Treasury Department Building

Financial Innovation & Transformation (FIT)

Shared Services

The Office of Management and Budget (OMB) Memorandum M-13-08, "Improving Financial Systems through Shared Services", directed the Office of Financial Innovation & Transformation (FIT) to facilitate government agencies' use of shared services for financial management.

OMB M-13-08 directs agencies to:

  • move from agency-specific financial systems to federal shared service providers (FSSPs)

  • consolidate financial management systems

  • use existing FSSP operations and maintenance teams to support systems and infrastructures

OMB M-13-08 also directed FIT to work with the federal financial management community to design and carry out improvements to the current FSSP framework.

What problem was FIT seeking to solve?

FIT sought to reduce cost and improve quality, performance, and reporting commonly associated with agency-specific, large-scale financial system modernization projects. Using a Federal Shared Services Provider (FSSP) allows agencies to:

  • focus on the agency's primary mission

  • use information and analysis to make better decisions

  • avoid costs associated with creating and maintaining the agency’s own systems

  • reduce risk associated with system failures

  • achieve greater efficiency and cost savings

  • adopt new government-wide requirements more easily

  • standardize data, allowing for more transparency

What solutions did FIT pursue?

To facilitate the adoption of financial management shared services, FIT initiated the following suite of solutions.

FSSP Designation

M-13-08 instructed FIT to give OMB recommendations for potential FSSPs to be designated for the financial marketplace. FIT implemented a consistent process to select qualified FSSPs to serve federal agencies.

FIT created a process for selecting the FSSPs with the aid of federal agencies and private industry. The four FSSPs that were selected as a result of FIT's process were:

Helping agencies modernize

To support Office of Management and Budget (OMB) Memorandum M-13-08, "Improving Financial Systems Through Shared Services", the Office of Financial Innovation & Transformation (FIT) developed a framework to guide CFO Act agencies through a shared service migration to a designated Federal Shared Service Provider (FSSP).

The framework began when a CFO Act Agency identified a need to migrate its financial system and ended when the implementation is complete.

Financial Services Catalog

In support of OMB Memorandum M-13-08, FIT prepared a way to guarantee that FSSPs were supplying the same basic level of financial services to their customers.

FIT prepared the Federal Financial Management Services Catalog to help federal agencies procure financial management services from FSSPs. The catalog supported the federal government’s move to improve transparency and standards across financial management shared services in the following ways:

  • Identified and defined the mandatory financial management shared services that FSSPs must offer

  • Defined the common outputs generated from these services

  • Presented pricing considerations and providers’ unit prices for these services

  • Served as a source for sharing up-to-date information based on actual prices and services

Customer Satisfaction Survey

FIT looked for a way to check that FSSPs continued to deliver high quality financial management services to their federal agency customers.

As a means for measuring the performance and service delivery of FSSPs, FIT sent a customer satisfaction survey to current FSSPs and their customers. The goal of the survey was to establish a consistent, government-wide baseline of FSSP quality levels for financial management.


FIT discovered that a performance management framework did not exist to assess, monitor, and grow the capabilities of FSSPs.

To address this issue, FIT developed the groundwork for ProviderStat, a framework to identify and prioritize opportunities for improvement to FSSP operations. ProviderStat aligns with FedStat to provide transparency in the operational performance, investments, and governance of shared service centers. This process also aims to increase accountability for the delivery of shared services to government agencies.

How to learn more about Shared Services:

In support of OMB Memorandum M-16-11, "Improving Administrative Functions through Shared Services", issued in May 2016, FIT transferred primary responsibility for these above initiatives to the General Services Administration (GSA) Office of Unified Shared Services Management (USSM).

OMB assigned USSM responsibility for overseeing government-wide shared service projects across the financial, acquisitions, and human resources lines of business.

As the Managing Partner of the Financial Management Line of Business (FMLOB), FIT continues to collaborate with USSM on activities affecting the federal financial management community.

For more information: see http://www.ussm.gov/

Quick References

OMB 16-11, Improving Administrative Functions Through Shared Services

Circular No. A-123 Appendix D, Compliance with the Federal Financial Management Improvement Act of l996

OMB M 13-08, Improving Financial Systems Through Shared Services

OMB M 10-26, Immediate Review of Financial Systems IT Projects

Open Gov   My Money.gov   USA.gov
Linked In   Twitter   Facebook   You Tube   RSS Feed