Ms. Kristyn E. Jones Director, Financial Information Management 15 November 2010

We’re on schedule and within budget for Full Deployment Q1 2012 Major Automated Information System (MAIS) Summary of Key Events (As of November 2010) Milestone A approval – June 2005 Milestone B approval – Mar 08 Release 1.2 and “Go live” – Oct 2008 Release 1.3 and Wave 1 “Go live” – April 2009 Milestone C approval – 30 May 2009 Release 1.4 and “Mini Go live” – Oct 2009 “Mini Go live” – 1 Jan 2010 Wave 2 “Go live” – 1 Apr 2010 Release 1.4.1 – 19 Apr 2010 Release 1.4.2 and Wave 3 “Go live” – Oct 2010 Approximately 11,000 Users across 12 Commands We’re on schedule and within budget for Full Deployment Q1 2012 8/12/2019 As of 25 Aug 2010

Lessons Learned – Manage For Success Engage leadership –Vice Chief Memo to Commanders Use chain-of-command to actively engage all levels of the Army in the deployment process Establish strong governance structure and process (must be willing to say no to new requirements) Integrate PMO, Functional Proponent and System Integrator team to enable rapid escalation and resolution of issues Successful implementation requires alignment across all organizations 8/12/2019 3 3

Lessons Learned – Developing The Solution No customization to the core COTS solution Insist on significant Command and Process Owner participation on project team beginning with design Develop enterprise-wide processes (not Component or Command specific) Establish a strong architecture team to document processes, data flows, interface requirements Spiral new releases every 6 months Minimize data conversions Use the ERP as designed-- across the entire Enterprise 8/12/2019 4 4

Lessons Learned – Deploying The System Apply a “Crawl, Walk, Run approach” to mitigate risk and enable continuous learning Allow sufficient time to execute change management activities Develop an integrated management schedule with tasks for both the program office and gaining organizations Employ a command-base milestone-status reporting process Focus on getting the Army ready for the system— not just getting the system ready for the Army 8/12/2019 5 5

Lessons Learned – Supporting User Needs Identify user challenges in the deployment process and add additional time and effort to mitigate risks Develop local expertise so Commands can assume responsibility for success Revise and redesign training based on End User feedback Sustain outreach/communications effort, including new Web 2.0 capabilities like Milwiki Gather user feedback to determine what’s working— and what’s not 8/12/2019

GFEBS’ Contribution to the Army Auditable financial statements -- enable the Army to comply with the various statutory requirements including: Chief Financial Officers Act of 1990 (CFO) Federal Financial Management Improvement Act of 1996 (FFMIA) National Defense Authorization Act of 2010 Cost management -- provide the Army with new cost accounting capability for internal management Integrating financial, real property, total cost and performance data Enabling better informed decision making at every organizational level – from Army leadership to operational managers 8/12/2019

Army Auditability Milestones Examination Conducted by an independent public accountant (IPA) IPA follows federal audit standards (GAO Yellow Book) and provides an opinion on findings Audit iterations Examination #1 – 1 Jan 2011 – Wave 1 s Examination #2 – 1 Jan 2012 – Wave 1&2 Examination #3 – FY 2013 – All of GFEBS: all users, sites, & data (including interfaces) Examination #4 – FY 2014 – All of GFEBS: all users, sites, & data (including interfaces) Financial statement audit – 1 Oct 2014 – Army General Fund Statement of Budgetary Resources – All of GFEBS and legacy environments, systems, interfaces, data, supporting documentation

Cost Management Army Approach “As you consider this budget and specific programs, I would caution that each program decision is zero sum: a dollar spent for capabilities excess to our real needs is a dollar taken from a capability we do need – often to sustain our men and women in combat and bring them home safely.” Secretary of Defense Robert Gates Opening Statement to the HASC-May 2009 Army Approach Cost accounting enabled through GFEBS Enterprise cost model Enhanced analytics/reporting “Cost Culture” reinforced by Army leaders Cost training for leaders, operational managers, and RMs Provide accurate, reliable, and timely financial information and integrated functional performance data to Army 8/12/2019