Chief Financial Officer Issues, News, and Information

(Posted 1 Feb)  Click here to download the Commander's Guide to CFO Issues (MS Word 97 Document)
(Posted 8 Feb)  Link to USACE CFO Site - Tools, reports, information.  Click here ===> USACE CFO Site
(29 Jan 99) Receiving reports
(7 Jan 99) USACE policy - Accountability Standard Business Process
CELRD policy and status
US Army Audit Agency Findings and Recommendations (& commentary on CELRD status)

Receiving Reports (posted 29 Jan 99)

From: Smith, Jimmie L HQ02
Sent: Thursday, January 28, 1999 7:34:08 AM
Subject: FW: APPMS Instructions for Conversion

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Some districts are bypassing the receiving report requirements in CEFMS/APPMS interface and using codes such as "D02" (remote buy) or "D03" (found on post) to process receipts and bar code property. Previously, we have sent instructions explaining that failure to process receiving reports with the CEFMS/APPMS interface, causes property books to be non-CFO compliant. It also causes open requisitions in CEFMS and ultimately creates a mess.

The good news is it can be fixed. and must be corrected before conversion of APPMS to Oracle. If you think you have a problem with the receiving reports and bartag interfaces, please contact our Help Desk at 202-761-4516. We will provide instructions that will explain how to correct your property book.

If you need additional assistance, please contact Jimmie Smith (202-761-0852), Belinda Camp (202-761-0936) or Jan Mathis (202-761-5270).

Excerpt from Ray Urena message, HQS USACE Logistics, 7 Jan 99....

....As we work toward receiving an unqualified audit opinion from the Army Audit Agency in FY99, the sharing of information between Resource Management and Logistics elements is essential. We all need to have a clear understanding of what is expected and who is responsible for key actions. I have attached a copy of an information paper (below) that provides additional clarification on this matter.

The key to success from the logistics perspective is the strict application of the Standard Personal Property Accountability Business Process Procedural Guidance that was promulgated by the Director of Logistics in a memorandum, CELD-ZA, 14 Apr 98, subject: Personal Property Accountability Standard Business Process.

Please let me know if you foresee any impediments that will preclude your command from becoming CFO complaint by the 30 Sep 99. If you do, how can we help?

Ray Urena

CFO ISSUES - FY 1999 AUDIT

Issue: Reconcile Personal Property

References: 

    CELD-ZA memorandum dated 14 April 1998, subject: Personal Property Accountability Standard Business Process.

    CERM-F memorandum, 24 Nov 98, subject Chief Financial Officers (CFO) Act Compliance Issues

Description: This issue involves a comprehensive approach that relies on three primary elements: (1) use of Corps of Engineers Financial Management System (CEFMS)/ Automated Personal Property Management System (APPMS) property management and accountability process; (2) 100 percent annual physical inventories using bar code scanners; and (3) on-site independent quality assurance reviews performed by Property Book Officers (PBO) and Commanders under Army's Command Supply Discipline (CSDP) and Equipment Usage Management Programs. Description: This issue involves a comprehensive approach that relies on three primary elements: (1) use of Corps of Engineers Financial Management System (CEFMS)/ Automated Personal Property Management System (APPMS) property management and accountability process; (2) 100 percent annual physical inventories using bar code scanners; and (3) on-site independent quality assurance reviews performed by Property Book Officers (PBO) and Commanders under Army's Command Supply Discipline (CSDP) and Equipment Usage Management Programs. Description: This issue involves a comprehensive approach that relies on three primary elements: (1) use of Corps of Engineers Financial Management System (CEFMS)/ Automated Personal Property Management System (APPMS) property management and accountability process; (2) 100 percent annual physical inventories using bar code scanners; and (3) on-site independent quality assurance reviews performed by Property Book Officers (PBO) and Commanders under Army's Command Supply Discipline (CSDP) and Equipment Usage Management Programs.

Requirements for Compliance:

Standard: When the CEFMS/APPMS business process is used to acquire, receive, record, and activate property on both the property book and the financial records, bartag data are recorded to the CEFMS subsidiary ledger for property, the Asset Cost Management tables. Resource management offices must ensure that the total costs in the CEFMS Asset Cost Management tables agree with the values in the general ledger, accounts 1700 1800, and 1900. Processes must be in place to review the CEFMS RECONAST report on a monthly basis, research out-of-balance conditions, and initiate immediate corrective action; to ensure that records are in agreement for the annual APPMS to CEFMS CFO reconciliation. Standard: When the CEFMS/APPMS business process is used to acquire, receive, record, and activate property on both the property book and the financial records, bartag data are recorded to the CEFMS subsidiary ledger for property, the Asset Cost Management tables. Resource management offices must ensure that the total costs in the CEFMS Asset Cost Management tables agree with the values in the general ledger, accounts 1700 1800, and 1900. Processes must be in place to review the CEFMS RECONAST report on a monthly basis, research out-of-balance conditions, and initiate immediate corrective action; to ensure that records are in agreement for the annual APPMS to CEFMS CFO reconciliation. Standard: When the CEFMS/APPMS business process is used to acquire, receive, record, and activate property on both the property book and the financial records, bartag data are recorded to the CEFMS subsidiary ledger for property, the Asset Cost Management tables. Resource management offices must ensure that the total costs in the CEFMS Asset Cost Management tables agree with the values in the general ledger, accounts 1700 1800, and 1900. Processes must be in place to review the CEFMS RECONAST report on a monthly basis, research out-of-balance conditions, and initiate immediate corrective action; to ensure that records are in agreement for the annual APPMS to CEFMS CFO reconciliation.

Field Action(s): The districts/divisions/labs must comply with the guidance cited in the referenced documents, as well as the findings and recommendations from the FY 1998 CFO status meeting held in Millington, TN, 19-20 Aug 1998. Field Action(s): The districts/divisions/labs must comply with the guidance cited in the referenced documents, as well as the findings and recommendations from the FY 1998 CFO status meeting held in Millington, TN, 19-20 Aug 1998. Field Action(s): The districts/divisions/labs must comply with the guidance cited in the referenced documents, as well as the findings and recommendations from the FY 1998 CFO status meeting held in Millington, TN, 19-20 Aug 1998.

HQUSACE Actions: CELD-ZA places special emphasis on both implementation and results of the CG memorandum of 14 Apr 1998 during future audits and inspections at every Command level. CERM-F emphasizes the review and correction of the CEFMS RECONAST reports. HQUSACE Actions: CELD-ZA places special emphasis on both implementation and results of the CG memorandum of 14 Apr 1998 during future audits and inspections at every Command level. CERM-F emphasizes the review and correction of the CEFMS RECONAST reports. HQUSACE Actions: CELD-ZA places special emphasis on both implementation and results of the CG memorandum of 14 Apr 1998 during future audits and inspections at every Command level. CERM-F emphasizes the review and correction of the CEFMS RECONAST reports.

Milestones: 30 Jun 1999 for RECONAST report reconciliation. Milestones: 30 Jun 1999 for RECONAST report reconciliation. Milestones: 30 Jun 1999 for RECONAST report reconciliation.

Estimated Completion Date: 30 Sep 1999 for CFO compliance Estimated Completion Date: 30 Sep 1999 for CFO compliance Estimated Completion Date: 30 Sep 1999 for CFO compliance

USAAA POC: Joseph Bentz, (202) 761-5272USAAA POC: Joseph Bentz, (202) 761-5272

US Army Audit Agency Findings and Recommendations

RECONCILIATION

Issue:  During their audit of the FY91 Financial Statements, GAO found that the Corps' personal property book (capitalized items) did not support the value of property, plant and equipment recorded in the general ledger.  In their audit of the FY 93 Financial Statements, USAAA confirmed the GAO finding and in addition detected several other problems related to property accountability.

How to validate Compliance:  Review the reconciliation documentation maintained in RM and/or LM to verify that a reconciliation was performed within the last twelve months.  Verify that the capitalized bar codes in the APPMS property book were reconciled to the personal property bar codes in the CEFMS asset cost table.  Review the CEFMS reconast report to verify that the varience column contains zeros for the personal property category codes.  Refer to the document entitled "Using the Asset Cost Table Reconciliation Report" if necessary.

USAA Report Reference:  SR 94-481, 30 Jun 94, FY 93 Financial Statements-Civil Works

USAAA Fix:  USAAA made several recommendations to fix the property accountability problems.  One of the recommendations was to complete the reconciliation of the property book (subsidiary ledger) to the general ledger.

USACE Status:  In April 1998, CELM issued a standardized personal property business process.  This standard process was to be implemented throughout the Corps in FY98.  IAW a CEAO Memorandum for Record dated 31 Aug 98, the property book and general ledger reconciliation process should be a joint effort between LM and RM with RM taking the lead.  In this process, the barcodes for the capitalized property on the property book should be reconciled to the property ID's in the CEFMS asset cost table.

CESWD Fix:  The personal property reconciliation process should be a joint effort between LM and RM.  The capitalized bar codes in the APPMS personal property book should be reconciled to the personal property bar codes in the CEFMS asset cost table on a anual basis NLT 31 August of each FY.

Commentary on CESWD Status 

Reconciliation between the property book and the financial records is not being consistently accomplished.  On occasion, several districts have erroneously reported successful reconciliation, and follow on audits/inspections have revealed that reconciliations had not been performed, and that in some cases, hand receipts had not been inventoried in as long as five years.  Annual evaluation statements from District Commanders did not consistently reveal these CFO issues and weaknesses.

	Nashville has developed a semi-automated reconciliation process.  Follow the link at left to the "Reconciliation" page.
	See the Standard Business Process for Property Authorization Documents (PAD).  Follow the link at left to the "PAD" page
	Several districts are performing interim (monthly, bi-monthly, or quarterly) reconciliation.  This approach assures that they will never be guilty of failure to perform their required annual reconciliation.

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