Overview of GWA Central Accounting Process

1
Overview of GWA / Central Accounting Process

• 
  Leroy Larkins
• 
  Carolann Marker
• 
  Rita Cronley
• 
  Randall Claud
• 
  Keith Jarboe
• 
  Jeffrey Hoge
• 
  David Rebich

2
Overview of GWA / Central Accounting Process

• Managing Cash
• Warrant Process
• FACT II
• SF 224/ Account Statement / SOD
• Data Consistency Eliminations, Edits

3

• Managing the Nations Money

Leroy Larkins Cash Forecasting Division Government
Wide Accounting May 5, 2005
4
Overview

• - The Importance to Treasury, the Federal
  Reserve, and to
• the economy
• - Roles and Responsibilities
• - Overview of the Process

5
Importance to Treasury

• - Assure adequate funds are available to make
  payments
• - Minimize interest on borrowings maximize
  earnings
• on excess cash

6
Treasury Roles and Responsibilities

• Office of Fiscal Projections, Office of the
  Fiscal Assistant Secretary
• Projects daily collections and disbursements up
  to nine
• months in advance
• Recommends the amount and timing of borrowing
  from
• the public based on securities and funds
  needed to make
• payments

7
Cash Forecasting Division, Financial Management
Service

• Provides program support to the Office of Fiscal
  Projections (OFP) in monitoring, forecasting and
  managing Treasurys cash and debt position
• Publishes the Daily Treasury Statement (DTS)
• Maintains and enhances the CashTrack System

8
Wheres the Money ?
9

Treasury General Account

• Deposits held at the FRB NY
• Serves as the U.S. Governments checking
  account
• All Federal Government deposits and payments flow
  through the TGA
• Treasury targets a daily balance of 5 billion

10
Treasury Tax and Loan Accounts (TTL)

• Deposits held at 993 Financial Institution
• Serves as the U.S. Governments interest bearing
  savings account
• Holds tax receipts and excess cash until needed
• Allows Treasury to conduct scheduled borrowing
  operations

11
The Process
12
Federal Program Agencies
Roles and Responsibilities

• Provide Large Dollar Notifications

13
Large Dollar Notifications

• What/When to report
• Disbursements and collections
• If 500 million or greater 5 business days
  prior
• If 50 million or greater 2 business days
  prior
• By 830 a.m. day of settlement
• Needed from
• Agency certifying/financial officers
• Treasury Regional Financial Centers
• Non-Treasury disbursing officers
• Agencies with delegation of disbursing authority
• For more information
• Volume I, Treasury Financial Manual, Part 6
  Chapter 8500

14
Where to report?

• Cash Forecasting Division
• E-mail fundscontrol_at_fms.treas.gov
• Fax [phone]
• [phone]
• Telephone [phone]

15
Daily Conference Call

• Held every banking day at 900 a.m.
• Includes
• - Treasury - Office of Fiscal Projections
• - Treasury Cash Forecasting Division
• - FRB NY Markets Operations Group
• - Board of Governors
• Decides to invest or withdraw funds from savings
  to achieve the 5 billion target balance for the
  day
• Takes preliminary action to invest or withdraw
  funds from savings to achieve a 5 billion target
  balance for the next business day

16
The Daily Treasury Statement

• Summarizes the US Treasury's cash and debt
  operations for the Federal Government on a
  modified cash basis. Deposits are reported as
  received and withdrawals are reported as
  processed.
• Made available to the public every business day
  at 400 pm.
• www.fms.treas.gov/dts

17
Appropriation Process

• Carolann Marker
• Budget Reports Division
• Governmentwide Accounting
• May 5, 2005

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APPROPRIATIONS
Other Legislation (Continuing Resolutions)
Warrant
Budget Reports Division (BRD)
Federal Program Agency (FPA)
Request
Recap with OMB Warranting run (When available)
Approved copy
Warrant
STAR
19
Consolidated Appropriations Act, 2005, 658 pages

• Agriculture
• Commerce, Justice and State
• Energy and Water
• Foreign Operations
• Interior
• Labor, HHS and Education
• Legislative
• Transportation and Treasury
• Veterans Affairs and HUD

20
Public Law 108-447Consolidated Appropriations
Act, 2005

• Example Annual Account
• Agricultural Programs - 1250115
• Production, Processing, and Marketing
• Office of the Secretary

21
PRODUCTION, PROCESSING, AND MARKETING OFFICE OF
THE SECRETARY 12 5 0115 For necessary expenses
of the Office of the Secretary of Agriculture,
5,124,000 Provided, That not to exceed 11,000
of this amount shall be available for official
reception and representation expenses, not
otherwise provided for, as determined by the
Secretary.
22
Public Law 108-447Consolidated Appropriations
Act, 2005

• Example 12 1502
• Integrated Activities
• Fiscal Year 12 5 1502
• Multi-Year 12 5/6 1502
• X-year 12X1502

23
INTEGRATED ACTIVITIES 12 5 1502, 15X1502, 12
5/6 1502 For the integrated research, education,
and extension grants programs, including
necessary administrative expenses, 55,153,000,
to remain available until expended, 1,000,000
for grants programs authorized under section
2(c)(1)(B) of Public Law 89106, as amended,
750,000, to remain available until September 30,
2006 for the critical issues program, and
1,345,000 for the regional rural development
centers program and 9,000,000 for the homeland
security program authorized under section 1484 of
the National Agricultural Research, Extension,
and Teaching Act of 1977, to remain available
until September 30, 2006.
24
Public Law 108-447Consolidated Appropriations
Act, 2005

• Example Provisions
• Section 793
• Section 795
• Example Across-the-board rescissions

25
General Provisions 12 X2501 SEC. 795. There is
hereby appropriated 6,000,000, to remain
available until expended, for a grant to the
Florida Department of Citrus. Across the Board
Rescissions SEC. 122. (a) ACROSS-THE-BOARD
RESCISSIONS.There is hereby rescinded an amount
equal to 0.80 percent of (1) the budget
authority provided (or obligation limitation
imposed) for fiscal year 2005 for any
discretionary account in divisions A through J of
this Act and in any other fiscal year 2005
appropriation Act
26

• Carolann Marker
• Team Leader
• 874-9776
• Cmarker_at_fms.treas.gov
• Valeria Spinner
• Team Leader
• 874-6689
• Valeria.spinner_at_fms.treas.gov

27
FACTS II

• Rita Cronley
• Department of Treasury
• Financial Management Service

28
Data Consistency

• Validations
• Pre-edits
• Edits

29
Validations - Period of Availability

• 12 05 0115, 12 05 1502, 12 0506 1502
• In FY 2005 FACTS II will accept
• 4119 Other Appropriations Realized
• In FY 2005 FACTS II will not accept
• Beginning Balances
• 4201 Total Actual Resources Collected

30
Validations - Period of Availability12 X 1502

• FACTS II Will Accept
• - Beginning Balances
• - 4119 Other Appropriations Realized
• - 4201 Total Actual Resources Collected

31
Pre-Edits Use External Data

• SF 224 Agency Reporting
• Investments
• 12 X 5205 000 971
• SGL 1610
• Cash Held Outside Treasury
• 12 X 4085 000 921
• SGLs 1120, 1130

32
Edits

• Internal Uses ATB data
• Debits Credits
• Budgetary Resources Status
• External Uses SF 224 data the agencies
• have reported to Treasury Fund balance with
  Treasury

33
Edit 7 Fund Balance with Treasury 12 05
0115

• 4,413,235.02 Pre-closing Balance
• 4,425,616.97 SGL 1010
• 12,381.00 Difference

34
Edit 7 Fund Balance with Treasury 12 05 0115

• AGENCY ATB
• SGL 4119 5,124,000.00 dr
• SGL 4119 964,000.00 dr
• SGL 4902 80,475.30 cr
• SGL 4902 630,289.68 cr
• 5,377,235.02 4,425, 616.97
  SGL 1010
• 4,413,235.02 Treasury balance
• 964,000.00 Difference

35
Edit 6 Investments in Treasury Securities
12 X 5205.971

• Agency reported Investment Activity on the SF
  224
• 52,437,232.93
• Agency FACTS II Reporting
• 52,437,232.93
• SGL 1610

36
Edit 6 Cash Held Outside Treasury 12 X
4085.921

• Agency reported Cash Held Outside Activity
• on the SF 224
• 151,875,265.70
• Agency FACTS II Reporting
• 151,875,265.70
• SGL 1130

37
Edit 12 Outlays12 05 0115

• Agency reported Outlays on SF 224
• 710,764.98
• Agency FACTS II Reporting
• 710,764.98
• SGL 4902

38

• Rita Cronely Team Leader, FACT II / Treasury
  Combined Statement
• 202-874-9902
• Rita.Cronely_at_fms.treas.gov

39
Cash Accounting DivisionCash Analysis Branch

• Current Monthly Reporting/Reconciliation Process

Randall Claud Cash Accounting
Division Governmentwide Accounting
May 5, 2005
40
FMS-224 Statement of Transaction
The FMS-224 is used by the Department of Treasury
to receive information about the financial
conditions and operations of federal agencies.
The FMS-224 provides Treasury/FMS with monthly
reports of agency payments and collections. This
report serves as the basis of Treasurys
publications to Congress and the public regarding
federal revenues and expenditures. FMS-224
Monthly Treasury Statement the Combined
Statement
41
Statement of Transactions FMS-224
SECTION I CLASSIFY THE DISBURSEMENTS AND
COLLECTIONS.
SECTION II SEPARATES THE DISBURSEMENTS FROM THE
COLLECTIONS REPORTED IN SECTION I.
SECTION III THE ACTUAL COLLECTIONS AND DEPOSIT
ACTIVITY.
42
Deposits in Transit Process
STAR accumulates deposit information and
compares Agency reports with those of the FRB and
depositories via CASH-LINK.
FMS reports deposit information in publications
(DTS,MTS,Combined Statement).
43
When is a Deposit in Transit
Statement of Differences Generated?
An automated comparison of totals is made of
deposit data
Deposit data submitted by the agency- Line 3,
Section III on the FMS- 224 or Line 4.20 of the
FMS-1219 is compared to the data submitted Thru
the CAH-LINK system.
A Statement of Difference, FMS-6652 is generated
each accounting Month if there is a difference in
the total amount submitted on the
FMS- 224/1219/1218 with the amount submitted thru
CAH-LINK.
If the dollar amounts submitted on the FMS-224,
FMS-1219/1218 agree With the dollar amount
submitted thru CAH-LINK, a SOD/FMSS6652 Is not
generated.
A copy of the FMS-6652 and the Deposit
Ticket/Debit Voucher support listing is available
online via GOALSII/IAS.
44
Undisbursed Reconciliation Process
A comparison is performed monthly within the
Financial Management Service database, STAR. If
there is a difference between what the Agency
or Disbursing Office reported on their FMS
1219/1220 and IPAC RFC Agency Link a
Statement of Differences is generated.
45
When is a Disbursement
Statement of Differences Generated?
EIGHT-DIGIT (8) Agency Location Code
Agencies that use Regional Financial Centers
(RFCs) to issue checks (8 Digit ALCs) report
their disbursements activity monthly to
Treasury/ FMS using the FMS-224.
This activity is reported in Section I of the
FMS-224 as well as in Section II, Line 1, by
month.
The disbursing activity is also reported to
Treasury by other sources. (.i.e., RFC Agency
Link, IPAC)
Treasury accumulates on a monthly basis the total
of payments Issued on behalf of the agency by the
RFCs as well as IPAC transactions.
46
FUND BALANCE RECONCILIATION
Agency General Ledger
Agency Reporting
FMS 224/ FMS 1219/ FMS 1220
FMS 6653, 6654, 6655
Corrected Agency Reporting and/or Corrected G/L
FMS 6653,6654, 6655
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(No Transcript)
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(No Transcript)
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RECONCILIATION IS ESSENTIAL TO ENHANCING INTERNAL
CONTROLS AND IMPROVING THE INTEGRITY OF THE
FEDERAL GOVERNMENTS FINANCIAL REPORTS.
50

• Randall Claud Manager, Cash Analysis Branch
• 202-874-7752
• Randall.Claude_at_fms.treas.gov

51
Governmentwide Accounting and Reporting Modernizat
ion Project
Keith Jarboe GWA Project Governmentwide
Accounting May 05, 2005
52
Account Summary Inquiry Tool
53
Account Summary Report for 12050115
54
Expenditure Activity Report for 12050115
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Transactions Report for 12050115
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Account Summary Report for 12051502
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Expenditure Activity Report for 12051502
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Transactions Report for 12051502
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GWA Key Goals/Objectives

• Eliminate the two step classification process
• Capture the Treasury Account Symbol (TAS) and
  Business Event Type Code (BETC) at the earliest
  possible time for agency payment, collection and
  intragovernmental transactions and post directly
  to the fund balance with treasury.
• Provide timely and accurate accounting
  information
• Eliminate redundant reporting

60
How is GWA going to accomplish this?

• GWA Standard Transaction Classification
  (TAS/BETC)
• GWA Account Statement
• GWA Partial 224 (P224)

61
GWA Standard Transaction ClassificationTAS/BETC
62
TAS Definition
GWA Standard Transaction Classification

• Acronym for Treasury Account Symbol (TAS)
• The receipt, appropriation, expenditure and other
  fund account symbols and titles as assigned by
  the Department of the Treasury
• A 27-character field with 24 currently
  identified characters
• Supercedes 21 position TAS and any other
  suggested formats

63
BETC Definition
GWA Standard Transaction Classification (cont)

• Acronym for Business Event Type Code
• An 8-character code that indicates the type of
  activity being reported (e.g. receipt,
  disbursement, etc)
• BETC determines the transaction effect on the
  Treasury Account Symbols FBWT.
• BETC replaces transaction codes and standard
  sub-classes but at a more intuitive level of
  detail

64
GWA Partial 224Agency Implementation
65
Current 224 GOALS CITRIX

• Agencies report 224 thru GOALS
• Section 1 Transaction Classification
  Reclassification
• Section 2 Intragovernmental Payments
• Section 3 Collections

66
GWA Partial 224

• Web based application
• Ability to turn off sections of the P224
• Provides for reclassification capability by using
  only section I of the P224.
• GWA Reporters Phased In By
• ALC (Single Activity only IPAC Pilot)
• Source system (IPAC, Collections, etc.)
• Categories

67
GWA Partial 224 (cont.)

• GWA Reporter Categories
• 1. Intragovernmental Only
• Collections Only
• Payments Only
• Intragovernmental and Collections
• Intragovernmental and Payments
• Payments and Collections
• Full GWA Reporter Intragovernmental,
  Collections Payments

68
GWA Partial 224 (cont.)

• Example of Month-end Reporting
• ALC 1 GWA REPORTER Intragovernmental
• Transaction posted thru GWA
• DO NOT REPORT IPAC on P224
• Report Payments section II
• Report Collections section III
• Report Section I for Payments Collections
  classification ONLY
• and any reclassified transactions (incl. IPAC)
• ALC 2 NON-GWA Reporter
• Transaction posted to STAR
• Continue to use current 224
• Do NOT use P224

69

• Keith Jarboe -Senior Systems Accountant Director
  of the Financial and Budget Reports Directorate
• 202-874-7818
• Keith.Jarboe_at_fms.treas.gov

70
Checking Consistency

• Jeff Hoge
• Account System Division
• Governmentwide Accounting
• May 5, 2005

71
Checking Consistency

• Opportunities for FMS to Help Agencies Improve
  Reporting

72
Using What We Have

• FMS collects a lot of data from agencies,
  including transaction details on receipts and
  disbursements.
• FMS processes other types of transactions for
  agencies, including warrants and non-expenditure
  transactions.
• Then, FMS collects summary accounting data.

73
Using What We Have (more)

• What happens when we compare transaction details
  to accounting data?
• When is key, we dont check systematically.
• FACTS II is the exception.
• We do check consistency, and the results have
  been great.
• FACTS II does maybe a third to a half of the
  checks we could do now.

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Characteristics of Good Consistency Checks

• Analysis based on federal standards (SGL).
• Feedback must be specific.
• Feedback must be timely (preventing
  inconsistencies is better than trying to
  reconcile them)

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An Example Intra-governmentals

• FMS has problems with these.
• If what we eliminate is out of balance, whats
  left is out of balance.
• Eliminations are not an isolated problem to
  solve, but an indicator that we have general
  problems recording all transactions according to
  the federal standard.

76
NET Document
77
NET Detail
78
Account Statement Detail
79
What To Do With This Analysis

• For several eliminations categories that flow
  through the NET process, FMS can summarize the
  transactions by quarter.
• We could then compare IRAS reports to the actual
  numbers in the central accounting system rather
  than the other guys numbers.
• Stop reconciling 2 possibly bad numbers, and
  start comparing to the right number.

80
Another Example CIHO
81
CIHO Characteristics

• Agencies certify numbers for 4th quarter FACTS II
  submissions.
• FACTS II compares submissions to 224 reporting.
• Add CIHO amounts for deposit funds and other
  non-budget funds.
• Total should equal agency reporting on Balance
  Sheet. Several did not.

82
Conclusions

• FMS already collects most of the data we need to
  improve consistency of reporting.
• By incorporating the type of analysis we just did
  into a set of automated tools we can greatly
  increase the range of reporting we cover,
  expanding our FACTS II success.
• By next summer (2006) well be looking to do this
  with NET transactions.

83

• Jeff Hoge -Director of the Accounting Systems
  Division
• 874-9776
• Jeffrey.Hoge_at_fms.treas.gov

84
FMS - Future Reporting Requirements

• Dave Rebich
• Financial Report Division
• Governmentwide Accounting
• May 5, 2005

85
FMS - Future Reporting Requirements

• Quarterly ATB Submission
• Proprietary Accounts
• Budgetary Accounts
• Quarterly GFRS Closing Package
• Principle Statements only

86
Reporting Requirements Benefits

• Streamlined Reporting to Treasury
• Standardized data (USSGL)
• Improved Editing Capability
• More meaningful and timely feedback to agencies
• Broader analysis and reporting database with
  GWAMP data

87
Current Structure
USSGL Guidance
FACTS II
FACTS I
IRAS
IFCS
88
Future Structure
USSGL Database
FACTS
GFRS
89
GFRS 2004 Successes

• Timely Reporting GFRS FACTS I
• On-time production of the FR
• Extract of GFRS data to Excel format
• Development of GFRS consolidation templates in
  Excel
• Agency analysis and adjustments
• Processed responded to agency comments

90
GFRS 2005 Outlook

• Additional systems edits and features
• Training
• Targeted Areas
• General
• Agency Communication
• Specific and general feedback
• Agency feedback to FMS
• GFRS Development concentrated on FMS processes

91

• David Rebich -Director of the Financial and
  Budget Reports Directorate
• 202-874-9870
• David.Rebich_at_fms.treas.gov