1. DoD Component Program Managers Breakout Session
Tuesday, 16 July 2019
2:00 pm – 3:10 pm EST
2019 GSA SmartPay Training Forum
Office of the Under Secretary of Defense for Acquisition and Sustainment Defense Pricing and Contracting
Contracting eBusiness
(OUSD(A&S)/DPC/CeB)
Website:
No Recording or Videotaping Authorized

2. DPC Updates and Related Activities U.S. Bank Updates
Agenda
DPC Updates and Related Activities
U.S. Bank Updates
Mastercard (MC) / MC Insights on Demand (IOD) Updates
Expert Panel
Navy GPC Program Monthly and Semi-Annual Review Process
Army Joint Appointment Module (JAM)
Questions and Answers

3. DPC Updates and Related Activities
Configuration Items—Prioritization

4. Placeholder for updates and information
U.S. Bank Updates
Placeholder for updates and information

5. Placeholder for updates and information
MC/MC IOD Updates
Placeholder for updates and information

6. Army: Erin KirkPatrick
Expert Panel
Navy: Catherine Quarles (NAVSEA), Theresa Villanueva (BUMED), Mary Jo Baker (NAVFAC), and Kathy Boone (NAVSEA)
Army: Erin KirkPatrick

7. Department of Navy Monthly and Semi-Annual Review Process
Government Purchase Card Program
Monthly and Semi-Annual Review Process
Presented by
Catherine Quarles
Naval Sea Systems Command

8. Introduction/Purpose
Catherine Quarles A/OPC with 12 years of experience Naval Surface Warfare Center, Panama City DON Semi-annual Report Program Audit Tool Processes Insights on Demand
Introduce yourself. Smile!
I am here today to provide information on DON’s Semi-Annual Reporting Process and PAT processes we expect to see emulated in Insights on Demand (IoD)
The Program Audit Tool is an artificial intelligence, data mining tool, used by the Navy, instead of PCOLS. Insights on Demand is replacing the Program Audit Tool and PCOLS.

9. Agenda
Basics Background Benefits of a Data Mining Tool DON/NAVSEA Monthly Review Process DON Semi-Annual Review Process Lessons Learned Summary
First, we’ll touch on a few basics to help with communication
I’ll provide a brief background of DON’s experience with the Program Audit Tool
Followed by the benefits of a data mining tool, specifically PAT
We’ll discuss the timeline and other aspects of the DON monthly review process, which is the foundation for timely semi-annual reporting.
Lastly, I’ll talk about a few of our Lessons Learned and provide a brief summary.

10. Basics
Our first Semi-annual Report with Insights on Demand – hasn’t happened yet
Our final Semi-annual Report with Program Audit Tool closed December 2018
Terminology
CH – Cardholder
HA/CO – Head of Activity/ Commanding Officer
ABO – Approving/Billing Officer
CPM – Component Program Manager
A/OPC – Agency/Organization Program Coordinator
SAR – Semi-annual Report
OA/OPC – Oversight AOPC
PAT – DON Program Audit Tool
IoD – Insights on Demand
Since I have not yet submitted a Semi-Annual Report with Insights on Demand, I will be discussing the Navy’s process with the Program Audit Tool (PAT) in the present tense, as if we are still using it today.
In the future, we expect to be able to substitute Insights on Demand functions anywhere we used Program Audit Tool .

11. Background
The Naval Sea Systems Command tested PAT as pilot program in September All DON activities to used PAT continuously from
DoD developed PCOLS in that timeframe; DON continued with PAT, which provided an advanced level of oversight.
“DoD Reporting of Charge Card Misuse to OMB” noted the effectiveness of DON’s Program Audit Tool (DODIG dated 3 April 2018)
Based on DON’s proven success, DoD intends to apply and expand PAT methodology in future releases of Insights On Demand (IoD).
This brief history describes the Navy perspective.
The Navy used PAT for 12 years; with NAVSEA piloting the program in 2007, and used by all Navy activities from 2009 until the end of the SmartPay2 contract last year.
The DoD developed PCOLS in that timeframe; however, the Navy stayed with PAT, because it offered a more advanced level of oversight.
The DOD IG noted PAT’s effectiveness in 2018,
Intending to apply and expand it’s methodology in the future.

12. Benefits of PAT Methodology
Combines artificial intelligence and data mining technology to analyze and filter bank data; documents GPC program officials’ reviews of potentially questionable transactions;
Direct interface with the bank provides timely program statistics for effective oversight and risk management.
The PAT uses a combination of artificial intelligence and data mining technology to filter and analyze data.
It documents the positive reviews and negative findings for potentially questionable transactions.
Because it uses a direct interface with the bank, it provides timely statistics which can be used for effective oversight and risk management

13. Benefits of PAT Methodology
Systematically provide consistent, accurate summary program statistics on demand, including;
Data source: Bank
Data Source: PAT
Quantity of transactions
Quantity of assessments
Total dollars spent
Data Source: A/OPC Reporting
Inactive accounts
Number of people/GPC role*
Credit exposure risk
Required training status*
Span of control
Categorized delinquencies
As you can see, PAT compiled information from the bank (listed on the left), from it’s own review history, and three data points provided by the A/OPC (both listed on the right).
With the onset of JAM role award and training management, the only data point influenced by the AO and/or A/OPC will be the determination of infractions and how they are categorized.
*In the future, Insights on Demand and PIEE-JAM will be the sources for these data points

14. Benefits of PAT Methodology
Enable virtually automatic semi-annual report preparation using data captured during GPC program official monthly reviews;
Generate consistent and accurate OMB quarterly reporting of statistical data with minimal manual intervention; and
Provide reasonable assurance to OA/OPCs and DON CPM that the management internal controls effectively mitigate program risk.
With PAT, the report preparation was nearly automatic, based on submitted monthly reviews.
PATs reporting functions provided consolidated data for a specified reporting period on demand.
PAT generated reliable data for OMB quarterly reporting with little hands-on intervention.
The availability of continuous analysis provides reasonable assurance that your internal controls are working to mitigate program risk.

15. DON/NAVSEA Monthly Review Process
CH and ABO Timeline
NAVSEA CHs have five (5) business days after the close of the billing cycle to complete reconciliation and submit their monthly reconciliation package to the ABO.
ABOs review monthly reconciliation packages and PAT cases within 10 business days after the close of the billing cycle. A/OPCs may grant an extension as necessary.
ABOs have the ability to review selected transactions/cases as soon as they populate PAT and they have complete supporting documentation from the CH.
I think the CH and ABO in the same for everyone. The has 5 business days after cycle close; the ABO has another 5 days for their review to be complete within 10 business days after the cycle close.
ABOs have the ability to review selected transactions/cases as soon as the populate in PAT *AND* they have complete supporting documentation from the CH.
ABOs (or APCs) can investigate questionable transactions before the end of the billing cycle,
OR local processes may allows for complete review, as a standard, throughout the month

16. DON/NAVSEA Monthly Review Process
AOPC Timelines
A/OPCs complete monthly reconciliation package and PAT reviews and submit the monthly CO Management Report to next level OA/OPC within 30 days of the close of cycle. Additionally, A/OPCs are highly encouraged to run other audit tool reports to effectively oversee and manage the program
Each OA/OPC completes review within 10 days
Final submission of PAT to CPM within 50 days of the close of cycle
Activity-level A/OPCs review reconciliation packages, PAT transaction cases, and submit their CO Management report within 30 days of the close of cycle.
Each Oversight A/OPC level completes their review within 10 days, so
The final submission to the Component Program manager is within 50 days of close of cycle.

17. DON/NAVSEA Monthly Review Process
A/OPC - other considerations:
A/OPCs wait for monthly reconciliation packages to complete the review in order to validate the information submitted by the ABO. On occasion, it is necessary to reject a review back to the ABO for correction.
At the discretion of the local HA/CO, A/OPCs may provide written or in-person program briefs on a monthly, quarterly, or as needed basis.
BONUS: The monthly and semi-annual reports may provide supporting documentation for other auditing and reporting requirements.
A/OPCs complete their review after receiving reconciliation package, so they can validate the ABO input.
Occasionally, an ABO makes an error, requiring rejection, correction, and resubmission in a short timeframe.
A/OPCs may brief their HA/CO in writing or in person on a monthly, quarterly, or as needed basis.
- At my command, I submit written reports monthly CO management report to the CO with an explanation of any anomalies.
- I brief the Semi-Annual Report in person prior to signature
I consider it a great bonus, that the monthly and semi-annual reports document consistent oversight of the program and may be suitable for other auditing and reporting requirements.

18. DON Semi-annual Review (SAR)
Purpose
DON’s SAR demonstrates adherence to internal management controls and ensures HA/CO involvement in each activity’s GPC Program.
The SAR is a single report that is an aggregate of the activity’s past six (6) months of transactional/case and monthly reviews. This report is created by the A/OPC using reporting functions in PAT.
Benefits
SAR reporting is super easy and painless as long as GPC participants are:
Consistently and accurately completing their monthly reviews and
Validating and reporting accurate monthly infraction and statistical data (e.g. number of participants, training status)
So, why do we submit a Semi-Annual Report?
In a single report, that is an aggregate of our last 6 months of case reviews and monthly reviews, the SAR shows we’re following our internal management controls, AND it ensures the HA/CO is involved and aware of the status of the program.
Benefits.
Well, first and foremost, it’s really easy…as long as…
Your team is consistent and accurate, and timely in completing their monthly reviews and
You ensure reports are accurate with regard to monthly infraction and statistical data.

19. DON SAR Process
DON distributes a Purchase Card Administrative Notice (PCAN), announcing the due dates for each stage of the SAR submission.
A/OPCs use PAT to automatically consolidate the required data by running a CO Management Report, Actions and Infractions Report, and Deployed Status Report for the six-month period
The PAT Deployed Status Report confirms completion of all transactions previously deferred/deployed during the reporting period.
The DON process starts with the issuance of a Purchase Card Administrative Notice (PCAN) to announce due dates for each stage.
Next, the A/OPCs use PAT to generate three reports: CO Management, Actions and Infractions, and Deployed Status (used to confirm completion of all previously deferred/deployed transactions. (All transactions must be complete by SAR submission.)

20. DON SAR Process
DON’s SAR process also utilizes a manually-created auxiliary spreadsheet to report data the bank system does not capture (e.g. hierarchy summary, contingency procurements, internal control weaknesses identified during the reporting period).
IoD Notes:
The SAR report names in IoD are HA Report and Actions and Findings Report.
Future IoD enhancements and the pending data interchange between Joint Appointment Module (JAM), US Bank, and IoD will replace the need for a manual auxiliary spreadsheet. These enhancements will also standardize DoD program management and oversight per GAO Standards for Internal Controls in the Federal Government as required in DoD Charge Card Guidebook.
Our SAR process also requires A/OPCs to manually complete an auxiliary spreadsheet to report data that’s not in the bank system –that is, your hierarchy summary, contingency purchases, and internal control weaknesses during the reporting period.
To translate PAT reports to IOD terminology, the report names are HA Report and Actions and Findings Report.
The good news is, future enhancements to IOD and the JAM data interchange will replace the manual spreadsheet AND standardize DoD program management and oversight to GAO and DoD Charge Card Guidebook standards.

21. DON SAR Process A/OPC Actions:
Briefs their HA/CO on the SAR results, as evidenced by the PAT reports and auxiliary spreadsheet,
Obtains the HA/CO signature on the CO Management Report and submits the signed report and auxiliary spreadsheet to the next level OA/OPCs via .
A/OPC runs (and validates) the PAT reports and prepares the auxiliary worksheet, and uses them to brief their HA/CO on the SAR results.
The HA/CO signs the CO Management report, and the A/OPC submits the signed report and auxiliary worksheet to the next level Oversight A/OPC.

22. DON SAR Process OA/OPC Actions (determined by oversight level):
Uses PAT and auxiliary spreadsheet to review, consolidate and submit a SAR to the next level OA/OPC via .
Uses PAT to run consolidated reports for all activities under the component.
Briefs the HA/CO on the reports and obtains signature.
s consolidated CO Management Report and auxiliary worksheet to DON chain of command by 15 June and 15 December each year.
The Oversight A/OPCs
Use PAT and the auxiliary spreadsheet to review, consolidate and submit a SAR to the next level OA/OPC (where appropriate)
Run consolidated, in PAT, for all activities under the component,
Brief and obtain HA/CO signature on the reports.
the consolidated CO Management Report and auxiliary worksheet to DON chain of command by the 15th of June and December.

23. DON SAR Lessons Learned
A/OPCs should provide clear and concise IoD Training so GPC program officials can confidently, consistently, and accurately complete timely case reviews. Adequate training will reduce the need for rejections.
Data mining does not identify all infractions. GPC program officials must continue to review transaction- supporting documentation and manually add “substantiated infractions” to IoD.
Lessons Learned
A/OPCs should provide clear and concise training to get consistent, accurate, and timely case reviews from their team. Adequate training will reduce the need for rejections.
Data mining does not identify all infractions. Program Officials (ABOs/APCs) must continue to review transaction supporting documentation and add *substantiated* infraction to IOD.

24. DON SAR Lessons Learned
An alternate ABO shall be assigned to each managing account to ensure timely submissions and avoid the need for deferments.
GPC program officials may want to establish local procedures with CHs to facilitate the review of cases throughout the billing cycle to avoid the crunch at the end of each billing cycle.
DON implemented strict span of control policy
ABO will not oversee more than seven CHs
A/OPC will not oversee more than 300 CHs and ABO accounts
An alternate ABO shall be assigned to each managing account.
- Besides the fact that this is a requirement, you really need this. Nothing messes up a timely submission like the single point of failure of a missing ABO with no alternate.
You may want to set up local procedures with CHs to facilitate ABO case reviews throughout the billing cycle. This will help avoid the time crunch at the end of the billing cycle.
- At our command, ABOs complete full transaction documentation review on most cases before the end of the billing cycle.

25. Summary
The data mining and artificial intelligence methodology used in IoD are effective tools to assist A/OPCs in the efficient oversight and streamlined reporting of the GPC Program.
DON is looking forward to future IoD enhancements that will allow IoD to emulate and potentially surpass the functionality provided by PAT.
It’s going to be awhile before we have smooth sailing, and it is evident that DoD’s plans of integrating IoD with PIEE-JAM and WAWF with US Bank’s Access Online is well underway, so...hang on tight!
In summary…
IOD’s data mining and artificial intelligence are effective in helping A/OPC oversight and streamlined reporting in the GPC Program.
DON is looking forward to future IoD enhancements to emulate or surpass PAT functionality. AND
It’s going to be awhile before we have smooth sailing, and DoD plans to integrate IOD, PIEE-JAM, and WAWF with US Bank’s Access Online is underway, so hang on tight!

26. Joint Appointment Module
Ms. Erin KirkPatrick, U.S. Army
No Recording or Videotaping Authorized

27. Procurement Integrated Enterprise Environment
Joint
Appointment
Module
(JAM)

28. Challenges
Appointment Completion Roadblocks
Certificate Issues (x 509 Non-Repudiation Error)
JAVA Issues
Previously Established Accounts (Disabled or Archived)
Supervisor Approvals
Billing Officials - Existing Accounts Under Different DoDAAC (Example: COR role)
DoDAAC Structure Issues
Approving Authority (AA) for DD 577s
Communication

29. Technical Solutions
Overcoming Appointment Roadblocks
CAC Authentication (Most IMPORTANT)
Verify DODAAC Structure (An Oversight AOPC Must Be Able to See All A/OPCs in JAM)
Current Users: Ensure Home Location DODAAC Is Correct
Approving Authority (AA): Get Resource Management Involved
Use the WBT Module (Educate Yourself & Your Workforce)

30. Change Management Solutions
JAM Appointment Success
Initiative and Persistence Are the Key
You Set the PACE
Communicate with Stakeholders - GAMs/AOPCs/RMs/BOs/CHs
Use a Phased Approach

31. Please feel free to use this time to ask questions
Questions and Answers
Please feel free to use this time to ask questions