Implementing GFEBS in Michigan Michigan Department of Military and Veterans Affairs – State Operations

Mission, Vision & Values Provide relevant and ready operational military forces, consistent with our values, in support of our state and nation. Provide support to military personnel, civilian employees, families, retirees, and veterans. Values: Loyalty Duty Personal Courage Selfless Service Honor Integrity Respect Integrity First Service Before Self Excellence In All We Do Vision: Acknowledged as a premier military and veterans organization meeting state and national requirements. Recognized as the destination of choice for full spectrum operations and four-season joint training.

Military and Civilian Employees Military Personnel - 11,704 Army Guard: 8,976 Full Time: 1,215 Air Guard: 2728 Full Time: 803 Total Full Time Personnel 2,018 Civilian Personnel – 1,231 State Employees: 876 Federal Workforce: 355

COMBINATION STATE & FED Classified State Employees LOCATION TOTAL 100% GF/GP COMBINATION STATE & FED Headquarters 53 16 37 Armory Maintenance 22 Youth Challenge 32 Camp Grayling 61 Fort Custer 21 AASF/USPFO/CSMS 11 Alpena CRTC 41 Battle Creek ANG 47 Selfridge ANG 17 Veterans Affairs Directorate 3 Veterans Trust Fund 5 Grand Rapids Home 410 Jacobetti Home 153 Total 876 835 Only 41 of 876 are fully funded with GF the others are 100% federal or a combination of funds 4

Army National Guard Two Army National Guard training sites CALUMET Two Army National Guard training sites 43 State-owned Armories 8976 Soldiers 6 Major Commands, 14 Battalions

Michigan Air National Guard Alpena CRTC 3 Bases Selfridge ANGB Battle Creek ANGB Alpena CRTC 2728 Airmen 3 Aircraft Types A-10 C-21 KC-135 1 Command & Control Group Selfridge ANGB Battle Creek ANGB Lansing Headquarters

Objective Discuss the implementation of GFEBS in Michigan from a State’s perspective Provide opportunity to discuss issues, concerns and best practices related to GFEBS

Briefing Outline GFEBS Implementation in Michigan Discussion Purpose & Related Information Implementation in Michigan Roles & Responsibilities USPFO Training SF270 Processing Discussion

GFEBS - Purpose GFEBS is a commercial-off-the-shelf financial management system built by SAP to replace the Army’s legacy Standard Financial System (STANFINS) to serve as the Army’s enterprise resource planning system. Will bring the Army in compliance with the CFO Act and the Federal Financial Management Act Replaces 80% of overlapping interface requirements and functionality. Replaces 75 Army systems/interfaces and 48 others

GFEBS - Purpose (Cont.) Provides standardized and real-time financial asset, and accounting data and information; integrates financial systems and functions Over 79,000 Army users Worldwide More than 200 locations A Million Transactions A Day Used by Active Army, USARNG and USAR Annual Budget $140 Billion GFEBS Training Provided for User Roles Within the System (Program Managers, Budget Analysts and Activity Directors) Source: www.gfebs.army.mil

Implementation Training – Online for Program Managers (PM) and Federal Personnel Planned to run both STANFINS and GFEBS because SMD received Advance Payments SMD decided to forgo advance payments Allowed to fully implement GFEBS It was all an unknown. Federal Program Managers along with USPFO Staff were attending training. Each time we were told,

Implementation There were many stops and starts before funding was in place PMs were told to load funds in both systems PMs had to move FY12 Funds to GFEBS It was all an unknown. Federal Program Managers along with USPFO Staff were attending training. Each time we were told,

Implementation Lack of Available Training for State Employees We didn’t know what we didn’t know (preparation difficult) Lack of Reimbursements No GFEBS account coding, No funds letters, No STANFINS Did not start receiving reimbursements until March 2012 We made the decision to make the conversion and not “Kick the can” down the road It was all an unknown. Federal Program Managers along with USPFO Staff were attending training. Each time we were told,

Implementation ADVANCES PAYMENTS States with advances don’t have to make the conversion until October 2012 Mississippi is 1 of 5 test State for advance processing in GFEBS In Nebraska GFEBS is used for all transactions except for cooperative agreements Hampers management of MCA regarding advances and other payments to State Military Departments Cash Management and the Single Audit We made the decision to make the conversion and not “Kick the Can” down the road It was all an unknown. Federal Program Managers along with USPFO Staff were attending training. Each time we were told,

USPFO Training Routing & Changes (Flow of Paper) Funds Commitment Sheets/Line of Acctg (LOA) State Certifying Official – Block 13 Federal Program Manager Responsibilities Grant Officer Representative Validates compliance with MCA USPFO Commercial Accounts Process SF270

Roles & Responsibilities USPFO-Michigan Comptroller – Provided training, Set up accounts, Process vouchers GOR – Track SF270, recently received access to GFEBS Federal Program Managers Provide to State the Funds commitment sheets Load accounts with Commitment Lines of Accounting (LOA) Approve SF270 Must keep State up to date on changes to the funding levels and new lines of accounting

Roles & Responsibilities State Military Department Correctly bill SF270 with the new requirements What is reported on the Face of the SF270 changed Cage codes; Running totals; Match requirements and Program income – Reported on SF270

SF270 Processing Ability to process transaction didn’t occur until February 2012 February we submitted “test” SF270 to get a understanding of the flow and make sure it worked Established template for each funds commitment sheet The order of the Lines of Accounting (LOA) of the SF270 must match the order of the LOA on the Funds Commitment Sheet otherwise…

SF270 Processing Pen & Ink Changes No Longer Allowed Slower reimbursements (Avg 23 days compared to 7) Bundled Payments Must track by Point Accounts All Expenditures for 1 appendix are reported together - An appendix may have 2 PMs, 2 FCS (#5 and #7)

How’s It Going? Communication, Coordination & Cooperation (USPFO, PMs and SMD) Continue to Strengthen Relationships Revenue is starting to flow in on a regular basis

DISCUSSION How did the Conversion to GFEBS work in your State? States with Advances – Have you found the solution to Advance Payments in GFEBS? GFEBS Year-End Close How to perform year-end close functions/reconciliations in GFEBS? Training provided for new employees?