SO-OCFO-Financial Management Modernization Initiative (FMMI)

Implementation of FMMI will allow USDA to be in compliance with OMB, USDA and to receive a clean audit opinion. The Benefit-to-Cost Ratio is 41%. The chosen alternative, In-House Solution, was the preferred alternative. Relative to the other alternatives considered, it is it is less costly, less risky and is anticipated to provide USDA with greater benefits (both financial and non-financial) compared to the other options. By selecting and implementing its own COTS software, and hosting its hardware in-house, USDA maximizes its flexibility and management control, and minimizes the risks associated with the investment. This alternative also provided the USDA the opportunity to become a certified COE. The COE offers hosting services to other Federal agencies and enhancing competition in the emerging COE market . Cost savings from the investment are expected due to lower overall steady state operating costs for the In-House Solution relative to the status quo environment. These cost savings are currently estimated at $206.9 million from FY 2011-FY 2020 (in discounted, risk-adjusted dollars), or roughly $20 - $23 million in annual operations and maintenance cost savings (in discounted, risk-adjusted dollars). The FMMI project addresses the need for improved financial performance through a modern financial system that provides maximum support to mission. The technical benefits for FMMI include: - Provides a single, operational web-based system for all USDA Agencies and Staff Offices and an enterprise-wide view of data; - Standardizes business processes; - Implements leading practices; -Provides reliable, relevant and timely data for general accounting, funds management and financial reports; and - Enables single sign-on using USDA s eAuthentication system.

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