Defense Finance and Accounting Service (DFAS) andOUSD (Comptroller) Business Integration Office (BIO)
David Eaton, DFASMary Kemp, OUSD(C) BIO
Cash Accountability and TraceabilityOverview and Path Forward
18-May-15 | Slide: 2
•Vendor Pay
• Contract Pay
• Travel
• IPAC/IGT
• Interfund
• Transportation Pay
•Military Pay
• Civilian Pay
•Reimbursables
Do
DIn
itia
tive
s
InputBusiness Activities
Outputs Outcomes
Imp
rove
d A
ud
itab
ility
Fed
eral
Go
vern
men
t A
cco
un
tab
ility
Opportunities & Risk
Strategy & Resource Allocation
Future OutlookPerformance
Enterprise Business Model
Customer Driven Focus
Mission and VisionCompliance
• Compliance
•Direct to Treasury Disbursing
•DCAS Reconciliation
•Govt. Wide Accountability
• FIAR
Services/Assessable
Units
FM Functional Strategy
Fed
eral
Init
iati
ves
Cash Accountability Program Overview
18-May-15 | Slide: 3
Problem Statement
DoD FBWT auditability cannot be
sustained with today’s cumbersome
monthly cash reporting & recon
processes and disparate systems
4
Challenge Requirement
Source Document ErrorsUtilize data validation earlier in end-to-end business
processes
Inconsistent edits (ERP, entitlement, DCAS,
DDRS, Treasury)Leverage a standard validation service
Non-Standard Recon Processes and Tools Transition to a DoD Centric Model
Point to point interfaces Utilize a data broker in lieu of point-to-point interfacing
Large unsupported JVs and use of suspense
accounts to balance cash
Business Process that eliminates out of balances on a daily
basis
Compliance with US Treasury GWA/CARS
daily reporter mandate
Design DoD-wide process and align systems to ensure
compliance
Direct Cite/Cross-Disbursing Business
Process
Drive business process change to IPP or funding
realignment, minimizing Cross-Disbursing transaction
volume
DoD Challenges and Requirements
18-May-15 | Slide: 5
What is the Magnitude - Analyzing the Problem?
Problem Impact
Init
iati
ves
Ca
sh T
race
ab
ilit
y &
Rec
on
cilia
tio
n
Da
ta
Ma
na
gem
ent
Dra
wd
ow
n P
lan
Imp
lem
enta
tio
n
of
DSS
N P
aym
ent
&C
olle
ctio
ns
GTA
S P
roje
ct
IPP
Pro
ject
Trea
sury
D
isb
urs
ing
Pro
ject
In-Transits $26 Billion
Undistributed $3.9 Billion
Unsupported Accounting Entries
$164.46 Billion
Intra/Inter governmentalEliminations
$93 Billion
Budgetary / Proprietary Differences
$7 Billion
FBWT• Treasury Reports • Statement of Accountability
(SOA)/ Statement of Transactions (SOT)
• Year Closing Statement
18-May-15 | Slide: 6
DCD/DCWCentral data repository
Cash Traceability*Enterprise Daily Cash
Reporting and Traceability (DCAS)
Many Initiatives Affect FBWT:
Sub-Allotments*, **Execution and internal
controls
OversightImplement
enterprise standards
Change Management
Promote organizational
change
CARS Implementation
Reporting
IGT/IPP*Standard buy/sell
processes
Direct Treasury Disbursing*,**
Centralized post-pay
Auditability
Delinquent DebtManagement of delinquent debt
Results Outcomes
• Daily traceability of all outlays/collections via DCAS/GEX
• Daily validation of accuracy of disbursements and collections via GEX
• Daily reconciliation of Treasury accounts with Component accounts
• Daily reconciliation of Treasury CARS to GL via DCAS/GEX
• Reduction in reclassification entries
• Reduction in statement of differences, use of clearing accounts, or unsupported JVs
Data Management*,**Standard financial data/central data
broker
CollectionsReceivables
management
Existing Working Group
* Initiative directly relates to Audit Readiness, Daily Funds Balance w/Treasury (FBWT)/Cash Balancing Goals
** Initiative heavily enables Auditability & Strengthens Financial Controls or Maximize ERPs as Key Enabler
Legacy Systems Drawdown
Transitions and sunsetting
DSSN Drawdown Reporting1219/1220
Funds Distribution*, **Electronic funds
distribution
Contingency Operations
Support
GTASSingle reporting
requirement
Sensitive Activities
Classified data
CATWG
18-May-15 | Slide: 7
Initiative: Intragovernmental Transactions
System Improvement
• Establish enterprise data warehouse of intra-governmental transactions for audit, research and analysis
• Automate handshake and agreement between buyer and seller before settlement (reduces chargebacks)
• Leverage DoD Global Exchange (GEX) solution and Standard Line of Accounting (SLOA)
Standardization
• Establish common identifier to synchronize buyer and seller accounting transactions
• Establish proper general ledger treatment for all events
• Build common Intragov Data standard
Process Improvement
• Documented terms and conditions
• Documented performance and receipt
• Eliminate the pay and chase mentality
IGT Summary Process
18-May-15 | Slide: 8
Initiative: Cash Accountability Model
System Improvement
• Single system – Defense Cash Accountability System – to perform expenditure reconciliations
• Adapt legacy disbursing systems to perform daily disbursing using Treasury standards
• Reduce the number of systems reporting to Treasury
Standardization
• Formation of DoD Cash Accountability Working Group
• Expand development of data standards around a FBWT Business Enterprise Architecture
• Leverage Treasury Shared Services processes and procedures
Process Improvement
• Single DoD solution for Cash Reconciliation and Reporting
• Leverage ERP capabilities to perform Treasury Direct Disbursing functions
• Partner with Treasury and DoD Disbursing Offices to implement CARS and GTAS reporting
Cash Notional Target
18-May-15 | Slide: 9
Initiative: SLOA Validation Service
Systems Improvement
• Provide a mechanism that source systems can use to validate transactions prior to their dispatch on the E2E process
• Improve enterprise analytics through exposure of SFIS/SLOA financial data
Standardization
• Improve data quality by enforcing standard data structures for DOD financial information
• Exploit GEX to transport SLOA-compliant financial transactional data between core E2E financial, feeder, disbursing and reporting systems.
Process Improvement
• Supports Treasury/GWA modernization
• Standardization of reconciliation processes
• Improve data quality and consistency across entire E2E processes by reducing errors
SCS Integration
18-May-15 | Slide: 10
Questions?
Mary Kemp, OUSD(C) [email protected]
David Eaton, [email protected]