An Overview

1
An Overview

• Financial Management
• Matrix
• Tuesday, May 25, 2004
• Marcy Herringshaw
• OCFO/Controller Operations Division/Financial
  Reporting Branch

2
Financial Management Matrix

• What is it?
• Why was it created?
• When was it created?
• Who created it?

3
Flow of Certification

• COD Certifies their tasks
• Customer Liaison and Training Branch (CLTB) will
  send COD certifications to each Agency quarterly
• 3. Agency CFO reviews and signs their
  certification letter

4
Monthly Certification Report of Financial
Processes
5
Flow of Certification

• 4. Agency Head reviews and signs concurrence
• 5. Subcabinet reviews and signs concurrence

6
Then What Happens?
Does Pat Healy, Acting Chief Financial Officer,
really see the certification of the Financial
Management Matrix? Is this really an OIG audit
issue?

7
SUBJECT CFO Certification of 2nd Quarter FY
2004 Unaudited Financial
Statements
TO Patricia E. Healy
Acting Chief
Financial Officer

•   We confirm, to the best of our
  knowledge and belief, the following
  representations made during the preparation of
  the March 31, 2004 unaudited financial
  statements.
• 1. The financial statements are fairly
  presented in conformity with Federal accounting
  standards.
•  
• 2. There are no material transactions
  including accruals that have not been properly
  recorded in the accounting records underlying the
  financial statements.
•  
• 3. Intra-departmental transactions and
  balances have been appropriately identified and
  eliminated for financial reporting purposes,
  unless otherwise noted.
•  
• 4.     We have recorded transactions
  with the Department of Labor and the Office of
  Personnel Management consistent with amounts
  confirmed by the department. We have reconciled
  intra-governmental transactions with the Bureau
  of Public Debt and the Federal Financing Bank
  and balances have been appropriately reported,
  unless otherwise noted.
•  
• 5. The allowances for losses are
  considered sufficient to provide for losses that
  may be sustained on realization of the applicable
  receivables, credits, and guarantees.
•  
• 6. The amounts recorded for property
  reasonably estimate the value of the assets.
•  
• 7. We have completed the
  Comparison/Linking document that shows the
  relationships between the statements and we have
  reviewed the financial statements for
  correctness.
•  
• 8. We have completed the steps outlined in
  the Financial Statements Tasks Matrix for
  Accounting Period 6 March 2004.
•  

8
SUBJECT CFO Certification of 2nd Quarter FY
2004 Unaudited Financial
Statements
TO Patricia E. Healy
Acting Chief Financial Officer

•  
• 8. We have completed the steps outlined in
  the Financial Statements Tasks Matrix for
  Accounting Period 6 March 2004.
•  

9
SUBJECT CFO Certification of 2nd Quarter FY
2004 Unaudited Financial Statements
TO Patricia E. Healy
Acting Chief Financial Officer

•  CFO Certification
• I certify that the information provided as of and
  for the period ending March 31, 2004, from the
  Foundation
• Financial Information System (FFIS), FFIS data
  entry tool, or both for the principal statements
  is consistent with
• the Agencys accounting records and that like
  amounts are reported consistently throughout the
  financial
• statements.
• CFO Signature
  
  Date
  
  
  
• Agency Head Concurrence
•  
• Agency Head Signature
  
  Date
  
  
  
• Subcabinet Concurrence
•  
• Undersecretary Signature
  
  Date
• 
  
  
  
• FAX CFO Certification to [phone].

10
Audit Report
Finding 2 Quality Control Review Process Needs
Improvement Given the accelerated timeframes
imposed by the Office of Management and Budget
(OMB), there will not be an opportunity in future
years for the auditors to detect these material
errors and provide the agency with time to make
the necessary corrections. As a results, unless
the Department-wide quality control process is
improved, there is a high-risk that the
Departments opinion on its financial statements
could deteriorate.
USDA/OIG-A/50401-51-FM
11
Financial Management Matrix

• TASK
• Review Documents Suspense Table (SUSF)
• Responsible Party Agency
• Frequency Daily

12
Financial Management Matrix

• TASK
• Execute Nightly Cycle
• Responsible Party Accounting Processing
  Branch (ACPRB)
• Frequency Daily

13
Financial Management Matrix

• TASK
• Review System Assurance Reports
• Responsible Party Accounting Processing
• Branch (ACPRB) FA
  Agency FA
• Frequency Daily

14
Financial Management Matrix

• TASK
• Cash Reconciliation
• Responsible Party Agency
• Cash
  Reconciliation
• Branch
  (CRB)
• Frequency Weekly

15
Financial Management Matrix

• TASK
• Review /Analysis of Trial Balance
• Responsible Party Agency
• Financial
  Reporting
• Branch (FRB)
• Frequency Monthly

16
Financial Management Matrix

• TASK
• Verify that the directly entered monthly accruals
  
• reversed
• Responsible Party Agency
• Frequency Monthly

17
Financial Management Matrix

• TASK
• Run FACTS II Jobs
• Responsible Party Accounting Processing
  Branch (ACPRB)
• Financial Reporting Branch (FRB)
  Agency
• Frequency Monthly

18
Questions