1. 1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 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 STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT Unliquidated Obligations April 2015

2. 2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 DLA is undergoing a variety of efforts to become audit ready. Clean up of data Preparation and refinement of procedural instructions Refinement/establishment of additional internal controls Sustainment of processes to ensure audit readiness Audit Readiness

3. 3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 An unliquidated obligation is defined as a reservation of funds without a matching disbursement. Simply put: They are unpaid orders/contracts. Cause for concern begins 120 days after the contract delivery date, unless an issue is revealed before that time. Definition

4. 4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 When Everything Goes Right Order is placed Contractor ships and completes receiving report and invoice in WAWF Invoice and receiving reports post to the system Stock is received and posts to the system Invoice is paid, order is now liquidated System is satisfied and the order can position to close (often times automatically)

5. 5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 When Something Goes Wrong Missing, incorrect, rejected, or voided invoices Unreceipted quantities on shipments Shipping to the wrong location Shipping the wrong quantities Shipping against the wrong CLIN Shipping more than required when the contract does NOT contain a variation in quantity And many more...

6. 6 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 How You Can Help Avoid issues by knowing your contract/order: -How many lines are there? -How are those lines labeled? -What is the quantity on each line? -Where is each line going? -Has a modification changed anything that will affect your receiving report or invoice? Ensuring your paperwork matches your order will minimize issues!

7. 7 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 How You Can Help Follow up to ensure everything processed properly. If there are issues, notes are usually in the document to identify the issue. You can talk with DFAS or your post award administrator if you need assistance. We want to ensure our contracts are receipted and invoiced correctly and that all of our contractors are paid promptly and properly.

8. 8 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT