FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE DEFENSE AGENCIES.

SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE DEFENSE AGENCIES.(a) Financial Management Transformation Initiative.—(1) In general.—The Director of the Business Transformation Agency of the Department of Defense shall carry out an initiative for financial management transformation in the Defense Agencies. The initiative shall be known as the “Defense Agencies Initiative” (in this section referred to as the “Initiative”).(2) Scope of authority.—In carrying out the Initiative, the Director of the Business Transformation Agency may require the heads of the Defense Agencies to carry out actions that are within the purpose and scope of the Initiative.(b) Purposes.—The purposes of Initiative shall be as follows:122 STAT. 302(1) To eliminate or replace financial management systems of the Defense Agencies that are duplicative, redundant, or fail to comply with the standards set forth in subsection (d).(2) To transform the budget, finance, and accounting operations of the Defense Agencies to enable the Defense Agencies to achieve accurate and reliable financial information needed to support financial accountability and effective and efficient management decisions.(c) Required Elements.—The Initiative shall include, to the maximum extent practicable—(1) the utilization of commercial, off-the-shelf technologies and web-based solutions;(2) a standardized technical environment and an open and accessible architecture; and(3) the implementation of common business processes, shared services, and common data structures.(d) Standards.—In carrying out the Initiative, the Director of the Business Transformation Agency shall ensure that the Initiative is consistent with—(1) the requirements of the Business Enterprise Architecture and Transition Plan developed pursuant to section 2222 of title 10, United States Code;(2) the Standard Financial Information Structure of the Department of Defense;(3) the Federal Financial Management Improvement Act of 1996 (and the amendments made by that Act); and(4) other applicable requirements of law and regulation.(e) Scope.—The Initiative shall be designed to provide, at a minimum, capabilities in the major process areas for both general fund and working capital fund operations of the Defense Agencies as follows:(1) Budget formulation.(2) Budget to report, including general ledger and trial balance.(3) Procure to pay, including commitments, obligations, and accounts payable.(4) Order to fulfill, including billing and accounts receivable.(5) Cost accounting.(6) Acquire to retire (account management).(7) Time and attendance and employee entitlement.(8) Grants financial management.(f) Consultation.—In carrying out subsections (d) and (e), the Director of the Business Transformation Agency shall consult with the Comptroller of the Department of Defense to ensure that any financial management systems developed for the Defense Agencies, and any changes to the budget, finance, and accounting operations of the Defense Agencies, are consistent with the financial standards and requirements of the Department of Defense.(g) Program Control.—In carrying out the Initiative, the Director of the Business Transformation Agency shall establish—(1) a board (to be known as the “Configuration Control Board”) to manage scope and cost changes to the Initiative; and(2) a program management office (to be known as the “Program Management Office”) to control and enforce assumptions made in the acquisition plan, the cost estimate, and 122 STAT. 303 the system integration contract for the Initiative, as directed by the Configuration Control Board.(h) Plan on Development and Implementation of Initiative.—Not later than six months after the date of the enactment of this Act, the Director of the Business Transformation Agency shall submit to the congressional defense committees a plan for the development and implementation of the Initiative. The plan shall provide for the implementation of an initial capability under the Initiative as follows:(1) In at least one Defense Agency by not later than eight months after the date of the enactment of this Act.(2) In not less than five Defense Agencies by not later than 18 months after the date of the enactment of this Act.