Federal Manager's Daily Report:
Tuesday, October 12, 2004

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In This Week's Issue
1. GAO: Lack of Disciplined Process Puts HHS Financial System 
at Risk
2. Senate Approves DHS Financial Accountability Bill
3. Contractor to Manage Government Lodging Program 
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1. GAO: Lack of Disciplined Process Puts HHS Financial System 
at Risk
The Department of Health and Human Services lacks a "disciplined 
process" for implementing its unified financial management 
system, and it has not reduced associated risks to acceptable 
levels, the Government Accountability 
Office has said. 

It said HHS began replacing five outdated accounting systems 
in 2001 with the UFMS. 

However, according to GAO, "the problems that have been identified 
in such key areas as requirements management, including developing 
a concept of operations, testing, data conversion, systems interfaces, 
and risk management, compounded by incomplete IT management practices, 
information security weaknesses, and problematic human capital 
practices, significantly increase the risks that UFMS will not fully 
meet one or more of its cost, schedule, and performance objectives."

HHS is scheduled to deploy the UFMS at the Centers for Disease 
Control and Prevention in October 2004, but it lacks "sufficient 
quantitative measures for determining the impact of the many process 
weaknesses" GAO and others have identified to evaluate its project 
efforts, according to GAO-04-1008.

The report called for well-defined requirements that could be 
traced from the beginning to assure the system would work as 
needed and that testing would root out defects before rolling 
out the entire system, and noted that HHS has little time in 
its schedule to correct those weaknesses and defects it does detect. 

HHS is at risk of "not achieving its goals of a common accounting 
system that produces data for management decision-making and 
financial reporting and risks perpetuating its long-standing 
accounting system weaknesses with substantial workarounds to 
address needed capabilities that have not been built into the 
system," said GAO.

2. Senate Approves DHS Financial Accountability Bill
The Senate has passed final reform legislation bringing the 
Department of Homeland Security under the Chief Financial Officers 
Act of 1990, a measure aimed at 
increasing financial accountability in one of the government's 
largest agencies. 

Sponsored by Sen. Peter Fitzgerald, R-Ill., S 1567 is a companion 
to a bill approved in the House in July -- H.R. 4259 -- sponsored 
by Rep. Todd R. Platts, R-Pa., and if signed by the president, would 
require DHS to submit audited financial statements to the Office of 
Management and Budget and Congress. 

It would also require the chief financial officer of DHS -- the 
only cabinet-level department not subject to the CFO act -- to be 
confirmed by the Senate and report directly to the agency head.  

3. Contractor to Manage Government Lodging Program 
The General Services Administration has awarded a one-year, 
extendable contract to CW Government Travel Inc. to manage the 
federal premier lodging program. 

The award "plays an important role in the development of 
One-GSA-Travel,according to Tim Burke, GSA's eTravel Program Manager.

GSA said contracting the program is consistent with a July 
2003 government per diem advisory board recommendation to manage and 
market FPLP with an industry partner. 

A GSA and CWGT team will manage the transition, and CWGT will be 
expected to increase the number of hotels available through the 
program to federal travelers. Currently FPLP includes hotels in 90 
cites that guarantee rooms. 

The FPLP program coordinator, Rick Freda, called the award a 
"logical step for such a successful government program," adding that 
GSA would oversee the "hospitality management company." 

More information on the program can be found here: www.gsa.gov/fplp.

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