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Department Of The Navy, Financial Management & Comptroller
Financial Management Transformation
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DON Financial Management Transformation Vision and Goals
AUDIT
Continue full-scope audit with full transparency:• Prioritize and remediate findings• Strengthen internal controls • Improve the accuracy of financial reports
BUDGETARY REFORM
Rigorously execute the budget• Improve execution effectiveness & transparency• Reduce reimbursable work
CONSOLIDATION OF SYSTEMS
Consolidate and reduce feeder and general ledger systems• Modernize Navy ERP employing standard business
processes
Vision Primary Goals
• Operate one general ledger with a clean audit opinion.
• Standardize financial & other business processes with documented internal controls tested annually.
• Include enterprise risk management & zero based budgeting in POM development.
• Manage budget authority inside the general ledger -minimal reimbursables.
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DON Financial Management Transformation Primary Goals & Focus Areas
AUDIT
1) Inventory and Operating Materials and Supplies (OM&S) – Account for 100% of assets and standardize process and controls for receipt, issuance, and disposal of materials
2) Real Property – Account for 100% of assets and standardize process and controls for acquisition, modification, and disposal of assets
3) Financial Reporting – Standardize financial reporting process using one compliant general ledger accounting system to produce the financial statements
4) Fund Balance With Treasury (FBwT) – Transition to Treasury shared services for payment and collections operations
BUDGETARY REFORM
5) Budgetary Reform – Enforce discipline in funds distribution process and intergovernmental transactions
CONSOLIDATION OF SYSTEMS
6) Business System Consolidation – Reduce accounting systems footprint7) Information Technology General Controls (ITGCs) – Implement risk management framework and
correct deficiencies in access and security controls over systems.
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Overall Process Flow
BUPERS
CNIC
CNRF
COMPACFLT
DON/AAFSA
NAVAIR
NAVFACNIA
NAVSEA
NSWC
NAVSUPONR
SPAWAR
SSP
USFLTFORCOM
BUMED
USMC
Warrant
SF-132Authorized
Funds
Distribution
Distributed /
Allocated
$182.5B
IMPS
DIFMS /
DMAGMSCFMS
ERP DWAS
STARS-
HCM
STARS-
FL
NSMANSABRS
General Ledgers
Contractor
Vendor Pay
$104B
CIVPAY
$13B
MILPAY
$41B
Travel
$1.5B
Disbursements
Other
$9B
WCF
$30B
Working Capital Fund
$12.5B
Logistics
Total Disbursements: $181B
Asset Types
OM&S $70B
Inventory $70B
General Equipment
$262B
IUS $134M
Real Property
$29B
GE-Remainder
$6B
Accountable Property Systems
17 APSRs
Total Assets: $571B
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Budgetary Reform
PROBLEM: Misalignments in posting information, source documentation, invoices and disbursements cause transactions to fail system matching processes
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Logistics
ePS
Logistics NP2
CIVPERS
Travel
Treasury
DON Control Environment
TARGETED FUTURE STATE
Consolidate Business Systems
Implement Risk-based Approach
Create Highly
Controlled ITGCs
NFRs
GENERAL
LEDGER (11)
CONTRACT
WRITING
SYSTEMS (8)
MILPERS (0)
LOGISTICS IT
(4)
*Includes Enterprise-Wide NFRs
Notice of Findings and Recommendations (NFRs)
Acc
ess
Co
ntr
ol a
nd
Se
greg
atio
n o
f D
uti
es
90 12 32 20 154
57 9 26 11 103
0 0 0 0 0
29 6 12 6 53
311
CURRENT STATE
Audit: IT General Controls
PROBLEM: The DON has very poor controls over its IT systems.
Inte
rfac
e C
on
tro
l
Secu
rity
M
anag
emen
t
Co
nfi
gura
tio
n
Man
agem
ent
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Consolidation of Systems: Notional Roadmap
Return to Standard (RTS)
NAVFAC
Plant Maintenance
T&E
Procure to Pay (P2P)
Iterative De-Customization
Treasury Disbursement (TDD)
Log IT / MILSTRIP
O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S
Mile
sto
nes
WC
F W
ave
1W
CF
Wav
e 2
WC
F W
ave
3SA
BR
E to
ER
PS4
HA
NA
Ass
essm
ents
an
d P
roce
ss Im
pro
vem
ent
FY19 FY20 FY21 FY22 FY23
Financial Reporting & FBwT
Inventory OM&S
Budget Reform
Acquire to Retire (Real Property / Asset Management)
Order to Cash / Supply Chain Management
WCF: Wave 2
WCF: Wave 1
WCF: Wave 3
SABRS to ERP
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Consolidation of Systems: General Ledger
PROBLEM: The Department of the Navy’s (DON’s) business system environment is disparate, complex and has redundant functionality.
1 OCT 2018
1 OCT 2019
1 OCT 2020
1 OCT 2021
1 OCT 2022
Gen
eral
Fu
nd
sW
ork
ing
Cap
ital
Fu
nd
s (W
CF)
SABRS (Navy)
STARS - FL
DWAS
IMPS
SABRS
DIFMS
MSC-FMS
DON ERPSuite on HANA
Standardized DON ERP
• One of the largest vendors of enterprise resource planning (ERP) software
• The SAP ERP system enables its customers to run their business processes, including accounting, production, and human resources in an integrated environment.
• Ensures that information flows from one SAP component to another without the need for redundant data entry and helps enforce financial, process controls
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Purchase Request
Treasury Reporting
Contract Writing
Payment Validation
Disbursement GL Posting
Navy ERPNavy ERP ePS Navy ERP
CARSContract Admin TBD
WAWF (Vendor Invoicing only)
CurrentState
FutureState
Treasury
D-Level
DON
IT Systems:
CFMS
PR Builder
Navy ERP
PRISM
ITIMP
SeaPort
SPS
MOCAS
CAPS-W
MOCAS
DDS
IMPS
DIFMS
SABRS
STARS-HCM
Navy ERP
CARS
DC
AS
FMS-NG
MSC-FMS
DWAS
STARS- FL
MOCAS (Contract Admin)
WAWF
OnePay
Navy ERP
ADS
PAM
Consolidation of Systems: Procure-to-Pay
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Additional ERP Requirements
Requirements Areas
Finance Acquisitions Logistics LOG IT HR/WFR
P2P ATRFR &
FBwTMILSTRIPOM&SITGCOTC
Budgetary
ReformTDD
FAMs:
Processes:
Release Planning
Command Requirements
Requirements
Technical SMEs
Review/Design
Working Group
Priorities
Funding Requirements
Releases
Cross-Functional Review - Analysis
Requirements Gathering
Prioritization Release Schedule
Detailed Plans
New Requirements
Functional Area SMEs
Senior Board
Requirements Management Process
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Backup
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FY18 FY19 FY20 FY21 FUTURE
Navy ERP
STARS-HCM
IMPS
MSC-FMS
DWAS
DIFMS
As-Is Systems# of
NFRs
Planned Consolidation
System Consolidation: General Ledger (DON ERP)
15
AC/SOD IN CM
3 0 1
169 3 1 3
3 2 2
7 3 2 2
7 4 1 1
11
SM
151TOTAL 88 31 12 20
STARS-FL
19
14
13
12
SABRS 5 1 2 18
10
5 1 2 19
10
Consolidation to DON ERP
Consolidation to SABRS
OnePay
CHOOSE-
AIRRS
11
7 2 2 2
8 3 2 2
13
15
10
DCAS
SLDCADA 6 0 0 3 9
FISCAM IT Controls Family LegendAC: Access Controls SOD: Segregation of DutiesIN: Interfaces CM: Configuration Management SM: Security Management
• Consolidation Plan is Certified• Plan is funded in 2019• Plan is in 2020 Budget• Program has single-point
Command & Control (Single Resource Sponsor)
• Audit CAPs are integrated into Plan
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11
12
14
6
System Consolidation: DON Contract Writing (ePS)
SEAPORT
ITIMP
SPS JPMO²
SPS
NAVAIR
SPS
NAVFAC
SPS
NAVSEA
SPS
NAVSUP
SPS
SPAWAR
SPS MSC
15
FY18 FY19 FUTUREAs-Is Systems
Planned Consolidation¹
Corrections must be made to current-state Contract
Writing Systems to enhance the audit posture of
the DON. Future-state system, ePS, must
encompass these controls.
AC/SOD IN CM
8 4 2 1
14
14
17
0 2 3 1
8 3 1 2
9 3 1 1
7 4 0 1
6 3 1 1
9 3 0 2
4 1 2
0
9 103TOTAL 57 26
²Not an application- but NFRs related to the program
office would be subject to correction until ePS transition.
SM
11
# of NFRs
Consolidation to ePS
TBD
10
FISCAM IT Controls Family LegendAC: Access Controls SOD: Segregation of DutiesIN: Interfaces CM: Configuration Management SM: Security Management
• Consolidation Plan is Certified• Plan is funded in 2019• Plan is in 2020 Budget• Program has single-point
Command & Control (Single Resource Sponsor)
• Audit CAPs are integrated into Plan
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NSIPS
RHS
IMAPMIS
NMCMPS
OAIS
EAIS
NROWS
FY18 FY19 FY20 FY21 FUTURE
Consolidation to NP2
As-Is Systems
Planned Consolidation
System Consolidation: DON MILPERS (NP2)
NES
OPINS
0
0
0
0
0
0
0
0
0
0TOTAL
# of NFRs
• Consolidation Plan is Certified• Plan is funded in 2019• Plan is in 2020 Budget• Program has single-point
Command & Control (Single Resource Sponsor)
• Audit CAPs are integrated into Plan
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DECKPLATE-ETR
FY18 FY19 FY20 FUTUREAs-Is Systems
Planned Consolidation
Systems Consolidation: LOG IT (Multiple “Vectors”)
DECKPLATE-AIRRS
SEMS-SERMIS
NALCOMIS/NALCOMIS-OIMA
CMPro
CAV-ORM/CAV-WEB
Navy ERP
ROMIS
ETIMS
NDMS (MAXIMO)
NDMS-TAA
MATMF
MATMF (CSAS)
SUPDESK – (CSAS)
SUPDESK – (MSE)
Trident LDS
eRMS
EXMIS
FSM-3
OIS
RAPS
R-SUPPLY
CIRCUITS (UA)
CIRCUITS (UP)
FIS
ieFACMAN
iNFADS
MAXIMO
CMLS (MSC-LES-AFL)
SHIPCLIP (MSC-LES-AFL)
FACTS
53 TOTAL 29 12 6
13
AC/SOD IN CM
7 3 2 1
6 2 1 2 11
8 2 1 2 13
ALE
NAMSNAVSEA PLM
Navy ERP
NDMS
NMMES-TR
NOSS
TBD(Facilities)
TBD(MSC)
TBD
8 5 2 1 16
SM
6
# of NFRs
FISCAM IT Controls Family LegendAC: Access Controls SOD: Segregation of DutiesIN: Interfaces CM: Configuration Management SM: Security Management
Issues: • Multiple Consolidation Plans• Plans NOT Certified• Plans NOT funded in 2019• Plans NOT Budgeted• Multiple Programs• Multiple Command & Control
Points• Audit CAPs are NOT
integrated into Plans