Department of Defense
Financial Management Functional Strategy
for Fiscal Years 2020-2024
Version 4.0
June 2020
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
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Table of Contents
Executive Summary ........................................................................................................................ 5
FM Strategic Outcomes: .......................................................................................................... 5
FM Functional Strategy Goals:................................................................................................ 5
Introduction ..................................................................................................................................... 8
Section 1. Goals and Objectives ................................................................................................... 11
GOAL 1 – Continue to enhance and implement financial policies and processes to improve,
simplify, and standardize the FM business and systems environment ...................................... 12
Objective 1.1 – Improve and standardize business processes and data for decision making 12
Objective 1.2 – Simplify FM IT business systems and interface environment ..................... 13
GOAL 2 – Develop and strengthen a well-trained financial workforce that has the knowledge
skills, and abilities to support business reform and auditability in DoD. ................................. 15
Objective 2.1 – Provide course-based FM training and developmental opportunities in
required FM competencies in support of the DoD FM Certification Program. .................. 157
GOAL 3 – Develop a standardized PPBE process that enables E2E funds traceability and data
linkage between planning, budgeting, and execution ............................................................. 188
Objective 3.1 – Establish clearer and closer links between prioritized requirements and
program execution ................................................................................................................. 19
GOAL 4 – Achieve a sustainable unmodified audit opinion by improving financial processes,
controls, and information via audit remediation ....................................................................... 20
Objective 4.1 – Achieve an unmodified financial statement audit opinion . Error! Bookmark
not defined.
Objective 4.2 – Continually strengthen compliance with financial management laws,
regulations, policies, and internal controls ............................. Error! Bookmark not defined.
GOAL 5 – Maximize the use, extent, and performance of the Department’s Defense Business
System(s) capabilities where practicable and economically feasible; minimizing the population
of systems and resources required to satisfy the mission of the FM community, to include
increased cooperation and coordination among business system owners to facilitate timely and
effective transformation………………………………………………………………………..24
Objective 5.1 - Define Accounting and Feeder System Target End State………………….24
Objective 5.2 - Develop Defense Business Systems Transformation Roadmap……………26
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Section 2. Financial Management Enterprise Initiatives ......................................................... 27
1. ADVANA .......................................................................................................................... 29
2. USSGL/SLOA/SFIS Compliance .................................................................................... 321
3. Fund Balance with Treasury (FBWT) – Cash Accountability and Traceability ............. 362
4. Intragovernmental Transactions (IGT) ............................... Error! Bookmark not defined.
5. Property ............................................................................................................................ 377
6. Journal Vouchers (JVs) ...................................................................................................... 39
7. Financial Management Information Technology Systems Environment .......................... 40
8. Funds Distribution ............................................................................................................. 42
9. Cost Management .............................................................................................................. 43
10. Planning, Programming, Budgeting and Execution Process Standards ......................... 44
Procure-to-Pay Standards ..................................................................................................... 44
11. DoD FM Certification Program (DFMCP) .................................................................... 46
12. DATA Act ...................................................................................................................... 47
Conclusion .................................................................................................................................. 488
Appendix A – List of Terms ....................................................................................................... A-1
Appendix B – List of Acronyms ................................................................................................. A-4
List of Figures
Figure 1 – FM Data-First Agile Approach ..................................................................................... 6
Figure 2 – FM Functional Strategy ................................................................................................. 7
Figure 3 – Target Approach ........................................................................................................... .9
Figure 4 – FM Data-First Approach ............................................................................................ .10
Figure 5 – FM Functional Strategy Goals and Objectives ............................................................ 11
Figure 6 – “Notional” Defense Business Systems Transformation Roadmap…………………...27
Figure 7 – Financial Mangement Target Equation………………...…………………………….29
Figure 8 – Notional Standard Processes and Data ........................................................................ 41
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List of Tables
Table 1 - ADVANA (formerly, Universe of Transactions) Overview ............................................. .30
Table 2 – United States Standard General Ledger Overview/Standard Line of Accounting/
Standard Financial Information Structure .................................................................................... .31
Table 3 – Fund Balance with Treasury CASH Overview ............................................................ .35
Table 4 – Intragovernmental Transactions Overview .................................................................. .37
Table 5 – Property Overview ....................................................................................................... .38
Table 6 – Journal Vouchers Overview......................................................................................... .39
Table 7 – Financial Management Information Technology Systems Overview ......................... .42
Table 8 – Funds Distribution Overview....................................................................................... .43
Table 9 – Cost Management Overview ........................................................................................ 43
Table 10 – Planning, Programming, Budget, and Execution Standards Overview ..................... .45
Table 11 – DoD Financial Management Certification Overview ................................................ .46
Table 12 – DATA Act Overview ................................................................................................. .47
Published by the Business Process and Systems Modernization Office, Office of the Deputy
Chief Financial Officer, Office of the Under Secretary of Defense, U.S. Department of
Defense.
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Executive Summary
The Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) is the principal
organization tasked with reform to build a simplified, standardized, and data-driven target
financial management (FM) environment. This reform aligns with the National Defense Strategy
and supports leadership’s drive for the Department of Defense (DoD) to become more
productive, effective, and streamlined.
For the first time in history, the Department conducted a full financial statement audit in FY
2018, and now more recently, the subsequent audit in FY 2019. The financial statement audits
resulted in findings from many different functional areas, and the remediation of these findings
will be a significant part of the Department’s FM improvement strategy and an accelerator for
achieving a target environment that is data-driven, standards-based, technology-enabled,
affordable, secure, and auditable.
Rooted in fiscal accountability and financial improvement, the DoD FM Functional Strategy FYs
2020-2024 will lead to strategic outcomes essential for meeting the Department’s national
security mission.
FM Strategic Outcomes:
• Stewardship and public trust of taxpayer funds through transparency
• Audit corrective action sustainability
• Strengthened mission capabilities
• Authoritative, accurate, and timely information for decision making
• Informed, trained, and productive workforce
• Affordable and secure Financial Management environment
• Robust internal control environment which will support and sustain an unqualified audit
opinion
The following five goals are written to facilitate the strategic outcomes.
FM Functional Strategy Goals:
• GOAL 1 – Continue to enhance and implement financial policies and processes to
improve, simplify, and standardize the FM business and systems environment.
• GOAL 2 – Develop and strengthen a well-trained financial workforce that has the
knowledge skills, and abilities to support business reform and auditability in DoD.
• GOAL 3 – Develop a standardized planning, programing, budget and execution (PPBE)
process that enables end-to-end (E2E) funds traceability, limits the use of feeder systems,
and links data between planning, budgeting, and execution.
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• GOAL 4 – Achieve a sustainable unmodified audit opinion by improving financial
processes, controls, and information via audit remediation.
• GOAL 5 – Maximize the use, extent, and performance of the Department’s Defense
Business System(s) (DBS) capabilities where practicable and economically feasible;
minimizing the population of systems and resources required to satisfy the mission of the
FM community, to include increased cooperation and coordination among business
system owners to facilitate timely and effective transformation.
The approach to achieving the goals of the FM Functional Strategy complements the
Department’s audit remediation strategy. Both strategies place the FM community at the focal
point for not just policy and financial reporting, but also operational, performance, and risk
management. To meet this demand, the FM community must consider expanding its “business
partnering” opportunities within DoD and federal government, whereby the focus is upon
improving strategic and operational decision-making reliant upon data and analytics. Business
partnering is more so collaboration and potential leveraging of current and future capabilities that
should align with one or more of the five stated goals. Twelve FM Enterprise Initiatives are
underway to improve, standardize, and simplify existing processes and systems and establish a
foundation for accurate, reliable, and timely data.
By working to implement the FM Enterprise Initiatives and achieve the FM Functional Strategy
goals, the FM community will transform to a data-first culture and add significant strategic value
to DoD decision-making. A “data first” culture places strong emphasis upon aggregation and
cultivation of prioritized data and analytics needed by leadership and staff to manage the
organizational business environment in achieving its defined goals and objectives. Figure 1
shows the data-first approach. By better leveraging the power of data, FM leaders can help
transform the organization’s ability to predict outcomes, plan, and respond appropriately. Not
only will this radically enhance enterprise decision-making, it will significantly increase the FM
function’s ability to contribute strategic value to the Department.
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Figure 1 – FM Data-First Approach
The FM Functional Strategy, depicted in Figure 2, offers FM direction and guidance for the
Principal Staff Assistants (PSAs), Military Departments (MILDEPs) and Other Defense
Organizations (ODOs) as the Department builds for the future. It also provides a foundation on
which to base FM investment decisions that support the FM strategic outcomes.
Figure 2 – FM Functional Strategy
PSAs, MILDEPs, and ODOs should use the FM Functional Strategy during planning and
implementation to ensure:
• A shared vision of FM across the Department that is consistent with DoD’s vision,
mission, and business goals.
• Alignment of FM initiatives with business and audit priorities.
• Dissemination of knowledge about FM-related critical issues and solutions.
• Compliance with DoD’s process and data requirements through strong governance and
informed decision-making.
• Achievable FM milestones that incrementally advance the Department to achieve its
target environment.
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• Effective implementation of Corrective Action Plans (CAPs) aligned with the FM
Functional Strategy that produce sustainable results.
• Reduction of FM legacy, antiquated systems unable to support audit requirements.
• Reduction of point-to-point interfaces to minimize complexity and risk.
• Integrates with respective PSA functional strategy initiatives.
Introduction
The Department of Defense provides combat- military
forces needed to deter war and protect the security of the
nation. To accomplish this mission, the National
Defense Strategy defines three lines of effort. The FM
Functional Strategy aligns with the first and third lines
of effort. The first line of effort aims to restore readiness
to defeat enemies and achieve sustainable outcomes that
protect the American people and our vital interests. The
third line of effort, to reform the Department’s business
practices for greater performance and affordability, aims
to remedy what the Defense Strategy describes as DoD’s
“increasingly unresponsive” environment by
transitioning to a “culture of performance where results
and accountability matter.” It charges the DoD to:
• Deliver performance at the speed of relevance,
• Organize for innovation,
• Drive budget discipline and affordability to
achieve solvency,
• Streamline rapid, iterative approaches from development to fielding, and
• Harness and protect the National Security Innovation Base.
The OUSD(C) is leading DoD’s workforce management transformation as well as the reform of
FM operations into a more standardized and simplified target environment. The DoD FM
Functional Strategy for FY 2020-2024 defines the goals, objectives, and related enterprise
initiatives for achieving a data-driven, standards-based, technology-enabled, affordable, secure,
and auditable systems environment.
The OUSD(C) also leads the annual full financial statement audits, which began in FY 2018.
The audits—likely the largest audits ever undertaken—resulted in findings that DoD leaders are
using to prioritize and focus remediation work. Audit remediation of systems and processes is
foundational to DoD FM evolving from a transactional focus to a value-adding, strategic focus.
END STATE VISION:
Achieve a target FM environment that
is data-driven, standards-based,
technology-enabled, affordable,
secure, and auditable.
FINANCIAL MANAGEMENT
MISSION:
Develop and defend budgets; shape
and provide oversight of FM policy
and operations; strengthen the FM
workforce; maintain a simplified and
standardized FM environment; and
support the mission of the DoD in a
manner that is legal, effective, and
efficient.
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Figure 3 shows how the target approach to achieving the FM Functional Strategy complements
the Department’s audit remediation strategy and incrementally builds on audit successes.
Figure 3 – Target Approach
The focus on remediating audit findings will accelerate FM reform by standardizing and
improving information at all levels of data management and governance as shown in Figure 4.
By better leveraging the power of data, FM leaders can help transform FM ability to predict
outcomes, plan, and respond appropriately. Actionable data intelligence will radically enhance
Department-wide decision-making and significantly increase FM’s contribution to the overall
National Defense Strategy.
Strengthen the Foundation (FY 2020)
* Achieve compliance with USSGL/SLOA/SFIS
standards
* Finalize data strategy
* Continue shift to annual audit culture and
remediation (NFR and CAP tracking and resolution)
Strengthen the Surroundings (FY 2021-2023)
* Fix critical feeder/reporting systems
* Aggressively sunset legacy systems
* Implement direct treasury disbursing, intra-governmental
transactions, cash accountability, and procure-to-pay
“handshakes” initiatives
* Reduce point to point interfaces (via DoD Global data
Exchange (GEX) or Application Program Interfaces (APIs)
* Automate processes (e.g. robotics)
* Implement big data and analytics technologies
Build to the Future (FY 2024+)
* Enable interoperability between systems
* Manage via financial management, performance
management, risk management, and cost management
analytics
* Standardize shared service environment
* Strengthen the foundation of audit and internal
controls best business practices
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Figure 4 – FM Data-First Approach
The FM Functional Strategy was developed to meet the needs and requirements of multiple
audiences including FM executives, analysts, and system program managers. The
recommendations are based on rigorous analysis, including consultation with other federal
agencies, benchmarking against leading commercial practices, and results of multiple pilot
efforts currently underway in the DoD. The strategy addresses specific material weaknesses and
critical issues that adversely affect the way the Department conducts business. It also provides
direction and guidance to the MILDEPs and ODOs for portfolio-based investments, the DoD’s
FM vision over the next five years, and a prioritized focus on remediating audit findings to
achieve an unmodified audit opinion.
Section 1 of the FM Functional Strategy defines five high-level goals and expected business
outcomes of achieving each goal. Supporting objectives add focus to each goal. Actions the
Department must take to meet each objective and possible success indicators are also described.
Related FM Enterprise Initiatives, such as improving cost management, are listed for each
objective. Section 2 of this strategy presents a more detailed overview of each of the 12 FM
Enterprise Initiatives. A list of terms and acronyms are included in Appendix A and B.
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Section 1. Goals and Objectives
Today’s FM community faces myriad challenges from leveraging data and information to make
critical investment decisions to making progress toward achieving an unmodified audit opinion.
Issues such as non-standard processes and technology applications and interfaces, and difficulties
in finding and retaining the right skill sets continue to slow progress in DoD achieving its FM
target state.
The five FM Functional Strategy goals and corresponding objectives as shown in Figure 5
provide a framework for how the financial community will achieve its data enabled target state.
Figure 5 – FM Functional Strategy Goals and Objectives
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GOAL 1 – Enhance and implement financial policies and processes to improve, simplify,
and standardize the FM business and systems environment
Without continual improvement, achieving an unmodified audit opinion may not be efficient or
sustainable. Objectives 1.1 and 1.2 support the achievement of a standardized and simplified FM
business and systems environment. The first steps are to define and improve business processes
to conform to financial policies, then define the data environment, and, finally, implement the
technology. Advances in technologies such as process automation using robotics and big data,
and analytics will give DoD leaders real-time access to strategic data and allow the workforce to
focus more on analysis and less on transaction processing. Tone from the top must promote a
strong internal control program as a top priority from senior management.
Expected Business Outcomes: reduced reconciliation work to identify, cultivate, and
assemble data; supportable transactions; stronger internal controls; timely, accurate, and
reliable financial data and cost tracking; improved interoperability between systems; E2E
funds traceability between budget and expenditures; and cost effective business
environment
Objective 1.1 – Improve and standardize business processes and data for decision making
The complexity and differences in business processes and data across the Department make it
difficult for an auditor to understand DoD’s business and for a financial manager or program
manager to implement or execute those processes efficiently and effectively. The Department
must continue its drive toward a culture of continual improvement with a focus on standardizing
and simplifying E2E processes.
The lack of fully implemented data standards makes it difficult for the Department to be
interoperable and communicate effectively across the enterprise. The implementation and
enforcement of data standards and business rules will improve the timeliness, accuracy, and
reliability of financial data, allow for better decision making, and reduce costly reconciliation
work.
To meet this objective, the Department must:
• Develop, implement, and enforce data standards (e.g., United States Standard General
Ledger (USSGL), Standard Line of Accounting (SLOA), Standard Financial Information
Structure (SFIS), Purchase Request Data Standard (PRDS), and Procurement Data
Standard (PDS))
• Conduct standards assessment reviews on audit critical FM systems
• Focus on E2E process improvement and business process re-engineering
• Apply business best practices already implemented in the DoD
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• Establish business performance metrics and action plans with focus on root cause
resolution
• Eliminate non-value added process steps
• Focus on continual process improvement
• Leverage data analytics technologies
• Use data to make critical, strategic, and operational business decisions
Related FM Enterprise Initiatives: USSGL/SLOA/SFIS compliance, PPBE standards, funds
distribution, Intragovernmental Transactions (IGT), ADVANA, Fund Balance with Treasury –
Cash Accountability and Traceability (FBWT – CASH), and cost management
Possible Success Indicators:
• Percent of systems compliant with USSGL/SLOA/SFIS
• Percent of SFIS elements available without any data transformation or crosswalk
• Percent of accounting systems compliant with PDS and PRDS
• Percent of entitlement systems compliant with PDS
• Percent of transactions compliant with SLOA using the SLOA validation service
• Percent of key data exchanges using the SLOA validation service
• Percent of DoD organizations that have implemented the DoD cost management
framework
• Percent of source system attributes that carry forward to accounting event
• Percent of appropriations that use Enterprise Funds Distribution (EFD) to track to the
lowest level of distribution by budget allotment line item identifier
Objective 1.2 – Simplify FM IT business systems and interface environment
The number and variety of DoD business and financial systems as well as the level of effort and
cost to achieve an unmodified audit opinion are significant. Systems material to audit include
DBSs, custom-built legacy systems, financial systems, micro-applications, and non-financial
feeder systems.
Systems also vary widely in technology and function. Financial systems include budget,
accounting, and finance systems, as well as business feeder systems, such as personnel, logistics,
and property systems where most financial transactions originate. Despite the progress made,
there are still dependencies on point-to-point interfaces multi-tiered interfaces, super feeders that
consolidate transactions, and legacy systems built prior to current data standards and laws,
regulations, and policies, such as FFMIA, USSGL, SFIS, and the Treasury Financial Manual.
It is difficult to reconcile financial statements to the specific business events due to the lack of
standard business processes; data exchange standards; use of non-accounting feeder system; and
reliance on point-to-point interfaces. These legacy systems and point-to-point interfaces often
lack controls as identified in DoD-wide recent and past DoD financial statement and systems
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audit results. The complexity of DoD’s business systems environment has made the audit
challenging. Shared-common, standardized, brokered services streamlining data standards
compliance are key alternatives for the Department to leverage to fullest extent possible in lieu
of upgrading these applications to be compliant, which will be costly and time consuming.
Implementing standard business processes and data, big data and analytics technologies,
automation via robotics, reducing the number of legacy systems and point-to-point interfaces,
and utilizing existing compliant FM target systems will simplify the business environment.
To meet this objective, the Department must:
• Retire legacy systems, especially non-value added feeder systems that consolidate
transactional data
• Maximize the use and functional footprint of DBSs, when appropriate, to reduce the
number of systems, interfaces, handoffs, and customizations in order to leverage proven
existing controls
• Establish and enforce data standards and exchanges
• Utilize the GEX as a Standard Transaction Broker (STB) or Application Programming
Interfaces (APIs) to reduce point-to-point interfaces, improve interoperability between
systems, and strengthen interface controls
• Leverage process automation (e.g. robotics)
• Implement big data and analytics technologies
• Move toward DoD (federal, when appropriate) shared service solutions with standardized
systems, processes, and governance
• Leverage existing FM target system capabilities to consolidate systems with duplicative
and similar capabilities
Related FM Enterprise Initiatives: FM IT systems environment; USSGL/SLOA/SFIS
compliance; FBWT – CASH; PPBE standards; and IGT
Possible Success Indicators:
• Percent reduction of legacy FM business systems
• Percent of source business events entered directly into financial system
• Percent of USSGL, SLOA, and SFIS compliant systems
• Percent of accounting systems that have implemented PRDS/PDS
• Percent of entitlements systems that have implemented PDS
• Percent of accounting transactions that carry trading partner information
• Percent of duplicate master data for suppliers
• Percent of duplicate master data for customers
• Percent of interface exceptions based on historical reconciliations
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• Percent of transactions entered by automated means via business event
• Evidence and proof of interface controls and audit reports
• Number of labor hours saved via automation
GOAL 2 – Develop and strengthen a well-trained financial workforce that has the
knowledge, skills, and abilities to support business reform and auditability in DoD.
1
People are an organization’s most important asset, and there must be a concerted effort to retain
and attract talented leaders and analysts to the DoD FM community.
Expected Business Outcomes: requisite knowledge, skills, and abilities to perform
effectively in all FM career series; closure of identified competency gaps; improved
analytic capability across the workforce; and improved audit and remediation
capabilities.
The DoD Financial Management (FM) Workforce
The DoD FM workforce is comprised of approximately 54K civilian and military personnel of
various FM disciplines. The FM workforce is broadly defined as DoD military and civilian
personnel who perform FM work and are assigned to FM positions. Personnel in FM positions
include military and civilians who perform, supervise, or manage work of a fiscal, financial
management, accounting, auditing, cost or budgetary nature, or work that requires the
performance of FM-related work. The Under Secretary of Defense (Comptroller) (USD(C)) is
responsible for the professional development of the FM workforce. The Financial Management
Office of the Secretary of Defense Functional Community Manager (OFCM) serves as principal
advisor to the USD(C) on workforce development matters and is assisted by the FM Component
Functional Community Managers (CFCM).
The Department has many FM workforce initiatives to further develop and sustain a well-trained
FM workforce that has the requisite FM knowledge, skills, and abilities to effectively meet the
Department’s FM workforce strategic objectives, which are captured in the FY 2019-2023 DoD
FM Strategic Workforce Plan (SWP). The FM workforce provides critical enabling support to
the Department’s FY 2018 National Defense Strategy (NDS) line of effort one (Rebuild military
readiness as we build a more lethal Joint Force), and line of effort three (Reform the
Department’s business practices for greater performance and affordability). The FY 2019-2023
FM SWP is aligned to both lines of effort. The FM workforce supports line of effort one of the
NDS through strategies and initiatives in the OUSD (P&R) Human Capital Operating Plan.
Additionally, the FM workforce supports the Department’s strategic objective 3.3 (Improve the
quality of the budgetary and financial information that is most valuable in managing the DoD).
1
Department of Defense Financial Management Workforce Strategic Workforce Plan FY 2019-2023
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Key initiatives in the FM workforce portfolio align with the guidance in the President’s
Management Agenda (PMA) and the DoD Agency Reform Plan.
The FM workforce strategic initiatives include the FY 2019-2023 DoD FM SWP, an FM
competency gap assessment, a DoD FM Workforce Dashboard, a Department-wide FM focused
developmental assignment program, and the DoD FM Certification Program (DFMCP). These
initiatives are all designed to build and maintain the technical and leadership competence of
individual FM members.
• The FY 2019-2023 DoD FM SWP is a four-year, forward focused document that sets
forth the goals and objectives that will enable the FM Community to recruit, train,
develop, and retain a strong, agile, and responsive FM workforce ready to meet future
Department requirements. The FM SWP was developed collaboratively with FM and
human capital subject matter experts from across the DoD FM Community.
• OUSD (P&R), in collaboration with the DoD FM Community, conducted a
comprehensive competency gap assessment of the DoD FM competencies via the
Defense Competency Assessment Tool. The DoD community, in coordination with FM
subject matter experts, also conducted a revalidation of the DoD FM competencies. All
FM competencies were revalidated. Workforce competency gap assessments are
essential elements in workforce planning, and DoD FM competencies are the foundation
of the FM workforce portfolio. Results from the competency gap assessment indicated
no significant competency gaps in the FM workforce and will be used to inform future
workforce improvement strategies for FM personnel.
• The DoD FM workforce dashboard is a comprehensive visualization and analytical tool
that incorporates Department–wide FM workforce data (workforce demographics,
DFMCP, Federal Employee Viewpoint Survey results, Department-wide FM
training/course data, FM direct hire, and competency assessment data) from various
sources, and provides OUSD(C) and the Components with a decision making tool that
was not previously available. The FM workforce dashboard provides FM leaders with
automated, accessible and reliable data in a very short period of time.
• FM STARs, a developmental assignment program is designed to foster a Strong, Trained,
Agile and Ready (STAR) workforce. The purpose of the program is to provide
opportunities for members of the DoD FM civilian workforce to advance their breadth of
knowledge and experience through three to six month developmental assignments in
other DoD Components. A pilot was conducted in the 4th quarter of FY 2018 and
approval to proceed to a formal program was granted in FY 2019. FM STARs is also an
FM workforce retention tool.
• The DoD FM Community published its first year-in-review, the DoD FM FY 2019 Year-
in-Review, which highlights the accomplishments of the FM Functional Community
relative to functions of the financial management community.
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The goal of the FM workforce portfolio is to improve DoD financial management capabilities
through training and development that is focused on DoD FM competencies, to include decision
support and analysis competencies.
The DoD FM Community published its first year-in-review, the DoD FM FY 2019 Year-in-
Review, which highlights the accomplishments of the FM Functional Community relative to
Objective 2.1 – Provide course-based FM training and developmental opportunities in
required FM competencies in support of the DoD FM Certification Program.
The Department has integrated multiple FM development efforts across the DoD into a
mandatory cohesive program that educates, trains, and certifies FM personnel (civilian and
military). The foundational framework consists of 24 enterprise-wide FM competencies, with
associated proficiency levels, and selected leadership competencies. A landmark initiative for
the DoD FM community, the program ensures that the FM workforce has course-based training
in the requisite FM and leadership competencies to prepare them to perform FM functions now
and in the future. This course-based program, known as the DoD FM Certification Program
(DFMCP), began as a pilot in 2013 and is now fully implemented and at steady state.
The DFMCP continues to be the mechanism to ensure that the FM workforce receives required
FM and leadership focused training and development.
Ensuring the FM community has a broad, enterprise-wide perspective, and standard body of
knowledge throughout the Department is important to overall FM workforce readiness. The
Department is working to execute its mission with fewer resources. Budgetary uncertainties
compound the Department’s fiscal challenges and have the potential to negatively affect mission
readiness. To respond to these challenges, the DoD emphasizes a more disciplined use of
resources and strong FM. The Department must make future choices based on timely, accurate,
and reliable data and is focused on preparing for the future by rebalancing defense efforts in a
period of increasing fiscal constraint. This focus, coupled with ongoing audit remediation and
process and data standardization efforts, informs key FM initiatives that seek to address
challenges and strengthen the FM workforce to produce better information for decision-making.
The DoD FM Certification Program:
• Guides FM professional development
• Provides a workforce with the right skill sets
• Establishes a mechanism to encourage key training in:
o DoD audit and remediation
o Decision support and analysis,
• Encourages career broadening and leadership
• Transitions the workforce to a more analytical orientation
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To meet this objective, the Department must:
• Ensure the workforce has the continued opportunity to achieve the required certification
at the appropriate level
• Ensure adequate training sources are available
• Recruit and retain talented individuals for the FM workforce
Related FM Enterprise Initiatives: FM certification
Possible Success Indicators:
• Percent of FM Workforce Members in Good Standing. This metric represents the
percentage of FM members who are compliant in both initial certification and continuing
education training.
• Percent of FM civilian workforce retained
GOAL 3 – Develop a standardized PPBE process that enables E2E funds traceability and
data linkage between planning, budgeting, and execution
The DoD PPBE process determines which programs are funded to meet defense strategy
requirements. The DoD uses the PPBE process to prioritize and allocate resources in alignment
with carrying out the Department’s national security objectives. The FM community contributes
to the PPBE process by translating the Department’s priorities into fiscal requirement by way of
budget formulation and justification, on through apportionment and allocation, and obligation
and execution of monetary resources.
The Department cannot meet national defense objectives without adequate resources. The status
of resources, or lack thereof, directly impacts force development, mission capabilities, and
capacity. The FM community must plan, program, budget and execute prudent and justifiable
budgets that achieve U.S. national defense objectives. This goal ensures that the FM community
ensures adequate resources are available and funding requests do not exceed the minimum
amounts required to meet defense objectives within reasonable risk. The limited resources
entrusted to the FM community from the American taxpayer demands innovative budgetary and
financial stewardship.
Expected Business Outcomes: timely, accurate, and reliable financial data for decision
makers; supportable transactions; E2E funds traceability between budget and
expenditures; and cost effective business environment
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Objective 3.1 – Establish clearer and closer links between prioritized requirements and
program execution
To ensure confidence in the institution’s budgeting system, the Department’s enterprise-wide
PPBE process will yield more transparency by linking expenditure, revenue, and related metrics.
This will facilitate execution reviews of past decisions and actions. Recommendations from
these reviews will be linked to decisions on future resource allocations.
To optimize funding, the DoD needs to develop clearer and closer ties between prioritized
requirements and mission execution. Clear traceability between the budget and execution will
provide critical insight to DoD decision makers when formulating budget requests. Timely,
accurate, and reliable budget and execution data is critical in making resource decisions.
The Department continues its effort toward a standard PPBE process with the implementation of
modern budget formulation systems, EFD, further exploration of the budget capabilities within
DBSs, cost management, and improved E2E procure-to-pay and budget-to-report capabilities to
provide enterprise-wide PPBE visibility.
To meet this objective, the Department must:
• Develop, implement, and enforce data standards (e.g., USSGL/SLOA/SFIS, PRDS, PDS)
• Develop and implement a standard PPBE enterprise-wide process and system; these
include funds distribution, budget planning and submission, cost management
framework, and E2E procure-to-pay capabilities/standards
Related FM Enterprise Initiatives: USSGL/SLOA/SFIS compliance, PPBE standards, funds
distribution (e.g., EFD), cost management
Possible Success Indicators:
• Percent of systems compliant with USSGL/SLOA/SFIS
• Percent of appropriations that use EFD to track to the lowest level of distribution by
budget allotment line item identifier
• Percent of transactions that carry budgetary elements on all transactions without
transformation or crosswalk
• Percent of budget executed at component versus sub-allotted
• Run rate of budget execution across life of appropriation
• Percent of quarterly review variances that are not supported by normal business events
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
20
GOAL 4 – Achieve a sustainable unmodified audit opinion by improving financial
processes, controls, and information via audit remediation
FY 2019 was the second year of a department-wide, full-financial statements audit that included
the MILDEPs and ODOs. More than 24 stand-alone audits were completed, including of the
intelligence organizations, in addition to a consolidated audit of the Fourth Estate. DoD
Inspector General or external auditors issued 3,244 notices of findings and recommendations
(NFRs), including 1,767 NFRs that were repeated or reissued from FY 2018. During FY 2019,
the Department closed over 20 percent of the FY 2018 NFRs. The new, modified, or reissued
NFRs arose from continued or increased testing (in some cases, breadth and depth of testing
increased, while in others a shift from judgmental to statistical sampling occurred). NFRs were
also reissued or modified when CAPs were implemented too late for testing during the FY 2019
audit.
The Secretary of Defense provided strategic audit guidance for the FY 2019 audit to help
prioritize the NFRs and corresponding CAPs and address underlying causes of the disclaimers of
opinions issued for stand-alone audits and the consolidated audit. The FY 2019 audit priorities
include the four areas identified in FY 2018 Real Property, IT (Access Controls), Inventory and
Operating Materials & Supplies (OM&S), and Government Property in the Possession of
Contractors. The FY 2020 priorities added FBwT, Financial Reporting Internal Controls, the
Joint Strike Fighter Program, and Audit Opinion Progression. These areas were selected for
increased attention by the Services, ODOs, and at the consolidated level. As a result, leadership
across the Department involved with these eight areas are working to develop and implement
solutions with a focus on downgrading or removing material weaknesses.
To develop objectives and strategies for fiscal years 2020 through 2024, the Department assessed
the first two years of audit; the material weaknesses identified by the DoD IG, external auditors
and OUSD(C); and their root causes of the identified material weaknesses; and the steps required
across the enterprise to receive unqualified audit opinions by the Services and Components. The
Department is working toward an efficient, sustainable, and auditable business environment that
demonstrates good stewardship of taxpayer funds. Corrective actions that provide the most value
to the warfighter are the priority. For more information regarding the Department’s audit
strategy, please refer to the DoD Consolidated Audit Strategy
2
.
Expected Business Outcomes: auditable business environment; timely, accurate, and
reliable property, inventory, and financial data for decision makers; supportable
transactions (eliminations); reduced reconciliation work (daily FBWT reconciliation, JVs,
open obligations, etc.); improved interoperability between systems; stronger internal
2
http://comptroller.defense.gov/FIAR.aspx
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
21
controls; strengthened mission capabilities; enhanced stewardship and public trust; and
unmodified audit opinions.
Objective 4.1 – Achieve an unmodified financial statement audit opinion
The Department is marching toward achieving an unmodified full financial statement audit
opinion. The OUSD(C), MILDEPs and ODOs are prioritizing initiatives and resources as part of
audit remediation. The Department’s objective is to receive an unmodified audit opinion and
institute sound FM practices to safeguard taxpayer dollars and improve analytical capabilities.
To meet this objective, the Department must:
• Accurately account for all Real Property (buildings and structures) and Inventory as well
as Government-property in the possession of contractors and the Joint Strike Fighter
Program.
• Develop and reconcile a universe of transactions including sensitive activities
• Execute successful reconciliation of FBWT
• Support unsupported JVs as well as work toward eliminating system and manual JVs that
could be supported by transactional detail
• Comply with the USSGL, SLOA, and SFIS
3
to align with federal data standards and
controls to improve support of open obligations; existence, completeness, and rights and
obligation of assets; valuation of assets; and environmental and disposal liabilities
• Follow Generally Accepted Accounting Principles (GAAP)
• Implement U.S. Treasury’s IGT solution, G-Invoicing, to support eliminations
• Provide a capable and sustainable audit infrastructure
• Resolve material weaknesses and ensure effective implementation of CAPs
• Provide standard E2E business process documentation
Related FM Enterprise Initiatives: FM IT systems environment, FBWT – CASH, ADVANA,
property, JVs, sensitive activities guidance, and IGT
Possible Success Indicators that will increase the number of DoD organizations with
unmodified audit opinions:
• Percent of transactions are reconciled to general ledger systems
• Percent of transactions are reconciled from feeder source systems to the general ledger
• Percent of Component Trial Balances reconciled to Principal Financial Statements
• Decrease in percent of abnormal balances
• Increase in percent of dollars reconciled to Treasury (Statement of Differences and Cash
Management Report)
3
http://dcmo.defense.gov/Products-and-Services/Standard-Financial-Information-Structure/
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
22
• Decrease in percent of overaged undistributed transactions (in-transit and unmatched)
• Decrease in overaged transactions in suspense accounts
• Validation of deposit fund activity
• Improved distribution of aged payables
• Improved distribution of aged receivables
• Decrease in aging of unfilled customer order balances
• Decrease in aging of unliquidated obligation balances
• Decrease in percent of negative accounts payable
• Decrease in percent of unsupported JVs
• Increase in percent of journal voucher root cause analysis, followed by corrective actions
(i.e. correcting the posting logic)
• Increase in percent of supportable financial statement lines by compliant business process
versus journal adjustment
• Mission critical assets existence and completeness baseline for general equipment, real
property, internal use software, and inventory and operating material and supplies
• Reduction in dollar amount and percent of adjustments after physical inventory counts
• Increase in dollar amount and percent of inventory reconciled between DLA and the
Services
• Increase in percent of total dollar amount of supported eliminations
Objective 4.2 – Continually strengthen compliance with financial management laws,
regulations, policies, and internal controls
The Department is committed to responsible stewardship of its resources and continues to focus
efforts on strengthening processes to comply with FM laws, regulations, policies, and internal
controls. Senior leadership’s posture, also referred to as ‘tone at the top,’ toward internal
controls sets the tone throughout an organization and establishes a culture of awareness as to
how leadership views its mission and objectives. When senior leadership demonstrates that
strong internal controls are critical to the entity’s function and operation, this attitude permeates
throughout the organization. MILDEPs and ODOs must implement and maintain strong internal
controls. The following areas are critical and require management attention and accountability:
• Governance
• Policy and procedures
• Training
• Fraud risk assessment and prevention
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
23
• IT general controls (e.g., SSAE No. 18
4
and Federal Information System Controls Audit
Manual (FISCAM))
5
• NFR tracking
• Office of Management and Budget (OMB) Circular No. A-123
6
• OMB Circular A-136
• Chief Financial Officers Act of 1990
• Government Management Reform Act
• Government Performance and Results Act
• Statement of Assurance process
• USSGL, SFIS, and SLOA compliance
• Federal Financial Management Improvement Act of 1996 (FFMIA)
• E2E process documentation
• Digital Accountability and Transparency Act of 2014 (DATA Act) implementation
To meet this objective, the Department must:
• Focus upon achieving and sustaining a strong internal control program (without which
the Department will not be able to obtain and sustain an unqualified audit opinion)
• Tighten IT security measures so systems safeguard sensitive data from unauthorized
access and misuse
• Maintain complete, accurate, and up-to-date E2E process documentation Department-
wide and at individual reporting-entity levels
• Maintain documentation and adhere to controls that help auditors understand entity-level
controls, control environment, control objectives, and detailed business processes across
the Department
• Achieve and maintain unmodified SSAE 18 audit opinions
• Standardize and comply with DoD guidance, data standards, and business rules
• Resolve critical NFRs and complete CAPs
Related FM Enterprise Initiatives: USSGL/SLOA/SFIS compliance; sustaining an auditable IT
systems environment; and DATA Act.
4
SSAE No. 18 is an attestation standard put forth by the Auditing Standards Board (ASB) of the American Institute
of Certified Public Accountants that addresses engagements undertaken by a service auditor for reporting on
controls at organizations (i.e., service organizations) that provide services to user entities, for which a service
organization's controls are likely to be relevant to a user entities internal control over financial reporting.
5
The FISCAM presents a methodology for auditing information system controls in federal and other governmental
entities. This methodology is in accordance with professional standards.
6
OMB Circular No. A-123 defines management's responsibility for internal control in federal agencies. A
re-examination of the existing internal control requirements for federal agencies was initiated in light of the new
internal control requirements for publicly-traded companies contained in the Sarbanes-Oxley Act of 2002. Circular
A-123 and the statute it implements, the Federal Managers’ Financial Integrity Act of 1982, are at the center of the
existing federal requirements to improve internal control.
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
24
Possible Success Indicators:
• Increase in the number of shared service providers with unmodified SSAE 18 opinions
• Increase in the number of accounting systems compliant with USSGL/SLOA/SFIS
• Increase in the number of accounting systems compliant with FFMIA
• Increase in the number of feeder systems compliant with USSGL/SLOA/SFIS
• Increase in the percent of obligations and outlays dollars submitted by object class and
program activity (DATA Act)
• Increase in the percent of obligation dollars submitted by award ID (DATA Act)
GOAL 5 - Maximize the use, extent, and performance of the Department’s Defense
Business System(s) capabilities where practicable and economically feasible; minimizing
the population of systems and resources required to satisfy the mission of the FM
community, to include increased cooperation and coordination among business system
owners to facilitate timely and effective transformation.
The Department’s FM information system technology landscape is one of significant complexity
and investment. The FM landscape is comprised of over 340 financially relevant accounting and
business systems representing a total spend of $16.2 Billion in the Fiscal Years Defense Plan
(FYDP) 2020-2024. At the same time accounting and feeder systems are undergoing planned
migrations, the Department is seeking to achieve a favorable audit opinion. Together, these
factors present the Department with an unprecedented opportunity to simultaneously address both
functional and IT requirements with potential cost avoidance and savings if an integrated and
collaborative business transformation approach is taken.
Expected Business Outcomes: optimized use of DBS FM functionality, shared services,
streamlined end-to-end processes and controls, reduced reliance upon non-DBS,
deployment of a federated master data management model.
Objective 5.1 – Define Accounting and Feeder System Target End State
The DoD spends a significant amount of money on its accounting and financially relevant
business systems, operations, and reporting. These systems account for numerous accounting
and control deficiencies which results in unreliable financial and operational information.
Process-related system integration gaps and inconsistent implementation of financial data
standards (FDS), to include the SFIS, are inherent issues throughout the complex environment of
FM-related systems, along with an ineffective enterprise-wide governance structure.
The Department must define its accounting and feeder system target end state in order to
transform its complex systems and data environments into a target state that ultimately results in
reliable financial and operational information.
To meet this objective, the Department must:
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
25
• Establish an integrated, multidisciplinary work group team of Department stakeholders to
define a DoD-wide DBS target end state for FM capabilities that federates all DoD master
data and consumes transactional data to perform real-time data analytics and reporting.
• Define accounting and feeder systems target end state. Develop a target end state
operating model, promoting transitioning of accounting systems to designated DBS,
eliminating where practicable, the current population of 341 financially relevant business
feeder systems. The model must capture the common E2E capabilities of the six DBSs,
Treasury Shared Services, and the federated FM and master data management
capabilities.
• Take the approach feeder system transactions will orginate from the enduring DBSs,
except H2R prcess
• Designate a single-source DBS be utilized for all funds (General Fund, Working Capital
Fund, and Transactional fund)
• Mandate policy changes and BPR are implemented first before customizing a system
• Outsource where appropriate to a federally shared service provider (e.g. Treasury Shared
Services)
• Create data once and replicated it many times; establish one authoritative source for each
unique business master data source, and establish a single location for all transactional
data
• Implement enhanced tiered accountability structure/tiered data governance structure
• Refrain to the extent possible, customization in the current and future DBS
The target end state needs to reflect a simplified DBS landscape which leverages modern and
advanced technologies – facilitated through business, IT system, and vendor integration – to
deliver both functional and compliant system capabilities, managed by a robust cross functional
governance structure, leveraging the federated FM capabilities and master data approach.
Through integrated and enhanced business process reengineering (BPR), the consolidated system
landscape reduces the cost of compliance while also increasing enterprise visibility, reporting
and analytic capabilities.
Related FM Enterprise Initiatives: USSGL/SLOA/SFIS Compliance, FBWT, IGT, ADVANA,
Property, JVs, Financial Management Information Technology Systems Environment, Funds
Distribution, Cost Management, PPBE Standards (Procure-to-Pay), DATA Act, and TDD.
Possible Success Indicators:
• Percent reduction of systems within the Department FM mission portfolio(s);
identification of “savings/avoidance” contributing to organizational resource
management decisions
• Percent of FM-related functionality utilized in core DBSs
• Reduction of point-to-point interfaces, and related cost savings/avoidance
• Reduced number of system data configuration and control audit findings
• Reduced costs associated with auditing due to fewer systems
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
26
Technology Benefits
• Optimized IT staffing through reduced system footprint
• Simplified IT solution, by streamlining and/or standardizing business processes
• Visibility into data from MILDEPs and 4th Estate, enabled by single integrated enterprise
reporting and analytics capability
• Increased internal control quality and enforcement of authoritative source master data
• Reduced extensive redundant systems and points of combatant access
Enterprise / Business Benefits
• Master data harmonization; enablement of centralized process execution and reporting
• Right-time data reporting and analysis enabled by speed of in-memory processing
capability
• Reduced long-term costs associated with parallel and redundant systems to include
development, testing, operations & support, sustainment costs
• Ability to develop enterprise solutions for complying with Laws, Regulations, and
Policies (LRPs)
• Streamlined and/or standardized business processes
• Robust Governance Model with configuration control board accountability
• Resolved gaps and inconsistencies in the current stove-piped DoD business domains’
data standards
FM Benefits
• Improved traceability/internal controls by simplifying and consolidating business
processes and data flows
• Increased implementation of FDS; improving data quality in both core accounting &
feeder systems
• Improved decision support, enabled by OSD-owned enterprise BI capability
• Streamlined and standardized FM & business processes
• Lowered cost of financial / business operations and reduces footprint for IT/FM
remediation
• Reduction / elimination of system "handshakes" and required internal controls
• Lowered E2E business process complexity
• Reduced number of cross walks between systems
• Reduced number of supported and unsupported JVs
Objective 5.2 - Develop Defense Business Systems Financial Management Roadmap
The FM systems target end state requires a transformation roadmap (Figure 6) that captures the
prioritization of movements to transform the current governance structure, implementation of
Federated FM capabilities and the master data management approach, and transition of legacy
accounting and financially relevant business systems.
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
27
The DBS FM Roadmap, aka ‘enterprise roadmap,’ must embrace the collaborative opportunities
that this transformation journey presents. The enterprise roadmap will capture the enterprise-
focused target operating model, which leverages core capabilities, reducing costly customization.
The target operating model will include a transition phase for implementing courses of action.
Within every Chart of Account (CoA) series, the following components exist:
• Governance – Comprised of strategic and operational governance that sets the vision,
ensures value delivery, and aligns organizational and functional requirements, along
with IT services, to the DoD FM objectives. Also, identifies the specific controls that
are in place to manage the in-scope portfolio of systems, mitigate operational and
financial risks, and provide governance to manage data, processes and other assets.
• Process – For FM capabilities and systems, outlines how specific process steps are
related to system-specific OAs, organizational and functional roles and responsibilities.
• Technology – The foundational tools and capabilities that are at the core of the
transformation.
Figure 6 – “Notional” Defense Business Systems FM Transformation Roadmap
To meet this objective, the Department must:
• Collaboratively leverage, to the extent practicable, Department-wide opportunities
towards shared services environment, standardized data standards and systems
configuration, and governance themes as key contributing factors in developing the core
enterprise systems roadmap
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
28
• Maximize use of FM functionality inherent in core enterprise systems, hence, minimizing
a ‘need’ for non-core enterprise systems solutions
• Establish a transformation implementation governance structure to manage the enterprise
system roadmap
Related FM Enterprise Initiatives: USSGL/SLOA/SFIS Compliance, FBWT, IGT, ADVANA,
Property, JVs, FM Information Technology Systems Environment, Funds Distribution, Cost
Management, PPBE Standards (Procure-to-Pay), DATA Act, TDD
Possible Success Indicators:
• Approved Department enterprise business FM systems roadmap
• Percent reduction of systems within the Department FM mission portfolio(s)
• Actual dollars identified as “savings/avoidance” resulting in an approved resource
management decision
• Reduction of point-to-point interfaces and identification of associated fiscal resources
• Reduced number of system control audit findings
• Reduced costs associated with auditing fewer systems
Section 2. Financial Management Enterprise Initiatives
OUSD(C) developed 12 critical FM Enterprise Initiatives to achieve and sustain the target state.
These initiatives also directly support audit remediation and will evolve and be refined overtime.
FM Enterprise Initiatives:
• ADVANA (formerly, Universe of Transactions (UoT)
• USSGL/SLOA/SFIS Compliance (Reform Initiative)
• FBWT – Cash Accountability and Traceability
• IGT
• Property
• JVs
• Financial Management Information Technology Systems Environment
• Funds Distribution
• Cost Management
• Planning, Programming, Budgeting and Execution Process Standards
• DoD Financial Management Certification Program (DFMCP)
• DATA Act
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
29
The FM Functional Strategy Target Equation, as shown in Figure 7, is the framework used to
achieve the target FM environment and should be used when executing the FM strategic
initiatives. Each organization must optimize those variables most critical and material to them to
reach the target state. If the FM community performs business correctly, the outcome will be a
sustainable, data-driven, and auditable business environment.
Figure 7 – FM Target Equation
1. ADVANA (formerly, Universe of Transactions)
Due to the number of and complex amount of systems with the Department, it has been a
challenge to not only identify and define a complete population of transactions, but also
reconcile these transactions to the Department’s financial statements. This is necessary not only
to be in compliance with the DATA Act, but also to achieve auditable financial statements. To
overcome these challenges, the OUSD(C) DCFO developed the ADVANA platform. The
purpose of ADVANA is to create a central repository for the DoD’s vast FM data in order to
define a complete UoT and use this universe to inform FM decision making and remediation
efforts. As of the end of FY 2019, ADVANA is ingesting data from over 100 systems and
standardizing the data using a common data taxonomy.
To support a financial statement audit, the Department requires, at a minimum, the following
capabilities within the ADVANA platform:
• Proof of the existence of all data contained within the financial statement balances
• Proof of the completeness of all transactional data reported within the feeder systems
• Ability to extract a subset population bound by desired attribute(s) including the processes
and controls applicable to the subset population
• Ability to secure, maintain proper access, and protect the data within the ADVANA platform
To date, the ADVANA platform has been a successful undertaking and has demonstrated
measurable benefits, including:
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
30
• Standardized financial data across the DoD in order to complete reconciliations and perform
Department wide analytics
• Provide all audit workbook reconciliations for the TI-97 consolidated audit, as well as Tier 2
entities
• Provide an auditor the ability to sample TI-97 financial transactions across the entire
Department
• Undertaking the UoT solution for both the Army and Navy
• Develop Financial Statement Drilldown capability, to include Unadjusted to Adjusted Trial
Balance reconciliation for the Department
• Become the official TI 97 FBWT Reconciliation tool
• Deployed an enhanced obligations monitoring tool to identify accounts at risk of expiring
and cancelling in support of the new DAR-Q process
• Deployed the NFR and CAP database
• Improved analytic and root cause capabilities where users can move easily between
summarized balances and detailed transactions
• Develop FM monitoring dashboards and tracking metrics to include JVs, Tie Points and
Abnormal Balances
• Simplification of the analytic infrastructure, with fewer moving parts to configure and
manage
• Reduced development and analytic processing time
• Potential to reduce current financial reporting systems that leverage the same data set
Finally, by using the FM audit requirements as the gateway, ADVANA has further evolved into
the DoD enterprise analytics shared service provider with the mission of providing enterprise
business insights to include, budget, cost analysis, contracts, and more. By building the
capability on a standard open source platform, the solution is portable to the DoD cloud
architecture.
FY 2019 ACHIEVEMENTS
• Supported three FY2019 audits (SOCOM, DHP, and Tier 3 & 4)
• On boarded Army and Navy Financial Management offices to support the FY20 Audit
• Ingested over 11 billion transactions
• Added over 5,000 users
• On boarded all DoD to the NFR/CAP database
• Operationalized over 50 TI-97 Feeder Reconciliations
• Expanded the DAR-Q user base and enhanced functionality to support larger services such as the Navy and
Marine Corps
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Consolidated audit portfolio
• Unmodified audit opinion
• E2E funds traceability between
budget and execution
• Timely, accurate, and reliable
data for decision makers
• Budget constraints increase risk
to audit remediation timelines
• System change requests need to
be developed/approved to
achieve capability
• Inability to gain clean audit
opinion on DoD financial
statements
• Inability to trace source
transaction to the USSGL
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
31
• Reduced reconciliation work
• Adoption of DoD-wide
ADVANA solution over
individual tools
MITIGATIONS
DEPENDENCIES
• Undergoing SSAE 18 audit in FY2020
• Utilize inherent DBS transaction traceability
wherever possible
• Non-compliant systems and data should utilize GEX
translation services
• USSGL/SLOA/SFIS system compliance
• Reduction in legacy systems
• Consolidation DoD accounting systems
Table 1 – ADVANA Overview
2. USSGL/SLOA/SFIS Compliance
The purpose of this initiative is to ensure all DoD FM systems comply with the DoD SCOA and
USSGL, which are the foundation for the DoD FM target environment. SFIS is the
Department’s common financial business language that standardizes data elements, business
rules, and the transaction posting logic used in DoD financial systems. To establish data
standards between trading-partner systems, the MILDEPs and ODOs are implementing a single
SLOA and accounting classification to all applicable transactions. In time, the use of SLOA will
improve interoperability between systems, and help reduce the need for systems interfaces via
use of the SLOA data exchange, leveraging the Standard Transaction Broker. This will improve
controls and assist financial managers and auditors with tracing transactions across multiple
systems. The OUSD(C) Office of the Deputy Chief Financial Officer (ODCFO) will assess key
FM systems and data exchanges to help ensure compliance with standards.
FY 2019 ACHIEVEMENTS
• Reviewed all audit NFRs to determine effect of SFIS / SLOA on Department financial statement auditability.
• Developed cost model to project likely future costs for Audit NFRs based on SFIS / SLOA non-compliance.
• Reviewed all SFIS compliance assessments to determine enterprise SFIS / SLOA compliance trends.
• Continued SFIS compliance assessment testing for select target accounting systems.
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Unmodified audit opinion
• E2E funds traceability between
budget and execution
• Improved interoperability
between systems
• Timely, accurate, and reliable
data for decision makers
• Reduced reconciliation work
• Supportable transactions
• Legacy systems are antiquated
and it would be too costly to
upgrade them to
USSGL/SLOA/SFIS compliance
• Systems become compliant at
different times creating a
“hybrid” environment; this
degrades interoperability
between systems
• System change requests need to
be scheduled and developed to
achieve compliance
• Inability to transform legacy
data to be compliant
• Inability to gain clean audit
opinion on DoD financial
statements
• Insufficient accountability of
DoD resources
• Continued information system
control weaknesses
• Failure to implement common
business language resulting in
component-level financial
statements and/or DoD-level
financial statements to have
inconsistent data
• Systems may be recording
transactions incorrectly and
reporting incorrectly
MITIGATIONS
DEPENDENCIES
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
32
• OUSD(C) monitors FIAR activity to assess and migrate
risk to achieve unmodified audit opinion; using the FIAR
governance process as a mechanism to review solutions,
best practices, and other remedial actions
• Conduct business-process re-engineering to eliminate
legacy systems that are not capable of being
USSGL/SLOA/SFIS compliant
• For systems that are USSGL/SLOA/SFIS compliant,
ensure there is a plan to maintain compliance to
USSGL/SLOA/SFIS updates on at least an annual basis
• Resource material FM systems to be SFIS compliant
• Non-compliant systems and data should utilize GEX
translation services
• Utilize inherent DBS transaction traceability wherever
possible
• DoD-wide participation is needed to achieve
an unmodified audit opinion
• Proper planning between the FM community
and the system Program Management Offices
(PMO)
• GEX translation capabilities availability for
legacy systems and data
• Reduction of legacy systems
• Defense Repository for Common Enterprise
Data (ADVANA) for continuous compliance
monitoring.
• Treasury’s USSGL is updated annually; DoD
reporting CoAs and transaction library is
updated afterwards to ensure compliance
Table 2 - USSGL/SLOA/SFIS Overview
3. Fund Balance with Treasury – Cash Accountability and Traceability
FBWT is an asset account that shows the available budget spending authority of federal
agencies. Appropriation warrants (new budget authority generally received annually), non-
expenditure transfers (budget authority given from one agency to another), collections,
disbursements, and related adjustments reported to the Treasury may increase or decrease the
FBWT account balance. Treasury requires that agencies reconcile their FBWT account on a
regular and recurring basis to ensure the integrity and accuracy of their internal and government-
wide financial reporting data. The DoD Components must reconcile their records of available
budget spending authority to Treasury. Each reporting entity must be able to perform a detailed
reconciliation of the balances to the source systems and accounting records. These
reconciliations are essential to supporting the budget authority, outlays, and cash reported on
their Statement of Budgetary Resources and Balance Sheet. During the recent independent audit
of the DoD, the auditors noted several deficiencies in the design and operation of internal
controls for FBWT that resulted in a DoD-wide material weakness. Currently, the Department is
unable to ensure the completeness and accuracy of its FBWT account. Unreconciled variances
and unsupported adjustments to FBWT seriously undermine the integrity and reliability of
DoD’s financial statements. While important for audit, cash balance is more importantly the
foundation of good business practices.
3A Daily FBWT Activity – Cash Accountability and Traceability (CASH)
Implementing daily FBWT reconciliation to the Department’s current monthly reconciliation
process improves the overall accountability and traceability of cash. The Department has
implemented an active Enterprise initiative to transition DoD Components to daily FBWT
reconciliation through becoming a Treasury Disbursing Office (TDO) agency. As DoD is
migrating to TDO, the current process of disbursing using DoD disbursing systems is called
Non-Treasury Disbursing Office (NTDO). The TDO solution ensures that all DoD disbursement
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
33
and collection transactions are accounted for, properly documented, and auditable from inception
through reporting. It provides for traceability and timeliness of financial transaction processing
and helps establish an environment based on complete and accurate reporting. The Department
is working towards a CASH target environment where it can reconcile cash daily and directly
between the ERPs and Treasury. This will streamline and centralize DoD’s systems and
processes while further advance the retirement of its legacy systems.
Recent successful TDO deployments across the Department have resulted in several benefits.
First, it has allowed the deployed components to conduct regular, automated cash reconciliations
with minimal manual intervention. This significantly increases the components’ visibility into
their cash position supporting accurate cash balances. Second, transitioning to a Treasury shared
services has reduced DoD’s need to perform these functions internally, simplifying daily cash
reporting while leveraging modernized and centralized Federal shared solution. Third, improved
data controls and edit checks, incorporated through direct and standardized exchanges with
Treasury allowed DoD to resolve any differences in a timely basis while reducing the number of
tools and systems involved.
The Department’s business processes and system footprint are extremely complex. The current
environment includes numerous systems and subsystems, each with a different set of processes,
data standards, and internal controls. Further complicating FBWT, DoD is currently utilizing
four disbursing systems under NTDO. The complexity has resulted in an unmanageable and
ineffective processes and system infrastructure. Transitioning to a single, Federal shared service
solution under Treasury to perform all disbursement and collection will assist DoD in achieving
auditability and sustainability for FBWT.
In contrast, the target systems’ infrastructure will leverage streamlined processes, data standards,
and internal controls. This will result in a more effective and efficient CASH environment that
leverages Treasury shared services and standardized DoD systems. The target TDO end-to-end
processes include data standards for disbursement and collection information exchanges from the
front-end, funds distribution process to the back-end, reporting and reconciliation processes. The
set of data exchanges are referred to as the Defense Enterprise Exchange Data Standard
(DEEDS). The DEEDS leverages SLOA and SFIS as its baseline to help validate and ensure
consistency with enterprise-wide financial reporting. The end-to-end TDO processes also
provide on-boarding phases with detailed requirements to deployments ensuring consistent
implementation across the Department.
Implementation of daily FBWT reporting will require a phased approach for both TDO and
NTDO states. The deployments are being implemented concurrently as follows:
• Interim solution under NTDO transactions; DoD disbursing systems will deploy the Payment
Information Repository (PIR), Collections Information Repository (CIR), and
Intragovernmental Payment and Collection System (IPAC) files to Treasury with transactions
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
34
executed outside of Treasury. Treasury will process these files into the Central Accounting
and Reporting System (CARS) achieving daily FBWT reconciliation and reporting.
• Enterprise solution under TDO; components will continue to migrate NTDO transactions out
of the four DoD disbursing systems into the ERPs for Treasury to directly perform
disbursement and collection under TDO achieving daily FBWT reconciliation and reporting.
• The four DoD legacy disbursing systems and their subsystems will be retired as transactions
are fully migrated to the Federal shared service under Treasury.
3B Reconciling the Balances in DoD Accounts with Treasury - FBWT Reconciliation
In addition to the initiatives to implement daily reconciliation of FBWT disbursements and
collections activities under TDO discussed above, DoD is implementing needed improvements in
the policies, business processes and internal controls affecting the Department’s inability to
reconcile FBWT in the financial systems to Treasury’s records. This also includes developing
effective tools, internal and external to the ERPs, to conduct FBWT reconciliation.
Funds Balance with Treasury Reconciliation Mechanism/Tools: The Department has
thousands of open Treasury accounts (bank balances) that must each have their balances
reconciled to multiple DoD Components’ balances in their general ledgers (book balances)
within numerous systems. Therefore, the Department needs an automated way to validate that
the two sets of records agree. The tools must reconcile FBWT at the detailed transactions level
(voucher level). Additionally, all outstanding differences must be supported at the detailed
transactions level. This reconciliation is equivalent to a private sector company reconciling its
book (cash) balance to its bank statements. Treasury serves as the bank in the case of federal
agencies. The Department is in various stages of developing effective tools to conduct the
FBWT reconciliation. Each Military Service has developed and continues to improve its FBWT
reconciliation tool. This capability is also being developed centrally in ADVANA for DoD.
Improvements in Business Process/Controls: Business processes involving the disbursing
officers reporting Statement of Differences (SOD), suspense and deposit accounts (temporary
holding accounts), undistributed transactions (unprocessed transactions) and the management of
DoD shared appropriations need improvement under NTDO. The DoD Components and DFAS
are improving their business processes to streamline reporting, reduce differences to an
immaterial amount, and support account reconciliations until migration to TDO. The Department
is implementing control procedures to develop and sustain a universe of transaction for each
group of transactions to adequately support DoD’s FBWT. The Department successfully piloted
a project assessing the feasibility of using ADVANA for the Defense-Wide FBWT
reconciliation. The Department is also continuing to build reconciliations in ADVANA to
compare transactions initiated in the source systems to the accounting systems and Treasury’s
balances. These reconciliations will improve internal control over FBWT transactions
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
35
Department-wide. The ODCFO uses its NFRs Database dashboard and other internal tools to
monitor the Department’s overall status in addressing FBWT NFRs and aged balances in
temporary accounts and unprocessed disbursements and collections. The ODCFO also uses the
Dormant Account Review-Quarterly (DAR-Q) application in ADVANA to monitor open
dormant obligations.
Until the NTDO PIR, CIR, and IPAC files are deployed and transactions are fully migrated to
TDO, there is an interim effort to resolve discrepancies in DoD shared appropriations between
the DoD Treasury Index-97 (TI-97) cash balances and Treasury using the Cash Management
Report (CMR). The CMR is a single, internal DoD report that presents the FBWT for all
Defense-wide (TI-97) organizations and programs. These individual organizations’ FBWT are
summed in this report to compare and reconcile to Treasury’s ODOs’ summary appropriation
accounts TI-97. The CMR equates to the ODOs’ “checkbook.” The CMR differences are
unresolved FBWT differences between DoD and the TI-97 appropriation accounts. These
differences result in material unsupported JVs to bring the Department’s balances into agreement
with Treasury’s records. All differences are identified at a summary appropriation level making
it difficult to trace back to the detailed transactions. The OUSD(C) and DFAS are continuing to
work on resolving material differences and improve business processes.
FY 2019 ACHIEVEMENTS
• Exceeded FY 2019 TDO target by 12% with TDO disbursement at $66B
• DoD featured in Treasury’s Future of Financial Management Transformation Stories
• Streamlined and completed standards and requirements for TDO Disbursement
• Initiated and completed standards and requirements for TDO Collection/Debt Management
• Initiated and completed NTDO daily reporting standards and requirements for PIR, CIR, and IPAC
• Completed TDO minimum data element matrix requirement baselined to SFIS/SLOA
• USN Navy ERP deployed TDO capability
• USN OnePay deployed TDO domestic and international capabilities
• USMC deployed additional Military Pay TDO transactions and on target to deploy all transaction types
except JROTC in FY 2020
• DHRA deployed TDO for travel pay under the Defense Travel Modernization effort
• Deployed exchange SLOA validation service for DDRS and Tie-Point requirements
• Deployed non-buy/sell IPAC bulk upload
• OUSD(C) piloted the ADVANA reconciliation tool for FBWT with USSOCOM. The pilot resulted in an
increased match rate from 78.6 to 95.3 percent in current year funds.
• The CMR enterprise-wide initiatives and corrective action plans improved controls and mitigating risks for
the Department’s TI-97 FBWT, directly impacting more than 50 defense agencies
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Supportable transactions, daily
cash balancing with Treasury
• Maximized use of Treasury
disbursing shared service at no
cost to DoD
• Strengthened internal controls -
smaller SSAE 18/SOC footprint
• Inconsistent tone from the top
• Status quo mindset and lack of
TDO knowledge
• FM systems timeliness of
implementing system changes
required to deploy TDO and
interim NTDO solution
• Inability to gain clean audit
opinion on DoD financial
statements
• Failure to implement interim
NTDO daily reporting in CARS
• Failure to implement daily cash
reconciliation
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
36
for audit results with significant
cost savings
• Reduced reconciliation work,
minimized the number of
reconciliations between
disparate systems
• SOD is eliminated from
reporting in the TDO
environment
• Increased data integrity using
system controls
• Unmodified audit opinion
• E2E funds traceability from
budget and fund distribution to
reporting
• Cost effective business
environment
• Strengthened mission
capabilities
• Timely, accurate, and reliable
data for decision makers
• Budget constraints increase risk
to implementation and audit
readiness timelines
MITIGATIONS
DEPENDENCIES
• Complete development of TDO and NTDO
implementation standards, governance and guidance
• Centralize and standardize working groups
• Ensure strict waiver process
• Complete development of centralized FBWT
reconciliation tools (ADVANA)
• Streamline and improve business processes and
controls to support Enterprise solution
• Leadership continuous monitoring of FBWT
sustainment progress and metrics
• Reduction/retirement of legacy systems
• USSGL/SLOA/SFIS system compliance
• Defined E2E daily cash reconciliation process
• Proper planning between the FM community and
the system PMOs
• Exchange translation capabilities for legacy systems
and data
Table 3 – FBWT CASH Overview
4. Intragovernmental Transactions
The purpose of this initiative is to properly account for, reconcile, and eliminate IGT imbalances
from the consolidated financial statements. Reconciled balances between federal entities should
be in agreement and must be subtracted out, or eliminated, from the financial statements when
consolidated. An IGT results when business is conducted between two federal entities. Both
entities must accurately record the event in the same reporting period and match the buying and
selling documentation. Imbalances occur when the federal entities are unable to account for and
reconcile differences. These differences in recording the buying and selling of goods and
services from one another often lack proper documentation. The Department is working closely
with Treasury to implement a standard E2E business process and data exchanges using the
Treasury’s G-Invoicing system (formerly known as Invoice Processing Platform or IPP) and the
GEX.
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
37
FY 2019 ACHIEVEMENTS
• Deployed G-Invoicing Release 3.1 with capability for entities to continue entering GT&Cs with enhanced
functionality
• 90% of entities are now classified by Treasury as capable of inputting agreements
• Developed and socialized end to end process from GT&C creation to financial reporting
• Stood up a G-Invoicing Systems Implementation Group to disseminate information, capture challenges, and
share ideas related to systems implementation.
• Continued to support DoD components onboarding to G-Invoicing Conducted “Roadshows” with each major
system owner to discuss implementation timeliness and challenges
• Hosted Department-wide executive summit and user forums
• Successful tested GEX retrieving GT&Cs from the G-Invoicing Tool
• Took the lead in identification of risks and Information Technology General Controls required for the G-
Invoicing tool to support a SSAE 18 compliance assessment for submission to Treasury
• Identified required system changes for DCAS (settlements) and WAWF( performance) to support
Departmental strategic approach to interfaces to and from G-Invoicing
• Created a system implementation checklist for DoD Components to use for ERPs/financial systems testing to
the G-Invoicing tool
•
Lead accrual methodology and posting logic analysis for G-Invoicing
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Central repository documenting
evidence of all intra-agency
agreements, performance and
receipt
• Elimination of “IPAC pay and
chase” saves time and improves
accuracy of reporting
• Standardized general terms and
conditions, policy, and service
catalog streamlines the buy/sell
process
• Reduce unsupported buyer/seller
elimination JVs
• Entity commitment to plan,
fund, and execute required
system changes
• Uncommitted DBS vendor
support
• Shifting implementation
schedules due to Treasury
changes and workforce
resistance.
• Cross-Functional engagement
• Inability to support eliminations
• Inability for programs to get
funding to make required system
changes
• Uncommitted DBS vendor
support
MITIGATIONS
DEPENDENCIES
• Implement IGT framework. Reengineer E2E
business processes to support eliminations
• Release DoD intragovernmental data standards
• Non-compliant systems and data should utilize GEX
translation services
• Compliance with SFIS
• Development of an IGT E2E process
• Reduction of buyer/seller JVs
• Software vendors changes in DBSs to comply with
IGT data standard
Table 4 – IGT Overview
5. Property
The purpose of this initiative is to achieve and maintain a supportable balance of the
Department’s Inventory and Related Property (I&RP) and General Property Plant and Equipment
(GPP&E). This is especially challenging due to the size, value, complexity, and geographical
distribution of the Department’s portfolio. Additionally, Environmental and Disposal Liabilities
(E&DL) are potentially tied to GPP&E and present further audit challenges.
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
38
To achieve an unmodified opinion, MILDEPs and ODOs must maintain existence, completeness,
valuation, rights and obligations, and presentation and disclosure assertions for all GPP&E,
I&RP, and E&DL that are reported on their financial statements. Because historical
documentation to support values is lacking, alternative methods are prescribed by DoD policy.
MILDEPs and ODOs must also maintain auditable processes, systems, and controls to properly
account for property. To accomplish this, MILDEPs and ODOs must document, test, and
remediate issues that present financial statement risks.
FY 2019 ACHIEVEMENTS
• All accountable organizations conducted a full existence and completeness inventory and reconciliation of
capital assets to accountable property systems of record (APSRs) for Real Property
• Complete physical inventory of all WCF inventory and all general fund munitions/ordnance and uninstalled
engines in its possession
• Each DoD Component established a complete baseline of assets for government property in the possession of
contractors
• DCFO issued:
o Policy on capitalization thresholds for GPP&E
o Guidance for establishing deemed cost for I&RP and GPP&E
o Guidance related to contract financing payments for the procurement of GPP&E and I&RP
o Policy change to account for in-transit inventory
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Increased accuracy of data for
GPP&E and I&RP
• Auditable existence and
completeness baseline for real
property, I&RP, and general
equipment
• Established Property Functional
Council and multiple working
groups to support the
remediation of property related
audit issues
• Implementation of new financial
reporting requirements for real
property
• Development of inventory and
beginning balance for Joint
Strike Fighter (JSF) program’s
global pool of spares and
support equipment
• Implementing deemed cost for
valuation of GPP&E during the
approach to establishing opening
balances
• Additions to APSRs of
previously unrecorded property
in the possession of contractors
• Current policy around bulk
purchases is difficult to
implement
• Multiple interpretations of best
methods of implementing new
DCFO policies
• Utilization of deemed cost for
valuation of GPP&E could result
in large fluctuations to GPP&E
balances
• Lack of cohesive definitions
around assets, inventory, and
property between Comptroller
and Acquisition and Sustainment
(A&S) creates confusion in
policies
• Issues with current definition of
bulk purchases may lead to audit
findings
MITIGATIONS
DEPENDENCIES
• Utilize Property Functional Council to facilitate
communication and decision making on DoD-wide
asset related issues
• Utilize the Defense Audit Remediation Working
Group (DARWG) process to identify and coordinate
solutions for audit related issues to be implemented
across all DoD Components
• Completion of DoD-wide GPP&E, I&RP and E&DL
process control narratives to guide components to
implement controls around asset lifecycle
• Strong relationships between the FM community
and the A&S Community to confirm alignment of
DoD-wide goals
• USSGL/SFIS system compliance
• Reduction in legacy systems
Table 5 – Property Overview
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
39
6. Journal Vouchers
The purpose of this initiative is to determine why unsupported JVs occur and to resolve them.
The volume, frequency, and number of unsupported JVs recorded in preparation of the
Department’s financial statements presents an audit challenge. Certain JVs are required as part
of normal business operations; however, this effort focuses on unsupported JVs. For example,
summary-level accounting adjustments made due to unreconciled balances between systems.
Often these unsupported JVs lack a root cause analysis to justify the adjustment. Excessive
unsupported JVs may indicate underlying problems, such as weak or insufficient internal
controls.
FY 2019 ACHIEVEMENTS
• Decreased unsupported JVs from FY 2018 to FY 2019 counts by 265K or 78% and amounts by 64%
(approx. $2.8T) through implementation of new internal controls and business processes, increased
supporting documentation, and customer collaboration.
• Continued implementing additional JV standardization by enhancing DFAS Form 9339 'DFAS Journal
Voucher Catalog and Checklist' to include data elements for tracking Root Cause Indicator Codes (RCIC) as
well as expanding JV Types and Subtypes. Published DFAS 7040.13-IPM 'Interim Policy Memorandum for
Manual JVs' to mandate the use of DFAS Form 9339 for all manual JVs performed by DFAS personnel.
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Improved FM operations and
more accurate information on
results of business operations
provided to DoD, Congress, and
the public
• Improved accuracy and
traceability of financial
transactions
• Greater transparency between
customers/components and
DFAS regarding JVs
• High volume, frequency, and
dollar value of JVs
• Root cause analysis is extensive
and time-consuming
• Budget constraints increase risk
to audit readiness timelines
• Inability to gain clean audit
opinion on DoD financial
statements
• Inability to meet audit critical
deadlines
• Potential for inaccurate financial
statements.
MITIGATIONS
DEPENDENCIES
• Complete root cause analysis and corrective action
plan for unsupported JVs
• Non-compliant systems and data should utilize GEX
translation services in conjunction with root cause
efforts to correct posting logic
• Utilize inherent ERP transaction traceability
wherever possible
• Perform tie point reconciliations in the source
accounting system
• USSGL/SFIS system compliance
• System change requests need to be developed/
approved to achieve compliance
• Reduction in legacy systems
• Business process changes to better support JV
documentation
• Accurate and reliable trial balances
• System limitations and lack of complete/accurate
accounting data requires the buyer and seller to
work together prior to financial statement reporting
to reconcile buy sell transactions.
Table 6 – JVs Overview
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
40
7. Financial Management Information Technology Systems Environment
The purpose of this initiative is to maximize the use, where practicable, FM functionality
inherent in DBSs, while reducing, to the maximum extent practicable, legacy FM systems. This
also includes advance integration and use of business analytic tools, and evolution of the roles of
service providers in conjunction with retiring systems to be defined in the ‘enterprise roadmap’
strategy. To achieve and sustain an unmodified opinion, the Department must sustain an
auditable IT systems environment, streamline processes and strengthen internal controls through
standardized, simplified, efficient, and effective integration. Many systems do not comply with
law, regulations and policies, have weak internal controls, are duplicative, increase complexity,
and are a significant expense to the Department.
A DBS’s fundamental value proposition is its inherent integration capability, which supports
auditability and improved efficiency and effectiveness. However, several current DBS
implementations are heavily customized, leverage minimal functionally inherent capabilities, and
exclude critical DoD FM functions and available built-in controls; all of which negate the
fundamental value proposition.
The strongest candidates to leverage existing core DBS and standard integration include business
processes such as DTD, IGT, vendor pay, and procure-to-pay data exchanges (commonly
referred to as handshakes) between FM and procurement. The goal is to reduce inefficiencies
caused by legacy systems, lack of standardization, and weak integration. Improvements in these
areas will evolve service provider roles and shift FM expertise toward higher-value efforts.
The target environment will include:
• Standardized, enterprise-wide data, processes, and systems as a result of the full adoption
of data standards
• Standardized, non-customized, and fully leveraged core enterprise system
implementations,
• Use of shared service providers
• A small number of core enterprise systems in each MILDEP and ODOs which support all
core FM functions
• Integrated FM and non-FM functions within the systems; standardized integration
between non-enterprise feeder systems and core enterprise systems; and direct integration
with U.S. Treasury, eliminating the need for separate entitlement systems and
reconciliations
• Fewer interfaces where non-FM functions are tightly integrated with core accounting
functions
• Financial statements that are traceable to source transactions through the DBS and to any
remaining critical feeders
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
41
• A standardized set of business analytics capabilities that provide, aggregate, analyze, and
drill down capabilities on consistent, comprehensive, and timely data
Figure 8 – Notional Standard Processes and Data
The notional standard processes and data as shown in Figure 8 will help the Department
accomplish the following:
• Support sustainable auditability by eliminating the complexity and non-standardization
that cause auditability problems
• Lower costs by reducing the number of systems, interfaces and resources needed to
resolve data reconciliation, control, and audit problems
• Improve effectiveness by providing more consistent, comprehensive, and timely data and
supporting tools for operational and strategic decision makers at all levels of the DoD
The roadmap to the target environment must support the DoD’s commitment to achieve an
unmodified opinion. As such, the OUSD(C) will re-evaluate the system inventory against the
FM Functional Strategy criteria annually. Expert knowledge of current and target system
capabilities will be integrated with appropriate supporting technology to ensure application of the
FM Functional Strategy criteria to simplify the FM environment.
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
42
As the Department retires legacy systems to sustain an auditable state, it will highlight impacts to
current service provider roles and responsibilities as well as opportunities for advancing them to
higher-value enterprise support activities with significant return on investment.
An important aspect that sustains auditability is service provider integration. A service provider
is a DoD organization that performs a business function or process on behalf of another DoD
organization, such as DFAS providing accounting and finance operations or the
U.S. Army Corps of Engineers providing real property construction. Currently, 10 DoD
organizations act as service providers. In order for their customers to sustain auditability, service
providers and customers must fully integrate audit activities. The Department is working to
ensure effective integration through continual communication, CAP resolution, and SSAE No.
18 assessments.
FY 2019 ACHIEVEMENTS
• Retired four legacy systems
• Identified systems material to financial statements and required that system internal controls be documented,
tested, remediated, and strengthened
• Engaged IPA-certified systems auditors with system audit expertise to assist DoD personnel
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Unmodified audit opinion
• Stronger internal controls
• Improved interoperability
between systems
• Simplified FM systems
environment
• Reduced reconciliation work
• Budget constraints
• FM system environment
complex, non-agile, and
non-compliant
• System change requests need to
be developed/approved to
achieve compliance
• Lack of legacy data migration
strategies
• Fully leveraging FM DBSs
• Inability to gain clean audit
opinion on DoD financial
statements
• Budget and resource constraints
and uncertainties
• System and internal control
weaknesses continue
• Operating inefficiencies,
ineffectiveness, and cost
prohibitive FM environment
continues
MITIGATIONS
DEPENDENCIES
• Develop DTD implementation strategy for and FM
DBSs and target accounting systems
• Utilize inherent DBS transaction traceability
wherever possible
• Execute an aggressive legacy system reduction
campaign
• Non-compliant systems and data should utilize GEX
translation services
• Implementation of DBS full capabilities across the
Department
• USSGL/SLOA/SFIS system compliance
• Reduction of legacy systems
• Implementation of DTD and IGT
• Implement cash accountability framework
• Software vendors changes in DBSs to comply with
IGT data standard
Table 7 –Financial Management IT Systems Overview
8. Funds Distribution
The purpose of this initiative is to ensure that FM systems and processes support auditability and
enable E2E funds traceability. Auditors must be able to track the distribution of funds from
Defense-wide appropriations to the final allotment holder as well as the execution of these funds.
It relies on the foundation initiatives (USSGL, SLOA, and SFIS) to ensure all operational DBSs
and target accounting systems are configured according to DoD FM standards, and currently
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
43
extends to the deployment of the Department-level EFD system and its associated processes.
The goal of EFD is to provide visibility, auditability, and traceability of budget authority for
DoD and to interface with MILDEP and ODO target accounting systems.
FY 2019 ACHIEVEMENTS
• Deployed Wave 2 of EFD
• Deployed DFAS Production Support Environment
• Successfully executed the Annual Close process
• Achieved Full Deployment (FD)
• Successful Go-Live of Release 731.4.5
• 100% compliance w/SFIS 10MR
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Improved financial traceability
of budget and execution data
• Improved access to timely,
accurate, and reliable data
• Completion of EFD software
upgrades
• FM community must agree to
SA solutions for phase II
deployment
• Completion of User Acceptance
Testing against all key
applicable funds distribution
capabilities in EFD
MITIGATIONS
DEPENDENCIES
• Continue using legacy PBAS system, which is not
auditable
• Develop funds distribution guidance
• Use sub-allotment reduction policy and develop
standard process
• Establish EFD Wave 2 Environment to allow Wave
2 users the ability to familiarize with funds flows
and capabilities
• USSGL/SLOA/SFIS system compliance
• FM DBS implementation schedule
• EFD interfaces to DoD accounting and budget
distribution systems
• Reduced use of sub-allotments
Table 8 – Funds Distribution Overview
9. Cost Management
The purpose of this initiative is to develop an enterprise cost management (ECM) framework that
will help the Department better predict expenditures, execute budgets, and maximize resources.
Cost management is the management of information used for budgeting, estimating, forecasting,
and monitoring costs. In today's resource-competitive environment, the ability to reduce and
manage costs strategically is critical.
FY 2019 ACHIEVEMENTS
• Completed frameworks for Acquisition, Human Resources, Maintenance, and Supply Chain LoBs
• Began sustainment activities for all eight LoBs (Real Property, Medical, IT, Financial Management,
• Completed FY 2018 data refresh and publishing for all eight LoBs
• Completed financial common data model for integration across all LoBs
• Integrated fully within the ADVANA Enterprise Analytics environment establishing data connections to
established financial data pipelines and data ingestion processes for non-financial business data.
•
BUSINESS OUTCOMES
CHALLENGES
RISKS
• E2E funds traceability between
budget and execution
• Budget constraints
• Budget constraints
• Budget constraints
• Acceptance of the enterprise
cost management framework
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
44
• Cost effective business
environment
• Strengthened mission
capabilities
• Informed and productive
workforce
• Timely, accurate, and reliable
data for decision makers
• FM system environment
complex, non-agile, and non-
compliant
• Lack of legacy data migration
strategies
• Full use of FM DBS capabilities
• Not all FM and time and labor
systems have cost management
capabilities
• Cost management is not an
inherent skill set in the
Department
• Acceptance of the enterprise
cost management framework
• Lack of priority on cost
management initiative
MITIGATIONS
DEPENDENCIES
• Standardization of methodologies across ECM
frameworks
• Standardization of analytic product look and feel
• Implementation of full enterprise business
capabilities across the Department
• USSGL/SLOA/SFIS system compliance
• Reduction in legacy systems
• Development of ECM framework training
• FM certifications
Table 9 – Cost Management Overview
10. Planning, Programming, Budgeting and Execution Process Standards
The purpose of this initiative is to improve budget and execution financial data, resource
decisions, and planning. To optimize funding, the Department needs to develop clearer and
closer ties between prioritized requirements and program execution. Clear traceability between
the budget and execution will provide critical insight for decision makers when formulating
budget requests and furthering goals of cost management. The Department continues its effort
toward an enterprise-wide, standard and transparent PPBE process with the implementation of
budget formulation and EFD, further exploration of the budget capabilities within DBSs, cost
management, and improved E2E procure-to-pay capabilities.
Procure-to-Pay Standards
The Department faces challenges related to achieving auditability. Key enterprise financial
metrics indicate a significant number of unmatched transactions, especially within the Contract
Pay and Vendor Pay business areas. Analysis has shown that handshakes between functional
communities lack the standard business rules and internal controls necessary to eliminate
material weaknesses, facilitate downstream business processes, and achieve
interoperability between systems. In response to these findings, the financial and acquisition
communities have developed a procure-to-pay target state in which accounting and acquisition
systems must comply with enterprise procure-to-pay data standards. The focus of this effort is
nine procure-to-pay handshakes that also support the FBWT-CASH and IGT initiatives:
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
45
• Handshake 1 - Define and Fund the Requirement: The development and receipt of an
appropriately formatted, set of Purchase Request (PR) data by the contract writing
system. This process includes the performance of a commitment and certification of
funds against a PR in the accounting system.
• Handshake 2 - Pre-Award Funds Check: The execution of a pre-award funds validation
or “funds-check” in order to ensure that funds committed remain unchanged and
certifiable.
• Handshake 3 - Post Awards to Accounting System(s): The automated electronic
recording of the obligation, including the full set of contract data required to facilitate
traceability, in the accounting system at time of contract award or funded modification.
• Handshake 4 - Post Awards to Entitlement System(s): The automated electronic
recording of the contract in the entitlement system at time of contract award or funded
modification is critical to successful contract administration.
• Handshake 5 - Confirm Receipt and Acceptance: The confirming of receipt and
acceptance of goods or services, aligned with a specific award, to the Government to
facilitate entitlement. This includes recording ownership of the asset.
• Handshake 6 - Perform Entitlement: The matching of the request for payment (invoice)
to the obligation and receiving report documentation (2-way or 3-way match as required)
and pre-validation of the request for payment (invoice) to the obligation amount to ensure
the availability of funding.
• Handshake 7 - Pay the Vendor and Record Disbursement: Payment systems receive
accurate accounting and entitlement data, which is then used to make timely and accurate
payments to vendors. Payment systems also provide the complete and accurate payment
data to the related Accounting System for general ledger posting.
• Handshake 8 - Report Payments to Treasury: DoD financial systems provide complete
and accurate payment data to Treasury in accordance with Federal standards.
• Handshake 9 - Perform Contract Closeout: Completed/terminated contracts are closed
in DoD acquisition and financial systems, and remaining funds are de-obligated.
The Department will explore other E2E business process opportunities, such as “Hire-to-Retire”,
to improve business processes and data standards.
FY 2019 ACHIEVEMENTS
• Developed logic in the GEX for Handshake 2 to automate the pre-award funds check
• Published Handshake 2 Standard Operating Procedures
• Drafted and Coordinated Handshake 9 Standard Operating Procedures
• Established maps to enable HS4 between Contract Writing Systems and DFAS entitlement system MOCAS
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Consistently trace electronic
transactions from purchase
request to payment for all
• Target accounting and
entitlement systems budget and
• Adoption and adherence to
standard P2P processes and data
standards
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
46
procurement actions across the
DoD, to include tracking of
funding and execution data
• Reduce unmatched financial
transactions
• Reduce risk of Anti-Deficiency
Act violations
• Support DoD FIAR goals
schedule deployment of P2P
handshakes
• Budget constraints
• Full use of FM ERP capabilities
MITIGATIONS
DEPENDENCIES
• P2P handshake policy guidance
• Develop DTD implementation strategy for FM
ERPs and target accounting systems
• USSGL/SLOA/SFIS system compliance
• Accounting systems compliant with Purchase
Request Data Standard and Procurement Data
Standard
• Reduction in legacy systems
Table 10 – PPBE Standards Overview
11. DoD FM Certification Program (DFMCP)
The primary purpose of this initiative is to establish a framework to guide DoD FM professional
development. A second purpose is to provide a consistent, disciplined mechanism to ensure
appropriate training and development in key areas such as audit readiness, decision support,
career development, and leadership. The Department needs a well-trained financial workforce to
solve budget challenges and enable achieving auditable financial statements. While various
MILDEPs and ODOs have outstanding FM training programs, the Department has lacked an
enterprise-wide framework to guide FM training and development.
FY 2019 ACHIEVEMENTS
• 98% of FM Workforce Members in Good Standing. This metric represents the percentage of FM members
who are compliant in both initial certification and continuing education
• 97.81% of FM workforce compliant with both required certification level and CET requirements
• Over 749,000 OUSD(C) developed web-based training courses completed
• Over 2,000,000 hours of training provided through OUSD(C) developed web-based training
• The DoD FM Virtual Training Program, established to provide more cross-
component training
opportunities, became a formal program
• FM STARs, a cross-component FM developmental assignment program, became a formal program
• Sustained the DFMCP Internal Control Plan with the Corrective Action Plan
• Initiated the Non-appropriated Fund FM Certification Program Pilot
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Unmodified audit opinion
• Stronger internal controls
• Informed and productive
workforce
• Strengthened mission
capabilities
• Cost effective business
environment
• Agile and flexible education
opportunities available to
workforce as the Department’s
FM environment evolves
• Workforce desire to achieve FM
certification
• Department’s ability to attract
and retain a workforce with the
requisite knowledge, skills, and
abilities to support ongoing audit
and remediation
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
47
• Reduced reconciliation work
•
Supportable transactions
MITIGATIONS
DEPENDENCIES
• FM certification program and goals
• Training facilities and resources
• Department’s FM community
Table 11 – FM Certification Overview
12. DATA Act
The Digital Accountability and Transparency Act of 2014 (DATA Act) amended the Federal
Funding Accountability and Transparency Act of 2006 (FFATA) to require the public reporting of
additional financial data to supplement the current contract and financial assistance award data on
USASpending.gov. The goal of the law is to improve the ability of the public to track and
understand how the government is spending their tax dollars. The DATA Act requires Agencies
to report/certify their financial and award data to Treasury on a quarterly basis, for public
consumption on USASpending.gov. This information includes how much funding the Department
receives; where the funding comes from (e.g., appropriations, transfers, and carry-forward
balances from prior fiscal years); how the department plans to spend the funding; and how the
Department actually spent the funding, to include the disclosure of the entities or organization
receiving federal funding via contract and grant awards.
While DoD has been reporting data from six of the seven files required under the DATA Act since
April 2017, the DoD has continued to make progress to fully satisfy the requirement for
transparency while protecting the interests of national security. Working closely with stakeholders
across the Federal government, the DoD is now able to achieve full compliance with the DATA
Act file reporting requirements by reporting all available system level award financial data. The
DoD is fully committed to transparency of the taxpayer dollars entrusted to the Department as it
continues to reform and modernize the DoD community for greater affordability, accountability,
and performance.
FY 2019 ACHIEVEMENTS
• Achieved full compliance with the DATA Act reporting requirements
• Developed and issued a DATA Act Data Quality Plan with component level application
BUSINESS OUTCOMES
CHALLENGES
RISKS
• Improved transparency of
financial and award data
• Improved public confidence in
DoD use of taxpayer dollars
• Improved financial traceability
and reporting
• Balancing transparency while
protecting national security
• Compliance to the DATA Act
requirements
MITIGATIONS
DEPENDENCIES
• Stakeholder collaboration
• ADVANA
• Data standardization in DoD and non-DoD systems
to comply with the DAIMS
• DDRS DATA Act requirement development
• Completeness of award financial data
Table 12 – DATA Act Overview
DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
48
Conclusion
With this FY 2020-2024 FM Functional Strategy, the FM community strikes a balance between
presenting outcomes and specific initiatives that need to occur over the next five years to move
the Department down the path to achieving an unmodified audit opinion in the DoD consolidated
audit. These efforts will also generate and sustain ongoing business and strategic value that
meets the warfighting mission and demonstrates good stewardship of taxpayer funds. The
fundamental guiding principles of efficiency, effectiveness, auditability, and security led to the
five FM Functional Strategy goals. While initiatives will ultimately end as they accomplish
intended objectives, the business needs that prompted them in the first place will continue to
evolve. This requires FM leaders to remain focused on FM improvement and the ultimate
outcomes of sustaining auditability and optimizing business value. The FM community is
committed to working as an enterprise to achieve the DoD’s goals and objectives.
Version 4.0 A-1 Unclassified – For Official Use Only
Appendix A – List of Terms
Term
Definition
Business
Intelligence
The applications, infrastructure, tools, and best practices that enable access to and
analysis of information to improve and optimize decisions and performance
[Gartner] – Encompasses the requirements for transparency, visibility, etc.
Core
Per June 2018 DBS IMP Guidance, v4.1, a core system as an “enduring system with
a sunset date greater than 36 months from the start of the fiscal year. For
consistency, core status in DITPR is calculated the same for both covered and non-
covered as more than 36 months.”
The DoD organization must ensure that the DBS is compliant with all applicable
Business Enterprise Architecture regulations, policy, data standards, and business
rules and that appropriate business process re-engineering efforts have been
undertaken.
Defense
Business
System (DBS)
An information system that is operated by, for or on behalf of the DoD, including a
financial system, a financial data feeder system, a contracting system, a logistics
system, a planning and budgeting system, an installations management system, a
human resources management system or a training and readiness system. The term
does not include a national security system; or an information system used
exclusively by and within the defense commissary system or the exchange system or
other instrumentality of the DoD conducted for the morale, welfare and recreation of
members of the armed forces using non-appropriated funds (10 U.S.C. § 2222
(j)(1)). Ref. DoD OCMO Defense Business System Information Technology
Investment Guidance, v4.1
Driver
A resource, process, or condition that is vital to success.
Enabler
Methodology that, alone or in combination with associated technologies, provides
the means to generate giant leaps in performance and capabilities.
Feeder
A system that passes information to another system that supports an organization’s
core mission.
Functional
Strategy
Functional Strategies are developed by the PSA and describe business functions,
business outcomes, measures, and targets. Functional Strategies will be used to drive
BEA content, which is the DoD’s blueprint for improving DoD business operations
and the reference model for DBC certification. The Functional Strategy is the core
document that creates the unique business position of the organization and is
supported by the activities that it plans to achieve. It prioritizes and identifies the
enterprise’s pressing needs while providing tactical strategic direction for a defined
business area. It enables outcome-driven investment decisions that enhance the
business operations within a functional area in synchronization with other business
Version 4.0 A-2 Unclassified – For Official Use Only
Term
Definition
areas. Functional Strategies must align with the ASP and will also help to refine and
enhance future versions of the ASP.
Goal
An aim or desired result. Statements of what you wish to achieve over the period of
the strategic plan.
Initiative
A specific activity to achieve a goal executed by a designated component and
including an approved pilot.
Legacy
Per June 2018, v4.1 Defense Business Systems Investment Management Guidance,
“A system with a sunset date within 36 months from the start of the fiscal year. For
consistency, legacy status in DITPR is calculated the same for both covered and
non-covered as a life cycle end date less than or equal to 36 months. Legacy DBSs
are not required to assess or assert compliance with applicable BEA requirements,
but they are required to perform mappings in IBF-DAP to applicable BEA
Operational Activities, Business Capabilities, Processes, System Functions, and
E2Es. Legacy systems are not allowed to obligate modernization dollars.”
Organizational
Execution
Plan (OEP)
The OEP is the means through which the DoD Components propose how they will
deliver the DoD’s business priorities. A completed plan will demonstrate how,
through sound investment management, a DoD Component’s streamlined portfolio
of systems will support the business areas and sub-functions contained within the
BMAs. The plan is divided into sections that address each Functional Strategy. The
plan is intended to be the assembly of business system investment requests from
which the DBC certifies.
Outcome
A specific, vital, or positive organizational or environmental change that moves the
program forward to its desired future.
Pilot
A small-scale, short-term test or trial conducted to evaluate feasibility, time, cost,
adverse events, and provide quantitative proof that the system / process / approach
has potential to succeed on a full-scale basis [adapted from multiple sources].
Shared
Service
A service provided by a centralized, dedicated unit (Shared Service Center including
people, processes, and technologies) focused on defined business functions.
Execution and long-term delivery may be by internal enterprise personnel or by
service providers, or some combination thereof. Consequently, the definition of
shared services is independent from the sourcing option for delivery. [Adapted from
Gartner]
Version 4.0 A-3 Unclassified – For Official Use Only
Term
Definition
SLOA-
Compliant
Standard Line of Accounting-Interfaced.
Able to pass Standard Line of Accounting data elements through its interfaces, but
not in Standard Line of Accounting format.
Will use Global Exchange as Standard Line of Accounting translator to transform
data between its format and Standard Line of Accounting format.
SLOA-Ready
Standard Line of Accounting-Configured. Contains Standard Line of Accounting
data.
Able to pass Standard Line of Accounting data elements in Standard Line of
Accounting format through its interfaces.
Will use Global Exchange as Standard Line of Accounting validator.
Subsumed
Terminated on capability included in another solution.
Sustainment
Ongoing operations and maintenance, including required product licenses, product
upgrades, and compliance with relevant law, regulation, and policy.
Target
System to replace some or all of the functions and users of a legacy system.
Systems included in the target environment.
Version 4.0 A-4 Unclassified – For Official Use Only
Appendix B – List of Acronyms
Acronym
Description
CAP
Corrective Action Plan
CARS
Central Accounting and Reporting System
CASH
Cash Accountability and Traceability
CCB
Configuration Control Boards
CFCM
Component Functional Community Managers
CIR
Collections Information Repository
DATA Act
Digital Accountability and Transparency Act of 2014
DBS
Defense Business System
DCAS
Defense Cash Accountability System
DITPR
DoD Information Technology Portfolio Repository
DoD
Department of Defense
DTD
Direct Treasury Disbursing
E2E
End-to-End
ECM
Enterprise Cost Management
EFD
Enterprise Funds Distribution
FBWT
Fund Balance with Treasury
FFMIA
Federal Financial Management Improvement Act of 1996
FIAR
Financial Improvement and Audit Readiness
FISCAM
Federal Information System Controls Audit Manual
FM
Financial Management
FMR
Financial Management Regulation
FY
Fiscal Year
FYDP
Future Year Defense Program
GAAP
Generally Accepted Accounting Principles
GAO
U.S. Government Accountability Office
GT&C
General Terms and Conditions
GEX
Global Exchange
GT&C
General Terms and Conditions
HHG
Household Goods
IDGS
Intragovernmental Data Standard
IGT
Intragovernmental Transaction
IPA
Independent Public Accountant
IPAC
Intragovernmental Payment and Collection System
IPP
Invoice Processing Platform
IT
Information Technology
JITC
Joint Interoperability Test Command
JV
Journal Voucher
L&MR
Logistics and Material Readiness
MICP
Managers Internal Control Program
MILDEP
Military Department
NDAA
National Defense Authorization Act
NFR
Notice of Findings and Recommendations
Version 4.0 A-4 Unclassified – For Official Use Only
Acronym
Description
NTS
Non-Temporary Storage
OEP
Organizational Execution Plan
ODCFO
Office of the Deputy Chief Financial Officer
ODCMO
Office of the Deputy Chief Management Officer
ODO
Other Defense Organizations
OFCM
Office of the Under Secretary of Defense Functional Community
Manager
OUSD(C)
Office of the Under Secretary of Defense (Comptroller)
OUSD(P&R)
Office of the Under Secretary of Defense for Personnel and Readiness
OMB
Office of Management and Budget
P2P
Procure-to-Pay
PAM
Payment Application Modernization
PIID
Procurement Instrument Identification
PIR
Payment Information Repository
PMO
Program Management Office
PP&E
Property, Plant and Equipment
PPBE
Planning, Programming, Budgeting, and Execution
PDS
Procurement Data Standard
PR
Purchase Request
PRDS
Purchase Request Data Standard
PY
Prior Year
QDR
Quadrennial Defense Review
SCoA
Standard Chart of Accounts
SCG
Security Classification Guide
SEMOSS
Systematic Open Source Software
SFIS
Standard Financial Information Structure
SLOASLOA
Standard Line of Accounting
SNAP- IT
System Network Approval Process Information Technology
SPR
Service Provider Readiness
SSAE
Statement of Standards for Attestation Engagement
TFA
Transportation Financial Auditability
TI-97
Treasury Index-97
TPPS
Third Party Payment System
TWCF
Freight, Transportation Working Capital Fund
ADVANAADVANA
Universe of Transactions
USSGL
United States Standard General Ledger
