FSIO Released the following exposure drafts in May 2008.
Receivables Management Exposure Draft
The Financial Systems Integration Office (FSIO) and the Office of Management and Budget (OMB) are pleased to announce the release of the exposure draft for the Receivables Management standard business process. Please submit your comments and questions in writing by July 1, 2008 to fsio@gsa.gov, using the comment template.
Receivables Management Cover Letter (Word)
Receivables Management Exposure Draft (Word)
Receivables Management Comment Template (XLS)
Proposed New Agency Identifier Codes
The Treasury Department Financial Management Service (FMS) in collaboration with the budget division in OMB, has developed a unified set of Agency Identifier codes that complies with the CGAC standards published in 2007.
Our short term goal is to finalize the new Agency Identifier codes for all agencies. The long term goal is the implementation Governmentwide of these codes. The long term implementation plan is under development and will be disclosed in the future.
Agencies are invited and encouraged to send comments on the new Agency Identifier codes by July 1, 2008.
CFO memo and codes
Showing posts with label CGAC. Show all posts
Showing posts with label CGAC. Show all posts
Wednesday, May 28, 2008
Tuesday, January 29, 2008
OMB to agencies: Use business standards in new financial software
The Office of Management and Budget will require agencies to use governmentwide business standards when they upgrade their financial systems software and move to a public or private shared-services provider. OMB released the memo this morning.
Business standards, such as the common governmentwide accounting code and business processes, will be incorporated into existing core financial systems requirements under the Financial Management Line of Business, said Danny Werfel, OMB acting controller, in the memo, which Federal Computer Week obtained.
The Financial Systems Integration Office will test the standards during its software qualification and certification process. Once FSIO certifies that the software meets core financial systems requirements, agencies will be able to use the certified software only as configured with the finalized business standards. Agencies will have to adopt these standards when it moves to a shared-services provider.
Through this year, OMB and FSIO will finalize the business standards for funds control, payment management, receivable management, reimbursables and reporting processes, and develop cost and performance measurements for them. The standards for funds control and payment management are about to be finalized. OMB and FSIO also will expand the current migration planning guidance to help agencies navigate the acquisition process for shared financial services, the memo states.
In 2009, OMB and FSIO will update testing methods for business standards in addition to testing scenarios. Financial system providers will integrate the business standards into their software in preparation for testing.
The requirements of FM LOB take effect when an agency is modernizing its system, Werfel said.
-Mary Mosquera, FCW.com
READ MORE...
Business standards, such as the common governmentwide accounting code and business processes, will be incorporated into existing core financial systems requirements under the Financial Management Line of Business, said Danny Werfel, OMB acting controller, in the memo, which Federal Computer Week obtained.
The Financial Systems Integration Office will test the standards during its software qualification and certification process. Once FSIO certifies that the software meets core financial systems requirements, agencies will be able to use the certified software only as configured with the finalized business standards. Agencies will have to adopt these standards when it moves to a shared-services provider.
Through this year, OMB and FSIO will finalize the business standards for funds control, payment management, receivable management, reimbursables and reporting processes, and develop cost and performance measurements for them. The standards for funds control and payment management are about to be finalized. OMB and FSIO also will expand the current migration planning guidance to help agencies navigate the acquisition process for shared financial services, the memo states.
In 2009, OMB and FSIO will update testing methods for business standards in addition to testing scenarios. Financial system providers will integrate the business standards into their software in preparation for testing.
The requirements of FM LOB take effect when an agency is modernizing its system, Werfel said.
-Mary Mosquera, FCW.com
READ MORE...
Monday, August 13, 2007
A rally behind accounting codes
Use of common financial standards is seen as a precursor to governmentwide reforms
The government finally is putting the cart behind the horse when it comes to financial management. The Financial Systems Integration Office (FSIO) last week released governmentwide accounting codes to help agencies standardize their business processes, financial data and interfaces for financial reporting.
Officials said the standards should encourage agencies to divert some of the energy they expend on building new financial systems to improving the reporting functions of their existing systems.
Lawmakers and financial experts have criticized the Office of Management and Budget and the General Services Administration for asking agencies to participate in the FM LOB before OMB and GSA put the basic building blocks in place.
“They needed to look at things like a common governmentwide accounting code, which would help bring everything together for the FM LOB,” said Mike Hettinger, director of practice, planning and marketing at Grant Thornton, a consulting company. Hettinger is a former staff director of the House Oversight and Government Reform Committee’s Government Management, Finance and Accountability Subcommittee.
The newly released Common Governmentwide Accounting Classification standards offer agencies a common way to code and categorize financial transactions. The standards establish a common understanding of the concepts of managing financial transactions. They will be recognized across government just as standards for automated teller machines are recognized and used by all banks, said Linda Combs, outgoing controller at OMB.
-Mary Mosquera, FCW.com
READ MORE...
The government finally is putting the cart behind the horse when it comes to financial management. The Financial Systems Integration Office (FSIO) last week released governmentwide accounting codes to help agencies standardize their business processes, financial data and interfaces for financial reporting.
Officials said the standards should encourage agencies to divert some of the energy they expend on building new financial systems to improving the reporting functions of their existing systems.
Lawmakers and financial experts have criticized the Office of Management and Budget and the General Services Administration for asking agencies to participate in the FM LOB before OMB and GSA put the basic building blocks in place.
“They needed to look at things like a common governmentwide accounting code, which would help bring everything together for the FM LOB,” said Mike Hettinger, director of practice, planning and marketing at Grant Thornton, a consulting company. Hettinger is a former staff director of the House Oversight and Government Reform Committee’s Government Management, Finance and Accountability Subcommittee.
The newly released Common Governmentwide Accounting Classification standards offer agencies a common way to code and categorize financial transactions. The standards establish a common understanding of the concepts of managing financial transactions. They will be recognized across government just as standards for automated teller machines are recognized and used by all banks, said Linda Combs, outgoing controller at OMB.
-Mary Mosquera, FCW.com
READ MORE...
Wednesday, August 08, 2007
FSIO Releases Two FMLOB Publications
The Financial Systems Integration Office (FSIO) released two important FMLOB publications this week.
The first release was version 4 of the Due Diligence Checklist (DDC) for Federal Shared Service Providers (SSP). The DDC is a list of questions used by the Office of Management and Budget (OMB), the Financial Systems Integration Office (FSIO) within GSA, and customer agencies to assess the abilities of potential and current SSP’s in several areas. The DDC replaces section 2.1 of the Migration Planning Guidance Document
The second release was the Common Government-wide Accounting Classification (CGAC) Structure along with associated frequently asked questions. The CGAC structure establishes a standard method for classifying the financial effects of government business activities and moves the Federal government closer to a single standard.
The first release was version 4 of the Due Diligence Checklist (DDC) for Federal Shared Service Providers (SSP). The DDC is a list of questions used by the Office of Management and Budget (OMB), the Financial Systems Integration Office (FSIO) within GSA, and customer agencies to assess the abilities of potential and current SSP’s in several areas. The DDC replaces section 2.1 of the Migration Planning Guidance Document
The second release was the Common Government-wide Accounting Classification (CGAC) Structure along with associated frequently asked questions. The CGAC structure establishes a standard method for classifying the financial effects of government business activities and moves the Federal government closer to a single standard.
Tuesday, May 01, 2007
LOBs continue to take hold, OMB officials say
WILLIAMSBURG, Va. -- In the three years since the Office of Management and Budget began work on the line-of-business initiatives, agencies went from “no, never going to happen” to “this can work,” according to officials involved in the programs.
One of the keys has been convincing agencies to work as one government enterprise, said Tim Young, OMB’s associate administrator for e-government and information technology.
The Human Resources and Financial Management LOBs are the furthest along in meeting OMB’s goal of fee for service.
Danny Werfel, OMB’s deputy comptroller, said the financial initiative will release a request for proposals in June to certify commercial shared-service providers. Other officials said the HR LOB will precede the financial RFP with its own this month.
Werfel also said the Financial Management LOB would release its next set of accounting standards for payables for public comment this month. The accounts receivable and billing would come after that, Werfel said.
The Financial Management LOB office wants to test the common governmentwide accounting code with a handful of agencies, he added.
“We want a proof of concept,” Werfel said. “We want agencies to put together an implementation schedule and it will be helpful for them to see what challenges they may face in a pilot.”
GSA received more than 600 comments and will release the final document in the fall, he added.
-Jason Miller, FCW.com
READ MORE...
One of the keys has been convincing agencies to work as one government enterprise, said Tim Young, OMB’s associate administrator for e-government and information technology.
The Human Resources and Financial Management LOBs are the furthest along in meeting OMB’s goal of fee for service.
Danny Werfel, OMB’s deputy comptroller, said the financial initiative will release a request for proposals in June to certify commercial shared-service providers. Other officials said the HR LOB will precede the financial RFP with its own this month.
Werfel also said the Financial Management LOB would release its next set of accounting standards for payables for public comment this month. The accounts receivable and billing would come after that, Werfel said.
The Financial Management LOB office wants to test the common governmentwide accounting code with a handful of agencies, he added.
“We want a proof of concept,” Werfel said. “We want agencies to put together an implementation schedule and it will be helpful for them to see what challenges they may face in a pilot.”
GSA received more than 600 comments and will release the final document in the fall, he added.
-Jason Miller, FCW.com
READ MORE...
Tuesday, February 20, 2007
Leaders want reporting on same page
Common accounting code could weed out some of the ‘thousand flowers’
There are five authoritative sources that describe the codes agencies use in their financial management statements. And there are 35 elements that agencies include in those statements, but there is no standard definition for each of the components.
Those are just two of the most obvious examples of how agency financial-management systems have grown together and apart, leaving agency reporting inconsistent and reconciliation for the Treasury Department, which handles all the money, a difficult task.
But by developing a common governmentwide accounting code, the Office of Management and Budget hopes to align financial-management data, improve business processes and reduce the cost and risks of implementing financial systems. Or as one vendor put it, it’s time to end the “thousand flowers bloom” approach that has developed over the last 20 years.
“Anytime you standardize financial practices, it always gives you efficiency, reduces errors and provides more portability,” said Sam Mok, the Labor Department’s chief financial officer. “Right now, if you take any subject, any line item on a financial statement, each agency has a different interpretation of what it is.”
These standards are the key to the success of the Financial Management Line of Business Consolidation effort, said Mary Mitchell, FM LOB’s program manager and the executive director of the Financial Systems Integration Office.
FM LOB officials issued their exposure draft in November, received 600 comments from government and industry, and will issue the final version in April, Mitchell said.
“This is the most foundational document of all we are working on,” Mitchell said. “The things we are including in the code are the first things agencies worry about setting in stone when they migrate to a new system.”
An OMB spokeswoman said four agencies—the departments of Defense, Health and Human Services and Transportation, and the Environmental Protection Agency—have been developing their own accounting codes.
Mitchell said the goal for both the accounting code and the business processes is to develop an 80 percent solution and leave agencies with enough flexibility so they can tweak their systems to meet unique needs.
“Defining the governmentwide standard will eliminate the need to create a different standard at every federal agency,” the spokeswoman said.
- Jason Miller, GCN.com
READ MORE...
There are five authoritative sources that describe the codes agencies use in their financial management statements. And there are 35 elements that agencies include in those statements, but there is no standard definition for each of the components.
Those are just two of the most obvious examples of how agency financial-management systems have grown together and apart, leaving agency reporting inconsistent and reconciliation for the Treasury Department, which handles all the money, a difficult task.
But by developing a common governmentwide accounting code, the Office of Management and Budget hopes to align financial-management data, improve business processes and reduce the cost and risks of implementing financial systems. Or as one vendor put it, it’s time to end the “thousand flowers bloom” approach that has developed over the last 20 years.
“Anytime you standardize financial practices, it always gives you efficiency, reduces errors and provides more portability,” said Sam Mok, the Labor Department’s chief financial officer. “Right now, if you take any subject, any line item on a financial statement, each agency has a different interpretation of what it is.”
These standards are the key to the success of the Financial Management Line of Business Consolidation effort, said Mary Mitchell, FM LOB’s program manager and the executive director of the Financial Systems Integration Office.
FM LOB officials issued their exposure draft in November, received 600 comments from government and industry, and will issue the final version in April, Mitchell said.
“This is the most foundational document of all we are working on,” Mitchell said. “The things we are including in the code are the first things agencies worry about setting in stone when they migrate to a new system.”
An OMB spokeswoman said four agencies—the departments of Defense, Health and Human Services and Transportation, and the Environmental Protection Agency—have been developing their own accounting codes.
Mitchell said the goal for both the accounting code and the business processes is to develop an 80 percent solution and leave agencies with enough flexibility so they can tweak their systems to meet unique needs.
“Defining the governmentwide standard will eliminate the need to create a different standard at every federal agency,” the spokeswoman said.
- Jason Miller, GCN.com
READ MORE...
Tuesday, February 13, 2007
COMMON GOVERNMENT-WIDE ACCOUNTING CLASSIFICATION (CGAC) STRUCTURE: EXPOSURE DRAFT
From the FMLOB Quarterly Newsletter:
The FMLoB released the Common Government-Wide Accounting Classification (CGAC) Structure Exposure Draft on November 17, 2006. The CGAC structure establishes a standard way to classify the financial effects of government business activities. It includes data elements needed for internal and external reporting and provides flexibility for agency mission-specific needs. The proposed standard CGAC structure identifies and defines the elements, names them where appropriate, promotes consistent use, and establishes a uniform structure for capturing them. The CGAC structure will promote a universal understanding of the elements used to classify transactions, provide a uniform framework as a starting point for agency classification structures, standardize accounting classification functionality in systems offered to the Federal government, and aid in the aggregation and comparison of data across the government.
The CGAC structure will eventually be incorporated into requirements for core financial management systems so that the structure will be embedded in standard software products.
An agency will likely adopt the finalized structure when it implements a new financial management system, makes major upgrades to an existing certified system, or moves to a shared service provider (SSP). Eventually, adoption of the CGAC structure will be mandatory. Figure I shows the adoption of standardization within the 24 Chief Financial Officer (CFO) Act
Agencies today, as analyzed through the CGAC Survey that was conducted in the Fall of 2006.
The central Federal financial management agencies, including the Office of Management and Budget (OMB) and the Department of the Treasury, have participated in the definition
of this common government-wide accounting classification structure. They are committed to making the changes needed to align their systems and processes to the new structure.
Facilitated sessions are planned in February 2007 to discuss comments on the Exposure Draft from the Federal financial management community before the final structure is adopted.
Once the CGAC structure is finalized, additional work will address implementation issues and planning.
The CGAC Exposure Draft can be found at the Financial Systems Integration Office (FSIO) web site (www.fsio.gov).
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