Department of Defense Cash Accountability Strategy · Department of Defense Cash Accountability Strategy National PDI ... Treasury issued a memo requiring all Federal Agencies to

Department of Defense

Cash Accountability Strategy

National PDI

Workshop #51

June 2, 2016

Improved Cash Accountability

Alaleh Jenkins, Assistant Deputy Chief Financial Officer

Michele Gaw, DFAS – Director, Accounting Standards & Reporting

2

Agenda

• Overview

• Current State and Challenges

• Where We Are Now

• Problem Statement

• Cash Accountability Strategy

• Overview

• Strategic Initiatives

• Implementation Strategy

• Phased Approach

• Target State

• Key Take Aways

• Stay Connected

Overview

3

What is Cash Accountability?

• Process for balancing, reconciling, and reporting

disbursements and collections data to US Treasury

throughout Department of Defense’s (DoD’s) end-to-end

business processes

Why is it important?

• Provides Stewardship and Public Trust through

Transparency

• Standardizes and Improves Financial Data Quality

• Streamlines the Financial Management (FM) Environment

• Supports Audit Sustainability

Entitlement

DisbursementReconciliation

Reporting

1

2

3

4

3

Current State and Challenges

Where We Are Now

44

• Requirements

– In January 2011, Treasury issued a memo requiring all Federal Agencies to begin daily

reporting of its disbursements and collections versus at the end of the month by Fiscal

Year 2014.

– In accordance with the Treasury Financial Manual (TFM) and the DoD Financial

Management Regulation (FMR), Federal Agencies must post all transactions that affect

FBWT to the United States Standard General Ledger (USSGL) account 1010 in their

general ledgers and reconcile their USSGL account 1010 balances for each account to

Treasury’s records on a monthly basis.

• Problem Statement

– Depending on the Component and its Service Provider’s location, DoD’s Treasury

Reporting process can vary based on process steps and multiple legacy Information

Technology (IT) systems making it difficult to fully reconcile DoD’s FBWT.

Current State and Challenges

Problem Statement

DoD must be able to trace our cash and balance our “check book” at the

appropriation-level with Treasury (the “bank”).5


Overview

6

FBWT Reconciliations

Daily Reconciliations

Sub-AllotmentsExecution and internal

controls

Cash Traceability and Central Accounting

Reporting System (CARS) Implementation

Daily Reporting

Intra-Governmental Transactions/G-Invoicing*Standard buy/sell processes

Direct Treasury Disbursing

Centralized post-pay actions in Treasury

systems

AuditabilityResults Outcomes

• Daily traceability of all outlays/collections

• Daily validation of accuracy of disbursements and collections

• Daily reconciliation of Treasury accounts with Component accounts

• Daily reconciliation of Treasury CARS to GL

• 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

Legacy Systems Drawdown

Transitions and sunsetting

Disbursing Station Symbol Number

(DSSN) Drawdown Reporting1219/1220

Funds DistributionElectronic Funds

Distribution (EFD)

Government wide Treasury Account Symbol

Adjusted Trial Balance System (GTAS)

Single reporting requirement

OUSD(C) has a multi-point strategy for improving DoD’s Cash Accountability.

Data ValidationStandard Financial

Information Structure (SFIS)

OversightImplement

enterprise standards

Change Management

Promote organizational

change

6


Strategic Initiatives

7

Strategic Initiative Description Benefits

CARS

Implementation

Transition to daily reporting from

monthly reporting

Complies with Federal mandate

Eliminates Statements of Differences

Daily FBWT

Reconciliation

Perform daily reconciliations

between Treasury accounts in

CARS to Component accounts in

the accounting systems

Provides real-time cash balancing with

Treasury

Identifies potential reconciliation

issues daily resulting in corrective

actions prior to month–end budgetary

reporting

Reduces use of clearing accounts and

unsupported journal vouchers

Current State Future State

Month-End Month-End

7



8


Direct Treasury

Disbursing

Transition ERPs/accounting

systems and entitling systems to

Treasury Direct Disbursing

systems

Send and Receive data directly from

Treasury – the authoritative source for

financial data

Disburse directly from Treasury at no

cost (which complies with OMB

requirements to utilize federal shared-

services providers (FSSP))

Aligns with ERP out-of-the-box

functionality (requiring less

customization and reducing costs)

8


Originating ERP/

Entitlement System

(e.g., DAI, CAPS-W,

etc.)

Disbursing Non-

Treasury Direct

Offices/Systems

(e.g., MOCAS, ADS,

etc.)

Treasury Reporting

Systems

(e.g., DCAS, HQARS,

etc.)

US Treasury

Originating ERP/

Entitlement System

(e.g., DAI, CAPS-W,

etc.)

US Treasury



9


Data Management

(“Handshakes”)

Generate and pass standard

financial data between systems

using a central hub

Reduces number of point-to-point

interfaces

Provides transparent, auditable and

traceable data throughout DoD’s end-

to-end business processes that flows

to the financial statements


9



10


Data Validation Validate financial transactional data

using the Standard Financial

Information Structure (SFIS) prior

to payment of a transaction

Stops the “pay and chase” practice

and eliminates need for rework at the

end of the process

Improves data quality and consistency

between systems and across business

processes, and minimizes journal

vouchers needing to be posted

Procurement

Receipt and Acceptance

Entitlement

Disbursing

Reporting

Procurement

Receipt and Acceptance

Entitlement

Disbursing

Reporting


Validation

Validation

Validation

Validation

Validation

10

11

Implementation

DFAS GWA Compliance Plan and the

Strategy for FBWT:

Connecting the Dots

DoD Strategy for Fund Balance with Treasury (FBWT)

12*Covers more than 99.9% of the disbursement process

Current

Day

ERPs/Accounting

Systems

Entitling Systems

(MOCAS,

OnePay, DCPS,

etc.)

DailyDisbursing

Systems (ADS,

DDS)

Monthly

Departmental

Systems (HQARS,

DCMS, DCAS)

Monthly Treasury

Entitling Systems

(MOCAS,

OnePay, DCPS,

etc.)

DailyDisbursing

Systems (ADS,

DDS)

ERPs/Accounting

Systems

Treasury

Daily

(PIR)

Daily,

DirectPhase 2:

ERP Transition

to Direct

Treasury

Disbursing

ERPs/Accounting

Systems

Entitling Systems

(MOCAS,

OnePay, DCPS,

etc.)

DailyDisbursing

Systems (ADS,

DDS)Treasury

Daily

(PIR)

Phase 1:

Transition to

Daily

Reporting

ERPs/Accounting

Systems

Entitling Systems

(MOCAS,

OnePay, DCPS,

etc.)

DDS

Daily,

Direct Treasury

Target State*:

All Direct

Treasury

Disbursing

(except

deployed or

tactical)

Implementation Strategy

12

Integrity - Service - Innovation 136/21/2016

DOD CARS Implementation Strategy – April 2016

13


FY 2017FY 2016 FY 2018

IPA

C

Planned Implementation

DCAS Reconciliation NTDO/TDO

FY 2017

DoD Transition to OTCnet /CIR

REC

LASS

WG Interfund - solution

Decision Point

Navy DSSNs Implementation process

CO

LLEC

TIO

NS

& P

AY

MEN

TS

NTD

OTD

O/T

REA

SUR

Y

DIR

ECT

Collaboration with Stakeholders

Actual Implementation

LEGEND DEPENDENCY

Army DSSNs Implementation process

SRF/PIR/GEX Disbursing System Changes Solution for implementing Collections

Navy Ships DSSN Drawdown and Conversion to DDS

Solution for implementing Interfund

4

Army DSSNs

SRF/PIR/GEX System Changes1 3

Navy MOCAS DSSNs

5

S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S

System Implementation

Business Process Changes

Air Force DSSNs Implementation process

CDS Retirement (Estimated Completion Sept 2018)

Air Force DSSNs5

Navy DSSNs5

NTD

O IP

AC

6CIHO-approved accounts

Army and Air Force MOCAS DSSNs 5

DRAS 2Jan, 2019

2

2

2

2

2

2

2

2 2Navy Interfund Implementation

CIHO Implementation Reporting Strategy

Implement DCAS BI tool additional functionality (A3 recon, reclass, detailed reports)

Army & AF Interfund Implementation2

2

Implement DCAS BI tool additional functionality (A3 recon, reclass, detailed reports)

Implement DCAS BI tool new functionality (A2 recon)

Implement DCAS BI tool additional functionality (Interfund: A3 recon, reclass, detailed reports)

GFEBS - partial Payments (EFT & Checks)

Oct 2014 EBAS/JS - partial Payments (EFT & Checks)

EBS - partial (EFT only)

WHS – partial Payments

2

2

Jan 2015

Jan 2016

Oct 2015

1 1 1

5

OUTSTANDING DECISIONS1. GEX Interface Solution System Readiness Dates2. DCAS BI tool3. SRF to PIR Format (including Sensitive data)4. CIHO Line of Accounting5. (ADS, DDS, CDS, DCAS) Implementation Dates6. Interfund Reporting Strategy


Phase 1: Transition to Daily Reporting

ERPs/Accounting Systems

Entitling Systems (MOCAS, OnePay, DCPS, etc.)

Daily

Disbursing Systems (ADS, DDS)

Treasury

Phase 1: Transition to Daily

Reporting

&P

AY

MEN

TS

NTD

O C

OLL

ECTI

ON

S

DCAS Recon NTDO SRF/PIR/GEX System ChangesDSSN Drawdown – DFAS and Components (ships)DoD Transition to OTCnet/CIR

Daily(PIR)

14



Phase 2: Transition to Treasury Direct Disbursing


Daily

Disbursing Systems (ADS, DDS)


Treasury

DCAS Recon NTDO SRF/PIR/GEX System ChangesDSSN Drawdown – DFAS and Components (ships)DoD Transition to OTCnet/CIR

Daily(PIR)

Phase 2: ERP

Transition to Direct Treasury

Disbursing

TDO

TR

EASU

RY

DIR

ECT

DCAS RECON TDOJS (partial) | GFEBS (partial) |WHS (partial) | EBS| DRAS2

Daily, Direct

&P

AY

MEN

TSN

TDO

CO

LLEC

TIO

NS

15


Target State

*Covers more than 99.9% of the disbursement process



DDS

Daily, Direct Treasury

Target State*: All Direct Treasury

Disbursing (except

deployed or tactical)

16

FRO

M P

HA

SES

1 &

2A

LL S

YST

EMS

Assumptions:

ADS and CDS have been retired

DDS continues to be used for the deployed environment

MCTFS, MOCAS, One Pay, DCPS, etc…converted from NTDO to TDO

Interfund included (via Reclass) (does not flow through disbursing today)

IPAC included – assuming with connection to G-Invoicing (formerly IPP)

HQARS and DCMS Treasury reporting functionality have been subsumed

DCAS reconciliation capability fully developed and implemented

Other critical dependencies have been resolved

16


• FBWT Strategy

– Focused on Payments

• Need more attention to development of reconciliation tools

– Assumes ERPs will move to TDO

– Relies heavily on GEX

• Development, implementation, maintenance

• DFAS GWA Strategy

– Aligns to FBWT Strategy

– Focused on Operational Needs and Critical Dependencies

• Daily Reconciliation Development

• DCAS – Mission changes from “Treasury Reporter” to Expenditure

Distribution & Reconciliation

• Ships (DROO part of RLS)

Summary

1717


The Department’s Cash Accountability strategy is

dependent on our ability to demonstrate the following:

– Standardizing business processes across the Department

– Complying with Treasury mandates

– Balancing our “check-book” with Treasury daily

– Passing all financial information through a central hub instead of creating multiple point-

to-point interfaces

– Implementing and validating standard data language across all financial systems

Key Take Aways

18

We all need to embrace and encourage new ways of doing business (change

management). Cash Accountability is not just aligned to Financial Management –

it spans across all Functional communities. 18

Key Take Aways

• Visit the FIAR websitehttp://comptroller.defense.gov/FIAR.aspx

• Read the FIAR Plan Status Report

http://comptroller.defense.gov/fiar/plan.aspx

• Subscribe to the DCFO’s

‘Defense Audit Readiness News’Join the distribution list by emailing

[email protected]

19

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Documents

Department of Defense Cash Accountability Strategy · Department of Defense Cash Accountability Strategy National PDI ... Treasury issued a memo requiring all Federal Agencies to