DoD Component Program Managers Breakout Session

1. DoD Component Program Managers Breakout Session Office of the Under Secretary of Defense for Acquisition and SustainmentDefense Pricing and Contracting Contracting eBusiness (OUSD(A&S)/DPC/CeB) Tuesday, 16 July 2019 2:00 pm – 3:10 pm EST 2019 GSA SmartPay Training Forum Website: http://www.acq.osd.mil/dpap/ No Recording or Videotaping Authorized

2. Agenda • DPC Updates and Related Activities • U.S. Bank Updates • Mastercard (MC) / MC Insights on Demand (IOD) Updates • Expert Panel • Navy GPC Program Monthly and Semi-Annual Review Process • Army Joint Appointment Module (JAM) • Questions and Answers

3. DPC Updates and Related Activities Configuration Items—Prioritization

4. U.S. Bank Updates • Placeholder for updates and information

5. MC/MC IOD Updates • Placeholder for updates and information

6. Expert Panel • Navy: Catherine Quarles (NAVSEA), Theresa Villanueva (BUMED), Mary Jo Baker (NAVFAC), and Kathy Boone (NAVSEA) • Army: Erin KirkPatrick

7. Department of Navy Government Purchase Card Program Monthly and Semi-Annual Review Process Presented by Catherine Quarles Naval Sea Systems Command

8. Introduction/Purpose Catherine Quarles A/OPC with 12 years of experience Naval Surface Warfare Center, Panama City DON Semi-annual Report Program Audit Tool Processes Insights on Demand

9. Agenda Basics Background Benefits of a Data Mining Tool DON/NAVSEA Monthly Review Process DON Semi-Annual Review Process Lessons Learned Summary

10. Basics • Our first Semi-annual Report with Insights on Demand – hasn’t happened yet • Our final Semi-annual Report with Program Audit Tool closed December 2018 • Terminology • CH – Cardholder • ABO – Approving/Billing Officer • A/OPC – Agency/Organization Program Coordinator • OA/OPC – Oversight AOPC • HA/CO – Head of Activity/ Commanding Officer • CPM – Component Program Manager • SAR – Semi-annual Report • PAT – DON Program Audit Tool • IoD – Insights on Demand

11. Background • The Naval Sea Systems Command tested PAT as pilot program in September 2007. All DON activities to used PAT continuously from 2009-2019. • DoD developed PCOLS in that timeframe; DON continued with PAT, which provided an advanced level of oversight. • “DoD Reporting of Charge Card Misuse to OMB” noted the effectiveness of DON’s Program Audit Tool (DODIG-02018-101 dated 3 April 2018) • Based on DON’s proven success, DoD intends to apply and expand PAT methodology in future releases of Insights On Demand (IoD).

12. Benefits of PAT Methodology • Combines artificial intelligence and data mining technology to analyze and filter bank data; documents GPC program officials’ reviews of potentially questionable transactions; • Direct interface with the bank provides timely program statistics for effective oversight and risk management.

13. Benefits of PAT Methodology • Systematically provide consistent, accurate summary program statistics on demand, including; Data source: Bank • Quantity of transactions • Total dollars spent • Inactive accounts • Credit exposure risk • Span of control Data Source: PAT • Quantity of assessments Data Source: A/OPC Reporting • Number of people/GPC role* • Required training status* • Categorized delinquencies *In the future, Insights on Demand and PIEE-JAM will be the sources for these data points

14. Benefits of PAT Methodology • Enable virtually automatic semi-annual report preparation using data captured during GPC program official monthly reviews; • Generate consistent and accurate OMB quarterly reporting of statistical data with minimal manual intervention; and • Provide reasonable assurance to OA/OPCs and DON CPM that the management internal controls effectively mitigate program risk.

15. DON/NAVSEAMonthly Review Process CH and ABO Timeline • NAVSEA CHs have five (5) business days after the close of the billing cycle to complete reconciliation and submit their monthly reconciliation package to the ABO. • ABOs review monthly reconciliation packages and PAT cases within 10 business days after the close of the billing cycle. A/OPCs may grant an extension as necessary. • ABOs have the ability to review selected transactions/cases as soon as they populate PAT and they have complete supporting documentation from the CH.

16. DON/NAVSEAMonthly Review Process AOPC Timelines • A/OPCs complete monthly reconciliation package and PAT reviews and submit the monthly CO Management Report to next level OA/OPC within 30 days of the close of cycle. Additionally, A/OPCs are highly encouraged to run other audit tool reports to effectively oversee and manage the program • Each OA/OPC completes review within 10 days • Final submission of PAT to CPM within 50 days of the close of cycle

17. DON/NAVSEAMonthly Review Process A/OPC - other considerations: • A/OPCs wait for monthly reconciliation packages to complete the review in order to validate the information submitted by the ABO. On occasion, it is necessary to reject a review back to the ABO for correction. • At the discretion of the local HA/CO, A/OPCs may provide written or in-person program briefs on a monthly, quarterly, or as needed basis. • BONUS: The monthly and semi-annual reports may provide supporting documentation for other auditing and reporting requirements.

18. DON Semi-annual Review (SAR) Purpose • DON’s SAR demonstrates adherence to internal management controls and ensures HA/CO involvement in each activity’s GPC Program. • The SAR is a single report that is an aggregate of the activity’s past six (6) months of transactional/case and monthly reviews. This report is created by the A/OPC using reporting functions in PAT. Benefits • SAR reporting is super easy and painless as long as GPC participants are: • Consistently and accurately completing their monthly reviews and • Validating and reporting accurate monthly infraction and statistical data (e.g. number of participants, training status)

19. DON SAR Process • DON distributes a Purchase Card Administrative Notice (PCAN), announcing the due dates for each stage of the SAR submission. • A/OPCs use PAT to automatically consolidate the required data by running a CO Management Report, Actions and Infractions Report, and Deployed Status Report for the six-month period • The PAT Deployed Status Report confirms completion of all transactions previously deferred/deployed during the reporting period.

20. DON SAR Process • DON’s SAR process also utilizes a manually-created auxiliary spreadsheet to report data the bank system does not capture (e.g. hierarchy summary, contingency procurements, internal control weaknesses identified during the reporting period). IoD Notes: • The SAR report names in IoD are HA Report and Actions and Findings Report. • Future IoD enhancements and the pending data interchange between Joint Appointment Module (JAM), US Bank, and IoD will replace the need for a manual auxiliary spreadsheet. These enhancements will also standardize DoD program management and oversight per GAO Standards for Internal Controls in the Federal Government as required in DoD Charge Card Guidebook.

21. DON SAR Process A/OPC Actions: • Briefs their HA/CO on the SAR results, as evidenced by the PAT reports and auxiliary spreadsheet, • Obtains the HA/CO signature on the CO Management Report and submits the signed report and auxiliary spreadsheet to the next level OA/OPCs via email.

22. DON SAR Process OA/OPC Actions (determined by oversight level): • Uses PAT and auxiliary spreadsheet to review, consolidate and submit a SAR to the next level OA/OPC via email. • Uses PAT to run consolidated reports for all activities under the component. • Briefs the HA/CO on the reports and obtains signature. • Emails consolidated CO Management Report and auxiliary worksheet to DON chain of command by 15 June and 15 December each year.

23. DON SAR Lessons Learned • A/OPCs should provide clear and concise IoD Training so GPC program officials can confidently, consistently, and accurately complete timely case reviews. Adequate training will reduce the need for rejections. • Data mining does not identify all infractions. GPC program officials must continue to review transaction-supporting documentation and manually add “substantiated infractions” to IoD.

24. DON SAR Lessons Learned • An alternate ABO shall be assigned to each managing account to ensure timely submissions and avoid the need for deferments. • GPC program officials may want to establish local procedures with CHs to facilitate the review of cases throughout the billing cycle to avoid the crunch at the end of each billing cycle. • DON implemented strict span of control policy • ABO will not oversee more than seven CHs • A/OPC will not oversee more than 300 CHs and ABO accounts

25. Summary • The data mining and artificial intelligence methodology used in IoD are effective tools to assist A/OPCs in the efficient oversight and streamlined reporting of the GPC Program. • DON is looking forward to future IoD enhancements that will allow IoD to emulate and potentially surpass the functionality provided by PAT. • It’s going to be awhile before we have smooth sailing, and it is evident that DoD’s plans of integrating IoD with PIEE-JAM and WAWF with US Bank’s Access Online is well underway, so...hang on tight!

26. Joint Appointment Module Ms. Erin KirkPatrick, U.S. Army No Recording or Videotaping Authorized

27. Procurement Integrated Enterprise Environment Joint Appointment Module (JAM)

28. Challenges Appointment Completion Roadblocks • Certificate Issues (x 509 Non-Repudiation Error) • JAVA Issues • Previously Established Accounts (Disabled or Archived) • Supervisor Approvals • Billing Officials - Existing Accounts Under Different DoDAAC (Example: COR role) • DoDAAC Structure Issues • Approving Authority (AA) for DD 577s • Communication

29. Technical Solutions Overcoming Appointment Roadblocks • CAC Authentication (Most IMPORTANT) • Verify DODAAC Structure (An Oversight AOPC Must Be Able to See All A/OPCs in JAM) • Current Users: Ensure Home Location DODAAC Is Correct • Approving Authority (AA): Get Resource Management Involved • Use the WBT Module (Educate Yourself & Your Workforce)

30. Change Management Solutions JAM Appointment Success • Initiative and Persistence Are the Key • You Set the PACE • Communicate with Stakeholders - GAMs/AOPCs/RMs/BOs/CHs • Use a Phased Approach

31. Questions and Answers Please feel free to use this time to ask questions