Managing DFAS Operations Like a Business Rick Davis Deputy Director for Compliance, Standards &...
-
Upload
veronica-lucas -
Category
Documents
-
view
216 -
download
2
Transcript of Managing DFAS Operations Like a Business Rick Davis Deputy Director for Compliance, Standards &...
Managing DFAS Operations Like a Business
Rick DavisDeputy Director for Compliance,
Standards & Compliance
May 20, 2009
Integrity - Innovation - Service 2
DFAS – What We Do (2008)
Sales & Service - $1.5B Scope of Business
• Military Pay $ 247.5M
• Civilian Pay $ 73.3M• Retiree Pay $ 57.6M• Travel Pay $ 50.3M• Commercial Pay $
162.2M• Accounting Services $
466.1M• Support to Others $ 124.7M• Others $
320.2M
• Processed 169 million pay transactions (6.5 million people)
• Made 7.5 million travel payments• Paid 14.4 million commercial invoices• Maintained 55.7 million general ledger
accounts• Managed military retirement and health
benefits funds ($394 billion)• Made $591 billion in disbursements to pay
recipients • Made $26.5 billion in foreign military sales
(reimbursed by foreign governments) • Account for 927 active DoD appropriations
People• 12,572 employees * (Civilian and Military)• Located in:
• 13 sites• 9 states• 3 countries
Integrity - Innovation - Service 3
DFAS Operations Org Chart
Deputy Director
Operations (Steve Turner)
Standards &Compliance
(Dave McDermott)
ClevelandCenter(Martha Smith)
ColumbusCenter
(Jonathan Witter)
Rome(Aaron
Gillison)
IndianapolisCenter(Edna
Knight)
DenverCenter
(Roxanne Nowling)
Japan(LTC Barry
Eddins)
Europe(Larry
Lovelette)
Limestone(Wayne Ingle)
Texarkana (Mitch
Covington)
Integrity - Innovation - Service 4
DFAS Standards and Compliance Org Chart
Standards and Compliance(Dave McDermott)
Standards and Compliance(Dave McDermott)
Business ManagementBusiness Management
Deputy Directorfor Compliance
(Rick Davis)
Deputy Directorfor Compliance
(Rick Davis)
Deputy Director for Standards
(Greg Schmalfeldt)
Deputy Director for Standards
(Greg Schmalfeldt)
Post Pay Review & Analysis
Post Pay Review & Analysis
Network ComplianceNetwork Compliance
Corporate ReportingCorporate Reporting
Finance Mission AreaFinance Mission Area
Accounting Mission Area
Accounting Mission Area
Financial Improvement & Audit Readiness
Financial Improvement & Audit Readiness
Metrics & InitiativesMetrics & Initiatives
Program Manager, Accounting HPO
Program Manager, Accounting HPO
Integrity - Innovation - Service 6
DFAS STRATEGIC PLAN (2008-2013)
Lead transformation of finance and accounting functions throughout DoD
Perform the DFAS mission at best value for DoD
Attract, develop, and retain a highly capable workforce with
relevant skills and competencies
Attain operational excellence in finance and accounting services
• Use DFAS resources efficiently and effectively to achieve expected results
• Achieve expected financial results from transformation initiatives
• Optimize processes to meet or exceed industry and government standards
• Increase productivity and deliver products and services on time
• Identify and mitigate risks to improve processes and internal controls
• Raise the level of relevant skills and competencies to meet anticipated needs
• Attract and retain employees with needed skills and competencies
Learning & Growth Perspective
Internal Perspective
Financial Perspective
• Establish business requirements for DoD transformation initiatives related to finance and accounting activities
• Execute and/or support deployment of DoD transformation initiatives
Lead transformation of finance and accounting functions throughout DoD
Perform the DFAS mission at best value for DoD
Attract, develop, and retain a highly capable workforce with
relevant skills and competencies
Attain operational excellence in finance and accounting services
• Raise the level of relevant skills and competencies to meet anticipated needs
• Attract and retain employees with needed skills and competencies
Learning & Growth Perspective
Internal Perspective
MISSIONDirect, approve and perform finance and accounting activities for DoD
VISIONTransforming with the Warfighter to remain the trusted financial partner for DoD
OBJECTIVESGOALS
Support DoD in prevailing in the Overseas Contingency
Operations
• Support Customers in the Overseas Contingency Operations
Customer Perspective
Integrity - Innovation - Service 7
HOW DO WE EXECUTE STRATEGY?
Strategy and BSC Process ensures clear linkage between: Each Goal and its Objectives Each Objective and its Measures Each Measure and the Initiatives that will close the gap to the Targets
STRATEGY ACTION
Goal Objectives Measures Targets Initiatives
Each Objective has at least one measure
Each Target has an associated initiative
Perform the DFAS Mission at Best Value
for DoD
Achieve Expected Financial Results from
Transformation Initiatives
Initiative Impact on Productivity:
Work Counts / Productive Hr Charged to Travel
2009 2010 2011
Defense Travel System Implementation
≤ FY08 Rate≤ FY09
Rate≤ FY10
Rate
Initiative Impact on Savings:
% Actual Execution of Budgeted Accounting Operations Work
Years<100% <FY09 Rate
<FY10 Rate
Accounting HPO Implementation
FIN
AN
CIA
L P
ER
SP
EC
TIV
E
Integrity - Innovation - Service 8
Operationalizing the DFAS Strategy
Strategic Objectives
Corporate Initiatives
FY 09 Tactical Activities Quarter 1
Support DoD in prevailing in the Overseas Contingency Operations
Overseas Contingency Operations Costs
Pay service members, civilians and vendors supporting Overseas Contingency Operations
Provide finance and accounting expeditionary support in theater
Manage Wounded Warrior pay accounts
Supply accounting data related to Overseas Contingency Operations Costs G
G
G
G
Integrity - Innovation - Service 9
Operationalizing the DFAS Strategy
Strategic Objectives
Corporate Initiatives
FY 09 Tactical Activities Quarter 1
Lead transformation of finance andaccounting functions throughout DoD
Enterprise Resource Planning
Support implementation of : General Fund Enterprise Business System (GFEBS) –Army
High Performance Organization (HPO)
Global Combat Support System (GCSS) – Army
Business Activity Monitoring (BAM)
Logistics Modernization Program (LMP) – Army
Defense Agencies Initiative (DAI) – 26 Defense Agencies
Defense Integrated Military Human Resources System –Army, Air Force
Apply BAM to Vendor Pay Systems (MOCAS, CAPS, OnePay)
Implement HPO initiatives across Accounts Payable;Accounts Receivable; and Accounts Maintenance andControl
Y
G
G
G
G
G
Y
Integrity - Innovation - Service 10
Operationalizing the DFAS Strategy
Strategic Objectives
Corporate Initiatives
FY 09 Tactical Activities Quarter 1
Perform the DFASmission at best value for DOD
BRAC Link work years/counts with budget, performance, and manpower
Meaningful productivity measurements
Monitor and achieve Lean6 savings
Lean6 Conduct business case analysis of Foreign Military Sales MostEfficient Organization
Implement Deputy Director of Operations’ Metric and Performance Indicator Tools
Complete transition of Air Force Military Pay workload
Manage budgetary and manpower resources to achievemissions on time and within approved resource restraints
Y
G
G
Y
Y
G
Integrity - Innovation - Service 12
Key Accomplishments
Travel Pay Operations Turn Around Time
8.88 9.397.82
4.07 4.83
10.30
5.455.67 6.056.30
0.00
2.004.00
6.00
8.0010.00
12.00
Months
Tu
rn A
rou
nd
Tim
e (
Days)
Weighted Average TAT Army SLA
Civilian Pay Accounts
571,654 609,244 612,390 613,093
681,312674,092
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Months
Nu
mb
er
of A
cco
un
ts
Military Pay CMS Cases
99.30%
99.90%
99.30% 99.30%99.70%
99.06%98.80%
98.02%
98.70%
98.10%97.60%
97.80%
95.00%
96.00%
97.00%
98.00%
99.00%
100.00%
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Months
Cases P
rocessed
(%
)
Cases Processed within 20 Days Cases Processed within 30 Days
Debt & Claims Military Pay
Civilian PayTravel Pay
Debt Establishment Inventory
1412115959
18113 18811
15388
12719
0
5000
10000
15000
20000
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Months
Nu
mb
er
of
Ca
se
s
InventoryReduction
Decrease in TAT
New Accounts On Board
PerformanceSustained
Integrity - Innovation - Service 13
Key Challenges
Civilian Pay (Tier 2) Call Center Average Turn Around Time
7.00
7.20 7.167.06
7.13
7.30
6.506.606.706.806.907.007.107.207.307.40
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Months
Cal
l T
urn
Aro
un
d T
ime
(in
Min
ute
s)
Summer Surge
Improvement Plan
Flexible Workforce Outside Assistance Improved Workflow
Civilian PayTravel PayUnacceptable
ASA
ApproachingSummer
Surge
Integrity - Innovation - Service 14
RomeColumbus
Indianapolis
Incoming Vouchers
Daily Processed Travel
Vouchers
Inventory On Hand
Turn Around Time (TAT) of Travel
VouchersTAT Casualty Pay
Timeliness of Claims
Processed (%)
Oldest Inventory on Hand
Pre-Pay Accuracy
Improper Payments: $
Amount
Improper Payments: Quantity
Level 1
Inventory On Hand
Daily Processed Travel
Vouchers
Turn Around Time (TAT) of
Travel Vouchers
TAT Casualty Pay
Timeliness of Claims
Processed (% )
Oldest Inventory on Hand
Pre-Pay Accuracy
Improper Payments
Level2
Level 3Turn Around Time (TAT) of
Travel Vouchers
TAT Casualty Pay
Pre-Pay Accuracy
Improper Payments
Integrity - Innovation - Service 15
ClevelandIndianapolis
Denver: BRAC
Level 2Timeliness of Pay Cases Resolved-
20 days
Timeliness of Deceased
Claims
Timeliness of Dependency
Claims
Timeliness SDP Cases Resolved
Timeliness of Death Gratuity
Cases
Improper Payments
Level 3Timeliness of Pay Cases Resolved-
20 days
Timeliness of Death Gratuity
Cases
Timeliness of Deceased Claims
Improper Payments
Timeliness of Pay Cases
Resolved- 20 days
Timeliness of Deceased Claims
Timeliness of Dependency
Claims
Timeliness of Central Site
Separations-
Timeliness of Adoption
Reimbursement cases
Timeliness SDP Cases Resolved
Timeliness of Marine Corps Garnishments
Timeliness of Death Gratuity
Cases Critical SCRs
Systems Downtime
Electronic Leave&
Earnings Statements
Improper Payments: $
Amount
Improper Payments: Quantity
Level 1
Integrity - Innovation - Service 16
Level 3Remedy Tickets Completed within
Stated Expectation
Timeliness of Retirement &
Annuitant packages sent to OPM
Improper Pay
ClevelandIndianapolis
President's Pay VIP PayField Site
Timeliness of T&A Inputs
Field Site Timeliness of
Personnel Transactions
Remedy Tickets Completed within
Stated Expectation
% Change in Remedy Tickets
Timeliness of Retirement &
Annuitant packages sent to OPM
% Change in Debt letters
from previous month
Timelines of Debt Hearings/
Waivers
Timeliness of Debt Letters Processed
% of electronic pay Accts
compared to Hard Copy
% Change in Special Pay Processing
Critical SCR'sSystems
Downtime
Improper Payments: $
Amount
Improper Payments: Quantity
Level 1
Integrity - Innovation - Service 17
TIAgency LevelAccounting
Columbus 57 & 97Cleveland 17
Indianapolis 21 & 97
Overaged Abnormal Balances
Fund Balance with Treasury- Deficiency
Rate
Clearing Accts Non-exempt overage
balance (Suspense Accts)
Clearing Accts Non-exempt within
timeframe (Suspense Accts)
Aged In-TransitsTimeliness of
Accounting Reports to Customers
Stop Pay/ Stop AcctsUnsupported
Accounting Entries
Level 2
Fund Balance with Treasury- Deficiency
Rate
Unsupported Accounting Entries
Aged In-TransitsTimeliness of
Accounting Reports to Customers
Stop Pay/ Stop Accts
Level 3
Deposit Accts with negative balances
Overaged Abnormal Balances
Fund Balance with Treasury- Deficiency
Rate
Clearing Accts Exempt - Reconciliation of
Balances- net (Suspense Accts)
Clearing Accts Non-exempt
overage balance (Suspense Accts)
Clearing Accts Non-exempt within
timeframe (Suspense Accts)
Aged In-TransitsTimeliness of
Accounting Reports to Customers
Stop Pay/ Stop AcctsUnsupported
Accounting Entries (AFS Trust Fund)
# Corrected Departmental
Reports
# Corrected Journal Vouchers
Level 1
Integrity - Innovation - Service 18
RomeClevelandColumbusLimestone
IndianapolisField LevelAccounting
Reported Debts to Treasury Referral
Rates
Delinquent Intergovernmental
Outside DoD age >180 days delinquent
Delinquent Intergovernmental Within DoD aged
>180 days delinquent
Delinquent Public ARDelinquent Outside DoD Intergovernmental AR
Delinquent within DoD
Intergovernmental AR
Level 2
Level 3 Delinquent Public ARDelinquent Outside DoD Intergovernmental AR
Delinquent within DoD
Intergovernmental AR
Write-off of Eligible Public Receivables
aged > 2 years delinquent
Debt Referrals to Treasury by DCMO
Reported Debts to Treasury Referral
Rates
Delinquent Intergovernmental Outside DoD age
>180 days delinquent
Delinquent Intergovernmental Within DoD aged
>180 days delinquent
Delinquent Public ARDelinquent Outside
DoD Intergovernmental AR
Delinquent within DoD
Intergovernmental AR
% of total bills processed vs
total bills disputed
Level 1
Integrity - Innovation - Service 20
FY 2009 ERMP Objectives
Execute Enterprise Risk Management Program (ERMP) for critical customer programs
Validate and document key processes/controls/risks
Test risks and controls by core area (travel pay, civ pay, etc.)
Standardize key processes/controls/risks
Develop Internal Control Questionnaires (ICQ) by core area
Evaluate internal controls across mission using the ICQ
Establish Foundation for Integrating FMFIA and Appendix A programs with ERMP
Integrity - Innovation - Service 21
Statement of
Assurance
Senior Level Manager• review IC matrix evaluation results• appoint AU managers at an agency specified level • identify & review risks
FMFIA Coordinator• request self evaluation using the IC questionnaire• report to senior manager• report to FMFIA• recognize trends and report
AU/Process Manager• provide input to the ICQ• utilize the standard ICQ• perform self evaluation• identify & review risks• Corrective Action Plan
Technician/Analyst• identify risks• provide input to the ICQ
FMFIA Office• consolidate ICQs• submit SOA
Sub-Core Area Lead• create Sub-CA IC questionnaires • review self evaluations• identify & review risks
Core Area Manager• create Sub-CA IC questionnaires (ICQ)• ensure standard IC aligned to business objectives for CA• assign Sub-CA Leads • review self evaluations• identify & review risks
ERMP Fortifies Internal Controls Up/Down and Across the Agency
Risks are managedenterprise wide with an
enhanced Mission Focus
Org
an
izatio
na
l Cen
tric
Mission Centric
Integrity - Innovation - Service 22
3 QTR 09 4 QTR 09 1 QTR 10
• Departmental Operations• Accounts Receivable• Travel Pay• Retired and Annuitant Pay
• Military Pay• Civilian Pay• Accounts Payable
• Trust Funds• Disbursing• Transportation Pay• Security Assistance Accounting
Planned CA Schedule w/Prioritization Criteria
Most Critical Sub-Core Areas
• Additional Prioritized Core Areas (e.g. Civ Pay, Debt & Claims, AM&C)
2 QTR 10
CRITERIA:• Top 10 Risks• DIMHRS & ERMP Focus Area• FMFIA Deficiency Mitigations• FIAR Support (A/P)• HPO Initiative
CRITERIA:• FIAR support • End to End Segment Strategy • FMFIA Deficiency Mitigation• High IPIA Percentages• HPO initiative
CRITERIA:• DoD AFS Strategy• Top 10 risks• Standard Disbursing Initiative• FMFIA support
Integrity - Innovation - Service 23
Risk Mitigation Plan/Risk Rating:
Examples of Critical Customer Programs
Fund Balance With Treasury (FBWT) - Cash
FBWT understated by the amount of
cash disbursed but not recorded/Cash
overstated
Agents make cash payments
and provide documentation
supporting transactions in-
theater
Require agents clear within 30 day window; specific documents for
cash payments; reconciliation payments and
documents
Risk Condition: Process: Controls:
Reduce cash payments; transfer vendor operations
to CONUS via EFT; improve visibility of
agent cash in financial reports
Integrity - Innovation - Service 24
Lean6 Process Improvements: Accounts Receivable
Project Title Status Potential Savings
Estimated Completion
Comments
Out of Service Debt and Claims Management Credit Card Process
Completed $379K February 2009
Initial phase complete, will next expand current credit card initiative with DCMO from phone payments to online payments.
Out of Service Debt Customer Service Email Inquiry Process
Completed $57K April 2009
Changed email to paper process for inquiries to fully automated process. Reduced turnaround time on inquiries from 20 days to 3 days or less. Customers receive immediate confirmation of received inquiry.
Reduction of time to prepare management reports in Debt and Claims Case Management
On-Track $1M July 2009
Reduce the number of management reports required to two all inclusive reports, in addition to changing the employee production reports from a manual to electronic process.
Integrity - Innovation - Service 25
ERMP Customer Outcomes
Integrate and support other DFAS initiatives Verify internal controls are properly tested Improve Internal Controls and Compliance Across Operations Reduce Risk and Ensure Effective Risk Mitigation Standardize processes, Controls, and Structures (HPOs) Increase Program Reliability and Timely Delivery of Information Ensure Reporting Audibility and Supportability Internal control programs absorbed by ERMP and integrated to eliminate
redundant efforts and costs DFAS asserts processes are compliant and auditable