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Transforming Financial Management: New Compliance Standards and Shared Services

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In a significant shift towards modernization, the Financial Management Quality Service Management Office (FM QSMO) is enhancing the landscape of financial management across federal agencies. This initiative aims to streamline operations, improve compliance, and foster a marketplace for shared services, ultimately leading to more efficient financial systems.

Key Takeaways

  • The FM QSMO is evolving into a broker for financial management services, facilitating access to compliant solutions.
  • Approximately 47 financial management systems are identified for modernization, with 72% expected to require updates by 2035.
  • The marketplace has expanded from 4 to 20 providers in just two years, offering over 100 financial services products.
  • Recent contracts awarded through the marketplace total $183 million, indicating growing agency engagement.

The Role of FM QSMO

The FM QSMO, established by the Office of Management and Budget in 2019, is tasked with transforming the business model for shared services. Its primary responsibilities include:

  1. Offering and managing a software and services marketplace.
  2. Guiding the long-term sustainability of financial products and services.
  3. Driving the implementation of compliance standards.
  4. Continuously improving service offerings.

Steve Nulter, a senior business analyst at FM QSMO, emphasized the importance of modernization, noting that many legacy systems are still hosted on-premise, complicating updates and security enhancements.

Marketplace Expansion

Since its inception, the FM QSMO marketplace has seen remarkable growth. Initially starting with four providers, it has now expanded to 20, doubling in size year over year. This growth reflects a diverse range of offerings, from core financial systems to operational support services.

Recent contracts awarded through the marketplace include:

  • Patent and Trademark Office: Awarded a contract for a new core financial system.
  • Army’s Enterprise Business Systems: Engaged in a contract for financial management support, marking a significant step for the Defense Department.
  • Department of Homeland Security: Acquired financial management services through the marketplace.

Future Goals and Opportunities

Looking ahead, the FM QSMO aims to increase the number of providers by 200% by 2026. This ambitious goal is driven by the need for additional core financial solutions and ongoing agency acquisitions expected to materialize in 2025.

Nulter expressed confidence in achieving this target, highlighting the continuous engagement with industry partners to enhance the marketplace offerings.

Compliance in Home Health Operations

In parallel, the healthcare sector is also focusing on compliance through streamlined operations. Organizations are leveraging technology to meet the mandates of the Centers for Medicare & Medicaid Services (CMS) final rule, ensuring that home health and hospice agencies can efficiently navigate compliance requirements.

Conclusion

The ongoing changes in financial management and compliance standards signify a pivotal moment for federal agencies and healthcare organizations alike. By embracing modernization and shared services, these sectors are poised to enhance operational efficiency, improve compliance, and ultimately deliver better services to the public.

Sources

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