Defense Agencies Initiative (DAI) Ms Cynthia Beck, PM 17 April 2013

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

4/11/2013 11WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 1

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

Defense Agencies Initiative

(DAI)

Ms Cynthia Beck, PM17 April 2013



"Currently, Defense Agencies use more than 10 different non-compliant financial management systems supporting

diverse operational functions and the warfighter in decision making and financial reporting. These disparate, non-

integrated systems do not meet statutory requirements to produce timely, auditable reports.“

Source: DLA Operational Execution Plan Brief Updated July 31, 2012

Problem Statement

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3WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 3

DAI Overview

Mission: To transform the budget, finance, and accounting operations of the Defense Agencies to achieve accurate and reliable financial information in support of financial accountability and effective and efficient decision making throughout the Defense Agencies in support of the missions of the warfighter. Common business processes are: procure to pay; order to cash; acquire to retire; budget to report; cost accounting; time and labor. Full deployment capability will include budget formulation; grants financial management; and re-sale accounting.

Objectives: • Achieve auditable, CFO compliant business environments for the Defense Agencies • Meet or exceed capability requirements to include key performance parameters on cost and

within schedule

Stakeholders Type

OUSD(C) PSA & Customer

Defense Agencies Partners

DCMO Milestone Decision Authority

DLA • Component Acquisition Executive• Program Executive Officer



Benefits

• Implementation of a single OFFM compliant solution for the Defense Agencies helps address financial management material weaknesses and deficiencies.

• Real time access to data supports enhanced financial analysis and timely decision making.

• Reduced data reconciliation requirements…more time for analysis/production.

• Retire Legacy Systems.

Additional Attributes Other Benefits

DAI is a fully functional ERP suite which has been configured and adapted to meet the requirements of the Defense Agencies. Achieved benefits include:

Full USSGL/SFIS Compliant Accounting – support for both general fund and working capital fund accounting requirements

Complete Subledger Transaction Processing – end to end procure-to-pay support from request to contracting through entitlement, reimbursable order processing, financial asset accounting, time and labor entry

Robust System Interfaces to DoD and Agency Systems – Automated interfaces for ADS, CCR, DCAS, DCPS, DCPDS, DDRS, DTS, WAWF, EUD, PRIDE, IPAC, 1099, ODS, PCard, CEFT, FPDS-NG and others

Reporting Infrastructure – complete SFIS fiduciary reporting via DDRS, tailorable managerial reporting with Project Accounting, ad-hoc query capability

Compliancy with Key Governance Requirements – audited validation of accounting model, SFIS, FFMIA, BEA

• Accessibility: • Interoperability: • Data Retention: • Supportability. • Search Driven Information: • DAI helpdesk • Audit Trail: • Continuity of Operations Plan

(COOP)

• Confidentiality. • Common Operating

Environment• Availability. Availability • Software Maintainability:

agreements.• Human/Computer Interface

(HCI): • On-line Notification: • On-line Information (Help)

4



Budget to Report (B2R)• Enter funds from Treasury• Allocate funds to organizations• Working Capital Fund• Update general ledger• Update reports

Order to Cash (O2C)• Set up agreements• Collect cost and calculate bill• Working Capital Fund• Billing and collection• Update general ledger• Update reports

Procure to Pay (P2P)• Create commitment• Create obligation• Perform receipt & acceptance• Working Capital Fund• Update general ledger• Update reports• Advanced Procurement

System

Acquire to Retire (A2R)• Define asset• Determine in service date• Determine depreciation• Update general ledger• CIP & WIP Reporting• Update reports• Retirement of asset

Cost Management (CM) (Cost Accounting)• Collection of all costs such as: Activity Based Cost, Job Order

Number, Process costs and Standard costs• Allocation of indirect costs• Working Capital Fund• Update general ledger • Update reports

Hire to Retire (H2R) (Time and Labor only) • Automated individual or timekeeper input into

system• Time allocation for Cost Accounting purposes• Automatic generation of time cards

Proposal to Reward (P2R) (Grants Financial Management)

• Award a Grant• Apportion and allotment funding• Track and close grant• Oversight and reporting

Budget Formulation(additional B2R process capabilities)

• Develop budget for out year and POM

• Support forecasting, and “what if” scenarios

• Generate required documents

Re-Sales Accounting (DeCA Unique)• Non-Appropriated Fund FFMIA requirements• Perform accounting for the DECA inventory and any other

Agencies that have inventory for sale

Legend: BEA E2E Business ProcessesOther Business ProcessesDelivered capabilities Future capabilities

Initial General Fund Capability

Telecom

Working Capital of Revolving Funds

Order to

Cash

Procure to Pay

Acquire to

Retire

Time &

LaborRe-sale Accounting

GrantsFinancial Management

Budget Formulation

CostAccounting

Initial General Fund

and Working Capital

FundCapabilities

Global Model

Budget to

Report

Updated: 31 Dec 2012



DAI History

FY08 FY09 FY10 FY11 FY120

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000 BTA-Closeout Acctg

DFAS

DTIC

OUSD(C)

DMA

TMA

USU

MDA

DTRA

DTSA

DSS

DPMO

OEA

DARPA

8,400 9,200

5,700

274 398

Agency users/FY

6

Transformation Tenets … Keys to Success

• We will change, not the COTS

• We will rely on commercial software and use successful BPR

• We will operate in a single Solution

• We will prepare our people to succeed in the new environment

FYs 2007/2008 FY 2009 FY2010 FY 2011 FY 2012

Very Basic General FundGM

Maturation/Interfaces Subscription Mgt

GM Maturation/ InterfacesP2P Pilot

GM MaturationNew Agency RICEW

New Agency RICEWData Services

Automatic Time Card Generation

9 Interface Partners

+3 New Interface Partners




Oct 2008 Oct 2009 Oct 2010 Oct 2011 Oct 2012

1 AgencyFull Financials

2 AgenciesFull Financials

4 Agencies Full Financials

8 Agencies *Full Financials

11 AgenciesFull Financials

BTA + DTIC + MDA & USU+TMA, DTSA, DTRA &

DPMO*BTA - disestablished

+DSS, DMA, DARPA,& OEA

1 Agency T&L 2 Agencies T&L 7 Agencies T&L 11 Agencies T&L 12 Agencies T&L

BTA +DTIC +OUSD(C), DMA, USU, TMA & MDA

+ DTSA, DTRA, DPMO &DSS

+ DARPA & OEA

Users Users Users Users Users

274 398 5,700 8,400 9,200

De

ve

lop

me

nt

Su

sta

inm

en

t





FY2009 FY2010 FY2011 FY2012 FY2013 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

AgreementsObligationsEntitlementsRequisitions

$s in M

Activity Throughput

Transactions: 9K 36K 133K 261K 164K



FY13/14 Business Process Reengineering

Areas Funds Availability –

Projects/GL

System Development Life Cycle maturation

Streamline New Agency Implementation - learning from lessons

Areas Help Desk Improvements

Standard Line of Accounting (SLOA)/ Government Wide Accounting by 30 Sep 2014

P2P eCommerce Metrics About 14 metrics including: PALT, electronic/manual invoices, interest, invoices on hold, etc.



Disbursement & Collection Data

Payroll Disbursements

Treasury Summary

DoD Summary

Unfunded Leave Liability Report

Accounts Receivable Data

Gross Pay Detail

Treasury Summary

DoD Summary

TFO Pre-Validation Request

TFO Pre-Validation Response

One Stop Portal - Acctg data for invoicing via https

DAI Global Interface Architecture Updated 04 Apr 2013

Legend

In Production

Maturing

Automated Interface

Manual Interface

Not yet active inProduction

Interface betweenexternal systems

DAI

DLA Transaction

Services

BEIS / DDRSDaily Trail Balance Data

Month End Trial Balance Data

Vendor Data

DTS

Travel Authorization DataTravel Debt DataTravel Auth./Debt AcknowledgementCBA Data

BEIS

DCAS

ODS

HQARS

304 File

CCAS

304 File

SF1080/1081 File

Posting Results File

Transactions For Self (TFSs)/ Transactions By Others (TBOs) Invoices

Civilian Payroll (CIVPAYR)

Monthly Suspense (uncleared TBO’s)

ADS

Ready to Pay File (Vendor Pay)

Pay History (Vendor Pay)

IPACWizard

IPAC (Debits & Credits)

IPAC(Debits & Credits)

DCPSTimekeeping Information

Biweekly Employee Leave Data

Daily Master Employee Data

Balanced Gross Pay Detail

My InvoiceInvoice Status Information

BEIS-DCD (CEFT)EFT Data

DUNS, TIN, or SSN

Purchase Card(AXOL)

Invoice Data

Obligation Data

FPDS – NGSummary Info: Contract Award & Contract Mod

EC/EDI(Formerly EUD

Pre-Validation Solution)

CCaR (MDA)Extract of Financial Data

DCPDSEmployee Data

DPASTransaction

Accepted Receipts

EDA(Includes Procurement Data Standard - PDS)

AcknowledgementContract Data: PDF/Index files

Approved Invoices

Transactions For Self (TFSs)/ Transactions By Others (TBOs) Receipts

Budget Data

SAM(Formerly CCR)

PRIDE (MDA)

ProSight (TMA)

Project & Task Data

Acknowledgement

DB Link - Line of Accounting (LOA) Validation

WAWF

AO TRIM (DARPA)

MSS (DARPA)

Collection Data

Set up a Cost Center

Set up a Project/task

Contract Data: PDS

Attachments

Data Services

Projects Budget Information

Projects & Tasks Information

Key Member Information

Financial Accounting Data (FAD)

Reflecting Release 3.0

Query ATOM via Direct Connect (Contract Data)

CBA Acknowledgement

Common Interface for different systems

TBO Pre-Validation Request and Receipt

TBO Pre-Validation Response

Advice of Collection

ITS

Exchange Rates

Exchange Rates



DAI Implementation Life CyclePhase 0:Initiation

Phase 1:Planning

Phase 2:Preparation

Phase 3:Cutover

Solution Implementation

Planning

Change Management

Planning

Data Conversion

Planning

Infrastructure Preparation

Planning

Phase 5:Operate

Phase 4:Stabilize

Exec

utive

Alig

nmen

t&

Com

mitm

ent

Solution Preparation

& Testing

Solution Cutover

Solution Support

Routine Operations

Change Management Preparation

Agency Data Preparation

Agency Data Conversion Agency Data Maintenance

Infrastructure Preparation &

TestingInfrastructure Maintenance

Workforce Support & Capability Maintenance

Implementation Management

Program Governance

Process Mocks Test Re-Test

DAI Solution Implementation and Sustainment

Agency Human Performance and Sustainment

Agency Data Conversion and Maintenance

Agency Infrastructure Preparation and Maintenance

DI ASRDOProcess Mocks

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DAI Lessons Learned• DAI is more than a financial system - it is a core business system– Particularly Procure to Pay (P2P) and requires

Contracting Office (and more broadly, Acquisition) involvement

• Business Process Redesign Using DAI – Implementing DAI will challenge how you are currently processing your business, the key is to understand it and adjust your business processes to fully leverage it!

• Practice Makes Perfect – DAI PMO is making an instance of DAI available as soon as possible for the Agency to practice and become familiar with the application. The more practice the better!

• Communication – Must ensure that there is constant communication between the Agency, DFAS and the PMO pre and post-production. Communication internal to the Agency and its users as well as the business partners external to the Agency

• Executive Sponsorship – Assigning an Agency executive to be the advocate for DAI within the Agency has proven to lead to successful deployments

• Help Desk/Subject Matter Experts/Training – It is recommended that agencies assign a set of individuals that will become subject matter experts in DAI and be available for training and help desk

• Reports – Get familiar with OBIEE and the standard reports offered by DAI before user acceptance testing

• Time and Attendance – Agencies should deploy the DAI time and labor module at least 2 pay periods prior to deployment of core financials

• Post Implementation Support – Start planning for post implementation support early. Establishing a help desk and a core group of subject matter experts is critical

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Ms. Cynthia Beck703.602.8736

[email protected]

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DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 13

Defense Agencies Initiative (DAI) Ms Cynthia Beck, PM 17 April 2013

Documents

financial asset accounting

financial reporting

cost accounting time

accounting operations

enhanced financial analysis

reliable financial information

timely decision making

resale accounting