Target Financial Management Systems Structure
The primary goal of financial management system modernization
at USAID is a single, integrated financial management system
(IFMS). The IFMS architecture is intended to support the mission
of the Agency, comply with federal requirements and standards,
improve the efficiency and effectiveness of Agency operations,
and deliver electronic government solutions. The goal will
be achieved by adherence to the disciplines of architecture
planning, capital investment planning, business process re-engineering,
and systems engineering. This will ensure that plans are business-focused
rather than technology-driven, results-oriented rather than
process-driven, and developed by business managers rather
than technology specialists alone.
USAID has made transformation of the Agency to a world class,
21st century international development and humanitarian assistance
organization, one of its highest priorities. Management reform
is a key element of this transformation. Specifically, the
vision for USAID consists of a new direction in modernizing
Agency business systems and a comprehensive business transformation
agenda.
USAID senior managers are leading this business systems transformation
in a three-staged approach. Stage one involves modernizing
the Agency’s business systems worldwide by standardizing
and integrating processes and systems, and aligning the Agency
business model with the Federal Enterprise Architecture (FEA).
In stage two, the Agency will adapt business processes to
anticipate and respond to changing requirements such as expanded
use of federal government cross-servicing and outsourcing
key administrative services.
By stage three, the Agency will deploy adaptive capabilities
to the community of development and humanitarian assistance
providers. The following are examples of stage three capabilities:
suppliers can electronically submit invoices; vendors can
determine their expenditures via the internet; and Congress
will have ready access to information related to program objectives,
results, and approaches.
The target financial management system will:
- Provide complete, reliable, timely, and consistent information.
- Apply consistent internal controls to ensure the integrity
and security of information and resources.
- Utilize a common data classification structure to support
collection, storage, retrieval, and reporting of information.
- Provide an information portal to the Agency’s financial
management data resources with a similar look and feel accessible
wherever USAID operates.
- Utilize an open framework and industry standards for data
interchange and interoperability.
- Provide, on demand, value-added information products and
services.
- Ensure that standardized processes are utilized for similar
kinds of transactions.
- Remain flexible and modifiable to business changes.
- Support timely, accurate, and cost-effective electronic
exchange of information with customers and external partners.
USAID and the State Department upgraded their respective
versions of the Momentum software in FY 2005, and now
operate from the same version. Furthermore, both Agencies
run from a common infrastructure from State’s facility
in Charleston, South Carolina. However, both USAID and State
maintain separate financial systems.
The two agencies can expect to achieve savings and efficiencies
by integrating infrastructure and coordinating deployment
efforts. USAID and State submitted a joint business case for
FY 2005 – FY 2007 that provides a general outline of
the integration. In FY 2004, they conducted a study to determine
the requirements, and in FY 2005, they conducted testing for
mutual deployment. In FY 2006, both agencies completed implementation
of a joint continuity of operations (COOP) facility.
This centralized architecture allows for easier maintenance,
security, and operational efficiency. To provide around-the-clock
support required for mission operations, the telecommunications
and technical architecture were upgraded. The specific configuration
was determined as overseas rollout plans were implemented.
The infrastructure business cases detail the telecommunica-tions
upgrades. In addition, USAID established four Phoenix Regional
Solution Centers (PRSC) to support Phoenix users worldwide.
The PRSC locations are: Cairo, Egypt; Manila, Philippines;
Nairobi, Kenya; and Accra, Ghana.
The business functions of the Agency will increasingly be
supported by a combination of commercial software products
and third-party service providers. Public sector and private
sector third-party service providers will provide essential
feeder systems to the Agency’s core financial system.
The increasing reliance of foreign affairs agencies on shared
telecommunications infrastructure, co-located facilities overseas,
and common financial transaction processing services may suggest
alternative implementation strategies for the IFMS. An interoperability
framework consisting of policies, standards, practices, hardware,
and software will enable the Agency to more effectively utilize
commercial software products and third party service providers
to develop the IFMS as both technologies and service providers
evolve.
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