1. 1 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT DLMS Support for Standard Line of Accounting (SLOA) Overview By Bob Hammond Chair, Finance Process Review Committee June 20, 2013

2. 2 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Outline Purpose – Informational Briefing Standard Financial Information Structure Standard Line of Accounting DLMS Support Current Status Data Elements Questions

3. 3 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Standard Financial Information Structure (SFIS) Part of the DoD Business Enterprise Architecture (BEA) managed by Office of Deputy Chief Management Office (ODCMO) Investment Review Board (IRB) compliance requirement for target systems (e.g. Enterprise Resource Systems and feeder systems with financial implications) Current BEA 10.0 defines 68 SFIS elements SLOA reuses many SFIS elements, and added some new ones to BEA for SFIS compliance

4. 4 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP SFIS Purpose SFIS is a common business language that enables: Budgeting Performance-based management Generation of financial statements SFIS is a comprehensive data structure that supports: Requirements for budgeting Financial accounting, cost/performance External reporting needs across the DoD enterprise SFIS standardizes financial reporting across the Department of Defense (DoD) and allows: Revenues and expenses to be reported by programs that align with major goals Enables decision-makers to efficiently compare programs and their associated activities and costs across DoD Provides a basis for common valuation of DoD programs, assets, and liabilities

5. 5 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Standard Line of Accounting (SLOA ) Joint Deputy Chief Management Officer and Under Secretary of Defense (Comptroller) Chief Financial Officer memorandum issued on September 14, 2012 SLOA is 26 current and new data elements within SFIS Goals are to: Improve financial information Improve interoperability between business systems Provide better end-to-end funds traceability Improve linkage between budget and expenditures Comply with new Treasury requirements Help achieve audit readiness through business process reengineering Implementation plans were due to ODCMO & OUSD(C) 14 Jan 2013 Target implementation date is September 30, 2014 to support financial audit readiness

6. 6 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLMS Support of SFIS & SLOA The vast majority of logistics business events and DLMS transactions have a financial implication DLMS business processes and transactions currently rely on the Interfund Billing Process using “Fund Code” via referential table lookup to identify the accounting line associated with a transaction and to facilitate funds transfer at Treasury DLMS will need to be modified via the DLMS PDC/ADC process to support the “Target Environment” exchange of SLOA data elements as discrete data

7. 7 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLMS Support of SFIS & SLOA Continued Major process and systems changes will be required in both the logistics and financial domains for: Many logistics processes/support services where the customer’s requirement is initiated outside the Service-sponsored system Accommodating legacy systems that will be operational beyond 2014 and that cannot send or receive additional SLOA data Potential significant cost, systems, process and warfighter impacts Changes are being made to the current fund code table to add some SLOA data as discrete data elements

8. 8 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLMS SFIS & SLOA Support – Current Status DLMS PDC 1043 staffed as the first in a series of anticipated change proposals to accommodate SLOA. Pending review and approval.DLMS PDC 1043 Additional change proposals will be needed as process owners determine the best course of action for processes that do not currently accommodate SLOA. Joint Supply/Finance Process Review Committee Meeting June 20, 2013

9. 9 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP SLOA Elements NAME (Max Length) Sub Class (2) Department Transfer (3) Department Regular (3) Beginning Period of Availability Fiscal Year Date (4) Ending Period of Availability Fiscal Year Date (4) Availability Type (1) Main Account (4) Sub Account (3) Business Event Type Code (8) Object Class (6) Reimbursable Flag (1) Budget Line Item (16) Security Cooperation (formerly Foreign Military Sales (FMS) Customer Code) (3) NAME (Max Length) Security Cooperation Case Designator (formerly known as “FMS Case Identifier”) (4) Security Cooperation (formerly FMS) Case Line Item Identifier (3) Sub-Allocation (formerly known as “Limit”) (4) Agency Disbursing Identifier Code (8) Agency Accounting Identifier (6) Funding Center Identifier (16) Cost Center Identifier (16) Project Identifier (25) Activity Identifier (16) Cost Element Code (15) Work Order Number (16) Functional Area (16) Security Cooperation Implementing Agency (IA) Code (1)

10. 10 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Questions?