(classical music)
-: Good afternoon, good afternoon.
Who sits for six now in IGT presentations?
Yeah, I like it.
You guys don't count.
(audience laughs)
But you guys do, you guys count.
Alright.
So you've heard about the great program guide.
Robert, your shadow goes across when you do that.
(audience laughs)
And it's here.
So you've heard today about the IGT difference.
You've heard about G-Invoicing.
An overview for me and Keith,
and then Alex went through Orders,
Wes went through Performance in great detail
for a long time and then...
(audience laughs)
And then Keith and I talked about your
trading partner information.
Now we're going to talk about
what the real accountants like.
The debits, the credits, and all that good stuff.
So again, emphasize there on the day's theme.
It's IGT day.
A lot of these sessions have dealt with G-Invoicing.
G-Invoicing, of course, is part of IGT.
It's not gonna, again,
this solution is not get resolve all 10, 13 billion,
we're talking about 21 billion of that.
And it's not even, It's gonna contribute to us resolving
that I should say.
I book 'em, putting the debits and credits to G- Invoicing.
So accounting 101 for G-Invoicing is why I love this.
I'm not gonna put too much pressure on Brian,
but I'll say it again.
Guys, I love it, I think it's a great compliment to Brian
and Andy and these guys who put this together.
And Andy, she said this is the best,
piece of accounting guidance
that she has seen in over her 25 years
in federal government.
So high expectations, high praise.
We're really proud of it, and the work that went into it.
Alright, so our learning objectives for today's,
this afternoon's session, the last session,
thank you for staying around,
is to recognize how events in the Buy/Sell Transaction
Lifecycle relate to G-Invoicing.
So hopefully we're going to take G-Invoicing,
the four stages, and connect that to CFM for you.
And let you know, okay, what does this mean,
as far as what am I gotta accrue?
What am I going to accrue?
What's my 2110?
What's my 6100?
And things of that nature.
Distinguished common G-Invoicing terms
and performance transaction events.
You're gonna find out from Brian,
there's certain transactions that are very important
to the accounting universe.
And he's gonna go through those.
You're gonna be able to identify some FIDS
and how they drive that accounting.
Gain a better understanding of how better communication
through the use of G-invoicing,
or facilitate proper accounting.
And that's one of the goals, right?
So one of the major goal G-Invoicing
is to facilitate that proper accounting,
reduce IGT differences,
get that $21 billion number drill down.
And also, I mean, I pitched it before last session
but I really do think and a lady was just up here
talking to me about accruals.
Right now for accruals you guys have to either communicate
with your trading partner, send an Excel file,
things of that nature, right?
On G-Invoicing we're gonna build functionality and reports,
you're gonna have your accruals
and a report from G-Invoicing.
You don't have to chase all the information down.
We're going to facilitate that communication
within the tool.
Alright, so by show of hands,
how many of you have seen this wonderful guide?
Good.
But it seems like every outside of Fiscal Service,
we're a little sparse on that which is good.
So, but I will say this about the guide.
So matrix, one my favorite movies.
What if I told you, you could change
the Buy/Sell transaction world?
You're right with him right now,
you got the red pill and the blue pill.
One pill, you can keep the one things
the you're doing now.
Very manual, a lot of chasing down IPACs,
reconciliation issues, differences.
Or you can go with me and Brian, and G-Invoicing
and figure out how we're going to do this thing
and work together.
I'll tell you, the easiest thing to do
is to do what you're doing now, right?
You're familiar with that, you're comfortable with that.
That's your process.
Just like anything else in life,
it's easy to do what you're comfortable with
and what you've always done.
The tough part is doing something different.
Going to the forefront, leading the change,
being part of something that's brand new,
innovative, and that's what G-Invoicing is.
And if you guys get on board with G- Invoicing,
you gonna see a lot, a lot of benefits.
I can't stress that enough.
Are there gonna be some bumps?
Yeah, I mean, heck, yeah, they're gonna be bumps.
If there's not I would be concerned.
If this thing went off without a hitch,
we probably didn't implement right.
But there's got to be some bumps,
and that's okay.
That's perfectly fine.
But the end result is going to be where we want to be.
And we're going to be an automated system
that's going to lead to efficiencies for you guys
and reduce those differences.
Some of the current challenges that we face right now
in today's environment,
so if you decide to take, I get the pills mixed up,
if you took the blue pill, for example,
for matrix, that's not a good play on words.
(audience laughs)
Well, you can't walk that back, can you?
(audience laughs)
Yeah, gotta stick with that.
Okay, so you take that pill and you,
these are the challenges you would face.
Pull it together here a little bit.
(audience laughs)
We have a lack of an automated broker, right?
So not automate brokers,
there's a lack of communication and concurrent (mumbles).
So how many of you are,
when Keith and I talked about IPAC wars,
how many of you understand what that is?
How many of you are a month end,
sitting there with your finger next to the button,
if you get an IPAC, I'm just sending it back, boom!
I'm gonna charge you back, right?
(laughs)
That's where all the chargebacks come from.
I was that guy, when I first started.
I'm just sitting there.
We got IPAC, boom, send it back.
And you had to send it back, the timing had to be right,
so they couldn't send it back to you.
(audience laughs)
You want it on their books, not yours.
So I was that guy, loved being that guy.
It's an easy job.
But in G- Invoicing there's not going to be a need for that.
You're gonna know what you're getting IPACKED for.
SO you're going to have GT&Cs and Orders,
all supporting where that money's coming from
and where it's going to.
You're also gonna have the TFM,
how many of you are aware that there's a IPAC cut off
at the end of the month on your end?
Good, keep your hand.
How many of you follow that?
(audience)
There is a few, good for you.
I like you guys.
Alright, so G- Invoicing we're going to enforce that.
So there's no, not going to be a last minute IPAC
come then on the 30th.
We're going to enforce the three days at month end,
and five days at year end.
So if you submit performance and want to settle
on the 30th of a month, we're going to say no,
that's an accrual.
You're gonna have to accrue that.
We'll get a settlement on the next business day,
of the next month.
That's what we're going to do.
So we're going to hard enforce that.
A lack of government data standards,
you've heard a lot about the FIDS.
I told you about my bear story last time, right?
So that the FIDS is getting us talking the same language.
And a lack of central repository,
so you're scattered right now.
How many systems do you use right now to process an IPAC?
From GT&C through settlement two, three, four systems?
If not more, if I had to guess.
And it results is 21 billion differences.
I know this number has been hit over and over again.
And the putting it at more context.
I know you heard the 213 billion that Leah presented, right?
If you take out the general fund,
this is about 25% of what's left.
You take out the general fund Buy/Sell,
is the biggest player in the room,
that we need to address.
And the goal is we could address it,
the general fund gets done.
And then we make our French Geo make some tough decisions
about this as a material weak right now.
Kinda thinking we're getting really close to making them,
make that decision.
Some exists, well, I think I went one too far.
There we go.
All right, existing Buy/sell accounting policies.
So what G-Invoicing isn't doing,
it's not creating new debits and credits.
New USSGL, it's not needed.
That stuff is already out there.
The USSGL TFM Supplement
has been out there for 25 plus years.
We've had a lot of really smart people working on it.
Like Steve Riley and Andy Morison, folks on back.
we had the 6100 and 5200 revenue.
We have transaction codes to tell
you when you're going to record things.
What we don't have is the when and how, right?
The only thing that program doesn't say
is when exactly should I put that accrual in there?
But if you look at the transactions,
there are subtle hints, right?
There are subtle hints in there.
So before you accrue budgetarily,
you hit a 48 account, right?
It's obligated.
Does anybody know what that starts with?
What the title that your shelf started with.
Undelivered?
Undelivered!
What's your 49 after you delivered, right?
So that's the when and how.
So we've taken existing guidance that we'll talk about
and Brian will get a lot more detail,
a lot smarter than me at that stuff.
But so the when and how's out there.
G- Invoicing is going to enforce it
and we're going to start communicating that.
The guidance is needed for FOB point,
Delivery performance, of Goods and/or Services.
Receipt acceptance and Consistent revenue
and expense recognition.
So we had the TCs,
we tell you when it's delivered, right?
How, what guidance are we going to have out there
to get that timing right.
And that's why I will talk and FOB point,
Delivery, Receipt and acceptance and those items.
Authoritative guidance, I have very strict orders from Brian
not to dive in too much detail in here
and don't want to steal any of his thunder.
But there's existing guidance again,
so we just don't make decisions in G-Invoicing
or at Treasury, without having some guidance
with FASAB, OMB etc.
kinda steering us down the right path of our policy.
So revenue should be recognized
when services are performed
and when goods are delivered to the customer.
Pretty simple, right?
Revenue when it's delivered.
So that's the first thing we took.
SFFAS 5, an exchange transaction occurs because
both parties receive and sacrifice value.
The expense's recognized the
in the period that the exchange occurs.
Again, pretty straightforward there, right?
When goods are exchanged, when items are delivered,
you have revenues and expenses.
The trouble is, how do we communicate that.
And that's what G-Invoicing does.
And that's what we're going to connect
the dots for you here.
So an overview of the G-Invoicing solution.
You guys have heard a lot about this.
So you do your IAA within G-Invoicing,
your terms are agreed to before each partner moves on
to the next stage.
So I think Wes said on this.
So we're not going to have chargebacks,
we should have as many disagreements
because you can't proceed until you
have an agreement.
You can't just IPAC somebody and then not know about it.
You can't IPAC somebody and then not see what you deliver.
So you got to have a GT&C, we're gonna say yes,
we're good on that.
That's your umbrella, orders were exchanged
some accounting information,
we're both gonna have to agree on that.
Before performance ever happens,
you have to agree for GT&C to get to orders.
You have to agree on orders to get to performance, right?
Alright, so there's going to be agreed upon FIDS
that serve as a physical stamp
for accounting entry requirements.
So Brian's gonna jump into that.
These are the FIDS you're gonna need
to pay attention to for your accounting.
IPAC will be initiated through performance.
So we've hit on that a few times, but again,
G-Invoicing takes that out of your hands,
we're going to do it for you.
And that's a big, big benefit to agencies, I believe.
You don't have to chase those down approvals.
You don't have to submit those bulk files.
We're going to do all that,
we're going to transact with IPAC for you.
You can make an argument, why do we need IPAC?
We're thinking about that.
So there's certain things in IPAC.
So right now what we've developed is a system
that goes from G-Invoicing, it goes to IPAC
which goes to CARS.
Why not cut out the middleman?
Why don't you just have G- Invoicing and talk to CARS.
That's a path that nothing's happening there,
don't want anybody panicked.
Chris Beck said IPAC's going away.
That's not what's happened.
I'm saying think about that possibility.
Think about a world where that's possible,
because that's what we're starting to think about.
An overview, what, we've hit the slide again
a few times, a consistent theme for all of us
going through this.
But it just goes through the four stages,
and Brian's gonna go through those in a lot more detail now
coming through the what transaction events
or accounting events go with each business event.
But we had the four stages, GT&C, Orders, Performance,
then Settlement.
Three of those are done with G- Invoicing.
The fourth one's a little misleading,
because it's done on IPAC
but G- Invoicing is gonna do it for you, right?
The actual transfer gonna be an IPAC but your G- Invoicing
is gonna make that happen.
So what the program guide is going to do what Brian's
gonna walk you through.
Is each stage right there.
He's gonna walk you through each stage
and what the transaction should be accounting wise,
and kind of get a roadmap for you.
The program guide also talks all about history.
Gives you a backstory.
I like it, because our boss had incredible vision
says the document should tell a story,
not only just have the accounting transaction
to tell a story, so Brian did that.
He told a good story in there.
A true story, a story of hope, and innovation.
(audience laughs)
So that's the program guide,
and that's what Brian's gonna go over with you.
-: Thank you, Chris.
Good afternoon, everyone.
How's everyone doing today?
I'm Brian Casto.
I've been with Fiscal Service the past nine years now.
The biggest news for me this year though, was,
I got married for the first time at the age of 37,
back in April.
My amazing wife Jocelyn.
She even sent me a care package
before we left from Parkersburg.
But about this time last year,
she was thinking towards engagement
and I was dragging my feet just a little bit.
(audience laughs)
So she was dropping hints all the way
up to probably October, November.
Her birthday month rolls around, still no engagement,
the holidays are coming up, no engagement.
So, the Friday before Christmas,
I have everything planned out and ready.
I have the ring.
I've gone to her parents and grandparents
for their blessing.
I'm ready to go.
I take about two hours off work and go home.
I find these old cardboard boxes and a cordless drill.
So I spell out, will you marry me?
And I punch holes with the cordless drill
and plug 'em with Christmas lights.
So after we got home from dinner,
I got to do my best Clark W Griswold
and plug in the Christmas lights
and there it was flashing, will you marry me.
So we got engaged and married this past April.
We had a great honeymoon in Maui.
Once we got there on Thursday or Friday,
things got a little slow.
So she asked what should we do?
I said, hey, let's head to the Fish and Wildlife Agency.
They accept debit cards now.
(audience laughs)
But yeah, we had a great time in Maui.
But I guess you could say the honeymoon phase
only lasted probably
until the Monday when we got back from the honeymoon.
We were both very independent.
We had lived by ourselves for about 15 years.
So we, she has a massive pile of junk,
I've got my own junk.
The best advice I can give anyone if your wife
or your partner likes essential oils,
don't ever put those in the attic
where she can't find those.
(audience laughs)
So we learned lot's of things about each other
that first week, mostly about communication.
And Leah, Leah,
you were talking about level one communication?
Ours may have been level zero that first week.
But we learned basically,
she got up about 6:30 in the morning,
she's a school teacher,
she likes to head to the school early.
I come in about nine o'clock,
we didn't have time to talk in the mornings.
I get home at night,
and she's going off on her own to teach yoga.
So we really don't see each other until late, late
in the evening.
We needed to find a means to communicate with each other.
And maybe we needed to bridge the gap
between our own expectations and our own needs.
So Chris asked, I'm not insinuating that you and
your trading partners like a spouse but
we can we can work with it.
(audience laughs)
Chris asked us ,our SGL team, Alex Abshire, Alisa Midcap,
Regina Epperly, myself to come up with
a way to bridge the gap between the system side
and the accounting side.
So maybe you have worked in CARS and funds balance
with Treasury and like Chris said you were that person
that was always charging things back
or maybe you are on the wrong end of that.
Can you imagine now,
if you saw Alex's presentation this morning on Order up
when you have the TAS/BETC you can select from a drop down.
And you and your partner can agree that,
agree to that TAS/BETC before any funds are settled.
If you're already a CARS reporter, if not seeing Mike Davis,
but if you already are, can you imagine your TDO payments
are already reporting a TAS/BETC,
at the same time that your payments are getting dispersed
to regional Finance Center,
your deposits from OTC net
and Credit Gateway Fedwire
have the C keys so that TAS/BETC already correct.
Can you imagine how clean and crisp your
CTA process would be that.
Christie talked about not getting rid of BETC,
and she's right.
There's also as an accounting impact in CARS,
your 224, your CTA submissions are driving the MTS.
The MTS is driving the budget deficit reconciliation
that Missy Williams and group works on.
Or maybe you're just a systems,
maybe you're just a reporting accountant like me,
you've called into the ITWG calls on Tuesday,
and, you've heard talk of schema and block file uploads,
and you're just like,
how does this actually apply to me the accountant?
And one of the first things that our team found,
was like Chris said, there's no groundbreaking accounting.
Whether your agency is in Buy/Sell,
and you're selling toothpicks
or you're selling tanker trucks,
the accounting is generally going to be the same.
With a few exceptions, like a capital wise indicator,
like assisted acquisition indicator
which we'll go over.
And there's already been existing
authoritative guidance from FASAB and FASB
that's out there.
SFASS 7, and paragraph 36,
it talks about revenue recognition specifically.
And that, revenue should be recognized
as goods are delivered,
and as services are performed.
And on the private sector side FASB went in
a little deeper, after the whole
Enron mess with revenue recognition,
they came out with ASC 606.
That talked about, specific triggers,
basically around the transfer of control with revenue.
If the Seller has the right to a payment,
or the customer already has legal title of the asset,
or they've accepted significant risk
and rewards of ownership.
Then those are, triggers for revenue recognition.
So, most of the agencies would say that,
hey, we already know what entries need to be booked.
But when do we book them?
How do we book them in lockstep
with our trading partner and how?
So we saw a lot of the old data elements,
maybe you're familiar with the
minimum accounting data elements,
they were good, they served their purpose at their time.
But what's great about the FIDS that Alex and Wes and Keith
and everyone's talked about today is they do give a
physical stamp for accounting entries.
Just like your, the TFM crosswalks
that we have out on the USSGL supplement pages,
we have crosswalks that basically map USSGL accounts
to financial statement line items,
the FIDS are going to crosswalk
accounting, our G-Invoicing actions
over to specific accounting entries.
And another great thing about the FIDS
it seemed like with the majors,
there were just so many terms,
like you could have four or five different dates,
but an accountant may be like,
what date do I actually use?
But with FIDS, everything's clearly defined
and we clearly define those in the program guide.
That performance date for instance,
is the when delivery and completion actually take place.
The transaction date initiates the IPAC funds settlement.
And the accomplish date, there's a few times
the accomplish date may be different
than the transaction date.
If there's an IPAC cut off at the end of the month,
but that's the day you'll see funds settlement in CARS.
So we walk through each agency's business process
in the program guide.
And at the same time are going through the events
they're gonna complete G-invoicing
and then the accounting entries alongside this.
So just the first stage G-invoicing the GT&C stage,
you're just sharing information with your trading partner
it's a getting to know you stage,
you're citing any terms or restrictions upon
the BUY/SELL relationship,
but there's no fiscal obligations created,
there's no proprietary entries or events here at this stage.
Now the Order Stage maybe you're completing
your funding information,
you're completing verifying
the TAS/BETC with your trading partner,
you're agreeing upon delivery things
just like Alex talked about earlier this morning.
But again, no IGT BUY/SELL proprietary entries
are entered at this stage.
At some point (mumbles) even though we're not recording
any proprietary events at this stage,
the things that you're agreeing upon in the Order stage
the things that you're, the FIDS that you're agreeing to,
are setting the stage down the road
for future accounting entries.
Like the capitalization indicator,
if the transaction is going to exceed
your capitalization threshold,
or if you're advancing money,
maybe doing fund settlement at a different time,
then the revenue and expense,
or you're working in assisted acquisitions.
And also the FOB point is agreed on in this stage.
The big money stage though for accounting entries
is definitely the performance stage.
And Wes talked earlier about
the different transaction types.
Your Delivery, the customers Receipt,
Advance payments, Deferred payments.
This is where the physical stamp comes into play
and also the Accounting period,
the date wise, so the Seller will know when
those entry should be booked.
Again Wes talked about FOB source,
so I won't hit that too much,
other than the Sellers performance transaction
is driving the accruals.
You can see on this example,
this, both trading partners agree to an order
the order's approved for 20,000 bucks
and it's open for orders in June.
Well, on August the 5th,
the Seller delivers $5,000 in goods.
And so it enters the performance transaction
and delivered or performed.
Well at that time that the Seller
enters that performance transaction,
both partners should record the revenue and expense
as of that performance date of August the 5th.
A little later down the road,
the Seller goes in,
and they've the authorized user has entered that
performance transaction and G-Invoicing.
Well that's when fund settlement will occur.
And both partners should record that fund settlement
on August the 12th.
And FOB destination very similar
but the Seller is still recording accrual,
they're still driving the accrual
once they complete their performance transaction
of delivered are performed.
And this time when the Buyer enters
their performance transaction of received or accepted,
then both partners will record the cash,
the movement of funds.
So here's the first example from the program guide.
And this is just a basic vanilla
reimbursable agreement without an advance.
And the top row,
the top row of the the guide
actually shows the FIDS that have already been agreed upon.
These are, from the, they were completed during the order
and a Seller's performance transaction.
You can see the FOB point is source,
they've said that the capitalization indicator is false.
This did not exceed the capitalization threshold.
The assisted acquisition indicator's no.
Then later on the performance side,
the performance type is delivered or performed,
the Seller's already entered that
on a performance date of September 30.
So you can see the ordering agents,
the Buyer will book the expense to 6100
and they're payable to 2110.
The performing agency will book the receivable
to 1310 and the revenue to 5100.
And those will occur again
on a performance date of September 30.
And then on the accomplish day,
you'll see October the 7th.
The Buyer will credit their cash, debit the payable,
while the Seller will debit their cash
and credit the receivable.
And you can see the Intergovernmental Elimination table
at the bottom shows the impact to RC 22 and 24
in the September 2018, accounting period.
And then later when funds are settled,
you can see again, the offsetting entries in RC 22.
Let's take a look at an entry with a reimbursable agreement
with an advance.
And the unique thing about this is,
during the performance transaction,
the Seller has entered their performance type of advance
so the Buyer knows when the FIDS are entered
and at this date, they should enter a 1410 for the advance
and pre payments, credit their cash.
And the Seller will know they can debit their cash
and credit their liability.
And you can see again how those eliminate under RC 23.
Now to liquidate,
now that we have the advance already set up,
how about we take a look at the liquidation
and how that's going to get paid down.
The Seller will also enter a performance transaction
of delivered or performed.
But this time they they have a performance date
of October 31st and accomplished date of November the 7th.
So the Buyer debits the expense to 6100 and credits 1410.
The Seller debits the liability for advances
and credits the revenue.
Just one other example if you look at,
if you have the program guide in front of you
or you just want to take a look at it
when you go get back to your office.
On page 18 we talk about work in progress.
It's completed with a reimbursable agreement.
Wes talked a little bit about deferred payments.
When you've completed work
but just not ready to settle the funds just yet.
And the performance stage you'll have a performance type
of deferred payment, and the Buyer would book the expense,
credit the payable.
The performing agency would debit the receivable
and credit the revenue.
And then later on, at funds settlement,
whenever both agencies determine,
hey, at this time payment is necessary.
The Seller would enter the performance type of delivered
or performed and debit, the Buyer would debit the 2110
accounts payable in credit cash.
The Seller would debit the cash
and credit their accounts receivable.
So I'll hand it back to Chris just to talk about
some of the next steps on the accounting side.
I do want to talk a little bit about what...
(audience laughs)
Sorry (mumbles), I'm just getting some more exercise.
(audience laughs)
We did some sprints,
now we'll do some squats.
So we talked a lot about what the program guide
and G-Invoicing can do.
Keith Jarboe them many, many times has said,
G-Invoicing is not an accounting system.
So the reporting requirements for CARS, GTAS,
and other accounting systems,
they're not going to be affected by the implementation
of G-Invoicing.
But the one thing that agencies still are responsible
to verify, they have to verify the accuracy
of their transactions that go through CARS.
CARS will still be the system of record,
and they're still responsible for ADA monitoring.
So if you had planned on maybe using G-Invoicing
or even doing informal checks
of obligation balances in G-Invoicing.
It's not going to be the system of record
for your budgetary side either.
So you'd still need to refer to your sub ledger for that.
Also, there's a certain amount of transact,
one of the questions we had in the last session was
what is not G-Invoicing?
What should stay in IPAC or CARS or another fund settlement?
Well, non expenditure transfers right now,
they should be taking place and CARS already and not IPAC.
But you just want to remember your NETS
should be taking place in CARS not G-Invoicing
and Fiduciary transactions like investments and borrowings
will stay out of G-Invoicing,
maybe your RITS or your TRACS as well.
Grants, pension, loan and other non Buy/Sell activity
is gonna to be outside of the scope of
G-Invoicing right now.
So, now I handover to Chris.
-: I promised some folks to talk about accruals, right?
(mumbles)
Alright, I didn't do it very well.
I want to talk about accruals just for a second,
before we get into some next steps.
So you guys saw the accounting entries there,
that Brian had.
FOB point's a big item on that.
So the question we do get is accruals,
lots of question on accruals.
Some of this has kinda been finalized.
So take all this with a grain of salt,
that this is a process, right?
So I'd rather share information and get your feedback,
then get a solution out there
and then you guys disagree with it.
So there's basically three ways
to get accruals in the books,
to communicate it in G-Invoicing.
The first type is what I hit on earlier.
So if you submit a performance transaction,
on the last three business days of the month
or five business days of year end.
I said, we're not gonna let you settle that,
till the next business day.
That's gonna be an accrual.
That's accrual bucket number one,
if you're thinking this through.
If you're in Wes' session last, well,
when was last one, was it?
One, at one o'clock, there you go.
One o'clock.
There's deferred payment, right?
(laughs)
So that's work I've accomplished
but I'm not going to build for you.
So maybe you have some type of agreement,
hey, once I get 25% of this work done,
we're going to bill you,
let's say at 10% of the way though
you have a $10 million done of it,
and you want to put that in G- Invoicing.
Hey, I've gotten 10 million done,
I'm not going to bill your right now,
but I've gotten $10 million worth of work done.
You can go with a deferred payment.
So that's bucket number two, right?
Bucket one, month end we don't let you settle.
Bucket two is deferred payment.
And the third bucket, which if you're like me,
this happens a decent bit during the reporting modal.
So you get to the first or second business day of the month.
You realize we delivered this thing last month,
we should had an accrual, right?
We gotta shake, we ready to be done.
Anyways, so the third bucket is,
we're going to give you an opportunity
to submit a performance transaction.
Let's say it's on October 2nd in this example.
October 2nd, I go in there,
but I put in there , hey, I actually delivered this on 9:30.
So I delivered it last month,
you should have an accrual for this.
So we're gonna let you do that,
we're gonna give you a set number of days to do that.
And Bill's gonna probably want to punch me here.
But we're, we're working on that,
and how we're going to develop that.
So we're going to give you three buckets.
A way to communicate accruals
in a set window, after the month in, right?
The other one is things we're not gonna let you settle
month end and in deferred payments.
So those are the three accruals amounts.
Once we have those buckets,
our mad scientist Bill is gonna develop
a report that's going to communicate those accruals to you.
So it's going to capture those three buckets.
It's the payments that month and then settle,
so you have to accrue.
It's your deferred payments as of month end.
And it's any items you put in
at the beginning of the next month,
that you said you delivered the prior month, right?
Because that happens a good bit.
So those three buckets,
you're going to get a report
that has those items in there in some shape or form,
no pressure Bill, but that's what we...
Man: I've got a question.
-: No.
Man: You've got a question from the other end.
-: This, you want now?
-: Do you need to have those three things separate?
Or is it okay to lump them all together?
-: Really, separate.
Man: (mumbles)
(audience laughs)
-: You guys are making Bill's arguments.
That's not gonna help me.
Well, that's gonna make it complex,
but we're gonna do something or do it.
Because you should have that capability.
And we're going to have windows on that too.
So what I mean by that is,
you're not going to be able to go in there October 20th,
and say, delivered something 9:30,
at least not in G- Invoicing.
You're not going to do that.
I understand you may get in the middle,
you're out and you need to do some type of accrual.
You're going to have to capture that
and we'll outline that the TFM in the future,
but it's not going to be in G-Invoicing.
In G- Invoicing and we're gonna have
set parameters for for that.
Of when you can communicate that accruals.
Question part, went up to the questions part,
but we're gonna do this.
(audience laughs)
Alright.
-: Will your SASAD 18 cover (mumbles)?
-: On, we will, I'll have to defer to Jane
or someone that a SAS 18 cover
something like that, Jane?
-: (mumbles)
-: Yeah, we'll test the system controls.
So the question was, will your SSAD18
cover the controls on the accruals?
And the answer I believe from Jane was yes.
-: Will there be any exceptions allowed to go to a accruals?
Or will you enforce those in accruals, those buckets?
-: So we're going to enforce those buckets in G-Invoicing,
we're going to enforce that.
And it's not gonna be way based on the guidance we have,
It'll be on there.
So we're going to enforce it.
But there is exceptions.
There's always an exception, right?
So the exception is your order comes in,
knocks your door October 25th.
And says you have a $5 million accrual
you should have posted.
I have a feeling most of you are going to go ahead
and record that, right?
So that will be outside the system though.
So before we go, I'll come back to you,
I'll come back.
So this next steps here, so we can get through this.
The program guide is living document,
changes to the FIDS,
new G-Invoicing systems specifications,
can necessitate changes.
So I could tell you right now
the program guide's gonna change that
based on the accruals.
It's definitely gonna changed.
We don't capture all ways we're gonna do yet,
but we're going to put it in there for you guys.
That's not the right one.
So just like the question Bill just asked,
that's the feedback we're going to need from you guys.
And I want feedback only from a system perspective
and things we can do there better,
which we're doing a pretty good job of capturing.
But even with the program guide,
there's something with the
program guide that could be better, let us know.
We're working with OMB update guidance.
So that's from assisted acquisition standpoint
and from a budgetary standpoint.
I'm coming back, we've got good questions right here.
Changes to this guide,
if you want to get changes to this guide.
There's two ways to get, ITWG and the USSGL RC meetings.
Alright, now it's officially time for questions.
-: What if you underestimated the IAA at the beginning
and now you get a service
that you don't have enough funds for?
-: You'd have to (mumbles) for that.
-: (mumbles)
-: Yeah, so you can do modifications in the system.
Now, you have to go through the approval process.
I believe again,
Wes correct me if I'm saying anything wrong.
I saw lots of hands some, gotta work back.
-: You mentioned that we won't be able to just IPAC anybody.
Have to use G-Invoicing, so when we, when this go,
we gotta a G-Invoicing
and when we come back to the Treasury conference,
we have to use G-Invoicing to make the payment
for the conference.
(audience laughs)
-: Very good question, really good question.
So this brings in to play some feedback we've gotten.
So this is basically what he's describing.
At least this is the way I'll describe it,
you let me know if I'm wrong, is micro purchases.
So OMB has issued guidance
to what micro purchases are, alright?
So right now G-Invoicing our mandate,
everything Buy/Sell has to be in there.
And that's what our policy is right now.
We are looking considering some exceptions
and some enhanced functionality.
And one of the items on there is micro purchases,
like should items under 3500 or 10,000,
I think it would be just changed to 10,000.
So anything under 10,000,
really be in our current state of G-Invoicing?
Probably I mean, maybe, or do we say is that excluded?
G-Invoicing, Bill's just gonna love me
at the end of this,
down the road, down the road?
Maybe we build out something that
can handle micro purchases.
That's not as rigorous.
That's just an option that's out,
it's not a direction we're going,
but it's a good question.
So right now the answer is yes, they would be in there.
I'm not saying it's going to be the answer
when you come back to the conference.
-: (mumbles)
(audience laughs)
-: How long you've been gone?
-: (mumbles)
-: Well, good for you.
I'm trying to retire but they won't let me.
-: (mumbles) why would we want to allow additional accruals
at the close of the month?
-: So you gotta have to have that information.
So you do accruals now at your end.
-: (mumbles)
-: So this goes back to quarterly scorecards.
So we want to quarterly resolve those differences.
So that's the logic there is to get accurate information
as a certain point in time because when you submit
in GTAS, I'll almost guarantee
an 11 accounting period that
you gave the look those guys,
you're going to have a 2110.
So we want G-Invoicing to be mirrored up with that
and have that accrual in there
and it's just, I mean,
I know it's a little bit of a hassle maybe
but if it's March 1st, and you deliver something
on February 27th, it should be accrued.
I understand.
-: How come budgetary entries are unaccounted for
in your program guide?
-: Really good question, did Tracy give you that question?
Is she in here?
(audience laughs)
So in the program guide, we do have TC codes, right?
So in those TC codes,
there are budgetary issues associated with that.
The problem with budgetary, it's not a problem,
it's a, opportunity...
(audience laughs)
It's an opportunity there.
So there's different type of funding, right?
You have no year funds, single year funds.
So if you ever read a USSGL scenario that we have,
we captured all the budgetary in there
and what we have to do for that is lay out a very specific
set of circumstances and what the entries are.
Our goal here with this guide,
was to give you a backstory on G- Invoicing
and give you the significant
accounting event from a propietary side.
If we add budgetary,
this thing's gonna blow up.
Just saying, I'm not saying it won't be added,
but when we decide, if we decide we got add budgetary,
you're going to turn a 20 page document
into a 40 page document overnight.
Okay, but good, very good question.
-: To add on to what she was saying earlier,
just feedback, pain point for us,
when we close our books on a monthly basis.
Hopefully you guys will really think about how long you're
going to make that window.
And then I have a question,
for canceled funds.
so when they make these agreements
on which GTAS's are going
to be hit, once those funds cancel
if the , if it hasn't been settled,
how will that work in G-Invoicing?
-: So you have two questions there.
Basically the, she's bringing up a good point.
We talked about ITWG last time
and I think in June or July
Wes or Alex, we asked that survey question.
We asked agencies, how long after month end,
do you close your books?
Two days, mean that's quick.
Alright, so we got a wide range of answers there,
a really wide range.
So we completely understand that, right?
Because you don't want them putting the accruals in
if your books are closed,
because that's gonna cost them topside JVs for you
and some unnecessary work.
So what we're thinking here,
and this is tentative,
and rough and not official policy from Treasury,
this is Chris Beck's personal opinion.
So listen, what we're thinking
it's three business days, month end,
and five business days year end.
We have some agencies
that requested be open even longer than that.
But we understand the need that we need to get
these accruals in a very timely fashion.
So that's tentative, what we've thrown out there.
And by thrown out I mean, that's me
telling you that just now
because I don't think we've ever shared that.
This is where I get in trouble with these things.
I just say what we're doing.
Any other questions?
Questions?
Oh, the canceled funds?
You didn't have that question, didn't you?
So my feedback that right now, as of right.
If you tried to settle a canceled fund
on the last day of year end,
and it won't settle until the next business day,
so probably not make it right.
So I would encourage you,
if you have a canceled fund to do it,
by September 25, or whatever,
and make sure the funds get out.
That would be my immediate feedback.
I know that's tough to do sometimes,
and I get that, but that's our feedback right now.
Any other questions?
He's retiring, he don't care
if everybody gets to go home or not.
He's gonna keep asking questions.
-: On the accruals, when we get the accrual report,
is G-Invoicing on a book anything at CARS,
or we just do that and then send it through GTAS.
-: CARS cash, right?
So yeah, so it won't book anything.
The normal settlement procedures would take place.
So if you say on this October 2nd,
I have an accrual September 30th,
you're gonna see it in CARS of October 2nd.
You're gonna have the real time settlement still.
And for the ones we held at month end,
It'll be the first business day
of the next accounting period.
So if it was September 30th, October 1st, it was settled.
Wes, do you still have a question, I guess?
So I do, I'm interested to,
we have our contact information on this last slide.
I'm really interested on folks provide me feedback
on why you need them three separate, for the accruals.
So we talked about the three buckets.
And that's just my own personal curiosity.
And I'm willing to work with folks, I know I'm wrong a lot,
but I'm curious what the business reason for that would be.
So if you have any suggestions on that,
please reach out to us, any three of us,
with why that would be needed,
why we couldn't give you one report.
One report makes it a lot easier
on Bill and a lot makes it a lot easier for me
to sell Bill on this.
So just FYI.
(laughs)
Any more questions?
Yeah.
Woman: Is there a reversal of the accruals?
Chris: Reversal of the accruals was the question.
Brian: So we're talking to that now.
We're talking to this now.
However, the way that we're looking into it,
if you, your bounces would stay on each month
until you reverse them out.
That's the current, we're looking at currently.
So if you have $100 deferred payment
to get that off the book,
you have to the deliver perform against that
or make it a reversing entry against that
deferred payment to run that down.
If you don't do anything I guess
it's going to carry on to the next month.
That's what we're looking at too currently.
Chris: I'll say on the whole accrual discussion,
this is all tentative, right?
Treasury is just now diving into this,
we got our three buckets kind of outline
and some different ideas.
But we're far from a finalized product on that.
So any feedback you have on that get on ITWG,
let us know and we'll try to incorporate that.
I want everybody to go catch the metro,
get home on a decent hour.
Thank you and have a good evening.
(audience claps)