Financial Management Transformation

FSA Perspective

February 20th, 2013Financial System Authority

Office of the Comptroller General of Canada

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Objective of the session• FSA Mandate, Vision and Services• FSA Deliverables (Progress, Status and

Next Steps)• Common Enterprise Data Initiative

(CEDI)• Common Financial Management

System Configuration (FM-SC)• Common Financial Management

Business Process (FM-BP) Initiative• What’s Next• Questions and Discussion

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FSA Vision and Services

Common Enterprise Data Initiative (CEDI)

CEDI Outcomes

• CEDI provides the foundational structure to collate meaningful financial and material information across government.

• Target outcomes for CEDI continue to include:– Better information and improved financial

management services.– Help address long standing operational and

reporting inefficiencies.– Enabler for open data.

Strategic EnvironmentContinue emphasis on convergence towards common (processes, systems, information).

• FM Transformation, ASR, SOR, DRAP,• HRSDC SAP build, …

CEDI provides guidance on common information needs and strategic requirements to organizations and projects building common solutions.

Increasing demands for more relevant and timely information supporting GC-wide financial analysis and resource management.

• CIOB – IT expenditure reporting• EMS – How much is spent on policy development

compared to front-line service delivery?• Open Data, …

CEDI works with stakeholders to define new information needs and propose solutions, and (as appropriate) issues requirements and data standards to support implementation.

Strategic Direction (Governance)

• Guided by a target-state model, CEDI supports standardization of financial information by:– Developing and issuing data standards,– Providing guidance to key initiatives (e.g. HRSDC), and– Providing a framework to help enable Open Data

initiatives.

CEDI Approach

Issue data standards(e.g. vendor, customer, DCOA, etc.)

Guidance to initiatives(information and reporting requirements and capabilities)

FM Transformation

Open Data

ASR,SOR, DRAP,…

Support Open Data (data definitions and semantics, identify authoritative sources)

Financial Information Model defines:• The scope of financial and related

non-financial information.• What each piece of information

means.• Requirements for common data

elements and identifiers.• Authoritative sources for standard

data elements.

Target-State Financial Information ModelTarget-State Financial Information Model

FM-BP

FM-S

CCEDI

Information model integrates with FM-BP process model, and FM-SC requirements model.

Status of CEDI Data Standards

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Approval Step

DCOA Standard and Line Object

Guideline

Vendor Record

Customer

Record

Materiel Coding (Procurement

Item Classification)

CFO Consultation

Jun 2011 Mar 2012 Jan/Feb 2013

DCC Sep 2011 May 2012 Apr/May 2013

POC Nov 2011 May 2012 Apr/May 2013

Approval Mar 2012 Jun 2012 May/Jun 2013

Effective Date Apr 2012 Jul 2012 Apr 2014

Visit www.gcpedia.gc.ca/wiki/CEDI for draft standards and background documentation.

Information Model

• The Information Model must address: – Enterprise and GC-wide information needs– Policy driven process and control requirements– Interoperability requirements (information

crossing system and organizational boundaries)– Supporting common business processes and

common system configurations• The Information Model would be a ‘living

document’ – continually being refined and updated to meet the requirements of the stakeholders.– The scope of creating the entire Information

Model at once is not possible given the immediate need and the available resources. The most relevant sections, including leveraging previous sections of CEDI, would provide the baseline. 9

CEDI going forward: The Information Model

• The Information Model will be the repository for enterprise level business and information needs that will be supported operationally through common processes and common systems– Data components would mean one thing across all of

Government allowing apples to apples comparisons for open Government

• The information model will define the data elements that describe financial and related non-financial components of the GC (defining unambiguously concepts of materiel, programs, funds, organization, products and services) and document associated business needs and requirements that are important to the Enterprise

• The Information Model will also help define that data components can only be used for their intended purpose– A key tenant of being able to do Open Data Initiative is that

customization of data elements cannot be done at the Departmental level

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Common Financial Management System

Configuration Requirements(FM-SC)

Financial Management System Configuration (FM-SC)

The purpose of the Financial Management System Configuration Initiative (FM-SC) is to identify a set of departmental financial management system (DFMS) configuration requirements for the Government of Canada (GC) within the context of its current legislative and policy framework. The FM-SC is intended to apply to all departments and agencies as defined in section 2 of the Financial Administration Act (FAA). The end result of this initiative will be the Financial Management System Configuration Guideline.

Per the Directive on the Stewardship of FMS:

Role of the Chief Financial Officer6.1.3 Implementing FMS cluster group system configurations and OCG-endorsed system functionality as they are established or made available from time to time.

Role of the Chair of the FMS cluster group management board6.4.1 The chair of the cluster group management board is responsible for evolving the cluster configuration in alignment with the criteria established by the OCG for cluster configurations.

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• General Ledger management

• Planning, budgeting and forecasting

• Appropriation and commitment control

• Procurement• Expenditure and payables

management• System management• Asset management• Inventory management• Pay administration• Travel management• Revenue and receivables

management• Reporting

FM-SC Components

Interface requirements

• Each component within FMSC identifies Interface requirements at a high level

• Example from Travel Management:– Export travel expense data to Shared Travel

Services for reporting purposes. – Import travel transaction data from the Shared

Travel Services reporting service for integration with departmental reporting.

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Common Financial Management Business

Process (FM-BP) Initiative

The Common FM-BP InitiativeGoal:To develop an integrated framework of ‘should be’ common processes that standardize and modernize the delivery of financial management

Approach:OCG sponsored in collaboration with departments and agencies, financial systems clusters, policy authorities and service providers

Deliverables:• Guidelines which will provide:Standardized process definitions

– System- independent, modular, interoperable – Common to all departments and agencies– Describes roles and responsibilities in detail

“RACI” data analysis includes identification of:– Responsible, Accountable, Consulted, and Informed resources; and– Authoritative data sources

Process Flows– Flow diagrams

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The Common FM-BP initiative scope and governance

Business Processes organized into Domains and Cross functional areas

Governance

Project Operations

Common FM-BP Initiative Linkages

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Common

FM-BP

Initiative

Strategic Direction

Fulfillment

Requirements, Expertise Common

Processes

Enablement

Validation

Standardization through

Collaboration

Departments

(DM/CFO,

Management)

Cluster GroupsService Providers

Departmental Operations

Policies, Directives, Standards, Guidelines, Tools

Policy Centres & Central Agencies

GC-wide Direction

Mazankowski Tellier Report

Reports to the Prime Minister on the Public Service

Services Sector Finance Council Recommendations

Blue Ribbon Panel

Annual Budgets

Horizontal Initiatives

CEDI STSIGrants & Contributions

FM-BP modelsPlanning Budgeting & Forecasting• Manage Planning & Budgeting• Manage Forecasting & Budget Review

Revenue & Accounts Receivable• Manage Revenue, Receivables &

Receipts• Manage Interdepartmental

Settlements• Manage Collection of Overdue

Receivables

Expenditure & Accounts Payable• Manage Procure to Payment• Manage Travel• Manage Other Payments• Manage Distribution and Maintenance

of Acquisition Cards

HR/Finance Interactions• Pay Administration

Materiel/Finance Interactions• Manage Other Capital Assets• Manage Real Property• Manage Inventory

Transfer Payments• Manage Grants & Contributions

Data• Manage Vendor Master Data File• Manage Delegation of Financial

and Spending Authorities • Manage Departmental Chart of

Accounts• Manage Customer Master Data File

Integration• Manage Post-payment Verification• Manage Financial Close

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Sample Level 2 Process Flow

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Sample Level 3 Process FlowComprehensive Process Flow

Integrated view across all FM-BP processes

Linkages to process description and RACI

Consideration of controls

Comprehensive Process Flow

Integrated view across all FM-BP processes

Linkages to process description and RACI

Consideration of controls

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Sample Level 3 Sub-Process RACI

Linkages to process description and to process flow

Related data identified

Responsibility, accountability, and requirements to consult and inform are assigned to specific roles

Linkages to process description and to process flow

Related data identified

Responsibility, accountability, and requirements to consult and inform are assigned to specific roles

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Benefits Accruing from an FSA

GOVERNMENTAL

• Consistent business processes

• Improved stewardship of strategic information to support Deputies and Ministers

• Improved cost-cutting and control through appropriate procurement instruments, and accountability in GC spending

• Direct response to the Mazankowski/Tellier PM Advisory Committee report

• Better controls and reports on economic spending

DEPARTMENTAL

• Improved efficiency and information

• Improved interoperability between departments and within departments

• Better strategic information to make decisions

• New standards improving financial management through better information and reporting

• Better controls and reports on economic spending

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What’s Next

• Continue delivering on existing projects• Manage and deliver on MAF• Support CIOB in ERP exemptions & collaborate on Interoperability

• Support Dept CFOs with guidance on systems

• Work with Small Departments and Agencies • Continue to communicate message about Standardization to FM Community

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Questions?

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For More Information:

Marcel Boulianne, PMP,

Financial System Authority

Financial Management Sector

Office of the Comptroller General

Treasury Board of Canada Secretariat

Marcel.Boulianne@tbs-sct.gc.ca

Telephone 613-946-4512

Info Links/URLs

www.gcpedia.gc.ca/wiki/Fsa

http://publiservice.tbs-sct.gc.ca/ocg-bcg/index-eng.asp

http://publiservice.tbs-sct.gc.ca/fm-gf/abu-ans/standard-eng.asp

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