NATO
Takes Command
Continued
Mobilizing Development Resources
The first CNAFS implementation phase (CNAFS 1.0) was completed with a limited budget and in a strict time frame between September and December 2005. It has been in use by the NCSA headquarters and 16 remote NCSA elements since January 2006. The second CNAFS phase (CNAFS 2.0) was implemented between August and December 2007. Oracle Consulting helped roll out the new system at three Allied Command Transformation sites. Adopting a centralized financial system results in faster access to data, shortens procurement cycles, and simplifies administrative activities—allowing NATO to make more staff available for core activities. The system also gives a better view of cash flow and optimizes banking transactions.
For example, if a requester wants to purchase equipment for a mission in Turkey, the request, the financial information, the contract, and all relevant backup documentation flow electronically through an established workflow. Remote sites connect to the central financial applications through a secure virtual private network tunnel over the internet. When a fiscal officer at headquarters gets a notification in the workflow, with all the justifications and a proper description attached, he or she can approve it immediately. “Because the payments are centralized and the workflow is automatic, it is much more efficient, much more transparent, and much easier to consolidate the financial data,” explains Declerck.
Giving Credit to Allies in the Field
Wolf credits Oracle Consulting for the speedy CNAFS implementation, which delivered basic functionality in just four months. “During the implementation, Oracle agreed to and successfully used NCSA quality assurance and configuration management standards, tools, and processes,” he says. Wolf also acknowledges the unwavering participation of senior users and application administrators at NATO’s Headquarters Supreme Allied Commander Transformation, Joint Warfare Centre, and NATO Undersea Research Center. “Forming close partnerships with commercial IT providers ensures the best combination of military support and state-of-the-art commercial practices in a cost-effective manner,” he says.
This successful rollout has boosted confidence within the NCSA user community and helped to facilitate user acceptance among other NATO organizations. In addition to complying with international public-sector accounting standards, the centralized system provides more-meaningful and more-timely information about NCSA’s own operations, which are integral to the worldwide organization. NCSA provides corporate-level accounting and treasury services to NATO, including maintaining the official centralized accounts and producing financial statements for the member nations. In addition to overseeing operations for this important NATO agency, Wolf’s organization supports NATO military commanders throughout Afghanistan, Iraq, and the Balkans. Whenever NATO deploys operations or exercises, NCSA provides CIS services in support of the mission.
Oracle E-Business Suite Financials meets financial reporting and tax requirements with one accounting, tax, banking, and payments model. Having a cohesive software infrastructure is the foundation for rolling out shared services across businesses and regions. In NATO’s case, Oracle E-Business Suite reduces the number of paper documents that must be handled by NATO personnel, such as requisitions and travel requests. “This is the first integrated financial system that will allow NATO to cover most of the obligations imposed by the NATO financial regulations in one single system,” says Wolf. While property and inventory accounting has been an obligation for many years, the figures have never been included in the financial statements and in the underlying systems, he adds. This should change with the full implementation of CNAFS.
For members of the NCSA accounting staff, the centralized system reduces data input exercises and consequently the number of errors. This has a corollary effect of reducing the number of staff required.
Additionally, centralization will make life easier for system administrators. The central help desk personnel will soon be supporting the same system, rather than responding to different issues at each site, which brings tremendous economies of scale to NATO operations. “From a technical point of view, centralization simplifies database administration, software upgrades, and user management activities,” says Declerck.
Pending approval from NATO headquarters, Lieutenant General Wolf foresees further expansion of CNAFS at 17 additional sites in conjunction with Oracle Consulting. “CNAFS will be a model for other NATO commands going forward,” he predicts. “All these elements contribute to a more efficient and effective NATO.”
For More Information
Oracle E-Business Suite
Oracle User Groups and NATO
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