General Fund Enterprise Business System Update

1. General Fund Enterprise Business SystemUpdate Army Day 2 June 2010

2. What is the General Fund Enterprise Business System? GFEBS is an … • Accounting system that– • Complies with statutory and regularity requirements for funds control and accounting • Includes real property and other asset data for accountability • Management information system that – • Records financial and various other transactions in a single system • Provides visibility of transactions in real time across the Army • Decision support system that – • Provides full cost data • Provides comparative, trend and other analytic data • Enables well-informed decisions to leverage available resources and to improve program and budget decisions

3. Support the Accomplishment of Our Strategic Objectives in Iraq and Afghanistan Continue Efforts to Restore Balance Sustain Soldiers, Civilians and Families Establish an Integrated Management System for Army Business Operations “Effective stewardship requires an integrated management system for the Army’s business operations... It also requires an information architecture that provides decision makers with timely and accurate information… With these systems in place, we can generate the most capable and ready Army at the best value for our country.” Implement the Army Leadership Strategy Refine the Army of the 21st Century GFEBS Complements Objectives Of Secretary of Army And Chief of Staff Memorandum, from Secretary of the Army and Chief of Staff, Jan 15, 2010, Subject: Calendar Year (CY) 2010 Objectives

4. SAP Where We Are and … Where We Are Going GFEBS Solution Current Situation • Implements a single web-based system • Standardizes processes Army-wide • Implements standard data structures • Records transactions in real-time and provides real-time access to data • Integrates financial and non-financial/ performance data from functional areas • Applies commercial-off-the-shelf (COTS) Enterprise Resource Planning (ERP) • Complies with DoD’s Business Enterprise Architecture (BEA) • Involves maintaining many systems • Requires many costly interfaces • Requires entering data in several systems • Inhibits efficient sharing of data • Impedes producing comprehensive and accurate decision data • Hinders responding timely to questions • Requires time-consuming and costly reconciliations System View (SV) 1

5. Army Reserve Army National Guard Active Army Transactions in… Reports and analyses General Fund Enterprise Business System Overview GFEBS will process a million transactions a day and … … provide essential data to transform the Army to a cost culture As of 31 Dec 2009

6. Approximately • 250 Users • Approximately • 1,400 Users • Approximately • 120 Users • Approximately • 3,700 Users Project Status (As of May 2010) • Received Milestone B approval – 14 Mar 08 • Successful Release 1.2 “Go live” – 1 Oct 2008 • Fort Jackson South Carolina and 7 other locations • Favorable Operational Test Agency Limited User Test assessment – 12 Dec 08 • Successful Release 1.3 “Go live” – 1 April 2009 • Forts Stewart, Benning and related organizations • Successful Milestone C Decision Authority – 30 May 2009 • Successful Release 1.4 “Go live” – 10 Oct 2009 • Successful Release 1.4 “Go live” – 1 Jan 2010 • MEDCOM Fort Benning and related organizations • Successful Wave 2 “Go live” – 1 Apr 2010 organizations • Organizations at 9 Forts plus other organizations • Successful Release 1.4.1 “Go live” – 19 Apr 2010 GFEBS software release delivery and Wave deployment are on schedule

7. Allotment ($ in millions) 16 Fund Centers 10 Fund Centers 7 Fund Centers 5 Fund Centers 10 Fund Centers 4 Fund Centers 2 Fund Centers 1 Fund Center • IMCOM $ 2,616 • TRADOC $ 426 • FORSCOM $ 391 • Accessions • Command $ 320 • MEDCOM $ 273 • NETCOM $ 48 • USARNG $ 20 • HQDA $ 477 • TOTAL $ 4,570 Note: As of 4 May 2010 GFEBS Currently Has A Sizeable Footprint

8. 1055 of 1114 (94.7%) of FFMIA requirements successfully demonstrated Operational with ~5,000 users at 55 organizations • 2.69 billion obligated to-date • 99.7% successful obligation rate • 99.6% successful disbursement rate for over $1.6 billion 99+% system availability & ~98% interface success rate Eighteen fiscal months and six fiscal quarters successfully closed FY 2009 year end -- proprietary and budgetary accounts balanced Less than 10 second average response time for ~99% of on-line transaction processing $0 Negative Unliquidated Obligation (NULO) at 2009 year end with only $7.4M Unmatched Disbursement (UMD) FY 2010 available to process transactions at 12:01 AM on 1 October 0 Standard Procurement System (SPS) IDOCs at year end, i.e., no contract interface errors System Performance • ~1.4 million transactions (~ 234 million steps) processed successfully • 311,833 with Funds Control Module (FCM) with 98.9% success rate • 29,851  DTS TravelVoucher transactions with96.9% successrate • 57,812  DTS Travel Authorization transactions (821) - 99% success rate • 7,360 PRs created 99% success rate As of 3 May 2010

9. Implementing Change Is Not Easy - -Change Management Is Important • Users require time to adjust to new system, new business processes, and new data structures • During this time, performance initially declines • Change Management (communications, training, and deployment) can reduce both the depth and the duration of the dip • Wave 1 experience: • End Users had difficulty with change management and training • Improvements • Implemented Tiger Teams • Provided On-site support • Created Functional Forum • Improved training material • Improved visibility of endorsement • Greatly increased command activity • Created Readiness Team • Add online collaboration tool (Direct Connect Online) • Future improvements • Continue to improve training materials • Incorporate lessons learned As of 1 Apr 2010

10. Using chain of command to inform and actively engage all levels of the Army in the deployment process Lengthened deployment timeline to 15 months for each “Wave” Created a GFEBS “Deployment and Transformation” Team Developed an integrated management schedule for deployment with activities of the program office and gaining organizations Implemented “Power User Program” Improved and proactively managing End User role assignment process Redesigning and revising End User training materials Revised way we engage organizations to collect and prepare data Lessons Learned And Key Actions Taken Successful implementation requires actions by both the program office and the gaining organizations

11. Learn what activities each role can perform and then assign all the roles you need to perform your mission Get and review lessons learned from Early Waves The tasks an end user can perform in GFEBS are governed by roles assigned and training certified Therefore supervisors must assign all necessary roles to each user on time to support adequate scheduling of courses Supervisors must get employees to end user training prior to “go live” Field Comment: “More work could be done explaining the roles. The deployment team tells folks 7-10 roles per budget analyst … often need more” Actions For Smooth And Successful Implementation -- Roles

12. Learn how to use Governance, Risk, and Compliance (GRC) software GRC is a web-based application for managing end user role assignments and security Field Comment: GRC role assignment software is “Greatest improvement since the Wave 1 transition. It lets the field fix its own issues.” Actions For Smooth And Successful Implementation -- GRC

13. Coordinate with GFEBS to make sure that interfaces you need are identified, tested and working when you Go-Live with GFEBS Data structures need to be compatible for effective data transfers (e.g FCM, ATAAPS) Interfaces need to be tested (e.g. SPS) GFEBS and legacy systems owners need to work together Field Comment: “Wave 2 received much more help in updating interfacing systems prior to conversion. Though much more could be done here.” Actions For Smooth And Successful Implementation – Interfaces

14. Capitalize on your Power Users They are the primary GFEBS functional experts in your organization with classroom and ‘sandbox’ experience They can relate GFEBS processes to your current business practices Field Comment: “Power User participation in Instructor Lead Training courses was a terrific help” Actions For Smooth And Successful Implementation – Power Users

15. Review list of preparation tasks in the Integrated Management Schedule (IMS) and report on progress in the Site Readiness Scorecard IMS provides a list of tasks through time, based on prior deployments, to walk new organizations to implementation Site Readiness Scorecard involves monthly reporting on progress from each new organization through their chain-of-command Field Comment: “This will provide you with information on whether you are generally on schedule or need help.” Actions For Smooth And Successful Implementation – IMS and Reporting

16. Know how to find and use the GFEBS Deployment Teams that are on-site at and after “Go Live” Teams include GFEBS project personnel and individuals from organizations that previously went live They are on-site for up to several months post Go-Live Field Comment: “GFEBS Deployment Teams…are much more familiar with Army processes and have become a great help during deployment vs. just helping enter a help ticket. They also know who to call to get things fixed. Great improvement.” Actions For Smooth And Successful Implementation – Deployment Team

17. Example of What You Can Get From GFEBSEconomic Recovery Act—Funds Status Go to next slide NOTE: Army-wide distribution and status of funds

18. From prior slide NOTE: Projects and status of funds Army-wide Example of What You Can Get From GFEBS Economic Recovery Act—Projects

19. From prior slide NOTE: Projects and status of funds by location Example of What You Can Get From GFEBS Economic Recovery Act—By Organization

20. NOTE: Drill-down to project details and status Example of What You Can Get From GFEBS Economic Recovery Act—Project Detail

21. NOTE: Drill-down to origination Example of What You Can Get From GFEBS Economic Recovery Act—Origination

22. NOTE: Drill-down in project Example of What You Can Get From GFEBS Economic Recovery Act—Work Breakdown

23. GFEBS is coming to you Army-wide implementation by 2nd Quarter FY1012 The GFEBS system is performing well Change is difficult -- we need everyone’s support We are always looking, listening, learning and trying to improve the process Good and detailed planning leads to smoother and more successful operations -- you should begin your planning now! GFEBS Is Transforming the Army GFEBS will transform financial management and management practices across the Army