Intragovernmental Transactions - acq.osd.mil p2p...intragovernmental transactions between...

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)


Why is IGT a Material Weakness?


DoD Challenges and Requirements


DoD Charter and Policy


PROJECT CHARTER

POLICY MANDATES

Governance Structure


Data Requirements and Standards

Strategy and Policy

Monitoring and Reporting

Change Management

Governance Structure


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


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


Spring 2019


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


Case Study: USMC's G-Invoicing Journey


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.


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.


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


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)


Questions and Answers


Backup


Review of Audit Findings


Key Enablers to Success


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”.


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