Defense Finance and Accounting Service (DFAS) andOUSD (Comptroller) Business Integration Office (BIO)

David Eaton, DFASMary Kemp, OUSD(C) BIO

Cash Accountability and TraceabilityOverview and Path Forward

18-May-15 | Slide: 2

•Vendor Pay

• Contract Pay

• Travel

• IPAC/IGT

• Interfund

• Transportation Pay

•Military Pay

• Civilian Pay

•Reimbursables

Do

DIn

itia

tive

s

InputBusiness Activities

Outputs Outcomes

Imp

rove

d A

ud

itab

ility

Fed

eral

Go

vern

men

t A

cco

un

tab

ility

Opportunities & Risk

Strategy & Resource Allocation

Future OutlookPerformance

Enterprise Business Model

Customer Driven Focus

Mission and VisionCompliance

• Compliance

•Direct to Treasury Disbursing

•DCAS Reconciliation

•Govt. Wide Accountability

• FIAR

Services/Assessable

Units

FM Functional Strategy

Fed

eral

Init

iati

ves

Cash Accountability Program Overview

18-May-15 | Slide: 3

Problem Statement

DoD FBWT auditability cannot be

sustained with today’s cumbersome

monthly cash reporting & recon

processes and disparate systems

4

Challenge Requirement

Source Document ErrorsUtilize data validation earlier in end-to-end business

processes

Inconsistent edits (ERP, entitlement, DCAS,

DDRS, Treasury)Leverage a standard validation service

Non-Standard Recon Processes and Tools Transition to a DoD Centric Model

Point to point interfaces Utilize a data broker in lieu of point-to-point interfacing

Large unsupported JVs and use of suspense

accounts to balance cash

Business Process that eliminates out of balances on a daily

basis

Compliance with US Treasury GWA/CARS

daily reporter mandate

Design DoD-wide process and align systems to ensure

compliance

Direct Cite/Cross-Disbursing Business

Process

Drive business process change to IPP or funding

realignment, minimizing Cross-Disbursing transaction

volume

DoD Challenges and Requirements

18-May-15 | Slide: 5

What is the Magnitude - Analyzing the Problem?

Problem Impact

Init

iati

ves

Ca

sh T

race

ab

ilit

y &

Rec

on

cilia

tio

n

Da

ta

Ma

na

gem

ent

Dra

wd

ow

n P

lan

Imp

lem

enta

tio

n

of

DSS

N P

aym

ent

&C

olle

ctio

ns

GTA

S P

roje

ct

IPP

Pro

ject

Trea

sury

D

isb

urs

ing

Pro

ject

In-Transits $26 Billion

Undistributed $3.9 Billion

Unsupported Accounting Entries

$164.46 Billion

Intra/Inter governmentalEliminations

$93 Billion

Budgetary / Proprietary Differences

$7 Billion

FBWT• Treasury Reports • Statement of Accountability

(SOA)/ Statement of Transactions (SOT)

• Year Closing Statement

18-May-15 | Slide: 6

DCD/DCWCentral data repository

Cash Traceability*Enterprise Daily Cash

Reporting and Traceability (DCAS)

Many Initiatives Affect FBWT:

Sub-Allotments*, **Execution and internal

controls

OversightImplement

enterprise standards

Change Management

Promote organizational

change

CARS Implementation

Reporting

IGT/IPP*Standard buy/sell

processes

Direct Treasury Disbursing*,**

Centralized post-pay

Auditability

Delinquent DebtManagement of delinquent debt

Results Outcomes

• Daily traceability of all outlays/collections via DCAS/GEX

• Daily validation of accuracy of disbursements and collections via GEX

• Daily reconciliation of Treasury accounts with Component accounts

• Daily reconciliation of Treasury CARS to GL via DCAS/GEX

• Reduction in reclassification entries

• Reduction in statement of differences, use of clearing accounts, or unsupported JVs

Data Management*,**Standard financial data/central data

broker

CollectionsReceivables

management

Existing Working Group

* Initiative directly relates to Audit Readiness, Daily Funds Balance w/Treasury (FBWT)/Cash Balancing Goals

** Initiative heavily enables Auditability & Strengthens Financial Controls or Maximize ERPs as Key Enabler

Legacy Systems Drawdown

Transitions and sunsetting

DSSN Drawdown Reporting1219/1220

Funds Distribution*, **Electronic funds

distribution

Contingency Operations

Support

GTASSingle reporting

requirement

Sensitive Activities

Classified data

CATWG

18-May-15 | Slide: 7

Initiative: Intragovernmental Transactions

System Improvement

• Establish enterprise data warehouse of intra-governmental transactions for audit, research and analysis

• Automate handshake and agreement between buyer and seller before settlement (reduces chargebacks)

• Leverage DoD Global Exchange (GEX) solution and Standard Line of Accounting (SLOA)

Standardization

• Establish common identifier to synchronize buyer and seller accounting transactions

• Establish proper general ledger treatment for all events

• Build common Intragov Data standard

Process Improvement

• Documented terms and conditions

• Documented performance and receipt

• Eliminate the pay and chase mentality

IGT Summary Process

18-May-15 | Slide: 8

Initiative: Cash Accountability Model

System Improvement

• Single system – Defense Cash Accountability System – to perform expenditure reconciliations

• Adapt legacy disbursing systems to perform daily disbursing using Treasury standards

• Reduce the number of systems reporting to Treasury

Standardization

• Formation of DoD Cash Accountability Working Group

• Expand development of data standards around a FBWT Business Enterprise Architecture

• Leverage Treasury Shared Services processes and procedures

Process Improvement

• Single DoD solution for Cash Reconciliation and Reporting

• Leverage ERP capabilities to perform Treasury Direct Disbursing functions

• Partner with Treasury and DoD Disbursing Offices to implement CARS and GTAS reporting

Cash Notional Target

18-May-15 | Slide: 9

Initiative: SLOA Validation Service

Systems Improvement

• Provide a mechanism that source systems can use to validate transactions prior to their dispatch on the E2E process

• Improve enterprise analytics through exposure of SFIS/SLOA financial data

Standardization

• Improve data quality by enforcing standard data structures for DOD financial information

• Exploit GEX to transport SLOA-compliant financial transactional data between core E2E financial, feeder, disbursing and reporting systems.

Process Improvement

• Supports Treasury/GWA modernization

• Standardization of reconciliation processes

• Improve data quality and consistency across entire E2E processes by reducing errors

SCS Integration

18-May-15 | Slide: 10

Questions?

Mary Kemp, OUSD(C) BIOmary.l.kemp12.civ@mail.mil

David Eaton, DFASdavid.m.eaton14.civ@mail.mil