Automated Accruals, VIAS Adjustments, and Manual Costs

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Automated Accruals, VIAS Adjustments, and Manual
Costs

• FY07 Financial Statement Workshop Presentation

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Introduction

• Automated Accruals
• VIAS Accrual Adjustments
• Manual Costs
• What can you do?

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I. Automated Accruals

• Auditors were generally satisfied with the
  automated accrual process in FY06 and there were
  no findings released in this area.
• In Feb-07, the automated accrual program
  generated 249M of accruals on over 5,000
  purchase orders.
• Improvements slated for FY07 include adding
  Reimbursable Work Funds, 00911 Funds, and PPE
  Object Classes to the automated accrual
  parameters.

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I. Automated Accruals

• Refinement of parameters by Award Type needs to
  be completed by June 2007.
• AccrualDaily Pmt RateBilling Cycle Factor.
• Current Billing Cycle Factors for Major Awards
  Types
• DEAC (Contract) 42 Days
• DEFC (Cooperative) 54 Days
• DEFG (Grant) 31 Days
• MISC (Miscellaneous) 61 Days

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II. VIAS Accrual Adjustments

• In Feb 2007, approximately 300 purchase orders
  were adjusted for additional accruals of 65M.
• In Feb 2006, there were no VIAS adjustments.
• All allottees are now participating to varying
  degrees except PNR and SNR.

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VIAS Accrual Adjustments(Feb 2007 Activity)
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II. VIAS Accrual Adjustments

• Your primary challenge is in continuously
  educating the VIAS user community on their new
  responsibilities.
• In FY06, auditors found unsupported VIAS user
  adjustments in a small HQ sample.
• In FY07, heavy audit scrutiny is anticipated and
  auditors will be reaching out to our respective
  program customers to validate adjustments and
  zero adjustments.

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III. Manual Cost Entries

• These entries should not be reversed and are
  provided to EFASC each month.
• Any Purchase Orders placed on the PO Exclusions
  List require a cost report to be submitted to
  EFASC each month.
• ORFSC will not generate cost entries for items on
  the PO Exclusions List.

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III. Manual Cost Entries

• It is very important to run IDW and/or STARS
  reports to verify that your cost report
  submissions were recorded accurately and in the
  proper accounting period. This was a finding in
  FY06 and the auditors will be looking closely at
  this as part of their follow-up procedures.

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IV. What can you do?

• Verify that EFASC cost report entries were input
  accurately and in the correct period by using
  existing IDW and STARS reports.
• Use the Abnormal Balance Report for AP categories
  on a frequent basis.
• Use the 2108 Certification Standard Operating
  Procedures

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IV. What else can you do?

• Use the DOE Accrual QA report available in
  STARS GL Inquiry to identify high profile
  Purchase Orders (Uncosted Balances) and
  associated VIAS activity. This report should be
  used to sample the VIAS activity to ensure that
  users understand their responsibilities.
• Contact is geoffrey.smith_at_hq.doe.gov,
  CF-12.2, 301-903-2729