FINANCIAL MANAGEMENT SYSTEMS

The Department maintains a FFMIA compliant financial management system, the Commerce Business Systems (CBS). CBS replaced non-compliant legacy financial management systems within the Department. Bureaus that were previously on compliant systems continue to use those systems with one bureau converting to CBS in FY 2008. The financial information from these systems and CBS is integrated in the Corporate Database (as discussed further below) for consolidated financial reporting, resulting in a single integrated financial system. A Consolidated Reporting System (CRS) integrates existing management data from financial, human resource, acquisition, and federal assistance enterprise databases and provides senior management with online desktop access to information about bureau programs and resources that is critical to strategic decision-making.

CBS provides reliable and timely information within a sophisticated security infrastructure. The system is capable of producing both financial and budget reports from information generated within the financial management system. CBS includes a Core Financial System (CFS) interfaced with administrative systems for small purchases, bankcards, grants (Automated Standard Application for Payments [ASAP]), a data warehouse, and time reporting/labor cost distribution module, collectively called Core CBS. An obligation and requisition interface between CBS and the Commerce Standard Acquisition and Reporting System (CSTARS), the Department’s acquisition system, was implemented in October 2006. As a result of an ongoing project to upgrade the CBS application software to a Web version, the life expectancy of the system is to 2012 and beyond. The Department has begun the initial planning to move to a Financial Management Line of Business (FMLoB) Shared Service Provider in 2012 as agreed upon with the Office of Management and Budget (OMB).

The Corporate Database is a commercial off-the-shelf software package for consolidating financial data and producing financial reports. The Corporate Database is an integrated solution that provides financial statements and Adjusted Trial Balances reported at the Department, bureau, and Treasury Appropriation/Fund Group level. It also provides the ability to perform data analysis and produce the Department’s footnotes, financial analysis reports, and other additional information required for the government-wide financial statements.

During FY 2006, the Department accomplished the following initiatives:

• Implemented an upgraded Corporate Database system which facilitated the Department’s ability to produce useful, accurate, and timely financial statements, and provide financial data needed to analyze and understand financial results and performance. The system was successfully in production as of July 1, 2006 for the third quarter FY 2006 financial statement process.
• Completed the implementation of the standard interface between the CBS and procurement system in production throughout the Department. This interface will pass CSTARS commitments (requisitions) and obligations (awards) to the CBS/CFS for processing.
• Began migrating CBS to the current Web version of its Oracle application software expanding the CBS life expectancy to 2012 and beyond. In addition, best practices identified in the Web Migration Independent Verification and Validation (IV&V) for maintaining CBS software were implemented.
• Began detailed planning for consolidating financial system applications from the existing locations to one data center using a common hardware platform.
• Planned and initiated the implementation of the conversion of the International Trade Administration (ITA) to the CBS/CFS. This effort will expand the benefits of CBS in standardizing financial management activities across the Department.
• Implemented a standard interface between the CBS/CFS and the Department of Defense Electronic Business Program Office’s Central Contractor Registration (CCR) system. The interface will populate the CBS vendor database with CCR vendor records database. The CCR vendor records database will be a secure, single repository of vendor data.

In FY 2007 and beyond, the Department will continue its efforts to enhance its financial systems and to move toward a consolidated operating environment. The Department plans to accomplish the following:

• Complete migration of CBS to the current Web version of its application software in FY 2007.
• Begin consolidation of financial system platforms from their existing locations to one data center using a common hardware platform with scheduled completion in FY 2008.
• Continue implementation of the ITA to the CBS/CFS, with a planned conversion and go-live date in FY 2008.
• Initiate planning for the transition to an FMLoB Shared Service Provider by 2012. Staff will continue to participate in FMLoB government-wide working groups aimed at standardizing financial management activities in the federal government. The Department will continue mapping out a timeline that includes the required phases and activities for this transition during FY 2007. In FY 2008, detailed planning will begin to ready the Department for competing the financial management system against identified shared service providers. In FY 2010, the Department will identify a shared service provider then begin implementation/deployment between FY 2010 and FY 2012.