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National Capital Regional PDI
“Beyond Audit – Mission Focus!”
8 March 2018
3/28/2018
UNCLASSIFIED//FOUO
NCR PDI 2018
• FY18 Financial Management Update
– Mr. Michael T. Powers, Acting ASA(FM&C)
• Army Budget
– Mr. Davis S. Welch, Deputy Director of Army Budget
• Army Audit Readiness Overview
– Mr. Wesley C. Miller, DASA-Financial Operations
• Army Financial Information Management
– Mr. Andrew S. Morgan, DASA-Financial Management
Information
UNCLASSIFIED//FOUO 2
NCR PDI 2018
FY18 Financial Management Update
– Mr. Michael T. Powers, Acting ASA(FM&C)
UNCLASSIFIED//FOUO 3
NCR PDI 2018
FY18 Financial Management Update
“We will continue to prosecute the campaign against
terrorists, but great-power competition — not terrorism —
is now the primary focus of U.S. national security,”
Secretary of Defense Jim Mattis at Johns Hopkins University’s Paul H.
Nitze School of Advanced International Studies.
UNCLASSIFIED//FOUO 4
New Leadership, New Strategy
• The New Administration brings new
leadership to the Army, OSD, and OMB National
National
Defense
Strategy Security
Defense
Strategy
• Significant changes within the National Planning
Guidance
(DPG)
Defense Strategy (NDS) Budget Control Act
• China is a strategic competitor using
predatory economics
• Russia has violated the borders of nearby
nations Bipartisan
• North Korea’s outlaw actions and reckless FY17/18 Budget Budget Act (x2)
rhetoric continue despite United Nation’s
censure and sanctions. COMPETE – DETER – WIN
• Iran continues to sow violence and
remains the most significant challenge to
Middle East stability.
• Financial Management will be imperative
to the success of implementing the NDS
while adhering to fiscal laws and
regulations in an era of fiscal uncertainty
UNCLASSIFIED//FOUO 3
Army Approach to Auditability
• The Army has taken a progressive approach to full financial statement auditability
aimed at continuously increasing momentum towards full financial statement audit
• In FY15 and FY16, Army underwent Schedule of Budgetary Activity (SBA) audits
• In FY17, Army moved to audit of the full Statement of Budgetary Resources (SBR)
• Currently, the Army is executing their first full financial statement audits
• The Army continues to remediate prior year audit findings
• A thorough prioritization assessment was conducted and each finding was assigned to an
accountable Corrective Action Plan (CAP) Development Owner
• CAP progress is tracked and reported on a bi-weekly basis to Army leadership by Senior
Responsible Officials (SRO)
• The Army established the Business Mission Area Champion (BMAC) audit committee
to provide strategic oversight for Army audit readiness efforts
• The BMAC was established to ensure accountability at the highest levels within the
organizations with direct control over areas critical to audit success
• The Army is holding Commanders accountable for their progress to supporting
efforts to achieve a clean opinion
• Monthly Command Auditability Execution Review chaired by the Under and Vice
• Quarterly Command Audit Update chaired by the Sec Army and Chief of Staff
UNCLASSIFIED//FOUO 6
Financial Information Management and
Process Reforms
• The FM systems environment is large and complex, rooted in
legacy systems, and dispersed and orphan functionality.
– 80% reduction in portfolio size.
– Manage transition to enduring systems and recoup cost savings from
system reductions.
• In order to bring operational efficiency and auditability to the
FM systems environment, new capabilities rooted in standards
and innovative technologies must be implemented.
– Consolidated financial accounting and budget reports.
– Audit data collected in seconds, not weeks.
• FM&C is leading the charge to identify, implement and govern
new technologies and platforms to bring control and
compliance to the Army FM enterprise.
– Centralize and control common business rules, controls and compliance
mandates.
– Ensure accountability to audit and government-wide policy.
UNCLASSIFIED//FOUO 7
NCR PDI 2018
Questions?
UNCLASSIFIED//FOUO 8
NCR PDI 2018
FY18 Army Budget
– Mr. Davis S. Welch, Deputy Director of Army Budget
UNCLASSIFIED//FOUO 9
Compete, Deter, and Win:
Building a more Lethal, Agile, and Capable Army
Where we are
Deployed and Committed: 186K
In more than 140 countries
Across 6 continents
Army SOF: 4K deployed in 80 countries
Worldwide Support to CT Operations
Today’s Environment
Long-term strategic competition with
revisionist powers
Rogue regimes destabilize regions and
seek WMD capability.
Terrorists and malicious non-state
actors cause global disruption
Rapid technological advancements are
changing the character of war
Strategic Approach
Build Readiness for major combat
operations
Modernize key capabilities
Establish force posture to deter and
provide strategic flexibility
To address the current threats, the Army must restore Deepen Joint and Allied
warfighting readiness, modernize capabilities, and Interoperability
reform our institutional processes to innovate faster Reform Institutional Processes for
than near-peer adversaries with global ambitions. greater performance.
Globally Engaged and Responsive
UNCLASSIFIED//FOUO
10Budget Trends
FY 2012 – FY 2019 ($B) Overseas Contingency Funding (OCO)
Base and OCO Base Actuals
Base Funding
$205 Pending Request
$67
$182
$177
$162 $169 $34
$50 $159
$151 $151 $30
$36 $29
$28 $23
$138
$148
$127
$128* $139*
$126* $123* $130*
Actuals Request w/
Amendment Request
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
* Includes OCO for Base purposes
FY14: $3.1B OCO for Base Transfer FY17: $6.0B OCO for Base Transfer
FY15: $0.85B OCO for Base Transfer FY18: $0.2B OCO for Base Transfer
FY16: $2.7B OCO for Base Transfer
The FY 2019 Budget Builds upon the Readiness Improvements Started in FY 2017
UNCLASSIFIED//FOUO 11FY 2019 Budget Themes
The Army’s FY 2019 Budget will help to ensure the Army
increases our overmatch capability and remains the world’s
preeminent ground fighting force through investments in
current and future readiness to
S deter adversaries and, when
necessary, fight and win.
Defeat Enemies in Ongoing Conflicts
Increase Warfighter Readiness
Increase Army’s Capacity
Invest in Army Modernization Priorities
Increase Lethality and Combined Arms Overmatch
Improve Rapid Response Readiness
Invest in Critical Infrastructure
Increase Global Security through Allies and Partners
Reform Army Processes
U.S. and Polish Soldiers conduct training: Poland
Support Soldiers, Civilians and their Families
12
UNCLASSIFIED//FOUOFY 2019 Budget Request
(Base Funding Program)
FY17 FY18 FY19
$B Actuals Request Request
Military Personnel 55.3 58.0 60.6
1
Operation and Maintenance 46.8 49.5 52.5
S
Procurement/RDTE 26.4 28.0 32.0
Military Construction/Family
1.6 2.3 2.0
Housing/BRAC
Other Base (CAMD/AWCF/ANC) 0.9 1.2
Numbers may not add due to rounding 1.2
Other Base: Chemical Agent and Munitions Destruction, Army Working Capital Fund, and Arlington National Cemetery
Totals
1: Includes Environmental Restoration Account (ERA) funding
2: Includes $6.0B in OCO for Base purposes 131.1 2 138.93 Base
148.4 Request
3: Includes $0.9B Missile Defeat and Defense Enhancement, $0.6B Hurricane Supplemental and $0.2B OCO for Base purposes
MILCON, Other, $148.4B
$2.0 $1.2
The Army’s topline base funding grew by 7% from the total FY18
budget request RDA,
$32.0 MILPER,
The FY19 base budget funds the Army’s readiness requirements and $60.6
the higher end strength: O&M,
Military Personnel 4.5% ▲ $52.5
Operations & Maintenance 6.1%▲
Procurement/RDTE (RDA) 14.3%▲
O&M Civilian
Pay, $14.5
UNCLASSIFIED//FOUO 13Proposed BBA Enhancement
• The 2018 Bipartisan Budget Act (BBA) was $26B above DoD’s PB18.
• The Army’s portion is $6.5B, directly supporting increases in:
• Readiness
• End-strength
• Modernization
• Equipment/Supplies
Increases by Appropriation
$ Millions FY18 PB w/ 2018 BBA
2018 Total % Increase
(Base Only) Amendments Enhancements
Military Pay $58,049 $270 $58,319 0.5%
O&M $49,463 $839 $50,302 1.7%
Procurement $18,527 $4,164 $22,691 22.5%
RDT&E $9,446 $1,066 $10,512 11.3%
Construction $2,311 $208 $2,519 9.0%
Other $1,117 $0 $1,117 0.0%
TOTAL $138,913 $6,547 $145,460 4.7%
• The Department signaled where they desired the additional funding – Congress
decides.
UNCLASSIFIED//FOUO 14Military End Strength
Supports a Total Army end strength of
1,030,500 Soldiers
Increases end strength to continue
rebuilding warfighting readiness and
improving capability and lethality
Grows Active Guard Reserve (AGR) full-
time support for the Army National Guard
and the Army Reserve U.S. Soldiers participating in Exercise Noble Partner: Republic of
Georgia
FY17 FY18 FY18 FY19
Component
Actuals Budgeted Authorized Request
Regular Army 476,245 476,000 483,500 487,500
Army National Guard 343,603 343,000 343,500 343,500
Army Reserve 194,318 199,000 199,500 199,500
1
Totals 1,014,166 1,018,000 1,026,500 1,030,500
1: Authorized in the FY 2018 National Defense Authorization Act, Public Law No: 115-91
15
UNCLASSIFIED//FOUOMilitary Personnel
Compensates 1,030,500 end strength,
including adjustments for pay, subsistence,
housing allowances; continues to address
retirement compensation
Increases funding for Reserve Component
Soldiers on active duty supporting missions
Provides incentives to recruit and retain the
All-Volunteer Force; includes recruiting and U.S. Soldiers conduct Expert Field Medical Badge training: Republic
retention bonuses and education benefits of Korea
FY17 FY18 FY19
$B Requested Rat e Increases
Actuals Request Request FY19
(Effective 1 Jan 19)
Regular Army 39.7 41.5 43.7 Basic Pay 2.6%
Basic Allowance for
Army National Guard 8.1 8.4 8.7 2.9%
fffffffffff Housing
Army Reserve 4.5 4.8 5.0 Basic Allowance for
3.4%
fffffffffff Subsistence
Medicare Eligible Ret Health Care Fund 3.0 3.3 3.2
1
Totals 55.3 58.0 60.6
Numbers may not add due to rounding
1: Includes $0.3B in OCO for Base purposes
16
UNCLASSIFIED//FOUOOperation and Maintenance (Regular Army)
Trains the Force
Resources 20 Combat Training Center rotations - 16 Regular Army and
4 ARNG
Resources three additional Security Force Assistance Brigades
(SFABs).
Operates the Force
Improves global posture; increased capacity (convert ABCT from IBCT)
Focuses attention on pre-positioning and rotations in the Pacific and
Europe
Sustains the Force
Prioritizes rapid global response and force projection readiness
M777A2 Howitzer Training
Improves the industrial base and ammunition management
Installation/Enterprise Support
Maintains commitment to Family and Soldier programs and installation support
Improves facility sustainment; continues to invest in restoration and modernization
FY17 FY18 FY19
$B
Actuals Request Request
Regular Army (OMA) 37.11 39.0 2 42.0 3
Numbers may not add due to rounding
1: Includes $3.6B in OCO for Base purposes
2: Includes $20.1M in Hurricane Supplemental
3: Includes $5.0B in OCO for Base purposes
17
UNCLASSIFIED//FOUOOperation and Maintenance (Reserve
Components)
Operation and Maintenance, Army National Guard
Strengthens readiness through unit specific training
Integrates into Global Army Missions
Continues support to Family Programs
Improves facility sustainment and restoration and
modernization
Ohio Army National Guard Soldiers conduct training
Operation and Maintenance, Army Reserve
Creates new Ready Force units at Platoon (+)
readiness level
Provides capability for early enablers to deploy in 0-90
days
Supports 79 functional and multifunctional support
brigades
Funds base operations for 3 installations and U.S. Army Reserve Soldiers: Operation Cold Steel II
707 Reserve centers FY17 1 FY18 2 FY19
$B
Actuals Request Request
Army National Guard (OMNG) 6.9 7.4 7.4
Army Reserve (OMAR) 2.7 2.9 2.9
Numbers may not add due to rounding
1: Includes OCO for Base purposes for ARNG: $140M; USAR: $14M
2: Includes Hurricane Supplemental for ARNG: $55M, USAR: $12M
UNCLASSIFIED//FOUO
18Modernization Summary
FY17 FY18 FY19 Modernization Priorities
$B 1. Long-Range Precision Fires
Actuals Request Request
2. Next Generation Combat
Procurement Total 17.9 18.5 21.9 Vehicles
3. Future Vertical Lift
RDT&ETotal 8.6 9.4 10.2 4. Army Network
1
Totals 26.5 27.9 2 32.1 5. Air and Missile Defense
Numbers may not add due to rounding 6. Soldier Lethality
1: Includes $1.7B in OCO for Base purposes
2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE) and $.2B in OCO for Base
$32.1 B
purposes
Fills critical capability gaps and improve
Capability Portfolios
lethality in munitions, and air and ground
combat platforms Air Missile
Defense 9%
Increases modernization of Abrams, Bradley, S&T 8%
Soldier 4%
Ammunition
5%
Stryker, and Paladin combat vehicles Other 11%
Aviation
Increases procurement of critical missiles, 16%
rockets, and 155-mm artillery projectiles
Accelerates procurement of Joint Battle Mission
Command – Platform (JBC-P) Command
12% Combat
Service
RDT&E increases in: Mobile Protected Intelligence
Support 7%
Ground
Firepower, Combat Vehicle Prototyping, Long 2%
Maneuver Fire
18% Support 8%
Range Precision Fires, Synthetic Training
Environment and Short Range Air Defense (M- 19
UNCLASSIFIED//FOUOProcurement Summary $21.9 B
Capability Portfolios
Air Missile Ammunition
FY17 FY18 FY19 Other 6% Soldier 5% Defense 8%
$B 7%
Actuals Request Request Mission
Aircraft 4.9 4.2 3.8 Command
13% Aviation
Missiles 2.4 3.6 3.4
19%
Weapons & Tracked Combat Vehicles (WTCV) 2.4 2.4 4.5
Ammunition 2.0 1.9 2.2
Other Procurement 6.2 6.5 8.0
Totals 17.91 18.6 2 21.9
Numbers may not add due to rounding
1: Includes $1.7B in OCO for Base purposes
2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE) and $.2B in OCO for Base
purposes
Intelligence
2%
Ground
Sustains Apache, Blackhawk and Chinook aircraft remanufacture
Maneuver Combat
and new builds 21% Service
Fire Support
9% Support 10%
Accelerates Multiple Launch Rocket Systems (MLRS) launcher modernization
and maximizes procurement of key munitions Patriot Missile Segment
Enhancement (MSE) missiles, Guided MLRS rockets, and Army Tactical Missile
Systems (ATACMS)
Accelerates modernization of Abrams, Bradley and Stryker fleets with mobility
and lethality upgrades
Sustains procurement of Paladin Integrated Management (PIM) and Joint Light
Tactical Vehicle for Low Rate Initial Production (LRIP)
Increases procurement of Joint Battle Command – Platform (JBC-P), baselining
the force of the mounted mission command
20
UNCLASSIFIED//FOUOSelect Procurement Quantities
(Base and OCO)
Q uant i t i es
Pr o g r am
F Y 18 F Y 19
AH-64E Apache Remanufacture 50 48
AH-64E Apache New Build 13 12
Abram UH-60M Black Hawk 48 50
s Apache
CH-47 Chinook 6 7
Abrams Upgrade 56 135
Bradley Upgrade/ MOD 195 210
Armored Multi-Purpose Vehicle (AMPV) 107 197
Paladin Integrated Management (PIM) 71 36
Bradley Joint Light Tactical Vehicle (JLTV) 2,498 3,390
Black Hawk
Guided MLRS Rocket (GMLRS) 6,084 9,450
MSE Missile 240 240
ATACMS Service Life Extension Program (SLEP) 122 404
Javelin 572 784
155mm Artillery Projectile 16,573 148,287
Joint Battle Command - Platform (JBC-P) 16,552 26,355
Paladi Chinook
n
JLTV GMLRS AMPV
21
UNCLASSIFIED//FOUORDT&E Summary $10.2 B
Capability Portfolios
FY17 FY18 FY19 Soldier 3%
Air Missile Ammunition
$B Actuals Request Request
Defense 11% 1%
Basic Research 0.5 0.4 0.4 Aviation 8%
Applied Research 1.2 0.9 0.9
Combat
Advanced Technology Dev. 1.4 1.12 1.0 S&T 26% Service
S&TSubtotal 3.1 2.4 2.3 Support 2%
Demonstration/ Validation 0.6 0.9 1.3
Engineering Manufacturing Dev. 2.3 3.0 3.2 Fire
Other 20% Support
Testing & Management Support 1.4 1.3 1.3 5%
Operational System Development 1.3 1.9 1.9
Totals 8.6 1 9.4 10.2 Ground
Numbers may not add due to rounding Maneuver
Intelligence 3% 13%
1: Includes $70M in OCO for Base purposes
2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE)
Mission Command 9%
Comprehensive realignment of the Science and Technology (S&T) portfolio towards the
Army’s priorities (Realigned $234M in FY19)
Increases investments in Mobile Protected Firepower, Combat Vehicle Prototyping, Long Range
Precision Fires, Synthetic Training Environment, Short Range Air Defense (M-SHORAD), and
Future Tactical Unmanned Aircraft Systems (FTUAS)
Continues Combat Vehicle Improvement Programs, Soldier Night Vision Devices, and Electronic
Warfare Development to increase lethality and maintain combat arms overmatch
22
UNCLASSIFIED//FOUOFacilities
These projects recapitalize poor and failing facilities as well as building new facilities that
meet unit demand. Provides construction of new facilities across all three components.
Regular Army: 19 projects, $1,012M
Army National Guard: 8 projects, $180M
Army Reserve: 2 projects, $65M
Supports U.S. and overseas Army Family Housing
operation and maintenance, leases, and
construction (6 projects, $331M)
Supports environmental remediation actions at Unmanned Aerial Vehicle Hanger, Fort
sites closed during prior BRAC rounds. Carson
$M FY17 Actuals FY18 Request FY19 Request
Military Construction 1,005 1,724 1 1,257
Army Family Housing 480 529 707
Base Realignment and Closure 133 58 63
Totals 1,618 2,311 2,027
Numbers may not add due to rounding
1: Includes $0.5B Hurricane supplemental
UNCLASSIFIED//FOUO
23Other Base Accounts
Cemeterial Expenses, Army (Arlington National Cemetery)
Provides for operation, maintenance, infrastructure revitalization and
construction at Arlington National Cemetery in Arlington, Virginia, and the
Soldiers’ and Airmen’s Home National Cemetery in Washington, D.C.
ANC is the final resting place for Service Members, Veterans, and their
Families; as an active cemetery, hosts more than 7,000 burials annually
Arlington National Cemetery
Chemical Agent and Munitions Destruction (DoD Program)
Provides for destruction of US inventory of lethal chemical agents and munitions as outlined in the Chemical
Weapons Convention
Chemical Agent-Destruction continues at Blue Grass and Pueblo Pilot Plants
Continues the chemical stockpile preparedness program
Army Working Capital Fund
Provides for the acquisition of secondary items for Army Prepositioned Stocks
Sustains industrial base equipment required for mobilization
$M FY17 Actuals FY18 Request FY19 Request
Army National Cemetery and Construction 71 71 71
Chemical Agent and Munitions Destruction 651 962 994
Army Working Capital Fund 197 84 159
Numbers may not add due to rounding
24
UNCLASSIFIED//FOUOOverseas Contingency Operations
FY17 FY18 FY19
Appropriat ion ($M)
Act uals Request Request
Milit ary Personnel (MILPERS) 2,287 2,893 3,161
5
Operat ion & Maint enance (O&M) 15,925 17,132 18,363
4
Research, Development , & Acquisit ion (RDA) 3,610 2,692 5,289
Milit ary Const ruct ion, Army (MCA) 30 140 261
3
Working Capit al Fund (AWCF) 48 50 7
Army Subt ot al 21,900 22,907 27,081
Counter-Islamic State of Iraq and Syria Train and Equip Fund 1 1,438 1,769 1,400
Afghan Security Forces Fund 4,263 4,938 5,199
Iraq Train & Equip Fund 290 - -
2
Joint Improvised Explosive Device Defeat Fund 88 - -
Passt hrough / Transfer Account s Subt ot al 6,079 6,707 6,599
Tot als 27,979 29,614 33,680
OCO Request
Numbers may not add due to rounding
1: The Iraq and Syria Train & Equip Funds were combined into a single Counter-ISIS Train & Equip fund in FY17
2: The Joint Improvised Explosive Device Defeat mission has been assumed by a new DOD organization for FY17 and
beyond.
Materials.
Partial FY16 and FY17 JIEDDF funding information can be found in the DOD Budget
$33.7B
3: Army Working Capital FY17 numbers reflect enacted appropriations
4: Does not include $0.2B OCO for Base purposes.
5: Does not include $5.0B OCO for Base purposes
O&M
Operation FREEDOM’S SENTINEL (Afghanistan; Horn of Africa)
54%
includes Operation Spartan Shield (CENTCOM)
62% 11
Operation INHERENT RESOLVE (Iraq) MILPERS
%
9%
European Deterrence Initiative (Europe)
9%
Afghan Security Forces Fund RDA
MILCON/AWCF
Counter-ISIS Train & Equip Fund 1%
16%
Pass- 25
UNCLASSIFIED//FOUO
Through…The FY 2019 Army Budget Request
Warfighter Readiness is the US
Army’s Number One Priority
https://www.asafm.army.mil/offices/bu/content.aspx?what=BudgetMaterials
26
UNCLASSIFIED//FOUONCR PDI 2018
Questions?
UNCLASSIFIED//FOUO 27NCR PDI 2018
Army Audit Readiness Overview
– Mr. Wes Miller, DASA-Financial Operations
UNCLASSIFIED//FOUO 28Army Audit Beyond Today
• Tone from the top
– Army Audit EXORD
– Pending Sec Army Memo
Clear business processes
• Audit Culture
– Committed Leaders and
Personnel
– Accountable Business
Processes
– Good Stewardship of
Resources and Dollars Taxpayer confidence
• Under Full Financial Statement
Audits
– General Fund
– Working Capital Fund
Effective internal controls
UNCLASSIFIED//FOUO 4111111Army Audit Concept of Operations
ASA(FM&C) Secretary of the Army Priorities
Audit Priorities
Readiness Modernize Reform People
Universe of Transactions
Posting Logic & Data Categorization
Fund Balance with Treasury
Education / Training
Audit Execution
Monitor & Validate
IT General Controls
Lines of Effort
Remediation
Journal Vouchers & Financial Reporting
Budget Execution Improvement
Existence & Completeness
Asset Valuation
Environmental & Disposal Liabilities
Governance
UNCLASSIFIED//FOUO 30Army Audit Timeline
Q4 FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Audit Summit Sept 28th -
Nov 29-30th Estimated FY18
Conclusion of Audit
Full Financial FY17 Audit Report Audit Sampling Report
for FY18
Statement Est Nov 30th
Audit
FY18 FULL FINANCIAL STATEMENT AUDIT FY19
Entrance Conference
Entrance Conference
FY17 SOC1 NFR FY17 SOC1 CAP Development/ Implementation
Issuance
FY18
Remediate Control Objectives Excluded from FY17 SOC 1 Rpt Audit
Sept 28th -
Report
OM&S SOC 1 Remediate Gaps in FY17 SOC1 Report Estimated
Conclusion of
FY17 Audit Report Attend SSAE18 OM&S Examination Audit Sampling
Est Nov 30th Walkthroughs for FY18
Monthly Calls to discuss Stakeholder CAP Progress
Audit Summit
Sept 28th - FY18
Nov 29-30th
Estimated Audit
Conclusion of Report
GFEBS SOC 1 FY17 Audit Report Audit Sampling
Est Nov 30th for FY18
FIAR
Governance
Board Meetings
BMAC
Meetings
UNCLASSIFIED//FOUO 31Army Audit Challenges
Army is committed to achieving audit success while recognizing that
significant challenges remain:
Fiscal Uncertainty
Audit requirements compete for resources alongside weapons
systems and readiness activities
Complex System Environment
The number of legacy systems and interfaces results in significant
reconciliation issues
Numerous system changes need to occur in GFEBS to support
auditability – due to the contract protest for the system integrator,
GFEBS will not implement any system changes for 18 months
Building and Sustaining a Culture of Auditability
Audit is not always viewed as a “warfighting” need
Audit requires an increase in leadership participation and
governance support, starting with the “tone at the top”
UNCLASSIFIED//FOUO 32Audit Way Ahead
Evaluate and utilize the outputs of the data categorization
working group established to address current and future
ERP data needs for audit
Evaluate and utilize analysis being performed for Tie
Points related to SBR and Balance Sheet data
populations
Continue efforts to properly value Army’s assets and
determine appropriate corrective actions for a go forward
methodology (e.g. General Equipment, OM&S, Real
Property, IUS)
Continue to focus on top priorities and use of the
Business Mission Area Champions to help drive
corrective actions
Support increased on-site testing by KPMG at Commands
and DFAS to provide more in-depth assessment of “what
is working” and “what still needs to be fixed”
Emphasize comprehensive change management and
communication (i.e., Audit Preparedness Road Show)
Implement long term strategy, vision and alignment of
Army Audit Readiness Directorate
UNCLASSIFIED//FOUO 33NCR PDI 2018
Questions?
UNCLASSIFIED//FOUO 34NCR PDI 2018
Army Financial Information Management
– Mr. Andrew S. Morgan, DASA-Financial Management
Information
UNCLASSIFIED//FOUO 35Army Financial Information
Management
Mr. Andrew S. Morgan,
DASA-FIM
8 March 2018
UNCLASSIFIED//FOUOArmy FM Change Enabler
Leverage Technology to Turn the Corner
• Data Analytics • Standardization • ERP Capabilities
• Automation • Integration • Process
Reengineering
WILL
ENABLE
Audit Work
Correction of Material
Weaknesses Sustaining Audit
Systems Shortcomings & Controls and Compliance
Redundancies
Efficient Processes
Manual Processes Work
Reduced Workload
Environment Complexity
Retired Systems
We are
HERE Need to
UNCLASSIFIED//FOUO be HERE 37DASA-FIM Strategic Priorities
Enable Army FM Systems into an Integrated Environment
Reengineer business processes, Implement data standards, Leverage ERPs and other innovative
technologies, retire legacy systems.
Deliver Big Data Analytics to FM Domain Decision-Makers
Normalize and centralize financial data, Leverage technology platforms such as SAP HANA to
power advanced analytics.
Enable Standardization of Financial Information
Implement standard data and processes across the enterprise, make data available to analytical
and reporting platforms.
Provide Enablers to Automate Manual Processes
Leverage next-generation technologies such as Robotic Process Automation to reduce errors and
streamline manual processes.
Deploy IT Controls and Compliance to Ensure Data Integrity
Centralize and control common business rules, controls and compliance mandates, Ensure
accountability to audit and government-wide policy.
Retire Legacy Systems
Develop common capabilities to reduce reliance on legacy systems and platforms, Manage
transition to enduring systems and recoup cost savings from system reductions.
UNCLASSIFIED//FOUO 38Army & OSD-submitted Reforms
Primary Lever: End-to-End Process Optimization
1. Implement Cash Accountability Process & Systems changes:
1a. Treasury Direct Disbursement (TDD)
1b. Treasury Collections/Debt Management
1c. Intragovernmental G-Invoicing solution w/ GFEBS
2. Implement Standard Financial Information Structure (SFIS 10.0 MR)
3. Implement Supplier Self-Service (SUS) across Army
Primary Lever: Automate Manual Processes
4. Implement Robotics Process Automation (RPA)
Primary Lever: Consolidate and Centralize
5. Field Enterprise Universe of Transactions (EUoT)
6. Generate Army-wide Unadjusted Trial Balance (UTB)
UNCLASSIFIED//FOUO 39Army FM Systems “As-Is” Environment
AFT ASRS BAM GAFS-DTS DSOM JR
Insourcing
MHP- DLIS - RM On-line
On-Base GAFS-R RINO
WARS MDC (USACIDC)
MCRT JIAT ABIF CTSF-
SIDPERS- SAAS DSS DIRECT ABC...
MUP ARISS SABS EUD ARPA
ARNG SCP-11 US Bank
SSCPCMS STANFINS FIS CAPS W iRAPT TAA
Online NIFMS PFMS PFMS
AWRDS SAMS-E ULLS - A [WAWF] FLIS IMCOM...
JUSTIS SAAS- DDRS-
/ABS PRIDE
MOD AFS
ACEIT EC ASA BEST
DPAS
PPBE Data AMCOS eCPIC FMBS AFRC
SOFIMS SOMARDS SSCOFD DCD/DCW DCRM SAM WMT OSMIS WP
Warehouse SARSS- FMS
SARSS-1 DAAS
2AD
IUOT AAA G8 - TDA-
ERMS FMTP
WARS AXE CHD
SCRT
ACM FIRE G8 - FSAT GFEBS-
GSA SARSS- CFMS - STORES SA
RM On-line RM On-line IATS DLA
ARMS Advantage 2AC/2B STORES RSW
(USASOC) HQA006 PBUSE CIMS YPG AMIS TEWLS G8 - FMIS TBG WEBPC SMIRF
RM Online TAADS-R ONLINE
(USAASC) SRD1 (or
STANFINS-R) ACT ARMP
DoD ACCRO AFIRMS AP&AS
KYLOC AFMIS IMCOM
EMALL
DLA EBS
BARDS AWPS CORPDB
IMPART CBIS COTS
AFCOS ITS
RM Online HQACPER NGB
STANFINS G8 - CIRS NASK RMOL RMT
(ATEC) S Online
CEFT PPVM
FMS RLAS
IOL
HQACPER
CAPCES SLAMIS DMOPS FCM
S
RM - FAS
Online PBAS-OC SORS Not Active
(NGB) EFD
ODS
CISIL GEX Access
Online
RSM ITRM DJMS-RC (AXOL)
OLRV
DAI DMO Not Active
SPS DCPS
RSW
ONLINE
ODS
DDS
AORS DDMS IRM
APVM DCRM
AESIP
PBAS-FD No traffic
FDIIS
Powertrack
KNPS
/ Syncada
DJMS-AC DPAS
CIS
Not Active
BEIS BRAC FM DIFS
CMICS
EDM
GFEBS ILNPS
EAS
(DFAS)
PADDS
LMP CAPS W
IRMIS
PBAS-FD DSAMS
iRAPT
SDCS MOCAS FFPO
[WAWF]
CPROBE EDM
DDRS - B DASIS ASK-FM AVKINPUT
DMLSS
Not Active
CMRA SABRS DRRT Not Active
1099TRP CCR SNAP
SAMAS
AESIP AVPRAT
DEERS Delphi DARS
DCAS SABRS HQIIS
FEDREG Not Active
DbCAS/ DTS DAPS
DARTS CT 1081
WebCAS
LOGMAPS
S
PRCP
ATAAPS
DCRM Treasury
RBuilder
AcqBiz
ATRRS
GCSS-Army FMSweb
ADS FFCRT
APMS 1-N DDS
OSD IPAC
FYDP ASARS IRMIS EAS HQACPER
DRDW Wizard
S
STANFINS FPIK CMS
TAPDB LIW PDC RPLANS DDARS ODS
MyInvoice DDRS PBAS-OC EAS IV RM Online AMCOS
ODS
GFIS IATS
Web TAS HQIIS
DMHRSi SOMARDS IPPS-A
Access DB
1-N FORCES JIAT
HQARS
Legend FMS SOMARDS SNAP CISIL DCPDS eFUNDS EFD FAMS
ITAPDB
EMILPO
ATRRS TC-AIMS II
Audit Relevant PRTA AFCOS TOPMIS II AORS EDAS
Legend MAFR TOP OMBIL RMS SPS TMIS RFMIS-RD
Audit Relevant
Army FM
Defense
Non-FM
Federal (non-
Army / non-
DOD)
Defense Federal (non- DCRM
APPMS ENGLink FEMS FUDSMIS P2 SAM
Army Non-
FM
Defense
FM
Manual Input
Army FM Army / non-
Non-FM GAFS-R DDRS
DOD) IPAC ATMP DCPS EDW REMIS
Army Non- Defense Manual Input CEFMS
FM FM
215 systems impacting
Financial Management operations
UNCLASSIFIED//FOUO 40FM Systems Portfolio
Army Domain Army Non-Army* Total
Acquisition 3 6 9
Financial Management 73 56 129
Human Resources Management 16 8 24
Installations, Energy and Environment 10 0 10
Logistics 25 13 38
Enterprise Information Environment Mission
2 0 2
Area (EIEMA)
Warfighter Mission Area 3 0 3
Total 130 83 215
*Non-Army includes DoD, Federal and commercial
FIM maintains oversight over the 73 Army financial management systems
UNCLASSIFIED//FOUO 41Simplified “To-Be” Architecture
Global
GFEBS Exchange
(GEX)
80% Reduction in Portfolio Single query collects data Robust Cost Analyses & Consolidated financial accounting
Size from ERPs near real-time Allocations and budget reports
Greater FISCAM Audit Data Collected in Reduced # of Interfaces Billions of transactions queried at
Compliance seconds not weeks Via Hub-and-Spoke sub-second speeds
UNCLASSIFIED//FOUO 42GFEBS & GFEBS-SA
Contract Transition
Accenture Transition Out
IBM Transition In
GFEBS DHA
Final Accenture Release HQ/USUHS
Deployment
• Posting Logic (Invalid GLAC 4210, GLAC 110 Posting
• Real Property Audit Fix (SFFAS 6/50)
• SFIS 10 MR GFEBS-SA Deployment
• Self MIPR Process
• GRC Process Controls (original) (revised)
Q3 FY18 Release
• Audit Requirement (DP96 Report)
Release Schedule
• Small break/fix items
Q1 FY19 Release
• Audit Requirement (Posting Logic, etc.)
• Debt Management
• TBD high priority items
Q2 FY19 Release
• TBD high priority items
Q3 FY19 Release
• TBD high priority items
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19
Accenture IBM UNCLASSIFIED//FOUO 43Cost Avoidance via Legacy System
Retirement
# of Dollars
Systems in $M
90 $80
81
80 $70
70
$60
60
$50
50
$40
40
$30
30 27
19 $20
20
10 $10
6
2 2 1
0 $-
2006
To to
Date 2018 2019 2021 2022 2023 2024
2017
Retired-to-date Number of Additional Systems to be Retired Cumulative Annual Cost Avoidance
Funding ERPs and Critical Audit Related System Change Requests (SCRs) Enables the
Retirement of Legacy Systems which Leads to Audit Success
UNCLASSIFIED//FOUO 44Implement Capabilities to Retire Legacy
Systems
GFEBS Inc II / GCSS-A Inc 2
2021
14
14 COST ASSESSMENT DATA ENTERPRISE – IT
GFEBS SA 2023
2020 12
12
NIFMS
LMP INC II TBD
2022
10 2023
GFEBS/IPPS-A 9
GFEBS INC II*
2020
Systems Count
TBD 8
8 GFEBS INC II* EUOT
2021 TBD
6
6
5
GFEBS
4
TBD
3 3
2 2 2 2 2
2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0
*GFEBS Inc. II may roll back
Orphan Capabilities into the GFEBS funding plan
UNCLASSIFIED//FOUO 45Consolidate Datasets for Audit and
Data-driven Decision Making
Cost Strategic Financial Financial
Information Systems Operations
DASA-CE OBT DASA-FIM USAFMCOM
Budget Financial
CSA Operations
DASA-BU Readiness DASA-FO Auditors
• Multiple business intelligence tools and reports
populated by a standard universe of data from a
centralized analytics engine
Dashboards
• Centralized Army-wide Business Analytics Engine
• Powers the consolidation, transformation, reconciliation and
reporting up to the dashboards layer
• Enabled by SAP HANA/S4
Engine
• Foundation of all Army analytics
• Army-wide data sources:
o GFEBS o Legacy Systems (SOMARDS,
o LMP STANFINS, etc.)
o GCSS-A o Financial Feeder Systems
Data Sources o ePROBE o Manual, Spreadsheets
UNCLASSIFIED//FOUO 46iUoT to EUoT Transition Timeline
Enterprise
Interim
Universe of
Universe of Transactions
Transactions
iUoT
Code Freeze iUoT Outcome: 3, 4 & 5
iUoT Brown-
Retirement
out Begins
FY2017 FY2018 FY2019 FY2020 FY2021
Hardware
arrives First UAT
cycle Future
Analysis and Production Outcome: 1 Enhancements
Preliminary Design development (Common Access
begins Outcome: 2 Portal, etc.)
Documentation
Prototyping
Begins
Today
EUoT Outcomes:
1. Retire iUoT
2. Generate an Army-wide Unadjusted Trial Balance [UTB]
3. Support audit sampling and prepared-by-client requests [PBC]
4. Automate system reconciliations
5. Provide financial audit analytical capabilities into cross-domain
business processes
UNCLASSIFIED//FOUO 47Automate Manual and Repetitive Processes
Army Robotic Process Automation (ARPA) is a high-impact, low-cost, quick-
to-implement capability that delivers improved mission focus, enhanced
controls, and high return on investment in the following ways
Army Robotics Process Automation
Emulates human Works with existing
Robots are a virtual
execution of repetitive infrastructure and is
workforce to automate
processes via existing governed and
simple repetitive
user interfaces and controlled by DASA-
processes
systems FIM
Automated
24/7 solution can 100% Consistent 100% 100% accuracy
work 24/7
UNCLASSIFIED//FOUO 48Robotic Process Automation (RPA) Overview
GCSS-
IPPS-A LMP Army
GFEBS
Bob’s Needs:
Technological /
Operational
Computer Access
LAN Access
PKI Credentials
System-specific Roles
Virtual environment
System Access (GFEBS,
GRC, EDA)
Bob needs to be “taught”
by a Human
RPA Software (UI Path)
Bot controllers monitored
by Humans (not bots)
UNCLASSIFIED//FOUO 49Sustain Controls and Compliance
Application Security Access Controls
Segregation of
Business Process Duties
Controls
CONTROLS
GOVERNANCE
AND
RISK Configuration
COMPLIANCE
AND Management
Interface COMPLIANCE
Controls Security
Management
Data Management Contingency
Systems Controls Planning
All systems – FM or otherwise – must be compliant to IT Control Requirements
(e.g. FISCAM, FISMA, FFMIA, A-132, PKI, PIA, RM, etc.)
UNCLASSIFIED//FOUO 50NCR PDI 2018
Questions?
UNCLASSIFIED//FOUO 51NCR PDI 2018
Closing Remarks
UNCLASSIFIED//FOUO 52You can also read
