News Release

HHS Achieves Major Step Forward in Modernizing Its Financial Management System

HHS announced today that it has taken a major step forward in modernizing and streamlining its financial management system by implementing the Unified Financial Management System (UFMS) at its headquarters and seven of its ten agencies.

�UFMS is a multi-dimensional system that will provide decision makers and others with reliable and timely financial information to support the business operations at all levels throughout HHS,� said Kerry Weems, HHS Deputy Chief of Staff and UFMS executive sponsor. �This effort is one of the largest financial system implementations in the federal sector. It is a significant accomplishment that will contribute greatly to our mission.�

As an example of the benefits of UFMS, the system will allow HHS to maintain common information on its vendors and their contract performance. Previously, this information was not in one central place, requiring each agency to maintain its own database of vendors with which they did business. UFMS helps eliminate these redundancies and allows HHS to more effectively manage contracts and analyze vendor performance.

In addition to the ability to eliminate reliance on the multiple accounting systems previously used by HHS component agencies, UFMS allows HHS to take advantage of rapid advances in technology to better emphasize accountability and evolving customer needs and expectations.

UFMS has been operational in the Centers for Disease Control and in the Food and Drug Administration since April 2005. This month�s �go-live� brings seven other HHS agencies under the UFMS umbrella, including: the Office of the Secretary, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Healthcare Research and Quality, Administration for Children and Families, Administration on Aging, and Program Support Center.

The UFMS is built using a federally-certified commercial off-the-shelf software package called Oracle� Federal Financials, a part of Oracle E-Business Suite, which is used by a number of other federal agencies. Using a commercially available off-the-shelf product carries the advantages of building in commonly accepted financial industry standards and reducing the costs and risks of building an entirely new customized system. HHS contracted with BearingPoint, Inc., a business consulting and systems integration company, to assist with the development and implementation of the UFMS.

More information on the UFMS is available on the Web at http://www.hhs.gov/ufms.

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last revised: October 26, 2006