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Treasury Notes

 Reducing Costs and Improving Efficiency Through Federal Shared Service Providers for Financial Management

By: Beth Cobert and Dick Gregg

As part of the President’s Management Agenda, the Administration is pursuing initiatives to streamline the way government delivers services internally, with a particular focus on the core administrative functions that are common across the government.  One of our key initiatives in this effort is to expand the use of high-quality, high-value shared services among Federal agencies.

Today, the Office of Management and Budget (OMB) and the U.S. Department of the Treasury are announcing the designation of four shared service providers for financial management to provide core accounting and other services to Federal agencies. 

Following today’s announcement, offices from the Departments of Agriculture, Treasury, Interior, and Transportation will lead the administration’s efforts to use shared services for future financial management systems modernizations across the government. These shared services designations are another step in the implementation of OMB’s March 2013 Memorandum to Federal agencies (M-13-08 “Improving Financial Systems through Shared Services).

As agencies migrate to the four providers, the government will achieve economies of scale and standardization. Using a financial management shared service provider will help agencies reduce the risk of new system implementations, allow for faster and less expensive technological innovation, provide long-term cost savings, and meet government-wide requirements and deadlines.  As a result of these improvements, agencies will be able to focus more of their resources and leadership attention on mission-based programs.

With the designation of the four providers, more agencies can begin the process of migrating their financial systems.  The Department of Agriculture’s National Finance Center, the Department of the Interior’s Interior Business Center, the Department of Transportation’s Enterprise Services Center, and Treasury’s Administrative Resource Center are ready to support agencies for financial systems modernizations. 

Treasury and OMB designated these organizations after a comprehensive application process that included leadership commitments, system evaluations, reviews of plans for scaling operations, and determinations that the providers have the capabilities to address the requirements of cabinet level agencies. Additional providers or product offerings may be designated in the coming years as more agencies look to move to shared services and lessons are learned from the initial four providers.

Beth Cobert is the Deputy Director for Management at the Office of Management and Budget

Dick Gregg is Fiscal Assistant Secretary at the U.S. Department of the Treasury

Posted in:  Fiscal
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