1. Lorraine Corona Manager, Data Mining Services
Financial Management
Lorraine Corona
Manager, Data Mining Services

2. Disclaimer
The statements or opinions expressed in all ONRR presentations and panel discussions at the 2017 PASO-Tulsa Federal/Indian Royalty Compliance Workshop do not necessarily represent the views of ONRR or the Department of the Interior.

3. Learning Objective
The attendee will be aware of upcoming edits, interest, and CMP-2014 issues upon completion of this course.

4. Financial Management Organization
Barbara Lambert Manager
Financial Management
Jay Gustin
Manager
Systems Team
Glen Reese
Manager
Distribution & Disbursement Support Services
Hans Meingast Manager
Financial Services
Paul Knueven Manager Accounting Services
Lorraine Corona Manager
Data Mining Services
Accounts Receivable
Billing
Debt Collection
Volume Comparison
Accounts Payable
Reference Data
Agreement Monitoring
General Ledger
Royalty Reporting
Processed Gas
Pricing
Repetitive Reporting
Net Negative

5. Financial Management Royalty Reporting
New Front End Edits
Tighten royalty rate edits for multiple royalty rates
Tighten offshore gas price thresholds
Federal net negative
Original line monitoring
Repetitive reporting
Reporter Training
Being modified
Sessions to be scheduled for Fall 2017
LNG
If you sell LNGs, use product code 03

6. Financial Management Interest
Interest on royalty overpayments
All corrections for the payment of interest have been processed
Interest on Cross Lease Netting (CLN)
Advise your Financial Services billing representative of the situation
If it is the only reporting on a report, we can prevent it from being processed by the interest program, or
We can inactivate the lines prior to issuance of the invoice if we can confirm the CLN
If it is invoiced, we can still credit it once we confirm the CLN

7. Financial Management Interest (cont’d)
If you paid $1,000 a year ago but find out that you only owe $900, when the reversal and rebook is made, it nets to a $100 overpayment to ONRR which is recouped in the current report. We expect we would simply not receive interest on this refund. Instead, under ONRR’s calculations, we owe one year’s interest on the $900 line with no benefit that ONRR had our $1,000 the entire year. Is this correct or is something wrong with ONRR’s assessment of interest?
Interest on the $900 is NOT correct
Interest processes each report separately
For interest to calculate correctly, the reversal and re-entry need to be for the same lease on the same report

8. Financial Management CMP 2014
ACM continues to fine tune their review processes and has disseminated guidance on:
Partial acceptance CMP-2014s, and
Expediting the review time for the submitted CMPs
FM continues to review and fine tune the following: 
The override processes for timely review and feedback, 
Interest Billings and Indian Over Recoupment Billings impacted by multiple CMP-2014 acceptances,
The impact of the CMP-2014s on the Debt Collection processes

9. Financial Management CMP 2014 (cont’d)
FM system change requests that impact CMP Interest Billings and Open Receivables
Refine how interest is assessed for multiple CMP reports submitted for one PAD; this will resolve the significant over-assessment of interest for Net CMP reports released over various billing cycles
Correct how receivables are generated on multiple accepted CMP reports with the same PAD
ACM and FM will receive comprehensive CMP training in April 2017
Industry Frequently Asked Questions document on ONRR.gov, which can be located under:
Reporting/Paying > Royalty Reporting > Instructions and References > Form CMP-2014 Frequently Asked Questions