Building a Standardized DHS FoundationFederal Financial Management ConferenceWashington DC

David NorquistChief Financial OfficerMarch 11, 2008

Largest federal re-organization since DoD

Formed out of 22 agencies

Inherited:

• 100 resource management systems

• 18 material weakness conditions

• 30 reportable conditions

Did not inherit a common policy

E Pluribus Unum

Procure-to-Pay Business ProcessThree department examples

InvoicingContractingContractExecution PaymentRequisition

InvoicingContracting Contract

ExecutionPaymentRequisition

Payment InvoicingContracting

ContractExecutionRequisition

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Payment

Travel Business Process

Existing variations at DHS: Paper-based processes Automatic authorization – Travel Manager Blended solution – software working with accounting

FUTURE STATE: Implementing FedTraveler.com

Receive Travel Authorization Number

Submit forSupervisor Approval

Submit for Accounting Approval

Get Cost Estimate

Obtain TicketsThrough Travel Agency

Receive Reimbursement

Submit Expenses for Supervisor Approval

Submit Expenses for Accounting Approval

Create Expense Report

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What Does it Take to Standardize Processes?

Policies need to be defined and written

People need to be trained

Processes need to be institutionalized

Systems need to reinforce the controls

Assurance teams need to validate the process is working

Addressing Material Weaknesses

FY 200625 material weakness conditions

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Military Civilian Components

Material Weaknesses USCG OCFO CBP FEMA ICE MGMTUS Visit

TSA FLETC

Financial Management

Financial Reporting

Financial Systems Security

Fund Balance With Treasury

Capital Assets & Supplies

Actuarial & Other Liabilities

Budgetary Accounting

Addressing Material Weaknesses

FY 200716 material weakness conditions

Military Civilian Components

Material Weaknesses USCG OCFO CBP FEMA ICE MGMTUS Visit

TSA FLETC

Financial Management

Financial Reporting

Financial Systems Security

Fund Balance With Treasury

Capital Assets & Supplies

Actuarial & Other Liabilities

Budgetary Accounting

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The Way Ahead in 2008

Issue second ICOFR Playbook – expand beyond financial management

Another round of A-123 reviews – stronger assurance statement

Issue Financial Management Policy Manual New Hire Orientation (March)

CFO Mentorship Program (June) Continue to implement eTravel Establish financial system baseline

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