Building a Standardized DHS Foundation Federal Financial Management Conference Washington DC David Norquist Chief Financial Officer March 11, 2008

 Largest federal re-organization since DoD  Formed out of 22 agencies  Inherited: 100 resource management systems 18 material weakness conditions 30 reportable conditions  Did not inherit a common policy E Pluribus Unum

Procure-to-Pay Business Process Three department examples Invoicing Contracting Contract Execution Payment Requisition Invoicing Contracting Contract Execution Payment Requisition Payment Invoicing Contracting Contract Execution Requisition I II III Payment

Travel Business Process Existing variations at DHS:  Paper-based processes  Automatic authorization – Travel Manager  Blended solution – software working with accounting  FUTURE STATE: Implementing FedTraveler.com Receive Travel Authorization Number Submit for Supervisor Approval Submit for Accounting Approval Get Cost Estimate Obtain Tickets Through Travel Agency Receive Reimbursement Submit Expenses for Supervisor Approval Submit Expenses for Accounting Approval Create Expense Report

5 What Does it Take to Standardize Processes?  Policies need to be defined and written  People need to be trained  Processes need to be institutionalized  Systems need to reinforce the controls  Assurance teams need to validate the process is working

Addressing Material Weaknesses FY material weakness conditions MW MilitaryCivilian Components Material WeaknessesUSCGOCFOCBPFEMAICEMGMT US Visit TSAFLETC Financial Management Financial Reporting Financial Systems Security Fund Balance With Treasury Capital Assets & Supplies Actuarial & Other Liabilities Budgetary Accounting

Addressing Material Weaknesses FY material weakness conditions MilitaryCivilian Components Material WeaknessesUSCGOCFOCBPFEMAICEMGMT US Visit TSAFLETC Financial Management Financial Reporting Financial Systems Security Fund Balance With Treasury Capital Assets & Supplies Actuarial & Other Liabilities Budgetary Accounting MW

The Way Ahead in 2008  Issue second ICOFR Playbook – expand beyond financial management  Another round of A-123 reviews – stronger assurance statement  Issue Financial Management Policy Manual  New Hire Orientation (March) CFO Mentorship Program (June)  Continue to implement eTravel  Establish financial system baseline

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