In Reply Refer To:

FWS/ABHR-PES 021227

Memorandum

To: Service Directorate

From: Director

Subject: Ensuring the Accuracy of Activity Based Costing (ABC) Coding

In the Department of the Interior's Plan for Citizen-Centered
Governance, the Secretary outlined a vision for efficient and effective
program management that implements the President's Management Agenda. As
such, the Secretary required all bureaus to implement a performance
based management system whose cornerstone for integrating cost to
performance rests on Activity Based Costing. The foundation for
implementing management improvements as well as for making future
budgeting decisions will soon be based, in part, on the U.S. Fish and
Wildlife Service (FWS) work activities performed by Programs and Regions
within FWS. For this reason, ensuring accurate coding of FWS work
activities is important.

Effective **July 1, 2005**; the start of the fourth quarter, FFS
transactions containing invalid FWS work activity codes will be held in
an ABC clearing account for review. An invalid FWS work activity code
will be designated in FFS as the ABC code "XX". The Office of Planning
and Evaluation recommends that all transactions of more than \$500
containing the invalid ABC code (XX) should be corrected. Further, the
total dollar amount of the transactions held in the ABC suspense account
should not exceed 1 percent (0.083 percent on a monthly basis) of the
Regional Program's allocation for each FFS subactivity.

Transactions still held in the ABC clearing account at the end of each
quarter will not be driven in the ABC model for reporting purposes.
Additionally, valid, but inaccurate ABC codes will be driven into the
ABC model for reporting purposes. These two events (missing data and
inaccurate data) may have adverse effects on the responsible
organization when the data is used for budgeting decisions and
management improvements.

To avoid these adverse effects, the responsible organization will be
held accountable for correcting the FWS work activity code "XX" in FFS.
Valid, but inaccurate codes recognized after submission of labor or
non-labor transactions should also be corrected in FFS*.* Attachment A
provides detailed information on coding and correcting invalid or
inaccurate codes.

For questions regarding this guidance, please contact Kathy Tynan at
703-358-2088 or

Kevin O'Brien at 703-358-2089. For questions on the default ABC codes in
FFS, please contact Chris Jensen at 703-358-2047 or Tom Angus at
703-358-2182.

Attachment

cc: FWS/BPHR-PES/Surname

FWS/Directorate Reading File

FWS/BPHR-PES/KTynan:sls:05/18/05:703/358-2091:c:\\mydoc\\PES Stuff\\RDS
ABC Coding.wpd

Revised:

cc: FWS/BPHR-PES/Surname

FWS/Directorate Reading File

FWS/BPHR-PES/KO'Brien/BFearn:sls:06/07/05:703/358-2091:c:\\mydoc\\PES
Stuff\\ABC Code Memo v8.doc

H**ow to Correct Errors on ABC Reporting in FFS**

Correcting **invalid, blank, or inaccurate** FWS work activity codes
within the transactions in the Federal Financial System (FFS) is an
important step in ensuring that the data is accurate, and complete. An
**invalid** FWS work activity code is a code that is not on the current
FWS activity dictionary listing. A **blank** FWS work activity code
means that no code was entered. An **inaccurate** FWS work activity code
means that the code entered is a *valid* code, but the code does not
properly represent the work done. **Inaccurate** FWS work activity
coding errors occur due to data entry errors and/or the FWS employee
miscommunicating his/her work on the T&A worksheet or non-labor
expenditure document.

The Reporting Category (RPTG) field within FFS records the Activity
Based Cost (ABC) code for each transaction. If the reporting category
field is left blank or cannot be read from the interface of a subsidiary
system to FFS, FFS will use the default ABC code that has been assigned
for that job number in the DVAL table. Service organizations should
ensure the ABC codes assigned to their FFS job numbers are accurate for
the related work activity. If the FFS job number has multiple work
activities, we recommend creating a new FFS job number(s) to isolate one
work activity or use the invalid ABC code "XX" as the default. Using the
"XX" code will prompt the organization to change the transaction to the
correct ABC code. The Division of Financial Management (DFM) will create
an exception report on the invalid ABC code "XX" that will be available
via BRIO Datamart, FFS InfoPac, and an elective web report. Ideally, the
invalid or incorrect ABC codes should be corrected within the same
fiscal quarter to maintain consistent reporting.

To change the ABC work activity assigned to the FFS job number, the
responsible organization must complete the FFS Project Update Form
(<http://dfm.fws.gov/forms.html>) and provide the form to the Cost
Accounting Section, Denver Operations.

[ABC Coding for Labor]{.underline}

To ensure accuracy in coding ABC activities for labor costs, employees
should code to the activity that most accurately describes the work
performed. Timekeepers and certifiers should ensure the proper 13-digit
account code structure plus the 2-digit ABC code is in FPPS. If the
account structure is formatted incorrectly or uses invalid ABC codes in
FPPS, FFS will not recognize the ABC code and use the default ABC code.
Detailed procedures for filling out the Time and Attendance Reporting
Worksheet are available at
<http://planning.fws.gov/abc/training/codingprocedures.html>.

If an invalid or incorrect Activity-Based Cost (ABC) code has been
posted in FFS through the FPPS interface, Service organizations must use
the redistribution (RDS) process using the payroll RDS form. This form
is available from your Regional Budget and Finance Office or the DFM
Forms website.

**Payroll**

1.  Prepare RDS using the payroll RDS form and a copy of a FFS (FFS
    Report FW 103) or Brio Datamart labor cost report that shows the
    incorrect or invalid ABC code. This report will be attached as
    backup documentation to the RDS form.

2.  Complete all fields on the form including date and signature.

3.  Go to OARC table in FFS and enter payroll RDS.

4.  Once a payroll RDS is entered, the pending adjustment can be found
    in the ADJL table.

5.  Send the original payroll RDS sheet and labor detail report to
    Budget and Finance.

[ABC Coding for Non-Labor]{.underline}

All non-labor transactions must be coded with an ABC work activity. This
includes all purchase orders, travel vouchers, and contracts. Credit
card purchases will remain coded to the default code established by the
Regional and/or Program office. To change your default code assigned to
your purchase card, contact your Agency/Organization Program Coordinator
(A/OPC) for guidance.

Service organizations must ensure that contracts and other obligating
documents have an accurate ABC code. The referencing payments to the
obligation will use the ABC code entered upon obligation. If the ABC
code was incorrectly entered at obligation, Service organizations should
modify the obligation and correct the ABC code before any referencing
payments are made. Transactions obligated in IDEAS (M\$) must be
modified in IDEAS, even if the only modification is the ABC code.

If a payment or accrual with an invalid or incorrect ABC code has been
posted to FFS, follow the RDS process. Specifically, RDS can be
performed on expenditure documents only (Transaction Codes FP, FV, BV,
SV, PV, TV, IF, NB, NJ, CP, MP, FL, TS). Use the payroll RDS form for PR
and PJ transactions.

**Non-Payroll**

1.  Prepare a RDS data sheet using a copy of a FFS or Brio Datamart
    report that shows the incorrect or invalid ABC code. This report
    will be attached as backup documentation to the RDS form.

2.  Ensure that the RDS balances to zero.

3.  Complete all fields on the form including date, signature, and
    description.

4.  Once the RDE person verifies the form is complete, signed, and
    appropriate document is attached, the RDE person goes into FFS and
    creates the FV document.

5.  Send original non-payroll RDS sheet and the backup documentation to
    Budget and Finance.