Agenda

1. First Things First – The ReconciliationAGA GWA WorkshopApril 21, 2004Panel:Channing Monti, Checkfree CorporationJohn Scornaienchi, Grant ThorntonGreg Teets, Federal Emergency Management Agency

2. Agenda • Why is it an issue? • Reconciliation Best Practices • Key Reconciliations • Panel Discussion

3. Why is it an issue? Problems Reported by Auditors for Fiscal Years 2000 through 2002

4. Establish and adhere to cutoffs Reconcile and analyze on a monthly basis Eliminate post closing adjustments Close the books one time Use SGL and FACTS attributes to full extent Keep global view on transactions – understand dependencies and relationships Reconciliation Best Practices

5. Reconciliation Challenges • Standard and repeatable procedures • Effective software tools • Analytical skills and resources • Adherence to established internal controls

6. Key Reconciliations – FBWT - FEMA • Types of appropriations • Annual • Multi-year • No-year • Working Capital • Revolving • Credit Reform • Trust • Transaction volumes • Over 5 million per year • Over 40 Treasury symbols

7. Key Reconciliations – FBWT - FEMA • Key Ingredients • Treasury • Agency • Challenges

8. Treasury Source Data Input Agency Source Data Input • Interface Transactions: • Deposit Ticket (SF215) and Debit Voucher (SF5515) data and similar agency approved forms provided through CA$HLINK • Disbursing Office Transaction data, (check, ACH, payments, etc.) provided through GOALS. • On-Line Payment and Collection (OPAC) System data provided through GOALS. • Non-Expenditure transaction data (appropriation warrants, adjustment warrant & appropriation transfers (SF1151) provided through GOALS. • USDO data provided by the Department of State in form of a Voucher Audit Detail Reports (VADRs). • Direct Data Entry Transactions: • Courtesy payment and receipt transactions reported by other agencies, e.g., NFC payroll transactions. • Agency Journal Voucher transaction data. CompareProcess • Interface Transactions: • Standard General Ledger Account 1010 ,Fund Balance with Treasury ReconciliationOutput Reconciling Differences • Timing Differences – NO Adjustment RequiredAccounting Month Posting Differences – Form 6652 Statement of Difference items for Deposits & Disbursements. • Posting Differences – Adjustment Required • Variances between amounts posted to Treasury Forms 6653 Appropriation & Fund Accounts and 6655 Receipt Accounts from agency Statements of Transactions and transactions posted to Agency SGL 1010 Account – Statement of Transaction Adjustments. • Variances between deposit and disbursing transaction confirmation month reported by agencies on SF224, Statement of Transactions and depositary & disbursing offices Transcripts and Statements of Accountability. Key Reconciliations – FBWT

9. Treasury Financial System Key Reconciliations – FBWT Technical Architecture Oracle Database Standard Reports Extract OLAP/Ad-hoc Transformation Financial Extract User Applications

10. Key Reconciliations – Other • UDO and AP • Intergovernmental Activity • Suspense

11. Panel Discussion and Questions