IBM releases financial reporting software for agencies

IBM released software this week designed to help federal agencies meet new financial management requirements.

The software, based on IBM's financial management program for publicly traded companies, will allow agencies to automate reporting functions and monitor deadlines.

In January, the Office of Management and Budget ordered agencies to strengthen their internal financial controls by fiscal 2006. In addition, Congress and the Government Accountability Office are looking at how the 2002 Sarbanes-Oxley Act, which increases reporting requirements only for publicly traded companies, could be applied to federal agencies.

The software was modified to incorporate government financial management terms, such as "material weaknesses," and to create reports in the format required by OMB.

"With minor tweaks we were able to make it a very close match," said Rebecca Buisan, market manager for IBM Workplace Solutions.

Agencies are not yet using the software. An Education Department official said the agency has looked at the program, but declined to specify whether it would buy the software, which costs $28,750 per 25 users.

At the moment, the IBM product appears to be the only financial management software specifically created for federal agencies trying to meet the new OMB requirements.

"We've done a quick scan and haven't seen anything else that's out there," said Buisan.

Members of Congress and financial managers have long encouraged the use of commercial, off-the-shelf-software in place of customized products that tend to be much more expensive.

Buisan said the IBM software should help meet that goal, and savings should also be generated by the fact that the software uses standard government accounting terms. "It uses language that auditors are familiar with… We're cutting the number of hours [agencies] have to spend with external auditors," she said. She declined to specify the estimated savings for using the software because the company's figures have not been endorsed by a third party.

In addition to managing financial reports, the software also keeps track of who made changes to data and alerts employees to upcoming deadlines.