Financial Management Systems

Book excerpt: In March 2004, the Office of Management and Budget (OMB) launched the financial management line of business (FMLOB) initiative, in part, to reduce the cost and improve the quality and performance of federal financial management systems by leveraging shared service solutions and implementing other reforms. In March 2006, it was reported that OMB's approach did not fully integrate certain fundamental system implementation-related concepts and recommended OMB take specific actions. This report discusses: (1) OMB's progress in addressing prior FMLOB recommendations and implementation challenges; and (2) the effectiveness of OMB's monitoring of financial management system modernization projects and their costs. Illus.