Intragovernmental Transactions

Transcription

1 PROCURE-TO-PAY TRAINING SYMPOSIUM 2018 Intragovernmental Transactions Presented by: Ms. Lora Muchmore, OUSD(C) Business Integration Office and Mr. Selester Copeland, U.S. Marine Corps 1

2 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 (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 (July 7, 2015) 2

3 Why is IGT a Material Weakness? 3

4 DoD Challenges and Requirements 4

5 DoD Charter and Policy PROJECT CHARTER POLICY MANDATES 5

6 Governance Structure Data Requirements and Standards Monitoring and Reporting Strategy and Policy Change Management 6

7 Governance Structure Data Requirements and Standards 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 Monitoring and Reporting 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 Approval of Buy/Sell IGT Views in DoD Business Enterprise Architecture Strategy and Policy 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) Develop Implementation Outreach IGT Implementation Guides Unified Communications Strategy Online Presence Change for the IGT Module of G- Invoicing Speaking Management Engagements and User Symposiums Distance Learning and Train-the-Trainer Strategy FM Career Workforce Training Modules 7

8 Treasury Implementation Schedule As of March 2018 Complete On Track Delay At Risk Today FY 2017 (Oct 16 Sep 17) FY 2018 (Oct 17 Sep 18) FY 2019 (Oct 18 Sep 19) FY 2020 (Oct 19 Sep 20) TFM Bulletin Dec 2016 What s on the Horizon CFO Memo and TFM Update Spring 2017 GT&C Interface Specs Final Jun 2017 CFO Memo and TFM Update Spring 2018 Order Interface Spec Final April 2018 Performance & Invoice Interface Spec Final Jan 2019 CFO Memo and TFM Update Spring 2019 CFO Memo and TFM Update Spring 2020 Release 1.0 Go Live Sep 2016 Release 2.0 Complete Jul 2017 Release Patch Aug 2017 Release 2.1 GT&C Mar 2018 Release 2.2 Orders Feb 2019 Release 2.3 IPAC Release 18.3 Invoices Aug

9 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 9

10 Case Study: USMC's G-Invoicing Journey 10

11 Background USMC 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. 11

12 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 We are working aggressively to reach this goals. 12

13 How G-Invoicing Will Benefit USMC G-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 13

14 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) 14

15 Questions and Answers 15

16 Backup 16

17 Review of Audit Findings 17

18 Key Enablers to Success IAA GEX SLOA & PRDS IGDS 18

19 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. 19

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