U.S. Department of Labor

Office of the Chief Financial Officer

November 2020
TABLE OF CONTENTS

TAB 1: AGENCY ORGANIZATIONAL OVERVIEW ........................................................ 1

TAB 2: STATE OF PLAY ...................................................................................................... 5

TAB 3: CALENDAR ............................................................................................................ 11

TAB 4: BUDGET.................................................................................................................. 12

TAB 5: AGENCY PERFORMANCE................................................................................... 15
TAB 1: Agency Organizational Overview

1

TAB 1: AGENCY ORGANIZATIONAL OVERVIEW

Mission

OCFO is responsible for the financial leadership of DOL. Its primary duty is to uphold strong 

financial management and accountability while providing timely, accurate, and reliable financial 

information and enhancing internal control. For more information, please visit DOL.gov.

1

Authorities and Responsibilities

The Office of the Chief Financial Officer (OCFO) ensures DOL compliance with the Chief 

Financial Officers (CFO) Act.

2

 The OCFO provides financial management leadership, direction, 

and guidance to the Office of the Secretary of Labor and all DOL program agencies on financial 

matters arising from the following: 

• Government Management Reform Act (GMRA)

• Government Performance Results Act (GPRA)

• Federal Financial Management Improvement Act (FFMIA)

• Federal Manager’s Financial Integrity Act (FMFIA)

• Debt Collection Act (as amended by the Debt Collection Improvement Act)

• Cash Management Improvement Act

• Reports Consolidation Act of 2000

• Payment Integrity Improvement Act (PIIA)

• Accountability of Tax Dollars Act (ATDA)

• Digital Accountability and Transparency Act (DATA Act)

• Federal Information Technology Acquisition Reform Act (FITARA)

• Various – Department of Treasury (Treasury), Office of Management and Budget 

(OMB), General Services Administration (GSA) Travel Regulations, and 

Government Accountability Office (GAO) guidance regarding financial management 

in government

The CFO Act established Chief Financial Officers (CFO) for Executive Branch departments and 

major agencies. The CFO Act established the CFOs’ statutory authority and functions, including 

oversight of all financial management activities of the agency. The CFO Act also created a CFO 

Council to look at such matters as consolidation and modernization of financial systems and 

improving the quality of financial information. The CFO Act requires CFOs to report annually 

to the agency head and the Director of OMB on the financial management of the agency and 

include audited financial statements and reports on FMFIA compliance. 

 1 https://www.dol.gov/agencies/ocfo/about. 2 https://www.dol.gov/ocfo/media/regs/cfoa.pdf.
TAB 1: Agency Organizational Overview

2

Organizational Structure

The OCFO is comprised of the CFO, one deputy, and two associate deputies, overseeing a total 

of four functionally related areas:

1) Office of Fiscal Integrity

2) Office of Financial Systems Integrity

3) Division of Client Financial Management Systems

4) Division of Financial Policy and Compliance 

Please see the Budget (Tab 4) section for details on OCFO FTE. 

Organizational Chart

Chief Financial Officer 

(CFO)

James Williams (PAS)

Division of Administrative 

Services

Marella Turner

(Career GS)

Deputy Chief Financial 

Officer

Kevin Brown (Career SES)

Division of Financial 

Reporting

Jennifer Maurer, Acting

(Career GS)

Division of Financial 

Policy & Compliance

Dylan Sacchetti

(Career GS)

Division of Central 

Accounting Operations 

Westley Everette 

(Career GS)

Office of Financial System 

Integrity 

Andrew Allen, Acting

(Career SES)

Division of Client Financial 

Management Services 

Janice Blake-Green

(Career GS)

Office of Fiscal Integrity

Kevin Brown, Acting

(Career SES)

Division of Security and 

Technology

Robert Springfield

(Career GS)

Division of Business 

Process Improvement

Westley Everette, Acting

(Career GS)

Division of Customer 

Support

Andrew Allen

(Career GS)

Chief of Staff

James (Trey) Hudgens

(Non-Career GS)
TAB 1: Agency Organizational Overview

3

Workforce At-A-Glance
TAB 1: Agency Organizational Overview

4

Organizational Changes During the Past Four Years

Over the past four years the Department has undergone a restructuring to centralize financial, 

including budget services, and debt management. This new structure more closely aligns with 

the organizational structure of financial services and authorities across the government.

Departmental Budget Center

The Departmental Budget Center was moved to OCFO from the Office of the Assistant Secretary 

for Administration and Management (OASAM) effective November 27, 2016, and moved back 

to OASAM on April 20, 2018.

Debt Management

In 2018, OCFO reviewed debt management procedures across DOL’s enforcement agencies. The 

review revealed that there were differing processes across enforcement agencies, limited 

performance metrics at the operational level, and inconsistent levels and intervals of engagement 

with debtors that all resulted in an overall low collection rate for the Department.

In June 2020, the Secretary issued an Order tasking OCFO with establishing a Debt Management 

Division dedicated to enforcement-related debt management activities for non-intragovernmental 

transactions (Enforcement Debt), as well as establishing and maintaining a central debt 

management system and repository for Enforcement Debts across the Department. This plan 

helps enforcement agents focus their resources on their mission and ultimately serves the U.S. 

taxpayer by ensuring those who violate the law pay their fines as well as improves worker safety 

by enforcement of worker protection laws. 

In August 2020, OCFO and OCIO established a steering committee to oversee the roll-out of the 

development of the new debt management system. As of October 2020, a contract has been 

awarded for the system development, working groups amongst agencies have begun, and project 

plans are under way for onboarding OSHA May 2021, MSHA July 2021, WHD 2021, and EBSA 

October 2021 into the Debt Management Division in OCFO.

Key Leaders

• James Williams, Chief Financial Officer

• Kevin Brown, Deputy Chief Financial Officer

• Kevin Brown (Acting), Associate Deputy CFO for Fiscal Integrity

• Andrew Allen (Acting), Associate Deputy CFO for Financial Systems Integrity
TAB 2: State of Play

5

TAB 2: State of Play

Key Meetings, Decisions and Announcements

There are no items requiring the Secretary’s action for the period of January 20, 2021, through 

April 20, 2021.

Policy and Regulatory Issues 

Enterprise Risk Management (led by OCFO with assistance from OASAM)

The Office of Management and Budget (OMB) Circular No. A-123, Management’s 

Responsibility for Enterprise Risk Management and Internal Control requires federal agencies to 

implement an Enterprise Risk Management (ERM) framework. ERM is designed to increase 

transparency and leadership collaboration to improve mission delivery, reduce costs, and focus 

resources towards top agency risks. In FY 2017, DOL developed its ERM Framework to initiate 

the establishment and integration of ERM elements across the Department, including the 

development of a DOL risk profile. The DOL risk profile provides a detailed analysis of the 

level and types of risks the Department faces toward achieving its strategic objectives, arising 

from its activities and operations. 

In March 2019, DOL established its Enterprise Risk Management Council (ERMC) which 

provided further guidance on the Department’s approach for 2019 and beyond. The ERMC 

emphasizes the importance of having appropriate risk management processes and systems to 

identify challenges early, to bring them to the attention of leadership, and to develop solutions. 

Implementing a holistic ERM program enables the Department to meet its strategic, compliance, 

financial, operations, and reporting objectives more effectively.

The ERMC is co-chaired by the Deputy Secretary, Chief Financial Officer, and Assistant 

Secretary for Administration and Management. Its membership includes representatives from all 

DOL agencies that are career members of the Senior Executive Service.

The ERMC serves as DOL’s enterprise oversight body for the development of coordinated 

Department-wide positions on risk, risk management, risk mitigation, and execution in 

conformance with any Congressional or OMB guidance. The ERMC is responsible for 

implementing an ERM framework and strategy for the Department and coordinating an annual 

risk assessment to provide an integrated, enterprise-wide view of risk, risk tolerances, and risk 

mitigation efforts. 

Each DOL agency also has an Agency Risk Lead. These individuals have broad reach and 

knowledge of their agency’s mission and programs. They work closely with the OCFO and 

OASAM throughout the year on ERM implementation and guidance. The Agency Risk Lead 

serves as the agencies’ main point of contact for communication to the ERMC, Senior Officials, 

and Department officials. Agency Risk Leads facilitate risk management activities, policies,

practices, and standards, and disseminate relevant information to agency and departmental 

management and staff. They also coordinate the implementation of the Department’s ERM 
TAB 2: State of Play

6

program within their respective agencies and actively participate in cross-agency initiatives and 

project-focused working groups. This includes coordination of risk identification and assessment 

from all major programs and divisions within their agencies. 

Office of Inspector General (OIG) Audits

Review of Department’s Digital Accountability and Transparency Act Readiness: OIG’s focus 

is to gain an understanding of the processes, systems, and controls that the Department has 

implemented, or plans to implement, to report financial and payment data in accordance with 

DATA Act requirements. This audit will test one quarter of fiscal year 2020 activity.

Independent Auditor’s Report on the U.S. Department of Labor’s FY 2021 Consolidated 

Financial Statements: An audit of the financial statements of DOL , for the fiscal years ending

September 30, 2020 and September 30, 2021.

Review of the Department’s compliance with the Payment Integrity Improvement Act 

(PIIA): OIG is required to report annually on DOL’s compliance with PIIA under Circular A123, Appendix C within 180 days after issuance of the Agency Financial Report (AFR).

Audit of the Department’s Working Capital Fund (WCF): OIG’s focus is on the WCF’s 

budget and cost calculations, and the methodology used to allocate costs to component 

agencies. This audit is underway.

OIG Audits on OCFO activities that were completed in FYs 2016, 2017, 2018, 2019, and 

2020:

• Reporting Over the U.S. Department of Labor's FY 2019 Compliance with the Improper 

Payments Elimination and Recovery Act. Report No. 22-20-008-13-001 (May 15, 2020).

• DATA Act: DOL's Reported Data Generally, Met Quality Standards But Accuracy Issues

Remain. Report No. 03-20-001-13-001 (November 21, 2019). 

 

• Management Advisory Comments Identified In An Audit of the Consolidated Financial 

Statements For The Year Ended September 30, 2019. Report No. 22-20-005-13-001

(December 19, 2019).

• Review of Secretary Acosta's Travel. Report No. 17-18-001-01-001 (January 25, 2018).

• The Department Needs to Take Action to Improve The Quality of Its DATA Act 

Submissions Report. Report No. 03-18-001-13-001 (January 19, 2018).

• FY 2017 Independent Auditors' Report on DOL Consolidated Financial Statements.

Report No. 22-18-004-13-001 (November 15, 2017).

• DOL Needs to Do More to Reduce Improper Payments and Improve Reporting. Report 

No. 03-17-002-13-001 (June 13, 2017).

• Risk Assessment of DOL's Purchase and Travel Card Programs. Report No. 17-17-001-

50-598 (March 31, 2017).
TAB 2: State of Play

7

• Management Advisory Comments Identified in an Audit of the Consolidated Financial 

Statements, For the Year Ended September 30, 2016. Report No. 22-17-004-13-001

(March 24, 2017).

• FY 2016 Independent Auditors' Report on the U.S. Department of Labor's Consolidated 

Financial Statements. Report No. 22-17-002-13-001 (December 15, 2016).

• The Department Needs to Ensure it is on Track To Implement DATA Act Requirements.

Report No. 17-16-002-13-001 (September 30, 2016).

• DOL Could Do More to Reduce Improper Payments and Improve Reporting. Report No. 

03-16-002-13-001 (May 13, 2016).

• Management Advisory Comments Identified in an Audit of the Consolidated Financial 

Statements for the Year Ended September 30, 2015. Report No. 22-16-004-13-001

(March 25, 2016).

Management 

New Core Financial Management System (NCFMS) 

NCFMS is the financial system of record for the Department of Labor. On an annual basis, 

NCFMS processes an estimated 454,000 invoices, 266,000 payments, 188,000 travel documents,

47,000 obligation documents, and 7,000 requisition documents. Itis used to manage and account 

for nearly $60 billion of taxpayer funds.

Background: In 2014, due to the imminent bankruptcy of our private sector financial system 

service provider, the Department was abruptly confronted with the potential loss of automated 

capability to manage and account for $60 billion in annual transactions. OASAM and OCFO 

envisioned and orchestrated an unprecedented innovative solution, collaborating with five other 

federal departments to purchase data rights, software and intellectual property, and hardware, in 

addition to securing operational support to run the financial management system.

For nearly two years–from September 2014 through June 2016–DOL and the Department of 

Transportation’s Enterprise Service Center (DOT/ESC) worked to stabilize and run the highlycustomized system through a series of Interagency Agreements. During that time, DOL and DOT 

began collaborating on planning efforts for the Department to migrate to DOT/ESC’s federal 

shared service financial management system. This effort was halted as it was cost prohibitive for 

the Department to migrate to DOT/ESC. In addition, GSA’s Unified Shared Service 

Management (USSM) office is working with the private sector to develop software as a service 

option for federal financial management. 

In July 2016, the Department awarded a three-year contract (one base year, two option years) to 

Booz Allen Hamilton (BAH) to operate the system. DOT/ESC chose Booz Allen Hamilton to be 

the contractor on the NCFMS project initially. By contracting directly with the experienced 

support contractor, DOL gains project management oversight and efficiency in service at a 

reasonable cost.
TAB 2: State of Play

8

In 2019, the Department of Labor awarded a seven-year contract (one base year, six option 

years) to Booz Allen Hamilton to operate and upgrade the system. 

In 2020, OCFO elected to renegotiate the NCFMS contract. With support from the Office of the 

Senior Procurement Executive (OSPE), OCFO reduced the contract expenses by 16% and 

converted to a Firm Fixed Price contract from a Time and Materials structure. The conversion to 

a Firm Fixed Priced contract aligns with an OIG recommendation below.

Auditor Findings: The OIG has issued a series of reports on the Department’s management of 

NCFMS, the most recent released in June 2015. The OIG recommended that the Department 

develop and implement a process to review and approve the services and costs requested (by 

DOT/ESC) for reimbursement, and for the Department to negotiate a firm-fixed price agreement 

with DOT for a baseline of operation and maintenance services for NCFMS. Both 

recommendations are closed.

Working Capital Fund (WCF) Restructure

Background: The Working Capital Fund (WCF) provides centralized administrative services 

throughout the Department in support of agency operations. The purpose of the fund is to 

decrease the overall cost of these services by combining the purchasing power of the Department 

instead of individual agencies procuring services individually. The WCF receives no direct 

appropriation and is funded through collections from appropriations for agency activities based 

on agency usage of WCF services. WCF operations are a joint responsibility of OCFO and 

OASAM’s Departmental Budget Center. 

The WCF funding model creates a built-in conflict between agencies that provide centralized 

services and program agencies. With the relatively flat appropriations for the Department over 

the past several years, there has been an increased push for additional transparency into WCF 

activities and costs. To instill multiple viewpoints in WCF decision-making, Secretary Perez 

met with agency heads on July 22, 2015, to announce two reviews of the WCF. The first was 

conducted by Assistant Secretaries, Directors, and other agency heads (non-career staff) who 

were tasked with providing short-term recommendations for the FY 2016 WCF Budget. This 

group issued its recommendations on November 30, 2015. The second, comprised of career 

Deputy Assistant Secretaries and other Deputy Agency Heads, provided further-reaching 

recommendations on governance, budget cycle, and performance management on April 6, 2016.

Results: As a consequence of these reviews, and to bring greater transparency, efficiency, and 

agency involvement in the WCF, a WCF Advisory Board (WCF Board) was established. The 

Deputy Secretary of Labor serves as the chairperson. Other members include the Chief Financial 

Officer, the Assistant Secretary for Administration and Management (ASAM), and career 

Deputy Assistant Secretaries or senior executives across the Department. The purpose of the 

Board is to take an enterprise-wide view of the centralized administrative services provided 

through the WCF. The Board serves in an advisory capacity to the Deputy Secretary and 

Secretary as they make strategic decisions regarding the services provided through the WCF and 

the impact of those decisions, given that the WCF is funded through collections from 

appropriations for agency activities.
TAB 2: State of Play

9

The WCF Committee (WCF Committee) is a standing committee chaired by the Director of the 

Departmental Budget Center. The WCF Committee serves in an advisory role to the WCF 

Committee Chair in resolving matters that are crucial to the operation of the WCF. The 

Committee reviews and advises on the application of policy governing the WCF from an agency 

perspective. The Committee may create and members of the Committee may serve on WCF 

Workgroups to assist in researching and addressing specific Departmental initiatives or timesensitive issues (e.g., governance, cost allocation, reimbursement methodologies, and 

performance/accountability).

The Administrative Officer (AO) of each DOL component agency, or an alternate formally 

designated by the Agency Head of that component, is a member of the WCF Committee. 

Agency designees must have the authority to speak for and commit their respective agency on 

matters related to the WCF, whether as a Customer Agency Representative or Service Provider 

Representative.

The WCF Board works closely with the WCF Committee and is authorized to establish multiple 

subcommittees. Among other responsibilities, these groups are tasked with identifying ways, 

whenever feasible, to avoid unexpected assessments on customer agencies, avoid unexpected 

demands on service provider agencies, and to ensure sensitivity to competing agency priorities. 

The subcommittees can look at, for example, cost recovery methodologies (e.g., FTE, usage, 

rental space, direct charges) to evaluate chargeback methodologies for logic, efficiency, and 

equity. They can also review alignment of WCF activities and services with the business needs 

of the customer agencies. An important outcome is enhanced transparency and improved 

communications between service provider agencies and customer agencies.

Key Agency Stakeholders

Director, Office of Management and Budget

The Office of Management and Budget (OMB) is responsible for coordinating the formulation of 

the President’s Request. The Secretary will submit the Department’s annual budget requests to 

the director of OMB and may appeal the initial OMB decisions on those requests. The Office of 

the Chief Financial Officer is responsible for budget execution.

OMB Circular A-11 Preparation, Submission and Execution of the Budget

The management side of OMB oversees and coordinates the federal procurement policy, 

performance and personnel management, information technology (e-Government), and financial 

management. In this capacity, OMB oversees agency management of programs and resources to 

achieve legislative goals and Administration policy. OMB Circular A-123 Management’s 

Responsibility for Enterprise Risk Management and Internal Control.

U.S. Department of Treasury

The U.S. Department of Treasury promotes the financial integrity and operational efficiency of 

the federal government through exceptional accounting, financing, collections, payments, and 

shared services with a vision of transforming financial management and the delivery of shared 

services in the federal government.
TAB 2: State of Play

10

Treasury is responsible for (1) financing government operations by offering Treasury securities 

through reliable, accurate, flexible, and electronic systems, (2) operating the federal 

government’s collections and deposit systems, (3) providing central payment services to the 

American public on behalf of government agencies, (4) identifying and assisting in the 

prevention of improper payments, while collecting debt owed to government agencies (5) 

delivering cost-effective, quality administrative and information technology services through a 

shared service model and (6) providing timely, reliable, and transparent financial services and 

information.
TAB 3: Calendar

11

TAB 3: CALENDAR

 3 https://www.dol.gov/sites/dolgov/files/OPA/reports/2019annualreport.pdf.

Event Date

Agency Financial Report.

3 Management Representation Letter and 

Management Assurance statement of reasonable assurance over the strength 

and legal compliance of internal controls and financial systems. Co-signed 

by Secretary, Deputy Secretary, ASAM, and CFO.

November 15, 

2021

Working Capital Fund (WCF) Advisory Board. Chair of Board is the 

Deputy Secretary who reviews WCF action with the Secretary as 

appropriate.

Monthly
TAB 4: Budget

12

TAB 4: BUDGET

BUDGET AUTHORITY AND FTE SUMMARY

(Dollars in millions)

FY 2017

Enacted

FY 2018

Enacted

FY 2019

Enacted

FY 2020

Enacted

FY 2021

Request

Budget 

Authority $9.9 $10.4 $5.5 $5.5 $5.5

FTE 34 35 21 18 17

At-A-Glance

• The OCFO receives funding as an activity in the Departmental Management (DM) 

appropriation and through the WCF. 

• DM funding supports staff and related expenses for the policy-making functions of the 

CFO. The WCF supports staff and all expenses for operational functions. 

Budget and FTE Trends

• The OCFO’s appropriated funding levels have been stable between FY 2012 and FY 

2020. The appropriated funding makes up a small percentage of the overall resources. 

The Department has not made any significant budget requests for the OCFO’s DM 

appropriation.

• The OCFO’s WCF budget authority has grown from $36.6 million in FY 2010 to $51.3 

million in FY 2017 primarily for NCFMS, the Department’s financial system of record.

• The Department has had to make significant investments in NCFMS through the WCF. 

In 2014, the contractor responsible for migrating the Department’s financial systems into 

the cloud, as well as maintaining and hosting this system, went bankrupt. The 

Department worked with the Department of Transportation (DOT) and a contractor to 

acquire the system and to support the operations. After stabilizing operations, the 

Department again took control of NCFMS.

• In FY 2017 the Departmental Budget Center (DBC) was moved from OASAM to the 

Office of the Chief Financial Officer, and $4.8 million and 21 FTE were transferred from 

OASAM to OCFO. In FY 2018 the Departmental Budget Center (DBC) was moved 

back from OCFO to OASAM.

• OCFO’s FY 2020 enacted funding is $5.5 million and 18 FTE. 

• The FY 2020 House Appropriations bill funded OCFO at $5.5 million, which is the same 

level as the FY 2020 President’s Budget.
TAB 4: Budget

13
TAB 4: Budget

14
TAB 5: Agency Performance

15

TAB 5: AGENCY PERFORMANCE

Audit

DOL undergoes an annual independent audit of its consolidated financial statements. The 

auditors may identify significant control deficiencies and/or material weaknesses during the 

audit. Preventing and eliminating these issues are among OCFO’s most important goals. In 

FY19, DOL earned its 23rd unmodified or ‘clean’ audit opinion since audits were first required 

in FY 1997.

A significant control deficiency exists when the design or operation of an internal control does 

not allow management or employees, in the normal course of performing their assigned 

functions, to prevent, or detect and correct, misstatements on a timely basis.

• Audit Findings: DOL currently has zero significant control deficiencies.

A material weakness is a deficiency, or a combination of deficiencies, in internal control such 

that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected, on a timely basis.

• Audit Findings: DOL currently has zero material weaknesses. 

Key Financial Performance Measures: 

In FY 20, OCFO’s performance was tracked through 18 performance measures. Below is a 

snapshot of three key measures.

Measure# 3.2.1: Percent of network and application services uptime (all OCFO internal 

Systems operate with target timeframe)

99% 99% 99% 99% 99% 99% 99%

90%

92%

94%

96%

98%

100%

102%

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Q3 YTD*

FY 2021 Target

*The FY 2020 Target is 99%
TAB 5: Agency Performance

16

This metric is an indicator whether the NCFMS technical infrastructure and support staff are 

working effectively to provide an integrated core financial management system that meets both 

guidance set forth by OMB and Treasury, and DOL-specific requirements.

• Consistently exceeding the target of 99 percent since 2015 reduces the risk of financial 

system errors that could prevent DOL from maintaining an unqualified audit opinion.

Measure# 3.1.5: Percentage of payments made without incurring Prompt Payment Act 

interest.

Per the Federal Acquisition Regulations and Prompt Payment Act, contract invoices must be paid 

on time or incur interest. OCFO monitors the percentage of payments made without incurring 

Prompt Payment Act interest as an indication of timeliness.

• DOL has consistently made timely payments on 99 percent of invoices, exceeding the 

95.00 target rate.

Measure# 3.2.3: Percent of NCFMS systems separations processed within 24-hours.
TAB 5: Agency Performance

17

This metric measures the effectiveness of the NCFMS account management process related to 

quickly disabling access for users that are no longer employed by DOL. DOL guidance indicates 

account access should be terminated no more than 24 hours from receipt of a separation 

notification from the Office of Human Resources.

• Since FY 15, OCFO has met the target of 100 percent of separations processed within 24

hours.