Intergovernmental Transactions (IGT) Initiative - ASMC · Speaking Engagements and User Symposiums...
Transcript of Intergovernmental Transactions (IGT) Initiative - ASMC · Speaking Engagements and User Symposiums...
Intergovernmental
Transactions (IGT) InitiativeMs. Mary Kemp, OUSD (C) BIO
Mr. Michael Bolin, U.S. Treasury Bureau of the Fiscal Service
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The IGT Problem – at the Federal & DoD Levels:
“A major reason for the disclaimer is the government’s inability to adequately account for and reconcile intra-governmental 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 PresidentSource: 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.”
Source: DoD IG Report No. DODIG-2015-056
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BLUF
One of DoD’s key material
weaknesses is an inability to
reconcile inter/intra-
governmental (IGT) activity and
balances
Unsupported JVs for intra/inter governmental (IGT) buy/sell ~ $54 billion 2nd quarter, FY15
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IGT – also know as…
• Military Interdepartmental Purchase Requests (MIPRs)
• Reimbursables
• Buy/Sell Transactions
• Interagency Agreements
• IPAC
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Technically – What is an IGT out of balance?
RequestingAgency
ServicingAgency
Goods and/orservices
Out of balance
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$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
FY15-Q1
FY15-Q2
in B
illio
ns
FY15-Q1 FY15-Q2
Supported Adjustments $0.20 $0.20
Unsupported Adjustments $39.36 $54.10
IGT Eliminations - Journal Vouchers
FY15-Q1 FY15-Q2
Supported Adjustments $204.6M $202.3M
Unsupported Adjustments $39.36B $54.10B
Supported & Unsupported Entries – IGT JVs
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Or…the 5 whys of the IGT material weakness:
• Lack of Standards
• Decentralized
• Incompatible Systems
• High Volumes
• Worldwide
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At a Glance: DoD as the Buyer - CY14
-00
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
GSA - $825M
DHS - $1.1B
Dept of Treasury - $27B
OPM - $492M
Dept of Energy - $191M
Dept of Trans - $311M
HHS - $226M
DOJ - $272M
State Dept - $218M
Dept of Commerce - $49M
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At a Glance: DoD as the Seller - CY14
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5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
GSA - $2.4B
Dept of Energy - $828M
NSF - $33M
Dept of Interior - $554M
DHS - $$412M
DOJ - $$183M
USDA - $55M
GPO - $50M
Dept of Treasury - $$290M
State Dept - $1B
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Challenge Requirement
Lacking documentation for auditProvide for a data warehouse of IGT 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 clearinghouse 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 details transactions
Automate handshake and agreement between buyer and
seller before settlement (reduces chargebacks)
Prompt response to audit findingsNeed affordable and rapidly delivered solution to meet DoD
audit readiness campaign plan
Lack of visibility of current status of 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 systemsMust handle DoD volume and interface with DoD systems
using DoD Global Exchange solution and SLOA
Summary - Challenges and Requirements
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DoD To-Be Environment
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Invoice Processing Platform
Enabling “controlled” E2E IGT transactions
Reengineering the IGT business process
Leveraging Treasury’s shared service
Systems & Business Controls = Auditability
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Charter and Policy
PROJECT CHARTER
POLICY MANDATES
August 2013 Memo: Implementation of the Invoice Processing Platform for Buy-Sell Reimbursable
Transactions
April 2015 Memo: Implementing the Invoice Processing Platform for Intra-governmental Buy-
Sell General Terms and Conditions (GT&Cs)
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Change Management
Develop Implementation Outreach
IPP-IGT Implementation Guides
Unified Communications Strategy
Online Presence for the IGT Module of IPP
Speaking Engagements and User Symposiums
Distance Learning and Train-the-Trainer
Strategy
FM Career Workforce Training Modules
Standards & Policy
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)
Metrics
Improve Quality of Information
Principles of TQM and Lean
Create Integrated Project Plan and Schedule
Monitor & Report on Project Status
Establish SMP & Project Metrics & Produce Reports
Data Requirements
Intergovernmental Data Standard
IPP for IGT Business Rules
GEX Data Mapping
IPP for IGT Reporting Capability
System Change Requests
Future State IPP/IPAC
Governance Structure
Data Requirements
Standards & Policy
MetricsChange
Management
It’s all Important!
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Key Enablers to Success
IAA
GEXSLOA
& PRDS
Abrasion
Creative Resolution
Creative Agility
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DoD System Interface Connections (Pre-GEX)
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Post-GEX
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DoD To-Be Environment
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IPP Addresses DoD’s IGT Challenges
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IPP Addresses DoD Audit Findings
Finding FY15 Requirement IPP Requirement IPP
Existing RWO Audit Findings:
- “(Reporting Entity) has not been able to isolate…RWO transactions from the rest of the (Reporting Entity) financial transactions”
- Transactions were recorded in the improper period (NFR 2014-RWO General-001)
- Improper recording of (Reporting Entity’s) Intra-appropriation (APPN) reimbursable activity (NFR 2014-RWO-002)
- Lack of sufficient audit evidence to substantiate transactions (NFR 2013-RWO-003)
- Improper recording of collections (NFR 2014-RWO-004)
- Lack of routine tie out of feeder systems to the GL accounts. (NFR 2013-RWO-005)
1. Develop a MOU with each trading partner and agree to terms including receipt and acceptance, reconciliations, adjudication of required adjustments, and KSD retention
2. Identify a universe of transaction level detail for each trading partner.
3. With DFAS assistance, perform monthly reconciliations of transaction level detail with the trading partner to identify variances at the MIPR level.
4. Adjudicate the variances and identify adjustments required to align the transaction level detail for each trading partner.
5. Perform and record appropriate receipt and acceptance procedures
6. Maintain KSDs, per the MOU, which support the transaction level detail as well as receipt and acceptance
Provide for a data warehouse of intra-governmental transactions for audit, research and analysis
Need common identifier to synchronize buyer and seller accounting transactions (including proper general ledger treatment) using clearinghouse methodology
Require appropriate users to record receipt and acceptance, preserve for audit
Automate handshake and agreement between buyer and seller before settlement (reduces chargebacks)
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 IG Findings:
“Inaccurate and unsupported intra-governmental account balances continues to be one of the long-standing material control weaknesses preventing DoD from achieving audit readiness on the DoD Agency-wide basic financial statements.” – Report No. DODIG-2015-056
“DFAS personnel should use supportable transaction-level details (that is, the actual elimination amount) to reconcile and eliminate IGTs.” – Report No. DODIG-2015-056
Must handle DoD volume and interface with DoD systems using DoD Global Exchange solution and Standard Data Sets
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Six Month Outlook
APRIL MAY JUNE JULY AUGUST SEPTEMBER
Kickoff and Conduct Pilots
25% Reimb. Auth. On IPP
GT&Cs
Development of Enterprise
System ECPs
50% Reimb. Auth. On GT&Cs
Release GT&C Memo
Draft Intra-governmental Data Standard
(IGDS)
Release IGDS for Review
IPP-IGT Implementation
Memo
Receive and Analyze IGDS
Feedback
Development of Enterprise GEX
Maps
MILESTONES
Milestone Occurrence
LEVEL OF EFFORT
Less
More
PRIORITY
Lowest
Highest
PHASE
PlanningDevelop-ment
Policy
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Federal Strategy for Software VendorsOracle
One working group session First round of recommendations to be
submitted 2-June
SAP Three working group sessions Identification of SAP T-codes for IGT Recommendations for IGT solution in SAP
Momentum Two working group sessions Comprehensive analysis to the detail
level of IGDS (recommendations for additional fields, XML tag info, etc.)
Federal Intra-
governmental Data Standard
Sessions included review of the DoD-proposed solution to a data standard for
intra-governmental transactions
A data standard across the Federal government simplifies and mandates a
single requirement for COTS software
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Questions ?
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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 just completed her Master's Degree coursework and will graduate in June from the National Defense University.
Mary L. Kemp – OSD(C) Business Integration Office
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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 the Department of Treasury’s Bureau of the Fiscal Service for nine years. Mr. Bolin served as the EagleCash Program Manager, leading the roll out of the system to numerous contingency areas overseas. He currently leads 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 an MPA from the University of Maryland College Park. Mr. Bolin also holds a PMP certification.
Michael Bolin – Treasury, Bureau of the Fiscal Service
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