Government-wide Accounting (GWA) What is it, how · PDF fileDefense Finance and Accounting Service Government-wide Accounting (GWA) – What is it, how does it impact us, and where

Defense Finance and Accounting Service

Government-wide Accounting (GWA) –

What is it, how does it impact us, and where are

we with achieving compliance?

Joe McCullough

Director, Enterprise Systems

May 29, 2014

Integrity - Service - Innovation

Purpose and Agenda

Purpose: To provide an update on the GWA initiative and DoD efforts towards

compliance

GWA Scope

CARS Overview

Treasury Mandate for CARS Compliancy

Magnitude of Impact - By DSSNs & Systems

Roadmap for Implementation

GTAS Overview

Current Transaction and Reporting

Future Transaction and Reporting

Integrity - Service - Innovation 2 6/11/2014

Government Wide Accounting (GWA) Scope


Government-Wide Accounting (GWA): Treasury FMS initiative streamlining central accounting, reporting and reconciliation processes

Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS)

Central Accounting and Reporting System (CARS)

CARS Overview

Central Accounting and Reporting System (CARS), is a Treasury initiative that is streamlining central accounting, reporting and reconciliation processes. It requires Federal agencies to capture a standard Treasury Account Symbol (TAS) and Business Event Type Code (BETC) at the earliest possible point for expenditure reporting, then posting directly to the Fund Balance with Treasury (FBWT), while transitioning Federal agency reporting from monthly to daily.

• Improved timeliness of reporting

• Improved and additional transaction reconciliation processes

• Reduced end-of-month reporting requirements

• Supports/supported by DoD Target Business Systems Environment (TBSE) and other Enterprise efforts to standardize Treasury and expenditure reporting processes

• Increase Standardization

• Standard Financial Information Structure (SFIS) Compliance with BEA 10.0 required by all ERPs, Enterprise, entitlement, accounting, indirect feeders, etc.

• Transition to daily reporting, reconciliation, and visibility of FBWT in CARS will improve timeliness, accuracy, transparency, and over all financial management of DoD data


Program Description

Benefits

Goals

Treasury/FMS Commissioner issued guidance in a memo dated January 14, 2011, requiring

all Federal Agencies to:

Transition from monthly reporting to daily Fund Balance with Treasury (FBWT) classification by

Disbursing Station Symbol Number (DSSN) or Agency Location Code (ALC)

Eliminate current month-end expenditure reports

SF 1219, Statement of Accountability (SOA)

Expenditure transactions reported

IPAC (Intergovernmental transactions)

Collections

Payments (Disbursements)

DoD, Disbursing Officer Cash

SF 1220, Statement of Transactions (SOT)

Transactions reporting changes to Treasury level TAS

Cross Disbursements

Reimbursable Billings

Accounting Adjustments

Collections/Disbursements

Interfund Billings (Appended)

Report standard data elements for all transactions Component Treasury Account Symbol (TAS)

Business Event Type Code (BETC)

Target Date October 1, 2014 DoD has encountered and reported challenges to achieving

compliance – forming a Cash Accountability Workgroup to address

Treasury Mandate for CARS Compliancy

Integrity - Service - Innovation 6/11/2014 5

TAS and BETC - Defined

TAS - Treasury Account Symbol aka TAFS, fund symbols, appropriation accounts, and receipt accounts

Format Standardization - move towards TAS component pieces Expansion of Dept Agency Codes from 2 to 3 digits

Expansion of Fiscal Year into 3 separate fields

Elimination of Standard Subclasses – replaced by BETC

BETC - Business Event Type Code 8-character code that indicates the type of activity being reported (e.g. receipt, disbursement,

etc.)

Determines the transaction effect on the Treasury Account Symbol’s Fund Balance with

Treasury

Replaces transaction codes and standard sub-classes but at a more intuitive level of detail


Magnitude of Impact: By DSSNs

Full Compliance with Treasury Mandate Requires each DSSN to transition to daily reporting in order to eliminate the consolidated SOA and SOT for each reporting ALC


8522 8558 8565 8404 5207 8567 5197 6870 7053 7339 8069 8371 8745 8538 8552 8716 8746 8754

5164 5173 5721 5776 5782 6124 6987 7353 7788 7824 8095 8259 8282 8290 8297 8347 8349 8356

8377 8380 8401 8428 8437 8480 8498 8524 8737 8738 8739 8740 8741 8742 8743 8744

Marine (17) 6102 6092 6160 6187 5116 6098 6112 6119 6129 6145 6147 6155 6156 6161 6186 6807 6809

5110 6068 6182 6184 6883 6924 6969 7004 7101 7186 7196 7202 7373 7474 7978 8270 8271 8280

8334 8383 8402 8406 8418 8423 8432 8433 8435 8447 8448 8453 8454 8458 8465 8467 8470 8471

8472 8473 8474 8475 8476 8477 8482 8483 8484 8495 8496 8497 8501 8502 8503 8506 8507 8518

8519 8523 8526 8528 8529 8534 8535 8536 8537 8539 8540 8542 8543 8544 8545 8546 8555 8556

8563 8564 8566 8573 8580 8581 8582 8587 8588 8590 8592 8593 8594 8595 8597 8598 8704 8706

8707 8708 8711 8712 8714 8715 8718 8719 8720 8730 8731 8732 8747 8749 8750 8751 8756 8757

8760 8761 8762 8765 8766 8767 8771 8774 8777 8778 8781 8782 8784 8789 8790 8791 8792 8793

8794 8795 8796 8797 8798 8799 8801 8802 8804 8806 8807 8808 8810 8811 8812 8813 8815 8816

8817 8818 8819 8820 8821 8822 8823 8824 8825 8826 8827 8828 8829 8835 8836 8837 8838 8839

8840 8841 8842 8843 8844 8494 8446 8772 8845

5006 5023 5454 5480 5488 5489 5493 5499 5561 5568 5570 5579 5588 6311 6321 6327 6332 6335

6353 6355 6356 6363 6387 6409 6411 6416 6422 6450 6460 6469 6551 6567 6583 6944 8485 8508

8520 8547 8548 8549 8550 8589 8702 8703 8705 8723 8733 8735 8748 8763 8764 8776 8779 8786

8787 8788 8830 8831 8832 8833

Air Force (8) 3801 5257 6599 6609 8541 8559 8560 8803

Non DFAS DSSNs

Total 308 DSSNs

(As of April 8, 2014)

Navy (52)

Ships

(Atlantic &

Pacific)

(171)

Settlement or

Pending Closure

DFAS DSSNs

REPORTING ALC 5700

REPORTING ALC 2100

REPORTING ALC 1700

Army (60)

DSSNs OPEN at Treasury 308

DSSNs under ALC 1700 240

Active 169

In-active / Contingency 39 Settlement 32

Pending Closure 0


Active 24

In-active / Contingency 30

Settlement 4

Pending Closure 2


Active 6

In-active / Contingency 0

Settlement 1

Pending Closure 1

199 Active DSSNs

Magnitude of Impact: By Systems Environment

8


STAR

(Oct 2014)

To be replaced by CARS

Treasury System

ALC

Reporter

2100*

ALC

Reporter

5700

ALC

Reporter

1700

HQARS (Reporting

Functionality

transition to DCAS

Nov 2015)

DCMS (Reporting

Functionality

transition to DCAS

Nov 2015)

Treasury Reporting

Systems

SDI-E

(ADS)

SRD1 (Aug 2014) SDI-T

(DDS)

SDI-T

(DDS) MOCAS

MOCAS

SF 1219

(SOA) SF1220

(SOT)

* For ALC 2100, MOCAS is the only disbursing system that sends an SOA/SOT directly to HQARS. All other SOA/SOT data is generated by Entitlement systems

(STANFINS, SOMARDS, USACE CEEMIS, etc.) and provided to HQARS.

CDS (Jun 2016)

DCAS

MOCAS

Key Disbursing

Systems

6/11/2014

Current State for DoD Expenditure Reporting (Monthly)

SF 1219

(SOA) SF1220

(SOT)

SF 1219

(SOA) SF1220

(SOT)

Monthly

IPAC

PAYMENTS (Checks & EFT,

Non-IPAC)

COLLECTIONS/DEPOSITS (Checks & EFT ,

Non-IPAC)

DISBURSING OFFICER CASH

INTERFUND

CARS

EXPENDITURE TYPES TREASURY SYSTEMS

INTRAGOVERNMENTAL TRANSACTIONS

(IPAC)

CROSS DISB.

REIMBURSEABLES ACCTG ADJUSTMENTS

DOD SYSTEMS

TBD

IPAC WIZARDS

DCAS

PIR (Payment Information

Repository)

CIR (Collection Information

Repository)

RECLASS/CTA

(Classification Transactions & Accountability)

EFT SRF

Check SRF

COLLECTION MECHANISMS

(OTC net, Pay.gov, Credit Gateway, etc.)

Bulk File

ALC 1700 (Navy)

ALC 2100 (Army)

ALC 5700 (Air Force)

Via Bulk File Format

TBD

Single Interfund Submission via Bulk File Format

NTDO CARS Reporting Process by DSSN (Daily)

Disbursing Systems (ADS, DDS)

Self

Disbursing Systems (MOCAS, MCTFS etc.)


Daily

Audit Readiness – FBWT Reporting Objectives

Daily traceability of all outlays/collections

Validate daily accuracy of disbursements and collections

Reconcile Treasury accounts with Component accounts

daily

Daily Recon of Treasury CARS to GL

Audit trail for reclassification entries

Visibility of detail transaction records in support of

undistributed amounts

Cash Framework process designed with FISCAM,

Treasury Financial Manual (TFM), and GAO FAM control

objectives


Cash Accountability and Reconciliation Scope


Critical Dependencies and Impacted Areas

ALC

21

00

A

LC 5

70

0

ALC

17

00

ALC 1700

ALC 2100

ALC 5700

Category 1: DFAS DSSNs (6)

Category 2: Non DFAS DSSNs, Except Navy Ships (11)

Category 3: Navy Ship DSSNs (152)


Category 2: Non DFAS DSSNs, Army (16)

Category 3: Non DFAS DSSNs, ODOs (2)


Category 2: Non DFAS DSSNs (1)

Disbursing/Reporting Strategy (ECD TBD)

Transition of HQARS Functionality to DCAS (ECD Nov 2015)

Transition of DCMS Functionality to DCAS (ECD Nov 2015)

NOTE: Numbers represent a count of Active DSSNs for each wave

Rep

ort

ing

Pro

cess f

or

DO

Cash

(E

CD

T

BD

)

Rep

ort

ing

Str

ate

gy f

or

Do

D S

en

sit

ive A

cti

vit

y (

EC

D

TB

D)

12 Integrity - Service - Innovation 6/11/2014

Note: DSSN 6353 to be subsumed by DSSN 5570 (ECD TBD)

13

IPAC Mandate:

Daily component TAS/BETC classification on IPAC Bulk Files by January 2014 Completed

Transitioning DSSN to Pilot:

Daily Component TAS/BETC classification on IPAC Bulk Files

Continue reporting status quo

Transitioning IPAC Pilot to CARS/GWA Reporter

Reporting Systems:

Suppress data on expenditure reports (2.80 line on 1219/1220)

Reconcile FBWT

Disbursing Systems:

Perform reconciliations to identify any TAS discrepancies that require reclassification

Reclassification done on 1220 at month-end (will be done daily via CTA once DSSN is a full GWA reporter)

Requirements Overview: IPAC


REQUIREMENTS

DEPENDENCIES

Systemic:

Implementation of Mega Wizard for DSSNs 5570, 6355, 6551, 8522,

and 6102 June 2014

Treasury system capability to support DoD business volume

Completed December 2013

Transition of functionality from legacy reporting environment

HQARS to DCAS November 2015

DCMS to DCAS November 2015

Operational:

Treasury to transition workarounds to sustainable long term solutions

Approach for DoD Classified business

Determine if DoD/OUSD(C) will accelerate timeline to support DCAS

as reconciliation tool to support ALC 2100 and 5700

SCOPE

REPORTING PROCESS

DSSNs (5) 5570, 6355, 6551

8522,6102

CARS

Bulk File Mega

Wizard

DSSNs (2) 3801, 8803

Bulk File DTIM

Direct Feed

DSSNs (9) 8541, 8559, 8560 6356, 6422, 6469 8558, 8565, 8538

IPAC

Bulk File MOCAS Wizard

DSSNs (3) 8404, 6411, 6599

DSSNs (2) 5207, 8735

ITS/USACE System

6/11/2014

Note: DSSN 6353 to be subsumed by DSSN 5570 (ECD TBD)

Air Force (6) 3801 6599 8541 8559 8560 8803

5570 6355 6356 6411 6422 6469 6551 8735

6353

Navy (6) 8522 8558 8565 8404 5207 8538

Marine Corps (1) 6102

REPORTING ALC 5700

REPORTING ALC 2100

Army (9)

REPORTING ALC 1700

DFAS DSSNIPAC DSSN Roll Up (22)

CARS

ADS

14

DSSN reports Payment transactions with TAS/BETC classification via Standard Reporting Format (SRF) to PIR by 7 PM EST the day of the disbursement


Disbursing systems submit SRF to PIR

Reporting continues status quo

Transitioning Pilot DSSN to Partial Reporter

Disbursing Systems:

Submit SRF to PIR


Reporting Systems:

Suppress payment data on expenditure reports

Reconcile FBWT

Requirements Overview: Payments


REQUIREMENTS

DEPENDENCIES

SCOPE

PIR

EFT - SRF

Checks - SRF

REPORTING PROCESS

DDS

MOCAS

ADS / DFRRS

EFT - SRF

Checks - SRF

EFT - SRF

Checks - SRF

EFT - SRF

Checks - SRF

EBS/CEFMS/ NexGen/

NFRS EFT - SRF

Checks - SRF

DSSNs (21) 5499, 5570, 5588, 6092, 6102, 6160, 6187, 6321, 6335, 6387, 6411, 8547, 8548, 8550, 8733, 8748, 8763, 8788, 8830, 8832,

8331

DSSNs (9) 8541, 8559, 8560 6356, 6422, 6469 8558, 8565, 8538

DSSNs (7) 5197, 5207, 7053, 7339,

8371, 8552, 8754

DSSNs (155) 6355, 8735, 8404, 152 SHIP DSSNs

DSSNs (7) 3801, 5570, 6102, 6355,

6551, 8522, 8803

Systemic:

Transition of functionality from legacy reporting environment



Transition of legacy disbursing systems to SDI (SRD1 and CDS)

Operational:

New reporting strategy for DO Cash/CIHO

Prioritization of ongoing initiatives

Implement SDI solution for Navy Afloat DSSNs


DSSN readiness to implement Collections

Implementation for Payments and Collections to occur

concurrently due to the current reporting process

6/11/2014

SAM

Edit/Validation Of

TAS/BETC

DFAS DSSN

Air Force (6) 3801 8541 8559 8560 8803 6599

5499 5570 5588 6321 6335 6355 6356 6387 6411 6422 6469 6551 6944

8548 8550 8733 8735 8748 8763 8788 8830 8831 8832

Navy (13) 5207 8522 8538 8558 8565 5197 6870 7053 7339 8371 8404 8552 8754

Marine (4) 6102 6160 6187 6092

Navy Ships (152)

Payments DSSN Roll Up (198)

REPORTING ALC 5700

REPORTING ALC 2100

REPORTING ALC 1700

Army (23)

SAM

15

DSSNs report collection transactions with TAS/BETC classification via Collection mechanisms to CIR


Complete Cash Flow Profile in SAM

Complete access group structures within SAM

Complete transition to CIR

Transitioning Pilot DSSN to Partial Reporter

Disbursing Systems:


Reporting Systems:

Suppress collection data on expenditure reports

Reconcile FBWT

Requirements Overview: Collections


REQUIREMENTS

DEPENDENCIES

REPORTING PROCESS

COLLECTIONS/ DEPOSITS BY DSSN

CARS

OTC net Pay.gov CREDIT

GATEWAY EFTPS

ECP FRB CASHLINK

FRB ACH Navy Credit Card

CIR C-KEY

SCOPE

Systemic:

Transition of legacy reporting environment



Transition of legacy disbursing systems to SDI (SRD1 and CDS)

Operational:

New reporting strategy for DO Cash/CIHO

Prioritization of ongoing initiatives

Implement SDI solution for Navy Afloat DSSNs


DSSN readiness to implement Payments

Implementation for Payments and Collections to occur

concurrently due to the current reporting process

6/11/2014

C-Key For Translation

Translated & Validated TAS/BETC

CARS Account

Statement

Transaction with TAS/BETC

C-KEY

DFAS DSSN

Air Force (6) 3801 8541 8559 8560 8803 6599

5499 5570 5588 6321 6335 6355 6356 6387 6411 6422 6469 6551 6944

8548 8550 8733 8735 8748 8763 8788 8830 8831 8832

Navy (13) 5207 8522 8538 8558 8565 5197 6870 7053 7339 8371 8404 8552 8754

Marine (4) 6102 6160 6187 6092

REPORTING ALC 1700

Navy Ships (152)

Collections DSSN Roll Up (198)

REPORTING ALC 5700

REPORTING ALC 2100

Army (23)

NEW ALC

Manual Submission of Consolidated

Interfund Report

16

Submission of the Bulk File Format for Interfund transactions

to Treasury’s CTA/Reclass module

Summary level

Any change to (current monthly) frequency to be

determined by DoD

Incorporation of Component TAS and BETC in the Bulk File

Format

Requirements Overview: Interfund


REQUIREMENT SCOPE

DEPENDENCIES

Operational:

Change in business process for submission of a single

consolidated report by DCAS vs. individual submission

for each ALC

Interfund reports for:

ALC 1700

ALC 2100

ALC 5700

Limited to conversion of current Statement of Interfund

Transactions (1400) report to required Bulk File Format and

submission at month end

No change to transaction retrieval from DAAS

No change to transaction processing within HQARS,

DCMS, and DCAS

Change in process once HQARS and DCMS functionality

transitions to DCAS (November 2015)

CARS

CTA Via Bulk File

Upload

ALC 1700

ALC 2100

ALC 5700 INTERFUND

BILLINGS

REPORTING PROCESS**

DCAS

HQARS

DCMS

6/11/2014

**This is an interim process until DCMS and HQARS functionality transitions to DCAS (ECD November 2015)

CARS Implementation Approach and Schedule IP

AC

On Track

DSSN 8522

Not Started

DSSN 3801

DSSN 5570, 6355, 6551

Deployment of CDS/SRD-1 Customers to ADS

STAR Decommissioned

MEGA WIZARD

DoD/OMB/Treasury Approval for DO Cash/CIHO

PA

YM

ENT

S &

CO

LLEC

TIO

NS

INTE

RFU

ND

Decision Point

CDS


17

6/11/2014

MIS

C.

1 2 3 4 1 2 3 4 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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

DCMS

DSSN 6102

DSSN 8558, 8565, 8538

DSSN 5207

DSSN 8541, 8559, 8560

DSSN 8404

DSSN 8803

DSSN 6411

DSSN 6356, 6422, 6469

ALC 1700

ALC 2100

ALC 5700

DSSN 6102

DSSN 5570

DSSN 6353

DSSN 8735

Disbursing/Reporting Strategy for Navy Ships

DSSN 8522

DSSN 5207

DSSN 8558, 8565, 8538

DSSN 6092,6160, 6187

DSSN 5197

DSSN 6870

DSSN 7053

DSSN 7339

DSSN 8371

DSSN 8404

DSSN 8552

DSSN 8754

DSSN 8541, 8559, 8560 DSSN 3801

DSSN 6599

SRD1

DSSN 6356, 6422, 6469

DSSN 6355

DSSN 6551

DSSN 8748

DSSN 5499

DSSN 5588

DSSN 6335

DSSN 6387

DSSN 6411

DSSN 8548

DSSN 8735

DSSN 8763

DSSN 8788

DSSN 8830

DSSN 6944

DSSN 8803

Navy/USMC Army

Air Force

Transition of Reporting & Reconciliation Functionality to DCAS Complete Delayed

Navy Ship DSSNs (152)

HQARS

17

DSSN 6599

18

Status - DoD GWA Transition Plan

Submitted January 2014

Seeking alternatives to further accelerate implementation

Cash Accountability Workgroup

Next Steps

IPAC

Implementation - DSSN 6102 (Marine Corps) July 2014

Preparation - DSSNs 8558, 8565, 8538, 5207, 8404 October 2014

Treasury guidance - intra-governmental environment with integration

of IPP

Payments

Parallel testing: DSSN 6102 March 2014

System readiness: DFAS disbursing targets (ADS, DDS, MOCAS)

Finalize Cash Accountability Workgroup and governance structure

6/11/2014

CARS Implementation Status and Next Steps


GTAS Overview

Integrity - Service - Innovation 19

Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) is a Treasury owned system that will streamline reporting requirements for agencies by replacing four legacy trial balance reporting systems: FACTS I, FACTS II, IRAS and IFCS

• A single data collection system will pave the way for more consistent and complete financial data and will allow for better analytical reporting

• Reduction in agency reporting from 18 to 9 times per year

• GTAS is a web application therefore, SecureID cards and stand alone computers will no longer be used

• One set of due dates for both budgetary and proprietary reporting

• Facilitates data consistency and implements editing with the central accounting system

• DDRS will mirror all GTAS Treasury Edits and Validations

• 24x7 availability to users for pre-work on trial balances

• GTAS DoD phased implementation complete December 2014

6/11/2014

Program Description

Benefits

Goals

Current Transaction and Reporting

COLLECTIONS

PAYMENTS

FR

Account Statement

Monthly Treasury Statement

Combined Statement

SF 133 2108

Intragov Reports

A

G

E

N

C

Y

N

o

n

&

P

a

r

t

i

a

l

F

u

l

l

&

P

a

r

t

i

a

l

Agency A-136 F/S

Fiduciary Confirmatio

ns

IPAC

CTA

SAM

SOD

SOD

SOD

SOD

FRB

CIA

FACTS II

FACTS I

IFCS

IRAS

GFRS A

G

E

N

C

Y


Future Transaction and Reporting

A

G

E

N

C

Y

NTDO Payments

FR

USSLG TFM Agency F/S

Intragov Reports

TDO Payments

Collections

IPAC

SAM

G

T

A

S

Account Statement

Monthly Treasury Statement

Combined Statement

GFRS FRB

CIA

A

G

E

N

C

Y


6/11/2014 Integrity - Service - Innovation 22

GTAS Implementation Status and Next Steps

Final testing event: May 15th - 30th (for 2nd Quarter data)

Go or No-go decision - Pending testing outcomes

New GTAS target implementation(s)

June 2014 (May reporting): DFAS CL, CO, IN (Army GF)

July 2014 (June reporting): DFAS IN (Security Cooperation Accounting and

Trust Funds)

August 2014 (July reporting): DFAS IN (Other Defense Organization/ODO

WCF)

October 2014 (September reporting): Corps of Engineers / TI96

December 2014 (November reporting): DFAS IN (Other Defense

Organization/ODO GF)

Questions

Integrity - Service - Innovation 6/11/2014 23

IMPROVING DOD’S INTER/INTRA-GOVERNMENTAL FINANCIAL

REPORTING

Phase 1 – Campaign Plan To Improve The End-to-end Process For

Reimbursable Activity

Introduction

One of DoD’s key material weaknesses is an inability to

reconcile inter/intra-governmental (IGT)

activity and balances

25

At the Federal Financial Statement level:

“A major reason for the disclaimer is the government’s inability to adequately account for and reconcile intra-governmental transactions between departments and agencies. This reform activity supports effective financial management through the achievement of a clean audit opinion; the elimination of material weaknesses; and the production of timely, accurate financial information to help guide decision-making.”

Office of Management and Budget, Executive Office of the President

Source: Federal Financial Management 2009

IGT is also known as…

Military Interdepartmental Purchase Requests (MIPRs)

Reimbursables

Buy/Sell Transactions

Interagency Agreements

27

IPAC

Why is IGT a material weakness?

Requesting Agency

Servicing Agency

Goods and/or services

28

Out of balance

Why is IGT a material weakness?

Decentralized Incompatible Systems

Lack of Standards High Volumes 29

Worldwide

Challenge Requirement

Lack of documentation for audit Provide for a data warehouse of intra-governmental

transactions for audit, research and analysis

Buyer and seller transactions and accounting

are out of balance, unable to reconcile (in part,

due to lack of common identifier)

Need common identifier to synchronize buyer and seller

accounting transactions (including proper general ledger

treatment) using clearing house methodology

Proof of receipt and acceptance Require appropriate users to record receipt and

acceptance, preserve for audit

Buyer and seller not in full agreement on terms

and detail transactions

Automate handshake and agreement between buyer and

seller before settlement (reduces chargebacks)

Prompt response to audit findings Need affordable and rapidly delivered solution to meet DoD

audit readiness campaign plan

Lack of visibility of current status of

Interagency Agreement (IAA) including

remaining period of performance, available

funding, unfilled orders, filled orders and paid

orders

Must preserve association and provide a common identifier

for all transaction components throughout life cycle of

agreement, and provide a consolidated view of the

information

DoD transaction volumes and diverse systems

Must handle DoD volume and interface with DoD systems

using DoD Global Exchange (GEX) solution and Standard

Line of Accounting (SLOA)

DoD Challenges and Requirements

30

• Improve visibility by using a central repository for all transactional information.

• Reduce intra-governmental imbalances by using a “clearing house” or hub to share accounting information with trading partners.

• Reduce reconciliation and elimination efforts by associating all related transactions.

• Reduce chargebacks by establishing a clear agreement at each stage in the life cycle prior to settlement.

Recap - IGT Strategic Goals

31

Invoice Processing Platform

32

To enable the reimbursable IGT process reengineering effort, DoD is adopting the IPP, an automated electronic invoicing

shared service that enables federal agencies to manage reimbursables more efficiently with their trading partners.

Project Charter and August 5, 2013 Memo

33

During the spring of 2013, DoD developed a project charter outlining proposed project governance, project management, strategies and controls that team members could use during the IPP IGT implementation. On August 5, 2013, DoD issued a memorandum announcing its partnership with the Treasury Department to implement IPP as DoD’s core system to manage all inter- and intra-governmental reimbursable transactions and documentation.

DoD Areas of Focus

Data Requirements

Standards & Policy

Metrics Change

Management

34

To tackle this significant material weakness issue and bring about an enterprise wide change, DoD worked with the

Treasury Department and OMB in these four areas.

IPP Governance Board

IPP Implementation

Governance Board

Strategy and Policy

Requirements and Data Standards

Reporting and Monitoring

Change Management

Inter-governmental

Transaction WG

35

IAA

GEX SLOA

& PRDS

Key Enablers to Success

36

• The IAA is a standard paper form for conducting buy/sell transactions between Federal trading partners

• The IAA was developed to

– Define the data structures required to effectively process intragovernmental buy/sell transactions

– Provide agencies with an interim solution until the process could be automated

– Lay the foundation for the automation of the standard processes and data

Interagency Agreement (IAA)

37

• General Terms and Conditions (GT&C) - 7600A

– Captures partnership/relationship between parties

– Identifies trading partners entering into agreement, authorities, agreement action, period, and type

• Order Requirements and Funding Information (Order) - 7600B

– Reduces effort as GT&C information is captured once and used with many orders

– Contains specific information on products/services being exchanged, funding and accounting information, bona fide need, funding, shipping, authorization, points of contact, etc.

One Form with Two Parts

38

• Provides broker and mediation services between government agencies, commercial industry, and government systems

• DLA Transaction services maintains GEX

• Using the GEX results in interoperability, economies of scale, and standards compliance

Global Exchange (GEX)

39

Pre-GEX

Post-GEX

To-Be Environment

42

Where We’ve Been

2012 IPP IGT

proof-of- concept

conducted

Phase 1 completed

(project initiation/ discovery)

2013-May

2013-Dec Collaborative

Agency Working Group (CAWG) meeting held;

Release 3.1 deployed

(includes invoice download/upload,

PO download, notifications)

Official program kick-off

held 2014-Jan

2013-Aug OUSD(C) memo issued

Strategic planning

session held 2013-Nov

2014-Apr Phase 2

completed (requirements identification and fit-gap

analysis)

Phase 3 completed

(implementation approach/plan

for USMC)

2014-Apr

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Where We’re Headed

44

MILESTONES PHASE PRIORITY LEVEL OF EFFORT

Milestone Occurrence

Less

More

Lowest

Highest Planning Develop-ment

Trans-actions

Develop new IGT standard process

flows

Develop data mapping of new IGT standard feed

encompassing all required fields for IGT

Consolidation of all IGT-related

data fields

Consolidation of all IGT-related

policies and regulations

Develop system requirements for IGT transaction pilot(s)

Develop critical interfaces and

crosswalks for pilot to GEX and IPP

Develop key performance

metrics

Begin briefing communities on IGT way forward

Wave 1: Adopters (GT&Cs)

Wave 1.a: (GT&Cs)

Wave 2: adopters (GT&C & Orders)

APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER

Adoption – IPP becomes more valuable with increased use

45

500 TRANSACTIONS PER MONTH

25% (OF DOD REIMB AUTH) IN IPP ~$12B

50% (OF DOD REIMB AUTH) IN IPP ~$24B

2-Party Buy/Sell Transactions

Wave 1 – Early Adopters

FY14

Wave 2 – FY15

Do

D P

olicy

Dir

ecti

ve

• Target for the transaction pilot working group - 500 transactions/month

• Early adopters critical to informing requirement gaps, defining change management

activity

• IPP “value” increases with each new connection/adopter

• Outcomes from early adopters :

• Develop implementation guide to direct the process for future “connections”

• Document unique trading partner requirements

• Aid OJT desktop guide development

DoD IGT Functional Strategy

46

Mary L. Kemp is lead accountant in the Business Integration Office, Office of the Under Secretary of Defense (Comptroller). She has 30+ years of service as an auditor, budget analyst, accountant, and systems analyst with Department of the Army, Defense Finance and Accounting Service and OUSD(C). She is a past president of ASMC’s CNY Leatherstocking Chapter, a Lean 6 Sigma Green Belt, Certified Defense Financial Manager, and DoD Financial Management Level 3 certified. She is currently pursuing her Master's Degree at National Defense University.

Mary L. Kemp

47

Michael Bolin is a veteran of the United States Army (Active Duty), having served ten years. He worked for JP Morgan Chase for one year and has been with Department of Treasury’s Bureau of the Fiscal Service for eight years. Mr. Bolin served as the EagleCash Program Manager, leading the roll out of the system to numerous deployed areas overseas. He currently heads Treasury’s IPP Intra-governmental deployment effort as the Program Manager, working closely with DoD. He has a Bachelor’s degree in business from Villanova University and is finishing an MBA/MPP from the University of Maryland College Park. Mr. Bolin also holds a PMP certification.

Michael Bolin

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• Mary Kemp, OUSD(C), BIO

Phone – 703-697-0503

Email – [email protected]

• Joe McCullough, DFAS

Phone – 216-204-3000

Email – [email protected]

Points of Contact

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Documents

Government-wide Accounting (GWA) What is it, how · PDF fileDefense Finance and Accounting Service Government-wide Accounting (GWA) – What is it, how does it impact us, and where