Key Year End Dates

1
Key Year End Dates
Accountant, Accounts Maintenance / Analysis
Defense Finance and Accounting Service August 8,
2006
2
AGENDA

• Obligation Processing
• Payroll Processing
• Disbursing/Expenditure Processing
• Supply Processing
• STANFINS Processing September 06
• Reporting

3
Obligation Processing September 2006

• No unilateral obligations adjustments posted by
  DFAS the final two weeks 17 30 Sep
• ODS Obligation Matching transactions runs through
  27 Sep
• Under 2,500 threshold suspended 28 30 Sep, all
  adjustments coordinated
• MODs submitted for September utility
  requirements, to DFAS-RO 6 Sep

4
Payroll Year End Schedule

• Payroll 6 Sep
• Actuals for pay period ending 19 Aug
• MOD for 20 Aug 30 Sep
• Payroll 15 Sep
• Actuals for pay period ending 2 Sep
• MOD for 3 30 Sep
• Payroll 28 Sep
• Actuals for pay period ending 16 Sep
• MOD for 17 30 Sep
• Payroll adjustments cutoff 22 Sep
• To include MOD adjustments for overtime and
  awards
• DCPS Fund Data Report will be available 29 Sep
• Please notify the CPOC/CPAC if there are any APC
  changes from Fiscal Year 2006 to 2007

5
Defense Travel System (DTS)

• DTS will remain open for input through Year End
• BUT channels to the accounting systems will be
  turned off 27 Sep 06 at Noon EDST
• MODs are required for input after above date

6
CARE Year End Schedule

• Final CARE obligations 28 Sep
• MODs for purchases from 19 30 Sep, must be
  obligated NLT 22 Sep
• September 19th cutoff any transactions after
  will reflect October 19th statement
• LOA posting September 20th 30th FY06 LOA
• LOA posting October 1st 6th FY06 LOA will
  need reallocation to FY07
• October 7th 8th Year End Processing

7
IPAC Year End Schedule

• All IPAC bills entered transactions must be input
  NLT September 24.
• Any transactions processed after these dates must
  be coordinated with the Trading Partner and
  DFAS-IN
• Ken Hurley is the POC at DFAS-IN [phone]
• Cutoff for bills charged is midnight on September
  30.

8
Single Stock Fund

• Final Automated Obligations Sept 26th
• MOD needed for requisitions after 26th
• Supply system will remain operational through
  Sept 30th (still good for input).
• High Priority requisitions / Bona-fide need must
  be manually walked through the system.

9
NON SARSS Automated Files

• Army Food Management Information system (AFMIS)
• Date 26 Sept 06
• Fuels Automated System (FAS)
• Routine processing through Sept 26th
• Sept 30th MOD for estimated charges 28 - 30
  Sept 06
• Oct Reverse MOD input to actual doc-no

10
STANFINS Processing Schedule - 2006

• Standard daily STANFINS processing through 27 Sep
  06
• STANFINS processing 28 Sep 06
• One cycle per FLAO
• STANFINS processing 29 Sep 06
• At least two cycles per FLAO
• Additional cycles per coordination between FLAO
  and customer
• Daily STANFINS Processing 30 Sep 06
• Cycles 1, 2, 3 per FLAO
• Additional cycles per coordination between FLAO
  and customer
• STANFINS reports will be available in OLRV within
  an hour after initiating the STANFINS cycle

11
Important Notes Year End Schedule

• Any SF1081 transactions must be coordinated with
  any affected FSNs on the 29th and the 30th.
• Obligation matching via ODS will be suspended
  from Sept. 27th through Sept. 30th.
• http//www.asafm.army.mil/fo/fod/yearend/yearend.a
  sp

12
Canceling/Expiring Appropriations

• Fund Holder Goals/DFAS Goals
• Reduce Un-liquidated obligations (ULOs) canceling
  year to zero
• Reduce expired year travel advances to zero

13
Canceling/Expiring Appropriations

• Important Reminders
• Clear/Accept all transactions citing canceling
  appropriations by 25 Aug 2006
• If a charge or clearance cites a canceling
  appropriation and the offset is in a
  non-canceling appropriation on the August
  uncleared.
• Notify Organizational/Network Analysis Branch,
  317-510-5439 or DSN 633-5439 during September to
  do file maintenance.
• Canvas all UIDRs (unmatched input data
  reconciliation) in august for unprocessed
  canceled year transactions
• Do not process any charges citing a canceling
  year appropriation in September, without
  communication with the charged activity.
• Do not reject any charges to any DSSNs-per IAW
  ACCTG POL IMPL MSG 06-16, 312025Z Jan 06,
  Elimination of Manual Rejects.

14
Canceling/Expiring Appropriations

• Expiring Year Appropriations
• DEPT FY BS LIMIT
  DEPT FY BS LIMIT
• 21 1 1018
  21 7 2050
• 21 1 1082
  21 1 2060
• 21 1 2010
  21 1 2065
• 21 1 2020
  21 1 2070
• 21 0 2022
  21 1 2080
• 21 9 2031
  21 7 2085
• 21 9 2032
  21 7 2086
• 21 9 2033
  21 1 2150
• 21 9 2034
  21 1 2390 0301
• 21 9 2035
  21 1 2390 0302
• 21 0 2040
  21 1 2390 0303

15
Canceling/Expiring Appropriations

• Expiring Year Appropriations cont.
• DEPT FY BS LIMIT
  DEPT FY BS LIMIT
• 21 1 2390 0311
  97 9 0130 1873
• 21 1 6060
  97 9 0130 1874
• 21 7 7020
  97 9 0130 1875
• 21 1 7025
  97 9 0130 1876
• 21 1 7120
  97 9 0130 1877
• 97 1 0100
  97 0 0130 1861
• 97 1 0101 1131
  97 0 0130 1862
• 97 1 0104 0020
  97 0 0130 1863
• 97 9 0107 3030
  97 0 0130 1864
• 97 1 0107 3020
  97 0 0130 1865
• 97 9 0130 1871
  97 0 0130 1866
• 97 9 0130 1872
  97 0 0130 1867

16
Canceling/Expiring Appropriations

• Expiring Year Appropriations cont.
• DEPT FY BS LIMIT
  DEPT FY BS LIMIT
• 97 0 0130 1868
  97 1 0301
• 97 0 0130 1869
  97 9 0350
• 97 1 0130 1846
  97 9 0390 0201
• 97 1 0130 1882
  97 0 0390 0101
• 97 1 0130 1883
  97 0 0390 0102
• 97 1 0130 1884
  97 1 0391
• 97 1 0130 1885
  97 0 0400
• 97 1 0130 1886
  97 0 0450
• 97 1 0130 1889
  97 0 0460
• 97 9 0134
  97 1 0497
• 97 9 0300
  97 7 0500

17
Reporting Year end delegation and certification
letters

• DFAS
• Director of Accounting - John Kay
• Deputy Director of Accounting Mary Kemp
• Accounting Team Field Level Accounting
  Operations Branch
• CUSTOMER
• Certifying Official
• Budget Officer/Analyst
• Budget Team

18
Reporting Year end delegation and certification
letters

• Certification delegation memorandum delegating
  year-end report authority
• The commander can delegate, in writing, to a
  position or named individual and alternate
• Deputy Commander Chief of Staff
• Director of Resource Management (DRM)
• Comptroller

19
Reporting Year end delegation and certification
letters

• Process for submission of delegation and
  certification letters
• DFAS-RO Account Maintenance/Internal Review Team
  will provide examples from the Year end guidance
  of
• Delegation / Certification letters
• Letter of Instruction
• Appropriation excel spreadsheet
• Website https//dfas4dod.dfas.mil/centers/dfasin/
  rome/yearend/
• POCs
• Cliff Deamer, FORSCOM
• Mike Wajda, GLOBAL
• Colleen Dunn, FLAOB

20
Reporting Year end delegation and certification
letters

• 15 Sept 06 Delegation letters are due to
  DFAS-RO/FLAOB, (Field Level Accounting Operations
  Branch) by Email, FAX or regular UPS.
• FLAOB will forward the delegation letters to the
  Internal Review Team for tracking.
• 6 Oct 06 112/118 FY06 Reports Final STANFINS
  cycle (13th Monthly will be executed)
• 13 Oct 06 Certification letters due to DFAS
  Rome/FLAOB by COB

21
The Letters

• (LETTERHEAD)
• CERTIFICATION OF YEAR-END FINANCIAL REPORTS
• SEPTEMBER 30, 2006
• I hereby certify that the amounts shown on
  attached reports and schedules include all known
  transactions and are correct. All transactions
  meeting the documentary evidence requirement for
  Government obligations under 31 U.S.C. 1501 (a)
  have been obligated and are so reported.
• DATE (DATE SIGNED)
• SIGNED (SIGNATURE OF CERTIFYING OFFICIAL)
• TITLE (TITLE OF POSITION)
• (List of Funds, OAs, ASNs, FSNs being certified)

22
Questions?
23
Refresher on NULOs/UMDs

• Accountant, FLAO FORSCOM
• Defense Finance and Accounting Service
• August 8, 2006

24
NEGATIVE UNLIQUIDATED OBLIGATIONS

• What is a Negative Unliquidated Obligation
  (NULO)?
• What is a Unmatched Disbursement (UMD)?

25
WHY REDUCE NULOs?

• Improve Metrics on the Balance Score Card
• Meet goals set by Headquarters
• Save money

26
HOW CAN UMDs AND NULOs BE REDUCED?

• Obligating when requirement has been written up
  and approved
• ODS Obligation Matching
• Prevalidation of Vendor Payments

27
REFRESHER ON DoDFMR RULES

• If UMD or NULO is under 2500
• DFAS will obligate immediately
• i.e. ODS matching
• Preval
• DTS
• If UMD or NULO exceeds 2500 and DFAS has
  obligating document
• Upon fund holders request, provide obligating
  document(s)
• Request fund holder record an obligation within
  10 days
• No action after 10 days, then Accounting Office
  will obligate

28
REFRESHER ON DoDFMR RULES (CONT)

• If UMD or NULO exceeds 2500 and DFAS does not
  have obligating document
• Immediately inform fund holder of UMD/NULO
• Request that the fund holder record an obligation
  within 10 calendar days of notice
• No response within 10 days, Accounting Office
  will obligate IAW regulatory guidelines set forth
  in DoDFMR, Vol 3, Chap 11
• 100,000 or More and Obligation Document is in
  hand by the Accounting Office
• Obligate per line of accounting on obligation
  document
• Ensure no mismatch, overpayment or duplicate
  payment
• Make every effort to contact customer before
  obligating
• Obligate IAW guidelines set forth in the DoDFMR

29
Questions?
30
Expenditure Accounting ReviewT/A Codes EORs

• Accountant, FLAO Europe/NETCOM
• Defense Finance and Accounting Service
• August 8, 2006

31
Introduction

• Well over 70 of transactions processed by DFAS
  are for expenditure accounting
• Recent Internal audit reviews disclosed in some
  instances abnormalities with accounts payable
• ISSUE Payables in the General Ledger were
  established prior to the incurred
  expenditure/expense thus reconciliation with the
  customer accounts receivable was inconsistent
• DoDs public accounts payable do not reflect
  accurately liabilities associated with actual
  receipts
• Receipt of goods/services are not reported when
  the entity accepts title (SFFAS 1)
• DFAS Networks Military Service Comptrollers
  have reported weak internal controls

32
Proposal

• Understand the relationship between the nature of
  the transaction and its object class (EOR) thus
  the timely recording in each stage of expenditure
  accounting
• Ability to determine the recording method and
  assign the appropriate (T/A) type action code in
  relation to its (EOR) element of resource/object
  class is crucial
• RESOLUTION The (T/A) Code used for the initial
  obligation will post to the proper A/P GLACs in
  the General Ledger thus the elimination of
  abnormal balances and/or overstated payables

33
Purpose for Review

• Avoid abnormal conditions/balances in accounting
  reports including the General Ledger
• Provide concise, accurate and reliable financial
  statements
• Achieve maintain an Unqualified Audit Opinion
• Review 3 Methods for Expenditure Accounting
• Accrual Method
• Obligation Method
• Disbursement Method
• Relate T/A Codes EORs to Initial Obligations

34
3 Methods for Expenditure Accounting

• Accrual Method (Expenditure/Expense matches the
  Disbursement)
• Records each stage independently (i.e. contracts,
  MIPRs)
• Obligate TA 23 Accrue Expenditure/Expense (AE/E)
  TA 32 Disburse TA 40
• Obligation Method (Expenditure/Expense matches
  the Obligation)
• Combines stages virtually occurring at the same
  time (i.e. TDYs)
• Obligate/Accrue Expenditure/Expense (AE/E) TA 21
• Disburse TA 40
• Disbursement Method
• Posts all stages occurring simultaneously (i.e.
  payroll)
• Obligate/Accrue Expenditure/Expense
  (AE/E)/Disburse TA 20

35
T/A Codes EORs to Initial Obligations

• Accrual Method Obligate (TA 23)
• EORs
• 231 232 - rents
• 24 - printing reproduction
• 25 - other contract services
• 26 - supplies materials
• 31 - equipment
• Obligation Method Obligate AE/E (TA 21)
• EORs
• 1 (MOD) civilian payroll benefits
• 21 - travel transportation of persons
• 22 - transportation of things
• 23 - communications utilities (except for
  231 232)
• Disbursement Method Obligate AE/E Disburse
  (TA 20)
• EORs
• 11 12 - paid civilian payroll benefits

36
Reference Table
Stages of Expenditure Accounting
Methods
Additional References Resources USSGL
(https//dfas4dod.dfas.mil/centers/dfasin/library)
DFAS-IN Regulations 37-1 (https//dfas4dod.dfas.
mil/centers/dfasin/library) DFAS-IN Manual
37-100- (https//dfas4dod.dfas.mil/centers/dfasi
n/library)
37
In Summary

• DFAS is committed and dedicated
• To prepare publish complete annual financial
  statements
• To improve quality and timeliness of financial
  reporting
• To achieve maintain an Unqualified Audit
  Opinion
• To strengthen financial controls on a continual
  basis
• To ensure financial data is reliable, verifiable
  consistent
• To provide integrity, value support to our
  customers

38
Questions?
39
Accounts Receivable

• Accountant, Accounts Receivable
• Defense Finance and Accounting Service
• August 8, 2006

40
Accounts Receivable Structure
41
Areas of Focus

• On Our Radar
• Research and resolve abnormal balances.
• Credit Unfilled Orders
• Credit Accounts Receivables
• Timely and accurate processing of transactions.
• 1080 bills
• Customer numbers
• Compliance with regulatory guidance.
• DoDFMR
• DFAS-IN 37-1
• DFAS-IN 37-100-06

42
Year End Checks

• Credit Unfilled Orders
• Credit Accounts Receivables
• Other Abnormal Balances
• Year End Accounting Reporting Instructions,
  DFAS-IN
• Letter of Instruction (LOI) from Field Level
  Accounting Operations
• FLAO Europe/NETCOM Colleen Dunn,
  Colleen.Dunn_at_dfas.mil
• FLAO Global/TRADOC Mike Wajda,
  Michael.Wajda_at_dfas.mil
• FLAO FORSCOM Cliff Deamer, Clifford.Deamer_at_dfas.
  mil

43
Year End Checks Continued

• Customer Number Candidate File
• Mark for deletion if not rolling over
• Drawdown of Orders
• Orders Received Reimbursable Obligations NLT
  date in LOI
• Balancing of Unfilled Orders and Undelivered
  Orders
• Valid Unfilled Orders must be supported by a
  Reimbursable Undelivered Order
• No Unobligated Allotment for Funds Received
  (Automatic or Funded)
• Close out Reimbursable program by date in LOI

44
Communication Reminder

• Contacting us
• DPI
• FSN
• Any additional information (e.g. MIPR/SDN)

45
Questions?
46
FY07 Blocking Scheme

• Accountant, Accounts Maintenance / Internal
  Review
• Defense Finance and Accounting Service
• August 8, 2006

47
FY07 Blocking Scheme

• In order to standardize at DFAS Rome, we created
  a new blocking scheme that incorporates all of
  the field sites remaining in the virtual database
  as well as integrates all of the unique blocking
  needs of Rome customers.

48
Background

• In FY01, DFAS Rome created a standardized
  blocking scheme for the installations serviced by
  Rome.
• In FY05, the DFAS Rome scheme was adapted to
  include the Europe workload.
• In FY06, a new blocking scheme was developed for
  the 5G, 1R, 7F and E3 databases, modeled after
  the DFAS Rome scheme.
• For FY07, Rome saw the need to further
  standardize with the additions of Lexington,
  Seaside, San Antonio and Lawton.

49
Benefits of the new scheme

• Benefits of the new blocking scheme
• Standardization
• Researching data calls
• Able to identify by function
• Allows all field sites to input in same database

50
Examples

• Installations
• dbCAS blocks D -D.
• Lawton D01 D99
• Orlando D1A D2Z
• Pacific D3A D4Z
• Rome D5A D7Z
• Military Pay D8A D9Z
• Field Sites
• External Corrections, received from customer Eaa
  Ea.
• Rome field site will use range EQA EV9 (216
  blocks).
• If more blocks are needed we will repeat the
  range of blocks allowing the julian cycle date to
  separate the transactions.

51
How does this affect me?

• Querying transactions
• Because some blocks have changed from your
  original scheme, there may be some queries that
  will need to be adjusted.
• For example
• External obligations received from the customer
  and input by the field site (EDa blocks are now
  2).
• Internal obligations, DODFMR Ch 11, input by
  field site on behalf of the customer (IDa blocks
  are now 2a).

52
Transmittal Letters - TLs

• Why TLs
• Ensure receipt of documentation in DFAS Rome
• PDs receives verification from Rome that
  documentation is received You can prove you
  sent it!
• How do TLs work
• TLs are logged in, numbers are sequential DFAS
  Rome checks on missed numbers.
• If needed, blocks are assigned then input.
• PD receives verification that TL and documents
  have been received.
• Submit TLs by email, FAX, or RightFAX

53
TLs Continued

• TL numbering
• First position is PD-MAJ
• Second position is PD-MIN
• Third and Forth position are the month as follows
• October 10 February 02 June 06
• November 11 March 03 July 07
• December 12 April 04 August 08
• January 01 May 05
  September 09
• Fifth and sixth positions are the PDs sequential
  number
• EXAMPLE
• PD MAJ K, PD MIN A, November 11, PDs
  Sequential Number 01
• AND THE TL NUMBER IS KA-11-01

54
Questions?
55
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