# Presentation: 691699

## Building a Foundation With Standardization

- Dianne Copeland, Director, FSIO
- Federal Financial Management Conference
- March 11, 2008

**FMLoB Vision/Framework **

## Common Governmentwide Accounting Classification (CGAC) Structure

## Common Government-wide Accounting Classification (CGAC)

- Accommodate both standard government-wide accounting-related functions and critical agency-mission-specific accounting functions (data); and
- Include standardization of such items as Treasury Account Symbol/ Treasury Account Funds Symbol; Internal fund code; Budget fiscal year; Accounting quarter and month; Program; Organization; Project; Activity; Cost Center; Object Class; and Budget function (and sub function code)

***Goal:*** Develop a common accounting code structure, including an applicable set of definitions, that all federal agencies’ new financial management systems must adhere to.  The common accounting code structure will:

**Notes:**
HANS HEIDENREICH TALKING POINTS:
***To be provided by LMI****

Scope:
Resource Commitment

## CGAC Benefits

- Create common language and definitions for accounting classification
- Provide greater specification in future system requirements to ensure all elements needed are being provided by financial systems
- Reduce need to maintain cross-walks and perform reconciliations
- Facilitate preparation and transmission of financial reports to OMB and Treasury
- Facilitate government-wide exchange, comparison, and aggregation of similar data
- Reduce costs and risks of implementing a new Federal financial management system or migration to a shared service provider through improved portability of an agency’s accounting classification structure
- Achieve greater consistency and accuracy in government-wide reporting.

## Standardization - CGAC

**Common Government-wide Accounting Classification (CGAC) Structure**
- Final structure published in August 2007

## CGAC:  Universe of Elements

## CGAC Data Standardization

## Level of Standardization

- Data Definition
- Field Size
- Field Format
- Values
- Identified field owner
- Standard value established
- Agency specific
- Agency defined

## Business Process Standardization

## Business Process Standardization

- Sequenced activities for core business processes
- Data objects participating in a business activity
- Relationships among the objects as they exist in the actual business activities
- Data elements and definitions used by these objects
- Business rules governing these objects

***Goal:*** Develop a standard set of business practices for core financial management functions (funds control, payables management, receivables management, reporting, reimbursables) to be adopted by all federal agencies.  The document/model will include:

**Notes:**
HANS HEIDENREICH TALKING POINTS:

Describe the work for this lane. State that the scope of process standardization will include Payments, Receipts, Funds and Reporting – which has replaced Fixed Assets.  
Reiterate that this lane really needs agency commitment
Recap work that has been done with FMLOB and COEs
FMLOB Task Force (2004) developed a high-level target business architecture that included standard target business processes for 6 core JFMIP sub-functions and process models.
COEs such as GSA and Treasury have used that target architecture as a starting point for standardizing processes. 
Even though we have a short time frame we are not starting from scratch.  We are working with some COEs to develop a straw man that can be used to facilitate our planned process standardization work sessions.

## Business Process Standardization Benefits

- Lower risk of agency migration to a Shared Service Providers (SSP)
- Assurance that SSP’s process requirements are addressed/incorporated into the process standards
- More efficient standardization of interfaces to other systems and Treasury
- Potential savings and efficiencies on human capital costs
- Improved integrity of financial management at both the individual agency and Government-wide levels and ensures compliance with financial management laws and regulations.

## Standardization – Business Processes

**Business Processes (BP)**
- Funds Control
- Currently in final OMB review
- Payables Management
- Currently in final OMB review
- Receivables Management
- Exposure Draft to be published in April 2008
- Reimbursables
- Exposure draft developed FY 2008
- Reporting
- Developed FY 2008

## Interface Standards

## Interface Standards

- Coordinating with major processes
- E-Travel
- E-Payroll
- Acquisition
- Grants

## Document Library and Points of Contact

**Document Library and Points of Contact**

- FSIO and FMLoB documents on the web site
- _[www.fsio.gov](http://www.fsio.gov/)_
- FSIO main number
- 202.219.0526
- Dianne E. Copeland
- FSIO DirectorGeneral Services AdministrationOffice: 202-219-0550    Fax: 202 219-0549
- E-Mail: dianne.copeland@gsa.gov