PCS Update PERSPAY Conf. Aaron Klimek Director PCS Variance Component PERS 705

1. PCS Update PERSPAY Conf. Aaron Klimek Director PCS Variance Component PERS 705 Millington, TN September 20, 2012

2. Agenda • Current Issues • PCS Segment Audit Assertion • Recent Message Updates

3. Current Issues • Manually Created PCS Orders • BUPERINST 7040.6/.7 • Navypcsorders@navy.mil • Currently receiving approx 65% . • Additional problems with current process • Solution • PCS Roundup Awaiting Funding est. FY13 with possible deployment in FY14 • Discussions underway for an interim process.

4. Current Issues cont. • Disbursing Issues • Continued data entry errors • Mixing of lines of accounting • Solutions • Continued training • WINIATS System improvements • New unmatched disbursement and un-liquidated advance reports sent to the disbursing offices.

5. PCS Audit Assertion • PCS Travel and HHG began the financial improvement and audit readiness efforts in late 2011 as part of the program’s goal to produce financial information with greater accuracy, reliability, and accessibility. • Originally, PCS Travel and HHG were aligned under two separate segments: Travel with Transportation of People (ToP) and HHG with Other Contractual Services (OCS). • PCS Travel and HHG is now part of the same separate work stream with Transportation of Things (ToT) that is aligned with SBR’s assertion date of September of 2013.

6. PCS/TOT/HHG Audit Assertion Timeline • FMO has prescribed an assertion date for each individual business segment

7. PCS/TOT/HHG Audit Assertion Timeline • Discovery : July 2012 – Feb 2013 • Round 1 Controls/KSD Testing : Jan 2013 – Feb 2013 • Corrective Action : Mar 2013 – May 2013 • Evaluation : May 2013 – Aug 2013 • Round 2 Controls/KSD Testing : July 2013 – Aug 2013 • Assertion : Sept 2013

8. Types of Testing • Audit Readiness preparations to date have focused on two different types of testing: Transactional (Substantive) Testing Control Point Testing

9. PCS Travel Controls Testing Example BUPERS will obtain the following source documentation: • Voucher (1351-2) • PCS Travel Orders • Receipts (for all lodging expenses and for other reimbursable expenses>$75) • Travel Voucher Summary

10. PCS Travel Controls Testing Example Attributes Tested: 1. Validate the PCS Order used on the claim is stamped original 2. Validate the Name, Rank, and last 4 of the SSN on the PCS Order match Blocks 2-4 on the 1351-2 3. Verify the "Total Number of Dependents" on the Page 2 match the "Dependents" listed in Block 12 of the 1351-2 4. Verify the locations listed in Part One of the PCS Order correspond to locations listed in Block 15 of the 1351-2 5. Validate the "EDA" month on the PCS Order is the same as the arrival month in Block 15 of the 1351-2

11. PCS Travel Controls Testing Example Attributes Tested: 6. Verify the LOA on the PCS Order matches the LOA on the Travel Voucher Summary 7. Verify the SDN on the PCS Order matches the SDN on the Travel Voucher Summary 8. Verify the amount listed in the sample selections matches the "Due Employee" amount on the Travel Voucher Summary 9. Verify on the 1351-2 in Block 18 that all items with a cost of $75 or more, or any item described as: Hotel Sales Tax, Hotel Room Tax, or Lodging have a receipt regardless of the amount. 10. Confirm the Examiner and Auditor initials are annotated on the Travel Voucher Summary

12. Recent Message Updates • Ten Day Rule • As outlined in BUPERSINSTR 7040.6/7040.7 the requirement to send all manually prepared Active duty and Reserve PCS orders to NAVYPCSORDERS@navy.mil still exists. Orders must be submitted to the mailbox immediately upon issuance to ensure compliance with Financial Management Regulation Volume 3 Chapter 8 080301A "Ten-Day Rule. Obligations shall be recorded in the official accounting records at the time a legal obligation is incurred, or as close to the time of incurrence as is feasible. In no instance shall obligations be recorded any later than 10 calendar days following the day that an obligation is incurred"

13. Recent Message Updates • Use of the Proper Accounting Data and USNR code • All FTS Separations, FTS transfer to fleet Reserve, or FTS inactive Reserve retired listorders should specify USNR in the appropriate block or field.2.  Block 3 of NAVPERS 1900 should specify "USNR“ for FTS separations.3.  Ensure LOA includes FTS appropriation, subhead, and JON

14. Recent Message Updates • Creation of Transportation Accounting Code (TAC) on Manual Orders The third position of the Navy BUPERS TAC is NO LONGER THE MONTH THAT THE ORDER IS WRITTEN First position = N Second position = Purpose id Code Third position = “A” for active duty, “R” for reserve Fourth position = FY in which the order is written i.e written in FY12 = “2”

15. Points of Contact • Aaron Klimek Direction PCSVC • Phone 216-204-7957 • Email : aaron.klimek@navy.mil • Rick Ybarra Accounting Supervisor PCSVC • Phone 216-204-7960 • Email : rick.ybarra@navy.mil • Susan Starrett Analysis Supervisor PCSVC • Phone 216-204-7961 • Email : susan.starrett@navy.mil

16. Questions