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Showing posts with label DOD. Show all posts
Showing posts with label DOD. Show all posts

Friday, January 20, 2017

Despite billions invested in DoD ERP systems, few financial managers see reduction in workload

The Defense Department has spent well over a decade and tens of billions of dollars to buy enterprise resource planning (ERP) systems with the hope that they would help the military adopt modern, automated business processes and pave the way to financial auditability. But a strikingly small number of DoD financial managers think the systems have done anything to make their jobs easier.
The finding is part of an annual survey and report by the American Society of Military Comptrollers and Grant Thornton. Only 20 percent of the Defense financial workforce said the ERPs had reduced their workload. Another 20 percent said they had made no difference, and 15 percent said they’d actually made their lives more complicated than working with the decades-old legacy systems the ERPS are replacing.
This year’s report represents the ninth year in a row in which researchers have surveyed hundreds of rank-and-file and senior executive members of the Pentagon’s financial management community. Aside from IT modernization, it found at least three other common themes that repeated themselves year-after-year.
Among the most obvious: comptrollers have become fed up with budget uncertainty after having to navigate through eight consecutive years of continuing resolutions, government shutdowns and limitations imposed by the Budget Control Act. As one anonymous respondent put it: “We’re great at building a budget and manpower models based on forecast costs and requirements,” but budgets have had to be “modified continually in response to lower than expected levels of actual receipt of funds.”

- FederalNewsRadio.com
https://shar.es/1O4IMB via @fednewsradio

Thursday, May 22, 2014

DoD names Tillotson assistant deputy chief management officer

The Pentagon this week named Dave Tillotson the assistant deputy chief management officer, a key role that's been vacant since the retirement of Dave Wennergren last August.

Tillotson officially takes the job next Tuesday, and will also serve as the department's acting deputy chief management officer, according to a memo from deputy defense secretary Bob Work, which was obtained by Federal News Radio.

Tillotson currently serves as the Air Force's deputy chief management officer and director for business transformation.

-Jared Serbu, FederalNewsRadio.com
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Wednesday, May 21, 2014

Col. Patrick Burden takes the Army's financial ERP into a new phase

As project manager, Col. Patrick Burden oversees the operations of one of the military’s largest enterprise resource planning (ERP) programs, the General Fund Enterprise Business System. Designed to help the Army track finances, assets and accounting, the $1.8 billion program represents a significant step forward for Defense Department ERPs, particularly as the Pentagon drives toward audit-readiness. 

In a recent interview with Federal Times Senior Writer Amber Corrin, Col. Burden outlined GFEBS’ top goals, its evolution over time and where the program is headed as part of broader DoD financial management reform.

-FederalTimes.com
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Tuesday, May 20, 2014

Whistleblower hotlines changing the way IGs respond to waste, fraud and abuse

As recently as a year ago, if a lower-priority report of waste, fraud or abuse arrived via the Defense Department's inspector general hotline, it could potentially sit in a processing queue for several months before receiving attention from investigators. But as of this March, the backlog is entirely gone, and even "priority three" cases are handled well within 30 days.

The department of Health and Human Services, which runs another of the government's busiest IG hotlines, has a similar story. A few years ago, the average processing time for incoming complaints was approximately six months. Today it's inside 30 days.

Federal officials who spoke to Federal News Radio as part of our special report, Trust Redefined: Reconnecting Government and Its Employees , said agencies, large and small, across government are improving their hotline programs, partially by embracing new technologies and partially through simple business process improvements — moving cases through the system more quickly and, in turn, more effectively meeting their core mission of allowing federal employees and members of the public to blow the whistle on fraud and threats to life and safety.

-Jared Serbu, FederalNewsRadio.com
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Wednesday, May 14, 2014

Air Force's progress raises DoD's confidence toward audit readiness

Air Force officials say the service is making up the most ground of any of the military services as part of the push to finally get the Defense Department to successfully close its financial books.

But government auditors say this entire Pentagon effort is at risk because of shortcomings in the services' technology systems.

Jamie Morin, the assistant secretary of the Air Force for financial management and comptroller, said he is more optimistic than ever before because the service put money and people behind the problem.

Morin said during a hearing Tuesday before the Senate Homeland Security and Governmental Affairs Committee that there is an increased likelihood that the Air Force will meet the 2017 deadline to have its financial statements fully auditable and the September deadline of being able to assert audit readiness for its schedule of budgetary activity.

This is a major change since last October when Morin told Senate Armed Services Committee members that the Air Force would struggle to meet the 2014 deadline, and 2017 wasn't going to be any easier.
But over the last six months, the Air Force has accomplished specific tasks one- by-one to meet the congressionally mandated deadlines.

Each of the services and DoD on the whole remain at different points in the process to achieve audit readiness. DoD is the only federal department that can't successfully account for its spending to meet third-party auditors requirements. The Marines Corps in fiscal 2012 received an unqualified opinion on its schedule of budgetary activity (SBA) — the first DoD service ever to receive that result.

Robert Hale, the out-going DoD comptroller, said he expects the Marines Corps to earn the same result for 2013.

While each of the services is at different points, the one common major challenge the Army, Navy, Air Force and the Office of the Secretary of Defense all face is updating and integrating their technology software, specifically the enterprise resources planning (ERP) systems, to meet the audit readiness requirements.

Take the Air Force as one example. It's still using a system from 1968.

Morin said the Defense Enterprise Accounting Management System (DEAMS), is under development to replace that 40-year-old system.

He said the service received a positive assessment from the Air Force Operational Test and Evaluation Center on DEAMS as currently deployed at more than six bases.

The Air Force plans to complete DEAMS deployment to all Air Mobility Command in the next couple of weeks and then more bases by Oct. 1. Morin said the Air Force also is on track to complete deployment Air Force-wide before the full financial statement audits begin.

The Army, on the other hand, is in better shape.

Robert Speer, the Army's acting assistant secretary for financial management and comptroller, said the general fund enterprise business system (GFEBs) is used by 53,000 service members and civilians at 200 locations worldwide.

Sen. Tom Coburn (R-Okla.), the ranking member of the committee, said in no uncertain terms if the ERPs don't work, this effort is in real trouble. Coburn has asked both the IG and GAO to continue looking at DoD's ERP efforts.

-Jason Miller, FederalNewsRadio.com
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Tuesday, April 29, 2014

Defense Dept. CIO Teri Takai Resigns

Teri Takai will be leaving her post as the Defense Department's chief information officer next month.
Takai submitted her resignation to Secretary of Defense Chuck Hagel, effective May 3, a DoD spokesperson confirmed Monday. A replacement hasn't yet been named.
Takai has served as the DoD's CIO since November 2010. While in that position, she was the principal advisor to Secretary Hagel for information management, information technology, and information assurance. She also oversaw non-intelligence space systems, critical satellite communications, navigation, and timing programs, as well as spectrum and telecommunications.

-Elena Malykhina, InformationWeek.com
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Monday, April 21, 2014

Fear not: The case for shared services in government

The federal government, much like any other organization, either provides for itself or buys a wide range of overhead services to support its operations. Overhead is not a derogatory term — it is just the term that is applied to services that are necessary to support the mission of an agency. Missions do not get accomplished without overhead services. While overhead services such as Human Resources, Financial Management or Contracting support follow laws and regulations that are remarkably consistent across agencies, most agencies have dedicated internal service providers. The result is a level of redundancy and cost that diverts scarce resources to overhead functions rather than agency missions. Faced with decreasing budgets and shocks such as sequestration, agencies can no longer afford to carry out business-as-usual with respect to common support services. Secretary of Defense Chuck Hagel challenged his department and its stakeholders to "challenge all past assumptions" and "put everything on the table."

Commentary by Jeff Neal
Founder of ChiefHRO.com
& Senior Vice President, ICF International


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Wednesday, March 12, 2014

ASMC PDI is Back!

PDI 2014 - Achieving New Heights | Managing Change
May 28-30, 2014 - Seattle, WA

PDI 2014, the premier training event hosted by the American Society of Military Comptrollers, will be held at the Washington State Convention Center in Seattle on May 28–30.

The National Professional Development Institute (PDI) is the premier training event of the American Society of Military Comptrollers. Resource managers in the Department of Defense and US Coast Guard converge for a three day event whose objective is to enhance the skills and abilities that personnel in the financial and resource management community must possess to meet the challenges of today's defense financial manager.

​In addition to the more than 21 CPE credits available to attendees, the PDI provides a forum for attendees to network with leadership, peers, vendors and clients. This event is also the showcase for those individuals and teams who have been recognized for excellence by ASMC.

​ASMC home


Friday, February 28, 2014

Watchdog: Government Still Has Big Financial Management Problems

The usefulness of the government’s consolidated financial statements, though improved in recent years, remains hampered by “material weaknesses,” primarily at the departments of Defense and Health and Human Services, that prevent auditors from rendering an audit opinion, the Government Accountability Office reported.
In its mandatory audit of the government’s fiscal 2013 and fiscal 2012 consolidated financial statements released Thursday, the congressional watchdog pointed to three issues affecting the government’s estimate of its assets, liabilities and costs that urgently need improvement. They include “serious financial management problems” at the Defense Department; a governmentwide inability to adequately account for and reconcile intragovernmental activity and balances between federal entities; and an “ineffective process” for preparing the consolidated financial statements.
GAO noted that the Pentagon accounts for about 33 percent of the government’s total assets and about 16 percent of fiscal 2013 spending, but the agency has been given a “disclaimer of opinion” on its consolidated financial statements. Similarly, uncertainties in the growth rate of Medicare and Social Security, which account for 68.8 percent of the value of future expenditures in excess of future revenue, are responsible for HHS’ disclaimer of opinion.
Further crimping the government’s broader ability to get a grip on finances is an inability to determine the full extent of improper payments and actions to prevent them; unresolved information security control deficiencies; and effective management of tax collection activities, GAO said.

-Charles S. Clark, GovExec.com
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Friday, October 11, 2013

Morin paints challenging way ahead for Air Force's audit readiness

The Air Force is facing an ever increasing likelihood that it will not get its financial house in order by the first congressionally-mandated 2014 deadline.

By the end of this fiscal year, all of the Defense Department must be able to develop an auditable statement of budgetary resources.

But Jamie Morin, the Air Force's outgoing comptroller and President Barack Obama's nominee to be DoD's second director of the Cost Assessment and Program Evaluation (CAPE) office, told lawmakers Thursday the service would struggle to meet the 2014 deadline.

Morin said meeting the financial auditability deadlines remains an important priority for DoD and there has been real progress made over the last few years.

The Air Force's struggles are not new. Morin told lawmakers in 2011 that the Air Force's systems were among the biggest roadblocks it faces.

Lawmakers also pressed Jo Ann Rooney, the President's nominee to be the undersecretary of the Navy, on the service's ability to meet the congressional financial mandates.

Rooney said she didn't have details about the Navy's status in part because of the fiscal uncertainty that hasn't let the service hire skilled workers and plan accordingly.

Sen. John McCain (R-Ariz.) told Rooney to go back and figure out where the Navy stands on meeting the legal deadlines. He said if she doesn't know the answer, she isn't qualified to hold the undersecretary job.

With the first deadline now less than a year away, lawmakers will pay close attention to DoD's progress, and want consequences should they miss the 2017 deadline to have an auditable financial statement.

Several members of the Armed Services Committee co-sponsor the Audit the Pentagon Act of 2013, introduced by Sens. Tom Coburn (R-Okla.) and Joe Manchin (D-W.Va.). The bill states that if DoD fails to obtain a clean audit opinion by 2018, the military services would be barred from spending money to fund new major acquisition programs beyond what's known as "milestone B" — in essence, the actual engineering and manufacturing of new systems.

-Jason Miller, FederalNewsRadio.com
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Wednesday, September 18, 2013

Bill puts contract spending on the hook if Pentagon misses audit deadline

New legislation introduced by Sens. Tom Coburn (R-Okla.) and Joe Manchin (D-W.Va.) aims to push the Pentagon toward being ready for a full financial audit by restricting spending on major weapons programs if DoD fails to get its books in order.

Coburn, who has introduced similar legislation in the past, said a full financial audit will help DoD better prioritize funding.

"This summer the Pentagon canceled important training and furloughed thousands of civilian personnel while it continued to waste billions on non-defense spending that had nothing to do with its core mission," he said in a statement. "A full and complete audit is the only way the department will be able to make better decisions about how it uses valuable taxpayer dollars."

Under the Audit the Pentagon Act of 2013, if DoD fails to obtain a clean audit opinion by 2018, the military services would be barred from spending money to fund new major acquisition programs beyond what's known as "milestone B" — in essence, the actual engineering and manufacturing of new systems.

In addition, the bill would prohibit DoD from purchasing off-the-shelf IT systems if they would take more than three years to install. The bill would require DoD to include terms in its contracts allowing for the termination of IT system contracts that aren't delivered on schedule.

Congress has mandated DoD pass a full financial audit by the end of fiscal 2017. Meanwhile, DoD leadership has set an interim deadline to provide auditable Statement of Budgetary Resources — a full accounting of money flowing in and out of the Pentagon — by the end of 2014.

-Jack Moore, FederalNewsRadio.com
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Friday, August 23, 2013

Department of Defense to Use Invoice Processing Platform (IPP) for Intra-governmental Buy/Sell Transactions

In 2012, Treasury launched a proof-of-concept pilot using IPP to help federal agencies manage intra-governmental buy/sell transactions. Several agencies participated in the pilot, including the Department of Defense (DoD), who found that IPP helped increase visibility into intra-governmental buy/sell transactions, as well as helped with difficult, labor-intensive reconciliation and elimination efforts.

On August 5, 2013, the Under Secretary of Defense (Comptroller) issued a memo that it is partnering with the U.S. Department of the Treasury to implement the Invoice Processing Platform as DoD’s core system to manage all inter- and intra-governmental transactions and documentation. According to the memo, this partnership will strengthen management and accountability for nearly $273 billion in intra-governmental business.

The phased implementation will initially include only DoD-to-DoD transactions. At a later date, transactions between DoD and its civilian trading partners will be included. Excluded from this effort are commercial transactions (which will continue to be managed using DoD’s Wide Area Workflow) and DoD's interfund transactions.

The buy/sell process between government agencies has been fraught with challenges. A 2013 GAO audit of the U.S. Government's Fiscal Years 2012 and 2011 Consolidated Financial Statements (report GAO-13-271R) found a $20.2 billion difference in intra-governmental buy/sell activity and balances. It also revealed that the reconciliation process for buy/sell transactions was difficult and labor intensive.

IPP supports more efficient intra-governmental buy/sell transactions between federal agencies by helping ensure consistent communication between trading partners and providing visibility into each stage of the transaction.

To view the DoD memorandum regarding the implementation of IPP for intra-governmental buy/sell reimbursable transactions, please visit:http://www.ipp.gov/downloads/DoD_Memo.pdf

For more information on the DoD IPP intra-governmental buy/sell implementation, contact the DoD Business Integration Office (BIO)

For more information on IPP’s intra-governmental capabilities, contact Michael Bolin at michael.bolin@fms.treas.gov.

For more information about the features and benefits of IPP’s intra-governmental module, visit: http://www.ipp.gov/about-ipp/intra-governmental.

- Federal Reserve Bank of Boston / Treasury FMS
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Monday, July 29, 2013

Senate poised to confirm first DoD IG in nearly two years

The Senate Armed Services Committee took the next step to fill four vacancies in the Defense Department, including one that has been vacant for almost two years.

The department has been without a Senate-confirmed inspector general since December 2011.

President Barack Obama nominated current Federal Deposit Insurance Corporation IG Jon Rymer for the job. Rymer made his case Thursday during his confirmation hearing before the committee. Rymer has been the FDIC IG since 2006. He recently retired from the Army Reserve with more than 30 years of service between his active and reserve duty. He is a graduate of the Army's Inspector General School. His experience in the private sector includes seven years in consulting and interval auditing at a major accounting firm and 15 years as a senior manager in the banking industry.

While very familiar with the Army's prevention programs, Rymer said he believed the role of the IG is to provide oversight for the effectiveness of the programs in place and an analysis of the money spent by each of the services.

-Lauren Larson, FederalNewsRadio.com
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Monday, June 24, 2013

Sequestration, budget cuts taking their toll on DoD financial managers

Unprecedented chaos in the federal budget, impending civilian furloughs and an increasing workload are all contributors to a sharp, sudden decline in the morale of the staff that manages and executes the Defense Department's budget, according to an annual workforce survey released Wednesday.

The study, prepared by the American Society of Military Comptrollers and Grant Thornton, found that out of more than 1,000 financial management professionals surveyed, senior government executives were most likely to report a decline in morale. Within that group, 86 percent of respondents said they enjoyed their jobs "a lot" in last year's survey. By this year, the figure had plummeted to 53 percent. Lower-level financial managers reported a similar, though smaller decline in morale: 20 percent reported high job satisfaction compared to 24 percent in 2012.

With respect to budget uncertainty, the survey reflects deep dissatisfaction with the inflexibility of the across-the-board budget cuts under sequestration, the fact that the government seems to be in a perpetual state of continuing resolutions rather than full-year appropriations, and the ongoing indecision in the political arena about whether sequestration is here to stay.

Among the most senior members of the financial management workforce, the survey also revealed deep pessimism about DoD's ability to meet its Congressional mandates to assemble its financial statements so that they can be scrutinized by independent auditors. The survey found 23 percent of senior executives admitted they have zero confidence that their respective organizations will be audit-ready by the 2014 deadline for DoD to undergo a partial audit. Only three percent said they were "highly confident" that their organization would be prepared.

-Jared Serbu, FederalNewsRadio.com

Tuesday, June 11, 2013

DoD using flawed approach to calculate $1.1B in improper payments

The Defense Department reported making just $1.1 billion in improper payments in fiscal 2011, a small fraction of the Pentagon's total outlays of more than $1 trillion.

But, in a new report, the Government Accountability Office said those estimates are neither reliable nor statistically valid because of "longstanding and pervasive" weaknesses in DoD financial-management practices as well as specific deficiencies in the department's procedures for estimating improper payments.

Lacking in DoD's current efforts to curb improper payments are basic quality-control measures, Asif Khan, GAO's director of financial management and assurance, told In Depth with Francis Rose(Federal News Radio's DoD Reporter Jared Serbu served as guest host)


-Jack Moore, FederalNewsRadio.com
READ MORE and LISTEN HERE...

Wednesday, April 10, 2013

Experts discuss DoD's challenges in reaching a clean audit

2013 represents 18 years on the High Risk List for the Defense Department. DoD has a 2017 deadline for a clean audit, but it's also required to make interim progress by 2014.
On this week's edition of Pentagon Solutions, Francis discusses whether the Pentagon will meet those deadlines and the challenges it has in meeting them.
Francis' guests today include:
  • Al Tucker, former deputy chief financial officer at the Department of Defense; former deputy assistant inspector general for audit in the Office of the Inspector General at the Department of Defense, and former executive director of the American Society of Military Comptrollers
  • Asif Khan, director of financial management and assurance at the Government Accountability Office

-FederalNewsRadio.com
READ MORE and LISTEN HERE...

Wednesday, March 06, 2013

As sequestration cuts loom, unimplemented IG recommendations could save billions

Over the past few years, unimplemented agency inspector general recommendations that could potentially save the government billions of dollars have piled up.

Now, with $85 billion in automatic budget cuts kicking in, lawmakers on the House Oversight and Government Reform Committee are telling agencies there's no excuse for them to further delay implementing the cost-saving measures and best practices identified by their IGs.

In 2009, there were 10,894 open IG recommendations, according to a report released by the oversight committee ahead of a hearing Tuesday. But by 2012, that number had grown to 16,906, representing a potential $67 billion in savings.

And if agencies won't act on those recommendations, Rep. Darrell Issa (R-Calif.), chairman of the oversight committee, said he will.

Issa's committee has sought to forge close ties with agency watchdogs. In January, a letter from both the House and Senate oversight committees called on the Obama administration to fill persistent vacancies in the IG ranks.

The IG community is also beset by a spate of longstanding vacancies including those at six large agencies: the departments of Defense, Homeland Security, Interior, Labor and the U.S. Agency for International Development.

According to the committee, there's a connection between vacancies and unimplemented recommendations. Among the agencies with most unfulfilled recommendations are those with long-term vacancies in their IG offices.

Long-term vacancies "weaken the office of the Inspector General," the report stated. "A permanent IG has the ability to set a long-term strategic plan for the office, including setting investigative and audit priorities. An acting official, on the other hand, is known by all OIG staff to be temporary."



-Jack Moore, FederalNewsRadio.com
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Monday, January 21, 2013

GAO Cannot Audit Federal Government, Cites Department Of Defense Problems


WASHINGTON -- The Government Accountability Office said Thursday that it could not complete an audit of the federal government, pointing to serious problems with the Department of Defense.
Along with the Pentagon, the GAO cited the Department of Homeland Security as having problems so significant that it was impossible for investigators to audit it. The DHS got a qualified audit for fiscal year 2012, and is seeking an unqualified audit for 2013.
The report released by the GAO on Friday indicates serious accounting problems at two of the largest government agencies: the Pentagon and the Department of Homeland Security. The Department of Defense has a net cost of $799.1 billion to the federal budget, while the Department of Homeland Security has a net cost of $48.7 billion.
"The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2012 consolidated financial statements of the federal government because of widespread material internal control weaknesses, significant uncertainties, and other limitations," the agency said. "As was the case in 2011, the main obstacles to a GAO opinion on the accrual-based consolidated financial statements were: Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable. The federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies. The federal government’s ineffective process for preparing the consolidated financial statements."
In the report, the GAO also said that the federal government could not reconcile transfers between federal agencies and had an ineffective process for preparing financial statements.
The report lists the Department of Defense as having the third-largest cost to the federal government, at 21 percent. That value is slightly behind the costs of the Department of Health and Human Services and the Social Security Administration, which both have high costs because they run the large social insurance programs Medicare and Social Security.


- Luke Johnson, Ryan Grim, HuffingtonPost.com
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Tuesday, January 15, 2013

Thankless DOD Inspector General routinely ignored

What do you call someone with all of the authority to hold public officials accountable, but none of the power required to enforce anything? An inspector general.

At the office of the Department of Defense Inspector General (DOD IG), a roster of 63 unfinished cases reveals how Pentagon offices have ignored or not completed, sometimes for several years, IG recommendations to take corrective “actions” for various degrees of Pentagon mismanagement, poor accounting and other legal concerns.

According to the DOD IG’s latest semiannual report to Congress, at the end of fiscal 2012 the types of “actions pending” on IG audits ranged from updating Defense Department security clearance guidance, some of which dated as far back as 1987, to accurately tabulating overtime hours at the National Geospatial Intelligence Agency, cancelling poorly-planned wind turbine projects in Alaska, and determining the legality of using military surveillance assets to fight wildfires in the United States.

The list reveals how the inspector general is trying to make the Pentagon a somewhat more efficient $600 billion-a-year behemoth. It also is a microscope into bureaucratic minutiae preventing it from happening. At DOD, the IG does not publish full reports until the corrective actions are completed, so the public has no way of knowing exactly what actions have been taken as long as the case remains “pending.”

The topics of pending IG reports range widely from organizational management to combat. After one July 2011 audit of Marine Corps spending in 2008 on the global war on terror, the inspector general called for the Marines to update their “Financial Management Standard Operating Procedure Manual,” which was by then four years old. One year later, the Department of the Navy, which includes the Marine Corps, said it needed more time.  

-Kevin Baron, E-Ring, ForeignPolicy.com
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Wednesday, December 12, 2012

GAO: the Army payroll system is a mess

If you’ve been on Army active duty during the past couple of years, you might want to take another look at your pay stubs. The Government Accountability Office today released a report (GAO-13-28) that detailed major problems with the Army’s $47 billion annual military payroll accounts.

The agency found that the Army “is unable to track and collect data on pay errors for active duty soldiers that occur due to over payments, under payments, data entry errors and fraud,” according to a bipartisan statement issued jointly by Sens. Tom Carper, D-Del., Tom Coburn, R-Okla., Scott Brown, R-Mass., Claire McCaskill, D-Mo., and Reps. Darrell Issa, R-Calif., Edolphus Towns, D-N.Y., and Todd Platts, R-Pa.

GAO found a lot of errors, and said many “went undetected for lengthy periods of time, including some that were not detected for up to 2 years or until the soldier left the Army.”

-Bill McMichael, Delaware Online
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