Department of Defense Cash Accountability Strategy

[Pages:19]Department of Defense Cash Accountability Strategy

National PDI Workshop #51 June 2, 2016 Improved Cash Accountability

Alaleh Jenkins, Assistant Deputy Chief Financial Officer Michele Gaw, DFAS ? Director, Accounting Standards & Reporting

Agenda

? Overview ? Current State and Challenges

? Where We Are Now ? Problem Statement

? Cash Accountability Strategy

? Overview ? Strategic Initiatives

? Implementation Strategy

? Phased Approach ? Target State

? Key Take Aways ? Stay Connected

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Overview

What is Cash Accountability?

? Process for balancing, reconciling, and reporting disbursements and collections data to US Treasury throughout Department of Defense's (DoD's) end-to-end business processes

Why is it important?

? Provides Stewardship and Public Trust through Transparency

Reconciliation 4

? Standardizes and Improves Financial Data Quality

? Streamlines the Financial Management (FM) Environment

? Supports Audit Sustainability

Entitlement 1

Reporting 3

Disbursement 2

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Where We Are Now

Current State and Challenges

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Problem Statement

Current State and Challenges

? Requirements

? In January 2011, Treasury issued a memo requiring all Federal Agencies to begin daily reporting of its disbursements and collections versus at the end of the month by Fiscal Year 2014.

? In accordance with the Treasury Financial Manual (TFM) and the DoD Financial Management Regulation (FMR), Federal Agencies must post all transactions that affect FBWT to the United States Standard General Ledger (USSGL) account 1010 in their general ledgers and reconcile their USSGL account 1010 balances for each account to Treasury's records on a monthly basis.

? Problem Statement

? Depending on the Component and its Service Provider's location, DoD's Treasury Reporting process can vary based on process steps and multiple legacy Information Technology (IT) systems making it difficult to fully reconcile DoD's FBWT.

DoD must be able to trace our cash and balance our "check book" at the appropriation-level with Treasury (the "bank").

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Overview

Cash Accountability Strategy

Oversight

Implement enterprise standards

Change Management

Promote organizational

change

Cash Traceability and Central Accounting Reporting System (CARS)

Implementation

Daily Reporting

Direct Treasury Disbursing

Centralized post-pay actions in Treasury

systems

FBWT Reconciliations

Daily Reconciliations

Data Validation

Standard Financial Information

Structure (SFIS)

Data Management

Standard financial data/central data

broker

Intra-Governmental Transactions/G-Invoicing*

Standard buy/sell processes

Government wide Treasury Account Symbol

Adjusted Trial Balance System (GTAS)

Single reporting requirement

Sub-Allotments

Execution and internal controls

Funds Distribution

Electronic Funds Distribution (EFD)

Disbursing Station Symbol Number (DSSN) Drawdown

Reporting

1219/1220

Collections

Receivables management

Legacy Systems Drawdown

Transitions and sunsetting

Results

? Daily traceability of all outlays/collections ? Daily validation of accuracy of disbursements and collections ? Daily reconciliation of Treasury accounts with Component accounts ? Daily reconciliation of Treasury CARS to GL ? Reduction in reclassification entries ? Reduction in statement of differences, use of clearing accounts, or unsupported JVs

Outcomes

Auditability

OUSD(C) has a multi-point strategy for improving DoD's Cash Accountability.

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Strategic Initiatives

Cash Accountability Strategy

Strategic Initiative Description

CARS Implementation

Daily FBWT Reconciliation

Transition to daily reporting from monthly reporting

Perform daily reconciliations between Treasury accounts in CARS to Component accounts in the accounting systems

Current State

Benefits

Complies with Federal mandate Eliminates Statements of Differences

Provides real-time cash balancing with Treasury

Identifies potential reconciliation issues daily resulting in corrective actions prior to month?end budgetary reporting

Reduces use of clearing accounts and unsupported journal vouchers

Future State

Month-End

Month-End

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Strategic Initiatives

Cash Accountability Strategy

Strategic Initiative Description

Direct Treasury Disbursing

Transition ERPs/accounting systems and entitling systems to Treasury Direct Disbursing systems

Current State

Originating ERP/ Entitlement System (e.g., DAI, CAPS-W,

etc.)

Disbursing NonTreasury Direct Offices/Systems (e.g., MOCAS, ADS,

etc.)

Benefits

Send and Receive data directly from Treasury ? the authoritative source for financial data

Disburse directly from Treasury at no cost (which complies with OMB requirements to utilize federal sharedservices providers (FSSP))

Aligns with ERP out-of-the-box functionality (requiring less customization and reducing costs)

Future State

Originating ERP/ Entitlement System (e.g., DAI, CAPS-W,

etc.)

US Treasury

Treasury Reporting Systems

(e.g., DCAS, HQARS, etc.)

US Treasury

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