Using Intelligent Data to Make Systems Interoperable William Fuentevilla, Project Manager, Federal Housing Administration Subsidiary Ledger Project US Department of Housing and Urban Development Lisa Miller, President DynAccSys LLC

2 XBRL ®, is a trademark or service mark of XBRL International, Inc., registered in the United States and in other countries. Contents 1.The Story at HUD/FHA 2.The Presenting Process 3.XBRL GL Used to make Improvements 4.The Implementation Thus Far 5.The XBRL Advantage

3 The Story at HUD/FHA  The Federal Housing Administration/Office of Housing, US Department of Housing and Urban Development, maintains a subsidiary ledger to the main HUD General Ledger  DynAccSys provides accounting services and maintains the official records for FHA’s Multifamily assets on a legacy system that is one of many financial feeder systems of the FHA Subsidiary Ledger (FHASL). The DynAccSys systems service loans and properties with AR related to loan repayments and AP related to property maintenance, investments, and taxes.  In the original architecture for FHA, a data warehouse collects legacy data from the loan and accounting systems, translates the legacy chart of accounts to USSGL and feeds data to the FHA Subsidiary Ledger (FHASL) at the summary level.  The legacy detail is used by other systems in the Department and must be rekeyed.

4 Desired Process Improvements  Move from monthly cash reporting to more timely daily reporting to the general ledger  Update the general ledger directly from the source system, eliminating intermediate translation and aggregation steps; eliminate the intermediate repository for detailed (un-translated) transaction records as well  Simplify the reconciliation between the source system and the general ledger  Efficiently use accounting records as a single source for multiple reporting requirements (contracts, budget execution, and business analysis), eliminating duplicate data entry, duplicate data processing, and reconciliation.

5 HUD …The Presenting Process Budget Reporting Business Analysis Performance Next Things PeopleSoft Audit Data Warehouse Translates MSA GL account format to US SGL; creates summary uploads Rekey data for other uses Challenge: consistent, timely, complete and accurate data Summary data out of balance with transaction detail INTERFACE Monthly Feed MLS AP/AR PMS AP/AR CSMS System of Record Journal data Ongoing reconciliation US SGL Summary Entries

6 XBRL GL, the Journal Taxonomy  Aligns with traditional accounting structures  Enables detail to be mapped to a standard.  Data once mapped become intelligent and transparent within the organization  Intelligent data are reusable in different system environments and thus, systems become interoperable  As systems change over time, the XBRL GL standard enables interfaces to be remapped, rather than reprogrammed  Avoids dependence on programmers  Enables the business staff to control/direct changes

7 XBRL GL can represent data from entry to reporting 1. Trigger: A source document is represented electronically (Eg., invoice, payment) 2. Source Journal: The document is posted into the source system, creating source journal 3. Journal Entries: The accounting events are gathered and prepared for reporting 4. GL Entries: The journal entries are prepared for posting to the subsidiary ledger 5. Journal History: The entries are posted to the Journal History 6. Consolidation: The journal entries or trial balance data are brought together 7. Reporting: Consolidated numbers combine for reporting Posting Journal Invoice Distribution To GL Report Source Journal General Journal Transaction Posting Consolidating/ Consolidated Journal History Report

8 The Implementation Thus Far MAPPING TO XBRL GL Daily Feed MLS AP/AR PMS AP/AR CSMS System of Record MAPPING TO XBRL GL Other Systems Reporting Performance Business Analysis Next Things Audit Budget PeopleSoft detail summary detail & summary CFO Contracts Possible

9 The XBRL Advantage  The use of XBRL:  Streamlines accounting processes  Eliminates manual data re-entry  Eliminates a data warehouse for data translation, summarization, and data detail storage  Avoids proprietary data interfaces between legacy systems – delivers a low-maintenance/low cost, easily updated solution based on an open standard  Offers detail data that sums to FHA Subsidiary Ledger accounts within the same chart of accounts  Eliminates time consuming reconciliation by FHA staff and contractors  Enables data to be reused across systems and processes

10 The XBRL® Experiment in FHA  The standard enables data to be entered once and to flow through the financial supply chain to support multiple systems and reporting needs  The design seems to demonstrate a more efficient approach to financial business processes  New programming is not necessary if there are systems changes; the data can just be remapped  The open standard should lower cost to maintain the interfaces over the long term