OUSD (Comptroller) Business Integration Office (BIO) Standard Financial Information Structure (SFIS) Standard Line of Accounting (SLOA) Readiness Status 5 March 2015 OUSD (Comptroller) Business Integration Office (BIO)

Requirements, Objective, & Priorities Memo: Department of Defense Standard Line of Accounting/Accounting Classification Signed by: Mr. Hale & Ms. McGrath, Dated: Sep 14 2012 “An initial SLOA Implementation Plan must be submitted by January 15, 2013…The plan(s) should give priority to interfaces affecting auditability and provide implementation dates, targeting completion by September 2014” http://dcmo.defense.gov/products-and-services/standard-financial-information-structure/ Overall Objective: Generate and pass standard financial data between systems to provide control, traceability, auditability, transparency and reconciliation of financial data across DoD’s E2E processes, strengthening financial management across the DoD enterprise for audit readiness Reduce over 100 different LOAs to one standard line of accounting (min. req. data elements) Reduce the number of point-to-point interfaces (use of a router during interface updates) SLOA data elements contain TAS/BETC (mandatory for GWA compliance) & recon elements Priorities: Systems Priority: P1: Contract Pay, Vendor Pay, & IGT (70%); P2: Military Pay & Civilian Pay (20%) Target & Core (Former Legacy) systems that are integral to auditability Substantial reliance on DFAS; integral to accomplish true end-to-end capability

Generic Contract Pay E2E: Functional Process Users Prepares MIPR in the External ERP (SLOA is required to properly Post/Report transaction.) Requisition is sent to C/W system and Contract is Prepared (Parts of the SLOA are need to verify proper contract funding and perform federal contract reporting.) A Funds Validation is sent from the Contract Writing Solution to the Accounting system to verify funding is still available. Contract is send to the Vendor. Requisition identifiers and Contract are sent ERP to record PO. (SLOA acts a compensating control if Requisition identifiers can’t be matched.) Contract is Loaded in the EDA. (SLOA is loaded in to EDA to provide users a consolidated place to see contract data associated to finance data across the enterprise.) Contract is sent to MOCAS for administration. (SLOA is needed for MOCAS to make follow-on Prevalidation requests associated with Payments and to meet Payment Reporting Requirements.) EDA provides Pre-pop data to WAWF (the SLOA AAI is used for routing). PR, PO, LOA, and Contract IDs are sent to EUD to load Prevalidation information. (SLOA needs to be sent to EUD for Prevalidation because not all requisitions originate in the accounting system). 10/11. Vendor Delivers Goods. Vendor Invoices via WAWF. Receiving Activity records Goods Receipt in ERP. WAWF sends Invoice to ERP. WAWF sends the Invoice to the Accounting System to preform the 3-way match. Invoice and Receiving Report are sent to MOCAS for Payment. MOCAS sends Prevalidation request to EUD. (Need to ensure SLOA associated to the Contract has sufficient funding.) EUD Prevals the SLOA with the Accounting System. EUD sends the funding verification back to MOCAS that the Contract has available funds. Invoice is accepted in ERP and Accounts Payable Recorded. (SLOA acts as a compensating control to locate matching PO.) MOCAS issues payment to Vendor. MOCAS sends DCAS payment information. (DCAS needs SLOA data to perform x-disbursement and to perform Treasury Disbursing). DCAS Recons Cash with the Accounting System . (SLOA is used to preform Recon). DCAS sends Treasury Level SLOA data to the Treasury Payment Information Repository (PIR). (SLOA data is needed for Treasury Reporting). This Feed needs to be Daily. DCAS send Cross-Disbursement data including the SLOA to ERP to record the Expenditure. (SLOA acts as a compensating control to locate matching PO.) Trial Balance Submission. (This includes the Summary level SFIS Data). Submission of the Financial Statements to the Treasury. (This includes the USSGL SFIS Attributes). 1 2 3 Reduce unobligated balances Match obligation to commitment Reduce potential ADAs Direct Treas. Disb. Opp 3-way match & preval Reduce Interest penalties Facilitate Cross-Disbursements GWA Compliance Req Reduce In-Transits Match Disb. to Oblig. FBwT Standard Process Reduce Clearing Account Balances Reduce Unsupported JVs Compliance to SLOA Standards will Serve as a Compensating Control when Interfaces Fail/Reject & will Reduce Manual/Legacy Processes Potential LOA errors Commitment to Disbursement

SFIS/SLOA Vendor Pay Priority SV-1 OUSD(C) BIO Long-term Vision Legend Entitlement Systems Contracting Systems SLOA Ready Dates Not Provided SFIS Configured SLOA Long-term Plan SLOA Plan Not Provided SLOA Ready by GWA Not SLOA Applicable DFAS One Pay DLA SPS (May-15) DLA eProc (Feb-14) Army PADDS AF ConWrite DFAS CAPS-W (Feb-17) DFAS IAPS Accounting Systems DFAS SCS in DCD/DCW (Aug-15) AF DEAMS Support Systems DFAS GAFS-R Army LMP DFAS DCAS (Sep-14) Army GFEBS DLA EDA (May-15) Army CEFMS DLA DDRS (N/A) DLA EBS DLA WAWF DLA WAWF (N/A) DLA DAI Treas Reporting (PIR, CARS) JS EBAS Treas IPP / IPAC Navy ERP DFAS STARS Treas PAM/SPS DFAS ADS (Aug-15) DFAS CDS DFAS SRD-1 DFAS SABRS DFAS DDS (May-14) Disbursing Systems WHS EBAS-D NOT GEX Connected Most Systems are GEX Connected & Should Update their GEX Maps to Route via GEX DISA FAMIS

Accounting Systems – Implementation Status SLOA CONFIGURATION READINESS INTERFACE UPDATE READINESS TI - 97 SFIS 10.0 (& SLOA) READY PER IDM EXISTING GEX MAP FOR UPDATES DLA - DAI Apr-15 Apr-15; GEX Connected DLA - EBS SLOA Ready Sep-14; GEX Connected JS - EBAS SLOA Ready* WHS - EBAS-D SLOA Ready** DISA - FAMIS GEX Connected Planned or Complete 5/5 Percent Applicable 100.0% SERVICES SFIS 10.0 (& SLOA) READY PER IDM EXISTING GEX MAP FOR UPDATES AF - DEAMS SLOA Ready* GEX Connected. Oct 2014 Start DFAS - GAFS N/A - Legacy. Possible GEX Candidate Legacy. Possible GEX Candidate ARMY - GFEBS May-15* GEX Connected. No Plan Provided ARMY - LMP ARMY - GCSS-A No Plan Provided NAVY - ERP Sep-17 NAVY - MSC FMS Nov-15* Depends on AOA NAVY - STARS DFAS - SABRS GEX Connected. Planning in Process Planned or Complete  7/7 5/9 Percent Applicable 100.0% 55.0% DoD Target Accounting Systems Planned or Complete 12/12 10/14 Percent 100.0% 71.9% JITC is conducting SFIS Validations on current USSGL, SFIS and SLOA to Confirm SLOA Readiness and Compliance * Confirmed ** Missing Sub Class. Immaterial to WHS’s business.

Feeder Systems – Implementation Status SLOA CONFIGURATION READINESS COMPLETED CONFIGURATION SLOA INTERFACE READINESS DLA FEEDER SYSTEMS SFIS 10.0 / SLOA READY PER IDM SLOA READINESS STATUS EXISTING GEX MAP FOR UPDATES DLA - EFD Oct-15 On Track GEX Planning in Process DLA – DCAS SLOA Ready Necessary for “Cash Accountability” GEX conn’t (DAI) DLA - SPS May-15 (rolling implementation, agency specific) GEX conn’t (MOCAS) Plans w/DEAMS DLA - DTS Dec-14 Planned or Complete 4/4 0/4 Percent Applicable 100.0% 0.0% DFAS FEEDER SYSTEMS SFIS 10.0 / SLOA READY PER IDM SLOA READINESS STATUS EXISTING GEX MAP FOR UPDATES ADS Aug-15 Prob. Stmt Approved. GWA target sys. No Plan Provided. GEX conn’t (DAI) DDS May-14 Problem Statement Approved No Plan Provided MOCAS Aug-17 (SLOA Only) No interim solution. Prob Stmt Approv No Plan Provided. GEX conn’t (SPS) CAPS-W Feb-17 ODS Nov-16 DCPS Dec-14 DJMS (AC & RC) To be determined Needs to be addressed One Pay N/A - Legacy N/A – Legacy until subsumed IATS N/A – Legacy Possible GEX Candidate IAPS N/A – Legacy, until GAFS Retirement TGET Aug-14 On Track No Plan Provided. GEX conn’t PowerTrack N/A - 3rd Party owned Possible GEX Candidate. GEX conn’t EC/EDI (EUD) Aug-17 N/A. GEX conn’t (DAI) EC/EDI (GPC) DCD/DCW EAS Will auto MOCAS manual pay proc’d N/A SCRT No interim solution DCMS N/A – Legacy until DCAS subsumes Planned or Complete 11/12 0/12 10/15 Percent Applicable 91.7% 0.0% 66.7% DoD Feeder Systems Planned or Complete 15/16 0/16 14/19 Percent 93.8% 0.0% 74.0%

Next Steps (beyond SFIS/SLOA Compliancy) Interfaces should be updated to the SFIS/SLOA standard Use the Global Exchange (GEX) for interface routing Use the SLOA Centralized Service (SCS) for validation of the SLOA (Aug 2015) Time of Implementation (e.g., SLOA Crosswalk Service) for translation (Sep 2017) Work with A&FP to get DoD FMR Volume 1, Chapters 4 and 7 updated

Please visit the SFIS Resources Homepage: Backup Please visit the SFIS Resources Homepage: http://dcmo.defense.gov/products-and-services/standard-financial-information-structure/

Current Financial Visibility Challenge Lack of financial data standards across the Services impedes the ability to analyze performance on an enterprise-wide basis One Standard Line of Accounting was established on Aug 14 2012

SLOA IS A “STANDARD” In the Business Enterprise Architecture (BEA) In the Standard Financial Information Structure (SFIS) All SLOA data elements are standard data elements in SFIS SLOA data elements contain data elements required for Treasury and OMB reporting (at the appropriation level) DFAS reconciliation Component reconciliation (below the appropriation level) A Defense Business Council (DBC) requirement for all Target/Core systems to be SLOA compliant for interoperability Most accounting systems and DLA service provider systems are SLOA ready or will be very soon Priority DFAS service provider systems have plans to be SLOA compliant, if not already compliant Coordinated TI-97 Work Stream efforts (2B – Recon and 2A – Universe of Transactions) to incorporate the SLOA data elements DFAS DCD/DCW will begin development of a SFIS/SLOA Validation web-service in Jan 2015

Standard Line of Accounting in the Standard Financial Information Structure SLOA DATA ELEMENTS ALREADY IN SFIS (Original version, 4.0, 9.0) (23 of 26 data elements = 88% of what's already in the SLOA) Field Name Requirement Sub Class (aka Sub-Level Prefix) TAS Dept Transfer (aka Alloc Transfer) Dept Regular (aka Treasury Index) Beginning Period of Availability (aka Beg FY) Ending Period of Availability (aka End FY) Availability Type (X=No Year) Main Account (aka Basic Symbol) Sub Account (Below Main Acct) Business Event Type Code (BETC) (Repl Trans Codes) GWA PIR Req. Object Class (3-digit for A-11; aka EOR) OMB 1002 Reimbursable Flag (D/R) Budget Line Item (aka Program/Project/Element) SC (aka Foreign Military Sales) Customer Code Foreign Military Sales SC Case Designator (formerly “FMS Case Identifier”) SC (formerly FMS) Case Line Item Identifier Agency Disbursing Identifier Code (DSSN) GWA PIR Agency Accounting Identifier (FSN) DFAS/Recon Funding Center Identifier (aka Fund Center/Cost Obj) Component LI/Recon Cost Center Identifier (aka Cost Center/BCN) Project Identifier (WBS) Activity Identifier (Activity/Special Project/Network) Cost Element Code (Commitment Item/EEIC) Work Order Number (Internal Order/Job Order) SLOA DATA ELEMENTS ADDED IN SFIS v 10.0 (3 of 26 data elements = 12% of what's in the SLOA) Field Name Requirement Sub-Allocation (Limit/Sub-Allotment) Sub-Allotment SC Implementing Agency Code FMS Functional Area (Budget/Project) Component LI/Recon Components did not update their interfaces with Trading Partners during past SFIS updates in their systems (and visa versa)

USMC SABRS: Vendor Pay (Interim) Other Accounting System S GEX 3 S GEX PR Builder SABRS (SLOA Ready) Purchase Requisition Commitment Obligation Accounts Payable Expenditure V GEX DDRS S GEX 1 V GEX V GEX 2 V GEX V GEX V GEX V GEX 1 SPS (May-2015) CAPS-W (Feb-2017) DCD ADS (Aug-2015) DCAS (Sep-2014) V GEX V GEX V GEX V GEX EDA V GEX V GEX V GEX WAWF Both of these systems will be SLOA Capable in the near term. Add a Funds Check handshake per the Acq SOP. May need to have a Validation on both b/c LOAs can be changed in SPS/Conwrite Need to automate this exchange in the long-run. However, since there are numerous MIPR feeds, translation will need to be used until the “Other Accounting System” is SLOA compliant. Notes: CAPS-W to receive Invoice information from WAWF via GEX DCD to receive the SABRS Daily Obligation File/Validation with CMET/Store the Valid SABRS Obligations DCD to receive pay history file from ADS CAPS-W to receive Payment history information from DCD Vendor Receiving Activity Treasury GEX Connected Legacy System (Ret.) Validation Service Crosswalk and Translation Service # Note/Add. Info. No SLOA data GEX S V SLOA Critical Path Not GEX Connected SLOA Ready systems should begin to update interfaces to SLOA, use the GEX for routing, and use the SCS (DCD/DCW) for Validation. Any Legacy systems would brown out during this period.

USMC SABRS: Vendor Pay (To Be) Other Accounting System V GEX V GEX PR Builder SABRS (SLOA Ready) Purchase Requisition Commitment Obligation Accounts Payable Expenditure V GEX DDRS V GEX V GEX V GEX V GEX V GEX V GEX V GEX SPS (May-2015) CAPS-W (Feb-2017) DCD ADS (Aug-2015) DCAS (Sep-2014) V GEX V GEX V GEX V GEX EDA V GEX V GEX V GEX WAWF CAPS-W to receive Invoice information from WAWF via GEX DCD to receive the SABRS Daily Obligation File/Validation with CMET/Store the Valid SABRS Obligations DCD to receive pay history file from ADS CAPS-W to receive Payment history information from DCD Vendor Receiving Activity Treasury GEX Connected Legacy System (Ret.) Validation Service Crosswalk and Translation Service # Note/Add. Info. No SLOA data GEX S V SLOA Critical Path Not GEX Connected The Target Environment

SCS will validate SFIS/SLOA Data sent via GEX or Direct Connect SFIS/SLOA Centralized Services within Scope of DCD/DCW Current Capability Validation/Translation Scenarios: Target/Core -> Target/Core = Validate Legacy -> Target/Core = Translate and Validate Target/Core -> Legacy = Validate and Translate Legacy -> Legacy = No Validation and No Translation SCS will validate SFIS/SLOA Data sent via GEX or Direct Connect

USSGL Trial Balance / SFIS Concept View Gov’t Wide Statements DoD TAS/BETC – Input to FBwT National Debt Public Confidence Intergovernmental Transactions Material Weakness Treasury DoD TAS/BETC Info – for DoD FBwT NTDO (DFAS/Other DoD Disb.) TDO (Treas. Disb.) DDRS Legacy Systems Do not supply necessary info resulting in JVs and unsupported JVs DoD TAS/BETC for FBwT All Components - consolidated Intra-governmental Transactions USSGL Compliant Trial Balances USSGL Target Accounting Systems (Recon with SFIS/SLOA data elements (e.g., GTAS, PIR, budget, and cost)) Transactions External to the Accounting System Commitments Obligations Accruals Expenditures Disbursements SFIS STANDARD DATA ELEMENTS (FROM FEEDER SYSTEMS) GIVE THE ACCT. SYS. NECESSARY INFORMATION FOR RECORDING TRANSACTIONS IN THE ACCT. SYS. FOR PROPER T/B REPORTING

How Does SLOA Support the FM Strategic Initiatives? Outcomes How SLOA Enables Each Outcome Financial Improvement and Audit Readiness (FIAR) SBR Assertion FY 2014 Financial Statement Assertion FY 2017 Software tracks and records audit trail at each exchange of data, business rule modification, format transformation, etc. Enables matching transactions between multiple accounting/feeder systems in 1-to-1 format which can be easily reconciled Enables cleaner end-to-end transactional flow and processing Standard Line of Accounting (SLOA) Improved E2E FM Information Exchange Enables clean interoperability across the enterprise E2Es SFIS/USSGL Compliance and Validation Proper Posting of Transactions in DoD Financial Systems SFIS Compliance Plans as part of Component OEPs Workbooks define and reformat subset of SFIS data (SLOA) into standard definitions Data compliance with Treasury and OMB standards Enterprise Funds Distribution/Next Generation Resource Management System (EFD/NGRMS) Integrated capability to formulate, distribute, track and execute the DoD budget Links transactions to the Budget/Funds Distribution data Transformed, standard data for allocation and distribution of funds identically across the enterprise Direct Treasury Disbursing Standard FBWT Daily Recon Process Enables automatic matching of disbursement to accounting system (near real-time recon) Enables routing ERP data directly to Treasury Provides necessary data to prepare a Direct Treasury Pay Ready File Government-wide Accounting (GWA) Daily Treasury Reporting - GWA compliance by Oct. 14 Enables translation of TAS/BETC standard data elements to ADS Consolidates DSSNs into standard repository for daily reporting Intragovernmental Transactions (IGT) Standardize IGT Process DoD-Wide Eliminate manual processes and multiple forms Single Repository for IGT Orders for audit readiness Reduce IGT Eliminations material weakness Enables standardized MIPRs necessary data to perform eliminations Intakes data formats into single central repository from multiple buyer systems and transforms it into a standard format, and vice versa Standard buyer and seller data provides data matching and reconciliation Delinquent Debt Management Delinquent debt collections to treasury after 90 days, using re-engineered processes Enables matching and analysis of invoice data to obligation data in real-time and analyzes discrepancies between the two Provides flags against delinquency business rules and provides error report when rules are violated (document LOAs overpaid, etc.) Maximize ERP Capabilities E2E Process Improvement Eliminate redundant capabilities in the E2Es Take advantage of imbedded controls within ERPs Eliminates inefficiencies and reliance on feeder systems Reduces need to point-to-point interfaces & downstream errors Standard Transaction Broker Reduce/Minimize Point-to-Point Interfaces Already connected to the GEX Minimizes need to reconfigure legacy systems Enables translation, validation, and routing between key E2E systems Business Intelligence Tools Near real-time, standards-based information and analytics from authoritative sources Software provides detailed reports at each exchange of data, business rule modification, format transformation, etc. Cost Management Consistent cost data and management across the Department Enables use of cost management codes and OCC for cost reporting Provides the cost management information on every purchasing transaction which will facilitate Full Cost Accounting Slide: 16

Speaker Micky Chopra, the Office of Undersecretary of Defense (Comptroller)/ Office of the Deputy Chief Financial Office/ Business Integration Office