The Homeland Security Department plans to consolidate its financial management systems around systems used by two of its component agencies, but overseers are skeptical of the strategy.
Under a recently completed plan, the 22 agencies that make up DHS will move to financial systems based on those in place at the Transportation Security Administration and Customs and Border Protection, DHS Chief Financial Officer David Norquist said Thursday in Senate testimony.
The department plans for 50 percent of its components to be on consolidated systems by fiscal 2009 and for 97 percent of the department to use one of the two systems by fiscal 2011. After that date, the department will select one system as a baseline.
Small offices like the Office of Health Affairs will shift first, Norquist said, followed by bigger agencies such as the Federal Emergency Management Agency and Immigration and Customs Enforcement.
The Office of Management and Budget has approved the plan. And the initiative appeared to receive qualified endorsements from the Government Accountability Office and the two senators who stayed through a June 29 hearing of the Senate Homeland Security and Governmental Affairs subcommittee on federal financial management.
In a report released at the hearing, GAO also questioned the selection of TSA and CBP, noting that “they have numerous financial management weaknesses and consequently do not appear to be good candidates to be models for an entity with an annual budget in excess of $40 billion.”
Norquist said the two systems were picked because they are already widely used in DHS, with 37 percent of the department employing one of them. And they are commercially available and supported by multiple vendors, which increases competition, he said. TSA uses a financial management system based on Oracle software, while CBP uses has a system developed by SAP AG that combines finance, accounting and asset management.
Norquist said financial problems at TSA and CBP do not relate to their accounting systems.
-Daniel Friedman, FederalTimes.com
READ MORE...
Friday, June 29, 2007
GAO: DHS lacks strategy to consolidate financial systems
The Homeland Security Department plans to consolidate several duplicative financial management systems although it does not have a detailed strategy to integrate its systems, standardize business processes and put in place effective workforce practices, the Government Accountability Office said.
Williams testified June 28 before Senate Homeland Security and Governmental Affairs Committee’s Federal Financial Management, Government Information, Federal Services and International Security Subcommittee. GAO today released its detailed report on DHS’ integrated financial management systems challenges.
The department will migrate its small agencies to one of two financial management systems in the next phase of its financial management consolidation. It anticipates that by fiscal 2009 one half of its agencies will be using the consolidated systems, said David Norquist, DHS’ chief financial officer.
The department will begin moving its larger components, such as the Federal Emergency Management Agency, in 2009. Consolidating financial management systems is the first step toward a departmentwide integrated system.
The 22 agencies that make up DHS each brought their own financial systems. DHS decided its component agencies will choose to move to one of two model systems now in use at the Transportation Security Administration and Customs and Border Protection to standardize financial systems platforms and better share data.
The department approach is consistent with GAO recommendations for strengthening financial management, Norquist said. DHS recently updated its concept of operations to describe current business processes and technical specializations of the system.
-Mary Mosquera, FCW.com
READ MORE...
Williams testified June 28 before Senate Homeland Security and Governmental Affairs Committee’s Federal Financial Management, Government Information, Federal Services and International Security Subcommittee. GAO today released its detailed report on DHS’ integrated financial management systems challenges.
The department will migrate its small agencies to one of two financial management systems in the next phase of its financial management consolidation. It anticipates that by fiscal 2009 one half of its agencies will be using the consolidated systems, said David Norquist, DHS’ chief financial officer.
The department will begin moving its larger components, such as the Federal Emergency Management Agency, in 2009. Consolidating financial management systems is the first step toward a departmentwide integrated system.
The 22 agencies that make up DHS each brought their own financial systems. DHS decided its component agencies will choose to move to one of two model systems now in use at the Transportation Security Administration and Customs and Border Protection to standardize financial systems platforms and better share data.
The department approach is consistent with GAO recommendations for strengthening financial management, Norquist said. DHS recently updated its concept of operations to describe current business processes and technical specializations of the system.
-Mary Mosquera, FCW.com
READ MORE...
Lawmakers urge DHS to speed up financial consolidation
The Homeland Security Department has made little progress in developing an integrated financial management system to address financial weaknesses the agency has inherited, a Government Accountability Office representative said Thursday.
At a hearing before the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, McCoy Williams, director of financial management and assurance at GAO, commended DHS for halting an unsuccessful attempt at a financial management system, but added that the department has made little progress since.
The failed system, known as eMerge2, was expected to establish the strategic direction for modernizing DHS financial, accounting, procurement, personnel, asset management and travel systems, processes and polices, Williams said. But after officials discovered that a contract awarded to BearingPoint Inc. in 2004 was plagued with management challenges, the department's chief financial officer declared the project officially "dead," Williams said.
David Norquist, DHS' new chief financial officer, said the department spent about $52 million on eMerge2. But the agency made a responsible decision to end the project before spending an estimated total of $229 million, the CFO added. Former department financial chief Andrew Maner let the eMerge2 contract expire Dec. 22, 2005.
Norquist said DHS has developed a new strategy -- the Transformation and Systems Consolidation -- which calls for component agencies to consolidate financial systems into one of two models, based on the Transportation Security Administration or the Customs and Border Protection bureau. He said that by fiscal 2009, he expects about half of the department to migrate to the designated system.
Williams recommended that DHS obtain guidance from the Internal Controls Over Financial Reporting Playbook, which was created by the department in March to establish policies and processes for developing a sound financial management system.
Keith Rhodes, a chief technologist at GAO, said the key to developing a financial management system at DHS is ensuring financial discipline in the process and ensuring that discipline is continuous through turnover and changing presidential administrations.
-Brittany R. Ballenstedt, GovExec.com
READ MORE...
At a hearing before the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, McCoy Williams, director of financial management and assurance at GAO, commended DHS for halting an unsuccessful attempt at a financial management system, but added that the department has made little progress since.
The failed system, known as eMerge2, was expected to establish the strategic direction for modernizing DHS financial, accounting, procurement, personnel, asset management and travel systems, processes and polices, Williams said. But after officials discovered that a contract awarded to BearingPoint Inc. in 2004 was plagued with management challenges, the department's chief financial officer declared the project officially "dead," Williams said.
David Norquist, DHS' new chief financial officer, said the department spent about $52 million on eMerge2. But the agency made a responsible decision to end the project before spending an estimated total of $229 million, the CFO added. Former department financial chief Andrew Maner let the eMerge2 contract expire Dec. 22, 2005.
Norquist said DHS has developed a new strategy -- the Transformation and Systems Consolidation -- which calls for component agencies to consolidate financial systems into one of two models, based on the Transportation Security Administration or the Customs and Border Protection bureau. He said that by fiscal 2009, he expects about half of the department to migrate to the designated system.
Williams recommended that DHS obtain guidance from the Internal Controls Over Financial Reporting Playbook, which was created by the department in March to establish policies and processes for developing a sound financial management system.
Keith Rhodes, a chief technologist at GAO, said the key to developing a financial management system at DHS is ensuring financial discipline in the process and ensuring that discipline is continuous through turnover and changing presidential administrations.
-Brittany R. Ballenstedt, GovExec.com
READ MORE...
Today's GAO Publications
The Government Accountability Office (GAO) today released the following guidance, report, and testimony:
GUIDANCE
Financial Audit Manual: Volume Three, Exposure Draft, June 2007.
GAO-07-313G, June 29
http://www.gao.gov/cgi-bin/getrpt?GAO-07-313G
LETTER REPORT
Homeland Security: Departmentwide Integrated Financial Management Systems Remain a Challenge.
GAO-07-536, June 21
http://www.gao.gov/cgi-bin/getrpt?GAO-07-536
Highlights - http://www.gao.gov/highlights/d07536high.pdf
TESTIMONY
Homeland Security: Transforming Departmentwide Financial Management Systems Remains a Challenge.
GAO-07-1041T, June 28
http://www.gao.gov/cgi-bin/getrpt?GAO-07-1041T
Highlights - http://www.gao.gov/highlights/d071041thigh.pdf
GUIDANCE
Financial Audit Manual: Volume Three, Exposure Draft, June 2007.
GAO-07-313G, June 29
http://www.gao.gov/cgi-bin/getrpt?GAO-07-313G
LETTER REPORT
Homeland Security: Departmentwide Integrated Financial Management Systems Remain a Challenge.
GAO-07-536, June 21
http://www.gao.gov/cgi-bin/getrpt?GAO-07-536
Highlights - http://www.gao.gov/highlights/d07536high.pdf
TESTIMONY
Homeland Security: Transforming Departmentwide Financial Management Systems Remains a Challenge.
GAO-07-1041T, June 28
http://www.gao.gov/cgi-bin/getrpt?GAO-07-1041T
Highlights - http://www.gao.gov/highlights/d071041thigh.pdf
Thursday, June 28, 2007
CFO Survey Released by AGA and Grant Thornton
For immediate release: June 28, 2007
Contact: Mike Hettinger
Grant Thornton LLP
703-373-8690
mike.hettinger@gt.com
CFO Survey Released by AGA and Grant Thornton
11th annual survey examines oversight, compliance efforts
WASHINGTON, June 28, 2006 ¾ Grant Thornton LLP and the Association of Government Accountants today released the 11th annual survey of Federal government Chief Financial Officers. The report, Scoring Financial Management & Oversight Efforts, was distributed earlier this week at AGA’s annual Professional Development Conference in Nashville, Tennessee.
More than 100 Federal financial executives and managers took part in the survey, which looked at balancing competing priorities, barriers to progress and the Office of Management and Budget’s Financial Management Line of Business initiative. This year’s survey also turned the tables and let financial managers evaluate their evaluators – the Government Accountability Office, the Office of Management and Budget, Inspectors General and Congressional committees.
Generally, survey results suggest that resources are not balanced between meeting compliance requirements and adding value to program decision making and that more consideration should be given to risk mitigation. Many survey respondents said that the government pays too much for financial management compliance and receives too little in return. Oversight groups should understand that they can have both positive and negative effects, and if they could agree on governmentwide priorities for financial management – and integrate the compliance process – this would help set the stage for fundamental reforms.
"The building blocks for effective financial management are there, we now need to find the most effective way to bring them together", said Clifton Williams, a Partner at Grant Thornton and principal author of this year’s survey.
Relmond Van Daniker, Executive Director of AGA added, "This year’s survey really highlighted the fact that today’s federal financial managers are walking a tightrope as they attempt to balance the competing priorities of compliance with strategic decision making."
About the Association of Government Accountants
The Association of Government Accountants, founded in 1950, is dedicated to the enhancement of public financial management. AGA serves state, local and Federal financial managers – more than 14,000 members, including professionals in accounting, administration, auditing, budgeting, consulting, grants, fraud investigation and information technology. AGA has been instrumental in developing accounting and auditing standards and in generating new concepts to improve financial management functions. AGA conducts independent research in all aspects of government financial management. These studies, including the 2007 AGA CFO Survey, make AGA a leading advocate for improving government fiscal administration and program performance. For more information, visit http://www.agacgfm.org/.
About Grant Thornton LLP
Grant Thornton LLP, founded in Chicago in 1924, is one of the largest accounting and management consulting firms in the world. Grant Thornton’s Global Public Sector, based in Alexandria, Va., is a global management consulting business with the mission of providing responsive and innovative financial, performance management, human capital management and systems solutions to governments and international organizations. To learn more about Grant Thornton’s Global Public Sector, contact us at 703.837.4400 or visit www.grantthornton.com/publicsector.
An electronic version is of the report is available at:
Grant Thornton Global Public Sector Publications
Contact: Mike Hettinger
Grant Thornton LLP
703-373-8690
mike.hettinger@gt.com
CFO Survey Released by AGA and Grant Thornton
11th annual survey examines oversight, compliance efforts
WASHINGTON, June 28, 2006 ¾ Grant Thornton LLP and the Association of Government Accountants today released the 11th annual survey of Federal government Chief Financial Officers. The report, Scoring Financial Management & Oversight Efforts, was distributed earlier this week at AGA’s annual Professional Development Conference in Nashville, Tennessee.
More than 100 Federal financial executives and managers took part in the survey, which looked at balancing competing priorities, barriers to progress and the Office of Management and Budget’s Financial Management Line of Business initiative. This year’s survey also turned the tables and let financial managers evaluate their evaluators – the Government Accountability Office, the Office of Management and Budget, Inspectors General and Congressional committees.
Generally, survey results suggest that resources are not balanced between meeting compliance requirements and adding value to program decision making and that more consideration should be given to risk mitigation. Many survey respondents said that the government pays too much for financial management compliance and receives too little in return. Oversight groups should understand that they can have both positive and negative effects, and if they could agree on governmentwide priorities for financial management – and integrate the compliance process – this would help set the stage for fundamental reforms.
"The building blocks for effective financial management are there, we now need to find the most effective way to bring them together", said Clifton Williams, a Partner at Grant Thornton and principal author of this year’s survey.
Relmond Van Daniker, Executive Director of AGA added, "This year’s survey really highlighted the fact that today’s federal financial managers are walking a tightrope as they attempt to balance the competing priorities of compliance with strategic decision making."
About the Association of Government Accountants
The Association of Government Accountants, founded in 1950, is dedicated to the enhancement of public financial management. AGA serves state, local and Federal financial managers – more than 14,000 members, including professionals in accounting, administration, auditing, budgeting, consulting, grants, fraud investigation and information technology. AGA has been instrumental in developing accounting and auditing standards and in generating new concepts to improve financial management functions. AGA conducts independent research in all aspects of government financial management. These studies, including the 2007 AGA CFO Survey, make AGA a leading advocate for improving government fiscal administration and program performance. For more information, visit http://www.agacgfm.org/.
About Grant Thornton LLP
Grant Thornton LLP, founded in Chicago in 1924, is one of the largest accounting and management consulting firms in the world. Grant Thornton’s Global Public Sector, based in Alexandria, Va., is a global management consulting business with the mission of providing responsive and innovative financial, performance management, human capital management and systems solutions to governments and international organizations. To learn more about Grant Thornton’s Global Public Sector, contact us at 703.837.4400 or visit www.grantthornton.com/publicsector.
An electronic version is of the report is available at:
Grant Thornton Global Public Sector Publications
FederalNewsRadio - Ask the CFO - Chuck Christopherson (USDA)
United States Department of Agriculture (USDA)
Charles Christopherson - Chief Financial Officer
It's going to be a whole new way of looking at government finances. USDA CFO Charles Christopherson says it may be June, but that January's initial deadline for implementing the Federal Funding Transparency Act needs to be taken seriously. Not only will the act make it easier for members of the public to understand how agencies, like the USDA, are spending their dollars, Christopherson says it may also force agencies to look at their numbers in ways they never considered. Christopherson also talks about the new approach to the farm bill and the impact of funding proposals for avian influenza and biofuels.
Listen Here
Charles Christopherson - Chief Financial Officer
It's going to be a whole new way of looking at government finances. USDA CFO Charles Christopherson says it may be June, but that January's initial deadline for implementing the Federal Funding Transparency Act needs to be taken seriously. Not only will the act make it easier for members of the public to understand how agencies, like the USDA, are spending their dollars, Christopherson says it may also force agencies to look at their numbers in ways they never considered. Christopherson also talks about the new approach to the farm bill and the impact of funding proposals for avian influenza and biofuels.
Listen Here
Coleman is GSA's acting CIO
The General Services Administration has named Casey Coleman acting chief information officer, the agency announced today. She has been CIO at GSA’s Federal Acquisition Service.
Coleman replaces Mike Carleton, who is leaving to be the Health and Human Services Department's CIO and deputy assistant secretary for information technology within the Office of the Assistant Secretary for Resources and Technology.
Coleman was FAS’ first CIO since its creation in October 2006. She had been CIO at the GSA’s Federal Technology Service, and she headed the GSA Office of Citizen Services from 2002 to 2004.
-Mathew Weigelt, GovernmentLeader.com
READ MORE...
Coleman replaces Mike Carleton, who is leaving to be the Health and Human Services Department's CIO and deputy assistant secretary for information technology within the Office of the Assistant Secretary for Resources and Technology.
Coleman was FAS’ first CIO since its creation in October 2006. She had been CIO at the GSA’s Federal Technology Service, and she headed the GSA Office of Citizen Services from 2002 to 2004.
-Mathew Weigelt, GovernmentLeader.com
READ MORE...
Wednesday, June 27, 2007
AGA PDC 2007 Wrap Up
Once again, the Association of Government Accountants put on a very informative and collaborative educational conference at its annual Professional Development Conference.
Sessions were organized around the following tracks:
Speaker Biographies
Speaker Presentations
Monday Summary
Tuesday Summary
Wednesday Summary
Sessions were organized around the following tracks:
- Accountability & Ethics
- Auditing Tips, Tools & Techniques
- Financial Management Strategies
- Innovative Funding Mechanisms
- Management Challenges & Solutions
Speaker Biographies
Speaker Presentations
Monday Summary
Tuesday Summary
Wednesday Summary
Today's GAO Publication
The Government Accountability Office (GAO) today released the following correspondence:
Management Report: Opportunities for Improvements in FDIC's Internal Controls and Accounting Procedures.
GAO-07-942R, June 27.
http://www.gao.gov/cgi-bin/getrpt?GAO-07-942R
Management Report: Opportunities for Improvements in FDIC's Internal Controls and Accounting Procedures.
GAO-07-942R, June 27.
http://www.gao.gov/cgi-bin/getrpt?GAO-07-942R
Tuesday, June 26, 2007
Today's GAO Publication
The Government Accountability Office (GAO) today released the following report:
Navy Working Capital Fund: Management Action Needed to Improve Reliability of the Naval Air Warfare Center's Reported Carryover Amounts.
GAO-07-643, June 26.http://www.gao.gov/cgi-bin/getrpt?GAO-07-643
Highlights - http://www.gao.gov/highlights/d07643high.pdf
Navy Working Capital Fund: Management Action Needed to Improve Reliability of the Naval Air Warfare Center's Reported Carryover Amounts.
GAO-07-643, June 26.http://www.gao.gov/cgi-bin/getrpt?GAO-07-643
Highlights - http://www.gao.gov/highlights/d07643high.pdf
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