Military Permanent Change of Station (MILPCS) Permanent Change of Station (MILPCS) 2 ... 36 Audit Tests Specific to CP 03: ... 2 Use the Defense Table of Distances

1

Audit Readiness TrainingMilitary Permanent Change of Station (MILPCS)

2

MILPCS Overview 3 MILPCS Audit Readiness 14 MILPCS Step by Step Testing Methodology -

Audit Tests Specific to Headquarter Controls 20 Audit Tests Specific to Initial Obligation 47 Audit Tests Specific to Travel Entitlements -

Travel Advance 61 Travel Claim 68 SATO Travel 81

Audit Tests Specific to Household Goods Entitlements - Household Goods Shipment 89 Personally Procured Move (PPM) - Advance 97 Personally Procured Move (PPM) - Settlement 103 Non-Temporary Storage 109

Questions 119

Table of Contents

MILPCS Overview:What is a Permanent Change of Station (PCS)?

• The Department of Defense (DoD) defines a Permanent Change of Station (PCS) as the official relocation of an active duty member along with any dependents living with him/her from one duty location to another by the issuance of a PCS Order.

• PCS Orders apply until mooted by another PCS order, completion of active duty service, or other preemptive event.

• On average, active duty military members will move every 3 years for approximately $12,000 per move.

Anywhere but Norfolk…

3

MILPCS Overview:PCS Move Cycle

4

PCS Move Cost is Estimated and Approved

Member Relocates

Settle Disbursements

Issue PCS Order

SubmitsTravel Claim

Record Obligation

MILPCS Overview:Funding Source

5

MILPCS Funding Flow Congressional Authorization

Budget Activity

DoD

DoN

BUPERS

Office of Management and Budget (OMB) approves &issues Apportionment to the Department of Defense.

Department of Defense (DoD) allocates funds to the Department of the Navy (DoN).

Department of the Navy sub-allocates funds to the Bureau of Naval Personnel (BUPERS).

BUPERS sub-allocates fund to PCS Obligating Unit Identification Codes (UICs).

1453 1405

App

ropr

iatio

n Fl

ow

OMB

6

MILPCS Overview:Funding Source

Pay and Allowance of Officers

Pay and Allowance of Enlisted Personnel

Pay and Allowance of Cadets

Subsistence of Enlisted Personnel

Permanent Change of Station Travel

Other Military Personnel Costs

Bud

get A

ctiv

ity (B

A)

MPN – Appropriation 1453

RPN / FTS – Appropriation 1405

Reserve Component Training and SupportBA

01

06

05

04

03

02

01

7

Bud

get A

ctiv

ity 0

5 Su

bhea

ds

PCS Travel Type

Accession

Training

Operational

Rotational

Separation

2250

2254

2253

2252

2251

Organized Units2255

MILPCS Overview:Appropriation 1453 - Budget Activity 05

8

Bud

get A

ctiv

ity 0

1 Su

bhea

ds

PCS Travel Type

Accession

Training

Operational

Rotational

Separation

225A

225D

225R

225L

225T

Organized Units225U

MILPCS Overview:Appropriation 1405 - Budget Activity 01

MILPCS Overview:Entitlements

9

Servicemembers are authorized a number of entitlements to cover the costs of their and/or their dependents move.

MILPCS Overview:Financial Elements

Accounting Classification Reference Number (ACRN)

10


Line of Accounting (LOA)

11


Standard Document Number (SDN)

Transportation Account Code (TAC)

12

13

MILPCS Overview:Key Systems

14

PERS 7 NAVSUP

DFASNPPSC

PACFLTFFC

NPC

MILPCSAudit

Readiness

MILPCS Audit Readiness:Key Stakeholders

15

Obtain the full population of STARS- FL transaction data for the testing period

Filter for 1453 and 1405 Appropriations

Filter for PCS transactions: Subhead 225* (* = Any alphanumeric character)

Filter for FY1X transactions (X = The applicable Fiscal Years in scope)

Filter for transactions with CS/MD/TO in the 9th & 10th positions of SDN (Excludes transactions related to contracts and reimbursables.)

Exclude register 36 transactions (1081 transactions will be tested under FBWT segment)

Exclude transactions with 611 execution code (Will be tested separately under CP05)

Filter for USSGL Accounts (4801, 4901, and 4902)

MILPCS Audit Testing Sampling

Population

MILPCS Audit Readiness Sampling Approach

16

MILPCS Audit ReadinessTransaction Type

PPMAdvance

PPM Settlement

Non-TempStorage

HHGShipment

Travel Advance

Travel Claim

SATOTravel

Travel Disbursements

HHG Disbursements

InitialObligation

MILPCS Audit Testing Sampling

Population

Servicemembers are authorized a number of entitlements to cover the costs of their and/or their dependents move.

17

MILPCS Audit ReadinessTesting Overview

18

MILPCS Audit ReadinessDetailed Testing Matrix

Click Here for Full Document

19

MILPCS Audit ReadinessKey Supporting Documents Matrix

Click Here for Full Document

20

Headquarter Controls Testing

21

Audit Tests Specific toCP 01: Funding Authorization

22

Test # Description Action

CP01 Funding Authorization 1. Verify that the Cumulative to Date and Annual Current Direct Funds Available amounts match.

2. Verify that the Budget Activity 5 Total Allocation and Current Direct Funds Available amounts match.

3. Verify that the Quarterly Cumulative to Date and Current Direct Funds Available amounts match.

4. Verify that the Cumulative Obligation does not exceed Current Available with Reimbursable.

5. Verify that the Cumulative Obligation does not exceed the Current Direct Funds Available for BA5.

6. Verify that the Funds Authorized and Quarterly Current Direct Funds Available match.

7. Verify evidence of approval and date.

*Step-by-step testing procedures provided in upcoming slides for those tests highlighted above.

Controls Testing:

Funding Authorization:Testing Overview

23

Funding Authorization:CP 01.1

Verify that Cumulative-to-Date Total Allocation amount on the Funding Authorization Document (FAD) matches the Annual Current Direct Funds Available Total MPN on the Status of Funds (SOF).

FAD SOF

24


Verify that the Total Allocation amount for Budget Activity Distribution 05 on the FAD matches the Current Direct Funds Available amount for Budget Activity 5 (BA5) on the SOF.

FAD

SOF

25


Verify that the Cumulative-to-Date amount on the FAD for the Quarter being tested matches the Quarterly Current Direct Funds Available Total MPN amount on the SOF.

SOF

FAD

26


Verify that the Cumulative Obligation Total MPN amount does not exceed the Current Available with Reimbursable Total MPN amount on the SOF.

SOF

SOF

Should not

exceed

A

B

27


Verify that the Cumulative Obligation amount for BA5 does not exceed the Current Direct Funds Available amount for BA5 on the SOF.

Should not

exceed

SOF

SOFB

A

28


Verify that the 05 Total Funds Authorized amount on the STARS-FL Critical Balance Reportmatches the Quarterly Current Direct Funds Available for BA5 on the Status of Funds Report.

SOF

Critical Balance

29


Verify evidence of approval and date on the Status of Funds Reports.

SOF

30

Audit Tests Specific to CP 02: Obligation Adjustment Reconciliation Review

31


CP02 Obligation AdjustmentReconciliation Review

1. Verify that the number of records and amounts from theupload to STARS-FL matches the number of records andamounts from the corresponding download from STARS-FLplus TEXV.

2. Verify that the totals on the B1 Daily Reconciliation match thetotals on the Detailed B1 File.

3. Verify that the TEXV B1 Sample was correctly recorded in STARS-FL.

4. Verify evidence of approval and date on the WeeklyReconciliation B-1 vs. STARS-FL Worksheet.


Controls Testing:

Obligation Adjustment Reconciliation Review:Testing Overview

32

Obligation Adjustment Reconciliation Review:CP 02.1

Verify that the number of records and amounts from the upload to STARS-FL matches the number of records and amounts from the corresponding download from STARS-FL plus the TEXV.

Daily B1 vs. STARS-FLReconciliation Worksheet

33

Reconciliation Review:CP 02.2


Detailed B1 File

Verify that the totals on the files within the Daily B1 vs. STARS-FL Reconciliation Worksheet match the total B1 Record on the Detailed B1 file.

34


Confirm the sample transaction has been posted to the correct amount and SDN in STARS-FL.

STARS-FL:TEXV B1 Transaction

Detailed B1 File

35


Verify evidence of approval and date on the Weekly Reconciliation B1 vs. STARS-FL Worksheet.


36

Audit Tests Specific to CP 03: Correction of Rejected Obligations

37


CP03 Correction of Reject Obligations 1. Confirm that each of the rejected transactions on the report hasbeen annotated as Reviewed, Completed or Previouslycompleted.

2. Confirm that the rejected obligation was corrected in STARSFL within 10 business days of the “Message FeedbackDate/Time”.

3. Confirm the sample transaction has been posted to the correctamount, LOA and SDN in STARS-FL.


Controls Testing:

Correction of Rejected Obligations:Testing Overview

38

Obligation Corrections:CP 03.1

NISPS Feedback Report

Confirm that each of the rejected transactions on the report has been annotated as Reviewed, Completed or Previously Completed.

39

Obligation Corrections:CP 03.2

STARS-FL


Confirm that the rejected obligation was corrected in STARS-FL within 10 business days of the Message Feedback Date/Time.

40

Confirm the sample transaction has been posted to the correct amount, LOA and SDN in STARS-FL. 1

Obligations Corrections:CP 03.3


STARS-FL

41

2

Obligations Corrections:CP 03.3


Confirm the sample transaction has been posted to the correct amount, LOA and SDN in STARS-FL.

STARS-FL

4,238.72

42

Audit Tests Specific to CP 05: Correction of Suspense Transactions

43


CP05 Correction of Suspended Transactions 1. Verify that there are no suspense items on the S1960 SuspenseReport (for BA 5 FY XX) that have aged more than 120 days.

2. Confirm the sample transaction has been posted to the correctamount, LOA and SDN in STARS-FL.


Controls Testing:

Correction of Suspended Transactions:Testing Overview

44

Suspense Transactions:CP 05.1

Verify that there are no suspense items on the S1960 Suspense Report (for BA5 FY XX) that have aged more than 120 days.

Suspense Report

45


Confirm that the transaction was posted to the correct LOA, SDN and amount in STARS-FL.

STARS-FL

Suspense Report

1

46


Confirm that the transaction was posted to the correct LOA, SDN and amount in STARS-FL.

Suspense Report

STARS-FL

2

47

Audit Tests Specific toInitial Obligation

48

Test # Description ActionCP04 PCS Order Approval 1. Verify PCS Orders approval by authorized personnel



KSD01 Analysis of Military PCS Obligations 1. Verify initial obligation amount [9 steps]2. Verify the Line of Accounting (LOA), Standard Document

Number (SDN), and Transportation Account Code (TAC)3. Verify the recorded date of the initial obligation amount

Substantive Testing:

Controls Testing:

Initial Obligation:Testing Overview (Sample #17)

49

Initial Obligation:CP 04.1

Verify that PCS Orders are approved by authorized personnel prior to issuance.

PCS Orders

50

1 Find the Detaching, Ultimate, and (if applicable) Intermediate Activity within the member’s PCS Orders.

Initial Obligation:KSD 01.1

PCS Orders

51

2 Use the Defense Table of Distances (DTOD) to calculate the Official Mileage between each point.


DTOD

*See Obligation Methodology SOP for further information on mileage variations between DTOD and the Orderwriting Systems.

52

3 Find the Rank/Rate and Total Number of Dependents on the Servicemember’s Dependency Application/Record of Emergency Data (Page 2).


Page 2

53

4 Convert the Servicemember’s Rank (Officer) or Rate (Enlisted) into his/her Paygrade.

Rank Conversion Chart


*Snapshot from previous slide (step #3).

54

Find the Sponsor’s Grade, Number of Dependents, and Total Mileage on the Step 1 Table. Find the two numbers they align to on the table and add them together to determine Initial Obligation.

5

Initial Obligation:$10,526.00

Step 1 Table


*The minimum Sponsor’s Grade to calculate Initial Obligation is E-4.

55

Verify the Initial Obligation amount in POEMS. 6

NSIPS:POEMS


*This step is not a required.

56

*When Total Obligation is estimated to be more than $1,800 ($1,400 for Enlisted Accession: Subhead 2250), a split percentage table is used to allocate the obligation between Travel and HHG.

*Snapshot from Step 1 Table.

(step #5)

On the Obligation Split Percentage Crosswalk, locate the Subhead and the PIC (found in the member’s PCS Orders within the LOA and CIC under Accounting Data) to determine the percentage allocated for HHG and Travel.

7

Obligation Split Percentage


57

Verify that Travel is assigned a unique Standard Document Number (SDN) and HHG is assigned a summary Transportation Account Code (TAC) Document Number (last 4 characters coincide with TAC on PCS Orders).

8

NSIPS:STARS-FL Details


*This step is not a required.

58

Verify the Initial Obligation amount in STARS-FL matches the estimated amount based on the Step 1 Table.

9

*Snapshot from step #7

Travel Obligation

HHG Obligation


59


Verify the LOA, SDN, and TAC from STARS-FL Travel and HHG Obligation matches the PCS Order.

C

B

A

C

B

A

B

Travel Obligation

PCS Order

HHG Obligation

60


Verify the obligation is recorded in STARS-FL within 10 days of the date on the PCS Order.

Travel Obligation

PCS Order

HHG Obligation

61

Audit Tests Specific toTravel Advance Disbursements

62

Test # Description ActionCP04 PCS Order Approval Testing previously covered in Obligation section of brief

CP07 Travel Settlement Voucher Approval 1. Verify review by Examiner on Travel Advance Summary

CP09 PPM/Travel Advance Approval 1. Verify evidence of member’s signature on Advance Request Form


KSD01 Analysis of Military PCS Obligations Testing previously covered in Obligation section of brief

KSD02 Analysis of Military PCS Travel Disbursements

4. Verify the Line of Accounting (LOA)5. Verify the Standard Document Number (SDN)6. Verify the Sample Disbursement amount


Controls Testing:

Travel Advance Disbursements:Testing Overview (Sample #23)


63

Verify the member has completed and signed the Travel Advance Request Form

Travel Advance Disbursements: CP 09.1

Travel Advance Request Form

64

Verify evidence of review by the Examiner and/or Auditor on the WinIATS Travel Advance Summary (based on electronic signature of initials).

Travel Advance Disbursements: CP 07.1

Travel Advance Summary

65

Verify the LOA on the STARS-FL Sample Disbursement matches the LOA on the PCS Orders and Travel Advance Summary.

Travel Advance Disbursements: KSD 02.4

PCS Orders

STARS-FLSample Disbursement


66

Verify the SDN on the STARS-FL Sample Disbursement matches the SDN on the PCS Orders and Travel Advance Summary.


PCS OrdersTravel Advance

Summary


67

Verify the amount on the STARS-FL Sample Disbursement matches the amount on the Travel Advance Summary.




68

Audit Tests Specific toTravel Claim Disbursements

69

Travel Claim Disbursements:Testing Overview (Sample #16/27)


CP07 Travel Settlement Voucher Approval 1. Verify review by Examiner on Travel Voucher Summary




1. Verify the member's name 2. Verify the number of dependents.3. Verify the ultimate activity location4. Verify the Line of Accounting (LOA)5. Verify the Standard Document Number (SDN)6. Verify the Sample Disbursement amount7. Verify the liquidation of a travel advance [4 steps]


Controls Testing:


70

Travel Voucher Summary

Verify evidence of review by the Examiner and/or Auditor on the WinIATS Travel Voucher Summary (based on electronic signature of initials).

Travel Claim Disbursements:CP 07.1

71

Verify the member's name on the PCS Order matches the Travel Voucher Summary and the Travel Voucher (DD 1351-2 also known as a Travel Claim).

Travel Claim Disbursements:KSD 02.1


PCS Orders DD 1351-2

72

DD 1351-2

Page 2

Verify the dependents listed in Block 12 of the Travel Voucher (DD 1351-2) does not exceed the total number of dependents on the Dependency Application/Record of Emergency Data (Page 2).


73

DD 1351-2PCS Orders

Verify the ultimate activity location listed on the PCS Orders corresponds to the final destination listed in Block 15 of the Travel Voucher (DD 1351-2).


74

PCS Orders


Verify the LOA on the STARS-FL Sample Disbursement matches the LOA on the PCS Order and the Travel Voucher Summary.



75

PCS Orders


Verify the SDN on the STARS-FL Sample Disbursement matches the SDN on the PCS Order and the Travel Voucher Summary.



76


Verify the amount on the STARS-FL Sample Disbursement matches the amount on the Travel Voucher Summary and is supported by relevant supporting documentation.



77

Verify that any Advance/Prior Payment is subtracted (Less Travel Advances) from the Total Entitlement on the Travel Voucher Summary.


1


78

Verify that the Travel Advance ACRNs (AG or AR) and amount indicated on the Travel Voucher Summary is liquidated within STARS-FL by the indication of a 610 D for the Travel Advance Amount.


2

STARS-FLAG/AR Screen


79

Verify on the STARS-FL Summary ACRN List that there is no outstanding amount left on the Travel Advance ACRNs (AG or AR) .


3

STARS-FLSummary ACRN List

80

If there is no Travel Advance indicated on the Travel Advance Summary, verify on the STARS-FL Summary ACRN List that neither AG or AR ACRNs are listed under that SDN.


STARS-FLSummary ACRN List

a.

b.

4


81

Audit Tests Specific toSATO Travel Disbursements

82

SATO Travel Disbursements:Testing Overview (Sample #14)


CP07 Travel Settlement Voucher Approval 1. Verify supervisory approval on SATO Travel Invoice. [2 steps]




1. Verify the member's name 4. Verify the Line of Accounting (LOA)5. Verify the Standard Document Number (SDN)6. Verify the Sample Disbursement amount


Controls Testing:


83

Verify charging number on SATO Travel Invoice (Bill Payment Summary Report) matches the Citibank Invoice.

SATO Travel Disbursements:CP 07.1

1

SATO Travel Invoice

CitiBankInvoice

84

Verify evidence of supervisory approval and date on SATO Travel Invoice (Bill Payment Summary Report).

SATO Travel Disbursements:CP 07.1

SATO Travel Invoice

2

85

Verify the name on the PCS Orders matches the Citibank Invoice and Airline Ticket.

SATO Travel Disbursements:KSD 02.1

CitiBankInvoice PCS Orders

Airline Ticket

86

PCS Orders

Verify the LOA on the STARS-FL Sample Disbursement matches the LOA on the PCS Order.



87

PCS Orders

Verify the SDN on the STARS-FL Sample Disbursement matches the SDN on the PCS Order.



88

CitiBankInvoice

Verify the amount on the CitiBank Invoice matches the amount on the STARS-FL Sample Disbursement and Airline Ticket.



Airline Ticket

89

Audit Tests Specific toHousehold Goods Shipment Disbursements

90


CP06 HHG Work Order Approval 1. Verify evidence of supervisory signature on DD 1299

CP08 HHG Invoice Certification 1. Verify review of member’s HHG Move Application



KSD03 Analysis of Military PCS HHG Expenditures

2. Verify the Line of Accounting (LOA) and TransportationAccount Code (TAC)

3. Verify the Sample Disbursement amount


Controls Testing:

Household Goods Shipment Disbursements:Testing Overview (Sample #36)


91

Verify completion, review, and approval of member’s Application for Shipment and/or StorageofPersonal Property (DD 1299).

Household Goods Shipment Disbursements: CP 06.1

1

DD 1299

92

DD 1797 (Personal Property Counseling Checklist) can be substituted in lieu of HHG Application (DD 1299).


-

93

DPS Audit Screenshot can be substituted in lieu of counselor signature on DD 1299 or DD 1797 .


-

DPS Audit Screenshot

94

Confirm evidence of supervisory approval and date on the HHG invoice (US Bank/SyncadaSummary Invoice List).


US Bank/SyncadaSummary Invoice List

95

Verify the LOA and TAC on the STARS-FL Sample Disbursement matches the LOA and TAC on the PCS Order and the HHG Invoice (US Bank/Syncada Invoice).

Household Goods Shipment Disbursements: KSD 03.2

US Bank/SyncadaInvoice

PCS Orders


96

Verify the amount on the STARS-FL Sample Disbursement amount matches the amount on the HHG Invoice (US Bank/Syncada Invoice).

Household Goods Shipment Disbursements: KSD 03.3



97

Audit Tests Specific toPPM Advance Disbursements

98


CP06 HHG Work Order Approval 1. Verify evidence of supervisory signature on DD 2278

CP07 Travel Settlement Voucher Approval 1. Verify review by Examiner on Travel Advance Summary




2. Verify the Line of Accounting (LOA) and Standard DocumentNumber (SDN)



Controls Testing:

PPM Advance Disbursements: Testing Overview (Sample #23)


99

Verify the review and approval of the member’s Application for Do It Yourself Move and Counseling Checklist (DD 2278).

PPM Advance Disbursements: CP 06.1

DD 2278

100

Verify evidence of review by the Examiner and/or Auditor on the WinIATS Travel Advance Summary (based on electronic signature of initials).

PPM Advance Disbursements: CP 07.1


101

Verify the LOA and SDN on the STARS-FL Sample Disbursement matches the LOA and SDN on the PCS Orders and Travel Advance Summary.

PPM Advance Disbursements: KSD 03.2

Travel Advance Summary PCS Orders


102

Verify the amount on the STARS-FL Sample Disbursement matches the amount on the Travel Advance Summary.

PPM Advance Disbursements: KSD 03.3



103

Audit Tests Specific toPPM Settlement Disbursements

104


CP06 HHG Work Order Approval Testing previously covered in PPM Initial Advance section of brief

CP08 HHG Invoice Certification 1. Verify evidence of review and certification on PPTAS VersionReport




1. Verify the Ultimate Activity2. Verify the Line of Accounting (LOA) and Standard Document

Number (SDN)3. Verify the Sample Disbursement amount


Controls Testing:


PPM Settlement Disbursements: Testing Overview (Sample #48)

105

Verify evidence of review and payment certification on the PPTAS Version Report.

PPM Settlement Disbursements: CP 08.1

PPTAS Version Report

106

Verify the Ultimate Activity location located on the PCS Orders corresponds to the final destination listed on the Travel Voucher (DD 1351-2).

PPM Settlement Disbursements: KSD 03.1

PCS Orders

DD 1351-2

107

Verify the LOA and SDN on the STARS-FL Sample Disbursement matches the LOA and SDN on the PCS Orders and the PPTAS Version Report.



PCS Orders


108


Verify the amount on the STARS-FL Sample Disbursement matches the amount on the PPTAS Version Report.



109

Audit Tests Specific toNon-Temporary Storage Disbursements

110


CP06 HHG Work Order Approval 1. Verify evidence of certification by Issuing Office on DD 1164

CP08 HHG Invoice Certification Testing previously covered in HHG Shipment section of brief




2. Verify the NTS Standard Document Number (SDN) and Transportation Account Code (TAC) [6 steps]



Controls Testing:

Non-Temporary Storage Disbursements:Testing Overview (Sample #39)


111

DD 1164

Verify evidence of certification of the Service Order for Personal Property (DD 1164) by Issuing Office.

Non-Temporary Storage Disbursements:CP 06.1

112

Find subhead within the LOA on members’ PCS Orders

Non-Temporary Storage Disbursements:KSD 03.2

1

PCS Orders

113

Match the Subhead found on the members’ PCS Orders with the corroborating Subhead on the NTS TAC and SDN Crosswalk for the applicable fiscal year that the charges were incurred.


2

NTS TAC and SDN Crosswalk

114

*Snapshot from PCS Orders

Match up the Subhead with it’s correlating Transportation Account Code (TAC) on the NTS TAC and SDN Crosswalk.


3


* The TAC for NTS is not the same as the TAC on the member’s PCS Orders.

115

Match up the Subhead with it’s correlating Non Temporary Storage Standard Document Number (NTS SDN) on the NTS TAC and SDN Crosswalk.


4


116

For NTS, always use the current fiscal year (FY) in which the charges were incurred vice the FY of the member’s PCS Orders in accordance with DoD FMR Volume 3, Chapter 8, 0810.


5


117

*Snapshot from previous slide

Verify the NTS SDN and TAC on the STARS-FL Sample Disbursement matches the NTS SDN and TAC from the NTS Crosswalk and US Bank/Syncada Invoice.


6



118

Verify the STARS-FL sample amount matches the amount on the HHG Invoice (US Bank/Syncada Invoice).




119

Questions?