Implementing GFEBS in Michigan

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

2. Mission, Vision & Values Values: Loyalty Duty Personal Courage Selfless Service Honor Integrity Respect Integrity First Service Before Self Excellence In All We Do Mission: 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. 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.

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

4. Classified State Employees

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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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…

19. 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)

20. 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

21. 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?