FIRSTAGA

May 13, 2009

Integrityfrom Merriam-Webster

Firm adherence to a code of especially moral or artistic values: incorruptibility

An unimpaired condition: soundness The quality or state of being complete or

undivided: completeness

Synonyms, see honesty

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What We Want to Talk About

What is FIRST? Why do we need it? What are the its key concepts? What benefits can we expect and when? What are some of the system characteristics? How do we get ready? My challenge: Can I change your mind?

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What IS FIRST?

USSGLDatabase:

SID

GFRS

USSGL basedReporting: GTAS

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What We Will Collect

FMS will collect quarterly USSGL-based trial balances, similar to FACTS II but expanded to cover proprietary USSGL accounts and all fund symbols.

FMS will edit the inbound trial balances using the central accounting data, Bureau of Public Debt data on investments and borrowings, and rules of the USSGL.

FMS will provide instant and actionable feedback to agencies and their auditors.

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Why do we need FIRST?

• Reporting by agencies to Treasury and OMB is:

• inconsistent• redundant

• It emphasizes reporting rather than accounting

• Results are bad

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Why do we need FIRST?Example of a Bad Result: Net Outlays

Gross disbursements Less: Offsetting Collections Equal: Net Outlays Less: Receipts Equal: Deficit

FY 2008: Net Outlays reported by agencies via monthly 224/1219/1220 differed from SBR outlays by $162 billion government-wide.

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Why do we need FIRST?Conceptual Issues

Our model doesn’t work

Primacy of the Financial Report of the U. S. Government Standards for the “One” entity that matters Recognition of the Budget Process Constancy of purpose The clean opinion temptation

True transparency

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Why do we need FIRST?More specific reasons

FY 2008 eliminations differences Non-expenditure transfers: $25 billion Buy-sell: $31 billion

The “plug”: $30 billion

Shared responsibility, in case you think it’s just an FMS problem

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Why we need FIRST3 types of inconsistency

1. Inconsistent data in Agency Statements vs. the Financial Report of the U. S. Government. (GFRS addresses this type)

2. Inconsistent data in agency financial statements vs. agency monthly reporting to Treasury and Warrant and NET transactions (Not addressed)

3. Agency financial statement data not consistent with USSGL. (Not addressed)

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Current Situation:FMS makes $1 trillion worth of JVs for the FR each

fall.Where will the next problem pop out?

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FIRST-Key Concepts The Financial Report of the U. S. Government has primacy over

component financial statements.

Preparation of financial statements is an accounting function, not a political one. We must use accounting principles. We will support the Financial Report of the U. S. government with trial balances.

The USSGL is the common accounting language we all speak or should speak. Therefore, the collection of USSGL-based trial balances will be the key to our future success.

We will replace FACTS I, FACTS II, IFCS and the input part of IRAS, reducing the number of agency reports and standardizing them.

We will validate and edit every incoming trial balance using every tool available (USSGL rules, central accounting system, BPD data, etc) and provide instant feedback.

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Business as System

GWA Internal Processes

Inputs

Agency Statements

FASAB, TFM, etc

Customers

President, CongressCitizens

Outputs

FR

A-136

USSGL-based trial balances Detailed edit reports

Feedback

Accurate datasuitable forAnalysis.Predictivecapability

Today, the stuff coming in from the left is bad. We need to help fix it.Agencies supply components that don’t fit the completed machine.

Current StovepipesU

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FACTS I IFCS IRAS GFRS TROR

FACTS IISTAR

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133

Future Look

USSGLDatabase:

SID

GFRS

USSGL basedReporting: GTAS

GWAMP/USSGL

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Trial Balance Example 1010 d 700 < 4119 d 1000 < 1750 d 300 4170 c 100 < 1759 c 15 4610 c 400 2110 c 300 4901 c 300 3101 c 1000 < 4902 c 200 3103 d 100 < 3107 d 500 5700 c 500 6100 d 200 6710 d 15 8801 c 300 8802 d 300

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Information Sharing—FIRST Steps

GWA Account Statement

UCAD

FACTS II Edit report

GWA’s Business Process Group

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Expected Results

USSGL Compliance Reduced elimination differences More consistent reporting from each agency that

FMS can read, interpret, and consolidate Elimination of obvious and embarrassing

discrepancies Better information for decision-making Eventually, a predictive capability

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System Characteristics

• Supermaf with TAS attributes• A trial balance for every Treasury Account Symbol• Expenditure accounts like FACTS II, plus receipt accounts, deposit funds, clearing accounts (12,000 per quarter)• Beginning and ending balances plus all USSGL attributes• Bulk files only• CGAC format• Instant and usable feedback

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System Characteristics

Ready for testing summer 2011 Open for practice all the time after that Agencies must successfully transmit bulk files Ready for production first quarter FY 2012

(January 2012)

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Improved FR Data Edits

Agency Accounting

Systems

Financial Report of the U. S.

GovernmentAgency Financial

Statements

Feedback loop

USSGLDatabase

GFRS

USSGL basedReporting

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New Process

FMS OMB

President’s Budget

Standard General Ledger

FIRST

FMS 2108 SF 133 Program and FinancingSchedule

Federal Agency

Treasury Annual Reporting

Central Accounting

System Edits

GFRS

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Government-wide Benefits Takes advantage of GWAMP

Streamline reporting requirements on agencies

Focus on accounting, not reporting

Improved quality of financial information

Ease of use of the USSGL for agencies

Logical, long range approach that attacks core problems (i.e., intra-gov eliminations & budgetary vs. proprietary data consistency)

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Getting Ready

Try to send consistent data to FMS. This will force you to communicate within your agency.

Use the FACTS II bulk, and generate FACTS II trial balances from your system.

Become USSGL compliant. Stop posing and commit!!!

Begin using UCAD and Account Statement

Attend FIRST forums and/or training class

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Information

FIRST•GTAS -- http://www.fms.treas.gov/gtas•USSGL -- http://www.fms.treas.gov/ussgl•GWA – https://www.gwa.gov

•Jeff Hoge -(202) 874-6179 jeffrey.hoge@fms.treas.gov

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