Managerial Accounting Division

1. Managerial Accounting Division Internal Training Program Joint Reviews April 8, 2004

2. Overview • Joint Review Requirement • Joint Review Process • Joint Review Issues • References • Conclusion

3. Joint Review Requirement • DFAS-IN Regulation 37-1, Chapter 2708 • DODFMR Volume 3, Chapter 8 Paragraph 0804

4. Joint Review Requirement DOD requires that commitment and obligation transactions recorded in the official accounting systems be reviewed at least three times each fiscal year.

5. Joint Review Requirement • ACCURACY • COMPLETENESS • TIMELINESS

6. Joint Review Requirement • Phase I – October to January Must be completed by Jan 31st • Phase II – February to May Must be completed by May 31st • Phase III – June to September Must be completed by September 30th

7. Joint Review Requirement • ASA-FM JRP (Joint Review Reconciliation Program) • Certification statements • Tri-annual VTC – to discuss JRP Goals

8. Joint Review Process • Scheduling • Queries/Reports • Documentation • Follow Up • Conducting • Completion (Copies/Review/Filing)

9. Dbcas & Funding Review • AVK 52 – Fund Control and Status by Program Director • Status of funds (dbCAS) • Status of obligations unequal to commitments • Status of obligations without commitments • Status of commitments without obligations

10. Obligation Review - Issues • ULOS greater than 50K • Canceling Appropriations • Fourth Expired Year • No Disbursement Activity–2 YR/1 YR • Aged Travel Unliquidated Obligations

11. (1) ULOs greater than 50K IMPORTANCE: Unliquidated Obligations greater than 50K may or may not be valid. The PD should be able to know when a disbursement will hit. If a disbursement will not hit, then the line should be cleared in order to free up prior year funds for other priorities in OA22. QUERY: ED MADNSFAS

12. (2) Canceling Appropriations IMPORTANCE: Canceling Appropriations lines are a high priority in accordance with ASA-FM and should be cleared if there is no justifiable documentation showing that a disbursement will hit before 30 Sep 04. PDs should be urged to ensure all disbursements hit before 30 Sep 04. Disbursements hitting after 30 Sep 04 will affect the PD’s current year funds. QUERY: ED MADCLOSINGSA Closing account for FY04: FY97 – 2035, 0350, FY98-2040, FY99-0100,2020,2080 ASA-FM Goal: Reduce to zero unliquidated obligations by September 30, 2004

13. (3) Fourth Expired IMPORTANCE: 4th Expired Appropriations lines are a high priority in accordance with ASA-FM and should be cleared if there is no justifiable documentation showing that a disbursement will hit before 30 Sep 04. QUERY: ED MADCLOSINGAS Fourth Expired accounts for FY04: FY98-2035,0350, FY98-2040, FY00-0100,2020,2080 ASA-FM Goal: Using September 30, 2003 baseline, reduce unliquidated obligations in the 4th expired year by 50 percent.

14. (4) Disbursement No Activity – 2YRs/1 YR IMPORTANCE: Unliquidated Obligations lines without disbursements hitting for over two years indicate that either the obligation is no longer valid or the PD needs to research and ensure all applicable disbursements have hit or will hit. QUERY: ED MADULO2YRJR2SA (2 YR) ED MADULO1YRSM1 (1 YR)

15. (5) Aged Travel ULOs IMPORTANCE: Per AR 37-1, Ch 10, travelers must submit a travel voucher within fifteen days after completion of travel. Based on the regulation, travel obligations should be either liquidated or deobligated by the end of the fiscal year except for unusual circumstances or for PCS travel. PD POCs should ensure all travel vouchers have been submitted and paid within a timely manner and then initiate actions to liquidate any remaining ULOs in order to free up prior year funds for other priorities in OA22. QUERY: MADNSFAS

16. Obligation Review - Issues (6) NULOs • Credit Disbursements • Credit Obligations • Year-end MODs • APC Review • Interest Penalties

17. (6) NULOs IMPORTANCE: NULOs represent disbursements greater than obligations for a specific line that may be the result of a need for prior year fund request for additional funds to match the disbursements. PDs should work to either match the disbursements with the correct line or to request additional prior year funds. QUERY: MADNULO REQUESTING PRIOR YEAR FUND

18. (7) MODs IMPORTANCE: Miscellaneous Obligation Documents (MODs) should only be used as a temporary obligation at year-end or end of months when an obligating document is known but as of yet not been received (i.e., IMPAC statements do not come until the following month, but the amount should be known before the statement is received). Because a MOD is a temporary obligation, they should be reversed as soon as the valid obligating document is received. It is important that all MODs be reversed as soon as possible or valid justification for why an obligating document has not been received. QUERY: MADMODS-SDM

19. (8) Credit Disbursements IMPORTANCE: Credit disbursements indicate either funds were returned or the more likely ease that an abnormal balance exists. This is a high priority item that should be corrected as soon as possible. QUERY: MADCREDITAS

20. (9) Credit Obligations IMPORTANCE: Credit obligations indicate an abnormal balance and are considered a high priority item. Credit obligations should be addressed as soon a possible. QUERY: MADCREDIT

21. (10) APC Review IMPORTANCE: APCs should be reviewed to make sure that they are established in accordance with DFAS-37-100 FY04. QUERY: MAD APC

22. (11) Interest Penalties IMPORTANCE: Interest penalties have high visibility within ASA-FM. QUERY: ED MAD-INTERESTPEN ASA-FM GOAL: Reduce interest penalty payments DFAS Pre-val site: https://dfas4dod.dfas.mil/centers/dfasin/dno/vpdpi.htm Select Site ID: RA

23. PROPER INVOICE The following information is required to constitute a proper invoice: • Name/address of vendor • Invoice date • Government contract number, or other authorization for delivery of goods or services • Vendor invoice number, account number, and/or other identifying number agreed to by contract • Description, price, quantity of goods or services • Shipping and payment terms • Taxpayer Identifying Number (TIN) • Banking information • Contact name, title, telephone number (where practicable) • Other substantiating documentation or information required by contract

24. PROPER RECEIVING REPORT The following information is required to constitute a proper receiving report: Name of vendor • Contract or other authorization number • Description of goods or services • Quantities received, if applicable • Date(s) goods were received or services rendered • Signature (or electronic alternative when supported by appropriate internal controls), printed name, telephone number, mailing address of the receiving official, and any additional information required by the agency • Receipt date • Acceptance date

26. References • DFAS-IN Regulation 37-1, Chapter 2708 • DFAS-IN Manual 37-100-04 (Standard Document Number) • DODFMR Volume 3, Chapter 8 Paragraph 0804 • DFAS: Abbreviations and Acronyms • http://www.dfas.mil/library/acronyms.htm • DFAS-IN Obligation Matrix: DFAS-IN Regulation 37-1, Chapter 8 Table 8-8

27. Conclusion Joint Reviews are required but it is up to us to ensure that they are meaningful. Treat the Joint Reviews as an opportunity to resolve problems and establish a strong foundation for addressing any problems that may occur in the future.