DFAS Update Steve Bonta Director, Indianapolis Operations Defense Finance and Accounting Service

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DFAS UpdateSteve BontaDirector, Indianapolis
OperationsDefense Finance and Accounting Service

• April 2008

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Agenda

• The DFAS Transformation
• People
• Structure
• Process
• Technology
• Information
• GFEBS
• Other Initiatives
• HPO
• The Bill
• Travel
• Summary

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DFAS Transformation Blueprint
Vision Transforming with the Warfighter to
remain the trusted financial partner for DoD

• People
• Human Capital Strategy

• Structure
• BRAC
• Centers of Excellence

• Information
• Business Intelligence
• Benchmarking
• Information Security

Vision and Leadership

• Process
• HPO
• Lean 6
• ERM
• FIAR

• Technology
• ERP
• Systems

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People - Human Capital Strategy
2006 Transformation 2011
2011
Transformation
14K People
lt10K People
18 Supervisory Ratio
115 Supervisory Ratio
NOTIONAL
lt
gt
30 Analytical Skill Sets
30 Technical Skill Sets
70 Analytical Skill Sets
70 Technical Skill Sets
General Schedule Pay System
Pro-Active
Reactive
Process-Oriented
Results-Oriented
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Structure - 2011
lt10K People - 10 Sites - 1.31B Costs -
Limestone
600 people
1,000 people
Transformation/BRAC Net Savings FY 2006
2011 614 Million
Rome
1,500 people
Cleveland Bratenahl
Columbus
Indianapolis
Arlington
2,632 people
2,064 people
Texarkana
Japan
Europe
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Process - Financial Improvement and Audit
Readiness
Our responsibility to our customer is to
document and maintain the integrity of DFAS
financial improvement processes relating to the
FIAR Plan
Roles and Responsibilities include Developing
, coordinating and achieving audit readiness of
DFASs functions Developing DFAS Key
Milestones and financial improvement plans for
accounts payable and accounts receivable Ident
ifying and reporting actions owned, led or
supported by DFAS in customer financial
improvement plans
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Information
Business Intelligence
Benchmarking
Information Security
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Technology ERP and System Initiatives
Enterprise Resource Plan System
Upgrade Planning
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GFEBS Changing the Way the Army Does Business

• A single web-based system to the total Army for
• Entering funds, accounting and real property
  asset transactions
• Integrating non-financial data from multiple
  sources
• Generating real-time cost management and
  multi-year analytic data
• Conducting funds, cost and real property
  management activities
• Supporting planning, programming and budgeting
  activites
• Delivers added value to the Army by

• Reducing Eliminating Waste
• Apply one system to the three components for a
  single Army view
• Reduce footprint (logistics) components
• Decrease training cycle time
• Eliminate redundant entry and re-working of data
  in different systems
• Reduce reconciliations and mitigate risks

• Reducing Variation Improving Quality
• Maximize standardizations
• Replace 87 systems with one system
• Apply web-based Commercial Off-The-Shelf (COTS)
  Enterprise Resource Planning (ERP) system
• Eliminate customized systems
• Utilize financial trend data
• Enhance financial transparency and credibility

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GFEBS Impact
GFEBS provides support Army-wide
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Why GFEBS?

• Within Todays Environment - Deficiencies
  include
• Little or no linkage between expenditures and
  outputs
• Lack of visibility of total program cost at all
  levels
• Limited experience basis for formulating
  programs/budgets or planning/decision making
• High rework rate for financial processes drives
  costs

Integration Nightmare!

• Outcome
• Replace 80 of current overlapping and redundant
  functionality in the Armys financial portfolio
• A universal system that provides a single
  authoritative source of the Armys financial
  management information

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GFEBS Benefits - Functional Program Areas

• Funds Management / Budget Formulation
• Budget Formulation is below HQDA level
• Funds Management of General Funds
• Property, Plant and Equipment
• Real Property, Maintenance, Equipment/Assets,
  Environment Liabilities
• Spending Chain
• Initiate purchase requisition and check funds,
  record obligation, manage goods and services
  receipts and process disbursement
• Logistics integration / inventory management
• Reimbursables
• Execute order management
• Process accounts receivable
• Cost Management
• Full costing focused on Brigades, starting with
  IMCOM Services / SSPs
• Payroll Travel Interfaces
• Financials
• General Ledger accounting (USSGL)
• Workflow Journal Voucher Approval Process
• Financial Statement reporting to departmental
  level
• Month end/ Year end closing process

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Summary Of Benefits

• Headquarters
• Increased controls and accountability
• Integrated financial and related non-financial
  functional data
• Quantitative analysis for program and budget
  formulation
• Auditability of the Armys General Fund

• Command
• Oversight of expenditures at the operational
  level
• Forecasting of budgets and costs for planning
  and subsequent tracking of execution
• Cost analysis at the aggregate level
• Improved asset management activities

• Operational
• Access through single point of entry in a
  web-based system
• Integration with work orders and job orders
• Cost management through access to functional
  data in real-time
• Reduced reconciliation and redundant data entry
  across the Army through transparent financial
  information

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GFEBS Training Approach
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Deployment Strategy

• Release 1.3 and 1.4 deployments will be based on
  a blended approach of with a regional/geographic
  focus, taking into account
• Organization Activities and reporting
  relationships
• Dynamic Army Resource Priority List (DARPL)
• IMCOM Regions, Installations and all tenant
  organizations
• Installations running both SOMARDS and STANFINS
  will be implemented at the end of Release 1.3,
  through the beginning of Release 1.4

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Deployment Strategy

• Key Activities Include
• One-on-One Meeting with each Command
• Site Visits
• Establish an MOA
• Sustainment Team

Prior-to During
After-Deployment
90 days
30 60 Days
90 180 Days
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Disbursing SDI and DCAS

• Benefits
• Provides GFEBS transaction-level reconciliation
  of those sent to Treasury against transactions
  posted.
• GFEBS use of the standard format allows for
  mechanized input of supplemental data to avoid
  manual key entry costs.
• SFIS compliant data interface.

Treasury
HQARS
Posting Results
Expenditure and Collection Data
SOA / SOT
SFIS Compliant Ready to Pay
1080 / 1081
Post Payment
Posting Info
Expenditure / Collection/ Acct Data
DCAS
SDI (Single DSSN)

• Benefits
• Lowers risk to GFEBS by using Enterprise
  functionality already successful in production
  for reporting to Treasury
• Provides GFEBS a single repository for all
  disbursement, collection, interfund, and
  accountability data
• Provides GFEBS daily balancing of cash and
  accountability data

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High Performing Organization
Study Plan Implement Yield
Strengthened customer support Increased
efficiency Reduced costs

Operations across numerous sites Related
functions spanning multiple organizations Dispara
te, network-specific procedures Like processes
spanning multiple authorities
Consolidated operations across central
sites Related functions under standard
organization structure Standardized, streamlined
procedures Repeatable end-to-end processes under
single authority

• Accounting HPO currently under implementation
  (impacts 7,000 personnel)
• Contract Pay Study completed (impacts 500
  personnel)

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FY08 Estimated Army Bill
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Travel Operations Quad as of March 7, 2008
Voucher Aging as of 03/07/2008
NOTE Rome currently does not yet have a program
to calculate average TAT. Rome workload
comprised of 5,863 Active (TDY and TCS) vouchers
and 1,277 Mil PCS.
Returned Contingency Claims Week of March 3 -
7, 2008

• Standard for submission to DFAS is 5 days from
  completion of TDY
• Average submission for week of March 3 - 7 for
  all claims was 29 days
• Average submission for week of Feb. 25 - 29 for
  all claims was 32 days

A Missing Call-Up/Mob Order B
Missing TCS/TDY Order C Blank
Itinerary D Incomplete Itinerary E
Itinerary/Orders Mismatch F Illegible G
Missing Reviewer Signature/Date H
Missing traveler Signature/Date I Other
Combination of Errors J Missing
Refrad/DD K No entitlement/within comm
dist
14 of received claims during period
were rejected

• Last weeks TCS Registration in DTS (as of
  2/29/08)
• 2,240 Travelers Accepted
• 413 Travelers Awaiting Acceptance
• 2,653 Travelers have self-registered into DTS
• Please note that the TCS mission is no longer
  managed by DFAS LDTA.

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What the Army Can Do

• Decrease of days it takes for a customer to
  submit members claim to DFAS after the end of
  TDY
• Improve the quality of voucher being submitted
• Ensure it is pay ready
• Increase the use of DTS where proliferated
• i.e. elimination of blanket travel orders
• Status of Temporary Change of Station accruals to
  DTS ? (3,000 claims per month)
• Resource contract according to voucher volume
  received during peak seasons
• Consider resourcing long-term E-solution

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Summary Making Every Day Count
2011
2006
Workforce Staffing
13,475 People
lt10,000 People
70 Technical 30 Professional 18 Supervisory
Ratio
30 Technical 70 Professional 115 Supervisory
Ratio
Workforce Composition
Workforce Productivity
13,600 Transactions per person
9,300 Transactions per person

• Manual Processes
• Large-scale rework
• Workforce with minimal analysis skills
• Legacy systems
• Overhead staffing and costs exceed industry
  benchmark

Business Environment

• Automation of business processes
• Less rework
• Workforce with mature financial analysis skills
• Migratory systems on-line
• Overhead staffing and costs match or exceed
  industry benchmark

Providing Better Service, Fasterand at Less Cost