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 Changes (PDCs) For Finance Process Review Committee Bob Hammond Chair, Finance Process Review Committee June 11, 2015

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Background: -SLOA established Sub Allocation as a new data element to replace Limit/Subhead; added to DLMS transactions -Limit/Subhead on the Fund Code Table retained pending determining if values consistent with Sub Allocation -There is a limit of 1296 possible fund code combinations for each service code to be considered -Sub Allocation has not been mapped to Limit/Subhead on the Fund Code Table or in Fund Code reports Issue: -None remaining. Confirmed at March 4 th Finance PRC that Limit/Subhead can be subsumed into Sub-Allocation PDC 1043D

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Resolution/Status: -PDC staffed May 28 th o Sub-Allocation subsumes Limit/Subhead data o Web Fund Code application and reports replace Limit/Subhead with Sub-Allocation o File layout for Fund Code to Fund Account Conversion Table retains legacy name; states that Limit/Subhead is now Sub- Allocation o Includes additional change to DLA’s default line of accounting sub-allocation to 97X4930.5CBX *** One more SFIS/SLOA data element can be exchanged referentially via fund code *** PDC 1043D

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 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 5 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 -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 6 Issues Continued: -Cross-component Interfund billing via Signal Code C/L to be considered, e.g. Navy BRAC (Fund Code: J5) Navy support to Army (Fund Code 7M) -Use of F series DICs for non-Interfund billing vice G series DICs precludes automated non-interfund billing o Automated billing is efficient, supports audit and provides evidentiary repository (see MILSBILLS C ) PDC 1043E

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7 Resolution/Status: -PDC nearing staffing: 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 supply transactions o Includes additional change to remove references to suspense account F3885 procedures for Navy waiver PDC 1043E

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8 Background: -When orders are not originated in a Component’s ordering system, obligations cannot be recorded at the line item level to support compliant Interfund detail bills o Exceptions are: o Funds verification process developed for EMALL; o Point to point user defined files (UDF) for DLA fuels and Kyloc -DLMSO/DLA/SOCOM/Trans Svcs working on new DLMS X Obligation transaction via DAAS to fill void -821 is used in other processes (DTS, credit card), but not DLMS Obligation IC

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9 Issues: -Obligation is needed to clear automated Interfund bill; combining detail bills is not authorized -Audit requires three way match: order, receipt and bill o`receipt may also be problematic, except for post-post Obligation IC

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10 Resolution/Status (Proposed): -Develop a DLMS compliant standard obligation transaction using ANSI X12 Transaction Set 821, Financial Information Reporting o DAAS translate from DLMS to UDF until 821 fully implemented -Staff PDC -Funds verification process is the preferred approach, where it can be implemented Obligations IC