“Focusing On Your Future”

1. “Focusing On Your Future” Jerry Lohfink, DirectorNational Finance Center

2. 2010 Customer Forum • Welcome • Agenda • Overview

3. Agenda • Tuesday Morning • Shared Service Update • Human Resources Line of Business • Payroll/Personnel System/EmpowHR • Payroll Personnel Operations • Client Services • Tuesday Afternoon • Payroll/Personnel Operations • HRLOB (EmpowHR, webTA, HRLOB Services) • Payroll/Personnel Legacy Systems • Costing Methodologies

4. Agenda • Wednesday • EmpowHR • Overview of EmpowHR • Person Model • ePerformance • Data Warehouse • EPIC Web • Employee Personal Page • webTA

5. Agenda • Thursday • EmpowHR • Overview of EmpowHR • Person Model • ePerformance • Data Warehouse • Security Officers User Group Meeting • EPIC Web • Employee Personal Page • webTA

6. Customer Satisfaction Customer Focus, Customer Options, Customer Satisfaction

7. Living to Commitments • Listened and targeted (2007 and 2008) • Commitments (2008): • Improve Governance at Executive level • Increase visibility and input to system changes • Improve value of existing systems and services • Develop long-term path forward for systems and services

8. Living to Commitments Commitments: Improve Governance at Executive Level • Payroll/Personnel Customer Board • Forum for information sharing, structured releases, and strategic direction discussions • Restructuring of PPS User Groups • Creation of Project Review Team • EmpowHR Board • webTA Hosting Plus Board

9. Living to Commitments Commitments: Increase visibility and input to system changes • Customer involved process • Results

10. Living to Commitments Commitments: Improve value of existing systems and services • NOAs and authority codes for details, reservist differential, hiring, entitlements, etc. • HCCUP • Grayed fields • Removal of PII/SSN info • Updated order of precedence • Access administration process improvements

11. Living to Commitments Commitments: Improve value of existing systems and services • Automatic TSP enrollment • Preauthorized debits • webTA hosting services • Sunday premium pay for part-time employees • Security Reports on Reporting Center • Expanded Reporting Center options • Enhanced release testing • EPIC functionality improved

12. Living to Commitments Commitments: Improve value of existing systems and services • UPK training and performance tool • Email subscription service for news and updates • ePerformance management • EmpowHR use improvements • Backfeeds and improved data quality • Reports to better manage outstanding debt suspensions • Expended hosting services

13. Living to Commitments Commitments: Develop long-term path forward for systems and services • Strategic Plan • Modernization Blueprint • Pay Engine Business Case

14. Statement of Earnings and Leave Office of Management and Budget and Office of Personnel Management Share Direction for Executive Branch Agencies Default to Electronic Delivery Currently: 97% EPP account 50% do not receive mailed SEL Future: All Executive Branch employees will default to no paper; EPP will allow user to request paper copies

15. Near-Term Direction Continue to live to commitments • Governance • Visibility and direction to system changes • Value of systems and services • Long-term direction

16. Near-Term Direction Continue to live to commitments • Expand functionality and ease of use in legacy system • EPP upgrades • IAM/SecureAll/eAuth • Data warehouse and workforce reporting • ePerformance • Staffing and on-boarding • Improve service delivery mechanisms • Customer feedback • Web services • Help desks • User acceptance testing

17. Long-Term Direction • NFC is undertaking the Pay Engine Project in order to achieve multiple strategic drivers: • Address legacy system risks • Support the mission of NFC • Support the mission of NFC’s customers • Meet Legislative, OPM, OMB, Departmental, and Management Mandates NFC is committed to providing its customers with the highest quality services and continually strives to improve and enhance its service offerings. The Pay Engine Project allows NFC to address challenges of the current system and position itself to provideunique operational and functional benefits to its customers.

18. Long-Term Direction • Conceptual approach in terms of product can be outlined as follows: • Replace basic HR recordkeeping, Gross Pay, Net Pay, and Employee Debt Management, and Reporting capabilities • Build around core commercial capabilities using Federal rules • Continue to allow customers to use alternative front-end applications, assuming capability exits

19. Payroll/Personnel System Flowchart

20. Pay Engine System Flowchart HR Component EmpowHR or compatible HRIS Addresses: Organization/Position Management PAR Processing Staff Acquisition/On-Boarding Performance Management Benefits Management/Benefits Processing Human Resource Development Employee Relations Labor Relations Separation Management/Off-Boarding Self Service OPM Portal Third Party Provider T & A Component webTA or Integrated Component Addresses: Time and Attendance Leave Management Payroll/Project Accounting Resource Scheduling Pay Engine Reporting Component Data Warehouse and Reporting Systems Addresses: HR Data Reporting Payroll Reporting Digital Asset Services Accounting Reporting Interface/Reporting Business Analytics/Ad-Hoc Reporting Manager Dashboard Employee Dashboard Payroll Component Pay Engine & Debt Management Systems Addresses: Compensation Management Pay Computation Historical Pay Adjustments Manual Pay Special Employee Payments Garnishments Third Party Debts Payroll Disbursing Files Tax Reporting Payroll Inquiry Employee Billings and Collections Federal/Treasury Offsets

21. Business Case Overview –Conceptual Approach • Goal is to have contract vehicle to acquire models for each customer based on their concept of operations (with or without ownfront-end applications) • Key decision criteria includes: • Security/Access Administration • Federalization • Functionality • Rules-Based Approach • Cloud Computing

22. Recommendation • NFC recommends • A low risk approach offering highest long-term functional and strategic benefits to its customers and the Federal Government at large

23. Path Forward • Obtain OMB business case approval and work with OMB to identify funding source(s) • Immediate next steps for software acquisition phase includes: • Publish draft and issue final RFP • Vendor proposals • Evaluate vendors Customer Go-Live

24. Risk Management • Audits • SAS-70, Service Provider Audit • OPM Agreed Upon Procedures • USDA Financial Statement Audit • Firewall Audit • Reviews • FISMA • FFMIA • A-123

25. Risk Management • Reliability • Dual data centers • Multiple telecommunication paths • Multiple power sources • Business Continuity plans tested annually • Disaster Recovery plans tested annually • Security access roles for NFC staff address failover

26. Risk Management • Security • All systems have current and complaint C&A • Fully compliant with USDA security requirements • Penetration test completed annually • Firewall and intrusion monitoring at all times • Positions have appropriate sensitivity designation and employees have corresponding clearances • Multiple logical access controls provide securityin-depth • Ongoing reviews of access grants and use • Overall review of security program completed annually

27. Risk Management • Personally Identifiable Information (PII) • Significantly reduced PII data use • Training, reminders, all-hands meetings, etc. • Secured access to high PII-use areas • Secured internal printing being rolled-out • Mandate to use encrypted emails • Sourcing a secured “pull” technology solution for data exchanges

28. Customer Satisfaction Customer Focus, Customer Options, Customer Satisfaction

29. 2010 Customer Forum Thanks!