Financial Management Transformation

FSA Project Status

June 5th, 2013

Doug Lloyd

Financial System Authority Office of the Comptroller General of Canada

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Objective of the session

• Mandate, Vision and Services

• Deliverables (Progress, Status and Next Steps)

• Common Enterprise Data Initiative (CEDI)

• Common Financial Management System

Configuration (FM-SC)

• Common Financial Management Business

Process (FM-BP) Initiative

• Transformation Approach & Timeframe

• Questions and Discussion

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FSA Vision and Services

FMT Team and Key Partners

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Patricia Sauvé-McCuan

Assistant Comptroller General,

FMT

Doug Lloyd

Executive Director, FSA

Gary Doucet

Executive Director, FMT

Diane Peressini

Senior Director, FMT

Partners

•OCG Financial Management Sector (Tom Scrimger, ACG)

•Other TBS sectors (OCHRO, CIOB, EMS)

•PWGSC (SSI, RG)

•Shared Services Canada

•DFMS Cluster Groups (IFMS, Oracle, GX, FreeBalance, CDFS)

•Departments & Agencies (including HRDC, SDAs)

•Private Sector Expertise

Common Enterprise Data Initiative

(CEDI)

CEDI Outcomes

• CEDI provides the foundational structure to collate

meaningful financial and material information across

government.

• Target outcomes for CEDI continue to include:

– Better information and improved financial

management services.

– Help address long standing operational and reporting

inefficiencies.

– Enabler for open data.

Strategic Environment

Continue emphasis on convergence towards common (processes, systems, information).

• FM Transformation, ASR, SOR, DRAP,

• HRSDC SAP build, …

CEDI provides guidance on common information needs and strategic requirements to organizations and projects building common solutions.

Increasing demands for more relevant and timely information supporting GC-wide financial analysis and resource management.

• CIOB – IT expenditure reporting

• EMS – How much is spent on policy development compared to front-line service delivery?

• Open Data, …

CEDI works with stakeholders to define new information needs and propose solutions, and (as appropriate) issues requirements and data standards to support implementation.

Strategic Direction (Governance)

• Guided by a target-state model, CEDI supports standardization of financial information by:

– Developing and issuing data standards,

– Providing guidance to key initiatives (e.g. HRSDC), and

– Providing a framework to help enable Open Data initiatives.

CEDI Approach

Issue data standards

(e.g. vendor, customer, DCOA, etc.)

Guidance to initiatives

(information and reporting requirements and capabilities)

FM Transformation Open Data

ASR,SOR, DRAP,…

Support Open Data

(data definitions and semantics, identify authoritative sources)

Financial Information Model defines:

• The scope of financial and related non-financial information.

• What each piece of information means.

• Requirements for common data elements and identifiers.

• Authoritative sources for standard data elements.

Target-State

Financial Information Model

FM-BP

CEDI

Information model integrates with FM-BP process model, and FM-SC requirements model.

Status of CEDI Data Standards

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Approval Step

DCOA Standard

and Line Object

Guideline

Vendor

Record

Customer

Record

Materiel Coding

(Procurement Item

Classification)

CFO Consultation Jun 2011 Mar 2012 Jan/Feb 2013

DCC Sep 2011 May 2012 Apr/May 2013

POC Nov 2011 May 2012 Apr/May 2013

Approval Mar 2012 Jun 2012 May/Jun 2013

Effective Date Apr 2012 Jul 2012 Apr 2014

Visit www.gcpedia.gc.ca/wiki/CEDI for draft standards and

background documentation.

Information Model

• The Information Model must address:

– Enterprise and GC-wide information needs

– Policy driven process and control requirements

– Interoperability requirements (information crossing system and organizational boundaries)

– Supporting common business processes and common system configurations

• The Information Model would be a ‘living document’ – continually being refined and updated to meet the requirements of the stakeholders.

– The scope of creating the entire Information Model at once is not possible given the immediate need and the available resources. The most relevant sections, including leveraging previous sections of CEDI, would provide the baseline.

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CEDI going forward:

The Information Model

• The Information Model will be the repository for enterprise level

business and information needs that will be supported operationally

through common processes and common systems

– Data components would mean one thing across all of Government

allowing apples to apples comparisons for open Government

• The information model will define the data elements that describe

financial and related non-financial components of the GC (defining

unambiguously concepts of materiel, programs, funds, organization,

products and services) and document associated business needs and

requirements that are important to the Enterprise

• The Information Model will also help define that data components can

only be used for their intended purpose

– A key tenant of being able to do Open Data Initiative is that

customization of data elements cannot be done at the

Departmental level

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Common Financial Management

Business Process (FM-BP)

Initiative

The Common FM-BP Initiative

Goal:

To develop an integrated framework of ‘should be’ common processes that standardize and modernize the delivery of financial management

Approach:

OCG sponsored in collaboration with departments and agencies, financial systems clusters, policy authorities and service providers

Deliverables:

• Guidelines which will provide: Standardized process definitions

– System- independent, modular, interoperable

– Common to all departments and agencies

– Describes roles and responsibilities in detail

“RACI” data analysis includes identification of:

– Responsible, Accountable, Consulted, and Informed resources; and

– Authoritative data sources

Process Flows

– Flow diagrams

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FM-BP models

Planning Budgeting & Forecasting

• Manage Planning & Budgeting

• Manage Forecasting & Budget Review

Revenue & Accounts Receivable

• Manage Revenue, Receivables & Receipts

• Manage Interdepartmental Settlements

• Manage Collection of Overdue Receivables

Expenditure & Accounts Payable

• Manage Procure to Payment

• Manage Travel

• Manage Other Payments

• Manage Distribution and Maintenance of Acquisition Cards

HR/Finance Interactions

• Pay Administration

Materiel/Finance Interactions

• Manage Other Capital Assets

• Manage Real Property

• Manage Inventory

Transfer Payments

• Manage Grants & Contributions

Data

• Manage Vendor Master Data File

• Manage Delegation of Financial and Spending Authorities

• Manage Departmental Chart of Accounts

• Manage Customer Master Data File

Integration

• Manage Post-payment Verification

• Manage Financial Close

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• Increasing momentum towards standardization (FM-BP, CEDI, FM-SC); progress is hampered by decentralized current-state model.

• Redundant investments in process and system changes continue; operational support costs remain high.

• Harvest and re-use solutions (e.g. HRSDC), and support initiatives building core capability.

• Assess alignment: continue, re-vector and halt on-going initiatives as appropriate. Initiate transparent performance measurement.

• Continue to tighten policy requirements for process and information.

• Leverage foundation to accelerate standardization and consolidation.

• Rigorous investment plan and performance measurement.

• Timely, agile and responsive data.

• Streamlined, and automated

processes.

• Consolidated systems platforms.

FMT - Transformation Approach

FMT - Timeframe

Fall 2013 Spring 2013

Communicate OCG FMT vision & way

forward (on-going)

Finalize engagement, governance & team

members

Prepare FMT Business Case for Back

Office Consolidation & Standardization

Secure related funding

Evolve FM Business Model

• Benchmarking

• Requirements input

SDA activities

Develop SAP SDA project plan &

onboarding strategy

Build SDA SAP configuration (April 2014)

Work with 1st Wave SDAs to onboard

Summer 2013

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The voyage ahead

Targe

t

Convergence & Standardisation

Serv

ice

Modern

isation

& M

etr

ics

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Questions?