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U.S. Department of Health and Human Services

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Unified Financial Management System (UFMS)

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What is the purpose of UFMS?

Through the UFMS project, HHS seeks to establish a unified approach for enhancing financial management performance across the Department's 12 component agencies and the Program Support Center.  UFMS will eliminate duplication, streamline and standardize processes, and establish a common IT infrastructure for financial management.

The investment also will help HHS achieve the following strategic objectives:

  • Eliminate five redundant and outdated financial systems by implementing a modern integrated HHS-wide system that consolidates core financial management functions into a shared services environment.
  • Produce accurate, timely, reliable, and relevant financial information to help HHS managers more accurately assess the cost of HHS programs, make fact-based operational decisions and prepare financial reports and statements.
  • Strengthen internal controls by instituting standard business rules, data requirements, and accounting policies across HHS.
  • Streamline operational activities to achieve more efficient and cost effective business performance.


What is the problem we are trying to solve?

The UFMS investment is intended to eliminate HHS's reliance on the multiple financial legacy systems used by HHS component agencies, as well as a large number of computer system interfaces to its administrative systems.  The existing enterprise architecture for financial management in the Department consists of disparate, decentralized reporting systems, which are mainframe-based, rely on a mix of manual and automated processes, and are supported by varying functional and technical practices among component agencies.  Since HHS and its supporting operating divisions implemented these systems, both the executive and legislative branches of the federal government have enacted statutes and implemented regulations to enhance accountability and results through improved financial management.  Central agencies such as the Office of Management and Budget and the Department of Treasury, as well as organizations such as the Joint Financial Management Improvement Program and the Federal Accounting Standards Advisory Board, also have issued financial management policies, standards, and other mandates that require improvements in federal financial management systems.

In addition to the continued changes in federal financial management regulations that are driving HHS toward a more comprehensive approach to meeting its financial management obligations, the Department's auditors have reported that HHS's underlying financial systems from which financial statements are reported and prepared do not meet all applicable requirements.

Rapid advances in technology, a compliance environment that increasingly emphasizes more accountability, and evolving customer needs and expectations are other factors driving HHS's move toward implementing modern, integrated financial management systems and operations.


How will FDA use the funds for UFMS?

During FY 2007, the Department will continue to implement the remaining operating divisions into the UFMS environment.  To accomplish this, FDA will also need to continue its involvement with the Global Program Management Office and the Operations and Maintenance Center of Excellence in all testing activities associated with new UFMS releases.  The Service and Supply Fund will support the Operations and Maintenance activities of UFMS.  In FY 2007, FDA will also use funds for:

  • Contractor support to achieve system enhancements and updates.
  • Training for new hires and refresher or advanced training for FDA users.
  • Vendor support for reporting tools and licenses.
  • Continued stabilization efforts.

Communications and Change Management will continue to play a major role in the effectiveness of UFMS.  Information about system and process changes needs to be communicated throughout the FDA in a timely manner so users can remain productive.  Additionally, communications to the entire FDA regarding system enhancements, updates, outages, and new releases must be maintained.  FDA must also continue its change Management efforts relating to workplace and workforce changes brought about by UFMS.


Projected Funding Provided by UFMS and Service and Supply Fund (SSF)
Program FY 2006
Enacted 1
FY 2007
UFMS Project $4,285,000 $2,328,000
UFMS O & M/Post Deployment $3,273,000 $3,163,000
Agency Specific $5,338,000 $7,103,000
Administrative System Coordination and Implementation $0 $1,482,000
Total $12,896,000 $14,076,000

1 Includes the 1 percent rescission.


<< Return to FY 2007 Budget Summary