Cross Agency Priority Goal Quarterly Progress Update

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1 Crss Agency Pririty Gal Quarterly Prgress Update Shared Services Gal Leaders: Krysta Harden, Deputy Secretary, US Department f Agriculture; Dave Mader, Cntrller, Office f Federal Financial Management, Office f Management and Budget FY2015 Quarter 2 1

2 Overview Gal Statement Urgency Strategically expand high-quality, high-value shared services t imprve perfrmance and efficiency thrughut gvernment. The current envirnment f increased limitatins f budget and human resurces (HR), cmbined with the need t fcus n missin-fcused wrk, presents an immediate pprtunity fr leadership t direct federal agencies t mve nn-missin wrk t shared services. Establishing this clear cmmitment t shared services wuld allw the gvernment t benefit frm ecnmies f scale, leverage prven slutins, reduce duplicative investments, repurpse emplyees t missin-fcused wrk, and mitigate risk that faces the current perating envirnment. Shared Services fr administrative functins has lng been cmmn in the private sectr and in ther gvernments but has struggled t get mmentum in the U.S. Federal Gvernment. T date, mst users f shared services have been small agencies and cmmissins. Crss-servicing acrss Cabinet-level departments has nt taken place. This reduces the ecnmies f scale fr shared service prviders and cntinues a disjinted and redundant apprach t federal accunting, HR, acquisitins, etc. The passage f the Data Act in FY 2014, with a narrw three year implementatin windw and specifying the creatin and adptin f accunting standards, will be a difficult task. Agencies participating in shared service arrangements fr financial, prcurement, HR, payrll r perfrmance reprting systems will be able adpt the changes mre rapidly and at reduced csts. The bill requires bth Inspectr General (IG) and Gvernment Accuntability Office (GAO) review and audit f the adptin f the standards shrtly after their issuance. If thse standards are adpted first by the shared service prviders, custmers will benefit frm that early adptin bth ecnmically and lgistically. Actins (Shrt Term) The Office f Management and Budget (OMB) will study pssibilities fr rganizatinal alignment fr the management f administrative shared services. OMB will explre pprtunities t expand shared first beynd financial management int ther administrative functins such as HR, Acquisitin, etc. It will cntinue t leverage benchmarking results t supprt the business case fr shared services. OMB will engage large departments t explre shared services pprtunities internal t rganizatins. The Department f the Treasury (Treasury) Office f Financial Innvatin and Transfrmatin (FIT) will identify pprtunities fr transparency int financial management shared service prvider perfrmance and pricing. OMB will fster the adptin f the new Data Act accunting standards in all shared services administrative systems including financial, prcurement, HR, payrll and perfrmance reprting systems. 2

3 Prgress Update Accmplishments 2015 Cmpleted: Actins t Achieve Impact Q1: Issued guidance n the prcess fr migrating a large agency t a shared slutin, incrprating best practices and lessns learned and incrprating ver 180 cmments frm agencies and industry. This guidance is repeatable and can be leveraged by varius lines f business t help agencies chse their prvider, underg gap analysis, and implement shared services using standard methds and practices. Q1: Published versin 1 f the Financial Management Services Catalg, incrprating ver 200 cmments frm agencies and industry. This catalg identifies and defines the mandatry financial management shared services that Federal Shared Service Prviders (FSSP) must ffer; defines the cmmn utputs generated frm these services; and will be used t supprt the federal gvernment s mve t imprve transparency and standards acrss financial management shared services. Q2: Released versin 2 f the Financial Management Services Catalg, including prices and service level agreement metrics t current custmer agencies. Q2: Issued a cmmn custmer satisfactin survey acrss the current cmmunity f FSSP custmers fr cmparability and perfrmance measurement in crdinatin with Phase 2 f the CAP Gal: Benchmarking. Q2: Kicked ff administrative shared services rganizatinal study. The study is underway with recmmendatins t be presented in Q Cmpleted: Designated fur financial management Shared Service Prviders (Treasury ARC, Transprtatin ESC, Interir IBC, Agriculture NFC) Slicited private sectr input n ways t expand capabilities f shared service prviders thrugh tw Requests fr Infrmatin (RFIs) and an Industry Day Frmalized and dcumented federal marketplace gvernance and O&M gvernance by Treasury and OMB Entered three new agencies int the Needs Identificatin phase f the Federal Agency Migratin Evaluatin (FAME) prcess Kicked ff the Entrepreneurs-in-Residence Prgram prvide industry expertise t FSSPs fr pprtunities t scale rganizatins t address multiple large custmers 3

4 2015 Milestnes 2015 Key Milestnes Milestne Due Date Status Issue guidance n must-haves and lessns learned t frmalize the prcess f mving t a shared slutin Issue a cmmn custmer satisfactin survey acrss the current cmmunity f FSSP custmers fr cmparability and perfrmance measurement in crdinatin with Phase 2 f the CAP Gal: Benchmarking Q Q COMPLETED COMPLETED Kick ff the administrative shared services rganizatinal study. Q COMPLETED Publish the Financial Management Services Catalg with prices and perfrmance metrics fr FSSPs Cmplete a baseline SLA (including perfrmance metrics and targets) fr Financial Management Shared Service Prviders Versin 2 (with prices) has been released t current custmers. Metrics cmpleted. Develping SLA language. Cmplete use cases fr a pssible data exchange slutin* fr implementatin acrss varius lines f business. Identify leads fr HR Shared Services initiatives in cnjunctin with the Office f Persnnel Management (OPM) Identify leads fr Acquisitin Shared Services in cnjunctin with Office f Federal Prcurement Plicy (OFPP) Identify leads fr Infrmatin Technlgy (IT) Shared Services in cnjunctin with E-gv Release a cst/benefit methdlgy fr capturing csts and anticipated savings assciated with shared services Leverage the Marketplace Gvernance Prduct Cntrl Bards t identify pssible strategic surcing pprtunities. Q Q *The shared data transfer capability will facilitate the autmated interactin between sftware applicatins such as financial systems, prcurement systems, e-invicing systems, inventry systems, r ther mixed systems. These sftware applicatins may r may nt be wned and perated by the federal gvernment. The use f this tl will allw the gvernment t develp standard and reusable exchanges and minimize new interface develpment fr system implementatins. 4

5 Cntributing Prgrams Shared Service Prviders Department f Agriculture, Natinal Finance Center (NFC)* Department f Interir, Interir Business Center (IBC)* Department f Treasury, Administrative Resurce Center (ARC)* and Shared Services Prgrams (SSP) Department f Transprtatin, Enterprise Service Center (ESC)* Department f Health and Human Services, Prgram Supprt Center (PSC) Department f Defense, Defense Finance and Accunting Service (DFAS) Department f Defense, Defense Civilian Persnnel Advisry Service (DCPAS) Cre Services Prvided Human Resurces and Payrll, Financial Management, Data Center Hsting Human Resurces and Payrll, Financial Management, Acquisitin Services Human Resurces and Payrll, Financial Management, Acquisitin Services, Data Center Hsting Financial Management, Data Center Hsting Financial Management, Real Estate and Lgistics, Acquisitin Services Financial Management, Payrll Human Resurces General Services Administratin, Business Management Office Human Resurces and Payrll, Financial Management, Data Center Hsting * Designated by OMB and Treasury as a Federal Shared Service Prvider fr financial management. 5

6 FINANCIAL MANAGEMENT: AGENCY MIGRATIONS TO SHARED SOLUTIONS Agency FY 2015 FY 2016 FY 2017 FY 2018 HUD (t Treasury ARC) Travel HR Prcessing and Time & Attendance FM & Prcurement (part 1) DHS DNDO/TSA /USCG (t Interir IBC) DNDO G-live TSA G-live USCG G-live GSA (t USDA NFC) Educatin Persnnel Transitined System Transitined The fllwing agencies are wrking with FIT t clarify scpe and identify timeframes fr mving t a shared slutins: Cmmerce VA (researching shared slutins) (in Discvery) Discvery Ends G / N G Decisin Labr (Apprved fr Discvery) Prjected Discvery Perid Represents the planned activity s cmpletin timeframe. Indicates cmpleted milestne. As f 5/14/15

7 Key Perfrmance Indicatrs Key Implementatin Data Year One Metrics Surce Baseline Target Frequency Latest data Trend # f migratins t financial shared prviders : ttal # f financial management migratins Treasury FIT 2014 TBD Annual 2/4 % f Departments using shared services fr sme cre administrative functin (FM, HR, IT, etc.). Agency Data Call Annual Under Review Custmer satisfactin survey results FIT Gvernance TBD Annual Q2 FY 2015 Indicatrs in Develpment Year Tw and Three Metrics: Increase in shared services adptin amng 24 CFO Act agencies fr individual [functin] prcesses Imprvements in satisfactin results frm custmers (CFOs, CHCOs, CIOs, CAOs, etc.) Ttal # f Financial Management Systems in the Federal Gvernment % f Departments using shared services fr sme cre administrative functin (FM, HR, IT, etc.) 7

8 Acrnyms ARC - Administrative Resurce Center CAO Chief Administrative Officer CAP Crss Agency Pririty CFO Chief Financial Officer CHCO Chief Human Capital Officer CIO Chief Infrmatin Officer DCPAS Defense Civilian Persnnel Advisry Service DFAS Defense Finance and Accunting Service DHS Department f Hmeland Security DNDO Dmestic Nuclear Detectin Office Educatin Department f Educatin ESC Enterprise Service Center FAME Federal Agency Migratin Evaluatin FIT Office f Financial Innvatin and Transfrmatin FM Financial Management FSSP Federal Shared Service Prviders GAO Gvernment Accuntability Office GSA General Service Administratin HR- Human Resurces HUD Department f Husing and Urban Develpment IBC Interir Business Center IG Inspectr General IT Infrmatin Technlgy Labr Department f Labr NFC Natinal Finance Center OFPP Office f Federal Prcurement Plicy OMB Office f Management and Budget PSC Prgram Supprt Center RFI Request fr Infrmatin SLA Service Level Agreement SSP- Shared Service Prgram Treasury Department f the Treasury TSA Transprtatin Security Administratin USCG United States Cast Guard USDA United States Department f Agriculture VA Veterans Affairs 8

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