CFOs: Surviving in a New Era - AGA
CFOs: Surviving in a New Era - AGA
CFOs: Surviving in a New Era - AGA
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22<br />
the importance of the <strong>in</strong>formation they want,<br />
which helps them and f<strong>in</strong>ancial executives<br />
reduce the number and frequency of compliance<br />
requirements and reports. Other <strong>CFOs</strong> have<br />
managed to avoid a good deal of report<strong>in</strong>g and<br />
audits other than those required by statute. A<br />
federal f<strong>in</strong>ancial executive says <strong>CFOs</strong> must do<br />
this because “Report<strong>in</strong>g requirements are always<br />
grow<strong>in</strong>g, which offsets any small sav<strong>in</strong>gs we’ve<br />
been able to f<strong>in</strong>d elsewhere.”<br />
“Real sav<strong>in</strong>gs will come when central agencies take the lead<br />
<strong>in</strong> consolidat<strong>in</strong>g duplicate and similar activities across<br />
government. This goes for f<strong>in</strong>ancial and nonf<strong>in</strong>ancial activities.”<br />
— a f<strong>in</strong>ancial executive<br />
“My entity’s senior leaders are do<strong>in</strong>g a better<br />
job this year at be<strong>in</strong>g selective of special projects<br />
they assign to my f<strong>in</strong>ancial branch,” says<br />
a f<strong>in</strong>ancial executive, “But the real sav<strong>in</strong>gs will<br />
come when central agencies take the lead <strong>in</strong><br />
consolidat<strong>in</strong>g duplicate and similar activities<br />
across government. This goes for f<strong>in</strong>ancial and<br />
nonf<strong>in</strong>ancial activities.”<br />
Many executives say that f<strong>in</strong>ancial functions<br />
need to determ<strong>in</strong>e the relevance of all their activities<br />
through <strong>in</strong>dependent performance audits,<br />
management studies, Lean, Six Sigma, reeng<strong>in</strong>eer<strong>in</strong>g<br />
projects and bus<strong>in</strong>ess analytics. Some say<br />
they need outside technical assistance and advice<br />
for these activities, followed by tra<strong>in</strong><strong>in</strong>g <strong>in</strong>-house<br />
staff <strong>in</strong> how to use them.<br />
Transactions and report<strong>in</strong>g<br />
Transaction activities are go<strong>in</strong>g to have to<br />
cont<strong>in</strong>ue at whatever volume is required.<br />
Reeng<strong>in</strong>eer<strong>in</strong>g or automat<strong>in</strong>g transaction processes<br />
could be a major money saver (but see<br />
Innovation above – some f<strong>in</strong>ancial offices are<br />
bare bones already). Us<strong>in</strong>g IT to push transaction<br />
work steps to customers such as nonf<strong>in</strong>ancial<br />
managers could save money for the f<strong>in</strong>ancial<br />
function but is not advisable unless there is a<br />
net sav<strong>in</strong>gs to the government or net ga<strong>in</strong> <strong>in</strong><br />
value to customers.<br />
• Expand use of government charge cards<br />
for travel, fleet fuel and other small or<br />
medium purchases — it saves money on<br />
transaction process<strong>in</strong>g, reduces late payments<br />
and garners rebates.<br />
• Introduce fast pay procedures to avoid <strong>in</strong>terest.<br />
• Produce electronic reports only<br />
— no more pr<strong>in</strong>t<strong>in</strong>g. 5<br />
• Get rid of redundant reports, such as fourthquarter<br />
analyses on spend<strong>in</strong>g or improper<br />
payments, along with studies for programs that<br />
are unlikely to be funded.<br />
• Elim<strong>in</strong>ate <strong>in</strong>ternal reviews of required reports<br />
that are never used <strong>in</strong>-house.<br />
• Simply communicat<strong>in</strong>g with other functions<br />
and with l<strong>in</strong>e operations can save money.<br />
• Keep assets visible to everyone <strong>in</strong> an<br />
entity; this leverages sav<strong>in</strong>gs <strong>in</strong> the entire<br />
<strong>in</strong>ventory, whether the assets are repair<br />
parts or <strong>in</strong>formation.<br />
Good communications is important when it<br />
comes to sav<strong>in</strong>g money on reports. “People do<br />
not always ask the right questions. We do not<br />
always understand what they are ask<strong>in</strong>g. We need<br />
to pick up the phone and clarify what they’re<br />
look<strong>in</strong>g for versus runn<strong>in</strong>g around.”<br />
5<br />
In 2011, a U.S. Bureau of Prisons employee won an award for a<br />
simple idea that saves an estimated $16 million a year: send the<br />
Federal Register to federal workers onl<strong>in</strong>e <strong>in</strong>stead of by mail.