Government-wide Accounting (GWA) – What is it, how does it impact us, and where are we with achieving compliance? Defense Finance and Accounting Service

Joe McCullough Director, Enterprise Systems May 29, 2014

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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

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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) 6/11/2014

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CARS Overview

Program Description

Benefits

Goals

6/11/2014

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

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Treasury Mandate for CARS Compliancy 

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 6/11/2014

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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

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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 REPORTING ALC 1700

Navy (52) Marine (17)

Ships (Atlantic & Pacific) (171)

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

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

REPORTING ALC 2100

Army (60)

REPORTING ALC 5700

Air Force (8)

3801 5257

6599

6609

8541

8559

8560

8803 Settlement or Pending Closure DFAS DSSNs Non DFAS DSSNs

Total 308 DSSNs (As of April 8, 2014) 6/11/2014

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199 Active DSSNs DSSNs OPEN at Treasury

308

DSSNs under ALC 1700 240 Active 169 In-active / Contingency 39 Settlement 32 Pending Closure 0 DSSNs under ALC 2100 Active In-active / Contingency Settlement Pending Closure

60 24 30 4 2

DSSNs under ALC 5700 Active In-active / Contingency Settlement Pending Closure

8 6 0 1 1

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Magnitude of Impact: By Systems Environment Current State for DoD Expenditure Reporting (Monthly) Key Disbursing Systems ALC Reporter 1700

ALC Reporter 2100*

ALC Reporter 5700

SDI-E (ADS)

SDI-T (DDS)

Treasury Reporting Systems

DCAS MOCAS

HQARS SRD1 (Aug 2014)

SDI-T (DDS)

MOCAS

(Reporting Functionality transition to DCAS Nov 2015)

Monthly

Treasury System

SF 1219 (SOA) SF1220 (SOT)

SF 1219 (SOA) SF1220 (SOT)

STAR (Oct 2014) To be replaced by CARS

DCMS CDS (Jun 2016)

MOCAS

(Reporting Functionality transition to DCAS Nov 2015)

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.

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NTDO CARS Reporting Process by DSSN (Daily) EXPENDITURE TYPES

DOD SYSTEMS

INTRAGOVERNMENTAL TRANSACTIONS (IPAC)

IPAC WIZARDS

PAYMENTS (Checks & EFT, Non-IPAC)

Disbursing Systems (ADS, DDS) Self Disbursing Systems (MOCAS, MCTFS etc.)

COLLECTIONS/DEPOSITS (Checks & EFT , Non-IPAC)

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

DISBURSING OFFICER CASH

TBD

TREASURY SYSTEMS

Daily

IPAC

Bulk File

Check SRF

PIR (Payment Information Repository)

EFT SRF

CARS CIR (Collection Information Repository)

TBD

ALC 1700 (Navy) ALC 2100 (Army)

INTERFUND

Single Interfund Submission via Bulk File Format

ALC 5700 (Air Force)

DCAS CROSS DISB. REIMBURSEABLES ACCTG ADJUSTMENTS 6/11/2014

Via Bulk File Format

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RECLASS/CTA (Classification Transactions & Accountability)

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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

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Cash Accountability and Reconciliation Scope

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Critical Dependencies and Impacted Areas

ALC 1700

Category 1: DFAS DSSNs (6) Category 2: Non DFAS DSSNs, Except Navy Ships (11) Category 3: Navy Ship DSSNs (152)

ALC 2100

ALC 2100

Disbursing/Reporting Strategy (ECD  TBD)

Transition of HQARS Functionality to DCAS (ECD  Nov 2015)

Category 1: DFAS DSSNs (7) Category 2: Non DFAS DSSNs, Army (16)

Category 3: Non DFAS DSSNs, ODOs (2)

ALC 5700 ALC 5700

Reporting Strategy for DoD Sensitive Activity (ECD  TBD)

Reporting Process for DO Cash (ECD  TBD)

ALC 1700

Transition of DCMS Functionality to DCAS (ECD  Nov 2015)

Category 1: DFAS DSSNs (5) Category 2: Non DFAS DSSNs (1) NOTE: Numbers represent a count of Active DSSNs for each wave

Note: DSSN 6353 to be subsumed by DSSN 5570 (ECD  TBD) 6/11/2014

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Requirements Overview: IPAC SCOPE

REQUIREMENTS  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) REPORTING PROCESS DSSNs (5) 5570, 6355, 6551 8522,6102

Mega Wizard

Bulk File

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

MOCAS Wizard

Bulk File

DSSNs (2) 3801, 8803

DTIM

Bulk File

DSSNs (3) 8404, 6411, 6599

Direct Feed

DSSNs (2) 5207, 8735

ITS/USACE System

IPAC

CARS

IPAC DSSN Roll Up (22)

DFAS DSSN

REPORTING ALC 5700

Air Force (6)

3801 6599 8541 8559 8560 8803

REPORTING ALC 2100

Army (9)

5570 6355 6356 6411 6422 6469 6551 8735 6353

REPORTING ALC 1700

Navy (6) Marine Corps (1)

8522 8558 8565 8404 5207 8538 6102 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

Note: DSSN 6353 to be subsumed by DSSN 5570 (ECD  TBD) 6/11/2014

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Requirements Overview: Payments REQUIREMENTS

SCOPE

 DSSN reports Payment transactions with TAS/BETC classification via Standard Reporting Format (SRF) to PIR by 7 PM EST the day of the disbursement  Transitioning DSSN to Pilot:  Disbursing systems submit SRF to PIR  Reporting continues status quo  Transitioning Pilot DSSN to Partial Reporter  Disbursing Systems:  Submit SRF to PIR  Reclassification done on 1220 at month-end (will be done daily via CTA once DSSN is a full GWA reporter)  Reporting Systems:  Suppress payment data on expenditure reports  Reconcile FBWT

Payments DSSN Roll Up (198) REPORTING ALC 5700

Air Force (6)

3801 8541 8559 8560 8803 6599

REPORTING ALC 2100

Army (23)

5499 5570 5588 6321 6335 6355 6356 6387 6411 6422 6469 6551 6944 8548 8550 8733 8735 8748 8763 8788 8830 8831 8832

REPORTING ALC 1700

Navy (13) Marine (4)

5207 8522 8538 8558 8565 5197 6870 7053 7339 8371 8404 8552 8754 6102 6160 6187 6092

Navy Ships (152)

REPORTING PROCESS DSSNs (7) 3801, 5570, 6102, 6355, 6551, 8522, 8803

ADS

DSSNs (21) 5499, 5570, 5588, 6092, 6102, 6160, 6187, 6321, 6335, 6387, 6411, 8547, 8548, 8550, 8733, 8748, 8763, 8788, 8830, 8832, 8331

DDS

MOCAS

DSSNs (7) 5197, 5207, 7053, 7339, 8371, 8552, 8754

ADS / DFRRS

DSSNs (155) 6355, 8735, 8404, 152 SHIP DSSNs 6/11/2014

DEPENDENCIES

 Systemic:

Checks - SRF SAM

EFT - SRF

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

EBS/CEFMS/ NexGen/ NFRS

Checks - SRF

Edit/Validation Of TAS/BETC

EFT - SRF

Checks - SRF

PIR

EFT - SRF Checks - SRF EFT - SRF Checks - SRF

DFAS DSSN

CARS

 Transition of functionality from legacy reporting environment  HQARS to DCAS  November 2015  DCMS to DCAS  November 2015  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 Approach for DoD Classified business DSSN readiness to implement Collections  Implementation for Payments and Collections to occur concurrently due to the current reporting process

EFT - SRF

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Requirements Overview: Collections REQUIREMENTS

SCOPE

 DSSNs report collection transactions with TAS/BETC classification via Collection mechanisms to CIR  Transitioning DSSN to Pilot:  Complete Cash Flow Profile in SAM  Complete access group structures within SAM  Complete transition to CIR  Transitioning Pilot DSSN to Partial Reporter  Disbursing Systems:  Reclassification done on 1220 at month-end (will be done daily via CTA once DSSN is a full GWA reporter)  Reporting Systems:  Suppress collection data on expenditure reports  Reconcile FBWT

Collections DSSN Roll Up (198) REPORTING ALC 5700

Air Force (6)

3801 8541 8559 8560 8803 6599

REPORTING ALC 2100

Army (23)

5499 5570 5588 6321 6335 6355 6356 6387 6411 6422 6469 6551 6944 8548 8550 8733 8735 8748 8763 8788 8830 8831 8832

REPORTING ALC 1700

Navy (13) Marine (4)

5207 8522 8538 8558 8565 5197 6870 7053 7339 8371 8404 8552 8754 6102 6160 6187 6092

Navy Ships (152)

REPORTING PROCESS

DEPENDENCIES

SAM

COLLECTIONS/ DEPOSITS BY DSSN

OTC net Pay.gov CREDIT GATEWAY EFTPS ECP FRB CASHLINK FRB ACH Navy Credit Card

C-Key For Translation

Translated & Validated TAS/BETC

C-KEY

CIR

C-KEY

CARS

Transaction with TAS/BETC CARS Account Statement

6/11/2014

DFAS DSSN

 Systemic:  Transition of legacy reporting environment  HQARS to DCAS  November 2015  DCMS to DCAS  November 2015  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 Approach for DoD Classified business DSSN readiness to implement Payments  Implementation for Payments and Collections to occur concurrently due to the current reporting process

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Requirements Overview: Interfund REQUIREMENT

SCOPE

 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

 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) DEPENDENCIES

REPORTING PROCESS**

CARS

ALC 1700

INTERFUND BILLINGS

DCMS

HQARS

NEW ALC

ALC 5700 DCAS

ALC 2100

Manual Submission of Consolidated Interfund Report

 Operational:  Change in business process for submission of a single consolidated report by DCAS vs. individual submission for each ALC

CTA Via Bulk File Upload

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

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Navy/USMC Army Air Force

CARS Implementation Approach and Schedule FY 2013 1

2

3

FY 2014 4

1

2

3

FY 2015 4

O

N

D

J

F

M

A

FY 2016 M

J

J

A

S

O

N

D

J

F

M

A

FY 2017 M

J

MISC.

DoD/OMB/Treasury Approval for DO Cash/CIHO

O

N

D

J

F

M

A

M

J

HQARS DSSN 5570, 6355, 6551

DSSN 6102 DSSN 8558, 8565, 8538

DSSN 6356, 6422, 6469

DSSN 5207

IPAC

S

DCMS

SRD1

DSSN 6411 DSSN 6353

DSSN 8404

DSSN 8803 DSSN 6599 MEGA WIZARD

DSSN 5570

DSSN 6092,6160, 6187

PAYMENTS & COLLECTIONS

DSSN 8735

DSSN 8541, 8559, 8560

DSSN 3801

Disbursing/Reporting Strategy for Navy Ships Navy Ship DSSNs (152)

DSSN 6102

DSSN 6356, 6422, 6469

DSSN 8735 DSSN 6944

DSSN 6355

DSSN 5207

DSSN 6551 DSSN 5499 DSSN 5588 DSSN 6335 DSSN 6387

DSSN 7339 DSSN 8558, 8565, 8538 DSSN 5197

DSSN 6411 DSSN 8548 DSSN 8748 DSSN 8541, 8559, 8560 DSSN 8763 DSSN 3801 DSSN 8788

DSSN 8552 DSSN 8522 DSSN 8371

DSSN 6870 DSSN 7053 DSSN 8404 DSSN 8754

INTERFUND

A

CDS

STAR Decommissioned

DSSN 8522

J

DSSN 6599 DSSN 8803

DSSN 8830

ALC 1700 ALC 5700 ALC 2100

On Track

Complete

6/11/2014

Delayed

Not Started

Decision Point

Deployment of CDS/SRD-1 Customers to ADS

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17 Transition of Reporting & Reconciliation Functionality to DCAS 17

CARS Implementation Status and Next Steps  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

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GTAS Overview

Program Description

Benefits

Goals

6/11/2014

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

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Current Transaction and Reporting

A G E N C Y

N o n & P a r t i a l

CTA SOD

FRB

FR

Intragov Reports

IPAC

& P a r t i a l 6/11/2014

IRAS

SOD Fiduciary Confirmatio ns

F u l l

A G E N C Y

GFRS

PAYMENTS CIA

IFCS

SOD Agency A136 F/S

COLLECTIONS

FACTS I

SAM

SOD Account Statement Monthly Treasury Statement Combined Statement

SF 133 2108

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FACTS II

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Future Transaction and Reporting

A G E N C Y 6/11/2014

GFRS

FRB

FR

IPAC

TDO Payments

G T A S

NTDO Payments CIA

Collections SAM Account Statement Monthly Treasury Statement Combined Statement

USSLG TFM Agency F/S Intragov Reports

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A G E N C Y 21

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)

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Questions

6/11/2014

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IMPROVING DOD’S INTER/INTRAGOVERNMENTAL 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 intragovernmental 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 IPAC 27

Why is IGT a material weakness?

Goods and/or services

Requesting Agency

Servicing Agency

Out of balance

28

Why is IGT a material weakness?

Decentralized

Incompatible Systems

Worldwide Lack of Standards High Volumes 29

DoD Challenges and Requirements 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) 30

Recap - IGT Strategic Goals • 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.

31

Invoice Processing Platform

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. 32

Project Charter and August 5, 2013 Memo 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. 33

DoD Areas of Focus

Data Requirements

Standards & Policy

Metrics

Change Management

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. 34

IPP Governance Board

IPP Implementation Governance Board

Strategy and Policy

Requirements and Data Standards

Intergovernmental Transaction WG

Reporting and Monitoring

Change Management

35

Key Enablers to Success

IAA

SLOA & PRDS

GEX

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Interagency Agreement (IAA) • 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 37

One Form with Two Parts • 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. 38

Global Exchange (GEX) • 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

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Pre-GEX

Post-GEX

To-Be Environment

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Where We’ve Been Phase 1 completed (project initiation/ discovery)

2013-May

2012 IPP IGT proof-ofconcept conducted

Strategic planning session held 2013-Nov

2013-Aug OUSD(C) memo issued

Official program kick-off held 2014-Jan

2013-Dec Collaborative Agency Working Group (CAWG) meeting held; Release 3.1 deployed (includes invoice download/upload, PO download, notifications)

Phase 3 completed (implementation approach/plan for USMC)

2014-Apr

2014-Apr Phase 2 completed (requirements identification and fit-gap analysis)

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Where We’re Headed

Consolidation of all IGT-related policies and regulations

APRIL

Consolidation of all IGT-related data fields

MILESTONES

Develop data mapping of new IGT standard feed encompassing all required fields for IGT Develop system

Wave 1: Adopters (GT&Cs)

requirements for IGT transaction pilot(s)

MAY

JUNE

JULY

AUGUST

Wave 1.a: (GT&Cs)

Develop new IGT standard process flows LEVEL OF EFFORT Less

PRIORITY

SEPTEMBER

Wave 2: adopters (GT&C & Orders) Develop key performance metrics

OCTOBER

Develop critical interfaces and crosswalks for pilot to GEX and IPP

Highest

Begin briefing communities on IGT way forward

PHASE

Lowest

Milestone Occurrence

NOVEMBER

Planning

Develop -ment

Transactions

44 More

Wave 1 – Early Adopters FY14

DoD Policy Directive

Adoption – IPP becomes more valuable with increased use Wave 2 – FY15

2-Party Buy/Sell Transactions

500 TRANSACTIONS PER MONTH

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

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

• 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

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DoD IGT Functional Strategy

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Mary L. Kemp

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.

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Michael Bolin

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. 48

Points of Contact • Mary Kemp, OUSD(C), BIO Phone – 703-697-0503 Email – [email protected]

• Joe McCullough, DFAS Phone – 216-204-3000 Email – [email protected]

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