Auditable Financial System for Government Contracting at Accenture Federal Services

Mike MillsTM1 Operations Senior Analyst Accenture Federal Services

Dat NguyenConsultantQueBIT Consulting

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Introductions and Company Overview

Government Contracting Industry Overview

AFS TM1 Model Overview

Business and Architectural Challenges

Solution: Model Re-Architecture

Outcome and Results Achieved

Enhancements since Re-Architecture

Future Plans/Developments

Closing Statement

Q&A Session

Agenda

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Company Overview: Accenture Federal Services

OUR COMPANYTechnologybackbone of government’s

most important programs

INNOVATING WITH CLIENTSMake government work better for millions

INVESTING IN AMERICA’S FUTUREGrowing local economies and the next-gen

high-tech workforce

KEEPING OUR PROMISE TO VETERANSGiving back to veterans and their spouses

OUR PEOPLE AND PARTNERSInvesting in careers, creating jobs

OUR WORK

Combining innovation, technology,

and commercial best-practice strategies

45 OFFICES

across the US Federal contractors

list (2016)

DIGITAL

STUDIO

in the heart of Washington,

DC dedicated to innovating

with clients

268SMALL BUSINESSES

50 veteran-owned

68 women-owned

PIONEEREDAGILE APPROACHES

at scale, continuous learning

@ Agile Institute

PRE-INTEGRATED

platforms of industry-leading

partners and latest technologies

#13 ON THE TOP 100

8,750US people working

in all 50 states

2,050net-new jobs created

over the last three years

12%of AFS hires were

veterans (2016)

ON PATH TO HIRE

5,0 0 0US veterans+military

spouses by 2020

368WORKING WITH

business partners

across the country

Working with 15

Executive Departments

and 60+ agencies

Solving the toughest

problems in defense,

intel, public safety,

health, and civilian

From design to

delivery to operate

STRENGTHENTHE MILITARY:Deliver critical supplies to

fighting men and women in combat zones around the world

FIGHT CYBER ATTACKS: Protect citizen personal data and other

vital information 24/7/365 with automation and analytics

KEEP AMERICANS SAFE: Verify and manage the identities of

millions working in the US transportation system and

protecting access to US infrastructure and systems

CARE FOR VETERANS: Providing a single view of a veteran’s

history across 300 local VA facilities so doctors can make

decisions and act quickly to take better care of veterans

SAVE TAXPAYER DOLLARS:Deploying bots to help one

agency prevent $665M in fraud in one year alone

EXPANDING INNOVATION CENTERS

in US cities—San Antonio, TX; Washington, DC;

Baltimore, MD; and Chesapeake, VA

Working with veterans groups, military bases,

universities, community colleges, and schools

across the country to educate, train, and groom the

NEXT GENERATION HIGH TECH WORKFORCE

Supporting Accenture’s goal to

hire 5,0 0 0 veteransand their

spouses by 2020

Helping train 6,50 0 military

connected membersand preparing

2,500 for civilian careers

LEARN MOREwww.accenture.com/federal

www.twittter.com/accenturefederal

#13 OF TOP 100

federal contractors, 2016

Washington Technology

CONTRACTOROF

THE YEAR

$300M+, 2015

LEADERAMONG US

SYSTEMS INTEGRATORS

serving the federal government

(IDC-2016)

LEADERIN CLOUD

INFRASTRUCTURE-AS-A-

SERVICE for the US Federal

Government (IDC-2014)

#1“VETFRIENDLY

EMPLOYER” by Veteran

Recruiting, 2016

VETERANRECRUITING.COM

G.I. Jobs’

MILITARY FRIENDLY

EMPLOYER

MILITARYFRIENDLY.COM/EMPLOYERS

About QueBIT▪ Focused on all things Analytics

▪ Analytics Consulting Services

▪ Project Implementations

▪ Staff Augmentation/Managed Services

▪ Delivering Analytics On-Premise and in The Cloud

▪ Software Reseller and Development Company

▪ Development of Analytics Solutions such as Predictive Insurance Claims

Subrogation, Predictive Demand Planning and Predictive Assortment

Planning

▪ 16 years in business with managers on the team who have been

working in analytics for 20+ years

▪ 900+ successful implementations in finance, sales, marketing and

operations (50+ new analytics implementations over the past 12

months)

▪ 400+ analytics customers; all industries

▪ 90 employees with HQ in New York5

Government Contracting Industry Overview

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Government contractors must deal with a complex and changing array of regulations and requirements

An Auditable Financial System is required and must be made compliant with government requirements

▪ For Actuals – Deltek Costpoint

▪ For Planning – Cognos TM1

Principal among the requirements are:

▪ Separation of direct and indirect costs

▪ Exclusion of unallowable costs

▪ Allocation of indirect costs

Background: Government Contracting Industry

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What happens if there isn’t an Auditable Financial System?

▪ Awards can/will be delayed

▪ Subjected to additional audits by the Defense Contract Audit Agency (DCAA)

▪ Audit frequency will be increased (higher risk category)

▪ Award can be canceled/terminated

▪ Contract can be terminated during performance

Background: Government Contracting Industry (cont.)

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What does it mean to have an Auditable Financial System at AFS?

▪ Complete transparency of the financial system

▪ Traceability of billing rates back to resource level costs

▪ Auditability of indirect cost rates

▪ Single source of truth

▪ Data retention and preservation kept centrally within the system

Background: Government Contracting Industry (cont.)

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Overview of TM1 Model at AFS

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TM1 at AFS is used for forecasting and budgeting

Up to 150 users in production at any time

Comprised of 3 Modules:

TM1 Model at Accenture Federal Services Today

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Indirect

Rates

Contract

Forecasting

Enterprise

Forecasting Reports

Indirect rates

▪ An indirect cost rate is a tool for determining the proportion of indirect costs each organization should bear. It is the ratio (expressed as a percentage) of the indirect costs to a direct cost base.

▪ Critical component in the government contracting industry

▪ Indirect costs are separated by categories called pools

▪ TM1 is used to generate indirect rates for each pool

▪ Serve as the basis for project pricing and profitability

Proposed rates are submitted to DCAA every year for approval

▪ Subject to substantial scrutiny and audit by DCAA (Defense Contract Auditing Agency) and DCMA (Defense Contract Management Agency)

Indirect Rates Module: Overview

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Indirect Rates Module: Overview Continued

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Full project level forecasts are completed in TM1 by business users

▪ Forecasts are completed at the resource level using a bottoms up approach

Contract Forecasting Module: Overview

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Outputs from Contract Forecasting and Indirect Rates modules are merged in Enterprise Forecasting

▪ Direct costs from contract forecasting, indirect costs from IR

▪ Allows for top-level adjustments

Enterprise Forecasting Module: Overview

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Business and Architectural ChallengesSolution: Model Re-ArchitectureOutcome and Results Achieved

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The 3 modules were built independently of each other

System as a whole was difficult to manage due to isolated modules

Manual intervention was necessary in order to get indirect rates and a full, consolidated forecast

Business and Architectural Challenges: Prior to Re-Architecture

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Indirect RatesContract

Forecasting

Enterprise

Forecasting

AFS brought in QueBIT to analyze the TM1 model

All stakeholders of the TM1 model were involved so that clear roles and business processes between modules were defined

QueBIT lead the re-architecture and build for the new solution

▪ Interconnectivity

▪ Simplified processes and procedures

▪ Flexibility in the model

▪ Performance enhancement

▪ Added functionality

Solution: Model Re-Architecture

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Outcome and Results Achieved

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Transparent cost build-up for Federal Consulting

▪ Traceability of data from end to end in TM1

▪ Clear calculation logic and business rules in the modules

Systematic Procedures and Updates

▪ Simplification of processes and procedures to achieve end results

▪ Updated software and performance improvements from interconnectivity

Manual vs. Systematic

▪ Perspectives, TM1Web, and Cube Views to enter data and output reports

▪ No longer need to adjust values after export from TM1 (can directly submit indirect rates to the government)

Auditability for DCAA

▪ DCAA login and walk-through in TM1Web during the audit cycle

▪ Traceability of the rates from pools back to the resource level

Enhancements since Re-ArchitectureFuture Plans/Developments

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Enhancements were implemented after the re-architecture of the TM1 model at AFS

▪ Model Performance Updates- Optimizing the Order of Dimensions in a Cube

- Turning off Cube Logging in TI Processes

- Use of conditional feeders where applicable

- Specific configuration parameters within tm1s.cfg

- And Others

▪ QueBIT ReportWORQ- Reporting enhancement to existing TM1 functionality

- Report Bursting capability

- Email/Drop-off location capability

- Customized report books and scheduling capability

Enhancements since Re-Architecture

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IBM Planning Analytics

▪ Planning Analytics for Microsoft Excel replacement for perspectives (TM1 client)

▪ Planning Analytics Workspace

Predictive piece to current TM1 model

Future Plans/Developments

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The collaboration between AFS and QueBIT allowed us to create a flexible and efficient TM1 module. This update has allowed AFS to be

DCAA compliant and have a systematic method to generate and submit the annual indirect rates. The audit process has become more streamlined and because of the proven method and continued

compliance with DCAA, the audit process has become easier and simpler for the organization.

Closing Statements

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