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DFARS CASE 2003-D009 Payment and Billing Instructions

DFARS CASE 2003-D009 Payment and Billing Instructions. Roseann Hurst Contract Pay Systems Branch Commercial Pay Business Line Defense Finance and Accounting Service March 2005. Presentation Outline. Background Local Clause Review Oldest Funds First Example Local Clause Problems Purpose

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DFARS CASE 2003-D009 Payment and Billing Instructions

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  1. DFARS CASE 2003-D009Payment and Billing Instructions Roseann Hurst Contract Pay Systems Branch Commercial Pay Business Line Defense Finance and Accounting Service March 2005

  2. Presentation Outline • Background • Local Clause Review • Oldest Funds First Example • Local Clause Problems • Purpose • Major Changes • Benefits • Additional Information Integrity - Service - Innovation

  3. Background • Working group established • Conducted review of local payment clauses • Provided recommendations Integrity - Service - Innovation

  4. Background: Local Clause Review No clear guidance on constructing payment instructions resulted in numerous non-standard clauses a. The paying office shall ensure that the voucher is disbursed for each ACRN in sequential order beginning with ACRN AA. Integrity - Service - Innovation

  5. Background: Oldest Funds First Example • Using the “oldest ACRN/oldest funds first” citation how would you pay this? AA 97X4930.5CK0 01 O.C. 26 S33150 AB 17 4 1810 A1GW 312 SA SWS 0 068342 2D 000000 GW038 000 0000 AC 57 43600 294 ETL7 675011 000000 59200 35910F 503000 F03000 AD 21 42020000046N6N7HP4230122516 S01021 1st AD 21 42020 (O&M 1-year funds) 2nd AC 57 43600 (RDT&E 2-year funds) 3rd AB 17 4 1810 (Procurement 3-year funds) 4th AA 97X4930 (Revolving No-year funds) Integrity - Service - Innovation

  6. Background: Local Clause Problems • Use of numerous non-standard clauses results in… • Manual handling of payment requests • Increase in payment error rate • Increase in payment processing time • Increase in operating costs Integrity - Service - Innovation

  7. Purpose • Modify DFARS to implement working group recommendations to include a standard set of payment instructions that… • Will reduce the need for local clauses • Can eventually be programmed into DFAS payment systems • Incorporate several noncomplex DFARS transformation proposals Integrity - Service - Innovation

  8. Major Changes • Requires that payment instructions be provided for all contracts that… • Include contract line items funded by multiple accounting classification citations, • Contain cost-reimbursement line items, or • Authorize financing payments • Improves contract payment instructions by providing a standard list the contracting officer can select from for inclusion in section G • Relocates information to the new DFARS companion resource, Procedures, Guidance, and Information (PGI) • Establishes a new billing instructions clause for contract financing and interim payments under cost-reimbursement service contracts Integrity - Service - Innovation

  9. Benefits • Eliminate guesswork utilized today • Reduce prevalidation delays/rejects • Reduce reconciliation effort • Reduce the dollars provided due to cancelled funds and interest • Facilitate Electronic Processing Integrity - Service - Innovation

  10. Additional Information • Federal Register Notice and Rule Verbiage http://www.acq.osd.mil/dpap/dfars/changes.htm • Procedures, Guidance and Information (PGI) http://www.acq.osd.mil/dpap/dars/pgi/ • DFARS Transformation http://www.acq.osd.mil/dpap/dfars/transf.htm Integrity - Service - Innovation

  11. DFAS Your Financial Partner@Work

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