FINANCIAL MANAGEMENT INPROVEMENT PROJECT (FMIP) DEPUTY OF ADMINISTRATION BRIEFING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00643R000100070001-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 30
• Document Creation Date: December 27, 2016
• Document Release Date: December 12, 2013
• Sequence Number: 1
• Publication Date: August 24, 1987
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2013/12/12 : CIA-RDP89G00643R000100070001-8
STAT
TAT
STAT
UNCLASSIFIED
FIgANCIAL MANAGEMENT IMPROVEMENT PROJECT (FMIP)
DEPUTY DIRECTOR OF ADMINISTRATION BRIEFING
August 24, 1987
AGENDA
I. Introductions Allen R. Elkins,
Director of Finance
II. FMIP - Its Purpose
and Background
III. FMIP - An Assessment of
o Phase I Improvements
o Phase II Opportunities
IV. FMIP - The Management
Process
V. Discussion
Assistant Director
of Finance for Plans
and Policy
Price Waterhouse
FMIP Project Manager
rarminyi
.1,
UNCLASSIFIED
\Declassified
_ Declassified in Part - Sanitized Copy Approved for Release 2013/12/12 : CIA-RDP89G00643R000100070001-8
Declassified in Part - Sanitized Copy Approved for Release 2013/12/12 : CIA-RDP89G00643R000100070001-8
FINANCIAL MANAGEMENT
IMPROVEMENT PROJECT
(MP)
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FMIP OBJECTIVE
IMPROVE THE EFFICIENCY AND QUALITY OF
OVERALL AGENCY FINANCIAL OPERATIONS
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ridge .3
BRIEFING OBJECTIVES
? PHASE I IMPROVEMENTS
? PHASE II OPPORTUNITIES
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AGENCY CHALLENGES
Resource Intensive Operations
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Page S
PHASE I IMPROVEMENTS
? MAXIMIZE EFFICIENCY OF PERSONNEL
IMPROVEMENTS
Statistical Sampling
PRIM Implementation
Redundant Payment
Approvals
? BENEFITS
HRS SAVED
Reduce Audit Hours 40% ? 17,000
Reduce Backlogs 50%
Reduce Manual Effort 1,000
Improve Timeliness
Streamline Approvals 1,350
TOTAL:
19,350
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PHASE II OPPORTUNITIES
MAXIMIZE EFFICIENCY OF PERSONNEL
PROPOSED IMPROVEMENT COST BENEFITS
Apply Statistical
Sampling Agency-wide
Reduce Workload 25-50%
Reduce Backlogs 50%
o Class A Stations $100,000
o DA B&Fs 100,000 Improve Quality of
o DS&T B&Fs 70,000 Financial Operations
o DI B&Fs 40,000
o Budget Preparation 180,000
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rage /
PHASE I IMPROVEMENTS
AUTOMATE OPERATIONS
IMPROVEMENTS
BENEFITS HRS SAVED
Audit Statement Reduce Manual
Automation Preparation Time
Cash Reconciliation Reduce Reconciliation
System Workload
Reduce 6-9 Month Backlog
FBIS Billing Automation Automate GAS Entries
Reduce GAS Entries 50%
480
600
1,000
TOTAL: 2,080
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PHASE II OPPORTUNITIES
AUTOMATE OPERATIONS
PROPOSED IMPROVEMENTS COST BENEFITS
Commercial Bank
Reconciliations
CIARDS Investment
Analysis
Cash Disbursing
STAT
Processing
FBIS Personnel Data
Advance Requests
ADL Reimbursables
$30,000 Reduces Manual Effort
80,000 Improves Accuracy and
Quality of Operations
30,000
40,000 Improves Interfaces
50,000
30,000
15,000
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AGENCY CHALLENGES
Out-of-Date and Undocumented Procedures
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PHASE I IMPROVEMENTS
MODERNIZE AND DOCUMENT PROCEDURES
IMPROVEMENTS
BENEFITS SAVINGS
New Invoice Process Reduce Payment Time 33%
S TAT
Flow. Reduce Interest Cost
Increase Discounts Taken
Reduce Backlogs 20%
Invoice Examiner Job Improves Morale
Specialization Improves Efficiency
Simplifies Training
STAT
TOTAL:
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? PHASE II OPPORTUNITIES
MODERNIZE AND DOCUMENT PROCEDURES
PROPOSED IMPROVEMENT COST
Redesign Procedures
o Disbursing Centers
STAT o
o Monetary Division
o Finance Clearance
Processing
STAT
0
Redesign and Revise
OF Handbooks
$ 30,000
30,000
40,000
30,000
30,000
150,000
BENEFITS
Modernized Procedures
Workload Reductions of
25-33%
Streamlined Procedures
Improved Interfaces
Decreased Error Rates
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AGENCY CHALLENGES
Increasing Volumes
of Financial Transactions
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STAT
PHASE I IMPROVEMENTS
ELIMINATE UNNECESSARY TRANSACTIONS
IMPROVEMENTS
BENEFITS HRS SAVED
Unnecessary Transfers Eliminates 8040 GAS
of Accountability Transactions and
in DDO TAs Annually
Immaterial Suspensions Reduces Suspension
of Vendor Invoices Processing Hours 40%
TOTAL:
2,850
3,450
6,300
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? PHASE II OPPORTUNITIES
ELIMINATE-UNNECESSARY TRANSACTIONS
PROPOSED IMPROVEMENT COST
Unnecessary Transfers
of Accountability
in Non-DDO Offices
Budget Execution
o Level of Detail
o Funds Transfer
BENEFITS
$40,000 Reduce Processing
Workload
Reduce Backlog
Reduce Reconciliation
50,000
Workload
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AGENCY CHALLENGES
Assumption of New Responsibilities
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PHASE I IMPROVEMENTS
IMPLEMENT NEW OPERATIONS
IMPROVEMENTS
Automated OPM
Reimbursements
Using OPAC
BENEFITS
Reduces Reimbursement
? Time by 2-3 Months
Reduces Error Correction
Time by 2-3 Months
? Simplifies Cash Flow
Control
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PHASE II OPPORTUNITIES
IMPLEMENT NEW OPERATIONS
PROPOSED IMPROVEMENT COST BENEFITS
Financial Support for $40,000 Improved Personnel/
Personnel Functions Finance Interface
o Health Insurance Utilization of Existing
o Life Insurance Finance Expertise
o Workers' Comp
Design of New Operations
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AGENCY CHALLENGES
ft'MP:A01,W0i.,.i,A0Q?:-AVVAtzAMM.VAWAMMaiME5S:g0A
ISMSNAMMEMEMVAMOREIND
Investment in New Financial Systems
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Fage 19
s-
PHASE I IMPROVEMENTS
INTEGRATE SYSTEMS WITH OPERATIONS
IMPROVEMENTS
STAT STARS TA Reductions
STAT
United Airlines Ticket
Accounting Package
Cash Reconciliation/
VMCP Systems
BENEFITS
Eliminated
TAs and
GAS Entries
Reduced Data Entry
Allows Link to GAS/ BARS
Eliminated Manual
Processing/ Computing
Eliminated Manual
Control Totals
TOTAL:
HRS SAVED
5,925
1,250
7'50
7,925
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PHASE II OPPORTUNITIES
? INTEGRATE SYSTEMS WITH OPERATIONS
PROPOSED IMPROVEMENT COST
United Airlines Ticket
Accounting Package
with BARS
Decentralized Disbursing
Centers with BARS
BENEFITS
$150,000 Optimizes Investment
in Systems
Increases User
Acceptance
45,000 Improves Operational
Efficiency
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AGENCY CHALLENGES
Government-Wide Improvement Initiatives
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PHASE I IMPROVEMENTS
IMPLEMENT GOV'T-WIDE IMPROVEMENTS
IMPROVEMENTS
Online Receipt of
Treasury Reports
Prompt Payment Act
Compliance
BENEFITS
Reduces Receipt Time
from 3 Months to
2 Weeks
Reduce Interest Expense
Increase Discounts Taken
Improve Cash Management
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A
PHASE II OPPORTUNITIES
IMPLEMENT GOVT-WIDE IMPROVEMENTS
PROPOSED IMPROVEMENTS COST BENEFITS
Automated Travel $250,000 Reduction in Workload
Accounting
Budgetary Improvement 50,000 Regulatory Compliance
Initiatives
Treasury Reporting 80,000 Enhanced Security
Improvements
o Appropriations Flow Modernized Procedures
o Expenditure Flow
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AGENCY CHALLENGES
Personnel Inexperience
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PHASE I IMPROVEMENTS
DEVELOP TRAINING PROGRAMS
IMPROVEMENTS
BENEFITS HRS SAVED
DDO B&F Procedure Manual Eliminate One-on-one
Training
Improve Procedures
Provide Reference Manual
Modular A&CD Training Training Is:
Streamlined
Job-focused
Available When Needed
TOTAL:
3,600
1,500
5,100
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PHASE II OPPORTUNITIES
DEVELOP TRAINING PROGRAMS
PROPOSED IMPROVEMENT COST BENEFITS
Develop Task-oriented
Training Programs
o Budget Execution
o Disbursement Centers
o Monetary Division
S TAT
0
0
Decreased Reconciliation
Increased Understanding
$ 60,000
25,000 Decreased Error Rate
50,000
50,000 Enhanced Control
50,000 Over Agency Funds
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A MEASURE OF PHASE I EFFECTIVENESS
STAT TOTAL PROCESSING HOURS
DOLLAR EQUIVALENT
PLUS INTEREST/ DISCOUNTS
SAVED
STAT
TOTAL SAVINGS
ANNUAL
SAVINGS COSTS
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THE FMIP MANAGEMENT PROCESS
CONTROLLING THE INVESTMENT RISK
FMIP Funding Is:
o Incremental
o Contingent on Past Project Results
Individual Projects Are:
o Results Oriented
o Continually Re-evaluated
o Staffed by Specialists
o Cooperative Undertakings
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STAT
A MEASURE OF PHASE II FUNDING NEEDS
AGENCY CHALLENGE
Resource Intensive Oper.
o Statistical Sampling
o Automation
Out-of-Date Procedures
Transaction Volumes
New Responsibilities
New Financial Systems
Gov't-wide Improvements
Personnel Inexperience
TOTAL:
INVESTMENT
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