PROCURE-TO-PAYTRAINING SYMPOSIUM 2018
Intragovernmental TransactionsPresented by:
Ms. Lora Muchmore, OUSD(C) Business Integration Office and Mr. Selester Copeland, U.S. Marine Corps
12018 Procure-to-Pay Training Symposium
Introduction of IGT Issue at Federal and DoD Levels
• “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, Federal Financial Management (2009)
• “DoD financial management systems cannot produce the transaction-level details and supporting documentation necessary to reconcile buyer and seller data and support IGT eliminations on the applicable DoD financial statements.” ~ DoDIG Report No. DODIG-2015-056 (December 22, 2014)
• “The Department of Defense (DoD) Office of the Inspector General (OIG) issued 33 reports that discussed deficiencies in DoD IGTs. DoD disclosed that it could not accurately identify most of its IGTs by customer because its systems did not track the buyer and seller data needed to match related transactions. In addition, DoD could not fully reconcile IGTs with all Federal partners. DoD acknowledged that its inability to reconcile most IGTs resulted in adjustments to DoD financial statements that could not be fully supported.” ~ DoDIG Report No. DoDIG-2015-144 (July 7, 2015)
22018 Procure-to-Pay Training Symposium
Why is IGT a Material Weakness?
32018 Procure-to-Pay Training Symposium
DoD Challenges and Requirements
42018 Procure-to-Pay Training Symposium
DoD Charter and Policy
52018 Procure-to-Pay Training Symposium
PROJECT CHARTER
POLICY MANDATES
Governance Structure
62018 Procure-to-Pay Training Symposium
Data Requirements and Standards
Strategy and Policy
Monitoring and Reporting
Change Management
Governance Structure
72018 Procure-to-Pay Training Symposium
Data Requirements and Standards
Strategy and Policy
Monitoring and Reporting
Change Management
Intragovernmental Data Standard
G-Invoicing for IGT Business Rules
GEX Data Mapping
G-Invoicing for IGT Reporting Capability
System Change Requests
Future State G-Invoicing/IPAC
Improve Quality of Information
Principles of Total Quality Management and Lean
Create Integrated Project Plan and Schedule
Monitor and Report on Project Status
Establish Strategic Management Plan and Project Metrics and Produce Reports
Develop Implementation Outreach IGT Implementation Guides Unified Communications Strategy Online Presence for the IGT Module of G-
Invoicing Speaking Engagements and User Symposiums Distance Learning and Train-the-Trainer Strategy FM Career Workforce Training Modules
Approval of Buy/Sell IGT Views in DoD Business Enterprise Architecture
Guide Revisions to Applicable Laws, Regulations, and Policies, and Provide Implementing Instructions from FIAR Guidance
Development and Oversight of Management Internal Controls Programs (OMB A-123)
Treasury Implementation Schedule
82018 Procure-to-Pay Training Symposium
As of March 2018
FY 2017 (Oct 16 – Sep 17) FY 2018 (Oct 17 – Sep 18) FY 2019 (Oct 18 – Sep 19)
Release 2.0
CompleteJul 2017
CFO Memo and TFM Update
Spring 2017
GT&C Interface
Specs FinalJun 2017
Order Interface Spec Final
April 2018
Release 2.1GT&C
Mar 2018
Release 2.2Orders
Feb 2019Release 2.3
IPAC Release 18.3Invoices
Aug 2019
FY 2020 (Oct 19 – Sep 20)
CFO Memo and TFM UpdateSpring 2018
CFO Memo and TFM Update
Spring 2019
CFO Memo and TFM Update
Spring 2020
Release 2.0.1Patch
Aug 2017
Performance & Invoice Interface Spec Final Jan 2019
Today
Complete
At Risk
Delay
On Track
Release 1.0
Go LiveSep
2016
TFM BulletinDec 2016
“What’s on the Horizon”
What Can We Do Now?• Collect and record “trading partner” information
• Implement the following business process changes:– Establish buy and sell agreements prior to placing orders– Tie buyer’s purchase orders to the order acceptance – Tie invoice to the order– Record receipt and acceptance prior to payment – Enforce three-way match (order, invoice and receipt) prior to payment– Reconcile buyer/seller accounting transactions– Retain documentation
• Begin planning for target environment– Change management– Process walkthroughs
92018 Procure-to-Pay Training Symposium
Case Study: USMC's G-Invoicing Journey
102018 Procure-to-Pay Training Symposium
BackgroundUSMC G-Invoicing Journey (Nov 2011 to Present)• On 17 May 2012 HQMC, Deputy Commandant, Programs
and Resources (Resources), signed an Fiscal Service (FS) Agency Participation Agreement affirming the Marine Corps’ commitment to addressing long standing issues with Intra-Government Transactions (IGT) using G-Invoicing (Formerly G-Invoicing) as the central system to aid in the mitigation of the material weaknesses in IGTs.
• On 5 Aug 2013 OUSD Comptroller Signed Charter With Fiscal Service, US Treasury.
112018 Procure-to-Pay Training Symposium
Background (Cont’d)USMC G-Invoicing Journey (Nov 2011 to Present) Continued• In Dec 2014 the USMC moved all Procure-to-Pay (P2P-
Buyer) and Order-to-Cash (O2C-Seller) to Deputy Commandant, Installations and Logistics, Head Quarters Marine Corps (DC I&L, HQMC, DOD)
• Dec 2014 DC, I&L, HQMC (DOD) announce the Implementation of G-Invoicing (Formerly G-Invoicing) Phase 1 (General Terms, and Conditions – Existing MOAs, ISSA DD1144 Category 1 – Buy/Sell).
• On 9 Apr 2015 OUSD Comptroller Mandates G-Invoicing GT&Cs must cover 100%-of Reimbursable business by EOFY 2017 . We are working aggressively to reach this goals.
122018 Procure-to-Pay Training Symposium
How G-Invoicing Will Benefit USMCG-Invoicing Capability
• Centralized Current Documentation Repository under the same GT&C Number
• Order - Line Item Level Capability w/PSC-FSC• Timely Recording of Financial Transactions
/Adjustments Buyer/Seller Acknowledgement• Standard USGL Simultaneous D/B Event • Buyer/Seller Trading Partner Identification• Reduces Reconciliation and Eliminations Effort• Capture Seller Performance/Buyer Receipt and
Acceptance Acknowledgement (iRAPT Interface) w/Line Item Final Action Indicator
• Promotes Standard Business Processes, Policy and enforces Data Standards thru systems interfaces (Back-up Slides Status)
– Procure-to-Pay (P2P) Buyer– Order-to-Cash (O2C) Seller
• Restrict from Treasury Buy/Sell Where Main Account is the Same.
Benefits to the USMC & (DOD)
• Audit/Dispute Documentation Readily Available/Accessible by Buyer/Seller
• Line Item Accountability Goods/Services• Reduce Reverted Balances by allowing immediate
final adjustment during the year of execution• Reduce Stale Undelivered Orders Unpaid 4801
(ULO)s• Reduce/Eliminate Unsupported JV Entries.• Documentary Proof of Delivered Orders – Unpaid
4901 (Payable/Receipt /Acceptance)• Reduce Dispute/Charge Back Transactions• Enable quick training due to Standard Process
enforcement• Enable Completeness and Accuracy of reported
financial information• No Over Statement of Financial Statements –
Accounts: 4902 Delivered Orders – Obligations, Paid, 4252 Reimbursements and Other Income Earned - Collected
132018 Procure-to-Pay Training Symposium
USMC Way Ahead –Systems Integration Plan
• Implement Phase One - G-Invoicing General Terms and Conditions (GT&C) COMPLETED-AWTNG INTERFACE• USMC Performs in the G-Invoicing System – IN PROGRESS• Implement Phase Two - G-Invoicing Customer Establishment of Order IN PROGRESS PRDS/IGDS• PRBuilder – Via Global Exchange– IN PROGRESS• Implement Phase Three - Provider Acceptance of Order• PRBuilder – Via Global Exchange• Implement Phase Four – Seller (Perform)/Buyer (Receipt and Accept)• iRAPT (Formerly WAWF) – Via Global Exchange• Implement Phase Five – Seller (Submit Bill) IPAC to CARS-Perform Buy/Sell• G-Invoicing TWAI – IPAC and CARS Back to G-invoicing• Implement Phase Six – Defense Cash Accountability System (DCAS)• G-Invoicing Via TWAI/GEX to DCAS • Provider (Seller) Collection (COLL)/Customer (Buyer) Charge (DISB) • Full G-Invoicing deployment (GT&C, Order, Bill) Estimated Oct 2018 (FY19)
142018 Procure-to-Pay Training Symposium
Questions and Answers
152018 Procure-to-Pay Training Symposium
Backup
162018 Procure-to-Pay Training Symposium
Review of Audit Findings
172018 Procure-to-Pay Training Symposium
Key Enablers to Success
182018 Procure-to-Pay Training Symposium
IAA
SLOA &
PRDS
IGDS
GEX
Key Process Changes• Buyer/Seller agreements are required prior to order
execution (including all associated data standards).• Buyer’s purchase orders must be linked the seller’s sales
order through order acceptance.• Standard accounting data is required on both order and
order acceptance.• Invoice must be linked to the order.• Receipt and acceptance must be recorded before payment.• Eliminates buyer’s side need for “pay and chase”.
192018 Procure-to-Pay Training Symposium
20