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 firstname.lastname@example.org or Kay Daly at (202) 512-9312 or email@example.com. 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. 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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)