Office of Finance Functional Statement

Section AMS.10 Organization. The Office of Finance (OF) is headed by the Deputy Assistant Secretary for Finance (DASF), who is also the Deputy Chief Financial Officer, and reports to the Assistant Secretary for Resources and Technology/Chief Financial Officer (CFO). The Office includes the following:

Immediate Office (AMS)
Office of Financial Policy and Reporting (AMSI)
Office of Program Management and Systems Policy (AMS2)

Section AMS.20 Functions

1. Immediate Office (AMS). The Immediate Office is responsible for support and coordination of the Office of Finance components in their management of the areas listed under section AMS.00 Mission above, especially for ensuring compliance with the Departmental reporting requirements of the Federal Managers' Financial Integrity Act (FMFIA) as Departmental FMFIA Coordinator. In addition, the Immediate Office recommends ASRT/CFO approval of the job description and skill requirements for OPDIV CFOs, advises the ASRT/CFO on the selection of OPDIV CFOs; and advises the ASRT/CFO regarding the annual performance plan/evaluation of each OPDIV CFO. The office also provides guidance on the qualifications, recruitment, training and retention of all financial management personnel.

2. Office of Financial Policy and Reporting (AMS1). The Office of Financial Policy and Reporting (OFPR) consists of:

O Division of Financial Management Policy (AMS11)
O Division of Financial Statements and Audit (AMS12)

a. Division of Financial Management Policy (AMS11). The Division of Financial Management Policy (DFMP):

(1) Ensures that proper internal controls are implemented and maintained under OMB Circular A-123, Management's Responsibility for Internal Control;

(2) Coordinates with the OPDIVs in the preparation of the corrective action plan (CAP), which is submitted quarterly to OMB and reflects the material weaknesses and reportable conditions from the annual CFO audit and the Federal Managers' Financial Integrity Act (FMFIA) report;

(3) Develops Department-wide policies, procedures, and standards for financial management areas including cash management, credit management, debt management, payment and disbursement activities and functions, and promulgates these and related government-wide financial management requirements through the Departmental Accounting Manual system;

(4) Establishes a financial management planning process for the development of strategic and tactical plans, and provides guidance and financial management indicators that enable the ASRT/CFO to evaluate the financial management programs and activities of the Department;

(5) Provides support to the OPDIV CFOs for financial planning and improvement initiatives;

(6) Serves as principal staff advisor on financial management policy matters to the Office of Finance;

(7) Maintains liaison with OMB, the Treasury, the GSA and other agencies on financial management policy matters;

(8) Prepares, analyzes, coordinates and assesses financial data reflecting financial, accounting and performance information of the Departmental financial activities;

(9) Recommends policy and maintains a system for tracking and improving cash and credit management and debt collection performance throughout the Department;

(10) Prepares the annual HHS report on CFO activities as guided by the DASF/Deputy CFO.

b. Division of Financial Statements and Audit (AMS12): The Division of Financial Statements and Audits:

(1) Oversees the preparation and submission of quarterly and annual consolidated financial statements for the Departments;

(2) Acts as the principal contact with the OIG in planning the annual financial statement audit strategy under the CFO Act and the 1994 amendments under the Government Management Reform Act (GMRA);

(3) Reviews and interprets OMB, GAO, Treasury and Federal Accounting Standards Board (FASAB) guidance related to government wide accounting policy and standards and develops the Department's policy for implementation of these requirements and assures that policies and procedures are in accordance with internal control and reporting standards of financial management activities;

(4) Develops uniform business rules, data standards and accounting policy and procedures in support of new financial system implementations. Ensures the development of ongoing accounting policy that further supports the consistent development and implementation of these systems;

(5) Provides advice an assistance to OPDIVs and STAFFDIVs on financial accounting and related fiscal matters, and advises the DASF on such matters as they relate to financial system implementations;

(6) Maintains liaison with OMB, the Treasury, and other agencies on accounting, financial policy and fiscal matters;

(7) Maintains the Departmental Accounting Manual (DAM) which is the official accounting standard for recording and reporting accounting transactions; (8) Provides advice and assistance to OPDIVs and STAFFDIVs on financial accounting and related fiscal matters, government-wide accounting standards and serves as principal advisor to the DASF as it relates to financial statement preparation, audit and financial reporting.

3. Office of Program Management and Systems Policy (AMS2). The Office of Program Management and Systems Policy (OPMSP) has the following components:

o Program Management Office (AMS21)
o Division of Systems Policy, Payment Integrity and Audit Resolution (AMS22)

a. Program Management Office (AMS21): The Program Management Office (PMO) is responsible for overseeing the design and implementation of enterprise financial management systems, with a current priority on the unified financial management system (UFMS) consistent with the Secretary's June 2001 directive. The system consists of two major components: the Healthcare Integrated General Ledger Accounting System (HIGLAS) at the Centers for Medicare and Medicaid Services (CMS) and a system for the rest of the Department. The office's responsibilities include:

(1) Serving as a focal point for

(1) overseeing the design, development, and implementation of the UFMS and the development of life-cycle and budgetary plans;

(2) monitoring the milestones and schedules as well as budget expenditures; and

(3) the mediation and coordination of activities throughout all levels of HHS;

(2) Ensuring that the UFMS complies with applicable Federal accounting concepts and standards, as well as HHS accounting policies and procedures;

(3) Ensuring that business requirements are met, the future direction of the initiative is consistent with HHS planning, and the status of the project is appropriately communicated to internal and external organizations;

(4) Overseeing a comprehensive program of change management that includes addressing Departmental communication, training plans and human resource issues;

(5) Coordinating with workgroups to maximize the input from the cross-functional areas of HHS into the implementation process; and

(6) Overseeing risk management plans to ensure that risk to the program are identified and effective mitigation strategies developed.

b. Division of Systems Policy, Payment Integrity, and Audit Resolution (AMS22). The Division is responsible for overseeing the financial systems policy, payment integrity and audit resolution functions:

(1) The financial system policy function oversees Department-wide financial systems policy development and implementation for HHS financial and mixed financial systems for adherence to government-wide and Departmental financial systems policy and standards; oversees the Department's compliance with the Federal Financial Management Improvement Act of 1996 and Section 4 of the Federal Managers' Financial Integrity Act; and helps ensure the financial accountability for these systems in conjunction with the HHS Office of Chief Information Officer. This includes the following functions:

(a) Develops Department-wide policies and standards for financial and mixed financial systems;

(b) Provides advice and serves as the focal point with OMB, Treasury and other Federal control agencies on financial systems compliance matters;

(d) Provides for the administration of a data integrity and quality control program to ensure compliance with applicable Federal directives, Departmental financial systems policy and automated financial data exchange requirements;

(e) Manages the Capital Planning Investment Control (CPIC) process and the OMB Exhibit 300 business case development and review process for IT systems including financial management systems throughout HHS in support of the Department's Information Technology Investment Review Board (ITIRB);

(f) Oversees and monitors existing Department-wide and component accounting and financial management systems;

(g) Advises the DASF on financial systems related matters in collaboration with the Office of Financial Policy and Reporting; and

(2) The payment integrity function oversees the Department's improper payment reduction initiatives which include recovery auditing, program risk assessments, estimating and reducing improper payments for high risk programs and reporting to OMB, Congress, and others on these estimates and the Department related actions. This includes:

(a) Providing analyses of high risk programs and improper payment identification strategies and formulating recommendations on best approaches to meeting the requirements of the Improper Payments Information Act of 2002 (IPIA) and other related legislation, regulation and policy;

(b) Identifying improvements to the HHS Risk Assessment Model and providing assistance to the OPDIVs in completing required IPIA program risk assessments, and addressing issues as they arise about the appropriateness of risk assessment conclusions;

(c) Preparing reports, presentations and briefings for the Department's top management, OPDIVs, OMB and other organizations, on the improper payment initiative. This includes preparing the Appendix ``Information on HHS Improper Payment and Recovery Auditing Initiative,'' which is included in the Department's annual Performance and Accountability Report (PAR).

(3) The audit resolution function provides leadership in resolving crosscutting audit findings. It performs the following functions:

(a) Reviews and resolves audit findings pertaining to monetary and/ or systemic findings of grantee and contractor organizations affecting the programs of more than one Operating or Staff Division or Federal agencies. Conducts or arranges for additional reviews as needed;

(b) Coordinates, where necessary, with other affected Federal agencies to establish a uniform Federal position on the actions needed to be taken and negotiates resolution on behalf of all Federal Departments and agencies;

(c) Makes recommendations to the Secretary, the ASRT and other officials on safeguards or other actions against a grantee or contractor, where the organization is unwilling or unable to correct serious deficiencies in a timely manner as deemed necessary;

(d) Provides technical assistance to grantees, contractors, and other Operating and Staff Divisions related to the resolution of findings contained in audits of HHS awardees and financial management of grants and contracts;

(e) Establishes and monitors policy regarding audit issuance, follow-up and resolution for the Department in support of the function of the HHS audit follow-up official as required by OMB Circular A-50;

(f) Oversees the submission of required grantee audit reports;

(g) Coordinates status of final action on OS audits with the ASRT Office of Budget; and (h) Prepares the Management Report on Final Action for the Department's annual Performance and Accountability Report.