Joint Reconciliation ProgramVideo Tele-conference

Assistant Secretary of the ArmyFinancial Management and

Comptroller

Phase II Triannual Review

19 July 2011

AgendaRoll Call Mr. ArgodaleOpening Remarks Mr. Argodale Program Update: -Canceling & 4th Expired -Problem Disbursements -Travel Advances -Accounts Receivable -DTS -e Commerce Initiative Special Interest Items:

-Prompt Pay Interest -Travel Card Delinquency

-Antideficiency Act Violations

Closing Remarks Mr. Argodale

2

Opening Remarks

Mr. John J. ArgodaleDeputy Assistant Secretary of the Army

(Financial Operations)

3

FY 11 Scorecard Goal vs. Actualas of 31 May 2011

4

Description 1 Oct 10 FY11 Goal

May 31, 2011

Total ULO in Canceling Accounts --100% reduction by 31 August 2011 (straight line monthly reduction) $1,283M $0 $748M

Reduce ULO in the 4th Expired Year by 50% (straight line monthly reduction of 4.17%)

$2,704M $1,352M $2,066M

Reduce ULO in the 3rd Expired Year by 25% (straight line monthly reduction of 2.08%)

$5,239M $3,928M $3,761M

Reduce Total Negative Unliquidated Obligations (NULO) by 20% of calendar year average (straight line monthly reduction of 1.66%)

$148M $118M $236.8M

Reduce NULOs > 120 days ($ in Millions) $1.4M $0 $12.3MReduce Total Unmatched Disbursements (UMD) by 20% of calendar year average (straight line monthly reduction of 1.66%)

$230M $184M $258M

Reduce UMD > 120 days to zero ($ in Millions) $9.7M $0 $76.8MTotal Intransits > 60 days to 5% or less of total prior month balance

$9,582M $479M 5%

$2,188M 23%

FY 11 Scorecard Goal vs. Actualas of 31 May 2011

5

Description 1 Oct 10 FY11 Goal

May 31, 2011

Interest penalty payment reduction paid per million $57.02 $110 $37.2

Reduce Receivables outside of DoD > 30 days to 6.5% or less of total

4.2% 6.5% 5.1%

Reduce Receivables within DoD > 30 days to 4% or less of total intra-governmental receivables 9% 4% 1.2%

Reduce Public Receivables > 30 days to 9% or less of total public debt

5% 9% 7.3%

Defense Travel System (DTS) Usage 97% 99% 98.2%

No more than 2% delinquent CBAs 7.2% 2%4.60%

to6.62%

Electronic Commerce (reported quarterly) (as of 31 Dec 2011) 21.3% 26.7% 22.2%

Pay Timeliness - Process 97% of all Military Pay Transactions in timely manner

95.4% 97% 94.5%

Pay Timeliness - Process 99% of all Civilian Pay transactions in timely manner

99% 99% 98.7%

FY 11 Scorecard Goal vs. Actualas of 31 May 2011

6

Description 1 Oct 10 FY11 Goal

May 31, 2011

ADA - No delinquent Preliminary Investigations 20 0 20

ADA - No delinquent Formal Investigations 5 0 4

Abnormal AR(M) 1002 Unobligated Balances - To reduce all Abs >2 months old by 65% or more of the FYE 2010 AB1002 balance. (# Balances)

9 6 28

Abnormal SF133 Balances - To have 0 abnormal SF133 balances > 2 months old (# Balances)

0 0 0

Abnormal SF133 Negative Balances (# Balances) 1 0 0Overage Clearing Account Balances - To have $0 overaged clearing account balances ($M)

$0 $0 $0

Within Timeframe Clearing Account Balances ($M) $8.73 $0 $0 Deposit Accounts with Negative Balances - To have 0 negative deposit accounts balances > 3 months old (# Balances)

0 0 0

Unsupported Account Entries - To achieve a 7% reduction of the prior fiscal year's same quarter balance. (Reported quarterly)

$0 $0 $0

Undistributed Disbursements - To reduce the FY10 UUDC balances by 12% or more.

4.77% 9% 11.42%

Program Update

7

8

Canceling Appropriations FY09 – FY11By 31 Aug 2011

Reduce Canceling amounts to zero

$ in

M

  SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

FY 09 TOTAL $ 1,088

$ 1,069

$ 1,036

$ 1,005

$ 920

$ 713

$ 639

$ 606

$ 497

$ 499

$ 403

$ 329

$ 20

FY 10 TOTAL $ 819

$ 801

$ 746

$ 673

$ 613

$ 572

$ 515

$ 490

$ 477

$ 406

$ 333

$ 228

$ 28

FY 11 TOTAL $ 1,283

$ 1,197

$ 1,134

$ 1,100

$ 966

$ 886

$ 920

$ 806

$ 748        

FY 11 STRAIGHT LINE

$ 1,283

$ 1,166

$ 1,050

$ 933

$ 816

$ 700

$ 583

$ 467

$ 350

$ 233

$ 117

$ -  

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

FY 11 STRAIGHT LINE

FY 11 TOTAL

FY 09 TOTAL

FY 10 TOTAL

9

Army Payoff-Canceling Appropriations$

in M

Canceled Funded Liability -May 11O&M $ 3,078,269.09 PROC $ 4,210.00 RDTE $ 68,139.31 MILPERS $ 476,915.20 AFH $ 415,039.31 MCA $ -

Total $ 4,042,572.91

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

410.7359.5

724.2

1,088.0

819.9

1,283.0

13.2 18.6 14.4 20.0 27.8

748.0

2.8 8.2 6.0 2.8 2.8 4.0

Potential Liability

Current Liability

Canceled funded

Fourth Expired Year10

By 31 Aug 2011 Reduce 4th expired year by 50% = $1,352M

$ in

M

$2,704.00

$1,352.00

$2,066.00

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

1-Oct-10 Goal 31-Aug-11 Actual 31 May 11

Expired Balances by OA11

Command as of May 2011MILPAY 206,099,942$ ASC 161,024,316$ USACE 93,464,384$ RSW 77,633,049$ INSCOM 40,118,640$ FORSCOM 37,031,296$ MEDCOM 26,262,943$ Total 641,634,570$

Canceling YearCommand as of May 2011

MILPAY 420,095,250$ AMC 251,717,442$ IMCOM 245,410,371$ THIRD ARMY/ARCENT 180,733,213$ RSW 124,830,919$ NGB 86,770,804$ MEDCOM 72,299,523$ Total 1,381,857,522$

4th Expired

Negative Unliquidated ObligationsBy 30 Sep 2011: Reduce total NULOs by 20% of 2009 calendar year average (This is a

monthly straight line metric) Reduce to zero (>120 days)

12

$ in Millions

NULOs >120 DAYS

NULOs

$ in

M$

in M

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Straight Line

Actual

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Straight Line

Actual

>120

Overall

Total NULOs Breakout13

OA Command NULOs as of 31 May

5A ASC/PEO $ 53,664,991.03

8A ARCENT/HQ Third Army $ 45,991,656.05

22 RSW $ 38,679,126.44

18 NGB $ 28,413,414.48

• ASC/PEO: DFAS Columbus has identified contract issues involving modifications that change ACRN after disbursements made.

• OA22 and ARCENT: Balances are primarily driven by 2nd destination shipping charges that depend on end of month reconciliation to clear.

• NGB: Tried to post a $22.5M FAD to an incorrect MDEP. Correcting entries occurred in June 2011

NULO > 120 Breakout

14

14

OA Command NULOs Over 120 Days

5A ASC/PEO $ 7,561,235.43

6A AMC $ 3,919,730.81

• DFAS Columbus has identified contract issues involving modifications that change ACRN after disbursements made.

• Obligations not posting via interface. DFAS is researching solutions to interface posting issues.

Unmatched DisbursementsBy 30 Sep 2011: Reduce Total UMDs by 20% of 2009 calendar year average (This is a

monthly straight line metric) Reduce to zero (>120 days)

15

UMDs >120 DAYS

UMDs

15$

in M

$ in

M

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

Begin Bal

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Straight Line

Actual

Overall

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Straight Line

Actual

> 120

Total Unmatched Disbursements Breakout

16

16

OA Command Total UMDGB GFEBS $ 126,347,927.11

6A AMC $ 96,585,822.51

24 USARC $ 5,259,096 .00

22 SECRETARY OF THE ARMY $ 3,807,883.53

• GFEBS: Major drivers for GFEBS UMDs are payroll ($50.7M), interfund charges ($35.2M), and vendor pay ($14.8M).

• AMC: Obligations not posting via interface. DFAS is researching solutions to interface posting issues.

Unmatched Disbursements > 120 Breakout

17

OA Command UMDs over 120 Days

GB GFEBS $ 75,205,178.31

6A AMC $ 1,139,962.72

• GFEBS: Major drivers are payroll, interfund, and vendor pay.

• AMC: Obligations not posting via interface. DFAS is researching solutions to interface posting issues.

GFEBS Failed IDoc Requirements18

1-Request your attention and support to ensure obligations are promptly posted to mitigate Unmatched Disbursements (UMDs) tied to SPS and FCM IDocs and DCPS errors.

2-Management and Detail reports along with job aides for correcting these transactions are available and posted on AKO.

3-Our office will be distributing a consolidated report of outstanding errors every Wednesday and will conduct bi-weekly Command calls to discuss the status.

• Establish/reinforce your organizations responsibilities for clearing interface errors• Applicable interfaces

– DCPS Payroll– FCM Obligations– SPS Award– Future reports will follow same process

• Report types– Summary reports for management– Detail reports for end-users

• IDoc Reports & Job Aides https://www.us.army.mil/suite/files/30534145

Consolidated IDoc Summary Report19

Unobligated GFEBS Disbursements by CommandAs of July 12, 2011

Command/Org DCPS Payroll - Current Week

DCPS Payroll- Prior Week   Interfund - Current

Week Interfund - Prior Week   Failed SPS Obligations (Count) - Current Week

Failed SPS Obligations (Count) - Prior Week

ACC $23,312.57 N/A $7,896.16 N/A 65 N/A

AMC $810,786.27 N/A $9,863.07 N/A 4 N/A

ARNG $1,550,746.96 N/A $12,174,622.80 N/A 108 N/A

ARNORTH N/A N/A 6 N/A

ARSOUTH N/A $18,422.71 N/A 169 N/A

ASC $42,779.06 N/A N/A 63 N/A

ATEC $17,000.43 N/A N/A   N/A

COCOMs $63,020.62 N/A N/A   N/A

EIGHTH US ARMY $7,347.40 N/A $494,939.31 N/A   N/A

FORSCOM $1,112,902.94 N/A $8,226,402.67 N/A 202 N/A

IMCOM $53,383.50 N/A $2,506,548.87 N/A 1,088 N/A

MDW $16,428.74 N/A $76,201.73 N/A 6 N/A

MEDCOM $3,540,235.58 N/A $17,311,526.80 N/A 231 N/A

NETCOM $637,953.33 N/A $140.16 N/A 145 N/A

RSW-OA22 $2,012,197.25 N/A N/A 151 N/A

SMDC $31,920.64 N/A N/A   N/A

TRADOC $16,970.44 N/A $554,781.00 N/A 175 N/A

USACE $38,866.61 N/A N/A   N/A

USARC $15,193.65 N/A $4,511,379.46 N/A 13 N/A

USAREUR $13,195.20 N/A $353,388.11 N/A   N/A

USARPAC N/A $4,014.39 N/A 18 N/A

USMA N/A N/A 38 N/A

Grand Total $10,004,241.19 $0.00 $46,250,127.24 $0.00 2,482 -

Intransits DisbursementsBy 30 Sep 2011: Reduce balances to 5% or less of the prior months total (> 60 days)

20

20

Sep Oct Nov Dec Jan Feb Mar Apr May

Intransits $6,792, $8,903, $10,108 $9,597, $8,338, $9,942, $9,326, $9,582, $9,325,Intransits > 60 $1,424, $1,250, $1,794, $1,991, $2,062, $2,481, $2,265, $2,409, $2,188,Actual 21% 18% 20% 20% 21% 30% 23% 26% 23%

$-

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

Intransits

Intransits

Intransits > 60

Intransits > 60 Days Breakout21

OA Command Intransits > 60 Days (ABS)

GB GFEBS $ 1,915,639,634.21

DEPTAL ACCT Departmental $ 198,195,646.58

6A AMC $ 49,576,630.63

• The GFEBS Cash recon process regarding for self transactions comprise much of the 2.18B balance.

• DFAS is developing a cash reconciliation process to identify “actual” GFEBS intransits .

1 Oct 10 31 May 11 %DecreaseTotal Expired Tvl Adv $ 49.3 M $ 25.3 M 48.7%Expired Tvl Adv OA-01 $ 33.1 M $ 14.2 M 57.1%Expired Adv Less OA-01 $ 16.2 M $ 11.1 M 33.5%

By 30 Sep 2011: Reduce travel advance in expired years to zero

Travel Advances Expired Years22

Accounts ReceivablesBy 30 Sep 2011: Reduce Intra-Governmental Receivables Outside DOD > 30 days to

6.5 percent or less of Total Intra-Governmental Receivables Outside DOD

Reduce Intra-Governmental Receivables Within DOD > 30 days to 4 percent or less of Total Intra-Governmental Receivables Within DOD

Reduce Public Receivables >30 days to 9 percent or less of Total Public Receivables

23

Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Delinquent Receivables Outside DoD 4.21% 13.16% 5.91% 8.16% 3.87% 6.99% 7.61% 3.44% 5.12%Delinquent Receivables within DoD 0.90% 1.58% 1.00% 10.19% 6.07% 2.14% 0.71% 0.87% 1.16%Delinquent Public Receivables 5.01% 11.20% 8.74% 12.05% 6.49% 9.86% 9.44% 11.02% 7.32%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Voucher Percentage Summary FY 11(Proliferated Sites Only)

Goal: By 30-Sep-2011: Increase DTS Usage to 99%

99%

24

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DTS Claims 133,439 152,474 147,269 114,339 145,659 182,145 163,477 176,787 1,215,589 WinIATS Claims 3,598 3,412 2,844 2,278 1,914 2,816 2,761 3,022 22,645% DTS 97% 98% 98% 98% 99% 98% 98% 98% 98%% WinIATS 3% 2% 2% 2% 1% 2% 2% 2% 2%

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total

25

E-Commerce Usage Monthly BreakoutTotal ARMY

25

-Achieve 26.7% of hands free (electronic processing). Measured quarterly based on total universe of transactions processed in CAPS and MOCAS. (LOA count)

0

50,000

100,000

150,000

200,000

250,000

300,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug SepGoal 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 26.7%Hands free 84,562 75,845 92,105 71,019 59,855 91,190 76,865 76,449 Manual 280,140 280,446 276,861 253,414 234,686 291,479 254,887 233,184 Actual 23% 21% 25% 22% 20% 24% 23% 22%

Special Interest Items

26

Prompt Pay Interest Reduction - FYTD

27

Sep FY10 FY 11 Goal FY 11 YTDArmy $88 $110 $63

27

$110

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Actual $51 $78 $106 $80 $57 $49 $62 $37

$-

$20

$40

$60

$80

$100

$120

Army Travel CardBy 30 Sep 2011: Reduce CBA delinquent amounts to 2% or less of all CBA balances

28

2%

• Drivers include system issues causing late payments.• Recent memorandum to the Army restricting use of the CBA tothose ineligible for an IBA.

Oct Nov Dec Jan Feb Mar Apr May

Actual 3.68% 14.22% 15.19% 11.57% 5.92% 4.60% 7.86% 6.62%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Antideficiency Act ProgramFormal and Preliminary Delinquent Cases

29

USARCENT, 2

OA22, 3

USAR, 3

ATEC, 1

ASA (FM&C), 1

IMCOM, 4

ARNG, 2

MEDCOM, 4

Army G-4, 1INSCOM, 1 SMDC, 1

ASA (ALT), 1 USARCENT

OA22

USAR

ATEC

ASA (FM&C)

IMCOM

ARNG

MEDCOM

Army G-4

INSCOM

SMDC

ASA (ALT)Formal Cases Overdue: 4Prelim. Cases Overdue: 20

Total # Formal Cases: 14

Total # Prelim. Cases: 30

Overdue ADA Cases

Antideficiency Act ProgramWay Ahead

30

• Quality of investigations needs improvement- Obtain all fund certifications prior to submission to HQDA- Resolve functional and legal issues before submission - Coordinate with command counsel throughout all phases of the

investigation• Follow ASA (FM&C) investigation manual

- Consult Mr. Michael Anglemyer(703-614-7069) if you have questions

- Engage early, submit progress reports/drafts for review• Appoint a qualified investigating officer

- Knowledgeable - Trained in fiscal law- Independent of activity being investigated

- Given sufficient time and resources to complete investigation - Investigation should not compete with other workload • Senior resource managers will be expected to brief ASA(FM&C)

leadership for investigations requiring extensive rework• Cases that are significantly delinquent or legally unsupportable will

be reinvestigated at the command’s expense

Closing Remarks

31

32

703-693-3467Website:

http://asafm.army.mil/offices/FO/JointRecon.aspx?OfficeCode=1500

Centralized mailbox: JointReconProgram@conus.army.mil Next VTC: Phase III Reporting, 22 November

2011, 1500-1600

Joint Reconciliation Program