TSA Business Process Modernization Establishing an Effective Framework defining excellence in government

1. Office of Financial Management Jeffrey Bobich, Director James McKay, Deputy Director TSA Business Process Modernization Establishing an Effective Frameworkdefining excellence in government 16th Annual VA Peninsula and Richmond Chapters' PDC "Navigating Through Uncertainty” Williamsburg, Virginia December 1-2, 2011 v.1.2

2. Business Process Modernization – Why Now? • We are launching TSA Business Process Modernization: • The Business Process Modernization (BPM) project will align, streamline and document TSA program, administrative and financial management operations to support the President’s recent Executive Order, “Delivering an Efficient, Effective and Accountable Government” • The BPM project also supports the goals of Secretary Napolitano and Administrator Pistole to create efficiencies and to develop a high performance organization • The BPM project will bring about improved agency-wide financial management processes and ensure a sustained clean audit opinion, increased transparency, accountability, and provide for streamlined and compliant operations. In addition, the project will produce TSA’s functional and technical requirements for the future DHS/USCG financial system solution 2

3. What is TSA Business Process Modernization? The alignment of TSA’s people, processes and systems for streamlined program and financial operations 3

4. General Control Environment (GCE) 4 4

5. Project Scope General Control Environment (GCE) 5

6. General Control Environment Maintain Organizational Integrity & Values 6

7. General Control Environment Maintain Effective Organization Design & Processes

8. General Control Environment Maintain Effective Organizational Communications

9. How Will We Achieve this Vision? Use a solid BPM approach Establish an effective PMO Align business processes with the financial system to fully leverage functionality Business Process Modernization – Five Phase Approach Phase I Phase V Phase IV Phase II Phase III Document the “As -Is” Process Define the “To-Be” Process Implement Recommendations Deliver User Requirements Perform a Gap Analysis Document streamlining options for a compliant, and practical long-term solution Assist in preparing for the “To-Be” solution (e.g., process changes and ISOPs updates) Document the current environment -People -Processes -Systems Document change actions to get from the “As-Is” to the “To-Be” model Provide the conceptual framework for the future 9

10. Standards and Templates “A Well-defined Business Cycle” • Process Flowcharts and Narratives • Process Ownership • Internal Controls • Control Ownership • Systems and Interfaces • Human Capital • Documentation Supporting Transactions • Laws, Regulations, Standards, Desk-top Procedures • Posting Logic – U.S. Standard General Ledger and Common Government-wide • Accounting Classification • Evidential Matter: Documentation Created from Business Processes and Transactions • Retained for Future Audit • Functional/Technical Requirements for Optimized Financial System 10

11. “Well-defined Internal Controls” • Key Control Points • Objectives • Risks • Frequency • Automated and Manual • Preventive and Detective • Management and Financial Statement Assertions • Control Ownership 11

12. BPM Concept of Operations • Establishes the Program Management Office (PMO) • Provides the governance structure for the PMO, Stewardship Committee, and Business Cycle Teams (BCTs) • Describes the BPM Project scope and output in terms of an effective and efficient End State • Provides consistency in documentation with standards and templates • Requires performance measurement metrics for notional savings • Utilizes a robust Change Management Plan that includes: • Communications Planning • Stakeholder Analysis • Risk Register • Change Action Tracking System • Training Needs • Requirements Traceability 12

13. Governance -- Charters 12

14. BPM Project Organizational Relationships TSA Chief Financial Officer (CFO) Stewardship Committee Office of Financial Management Program Management Office Business Cycle Team Business Cycle Team Business Cycle Team 13

15. Business Cycle Team • Functional Member • (Federal Employee) • Provides business process subject matter expertise • Financial Member • (Federal Employee) • Provides financial services subject matter expertise PMO Business Process and Systems Leads Direct, review, and approve the work • Business • Process Lead • Team NA-DJ • (Contractor) • Facilitates and performs the work Example: Acquisition Policy Director Example: Accounting Branch Manager • Business Process Support • (Contractor) • Provides documentation support 11 15

16. Program Management Office Members The PMO manages day-to-day operations • Governed by Charter • Develop, Manage and Deliver • Concept of Operations • Project Plan • Executive Stakeholder Briefing • Change Management / Communications Plan • Documented business cycles and user requirements 16

17. Stewardship Committee Members • Committee members span TSA organizations • Ex-Officio: TSA business partners who provide expert input and advice and who share an interest in the outcome of the BPM project • The Committee will meet at least twice per year 17

18. How the Stewardship Committee Ensures TSA BPM Success Provides Executive Level Support for the PMO • Provide resources and points of contact to support Business Cycle Teams (BCTs) • Provide names of functional or financial members to participate on the first two BCTs • Help engage BMOs and maintain participation by promoting the BPM project • Facilitate access to organizational components to help the PMO document the “As-Is” business processes • Assist the PMO by providing access and insight to functional and financial processes and systems • Provide executive vetting and support of project output to help the PMO document the “To-Be” business processes • Provide evaluation and facilitation to organizational changes • Ensure process improvements are implemented quickly • Facilitate organizational changes to reach desired end state • Help institutionalize process improvements throughout the organization • Encourage “The Will to Change the Old Way of Doing Business!” 18

19. BPM Project Where we have been: • Establish the PMO - Completed! • Develop the PMO Concept of Operations - Completed! • Kickoff the project with the TSA CFO - Completed! • Brief the Administrator’s Efficiency Group - Completed! • Brief the Senior Leadership Team - Completed! • Brief the Business Management Office Council - Completed! • Establish and brief the Stewardship Committee - Completed! • Two Pilot Projects Underway: • Record to Report (R2R) Monthly, Quarterly, Year-end Closing • Procure to Pay (P2P): Intra-governmental Payment and Collection (IPAC) Where we are headed: • PMO Outreach for Business Process Background Information • Establish the Business Cycle Teams • Begin Documenting “Procure to Pay” (P2P) and “Budget to Execute” (B2E) Business Cycles 19

20. BPM Project Timelines 2011 2012 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug • Establish Governance Pilot P2P A2R P2P B2E General Control Environment Pilot R2R 20 19

21. Questions?