bennett

Report
Headquarters U.S. Air Force
Integrity - Service - Excellence
Air Force Financial
Operations
SAF/FMP
April 2013
1
What Congress
and the Public See

Conferences & TDY

Apr 2012: GSA spent $800K on 2010 Western Range Conference


Fall 2012: VA cited for improper spending at two HR conferences




$44K breakfast, tuxedo rentals and $6K on commemorative coins
$4M and $50K on two training videos
DoD spent $224M on conferences in FY10 and $26M in FY12
Afghanistan Fraud, Waste and Abuse

New $34M 64K Sq Ft HQ never used

$60B in US funds lost - $1 of $6 wasted
DoD Lavish Spending

$1.8 M Las Vegas “museum of neon signs”

$650K to digitalize photos, t-shirts &
concert tickets belonging to Grateful Dead
Integrity - Service - Excellence
*%#& Congress – Fix it
1990
CFOA
1994
1996
GMRA FFMIA

Landmark Legislation:




FY05
NDAA
FY10
NDAA
FY13 FY14
NDAA NDAA
The Chief Financial Officers Act of 1990: Created CFO position within cabinet level
agencies, directed OMB to prepare a 5-year Federal Financial Management Improvement
Plan and established pilots for agency financial statement audits
The Government Management Reform Act of 1994: Expanded CFO Act of 1990 by requiring
annual auditable financial statements
The Federal Financial Management Improvement Act of 1996: Required agencies to
implement compliant financial systems
Refined Guidance:






FY02
NDAA
NDAA FY02: Directs DoDIG to stop auditing financial statements until management
asserts they are ready for audit
NDAA FY05: Directs 1st Financial Improvement and Audit Readiness (FIAR) Plan
NDAA FY10: Legislates DoD’s established audit readiness dates
NDAA FY13: Legislates SBR by SECDEF goal of September 30, 2014
NDAA FY14: Legislates audit of FY18 financial statements NLT March 31, 2019
Continued Congressional interest
Integrity - Service - Excellence
3
FIAR - a Matter of Trust,
Not Money
$18,000
$16,000
$14,000
$10,000
$8,000
$6,000
$4,000
$2,000
Mil Spending
Other Govt
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
$0
1977
$Billion
$12,000
GDP
Integrity - Service - Excellence
4
Air Force Audit Status
-- Multiple financial feeder systems and current 1960s
core accounting system does not meet federal requirement to use the USSGL at
the detailed transaction level

Performing end-to-end business analysis  focusing on processes and systems,
addressing FIAR deal breakers in a systematic fashion

Focus on specific IT system controls

Partnering with DFAS to develop and implement a tool to facilitate
reconciliation between systems

Engaged with partners to monitor their progress

Focus on Statement of Budgetary Activity vice Statement of Budgetary
Resources  deliver benefits to Airmen now

Learn from success and failure
Integrity - Service - Excellence
5
Air Force FIAR Timeline
– Assertions
– IPA Examination
– Sustain until SBA
– Sustainment
Integrity - Service - Excellence
6
Air Force FIAR Timeline
– Sustainment
– Assertions
– IPA Examination
Integrity - Service - Excellence
7
What is the AF problem with
Information Technology?

Tangled web of application
interactions

Duplicate copies of data

Inconsistent results equals
Operational uncertainty
JOPES
FMIP
Org
Server
IPPS
GFMDI
Org
Server
GSORTS
DRRS
Org
Server
Organization
GCSS-AF
DCAPES
Data Source
Exposes
data to
SORTS
DRS
MPES
MilPDS
How we do ‘Integration’ today
Force Management example
Too many systems, too hard to operate, too expensive to maintain
Integrity - Service - Excellence
DEAMS Today
As of April 2014
 DEAMS Software  Complies with FFMIA 1996, is widely-used
across the federal government and enables end-to-end auditability
 ~ 1,400 users at 8 AMC bases, 2 ANG units, tenant organizations, and
DFAS-LI
 Operational Assessment 2 Findings Follow
 Dual Processing  using legacy and DEAMS
 Old transactions in legacy; new transactions in DEAMS
 Mix of training options to maximize learning opportunities
 Classroom, OJT, WBT, webinar
 Conducting pre-deployment activities for 1 Jun “go-live”
Integrity - Service - Excellence
DEAMS Scorecard
Standard
Aug 2012
Mar 2014
Overall Operational Assessment
System Controls” is ≤ 5% of transactions entered through DEAMS which contain
invalid data and are processed
Materiel Availability” is ≥ 98% for performing an assigned mission at a given time
Funds Control” is ≤ 2% funds control failures
Balance with Treasury” is ≥ 98% balanced
Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95%
Period End Processing” is ≥ 95% of accounts closed that have period-end data
available to the official financial reporting system by the prescribed day
Balance with Treasury” is ≥ 98% balanced
100% of critical exchange requirements satisfied
Regression testing verifies that DEAMS performance has not been degraded as a
result of software patches, updates or changes
Accurate Balance of Available Funds” is ≥ 98% accurate
Percentage of reports and queries generated successfully ≥ 98%
“The program has made significant progress”
– AFOTEC Exec Summary
Integrity - Service - Excellence
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BACKUP
Integrity - Service - Excellence
11
DEAMS Scorecard
August 2012
March 2014
Not on track toward effectiveness, suitability or mission
capability, and not making progress toward readiness
for IOT&E
On track towards effectiveness, suitability, mission capability and
readiness for Initial Operational Test and Evaluation.
Funds Control” is ≤ 2% funds control failures
DEAMS did not meet the criteria. Two severity one
deficiencies (sometimes) allowed automatic posting of
transactions that exceeded funds controls
Both deficiencies were resolved and no funds control failures
were observed
Balance with Treasury” is ≥ 98% balanced
85% were in balance. DEAMS did not meet the criteria
DEAMS improved to 98% and met criteria
Subsidiary Accounts Balanced to General Ledger Control Accounts” is ≥ 95%
No subsidiary accounts balanced to general ledger
accounts
100% of subsidiary accounts balanced to general ledger
accounts
Accurate Balance of Available Funds” is ≥ 98% accurate
39% of funds balanced with over $26M in observed
accounting errors
Performance did not meet criteria, but improved to 60%
accuracy “shortfalls slowed work completion, the mission could be
accomplished an overall improvement since OA-1
Integrity - Service - Excellence
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DEAMS Scorecard
August 2012
March 2014
System Controls” is ≤ 5% of transactions entered through DEAMS which contain invalid data and are processed
DEAMS met the criteria
DEAMS exceeded criteria with a 3% result
Period End Processing” is ≥ 95% of accounts closed that have period-end data available to the official financial
reporting system by the prescribed day
0% accounts closed
100% of accounts closed accurately and on time
Balance with Treasury” is ≥ 98% balanced
85% were in balance.
98% were in balance
100% of critical exchange requirements satisfied
Met connectivity requirements. However, many of
them did not satisfy requirements for complete and
accurate exchange of information. Therefore, end-toend operational effectiveness was not met.
Did not meet criteria; 96% of critical exchange requirements were
satisfied. However, the test team rated it likely to meet criteria in
IOT&E because proactive monitoring of interfaces resolved most
end-to-end operational impacts
Percentage of reports and queries generated successfully ≥ 98%
Reports & queries generated successfully was 75%.
Reports and queries generated successfully declined to 69%
Integrity - Service - Excellence
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DEAMS Scorecard
August 2012
March 2014
Materiel Availability” is ≥ 98% for performing an assigned mission at a given time
DEAMS met the criteria
DEAMS again met the criteria
•
There were no operational mission failures during OA-2.
•
The DEAMS Help Desk support was rated effective.
•
The DEAMS Help Desk response time was rated effective.
Regression testing verifies that DEAMS performance has not been degraded as a result of software patches,
updates or changes
No regression testing was accomplished
At the start of OA-2, 15 regression scripts were in use. By the
end of OA-2, 107 scripts had been added for a total of 122. With
continued software updates to DEAMS, regression testing will be
an on-going need
“The program has made significant progress”
– AFOTEC Exec Summary
Integrity - Service - Excellence
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