Finance Process Review Committee Meeting

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Presentation transcript:

Finance Process Review Committee Meeting Intragovernmental Transaction (IGT)/G-Invoicing Initiative 15 February 2018

Intragovernmental Buy/Sell Transactions Intragovernmental (IGT) buy/sell transactions represent the exchange of goods or services between two federal entities. This arrangement is typically accomplished through the issuance of a reimbursable agreement between the two entities. These agreements can be created by the logistics, acquisition, OR FM community Problem statement Non-standard, manual, decentralized, global, multi-system environment Unable to produce and reconcile a universe of buyer and seller transactions Unable to track execution and status of orders Unable to retrieve documentation supporting orders, receipt and payments Unable to support manual adjustments (journal vouchers) to eliminate IGTs on the financial statements. Intragovernmental (IGT) buy/sell transactions occur when two federal entities exchange goods or services. Usually there is a reimbursable agreement outlining the terms and conditions of the exchange. The main problem is that this process takes place in a non-standard, manual, decentralized, global, multi-system environment. Federal entities are unable to produce and reconcile a universe of buyer and seller transactions; unable to track execution and status of orders; unable to retrieve documentation such as supporting orders, receipt and payments; and unable to support manual adjustments (journal vouchers) to eliminate IGTs on the financial statements.

Why is DoD Moving to G-Invoicing? One of the Department’s financial statement material weaknesses is the inability to properly account for, reconcile, and eliminate intragovernmental transaction balances Proper supporting documentation unavailable for audit Buyer and seller transactions and accounting out-of-balance and not reconciled Receipt and acceptance not generally being performed Buyer and seller not in full agreement on terms and detail of transactions Status of interagency agreements not clear, including remaining period of performance, available funding, unfilled orders, and paid orders As part of the Department’s commitment to achieving an unmodified opinion on the audit of its full financial statement -- the largest consolidated financial statement audit ever undertaken – the OSD Comptroller’s office prioritized financial management improvement activities that require enterprise-wide changes to policies, procedures, regulations, and systems. Intragovernmental transactions is one of 15 enterprise financial management initiatives being spearheaded by the OSD Comptroller’s office. The Department is working closely with U.S. Treasury to implement a standard E2E business process and data exchanges using the U.S. Treasury’s G-Invoicing system (formerly known as Invoice Processing Platform or IPP) and DoD’s Global Exchange Service or GEX. G-Invoicing will help the Department resolve several issues including: The inability to properly account for, reconcile, and eliminate intragovernmental transaction balances Proper supporting documentation unavailable for audit Buyer and seller transactions and accounting out-of-balance and not reconciled Receipt and acceptance not generally being performed Buyer and seller not in full agreement on terms and detail of transactions Status of interagency agreements not clear, including remaining period of performance, available funding, unfilled orders, and paid orders

What Components Need to Do in the Next Six Months For G-Invoicing ECD: Overdue -Set up G-Invoicing access control groups and outline IGT buy/sell entitlement system (e.g., Army and Navy still outstanding) ECD: March 2018 -Roll users onto system for General Terms and Conditions (GT&C) capability deployment ECD: March 2018 -Begin negotiating all buy/sell GT&Cs in system For Audit 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 Next Step Participate the Scheduled Bi-Monthly Action Officer-Level Working Group and Qtrly User Forum In the immediate future (roughly the next six months), senior leadership from all Components must establish a strong “tone at the top” and dedicate the resources and funding necessary to complete the following tasks for G-Invoicing and for audit. For G-Invoicing ECD: Overdue -Set up G-Invoicing access control groups and outline IGT buy/sell entitlement system (e.g., Army and Navy still outstanding) ECD: March 2018 -Roll users onto system for General Terms and Conditions (GT&C) capability deployment ECD: March 2018 -Begin negotiating all buy/sell GT&Cs in system For Audit 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 Next Step Scheduled Action Officer-Level User Forum with Components for November 30

G-Invoicing – Implementation Roadmap November - 2017 An exposure period for stakeholder feedback is provided prior to Interface Specifications being published.

Proposed Architecture