1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Proposed DLMS Change (PDC) 1043E Invalid Fund Code Edit and Remove Suspense Account F3885 Bob Hammond Chair, Finance Process Review Committee HQFinance@dla.milHQFinance@dla.mil 703-767-2117 August 25, 2015

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Background: -SLOA Fund Code Edit o ADC 1043 prescribes DAAS edits to reject transactions where SLOA data does not match Fund Code o Edit cannot be performed if Fund Code is invalid or missing (when required) o Currently the only DAAS Fund Code edit is for Signal Code C/L, since DAAS is unable to route the transaction via Fund Code to Billed DoDAAC Table o Signal Codes A/B/J/K not edited at the enterprise level -ADC 294 removed suspense accounts, but F3885 narrative was retained in MILSBILLS, as Navy was granted a waiver. PDC 1043E

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Issues: -Invalid or missing fund codes may lead the billing office to cite the Component’s default line of accounting prescribed in MILSBILLS, Appendix 2.2 -Labor intensive, costly effort needed to resolve; may require billed office internal adjustments and potentially adjustments to Treasury -May result in billing to Component “default appropriations” -Post-Post transactions are problematic for validation PDC 1043E

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Default Lines of Accounting: –MILSTRIP & MILSBILLS allow use of blank fund code –MILSBILLS: “When a fund code is not found on the fund code to disbursement fund account conversion table the appropriation charged shall be assigned as follows: Organization (Billed Service Code) Interfund Default Appropriation Contractor (C, E, L, Q, U)Not applicable, noninterfund Non-DoD (G, Z, HX, Numeric)Not applicable, noninterfund Army (A, W)21*2020 Air Force (D, F)57*3400 Navy (N, P, R, V)17*1804 Marine Corps (K, M)17*1106 Defense Logistics Agency (S, T)97X4930.5999 O ther Defense Agency (H) Not applicable, non-Interfund. Issue: Not auditable & may require buyer adjustment PDC 1043E

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 DocID Billing OfficeDollar Value Transaction Count FS1FGZ$750,436.967 FS1FHZ$629,106.975 FS1FLZ$1,874,991.0810 FS1NRP$3,453,851.92474 FS1NUA$1,518.459 FS1SMS$2,598,049.11826 Total $9,307,954.491331 FS2B16$4,585.001 FS2B17$6,891.952 FS2FGZ$525,014.338 FS2FHZ$503,184.526 FS2FLZ$266,147.004 FS2N35$223,452.007 FS2NRP$4,911,268.69680 FS2NUA$5,654.262 FS2SMS$814,638.00193 Total $7,260,835.75903 PDC 1043E Default Accounts

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 Resolution/Status: -PDC Staffed. Component responses due : o Validates fund codes at order entry points and DAAS for all signal codes o Applicable to most ADC 1043 DLMS transactions with a financial implication; excludes post-post and image supply transactions o Includes additional change to remove references to suspense account F3885 procedures for Navy waiver o Monitor billing to Component default appropriations for potential future PDC to disesablish them PDC 1043E