Evolving Interdependency Between Acquisition and Finance

1. Evolving Interdependency Between Acquisition and Finance Association of Government Accountants May 2008

2. David OstermeyerChief Financial OfficerMaureen ShauketChief Acquisition Officer and Director of the Office of Acquisition and Assistance (OAA) Association of Government Accountants May 2008

3. Agenda • USAID – Telling Our Story • Why the Evolving Interdependency Between Acquisitions and Finance? • What’s the Impact? • Next Steps • Questions

4. What is USAID? • The U.S. Agency for International Development (USAID) is an independent agency that provides economic, development, and humanitarian assistance around the world in support of the foreign policy goals of the United States. • Established November 3, 1961 by President John F. Kennedy.

5. Telling Our Story Support to 100+ Developing Countries Providing Humanitarian Relief 1,100+ US Civil Service Employees in Washington Transformational Development 1,000+ Foreign Service Officers Addressing Transnational Problems 4,900+ Foreign Service Nationals Supporting US Geostrategic Interest $9.3B FY 2007 Budget Strengthening Fragile States

6. CFO Mission • To establish and maintain sound financial management practices, which advance USAID's mission, goals and objectives. CFO Responsibilities • Financial Management Systems, Financial Policy, Cash Management and Payment, Payroll, Central Accounting, Reporting, and Audit/Performance/Compliance CFO Staff • 2 Deputy CFOs (1 Domestic and 1 Overseas) • 7 Divisions • 52 Mission Controllers worldwide

7. Office of Acquisitions and Assistance OAA Responsibilities • Negotiate and award the contracts, grants, cooperative agreements and interagency agreements that cover the provision of goods and services which is critical to the delivery of the Agency’s portfolio of development and humanitarian assistance. • Award more than $7 billion annually in acquisition and assistance awards, operating in more than 70 countries with assistance provided to over 120 countries. OAA Staff • 3 Deputy Directors (2 Civil Service and 1 Foreign Service) • Over 150 personnel in Washington, including 93 Contracts Specialists • Over 80 Contracting Officers worldwide and their staffs

8. Phoenix: USAID’s Financial Management System USAID initiated the Phoenix project to implement a single, Agency-wide integrated core financial system. Phoenix is: • CGI's Momentum Financials™ COTS software. • Configured to address requirements of both headquarters and USAID’s missions. • Replaced the New Management System (NMS) and Mission Accounting and Control System (MACS) legacy financial management systems operating within the Agency. • Implemented Phoenix in USAID/Washington in December 2000. • Completed deployment to 52 Controller's missions in June 2006. • Over 3.1 million transactions with a 99.8% success rate migrated into Phoenix. • 1,800 Users in 50+ countries.

9. GLAAS: USAID’s Acquisition and Assistance System Global Acquisition and Assistance System (GLAAS) is the new web-based system that supports the procurement and grant management needs of USAID. GLAAS is: • End-to-end automation of the procurement process from procurement planning to award administration. • GLAAS will help the Agency ensure compliance by providing common processes and tools, will capture robust data and will increase operating capacity by improving day-to-day operations for procurement staff. • Real-time integration with Phoenix.

10. Evolving Interdependency • Why the Evolving Interdependency between Acquisition and Finance? • Integrated Enterprise Resource Planning (ERP) Systems • Reporting and Internal Controls Responsibilities • Shrinking Workforce

11. Integrated ERP Systems • Integrated Workflow • Phoenix and GLAAS • Changing User Roles • CTO/COTR/Program Mangers responsible for entering in financial data at point of transactions • Financial group role moving away from financial data entry to financial analysis and review • Business Process Improvements • Integrated Systems forced Agency to look at how things are done and who is responsible.

12. Reporting and Internal Controls Responsibilities • Tighter Financial Statements Deadlines • A-123 Internal Controls Requirements & Reporting • Audit Trails

13. Shrinking Workforce • According to statistics from OPM, about 300,000 employees (18.5% of FTEs) are retiring in the FY 2006-2010 period.   • Since 1992, staff levels at the United States Agency for International Development (USAID) have declined by 29%. This includes Foreign Service staff.  • Attracting Talent to both Civilian and Foreign Service Positions • Training Existing Workforce

14. What’s The Impact? At USAID… Improved Internal Controls Timely and Accurate Financial Reports Improved Audit Trails Changing Roles Workload & Training Enrichment of Jobs Hiring Strategy

15. Next Steps • Build on evolving roles and responsibilities to achieve Agency’s core mission • Gain more efficient global operations by leveraging IT solutions • Continue Focus on Hiring and Training

16. Questions