IntraGovernmental Transaction System IGTS

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Intra-Governmental Transaction SystemIGTS

• Acquisition Management Organization
• Sue Zaretki
• Program Executive Officer (Acting)
• February 2, 2005

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Overview

• Elimination Reporting Requirement
• Intra-governmental Transactions
• IGTS Program History/Evolution
• Phased Elimination Strategy
• Program Status
• Next Steps
• Timeline

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Elimination Reporting Requirement

• Generally Accepted Accounting Principles (GAAP)
  require the elimination of intra-governmental
  transactions from consolidated financial
  statements to prevent overstating accounts for
  intra / inter-entity activity
• FY 04 DoD processed 600 Billion worth of
  eliminations
• Navy processed on average 48 Billion worth of
  eliminations on a quarterly basis
• DoDs Material Weakness
• DoD cannot support eliminations with the detail
  required to pass an audit
• Cannot support eliminations with transaction
  level data
• Estimations and allocations are used to determine
  eliminations
• Cannot identify trading partner
• Current method of eliminations is not auditable
  because of lack of detail
• Seller side rules
• Buyer side force to adjust books to agree with
  Seller
• To achieve an unqualified audit opinion DoD must
  overcome this obstacle

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Intra-governmental Transactions

• Definition
• Any transaction involving sales, services or
  transfers within or between two entities of the
  federal government
• Examples of Intra-governmental Transactions
• Goods/Services purchased via MIPR or NC 2275
• Interfund Purchases
• Transportation purchased from US Transportation
  Command (USTRANSCOM), including those billed
  directly from USTRANSCOM or via PowerTrack
• Transactions with the Department of Labor
  relating to the Federal Employees Compensation
  Act
• Transactions with the Office of Personnel
  Management relating to employee benefit programs.

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Intra-governmental Transactions

• Examples of Non Intra-governmental Transactions
• Payments to individuals
• Payments to vendors/contractors
• Direct-cite MIPRs
• only reimbursable MIPRs generate
  intra-governmental transactions
• Transactions with state/local governments
• Transactions with Non-Appropriated Funds

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Intra-governmental Transactions

• Levels of Intra-governmental Transactions
• Level 1 transactions are between DoD and Non-DoD
  Federal Entities
• Example Department of Navy to NASA
• Level 2 transactions are between DoD Reporting
  Entities
• Example Navy General Fund to Navy Working
  Capital Fund
• Level 3 transactions are within a DoD Reporting
  Entity, i.e. Navy
• Example Navy General Fund to Marine Corp
  General Fund

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Intra-governmental Transactions

• Issues
• Accounting systems do not capture trading partner
  information at the transaction level
• Accounting systems cannot produce the data
  necessary for reconciliations between buyers and
  sellers
• Accounting systems were designed and implemented
  prior to the establishment of the requirement to
  eliminate intragovernmental transactions

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IGTS Program History / Evolution

• August 2001 Intragovernmental transactions and
  eliminations identified as a material Accounting
  weakness across the federal government.
• October 2002 OMB establishes business rules for
  intragovernmental transactions for the
  Intragovernmental Transaction Exchange (IGTE)
• Establish standard data elements for orders and
  bills
• Mandate Business Partner Number (BPN)
  registration
• Mandate IGTE use by 1 July 2004 (postponed)
• August 2003 Memo from OSD Comptroller and OSD
  Acquisition, Technology and Logistics establishes
  the Intra-governmental Transaction System (IGTS)
  Integrated Process Team for intra-governmental
  transactions

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IGTS Program History / Evolution cont.

• November 2003 DFAS given authority to establish
  the Intragovernmental Transaction System Program
  Management Office (IGTS PMO).
• November 2003 through December 2004, the IGTS PMO
  developed IGTS - Phase I.
• IGTS MISSION
• The IGTS mission is to develop a DoD-wide
  solution for all levels of transactions that
  complies with OMB and OUSD(C) intra-governmental
  requirements.

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Phase I IGTS/IGTE

• IGTS
• DoD solution
• DoD entry point to IGTE for Level 1 Transactions
• Online entry for orders and bills
• Validate grantors and performers lines of
  accounting
• Online error correction
• Repository for Level 1 Transactions

• IGTE
• Federal solution
• Intragovernmental Transactions
• (Level 1)
• Capture data at Treasury Index
• Online acceptance or orders and bills
• Initiate IPAC payment
• Reconciliation reports to support Level 1
  Eliminations

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Phase II Intra-DoD Eliminations

• Objectives
• Focus on solving material weakness
  intragovernmental eliminations
• Create a repository for all transactions
  supporting eliminations
• Capture key data from accounting systems to
  support eliminations
• Buyer Document Number
• Buyer Seller Line of Accounting
• Buyer Seller Business Partner Number (BPN)
• Buyer Transactions (Obligation, Accounts
  Receivable, Expense)
• Seller Transactions (Unfilled Customer Order,
  Accounts Payable, Revenue)
• Transaction Amount
• Transaction Date
• Advance Indicator
• Provide reports at different reporting levels
• Support reconciliation process between entities

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Phase II Intra DoD Eliminations

• Scope
• Types of Transactions
• Sale of Goods and Services
• Reimbursable Orders
• Interfund
• Transportation
• Purchase Card
• Fuel Purchases
• Store detail transactions in repository to
  support eliminations
• Benefits
• Consolidated repository of all intra-governmental
  transactions
• Query capability
• Status reports
• Reconciliation
• Facilitate DoD obtaining unqualified audit
  opinion
• Eliminations done based on transactions, not
  seller side

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Program Status

• Requirement Definition Process
• Site visits to Defense Agencies and all DFAS
  Centers
• Functional Subject Matter Experts (SME)
• Business Process Flow
• Business Rules for Data
• Data Origination
• Systems Subject Matter Experts (SME)
• Data Layout
• Transaction Type
• Transaction Volume
• Data Elements

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Program Status

• Published Draft Documents Dec 23, 2004
• Concept of Operations
• Functional Requirements Document (FRD)
• Interface Control Document (ICD)
• Business Process Change Document (BPCD)
• Vetted Documents with R-WIPT/Functional/Systems
  SME
• December 23, 2004 January 14, 2005
• Documents reviewed by Requirements Working
  Integrated Product Team (R-WIPT) and SMEs
• January 27 28, 2005
• Met with R- WIPT
• Reviewed and analyzed comments

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Next Steps

• Update CONOPS and approved FRD
• Analyze requirements
• System Development/Design
• Testing
• Training
• Implementation

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IGTS Timeline
FY 2004
NAME
FY 2005
Phase 1 Intragovern-mental transactions Interface
with IGTE
Notional Schedule Phase 2 Intra-DoD
transactions Interfaces with accounting systems
10/04 -2/05
3/05 -6/05
5/05-8/05
10/05
8/05-9/05
Enterprise Performance Integration Testing
Deployment
Training
Data base load
Requirements Definition Analysis
Design Development
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DFAS Your Financial Partner _at_ Work
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IGTS Phase II - Intra-DoD Elimination Process
Key Current Process Proposed Process
Purchase Request
Order Accept
Order
Fulfillment
Key Element Not currently available (A)
Advance Paid/Received
Intragovern-mental Order
Acctg Sys (Buyer)
Rec. Fulfill. Evidence
Bill Accept.
Obligation
Disburse
Commit- ment
Rec. Fulfill. Evidence
Generate Bill
Unfilled Order
Acctg Sys (Seller)
Collection
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IGTS Repository
Obligation Data Trans. Type Common Doc Buyer
LOA Buyer BPN Trans.Amount Trans. Date Seller
BPN Adv. Indicator
Unfilled Order Data Trans. Type Seller
BPN Seller LOA Common Doc Buyer LOA Buyer
BPN Trans.Amount Trans. Date
AR/Revenue Data Trans. Type Seller BPN Seller
LOA Common Doc Buyer LOA Buyer
BPN Trans.Amount Trans. Date
AP/Expense Data Trans. Type Seller BPN Seller
LOA Buyer Doc Common Doc Buyer LOA Buyer
BPN Trans.Amount Trans. Date
Disbursement Data Trans. Type Bill Number Bill
Amount Seller BPN Seller LOA Common Doc
Buyer LOA Buyer BPN Trans.Amount Trans. Date
Collection Data Trans. Type Bill Number Bill
Amount Seller BPN Seller LOA Common Doc
Buyer LOA Buyer BPN Trans.Amount Trans. Date