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Department Of The Navy, Financial Management & Comptroller

Financial Management Transformation

DON Financial Management Transformation Vision and Goals

AUDIT

Continue full-scope audit with full transparency:• Prioritize and remediate findings• Strengthen internal controls • Improve the accuracy of financial reports

BUDGETARY REFORM

Rigorously execute the budget• Improve execution effectiveness & transparency• Reduce reimbursable work

CONSOLIDATION OF SYSTEMS

Consolidate and reduce feeder and general ledger systems• Modernize Navy ERP employing standard business

processes

Vision Primary Goals

• Operate one general ledger with a clean audit opinion.

• Standardize financial & other business processes with documented internal controls tested annually.

• Include enterprise risk management & zero based budgeting in POM development.

• Manage budget authority inside the general ledger -minimal reimbursables.

DON Financial Management Transformation Primary Goals & Focus Areas

AUDIT

1) Inventory and Operating Materials and Supplies (OM&S) – Account for 100% of assets and standardize process and controls for receipt, issuance, and disposal of materials

2) Real Property – Account for 100% of assets and standardize process and controls for acquisition, modification, and disposal of assets

3) Financial Reporting – Standardize financial reporting process using one compliant general ledger accounting system to produce the financial statements

4) Fund Balance With Treasury (FBwT) – Transition to Treasury shared services for payment and collections operations

BUDGETARY REFORM

5) Budgetary Reform – Enforce discipline in funds distribution process and intergovernmental transactions

CONSOLIDATION OF SYSTEMS

6) Business System Consolidation – Reduce accounting systems footprint7) Information Technology General Controls (ITGCs) – Implement risk management framework and

correct deficiencies in access and security controls over systems.

Overall Process Flow

BUPERS

CNIC

CNRF

COMPACFLT

DON/AAFSA

NAVAIR

NAVFACNIA

NAVSEA

NSWC

NAVSUPONR

SPAWAR

SSP

USFLTFORCOM

BUMED

USMC

Warrant

SF-132Authorized

Funds

Distribution

Distributed /

Allocated

$182.5B

IMPS

DIFMS /

DMAGMSCFMS

ERP DWAS

STARS-

HCM

STARS-

FL

NSMANSABRS

General Ledgers

Contractor

Vendor Pay

$104B

CIVPAY

$13B

MILPAY

$41B

Travel

$1.5B

Disbursements

Other

$9B

WCF

$30B

Working Capital Fund

$12.5B

Logistics

Total Disbursements: $181B

Asset Types

OM&S $70B

Inventory $70B

General Equipment

$262B

IUS $134M

Real Property

$29B

GE-Remainder

$6B

Accountable Property Systems

17 APSRs

Total Assets: $571B

Budgetary Reform

PROBLEM: Misalignments in posting information, source documentation, invoices and disbursements cause transactions to fail system matching processes

Logistics

ePS

Logistics NP2

CIVPERS

Travel

Treasury

DON Control Environment

TARGETED FUTURE STATE

Consolidate Business Systems

Implement Risk-based Approach

Create Highly

Controlled ITGCs

NFRs

GENERAL

LEDGER (11)

CONTRACT

WRITING

SYSTEMS (8)

MILPERS (0)

LOGISTICS IT

(4)

*Includes Enterprise-Wide NFRs

Notice of Findings and Recommendations (NFRs)

Acc

ess

Co

ntr

ol a

nd

Se

greg

atio

n o

f D

uti

es

90 12 32 20 154

57 9 26 11 103

0 0 0 0 0

29 6 12 6 53

311

CURRENT STATE

Audit: IT General Controls

PROBLEM: The DON has very poor controls over its IT systems.

Inte

rfac

e C

on

tro

l

Secu

rity

M

anag

emen

t

Co

nfi

gura

tio

n

Man

agem

ent

Consolidation of Systems: Notional Roadmap

Return to Standard (RTS)

NAVFAC

Plant Maintenance

T&E

Procure to Pay (P2P)

Iterative De-Customization

Treasury Disbursement (TDD)

Log IT / MILSTRIP

O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S

Mile

sto

nes

WC

F W

ave

1W

CF

Wav

e 2

WC

F W

ave

3SA

BR

E to

ER

PS4

HA

NA

Ass

essm

ents

an

d P

roce

ss Im

pro

vem

ent

FY19 FY20 FY21 FY22 FY23

Financial Reporting & FBwT

Inventory OM&S

Budget Reform

Acquire to Retire (Real Property / Asset Management)

Order to Cash / Supply Chain Management

WCF: Wave 2

WCF: Wave 1

WCF: Wave 3

SABRS to ERP

Consolidation of Systems: General Ledger

PROBLEM: The Department of the Navy’s (DON’s) business system environment is disparate, complex and has redundant functionality.

1 OCT 2018

1 OCT 2019

1 OCT 2020

1 OCT 2021

1 OCT 2022

Gen

eral

Fu

nd

sW

ork

ing

Cap

ital

Fu

nd

s (W

CF)

SABRS (Navy)

STARS - FL

DWAS

IMPS

SABRS

DIFMS

MSC-FMS

DON ERPSuite on HANA

Standardized DON ERP

• One of the largest vendors of enterprise resource planning (ERP) software

• The SAP ERP system enables its customers to run their business processes, including accounting, production, and human resources in an integrated environment.

• Ensures that information flows from one SAP component to another without the need for redundant data entry and helps enforce financial, process controls

Purchase Request

Treasury Reporting

Contract Writing

Payment Validation

Disbursement GL Posting

Navy ERPNavy ERP ePS Navy ERP

CARSContract Admin TBD

WAWF (Vendor Invoicing only)

CurrentState

FutureState

Treasury

D-Level

DON

IT Systems:

CFMS

PR Builder

Navy ERP

PRISM

ITIMP

SeaPort

SPS

MOCAS

CAPS-W

MOCAS

DDS

IMPS

DIFMS

SABRS

STARS-HCM

Navy ERP

CARS

DC

AS

FMS-NG

MSC-FMS

DWAS

STARS- FL

MOCAS (Contract Admin)

WAWF

OnePay

Navy ERP

ADS

PAM

Consolidation of Systems: Procure-to-Pay

Additional ERP Requirements

Requirements Areas

Finance Acquisitions Logistics LOG IT HR/WFR

P2P ATRFR &

FBwTMILSTRIPOM&SITGCOTC

Budgetary

ReformTDD

FAMs:

Processes:

Release Planning

Command Requirements

Requirements

Technical SMEs

Review/Design

Working Group

Priorities

Funding Requirements

Releases

Cross-Functional Review - Analysis

Requirements Gathering

Prioritization Release Schedule

Detailed Plans

New Requirements

Functional Area SMEs

Senior Board

Requirements Management Process

Backup

FY18 FY19 FY20 FY21 FUTURE

Navy ERP

STARS-HCM

IMPS

MSC-FMS

DWAS

DIFMS

As-Is Systems# of

NFRs

Planned Consolidation

System Consolidation: General Ledger (DON ERP)

15

AC/SOD IN CM

3 0 1

169 3 1 3

3 2 2

7 3 2 2

7 4 1 1

11

SM

151TOTAL 88 31 12 20

STARS-FL

19

14

13

12

SABRS 5 1 2 18

10

5 1 2 19

10

Consolidation to DON ERP

Consolidation to SABRS

OnePay

CHOOSE-

AIRRS

11

7 2 2 2

8 3 2 2

13

15

10

DCAS

SLDCADA 6 0 0 3 9

FISCAM IT Controls Family LegendAC: Access Controls SOD: Segregation of DutiesIN: Interfaces CM: Configuration Management SM: Security Management

• Consolidation Plan is Certified• Plan is funded in 2019• Plan is in 2020 Budget• Program has single-point

Command & Control (Single Resource Sponsor)

• Audit CAPs are integrated into Plan

11

12

14

6

System Consolidation: DON Contract Writing (ePS)

SEAPORT

ITIMP

SPS JPMO²

SPS

NAVAIR

SPS

NAVFAC

SPS

NAVSEA

SPS

NAVSUP

SPS

SPAWAR

SPS MSC

15

FY18 FY19 FUTUREAs-Is Systems

Planned Consolidation¹

Corrections must be made to current-state Contract

Writing Systems to enhance the audit posture of

the DON. Future-state system, ePS, must

encompass these controls.

AC/SOD IN CM

8 4 2 1

14

14

17

0 2 3 1

8 3 1 2

9 3 1 1

7 4 0 1

6 3 1 1

9 3 0 2

4 1 2

0

9 103TOTAL 57 26

²Not an application- but NFRs related to the program

office would be subject to correction until ePS transition.

SM

11

# of NFRs

Consolidation to ePS

TBD

10





NSIPS

RHS

IMAPMIS

NMCMPS

OAIS

EAIS

NROWS

FY18 FY19 FY20 FY21 FUTURE

Consolidation to NP2

As-Is Systems


System Consolidation: DON MILPERS (NP2)

NES

OPINS

0

0

0

0

0

0

0

0

0

0TOTAL

# of NFRs




DECKPLATE-ETR

FY18 FY19 FY20 FUTUREAs-Is Systems


Systems Consolidation: LOG IT (Multiple “Vectors”)

DECKPLATE-AIRRS

SEMS-SERMIS

NALCOMIS/NALCOMIS-OIMA

CMPro

CAV-ORM/CAV-WEB

Navy ERP

ROMIS

ETIMS

NDMS (MAXIMO)

NDMS-TAA

MATMF

MATMF (CSAS)

SUPDESK – (CSAS)

SUPDESK – (MSE)

Trident LDS

eRMS

EXMIS

FSM-3

OIS

RAPS

R-SUPPLY

CIRCUITS (UA)

CIRCUITS (UP)

FIS

ieFACMAN

iNFADS

MAXIMO

CMLS (MSC-LES-AFL)

SHIPCLIP (MSC-LES-AFL)

FACTS

53 TOTAL 29 12 6

13

AC/SOD IN CM

7 3 2 1

6 2 1 2 11

8 2 1 2 13

ALE

NAMSNAVSEA PLM

Navy ERP

NDMS

NMMES-TR

NOSS

TBD(Facilities)

TBD(MSC)

TBD

8 5 2 1 16

SM

6

# of NFRs


Issues: • Multiple Consolidation Plans• Plans NOT Certified• Plans NOT funded in 2019• Plans NOT Budgeted• Multiple Programs• Multiple Command & Control

Points• Audit CAPs are NOT

integrated into Plans

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