FINANCIAL Planning and PROCESS IMPROVEMENT

Capabilities

In the past decade, many federal financial management operations have been the subject of reform. They have been streamlined, redesigned, transformed, consolidated, and downsized. In the interest of reforming government, detailed procedure manuals were replaced with general guidelines. Attention shifted from recording transactions to analyzing information, with a concomitant reduction in staff size.

LMI helps financial organizations develop a unified approach to continuous improvement of processes to meet customers’ evolving needs. Planning provides a framework that helps to maximize financial gain and optimize operational performance.

For some organizations, optimizing includes going back to the basics. Their accounting technicians need detailed procedure manuals to instruct them in how to handle exceptions. Policies need to be updated to bring them in conformance with the latest guidance. At LMI, we understand the basics. We combine this comprehension with business process reengineering techniques to model the development of best financial management practices, including the following:

• Assessing financial management strategies
• Reviewing and documenting existing accounting operations and practices
• Benchmarking against best-in-class management and operational standards
• Mapping and describing existing and improved processes
• Identifying areas for improved internal controls.

CLIENTS AND SOLUTIONS

FSIS—Improving Financial Controls

The Food Safety and Inspection Service (FSIS) found that its financial management processes needed reengineering to improve financial accountability and controls and more effectively manage costs. The existing model, which had been in place for years, reflected the functionality of the former accounting system. In addition, FSIS reported Anti-Deficiency Act violations in two consecutive fiscal years.

LMI established a baseline for regulatory and business requirements to be met by FSIS financial and budget operations and identified needed financial practices and capabilities. We found ways to improve financial management processes; defined needed financial control policies, procedures, and activities; and outlined a consistent method for evaluating future risks. The result was prioritized recommendations for improvements, targeted at reducing the highest risk gaps, to achieve best-in-class management practices.

CMS—Defining Controls over Payments

LMI assessed procedures used by the Centers for Medicare and Medicaid Services (CMS) to verify that payments to managed care providers are correct. Providers are paid based on the number of people enrolled in their plan, adjusted by risk and other factors. We reviewed the payment validation process, identified controls, recommended improvements, and documented the process in standard operating procedures that became the model for other organizations within CMS.

BIA—Assessing Financial Management

LMI developed financial management procedures for the Bureau of Indian Affairs (BIA). To increase consistency and reliability of accounting transactions, we assessed the accuracy of existing procedures and wrote new ones. As a result, financial management will be strengthened and the organization will be better positioned to meet the needs of its customers and stakeholders.

GSA—Complying with USSGL

LMI evaluated the posting models in the new General Services Administration (GSA) financial management system. We analyzed GSA's accounting events and aligned each with the appropriate transaction in the U.S. Standard General Ledger (USSGL) model. The result is compliance with the USSGL at the transaction level—a key Federal Financial Management Improvement Act requirement.