Download presentation
Presentation is loading. Please wait.
Published byMargaret McKinney Modified over 8 years ago
1
Business rules (BR) identify which outputs and clients a system or indirect/G&A charge supports o System managers provide input as to which outputs and customers their systems support (Direct and Indirect systems) o BR23 is defined by System Managers during budget formulation; no updates are made during execution 1 Sample Project Code: 160321070000 Fiscal Year Indicator *2107 is the SID for DJMS-AC Output 16 03 2107 0000 Identifier DJMS-AC Output 03: (Active Duty Military Pay) ARMYNAVYUSAF
2
2 Costs A Unit Cost Perspective
3
3 Key Concepts (Workcount Projections & Billing Rates) All direct, indirect, and G&A costs for a program or output make up its budgeted total cost An NOR/AOR adjustment is included based on prior year gains or losses Managers estimate workcounts for the budget in collaboration with customers Total budgeted cost (President’s Budget) divided by estimated workcounts equals the billing rate Billing rates are stabilized two years in advance of the year of execution
4
4 SAMPLE: Output 07--Travel Vouchers Paid - Manual Manager and customer project a requirement of 512,841 manual travel vouchers paid during the fiscal year Historical OP 07 productivity rates provide data for estimating labor hours from which labor dollars can be formulated Other direct and indirect costs are estimated; G&A costs are spread to the output for rate development based off of direct cost proportions
5
5 DFAS bills three types of reimbursable work for customers: 1) Rate-Based Consist of “outputs” such as civilian pay, direct billable hours, travel pay, etc. Actual work counts X by stabilized rates for outputs are basis for customer billing 2) Support-to-Others (STO) Projects Total project cost is billed to customer 3) Direct Systems Reimbursement (DSR) Total cost is billed to customer Bills are generated monthly by the U.S. Treasury Intragovernmental Purchasing and Collections (IPAC) system ◦ Prior to month-end ◦ Some charges are accruals needed for GAAP revenue recognition
6
6 Charges or billed amounts that are unable to be collected due to lack of funds receipt or funding shortfalls from customer or reimbursements owed to DFAS by the public Vast majority of the accounts receivable balance is comprised of charges that are unable to bill, also known as suspended earnings or suspended work counts
7
7 Unbilled Public Debt and Journal Vouchers Financial Statement Subsidiary Reports AR005: Unbilled AR003: Billed but not collected PC016A: Public Debt
8
PPBE is critical to DFAS as a WCF ◦ Not profit-driven; rather self-sustaining Self-sustaining when costs are offset by sales – breakeven basis Goal is to ensure accurate recovery of costs ◦ Imperative to estimate workcounts accurately ◦ Factor costs into prices to not lose money
11
11 Work Counts (Sales)-WC001 Bill-AR002 Revenue Subsidiary-AR006 Cash Collection-AR007
12
12 Initial Goals Workcount VariancesCost Variances Variance Concepts + -+ - Key Concepts (Variances) In all cases, revenue is calculated from workcounts X stabilized billing rate Variances to either workcounts or cost have NOR impacts
13
Per Client Executive (CE) funding requests based on budgets, customer provides funding document to Central Revenue Office (CRO): o MIPR, Funding Letter, etc. o CRO shared mailbox for customer submissions o CE Support Analysts identifies Support Agreement # associated with funding documents CRO assigns customer code to funding and loads into DFAS eBiz system (Project Cost Accounting System (PCAS) module o PCAS contains several key data elements: Funding Document Number Funding end date Amount Customer code(s) Project code Billing is provided separately for each customer funding document o Outputs listed separately on itemized billing reports (AR002) Include work count, rate, and earnings for rate-based work Include reimbursable project cost for STO and reimbursable systems costs for DSR if applicable
14
14 All year-to-date charges (earnings including accruals) appear on customer’s AR002 Per working capital fund rules, billing may not exceed amount of funding Per working capital fund rules, billing may not exceed amount of charges Therefore charges are categorized on billing reports as either “Billed” or “Unbilled” Suspended earnings: Unbilled charges (on insufficiently funded MIPR) are automatically recorded to revenue and accounts receivable in eBiz Unfunded charges (no existing MIPR to charge or bill) require a line-by-line scrub by CRO and are then are recorded to revenue and accounts receivable with a monthly journal voucher Client Executives and their support staffs work with customers to obtain additional funding when required Unfunded: No funding has been received from the customer for services performed Unbilled: The shortfall that occurs when existing funding received from the customer is insufficient to bill all of the cost for services performed
Similar presentations
© 2024 SlidePlayer.com Inc.
All rights reserved.