Streamlining Financial Reporting- FIRST AGA-PDC, Nashville June 26, 2006 David Burgman
Financial Statements <ul><li>5 CFO Act Agency disclaimers last year. </li></ul><ul><li>Agency re-statements  </li></ul><ul...
Financial Report of the United States Government (FR) <ul><li>Serious financial management problems at the Department of D...
Central Accounting and Reporting: Successes <ul><li>Monthly reporting that classifies disbursements and collections within...
Central Accounting and Reporting: Not So Successful <ul><li>Financial Statements. </li></ul><ul><li>Reporting Inconsistenc...
What makes FACTS II (Budgetary Reporting) Successful? <ul><li>Collects USSGL-based trial balances. </li></ul><ul><li>Fulfi...
FY2005 Priorities CFO Sub-Council - Financial Statement Acceleration Committee   (Now - Central Reporting Transformation T...
<ul><li>Three Subgroups </li></ul><ul><ul><li>Buy/Sell </li></ul></ul><ul><ul><li>Transfers </li></ul></ul><ul><ul><li>Fid...
<ul><li>Agencies are required to prepare and submit financial information to central agencies : </li></ul><ul><ul><li>In a...
<ul><li>Specific consolidation or eliminating duplicative processes </li></ul><ul><ul><li>Streamline Budgetary reporting b...
We Still Have a Problem! <ul><li>Lack of Standardization </li></ul><ul><li>Stove Pipe reporting systems </li></ul><ul><li>...
What Can FMS Do? <ul><li>Long Term Approach </li></ul><ul><li>Current Efforts Underway </li></ul>
Financial Information & Reporting Standardization (FIRST)
What is FIRST? USSGL Database -  SID Government Financial Reporting System -  GFRS USSGL based Reporting - ATB
SID <ul><li>USSGL Accounts and Definitions </li></ul><ul><li>Account Number: 4119 </li></ul><ul><li>Account Title: Other A...
SID A104  To record the enactment of appropriations. A125   To record a reduction in authority for advance funding made av...
GFRS  Re-class Module
GFRS  Re-class Module
FIRST- ATB <ul><li>Streamlines central budgetary and financial reporting </li></ul><ul><li>Will replace FACTS I and II, IF...
Must Have Integration! USSGL Database -  SID Government Financial Reporting System -  GFRS USSGL based Reporting - ATB
The Long Haul – Need the Right Foundation
USSGL - The Key to Consistency UNITED STATES  STANDARD  GENERAL LEDGER (USSGL) Budgetary Accounting Financial Accounting I...
Current Central Accounting and Reporting Systems Agency Reporting  Stovepipe Systems Financial Reporting Systems Budgetary...
How will FIRST Work? <ul><li>One integrated Adjusted Trial Balance (ATB) that includes both Proprietary and Budgetary for ...
Level of Detail <ul><li>FMS will collect quarterly trial balances, beginning and ending, budgetary and proprietary. </li><...
One Integrated Trial Balance <ul><li>One trial balance for each unique occurrence. </li></ul><ul><ul><li>Agency Identifier...
Edits, Validations and Feedback <ul><li>FMS collects agency data through many systems, and posts some transactions, such a...
FIRST Agency Accounting Systems FIRST GFRS USSGL based Reporting Financial Report of the U. S. Government Agency Financial...
Expected Benefits <ul><li>Streamlined reporting for the agencies </li></ul><ul><li>Consistent reporting to FMS regardless ...
… Expected Results continued <ul><li>Full benefits of USSGL.   </li></ul><ul><li>Improved quality of financial information...
Development Approach <ul><ul><li>Enhance Government off-the shelf (GOTS) </li></ul></ul><ul><ul><li>Collects detailed USSG...
Phased Approach of FIRST <ul><li>Phase 1:   Put the USSGL in a database (In progress) </li></ul><ul><li>Phase 2:   Continu...
Current Status … Next Steps <ul><li>Timeline </li></ul><ul><li>Agency Involvement </li></ul><ul><li>List of areas to be re...
So What About ME?  The Good, the Bad and the Ugly <ul><li>Another Treasury system…….. </li></ul><ul><li>What do I need to ...
The Future…  Could there be more? <ul><li>By the year 2011, FACTS I, FACTS II, IFCS, IRAS and part of TROR will be replace...
Financial Reporting - Current Processes STAR/ GWA STAR/ GWA OMB Agency Financial Statements     OMB Check-list Agency ...
Financial Reporting - Possible Future Process STAR/ GWA Feedback File Submission Agency  Financial  Statements/Data FIRST/...
Questions???
For More Information on FIRST <ul><li>David Burgman, Project Director </li></ul><ul><li>202-874-8538 </li></ul><ul><li>[em...
Questions???
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  • SPEAK TO SGL, ATTRIB, XWALKS, RULES, EDIT, TIES AND VALIDATIONS, calrendar
  • Burgman

    1. 1. Streamlining Financial Reporting- FIRST AGA-PDC, Nashville June 26, 2006 David Burgman
    2. 2. Financial Statements <ul><li>5 CFO Act Agency disclaimers last year. </li></ul><ul><li>Agency re-statements </li></ul><ul><li>10 straight disclaimers on the FR. </li></ul><ul><li>A general lack of confidence in federal financial statements. </li></ul>
    3. 3. Financial Report of the United States Government (FR) <ul><li>Serious financial management problems at the Department of Defense. </li></ul><ul><li>The federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies </li></ul><ul><li>The federal government’s ineffective process for preparing the consolidated financial statements </li></ul>
    4. 4. Central Accounting and Reporting: Successes <ul><li>Monthly reporting that classifies disbursements and collections within 3 work days: great improvements in timeliness and accuracy </li></ul><ul><li>FACTS II: tremendous improvements in consistency of budget execution reporting. </li></ul><ul><li>What makes them successful? </li></ul>
    5. 5. Central Accounting and Reporting: Not So Successful <ul><li>Financial Statements. </li></ul><ul><li>Reporting Inconsistencies. </li></ul><ul><li>Elimination differences, FBWT, Non-expenditure transfers, USSGL. </li></ul><ul><li>16 years since the CFO Act became law. </li></ul>
    6. 6. What makes FACTS II (Budgetary Reporting) Successful? <ul><li>Collects USSGL-based trial balances. </li></ul><ul><li>Fulfills several needs of both Treasury and OMB. </li></ul><ul><li>Uses a single data stream for multiple purposes. </li></ul><ul><li>Has tight edits to ensure consistent reporting. </li></ul><ul><li>Provides a feedback through edits and validations </li></ul>
    7. 7. FY2005 Priorities CFO Sub-Council - Financial Statement Acceleration Committee (Now - Central Reporting Transformation Team ) <ul><li>Intragovernmental Reconciliations </li></ul><ul><li>Consolidate and Streamline Agency Reporting to Treasury and OMB </li></ul>
    8. 8. <ul><li>Three Subgroups </li></ul><ul><ul><li>Buy/Sell </li></ul></ul><ul><ul><li>Transfers </li></ul></ul><ul><ul><li>Fiduciary (Investments) </li></ul></ul><ul><li>Revised Business Rules for Intragovernmental Transactions </li></ul>Intragovernmental Reconciliations Subcommittee
    9. 9. <ul><li>Agencies are required to prepare and submit financial information to central agencies : </li></ul><ul><ul><li>In a variety of formats and groupings, </li></ul></ul><ul><ul><li>At multiple dates throughout the year, </li></ul></ul><ul><ul><li>With varying levels of assurance </li></ul></ul><ul><ul><li>Using many stove-piped systems, each requiring separate passwords and pins </li></ul></ul><ul><li>The “corporate financial reporting process” is complex, labor-intensive and time-consuming and not yielding the desired results </li></ul><ul><li>Pre-existing requirements are seldom removed or consolidated </li></ul><ul><li>New or modified requirements are added on an annual basis without sufficient notification </li></ul>Financial Reporting Streamlining Subcommittee – Current Issues
    10. 10. <ul><li>Specific consolidation or eliminating duplicative processes </li></ul><ul><ul><li>Streamline Budgetary reporting by using GWA data to populate FACTS II earlier </li></ul></ul><ul><ul><li>Consolidate and enhance financial reporting systems to better support intragovermental reconciliations </li></ul></ul><ul><ul><li>Either use FACTS I to populate the closing package or eliminate duplicative reporting </li></ul></ul><ul><li>Recommendations that can be implemented immediately: </li></ul><ul><ul><li>Develop consolidated governmentwide financial reporting calendar </li></ul></ul><ul><ul><li>Consolidate all central agency financial reporting requirements in one place </li></ul></ul><ul><ul><li>Consolidate related certifications and assertions over financial information submitted to central agencies </li></ul></ul>Specific Recommendations continued…
    11. 11. We Still Have a Problem! <ul><li>Lack of Standardization </li></ul><ul><li>Stove Pipe reporting systems </li></ul><ul><li>Lack of integration </li></ul><ul><li>Timing Differences </li></ul><ul><li>Variety of Formats and Groupings </li></ul><ul><li>Inconsistent Data From the Agencies </li></ul><ul><li>The “corporate financial reporting process” is complex, labor-intensive and time-consuming and not yielding the desired results </li></ul>Bottom-line…………..
    12. 12. What Can FMS Do? <ul><li>Long Term Approach </li></ul><ul><li>Current Efforts Underway </li></ul>
    13. 13. Financial Information & Reporting Standardization (FIRST)
    14. 14. What is FIRST? USSGL Database - SID Government Financial Reporting System - GFRS USSGL based Reporting - ATB
    15. 15. SID <ul><li>USSGL Accounts and Definitions </li></ul><ul><li>Account Number: 4119 </li></ul><ul><li>Account Title: Other Appropriations Realized </li></ul><ul><li>Normal Balance: Debit </li></ul><ul><li>Definition: All other appropriations not classified above. Additionally, this account may include the annualized </li></ul><ul><li>amount of appropriations for continuing resolutions. </li></ul><ul><li>Related Links: </li></ul><ul><li>Transactions </li></ul><ul><li>Attributes </li></ul><ul><li>Crosswalks </li></ul>
    16. 16. SID A104 To record the enactment of appropriations. A125 To record a reduction in authority for advance funding made available in the previous yea... A155 To record an appropriation to liquidate obligations initially incurred against the author... A196 To record the annualized level of an appropriation provided under a continuing resolution. A199 To record an adjustment to the annualized level of an appropriation when the enacted leve ... F108 To record the reduction of permanent indefinite resources when a warrant is received. F302 To record the consolidation of actual net-funded resources and reductions for withdrawn f... Transaction results for: Account Number 4119 Total Results Found: 7
    17. 17. GFRS Re-class Module
    18. 18. GFRS Re-class Module
    19. 19. FIRST- ATB <ul><li>Streamlines central budgetary and financial reporting </li></ul><ul><li>Will replace FACTS I and II, IFCS, IRAS, and part of TROR. </li></ul><ul><li>Will provide a mechanism to implement the tie-points on a government-wide scale. </li></ul>
    20. 20. Must Have Integration! USSGL Database - SID Government Financial Reporting System - GFRS USSGL based Reporting - ATB
    21. 21. The Long Haul – Need the Right Foundation
    22. 22. USSGL - The Key to Consistency UNITED STATES STANDARD GENERAL LEDGER (USSGL) Budgetary Accounting Financial Accounting Intragovernmental Accounting Cash Accounting Agency Accounting Central Accounting
    23. 23. Current Central Accounting and Reporting Systems Agency Reporting Stovepipe Systems Financial Reporting Systems Budgetary Reporting System
    24. 24. How will FIRST Work? <ul><li>One integrated Adjusted Trial Balance (ATB) that includes both Proprietary and Budgetary for each and every Treasury Account Symbol (TAS). </li></ul>
    25. 25. Level of Detail <ul><li>FMS will collect quarterly trial balances, beginning and ending, budgetary and proprietary. </li></ul><ul><li>Treasury Account Symbol level. </li></ul><ul><li>This is the level at which receipts, disbursements, warrants, NETs and other transactions are posted in the central accounting system. </li></ul>
    26. 26. One Integrated Trial Balance <ul><li>One trial balance for each unique occurrence. </li></ul><ul><ul><li>Agency Identifier </li></ul></ul><ul><ul><li>Allocation Transfer Agency Identifier </li></ul></ul><ul><ul><li>Beginning Period of Availability </li></ul></ul><ul><ul><li>Ending Period of Availability </li></ul></ul><ul><ul><li>Availability Indicator </li></ul></ul><ul><ul><li>Main Account Code </li></ul></ul>
    27. 27. Edits, Validations and Feedback <ul><li>FMS collects agency data through many systems, and posts some transactions, such as warrants and non-expenditure transfers, directly. </li></ul><ul><li>All this data resides in the central accounting system. </li></ul><ul><li>Wherever possible, FMS intends to use this authoritative data to edit trial balances. </li></ul>
    28. 28. FIRST Agency Accounting Systems FIRST GFRS USSGL based Reporting Financial Report of the U. S. Government Agency Financial Statements USSGL database Feedback loop STAR/ GWA F inancial I nformation and R eporting St andardization
    29. 29. Expected Benefits <ul><li>Streamlined reporting for the agencies </li></ul><ul><li>Consistent reporting to FMS regardless of reporting mechanism. </li></ul><ul><li>Substantial reduction in intra-governmental elimination differences </li></ul><ul><li>Dramatically improved Financial Report of the U. S. Government. </li></ul><ul><li>Ease of use of the USSGL for agencies. </li></ul>
    30. 30. … Expected Results continued <ul><li>Full benefits of USSGL. </li></ul><ul><li>Improved quality of financial information. </li></ul><ul><li>Logical, long range approach that attacks core problems. </li></ul><ul><li>Reduction in FMS and agency resources required for maintenance and reporting functions. </li></ul>
    31. 31. Development Approach <ul><ul><li>Enhance Government off-the shelf (GOTS) </li></ul></ul><ul><ul><li>Collects detailed USSGL-based data each month from all Treasury bureaus at fund symbol level. </li></ul></ul><ul><ul><li>Contains many consistency checks. </li></ul></ul><ul><ul><li>Used to produce their Agency Financial Statements </li></ul></ul><ul><ul><li>Used to create agency submissions for FI, FII, IRAS and GFRS reporting. </li></ul></ul><ul><ul><li>Oracle database </li></ul></ul>
    32. 32. Phased Approach of FIRST <ul><li>Phase 1: Put the USSGL in a database (In progress) </li></ul><ul><li>Phase 2: Continue to enhance GFRS. (In progress). </li></ul><ul><li>Phase 3: ATB Development </li></ul>
    33. 33. Current Status … Next Steps <ul><li>Timeline </li></ul><ul><li>Agency Involvement </li></ul><ul><li>List of areas to be reviewed </li></ul><ul><li>Interim Efforts (Use of Central Accounting Data) </li></ul>
    34. 34. So What About ME? The Good, the Bad and the Ugly <ul><li>Another Treasury system…….. </li></ul><ul><li>What do I need to do and when? </li></ul><ul><li>How is this going to help the agencies? </li></ul><ul><li>Do I really need to provide just one ATB? </li></ul><ul><li>Does it have to adhere to the USSGL? </li></ul>
    35. 35. The Future… Could there be more? <ul><li>By the year 2011, FACTS I, FACTS II, IFCS, IRAS and part of TROR will be replace by FIRST. </li></ul><ul><li>Quarterly USSGL trial balances with budgetary and proprietary beginning and ending data for every TAS will be reported to FMS. </li></ul><ul><li>Agency trial balance data will subject to a variety of of SGL edits and validations, including checks for consistency with the central accounting system. </li></ul><ul><li>Trial balance data will be compared to GFRS data for consistency. </li></ul><ul><li>What about Audited Financial Statements and the Closing Package? </li></ul>
    36. 36. Financial Reporting - Current Processes STAR/ GWA STAR/ GWA OMB Agency Financial Statements     OMB Check-list Agency Financial Statements     GFRS Check-list GFRS
    37. 37. Financial Reporting - Possible Future Process STAR/ GWA Feedback File Submission Agency Financial Statements/Data FIRST/GFRS Standard Format OMB
    38. 38. Questions???
    39. 39. For More Information on FIRST <ul><li>David Burgman, Project Director </li></ul><ul><li>202-874-8538 </li></ul><ul><li>[email_address] </li></ul><ul><li>Jeff Hoge, Director </li></ul><ul><li>202-874-6179 </li></ul><ul><li>[email_address] </li></ul>
    40. 40. Questions???

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