oversight

Financial Management Systems: Core Financial Systems at the 24 Chief Financial Officers Act Agencies

Published by the Government Accountability Office on 2003-06-27.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

A
United States General Accounting Office
Washington, D.C. 20548



                                    June 27, 2003

                                    The Honorable Todd R. Platts
                                    Chairman, Subcommittee on Government Efficiency
                                     and Financial Management
                                    Committee on Government Reform
                                    House of Representatives

                                    Subject: Financial Management Systems: Core Financial Systems at the
                                    24 Chief Financial Officers Act Agencies

                                    Dear Mr. Chairman:

                                    On April 8, 2003, we testified before your Subcommittee on the fiscal year
                                    2002 consolidated financial statements of the U.S. government.1 In that
                                    testimony, we provided our perspectives on major issues relating to the
                                    U.S. government’s consolidated financial statements for fiscal years 2001
                                    and 2002, including impediments to rendering an audit opinion on
                                    consolidated financial statements. As a result of issues raised in our
                                    testimony about the preparation of the consolidated financial statements
                                    and the adequacy of financial management systems and controls at the 24
                                    Chief Financial Officers (CFO) Act2 agencies, you and other subcommittee
                                    members asked a number of questions about issues surrounding the
                                    consolidated financial statements. On June 16, 2003,3 we responded to all
                                    but your question related to the status of financial management systems
                                    modernization agency by agency. As agreed with your office, the objectives

                                    1
                                      U.S. General Accounting Office, Fiscal Year 2002 U.S. Government Financial Statements:
                                    Sustained Leadership and Oversight Needed for Effective Implementation of Financial
                                    Management Reform, GAO-03-572T (Washington, D.C.: Apr. 8, 2003).
                                    2
                                     Pub. L. No. 101-576, 104 Stat. 2838 (1990). The Federal Emergency Management Agency
                                    (FEMA), one of the 24 CFO Act agencies, was transferred to the new Department of
                                    Homeland Security (DHS) effective March 1, 2003. With this transfer, FEMA will no longer
                                    be required to prepare and have audited stand-alone financial statements under the CFO
                                    Act. DHS, along with most other executive branch agencies, will be required to prepare and
                                    have audited financial statements under the Accountability of Tax Dollars Act of 2002, Pub.
                                    L. No. 107-289, 116 Stat. 2049 (Nov. 7, 2002). We did not include DHS in our review because
                                    of its unique status as a new agency as of March 1, 2003. We included FEMA in our review
                                    since FEMA was a CFO Act agency as of September 30, 2002, and because information on
                                    FEMA’s core financial system will be useful as it is incorporated into DHS.
                                    3
                                     U.S. General Accounting Office, Responses to Posthearing Questions Related to GAO’s
                                    Testimony on the U.S. Government’s Consolidated Financial Statements for Fiscal Year
                                    2002, GAO-03-848R (Washington, D.C.: June 16, 2003).




                                    Page 1                                                GAO-03-903R Core Financial Systems
                         of this letter, which address the remaining question, are to identify the core
                         financial systems used at each of the CFO Act agencies as of September 30,
                         2002, and the status of any agency plans to update core financial systems.
                         To do so, we used publicly available information and confirmed this
                         information with the CFO Act agencies, but we did not validate or verify
                         the information obtained or provided. Further details on our scope and
                         methodology are provided on page 7.



Core Financial Systems   Core financial systems,4 as defined by the Joint Financial Management
                         Improvement Program (JFMIP),5 include managing general ledger, funding,
                         payments, receivables, and certain basic cost functions. The core financial
                         systems receive data from other financial and feeder systems, such as
                         acquisition, grant, and personnel systems, as well as from direct user input,
                         and provide data for financial performance measurement and analysis and
                         for financial statement preparation.

                         Enclosures I and II present detailed information on agencies’ core financial
                         systems including the software being used as of September 30, 2002, when
                         the core financial systems were implemented, which agencies are planning
                         to acquire new systems, and the target date for implementation of any new
                         systems. Enclosure I includes 20 CFO Act agencies that reported they
                         generally have in place a single core financial system for the agency and its
                         subcomponent agencies and bureaus. In certain cases, more than one core
                         financial system was used by the agencies. Enclosure II provides
                         information on 4 agencies, the Departments of Defense (DOD), Justice
                         (DOJ), the Treasury, and Health and Human Services (HHS), that reported
                         having multiple core financial systems. Each of these 4 CFO Act agencies
                         has 5 or more subcomponent agencies, which maintain separate core
                         financial systems. However, the systems included in enclosures I and II
                         may not include all of the JFMIP-defined functions of a core financial
                         system.




                         4
                          Joint Financial Management Improvement Program (JFMIP), Core Financial Systems
                         Requirements, SR-02-01 (Washington, D.C.: November 2001).
                         5
                           JFMIP is a joint and cooperative undertaking of the Office of Management and Budget, the
                         Department of the Treasury, the Office of Personnel Management, and GAO, working with
                         federal agencies to improve financial management practices throughout the government.




                         Page 2                                               GAO-03-903R Core Financial Systems
                         The following summary characteristics highlight key data included in
                         enclosures I and II about the 24 CFO Act agencies’ current and planned
                         core financial systems as of September 30, 2002.



Core Financial Systems   The 24 CFO Act agencies used a variety of core financial systems software.
                         Ten agencies used only commercial-off-the-shelf (COTS) software
Software                 packages as their core financial systems.

                         • Two agencies, the Department of Education, and the Small Business
                           Administration (SBA), exclusively used Oracle U.S. Federal Financials
                           software.

                         • One agency, the Office of Personnel Management (OPM), exclusively
                           used American Management Systems (AMS) Momentum software
                           package.

                         • Four agencies, the Departments of Housing and Urban Development
                           (HUD) and Veterans Affairs (VA), the Nuclear Regulatory Commission
                           (NRC), and the Environmental Protection Agency (EPA), exclusively
                           used AMS’s Federal Financial System software package.

                         • Three agencies, the Department of Labor (DOL), the Federal Emergency
                           Management Agency (FEMA), and the Social Security Administration
                           (SSA), exclusively used other COTS packages.

                         • Three agencies, the Department of Energy (DOE), National Science
                           Foundation (NSF), and the National Aeronautics and Space
                           Administration (NASA), exclusively used custom software.

                         • Six agencies used a mix of 2 systems:

                            • Five agencies had partially implemented a new system in a number of
                              their respective bureaus as of September 30, 2002. These agencies
                              were the Agency for International Development (AID); Departments
                              of Transportation (DOT), State, and Agriculture (USDA); and the
                              General Services Administration (GSA).

                            • One agency, the Department of the Interior (DOI), used both a
                              custom and a COTS software product.




                         Page 3                                      GAO-03-903R Core Financial Systems
                    • Five agencies used a variety of core financial systems.

                          • DOD reported 100 core financial systems6 in use in its subcomponent
                            agencies and bureaus of its total systems inventory of 2,114 systems.

                          • DOJ’s subcomponent agencies used multiple core financial systems,
                            ranging from custom-built software, to some of the more common
                            software packages, such as those from AMS and SAP.

                          • HHS’s main subcomponent agencies used either the Arthur Young
                            Federal Success software package or custom software.

                          • Treasury’s subcomponent agencies and bureaus used a variety of
                            COTS packages, including AMS’s Federal Financial System and
                            Momentum products, SAP, and Peoplesoft Financials. One agency,
                            the Bureau of the Public Debt (BPD), cross-serviced several other
                            agencies within Treasury as well.

                          • The Department of Commerce’s (DOC) major subcomponent
                            agencies used RELTEK’s Federal Financial Management System—a
                            modified COTS product. DOC’s other agencies used either custom
                            software or COTS products.



Age of the Core     The age of the core financial systems ranged from systems implemented in
                    fiscal year 2002 to those implemented more than 30 years ago.
Financial Systems
                    • Five agencies—Education, NRC, SBA, OPM, and NSF—have fully
                      implemented new core financial systems since the beginning of fiscal
                      year 2001.

                    • Four agencies—FEMA, HUD, SSA, and VA—have systems implemented
                      from 2 to 10 years ago.

                    • Six agencies—DOC, AID, State, USDA, GSA, and DOT—were using both
                      legacy systems and new core financial systems implemented in parts of
                      the agencies as of September 30, 2002. For example, GSA used both a



                    6
                        This list was compiled from DOD’s “As Is Systems Inventory” as of October 31, 2002.




                    Page 4                                                  GAO-03-903R Core Financial Systems
                         custom system originally implemented in 1974 and AMS Momentum that
                         it was in the process of implementing as of September 30, 2002.

                     • Five agencies—NASA, DOE, DOI, DOL, and EPA—have systems that
                       were implemented more than 10 years ago.

                     • Four agencies—DOD, DOJ, HHS, and Treasury—used multiple core
                       financial systems that were implemented from the 1960s through 2001.
                       For example, DOD has some core financial systems that were originally
                       implemented in the 1960s and 1970s.



Software Selection   Seventeen agencies7 were planning to or were in the process of
                     implementing new core financial systems as of September 30, 2002.
Plans
                     • Of this total, 11 have selected the software product they plan to use:

                         • 3 have selected AMS Momentum (AID, GSA, and State),

                         • 5 have selected Oracle U.S. Federal Financials (DOE, DOT, VA, HHS,
                           and SSA),

                         • 1 has selected RELTEK Federal Financial Management System
                           (DOC),

                         • 1 has selected SAP (NASA), and

                         • 1 has selected AMS Federal Financial System (USDA).




                     7
                      Treasury is among the agencies not planning to implement an agencywide core financial
                     system. However, several of its subcomponent agencies are in the process of implementing
                     core financial system software packages, including the Internal Revenue Service and the
                     Office of the Comptroller of the Currency.




                     Page 5                                              GAO-03-903R Core Financial Systems
                        • The remaining 6 agencies have not reached the software selection phase
                          of their acquisition process (DOD, DOI, DOJ, DOL, EPA, and HUD).

                            • In DOD’s case, a complete business systems8 modernization project9
                              is under way that proposes to revamp and integrate the systems used
                              in DOD entities as part of a DOD-wide transformation.

                            • DOJ plans to award a contract for the acquisition of a core software
                              package in July 2003.



Target Implementation   Target implementation dates for the 17 agencies planning to implement
                        new core financial systems generally ranged from fiscal year 2003 to fiscal
Dates                   year 2008, though one agency had not yet selected a target implementation
                        date.

                        • Three agencies plan to complete or have completed implementation in
                          fiscal year 2003 (USDA, GSA, and NASA).

                        • Three agencies plan to complete their implementations in fiscal year
                          2004 (SSA, DOC, and DOT).

                        • Ten agencies have established target implementation dates ranging from
                          2 to 6 years in the future (AID, DOJ, DOL, HHS, EPA, HUD, VA, DOI,
                          State, and DOE).

                        • One agency has not yet determined its target date for full
                          implementation (DOD).




                        8
                          Business systems include those that are used to support civilian personnel, finance, health,
                        logistics, military personnel, procurement, and transportation.
                        9
                         See U.S. General Accounting Office, DOD Financial Management: Important Steps
                        Underway But Reform Will Require a Long-term Commitment, GAO-02-784T (Washington,
                        D.C.: June 4, 2002); DOD Business Systems Modernization: Continued Investment in Key
                        Accounting Systems Needs to be Justified, GAO-03-465 (Washington, D.C.: Mar. 28, 2003);
                        DOD Business Systems Modernization: Longstanding Management and Oversight
                        Weaknesses Continue to Put Investments at Risk, GAO-03-553T (Washington, D.C.: Mar. 31,
                        2003).




                        Page 6                                                  GAO-03-903R Core Financial Systems
Life Cycle Phase   These 17 agencies were in different phases10 of the process to implement a
                   new core financial system as of September 30, 2002.

                   • Five agencies—HUD11, DOI, DOL, DOD, and EPA—were in the business
                     modeling and requirements phase.

                   • One agency—DOJ—was in the analysis and design phase.

                   • Three agencies were in the development phase: State which plans to
                     implement an agencywide COTS product, DOE, which plans to
                     implement a COTS-based product in October 2004, and VA, whose
                     strategy includes a phased-in approach beginning in October 2003.

                   • Two agencies were in the testing phase: AID, which plans to implement
                     the COTS software currently used domestically in its overseas regional
                     offices, and HHS, which is using a phased rollout strategy with its
                     subcomponent agencies.

                   • Six agencies—USDA, DOC, SSA, DOT, GSA, and NASA—were in the
                     deployment phase as of September 30, 2002.

                   To identify and compile the status of CFO Act agencies’ core financial
                   systems, we reviewed publicly available information, including fiscal year
                   2002 performance and accountability reports for the CFO Act agencies,
                   related reports by those agencies’ Inspectors General (IG), as well as any
                   reports that we issued on this matter. We reviewed other publicly available
                   information, including agency, Office of Management and Budget (OMB),
                   and JFMIP Web sites to identify information on current core financial
                   systems and planned implementations. We also reviewed related OMB
                   circulars, including A-127,12 and JFMIP systems requirements for core
                   financial systems and its Framework for Federal Financial Management
                   Systems.13 We shared the information we gathered on agencies’ current


                   10
                        See definition of life cycle phases in endnote ‘a’ of enclosure I.
                   11
                        According to HUD, this phase will begin in July 2003.
                   12
                    OMB Circular A-127, Financial Management Systems, as revised by Transmittal
                   Memorandum No. 2, June 10, 1999.
                   13
                     JFMIP, Framework for Federal Financial Management Systems, FFMSR-0 (Washington,
                   D.C.: January 1995).




                   Page 7                                                      GAO-03-903R Core Financial Systems
and planned systems with the agencies and obtained confirmations,
corrections, or additional facts, but we did not independently validate or
verify the information obtained or provided. We conducted our work from
April to June 2003 in Washington, D.C.


We are sending copies of this letter to the Ranking Minority Member,
Subcommittee on Government Efficiency and Financial Management,
House Committee on Government Reform and the Chairman and Ranking
Minority Member, Subcommittee on Financial Management, the Budget
and International Security, Senate Committee on Governmental Affairs.
Copies will be made available to others upon request. This letter will also
be available at no charge on the GAO Web site at http://www.gao.gov.

If you have any questions about this letter, please contact me at (202) 512-
9450 or thompsons@gao.gov or Kay Daly at (202) 512-9312 or
dalykl@gao.gov. Key contributors to this letter were Adrien Atwood and
Debra David. We look forward to working with you and your staff on
related financial management systems issues.

Sincerely yours,




Sally E. Thompson
Director, Financial Management
 and Assurance


Enclosures I and II




Page 8                                        GAO-03-903R Core Financial Systems
Page 9   GAO-03-903R Core Financial Systems
Enclosure I



Current and Planned Core Financial Systems at 20 CFO Act Agencies

                                                Core financial systems as of September 30, 2002

                                                                                 COTS /
                                                      Vendor and software        modified COTS /
Agency           Name                                 name                       custom                 Implementation date
Agency for       Mission Accounting and Control       MACS-NA/Phoenix-AMS        MACS-Custom /          MACS- June 1982/
International    System (MACS) used overseas /        Momentum                   Phoenix- COTS          Phoenix-December 2000
Development      Phoenix
Department of    Commerce Administrative              CAMS- Savantage            CAMS-Modified          Various (see endnotec)
Commerce         Management System (CAMS)c            Solutions, Inc (Formerly   COTS/Various (see
                                                      RELTEK) Federal            endnote c)
                                                      Financial Management
                                                      System (FFMS)/Various
                                                      (see endnotec)
Department of    Departmental Integrated              NA                         Custom                 April 1986
Energy           Standardized Core Accounting
                 System (DISCAS)



Department of    Federal Financial System (FFS) for   AMS Federal Financial      FFS-Modified COTS /    FFS-1992 / ABACIS –
the Interior     7 bureaus/offices and ABACIS for     System /ABACIS-NA          ABACIS-Custom          early 1980s
                 the other 2 bureaus




Department of    Department of Labor Accounting       Keane Federal Success      Modified COTS          October 1989
Labor            and Related Systems (DOLAR$)

Deparmentt of    Departmental Accounting and          DAFIS-NA /Delphi –         DAFIS - Custom/        1982
Transportation   Financial Information System         Oracle U.S. Federal        Delphi - Modified
                 (DAFIS) / Delphi                     Financials                 COTS


Department of    Financial Management Systems         Oracle U.S. Federal        COTS                   January 2002
Education        Software (FMSS)                      Financials
Environmental    Integrated Financial Management      AMS Federal Financial      Modified COTS          1988
Protection       System (IFMS)                        System
Agency

Federal          Integrated Financial Management      Digital Systems Group      COTS                   October 1995
Emergency        Information System (IFMIS)           IFMIS
Management
Agency




                                          Page 10                                              GAO-03-903R Core Financial Systems
                                              Enclosure I




                      Planned core financial systems after September 30, 2002
Plans to
acquire                         Vendor of                        Target full
new          Name of            new system Planning              implementation                      Comments – mixed
system?      project/system     and software start date          date           Life cycle phase a   systems
Yes          AID plans to       AMS          July 2003           October 2005 b Testing phase
             replace MACS       Momentum
             with Phoenix
Yes,         CAMS               RELTEK          1994             October 2003    Deployment phase
ongoing                         Federal
                                Financial
                                Management
                                System d

Yes          I-MANAGE           Oracle U.S.     March 1999       October 2004    Development         I-MANAGE program will
             Standard           Federal                                          phase               integrate financials with
             Accounting         Financials                                                           human resources, budget
             System (STARS)                                                                          formulation/execution,
                                                                                                     payroll, travel and
                                                                                                     procurement.
Yes          Financial and      To be           2004             2008            Business modeling   FBMS project will support
             Business           determined                                       and requirements    budget formulation, core
             Management                                                          phase               financial, acquisition, travel,
             System (FBMS)                                                                           personal property/fleet
                                                                                                     management, real property,
                                                                                                     financial assistance, and
                                                                                                     enterprise management
                                                                                                     information functions.
Yes          To be              To be           2nd quarter of   October 2006    Business modeling   DOL plans to implement a
             determined         determined      FY 2003                          and requirements    new managerial cost
                                                                                 phase               accounting system.
Yes,         Delphi             Oracle U.S.     1997             October 2003    Deployment phase    The Federal Aviation
ongoing                         Federal                                                              Administration is also in the
                                Financials                                                           process of implementing a
                                                                                                     labor distribution/cost
                                                                                                     accounting system.
No plans     NA                 NA              NA               NA              NA
to acquire
Yes          Financial          To be           October 2002     FY 2007         Business modeling   EPA also plans to replace its
             Replacement        determined                                       and requirements    EPAYS and CPARS payroll
             System (FinRS)                                                      phase               systems and its MARS
                                                                                                     reporting system in FY 2003.
No plans     NA                 NA              NA               NA              NA                  As of March 2003, FEMA is
to acquire                                                                                           part of the new Department
                                                                                                     of Homeland Security.




                                              Page 11                                          GAO-03-903R Core Financial Systems
                                            Enclosure I




(Continued From Previous Page)

                                                    Core financial systems as of September 30, 2002

                                                                                     COTS /
                                                          Vendor and software        modified COTS /
Agency             Name                                   name                       custom                 Implementation date
General Services   National Electronic Accounting and     NEAR-NA /Pegasys -         NEAR- Custom /         NEAR-1974 / Pegasys
Administration     Reporting (NEAR) / Pegasys             AMS Momentum               Pegasys- COTS e        Phase I- June 2000




Department of      HUD's Central Accounting Program       AMS Federal Financial      Modified COTS          October 1998 for
Housing and        System (HUDCAPS)                       System                                            implementation as
Urban                                                                                                       departmental general
Development                                                                                                 ledger

National           General Ledger Accounting System       NA                         Custom                 1970s
Aeronautics and    (GLAS) g
Space
Administration
Nuclear            Federal Financial System (FFS)         AMS Federal Financial      COTS                   May 2002
Regulatory                                                System i
Commission
National Science   Financial Accounting System            NA                         Custom                 April 2001
Foundation
Office of          Government Financial Information       AMS Momentum               COTS                   August 2002
Personnel          System (GFIS)
Management


Small Business     Joint Accounting and                   Oracle U.S. Federal        Modified COTS          October 2001
Administration     Administrative Management              Financials
                   System (JAAMS)
Social Security    Financial Accounting System            Keane Federal Success      Modified COTS          October 1993
Administration     (FACTS)



Department of      Central Financial Management           CFMS – AMS Federal         CFMS – COTS /          CFMS -1991
State              System (CFMS) /Regional                Financial System/RFMS -    RFMS - Modified
                   Financial Management System            AMS Momentum               COTSl
                   (RFMS) k
Department of      Central Accounting System (CAS) /      CAS – NA / FFIS–AMS        CAS - Custom / FFIS-   CAS-1976
Agriculture        Foundation Financial Information       Federal Financial System   Modified COTS
                   System (FFIS)




                                            Page 12                                              GAO-03-903R Core Financial Systems
                                              Enclosure I




                    Planned core financial systems after September 30, 2002
Plans to
acquire                         Vendor of                      Target full
new          Name of            new system Planning            implementation                       Comments – mixed
system?      project/system     and software start date        date           Life cycle phase a    systems
Yes,         Pegasys            AMS              May 1998      October 2002    Deployment phase     Phase II includes the
ongoing                         Momentum                                                            implementation of full
                                                                                                    accounts receivable, asset
                                                                                                    management and cost
                                                                                                    allocation by October 2004.
                                                                                                    Pegasys was the official core
                                                                                                    financial system at the end of
                                                                                                    October 2002.
Yes          HUD Integrated     To be            July 2003     March 2007      Business modeling    Legacy insurance systems at
             Financial          determined                                     and requirements     the Federal Housing
             Management                                                        phase scheduled to   Administration (FHA) to be
             Improvement                                                       begin in July 2003   integrated by December
             Project (HIFMIP)                                                                       2006. f
Yes          Integrated         SAP R/3          FY 2000       June 2003       Deployment phaseh
             Financial
             Management
             Program (IFMP)
No plans     NA                 NA               NA            NA              NA                   NRC implemented a COTS-
to acquire                                                                                          based cost accounting
                                                                                                    system in November 2002.j
No plans     NA                 NA               NA            NA              NA                   See endnote. j
to acquire
No plans     NA                 NA               NA            NA              NA                   A cost allocation module will
to acquire                                                                                          be added to GFIS with the
                                                                                                    first phase planned for
                                                                                                    implementation in September
                                                                                                    2003.
No plans     NA                 NA               NA            NA              NA
to acquire

Yes          Social Security    Oracle U.S.      June 2001 j   October 2003    Deployment phase
             Online             Federal
             Accounting and     Financials
             Reporting
             System
Yes,         Global Financial   AMS              June 1998     GFMS Domestic   Development
ongoing      Management         Momentum                       – FY 2005,      phase
             System (GFMS)                                     Overseas – FY
                                                               2006
Yes,         FFIS               AMS Federal      NR            October 2002    Deployment phase     Beginning in December 2003,
ongoing                         Financial                                                           agency will start process for
                                System                                                              next core system
                                                                                                    implementation.




                                              Page 13                                        GAO-03-903R Core Financial Systems
                                         Enclosure I




(Continued From Previous Page)

                                                 Core financial systems as of September 30, 2002

                                                                               COTS /
                                                       Vendor and software     modified COTS /
Agency             Name                                name                    custom                Implementation date
Department of      Financial Management System         AMS Federal Financial   Modified COTS         September 1995
Veterans Affairs                                       System




                                         Page 14                                           GAO-03-903R Core Financial Systems
                                          Enclosure I




                  Planned core financial systems after September 30, 2002
Plans to
acquire                     Vendor of                             Target full
new        Name of          new system Planning                   implementation                                 Comments – mixed
system?    project/system   and software start date               date           Life cycle phase a              systems
Yes        Core Financial   Oracle U.S.         June 1999         March 2006            Development              VA has also selected the
           and Logistics    Federal                                                     phase                    software to be used in the
           System (Core     Financials                                                                           logistics module of the core
           FLS)                                                                                                  financial system.
                                          Legend

                                          COTS – Commercial-off-the-shelf
                                          NA – Not applicable
                                          NR – No response

                                          Source: GAO compiled.
                                          a
                                           To help categorize the current status of agencies’ systems implementation, we used the following
                                          system development life cycle phases: (1) Business modeling and requirements includes developing
                                          complete systems requirements, establishing the “as is” model of the business processes, and
                                          meeting with stakeholders. (2) Analysis and design addresses transforming the systems requirements
                                          into a design of the "to be" system. This phase would also include evaluation of vendor proposals and
                                          vendor selection. (3) Development involves the development and modification of the system software.
                                          (4) Testing covers verifying that all requirements have been correctly developed and tested and
                                          ensuring all identified defects have been documented and corrected. (5) Deployment includes training
                                          end users, converting data, putting the software into service, verifying that all requirements have been
                                          correctly implemented, and planning for the operations and support phase of software components. (6)
                                          Operations and support involves the monitoring of product integrity and ensuring the ongoing
                                          completeness and correctness of the system.
                                          b
                                           AID and the State Department have agreed to integrate their separate Momentum applications into
                                          one application with two databases with full implementation expected in October 2005 following
                                          deployment of Phoenix to AID’s overseas offices.
                                          c
                                           The agencies and bureaus of the Department of Commerce, which had not implemented CAMS as of
                                          September 30, 2002, used other core financial systems, including custom systems (implemented in
                                          the 1980s), AMS Momentum (implemented in 2002) and cross-servicing with the Department of the
                                          Interior.
                                          d
                                           Three Commerce bureaus will not implement CAMS, including the U.S. Patent and Trademark Office,
                                          the International Trade Administration, and the National Technical Information Service.
                                          e
                                           According to GSA, all enhancements to the product were added to the baseline product by the
                                          vendor.
                                          f
                                              Peoplesoft general ledger module implemented at FHA in October 2002.
                                          g
                                           NASA has 9 centers, its headquarters offices and the Jet Propulsion Laboratory, each of which had its
                                          own custom-built financial systems until each center’s conversion to the new core financial system in
                                          FY 2003.
                                          h
                                           See U.S. General Accounting Office, Business Modernization: Improvements Needed in Management
                                          of NASA’s Integrated Financial Management Program, GAO-03-507 (Washington, D.C.: Apr. 30,
                                          2003).
                                          i
                                              NRC's service provider for FFS is the Department of the Interior's National Business Center.
                                          j
                                              This agency will adopt the Department of the Interior’s personnel/payroll services in FY 2004.




                                          Page 15                                                         GAO-03-903R Core Financial Systems
Enclosure I




k
    The solicitation for the software purchase was released in June 2001.
l
    CFMS accounts for State’s domestic financial activity, while RFMS is for overseas activity.
m
    State uses a custom disbursement module in its regional financial management system.




Page 16                                                          GAO-03-903R Core Financial Systems
Enclosure I




Page 17       GAO-03-903R Core Financial Systems
Enclosure II



Current and Planned Core Financial Systems at 4 CFO Act Agencies

                                                          Core financial systems as of September 30, 2002

                                                                                 COTS /
                                                             Vendor and          modified COTS /
Agency            Subagency       Name                       software name       custom               Implementation date
                                                      b
Department of                     100 core systems           Various             Various              1960s, 1970s, 1980s,
Defense                                                                                               and 1990s




Department of     DOJ             No consolidated core       NA                  NA                   NA
Justice c                         financial system




Department of     BOP             Financial Management       NA                  Custom               October 1999
Justice                           Information System
                                  (FMIS2)
Department of     OJP             Integrated Financial       Digital Systems     Modified COTS        December 1998
Justice                           Management                 Group- Financial
                                  Information System         Management
                                  (IFMIS)                    System Software
Department of     INS             Financial Accounting       FACS – NA/          FACS – Custom        October 1997
Justice                           Control System             Savantage           /FFMS – Modified
                                  (FACS)/Federal             Solutions, Inc.     COTS
                                  Financial Management       (formerly REL-
                                  System (FFMS)              TEK) -FFMS
Department of     FPI             Millennium System          SAP                 Modified COTS        May 2000
Justice



Department of     DEA             Federal Financial          Cross-serviced by   Modified COTS        October 1998
Justice                           System (FFS)               DOI
Department of     FBI             Financial Management        Geac Computer      Modified COTS        October 1985
Justice                           System (FMS)               Corporation
                                                             Limited, Geac
                                                             Enterprise Server
                                                             E Series
Department of     OBDs            FMIS2                      NA                  Custom               December 2002
Justice




                                          Page 18                                           GAO-03-903R Core Financial Systems
                                        Enclosure II




                      Planned core financial systems after September 30, 2002
                                Vendor of
Plans to         Name of        new system                 Target full
acquire new      project /      and           Planning     implementation                            Comments - mixed
system?          system         software      start date   date                 Life cycle phase a   systems
Yes              Not yet        To be         Varies       To be determined     Business modeling    Implementation of a core
                 decided        determined                                      and requirements     financial system(s) for
                                                                                phase                DOD is a long-term effort
                                                                                                     due to the significant
                                                                                                     number of systems and
                                                                                                     complexity of the
                                                                                                     Department.
Yes              United         To be         April 2002   October 2007         Analysis and         COTS award projected –
                 Financial      determined                                      design phase         July 2003. Implementation
                 Management                                                                          and integration contract to
                 System                                                                              follow. UFMS includes
                 Project                                                                             integrated procurement &
                 (UFMS)                                                                              e-travel solutions.
Part of UFMS     UFMS           To be         October      October 2006         Analysis and
Implementation                  determined    2004                              design phase

Part of UFMS     UFMS           To be         October      October 2006         Analysis and
Implementation                  determined    2004                              design phase


NA               NA             NA            NA           NA                   NA                   In March 2003, INS was
                                                                                                     transferred to the
                                                                                                     Department of Homeland
                                                                                                     Security.

No plans to      NA             NA            NA           NA                   NA                   Current COTS satisfies
acquire                                                                                              commercial/manufacturing
                                                                                                     business requirements
                                                                                                     unique to FPI. FPI is not
                                                                                                     included in UFMS Project.
Part of UFMS     UFMS           To be         October      October 2005         Analysis and
Implementation                  determined    2003                              design phase
Part of UFMS     UFMS           To be         August       October 2004         Analysis and
Implementation                  determined    2002                              design phase



Part of UFMS     UFMS           To be         October      October 2007         Analysis and         Also supports the Working
Implementation                  determined    2005                              design phase         Capital Fund and Asset
                                                                                                     Forfeiture Fund/Seized
                                                                                                     Asset Deposit Fund
                                                                                                     reporting entities.




                                        Page 19                                           GAO-03-903R Core Financial Systems
                                        Enclosure II




(Continued From Previous Page)
                                                        Core financial systems as of September 30, 2002

                                                                               COTS /
                                                           Vendor and          modified COTS /
Agency              Subagency    Name                      software name       custom               Implementation date
Department of       USMS         Standardized Tracking     STARS -ieFARS -     STARS –Modified   October 1997
Justice                          Accounting and            ACS Government      COTS/FMS – Custom
                                 Reporting System          Solutions Group
                                 (STARS) at                /FMS – NA
                                 headquarters, Financial
                                 Management System
                                 (FMS) used by district
                                 offices
Department of       HHS          NA                        NA                  NA                   NA
Health and Human
Services d


Department of       PSC          CORE                      Arthur Young–       Modified COTS        1992
Health and Human                                           Federal Success
Services
Department of       FDA          General Ledger            NA                  Custom               FY1968-FY1969
Health and Human                 Accounting System
Services                         (GLAS)

Department of       CDC          Total On-Line             Arthur Young–       Modified COTS        1991
Health and Human                 Processing System         Federal Success
Services                         (TOPS)
Department of       NIH          Central Accounting        NA                  Custom               Mid-1970s
Health and Human                 System (CAS)
Services



Department of       CMS          Financial Accounting      Arthur Young–       Modified COTS        1980s
Health and Human                 and Control System        Federal Success
Services                         (FACS)




Department of the   Treasury     No consolidated core      NA                  NA                   NA
Treasury e                       financial systemf
Department of the   BPD          Federal Financial         American            COTS                 October 1994
Treasury                         System (FFS)              Management
                                                           Systems (AMS)
                                                           Federal Financial
                                                           System (FFS)




                                        Page 20                                            GAO-03-903R Core Financial Systems
                                         Enclosure II




                      Planned core financial systems after September 30, 2002
                                Vendor of
Plans to         Name of        new system                 Target full
acquire new      project /      and           Planning     implementation                            Comments - mixed
system?          system         software      start date   date                 Life cycle phase a   systems
Part of UFMS     UFMS           To be         October      October 2005         Analysis and
Implementation                  determined    2003                              design phase




Yes              Unified        Oracle U.S.   July 2001    April 2007           Testing phase
                 Financial      Federal
                 Management     Financials
                 System
                 (UFMS)
Part of the      UFMS           Oracle U.S.   January      April 2007           Development
UFMS                            Federal       2004                              phase
implementation                  Financials
Part of the      Financial      Oracle U.S.   July 2003    May 2005             Development          FES is the FDA-named
UFMS             Enterprise     Federal                                         phase                project that is part of the
implementation   Solutions      Financials                                                           full UFMS implementation.
                 (FES)
Part of the      UFMS           Oracle U.S.   October      October 2004         Development
UFMS                            Federal       2002                              phase
implementation                  Financials
Part of the      NIH’s          Oracle U.S.   1999         October 2002         Deployment phase     NBRSS is the NIH-named
UFMS             Business and   Federal                                                              project that is part of the
implementation   Research       Financials                                                           full UFMS implementation.
                 Support
                 System
                 (NBRSS)
Part of the      Healthcare     Oracle U.S.   2000         September 2007       Development          HIGLAS is a second
UFMS             Integrated     Federal                                         phase                component of UFMS.
implementation   General        Financials                                                           HIGLAS is a separate core
                 Ledger                                                                              system from the one used
                 Accounting                                                                          by other subagencies.
                 System
                 (HIGLAS)
No plans to      NA             NA            NA           NA                   NA
acquire
Yes              Oracle U.S.    Oracle U.S.   NR           October 2002         Deployment phase     BPD implemented the
                 Federal        Federal                                                              Compusearch acquisition
                 Financials     Financials                                                           application “Prism” in
                                                                                                     January 2002




                                         Page 21                                           GAO-03-903R Core Financial Systems
                                        Enclosure II




(Continued From Previous Page)
                                                       Core financial systems as of September 30, 2002

                                                                              COTS /
                                                          Vendor and          modified COTS /
Agency              Subagency    Name                     software name       custom                Implementation date
Department of the   ATF          Financial Resources      AMS Momentum         Modified             October 1999
Treasury                         Desktop (FRED)                                COTS


Department of the   BEP          BEP Management           SSA Global           COTS                 1984
Treasury                         Information System       Technologies
                                 (BEPMIS)                 CAS
Department of the   USCS         FFS and SAP R/3          AMS FFS /SAP R/3     FFS -Modified        FFS - October 1992
Treasury                         Phase I                                       COTS/SAP -           /SAP - April 2002
                                                                               Modified COTS




Department of the   DO           FFS                      AMS FFS              COTS                 BPD began cross-
Treasury                                                                                            servicing DO in
                                                                                                    February 2001


Department of the   FinCEN       FFS/ SAP R/3 Phase I     AMS FFS /            FFS -Modified        FinCEN is cross-
Treasury                                                  SAP R/3              COTS/SAP -           serviced by USCS
                                                                               Modified COTS

Department of the   IRS          Automated Financial      AMS FFS              Modified COTS        October 1992
Treasury                         Systems (AFS)




                                        Page 22                                           GAO-03-903R Core Financial Systems
                                            Enclosure II




                    Planned core financial systems after September 30, 2002
                              Vendor of
Plans to       Name of        new system                   Target full
acquire new    project /      and             Planning     implementation                                  Comments - mixed
system?        system         software        start date   date                      Life cycle phase a    systems
NA                                                                                                         This bureau was
                                                                                                           transferred to the
                                                                                                           Department of Justice in
                                                                                                           2003.
No plans to    NA             NA              NA           NA                        NA
acquire

Yes, ongoing   SAP R/3        SAP R/3         1995         Release II is             Deployment phase      This bureau was
               Release II                                  scheduled for                                   transferred to DHS.
               and III                                     implementation in
                                                           October 2003 and                                An accounts receivable
                                                           will include                                    subsidiary ledger that will
                                                           procurement and                                 support the Automated
                                                           asset management                                Commercial Environment
                                                           capabilities.                                   (ACE) is scheduled for
                                                                                                           implementation in March
                                                           The scheduled                                   2004, but this date is
                                                           implementation date                             subject to review by DHS.
                                                           for Release III is
                                                           October 2004, but
                                                           this date is subject to
                                                           review by the
                                                           Department of
                                                           Homeland Security
                                                           (DHS).
Yes            Oracle U.S.    Oracle U.S.     October      BPD will begin            Testing phase         BPD will begin cross-
               Federal        Federal         2003         cross-servicing DO                              servicing DO to use the
               Financials     Financials                   using Oracle                                    Compusearch acquisition
                                                           in October 2003.                                application “Prism” in
                                                                                                           October 2003.
No plans to    NA             NA              NA           NA                        NA                    USCS staff use FFS and
acquire                                                                                                    SAP R/3 to perform
                                                                                                           FinCEN’s financial
                                                                                                           management activities.
Yes            Integrated     SAP R/3         October      Release 1:                Testing phase         Release 1 will include core
               Financial                      2000         October 2003                                    financial functionality.
               System
                                                                                                           Release 2, to be
                                                                                                           implemented in August
                                                                                                           2005, will include asset
                                                                                                           management functionality.




                                            Page 23                                                  GAO-03-903R Core Financial Systems
                                       Enclosure II




(Continued From Previous Page)
                                                      Core financial systems as of September 30, 2002

                                                                             COTS /
                                                         Vendor and          modified COTS /
Agency              Subagency    Name                    software name       custom               Implementation date
Department of the   FMS          FFS                     AMS FFS             COTS                 BPD began cross-
Treasury                                                                                          servicing FMS in June
                                                                                                  1999



Department of the   OTS          FFS                     AMS FFS             COTS                 BPD began cross-
Treasury                                                                                          servicing OTS in
                                                                                                  October 2002



Department of the   USSS         Financial Management    Keane Federal       Modified COTS        October 1988
Treasury                         and Accounting System   Success
                                 (FMAS)




                                       Page 24                                        GAO-03-903R Core Financial Systems
                                     Enclosure II




                 Planned core financial systems after September 30, 2002
                            Vendor of
Plans to      Name of       new system                   Target full
acquire new   project /     and           Planning       implementation                                       Comments - mixed
system?       system        software      start date     date                        Life cycle phase a       systems
Yes           Oracle U.S.   Oracle U.S.   February       BPD will begin              Testing phase
              Federal       Federal       2003           cross-servicing FMS
              Financials    Financials                   in October 2003
                            (cross-
                            serviced
                            by BPD)
Yes           Oracle U.S.   Oracle U.S.   NR             BPD will begin              Business modeling
              Federal       Federal                      cross-servicing OTS         and requirements
              Financials    Financials                   in October 2004             phase
                            (cross-
                            serviced
                            by BPD)
Yes           Enterprise    Oracle U.S.   August         April 2004                  Development              This bureau was
              Financial     Federal       2001                                       phase                    transferred to DHS in
              Management    Financials                                                                        March 2003.
              System
              (EFMS)

                                     Legend

                                     COTS - Commercial-off-the-shelf
                                     NA - Not applicable
                                     NR - No response
                                     Source: GAO compiled.
                                     a
                                      To help categorize the current status of agencies’ systems implementation, we used the following
                                     system development lifecycle phases: (1) Business modeling and requirements includes developing
                                     complete systems requirements, establishing the “as-is” model of the business processes and meeting
                                     with stakeholders. (2) Analysis and design addresses transforming the systems requirements into a
                                     design of the "to-be" system. This phase would also include evaluation of vendor proposals and
                                     vendor selection. (3) Development involves the development and modification of the system software.
                                     (4) Testing covers verifying that all requirements have been correctly developed and tested and
                                     ensuring all identified defects have been documented and corrected. (5) Deployment includes training
                                     end users, converting data, putting the software into service, verifying that all requirements have been
                                     correctly implemented and planning for the operations and support phase of software components.
                                     (6) Operations and support involves the monitoring of product integrity and ensuring the ongoing
                                     completeness and correctness of system.
                                     b
                                       DOD is still reviewing and analyzing its systems inventory as part of its business systems
                                     modernization and therefore, this list may or may not be complete. This list was compiled from DOD’s
                                     “As Is Systems Inventory” as of October 31, 2002.
                                     c
                                       Department of Justice: BOP: Bureau of Prisons, OJP: Office of Justice Programs, INS: Immigration
                                     and Naturalization Service, FPI: Federal Prisons Industries, Inc, DEA: Drug Enforcement Agency, FBI:
                                     Federal Bureau of Investigation, OBDs: Offices, Boards and Divisions, USMS: United States Marshals
                                     Service.
                                     d
                                      Department of Health and Human Services: PSC: Program Support Center, FDA: Food and Drug
                                     Administration, CDC: Centers for Disease Control and Prevention, NIH: National Institutes of Health,
                                     CMS: Centers for Medicare and Medicaid Services.




                                     Page 25                                                       GAO-03-903R Core Financial Systems
           Enclosure II




           e
            Department of Treasury: BPD: Bureau of the Public Debt, ATF: Alcohol, Tobacco and Firearms, BEP:
           Bureau of Engraving and Printing, USCS: United States Customs Service, DO: Departmental Offices,
           FinCEN: Financial Crimes Enforcement Network, IRS: Internal Revenue Service, FMS: Financial
           Management Service, OTS: Office of Thrift Supervision, USSS: United States Secret Service.
           Treasury’s other bureaus, not included above, used a variety of COTS packages.
           f
            Although Treasury does not have an agencywide core financial system, it does utilize automated tools
           and a central data warehouse for analysis and reporting.




(198191)   Page 26                                                     GAO-03-903R Core Financial Systems
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