Financial Management Systems: Core Financial Systems at the 24	 
Chief Financial Officers Act Agencies (27-JUN-03, GAO-03-903R).  
                                                                 
GAO was asked to identify the core financial systems used at each
of the CFO Act agencies as of September 30, 2002, and the status 
of any agency plans to update core financial systems. Core	 
financial systems, as defined by the Joint Financial Management  
Improvement Program, include managing general ledger, funding,	 
payments, receivables, and certain basic cost functions. The core
financial systems receive data from other financial and feeder	 
systems, such as acquisition, grant, and personnel systems, as	 
well as from direct user input, and provide data for financial	 
performance measurement and analysis and for financial statement 
preparation.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-903R					        
    ACCNO:   A07421						        
  TITLE:     Financial Management Systems: Core Financial Systems at  
the 24 Chief Financial Officers Act Agencies			 
     DATE:   06/27/2003 
  SUBJECT:   Congressional oversight				 
	     Financial management				 
	     Financial management systems			 
	     Financial statement audits 			 
	     Financial statements				 
	     Internal controls					 
	     Strategic planning 				 

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GAO-03-903R

Page 1 GAO- 03- 903R Core Financial Systems United States General
Accounting Office

Washington, D. C. 20548 Page 1 GAO- 03- 903R Core Financial Systems

A

June 27, 2003 The Honorable Todd R. Platts Chairman, Subcommittee on
Government Efficiency and Financial Management

Committee on Government Reform House of Representatives

Subject: Financial Management Systems: Core Financial Systems at the 24
Chief Financial Officers Act Agencies

Dear Mr. Chairman: On April 8, 2003, we testified before your Subcommittee
on the fiscal year 2002 consolidated financial statements of the U. S.
government. 1 In that testimony, we provided our perspectives on major
issues relating to the U. S. government*s consolidated financial
statements for fiscal years 2001 and 2002, including impediments to
rendering an audit opinion on

consolidated financial statements. As a result of issues raised in our
testimony about the preparation of the consolidated financial statements
and the adequacy of financial management systems and controls at the 24
Chief Financial Officers (CFO) Act 2 agencies, you and other subcommittee
members asked a number of questions about issues surrounding the
consolidated financial statements. On June 16, 2003, 3 we responded to all
but your question related to the status of financial management systems
modernization agency by agency. As agreed with your office, the objectives

1 U. S. General Accounting Office, Fiscal Year 2002 U. S. Government
Financial Statements: Sustained Leadership and Oversight Needed for
Effective Implementation of Financial Management Reform, GAO- 03- 572T
(Washington, D. C.: Apr. 8, 2003). 2 Pub. L. No. 101- 576, 104 Stat. 2838
(1990). The Federal Emergency Management Agency

(FEMA), one of the 24 CFO Act agencies, was transferred to the new
Department of Homeland Security (DHS) effective March 1, 2003. With this
transfer, FEMA will no longer be required to prepare and have audited
stand- alone financial statements under the CFO Act. DHS, along with most
other executive branch agencies, will be required to prepare and have
audited financial statements under the Accountability of Tax Dollars Act
of 2002, Pub. L. No. 107- 289, 116 Stat. 2049 (Nov. 7, 2002). We did not
include DHS in our review because of its unique status as a new agency as
of March 1, 2003. We included FEMA in our review since FEMA was a CFO Act
agency as of September 30, 2002, and because information on FEMA*s core
financial system will be useful as it is incorporated into DHS. 3 U. S.
General Accounting Office, Responses to Posthearing Questions Related to
GAO*s

Testimony on the U. S. Government*s Consolidated Financial Statements for
Fiscal Year 2002, GAO- 03- 848R (Washington, D. C.: June 16, 2003).

Page 2 GAO- 03- 903R Core Financial Systems

of this letter, which address the remaining question, are to identify the
core financial systems used at each of the CFO Act agencies as of
September 30, 2002, and the status of any agency plans to update core
financial systems. To do so, we used publicly available information and
confirmed this

information with the CFO Act agencies, but we did not validate or verify
the information obtained or provided. Further details on our scope and
methodology are provided on page 7.

Core Financial Systems Core financial systems, 4 as defined by the Joint
Financial Management Improvement Program (JFMIP), 5 include managing
general ledger, funding,

payments, receivables, and certain basic cost functions. The core
financial systems receive data from other financial and feeder systems,
such as acquisition, grant, and personnel systems, as well as from direct
user input,

and provide data for financial performance measurement and analysis and
for financial statement preparation.

Enclosures I and II present detailed information on agencies* core
financial systems including the software being used as of September 30,
2002, when the core financial systems were implemented, which agencies are
planning

to acquire new systems, and the target date for implementation of any new
systems. Enclosure I includes 20 CFO Act agencies that reported they
generally have in place a single core financial system for the agency and
its subcomponent agencies and bureaus. In certain cases, more than one
core financial system was used by the agencies. Enclosure II provides
information on 4 agencies, the Departments of Defense (DOD), Justice
(DOJ), the Treasury, and Health and Human Services (HHS), that reported
having multiple core financial systems. Each of these 4 CFO Act agencies
has 5 or more subcomponent agencies, which maintain separate core

financial systems. However, the systems included in enclosures I and II
may not include all of the JFMIP- defined functions of a core financial
system.

4 Joint Financial Management Improvement Program (JFMIP), Core Financial
Systems Requirements, SR- 02- 01 (Washington, D. C.: November 2001). 5
JFMIP is a joint and cooperative undertaking of the Office of Management
and Budget, the Department of the Treasury, the Office of Personnel
Management, and GAO, working with federal agencies to improve financial
management practices throughout the government.

Page 3 GAO- 03- 903R Core Financial Systems

The following summary characteristics highlight key data included in
enclosures I and II about the 24 CFO Act agencies* current and planned
core financial systems as of September 30, 2002.

Core Financial Systems Software

The 24 CFO Act agencies used a variety of core financial systems software.
Ten agencies used only commercial- off- the- shelf (COTS) software
packages as their core financial systems.  Two agencies, the Department
of Education, and the Small Business

Administration (SBA), exclusively used Oracle U. S. Federal Financials
software.

 One agency, the Office of Personnel Management (OPM), exclusively used
American Management Systems (AMS) Momentum software package.

 Four agencies, the Departments of Housing and Urban Development (HUD)
and Veterans Affairs (VA), the Nuclear Regulatory Commission (NRC), and
the Environmental Protection Agency (EPA), exclusively used AMS*s Federal
Financial System software package.

 Three agencies, the Department of Labor (DOL), the Federal Emergency
Management Agency (FEMA), and the Social Security Administration (SSA),
exclusively used other COTS packages.  Three agencies, the Department of
Energy (DOE), National Science

Foundation (NSF), and the National Aeronautics and Space Administration
(NASA), exclusively used custom software.

 Six agencies used a mix of 2 systems:  Five agencies had partially
implemented a new system in a number of

their respective bureaus as of September 30, 2002. These agencies were the
Agency for International Development (AID); Departments of Transportation
(DOT), State, and Agriculture (USDA); and the General Services
Administration (GSA).

 One agency, the Department of the Interior (DOI), used both a custom and
a COTS software product.

Page 4 GAO- 03- 903R Core Financial Systems

 Five agencies used a variety of core financial systems.  DOD reported
100 core financial systems 6 in use in its subcomponent

agencies and bureaus of its total systems inventory of 2,114 systems. 
DOJ*s subcomponent agencies used multiple core financial systems,

ranging from custom- built software, to some of the more common software
packages, such as those from AMS and SAP.  HHS*s main subcomponent
agencies used either the Arthur Young

Federal Success software package or custom software.  Treasury*s
subcomponent agencies and bureaus used a variety of

COTS packages, including AMS*s Federal Financial System and Momentum
products, SAP, and Peoplesoft Financials. One agency, the Bureau of the
Public Debt (BPD), cross- serviced several other agencies within Treasury
as well.

 The Department of Commerce*s (DOC) major subcomponent agencies used
RELTEK*s Federal Financial Management System* a modified COTS product.
DOC*s other agencies used either custom software or COTS products. Age of
the Core

Financial Systems The age of the core financial systems ranged from
systems implemented in fiscal year 2002 to those implemented more than 30
years ago.

 Five agencies* Education, NRC, SBA, OPM, and NSF* have fully implemented
new core financial systems since the beginning of fiscal year 2001.

 Four agencies* FEMA, HUD, SSA, and VA* have systems implemented from 2
to 10 years ago.

 Six agencies* DOC, AID, State, USDA, GSA, and DOT* were using both
legacy systems and new core financial systems implemented in parts of the
agencies as of September 30, 2002. For example, GSA used both a

6 This list was compiled from DOD*s *As Is Systems Inventory* as of
October 31, 2002.

Page 5 GAO- 03- 903R Core Financial Systems

custom system originally implemented in 1974 and AMS Momentum that it was
in the process of implementing as of September 30, 2002.  Five agencies*
NASA, DOE, DOI, DOL, and EPA* have systems that were implemented more than
10 years ago.  Four agencies* DOD, DOJ, HHS, and Treasury* used multiple
core financial systems that were implemented from the 1960s through 2001.
For example, DOD has some core financial systems that were originally
implemented in the 1960s and 1970s.

Software Selection Plans

Seventeen agencies 7 were planning to or were in the process of
implementing new core financial systems as of September 30, 2002.  Of
this total, 11 have selected the software product they plan to use:

 3 have selected AMS Momentum (AID, GSA, and State),  5 have selected
Oracle U. S. Federal Financials (DOE, DOT, VA, HHS,

and SSA),  1 has selected RELTEK Federal Financial Management System

(DOC),  1 has selected SAP (NASA), and  1 has selected AMS Federal
Financial System (USDA).

7 Treasury is among the agencies not planning to implement an agencywide
core financial system. However, several of its subcomponent agencies are
in the process of implementing core financial system software packages,
including the Internal Revenue Service and the Office of the Comptroller
of the Currency.

Page 6 GAO- 03- 903R Core Financial Systems

 The remaining 6 agencies have not reached the software selection phase
of their acquisition process (DOD, DOI, DOJ, DOL, EPA, and HUD).

 In DOD*s case, a complete business systems 8 modernization project 9 is
under way that proposes to revamp and integrate the systems used in DOD
entities as part of a DOD- wide transformation.  DOJ plans to award a
contract for the acquisition of a core software

package in July 2003. Target Implementation Dates

Target implementation dates for the 17 agencies planning to implement new
core financial systems generally ranged from fiscal year 2003 to fiscal
year 2008, though one agency had not yet selected a target implementation

date.  Three agencies plan to complete or have completed implementation
in

fiscal year 2003 (USDA, GSA, and NASA).  Three agencies plan to complete
their implementations in fiscal year 2004 (SSA, DOC, and DOT).

 Ten agencies have established target implementation dates ranging from 2
to 6 years in the future (AID, DOJ, DOL, HHS, EPA, HUD, VA, DOI, State,
and DOE).

 One agency has not yet determined its target date for full
implementation (DOD).

8 Business systems include those that are used to support civilian
personnel, finance, health, logistics, military personnel, procurement,
and transportation. 9 See U. S. General Accounting Office, DOD Financial
Management: Important Steps Underway But Reform Will Require a Long- term
Commitment, GAO- 02- 784T (Washington, D. C.: June 4, 2002); DOD Business
Systems Modernization: Continued Investment in Key

Accounting Systems Needs to be Justified, GAO- 03- 465 (Washington, D. C.:
Mar. 28, 2003);

DOD Business Systems Modernization: Longstanding Management and Oversight
Weaknesses Continue to Put Investments at Risk, GAO- 03- 553T (Washington,
D. C.: Mar. 31, 2003).

Page 7 GAO- 03- 903R Core Financial Systems

Life Cycle Phase These 17 agencies were in different phases 10 of the
process to implement a new core financial system as of September 30, 2002.
 Five agencies* HUD 11 , DOI, DOL, DOD, and EPA* were in the business
modeling and requirements phase.

 One agency* DOJ* was in the analysis and design phase.  Three agencies
were in the development phase: State which plans to

implement an agencywide COTS product, DOE, which plans to implement a
COTS- based product in October 2004, and VA, whose strategy includes a
phased- in approach beginning in October 2003.

 Two agencies were in the testing phase: AID, which plans to implement
the COTS software currently used domestically in its overseas regional
offices, and HHS, which is using a phased rollout strategy with its
subcomponent agencies.

 Six agencies* USDA, DOC, SSA, DOT, GSA, and NASA* were in the

deployment phase as of September 30, 2002. To identify and compile the
status of CFO Act agencies* core financial systems, we reviewed publicly
available information, including fiscal year 2002 performance and
accountability reports for the CFO Act agencies, related reports by those
agencies* Inspectors General (IG), as well as any reports that we issued
on this matter. We reviewed other publicly available

information, including agency, Office of Management and Budget (OMB), and
JFMIP Web sites to identify information on current core financial systems
and planned implementations. We also reviewed related OMB circulars,
including A- 127, 12 and JFMIP systems requirements for core

financial systems and its Framework for Federal Financial Management
Systems. 13 We shared the information we gathered on agencies* current 10
See definition of life cycle phases in endnote *a* of enclosure I. 11
According to HUD, this phase will begin in July 2003. 12 OMB Circular A-
127, Financial Management Systems, as revised by Transmittal Memorandum
No. 2, June 10, 1999. 13 JFMIP, Framework for Federal Financial Management
Systems, FFMSR- 0 (Washington, D. C.: January 1995).

Page 8 GAO- 03- 903R Core Financial Systems

and planned systems with the agencies and obtained confirmations,
corrections, or additional facts, but we did not independently validate or
verify the information obtained or provided. We conducted our work from
April to June 2003 in Washington, D. C.

We are sending copies of this letter to the Ranking Minority Member,
Subcommittee on Government Efficiency and Financial Management, House
Committee on Government Reform and the Chairman and Ranking

Minority Member, Subcommittee on Financial Management, the Budget and
International Security, Senate Committee on Governmental Affairs. Copies
will be made available to others upon request. This letter will also

be available at no charge on the GAO Web site at http:// www. gao. gov. If
you have any questions about this letter, please contact me at (202) 512-
9450 or thompsons@ gao. gov or Kay Daly at (202) 512- 9312 or dalykl@ gao.
gov. Key contributors to this letter were Adrien Atwood and Debra David.
We look forward to working with you and your staff on

related financial management systems issues. Sincerely yours,

Sally E. Thompson Director, Financial Management

and Assurance Enclosures I and II

Page 9 GAO- 03- 903R Core Financial Systems

Page 10 GAO- 03- 903R Core Financial Systems

Enclosure I

Current and Planned Core Financial Systems at 20 CFO Act Agencies Core
financial systems as of September 30, 2002

Agency Name Vendor and software name

COTS / modified COTS / custom Implementation date

Agency for International Development

Mission Accounting and Control System ( MACS) used overseas / Phoenix

MACS- NA/ Phoenix- AMS Momentum MACS- Custom /

Phoenix- COTS MACS- June 1982/ Phoenix- December 2000

Department of Commerce Commerce Administrative Management System ( CAMS) c
CAMS- Savantage

Solutions, Inc ( Formerly RELTEK) Federal Financial Management System (
FFMS) / Various ( see endnote c )

CAMS- Modified COTS/ Various ( see endnote c )

Various ( see endnote c ) Department of Energy Departmental Integrated

Standardized Core Accounting System ( DISCAS)

NA Custom April 1986 Department of the Interior Federal Financial System (
FFS) for

7 bureaus/ offices and ABACIS for the other 2 bureaus

AMS Federal Financial System / ABACIS- NA FFS- Modified COTS / ABACIS-
Custom FFS- 1992 / ABACIS

early 1980s Department of Labor Department of Labor Accounting and Related
Systems ( DOLAR$ ) Keane Federal Success Modified COTS October 1989
Deparmentt of Transportation Departmental Accounting and

Financial Information System ( DAFIS) / Delphi

DAFIS- NA / Delphi Oracle U. S. Federal Financials

DAFIS - Custom/ Delphi - Modified COTS

1982 Department of Education Financial Management Systems

Software ( FMSS) Oracle U. S. Federal Financials COTS January 2002
Environmental Protection Agency

Integrated Financial Management System ( IFMS) AMS Federal Financial
System Modified COTS 1988

Federal Emergency Management Agency

Integrated Financial Management Information System ( IFMIS) Digital
Systems Group IFMIS COTS October 1995

Enclosure I Page 11 GAO- 03- 903R Core Financial Systems

Planned core financial systems after September 30, 2002 Plans to acquire
new system? Name of

project/ system Vendor of

new system and software Planning start date

Target full implementation date Life cycle phase a Comments * mixed

systems

Yes AID plans to replace MACS with Phoenix

AMS Momentum July 2003 October 2005 b Testing phase

Yes, ongoing CAMS RELTEK Federal Financial Management

System d 1994 October 2003 Deployment phase

Yes I- MANAGE Standard Accounting

System ( STARS) Oracle U. S. Federal

Financials March 1999 October 2004 Development

phase I- MANAGE program will integrate financials with

human resources, budget formulation/ execution, payroll, travel and
procurement. Yes Financial and Business Management

System ( FBMS) To be

determined 2004 2008 Business modeling and requirements phase

FBMS project will support budget formulation, core financial, acquisition,
travel,

personal property/ fleet management, real property, financial assistance,
and enterprise management information functions. Yes To be determined To
be

determined 2 nd quarter of FY 2003 October 2006 Business modeling and
requirements phase

DOL plans to implement a new managerial cost accounting system. Yes,
ongoing Delphi Oracle U. S. Federal

Financials 1997 October 2003 Deployment phase The Federal Aviation
Administration is also in the

process of implementing a labor distribution/ cost accounting system.

No plans to acquire NA NA NA NA NA Yes Financial

Replacement System ( FinRS)

To be determined October 2002 FY 2007 Business modeling and requirements

phase EPA also plans to replace its

EPAYS and CPARS payroll systems and its MARS reporting system in FY 2003.
No plans to acquire NA NA NA NA NA As of March 2003, FEMA is

part of the new Department of Homeland Security.

Enclosure I Page 12 GAO- 03- 903R Core Financial Systems

General Services Administration National Electronic Accounting and

Reporting ( NEAR) / Pegasys NEAR- NA / Pegasys - AMS Momentum NEAR- Custom
/ Pegasys- COTS e NEAR- 1974 / Pegasys

Phase I- June 2000 Department of Housing and Urban Development

HUD' s Central Accounting Program System ( HUDCAPS) AMS Federal Financial
System Modified COTS October 1998 for

implementation as departmental general ledger

National Aeronautics and Space Administration

General Ledger Accounting System ( GLAS) g NA Custom 1970s

Nuclear Regulatory Commission

Federal Financial System ( FFS) AMS Federal Financial System i COTS May
2002 National Science Foundation Financial Accounting System NA Custom
April 2001 Office of Personnel Management

Government Financial Information System ( GFIS) AMS Momentum COTS August
2002

Small Business Administration Joint Accounting and Administrative
Management

System ( JAAMS) Oracle U. S. Federal Financials Modified COTS October 2001

Social Security Administration Financial Accounting System

( FACTS) Keane Federal Success Modified COTS October 1993 Department of
State Central Financial Management

System ( CFMS) / Regional Financial Management System ( RFMS) k

CFMS AMS Federal Financial System/ RFMS - AMS Momentum

CFMS COTS / / RFMS - Modified COTS l

CFMS - 1991 Department of Agriculture Central Accounting System ( CAS) /

Foundation Financial Information System ( FFIS)

CAS NA / / FFIS AMS Federal Financial System CAS - Custom / FFIS-

Modified COTS CAS- 1976

( Continued From Previous Page)

Core financial systems as of September 30, 2002 Agency Name Vendor and
software

name COTS /

modified COTS / custom Implementation date

Enclosure I Page 13 GAO- 03- 903R Core Financial Systems

Yes, ongoing Pegasys AMS Momentum May 1998 October 2002 Deployment phase
Phase II includes the

implementation of full accounts receivable, asset management and cost
allocation by October 2004. Pegasys was the official core financial system
at the end of October 2002. Yes HUD Integrated

Financial Management Improvement Project ( HIFMIP)

To be determined July 2003 March 2007 Business modeling and requirements

phase scheduled to begin in July 2003

Legacy insurance systems at the Federal Housing Administration ( FHA) to
be integrated by December 2006. f Yes Integrated

Financial Management Program ( IFMP)

SAP R/ 3 FY 2000 June 2003 Deployment phase h No plans to acquire NA NA NA
NA NA NRC implemented a COTS-

based cost accounting system in November 2002. j No plans to acquire NA NA
NA NA NA See endnote. j No plans to acquire NA NA NA NA NA A cost
allocation module will be added to GFIS with the

first phase planned for implementation in September 2003. No plans to
acquire NA NA NA NA NA

Yes Social Security Online Accounting and

Reporting System

Oracle U. S. Federal Financials

June 2001 j October 2003 Deployment phase Yes, ongoing Global Financial
Management

System ( GFMS) AMS

Momentum June 1998 GFMS Domestic FY 2005, , Overseas FY

2006 Development

phase Yes, ongoing FFIS AMS Federal

Financial System NR October 2002 Deployment phase Beginning in December
2003,

agency will start process for next core system implementation.

Planned core financial systems after September 30, 2002 Plans to acquire
new system? Name of

project/ system Vendor of

new system and software Planning start date

Target full implementation date Life cycle phase a Comments * mixed

systems

Enclosure I Page 14 GAO- 03- 903R Core Financial Systems

Department of Veterans Affairs Financial Management System AMS Federal
Financial System Modified COTS September 1995

( Continued From Previous Page)

Core financial systems as of September 30, 2002 Agency Name Vendor and
software

name COTS /

modified COTS / custom Implementation date

Enclosure I Page 15 GAO- 03- 903R Core Financial Systems

Legend COTS * Commercial- off- the- shelf NA * Not applicable NR * No
response

Source: GAO compiled. a To help categorize the current status of agencies*
systems implementation, we used the following

system development life cycle phases: (1) Business modeling and
requirements includes developing complete systems requirements,
establishing the *as is* model of the business processes, and meeting with
stakeholders. (2) Analysis and design addresses transforming the systems
requirements into a design of the "to be" system. This phase would also
include evaluation of vendor proposals and vendor selection. (3)
Development involves the development and modification of the system
software. (4) Testing covers verifying that all requirements have been
correctly developed and tested and

ensuring all identified defects have been documented and corrected. (5)
Deployment includes training end users, converting data, putting the
software into service, verifying that all requirements have been correctly
implemented, and planning for the operations and support phase of software
components. (6)

Operations and support involves the monitoring of product integrity and
ensuring the ongoing completeness and correctness of the system. b AID and
the State Department have agreed to integrate their separate Momentum
applications into

one application with two databases with full implementation expected in
October 2005 following deployment of Phoenix to AID*s overseas offices. c
The agencies and bureaus of the Department of Commerce, which had not
implemented CAMS as of September 30, 2002, used other core financial
systems, including custom systems (implemented in

the 1980s), AMS Momentum (implemented in 2002) and cross- servicing with
the Department of the Interior. d Three Commerce bureaus will not
implement CAMS, including the U. S. Patent and Trademark Office,

the International Trade Administration, and the National Technical
Information Service. e According to GSA, all enhancements to the product
were added to the baseline product by the vendor. f Peoplesoft general
ledger module implemented at FHA in October 2002.

g NASA has 9 centers, its headquarters offices and the Jet Propulsion
Laboratory, each of which had its own custom- built financial systems
until each center*s conversion to the new core financial system in FY
2003.

h See U. S. General Accounting Office, Business Modernization:
Improvements Needed in Management of NASA*s Integrated Financial
Management Program, GAO- 03- 507 (Washington, D. C.: Apr. 30, 2003). i
NRC's service provider for FFS is the Department of the Interior's
National Business Center.

j This agency will adopt the Department of the Interior*s personnel/
payroll services in FY 2004. Yes Core Financial

and Logistics System (Core FLS)

Oracle U. S. Federal Financials

June 1999 March 2006 Development phase VA has also selected the

software to be used in the logistics module of the core financial system.

Planned core financial systems after September 30, 2002 Plans to acquire
new system? Name of

project/ system Vendor of

new system and software Planning start date

Target full implementation date Life cycle phase a Comments * mixed

systems

Enclosure I Page 16 GAO- 03- 903R Core Financial Systems

k The solicitation for the software purchase was released in June 2001. l
CFMS accounts for State*s domestic financial activity, while RFMS is for
overseas activity. m State uses a custom disbursement module in its
regional financial management system.

Enclosure I Page 17 GAO- 03- 903R Core Financial Systems

Page 18 GAO- 03- 903R Core Financial Systems

Enclosure II

Current and Planned Core Financial Systems at 4 CFO Act Agencies Core
financial systems as of September 30, 2002

Agency Subagency Name Vendor and software name

COTS / modified COTS / custom Implementation date

Department of Defense 100 core systems b Various Various 1960s, 1970s,
1980s, and 1990s

Department of Justice c DOJ No consolidated core financial system NA NA NA
Department of Justice BOP Financial Management

Information System (FMIS2) NA Custom October 1999

Department of Justice OJP Integrated Financial Management Information
System (IFMIS)

Digital Systems Group- Financial Management System Software

Modified COTS December 1998 Department of Justice INS Financial Accounting
Control System

(FACS)/ Federal Financial Management System (FFMS)

FACS * NA/ Savantage Solutions, Inc. (formerly RELTEK) -FFMS

FACS * Cust om /FFMS * Modified COTS

October 1997 Department of Justice FPI Millennium System SAP Modified COTS
May 2000 Department of Justice DEA Federal Financial System (FFS) Cross-
serviced by DOI Modified COTS October 1998 Department of Justice FBI
Financial Management

System (FMS) Geac Computer Corporation

Limited, Geac Enterprise Server E Series

Modified COTS October 1985 Department of Justice OBDs FMIS2 NA Custom
December 2002

Enclosure II Page 19 GAO- 03- 903R Core Financial Systems

Planned core financial systems after September 30, 2002 Plans to acquire
new system?

Name of project / system

Vendor of newsystem and software Planning

start date Target full

implementation date Life cycle phase a Comments - mixed

systems

Yes Not yet decided To be determined Varies To be determined Business
modeling and requirements

phase Implementation of a core financial system( s) for

DOD is a long- term effort due to the significant number of systems and
complexity of the Department. Yes United

Financial Management System Project

(UFMS) To be

determined April 2002 October 2007 Analysis and design phase COTS award
projected * July 2003. Implementation and integration contract to follow.
UFMS includes

integrated procurement & e- travel solutions.

Part of UFMS Implementation UFMS To be

determined October 2004 October 2006 Analysis and design phase

Part of UFMS Implementation UFMS To be

determined October 2004 October 2006 Analysis and design phase

NA NA NA NA NA NA In March 2003, INS was transferred to the Department of
Homeland Security.

No plans to acquire NA NA NA NA NA Current COTS satisfies

commercial/ manufacturing business requirements unique to FPI. FPI is not
included in UFMS Project.

Part of UFMS Implementation UFMS To be

determined October 2003 October 2005 Analysis and design phase

Part of UFMS Implementation UFMS To be

determined August 2002 October 2004 Analysis and design phase

Part of UFMS Implementation UFMS To be

determined October 2005 October 2007 Analysis and design phase Also
supports the Working

Capital Fund and Asset Forfeiture Fund/ Seized Asset Deposit Fund

reporting entities.

Enclosure II Page 20 GAO- 03- 903R Core Financial Systems

Department of Justice USMS Standardized Tracking Accounting and Reporting
System (STARS) at headquarters, Financial Management System

(FMS) used by district offices

STARS -ieFARS ACS Government Solutions Group

/FMS * NA STARS *Modified

COTS/ FMS * Custom October 1997 Department of Health and Human Services d

HHS NA NA NA NA Department of Health and Human Services

PSC CORE Arthur Young* Federal Success Modified COTS 1992

Department of Health and Human Services

FDA General Ledger Accounting System (GLAS)

NA Custom FY1968- FY1969 Department of Health and Human Services

CDC Total On- Line Processing System (TOPS)

Arthur Young* Federal Success Modified COTS 1991

Department of Health and Human Services

NIH Central Accounting System (CAS) NA Custom Mid- 1970s Department of
Health and Human Services

CMS Financial Accounting and Control System (FACS)

Arthur Young* Federal Success Modified COTS 1980s

Department of the Treasury e Treasury No consolidated core financial
system f NA NA NA

Department of the Treasury BPD Federal Financial System (FFS) American

Management Systems (AMS) Federal Financial System (FFS)

COTS October 1994

(Continued From Previous Page)

Core financial systems as of September 30, 2002 Agency Subagency Name
Vendor and

software name COTS /

modified COTS / custom Implementation date

Enclosure II Page 21 GAO- 03- 903R Core Financial Systems

Part of UFMS Implementation UFMS To be

determined October 2003 October 2005 Analysis and design phase

Yes Unified Financial Management System (UFMS)

Oracle U. S. Federal Financials

July 2001 April 2007 Testing phase Part of the UFMS implementation

UFMS Oracle U. S. Federal Financials

January 2004 April 2007 Development phase

Part of the UFMS implementation

Financial Enterprise Solutions (FES)

Oracle U. S. Federal Financials

July 2003 May 2005 Development phase FES is the FDA- named

project that is part of the full UFMS implementation.

Part of the UFMS implementation

UFMS Oracle U. S. Federal Financials

October 2002 October 2004 Development

phase Part of the UFMS implementation

NIH*s Businessand Research Support System (NBRSS)

Oracle U. S. Federal Financials

1999 October 2002 Deployment phase NBRSS is the NIH- named project that is
part of the full UFMS implementation.

Part of the UFMS implementation

Healthcare Integrated General Ledger Accounting System (HIGLAS)

Oracle U. S. Federal Financials

2000 September 2007 Development phase HIGLAS is a second

component of UFMS. HIGLAS is a separate core system from the one used by
other subagencies.

No plans to acquire NA NA NA NA NA

Yes Oracle U. S. Federal Financials Oracle U. S. Federal

Financials NR October 2002 Deployment phase BPD implemented the

Compusearch acquisition application *Prism* in January 2002

Planned core financial systems after September 30, 2002 Plans to acquire
new system?

Name of project / system

Vendor of newsystem and software Planning

start date Target full

implementation date Life cycle phase a Comments - mixed

systems

Enclosure II Page 22 GAO- 03- 903R Core Financial Systems

Department of the Treasury ATF Financial Resources

Desktop (FRED) AMS Momentum Modified COTS October 1999

Department of the Treasury BEP BEP Management

Information System (BEPMIS)

SSA Global Technologies CAS

COTS 1984 Department of the Treasury USCS FFS and SAP R/ 3

Phase I AMS FFS /SAP R/ 3 FFS -Modified COTS/ SAP Modified

COTS FFS - October 1992

/SAP - April 2002 Department of the Treasury DO FFS AMS FFS COTS BPD began
crossservicing DO in February 2001

Department of the Treasury FinCEN FFS/ SAP R/ 3 Phase I AMS FFS /

SAP R/ 3 FFS -Modified COTS/ SAP Modified

COTS FinCEN is crossserviced

by USCS Department of the Treasury IRS Automated Financial Systems (AFS)
AMS FFS Modified COTS October 1992

(Continued From Previous Page)

Core financial systems as of September 30, 2002 Agency Subagency Name
Vendor and

software name COTS /

modified COTS / custom Implementation date

Enclosure II Page 23 GAO- 03- 903R Core Financial Systems

NA This bureau was transferred to the Department of Justice in 2003.

No plans to acquire NA NA NA NA NA

Yes, ongoing SAP R/ 3 Release II and III

SAP R/ 3 1995 Release II is scheduled for implementation in October 2003
and will include procurement and

asset management capabilities.

The scheduled implementation date for Release III is October 2004, but
this date is subject to review by the Department of

Homeland Security (DHS).

Deployment phase This bureau was transferred to DHS.

An accounts receivable subsidiary ledger that will support the Automated
Commercial Environment (ACE) is scheduled for implementation in March
2004, but this date is subject to review by DHS.

Yes Oracle U. S. Federal Financials Oracle U. S. Federal

Financials October

2003 BPD will begin cross- servicing DO using Oracle

in October 2003. Testing phase BPD will begin cross

servicing DO to use the Compusearch acquisition application *Prism* in
October 2003. No plans to acquire NA NA NA NA NA USCS staff use FFS and

SAP R/ 3 to perform FinCEN*s financial management activities.

Yes Integrated Financial System

SAP R/ 3 October 2000 Release 1:

October 2003 Testing phase Release 1 will include core financial
functionality. Release 2, to be implemented in August 2005, will include
asset management functionality.

Planned core financial systems after September 30, 2002 Plans to acquire
new system?

Name of project / system

Vendor of newsystem and software Planning

start date Target full

implementation date Life cycle phase a Comments - mixed

systems

Enclosure II Page 24 GAO- 03- 903R Core Financial Systems

Department of the Treasury FMS FFS AMS FFS COTS BPD began crossservicing
FMS in June 1999

Department of the Treasury OTS FFS AMS FFS COTS BPD began crossservicing
OTS in October 2002

Department of the Treasury USSS Financial Management

and Accounting System (FMAS) Keane Federal

Success Modified COTS October 1988

(Continued From Previous Page)

Core financial systems as of September 30, 2002 Agency Subagency Name
Vendor and

software name COTS /

modified COTS / custom Implementation date

Enclosure II Page 25 GAO- 03- 903R Core Financial Systems

Legend COTS - Commercial- off- the- shelf NA - Not applicable NR - No
response

Source: GAO compiled. a To help categorize the current status of agencies*
systems implementation, we used the following

system development lifecycle phases: (1) Business modeling and
requirements includes developing complete systems requirements,
establishing the *as- is* model of the business processes and meeting with
stakeholders. (2) Analysis and design addresses transforming the systems
requirements into a design of the "to- be" system. This phase would also
include evaluation of vendor proposals and vendor selection. (3)
Development involves the development and modification of the system
software. (4) Testing covers verifying that all requirements have been
correctly developed and tested and

ensuring all identified defects have been documented and corrected. (5)
Deployment includes training end users, converting data, putting the
software into service, verifying that all requirements have been correctly
implemented and planning for the operations and support phase of software
components. (6) Operations and support involves the monitoring of product
integrity and ensuring the ongoing

completeness and correctness of system. b DOD is still reviewing and
analyzing its systems inventory as part of its business systems

modernization and therefore, this list may or may not be complete. This
list was compiled from DOD*s *As Is Systems Inventory* as of October 31,
2002. c Department of Justice: BOP: Bureau of Prisons, OJP: Office of
Justice Programs, INS: Immigration

and Naturalization Service, FPI: Federal Prisons Industries, Inc, DEA:
Drug Enforcement Agency, FBI: Federal Bureau of Investigation, OBDs:
Offices, Boards and Divisions, USMS: United States Marshals Service. d
Department of Health and Human Services: PSC: Program Support Center, FDA:
Food and Drug

Administration, CDC: Centers for Disease Control and Prevention, NIH:
National Institutes of Health, CMS: Centers for Medicare and Medicaid
Services. Yes Oracle U. S. Federal Financials

Oracle U. S. Federal Financials (crossserviced

by BPD) February 2003 BPD will begin

cross- servicing FMS in October 2003

Testing phase Yes Oracle U. S. Federal Financials

Oracle U. S. Federal Financials (crossserviced

by BPD) NR BPD will begin

cross- servicing OTS in October 2004

Business modeling and requirements phase

Yes Enterprise Financial Management System (EFMS)

Oracle U. S. Federal Financials

August 2001 April 2004 Development

phase This bureau was transferred to DHS in

March 2003.

Planned core financial systems after September 30, 2002 Plans to acquire
new system?

Name of project / system

Vendor of newsystem and software Planning

start date Target full

implementation date Life cycle phase a Comments - mixed

systems

Enclosure II Page 26 GAO- 03- 903R Core Financial Systems

e Department of Treasury: BPD: Bureau of the Public Debt, ATF: Alcohol,
Tobacco and Firearms, BEP: Bureau of Engraving and Printing, USCS: United
States Customs Service, DO: Departmental Offices, FinCEN: Financial Crimes
Enforcement Network, IRS: Internal Revenue Service, FMS: Financial

Management Service, OTS: Office of Thrift Supervision, USSS: United States
Secret Service. Treasury*s other bureaus, not included above, used a
variety of COTS packages. f Although Treasury does not have an agencywide
core financial system, it does utilize automated tools and a central data
warehouse for analysis and reporting.

(198191)

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