DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Proposed DLMS Change (PDC) 1043E Invalid Fund Code Edit and Remove Suspense Account F3885 Bob Hammond Chair, Finance Process Review Committee August 25, 2015

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Background: -SLOA Fund Code Edit o ADC 1043 prescribes DAAS edits to reject transactions where SLOA data does not match Fund Code o Edit cannot be performed if Fund Code is invalid or missing (when required) o Currently the only DAAS Fund Code edit is for Signal Code C/L, since DAAS is unable to route the transaction via Fund Code to Billed DoDAAC Table o Signal Codes A/B/J/K not edited at the enterprise level -ADC 294 removed suspense accounts, but F3885 narrative was retained in MILSBILLS, as Navy was granted a waiver. PDC 1043E

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Issues: -Invalid or missing fund codes may lead the billing office to cite the Component’s default line of accounting prescribed in MILSBILLS, Appendix 2.2 -Labor intensive, costly effort needed to resolve; may require billed office internal adjustments and potentially adjustments to Treasury -May result in billing to Component “default appropriations” -Post-Post transactions are problematic for validation PDC 1043E

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Default Lines of Accounting: –MILSTRIP & MILSBILLS allow use of blank fund code –MILSBILLS: “When a fund code is not found on the fund code to disbursement fund account conversion table the appropriation charged shall be assigned as follows: Organization (Billed Service Code) Interfund Default Appropriation Contractor (C, E, L, Q, U)Not applicable, noninterfund Non-DoD (G, Z, HX, Numeric)Not applicable, noninterfund Army (A, W)21*2020 Air Force (D, F)57*3400 Navy (N, P, R, V)17*1804 Marine Corps (K, M)17*1106 Defense Logistics Agency (S, T)97X O ther Defense Agency (H) Not applicable, non-Interfund. Issue: Not auditable & may require buyer adjustment PDC 1043E

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 DocID Billing OfficeDollar Value Transaction Count FS1FGZ$750, FS1FHZ$629, FS1FLZ$1,874, FS1NRP$3,453, FS1NUA$1, FS1SMS$2,598, Total $9,307, FS2B16$4, FS2B17$6, FS2FGZ$525, FS2FHZ$503, FS2FLZ$266, FS2N35$223, FS2NRP$4,911, FS2NUA$5, FS2SMS$814, Total $7,260, PDC 1043E Default Accounts

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 Resolution/Status: -PDC Staffed. Component responses due : o Validates fund codes at order entry points and DAAS for all signal codes o Applicable to most ADC 1043 DLMS transactions with a financial implication; excludes post-post and image supply transactions o Includes additional change to remove references to suspense account F3885 procedures for Navy waiver o Monitor billing to Component default appropriations for potential future PDC to disesablish them PDC 1043E