Department of TransportationWhere We Are

andWhere We Want to Be

2

A Decade of Standardization and Consolidation

1997 – DOT Agencies collaboratively chose Oracle Federal Financials as the single core financial management system (Delphi)

1998– DOT chose Federal Aviation Administration’s Enterprise Service Center (ESC) in Oklahoma City to implement and support all DOT agencies on Delphi (single instance with no customizations)

2004 – DOT implemented final agency on Delphi

2005 - DOT/ESC designated as a Shared Service Center by OMB in 2005

2004-2007- ESC services 4 external agencies including the Government Accountability Office (GAO) in 2007

2000 to 2008 – Gradually consolidated all accounting operations to ESC including 9 FAA’s regions and all DOT agencies.

2009 – ESC implementing two new agencies

AMAZING PROGRESS!

3

DOT Agencies

St LawrenceSeaway

DevelopmentCorporation

Research &Innovation

Technology Administration

Pipeline & Hazardous

Materials SafetyAdministration

National Highway

Traffic SafetyAdministration

Maritime Administration

Federal TransitAdministration

Federal RailroadAdministration

Federal MotorCarrier SafetyAdministration

Federal HighwayAdministration

Federal AviationAdministration

Office of the Secretary

4

If that’s not enough….

5

DOT/ESC Focus on Optimization with Innovation and Improvement

7 unqualified opinions in the last eight years with no material weaknesses in 2008

Monthly close occurs overnight for all agencies

Year-end close process dramatically decreased from a three week process to agencies closing in a few hours

Developed an innovative Financial Statement Solution which produces individual agency statements and DOT’s Consolidated Statements directly from the core system with no topside adjustments or external reporting tool

Implemented a standardized A-123 Internal Control Program which fully documents all of our processes

Implemented FAB 14 Reconciliation Metrics to measure and report agency progress in key reconciliations

6

We are still faced with many challenges

Lack of standardization in Delphi configuration across agencies

Disparate business processes cause excessive administrative work, re-work, reconciliation, and reporting resulting in higher costs

OMB’s FMLoB directives moving Agencies to a Common Government-wide Accounting Code (CGAC) and standard business processes

Inability to roll up data department-wide because of system configuration

Requirements to support Earned Value Management, Cost Accounting, Performance Measures, CGAC, Treasury’s Government–wide Accounting (GWA) changes

Need to improve data integrity, accuracy and consistency

Technology Platform and Reporting Tools are inadequate to support future business operations

Need for integrated Procurement Solution

Challenges of TRANSPARENCY!

7

What’s Next for DOT/ESC?

8

Opportunities for Optimization of Systems and Processes

Oracle Release 12

Transaction flow defined by process

Transaction code entry eliminated

Individual agency “set of books” structure gone

Intercompany billing capability

Operations can manage payment sweeps, month end close processes centrally

Move to OMB’s CGAC

Incorporate Treasury’s GWA changes

9

DOT Leadership Strategic Planning

August 2007 –DOT financial management, budget, CIO, and procurement community participated in a strategic planning session to determine the Department’s financial management strategy for the next decade – the major outcome of this meeting was the “vision” for the Financial Management Business Transformation (FMBT) effort

“To be the government leader in Financial Management utilizing quality people, processes, and technology in delivering a single integrated solution to support DOT’s mission by using streamlined business processes while ensuring financial integrity.”

10

Goals of DOT FMBT Vision

Re-engineer all financial management business processes to eliminate redundancies and inefficient processes amongst the agencies

Ensure consistency, consolidation and coordination of DOT Enterprise-level business systems including a single integrated procurement solution and modernized reporting solution

Improve collaboration and communication between the Office of the Secretary, ESC, and the Agencies

Alignment of resources conducting business process reengineering and system modernization into a unified, focused strategy

11

Five Commandments of the FMBT

Standardization: We will standardize business processes and Account Code Structure

Integrity: We will ensure data integrity

Communication: We will communicate effectively across DOT

Replication: We will not replicate the old system

Integration: We will integrate before we interface

(We still will not customize)

12

Governance Structure

Level 4

CFO Council

Level 4

CFO Council

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

Level 3

Executive Leadership Committee (ELC)

Level 3

Executive Leadership Committee (ELC)

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

Level 2

Financial Management Business Council (FMBC)

Level 2

Financial Management Business Council (FMBC)

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

Level 1

Business Transformation Team

Level 1

Business Transformation Team

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

Level 4

CFO Council

Level 4

CFO Council

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

Level 4

CFO Council

Level 4

CFO Council

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

• Approve the FMBT budget• Articulate a unified vision, scope and objectives for the FMBT• Allocate financial resources and appropriately trained staff to the FMBT• Garner support for the FMBT from other agency decision-makers• Sanction FMBT activity

Level 3

Executive Leadership Committee (ELC)

Level 3

Executive Leadership Committee (ELC)

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

Level 3

Executive Leadership Committee (ELC)

Level 3

Executive Leadership Committee (ELC)

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

• Commit resources • Endorse the FMBT budget yearly for CFO Council approval• Approve and monitor the progress of work packages and other FMBC

activity via quarterly ELC meetings • Resolve conflicts brought forward by the FMBC • Facilitate department-wide buy-in and sponsorship for the FMBC

Level 2

Financial Management Business Council (FMBC)

Level 2

Financial Management Business Council (FMBC)

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

Level 2

Financial Management Business Council (FMBC)

Level 2

Financial Management Business Council (FMBC)

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

• Plan, prioritize and oversee the execution of work to be accomplished• Hold workgroup leads and participants accountable for achieving progress via

monthly FMBT meetings• Develop and present the yearly FMBT budget to the ELC for endorsement• Attempt to resolve all conflicts before proceeding to the ELC and facilitate

communication among all stakeholders

Level 1

Business Transformation Team

Level 1

Business Transformation Team

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

Level 1

Business Transformation Team

Level 1

Business Transformation Team

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

• Coordinate, manage and monitor the activities of the five permanent workgroups• Develop, present to FMBC for approval, and monitor work package project plans• Communicate the status and progress of the FMBT to all stakeholders; manage change• Develop and present the yearly FMBT budget to the FMBC for endorsement• Attempt to resolve conflicts prior to proceeding to the FMBC and ELC

13

Business Transformation Team Leadership

Executive

Leadership

Committee

Project Manager

Financial

Management

Business

Council

FMBT Project

Management Office

Business Process

Transformation

Team

Information

Management

Team

Current Systems

Team

Future Systems

Team

Change and

Learning Team

14

Project Team Organization

Business Process Transformation

Identify and reengineer critical business processes and develop policy around identified processes. The development of business requirements will be driven by this team.

Develop and implement a Department-wide Accounting Code Structure and define data & reporting requirements for the future transformation.Information

Management

Identify, map, and communicate current technical and process related requirements around the current system. Development of cutover and conversion plans will be driven by this team.

Current Systems

Future Systems

Develop an inventory of the future functional and technical system requirements. Responsible for translating business requirements into technical solutions as well as leading development, configuration, and testing efforts.

Change & Learning

Provide a structured and uniform approach for stakeholders, decision makers and users to manage change and learning related activities. Provides a standard approach for change management across all threads and phases.

PMOProvide program management tools and documents; coordinate, consolidate and monitor project activity; provide strategic advice and industry leading practices, and facilitate the development and management of the plan and schedule.

Project-Wide Support

15

Achieving a Fully Integrated Budget and Financial Management Environment

Develop a standard set of

reports by role to be adopted by

both budget and finance

practitioners across the

Department

Information Sharing and Reporting

Develop a standard set of

business processes for core

financial management

functions to be adopted by both

budget and finance

practitioners across the

Department

Business Process Standardization

Develop a common

accounting code structure,

including an applicable set of

definitions, adopted by both

budget and finance

practitioners across the

Department

Data Management

16

Business Transformation Planning

Vision

To develop and document an

understanding of the value of the

project direction and goals

Plan Design Build Deliver Operate

To initiate the project and identify

the team and expected results in a

detailed project plan

To create a design using the results

of the requirements collection, design

confirmation workshops and

prototyping efforts

To configure and test the business

and technical requirements

established in the previous design

phase

To prepare for go-live by performing final system testing, user training, cut-over activities and

enhancing an internal help desk

To transition from a project

environment to a day-to-day business

operation

PHASES:

Business ProcessTransformation

Current System

Information Management

Future System

Change & Learning

PMO

Definition & Purpose

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

Task

TEAMS:

17

Summary of FMBT ApproachPotential Sub-

ProcessesProcess Description

Formulation Allocation Execution Funds Management Project Management Budget Accounting Users Guide Reporting (e.g., SF-133, Budget

Variance)

Budget to Report

Encompasses all business functions necessary to plan, formulate, create, execute against, and report on the budget and business activities of the entity.

PP & E Asset Management Inventory

Acquire to Retire

Processes, procedures, tasks and activities in the area of asset management.

Costing Billing Project Management

Cost AccountingProcesses, procedures, tasks and activities in the area of a cost accounting methodology (i.e., Standard vs. ABC).

Maintain COA Consolidations Financial Statements Generation Close

Financial Mgmt. & Reporting

Processes, procedures, tasks and activities in the areas of financial reporting, maintenance of COA design and generation of financial statements.

RA (AR & AP) Grants (Grantee & Grantor) Travel & Credit Card Commitments, Obligations, and

Expenditures Vendor Management

Procure to PayProcesses, procedures, tasks and activities in the areas of procurement, vendor management, contract management, grants management, and reimbursements.

18

Key to our Success Management support

Analyzing and understanding the weaknesses of the current approach

Involvement of key stakeholders across DOT

Understanding and using the new technology and functionality

Re-implementation of every Agency with next upgrade of Oracle

Designing the system to meet the information needs of management and program managers.