# Presentation: 665274

## Building A Business Case For IT Investments

- Financial Management Reporting
- May 2003

## Relationship of Financial Management to IT

- A significant portion of an agency’s financial management resources are used towards acquiring, developing, operating and maintaining financial management systems.
- Financial management systems are IT systems.
- Financial management systems are part of the Enterprise Architecture and must meet critical success factors.

## Financial Management Systems

- Section 52
- Budget justification materials including a financial management plan
- Exhibit 52, “Report on Resources for Financial Management
- Inventory of Financial Management Systems
- Section 53-in the IT portfolio
- Section 300-identified in the Capital Asset Plan and Business Case

## Budget Justification/Financial Management Plan

- What are you doing now and why should you continue?
- What needs to change and how do you propose doing this?
- Present this in the materials required by A-11 and explain the big picture in the financial management plan.
- Must be consistent with Exhibits 53, 300, and the Financial Management Systems Inventory

## Budget Justification/Financial Management Plan Preparation

- There is no predefined format for the plan
- It’s fine to provide existing documents supplemented with other information needed to meet the plan requirements
- Financial Systems
- Current and target structures
- Plans to get to the target
- Highlight the FFMIA remediation activities
- identify responsible official
- interim target dates
- completed in three years
- resources if not identified in Exhibit 53

## Financial Management Systems Inventory

- Submitted separately from the budget submission on a web-based system.
- Usually coordinated by the CFO’s office.
- Collects information on systems in development and operation.
- Contains around 80 elements of information for each financial management system application.
- Links to Exhibits 53 and 300

## Exhibit 52 Requirements

- Information on:
- Accounting and Reporting
- Financial Statement Audits
- Financial Management Systems
- Provide budgetary resources and FTE’s for current year and budget year
- Provide actual obligations for the prior year

## Financial Systems on Exhibit 52 

- Prepare the Exhibit 53 first
- Financial system costs are a summary of the financial systems reported on Exhibit 53
- Compute the total of financial management systems, based upon the % financial, and show that total on the Exhibit 52

## Financial Management Systems on Exhibit 53

- All “major” systems reported on exhibit 53 must present a business case in Exhibit 300
- Systems over $1 million (rounded) must be listed in Exhibit 53
- All systems supporting grants management must be listed in Exhibit 53
- Total of the % financial on Exhibit 53 must be summarized on Exhibit 52
- Acquirers of system services from other agencies should reflect the costs, not the providers

## Financial Management Systems on Exhibit 300

- Prepare for IT systems in development and steady-state including financial systems and other systems with a financial component.
- Financial system specific items:
- If project supports a financial management system
- If project addresses an FFMIA compliance area
- System name and acronym of related systems identified in the Financial Management System Inventory