In March 2004, the Office of Management and Budget (OMB) launched the financial management line of business (FMLOB) initiative, in part, to reduce the cost and improve the quality and performance of federal financial management systems by leveraging shared service solutions and implementing other reforms. In March 2006, GAO reported that OMB's approach did not fully integrate certain fundamental system implementation-related concepts and recommended OMB take specific actions. This report discusses (1) OMB's progress in addressing GAO's prior FMLOB recommendations and implementation challenges and (2) the effectiveness of OMB's monitoring of financial management system modernization projects and their costs. GAO's methodology included reviewing OMB's FMLOB-related guidance and reports and interviewing OMB and Financial Systems Integration Office (FSIO) staff.
Recommendations for Executive Action
|Office of Management and Budget||1. To assist oversight efforts specifically related to federal financial management systems, the Director of OMB should take actions to facilitate complete and accurate reporting of actual and planned spending related to financial management system modernization projects, including the financial portion of mixed systems that significantly support financial management functions, and make necessary changes in existing guidance to meet these needs.|