Phase 1 SFIS Elements

Appropriation Account Information| Transactional Information



UNDER SECRETARY OF DEFENSE

1100 DEFENSE PENTAGON
WASHINGTON, DC 20301-1100

AUG = 4 2005

COMPTROLLER

MEMORANDUM FOR: SEE DISTRIBUTION

SUBJECT: Standard Financial Information Structure (SFIS) Implementation Policy

This memorandum establishes policy directing implementation of the Standard
Financial Information Structure (SFIS). The SFIS is a comprehensive data structure that
supports requirements for budgeting, financial accounting, cost/performance, and
external reporting across the DoD enterprise. Current SFIS data elements are focused on
information needed to support the generation of the DoD financial statements. SFIS is a
key initiative that supports DoD Business Enterprise Priorities (BEP).

The SFIS is a requirement for all systems supporting financial transactions as it
provides an enterprise-wide standard for categorizing financial information along several
dimensions to support financial management and reporting functions. The SFIS enables
decision makers to efficiently compare similar programs and activities across DoD and
provides the level of detail they require for information retrieval and auditability.

This policy requires systems containing financial information to provide the ability
to capture and transmit the SFIS data or demonstrate a cross-walking capability to the
SFIS format. This ability must be demonstrated as part of a certification process. Three
SFIS implementation approaches and associated timelines are defined in Attachment A.

This memorandum is effective for planning and coordination upon receipt. SFIS

and BEP information is at http://www.dod.mil/comptroller/bmmp/pages/index.html. If

you have any questions, please contact Ms. Christine Wenrich or Mr. Raymond Bombac

by e-mail at (Christine. Wenrich @osd.mil or Raymond.Bombac @osd.mil) or by

telephone at 703-602-6988.
4 Cha

Attachment:
As stated


DISTRIBUTION:

SECRETARIES OF THE MILITARY DEPARTMENTS

CHAIRMAN OF THE JOINT CHIEFS OF STAFF

UNDER SECRETARIES OF DEFENSE

COMMANDER, US SPECIAL OPERATIONS COMMAND

ASSISTANT SECRETARIES OF DEFENSE

DIRECTOR, DEFENSE RESEARCH AND ENGINEERING

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE
DIRECTORS OF THE DEFENSE AGENCIES

DIRECTOR, BUSINESS TRANSFORMATION OFFICE

DIRECTOR, SUPPLY CHAIN SYSTEMS TRANSFORMATION OFFICE
DIRECTOR, BUSINESS SYSTEMS RESPONSE OFFICE

DIRECTOR, ERP SUPPORT OFFICE

DIRECTOR, FINANCIAL MANAGEMENT TRANSFORMATION OFFICE
DIRECTOR, TRANSFORMATION SUPPORT OFFICE

DIRECTOR, DEFENSE SYSTEMS

DIRECTOR, NETWORKS AND INFORMATION INTEGRATION
DIRECTORS OF THE DOD FIELD ACTIVITIES


Attachment A.

The three SFIS implementation approaches are:

1)

2)

3)

The Legacy Accounting System approach will utilize a centralized SFIS cross
walk capability which is being developed as part of the Business Enterprise
Information Services (BEIS). This approach focuses primarily on legacy
accounting systems in use throughout DoD today, but also encompasses cash
and funding systems whose information is required to facilitate calculation of
undistributed amounts within BEIS. These systems will be required to submit
detail level accounting transactions to BEIS for conversion to SFIS equivalent
data elements and subsequent posting to a USSGL compliant DoD corporate
general ledger.

This portion of the SFIS implementation initiative will commence in July 2005,
with a scheduled completion date of January 2007.

The Business Feeder System approach will require incorporation of SFIS
elements within business systems which source create business transactions
within DoD. This approach applies to systems which create transactions such
as travel orders, contracts, contract modifications and certain types of invoices.
This approach may also encompass certain entitlement and disbursing systems
in use throughout the department today which receive source transaction data
from the previously mentioned feeder systems, perform entitlement matching
functionality and generate associated payments.

Certification of this approach will be varied. Systems in a development cycle,
must submit a plan for SFIS compliance by September 30, 2005. Systems in
sustainment must submit compliance mappings by August 31, 2005. Major
Acquisition Information Systems (MAIS) systems must incorporate SFIS
requirements in their Test and Evaluation Master Plan (TEMP) and complete
successful testing prior to approval of Full Operational Capability (FOC).

The Target Accounting System approach encompasses emerging environments,
including new Enterprise Resource Planning (ERP) systems. These systems are
Federal Financial Management Improvement Act (FFMIA) compliant and
configured to post transactions to an internal USSGL compliant general ledger.

This approach requires certification of the ability to receive SFIS data as part of
source transactions and derive the appropriate budgetary and/or proprietary
general ledger entries in accordance with the USSGL transaction library. The
USSGL transaction library will be included in their testing documentation (i.e.,
TEMP) and successfully tested prior to Milestone C. In those cases where the
system has entered Limited Deployment, successful testing will be completed
prior to approval for FOC.