Department of the Navy Financial Improvement Plan by xzn32344

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									Department of the Navy
Financial Improvement Plan
Accounts Receivable


Mindy Schatz
February 1, 2005




Your Financial Partner @ Work
   Overview


      Review And Revise DON FIP
      EPortal
      Joint DFAS/DON “Statement Of Expectations”
      Aged Accounts Receivable Reporting
      Measurement Of Success
      Root Causes
      Validation And Documentation
      Controls and Risk Assessment


4/26/2010                                     2
   Review And Revise



   DFAS-CL Review Of The DON General Fund FIP
               General Fund Departmental Reporting
               STARS System Changes
               AFS General Fund Reporting


   DON FIP Revisions
               Additional Action Items Identified
               Expected Completion Dates Revised
               Primary And Secondary Responsible Offices Identified
               STARS PMO SCR and Task Orders Identified




4/26/2010                                                              3
   DFAS-CL EPortal - DON FIP Project



               Revisions Of the DON FIP
               POC List
               Systems
               Access
                   DFAS/Navy
               Documentation
               Measures/Metrics




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   Statement Of Expectations



            Develop a Joint DFAS/DON “Statement of
              Expectations”

              Goals:
                 Improve DFAS/DON Communications
                 Identify and Define Expected Actions
                 Identify Responsible Parties
                 Resolve Delinquent Accounts Receivable




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   Aged Accounts Receivable Reporting


            Aged Accounts Receivable Report

               Provided Monthly
               To Major Claimant
                   POC
               To Include Detailed A/R
               Data Call Of Aged A/R
               STARS - Develop An SCR To Produce An
                Aged Accounts Receivable Reports
                   Initially Will Provide Intragovernmental




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   DON Delinquent Accounts Receivable
  Total Navy - General Fund and NWCF
  Greater than 2 Year Delinquent:
               9/30/03      9/30/04                          12/31/04            % Reduction

  Public                 146M                  59M              40M                  73%
  Intra                   70M                   6M               5M                  93%
  Total                  216M                  65M              45M                  79%

  Total Delinquent:
               9/30/03                       9/30/04         12/31/04            % Reduction
  Public        269M                         217M               81M                 70%
  Intra         681M                         170M             113M                  83%
  Total         950M                         387M             194M                  80%
     Note: (Does Not Include Amounts at Treasury, DOJ, Litigation, Bankruptcy)
4/26/2010                                                                              7
   Measurement Of Success

            Metrics

            General:
             Establish Goals
             Produce Monthly
             Place On DFAS-CL Portal

            Categories:
             Accounts Receivable Public
             Accounts Receivable Intergovernmental
             By DFAS Field Site
             Monthly Comparisons
             Navy General Fund
             Navy Working Capital Fund

4/26/2010                                             8
   Metrics


   Metric Measurement:
    Public A/R > 180 Days Delinquent Not Referred for
     Collection
               DDMS, CDS
      A/R > 1 Year Delinquent
               Less Litigation, Bankruptcy, DOJ and Treasury
      A/R > 2 Years Delinquent
               Less Litigation, Bankruptcy, DOJ and Treasury
      Total Delinquent A/R
               Percent of Total A/R




4/26/2010                                                       9
   Navy General Fund Public A/R > 2 Years Delinquent
                                                                  Navy General Fund
                                                   Public Accounts Receivable > 2 Years Delinquent
                                       (Less Litigation, Bankruptcy, DOJ, Treasury, MOCAS, DDMS, CDS, DCPS)

                                                      9/30/2004     Oct-04        Nov-04    Dec-04
    $18.00

    $16.00

    $14.00

    $12.00

    $10.00

     $8.00

     $6.00

     $4.00

     $2.00

     $0.00

     -$2.00
                  Charleston       Japan            Norfolk             Pacific            Pensacola          San Diego       Actual

  (in Millions)        9/30/2004   Oct-04      Nov-04         Dec-04     % Change          Jan-05      Feb-05       Mar-05   Apr-05    May-05
  Charleston              $0.07    $13.66       $0.00         $0.00          -100%
  Japan                   $0.00    $0.03        $0.00         $0.00           0%
  Norf olk                $0.21    -$0.93       $0.05         -$0.92         -532%
  Pacif ic                $0.00    $0.00        $0.00         $0.00           0%
  Pensacola               $0.00    $0.01        $0.00         $0.00           0%
  San Diego               $0.00    $4.90        $0.00         $0.00           0%
  Actual                  $0.28    $17.66       $0.05         -$0.92         -426%


  Goal % Reduction                  10%          30%              50%                       70%         70%          100%
  Goal ($)                         $0.25        $0.20         $0.14                        $0.08        $0.08        $0.00
  Actual Le s s Goal               $17.40       -$0.15        -$1.06

4/26/2010                                                                                                                    10
    Navy General Fund Intragovernmental A/R > 2 Years
    Delinquent
                                                                     Navy General Fund
                                                 Intragovernmental Accounts Receivable > 2 Years Delinquent

                                                           9/30/2004    Oct-04         Nov-04    Dec-04
     $2.50



     $2.00



     $1.50



     $1.00



     $0.50



     $0.00



    -$0.50
                 Charleston            Japan              Norfolk            Pacific             Pensacola           San Diego                Total
 (in Millions)   9/30/2004    Oct-04    Nov-04    Dec-04    % Change   Jan-05     Feb-05        Mar-05    Apr-05   May-05   Jun-05   Jul-05    Aug-05 Sep-05
 Charleston        -$0.05     -$0.06     $0.00    $0.00       -100%
 Japan              $0.00     $0.00      $0.00    $0.00        0%
 Norf olk           $0.56     $0.56      $0.15    $0.70        26%
 Pacif ic           $0.00     $0.00      $0.00    $0.00        0%
 Pensacola          $0.00     $0.00      $0.00    $0.00        0%
 San Diego          $1.37     $1.45      $1.45    $1.46        6%
 Actual             $1.88     $1.95      $1.60    $2.16        15%


 Goal % Reduction              5%        10%       20%                  30%        40%           50%       60%      70%      80%     90%         95%    100%
 Goal ($)                     $1.79      $1.69    $1.51                 $1.32      $1.13        $0.94     $0.75    $0.56    $0.38    $0.19      $0.09   $0.00
 Actual Le s s Goal           $0.16     -$0.09    $0.65

4/26/2010                                                                                                                                11
   Navy General Fund Public A/R > 180 Days Delinquent
                                                                             Navy General Fund
                                                      Public Accounts Receivable > 180 Days Delinquent Not Referred
                                                  (Less: Litigation, Bankruptcy, DOJ, Treasury, Mocas, DDMS, CDS, DCPS)
                                                               9/30/2004     Oct-04           Nov-04     Dec-04
       $20.00

       $18.00

       $16.00

       $14.00

       $12.00

       $10.00

        $8.00

        $6.00

        $4.00

        $2.00

        $0.00
                   Charleston            Japan                Norfolk               Pacific              Pensacola           San Diego               Total
  (in Millions)   9/30/2004     Oct-04   Nov-04      Dec-04   % Change     Jan-05      Feb-05          Mar-05   Apr-05    May-05   Jun-05   Jul-05    Aug-05   Sep-05
  Charleston       $1.64        $7.59    $2.18        $2.15      31%
  Japan            $0.00        $0.00    $0.00        $0.00       0%
  Norf olk         $8.90        $5.62    $1.40        $1.48      -83%
  Pacif ic         $0.00        $0.00    $0.00        $0.00       0%
  Pensacola        $0.79        $0.55    $0.47        $0.56      -29%
  San Diego        $1.04        $5.85    $1.27        $1.46      41%
  Actual           $12.37       $19.61   $5.32        $5.65      -54%


  Goal % Reduction               10%      20%         30%                   40%         50%             60%       65%      80%      90%     100%
  Goal ($)                      $11.13   $9.89        $8.66                $7.42        $6.18          $4.95      $4.33   $2.47    $1.24    $0.00
  Actual Le s s Goal            $8.47    -$4.57      -$3.01

4/26/2010                                                                                                                                            12
   Resolution Of Delinquent of Accounts Receivable



               Identify Root Causes
                   Systems Problems.
                   Missing or Closed LOA.
                   Awaiting Funding Documents from DON Fund
                    Administrator.
                   Request Write off Approval and Current Appropriation
                    to Write off.
               Reduce The Inflow




4/26/2010                                                         13
   Validation Phase
      Validation Package
           Document Business Events & Processes
               Flowcharts, Narrative, SOP
           Ensure Proper Accounting for Business Transactions
           Assess Risk and Identify Controls
           Document & Test Controls
           Identify New Deficiencies
           Document Corrective Actions Taken
           Identify & Document Systems
           Identify Universe of Transactions (G/L Transaction Detail)
           Ensure Supporting Documentation is Available
           Ensure Ability to Produce Audit Evidence Within
            48 Hours
           Ensure Proper Audit Trails Exist
           Complete Checklist
4/26/2010                                                      14
   Documentation



            Provide Narrative Memorandums & Flowcharts to
              illustrate the Business Process:

                  Identify the Event That Triggers the Transaction
                  Identify the Systems Involved in the Process
                  Identify Outputs - Reports
                  Identify Controls
                  Identify the Audit Trail
                  Identify Business Practices
                  Identify Applicable Guidance, Regulations



4/26/2010                                                             15
          DFAS
Your Financial Partner @ Work

								
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