FAIRFAX, Va.--(BUSINESS WIRE)--The American Council for Technology’s Industry Advisory Council (IAC) today released a report it has provided to the Office of Management and Budget with recommendations on how to improve the sustainability of Federal financial management systems. The findings and recommendations were shared with OMB and the Federal Chief Financial Officer’s Council prior to the report’s release.
The Administration has embarked upon a major initiative to improve the acquisition and management of the Federal government’s information technology assets (see the Federal CIO’s 25 Point Implementation Plan to Reform Federal Information Technology Management, December 9, 2010). A key part of this strategy is to replace large-scale systems acquisitions with a more segmented approach that focuses on business needs. The OMB Office of Federal Financial Management asked ACT-IAC to provide industry recommendations on how to apply this new strategy to Federal financial management systems. IAC was asked to address four questions:
- Given that agencies usually maintain a hybrid environment including modernized system components integrated with legacy systems, how can agencies most effectively maintain functionality and improve performance over time? Is change management of this magnitude within the capability of most Federal agencies?
- When is a system truly on its “last legs”? What criteria should be used to make decisions between incremental investments in an existing system and larger investments in a modernization initiative?
- Is there a way to incentivize software providers to introduce upgrades in a manner that best serves the taxpayer?
- What new paradigms exist or are just now emerging that might help apply game changing approaches to the first three questions?
In response to this request, IAC assembled a working group of experienced subject matter experts from 22 companies in the financial and information technology industries. The working group was chaired by Anne Reed (ASI Government) and Andrew McLauchlin (CGI). The working group met over the course of the spring to gather information and form conclusions and recommendations. In accordance with ACT-IAC principles, it operated in a collaborative and vendor-neutral manner that focused on improving government. The final report was a consensus document with recommendations that were unanimously supported by all members of the working group. The 73 page report was officially submitted to OMB on June 24, 2011.
Early in its analysis the working group recognized that each of the questions represented a different phase of the life cycle of a financial system – and formed the conclusion that the overarching goal was to create a sustainment approach that could focus on getting the most out of existing systems, even as new components are introduced. In support of this philosophy, the IAC Working Group recommended consideration of a strategy with four key elements:
- Leverage portfolio management to address agency needs and clearly define the long-range business architecture.
- Employ standard “decision criteria” to determine the viability of an existing system.
- Increase communication among executive leadership, agency program managers and the vendor community and create a new management role for the active management and analysis of emerging requirements.
- Continually assess new technologies, deployment methods and business models to improve the Federal financial management processes.
The overall objective of this strategy is to reduce the risks of new investments in Federal financial systems, improve the timeliness of system development and upgrade initiatives and enhance the accuracy and effectiveness of Federal financial management activities. The results will be more effective management of taxpayer assets and a greater return on the investment of resources in financial management systems.
Additional information on the strategy and the detailed responses to the four questions that were posed is available in the final report. That report may be downloaded from the ACT-IAC web site (www.actgov.org).
Anne Reed, chair of the IAC Financial Management Working Group, stated: “As a former senior government executive with experience in both IT and financial management, I know the complexities associated with acquiring and implementing financial management information systems. The working group was composed of many dedicated professionals who willingly took off their corporate hats and collaborated on how best to improve government. Every member of the working group was a volunteer and collectively spent hundreds of hours on this project. We are delighted to present OMB with a set of unanimous recommendations that we believe can have a real impact.”
Prashant Gaur, president of ACT, and Andy Robinson, chair of the IAC Executive Committee, issued a joint statement saying: “This report is another example of the unique role played by ACT-IAC in the government IT community. We provide a trusted forum where government can get an industry perspective on important issues. On a daily basis ACT-IAC provides an objective and vendor-neutral place where government and industry executives are working to improve government through information technology.”
About ACT-IAC – Advancing Government Through Education, Collaboration and Action
ACT-IAC has been recognized as the premier government IT community’s public-private partnership and is an example of how government and industry work together. We are a non-profit educational organization created to advance government in serving the public through the effective application of IT resources. Our education, training, programming and collaboration opportunities enhance and advance the government IT profession. ACT-IAC’s objective, vendor and technology-neutral, and ethical forum allows government and industry to collaborate and improve government through technology. Learn more about our organization and how to become a member at www.actgov.org or call (703) 208-4800.