Air Force Financial Operations

1. Air Force Financial Operations SAF/FMP April 2013

2. What Congressand the Public See • Afghanistan Fraud, Waste and Abuse • New $34M 64K Sq Ft HQ never used • $60B in US funds lost - $1 of $6 wasted • DoD Lavish Spending • $1.8 M Las Vegas “museum of neon signs” • $650K to digitalize photos, t-shirts & concert tickets belonging to Grateful Dead • Conferences & TDY • Apr 2012: GSA spent $800K on 2010 Western Range Conference • $44K breakfast, tuxedo rentals and $6K on commemorative coins • Fall 2012: VA cited for improper spending at two HR conferences • $4M and $50K on two training videos • DoD spent $224M on conferences in FY10 and $26M in FY12

3. *%#& Congress – Fix it • Landmark Legislation: • The Chief Financial Officers Act of 1990: Created CFO position within cabinet level agencies, directed OMB to prepare a 5-year Federal Financial Management Improvement Plan and established pilots for agency financial statement audits • The Government Management Reform Act of 1994: Expanded CFO Act of 1990 by requiring annual auditable financial statements • The Federal Financial Management Improvement Act of 1996: Required agencies to implement compliant financial systems • Refined Guidance: • NDAA FY02: Directs DoDIG to stop auditing financial statements until management asserts they are ready for audit • NDAA FY05: Directs 1st Financial Improvement and Audit Readiness (FIAR) Plan • NDAA FY10: Legislates DoD’s established audit readiness dates • NDAA FY13: Legislates SBR by SECDEF goal of September 30, 2014 • NDAA FY14: Legislates audit of FY18 financial statements NLT March 31, 2019 • Continued Congressional interest FY02 NDAA FY10 NDAA 1990 CFOA 1994 GMRA 1996 FFMIA FY05 NDAA FY14 NDAA FY13 NDAA

4. FIAR - a Matter of Trust, Not Money

5. Air Force Audit Status • Biggest challenge -- Multiple financial feeder systems and current 1960s core accounting system does not meet federal requirement to use the USSGL at the detailed transaction level • Performing end-to-end business analysis  focusing on processes and systems, addressing FIAR deal breakers in a systematic fashion • Focus on specific IT system controls • Partnering with DFAS to develop and implement a tool to facilitate reconciliation between systems • Engaged with partners to monitor their progress • Focus on Statement of Budgetary Activity vice Statement of Budgetary Resources  deliver benefits to Airmen now • Learn from success and failure

6. Air Force FIAR Timeline – Assertions – Sustainment – IPA Examination – Sustain until SBA

7. Air Force FIAR Timeline – Sustainment – Assertions – IPA Examination

8. JOPES FMIP IPPS Org Server GFMDI Org Server GSORTS DRRS Org Server Organization GCSS-AF DCAPES Data Source Exposes data to SORTS DRS MPES MilPDS How we do ‘Integration’ today What is the AF problem with Information Technology? • Tangled web of application interactions • Duplicate copies of data • Inconsistent results equals Operational uncertainty Force Management example Too many systems, too hard to operate, too expensive to maintain

9. DEAMS Today

10. DEAMS Scorecard “The program has made significant progress” – AFOTEC Exec Summary

11. BACKUP

12. DEAMS Scorecard

13. DEAMS Scorecard

14. DEAMS Scorecard “The program has made significant progress” – AFOTEC Exec Summary