Business Process Standardization - Reimbursables

1. Business Process Standardization - Reimbursables Presented byDianne Copeland

2. FMLoB Vision and Goals

3. FMLOB Vision Framework

4. Common Government-wide Accounting Classification (CGAC) Goal: Develop a common accounting classification structure, including an applicable set of definitions, that all Federal agencies’ new financial management systems use. The common accounting code structure will accommodate both standard government-wide and critical agency-mission-specific accounting data Approach: Obtain concurrence on definition and format for every element Initiated efforts to align data with multiple sources, particularly to align a number of different sources for agency codes Encouraged central agencies to begin eliminating disparities within their systems

5. Business Process Standardization Goal: Develop a standard set of business practices for core financial management functions (funds control, payables management, receivables management, reporting, reimbursables) to be adopted by all federal agencies. The document/model will include: Sequenced activities for core business processes Data objects participating in a business activity Relationships among the objects as they exist in the actual business activities Data elements and definitions used by these objects Business rules governing these objects

6. Reimbursable Standard BusinessProcess Reimbursable Definition (for standard business process development) : Reimbursements are sums received as payment or advance payment for goods or services furnished to another Federal government account. If authorized by law, these sums are credited directly to specific appropriation and fund accounts. These amounts are deducted from the total obligations incurred (and outlays) in determining net obligations (and outlays) for such accounts. Reimbursements are offsetting collections. Treasury serves as the banker for reimbursable transactions between appropriations.

7. Reimbursable Standard BusinessProcess Not included: Fiduciary Transactions Bureau of the Public Debt (BPD) investments and borrowings; Federal Financing Bank (FFB) borrowings; Department of Labor (DOL) Federal Employee Compensation Act (FECA) transactions; and Office of Personnel Management (OPM) employee benefit transactions Transfers Non-expenditure transfers Transfer of authority to obligate Transfers to carry out the purpose of the receiving account, for example to shift resources from one purpose to another Transfers to carry out the purpose of the parent account Transfers via SF-1151

8. Reimbursable Standard BusinessProcess Not included: Borrowing Authority Borrowing authority is a type of budget authority that permits obligations and outlays to be financed by borrowing, usually from Treasury Typically provided in laws that authorizes business-like operations and require the borrowing to be repaid, with interest, out of the business proceeds

9. Reimbursable Standard BusinessProcess Development Approach FSIO Core/planning/strawman team Focus Group Selected reps from agencies, Buy-Sell, OMB and Treasury Additional specific SME resources as required Weekly half-day meetings beginning June 3 Drafting approx one sub-process every 2 weeks Working Group Wider group – volunteer Agency representatives Review meeting and period of formal comment of sub-processes produced by Focus Group Expected date of first Working Group meeting: July 8, 2008

10. Reimbursable Standard BusinessProcess Focus Group Participants DOD IRS OMB DOI OPM DOJ Treasury FMS EDUCATION USDA FSIO VA GSA

11. Reimbursable Standard BusinessProcess Reimbursable Authority Apportionment Request; Continuing Resolution Establish Inter-Agency Agreement Terms & Conditions: Transfer of Funds, Billing requirements, Performance, Transfer of Property Sign Inter-Agency Agreement including Buyer/Seller activities; Policy for recording Advances To/From Others; Unearned Reimbursements

12. Reimbursable Standard BusinessProcess Place, Accept, Receipt of Order including Buyer/Seller activities; Policy and recording Unfilled Customer Orders Work In Progress including Buyer/Seller activities Standard factors for labor costs methodology (direct, indirect) Performance criteria defined in IAA Record and Manage Receivable including Buyer/Seller activities; Policy for revenue & expense recognition (including accruals)

13. Reimbursable Standard BusinessProcess Manage Receivable including Buyer/Seller activities Manage Billing Determine standard billing requirements (timing, frequency) Collections including Buyer/Seller activities IPAC Collection of Receipts (including offset) Return of Goods & Services Remediation Contingent Liabilities

14. Reimbursable Standard BusinessProcess Transfer of Property Accounting Policy and Recording of transferred property (inventory, capitalization, depreciation) IAA Closeout

15. Document Library and Points of Contact FSIO and FMLoB documents on the web site www.fsio.gov Questions: fsio@gsa.gov FSIO main number 202.219.0526 Dianne E. Copeland FSIO DirectorGeneral Services AdministrationOffice: 202-219-0550    Fax: 202 219-0549 E-Mail: dianne.copeland@gsa.gov