Standardize, Consolidate, and
Optimize Financial Management
Presented by David M. Fisher
Director, Business Transformation Agency
Department of Defense
March, 2009
BTA Established to Advance
Defense Business Transformation
On October 7, 2005 the Deputy Secretary of
Defense signed a memorandum establishing
the Defense Business Transformation Agency
(BTA).
The Agency is specifically responsible as a
corporate- level service organization for the
DoD, accountable for successful definition and
execution of DoD-wide business improvement
initiatives and system investments.
The BTA Mission is to guide
transformation of business operations
throughout the Department of Defense
and to deliver Enterprise-level
capabilities that align to
Warfighter needs.
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BTA’s Six S’s of Success
Strategic Alignment of DoD’s approach to optimizing its business mission area by ensuring
a common approach and set of principles that will be consistently governed and evaluated.
Standardize essential
operational data, processes, and
business rules in order to
significantly improve the ability
to process and share
information throughout the
enterprise
Simplify overly complex
business rules that unnecessarily
complicate operations and lead to
expensive and risk-filled solutions
Stovepipe operations
must be eliminated from
solution design and
deployment, so that the
historically narrow-focused
approach to business gives
way to an approach that
seeks to optimize end-to-end
processes
Streamline core end-toend business processes to
eliminate non-value added
activities
Systems and Services
must be deployed in a timely and
cost effective manner with a
conscious focus on sound
requirements management and
comprehensive risk mitigation
Standard Financial Information
Structure (SFIS)
Definition: DoD’s common business language that facilitates the consistent
collection and reporting of financial information.
Benefits:
 Standardizes financial reporting data across DoD.
 Enables decision-makers to efficiently compare similar programs and
activities across DoD.
 Provides decision-makers the level of detail they require for
information retrieval and auditability.
 Improves the efficiency of maintaining business systems, thereby
reducing costly maintenance and translation of non-standard data.
Accomplishments:
 Established and maintained SFIS Governance Board that has
successfully defined 71 data elements that are engrained in the BEA
and IRB process.
 Developed SFIS computer-based training application that supports
standard implementation and configuration.
 Integrated SFIS requirements into the OMB Federal Common
Government-wide Accounting Classification (CGAC) requirement.
Next Steps:
 Focus on standard implementation and configuration in target
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business systems.
USSGL SFIS Transaction Library
Definition: The U.S. Standard General Ledger (USSGL) SFIS Transaction Library
maintains an DoD enterprise-wide standard set of detailed general ledger
transaction requirements that incorporate budgetary, proprietary, and
memorandum accounts that link to specific business events.
Benefits:
 Standardizes account transaction postings across DoD.
 Removes interpretation from Treasury’s USSGL high-level guidance.
 Decomposes 559 high-level business events and generalized posting
guidance from the Treasury Financial Manual into 4,363 detailed business
events and specific debit/credit pairings.
 Compliant with Treasury, FASAB, OMB and DoD Financial Management
Guidance.
 Along with SFIS and the BEA, provides an enterprise-wide standard for
updating DoD existing and deploying new business systems.
Accomplishments:
 Included SFIS element requirements in the USSGL SFIS Library to provide
standard implementation guidance.
 Updated Library to include all of Treasury’s FY 08 USSGL updates.
 Performed Lean Six Sigma analysis to streamline USSGL Library update
process.
Next Steps:
 Work with Treasury to incorporate these detailed USSGL requirements at 5the
Federal level.
DoD Defense Agencies
Current Systems Environment
DTRA
USUHS
DeCA
(Non-Resales)
CAFRMS
CUFS
DBMS
DAU
DSS
MDA
eBiz
FAMIS
DCMA
AFIS
SOMARDS
DISA
(CS & TSEAS)
DTIC
DCAA
GAFS
DFAS
STANFINS
DeCA
(Resales)
DoDEA
DTSA
BTA
DoDIG
JCS
DARPA DISA (HQ) DLSA
WAAS
OEA
PFPA
DPMO
TMA
DSCA
WHS
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Target Environment:
Organizations and Scope
DAU
DARPA
DeCA
DCAA
Budget-toReport
BTA
AFIS
DTIC
Acquire-toRetire
Order-toFulfill
DCMA
DFAS
Procure-to-Pay
DISA
Cost
Accounting
DAI
Time
& Labor
Management Reporting
Budget
Formulation
DTSA
DTRA
DPMO
DLSA
DSCA
DSS
WHS
USUHS
DODEA
DODIG
JCS
MDA
OEA
TMA
PFPA
7
Defense Agencies Initiative (DAI)
Program Description
• Oracle implementation for Defense
Agencies and Field Activities
• Pilot site for initial Go-Live: BTA
• $400M business annually
• ~350 users at 4 locations
• Contract award to pilot Go-Live in 12
months (October 2008) for ~ $20M
• Cost included foundation for the DAI
Global Model for all other Agencies
• Process-focused teams and scope:
Procure-to-Pay; Acquire-to-Retire;
Budget-to-Report; Time & Labor; Cost
Accounting; Order-to-Fulfill
• Approved pilot for all-ERP based
Procure-to-Pay including contracts,
sourcing, and electronic submission of
vendor receipts/invoices
• Next round of deployments underway
Success Factors
• Program built around horizontal end-to-end
processes vice individual functions
• Adopt the COTS for scope and approach
(only required 7 interfaces for pilot site)
• Focus: minimally sufficient solution; can add
more complexity later if necessary
• Strong, visible, consistent leadership
• PM had direct access to Agency Director, who
played a hands-on role both during the design
and deployment phases
• Priority of the program was clear to all agency
employees via consistent top-down
communications
• Strong participation from several Agencies
and DFAS for functional expertise, testing,
training, data management, and operations
• Government ERP experts from BTA
assumed leadership for most implementation
responsibilities with prime contractor
supporting them
Biggest Challenges
• Quality of legacy data for conversion
• Workforce change management
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It’s All About
Change
9
Referential Integrity in an
Exclusively ERP World
PURCHASE
Purchase
Requisition
Contract /
Sourcing
TO
PAY
Purchase
Order
PROCESS
Goods
Receipt
Invoice
Receipt
Expenditure
10
Cross Reference Table
Disbursing
Outside the
ERP
PR/PR Line Number/PR Line Funding ID
PO/PO Line Number/PO Line Funding ID
PIIN/CLIN/SLIN
Disbursing
System
Unblock
Invoice
PIIN-CLIN-SLIN
Receipt
Validation From X-Ref
Treasury
Disbursement
Disbursement
With Contract PIIN-CLIN-SLIN
Info Only
ERP Purchase to Pay Process
PR
PR Line
Number
PR Line
Funding ID
Purchase
Requisition
Purchase
Order
Goods
Receipt
Invoice
Receipt
Expenditure
Blocked
Invoice
Use x-Ref
MATCH
From X-Ref
Contracting
Outside the
ERP
PR
PR Line
Number
PR Line
Funding ID
Confirmation
APVM
(Prevalidation)
PIIN
CLIN
SLIN
Receipt
Report
PIIN
CLIN
SLIN
Contract Writing
System
Manual
MOCAS System
Contract Admin
Contract Info
PIIN-CLIN-SLIN
EDA
Ready
To
Pay
File
Invoice
PIIN-CLIN-SLIN
Obligation
Validation
Goods Receipt
and Invoice
Receipt Outside
the ERP
Receivin
g
Activity
Receipt
Validation
By PIIN
CLIN SLIN
Contract Info
PIIN-CLIN-SLIN
Material
PIIN-CLIN-SLIN
Contract Info
PIIN-CLIN-SLIN
The Vendor
PPVM
(Prevalidation)
Invoice
PIIN-CLIN-SLIN
MOCAS System
Entitlement
Invoice
PIIN-CLIN-SLIN
WAWF
Invoice
PIIN-CLIN-SLIN
WAWF 11