Problem Disbursements

1
Problem Disbursements Interest
ReductionFY 04 Year End Status FY 05 Goals

• 03 February 2005
• Vicki Beck ASN FMC
• [phone]
• vicki.beck_at_navy.mil

2
Department of the Navy PD Historical Overview
Billions (Absolute)
Progress to date Sept 2004 Navy
231M Marine Corps 53M FMS 1.5M PD Total 285
Weve reduced PDs by 98!!
3
PD Accomplishments

• 98 reduction from FY95 all time high of 16.2B
  ABS
• No longer a material weakness on annual Statement
  of Assurance
• Quarterly PD focused meetings have evolved into
  semiannual financial management conferences
  covering many issues
• Very close to eliminating all PDs gt 120 days

4
How did we do it?

• Senior top down leadership
• Acquisition involvement
• Intense program management
• Goal setting
• Communication
• Quarterly meetings
• Monthly reports
• Coordination efforts between Navy and DFAS
• DFAS-CO liaison office
• DFAS-CO PD package procedure
• Prevalidation improvements
• System improvements

Persistence!
5
Problem Disbursements end of Fiscal Year 2004
Millions Absolute
6
PD Goals for FY 2005

• PD balance not to exceed previous year ending
  balance.
• 228M ending balance expected
• Encourage Commands to meet year end balances that
  have been achieved in previous years.
• If FY04 balance was greater than FY03 then we
  used FY03 ending balance
• Reduce transaction count by 20
• From 56,467 Transactions count in 2004 to 45,173
• Aim to promote addressing root causes that create
  PDs
• FY05 YTD average monthly balance not to exceed
  FY04 average monthly balance
• Last year Commands average for STARS GF was
  158M
• Measures Command monthly progress compared to
  previous year
• Note Commands must continue to work with DFAS to
  ensure no PD balances age past 120 days

7
Interest Reduction Status
8
FY 2004 Goals vs. Actuals

• Goal 20 reduction in interest paid per million
  using July 2003 baseline
• Navy achieved 24 reduction
• July 2003 baseline 212
• FY 2004 Goal 170
• FY 2004 Actual 161
• Marine Corps achieved 22 reduction
• July 2003 Baseline 606
• FY 2004 Goal 485
• FY 2004 Actual 470

9
Total Department of Defense - FY03 vs. FY04
10
Accomplishments

• Implemented Web-Based Version of IDA321 Report
  with drill down capability on Navy Interest
  Penalty Dashboard
• https//www.fmosystems.navy.mil
• Drill down capability by Major Command,
  Responsible Office, and Certifying Office
• STARS One Pay
• Issued Standard Prompt Payment Certification and
  Deduction Cover Sheet on 6 December 2004
• Developed Computer Based Training Course for DON
  Invoice Certification

11
How did we do it?

• Establishment of a commercial pay council
• Cross-functional areas
• Bi-monthly to quarterly meetings
• Conducted an interest reduction study
• Focused attention on business processes
• Bill-paying
• Certifying

12
Ongoing Efforts

• Continue Monthly Interest Meetings
• Develop Web-Based MOCAS Interest Report with
  drill down capability
• Promote Wide Area Workflow (WAWF) Implementation
• Implement Program Management and trend analysis
  for interest reduction

13
Commercial Pay FY05 Goal

• Goal Dollars Per Million PPA Dollars Disbursed
  20
  reduction goal from FY 04
• Navy
• Actual FY 2004 161
• FY 2005 Goal 129
• Marine Corps
• Actual FY 2004 470
• FY 2005 Goal 233