curve All DoD Capabilities contribute to downward pressure on audit costs (auditability) in varying degrees (Service ERPs Implementations) 5

6 Navy Systems Transition Summary NSMA MFCS STARS FL STARS HCM Cabrillo SYMIS BUSINESS TRANSFORMATION MSC FMS IMPS DIFMS Sigma NAVY ERP DON TARGET DWAS SABRS SCHEDULED NOTIONAL 6

7 Defining the DoD Business Finance AT&L P&R NII DOD Data Standards, SPS Common DIMHRS Capabilities, NCES / GIG Transaction Hubs Business Analysis UID, RFID, WAWF Transformation Catalysts OSD Required Integration to DOD Component s ARMY NAVY MC DLA Army Navy Marine Corps DLA AF Air Force Federated Business Alignment to OSD Alignment to OSD Alignment to OSD Alignment to OSD Alignment to OSD Portfolio Mgt Portfolio Mgt Portfolio Mgt Portfolio Mgt Portfolio Mgt AT&L, Fin, P&R, NII IRB Participants AT&L, Fin, P&R, NII IRB Participants AT&L, Fin, P&R, NII IRB Participants AT&L, Fin, P&R, NII IRB Participants AT&L, Fin, P&R, NII IRB Participants 7

8 Today WYPC UADPS Order MILSTRIP Phone Order MILSTRIP Web Order DAAS CitiDirect P-Card Payroll Data DCPS White Collar Time Employee Master Data Vendor DD250 Treasury CERPS National DCMA Vendor Invoice Goods Receipt UICP Expenditures MOCAS PPVM Claim MISIL Disbursements Travel Manager Plus Material Master IATS Large Contract Award Funds Validation Disbursement Billings Funding Document FRS Regional Order ADS Automated Disbursement System Funds Availability, Commitment Obligation Claims Status Army/ Airforce/ External Activity Billings Billings Collection Billings STARS Billing Direct Cite Funding Document STARS ONEPAY Payment Request Billings DEBX confirmation/ rejection Automated FADA Invoice File OPAC SD MM PP QA PM HR Expenditures Recon - cilliation SAP Military Personnel Data BUPERS FI CO AM PS WF IS 3-Way Match Update Expenditures Create Invoice Back Out incorrect Entries (As required) Disbursements Collections Corrections DCPDS Employee Master Data Line -of-accounting registers DEF/UDL CERPS Daily and Monthly Appropriations Ledger Reporting Match Vendor PID/PR Labor - LKE Ledger Summary for WCF SPS MPCS CMET FDR FDR Vendor Master (Commercial) CCR CDB/ DONIBIS 8

9 Future Material/Product Personnel DIMHRS/ CIVPAY SD FI MM CO PP QA PM Navy ERP HR (SAP) IS WF AM PS Treasury/ Financial Reporting SPS/Common Supplier Suite Future Environment Supported by Net-Centric Principles 9

10 Challenges Understanding/Applying BMMP Principles Instituting clear DON Leadership over business process transformation Change Management and Communication Coordination/Cooperation between Technical (CIOs) Business Managers (COOs) Resource Managers (CFOs) DoD Organization and Culture Make These Even More Challenging 10