1. Financial Management Transformation FSA Perspective
February 20th, 2013
Financial System Authority Office of the Comptroller General of Canada

2. Objective of the session
FSA Mandate, Vision and Services
FSA Deliverables (Progress, Status and Next Steps)
Common Enterprise Data Initiative (CEDI)
Common Financial Management System Configuration (FM-SC)
Common Financial Management Business Process (FM-BP) Initiative
What’s Next
Questions and Discussion 2

3. FSA Vision and Services3 3 3

4. Common Enterprise Data Initiative (CEDI)

5. CEDI Outcomes
CEDI provides the foundational structure to collate meaningful financial and material information across government.
Target outcomes for CEDI continue to include:
Better information and improved financial management services.
Help address long standing operational and reporting inefficiencies.
Enabler for open data.

6. Strategic Environment
Continue emphasis on convergence towards common (processes, systems, information).
FM Transformation, ASR, SOR, DRAP,
HRSDC SAP build, …
CEDI provides guidance on common information needs and strategic requirements to organizations and projects building common solutions.
Increasing demands for more relevant and timely information supporting GC-wide financial analysis and resource management.
CIOB – IT expenditure reporting
EMS – How much is spent on policy development compared to front-line service delivery?
Open Data, …
CEDI works with stakeholders to define new information needs and propose solutions, and (as appropriate) issues requirements and data standards to support implementation.

7. CEDI Approach
Guided by a target-state model, CEDI supports standardization of financial information by:
Developing and issuing data standards,
Providing guidance to key initiatives (e.g. HRSDC), and
Providing a framework to help enable Open Data initiatives.
Information model integrates with FM-BP process model, and FM-SC requirements model.
Strategic Direction (Governance)
ASR,SOR, DRAP,…
FM Transformation
Open Data
FM-BP
Financial Information Model defines:
The scope of financial and related non- financial information.
What each piece of information means.
Requirements for common data elements and identifiers.
Authoritative sources for standard data elements.
FM-SC
Target-State
Financial Information Model
CEDI
Guidance to initiatives
(information and reporting requirements and capabilities)
Issue data standards
(e.g. vendor, customer, DCOA, etc.)
Support Open Data
(data definitions and semantics, identify authoritative sources)

8. Status of CEDI Data Standards
Approval Step
DCOA Standard and Line Object Guideline
Vendor Record
Customer Record
Materiel Coding (Procurement Item Classification)
CFO Consultation
 Jun 2011
 Mar 2012
 Jan/Feb 2013
DCC
 Sep 2011
 May 2012
 Apr/May 2013
POC
 Nov 2011
Approval
 Jun 2012
 May/Jun 2013
Effective Date
 Apr 2012
 Jul 2012
 Apr 2014
Visit for draft standards and background documentation. 8

9. Information Model The Information Model must address:
Enterprise and GC-wide information needs
Policy driven process and control requirements
Interoperability requirements (information crossing system and organizational boundaries)
Supporting common business processes and common system configurations
The Information Model would be a ‘living document’ – continually being refined and updated to meet the requirements of the stakeholders.
The scope of creating the entire Information Model at once is not possible given the immediate need and the available resources. The most relevant sections, including leveraging previous sections of CEDI, would provide the baseline. 9

10. CEDI going forward: The Information Model
The Information Model will be the repository for enterprise level business and information needs that will be supported operationally through common processes and common systems
Data components would mean one thing across all of Government allowing apples to apples comparisons for open Government
The information model will define the data elements that describe financial and related non-financial components of the GC (defining unambiguously concepts of materiel, programs, funds, organization, products and services) and document associated business needs and requirements that are important to the Enterprise
The Information Model will also help define that data components can only be used for their intended purpose
A key tenant of being able to do Open Data Initiative is that customization of data elements cannot be done at the Departmental level 10

11. Common Financial Management System Configuration Requirements (FM-SC)

12. Financial Management System Configuration (FM-SC)
The purpose of the Financial Management System Configuration Initiative (FM-SC) is to identify a set of departmental financial management system (DFMS) configuration requirements for the Government of Canada (GC) within the context of its current legislative and policy framework. The FM-SC is intended to apply to all departments and agencies as defined in section 2 of the Financial Administration Act (FAA). The end result of this initiative will be the Financial Management System Configuration Guideline.
Per the Directive on the Stewardship of FMS:
Role of the Chief Financial Officer
Implementing FMS cluster group system configurations and OCG-endorsed system functionality as they are established or made available from time to time.
Role of the Chair of the FMS cluster group management board
The chair of the cluster group management board is responsible for evolving the cluster configuration in alignment with the criteria established by the OCG for cluster configurations. 12

13. FM-SC Components General Ledger management
Planning, budgeting and forecasting
Appropriation and commitment control
Procurement
Expenditure and payables management
System management
Asset management
Inventory management
Pay administration
Travel management
Revenue and receivables management
Reporting 13 13

14. Interface requirements
Each component within FMSC identifies Interface requirements at a high level
Example from Travel Management:
Export travel expense data to Shared Travel Services for reporting purposes.
Import travel transaction data from the Shared Travel Services reporting service for integration with departmental reporting. 14 14

15. Common Financial Management Business Process (FM-BP) Initiative

16. The Common FM-BP Initiative
Goal:
To develop an integrated framework of ‘should be’ common processes that standardize and modernize the delivery of financial management
Approach:
OCG sponsored in collaboration with departments and agencies, financial systems clusters, policy authorities and service providers
Deliverables:
Guidelines which will provide:
Standardized process definitions
System- independent, modular, interoperable
Common to all departments and agencies
Describes roles and responsibilities in detail
“RACI” data analysis includes identification of:
Responsible, Accountable, Consulted, and Informed resources; and
Authoritative data sources
Process Flows
Flow diagrams 16

17. The Common FM-BP initiative scope and governance
Project Operations
Business Processes organized into Domains and Cross functional areas 17 17

18. Common FM-BP Initiative Linkages
Departmental Operations
Departments
(DM/CFO,
Management)
Service Providers
Cluster Groups
GC-wide Direction
Mazankowski Tellier Report
Reports to the Prime Minister on the Public Service
Services Sector Finance Council Recommendations
Blue Ribbon Panel
Annual Budgets
Requirements,
Expertise
Common Processes
Policies, Directives, Standards, Guidelines, Tools
Policy Centres & Central Agencies
Strategic Direction
Common
FM-BP
Initiative
Validation
Fulfillment
Enablement
Standardization through Collaboration
Horizontal Initiatives
CEDI
STSI
Grants & Contributions 18 18

19. FM-BP models Planning Budgeting & Forecasting
Manage Planning & Budgeting
Manage Forecasting & Budget Review
Revenue & Accounts Receivable
Manage Revenue, Receivables & Receipts
Manage Interdepartmental Settlements
Manage Collection of Overdue Receivables
Expenditure & Accounts Payable
Manage Procure to Payment
Manage Travel
Manage Other Payments
Manage Distribution and Maintenance of Acquisition Cards
HR/Finance Interactions
Pay Administration
Materiel/Finance Interactions
Manage Other Capital Assets
Manage Real Property
Manage Inventory
Transfer Payments
Manage Grants & Contributions
Data
Manage Vendor Master Data File
Manage Delegation of Financial and Spending Authorities
Manage Departmental Chart of Accounts
Manage Customer Master Data File
Integration
Manage Post-payment Verification
Manage Financial Close 19 19

20. Sample Level 2 Process Flow20 20

21. Sample Level 3 Process Flow
Comprehensive Process Flow
Integrated view across all FM-BP processes
Linkages to process description and RACI
Consideration of controls 21 21

22. Sample Level 3 Sub-Process RACI
Linkages to process description and to process flow
Related data identified
Responsibility, accountability, and requirements to consult and inform are assigned to specific roles 22 22

23. Benefits Accruing from an FSA
GOVERNMENTAL
Consistent business processes
Improved stewardship of strategic information to support Deputies and Ministers
Improved cost-cutting and control through appropriate procurement instruments, and accountability in GC spending
Direct response to the Mazankowski/Tellier PM Advisory Committee report
Better controls and reports on economic spending
DEPARTMENTAL
Improved efficiency and information
Improved interoperability between departments and within departments
Better strategic information to make decisions
New standards improving financial management through better information and reporting
Better controls and reports on economic spending 23

24. What’s Next Continue delivering on existing projects
Manage and deliver on MAF
Support CIOB in ERP exemptions & collaborate on Interoperability
Support Dept CFOs with guidance on systems
Work with Small Departments and Agencies
Continue to communicate message about Standardization to FM Community 24 24

25. Questions? 25 25

26. For More Information: www.gcpedia.gc.ca/wiki/Fsa
Marcel Boulianne, PMP,
Financial System Authority
Financial Management Sector
Office of the Comptroller General
Treasury Board of Canada Secretariat
Telephone
Info Links/URLs ee 26 26

27. 27 27 27