FMS and BPD to Consolidate as Fiscal Service, Transforming Government's Financial Management and Shared Services

By David Lebryk, Commissioner of the Financial Management Service

The biggest news affecting the Financial Management Service (FMS) this year is a proposal in the President's Fiscal Year (FY)2013 Budget to consolidate FMS and the Bureau of the Public Debt (BPD) into a single organization named the Fiscal Service.

The consolidation will not affect our day-to-day operations or the high level of service in providing payments, collections, government-wide accounting and collection of delinquent debt. Both federal agencies and the American public should not experience any disruptions or changes when relying on our services.

There are many reasons for the consolidation:

  • FMS and BPD can achieve greater operational and administrative efficiencies by combining our resources;

  • Treasury and the Office of Management and Budget have asked us to take on a greater role in financial management across the federal government because of both bureaus' commitments to, and reputations for operational excellence;

  • While budgetary pressure is not the primary reason for consolidating, we expect there will be increasing challenges in the future to find cost savings and efficiencies in how we administer our programs and carry out our missions.

We will continue to work with our agency partners in the coming months to provide a seamless transition to the new Fiscal Service.

At the same time, FMS continues its ongoing efforts to modernize its systems and technologies to provide more efficient and better service to our customers. FMS is undertaking a series of modernization initiatives which will improve and streamline collections and payments, improve the quality and integrity of government-wide accounting data, and reduce costs government-wide. We are scheduled to complete a number of major systems initiatives by the end of Calendar Year (CY)2012, and agencies are expected to be in compliance with new systems requirements by the end of FY2014. These initiatives will affect every federal agency across government.

I have sent two letters to all of the Chief Financial Officers (CFOs) in federal government agencies regarding these initiatives. The first, sent on Jan. 14, 2011, announced the modernization initiatives, while the second, sent on March 23, 2012, provided updates on the progress of these initiatives and a review of upcoming requirements, schedules, and deadlines that agencies must meet. Both of these letters are available on the FMS website at www.fms.treas.gov/cfo_lttr.html.

In addition to these letters, Deputy Commissioner Wanda Rogers, FMS executives and I have been meeting with the CFOs from a number of agencies to discuss the modernization initiatives. These meetings have proven extremely productive in opening communications channels and developing efficient implementation strategies, contingency planning and enhanced understanding of the particular agency needs to better align FMS's efforts. We expect to have further discussion with the CFOs in the coming months on this topic.


   Last Updated:  July 26, 2012