Fund Code Analysis: Clean-up Strategy for Effective Financial Management

1. Fund Code Analysis By Bob Hammond Chair, Finance Process Review Committee May 14, 2014

2. Outline • Purpose – Informational Briefing For Fund Code Clean-up • Unused Fund Codes • Estimating Fund Codes Needed for SFIS Fund Code Application • FPRC Chair Concept Going Forward • FCA /FCB Proposed Edit • Action Items • Questions

3. Unused Fund Codes • The first spreadsheet is unused fund codes for the last three years. This was derived by the absence of an initiating requisition transaction Doc Id: A0, AF, AM, AT, A3 and A4: • a. A fund code for a service was considered to be "not used" if has not been used within the Signal Code group ('A','B','J','K' and 'L','C'). • b. This spreadsheet is informational for you to consider which fund codes may be deleted. You should also consider deleting some fund codes with a single FY chargeable if that FY is more than 5 years past the period of obligation (e. g. single year appropriation with FY chargeable of 4, 5, 6 or 7). You would be required to pay bills for these from current FY funds.

4. Estimating Fund Codes • 2. The second spreadsheet contains your fund codes with a column for you to enter the # of years of obligation authority for each of your fund codes. This will assist in estimating the number of fund codes needed, assuming you get the same main account/limit subhead each FY going forward and need to have new fund codes for the beginning and ending periods of availability. • a. The concept is that if you have a single year appropriation, you may use the # or * to pick up the FY of the requisition (#) or FY of the bill (*) to determine beginning and ending period of availability. For these you will only need one fund code, as you can reuse it for every FY. • b. No year accounts (e.g. working capital) are recurring and don’t need new FC. • c. Fund codes with a single FY in the FY chargeable would not be available for reuse for 5 years after the ending period of availability, whether single year of multi-year appropriation. • d. Multi-year appropriations with a # or * are a challenge. You will need a new fund code for each new period of availability and you will not be able to reuse the fund code again for 5 years. So, if you have a three year appropriation, you will need 8 fund codes. One for each three year period of availability plus five years before you can reuse it. • e. Please see the example and instructions in Tab 1.

5. Concept Going Forward • The concept going forward is to start FY 2014 with new fund codes for any period of availability for including FY 2014. All requistions going forward would properly reflect the beginning and ending period of availability for the new Treasury TAS that the seller is required to have for his Interfund bills. • We would flag existing legacy multi-year appropriations on the fund code table, so that DLA Transaction Services and all trading partners would know that only the FY chargeable is available from the fund code table. DLMS logistics bills, however, would be able to carry the beginning and ending period of availability for systems that are DLMS capable. • By the end of FY 2014 the vast majority of items previously requisitioned with legacy fund code would have been delivered and billed. Only back ordered items would remain. • One option might be to modifying backordered requisitions remaining late in FY 2014 that have legacy fund codes to provide new fund codes with beginning and ending period of availability. Other options will need to be evaluated.

6. Concept Going Forward • 5. FPRC Chair intent is to have the fund code database available (with all current and newly added discrete SLOA fields accommodated by PDC 1043) for near real time system to system update with all trading partners. This will obviate the need for manual entry of fund codes from the authoritative source into your using systems. • 6. Implementation will require close coordination with your Finance Process Review Committee representatives (cc on this email) to ensure that units are aware of fund code changes and that the correct fund codes are used. • 7. We are planning a Finance Process Review Committee Meeting near term to review PDC 1043; however, separate meetings may be required only on this issue.

7. FPRC Chair Proposed FCA/FCB Edit • Proposed edit for the Web fund code and for the database to enforce one to one match between the FCA (Appendix 1.01 - Fund Code to Fund Account Conversion Table) and FCB ( Appendix 1.02 - Fund Code to Billed Office DoDAAC) for Signal Code group C/L. • 1. FCA but no FCB. With the exception of default fund codes, there should never be an FCA without an FCB record, because there is nowhere to route the bill. You might expect that these would show up on the list of unused fund codes that I sent earlier and they largely do. I aligned the USMC unused with the FCA but no FCB so that you can see the result. You should consider mismatches for deletion. Default appropriations will need to be addressed at a later time. • 2. FCB but no FCA. I would interpret these as non-Interfund billing. Since Signal Code groups are separate in the table, what would be the impact of adding the fund codes as "Non-Interfund"?

8. Action Items • 1. COB 16 May 2013 - Evaluate unused fund codes and estimate number of fund codes needed for SLOA/SFIS fund code table. • 2. COB 21 May 2013 - Initial thoughts on proposed FCA/FCB edit

9. Questions?