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Building a Foundation With Standardization

Dianne Copeland, Director, FSIO

Federal Financial Management Conference

March 11, 2008

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FMLoB Vision/Framework

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Common Governmentwide Accounting Classification (CGAC) Structure

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Common Government-wide Accounting Classification (CGAC)

• Accommodate both standard government-wide accounting-related functions and critical agency-mission-specific accounting functions (data); and

• Include standardization of such items as Treasury Account Symbol/ Treasury Account Funds Symbol; Internal fund code; Budget fiscal year; Accounting quarter and month; Program; Organization; Project; Activity; Cost Center; Object Class; and Budget function (and sub function code)

Goal: Develop a common accounting code structure, including an applicable set of definitions, that all federal agencies’ new financial management systems must adhere to. The common accounting code structure will:

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CGAC Benefits

Create common language and definitions for accounting classification

Provide greater specification in future system requirements to ensure all elements needed are being provided by financial systems

Reduce need to maintain cross-walks and perform reconciliations

Facilitate preparation and transmission of financial reports to OMB and Treasury

Facilitate government-wide exchange, comparison, and aggregation of similar data

Reduce costs and risks of implementing a new Federal financial management system or migration to a shared service provider through improved portability of an agency’s accounting classification structure

Achieve greater consistency and accuracy in government-wide reporting.

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Standardization - CGAC

• Common Government-wide Accounting Classification (CGAC) Structure

– Final structure published in August 2007

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CGAC: Universe of Elements

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CGAC Data Standardization

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Level of Standardization

• Data Definition• Field Size• Field Format• Values

– Identified field owner• Standard value established

– Agency specific• Agency defined

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Business Process Standardization

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Business Process Standardization

• Sequenced activities for core business processes• Data objects participating in a business activity• Relationships among the objects as they exist in the actual business

activities• Data elements and definitions used by these objects • Business rules governing these objects

Goal: Develop a standard set of business practices for core financial management functions (funds control, payables management, receivables management, reporting, reimbursables) to be adopted by all federal agencies. The document/model will include:

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Business Process Standardization Benefits

Lower risk of agency migration to a Shared Service Providers (SSP)

Assurance that SSP’s process requirements are addressed/incorporated into the process standards

More efficient standardization of interfaces to other systems and Treasury

Potential savings and efficiencies on human capital costs

Improved integrity of financial management at both the individual agency and Government-wide levels and ensures compliance with financial management laws and regulations.

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Standardization – Business Processes

• Business Processes (BP)– Funds Control

• Currently in final OMB review– Payables Management

• Currently in final OMB review– Receivables Management

• Exposure Draft to be published in April 2008– Reimbursables

• Exposure draft developed FY 2008– Reporting

• Developed FY 2008

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Interface Standards

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Interface Standards

• Coordinating with major processes– E-Travel– E-Payroll– Acquisition– Grants

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Document Library and Points of Contact

• FSIO and FMLoB documents on the web site

– www.fsio.gov

• FSIO main number

– 202.219.0526

• Dianne E. Copeland• FSIO Director

General Services AdministrationOffice: 202-219-0550    Fax: 202 219-0549

• E-Mail: dianne.copeland@gsa.gov