USDA Shared Services Journey

Transcription

1 USDA Shared Services Journey USDA was named as an SAP Federal Financial Shared Services Provider in May 2014, able to offer financial system services within the federal government. This was in response to the March 2013, OMB M-13-08, which directed Executive Departments and Agencies to use a shared service solution for the modernization of core accounting or mixed systems. Financial Management Services (FMS) offers SAP-based core financial system, financial transactional processing services, a grants management solution and more. FMS currently serves 29 agencies and staff offices. 1

2 USDA SAP Shared Service Offering Flexible and scalable Cloud deployments Robust Enterprise Resource Planning (ERP) solution Experienced as FMS currently serves 29 agencies and staff offices Integrated suite of commercial and government applications leveraged to automate common administrative tasks associated with financial management Role-based, personalized Web access to approved information, applications and services that they require to accomplish their respective tasks Integrated with single-sign on capabilities Momentum Added to USDA Portfolio USDA and GSA CFO negotiated a Lift and Shift action that resulted in a seamless migration to USDA, a designated Shared Service provider, with no degradation in service, reduction in staff, and provided a ready-made Shared Service option for the Federal community. In November 2013, approval was given by OMB for GSA to use Administrator s authority to assign the Financial Management Line of Business (FMLoB) and transfer personnel to the USDA. Pegasys Financial Services (PFS) offers Momentum-based core financial system, financial transactional processing services, and more. Pegasys currently provides financial services to the U.S General Services Administration and 40 other external clients comprised of Boards, Commissions, and Small Agencies. USDA is currently implementing a multi-tenant instance of Momentum Financials. 2

3 Pegasys Momentum Efficient management using a multi-tenant instance Flexible and scalable Cloud deployments Reliable and safe to protect data and provide integrity Accountable and accurate to support federal financial operations and audits Agile to support real-time financials and accounting controls Adaptable to legislative requirements and easily configurable Interaction with Veterans Affairs Phase 2 of the M3 Playbook: Selection Objective: Conduct due diligence to select the provider based on requirements and desired target end state (Pre-Discovery) USDA presented key aspects of the Momentum system as built over three weeks Covered SAP system and advanced reporting options 3

4 Phase 2 Pre-Discovery Schedule Week 1 Intro/Overview VA Organization Vision and Shared Services Process Overview Stakeholder identification Lessons Learned Change Management Solution Overview Formulate to Execution Request to Procure Acquisition Procure to Pay Week 2 Order to Cash Reimbursable Agreements Acquire to Retire Record to Report Business Analytics Additional Topics Formulate to Execution Request to Procure Week 3 Enterprise Content Management DataMigration Integration O&M Performance Security Grants Project Risks Sessions Close for Momentum Solution Overview of SAP Pre-Discovery Outcomes Proposed Integrated Program Management Approach Lessons Learned Report Discovery Scope Statement Gaps Analysis Document (by critical gap area) Functional Requirements Document (by critical gap area) Integrated Governance and Control Plan Preliminary Risk Register Forecasted Implementation Price and Timeline (rough order of magnitude) Forecasted Operations and Maintenance Price Input for Discovery IAA Input for Discovery Readiness Assessment Report and Briefing Implementation Approach Analysis 4

5 Selection In October 2016, the Department of Veterans Affairs (VA) selected the Department of Agriculture (USDA) as its federal shared service provider to enter into the Engagement Phase as part of its effort to modernize VA financial systems Aligning with the M3 Playbook USDA and VA are currently executing the Engagement phase of the M3 Playbook, specifically Task 3.12 Conduct Requirements Fit-Gap Analysis using and Agile approach. 5

6 Work Streams for the VA Project Budget Formulation to Budget Execution Request to Procure Bill to Collect Procure to Pay Reimbursable Management Record to Report Acquire to Dispose Grants Management Business Intelligence Work Streams and Sprints For each work stream, the team is performing three sprints* Inventory Validating all requirements and as is process and systems for the work stream Framing the COTS solution to meet the requirements and processing Working Session - VA SMEs and end users validate the configuration *These sprints may occur more than once depending on the complexity of the work stream 6

7 Toll Gates and Check Points As each sprint is completed, USDA develops M3 artifacts that are reviewed and approved prior to proceeding to the next step. Using this approach, the team is developing the final solution for the Migration phase using Agile sprints What is the FMBT Program? FMBT Program Vision Provide a modern integrated financial management and acquisition solution with transformative business processes and capabilities that enable VA to meet its goals and objectives in compliance with financial management legislation and directives ultimately enhancing service to the Veterans. FMBT Program Mission The FMBT Program will increase the transparency, accuracy, timeliness and reliability of financial information across VA, resulting in improved fiscal accountability to American tax payers and increased opportunity to improve care and services to our Veterans. FMBT Values Service to Veterans Transforming the way we respond to Veterans needs through accessible and transparent management systems Innovation Modernizing and standardizing financial management and acquisition tools enabling effective VA business processes and analytics Data Integrity Making VA financial data accurate, available in realtime, and federally compliant 7

8 Software as a Service In collaboration with USDA, VA will migrate to the Momentum cloud solution, allowing VA to leverage CGI s Software as a Service (SaaS) model VA will benefit from this state-of-the-art ERP cloud solution to resolve audit deficiencies, gain increased operational efficiency, improved productivity, agility, and increased flexibility Migrating to a modern, integrated shared services cloud solution addresses many of VA s system concerns to include mitigating the risk of material errors in financial statements, reconciling interagency agreements to the balances reported in financial statements, and remediating prior year recovery reconciliations The new modern cloud solution facilitates a repeatable process for VA to perform the consolidated and comprehensive monthly reconciliation, removing the need for manual entry into multiple systems The new integrated shared services cloud solution will provide added security, storage, scalability, and will help VA standardize processes while leveraging best practice configurations Why must we change our financial management system now? FMS is a 30 year-old COBOL-based legacy system. Failure of VA s core accounting system would halt Department operations and severely disrupt the lives of Veterans. Additional Drivers System Update privacy protocols and modernize security due to outdated technology Process People Jeopardizes prompt and accurate payments to Veterans and vendors, resulting in decreased customer service and inefficient acquisition and delivery of goods, supplies, and services Creates burdensome workload for personnel due to manual data entry and reconciliation instead of leveraging proactive analytics Compliance Not compliant with existing and emerging Federal regulations, including unresolvable audit issues Output Cannot produce timely and accurate financial reporting, resulting in lack of fiscal accountability and transparency 8

9 FMBT Value Proposition Leveraging economies of scale to reduce costs and increase efficiencies Reducing audit issues ensuring data is fully secured with the latest standards Standardizing, integrating, and streamlining financial processes including budgeting, procurement, accounting, resource management, and financial reporting Reducing administrative burden allowing focus on program missions, e.g., manual data entry into multiple systems, ending reconciliation due to lack of integration Automated internal controls and edit checks improving data quality Automating business processes including budget execution, payments to vendors and Veterans, and financial reporting Strengthening management decision making by providing advanced analytics and projections for planning purposes FMBT Opportunities for Innovation Opportunities for innovation include: Data as a corporate asset: Strengthen management decisions Reduce waste, fraud and abuse Ability to perform predictive analytics and trending Reduce improper payments Leveraging economies of scale to reduce costs and increase efficiencies Standardizing, integrating, and streamlining financial processes including budgeting, procurement, accounting, resource management, and financial reporting Reducing audit issues ensuring data is fully secured with the latest standards Reducing administrative burden allowing focus on program missions, e.g., manual data entry into multiple systems, ending reconciliation due to lack of integration Automating business processes including budget execution, payments to vendors and Veterans, and financial reporting Automated internal controls and edits checks improving data quality 9

10 Program Timeline Overview Initial operational capability is scheduled for Q1 FY 2020 (calendar year 2019) We are using the Modernization and Migration Management (M3) approach, which breaks the project into discrete phases, and focuses on an incremental Agile development framework We are currently in the Engagement Phase of the program 0. Assessment FY 17, Q1 FY 17, Q3 1. Readiness 2. Selection FY 17, Q3 FY 18, Q4 3. Engagement 4. Migration FY 19, Q1 FY 20, Q1 5. Operations Project Management Update and maintain project plans Monitor and control program execution Maintain and execute risk processes Update Life Cycle Cost Estimates for migration and O&M Workforce, Organization, & Stakeholders Engage with labor relations Execute change management and communications plan Engage stakeholders through site visits and interviews Conduct change impact analysis Develop training plan Technology Finalize technical requirements Conduct gap requirements analysis Finalize target state systems environment Develop integrated technical strategy Prepare data for mock conversions Process & Service Delivery Finalize target state concept of operations Define integrated contact center structure Define service level agreements Finalize migration approach Legend: Tollgate: Phase based review meeting of program progress, risks, and improvement opportunities Program Health Assessment: Inter phase review meetings to discuss program current state and prepare for Tollgates Note: Timeline subject to change New VA Financial Systems Solution Name and Logo VA s Financial Management Business Transformation (FMBT) Management Office recently announced a new name and logo for their financial systems solution Integrated Financial and Acquisition Management System (ifams) the award-winning result of combining Name the System contest entries from two VA employees. The new ifams logo goes along with FMBT s branding and emphasizes core elements of the new financial system cutting-edge technology operating in a dynamic and modern cloud environment. 10

11 The Mission of Business Process Re-engineering Transform the Department from its separate, disparate business processes to a standardized business process environment that optimizes how we work in support of the MyVA mission and the Veteran. Understand As Is Validate Requirements Against Target Solution Mitigate Gaps Develop a Standardized To Be Across Organizations It s not just about understanding Momentum, but understanding ourselves and improving as we move to our new financial and acquisition management system. FMBT Guiding Principles: We will Which means Adopt best practices from the Utilize baseline Momentum solutions and recommended business Federal Shared Service processes to minimize lifecycle costs and maximize the use of functionality Provider as designed for core functions Not replicate the old system Modify the configuration based on VA's business needs that are rooted in legislation and regulations ("what" VA needs, not based on "how" VA does business today) Redesign business processes to align with the configuration selections Ensure compliance with laws Adjust business processes, policies, and data structures to maximize the and regulations use of the standard configuration, which already provides the ability to meet United States (U.S.) legislation and regulation surrounding Federal financial systems Address audit findings Make configuration selections to address VA audit findings Redesign business processes to align with the configuration selections Eliminate manual Avoid reconciliation challenges and improve operating efficiency by reconciliation minimizing points of entry for transaction and reference data Consider downstream impacts and reporting Improve the quality of outputs by leveraging existing tools, technology solutions, and organizational design to augment the FSSP solution 11

12 FMBT leverages an agile like approach to progressively elaborate upon the provider s standard solution to meet VA s business needs. Business Process Re engineering Inventory Fit Gap Framing Fit Gap Workshop Activities Activities Activities Perform system centric discovery meetings with VA System Owners Inventory systems and functions; organize data via business process (system, data types, policies, challenges, immovable dates) Perform preliminary assessment of inclusion/exclusion from Target State Develop Draft Target State Systems Architecture Conduct system demonstrations based on initial understanding of requirements Collect feedback on scenarios and business process flows; refine requirements Elicit a conclusion on assessment for inclusion/exclusion from Target State Ecosystem; update Inventory and Ecosystem Create Configuration Guides to document configuration selections Identify initial gaps Conduct detailed system demonstrations, based on refined understanding of requirements Identify and resolve gaps through governance process Finalize Configuration Guides to document configuration selections Develop Test Scenarios Finalize Target State Process Maps Finalize Target State Ecosystem VA currently has approximately 250 subject matter experts (SMEs) and over 20 Program Advisors from across Administrations and Staff Offices participating in the BPR sessions to date. BPR Schedule Business Process Areas Budget Formulation to Execution (BF2E) Request to Procure (R2P) Procure to Pay (P2P) Reimbursable Agreements (RA) Bill to Collect (B2C) Record to Report (R2R) Acquire to Dispose (A2D) Grants Management (GM) Business Intelligence Reporting (BI) 12

13 Reengineering with the End State in Mind End-State BPR Outcomes: Standardized, integrated, and streamlined financial processes including budgeting, procurement, accounting, and financial reporting to drive efficiency Improved fiscal accountability and financial transparency within VA and to our external stakeholders Move from reconciliation and transaction focus to proactive analysis focus Improved data consistency across organizations, which leads to better comparative analytics Increased quality and clarity of standard operating procedures Integrated single view of status of funds from requisition through delivery Improved speed and reliability of communicating financial information throughout VA as well as timely, robust, and accurate financial reporting Standardization is the Key Deliverable Q&A 13