OMB: Standards will boost financial performance
- By Mary Mosquera
- Dec 22, 2008
The Office of Management and Budget released more guidelines in
November to help agencies consolidate and improve their financial
accounting practices, according to a Dec. 18 press release.
latest financial management standards encourage agencies to adopt a
single approach to handling accounts receivable. Many agencies have
different business processes, which complicates oversight for agencies
and auditors charged with reconciling financial information and
measuring performance, OMB said.
accounting processes is a goal of OMB’s Financial Management Line of
Business, which the General Service Administration’s Financial Systems
Integration Office (FSIO) manages.
“Development of standards
supports the FM LOB vision to improve the cost, quality and performance
of financial management systems by standardizing business processes,
interfaces and data,” said Dianne Copeland, director of FSIO, in the
The guidance includes steps for managing accounts
due from the public and an agency’s billing and collection divisions,
she said. The steps describe internal controls and the best ways to
take advantage of electronic tools, such as processing, information
routing, review and approval, she added.
published standard business processes for contract payments and funds
control and distribution, said Danny Werfel, OMB’s deputy controller,
in a memo to agency chief financial officers released Dec. 19.
will update the core requirements for financial management systems to
incorporate the new business standards, and it will test vendor
software during the qualification and certification process, Werfel
said. Agencies must implement the business standards by moving to
government or commercial shared-services providers when they are ready
to upgrade their financial systems, he added. Those providers are
equipped to offer financial management systems and services to many
Mary Mosquera is a reporter for Federal Computer Week.