Agenda

1. First Things First – The ReconciliationAGA GWA WorkshopApril 21, 2004Panel:John Scornaienchi, Grant ThorntonGreg Teets, Federal Emergency Management AgencyChanning Monti, Checkfree Corporation

2. Agenda • Foundation for PMA • Reconciliation Best Practices • Key Reconciliations • Technology Solution • Panel Discussion

3. Is this how you feel when you think reconciliation?

4. Improved Financial Performance "Without accurate and timely financial information, it is not possible to accomplish the President's agenda to secure the best performance and highest measure of accountability for the American people" PMA – FY 2002

5. Sustained Improvement in Financial Management "The requirement for timely, accurate, and useful financial and performance management information is greater than ever as the nation faces major long-term fiscal challenges that will require tough choices in setting priorities and linking resources to results." GAO – FY 2003 Government Financial Statements Report

6. What are some of the issues? Problems Reported by Auditors for Fiscal Years 2000 through 2002

7. Establish and adhere to cutoffs Reconcile and analyze on a monthly basis Eliminate post closing adjustments Close the books one time Use SGL and FACTS attributes to full extent Keep global view on transactions – understand dependencies and relationships Reconciliation Best Practices

8. Reconciliation Challenges • Standard and repeatable procedures • Effective software tools • Analytical skills and resources • Adherence to established internal controls

9. Key Reconciliations – FBWT - FEMA • Types of appropriations • Annual • Multi-year • No-year • Working Capital • Revolving • Credit Reform • Trust • Transaction volumes • Over 5 million per year • Over 58 Treasury symbols

10. Key Reconciliations – FBWT - FEMA • Key Ingredients • Treasury • Agency • Challenges

11. Treasury Source Data Input Agency Source Data Input • Interface Transactions: • Deposit Ticket (SF215) and Debit Voucher (SF5515) data and similar agency approved forms provided through CA$HLINK • Disbursing Office Transaction data, (check, ACH, payments, etc.) provided through GOALS. • On-Line Payment and Collection (OPAC) System data provided through GOALS. • Non-Expenditure transaction data (appropriation warrants, adjustment warrant & appropriation transfers (SF1151) provided through GOALS. • USDO data provided by the Department of State in form of a Voucher Audit Detail Reports (VADRs). • Direct Data Entry Transactions: • Courtesy payment and receipt transactions reported by other agencies, e.g., NFC payroll transactions. • Agency Journal Voucher transaction data. CompareProcess • Interface Transactions: • Standard General Ledger Account 1010 ,Fund Balance with Treasury ReconciliationOutput Reconciling Differences • Timing Differences – NO Adjustment RequiredAccounting Month Posting Differences – Form 6652 Statement of Difference items for Deposits & Disbursements. • Posting Differences – Adjustment Required • Variances between amounts posted to Treasury Forms 6653 Appropriation & Fund Accounts and 6655 Receipt Accounts from agency Statements of Transactions and transactions posted to Agency SGL 1010 Account – Statement of Transaction Adjustments. • Variances between deposit and disbursing transaction confirmation month reported by agencies on SF224, Statement of Transactions and depositary & disbursing offices Transcripts and Statements of Accountability. Key Reconciliations – FBWT

12. Treasury Financial System Key Reconciliations – FBWT Technical Architecture Oracle Database Standard Reports Extract OLAP/Ad-hoc Transformation Financial Extract User Applications

13. Key Reconciliations – Other • UDO and AP • Intergovernmental Activity • Suspense

14. Panel Discussion and Questions