Perform Reimbursable Accounting - PowerPoint Presentation

Slide1

Perform Reimbursable Accounting

U.S. ARMY SOLDIER SUPPORT INSTITUTE

NONCOMMISSIONED OFFICER ACADEMYSlide2

Terminal Learning Objective

Action:

Perform Reimbursable Accounting

Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercise, personal experience, handouts, and discussion.

Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:Examine the Reimbursable Decision matrix and discuss the Reimbursable types.

Communicate the Work Breakdown Structure Process.

Review SF 1080 and SF 1081 for accuracy and completeness.Analyze the Reimbursement Accounts

.Slide3

GFEBS Reimbursable Decision Matrix

Will requesting activity’s

funds be cited on

original

Will requesting activity’s

funds be cited on

original

Automatic:

Create WBS using “REIM” Funded Program Type and Automatic Fund

(i.e. 2Ø2Ø1ØA**)

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

Automatic:

Create WBS using “REIM” Funded Program Type and Automatic Fund

(i.e. 2Ø2Ø1ØA**)

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

Direct Charge:

Create Direct Charge WBS using “DRCH” Funded Program Type and Direct Fund (i.e. 2Ø2Ø1ØD**)

Requestor inputs FMBB transaction to fund WBS.

Direct Cite

:

Create WBS using “GENR” Funded Program Type “ZCITEZTFO” Fund

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

NO

YES

YES

YES

Start

NO

NO

Is requesting activity

funded through

GFEBS?Slide4

Funded Reimbursable Authority (FRA)

LOA Example: 072510F17 (Army Family Housing)

Stipulates a

specific dollar amount of Reimbursable work that can

be performed. Used for non-mission activities.

Quarterly amount not immediately available

for obligation upon receipt of allotment. They are held in reserve until the revenue producing activities place orders.Controlled ceiling set by ACOM

with amounts controlled by quarterly limits. Once the dollar amount has been reached, the performing organization cannot create a sales order without requesting an increase in the amount. Once this limit has been reached, the performing organization cannot create sales orders without requesting an increase in the amount specified on the funding document.

Funded Reimbursable Authority (FRA)

Foreign Military SalesDamage to Govt. propertyTDY- Non-Mission SupportSlide5

LOA Example: 202010D17 (Operation and Maintenance, Army)

Specific Dollar Amount

for Mission Activities and Base Operations, Quarterly Amount

Immediately Available for Obligation Upon Receipt of the Allotment,

Controlled by Installation.

Direct Obligation Authority (DOA)Slide6

LOA Example: 202010AXX (Funds do not expire)

No Specific Dollar Amount

, Temporarily finance support to individuals or non-mission activities,

Not Immediately Available for Obligation Upon Receipt of the Allotment (Obligation Authority “Generated” Based on Receipt of Order),

Controlled by Installation level and gives the performing organization the right to accept sales orders, with no limits on the maximum amount of work that can be provided.ARA orders are used when the Requesting Agency must pay the Performing Agency the actual costs of the goods or services provided. The Performing Agency will invoice/bill the requesting agency for reimbursement after goods or services have been performed. (equivalent of accepting a MIPR as Category I.)

Automatic Reimbursement Authority (ARA)

FTX

Maintenance Support

Cash Laundry SalesSlide7

Stages of Reimbursement Accounting

Authority

Received -

Provides the funding authority.

Orders Received - Agreement between the requester and the performer. Earned

Reimbursement - Performer provides the good/service to the requester.

Collection - Requester pays the performer for the good/service. Slide8

SITUATION

ARMY (Requestor) requests support from the NAVY SEABEES (Performer) to construct 100 Containerized Housing Units (CHU’s) at Ft. Campbell, KY.

Army (Requester) initiates a Military Interdepartmental Purchase Requisition via ME51N Purchase RequisitionSlide9

Ordering Procedures

An order must be created for the desired goods or services. A Purchase

Requisition (Outbound MIPR) will be created in GFEBS utilizing the DD Form

448 and DD Form 448-2. Regardless of the form used, all orders must bedocumented. At a minimum the order must include the following:

Certification of availability for purpose: Economy ActA description of the goods or services being orderedDelivery requirements

A fund citation (either direct or automatic)A payment provision. (Provide billing instruction and information)Duration of the agreementDollar limits and any authority to exceed applicable limits without specific approval from the ordering activity. Slide10

Legend

GFEBS

Operation

Non-GFEBS

Operation

Create Outbound

MIPR

Enter PR

information

Change SRN on

PR (ME52N) Print for records ZSSC_Print_PRME51N / ME52N

PR Processor

Approve/Certify

PR

L1/L4 PR

Generates DD448

Via t-code

ZSSC_DD448

Requestor Emails

doc’s to Executing

Agency

ME54N / DD 448

Executing Agency

Accepts, Signs,

and Returns DD

448-2 Acceptance

DD 448-2

RM Shop

L5 Certification

Budget Analyst

In the RM shop

Initiates the L5

certification/

release funds

ME54N

PO Processor

RM Shop

Direct-Create

manual PO

(ME21N)

A-PO

Automatically

created

PO Processor

MIPR Process FlowSlide11

Due to the increased OPTEMPO in

Training Rotations at Ft Campbell, KY., the decision is made to replace the tents at

FOB East and West with permanent Chews.

The Navy Construction Engineers are contacted and agree to the project.

Create Purchase Requisition

It all begins with a need

1

2

Requestor Creates a Purchase Requisition (ME51N) with Document type ‘Outbound MIPR’. Alerts Approver when complete.

3

4

Approver (Supervisor) receives PR via workflow or a simple email / phone to view and approve its content via ME53N. Sends to CertifierSlide12

NOTE:

A copy of DD 448 will be filed at the requestors location for auditable purposes. Another copy will then be sent to the performers location for approval

Purchase Requisition receives L1 /L4

approve / certify from supervisor / BO via ME54N (Cert. can happen now or later)

Approved DD 448 is generated and then printed via ZSSC_448

L1 Approved

ME54N- L1 Approve L4 Certify Outbound MIPR

1

2

Once approved, the

Requestor

mails / emails documentation to Performer for approval request 3Slide13

Performer receives the

DD 448/448-2

Performer sends accepted

DD 448-2 MIPR to requestor

Performer

Approves

MIPR and Returns 448-2

12

Requestor

PerformerSlide14

Requestor then receives the DD 448-2 MIPR acceptance, Issues the L5

Acceptance

In the event that the PR was built unfunded (u), The RM shop will now add the

LOA when the funds are available and confirmed (L4)

ME54N- Initiate

L5 Approve / L4 Certify PR

1

2

L5 Accepted

L1 Approved

L4 Certified

Under the ‘Item Overview’- ‘Account Assignment’ tab, Input the following fields:G/L ledger- (should auto-fill)

Cost center

Fund

Functional Area

Funds Center –

Click

‘Save’Slide15

LSA #1 Check on Learning (Pt1)

Q1

:

This Reimbursable Type has an LOA that looks similar to this: 202010D17?

Q2: This Agreement is used when the Requesting Agency must pay the Performing Agency the actual costs of the goods or services provided.

Slide16

LSA #1 Check on Learning (Pt2)

Q1

:

T/F: A description of the service procured and duration of the MIPR agreement are just a few of the required items needed on the Purchase Requisition

Q2: At a

minimum, the three levels needed in GFEBS to successfully execute a MIPR / acceptance are;

a. L1, L2, L3

b. L1, L4, L5

c

. L1, L4, L8 Slide17

LSA #1 SummarySlide18

Work Breakdown Structure ProcessSlide19

Work Breakdown Structure (WBS) Elements

The Program/Project WBS is the structure that encompasses the entire

program or project. It usually consists of three levels of products/elements with associated work definitions. The three upper

levels of the PWBS are defined below.Level 1 is the entire program/project

Level 2 elements are the major product segments or subsections. Level 3 contains definable components or subsets of the level 2 elements. Slide20

Develop and Process a WBS Element

Plan Project and Create WBS

Create and Approve Sales Order

Monitor Sales Order Processing

CJ20N

Determine Order Acceptance

Non-GFEBS Operation

Fund/Release Project

CJ20N

VA01

VA02Slide21

LSA #2 Check on Learning

Q1

:

T/F: The Program/Project WBS is the structure that encompasses a small portion of a program

or project. Q2:

The only Non-GFEBS piece in the entire WBS process is _____ _____ _____

Slide22

LSA #2 SummarySlide23

Documentary Evidence Disbursement Description

“

In

most instances, a disbursement is

a payment to an individual or organization for goods furnished or services rendered. In some cases, a disbursement is made solely to transfer funds from one appropriation or fund

to another. This is a disbursement made by voucher deduction or by “no check drawn” transactions involving

SF 1080 (Voucher for Transfers Between Appropriations and/or Funds) or

SF 1081 (Voucher and Schedule of Withdrawals and Credits) and no payment by check, cash, or electronic

funds transfer (EFT).”DODFMR VOL. 5, CHAPTER 11 (05 FEB 2006)Slide24

Documentary Evidence Voucher for Transfers

NOTE:

Effective 2001, all US Government to US Government SF 1080 Reimbursable Billings are processed through the “Intra-governmental Payment and Collection System” (IPAC)Slide25

Appropriation Transfer

SF 1080 Example

Ensure

: Department,

establishment…receiving funds is the address of the organization providing the service.

Ensure

: Department, establishment…of the office charged

is the local area RM, G8, or DFAS

Ensure: Order number is the MIPR, Reimbursable

order

, or delivery order number.

Ensure: (If applicable) that the D.O.D. is present and accurateFt. Campbell Range upgrades:Containerized Housing Units x 100 50 @ TA-Lomah, 50 @ TA-2312

3

4

5

Ensure

: Good description

Of goods / services

procuredSlide26

9

8

6

Ensure

: (If applicable),

quantity is present and

accurate

7

Ensure

:

The ‘Unit Price’ Cost

is the total amount of the provided Service or GoodsEnsure: Amount representsthe total amount of the bill,in both dollars and centsEnsure: The ‘Unit Price’ Per is the ‘cost per unit’

Appropriation Transfer

SF 1080 Example (Cont.)Slide27

Ensure

: ‘

Remittance in

Payment hereof

…’ address is complete and includestelephone # of the remit tee.Include the Payment Due

date in this block.

10

Ensure: ‘Accounting

Classification (Office receivingfunds) is correct and it belongsto the office performing the

activity.

Ensure: ‘

’Certificate of Office Charged’ includes an original signature 1112

Ensure

: ‘

Accounting

Classification …Office-Charged

Is correct and belongs to the

ordering activity

13

14

Ensure

: ‘

Paid by Check No.’

Is the check number provided

By the remitter (if paid by check)

Appropriation Transfer

SF 1080 Example (Cont.)Slide28

Ensure

: ‘

Voucher Number

’is completed when a check Payment is made. Completed by the DO of the ordering

activityEnsure: the ‘

Bill Number’ Is complete. Completed byThe accounting office of thePerforming activity

Ensure: the ‘

Paid By’ addressand the DSSN belongs to the Disbursing office of the Ordering activityFt. Campbell Range upgrades:

Containerized Housing Units x 100 50 @ TA-Lomah, 50 @ TA-23

15

16

17For Collection211437JULXX

Stamp the SF 1080 ‘For

Collection’ when a check

is received. (A cash collection

voucher, DD Form 1131, is

not required nor recommended

for use when the check is

received for collection

18

Appropriation Transfer

SF 1080 Example (Cont.)Slide29

Prepare Error Correction Document (SF 1081)

“In the event that a disbursement is charged to an erroneous

Accounting Classification, this document will be used to

adjust /

correct those errors.”Used to make a Disbursement

Some cases – a disbursement merely transfers funds from one appropriation or fund to another either by voucher deduction or by a “no check drawn” transaction using the SF 1080 or SF 1081.Slide30

ADJUSTMENT

“Changes

in the accounting records made in response to the receipt of more current

information.”Slide31

CORRECTION

“Change

in an accounting classification or dollar amount on a document when preparing, posting, or processing the

document.”Slide32

ERROR

CORRECTION DOCUMENTS

Pen and ink change(s) to original document

SF 1017G, Journal Voucher (FV50 in GFEBS)

SF 1081, Voucher and Schedule of Withdrawals and Credits, to effect correction of errorsSlide33

STANDARD FORM 1081, VOUCHERS AND SCHEDULES OF WITHDRAWALS AND CREDITS

SF1081 EXAMPLE

Detailed explanation outlining

the issue, and the proposed

Correction. This comes complete

with both ‘

Preparer and Approver

’

signature blocks and contact info.

This LOA to be ‘Credited’ $425.00

This LOA to be ‘Debited’ $425.00

Certifying Officer signature and contactInformation. Slide34

LSA #3 Check on Learning

Q1:

Match to the correct VoucherVoucher

for Transfers Between Appropriations and/or Funds _______Voucher and Schedule of Withdrawals and Credits _______

Q2: T/F: All US Government to US Government SF 1080 Reimbursable Billings are processed through the “Intra-governmental Payment and Collection System” (IPAC)

SF 1080DD 1080

SF 1081DD 1081Slide35

LSA #3 SummarySlide36

Reimbursement Accounts

4 Stages of reimbursable accounting:

Authority

received (A/R)

Orders received (O/R) Earned reimbursement (E/R)

Collection Slide37

Authority Received (AR)

Funded Reimbursement

Authority

- Specific dollar

amount. -

Placed in “Reserve for Receipt of Orders” account.

Automatic Reimbursement Authority

- N

o

specific dollar amount. -

Dollar ceiling established by DRM.Slide38

Orders Received (OR)

Firm (contractual) agreement between

Buyer

(Ordering Activity) and Seller

(Performing Activity)Performing activity increases unobligated balance of available funds upon acceptance

Performer decreases the reserve for receipt of orders account for FRA

ONLY -specific

dollar amount -placed in a “Reserve for Receipt of Orders” accountSlide39

Earned Reimbursement (ER)

Performer earns reimbursement for costs incurred to complete customer’s order

Performer establishes an

Accounts Receivable

(by customer number) as a basis for billing the ordering activity

May require an adjustment to the accounts receivable: O/R = E/R

- cost fluctuation from estimate

- quantity fluctuation from estimateSlide40

Collection

Ordering activity reimburses the performing activity for goods and

services.

Performer liquidates the accounts

receivable.Slide41

Key Reimbursable Activity Balances

FRA

O/R

E/R

COLL

ANTICIPATED

ORDERS (AO)

UNFILLED

ORDERS (UO)

OR

UNEARNED REVENUE (UR)

ACCOUNTS

RECEIVABLE (AR)Slide42

Recording Reimbursements

SF 1080 and SF 1081

Both are used to process payments and collections between agencies

The form used, depends on the payment type and if the funds are within the same agencySlide43

Analysis of the

Reimbursement Program

LOOK FOR:

O/R in excess of AuthorityE/R in excess of O/RE/R less than Disbursements

O/R with little activityLate deliveries

Missed start days

Customers’ failure to paySlide44

LSA #4 Check on Learning

True of False

Q1:

One of the two types of authority received for the reimbursement process is the RAR

.

Q2:

Acceptance of the DD Form 448, Military Interdepartmental Purchase Request (MIPR) constitutes an order received.Slide45

LSA #4 SummarySlide46

TLO

Check on LearningSlide47

TLO Summary

Action:

Perform Reimbursable Accounting

Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercise, personal experience, handouts, and discussion.

Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:Examine

the Reimbursable Decision matrix and discuss the Reimbursable types.Communicate the Work Breakdown Structure Process.

Review SF 1080 and SF 1081 for accuracy and completeness.Analyze

the Reimbursement Accounts.