SCMIC 0307

Budget Management

SCMIC 0307

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Overview

➢ DIA Report Site

➢ Key Performance Indicator Reports

➢ Status of Funds (SOF)

➢ Transaction Reconciliation

➢ Identifying Documents That Are Partial Shipments

➢ Mid-Year Review

➢ Fiscal Year Closeout (Year-End Processing)

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Learning Objectives

➢ Review learning objectives in your student outline.

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REFERENCES:

MCO 7300.21B
NAVMC 2664
UM 4000-125
NAVSUPINST 4200.99C

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Key Performance Indicator Reports

➢ Key Performance Indicator Reports (KPIs) are

reports that provide the supply section with fiscal
errors, statuses, and account details.

➢ Retrieving Reports: KPIs are retrieved within

Defense Agencies Initiative within the Oracle
Business Intelligence Enterprise Edition (OBIEE).

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Key Performance Indicator Reports

➢ DAI is an accounting systems that updates as

transactions are processed through two ways:

➢Real-time as the transaction goes into DAI

➢Batch processing

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Oracle Business Intelligence Enterprise Edition

➢ Oracle Business Intelligence Enterprise Edition (OBIEE)

➢Allows DAI organization to measure their financial

accounts with up-to-date data

➢Analysis - Ability to query answers business to

questions about USMC business and financial activity

➢Can be presented in graph or table format

➢Ability to save, organize, and share results of

analyses.

➢Custom reports have already been pre-built

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Multiple Choice

The official reporting system for financial transaction in the Marine Corps?

• SABRS

• DTS

• GCSSMC

• DAI

Key Performance Indicator Reports

➢Dashboard – Ability to compile multiple pieces

of analytical information

➢Graphs, charts, or tables based on your

personalize view of your organization

➢Incorporates analyses and links to websites

➢Filter, Selection Steps, and Prompts – Allows

users to Filter or specify the data

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DAI OBIEE Home Page

➢DAI OBIEE Home Page – Starting point for

OBIEE related reporting

➢Divided into sections or regions: Create,

Recent, and Most Popular

➢Organizational Data presented in easy-to-

understand format such as analyses
(reports), graphs, formulas, and tables

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Oracle Business Intelligence

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Procure to Pay (P2P) Dashboard

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Status of Funds Reports

➢ Status of Funds (SOF): Fund management reports that

Validated their Budget Authority.

➢ SOF report contains Commitment, Obligation, Expenditure,

and Funds available.

➢ SOF per Project – Most relevant to how your funding will

be passed.

➢Project - Overall budget Authority that is passed from

the Level III

➢Task - Authority for each under specific Project.

Multiply tasks are common but total for all task will not
exceed budget authority for project

➢SOF-General Ledger (GL) – Overall Project

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Reconciliation

➢ Reconciliation: conducted utilizing all KPIs.

➢Project reconciliation if your command is the

owner of all Task

➢Task reconciliation – Vital when your Project is

outside your Command influence

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Daily Transaction Report

➢ Every transaction that had financial data processed.

In Supply terminology, similar to DASF transaction
history

➢Report found in E-Business suite for OBIEE

reports

➢Best used by sorting purchase order and posted

dated

➢This will allow an easier method of validation

of debts and credits

➢They will post in the correct sequence order

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Reconciliation

➢ DTR report must be compared against general ledger listed below:

➢4610 – Allotment Standard General Ledger (SGL) will show debit

transactions when a new commitment is recorded

➢4700 – Commitment SGL will show debits and credits as the new

commitment is recorded and then obligate

➢4801 – Obligation SGL will show debits and credits as the

obligation is recorded and then when we receive and accept good
and services

➢4901 – Delivered Order SGL will show debits and credits as we

receive and accept good and services. When we pay for those
goods or services a debit will appear

➢4902 – Paid SGL will show up with credit transaction when DFAS

has paid the vendor

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GAAP Compliant System

➢ DAI is a GAAP compliant system

➢ Means every transaction has a dual entry (Debit and Credit) in

system

➢ Credits are increases to SGL

➢ Debits are decreases to SGL

➢ Example of a dual entry activity

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Date Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

1-Jan

500

2-Jan

500

500

3-Jan

500

500

4-Jan

500

500

LIQ (4902)

EXP (4901)

OBL (4801)

CMT (4700)

DTR Example

➢ DTR – contains all data posted since last DAI daily batch

interface and any real-time transactions

An example of DTR

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Requisition Number System

Amount

Type

SGL
Debit/Credit

Financial Transaction
Cycle

M0002722284

iProcurement

1579.27 Request/Order

4610/4700

Commitment

M0002722197

SPS

682.47 Award

4700/4801

Obligation

M0002722201

WAWF

967.28 Receipt/Acceptance

4801/4901

Expense

M0002722214

DFAS

4862.19 Payment of Invoice

4901/4902

Liquidation

M0002721799

iProcurement

138.08 Request/Order

4610/4700

Commitment

M0002722932

U.S. Bank - AXOL

41.78 Matching Order/Purchase

4700/4801

Obligation

M0002722781

DAI

8642.21 Receipt/Acceptance

4801/4901
4901/4902

Expense and Liquidation

M0002722971

DAI

9457.51 Request/Order

4610/4700

Commitment

M0002722999

WAWF

32.03 Receipt/Acceptance

4700/4801
4801/4901

Obligation and Expense

M0002722901

DAI

25841.66 Certification

4901/4902

Liquidation

DTR Reconciliation

➢ Reconciled against the KSDs in the pending file. All KSDs are reconciled

against COM, OBL and EXP adjustments.

➢ Validity: ensuring the KSD on hand for the posted transaction

➢ Accuracy: ensuring the amounts posting match the KSD and amounts

are not duplicated, and accounting data is correct

➢ Certification: once reconciliation is complete, report should be printed

and annotated for certification/certification statement by the fiscal
clerk. DTR is maintained either hard copy or electronically.

➢ Follow-Up: any pending file record not posted to DTR must be

researched and decision matrix utilized within systems tab.

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Document Level Execution Report (DLER)

➢ DLER – Active file which shows all of your current

documents in DAI

➢Report found in E-Business suite for OBIEE reports

➢Utilize Dashboard drop down and select P2P

➢Click on Fund search your unit fund

➢Click on Project number search your unit project

number

➢Then click apply and it will generate your report which

you can extract into Excel to filter as need

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DLER Report

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Obligation Status Report

➢ Provides detailed obligated requisition information.

➢Will provide total quantity ordered and billed

➢Obligations include the following

- Contracts

- Reimbursable

- Travel

- PCS order

- Govt Procurement Card

- Grants

- Miscellaneous

➢Report will display by project number.

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Un-Liquidated Obligation (ULO)

➢ Un-Liquidated Obligation (ULO): all transactions where OBL

is greater than LIQ (OBL>LIQ).

➢ULOs are considered to be a normal condition, but

problematic if dormant for 120 days or more.

➢Validation of ULO is conducted 3 times a year, during

what is called the Dormant Account Review Quarterly
(DAR-Q)

➢ Reconciliation: review incomplete active file records to verify

accuracy and validity and correct every time DTR is
reconciled.

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ULO Common Errors

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Common Errors

Items not Received
Transaction not liquidated due to obligation mismatch
Accounting system or entry errors
Improper/lack of reconciliation with Fund/Resource
Managers who originated transaction

Multiple Choice

Which report will show requisitions that have not been paid?

• SOF

• DLRE

• ULO

• UMD

Travel Details

➢ Travel Details – Travel authorization and Travel

Authorization Number (TANUM)

➢Provides all “Attribute Category” showing com,

obl, exp, and liq

➢Burden of responsibility on travel section.

However, funding responsibility falls on the
Supply Officer.

➢ Reconciliation: reconciled with travel section and

travelers

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Travel Details Common Errors

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Common Errors

Travelers not submitting vouchers
Vouchers being rejected due to various reasons
Travelers have not completed travel
Accounting related error

Unmatched Disbursements (UMD)

➢ Unmatched Disbursements (UMD): Is a report that provides

details of unmatched invoices.

➢ Unmatched invoices originate outside DAI.

➢ UMD are defined by Accounts Payable invoices which have not been

matched to a requisition/purchase order number

➢ Reconciliation: Contact DFAS to correct the financial date

elements placed on vouchers

Common Causes

Corrective Action

•Incorrect Financial Data Pmt

Contact DFAS to Correct FDE

•Incorrect Financial Data element

Correct Record per source document

•Missing Obl no system interface

Manually Obl Record

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Internal Budget Execution Report (IEBR)

➢ IBER utilized for internal budget execution within

GCSS-MC.

➢ Retrieved from GCSS-MC

➢ Reconciliation: against detailed execution reports in

DAI .

➢Units supported by SMUs will utilize IBER to

reconcile against SMU Charges.

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Multiple Choice

What is a common error for travel authorizations not being paid?

• The traveler does not want to be reimbursed.

• Traveler has not submitted a voucher.

• The traveler cannot find his/her GTCC.

• The voucher is completed.

Status of Funds

➢ Status of Funds (SOF): identifies commitment, obligation,

total Expenditures, funds used, and funds available for
project.

➢ SOF report is an essential tool to use during

reconciliation of actual versus planned funding execution.

➢Retrieved from Oracle Business Intelligence Enterprise

Edition (OBIEE) with-in DAI E-Business Suite.

➢Combined with Obligation Phasing Plan (OPP) to project

obligations on a monthly basis using estimates and
requirements.

Calculating a Status of Funds

➢ Status of Funds report in OBIEE, only provides a snapshot of your

account’s potential status.

➢ True SOF is determined by combining all KPIs with your account

balances in DAI, plus adding up all your pending file records. A few
examples are listed below

➢GCSS-MC – MILSTRIP transaction that have not been approved

or in a short fund status with-in GCSS-MC

➢ SERV-MART shopping request pending review and or approval

for purchase.

➢Contract that have a commitment but have not been awarded

➢ Electronic ledgers and SOF calculation tools will assist with producing

a true SOF quickly.

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Transaction Reconciliation

➢ General: performed to ensure accuracy of all data

elements and amounts.

➢Reaffirms the fund manager’s official SOF.

➢ Reports Used to Reconcile: KPIs are utilized by the

fund manager to reconcile with the DASF Clerk and
fiscal clerk for contracts, ServMart, GCSS-MC, ect.

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Verify Commitments (Step 1)

➢Compare requisition and purchase orders

numbers, amounts, and other financial elements
in the accounting system against source
documents or reports like the OBIEE Invoices On
Hold report to verify that the data elements in DAI
haves posted correctly.

➢Review and identify errors that may require

requisitions/purchase order numbers to be
cancelled or amended.

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Verify Obligations (Step 2)

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➢Compare requisition/purchase orders numbers,
amounts, and other financial data elements in the
accounting system against the source document or
Obligation Status Report in DAI to verify that the data in
DAI has posted correctly.

➢Research discrepancies utilizing Obligation Status
Report

➢Take corrective action at issuing activity for obligation
discrepancies.

➢Conduct manual obligation with-in DAI if required.

Verify Obligations (Step 2)

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➢Conduct manual obligation with-in DAI if required.

➢Ensure obligation document is received within 6 days
from obligation date.

➢If obligation document is not received, contact
appropriation action office to determine status.

➢Ensure all Obligation are recorded within 10 calendars
days or if over 100K must be recorded in same month of
incurrence.

Verify Expense (Step 3)

➢Compare requisition/purchase order numbers,

amounts, and other financial data elements in
the accounting system against the receipt
document invoice and the Document Level
Execution Report to verify the expenditure data in
the accounting system has been posted correctly.

➢Research discrepancies

➢Take corrective action in accounting system

and/or source document.

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Verify Liquidation (Step 4)

➢Compare requisition/purchase order numbers,

amounts, and other financial data elements in the
accounting system against the receipt document
invoice and the Document Level Execution
Report to verify the liquidation data in the
accounting system has been posted correctly.

➢Ensure OBL amount is zero and LIQ amount is

equal to invoice amount.

➢Ensure sufficient funds are available for the

project to ensure liquidations can be processed.

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Special Considerations

➢ Factors may change OBL amounts of a transaction

during the life of the requisition to include:

➢Price / Unit of Issue changes

➢Substituted NSNs

➢Hidden fees (shipping costs / transaction fees)

➢ Fund managers must validate source documents to

ensure that funding is accurate with-in DAI.

➢ If the item is cancelled, fund managers must

ensure the corresponding document
requisition/purchase order number are canceled.

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Price Changes

➢ Price Changes: causes the fund manager to pay more or

less for goods and services.

➢Causes the expenditure and liquidation amounts to be

different from the original obligation that was processed.

➢Price changes should be updated accordingly with-in DAI,

however manual obligation maybe required if needed.

➢The fund manager is responsible to ensure appropriate

adjustments are conducted.

➢Commitment/Obligation/expenditure must have zero

balances

➢Liquidations (Disbursement) need to reflect that what

was charged is accurate and what was authorized.

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Partial Shipments

➢ Identifying Documents / Partial Shipments:

➢ Utilizing DASF, DTR, and ULO, Fund Manager should look for

obligation amounts and quantities still available along with either an
expenditure or liquidation.

➢ Once partial shipment has been determined, fiscal clerk must

reconcile with supply clerk to determine status of goods or services.

➢ If received, wait for obligation to post credit to general ledger and

move to the expenditure ledger.

➢ If requisition does not properly post, manually receipt in DAI for the

correct quantity and unit price.

➢ If cancelled, wait for correct posting of reduce obligation, manually

adjust amounts in DAI maybe required.

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Mid-Year Review

➢ Mid-Year Review (MYR): primary output of the MYR is a

prioritized list of current year deficiencies (CYD), expressed
through justifications and impact statements.

➢MYS has direct impact on the command’s budget

execution, and forces Budget Officers to address the way
ahead with commander’s and comptrollers.

➢MYR is conducted during January/February.

➢Operations and Maintenance (OMMC) Office releases

guidance to MarFors, which in turn release guidance to
MSCs and subordinate units.

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Mid-Year Review Steps

➢ MYR Steps: units execute an in-depth financial

analysis of their fiscal accounts and
operational/logistical readiness, and an integral part
of remaining fiscal year funding.

➢Complete and accurate SOF with applicable KPIs

➢Conduct a staff call with commodity sections to

determine fiscal requirements for the remainder
of the fiscal year.

➢Re-evaluate Commander’s priorities.

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Mid-Year Review Steps

➢Compare and contrasts current budget with

remaining requirements.

➢Prioritize prior and current year known

deficiencies, only those for your commands
Project/TASK.

➢Formulate MYR in accordance with respective

MSC’s guidance.

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Multiple Choice

When is the MYR conducted?

• Oct/Nov

• Jan/Feb

• Jul/Aug

• Aug/Sep

MYR Completion/Validation

➢ Once MYR is completed, submit validations for procurement through

applicable fiscal approval processes.

➢ Identify whether requirement has been approved by POM or POM

review.

➢ Document the following:

➢Who is requesting support?

➢How much is the request

➢What will it fund specifically?

➢What is the bona fide requirement ?

➢What is the timeline for this requirement?

➢What project/task will be associated to the new requirement?

➢What is the impact if the requested project/task does not receive

increased funding?

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Mid-Year Review Components

➢Commands submit funding request with cover letter via

chain of command.

➢Mid-Year Review integral part of completing funding

requirements that were not anticipated when the budget
submission was conducted for current fiscal year.

➢The following components are required

➢Cover Page

➢Deficiency Summary Form

➢Deficiency Justification Worksheet (s)

➢SAC 1 Deficiencies

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Demonstration/Practical Application

➢ Mid-Year Review Package

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Fiscal Year Closeout

➢ The end of the FY produces a “snapshot” of the health, validity and

correctness of financial execution throughout the FY.

➢ Close-out Objective: ensure all financial obligations in current FY are

legal, valid and properly entered in DAI.

➢ Fiscal Officer Role: ensure proper closeout of the FY on 30 September.

➢ Communicate with commodities and commander to closeout budget

➢ FY close-out actions should be continuous from the 1stday of the FY

to the last.

➢ Every commodity should be heavily engaged in proper close-out

procedures.

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Closeout Year End Processing Guidance

➢ Close-out Guidance: usually published in the FY 3rd quarter

to facilitate a coordinated effort between the MEF, MSCs and
subordinate units.

➢HHQ Guidance: should layout CG’s Concept of Operations

as it relates to FY close-out procedures, intent, tasks,
coordinating instructions and cut-off dates to MSCs.

➢MSC Guidance: amplifying guidance from MSC

Comptroller with revised timelines. This guidance is
usually in email format to subordinate units with
Project/Task that are being funded.

➢ Financial community conducts year-end process to ensure

commands have addressed all year-to-date changes.

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Fiscal Year Closeout

➢ Close-out Procedures (Year-end processing):

➢ Ensure all supply/service contracts are obligated within DAI.

➢ Ensure all inter-service contracts are obligated within DAI.

➢ Ensure all requests for procurements within DAI are obligated

(iProcurement/WAWF/GCSS-MC)

➢ Ensure service contracts that have option years have been

submitted for Subject to Availability of Funds (SAF)

➢ Ensure GCPC/ServMart “cut-off” dates are adhered to.

➢ Ensure your units budget has fulfilled all project/task commitments

and obligations

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Fiscal Year Closeout

➢ Close-out Procedures (Year-end processing) Continued:

➢Ensure all PR are approved for purchase in iProcurement

before GCPC are deactivated based on close-out
guidance.

➢Ensure that service contracts with option years have

submitted into iProcurement with a zero-dollar amount
with the box checked, “Subject to Availability of Funds
(SAF)

➢Ensure all applicable waivers are submitted (ITPRAS).

➢Assist comptroller with review and correcting KPIs

➢Be prepared to execute last minute spending from

comptrollers (CYD)

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Demo/Practical Application

➢OBIEE Reports and expense transactions

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Summary

➢ DIA Report Site

➢ Key Performance Indicator Reports

➢ Status of Funds (SOF)

➢ Transaction Reconciliation

➢ Identifying Documents That Are Partial Shipments

➢ Mid-Year Review

➢ Fiscal Year Closeout (Year-End Processing)

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Break

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